Idaho Rural Economic Development and Integrated Freight Transportation Program (REDIFiT)

1. Idaho Rural Economic Development and Integrated Freight Transportation Program (REDIFiT) January 6, 2011

2. REDIFIT Program Background $5 million revolving loan fund established by the Idaho State Legislature in 2006 Transferred to ISDA in 2007 First loans were approved in December 2007 Three projects totaling $3.8 million have been funded or are currently approved Current fund balance is $2.3 million. Funds available for loans is less

3. REDIFIT Loans Purpose To provide low interest loans for qualified rural projects for the development and preservation of intermodal rail and truck services and facilities Title 49, Chapter 29, Idaho Code

4. REDIFIT Loans Eligible Applicants • Qualified lines • Class III short lines • Branch lines of class I railroads leased or operated by a class III railroad • Branch lines of class II railroads • Lines owned by public entities including port districts and intermodal commerce authorities • Freight Shippers

5. REDIFIT Loans Eligible Projects Rehabilitating, or improving railroad equipment necessary to maintain essential rail service Purchasing or rehabilitating railroad equipment necessary to maintain essential rail service Construction of loading or reloading facilities or other capital improvement including building or improving local transportation infrastructure, to increase business and commerce, and to improve shipping service Coordinating intermodal truck and rail traffic for integrated rural freight transportation

6. REDIFIT Loans Approved Projects • EIRR Pacific Ethanol Project – Burley, Idaho • An upgrade to 1.2 miles of track along with six integral switches to support the new Pacific Ethanol plant in Burley. The upgrade replaced 70# rail that was in place since the railroad was built in 1911 with 100# rail or larger. • EIRR Minidoka Relay Project – Between Rupert & Minidoka, Idaho • An upgrade to sections of rail line between Rupert and Minidoka that were 76 years old or more. Every car that links to the UP line must travel on this section, representing 68% or $9.2 million dollars.   • EIRR Northside Relay Project – West of Rupert, Idaho • Anupgrade of a section of rail west of Rupert.

7. REDIFiT Basic Guidelines • Maximum term not to exceed 15 years • No maximum loan size, loans are based on availability of revolving funds • Loan terms & interest rates • Up to 3 years: 2% • 3 to 8 years: 3% • 9 to 15 years: 4%

8. REDIFiT Loan Criteria Loan funds cannot be used for operating costs Loan up to 90% of total project costs Sufficient collateral is required (letter of credit, first lien on assets, etc) Applicant must have good standing in all Idaho obligations No prepayment penalties

9. REDIFIT Grant Statue specifies: As interest funds allow, authorize matching grants not to exceed one hundred thousand dollars ($100,000) per grant for planning and development of intermodal commerce authorities. May be for the planning and development of either a new or existing Intermodal Commerce Authority

10. REDIFIT Program Application Process • Obtain REDIFiT loan and grant information and applications online at www.agri.idaho.gov • Submit full application and all documentation to ISDA according to quarterly deadlines: • February 11, 2011 • May 13, 2011 • August 12, 2011 • November 10, 2011 • Grant applications: annual deadline: • Last business day in May each year

11. REDIFIT Program Program Administration • Administered by the Idaho State Department of Agriculture (ISDA) in cooperation with the Interagency Working Group • Interagency Working Group is composed of 8 members: • 4 Idaho Transportation Department • 3 Idaho Department of Agriculture • 1 Idaho Department of Commerce

12. QUESTIONS