GROWTH

Mast, Posey try to block deadline extension for Virgin Trains to sell controversial bonds

Jim Turner
News Service of Florida
Two members of Congress are trying to block a Dec.31 extension for Virgin Trains USA, formerly Brightline, to sell $1.5 billion in tax-free bonds  to fund extension of the railroad from West Palm Beach to Orlando.

Two Republican congressmen are pointing to a state report on passenger-rail service as they implore the U.S. Department of Transportation to put the brakes on extending a deadline to issue tax-exempt bonds needed to expand the Virgin Trains USA rail system from South Florida to Orlando.

However, with a decision pending on the bond extension, Reps. Brian Mast and Bill Posey are on the opposite side of the issue from other lawmakers who support Virgin Trains, formerly Brightline. 

Mast, R-Palm City; and Posey, R-Rockledge, have asked U.S. Department of Transportation Secretary Elaine Chao to deny the railroad's request for more time to sell $1.15 billion in tax-exempt private-activity bonds needed for the expansion to Orlando.

More:  Brightline gets OK to sell $1.5 billion in tax-free bonds

Virgin Trains had been facing a Dec. 31 deadline to sell the bonds.

Mast and Posey bolstered their argument by pointing to an Oct. 31 report from the state Legislature's Office of Program Policy Analysis and Government Accountability that backed financial and safety concerns expressed by critics of the higher-speed passenger service, which now runs between West Palm Beach and Miami.

The report noted the state Department of Transportation hasn’t used its authority to regulate rail service at Virgin's expected speeds of 81-125 mph.

“We strongly encourage your agency to take a step back and give Florida an opportunity to shore up its regulations governing these higher-speed trains,” Mast and Posey wrote to Chao. “This time will also allow the corporation in this ever-changing project to prove it will have the finances going forward to build all the safety features along the entire route which should be required and are so desperately need(ed).”

Their efforts have been countered by several members of Congress, including representatives from Miami, West Palm Beach and Orlando.

On Monday, Rep. Mario Diaz-Balart, R-Miami, made his support known to Chao.

“Brightline is one of the most innovative, exciting infrastructure projects I have seen in quite some time,” Diaz-Balart said in a statement.

The railroad's request is expected to be considered by a U.S. Department of Transportation advisory committee by the end of this week.

More:  Brightline is only bidder to build rail line between Tampa and Orlando

Meanwhile, state Sen. Debbie Mayfield, R-Rockledge, also is pointing to the October report by the state agency as she intends to pursue more state oversight of passenger-rail service during the 2019 legislative session.

Among the state analysts’ ideas are setting up an independent regulatory body to oversee railroad safety in Florida; updating rules on state-of-the-art railroad crossings and corridors; requiring a multi-jurisdictional law-enforcement effort on trespassing enforcement; establishing “harsher” penalties for people caught trespassing on grade crossings; and conducting a review of statewide suicide-prevention activities.

Officials from Martin and Indian River counties brought lawsuits against the service, and earlier this year opposed the U.S. Department of Transportation giving Brightline until the end of the year to sell the $1.15 billion in tax-exempt bonds.

Martin County, however, along with the resident group Citizens Against Rail Expansion in Florida, have since settled its lawsuit after Virgin Trains agreed to safety and maritime changes.

In their letter to Chao, Mast and Posey noted the state report identifies safety as a key concern.

“The Florida East Coast Rail (sic) system, the existing (right-of-way) used by (Brightline), is perennially one of the most dangerous freight rail lines in the country based on track miles,” Mast and Posey wrote. “This is due to the high number of at-grade crossings in the densely populated coastal region as noted by the (state) study. 

More:  Martin County settles Brightline lawsuit; Indian River doesn't

"It is for this reason many in the region where the trains will reach speeds of 110 mph are concerned about (the Federal Railroad Administration’s) approval of allowing hazardous materials such as liquified natural gas on the same tracks as the higher-speed trains.”

Asked about the 159-page state report in November, Brightline responded with a statement that it was committed to safety.

“Safety is Brightline’s top priority, which is why we’ve worked closely with the FRA (Federal Railroad Administration), FDOT (the Florida Department of Transportation) and all local jurisdictions along the railway corridor on designing, engineering, constructing and operating the system,” the Brightline statement said. “We remain committed to working with FRA and FDOT to increase funding for more education and awareness.”

Brightline also is looking at expanding beyond Orlando. On Nov. 28, it was given 90 days by FDOT to reach an agreement with the Central Florida Expressway Authority to build the train service primarily along Interstate 4, linking Orlando to Tampa.