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Yahoo
23-05-2025
- Business
- Yahoo
Rail agenda steams up as short lines blitz Congress
WASHINGTON — Short line railroads had a longer than usual wishlist when they converged in Washington D.C. for the annual Railroad Day on Capitol Hill lobby blitz organized by the American Short Line and Regional Railroad Association. There's a new administration in office to educate and inform, along with many new members of Congress and their staffs. But there's much more on the agenda: A federal appropriations bill, including Consolidated Rail Infrastructure and Safety Improvements (CRISI) grants Reauthorization of the Surface Transportation Board, which includes $300 billion over five years for federal highway, rail, transit and safety programs Modal equity, specifically regarding truck size and weight Expansion of 45G short line tax credit, which returns a portion of spending on track maintenance The consensus among attendees May 7 was that the message was well-received as they sought to put a face on the issues, and that senators and representatives, and their staffs, were better informed of rail issues than has been the case in prior years. Whether that translates to legislative wins for the industry remains to be seen. But railroads' critical role in the supply chain — and the American economy — is a positive story most everyone can agree on.'We seem to be well-positioned between both parties,' said Alan Matheson, superintendent and chief operating officer of Tacoma Rail in Tacoma, Washington. 'It's not political.' Founded in 1925, Tacoma Rail serves 43 customers in Pierce County south of the Port of Tacoma, and is one of the oldest short lines in America. 'CRISI grants and 45G for track maintenance and capital outays are two sides of the same coin,' Matheson said. 'What's new with the new administration is an accelerated permitting process. The people we met with are aware of what the issues are, and we spent time with new members getting them up to speed.' Washington is one of the most-trade dependent states, and Matheson said he was 'cautiously optimistic' following much discussion of tariffs and their impact.'There were a lot of good questions from young [congressional] staff,' said Kevin Keller, vice president at freight rail engineering specialist HDR. 'If we can just educate them…railroads are a 'safe', non-partisan industry. 'Why would you not support it?' The rail group's leadership acknowledges that achieving modal equity with trucks is more of a challenge. 'Truck size and weight is a tough issue,' said ASLRRA President Chuck Baker. 'We got our point across.' Baker said federal permitting of projects needs to speed up. 'We have got to build faster. From grants to obligation, people are really interested in that. Congress appropriates the money because the Federal Railroad Administration supported it. Everyone is like, 'Let's go!' Former STB Chairman Roger Nober said that there is a willingness on the part of the Trump administration to look at deregulation, but wondered if that would last beyond the current term. '[Businesses] need long-term certainty to make investment decisions,' said Nober, who now directs the Regulatory Studies Center at George Washington said he supports repeal of the federal rule requiring two-person train crews, 'from a legal and operating standpoint. I think this administration will be open to new technology.' Kevin Donahue, state and local affairs manager for CN (NYSE: CNI) in Illinois who was there to support the Canadian carrier's short line partners, said that his lobby visits 'went really good. People were prepared and on top of issues.' 'This event is extremely important, because it shows the value of constituents,' said Robert Primus, member and immediate former chairman of the STB. 'Short line railroads are central to local economies and business growth.' 'Growth is a top issue for railroads,' said Primus, who in 2024 convened a rare public hearing to question railroads on their growth strategies. 'The strength of the economy means new businesses joining the rail network. We have to build confidence in the network to promote a reliability that attract people.' Short lines are the drivers of that growth, he said. 'The Class I railroads should give short lines more of an opportunity to build the business rather than just a smaller share.' Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your inbox. Find more articles by Stuart Chirls extends surprising lead in weekly US rail traffic J.B. Hunt and Eastern and Canadian railways see steady intermodal volume For first time since 1998, LA-Long Beach ports bid harbor rail services Advisory team will drive overhaul of US railroad regulator The post Rail agenda steams up as short lines blitz Congress appeared first on FreightWaves.
