The project that you are referring to is the famed Schuylkill Valley Metro. Officially, it is in limbo. Septa's proposal was to construct a dedicated, electrified ROW using existing and abandoned segments of the Reading Norristown and PRR Schuylkill branches and operated with light rail vehicles (trolleys). The cost of this plan was approaching $2 Billion dollars. A much more modest approach using existing Septa R6 and Norfolk Southern Harrisburgh line tracks and diesel powered trains is now being explored. There has also been some discussion into a phased approach with service to Pottstown initially and an extension to Reading at a later date. If this ever comes to be, a restoration of the R6 Ivy Ridge is still in the plans to allow these trains to operate into 30th Street lower level.
Glenn