[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1220 Reported in Senate (RS)]






                                                       Calendar No. 548
107th CONGRESS
  2d Session
                                S. 1220

                          [Report No. 107-238]

   To authorize the Secretary of Transportation to establish a grant 
    program for the rehabilitation, preservation, or improvement of 
                            railroad track.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 23, 2001

Mr. Breaux (for himself, Mr. Smith of Oregon, Mr. Schumer, Mr. Specter, 
 Mr. Durbin, Mr. Brownback, Mr. Wyden, Mr. Grassley, Mrs. Lincoln, Ms. 
  Snowe, Mr. Miller, and Ms. Collins) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

                             August 1, 2002

               Reported by Mr. Hollings, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
   To authorize the Secretary of Transportation to establish a grant 
    program for the rehabilitation, preservation, or improvement of 
                            railroad track.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Railroad Track Modernization Act of 
<DELETED>2001''. </DELETED>2002''.

SEC. 2. CAPITAL GRANTS FOR RAILROAD TRACK.

    (a) Amendment.--Chapter 223 of title 49, United States Code, is 
amended to read as follows:

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track.
``22302. Capital grants for rail line relocation projects.
``Sec. 22301. Capital grants for railroad track
    ``(a) Establishment of Program.--
            ``(1) Establishment.--The Secretary of Transportation shall 
        establish a program of capital grants for the rehabilitation, 
        preservation, or improvement of railroad track (including 
        roadbed, bridges, and related track structures) of class II and 
        class III railroads. Such grants shall be for rehabilitating, 
        preserving, or improving track used primarily for freight 
        transportation to a standard ensuring that the track can be 
        operated safely and efficiently, including grants for 
        rehabilitating, preserving, or improving track to handle 
        286,000 pound rail cars. Grants may be provided under this 
        chapter--
                    ``(A) directly to the class II or class III 
                railroad; or
                    ``(B) with the concurrence of the class II or class 
                III railroad, to a State or local government.
            ``(2) State cooperation.--Class II and class III railroad 
        applicants for a grant under this chapter are encouraged to 
        utilize the expertise and assistance of State transportation 
        agencies in applying for and administering such grants. State 
        transportation agencies are encouraged to provide such 
        expertise and assistance to such railroads.
            ``(3) Interim regulations.--Not later than December 31, 
        <DELETED>2001, </DELETED>2002, the Secretary shall issue 
        temporary regulations to implement the program under this 
        section. Subchapter II of chapter 5 of title 5 does not apply 
        to a temporary regulation issued under this paragraph or to an 
        amendment to such a temporary regulation.
            ``(4) Final regulations.--Not later than October 1, 
        <DELETED>2002, </DELETED>2003, the Secretary shall issue final 
        regulations to implement the program under this section.
            ``(5) Criteria.--In developing interim and final 
        regulations, the Secretary shall establish criteria that--
                    ``(A) condition the award of a grant to a railroad 
                on reasonable assurances by the railroad that the 
                facilities to be rehabilitated and improved will be 
                economically and efficiently utilized;
                    ``(B) ensure that the award of a grant is justified 
                by present and probable future demand for rail services 
                by the railroad to which the grant is to be awarded;
                    ``(C) ensure that consideration is given to 
                projects that are part of a State-sponsored rail plan; 
                and
                    ``(D) ensure that all such grants are awarded on a 
                competitive basis.
    ``(b) Maximum Federal Share.--The maximum Federal share for 
carrying out a project under this section shall be 80 percent of the 
project cost. The non-Federal share may be provided by any non-Federal 
source in cash, equipment, or supplies. Other in-kind contributions may 
be approved by the Secretary on a case by case basis consistent with 
this chapter.
    ``(c) Project Eligibility.--For a project to be eligible for 
assistance under this section the track must have been operated or 
owned by a class II or class III railroad as of the date of the 
enactment of the Railroad Track Modernization Act of <DELETED>2001. 
</DELETED>2002.
    ``(d) Use of Funds.--Grants provided under this section shall be 
used to implement track capital projects as soon as possible. In no 
event shall grant funds be contractually obligated for a project later 
than the end of the third Federal fiscal year following the year in 
which the grant was awarded. Any funds not so obligated by the end of 
such fiscal year shall be returned to the Secretary for reallocation.
    ``(e) Additional Purpose.--In addition to making grants for 
projects as provided in subsection (a), the Secretary may also make 
grants to supplement direct loans or loan guarantees made under title V 
