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49 U.S.C. § 22905Grant conditions

submitted 18 years ago by Pub. L. 110-432 to r/title-49-TRANSPORTATION · 1,904 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section sets conditions on rail grants. Grant money must generally buy American-made steel, iron, and goods, with limited waivers. Grants also require labor and infrastructure agreements, plus worker protections when a new company replaces Amtrak service.

(a) Buy America. If the Secretary of Transportation gives money for a project under this chapter, the steel, iron, and manufactured goods used in the project must be made in the United States. The Secretary can waive this rule if: following it would go against the public interest; American steel, iron, or goods are not available in a big enough amount or good enough quality; rolling stock or engines cannot be bought and delivered in the U.S. within a reasonable time; or using American materials would raise the project's total cost by more than 25 percent. When figuring costs for this rule, labor costs for final assembly are not counted. Before any waiver takes effect, the Secretary must publish a detailed written justification in the Federal Register and let the public comment for up to 15 days. By December 31, 2012, the Secretary had to report to Congress on any waivers granted. The Secretary cannot waive this rule for goods from a foreign country if that country has an agreement with the U.S. to waive the rule but has broken the agreement by discriminating against American-made goods. A person cannot get a contract or subcontract under this chapter if a court or government agency finds they intentionally labeled foreign-made goods "Made in America," or falsely claimed such goods were American-made, when using them in a covered project. The Secretary cannot stop a State from setting even stricter "Buy America" requirements than this section, and cannot stop a grant recipient from following those stricter state rules. A manufacturer or supplier who submits an incorrect certification by an honest, accidental, or clerical error may be allowed to fix it after bids open, but must swear under penalty of perjury that the error was accidental, and must prove it. Anyone harmed by a decision under this rule can seek court review under section 702 of title 5. This entire Buy America rule applies only to projects costing more than $100,000. (b) Operators Deemed Rail Carriers and Employers. Anyone who runs trains on rail infrastructure built or improved with a grant under this chapter is treated as a "rail carrier" (as this title defines that term) for every purpose, including under three labor laws: the Railroad Retirement Act of 1974, the Railway Labor Act, and the Railroad Unemployment Insurance Act. (c) Grant Conditions. Before giving a grant for a project that uses railroad-owned tracks, the Secretary must require a written agreement between the applicant and the railroad. That agreement must address any payment for using the tracks, assurances that there is enough capacity for both current and future freight and passenger trains, a railroad promise that its union contracts with employees will stay in full force, and an assurance that the applicant follows liability rules consistent with section 28103. The applicant must also agree to follow the same construction standards Amtrak follows under section 24312 (as that section read on September 1, 2003), and to give affected employees protections equivalent to those in section 22404. (d) Replacement of Existing Intercity Passenger Rail Service. If a new company starts intercity passenger rail service funded by a grant under this chapter, and that service replaces service Amtrak used to provide, the new company generally must reach a deal with the union representing the displaced Amtrak-predecessor workers. This does not apply if Amtrak only provided the service to another company, or if Amtrak had already stopped running that route more than three years before the new service starts. The deal must give those workers hiring priority, by seniority, for matching jobs that open up within three years; set up a way to notify them of openings; let them apply; and set their pay, rules, and working conditions. If the new service starts at or shortly before the old service ends, the new company must give the union at least 90 days' written notice before starting service. Negotiations must begin within 5 days of that notice and continue for up to 30 days. If no deal is reached in 30 days, the unresolved issues go to arbitration: the parties pick an arbitrator, or if they cannot agree within 5 days, the National Mediation Board supplies a list of seven candidates and the parties alternately strike names until one remains. That arbitrator holds a hearing within 45 days, decides the unresolved issues guided by standard national pay and benefit rates for similar work, and the decision is final and binding; the arbitrator's own costs are split evenly between the parties. The new company cannot start service until an agreement or arbitration decision is in place. If a replacement happens later — within three years after the new company already began service — the same kind of deal is required, and if there is no agreement within 60 days, the same arbitration process applies, except the arbitrator must decide within 20 days. (e) Inapplicability to Certain Rail Operations. None of this section applies to: commuter rail operations run by a State or local government authority (or its contractor) that qualifies for section 5307 funding; the Alaska Railroad or its contractors; or Amtrak's existing legal right to access railroad tracks and facilities. (f) Limitation. No grants under this chapter may be used for commuter rail passenger transportation.
the actual law source: uscode.house.gov ↗public domain
(a)Buy America.—
(1)

The Secretary of Transportation may obligate an amount that may be appropriated to carry out this chapter for a project only if the steel, iron, and manufactured goods used in the project are produced in the United States.

