§22908 Restoration and Enhancement Grants

Summary

Creates a competitive program that gives operating grants to help start, restore, or improve intercity passenger rail service. Applicants can be: a State (including DC), a group of States, an entity running an interstate compact, a public agency or authority set up by States, a political subdivision of a State, a federally recognized Indian Tribe, Amtrak or another intercity rail carrier, a rail carrier working with at least one of the State-type entities above, or any combination of those. “Operating assistance” means costs assigned to a route under the cost method in section 209 of the Passenger Rail Investment and Improvement Act of 2008 or section 24712. To apply, a group must give: a capital and mobilization plan with a timeline; an operating plan showing who will operate and support the service, frequency, routes, stations, ridership and financial projections, equipment plans, and safety plans; a funding plan that covers initial capital and operating costs for the first 6 years, commits the applicant to cover gaps not met by federal grants or revenues, and explains funding after year 6; and the status of negotiations with railroads, carriers, and other service providers (including access to Amtrak systems if needed). The Secretary will favor projects that are ready or nearly ready, restore former Amtrak routes, add daily/daytime service where it did not exist, include state/local/private funding or participation, show financial sustainability beyond the 3-year grant period, serve underserved areas, spur economic development (especially rural or disadvantaged communities), provide other public benefits, expand network connectivity, or are Corridor Identification and Development Program routes run by Amtrak. Grants may fund up to 6 years of operating support and cannot be renewed. No more than 6 grants can be active at once. Maximum federal shares of projected net operating costs are 90% in year 1, 80% in year 2, 70% in year 3, 60% in year 4, 50% in year 5, and 30% in year 6. Recipients may combine these grants with other federal grants. Grants remain available until spent. If a non‑Amtrak carrier gets a grant, Amtrak may have to provide access to its reservation system, stations, and facilities, and the Secretary may pay Amtrak part of the grant for that access. Grant recipients must enter agreements that require reporting of route performance, finances, ridership, and plans; the Secretary can pay in installments and can end a grant if service stops or terms are broken. Within 4 years after the Passenger Rail Reform and Investment Act of 2015 was enacted, the Secretary must report to Congress on implementation, funded projects’ status and performance, recipients’ plans for continued operation and funding, and any legislative suggestions.