49 U.S.C. § 22902 — Capital investment grants to support intercity passenger rail service
submitted 18 years ago by Pub. L. 110-432 to r/title-49-TRANSPORTATION · 2,376 words · no verdicts yet
The Secretary of Transportation may give grants to help pay for capital costs of intercity passenger rail. Projects must fit an approved State rail plan, meet safety rules, and score well on selection criteria. Federal grants usually cover up to 80 percent of net project cost, with extra rules for very large projects.
(a) General Authority.
(1) The Secretary of Transportation may give grants to an applicant* to help pay for the capital costs of facilities, infrastructure, and equipment needed to provide or improve intercity passenger rail transportation.
(2) The Secretary must attach whatever terms, conditions, requirements, and provisions are necessary or appropriate to each grant — including rules for what happens to increases in the value of real property because of the project. The Secretary must also set procedures and schedules for awarding grants, including how to apply and qualify, and must keep a record of decisions on whether an applicant is eligible. The Secretary had to issue a final rule on these procedures within 2 years of the Passenger Rail Investment and Improvement Act of 2008. Until that rule came out (or 2 years passed, whichever came first), the Secretary had to issue interim guidance and run the grant program under that guidance instead.
(b) Project as Part of State Rail Plan.
(1) The Secretary cannot approve a grant unless two things are true: the project is part of a State rail plan (developed under chapter 227 of this title, or under a related 2008 planning requirement); and the applicant or recipient has, or will have, the legal, financial, and technical ability to carry out the project, keeps satisfactory ongoing control over the equipment or facilities, and is willing and able to maintain them.
(2) The applicant must give the Secretary enough information to support those findings.
(3) If the applicant didn't pick its proposed service operator through a competitive process, it must give the Secretary a written explanation of why that operator is the best choice — considering price and other factors — and show that using this operator won't needlessly raise the project's cost.
(c) Project Selection Criteria. When picking who gets financial assistance, the Secretary must do three things.
(1) Require: that the project is part of an approved State rail plan; that the applicant or recipient has the legal, financial, and technical capacity described above; that the applicant gives enough information to support these findings; that, if the operator wasn't chosen competitively, the applicant explains why it's the best choice considering cost and other factors; that the project meets all applicable safety and security rules; and that the project is compatible with, and follows, State transportation plans and the national rail plan, if one exists.
(2) Choose projects that are expected to significantly improve intercity rail passenger service — looking at things like expected ridership, better on-time performance, shorter trip times, more frequent service, or other real service improvements measured against minimum standards; expected benefits to air or highway traffic congestion, capacity, or safety; and whether the Surface Transportation Board identified the project as necessary to improve on-time performance and reliability. The Secretary must also choose projects where there's high confidence the project will work and deliver those benefits — based on things like environmental compliance completed early, how ready the project is to start, the timing and size of future funding not yet committed, host railroads' commitment to deliver the benefits, and other relevant factors. And the Secretary must choose projects where the expected benefits compare well to the federal funding requested.
(3) Give extra weight to projects expected to benefit other transportation modes and the public generally — for example, by connecting directly to airports, bus terminals, subway stations, or ferry ports; improving freight or commuter rail; encouraging positive train control technology; buying environmentally friendly, fuel-efficient equipment; creating economic and job benefits; encouraging State and private contributions to stations and efficiency; or otherwise supporting intercity passenger rail as described in section 5302(a)(1)(G). The Secretary must also favor projects with fair financial participation from others — such as donated property or services, financial contributions from freight and commuter railroads that benefit, and financial commitments from host railroads and other non-federal or non-governmental sources.
(d) State Rail Plans. State rail plans finished before the 2008 Passenger Rail Investment and Improvement Act, that the Secretary decides substantially meet chapter 227's requirements, are treated as meeting the requirement in subsection (c)(1)(A) above.
