INDIANAPOLIS | Local transportation officials soon will seek federal funds to build the South Shore extension to Lowell and go back to the drawing board on the Valparaiso extension, officials revealed in a Thursday legislative hearing.

Because of its lower cost, the Lowell line has a chance to win federal funding whereas the Valparaiso line would be unlikely to win the same, Northern Indiana Commuter Transportation District general manager Gerald Hanas told a key legislative commission.

"In the short run, we can go forward with the Lowell project," Hanas said. "The Valparaiso project will get a face-lift in the project plans."

NICTD wants to study the feasibility of running the Valparaiso extension on the former Amtrak corridor from Gary to Valparaiso, Hanas said. The previous plan was to run it on Canadian National rights of way.

Hanas and state Rep. Chet Dobis, D-Merrillville, testified Thursday before the Commission on State Tax and Financing Policy at the Indiana Statehouse. The commission is chaired by state Rep. Peggy Welch, D-Bloomington.

For now, the Lowell line has several advantages in the race for funding from the Federal Transit Administration's New Start program, Hanas said.

The cost for building the Lowell line is lower -- $551 million as compared to $673 million for the Valparaiso line. It also meets federal cost-efficiency mandates. And according to forecasts, the Lowell leg would attract almost as many riders as both branches combined.

Valparaiso Mayor Jon Costas said he understood NICTD's reasoning and that he had been briefed on the situation.

"While it means we may have to wait a few years for our line, we will have a better chance of ultimately getting the whole project built," Costas said.

The total capital cost for building out both lines would be $902 million. Both lines would share five miles of new track from Hammond to Munster. The total project goes by the name of the West Lake Corridor Extension.

Projects approved for the New Starts program receive up to 50 percent funding from the federal government. For the Lowell line, that would leave about $225 million for local communities to come up with.

Hanas said the most optimistic timeline for the Lowell branch would have people riding the trains in four to five years.

In a swift five minutes of testimony, Dobis said he would again be introducing legislation in the upcoming session that would deal with the local share of funding for the South Shore extension.

But he told the commission he wanted to keep all funding options open and would reveal the preferred one only when he submits his bill.

Previous proposals for a wheel tax and for using a share of state sales tax funds have been shot down, with the latter idea stopped in its tracks in the Indiana Senate last session.

Dobis indicated after the hearing that he may again push for some form of state funding, perhaps in conjunction with legislators from central Indiana who want to build their own commuter line.

"What about a statewide answer?" he said. "If it's statewide it doesn't have to be local."