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Hearing Hearing Date: April 19, 2018 10:00 am 2154 Rayburn HOB

Examining Tax-Exempt Private Activity Bonds for All Aboard Florida’s Brightline Passenger Rail System

Subject
Examining Tax-Exempt Private Activity Bonds for All Aboard Florida’s Brightline Passenger Rail System
Date
April 19, 2018
Time
10:00 am
Place
2154 Rayburn HOB
PURPOSE:
  • To examine the use of $600 million and $1.15 billion in tax-exempt private activity bonds to support the Brightline passenger rail system project in Florida, and the broader implications of this type of financing for future infrastructure projects.
BACKGROUND:
  • Brightline is a Florida-based passenger rail system privately owned and operated by All Aboard Florida (AAF).
  • In 2005, Congress created a $15 billion pool of private activity bonds (PABs) for infrastructure projects. If the project qualifies as an exempt facility, the Department of Transportation (DOT) can exempt the PABs from federal income taxes.
  • In 2017, Brightline obtained $600 million in tax-exempt PABs from DOT to complete Phase I of the project and $1.15 billion in tax-exempt PABs to complete Phase II.
  • Brightline has faced criticism for six fatalities since Phase I trial runs began last year. There are also concerns about the number of highway-rail grade crossings along the Brightline route.
Witnesses and testimonies: Mr. Grover Burthey

Deputy Assistant Secretary for Policy
U.S. Department of Transportation

Document

Mr. Patrick Goddard

President and Chief Operation Officer
All Aboard Florida/Brightline

Document

Mr. Robert Crandall

Former CEO
American Airlines

Document

Chief Dan Wouters

Division Chief Emergency Management
Martin County Fire Rescue

Document

Mr. Dylan Reingold

County Attorney
Indian River County

Document