Ohio Bill New Tool to Boost Regional Transportation Projects, Sponsors Say

Ohio Bill New Tool to Boost Regional Transportation Projects, Sponsors Say

Government, Business Potential Partners on Qualified Projects

Lawmakers Vest Final Vote with State Transportation Director

by John Michael Spinelli

June 14, 2009

COLUMBUS, OHIO: Ohio governments and businesses could form investments teams to construct and operate regionally significant intermodal systems including public transit, freight and passenger rail systems, according to testimony provide last Wednesday by two prominent Ohio senators from opposite ends of the state and political spectrum, who have teamed up to propose the formation of Transportation Innovation Authorities (TIA).

The senators, Capri Cafaro, a Democrat whose district is in northeast Ohio, close to Cleveland and Lake Erie, and Tom Niehaus, whose district is in the southwest, close to Cincinnati and the Ohio River, stood next to each other last week, when the Senate Highways and Transportation Committee convened for business.

In addition to a first hearing on the outline of TIAs (SB121), the approval of Governor's appointment including the naming by Ted Strickland earlier this year of Jolene Molitoris to be the Director of Transportation was also on the agenda. Molitoris became the first woman Administrator of the Federal Railroad Administration when then-President Clinton appointed her in 1993 and the first woman to break the glass ceiling at the Ohio Department of Transportation (ODOT) when Gov. Strickland promoted her this January to hold the reigns of and director the horsepower of the $7-plus billion agency that oversees federal and state funds.

Strickland and Molitoris are backing the re-establishment of passenger rail service, diagonally across the state from Cincinnati to Dayton to Columbus to Cleveland, they hope $400 million in one-time federal stimulus dollars will cover the estimated costs for re-starting a service that has not left or arrived in any station in nearly 42 years. Strickland said he does not want Ohio to be left behind as an island as federal plans to fund more passenger rail gathers momentum despite the few funds President Obama has made available for such uses.

Cafaro, whose dozen-member caucus elected her as its leader last November, said in written testimony that it was her hope that the bill "will enhance the efficiency of Ohio's transportation system by encouraging the investment of public and private resources in the planning and implementation of innovative transportation Projects."

Creating a new authority for a defined period of time, in a defined geographical jurisdiction, where various government subdivisions or agencies can rally around a common regional transportation project with private business would be a boon for a state whose state budget is imploding, leaving locals to look to each other instead of Columbus for help with transportation priorities and plans.

Addressing Chairman Sen. Tom Patton, a Republican from Cleveland, and committee members, Cafaro said that among the various funding sources made available to TIA by the bill, taxes imposed by the authority itself would be prohibited.

Niehaus, a term-limited Republican by 2012, said the "newness of the concept and the many questions surrounding its proposed utilization," were two reasons to yank it from the State Transportation bill agreed to in March. "TIAs offer a unique ability for the pubic and private sectors to partner on the construction and operation of conventional transportation investments, as well as on intermodal, light rail or intercity rail projects,"Niehaus said in prepared remarks.

While Molitoris was not personally in the room, the authority vested in the transportation director was. As currently proposed, the bill would give the Ohio Department of Transportation (ODOT) authority to approve a TIA or any of its projects. Projects qualified for ODOT approval would be contingent upon local entities adopting planning and zoning guidelines with the TIA' defined geography that would "assure that land use is conducive to the purpose of the district and does not set the stage for unintended, unplanned and unprogrammed additional improvements."

Once a partnership is struck between ODOT and a TIA, the transportation fun could begin. ODOT, in return for the TIA meeting standards established in the bill, would be free to provide planning and project development funds, favorable financing and improved project scheduling to the communities of the TIA. One helpful resource would bee access to a "new generation of investment" by ODOT's State Infrastructure Bank. The OSIB could offer low interest loans for public transit, multi-modal projects and intercity rail, an extension of what it currently does for roadway and bridge projects. Niehaus said ODOT is working to identify $170 million over the next two years to expand the OSIB.

Responding to questions from Senators, Cafaro reminded them that, as the Highway Trust Fund runs dry due in part due to less gas tax being collected as people drive fewer miles as the price of gas rises, locals looking to each other is better than looking for help from Washington.

The inclusion of the word "innovation" in the new authority's title should extend to not only innovative ways of financing a shared public interest with infrastructure we are familiar with, but also to the "innovation" of the transportation technology being considered. For an advanced train technology like Tubular Rail, whose capital costs are significantly lower than traditional railroads, the news of what a TIA can do is good news. Other technologies that bring new solutions to old problems should be embraced not as red-haired outliers but as a new way of moving people and goods in new ways.

The debate over investing untold billions in roads and bridges and other conventional transportation modes, no matter how familiar we are with them, is an important one. The cost of standard infrastructure, including water, sewer and energy facilities, is at an all-time high. The cost of transportation infrastructure, from trolleys, to light rail to high-speed trains, is even more expensive, which means TIAs and the planning groups they are tied to need to look either for ways to reduce project costs or look for innovative transportation technology that is less capital intensive.

The Senate bill is the upper house's version of the House version, which Niehuas characterized as a "starting point for consideration."

John Michael Spinelli is a Certified Economic Development Financing Professional, business and travel writer and former credentialed Ohio Statehouse political reporter. He is registered to lobby in Ohio and is the Director of Ohio Operations for Tubular Rail Inc. SOA is now on Twitter at OhioNewsBureau and available for subscription to owners of Amazon's Kindle. To send a news tip or make comment, email ohionewsbureau@gmail.com

Will Lack of Curiosity Doom Ohio to Turtle Train Technology?

