Proposal would require railroads to help pay for railway safety improvements across Minnesota
ST. PAUL, MN – March 13, 2015 – (RealEstateRama) — Seventy-five railway safety projects – at Minnesota’s most dangerous and congested rail crossings – would be completed statewide, if a proposal from Governor Mark Dayton is passed this session. Governor Dayton today revealed a comprehensive list of those specific projects, which were compiled by experts at the Minnesota Department of Transportation and chosen based on their levels of danger and congestion.
Governor Dayton’s railway safety proposal would invest $330 million over the next ten years in the construction of safer railroad crossings across Minnesota, and provide additional bonding dollars to fund four major grade separations in Coon Rapids, Moorhead, Prairie Island, and Willmar. The plan would implement new quiet zones in communities located along busy rail lines, provide better training for emergency managers and first responders, and hire a new Rail Office Director who would position the state to play a larger role in addressing freight rail service and safety issues throughout the state.
If passed, Governor Dayton’s plan would also provide local governments the resources they need to respond to local infrastructure needs caused by increased railway traffic. By modernizing property taxes paid by railroads, the proposal would provide $45 million every year for cities, counties, and townships to fund their own local priority rail infrastructure improvements. A comprehensive list of how much new railway safety funding each city, county, and township would receive under the Governor’s plan is available online.
“Over the last year, I have traveled across Minnesota and seen firsthand the very serious and costly challenges that increased rail traffic have thrust upon our communities,” said Governor Dayton. “Minnesotans did not cause these disruptions; they are not responsible for the endless barrage of dangerous cargo being shipped through their communities every day. The railroads responsible for these problems have a responsibility to pay for these essential safety improvements.”
What the Proposal Would Deliver
The Governor developed his railway safety proposal after holding seven railway safety meetings across Minnesota, hosting a railway safety summit last fall, and conducting a statewide survey gathering the input of local community leaders. His recommendations are based on the input of Minnesotans, emergency managers and first responders, and experts at the Minnesota Department of Transportation. Specifically, the proposal would deliver:
• Four Major Grade Separations – When the Governor introduces his bonding proposal later this month, it will include funding for four major grade separations in Coon Rapids, Moorhead, Prairie Island, and Willmar. Improvements at these rail crossings, which are heavily congested and considered particularly dangerous, are urgently needed and require major investments.
• Another 71 Infrastructure Improvements Statewide – The Governor’s proposal would also fund 71 additional railway safety improvements at rail crossings across Minnesota. A comprehensive list of these projects, which were chosen by MnDOT experts based on their levels of danger and congestion. A comprehensive list of those projects is available online.
• Better Training for First Responders – In order to adequately prepare for potential derailments or railway disasters, the Governor’s proposal would fund additional training measures for first responders and emergency managers across Minnesota. Specifically, this would include the construction of a new multifaceted training facility at Camp Ripley, which would simulate response scenarios related to the transportation and storage of hazardous materials, including Bakken oil.
• More Quiet Zones – The Governor’s proposal would also provide funding to help establish new quiet zones in communities located along busy rail lines.
• A New Rail Office Director – The proposal would hire a new Rail Office Director who would position Minnesota to play a larger role in addressing freight rail service and safety issues in the state. This would allow accelerated and expanded delivery of grade crossing safety improvements, expanded rail safety inspection, and enforcement of rail safety regulations and rail planning.
How the Proposal is Funded
The Governor’s proposed railway safety improvements would be funded through the following measures:
• Assessments on Class I Railroads – The proposal would implement a $33 million annual assessment on the four Class I railroads that operate in Minnesota, based on their track mileage in the state. It would be used to fund additional grade separations and crossing improvements across Minnesota.
• State General Obligation Bonds – The Governor’s bonding bill will include funding for four major grade separation projects in Coon Rapids, Moorhead, Prairie Island, and Willmar. It will also include funding for a new railway safety training facility for first responders at Camp Ripley and funding for quiet zones.
• Modernizing Property Taxes Paid by Railroads – Minnesota’s current railroad property tax laws are have not kept pace with railroad uses, or the need for improved safety. Modernizing railroad property taxes would expand the taxable property of railroads to include rolling stock, rail cars, trestles, and rail bridges. This would expand the tax base for communities that are now dealing with increased rail use and congestion. Property tax modernization would provide $45 million in new annual revenues for cities, counties, and townships to address their local infrastructure needs. It would provide $21 million each year to help fund statewide rail safety measures.
Building on Recent Progress
These needed improvements would build on new railway safety measures implemented last year by Governor Dayton and the Minnesota Legislature. Those efforts required railroad companies to submit disaster prevention and emergency plans to the State, increased the number of rail inspectors at MnDOT, required railroads to respond to derailments or spills of hazardous cargos within a specified timeframe, and provided additional emergency response training for local police and fire departments, and other first responders in Minnesota.
