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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 Tue, Feb 14, 2023

 

Chairperson Francis opened the hearing on HB2335.

Chris Waggoner, Office of Revisor of Statutes, provided an overview of the bill and addressed questions from the committee. (Attachment 1)

Cory Davis, Director of Multimodal Transportation and Innovation, Kansas Department of Transportation testified in support of the bill. Mr. Davis stated that the key to their support lies in combining of the existing Rail Service Improvement Program and the newer Short Line Improvement Fund as they are extremely similar and support almost the exact same infrastructure improvements. (Attachment 2)

Mr. Davis addressed questions from the committee.

Randy Stookey, Senior Vice President & General Counsel, Renew Kansas Biofuels Association, Kansas Grain and Feed Association (KGFA), Kansas Agribusiness Retailers Association (KARA) provided joint testimony in support of the bill stating that this bill encourages private and public investment in rail transport capacity and represents sound public policy in the growth of Kansas agriculture - our state's single largest economic sector. (Attachment 3)

Mr. Stookey addressed questions from the committee.

Ross Lane, Assistant Vice President, Government Affairs, Genesee & Wyoming Railroad Services, Inc. testified in support of the legislation on behalf of the Kyle Railroad Company which operates 471 miles of Short Line tracks in the state and an additional 84 miles in Colorado. Mr. Lane explained how this legislation would ultimately combine two successful programs which would better allow agribusiness, grain elevators and Short Line railroads to make critical investments in their infrastructure by allowing them to support economic development, expand their capacity, and make essential safety improvements. He further highlighted how this critical tool would help reduce greenhouse gas emissions associated with freight transportation by modernizing aging railroad infrastructure. (Attachment 4)

Shahira Stafford, Kansas Cooperative Council (CO-op Council), testified as a proponent stating that the bill serves to combine two existing Short Line rail improvement programs within the Department of Transportation without asking for any additional State general fund dollars. She further detailed how the programs encourages private and public partnerships that invest in Short Line qualified track maintenance such as reconstruction or replacement of railroad track, roadbed, bridges, industrial leads and sidetrack and related track structures and how several of their co-ops have participated in the 70/30 cost share Rail Service Improvement Program over the past three years which has allowed them to make severely needed upgrades to their rail siding that may have otherwise been cost prohibitive. (Attachment 5)

Ty Dragoo, Kansas Legislative Board Director, Chairman,  Sheet Metal | Air Rail | Transportation (SMART-TD) provided neutral testimony to the bill. Mr. Dragoo asked that amendments be made defining railroads that qualify for the program and that the Federal Railroad Administration's definition of an industry track be included thereby giving clarity to the types of projects and scope of the legislation. (Attachment 6)

There being no further conferees, Chairperson Francis closed the hearing on HB2335.