Yahoo
01-05-2025
- Business
- Yahoo
Legislators propose upgraded tax credit for short line rail maintenance
A federal tax credit that's helped attract billions in private investment in short line railroads could be getting an upgrade. Legislation introduced in the Senate seeks to modernize the Short Line Railroad Maintenance Tax Credit, known as 45G, that has been responsible for driving more than $8 billion in private spending for short line rail infrastructure since it was introduced in 2005. The bill, co-sponsored by Republican Mike Crapo of Idaho, chairman of the Senate Finance Committee, and Ron Wyden, a Democrat from Oregon and ranking member of the committee, follows similar House legislation introduced in January. The credit covers 40 cents of every dollar of qualified railroad track maintenance expenditures such as roadbed, ties, rail, and bridge work capped at $3,500 per mile, excluding track converted to short line mileage after 2015. The new legislation would raise the credit to $6,100 per mile, include all short line track, and index the measure to inflation going forward. The short line group said today's costs for rail maintenance exceed $15,000 per mile. 'This 45G tax credit is widely considered an effective and successful public policy,' said said Chuck Baker, president of the American Short Line and Regional Railroad Association. 'It has been responsible for significant private investment in infrastructure, but outdated caps and limitations are threatening to erode its potency. Today, Senators Crapo and Wyden have acted, enabling updates to the credit that will serve the rail industry, shippers, and the economies of small towns across the country for years to come. 'We are immensely grateful for the bipartisan and bicameral leadership of Senators Crapo and Wyden and Representatives Kelly and Thompson [in the House] in supporting the continued growth and success of the short line industry and more importantly the thousands of agricultural, energy, manufacturing, and industrial shippers we serve.' More than 600 short lines operate one-third of the nation's rail system, according to ASLRRA, and are the origin or destination point of one in five cars moving throughout the system. The Senate bill comes just days before members of the ASLRRA gather in Washington on May 7 for a one-day lobbying blitz of Congress. 'Short line railroads are critical infrastructure that connect Idaho's farmers, ranchers and manufacturers to national and global markets, supporting local jobs and driving economic growth in rural Idaho,' said Crapo, in a joint release. 'Modernizing the Short Line Railroad Tax Credit will provide railroads with necessary certainty and resources to invest in safety, efficiency and longterm infrastructure improvements in our regional areas.' 'Short line and regional railroads are not just a mode of transportation, but they are also a vital economic tool that connects local businesses with Oregonians and other people all across the nation,' Wyden said in the release. 'For years, Sen. Crapo and I worked together to make railroad tax credits permanent, and the next step is to make these tax credits better for our operators. Our bipartisan bill will provide railroads with much needed resources to make vital upgrades that will bring our rural, suburban and urban communities and their local economies together. Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your inbox. Find more articles by Stuart Chirls Cement deal fires Maine rail line revivalNew railroad heralds Indiana multimodal development BNSF and UP say possible container glut doesn't scare them BNSF, UP battle over California mountain pass trackage rights The post Legislators propose upgraded tax credit for short line rail maintenance appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Tax credits, truck limits top small railroads' DC agenda
DENVER – Federal funding that serves as the lifeline of small U.S. railroads will continue to flow from Washington, experts say, but exactly when and how much is unclear at present. That funding to-do list is led by the 45G tax credit and Consolidated Rail Infrastructure and Safety Improvements (CRISI) grants – critical issues during a legislative educational session at the American Short Line and Regional Railroad Association (ASLRRA) conference here on Monday. A bipartisan House bill to update the vital 45G tax credit, which underpins capital spending at many shortline and regional railroads, was introduced in January by Reps. Mike Kelly, R-Pa., and Mike Thompson, D-Calif., the latter of whom is the chair and ranking member of the Ways and Means Subcommittee on Tax. Technically known as a railroad maintenance credit that is part of the IRS Code of 1986, 45G was created in 2005 and made permanent in 2021. It offers a tax credit of 40 cents per mile of track up to a maximum $3,500 – a figure that hasn't changed in 25 years. The new bill updates 45G to $6,100 per mile to account for inflation, and also indexes the credit to inflation. In addition, it allows expenditures for Class II and III track miles as of 2024, from the current cutoff date of 2015. A Senate version of the bill is also expected to be introduced. The trade group is optimistic about passage of 45G, even with a 40% turnover in Congress since 2020, said Nicole Brewin, vice president, congressional affairs, for Washington-based ASLRRA. CRISI funding this fiscal year is a mixed outcome. The grant program has been appropriated through September but cut almost in half, to $100 million from $199 million in FY 2024. That is in addition to $1 billion from the Infrastructure Investment and Jobs Act (IIJA) passed under the Biden administration. Looking ahead to fiscal 2026, the ASLRRA has sent a letter to the Transportation, Housing and Urban Development committees in both the House and Senate outlining appropriations requests for CRISI grants, the Short Line Safety Institute and the grade crossing safety program Operation Life Saver, among other programs. The IIJA expires in September 2026, and ASLRRA President Chuck Baker in January testified before a House subcommittee on rail as to priorities for reauthorization. They include guarantees for CRISI funding including support for advanced appropriations, and reject efforts to permit longer, heavier trucks on the nation's roads. On Thursday, the ASLRRA along with members Genesee & Wyoming and Watco will participate in a closed-door stakeholder listening session on surface transportation reauthorization priorities. The ASLRRA has scheduled its annual Railroad Day on Capitol Hill lobbying blitz May 7, when the messaging agenda will include modal equity involving the Highway Trust Fund and federal truck size and weight (TSW) limitations; tax policy; permitting reform; and rail grants. Find more articles by Stuart Chirls here.4 SONAR charts to watch for tariff impacts Fuchs: Efficient Surface Transportation Board will foster rail competition, growth Union Pacific Railroad CEO 'very comfortable' working through tariffs BNSF's trade-related intermodal projects move ahead despite tariffs The post Tax credits, truck limits top small railroads' DC agenda appeared first on FreightWaves. Sign in to access your portfolio
