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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      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| INTERCITY       FREIGHT AND PASSENGER RAIL:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      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| **Section         3**
**NEW CHALLENGES AND           APPROACHES**

**Mergers and Other Major           Railroad Service Changes**

In recent years,           state and local transportation planners in some areas have faced a new           challenge.� A number of railroad mergers, acquisitions and other transactions           have posed significant environmental concerns for some communities by           shifting rail traffic between routes and increasing traffic at terminals.�           Increased train traffic adds to risks at highway crossings, generates           noise for sensitive receptors, and can delay emergency services as well           as other highway traffic when crossings are blocked.� Terminal expansion           can add additional truck traffic to secondary streets as trucks travel           between the terminal and the interstate highway system.� 

TEA-21 funds           may be used by state and local governments to plan for any impacts which           are the result of federal government actions and funds may also be used           for projects designed to ameliorate such impacts.� The Surface Transportation           Board has issued environmental regulations covering these matters.�           Any community facing a major shift in rail traffic should contact the           STB for a copy of the regulations, at:           http://www.stb.dot.gov/.

The STB has           undertaken a review of the rules under which it evaluates merger applications.�           This rulemaking may address some of the environmental issues when it           is issued in June, 2001. �While the rulemaking may change some of the           specifics, the overall process will largely remain the same.� Railroads           wishing to merge first notify the STB of their intention to file an           application.� This is the first notice communities will get of a proposed           merger.� The applicants, as they are termed, then provide an application           and an initial environmental survey.� Communities should obtain and           review these documents, which will contain estimates of train volumes           in specific corridors, proposed terminal expansions, track abandonment           and other matters of concern.� The STB Section for Environmental Analysis           also conducts outreach efforts to alert communities of pending mergers.

Under current           practice, the STB conducts an environmental analysis (if the scale of           the transaction warrants), which will identify areas where possible           environmental problems exist.� Applicants and representatives of these           areas then work together to reach agreement on mitigation measures.�           The difficulty for both parties is that at this time there is no clear           standard for what level of mitigation is required.� For example, the           environmental analysis will measure delays to vehicles, noise impact           to nearby residents and possible safety impacts.� However, mitigation           projects that substantially mitigate these impacts may be very expensive,           and there is no clear standard for how the costs should be shared between           railroads and communities.� If there are different alternatives that           could be used to mitigate the environmental consequences, the railroad           and community need to reach agreement on which measure to select, determine           financing, and obtain permission to implement the project, which might           require the state or other private entities to participate.� Reaching           agreement on mitigating the environmental impacts of mergers and other           transactions that require STB approval will remain� difficult until           clear standards and responsibilities are promulgated by the Board. 

Among the environmental           mitigation measures communities may wish to consider are whistle bans.�           New FRA regulations ease the establishment of such zones which offer           a way to reduce noise pollution from additional trains while preserving           safety.� For further information, see FRA=s website on whistle bans           at:http://www.fra.dot/s/env/horns/index.htm

**Integrated           Intermodal Planning**

ISTEA introduced           and TEA-21 continued an emphasis on freight and intermodal planning           in the regional and local planning process.�� Several organizations,           in some cases continuing initiatives begun before ISTEA, have successfully           inculcated an intermodal approach to transportation planning that includes           the needs and impacts of freight transportation.� Two examples of major           metropolitan areas that provide useful models for others are Seattle           and Chicago.