(e) Amtrak Eligibility. To get a grant under this section, Amtrak may sign a cooperative agreement with one or more States to carry out projects from a State rail plan's ranked project list. For this kind of grant, Amtrak cannot use certain federal funds (authorized under section 101(a) or (c) of the 2008 Act) to cover its share of the non-federal matching requirement described in subsection (g).
(f) Letters of Intent and Early Systems Work Agreements.
(1) The Secretary may send an applicant a "letter of intent" — announcing a plan to commit future budget money, up to the amount the Secretary agreed to contribute to a major capital project*.
(2) At least 30 days before sending that letter, the Secretary must notify, in writing, the relevant House and Senate committees on transportation and appropriations, including a copy of the proposed letter, the selection criteria used, and how the project meets them.
(3) Any actual commitment of money can only happen once Congress appropriates the funds. The letter of intent itself must say the commitment is not yet a binding federal obligation, and depends on future appropriations and any relevant laws.
(g) Federal Share of Net Project Cost.
(1) The Secretary must estimate the project's net cost, based on engineering and economic feasibility studies and expected use of the equipment or facilities. A grant cannot cover more than 80 percent of that net capital cost. When deciding which future funding commitments to make, the Secretary must give priority to applicants asking for a lower federal share.
(2) Up to another 20 percent of the required non-federal money can come from other federal agencies' funds, as long as those funds are allowed to be spent on transportation.
(3) A limited credit — up to $15,000,000 per fiscal year — is available to help applicants meet their matching requirement. For fiscal years 2009 through 2011, this credit equals half the applicant's average yearly spending (from 2002 through 2008) on intercity passenger rail capital projects, plus half its average yearly spending on that service's operating costs. For fiscal years 2010 through 2012, it instead equals half of any amount by which the applicant's capital-and-operating spending in the prior year went above its 2006–2008 average. The Secretary can ask for proof of this spending. Credits from one fiscal year can only be used toward grants awarded that same year.
(4) The federal share of capital improvement costs under this chapter can never go above 100 percent.
(h) 2-Year Availability. Money appropriated under this section stays available until it's spent. But if a grant recipient doesn't commit or spend its grant money for its intended purpose within 2 years of receiving it, that money goes back to the Secretary, who can use it for other intercity passenger rail projects.
(i) Cooperative Agreements.
(1) A metropolitan planning organization, State transportation department, or other project sponsor can partner with any public, private, or nonprofit group to jointly carry out a grant-funded project.
(2) That partner can participate by owning or operating land, facilities, or vehicles tied to the project; sharing project costs; handling administration, construction, or operations; or in any other way the Secretary approves.
(3) A State can pass along ("suballocate") its funds under this section to any such partner.
(j) Large Capital Project Requirements. For any grant over $1,000,000,000, extra rules apply.
(1) The Secretary cannot commit any funding unless the applicant proves it has committed, and can deliver, its required non-federal share on schedule. The Secretary also cannot fund work after final design is done unless: the applicant submits a financial plan showing where later funding will come from; the grant produces a usable, operationally independent piece of the project; and the grantee spells out, and the Secretary approves, the specific passenger rail benefits expected — like higher speeds, better reliability, shorter trips, more frequent service, new service, safety gains, or better accessibility. Once that usable piece is placed in service, the Secretary must make sure it stays maintained at the level needed to keep delivering those approved benefits for 20 years. If it isn't properly maintained for a full 12-month period, the grant recipient must pay back a share of the federal money — based on how much of that 20-year period is left.
(2) The Secretary can let a grantee under this subsection start some at-risk work after final design is done, if the Secretary decides that work is reasonable and necessary.
(k) Small Capital Projects. Starting in fiscal year 2009, the Secretary must set aside at least 5 percent of certain 2008-authorized funds each year for grants of $2,000,000 or less, for eligible capital projects, including certain costs the 2008 Act allows. For these smaller grants, the Secretary can waive some requirements of this section, including the State rail plan requirement, as appropriate.
