49 U.S.C. § 22301 — Capital grants for class II and class III railroads
submitted 19 years ago by Pub. L. 110-140 to r/title-49-TRANSPORTATION · 693 words · no verdicts yet
The Secretary of Transportation must create a grant program to pay for capital projects at small freight railroads. Grants can fund track repairs or new fuel-saving technology, and cover up to 80% of a project's cost. The law also protects railroad workers, requires fair wages, and authorizes $50,000,000 per year from 2008 through 2011.
(a) Establishing the Program.
(1) Establishment. The Secretary of Transportation must set up a program of capital grants for class II and class III railroads. These are smaller freight railroads, not the biggest national ones. The grants must pay for projects that serve the public interest. A project qualifies if it does one of two things. First, it can fix up track, bridges, and related structures used mainly for freight, help railroads carry more freight, and cut down on less fuel-efficient ways of shipping goods. Second, it can test new technology and research that raises fuel economy, cuts greenhouse gases, and lowers costs.
(2) Provision of grants. Grants can go straight to a class II or III railroad. They can also go to a State or local government, but only if the railroad agrees.
(3) State cooperation. Railroads applying for a grant are encouraged to get help from their State's transportation agency. States are encouraged to offer that help.
(4) Regulations. The Secretary had to issue final rules for the program by October 1, 2008.
(b) Maximum Federal Share. The federal government can pay at most 80 percent of a project's cost. The rest must come from a non-federal source — cash, equipment, or supplies. The Secretary can approve other kinds of non-cash contributions case by case.
(c) Use of Funds. Grant money must be used quickly to pay for track projects. The grant recipient must legally commit ("obligate") the funds by the end of the third federal fiscal year after the grant was awarded. Any money not committed by then goes back to the Secretary to give to another project.
(d) Employee Protection. As a condition of any grant, the Secretary must require the railroad to protect the interests of workers affected by the project. That protection must be at least as strong as the terms in section 11326(a) as it existed when this chapter became law.
(e) Labor Standards.
(1) Prevailing wages. Workers on construction paid for by a grant must be paid at least the going local wage for similar work. The Secretary of Labor sets that wage under the law commonly called the Davis-Bacon Act. The Secretary of Transportation can only give the grant after confirming these wage rules will be followed.
(2) Wage rates. If a wage rate comes from a collective bargaining agreement made under the Railway Labor Act, that rate counts as meeting the Davis-Bacon wage rule.
(f) Study. The Secretary must study the grant-funded projects. The study checks whether the program is cutting fuel use in freight transportation and encouraging new technology that improves fuel economy, cuts emissions, and lowers costs. By March 31, 2009, the Secretary had to send a report on the study to the House Committee on Transportation and Infrastructure and the Senate Committee on Commerce, Science, and Transportation, along with any recommendations.
(g) Authorization of Appropriations. Congress authorized $50,000,000 per year for the Secretary to spend on this program in each of fiscal years 2008 through 2011.
The Secretary of Transportation shall establish a program for making capital grants to class II and class III railroads. Such grants shall be for projects in the public interest that—
rehabilitate, preserve, or improve railroad track (including roadbed, bridges, and related track structures) used primarily for freight transportation;
facilitate the continued or greater use of railroad transportation for freight shipments; and
reduce the use of less fuel efficient modes of transportation in the transportation of such shipments; or
demonstrate innovative technologies and advanced research and development that increase fuel economy, reduce greenhouse gas emissions, and lower the costs of operation.
Grants may be provided under this chapter—
directly to the class II or class III railroad; or
with the concurrence of the class II or class III railroad, to a State or local government.
Class II and class III railroad applicants for a grant under this chapter are encouraged to utilize the expertise and assistance of State transportation agencies in applying for and administering such grants. State transportation agencies are encouraged to provide such expertise and assistance to such railroads.
Not later than October 1, 2008, the Secretary shall issue final regulations to implement the program under this section.
The maximum Federal share for carrying out a project under this section shall be 80 percent of the project cost. The non-Federal share may be provided by any non-Federal source in cash, equipment, or supplies. Other in-kind contributions may be approved by the Secretary on a case-by-case basis consistent with this chapter.
Grants provided under this section shall be used to implement track capital projects as soon as possible. In no event shall grant funds be contractually obligated for a project later than the end of the third Federal fiscal year following the year in which the grant was awarded. Any funds not so obligated by the end of such fiscal year shall be returned to the Secretary for reallocation.
The Secretary shall require as a condition of any grant made under this section that the recipient railroad provide a fair arrangement at least as protective of the interests of employees who are affected by the project to be funded with the grant as the terms imposed under section 11326(a), as in effect on the date of the enactment of this chapter.
The Secretary shall ensure that laborers and mechanics employed by contractors and subcontractors in construction work financed by a grant made under this section will be paid wages not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor under subchapter IV of chapter 31 of title 40 (commonly known as the “Davis-Bacon Act”). The Secretary shall make a grant under this section only after being assured that required labor standards will be maintained on the construction work.
Wage rates in a collective bargaining agreement negotiated under the Railway Labor Act (45 U.S.C. 151 et seq.) are deemed for purposes of this subsection to comply with the 1 subchapter IV of chapter 31 of title 40.
The Secretary shall conduct a study of the projects carried out with grant assistance under this section to determine the extent to which the program helps promote a reduction in fuel use associated with the transportation of freight and demonstrates innovative technologies that increase fuel economy, reduce greenhouse gas emissions, and lower the costs of operation. Not later than March 31, 2009, the Secretary shall submit a report to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate on the study, including any recommendations the Secretary considers appropriate regarding the program.
There is authorized to be appropriated to the Secretary $50,000,000 for each of fiscal years 2008 through 2011 for carrying out this section.
Source credit: (Added Pub. L. 110–140, title XI, § 1112(a), Dec. 19, 2007, 121 Stat. 1758; amended Pub. L. 110–432, div. A, title VII, § 701(b), Oct. 16, 2008, 122 Stat. 4906.)
- 2007Enacted · Pub. L. 110-140 · 121 Stat. 1758
- 2008Amended · Pub. L. 110-432 · 122 Stat. 4906
A history note hasn’t been published yet. The record shows enactment by Pub. L. 110-140 on 2007-12-19.
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