(2)

The Secretary of Transportation may waive paragraph (1) of this subsection if the Secretary finds that—

(A)

applying paragraph (1) would be inconsistent with the public interest;

(B)

the steel, iron, and goods produced in the United States are not produced in a sufficient and reasonably available amount or are not of a satisfactory quality;

(C)

rolling stock or power train equipment cannot be bought and delivered in the United States within a reasonable time; or

(D)

including domestic material will increase the cost of the overall project by more than 25 percent.

(3)

For purposes of this subsection, in calculating the components’ costs, labor costs involved in final assembly shall not be included in the calculation.

(4)

If the Secretary determines that it is necessary to waive the application of paragraph (1) based on a finding under paragraph (2), the Secretary shall, before the date on which such finding takes effect—

(A)

publish in the Federal Register a detailed written justification as to why the waiver is needed; and

(B)

provide notice of such finding and an opportunity for public comment on such finding for a reasonable period of time not to exceed 15 days.

(5)

Not later than December 31, 2012, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on any waivers granted under paragraph (2).

(6)

The Secretary of Transportation may not make a waiver under paragraph (2) of this subsection for goods produced in a foreign country if the Secretary, in consultation with the United States Trade Representative, decides that the government of that foreign country—

(A)

has an agreement with the United States Government under which the Secretary has waived the requirement of this subsection; and

(B)

has violated the agreement by discriminating against goods to which this subsection applies that are produced in the United States and to which the agreement applies.

(7)

A person is ineligible to receive a contract or subcontract made with amounts authorized under this chapter if a court or department, agency, or instrumentality of the Government decides the person intentionally—

(A)

affixed a “Made in America” label, or a label with an inscription having the same meaning, to goods sold in or shipped to the United States that are used in a project to which this subsection applies but not produced in the United States; or

(B)

represented that goods described in subparagraph (A) of this paragraph were produced in the United States.

(8)

The Secretary may not impose any limitation on assistance provided under this chapter that restricts a State from imposing more stringent requirements than this subsection on the use of articles, materials, and supplies mined, produced, or manufactured in foreign countries in projects carried out with that assistance or restricts a recipient of that assistance from complying with those State-imposed requirements.

(9)

The Secretary may allow a manufacturer or supplier of steel, iron, or manufactured goods to correct after bid opening any certification of noncompliance or failure to properly complete the certification (but not including failure to sign the certification) under this subsection if such manufacturer or supplier attests under penalty of perjury that such manufacturer or supplier submitted an incorrect certification as a result of an inadvertent or clerical error. The burden of establishing inadvertent or clerical error is on the manufacturer or supplier.

(10)

A party adversely affected by an agency action under this subsection shall have the right to seek review under section 702 of title 5.

(11)

The requirements of this subsection shall only apply to projects for which the costs exceed $100,000.

(b)Operators Deemed Rail Carriers and Employers for Certain Purposes.—

A person that conducts rail operations over rail infrastructure constructed or improved with funding provided in whole or in part in a grant made under this chapter shall be considered a rail carrier as defined in section 10102(5) of this title for purposes of this title and any other statute that adopts that definition or in which that definition applies, including—

(1)

the Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.);

(2)

the Railway Labor Act (45 U.S.C. 151 et seq.); and

(3)

the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.).

(c)Grant Conditions.—

The Secretary shall require as a condition of making any grant under this chapter for a project that uses rights-of-way owned by a railroad that—

(1)

a written agreement exist between the applicant and the railroad regarding such use and ownership, including—

(A)

any compensation for such use;

(B)

assurances regarding the adequacy of infrastructure capacity to accommodate both existing and future freight and passenger operations;

(C)

an assurance by the railroad that collective bargaining agreements with the railroad’s employees (including terms regulating the contracting of work) will remain in full force and effect according to their terms for work performed by the railroad on the railroad transportation corridor; and

(D)

an assurance that an applicant complies with liability requirements consistent with section 28103 of this title; and

(2)

the applicant agrees to comply with—

(A)

the standards of section 24312 of this title, as such section was in effect on September 1, 2003, with respect to the project in the same manner that Amtrak is required to comply with those standards for construction work financed under an agreement made under section 24308(a) of this title; and

(B)

the protective arrangements that are equivalent to the protective arrangements established under section 22404 with respect to employees affected by actions taken in connection with the project to be financed in whole or in part by grants under this chapter.

(d)Replacement of Existing Intercity Passenger Rail Service.—
(1)Collective bargaining agreement for intercity passenger rail projects.—

Any entity providing intercity passenger railroad transportation that begins operations after the date of enactment of this Act 1 on a project funded in whole or in part by grants made under this chapter and replaces intercity rail passenger service that was provided by Amtrak, unless such service was provided solely by Amtrak to another entity or unless Amtrak ceased providing intercity passenger railroad transportation over the affected route more than 3 years before the commencement of new service, as of such date shall enter into an agreement with the authorized bargaining agent or agents for adversely affected employees of the predecessor provider that—

(A)

gives each such qualified employee of the predecessor provider priority in hiring according to the employee’s seniority on the predecessor provider for each position with the replacing entity that is in the employee’s craft or class and is available within 3 years after the termination of the service being replaced;

(B)

establishes a procedure for notifying such an employee of such positions;

(C)

establishes a procedure for such an employee to apply for such positions; and

(D)

establishes rates of pay, rules, and working conditions.

