II 

117TH CONGRESS 

1ST SESSION S. 468 

To expedite transportation project delivery, facilitate infrastructure 

improvement, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 25, 2021 

Mr. THUNE (for himself and Ms. HASSAN) introduced the following bill; which 

was read twice and referred to the Committee on Commerce, Science, and 

Transportation 

A BILL 

To expedite transportation project delivery, facilitate 

infrastructure improvement, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Railroad Rehabilitation and Financing Innovation Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Railroad Rehabilitation and Improvement Financing Program. 

Sec. 3. Conforming amendments. 

Sec. 4. Transitional and savings provisions. 

Sec. 5. Repeals. 


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1 SEC. 2. RAILROAD REHABILITATION AND IMPROVEMENT 

2 FINANCING PROGRAM. 

3 (a) AMENDMENT TO TITLE 49, UNITED STATES

4 CODE.—Part B of subtitle V of title 49, United States 

5 Code, is amended by inserting after chapter 223 the fol6 lowing: 

7 ‘‘CHAPTER 224—RAILROAD REHABILITA8 TION AND IMPROVEMENT FINANCING 

9 PROGRAM 

‘‘22401. Definitions. 

‘‘22402. Direct loans and loan guarantees. 

‘‘22403. Administration of direct loans and loan guarantees. 

‘‘22404. Employee protection. 

‘‘22405. Substantive criteria and standards. 

‘‘22406. Funding. 

10 ‘‘§ 22401. Definitions 

11 ‘‘In this chapter: 

12 ‘‘(1) COST.— 

13 ‘‘(A) IN GENERAL.—The term ‘cost’ means 

14 the estimated long-term cost to the Government 

15 of a direct loan or loan guarantee, or modifica16 tion of the direct loan or loan guarantee, cal17 culated on a net present value basis, excluding 

18 administrative costs and any incidental effects 

19 on governmental receipts or outlays. 

20 ‘‘(B) COST OF DIRECT LOANS.— 

21 ‘‘(i) IN GENERAL.—The cost of a di22 rect loan shall be the net present value, at 


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1 the time when the direct loan is disbursed, 

2 of the following estimated cash flows: 

3 ‘‘(I) Loan disbursements. 

4 ‘‘(II) Repayments of principal. 

5 ‘‘(III) Payments of interest and 

6 other payments by or to the Govern7 ment over the life of the loan. 

8 ‘‘(ii) CALCULATION.—Calculation of 

9 the cost of a direct loan shall include the 

10 effects of changes in loan terms resulting 

11 from the exercise by the borrower of an op12 tion included in the loan contract. 

13 ‘‘(C) COST OF LOAN GUARANTEE.— 

14 ‘‘(i) IN GENERAL.—The cost of a loan 

15 guarantee shall be the net present value, at 

16 the time when the guaranteed loan is dis17 bursed, of the following estimated cash 

18 flows: 

19 ‘‘(I) Payments by the Govern20 ment to cover defaults and delin21 quencies, interest subsidies, or other 

22 payments. 

23 ‘‘(II) Payments to the Govern24 ment, including origination and other 

25 fees, penalties, and recoveries. 


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1 ‘‘(ii) CALCULATION.—Calculation of 

2 the cost of a loan guarantee shall include 

3 the effects of changes in loan terms result4 ing from the exercise by the guaranteed 

5 lender of an option included in the loan 

6 guarantee, or by the borrower of an option 

7 included in the guaranteed loan contract. 

8 ‘‘(D) COST OF MODIFICATION.—The cost 

9 of a modification is the difference between the 

10 current estimate of the net present value of the 

11 remaining cash flows under the terms of a di12 rect loan or loan guarantee contract, and the 

13 current estimate of the net present value of the 

14 remaining cash flows under the terms of the 

15 contract, as modified. 

16 ‘‘(E) ESTIMATION OF NET PRESENT VAL17 UES; DISCOUNT RATE.—In estimating net 

18 present values, the discount rate shall be the 

19 average interest rate on marketable Treasury 

20 securities of similar maturity to the cash flows 

21 of the direct loan or loan guarantee for which 

22 the estimate is being made. 

