# Energy Independence and Security Act of 2007/Title XI/Subtitle B
## Subtitle B — Railroads
### Sec. 1111. Advanced Technology Locomotive Grant Pilot Program.

    (a) In General.—
       The Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, shall establish and carry out a pilot program for making grants to railroad carriers (as defined in section 20102 of title 49, United States Code) and State and local governments—
          (1) for assistance in purchasing hybrid or other energy-efficient locomotives, including hybrid switch and generator-set locomotives; and
          (2) to demonstrate the extent to which such locomotives increase fuel economy, reduce emissions, and lower costs of operation.
    (b) Limitation.—
       Notwithstanding subsection (a), no grant under this section may be used to fund the costs of emissions reductions that are mandated under Federal law.
    (c) Grant Criteria.—
       In selecting applicants for grants under this section, the Secretary of Transportation shall consider—
          (1) the level of energy efficiency that would be achieved by the proposed project;
          (2) the extent to which the proposed project would assist in commercial deployment of hybrid or other energy-efficient locomotive technologies;
          (3) the extent to which the proposed project complements other private or governmental partnership efforts to improve air quality or fuel efficiency in a particular area; and
          (4) the extent to which the applicant demonstrates innovative strategies and a financial commitment to increasing energy efficiency and reducing greenhouse gas emissions of its railroad operations.
    (d) Competitive Grant Selection Process.—
          (1) APPLICATIONS.—
             A railroad carrier or State or local government seeking a grant under this section shall submit for approval by the Secretary of Transportation an application for the grant containing such information as the Secretary of Transportation may require.
          (2) COMPETITIVE SELECTION.—
             The Secretary of Transportation shall conduct a national solicitation for applications for grants under this section and shall select grantees on a competitive basis.
    (e) Federal Share.—
       The Federal share of the cost of a project under this section shall not exceed 80 percent of the project cost.
    (f) Report.—
       Not later than 3 years after the date of enactment of this Act, the Secretary of Transportation shall submit to Congress a report on the results of the pilot program carried out under this section.
    (g) Authorization of Appropriations.—
       There is authorized to be appropriated to the Secretary of Transportation $10,000,000 for each of the fiscal years 2008 through 2011 to carry out this section. Such funds shall remain available until expended.

### Sec. 1112. Capital Grants for Class II and Class III Railroads.

    (a) Amendment.—
       Chapter 223 of title 49, United States Code, is amended to read as follows:
‘‘CHAPTER 223 — CAPITAL GRANTS FOR CLASS II AND CLASS III RAILROADS
‘‘Sec. 22301. Capital grants for class II and class III railroads
    ‘‘(a) Establishment of Program.—
          ‘‘(1) ESTABLISHMENT.— 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—
                ‘‘(A)(i) rehabilitate, preserve, or improve railroad track (including roadbed, bridges, and related track structures) used primarily for freight transportation;
                      ‘‘(ii) facilitate the continued or greater use of railroad transportation for freight shipments; and
                      ‘‘(iii) reduce the use of less fuel efficient modes of transportation in the transportation of such shipments; and
                ‘‘(B) demonstrate innovative technologies and advanced research and development that increase fuel economy, reduce greenhouse gas emissions, and lower the costs of operation.
          ‘‘(2) PROVISION OF GRANTS.— 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.
          ‘‘(3) 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.
          ‘‘(4) REGULATIONS.— Not later than October 1, 2008, 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) 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.
    ‘‘(d) 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 this chapter.
    ‘‘(e) 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 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.
          ‘‘(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 subchapter IV of chapter 31 of title 40.
    ‘‘(f) Study.— 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.
    ‘‘(g) Authorization of Appropriations.— 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.’’.
    (b) Clerical 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: ‘‘22301’’.