Sec. 301. Competitive operating grants
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/bill/114/s/1626/rs/section-301A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Chapter 244 is amended— by striking section 24406; and by inserting after section 24405 the following: In this section, the term applicant means— a State; a group of States; an Interstate Compact; a public agency or publicly chartered authority established by 1 or more States and having responsibility for providing intercity rail passenger transportation or commuter rail passenger transportation; a political subdivision of a State; Amtrak or another rail passenger carrier that provides intercity rail passenger transportation; Any rail carrier in partnership with at least 1 of the entities described in paragraphs
(1)through (5); and any combination of the entities described in paragraphs
(1)through (7). The Secretary of Transportation shall develop and implement a program for issuing 3-year operating assistance grants to applicants, on a competitive basis, for the purpose of initiating, restoring, or enhancing intercity rail passenger service. An applicant for a grant under this section shall submit to the Secretary— a capital and mobilization plan that— describes any capital investments, service planning actions (such as environmental reviews), and mobilization actions (such as qualification of train crews) required for initiation of service; and includes the timeline for undertaking and completing each of the investments and actions referred to in subparagraph (A); an operating plan that describes the planned operation of the service, including— the identity and qualifications of the train operator; the identity and qualifications of any other service providers; service frequency; the planned routes and schedules; the station facilities that will be utilized; projected ridership, revenues, and costs; descriptions of how the projections under subparagraph
(F)were developed; the equipment that will be utilized, how such equipment will be acquired or refurbished, and where such equipment will be maintained; and a plan for ensuring safe operations and compliance with applicable safety regulations; a funding plan that— describes the funding of initial capital costs and operating costs for the first 3 years of operation; includes a commitment by the applicant to provide the funds described in subparagraph
(A)to the extent not covered by Federal grants and revenues; and describes the funding of operating costs and capital costs, to the extent necessary, after the first 3 years of operation; and a description of the status of negotiations and agreements with— each of the railroads or regional transportation authorities whose tracks or facilities would be utilized by the service; the anticipated rail passenger carrier, if such entity is not part of the applicant group; and any other service providers or entities expected to provide services or facilities that will be used by the service, including any required access to Amtrak systems, stations, and facilities if Amtrak is not part of the applicant group. In awarding grants under this section, the Secretary shall give priority to applications— for which planning, design, any environmental reviews, negotiation of agreements, acquisition of equipment, construction, and other actions necessary for initiation of service have been completed or nearly completed; that would restore service over routes formerly operated by Amtrak, including routes with international connections; that would provide daily or daytime service over routes where such service did not previously exist; that include private funding (including funding from railroads), and funding or other significant participation by State, local, and regional governmental and private entities; that include a funding plan that demonstrates the intercity rail passenger service will be financially sustainable beyond the 3-year grant period; that would provide service to regions and communities that are underserved or not served by other intercity public transportation; that would foster economic development, particularly in rural communities and for disadvantaged populations; that would provide other non-transportation benefits; and that would enhance connectivity and geographic coverage of the existing national network of intercity passenger rail service. Federal operating assistance grants authorized under this section for any individual intercity rail passenger transportation route may not provide funding for more than 3 years and may not be renewed. Not more than 6 of the operating assistance grants awarded pursuant to subsection
(b)may be simultaneously active. Grants described in paragraph
(1)may not exceed— 80 percent of the projected net operating costs for the first year of service; 60 percent of the projected net operating costs for the second year of service; and 40 percent of the projected net operating costs for the third year of service. A recipient of an operating assistance grant under subsection
(b)may use that grant in combination with other grants awarded under this chapter or any other Federal funding that would benefit the applicable service. Amounts appropriated for carrying out this section shall remain available until expended. If the Secretary awards a grant under this section to a rail passenger carrier other than Amtrak, Amtrak may be required under section 24711(c)(1) of this title to provide access to its reservation system, stations, and facilities that are directly related to operations to such carrier, to the extent necessary to carry out the purposes of this section. The Secretary may award an appropriate portion of the grant to Amtrak as compensation for this access. The Secretary shall require grant recipients under this section to enter into a grant agreement that requires them to provide similar information regarding the route performance, financial, and ridership projections, and capital and business plans that Amtrak is required to provide, and such other data and information as the Secretary deems necessary. The Secretary may— award grants under this section in installments, as the Secretary considers appropriate; and terminate any grant agreement upon— the cessation of service; or the violation of any other term of the grant agreement. Except as specifically provided in this section, the use of any amounts appropriated for grants under this section shall be subject to the requirements under this chapter. Not later than 4 years after the date of enactment of the Railroad Reform, Enhancement, and Efficiency Act , the Secretary, after consultation with grant recipients under this section, shall submit a report to Congress that describes— the implementation of this section; the status of the investments and operations funded by such grants; the performance of the routes funded by such grants; the plans of grant recipients for continued operation and funding of such routes; and any legislative recommendations. . Chapter 244 is amended— in the table of contents, by inserting after the item relating to section 24405 the following: 24406. Competitive operating grants. ; in the chapter title, by striking and inserting Intercity passenger rail service corridor capital ; Rail capital and operating in section 24401, by striking paragraph (1); in section 24402, by striking subsection
(j)and inserting the following: In this section, the term applicant means a State (including the District of Columbia), a group of States, an Interstate Compact, a public agency or publicly chartered authority established by 1 or more States and having responsibility for providing intercity rail passenger transportation, or a political subdivision of a State. ; and in section 24405— in subsection (b)— by inserting , or for which an operating grant is issued under section 24406, after chapter ; and in paragraph (2), by striking (43 and inserting (45 ; in subsection (d)(1), in the matter preceding subparagraph (A), by inserting or unless Amtrak ceased providing intercity passenger railroad transportation over the affected route more than 3 years before the commencement of new service after unless such service was provided solely by Amtrak to another entity ; in subsection (f), by striking under this chapter for commuter rail passenger transportation, as defined in section 24012(4) of this title. and inserting under this chapter for commuter rail passenger transportation (as defined in section 24102(3)). ; and by adding at the end the following: In carrying out this chapter, the Secretary shall allocate an appropriate portion of the amounts available under this chapter to provide grants to States— in which there is no intercity passenger rail service, for the purpose of funding freight rail capital projects that are on a State rail plan developed under chapter 227 that provide public benefits (as defined in chapter 227), as determined by the Secretary; or in which the rail transportation system is not physically connected to rail systems in the continental United States or may not otherwise qualify for a grant under this section due to the unique characteristics of the geography of that State or other relevant considerations, for the purpose of funding transportation-related capital projects. .