23 ‘‘(F) ESTIMATED COST; BASIS.—When 

24 funds are obligated for a direct loan or loan 

25 guarantee, the estimated cost shall be based on 


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1 the current assumptions, adjusted to incor2 porate the terms of the loan contract, for the 

3 fiscal year in which the funds are obligated. 

4 ‘‘(2) CURRENT.—The term ‘current’ has the 

5 meaning given such term in section 250(c)(9) of the 

6 Balanced Budget and Emergency Deficit Control 

7 Act of 1985 (2 U.S.C. 900(c)(9)). 

8 ‘‘(3) DIRECT LOAN.— 

9 ‘‘(A) IN GENERAL.—The term ‘direct loan’ 

10 means a disbursement of funds by the Govern11 ment to a non-Federal borrower under a con12 tract that requires the repayment of the funds. 

13 ‘‘(B) INCLUSIONS.—The term ‘direct loan’ 

14 includes the purchase of, or participation in, a 

15 loan made by another lender and financing ar16 rangements that defer payment for more than 

17 90 days, including the sale of a Government 

18 asset on credit terms. 

19 ‘‘(C) EXCLUSION.—The term ‘direct loan’ 

20 does not include the acquisition of a federally 

21 guaranteed loan in satisfaction of default 

22 claims. 

23 ‘‘(4) DIRECT LOAN OBLIGATION.—The term ‘di24 rect loan obligation’ means a binding agreement by 


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1 the Secretary to make a direct loan when specified 

2 conditions are fulfilled by the borrower. 

3 ‘‘(5) INTERMODAL.—The term ‘intermodal’ 

4 means of or relating to the connection between rail 

5 service and other modes of transportation, including 

6 all parts of facilities at which the connection is 

7 made. 

8 ‘‘(6) INVESTMENT-GRADE RATING.—The term 

9 ‘investment-grade rating’ means a rating of BBB 

10 minus, Baa3, bbb minus, BBB(low), or higher as11 signed by a rating agency. 

12 ‘‘(7) LOAN GUARANTEE.—The term ‘loan guar13 antee’ means any guarantee, insurance, or other 

14 pledge with respect to the payment of all or a part 

15 of the principal or interest on any debt obligation of 

16 a non-Federal borrower to a non-Federal lender, but 

17 does not include the insurance of deposits, shares, or 

18 other withdrawable accounts in financial institutions. 

19 ‘‘(8) LOAN GUARANTEE COMMITMENT.—The 

20 term ‘loan guarantee commitment’ means a binding 

21 agreement by the Secretary to make a loan guar22 antee when specified conditions are fulfilled by the 

23 borrower, the lender, or any other party to the guar24 antee agreement. 


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1 ‘‘(9) MASTER CREDIT AGREEMENT.—The term 

2 ‘master credit agreement’ means an agreement to 

3 make 1 or more direct loans or loan guarantees at 

4 future dates for a program of related projects on 

5 terms acceptable to the Secretary. 

6 ‘‘(10) MODIFICATION.— 

7 ‘‘(A) IN GENERAL.—The term ‘modifica8 tion’ means any Government action that alters 

9 the estimated cost of an outstanding direct loan 

10 (or direct loan obligation) or an outstanding 

11 loan guarantee (or loan guarantee commitment) 

12 from the current estimate of cash flows. 

13 ‘‘(B) INCLUSIONS.—The term ‘modifica14 tion’ includes— 

15 ‘‘(i) the sale of loan assets, with or 

16 without recourse, and the purchase of 

17 guaranteed loans; and 

18 ‘‘(ii) any action resulting from new 

19 legislation, or from the exercise of adminis20 trative discretion under existing law, that 

21 directly or indirectly alters the estimated 

22 cost of outstanding direct loans (or direct 

23 loan obligations) or loan guarantee (or 

24 loan guarantee commitment), such as a 

25 change in collection procedures. 


