Department of Transportation (DOT) officials say they’re in the process of finalizing an agreement with the Massachusetts Bay Transportation Authority (MBTA) that will pave the way to commuter rail service to Warwick and into Wickford Junction.

“We’re currently in the process of finalizing the final operator agreement,” Steve Devine, the DOT’s Chief of Intermodal Planning, said yesterday.

The agreement, elusive even after construction on the project began last year, was unveiled in September and represents one of the final pieces of the puzzle that is the Warwick Intermodal Station. The 21-page document was obtained through an open records request and provided to the Warwick Beacon by Richard Langseth, who has closely followed airport-related developments.

The project, costing upwards of $266 million, will connect Green Airport to rail passenger service via a skywalk that extends over Post Road. The project, leveraged by a federal earmark secured by former Senator Lincoln Chafee, and taxes on car rentals and a daily customer facility charge, will provide access to rental car companies via the “people mover.”

The agreement will indemnify the MBTA from any potential financial losses it incurs from extending service into South County and Warwick that emanate from operating expenses or claims.

“As a Massachusetts Transit Authority, the MBTA didn’t want to assume liability for extending its service into Rhode Island,” said Devine.

In the draft agreement, the DOT had two potential abilities to indemnify the MBTA. It could seek a change in state law that would allow the Rail Corporation—a quasi-public agency—to indemnify the MBTA from any potential losses. Attempts to lobby the legislature were apparently unsuccessful.

Instead, the DOT needs to secure $4.7 million in federal funds in order to create a “Capital Pool.” The MBTA will then use the funding in the pool to underwrite system projects. But the MBTA will only be allowed to use an amount of money in that pool that is equivalent to its losses incurred from providing service to Wickford.

“That Capital Pool is set up to cover any operating deficit that may occur. No train operator in the country makes money. They all require subsidies. It’s not unlike buses,” said Devine.

“They’re all subsidized in some fashion.”

In securing any federal grant that requires a match, the MBTA will be responsible for that funding.

After receiving the startup money from the federal government, and when and how that will happen remains unclear, the DOT will use the train fares to pay for the MBTA service.

If the station opened today, it could cost $265 for a monthly pass from Warwick to South Station in Boston, and $280 for a monthly pass from Wickford to South Station. A single ticket would cost $8.25 and $9 respectively.

Fares, however, could be increased at any time, and it remains unclear, at this point, when the Wickford Junction Station would be ready for service. Officials from Gilbane Building say that the Intermodal will be completed next September.

In the event that a surplus is generated from the train fares, the DOT will be credited for future payments.

Langseth said there are still many financial, logistical and environmental questions plaguing this project. Langseth suspects the Intermodal is a glorified pork-barrel project that’s more about the new car rental garage at Green than it is the train service.

In an interview yesterday, Langseth pointed out that the DOT only has five train cars for the South County service, and will need to purchase another five cars. That, he said, could cost $10 million.

Langseth is also critical of the DOT’s revenue projections.

“Ridership projections from RIDOT are a joke. In spite of the fact that everybody – I mean everybody – is saying that commuters will commute to Boston rather than Providence, RIDOT insists that thousands will get off in Providence as early as 5:40 a.m. and no later than 7:20 a.m.,” said Langseth.

Langseth said the Wickford Junction would be located in an environmentally problematic area.

“It’s located on an aquifer,” said Langseth.

Devine, when asked yesterday, said there was an environmental assessment study performed several years ago on the Wickford Junction site, and there was “no significant environmental impact.”

“It didn’t require an EIS study.”

Langseth said he’d like the city council to create a citizens committee to provide oversight of the project. Langseth said he’s interested in chairing the committee.

“We need a committee to bring the MBTA to the table and talk about these issues and figure out what’s really going on here,” said Langseth.