1. U.S. Code
  2. title 49
  3. subtitle V
  4. part B
  5. chapter 221
  6. § 22107

Collapse to view only § 22107. Records, audits, and information

§ 22101. Financial assistance for State projects
(a)General.—The Secretary of Transportation shall provide financial assistance to a State, as provided under this chapter, for a rail freight assistance project of the State when a rail carrier subject to part A of subtitle IV of this title maintains a rail line in the State. The assistance is for the cost of—
(1) acquiring, in any way the State considers appropriate, an interest in a rail line or rail property to maintain existing, or to provide future, rail freight transportation, but only if the Surface Transportation Board has authorized, or exempted from the requirements of that authorization, the abandonment of, or the discontinuance of rail transportation on, the rail line related to the project;
(2) improving and rehabilitating rail property on a rail line to the extent necessary to allow adequate and efficient rail freight transportation on the line, but only if the rail carrier certifies that the rail line related to the project carried not more than 5,000,000 gross ton-miles of freight a mile in the prior year; and
(3) building rail or rail-related facilities (including new connections between at least 2 existing rail lines, intermodal freight terminals, sidings, bridges, and relocation of existing lines) to improve the quality and efficiency of the rail freight transportation, but only if the rail carrier certifies that the rail line related to the project carried not more than 5,000,000 gross ton-miles of freight a mile in the prior year.
(b)Calculating Cost-Benefit Ratio.—The Secretary shall establish a methodology for calculating the ratio of benefits to costs of projects proposed under this chapter. In establishing the methodology, the Secretary shall consider the need for equitable treatment of different regions of the United States and different commodities transported by rail. The establishment of the methodology is committed to the discretion of the Secretary.
(c)Conditions.—
(1) Assistance for a project shall be provided under this chapter only if—
(A) a rail carrier certifies that the rail line related to the project carried more than 20 carloads a mile during the most recent year during which transportation was provided by the carrier on the line; and
(B) the ratio of benefits to costs for the project, as calculated using the methodology established under subsection (b) of this section, is more than 1.0.
(2) If the rail carrier that provided the transportation on the rail line is no longer in existence, the applicant for the project shall provide the information required by the certification under paragraph (1)(A) of this subsection in the way the Secretary prescribes.
(3) The Secretary may waive the requirement of paragraph (1)(A) or (2) of this subsection if the Secretary—
(A) decides that the rail line has contractual guarantees of at least 40 carloads a mile for each of the first 2 years of operation of the proposed project; and
(B) finds that there is a reasonable expectation that the contractual guarantees will be fulfilled.
(d)Limitations on Amounts.—A State may not receive more than 15 percent of the amounts provided in a fiscal year under this chapter. Not more than 20 percent of the amounts available under this chapter may be provided in a fiscal year for any one project.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 894; Pub. L. 104–88, title III, § 308(f)(1), (2), Dec. 29, 1995, 109 Stat. 947.)

CITE AS: 49 USC 22101

§ 22102. EligibilityA State is eligible to receive financial assistance under this chapter only when the State complies with regulations the Secretary of Transportation prescribes under this chapter and the Secretary decides that—
(1) the State has an adequate plan for rail transportation in the State and a suitable process for updating, revising, and modifying the plan;
(2) the State plan is administered or coordinated by a designated State authority and provides for a fair distribution of resources;
(3) the State authority—
(A) is authorized to develop, promote, supervise, and support safe, adequate, and efficient rail transportation;
(B) employs or will employ sufficient qualified and trained personnel;
(C) maintains or will maintain adequate programs of investigation, research, promotion, and development with opportunity for public participation; and
(D) is designated and directed to take all practicable steps (by itself or with other State authorities) to improve rail transportation safety and reduce energy use and pollution related to transportation; and
(4) the State has ensured that it maintains or will maintain adequate procedures for financial control, accounting, and performance evaluation for the proper use of assistance provided by the United States Government.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 895.)

CITE AS: 49 USC 22102

§ 22103. Applications
(a)Filing.—A State must file an application with the Secretary of Transportation for financial assistance for a project described under section 22101(a) of this title not later than January 1 of the fiscal year for which amounts have been appropriated. However, for a fiscal year for which the authorization of appropriations for assistance under this chapter has not been enacted by the first day of the fiscal year, the State must file the application not later than 90 days after the date of enactment of a law authorizing the appropriations for that fiscal year. The Secretary shall prescribe the form of the application.
(b)Considerations.—In considering an application under this subsection, the Secretary shall consider the following:
(1) the percentage of rail lines that rail carriers have identified to the Surface Transportation Board for abandonment or potential abandonment in the State.
(2) the likelihood of future abandonments in the State.
(3) the ratio of benefits to costs for a proposed project calculated using the methodology established under section 22101(b) of this title.
(4) the likelihood that the rail line will continue operating with assistance.
(5) the impact of rail bankruptcies, rail restructuring, and rail mergers on the State.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 896; Pub. L. 104–88, title III, § 308(f)(3), Dec. 29, 1995, 109 Stat. 947.)

