§22908 Restoration and Enhancement Grants

Summary

The Secretary of Transportation must run a competitive grant program that pays for operating costs to start, restore, or improve intercity passenger rail service. Eligible applicants include states (or groups of states), interstate compacts, public agencies or authorities, local governments, federally recognized Indian Tribes, Amtrak or other intercity rail carriers, railroads working with those public entities, or any combo of those groups. "Operating assistance" means costs assigned to a route using the federal cost method in section 209 of the Passenger Rail Investment and Improvement Act of 2008 or section 24712. Applicants must give a capital and mobilization plan with timelines, an operating plan with operator info, schedules, stations, ridership and cost projections, equipment plans, and safety plans, a funding plan that covers initial capital and operating costs for the first 6 years and shows who will pay if federal help and revenues fall short, and the status of talks or agreements with railroads and other service providers. The Secretary will favor projects that are nearly ready, restore former Amtrak routes, add daily or daytime service, have strong state/local/private support, show financial sustainability beyond the 3-year grant period, serve underserved areas, spur economic development, add other benefits, or expand the national network, and routes chosen under the Corridor Identification program that Amtrak will operate. Grants may not fund a route for more than 6 years and cannot be renewed. No more than 6 grants can be active at once. Yearly federal shares of projected net operating costs are capped at 90% for year 1, 80% for year 2, 70% for year 3, 60% for year 4, 50% for year 5, and 30% for year 6. Grant money can be combined with other federal funds and remains available until spent. If a grant goes to a carrier other than Amtrak, Amtrak may have to provide access to its reservation system, stations, and facilities and can be paid from the grant. Recipients must sign grant agreements with reporting and performance data like Amtrak provides, may get payments in installments, and can lose funding if service stops or they break the agreement. The Secretary must report to Congress within 4 years after enactment of the Passenger Rail Reform and Investment Act of 2015 on how the program was run, the investments and operations funded, route performance, recipients’ plans for continued operation and funding, and any legislative suggestions. Recipients must also follow the grant rules in section 22905.