House bill would provide short lines natural disaster relief funding
12/28/2022
By Jeff Stagl, Managing Editor
In late September, Hurricane Ian demolished much of the Seminole Gulf Railway’s vital infrastructure in southern Florida. The Category 4 storm — which tied the record for the fifth-strongest hurricane to strike the United States — destroyed four of the short line’s bridges and damaged about 100 miles of track between Arcadia and Naples.
Since then, freight typically moved by the Seminole Gulf Railway has been diverted to trucks, costing some shippers up to six times more to transport their cargo. And the short line will need to come up with $25 million to $28 million to repair its infrastructure, an effort that’s expected to take many months to accomplish.
The Seminole Gulf Railway’s natural disaster-induced dilemma caught the attention of U.S. Rep. Byron Donalds (R-Florida). The short line operates in the 19th congressional district he has represented since 2021.
The U.S. representative for the 19th congressional district since 2021, Donalds found well-established federal disaster relief programs aren’t meaningfully helpful to short lines. U.S Rep. Byron Donalds Office
Donalds found that major, well-established federal disaster relief programs aren’t meaningfully helpful to short lines. Federal Emergency Management Agency assistance is limited to public entities — only a few short lines are publicly owned — and the Small Business Administration’s Disaster Assistance Program can only provide a combined loan up to $2 million.
Moreover, U.S Department of Transportation-led disaster relief programs provide extensive relief for several modes, but not short lines. Plus, commercial insurance often is unavailable to short lines, doesn’t provide adequate coverage following a natural disaster or is unaffordable at a viable rate.
That’s why Donalds on Dec. 16 introduced the Short Line Railroad Relief Act (H.R. 9581), which would authorize the establishment of a disaster relief program to provide much-needed and immediate federal financial assistance to impacted short lines.
“Hurricane Ian devastated various areas of southwest Florida, and among one of the hardest hit entities was the catastrophic damage to Seminole Gulf Railway. When a storm of this magnitude and destruction hits any area of our nation, it is the federal government's responsibility to make available the necessary resources to rebuild and restore vital components of a community,” Donalds said in an email.
ASLRRA President Chuck Baker believes Donalds’ bill would help many short lines better cope with natural disaster costs. American Short Line and Regional Railroad Association
H.R. 9581 would authorize U.S. Transportation Secretary Pete Buttigieg — in consultation with Federal Railroad Administrator Amit Bose — to issue grants or enter into contracts to provide capital for projects short lines need to protect, repair, reconstruct or replace equipment and facilities that suffered catastrophic damage from natural disasters. The federal cost-share would be capped at no more than 80% of a project’s total cost.
“The Short Line Railroad Relief Act isn't a measure to rubberstamp reckless spending; this bill establishes a means for critical relief for American short-line railroads in the event of catastrophic damage following a natural disaster,” said Donalds. “Short lines are generally one natural disaster away from being forced to close shop, which would ultimately result in gaping holes and negative impacts throughout our country’s volatile supply chain.”
Although Donalds was spurred into action by the devastation the Seminole Gulf Railway suffered in his district, the concern about natural disaster relief funding for short lines is applicable nationwide, said American Short Line and Regional Railroad Association (ASLRRA) President Chuck Baker in a press release. After a natural disaster strikes, it’s critical that transportation infrastructure is restored as soon as possible so materials can flow in and out of affected areas as part of relief efforts, he stressed.
“Short-line railroads play a critical transportation role, yet limited federal disaster relief options are available beyond small loans, whereas massive disaster relief resources are available for highways and transit,” Baker said. “The bill would allow the USDOT to provide speedy and significant grant funding to short line railroads following a disaster, so they can help rebuild the local economy instead of being forced to end operations, abandoning customers and the communities they serve.”
H.R. 9581 is cosponsored by U.S. Reps. Mike Bost (R-Illinois), Rodney Davis (R-Illinois), Randy Feenstra (R-Iowa), Michael Guest (R-Missouri), Troy Nehls (R-Texas) and Steven Palazzo (R-Missouri).
Since Congress adjourns Dec. 30, it’s unlikely the bill will become law before the year ends, ASLRRA officials believe. However, they expect the bill to be re-introduced at some point after the 118th Congress convenes on Jan. 3.
