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Minutes for HB2335 - Committee on Transportation
Short Title
Authorizing loans or grants for qualified track maintenance in the rail service improvement program and increasing the transfer from the state highway fund to the rail service improvement fund.
Minutes Content for Thu, Mar 16, 2023
Chairperson Petersen called the meeting to order at 8:36 a.m. and opened the hearing on HB2335.
Assistant Revisor Adam Siebers briefed the Committee on the bill (Attachment 1). He reported that the bill authorizes loans and grants for track maintenance in the Rail Service Improvement Program and increases the transfer from the State Highway Fund to the Rail Service Improvement Fund. He said the bill allows Kansas Department of Transportation (KDOT) to provide funds for Class II and Class III railroads (short-line railroads) for qualified track maintenance and increases the funding from the State Highway Fund from $5 million to $10 million.
Matt Messina, Chief of Multimodal Transportation, KDOT, testified as a proponent for the bill (Attachment 2). He commented that the Eisenhower Legacy Transportation Program included a new rail program (Short Line Rail Improvement Fund) that provided $5 million annually for improvements and upgrades for Class II and Class III rail infrastructure and rehabilitation maintenance. He noted that key to KDOT's support for the bill is combining the programs into one single program, resulting in efficiencies and clarity for project sponsors.
Randy Stookey, Senior Vice President & General Counsel, Renew Kansas Biofuels Association, Kansas Grain and Feed Association, and Kansas Agribusiness Retailers Association, spoke in support of the bill (Attachment 3). He explained that grain elevators, biofuel processing plants, and other agricultural businesses find rail service to be economically beneficial for both outgoing products and incoming resources; the bill restructures two existing maintenance programs and encourages private/public partnerships for transportation cost sharing economies. Without such rail services efficiencies, alternative truck services would add costs and highway congestion.
Shahira Stafford, Kansas Cooperative Council, testified in favor of the bill (Attachment 4). She explained that most of the Co-op members are rural and rely on rail to transport products to market and often own or lease rail locations and thus are responsible for rail maintenance. The bill will allow Co-op members to reconstruct or replace railroad track and will further ensure rail service to small towns.
Ross Lane, AVP, Government Affairs, Genesee & Wyoming Railroad Services, Inc., spoke as a proponent for the bill (Attachment 5). He explained that Short Line railroads play a key role in moving goods the first and last mile and provide critical connections to Class I railroads. He stated that the bill combines two successful programs and will help agribusiness, grain elevators, and Short Line railroads make infrastructure investments to support economic development and expand capacity as well as keep additional trucks off the highways. Responding to a question, he replied the the program is not available for Class I railroads. Mr. Messina confirmed the answer and commented Class I railroads are supported by federal funds.
