49 U.S.C. § 22908 — Restoration and enhancement grants

(a) Definitions. In this section, "applicant" means a State (including D.C.), a group of States, an interstate compact entity, a public agency created by States, a political subdivision, a federally recognized Indian Tribe, Amtrak or another intercity rail carrier, a rail carrier partnering with one of those entities, or any combination of them. "Operating assistance" means the operating costs allocated to a route under the cost-sharing method in the Passenger Rail Investment and Improvement Act of 2008 or section 24712. (b) Grants Authorized. The Secretary must create a competitive program awarding operating assistance grants to applicants to start, restore, or improve intercity rail passenger service. (c) Application. An applicant must submit: a capital and mobilization plan describing needed investments, planning steps like environmental review, and mobilization steps like training crews, with a timeline; an operating plan covering who will run the trains and other services, how often trains will run, routes and schedules, stations to be used, projected riders and revenue with an explanation of how those numbers were figured, the equipment to be used and how it will be acquired and maintained, and a safety plan; a funding plan showing how the first six years of capital and operating costs will be paid, including a funding commitment beyond federal money, and how costs will be covered after year six; and a status report on negotiations with railroads or transit authorities whose tracks will be used, the planned operator (if not part of the applicant group), and any other needed service providers, including Amtrak access if Amtrak is not part of the group. (d) Priorities. The Secretary favors applications that: are already fully or nearly ready to launch; would restore formerly Amtrak-operated routes; would add daily or daytime service where none existed; include funding or real participation from State, local, regional, or private sources; show the service can be financially sustainable after the 3-year grant period; would serve regions with little other intercity transportation; would boost economic development, especially in rural or disadvantaged areas; would provide other non-transportation benefits; would improve connections across the national passenger rail network; or cover routes chosen under the Corridor Identification and Development Program and run by Amtrak. (e) Limitations. A grant for any single route cannot last more than 6 years and cannot be renewed. No more than 6 of these operating grants can be active at the same time. The federal share of net operating costs shrinks over time: up to 90 percent in year one, 80 percent in year two, 70 percent in year three, 60 percent in year four, 50 percent in year five, and 30 percent in year six. (f) Use With Capital Grants and Other Federal Funding. A recipient may combine this grant with other federal grants that help the same service. (g) Availability. Money for this section stays available until spent. (h) Coordination With Amtrak. If the Secretary awards a grant to a rail carrier other than Amtrak, Amtrak may have to give that carrier access to its reservation system, stations, and related facilities, consistent with section 24711(c)(1). The Secretary may pay Amtrak part of the grant as compensation for that access. (i) Conditions. A grant recipient must sign an agreement to report route performance, financial results, ridership projections, and capital and business plans — similar to what Amtrak must report — plus anything else the Secretary requires. The Secretary may pay grants in installments and may end a grant agreement if service stops or any grant term is violated. Every recipient must also follow the grant conditions in section 22905. (j) Report. Within 4 years of this section's enabling law, the Secretary must report to Congress on how this section is being carried out, the status of funded investments and operations, how the funded routes are performing, recipients' plans to keep operating and funding the routes, and any recommendations for new legislation.