Bill Posey: 'All Aboard Florida' More State than Federal Issue

U.S. Rep. Bill Posey, R-Fla., offered his thoughts on public funding for All Aboard Florida (AAF) on Friday. While Posey said he did not back federal funding of All Aboard Florida, he said the U.S. Department of Transportation was ready to give them the green light and did not need additional congressional authorization.

"While the decision to authorize All Aboard Florida lies with state and local elected government officials, if the loan funding question comes before the Congress for a vote, I will oppose it, Posey said. However, the U.S. Department of Transportation currently has all the authority and funding they need to approve the loan with no congressional input or approvals.

Posey insisted he has long opposed public funding of rail projects.

"In September 2013, I was asked to join other members of the Florida congressional delegation in sending a bipartisan letter to the U.S. Department of Transportation supporting AAFs direct loan application, Posey said. I did not sign onto the bipartisan letter of support. While I appreciate rail systems, which improve infrastructure and economically transport goods, I have long opposed taxpayer subsidies including those for Amtrak, SunRail and the South Florida commuter rail.

"I believe that the most important thing for the Federal Railway Administration and the U.S. Department of Transportation to do as they consider this issue is to give the greatest weight to the concerns of the local affected communities, Posey continued. Toward this end, when I have received letters and resolutions from locally elected leaders in communities that will be directly impacted by AAF, I have forwarded those concerns directly to the federal officials and asked them to give serious attention to the issues these community leaders have raised.

Posey insisted the federal role on AAF was minimal with the state taking the lead role.

"It is my understanding that All Aboard Florida has already been granted authority to proceed with this project by the state of Florida and relevant state government bodies. They need no federal action or approvals to proceed; what they are seeking from the federal government is a direct loan, Posey continued. "Of the 235-mile rail line, 195 miles is currently in use by AAFs parent company, Florida East Coast Industries. AAF has received approval from state of Florida regulated entities to enable it to construct a rail line from the Orlando airport to the existing FEC rail track running along the east coast of Florida.

"In October 2013, the Orlando-Orange County Expressway Authority (OOCEA) board, a state-regulated entity, approved an easement purchase agreement with AAF to allow the construction of a rail line that will run parallel to State Road 528 (Beach Line). The Greater Orlando Aviation Authority approved agreements granting AAF the ability to connect and build a terminal at the airport," Posey said. "When I was first made aware of this project it was my understanding that all funding would be private. I later learned that they would be applying to the U.S. Department of Transportation for a direct loan under the U.S. Department of Transportation's Railroad Rehabilitation and Improvement Financing Program (RRIF). Since 2009, the RRIF has provided nearly $1.7 billion in direct lending to more than 33 railway projects around the country. The largest borrower to date has been Amtrak. This is a direct loan program under which the U.S. Department of Transportation is able to loan 100 percent of the project costs. The general terms of the loan are that the borrower pays interest at the U.S. Treasury rate plus a credit risk premium, and the loan must be fully collateralized. The loan must be paid back over 35 years.

"There is no direct appropriation from the U.S. Congress for the RRIF program, but existing law has granted the U.S. Department of Transportation the authority to make up to $35 billion in RRIF loans, Posey said in conclusion. Loan approvals do not come before the U.S. Congress for consideration, but are evaluated and approved by the U.S. Department of Transportation.I believe it is important for those of you who have concerns about the proposed AAF to contact your state and local elected officials and let them know of your interest in this issue as they have considerably more authority over these state regulatory issues."