CITE AS: 49 USC 22103

§ 22104. State rail plan financing
(a)Entitlement and Uses.—On the first day of each fiscal year, each State is entitled to $36,000 of the amounts made available under section 22108 1
1 See References in Text note below.
of this title during that fiscal year to be used—
(1) to establish, update, revise, and modify the State plan required by section 22102 of this title; or
(2) to carry out projects described in section 22101(a)(1), (2), or (3) of this title, as designated by the State, if those projects meet the requirements of section 22101(c)(1)(B) of this title.
(b)Applications.—Each State must apply for amounts under this section not later than the first day of the fiscal year for which the amounts are available. However, for any fiscal year for which the authorization of appropriations for financial assistance under this chapter has not been enacted by the first day of the fiscal year, the State must apply for amounts under this section not later than 60 days after the date of enactment of a law authorizing the appropriations for that fiscal year. Not later than 60 days after receiving an application, the Secretary of Transportation shall consider the application and notify the State of the approval or disapproval of the application.
(c)Availability of Amounts.—Amounts provided under this section remain available to a State for obligation for the first 3 months after the end of the fiscal year for which the amounts were made available. Amounts not applied for under this section or that remain unobligated after the first 3 months after the end of the fiscal year for which the amounts were made available are available to the Secretary for projects meeting the requirements of this chapter.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 896.)

CITE AS: 49 USC 22104

§ 22105. Sharing project costs
(a)General.—
(1) The United States Government’s share of the costs of financial assistance for a project under this chapter is 50 percent, except that for assistance provided under section 22101(a)(2) of this title, the Government’s share is 70 percent. The State may pay its share of the costs in cash or through the following benefits, to the extent that the benefits otherwise would not be provided:
(A) forgiveness of taxes imposed on a rail carrier or its property.
(B) real and tangible personal property (provided by the State or a person for the State) necessary for the safe and efficient operation of rail freight transportation.
(C) track rights secured by the State for a rail carrier.
(D) the cash equivalent of State salaries for State employees working on the State project, except overhead and general administrative costs.
(2) A State may pay more than its required percentage share of the costs of a project under this chapter. When a State, or a person acting for a State, pays more than the State share of the costs of its projects during a fiscal year, the excess amount shall be applied to the State share for the costs of the State projects for later fiscal years.
(b)Agreements To Combine Amounts.—States may agree to combine any part of the amounts made available under this chapter to carry out a project that is eligible for assistance under this chapter when—
(1) the project will benefit each State making the agreement; and
(2) the agreement is not a violation of State law.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 897.)

CITE AS: 49 USC 22105

§ 22106. Limitations on financial assistance
(a)Grants and Loans.—A State shall use financial assistance for projects under this chapter to make a grant or lend money to the owner of rail property, or a rail carrier providing rail transportation, related to a project being assisted.
(b)State Use of Repaid Funds and Contingent Interest Recoveries.—The State shall place the United States Government’s share of money that is repaid and any contingent interest that is recovered in an interest-bearing account. The repaid money, contingent interest, and any interest thereon shall be considered to be State funds. The State shall use such funds to make other grants and loans, consistent with the purposes for which financial assistance may be used under subsection (a), as the State considers to be appropriate.
(c)Encouraging Participation.—To the maximum extent possible, the State shall encourage the participation of shippers, rail carriers, and local communities in paying the State share of assistance costs.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 897; Pub. L. 104–287, § 5(55), Oct. 11, 1996, 110 Stat. 3393; Pub. L. 110–432, div. A, title VII, § 701(a), Oct. 16, 2008, 122 Stat. 4905; Pub. L. 114–94, div. A, title XI, § 11316(k), Dec. 4, 2015, 129 Stat. 1678.)

CITE AS: 49 USC 22106

§ 22107. Records, audits, and information
(a)Records.—Each recipient of financial assistance through an arrangement under this chapter shall keep records required by the Secretary of Transportation. The records shall be kept for 3 years after a project is completed and shall disclose—
(1) the amount of, and disposition by the recipient, of the assistance;
(2) the total costs of the project for which the assistance was given or used;
(3) the amount of that part of the costs of the project paid by other sources; and
(4) any other records that will make an effective audit easier.
(b)Audits.—The Secretary shall make regular financial and performance audits, as provided under chapter 75 of title 31, of activities and transactions assisted under this chapter.
(c)Information.—The Surface Transportation Board shall provide the Secretary with information the Secretary requests to assist in carrying out this chapter. The Board shall provide the information not later than 30 days after receiving a request from the Secretary.
(d)List of Rail Lines.—Not later than August 1 of each year, each rail carrier subject to part A of subtitle IV of this title shall submit to the Secretary a list of the rail lines of the carrier that carried not more than 5,000,000 gross ton-miles of freight a mile in the prior year.
(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 898; Pub. L. 104–88, title III, § 308(f)(4), (5), Dec. 29, 1995, 109 Stat. 947; Pub. L. 104–316, title I, § 127(c), Oct. 19, 1996, 110 Stat. 3840.)

CITE AS: 49 USC 22107

[§ 22108. Repealed. Pub. L. 114–94, div. A, title XI, § 11301(c)(4), Dec. 4, 2015, 129 Stat. 1648]

CITE AS: 49 USC 22108