Will Lack of Curiosity Doom Ohio to Turtle Train Technology?

Senators, Representatives Express Curiosity in Tubular Rail

" Trackless Train" Company to Meet with Development Officials to Talk Jobs, Economic Development

by John Michael Spinelli

April 30, 2009

COLUMBUS, OHIO: Curiosity, it's long been said, killed the cat. But can lack of curiosity kill a state? For a state like Ohio, where legendary inventor heroes like Orville and Wilbur Wright and Thomas Alva Edison were born, believing the train technology of 1934, when the Burlington Zephyr, the first Diesel-electric streamliner in the US, topped out at 112 mph on a dawn to dusk run between Denver and Chicago, is as good as it gets does not bode well for its future.

Why would a state who says they champion innovation and name programs after the Wrights and Edison want to squander a billion or more dollars on a slow, costly system built on train-museum-era locomotives that even in 2010, when the first train may crawl out of hibernation to cross the state diagonally for the first time in 41 years, average 20 mph less than the Zephyr did on its historic run during our Great Depression?

It's a question that needs to be asked. Given Ohio's rhetoric on innovation and funding schemes designed to court the most innovative advancements in all industries, why is transportation reform such a taboo subject?

What state would want to broadcast to the world that it's stuck in the past when it comes to energy, education, medicine, information or any other industry for that matter? But that position, blindly defending old technology, is exactly what Gov. Strickland and his Transportation Director, Jolene Molitoris, are doing by refusing to consider any train technology that doesn't look, sound or perform like railroads from days of yore.

But a growing chorus of state senators who know the proposal to fund a train to the past, as many say the 3-C Corridor proposal is, is a bad idea at a bad time are penning letters of curiosity in anticipation of a meeting next week between Tubular Rail and state development officials is a no cost, no obligation query that should challenge the status quo on how we think about train technology.

Robert Pulliam, inventor and founder of Tubular Rail , based in Houston, Texas, will arrive in Columbus next week to make his case for why his patented technology, featured in the Discovery Channel show called "FutureTrains," can create manufacturing jobs and spur economic development while transporting people and goods in new ways.

As one connected statehouse insider said recently, if the state is going to spend all this money, shouldn't we at least buy something that's fast? By its own admission, the 3-C Corridor or Turtle Train, will only average 57 mph, a pathetic pace that will take longer than driving from Cleveland to Cincinnati, via Columbus and Dayton, and will leave passengers to fend for themselves once they reach their destination.

Sens. Jason Wilson (D-30th), ,Tim Grendell (R-18th) and Karen Gillmor (R-26th) have expressed their curiosity about Tubular Rail in a letter to Mark Barbash, Interim director of the Ohio Department of Development.

Verbal commitments for similar letters have been received from Sens. Fred Strahorn (D-5th), Robert Schuler (R-7th), John Carey (R-17th), Ray Miller (D-15th) and Tim Schaffer (R-31st) and Reps. Bob Hagan (D-60th) and Todd Book (D-89th). The bi-partisan lineup of senators and representatives curious about Tubular Rail's technology shows the bi-partisan nature of the need to reform transportation.

Sen. Gillmor, of Tiffin, has already written an article on why Ohio isn't likely to see so-called high-speed trains, like are common in Europe, here anytime soon. In her article, she says the proposal for a publicly subsidized passenger rail system is "undercooked" and missing many details that "confirm a rail system is needed or supported by the taxpayers who would foot the bill."

What we do know, she writes, is that officials say the system would cost $250 million to launch and require a state subsidy of $10 million each year. Continuing, she notes that, based on studies conducted by the Ohio Rail Commission in 2004 and 2007, "the system would likely cost be between $1 billion and $1.3 billion after adjusting for inflation and only run "at speeds of up to 69 miles per hour along existing freight tracks," a speed that is "unlikely to be much faster than highway travel."

Gillmor and other members of the General Assembly who are asking development officials to be as curious about Tubular Rail as they are, are in line with the campaign goals of Transportation for America, a coalition of housing, environmental, public health, urban planning, transportation, equitable development and other organizations who say Americans need transportation options that are "cheaper, faster and cleaner" than the current system of transportation they say leave "too many older, younger and rural Americans stranded."

Ohio needs to be future-ready. By developing and employing a new, energy efficient train transportation system that could reduce road congestion, travel fast, go places where conventional railroads cannot, and be built by Ohio manufacturers, Buckeyes can stake a claim on their future without waiting for some other state, or country, to do the heavy lifting first.

Being a leader means doing something first. Ohio, who has yet to walk away from its reputation as a "rust-belt" state and who frets each day that more more layoffs from automakers will further complicate its already shaky budget picture, should spend a little time, and maybe even a few funds to see of Tubular Rail technology is all Mr. Pulliam and others say it is.

The Wright thing to do is be curious. Gov. Strickland and Director Molitoris would do well to be more curious. Lack of curiosity could kill the state.

John Michael Spinelli is a Certified Economic Development Financing Professional, business and travel writer and former credentialed Ohio Statehouse political reporter. He is registered to lobby in Ohio and is the Director of Ohio Operations for Tubular Rail Inc. To send a tip or comment, email ohionewsbureau@gmail.com