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So far, the Federal Railroad Administration is sticking to its New Year's resolution of finding ways to speed up and simplify Railroad Rehabilitation and Infrastructure Financing (RRIF) program applications. Earlier this month, the administration reached an agreement with the American Short Line and Regional Railroad Association (ASLRRA) on several process changes, according to ASLRRA's bi-monthly newsletter.

FRA agreed to provide short lines an online application form and credit risk calculator; turn around applications within 180 days; enable ASLRRA to act as an applicant's agent; assign one FRA official to handle an application from start to finish; expand the administration's RRIF staff; and allow ASLRRA to jointly promote RRIF loans to all interested parties.

In February 2003, FRA contracted the John A. Volpe National Transportation Systems Center to study the RRIF program and determine ways to speed applications. In December, the consultant released its recommendations, suggesting the administration institute a pre-application process, such as a meeting, teleconference or inquiry letter, to preliminarily determine an applicant's eligibility; create a formal application with attachments (applicants now complete a checklist); develop a formal application evaluation and approval process; and institute a tracking system to monitor applicants' status.

Launched in 2001 as part of the Transportation Equity Act for the 21st Century (TEA-21), RRIF authorizes FRA to provide $3.5 billion in direct loans or loan guarantees to eligible railroads (including $1 billion set aside for regionals and short lines), state and local governments, and government-sponsored authorities to acquire, develop, improve or rehabilitate intermodal or rail facilities.

During the past three years, FRA has approved only six RRIF loans, including one for Dakota, Minnestoa & Eastern Railroad Corp. in January, and one for Stillwater Central Railroad Inc. earlier this month. Last month, administration officials said FRA expects to approve more RRIF loans in 2004 compared with previous years.