2013 SCORT – Ohio SessionRRIF: FRA – ORDC Pilot

2013 SCORT – Ohio SessionRRIF: FRA – ORDC Pilot

• Working with the FRA to determine if a state can have a value-added role in providing shortline railroads better access to RRIF Financing.

• Partnership is the result of comments by Administrator Szabo expressing a desire to get better utilization of the RRIF.

• Began conversations in Summer ’12.

• FRA-ORDC MOU signed March 2013.

2013 SCORT – Ohio SessionRRIF: FRA – ORDC Pilot

Why the Pilot?

• ORDC has a loan and grant program, but the rail infrastructure needs far exceeds our financial capacity.

• We have believed there is a role for states beyond providing funding for the credit risk premium.

• Overall, ORDC thinks we can be value-added to both the shortline railroads and the FRA.

2013 SCORT – Ohio SessionRRIF: FRA – ORDC Pilot

How is ORDC value-added?

• For the FRA: ORDC has a good working relationship and a solid knowledge base of Ohio railroads and rail lines, giving us an advantage over the FRA’s Independent Financial Advisors. We can do a lot of screening before the railroads submit the application.

• For Railroads: ORDC already has an organizational structure in place for project and financial reviews, as well as NEPA.

2013 SCORT – Ohio SessionRRIF: FRA – ORDC Pilot

Project Status:

• ORDC has completed our “State Advisor Report”.

• Ashland Railway submitted its draft application to the FRA on Friday.

2013 SCORT – Ohio SessionRRIF: FRA – ORDC Pilot

Next Steps:

• ORDC will continue to work with Ashland and FRA for loan approval.

• ORDC will identify opportunities to improve process.