In Seattle,           the Puget Sound Regional Council (PSRCOG), the MPO for the greater Seattle           area, faced the challenge of a rapidly growing economy, booming intermodal           container shipments through its port, and the desire to accommodate           this growth in an environmentally friendly manner.� Highway traffic           congestion was severe, and growth in port activity and increased delays           at rail crossings caused by growing train volumes were an important           part of the problem and destined to grow worse.� 

PSRCOG and Washington           State DOT approached the problem in the intermodal fashion encouraged           by ISTEA.� In order to assure that freight concerns were recognized,           a Regional Freight Mobility Roundtable was formed, with wide participation           from shippers, modal representatives, and all levels of government.�           

Perhaps the           most significant product of these cooperative efforts is the FAST-corridor           partnership,� (Freight Action Strategy for the Seattle-Tacoma-Everett           corridor).� Addressing the overall freight and passenger needs of this           critical corridor, a program of projects was developed to attack the           overall problem, rather than just move the bottleneck to the next jurisdiction.�           Projects include rail-highway grade separations, improvements in highway           connectors between the ports, and other improvements, benefitting all           users.� The total cost of the package is $354 million, with funding           coming from all levels of government and private interests.�� Commuter           rail, while not directly related to the FAST partnership, has been initiated           in the corridor, through the cooperation of BNSF Railway and local governments.�           For a detailed review of this major effort, planners are urged to review           materials athttp://www.wsdot.gov/TEPD/freight/cp3.pdfor           contact: Peter Beaulieu, Freight Mobility/Corridor Strategies, Puget           Sound Regional Council, 1011 Western Avenue, Suite 500, Seattle, WA           98104, (206) 587-4825 or Daniel O=Neal,           Chairman, Puget Sound Freight Mobility Roundtable, c/o The Greenbrier           Companies, 555 Andover Park West, Suite 109, Tukwila, WA 98188.

Chicago illustrates           the importance of building freight partnerships and incorporating the           partnership into intermodal planning efforts.� Chicago=s           MPO, the Chicago Area Transportation Study (CATS) has solicited freight           input from the Intermodal Advisory Task Force (IATF) since 1994, including           freight sector input in its planning process through formal data collection           efforts and industry outreach.� Truck congestion, increases in intermodal           transportation, and rail-highway-rail interchange traffic (called Athe           rubber-tire interchange@)           are the Chicago and northeastern Illinois area=s primary concerns.� One of eleven CATS Task Forces responsible           for developing elements of the Transportation Improvement Plan, IATF           identifies, assesses and responds to issues and opportunities affecting           intermodal transportation facilities and resources and provides overall           guidance for the development of the intermodal component of the Regional           Transportation Plan.� 
One example           of CATS=           success is the agreement between Canadian National Railroad and Illinois           Central Railroad to relocate CN intermodal facilities to IC=s yard in Harvey, Illinois, 20 miles south of Chicago. The           CN acquired added capacity and improved connections to ports in Vancouver           and Halifax.� The increased intermodal activity at the yard has highlighted           the need for additions to the network of intermodal connectors and initiated           a partnership process with the public sector, involving the CN, IDOT,           county and municipal highway agencies, and operators.� CATS and IATF           are the point of contact among these parties.

CATS staff has           pursued improvements to intermodal transportation by incorporating specific           system and policy statements in the intermodal component of the 2020           Regional Transportation Plan and by maintaining an inventory of the           region=s major intermodal           facilities and resources in GIS format.� For additional information           on the studies and projects of CATS, consult their website at: http://www.catsmpo.com�           or contact Gerald Rawling, Director of Operations Analysis, Chicago           Area Transportation Study, 300 West Adams, Chicago, Illinois 60606,           (312) 793-3469.����������������������������������������� 

**Questions concerning process           overview, participation and project advancement should be addressed           to:**

**Robert E. Martin, Director           Intermodal Planning and Economics Staff, 202/493-6407 or John N. Paolella,           Director Industry Finance Staff, 202/493-6413, Office of Policy and           Program Development, FRA.�**

Site         Index

Section         1.

Section         2.

Section         3.Section 4.Surface Transportation         ProgramTIFIANCPD and CBI ProgramsTransportation Enhancements         Program

Section         5.Air QualityEnergy**TEA-21         Role in Transportation and the Environment**

Section         6.�

Appendix         1.        Appendix 2.        Appendix 3.

 
   
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