1. Partnering with Greyhound 2009 CalACT 25 th Anniversary Spring Conference & EXPO Greyhound Lines, Inc. March 18, 2009

2. Overview of Presentation Background SAFETEA-LU Changes California Impacts GLI Rural Feeder Program Next Reauthorization March 18, 2009

3. Background In 1989, the intercity bus industry served about 5,000 communities By 2009, it serves about 2,500: a 50% reduction in 20 years 2,500 communities lost access to intercity passenger service and low-cost package express service for farm equipment 7 days per week March 18, 2009

4. SAFETEA-LU Changes Changes to FTA’s 5311(f) program: Funding – lot more money Consultation – states must consult with ICB Planning – ICB inclusion in state plans Facilities & Joint Development – ICB now eligible for FTA capital funding March 18, 2009

5. SAFETEA-LU Changes What Do These Changes Mean? Increased funding provides new opportunities to create meaningful rural feeder bus networks with in cooperation with rural transit New flexibility to create intermodal facilities & improve intercity bus terminals & stations March 18, 2009

6. California Impacts CA’s 1 st feeder service: Sage Stage Caltrans ICB Study New feeder service projects Local match option March 18, 2009

7. GLI Rural Feeder Program Coordination must be meaningful: –Scheduled (not demand responsive) service –Proper operating authority & insurance –Operated 7 (but at least 5) days per week –Not duplicating existing or other subsidized service –Proper interline ticketing & GPX service –Information available to nationwide ICB network March 18, 2009

8. GLI Rural Feeder Program Local Match – FTA Demo Program 50% of Greyhound’s total cost per mile can be used as local in-kind match “Project” (A to C) includes feeder service (A to B) & segment of existing Greyhound route (B to C) Allows feeder service operator to recoup 100% of the cost of operations March 18, 2009

9. GLI Rural Feeder Program 5311(f) Formula Local Match Option $100,000 Actual Operating Cost$100,000 $100,000Project Cost$150,000 - 50,000less Fares - 50,000 50,000 Deficit 100,000 - 25,00050% 5311(f) - 50,000 $ 25,00050% local match $ 50,000* * At about $2.00 per mile (50% of Greyhound’s total operating cost), the project would need 25,000 Greyhound miles per year to match the project. March 18, 2009

10. Contacts Randy Isaacs, State Government Affairs Randy.Isaacs@greyhound.com (615) 338-0847 Tim Therrian, Director-Intermodal Alliances Tim.Therrian@greyhound.com (972) 789-7377 Tim Lukes, IT & Commission Agency Operations Tim.Lukes@greyhound.com (214) 244-2694 March 18, 2009