DOT FEELS PRESSURE TO LIBERALIZE RAIL LOAN POLICY

DOT FEELS PRESSURE TO LIBERALIZE RAIL LOAN POLICY       Republican and Democratic members of the U.S. House railroad subcommittee charged that the Department of Transportation’s Federal Railroad Administration regulations governing rail loans and loan guarantees are contrary to Congressional intent and are threatening needed improvements in the nation’s transportation infrastructure.
   S. Mark Lindsey, acting deputy administrator of the Federal Railroad Administration was under the gun as subcommittee members accused the DOT of writing rules that would require applicants for rail projects to show a rejection from a commercial lender before they could qualify for loans under the Railroad Rehabilitation and Improvement Finance Program.
   Congress enacted the program three years ago, but the FRA has yet to approve even one single loan, said Rep. Nick Rahall, D-W.Va. “The reason for this is that the FRA has written regulations that are contrary to congressional intent.”
   Three years ago, Congress specified that the RRIF program would provide up to $3.5 billion to upgrade U.S. railroads, with at least $1 billion earmarked for short and regional line improvements, Rahall said.
   Subcommittee members were hopeful on resolving the problem with the new Secretary of Transportation Norman Mineta.
      The subcommittee is also pushing legislation that provides short-line and regional railroads $350 million per year for fiscal years 2002, 2003 and 2004 to rehabilitate tracks capable of handling newer and heavier (286,000 pound) rail cars.