Committee Passes Bill to Spur Economic Development in Northwest Colorado and Advance Mountain Passenger Rail

This week at the Colorado Capitol, the House Finance Committee approved legislation that would support both the completion of the mountain passenger railroad and economic diversification efforts in transitioning coal communities in northwest Colorado. SB24-190 was approved by 8 votes in favor and 2 against.

“From new job opportunities to more transportation options, our Western Slope communities would benefit greatly from this bill,” said Speaker Julie McCluskie (D-Dillon). “In addition to our Front Range passenger rail legislation, this bill will bring our rural and mountain communities closer to an expanded rail system for transit and freight. “We are supporting the Western Slope, especially those in coal transition communities, to boost the economic security of our rural and mountain resort towns.”

“Connecting Steamboat Springs to Hayden and Craig through an expanded rail system would significantly boost our local economies by creating jobs and improving transit between our Colorado communities,” said Rep. Meghan Lukens (D-Steamboat Springs). “Our legislation is a community-driven effort and would provide financial incentives to businesses in coal transition communities like Craig and Hayden when they use freight rail lines so we can keep those lines active and operational. By supporting diverse industries in our district, this would make a difference to the issues that most affect rural and rural tourism communities, such as housing supply and labor shortages.”

SB24-190 would make the design and use of mountain passenger rail more sustainable by incentivizing freight transportation by companies that establish operations in coal transition communities along the potential rail line, particularly in Craig and Hayden. The bill would incentivize companies and operators to use freight lines (rather than trucking) that are at risk of becoming idle due to declining usage as a result of the transition away from coal.

Through SB24-184, also sponsored by Speaker Julie McCluskie, Colorado has what she calls “a once-in-a-generation opportunity to bring passenger rail to northwest Colorado,” connecting the region and generating new economic opportunities for communities facing economic difficulties. transition.

The federal government has already committed billions of dollars to rail development across the country, and there is a growing coalition of support across northwest Colorado. The region is uniquely prepared for this moment, with an existing rail line that can be expanded and equipped for passenger use.

The proposed mountain line would connect Denver to Winter Park, Steamboat Springs, Hayden and Craig and allow public transportation between the cities. However, continued freight use of the rail line is key to the financial viability of passenger rail service. Bringing new businesses to northwest Colorado will expand economic development, create new jobs in the area and provide essential support for the rail line.

While this is seen as a positive step for northwest Colorado, here in the Arkansas River Valley there are mixed opinions about what it might mean to revive the dormant mountain rail lines that run through the valley. While passenger travel may be welcome, for rail lines to be profitable, freight transportation must be part of the mix. If such transportation carries environmental risks, there is a sense that opposition could be substantial.

SB24-190 would create two income tax credits: one for businesses that use rail to transport their freight to or from a community in coal transition, and another for rail shippers that use a rail line at risk of inactivity or abandonment due to lack of demand. . It would also make more of the region eligible for economic support from the Colorado Office of Economic Development and International Trade (OEDIT). This could create opportunities for economic diversification and provide necessary support for mountain railway development. The potential mountain railway would also facilitate increased tourism to the region, create additional economic growth and allow locals to travel safely between Winter Park and Craig, with stops in between.

Featured Image: A blast from the past: the Rio Grande passenger train at the Salida, Colorado station sometime in the 1960s.