[House Report 107-96]
[From the U.S. Government Publishing Office]
107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-96
======================================================================
RAILROAD TRACK MODERNIZATION ACT OF 2001
_______
June 12, 2001.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Transportation and
Infrastructure, submitted the following
R E P O R T
[To accompany H.R. 1020]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 1020) to authorize the Secretary of
Transportation to establish a grant program for the
rehabilitation, preservation, or improvement of railroad track,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION. 1. SHORT TITLE.
This Act may be cited as the ``Railroad Track Modernization Act of
2001''.
SEC. 2. CAPITAL GRANTS FOR RAILROAD TRACK.
(a) Amendment.--Chapter 223 of title 49, United States Code, is
amended to read as follows:
``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK
``Sec.
``22301. Capital grants for railroad track.
``Sec. 22301. Capital grants for railroad track
``(a) Establishment of Program.--
``(1) Establishment.--The Secretary of Transportation shall
establish a program of capital grants for the rehabilitation,
preservation, or improvement of railroad track (including
roadbed, bridges, and related track structures) of class II and
class III railroads. Such grants shall be for rehabilitating,
preserving, or improving track used primarily for freight
transportation to a standard ensuring that the track can be
operated safely and efficiently, including grants for
rehabilitating, preserving, or improving track to handle
286,000 pound rail cars. Grants may be provided under this
chapter--
``(A) directly to the class II or class III railroad;
or
``(B) with the concurrence of the class II or class
III railroad, to a State or local government.
``(2) State cooperation.--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.
``(3) Interim regulations.--Not later than December 31, 2001,
the Secretary shall issue temporary regulations to implement
the program under this section. Subchapter II of chapter 5 of
title 5 does not apply to a temporary regulation issued under
this paragraph or to an amendment to such a temporary
regulation.
``(4) Final regulations.--Not later than October 1, 2002, the
Secretary shall issue final regulations to implement the
program under this section.
``(b) Maximum Federal Share.--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.
``(c) Project Eligibility.--For a project to be eligible for
assistance under this section the track must have been operated or
owned by a class II or class III railroad as of the date of the
enactment of the Railroad Track Modernization Act of 2001.
``(d) Use of Funds.--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.
``(e) Additional Purpose.--In addition to making grants for projects
as provided in subsection (a), the Secretary may also make grants to
supplement direct loans or loan guarantees made under title V of the
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C.
822(d)), for projects described in the last sentence of section 502(d)
of such title. Grants made under this subsection may be used, in whole
or in part, for paying credit risk premiums, lowering rates of
interest, or providing for a holiday on principal payments.
``(f) Employee Protection.--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 the Railroad Track Modernization
Act of 2001.
``(g) Labor Standards.--
``(1) Prevailing wages.--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 the Act of March 3,
1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et seq.).
The Secretary shall make a grant under this section only after
being assured that required labor standards will be maintained
on the construction work.
``(2) Wage rates.--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 Act of March 3, 1931 (known as the Davis-Bacon Act; 40
U.S.C. 276a et seq.).
``(h) Study.--The Secretary shall conduct a study of the projects
carried out with grant assistance under this section to determine the
public interest benefits associated with the light density railroad
networks in the States and their contribution to a multimodal
transportation system. Not later than March 31, 2003, the Secretary
shall report to Congress any recommendations the Secretary considers
appropriate regarding the eligibility of light density rail networks
for Federal infrastructure financing.
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Transportation $350,000,000 for each
of the fiscal years 2002 through 2004 for carrying out this section.''.
(b) Conforming Amendment.--The item relating to chapter 223 in the
table of chapters of subtitle V of title 49, United States Code, is
amended to read as follows:
``223. CAPITAL GRANTS FOR RAILROAD TRACK.................... 22301''.
Purpose of the Legislation
H.R. 1020 is designed to assist smaller railroads in
upgrading their tracks and roadbed. This assistance includes
the purpose of accommodating newer, heavier freight cars along
their lines. The bill authorizes $350 million to be
appropriated from the general fund in each of the fiscal years,
2002-2004, for capital grants to benefit class II and class III
railroads.