(l) Nonmotorized Transportation Access and Storage. Grants under this chapter can also pay to give trains access for nonmotorized transportation, such as bicycles, and recreational equipment, and to provide storage space on trains for that equipment and other luggage, to keep passengers safe.
The Secretary of Transportation may make grants under this section to an applicant* to assist in financing the capital costs of facilities, infrastructure, and equipment necessary to provide or improve intercity passenger rail transportation.
Consistent with the requirements of this chapter, the Secretary shall require that a grant under this section be subject to the terms, conditions, requirements, and provisions the Secretary decides are necessary or appropriate for the purposes of this section, including requirements for the disposition of net increases in value of real property resulting from the project assisted under this section and shall prescribe procedures and schedules for the awarding of grants under this title, including application and qualification procedures and a record of decision on applicant eligibility. The Secretary shall issue a final rule establishing such procedures not later than 2 years after the date of enactment of the Passenger Rail Investment and Improvement Act of 2008. For the period prior to the earlier of the issuance of such a rule or 2 years after the date of enactment of such Act, the Secretary shall issue interim guidance to applicants covering such procedures, and administer the grant program authorized under this section pursuant to such guidance.
The Secretary may not approve a grant for a project under this section unless the Secretary finds that the project is part of a State rail plan developed under chapter 227 of this title, or under the plan required by section 211 of the Passenger Rail Investment and Improvement Act of 2008, and that the applicant or recipient has or will have the legal, financial, and technical capacity to carry out the project, satisfactory continuing control over the use of the equipment or facilities, and the capability and willingness to maintain the equipment or facilities.
An applicant shall provide sufficient information upon which the Secretary can make the findings required by this subsection.
If an applicant has not selected the proposed operator of its service competitively, the applicant shall provide written justification to the Secretary showing why the proposed operator is the best, taking into account price and other factors, and that use of the proposed operator will not unnecessarily increase the cost of the project.
The Secretary, in selecting the recipients of financial assistance to be provided under subsection (a), shall—
require—
that the project be part of a State rail plan developed under chapter 227 of this title, or under the plan required by section 211 of the Passenger Rail Investment and Improvement Act of 2008;
that the applicant or recipient has or will have the legal, financial, and technical capacity to carry out the project, satisfactory continuing control over the use of the equipment or facilities, and the capability and willingness to maintain the equipment or facilities;
that the applicant provides sufficient information upon which the Secretary can make the findings required by this subsection;
that if an applicant has selected the proposed operator of its service competitively, that the applicant provide written justification to the Secretary showing why the proposed operator is the best, taking into account costs and other factors;
that each proposed project meet all safety and security requirements that are applicable to the project under law; and
that each project be compatible with, and operated in conformance with—
plans developed pursuant to the requirements of section 135 of title 23, United States Code; and
the national rail plan (if it is available);
select projects—
that are anticipated to result in significant improvements to intercity rail passenger service, including, but not limited to, consideration of—
the project’s levels of estimated ridership, increased on-time performance, reduced trip time, additional service frequency to meet anticipated or existing demand, or other significant service enhancements as measured against minimum standards developed under section 207 of the Passenger Rail Investment and Improvement Act of 2008;
the project’s anticipated favorable impact on air or highway traffic congestion, capacity, or safety; and
identification of the project by the Surface Transportation Board as necessary to improve the on-time performance and reliability of intercity passenger rail under section 24308(f);
for which there is a high degree of confidence that the proposed project is feasible and will result in the anticipated benefits, as indicated by—
the project’s precommencement compliance with environmental protection requirements;
the readiness of the project to be commenced;
the timing and amount of the project’s future noncommitted investments;
the commitment of any affected host rail carrier to ensure the realization of the anticipated benefits; and
other relevant factors as determined by the Secretary; and
for which the level of the anticipated benefits compares favorably to the amount of Federal funding requested under this chapter; and
give greater consideration to projects—
that are anticipated to result in benefits to other modes of transportation and to the public at large, including, but not limited to, consideration of the project’s—
encouragement of intermodal connectivity through provision of direct connections between train stations, airports, bus terminals, subway stations, ferry ports, and other modes of transportation;
anticipated improvement of freight or commuter rail operations;
encouragement of the use of positive train control technologies;
environmental benefits, including projects that involve the purchase of environmentally sensitive, fuel-efficient, and cost-effective passenger rail equipment;
anticipated positive economic and employment impacts;
encouragement of State and private contributions toward station development, energy and environmental efficiency, and economic benefits; and
falling under the description in section 5302(a)(1)(G) 1 of this title as defined to support intercity passenger rail service*; and
that incorporate equitable financial participation in the project’s financing, including, but not limited to, consideration of—
donated property interests or services;
financial contributions by freight and commuter rail carriers commensurate with the benefit expected to their operations; and
financial commitments from host railroads, non-Federal governmental entities, nongovernmental entities, and others.
