Air, rail needs emphasized for Marcellus Shale region
http://republicanherald.com/news/air-rail-needs-emphasized-for-marcellus-shale-region-1.1184992
BY ROBERT SWIFT (HARRISBURG BUREAU CHIEF rswift@timesshamrock.com)
Published: August 6, 2011
HARRISBURG – Freight railroad lines and airports in the Marcellus Shale drilling regions would be targeted for improvements under recommendations made by two gubernatorial commissions.
The Governor’s Marcellus Shale Advisory Commission and Transportation Funding Advisory Commission both addressed the issue in reports released within the past two weeks.
Commission members suggested that improving both types of transportation will help the long-term development of deep gas reserves and reduce highway congestion from truck traffic associated with drilling operations. One recommendation would earmark revenue from an existing state surcharge on tickets issued for speeding and other moving vehicle violations to a new fund to pay for rail, airport and port infrastructure projects statewide.
The various recommendations are now being studied by Gov. Tom Corbett and lawmakers.
The Marcellus commission recommends giving priority to an evaluation of rail freight systems in the Marcellus regions in order to relieve the burden on roads and bridges from transporting sand, water and pipe to serve gas well operations. Another suggestion is for the state to partner with local rail authorities to seek federal rail freight dollars for this effort.
The Marcellus commission also recommends the state Transportation Department’s Aviation Bureau undertake a detailed assessment of air service needs at airports in the region in order to capitalize on economic opportunities from gas drilling.
The transportation commission focused more on finding new revenue sources for the state’s transportation system. The commission’s report noted short-line railroads in the northern tier counties need money to fix and maintain track, bridges and switches in order to support drilling operations. If more drilling materials can be shipped by rail, it will reduce truck traffic, the report states.
Pennsylvania airports get revenue from a tax on jet fuel, but revenue only covers a quarter of the improvements needed, the report states.
To address these needs, the commission recommends creating an “Intermodal Transportation Fund” for rail freight, aviation, passenger rail and ports across the state. Revenue from an existing surcharge on tickets for moving vehicle violations that currently goes to the all-purpose state General Fund could be diverted to the new intermodal fund, the commission said.
If that happens, its report projects $7 million in new revenue for aviation in fiscal 2012-13 going up to $11 million in five years and $9 million for rail freight in fiscal 2012-13 going up to $17 million in five years. The entire fund would have $54 million in 2012-13.
Before this, lawmakers have sought to provide potential funding for rail freight projects in the Marcellus region in a piecemeal fashion by adding authorizations to capital budget bills. The state pays for capital projects through the sale of bonds to investors and the governor decides which projects get the green light. It’s a tough competition and projects can remain on lists for years.