Summary and Section-by-Section Analysis of the Legislation
The bill establishes a capital grant program for
rehabilitation and improvement of tracks and related structures
on the small (class II and class III) railroads, to bring the
infrastructure up to a level permitting safe and efficient
operation, including traffic containing the new heavier
286,000-pound rail cars being adopted as an industry standard
by the large railroads. The general fund authorization level is
$350 million per year for FY 2002-2004.
The maximum federal share for carrying out a project shall
be 80 percent. The non-Federal contribution can be from any
non-Federal source, and may be cash, equipment, supplies, or
other contribution approved on a case-by-case basis by DOT.
Track to be rehabilitated or improved must have been operated
or owned as a class II or class III rail property on date of
enactment.
Grant funds must be contractually obligated within three
full fiscal years after the award of a grant. Besides direct
funding of track rehabilitation and improvement, grants may
also be used to supplement TEA 21 rail loans, including paying
credit risk premium for loans, lowering rate of interest, or
providing principal payment holidays.
Davis-Bacon standards applicable to Amtrak and transit
apply to construction work financed by grants. Any rail
employee adversely affected by a grant-funded project will
receive standard New York Dock labor protection benefits, under
current Surface Transportation Board standards. DOT is required
to conduct a study of future needs of light-density rail lines
for federal infrastructure funding, and report to Congress by
March 31, 2003.
Sec. 1--SHORT TITLE
The act is to be cited as the ``Railroad Track
Modernization Act of 2001.''
Sec. 2--CAPITAL GRANTS FOR RAILROAD TRACK
Section 2 redesignates chapter 223 of title 49 U.S.C. as
``CAPITAL GRANTS FOR RAILROAD TRACK,'' and assigns section
22301 the same name.
New subsection 22301(a) directs the Secretary of
Transportation to establish a program of capital grants for the
rehabilitation, preservation, or improvement of railroad track,
roadbed, and bridges of class II and class III railroads.
Grants are to be used to improve track that primarily carries
freight, and to a standard that ensures safe and efficient
operation along the rail line. Purposes of the grants include
rehabilitating, preserving or improving track to handle
286,000-pound rail cars.
Grants under this section are to be provided either
directly to a class II or class III railroad, or to a State or
local government once the class II or class III rail carrier
has concurred. In addition, class II and class III applicants
for these grants are encouraged to utilize the expertise and
assistance of State transportation agencies in applying for and
administering the grants. Correlatively, State transportation
agencies are encouraged to provide this assistance.
To assure timely implementation of this section, the
Secretary of Transportation is directed to issue temporary
regulations by December 31, 2001. These regulations are exempt
from the standard notice and comment procedures under the
Administrative Procedure Act. Subsequently, the Secretary is
directed to issue final regulations, subject to the normal
rulemaking process, by October 1, 2002. The expedited issuance
of temporary regulations is intended to ensure that any
appropriated funds will be put to use immediately.
New subsection 22301(b) establishes the maximum Federal
share for carrying out a project under this section at 80
percent. The non-Federal share may come from any non-Federal
source in cash, equipment or supplies. The Secretary of
Transportation has the authority to approve other in-kind
contributions on a case-by-case basis.
New subsection 22301(c) provides that only projects
conducted on track owned or operated by a class II or class III
railroad as of the date of enactment of this Act are eligible
for grants under this section.
New subsection 22301(d) requires that grant recipients
under this section obligate their grant money within three
fiscal years of receiving the grant. Funds held beyond three
years will be returned to the Secretary of Transportation for
redistribution.
New subsection 22301(e) allows the Secretary of
Transportation to use the funds authorized in this Act to make
grants to supplement direct loans or loan guarantees made under
Title V of the Railroad Revitalization and Regulatory Reform
Act of 1976 (also known as the Railroad Infrastructure Loan
Program) for projects that primarily benefit class II and class
III railroads. Such grants may be used for paying credit risk
premiums, lowering interest rates, or providing for a holiday
on principal payments.
New subsection 22301(f) extends employee protection under
section 11326(a) of Title 49, commonly known as New York Dock
labor protection, to employees adversely affected by projects
funded with grants under this section.
New subsection 22301(g) extends prevailing wage protections
established in the Davis-Bacon Act for laborers and mechanics
employed in construction work financed by a grant made under
this section.
New subsection 22301(h) directs the Secretary of
Transportation to conduct a study of the projects carried out
with grant assistance under this section to determine the
public interest benefits associated with the shortline rail
network. The Secretary is directed to report to Congress no
later than March 31, 2003.