of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 
U.S.C. 822(d)), for projects described in the last sentence of section 
502(d) of such title. Grants made under this subsection may be used, in 
whole or in part, for paying credit risk premiums, lowering rates of 
interest, or providing for a holiday on principal payments.
    ``(f) Employee Protection.--The Secretary shall require as a 
condition of any grant made under this section that the recipient 
railroad provide a fair arrangement at least as protective of the 
interests of employees who are affected by the project to be funded 
with the grant as the terms imposed under section 11326(a), as in 
effect on the date of the enactment of the Railroad Track Modernization 
Act of 2001.
    ``(g) Labor Standards.--
            ``(1) Prevailing wages.--The Secretary shall ensure that 
        laborers and mechanics employed by contractors and 
        subcontractors in construction work financed by a grant made 
        under this section will be paid wages not less than those 
        prevailing on similar construction in the locality, as 
        determined by the Secretary of Labor under the Act of March 3, 
        1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et seq.). 
        The Secretary shall make a grant under this section only after 
        being assured that required labor standards will be maintained 
        on the construction work.
            ``(2) Wage rates.--Wage rates in a collective bargaining 
        agreement negotiated under the Railway Labor Act (45 U.S.C. 151 
        et seq.) are deemed for purposes of this subsection to comply 
        with the Act of March 3, 1931 (known as the Davis-Bacon Act; 40 
        U.S.C. 276a et seq.).
    ``(h) Study.--The Secretary shall conduct a study of the projects 
carried out with grant assistance under this section to determine the 
public interest benefits associated with the light density railroad 
networks in the States and their contribution to a multimodal 
transportation system. Not later than March 31, 2003, the Secretary 
shall report to Congress any recommendations the Secretary considers 
appropriate regarding the eligibility of light density rail networks 
for Federal infrastructure financing.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $350,000,000 for each 
of the fiscal years <DELETED>2002 through 2004 </DELETED>2003 through 
2005 for carrying out this section.
``Sec. 22302. Capital grants for rail line relocation projects
    ``(a) Establishment of Program.--The Secretary of Transportation 
shall carry out a grant program to provide financial assistance for 
local rail line relocation projects.
    ``(b) Eligibility.--A State is eligible for a grant under this 
section for any project for the improvement of the route or structure 
of a rail line passing through a municipality of the State that--
            ``(1) is carried out for the purpose of mitigating the 
        adverse effects of rail traffic on safety or motor vehicle 
        traffic flow in the municipality;
            ``(2) involves a lateral or vertical relocation of any 
        portion of the rail line within the municipality to avoid a 
        closing of a grade crossing or the construction of a road 
        underpass or overpass; and
            ``(3) meets the costs-benefits requirement set forth in 
        subsection (c).
    ``(c) Costs-Benefits Requirement.--A grant may be awarded under 
this section for a project for the relocation of a rail line only if 
the benefits of the project for the period equal to the estimated 
economic life of the relocated rail line exceed the costs of the 
project for that period, as determined by the Secretary considering the 
following factors:
            ``(1) The effects of the rail line and the rail traffic on 
        motor vehicle and pedestrian traffic, safety, and area commerce 
        if the rail line were not so relocated.
            ``(2) The effects of the rail line, relocated as proposed, 
        on motor vehicle and pedestrian traffic, safety, and area 
        commerce.
            ``(3) The effects of the rail line, relocated as proposed, 
        on the freight and passenger rail operations on the rail line.
    ``(d) Considerations for Approval of Grant Applications.--In 
addition to considering the relationship of benefits to costs in 
determining whether to award a grant to an eligible State under this 
section, the Secretary shall consider the following factors:
            ``(1) The capability of the State to fund the rail line 
        relocation project without Federal grant funding.
            ``(2) The requirement and limitation relating to allocation 
        of grant funds provided in subsection (e).
            ``(3) Equitable treatment of the various regions of the 
        United States.
    ``(e) Allocation Requirements.--
            ``(1) Grants not greater than $20,000,000.--At least 50 
        percent of all grant funds awarded under this section out of 
        funds appropriated for a fiscal year shall be provided as grant 
        awards of not more than $20,000,000 each.
            ``(2) Limitation per project.--Not more than 25 percent of 
        the total amount available for carrying out this section for a 
        fiscal year may be provided for any one project in that fiscal 
        year.
    ``(f) Federal Share.--The total amount of a grant awarded under 
this section for a rail line relocation project shall be 90 percent of 
the shared costs of the project, as determined under subsection (g)(4).
