In 2005 the citizens of Texas approved a constitutional amendment creating the Texas Rail Relocation and Improvement Fund, which would help share the cost of relocating and improving public or private rail facilities. The Rail Relocation Fund could be used throughout the state to improve freight mobility and relieve traffic congestion.
In the Austin-San Antonio corridor, the fund could be used to relocate Union Pacific’s through-freight away from the heavily populated cities in the corridor. This would improve safety and can also create efficiencies for UP and its customers, in addition to creating capacity for Lone Star Rail District to operate the LSTAR.
The costs of relocation would be shared between railroads and the state in proportion to the benefit each would receive from improvements. In 2009 the Texas Legislature appropriated $182 million for the Rail Relocation Fund for the current budget biennium.
Additional funding is being sought for the fund from a variety of sources, including the federal high-speed rail grant program. Proposals to dedicate a permanent revenue source for the Rail Relocation fund will be considered again by the Legislature in 2011.