State rail plans completed before the date of enactment of the Passenger Rail Investment and Improvement Act of 2008 that substantially meet the requirements of chapter 227 of this title, as determined by the Secretary pursuant to section 22506 1 of this title, shall be deemed by the Secretary to have met the requirements of subsection (c)(1)(A) of this section.
To receive a grant under this section, Amtrak may enter into a cooperative agreement with 1 or more States to carry out 1 or more projects on a State rail plan’s ranked list of rail capital projects developed under section 22504(a)(5) 1 of this title. For such a grant, Amtrak may not use Federal funds authorized under section 101(a) or (c) of the Passenger Rail Investment and Improvement Act of 2008 to fulfill the non-Federal share requirements under subsection (g) of this section.
The Secretary may issue a letter of intent to an applicant announcing an intention to obligate, for a major capital project* under this section, an amount from future available budget authority specified in law that is not more than the amount stipulated as the financial participation of the Secretary in the project.
At least 30 days before issuing a letter under paragraph (1) of this subsection, the Secretary shall notify in writing the Committee on Transportation and Infrastructure of the House of Representatives, the Committee on Commerce, Science, and Transportation of the Senate, and the House and Senate Committees on Appropriations of the proposed letter or agreement. The Secretary shall include with the notification a copy of the proposed letter or agreement, the criteria used in subsection (c) for selecting the project for a grant award, and a description of how the project meets such criteria.
An obligation or administrative commitment may be made only when amounts are appropriated. The letter of intent shall state that the contingent commitment is not an obligation of the Federal Government, and is subject to the availability of appropriations under Federal law and to Federal laws in force or enacted after the date of the contingent commitment.
Based on engineering studies, studies of economic feasibility, and information on the expected use of equipment or facilities, the Secretary shall estimate the net project cost.
A grant for the project shall not exceed 80 percent of the project net capital cost.
The Secretary shall give priority in allocating future obligations and contingent commitments to incur obligations to grant requests seeking a lower Federal share of the project net capital cost.
Up to an additional 20 percent of the required non-Federal funds may be funded from amounts appropriated to or made available to a department or agency of the Federal Government that are eligible to be expended for transportation.
The following amounts, not to exceed $15,000,000 per fiscal year, shall be available to each applicant as a credit toward an applicant’s matching requirement for a grant awarded under this section—
in each of fiscal years 2009, 2010, and 2011—
50 percent of the average of amounts expended in fiscal years 2002 through 2008 by an applicant for capital projects related to intercity passenger rail service; and
50 percent of the average of amounts expended in fiscal years 2002 through 2008 by an applicant for operating costs of such service; and
in each of fiscal years 2010, 2011 and 2012, 50 percent of the amount by which the amounts expended for capital projects and operating costs related to intercity passenger rail service by an applicant in the prior fiscal year exceed the average capital and operating expenditures made for such service in fiscal years 2006, 2007, and 2008.
The Secretary may require such information as necessary to verify such expenditures. Credits made available to an applicant in a fiscal year under this paragraph may only be applied towards grants awarded in that fiscal year.