    ``(g) State Share.--
            ``(1) Percentage.--A State shall pay 10 percent of the 
        shared costs of a project that is funded in part by a grant 
        awarded under this section.
            ``(2) Forms of contributions.--The share required by 
        paragraph (1) may be paid in cash or in kind.
            ``(3) In-kind contributions.--The in-kind contributions 
        that are permitted to be counted under paragraph (2) for a 
        project for a State are as follows:
                    ``(A) A contribution of real property or tangible 
                personal property (whether provided by the State or a 
                person for the State).
                    ``(B) A contribution of the services of employees 
                of the State, calculated on the basis of costs incurred 
                by the State for the pay and benefits of the employees, 
                but excluding overhead and general administrative 
                costs.
                    ``(C) A payment of any costs that were incurred for 
                the project before the filing of an application for a 
                grant for the project under this section, and any in-
                kind contributions that were made for the project 
                before the filing of the application, if and to the 
                extent that the costs were incurred or in-kind 
                contributions were made, as the case may be, to comply 
                with a provision of a statute required to be satisfied 
                in order to carry out the project.
            ``(4) Costs not shared.--
                    ``(A) In general.--For the purposes of subsection 
                (f) and this subsection, the shared costs of a project 
                in a municipality do not include any cost that is 
                defrayed with any funds or in-kind contribution that a 
                source other than the municipality makes available for 
                the use of the municipality without imposing at least 
                one of the following conditions:
                            ``(i) The condition that the municipality 
                        use the funds or contribution only for the 
                        project.
                            ``(ii) The condition that the availability 
                        of the funds or contribution to the 
                        municipality is contingent on the execution of 
                        the project.
                    ``(B) Determinations of the secretary.--The 
                Secretary shall determine the amount of the costs, if 
                any, that are not shared costs under this paragraph and 
                the total amount of the shared costs. A determination 
                of the Secretary shall be final.
            ``(h) Multistate Agreements To Combine Amounts.--Two or 
        more States (not including political subdivisions of States) 
        may, pursuant to an agreement entered into by the States, 
        combine any part of the amounts provided through grants for a 
        project under this section if--
                    ``(1) the project will benefit each of the States 
                entering into the agreement; and
                    ``(2) the agreement is not a violation of a law of 
                any such State.
    ``(i) Regulations.--The Secretary shall prescribe regulations for 
carrying out this section.
    ``(j) State Defined.--In this section, the term `State' includes, 
except as otherwise specifically provided, a political subdivision of a 
State.
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for use in carrying out this section 
$350,000,000 for each of the fiscal years 2003 through 2007.''.
    (b) Conforming Amendment.--The item relating to chapter 223 in the 
table of chapters of subtitle V of title 49, United States Code, is 
amended to read as follows:

``223. CAPITAL GRANTS FOR RAILROAD TRACK....................   22301''.
    (c) Regulations.--
            (1) Interim regulations.--Not later than October 1, 2002, 
        the Secretary of Transportation shall issue temporary 
        regulations to implement the grant program under section 22302 
        of title 49, United States Code. Subchapter II of chapter 5 of 
        title 5, United States Code, shall not apply to the issuance of 
        a temporary regulation under this subsection or of any 
        amendment of such a temporary regulation.
            (2) Final regulations.--Not later than April 1, 2003, the 
        Secretary shall issue final regulations implementing the 
        program.
            (3) Criteria.--In developing regulations under paragraph 
        (1), and in any final regulations, the Secretary shall 
        establish criteria that ensure that all grants under section 
        22303 of title 49, United States Code, are awarded on a 
        competitive basis.




                                                       Calendar No. 548

107th CONGRESS

  2d Session

                                S. 1220

                          [Report No. 107-238]

_______________________________________________________________________

                                 A BILL

   To authorize the Secretary of Transportation to establish a grant 
    program for the rehabilitation, preservation, or improvement of 
                            railroad track.

_______________________________________________________________________

                             August 1, 2002

                        Reported with amendments