§22301 Capital Grants for Class Ii and Class Iii Railroads

Summary

The Secretary of Transportation must set up a program to give capital grants to Class II and Class III railroads. Grants can pay for two kinds of projects: (1) fixing, saving, or improving freight track and related structures (like roadbed and bridges) to keep or increase freight carried by rail and cut use of less fuel‑efficient ways of moving freight; or (2) testing or developing new technologies that boost fuel efficiency, cut greenhouse gases, and lower operating costs. Grants may go directly to the railroad or, if the railroad agrees, to a State or local government. Railroads are encouraged to work with State transportation agencies. Final rules must be issued by October 1, 2008. The Federal share can be up to 80% of project cost; the rest can come from non‑Federal cash, equipment, or supplies (other in‑kind help may be approved). Grant money must be used quickly and must be contractually committed no later than the end of the third Federal fiscal year after the award or the funds must be returned. The railroad receiving a grant must protect workers with a fair arrangement at least as protective as the terms in section 11326(a) in effect when the law was enacted. Construction workers paid with grant funds must receive at least the local prevailing wages under the Davis‑Bacon rules; wage rates in Railway Labor Act collective bargaining agreements count as meeting this rule. The Secretary must study how well the projects cut fuel use and show new technologies, and must report results and any recommendations to the House and Senate committees by March 31, 2009. Congress authorized $50,000,000 for each of fiscal years 2008 through 2011 for this program.