New subsection 22301(i) authorizes general fund
appropriations of $350 million for each of the fiscal years
2002 through 2004 for grants under this section.
Background on the Legislation
Smaller railroads are generally labeled class II or class
III rail carriers, using Surface Transportation Board (formerly
Interstate Commerce Commission (ICC)) size thresholds based on
total annual revenues. Class III carriers each have $20.8
million or less in annual revenues, while the limit for class
II carriers is $259.4 million. Although some smaller railroads
have existed for decades, hundreds of new short-line and
regional railroads were created following the enactment of the
Staggers Rail Act of 1980.
Prior to the Staggers Act reforms that permitted large
(class I) railroads to abandon unproductive lines more easily,
deterioration of the rail network, especially on light-density
lines serving smaller towns and rural areas, was widespread.
The generally higher operating costs of the class I carriers,
combined with low traffic levels, made most light-density lines
money-losing enterprises for the large railroads. Prior to
1980, most such lines were shed by class I carriers (which the
ICC regulatory process permitted) through outright
abandonment--removing the lines permanently from the rail
network.
After 1980, ICC policies and regulations were revised to
permit easier sale or lease of marginal lines by class I
railroads to start-up operations. This led to a boom in the
formation of class II and class III railroads, which include
both union and non-union carriers. At the Subcommittee's April
25, 2001 railroad infrastructure policy hearing, both labor and
management witnesses agreed that, the larger and more
prosperous the smaller railroads become, the more extensive the
degree of union representation.
Some smaller railroads have succeeded financially, while
others have not. In the vast majority of cases, the track,
roadbed, and other infrastructure acquired by the new smaller
operators was already severely deteriorated by class I
standards, but still sufficiently sound to allow low-density
(and often low-speed) freight operations. Besides attracting
sufficient revenue, a secondary struggle by the smaller freight
railroads involved acquiring sufficient capital to maintain and
possibly upgrade the quality of the infrastructure inherited
from the former owners of these lines.
In the last several years, a new burden to the marginal
infrastructure of smaller railroads has appeared. Class I
railroads have begun to add large numbers of more efficient,
but far heavier, 286,000-pound cars to their fleets. The
heavier fleets increase the operating stresses and wear and
tear on smaller railroads' track systems, and depending on the
level of deterioration, could entirely prevent operation of
``286'' cars on certain light-density lines. If such physical
embargos were to become widespread, it could result in a non-
interoperable rail network; i.e., a rail system where the same
fleet of cars cannot operate in all locations on the system.
Smaller railroads provide approximately 10 percent of the
freight traffic of the major class I carriers. A recent study
funded in part by the Federal Railroad Administration which was
conducted under contract to the American Short Line and
Regional Railroad Association and discussed at the
Subcommittee's April 25 hearing, concluded that the entire
class II/class III rail network would require about $6.8
billion in infrastructure upgrades to deal with the heavier
rail cars.
Hearings, Legislative History and Committee Consideration
H.R. 1020 was discussed extensively at the Subcommittee's
April 25, 2001 hearing on railroad infrastructure policies.
Among those testifying in support of the bill were the
Association of American Railroads, the American Short Line and
Regional Railroad Association, the Brotherhood of Maintenance
of Way Employees, and the United Transportation Union.
On March 14, 2001, Chairman Quinn introduced H.R. 1020,
with the original cosponsorship of Subcommittee Ranking Member
Clement and Mr. Bachus, a Subcommittee Member. On May 9, 2001,
the Subcommittee on Railroads met in open session and favorably
reported H.R. 1020 as amended. On May 16, 2001, the Committee
on Transportation and Infrastructure met in open session and
favorably reported H.R. 1020 as amended.
Rollcall Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each rollcall
vote on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no rollcall votes on this legislation.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of Legislation
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance With House Rule XIII
With respect to the requirement of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives, and 308(a)
of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office
included below.
1. With respect to the requirement of clause 3(c)(2)
of rule XIII of the Rules of the House of
Representatives, and 308(a) of the Congressional Budget
Act of 1974, the Committee references the report of the
Congressional Budget Office included below.
