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Hunter can weigh in if he knows the real answer, but I believe since RRIF was originally part of the Transportation Bill (TEA-21) and the Reauthorization (SAFETEA-LU) the funding comes from that instrument. SAFETEA-LU has expired and it is currently operating on a short term extension. This likely is affecting the ability of DOT to continue to make RRIF loans until they know what the future for the Transportation Reauthorization (they are typically reauthorized on a six-year time table). The belief is that this will not be reauthorized until the next Congress as it is funded through the gas tax and Congress and the Administration have not agreed on the financing of the bill.

This is just an educated guess on why the loans are delayed but pretty sure this would be the case.


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com
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On Jun 3, 2010, at 10:55 AM, Lorenzo Roccia wrote:

Why has DOT put a hold on all new RRIF loans??


----- Original Message -----
From: Eric Schwerin <eschwerin@rosemontseneca.com>
To: Lorenzo Roccia
Cc: Hunter Biden <hbiden@rosemontseneca.com>
Sent: Thu Jun 03 10:51:30 2010
Subject: Bullets

* Ultimately, the decision lies with the Engineers at Amtrak

* If CAF made it to the final two (in theory) they stand an equal chance of winning the bid as Alstom

* However, historically, Amtrak's engineers have had a predisposition to Alstom and there is a belief that Alstom has the advantage because of Amtrak's history with Alstom. Because of this point, it would be good to manage CAF's expectations.

* The bigger problem Amtrak management is dealing with is financing the purchase of the trains. Traditionally, this is done through a RRIF loan which is made by the Federal Railroad Administration (FRA) through DOT. Right now, DOT has put a hold on all new RRIF loans.

* They are going ahead with the RFP but it is certainly possible that it could be delayed if the RRIF loan doesn't come through.

* The keys to winning the bid are producing the trains faster (as far as deliver is concerned), cheaper and safer. Also, it is important to produce as much as possible in the U.S. and create as many U.S. jobs as possible.


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com <x-msg://59/eschwerin@obblaw.com>
P Consider the environment before printing this email.