The Federal share of expenditures for capital improvements under this chapter may not exceed 100 percent.
Funds appropriated under this section shall remain available until expended. If any amount provided as a grant under this section is not obligated or expended for the purposes described in subsection (a) within 2 years after the date on which the State received the grant, such sums shall be returned to the Secretary for other intercity passenger rail development projects under this section at the discretion of the Secretary.
A metropolitan planning organization, State transportation department, or other project sponsor may enter into an agreement with any public, private, or nonprofit entity to cooperatively implement any project funded with a grant under this chapter.
Participation by an entity under paragraph (1) may consist of—
ownership or operation of any land, facility, locomotive, rail car, vehicle, or other physical asset associated with the project;
cost-sharing of any project expense;
carrying out administration, construction management, project management, project operation, or any other management or operational duty associated with the project; and
any other form of participation approved by the Secretary.
A State may allocate funds under this section to any entity described in paragraph (1).
For a grant awarded under this chapter for an amount in excess of $1,000,000,000, the following conditions shall apply:
The Secretary may not obligate any funding unless the applicant demonstrates, to the satisfaction of the Secretary, that the applicant has committed, and will be able to fulfill, the non-Federal share required for the grant within the applicant’s proposed project completion timetable.
The Secretary may not obligate any funding for work activities that occur after the completion of final design unless—
the applicant submits a financial plan to the Secretary that generally identifies the sources of the non-Federal funding required for any subsequent segments or phases of the corridor service development program covering the project for which the grant is awarded;
the grant will result in a useable segment, a transportation facility, or equipment, that has operational independence; and
the intercity passenger rail benefits anticipated to result from the grant, such as increased speed, improved on-time performance, reduced trip time, increased frequencies, new service, safety improvements, improved accessibility, or other significant enhancements, are detailed by the grantee and approved by the Secretary.
The Secretary shall ensure that the project is maintained to the level of utility that is necessary to support the benefits approved under subparagraph (B)(iii) for a period of 20 years from the date on which the useable segment, transportation facility, or equipment described in subparagraph (B)(ii) is placed in service.
If the project property is not maintained as required under clause (i) for a 12-month period, the grant recipient shall refund a pro-rata share of the Federal contribution, based upon the percentage remaining of the 20-year period that commenced when the project property was placed in service.
The Secretary may allow a grantee subject to this subsection to engage in at-risk work activities subsequent to the conclusion of final design if the Secretary determines that such work activities are reasonable and necessary.
The Secretary shall make not less than 5 percent annually available from the amounts authorized under section 101(c) of the Passenger Rail Investment and Improvement Act of 2008 beginning in fiscal year 2009 for grants for capital projects eligible under this section not exceeding $2,000,000, including costs eligible under section 209(d) 1 of that Act. For grants awarded under this subsection, the Secretary may waive requirements of this section, including State rail plan requirements, as appropriate.
Grants under this chapter may be used to provide access to rolling stock for nonmotorized transportation, including bicycles, and recreational equipment, and to provide storage capacity in trains for such transportation, equipment, and other luggage, to ensure passenger safety.
Source credit: (Added Pub. L. 110–432, div. B, title III, § 301(a), Oct. 16, 2008, 122 Stat. 4936, § 24402; amended Pub. L. 114–94, div. A, title XI, §§ 11303(b)(1)(C), 11309, Dec. 4, 2015, 129 Stat. 1654, 1669; renumbered § 22902 and amended Pub. L. 115–420, § 7(a)(1), (b)(1)(A), Jan. 3, 2019, 132 Stat. 5445, 5446.)
- 2008Enacted · Pub. L. 110-432 · 122 Stat. 4936
- 2015Amended · Pub. L. 114-94 · 129 Stat. 1654, 1669
- 2019Amended · Pub. L. 115-420 · 132 Stat. 5445, 5446
A history note hasn’t been published yet. The record shows enactment by Pub. L. 110-432 on 2008-10-16.
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