2. With respect to the requirement of clause 3(c)(4)
of rule XIII of the Rules of the House of
Representatives, the performance goals and objectives
of this legislation are to assist smaller railroads in
upgrading their marginal tracks and roadbed in order to
promote interoperability on our national rail network.
3. With respect to the requirement of clause 3(c)(3)
of rule XIII of the Rules of the House of
Representatives and section 402 of the Congressional
Budget Act of 1974, the Committee has received the
following cost estimate for H.R. 1020 from the Director
of the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 6, 2001.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1020, Railroad
Track Modernization Act of 2001.
If you wish further details on this estimate, we will be
placed to provide them. The CBO staff contact is Rachel
Milberg.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
Congressional Budget Office Cost Estimate
H.R. 1020--Railroad Track Modernization Act of 2001
Summary: H.R. 1020 authorizes the Secretary of
Transportation to provide grants to states and to class II and
class III railroads for improving railroad track. These grants
also could be used to pay the credit risk premium, lower
interest rates, and cover principal payments for loans provided
under the Railroad Rehabilitation and Improvement Financing
(RRIF) program. (Under the RRIF program the Secretary of
Transportation is authorized to provide direct loans and loan
guarantees to railroads for capital improvements. Borrowers may
pay a credit risk premium to cover the subsidy cost of the
loans or loan guarantees in lieu of federal appropriations.)
H.R. 1020 would authorize the appropriation of $350 million
each year over the 2002-2004 period. CBO estimates that
implementing H.R. 1020 would cost $840 million over the 2002-
2006 period, and another $210 million after 2006. H.R. 1020
would not affect direct spending or receipts; therefore, pay-
as-you-go procedures would not apply.
H.R. 1020 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Any costs to state or local governments that receive grants
under this bill would be incurred voluntarily.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 1020 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------
2001 2002 2003 2004 2005 2006
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law for Railroad Capital
Improvement Grants:
Budget Authority................................ 0 0 0 0 0 0
Estimated Outlays \1\........................... 2 0 0 0 0 0
Proposed Changes:
Authorization Level............................. 0 350 350 350 0 0
Estimated Outlays............................... 0 35 175 210 210 210
Spending Under H.R. 1020:
Authorization Level............................. 0 350 350 350 0 0
Estimated Outlays \1\........................... 2 35 175 210 210 210
----------------------------------------------------------------------------------------------------------------
\1\ Outlays in 2001 are from prior appropriations for railroad capital improvement grants.
Basis of estimate: For this estimate, CBO assumes that H.R.
1020 will be enacted in fiscal year 2001 and that the
authorized amounts will be appropriated for each year.
Estimates of spending are based on information from the Federal
Railroad Administration and historical spending patters of
similar programs.
H.R. 1020 would repeal the authority of the Secretary of
Transportation to provide grants to states for capital
improvements to railroads. No appropriations have been made for
these grants since 1995. Instead the bill would authorize the
Secretary to make improvement grants directly to certain
railroads to states or local governments under certain
conditions, provided that 20 percent of the cost of any
projects funded with these grants come from nonfederal
contributions.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: H.R. 1020
contains no intergovernmental or private-sector mandates as
defined in UMRA. States and railroads that receive funds under
this program would be required to contribute 20 percent of the
project's total cost. Any costs to state or local governments
as a result of enacting this bill would be incurred
voluntarily.
Estimate prepared by: Federal costs: Rachel Milberg; Impact
and State, local, and tribal governments: Susan Sieg Tompkins;
Impact on the private sector. Paige Piper/Bach.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Constitutional Authority Statement
Pursuant to clause (3)(d)(1) of rule XIII of the Rules of
the House of Representatives, committee reports on a bill or
joint resolution of a public character shall include a
statement citing the specific powers granted to the Congress in
the Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act. (Public Law 104-4.)
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act. (Public Law
104-1.)
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 49, UNITED STATES CODE
* * * * * * *
SUBTITLE V--RAIL PROGRAMS
* * * * * * *
PART B--ASSISTANCE
LOCAL RAIL FREIGHT ASSISTANCE................................22101
LIGHT DENSITY RAIL LINE PILOT PROJECTS......................22301]
22301APITAL GRANTS FOR RAILROAD TRACK.................................
* * * * * * *
[CHAPTER 223--LIGHT DENSITY RAIL LINE PILOT PROJECTS
[Sec.