(2)Immediate replacement service.—
(A)Negotiations.—

If the replacement of preexisting intercity rail passenger service occurs concurrent with or within a reasonable time before the commencement of the replacing entity’s rail passenger service, the replacing entity shall give written notice of its plan to replace existing rail passenger service to the authorized collective bargaining agent or agents for the potentially adversely affected employees of the predecessor provider at least 90 days before the date on which it plans to commence service. Within 5 days after the date of receipt of such written notice, negotiations between the replacing entity and the collective bargaining agent or agents for the employees of the predecessor provider shall commence for the purpose of reaching agreement with respect to all matters set forth in subparagraphs (A) through (D) of paragraph (1). The negotiations shall continue for 30 days or until an agreement is reached, whichever is sooner. If at the end of 30 days the parties have not entered into an agreement with respect to all such matters, the unresolved issues shall be submitted for arbitration in accordance with the procedure set forth in subparagraph (B).

(B)Arbitration.—

If an agreement has not been entered into with respect to all matters set forth in subparagraphs (A) through (D) of paragraph (1) as described in subparagraph (A) of this paragraph, the parties shall select an arbitrator. If the parties are unable to agree upon the selection of such arbitrator within 5 days, either or both parties shall notify the National Mediation Board, which shall provide a list of seven arbitrators with experience in arbitrating rail labor protection disputes. Within 5 days after such notification, the parties shall alternately strike names from the list until only 1 name remains, and that person shall serve as the neutral arbitrator. Within 45 days after selection of the arbitrator, the arbitrator shall conduct a hearing on the dispute and shall render a decision with respect to the unresolved issues among the matters set forth in subparagraphs (A) through (D) of paragraph (1). The arbitrator shall be guided by prevailing national standard rates of pay, benefits, and working conditions for comparable work. This decision shall be final, binding, and conclusive upon the parties. The salary and expenses of the arbitrator shall be borne equally by the parties; all other expenses shall be paid by the party incurring them.

(3)Service commencement.—

A replacing entity under this subsection shall commence service only after an agreement is entered into with respect to the matters set forth in subparagraphs (A) through (D) of paragraph (1) or the decision of the arbitrator has been rendered.

(4)Subsequent replacement of service.—

If the replacement of existing rail passenger service takes place within 3 years after the replacing entity commences intercity passenger rail service, the replacing entity and the collective bargaining agent or agents for the adversely affected employees of the predecessor provider shall enter into an agreement with respect to the matters set forth in subparagraphs (A) through (D) of paragraph (1). If the parties have not entered into an agreement with respect to all such matters within 60 days after the date on which the replacing entity replaces the predecessor provider, the parties shall select an arbitrator using the procedures set forth in paragraph (2)(B), who shall, within 20 days after the commencement of the arbitration, conduct a hearing and decide all unresolved issues. This decision shall be final, binding, and conclusive upon the parties.

(e)Inapplicability to Certain Rail Operations.—

Nothing in this section applies to—

(1)

commuter rail passenger transportation (as defined in section 24102) operations of a State or local governmental authority (as those terms are defined in section 5302) eligible to receive financial assistance under section 5307 of this title, or to its contractor performing services in connection with commuter rail passenger operations (as so defined);

(2)

the Alaska Railroad or its contractors; or

(3)

Amtrak’s access rights to railroad rights of way and facilities under current law.

(f)Limitation.—

No grants shall be provided under this chapter for commuter rail passenger transportation (as defined in section 24102(3)).

Source credit: (Added Pub. L. 110–432, div. B, title III, § 301(a), Oct. 16, 2008, 122 Stat. 4942, § 24405; amended Pub. L. 114–94, div. A, title XI, § 11303(b)(1)(D), Dec. 4, 2015, 129 Stat. 1654; renumbered § 22905 and amended Pub. L. 115–420, § 7(a)(1), (b)(1)(B), (2)(C), Jan. 3, 2019, 132 Stat. 5445, 5446; Pub. L. 117–58, div. B, title I, § 21301(j)(4)(D), Nov. 15, 2021, 135 Stat. 693.)

history & why it existsrecord from the source credit
  • 2008Enacted · Pub. L. 110-432 · 122 Stat. 4942
  • 2015Amended · Pub. L. 114-94 · 129 Stat. 1654
  • 2019Amended · Pub. L. 115-420 · 132 Stat. 5445, 5446
  • 2021Amended · Pub. L. 117-58 · 135 Stat. 693

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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