[22301. Light density rail line pilot projects.
[Sec. 22301. Light density rail line pilot projects
[(a) Grants.--The Secretary of Transportation may make grants
to States that have State rail plans described in section 22102
(1) and (2), to fund pilot projects that demonstrate the
relationship of light density railroad services to the
statutory responsibilities of the Secretary, including those
under title 23.
[(b) Limitations.--Grants under this section may be made only
for pilot projects for making capital improvements to, and
rehabilitating, publicly and privately owned rail line
structures, and may not be used for providing operating
assistance.
[(c) Private Owner Contributions.--Grants made under this
section for projects on privately owned rail line structures
shall include contributions by the owner of the rail line
structures, based on the benefit to those structures, as
determined by the Secretary.
[(d) Study.--The Secretary shall conduct a study of the pilot
projects carried out with grant assistance under this section
to determine the public interest benefits associated with the
light density railroad networks in the States and their
contribution to a multimodal transportation system. Not later
than March 31, 2003, the Secretary shall report to Congress any
recommendations the Secretary considers appropriate regarding
the eligibility of light density rail networks for Federal
infrastructure financing.
[(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$17,500,000 for each of the fiscal years 1998, 1999, 2000,
2001, 2002, and 2003. Such funds shall remain available until
expended.]
CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK
Sec.
22301. Capital grants for railroad track.
Sec. 22301. Capital grants for railroad track
(a) Establishment of Program.--
(1) Establishment.--The Secretary of Transportation
shall establish a program of capital grants for the
rehabilitation, preservation, or improvement of
railroad track (including roadbed, bridges, and related
track structures) of class II and class III railroads.
Such grants shall be for rehabilitating, preserving, or
improving track used primarily for freight
transportation to a standard ensuring that the track
can be operated safely and efficiently, including
grants for rehabilitating, preserving, or improving
track to handle 286,000 pound rail cars. Grants may be
provided under this chapter--
(A) directly to the class II or class III
railroad; or
(B) with the concurrence of the class II or
class III railroad, to a State or local
government.
(2) State cooperation.--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.
(3) Interim regulations.--Not later than December 31,
2001, the Secretary shall issue temporary regulations
to implement the program under this section. Subchapter
II of chapter 5 of title 5 does not apply to a
temporary regulation issued under this paragraph or to
an amendment to such a temporary regulation.
(4) Final regulations.--Not later than October 1,
2002, the Secretary shall issue final regulations to
implement the program under this section.
(b) Maximum Federal Share.--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.
(c) Project Eligibility.--For a project to be eligible for
assistance under this section the track must have been operated
or owned by a class II or class III railroad as of the date of
the enactment of the Railroad Track Modernization Act of 2001.
(d) Use of Funds.--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.
(e) Additional Purpose.--In addition to making grants for
projects as provided in subsection (a), the Secretary may also
make grants to supplement direct loans or loan guarantees made
under title V of the Railroad Revitalization and Regulatory
Reform Act of 1976 (45 U.S.C. 822(d)), for projects described
in the last sentence of section 502(d) of such title. Grants
made under this subsection may be used, in whole or in part,
for paying credit risk premiums, lowering rates of interest, or
providing for a holiday on principal payments.
(f) Employee Protection.--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 the Railroad Track Modernization Act of 2001.
(g) Labor Standards.--
(1) Prevailing wages.--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
the Act of March 3, 1931 (known as the Davis-Bacon Act;
40 U.S.C. 276a et seq.). The Secretary shall make a
grant under this section only after being assured that
required labor standards will be maintained on the
construction work.
(2) Wage rates.--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 Act of March 3, 1931
(known as the Davis-Bacon Act; 40 U.S.C. 276a et seq.).
(h) Study.--The Secretary shall conduct a study of the
projects carried out with grant assistance under this section
to determine the public interest benefits associated with the
light density railroad networks in the States and their
contribution to a multimodal transportation system. Not later
than March 31, 2003, the Secretary shall report to Congress any
recommendations the Secretary considers appropriate regarding
the eligibility of light density rail networks for Federal
infrastructure financing.
(i) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary of Transportation $350,000,000
for each of the fiscal years 2002 through 2004 for carrying out
this section.
* * * * * * *