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1 ‘‘(11) PROJECT OBLIGATION.—The term 

2 ‘project obligation’ means a note, bond, debenture, 

3 or other debt obligation issued by a borrower in con4 nection with the financing of a project, other than 

5 a direct loan or loan guarantee under this chapter. 

6 ‘‘(12) RAILROAD.—The term ‘railroad’ has the 

7 meaning given the term ‘railroad carrier’ in section 

8 20102. 

9 ‘‘(13) RATING AGENCY.—The term ‘rating 

10 agency’ means a credit rating agency registered with 

11 the Securities and Exchange Commission as a na12 tionally recognized statistical rating organization (as 

13 defined in section 3(a) of the Securities Exchange 

14 Act of 1934 (15 U.S.C. 78c(a))). 

15 ‘‘(14) SECRETARY.—The term ‘Secretary’ 

16 means the Secretary of Transportation. 

17 ‘‘(15) SUBSTANTIAL COMPLETION.—The term 

18 ‘substantial completion’ means— 

19 ‘‘(A) the opening of a project to passenger 

20 or freight traffic; or 

21 ‘‘(B) a comparable event, as determined by 

22 the Secretary and specified in the terms of the 

23 direct loan or loan guarantee. 


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1 ‘‘§ 22402. Direct loans and loan guarantees 

2 ‘‘(a) GENERAL AUTHORITY.—The Secretary shall 

3 provide direct loans and loan guarantees— 

4 ‘‘(1) to States and units of local government; 

5 ‘‘(2) to interstate compacts consented to by 

6 Congress under section 410(a) of the Amtrak Re7 form and Accountability Act of 1997 (Public Law 

8 105–134; 49 U.S.C. 24101 note); 

9 ‘‘(3) to government-sponsored authorities and 

10 corporations; 

11 ‘‘(4) to railroads; 

12 ‘‘(5) to joint ventures that include at least 1 of 

13 the entities described in paragraph (1), (2), (3), (4), 

14 or (6); 

15 ‘‘(6) to private entities with controlling owner16 ship in 1 or more freight railraods other than Class 

17 1 carriers; and 

18 ‘‘(7) solely for the purpose of constructing a 

19 rail connection between a plant or facility and a rail20 road, limited option freight shippers that own or op21 erate a plant or other facility. 

22 ‘‘(b) ELIGIBLE PURPOSES.— 

23 ‘‘(1) IN GENERAL.—Direct loans and loan guar24 antees provided under this section shall be used— 

25 ‘‘(A)(i) to acquire, improve, or rehabilitate 

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1 cluding track, components of track, civil works 

2 such as cuts and fills, bridges, yards, buildings, 

3 and shops; and 

4 ‘‘(ii) to finance costs related to the activi5 ties described in clause (i), including 

6 preconstruction costs; 

7 ‘‘(B) to develop or establish new inter8 modal or railroad facilities; 

9 ‘‘(C) to refinance outstanding debt in10 curred for the purposes described in subpara11 graph (A) or (B); 

12 ‘‘(D) to reimburse planning, permitting, 

13 and design expenses relating to activities de14 scribed in subparagraph (A) or (B); or 

15 ‘‘(E) to finance economic development, in16 cluding commercial and residential development, 

17 and related infrastructure and activities that— 

18 ‘‘(i) incorporates private investment; 

19 ‘‘(ii) is physically or functionally re20 lated to a passenger rail station or 

21 multimodal station that includes rail serv22 ice; 

23 ‘‘(iii) has a high probability of the ap24 plicant commencing the contracting proc25 ess for construction not later than 90 days 


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1 after the date on which the direct loan or 

2 loan guarantee is obligated for the project 

3 under this chapter; and 

4 ‘‘(iv) has a high probability of reduc5 ing the need for financial assistance under 

6 any other Federal program for the relevant 

7 passenger rail station or service by increas8 ing ridership, tenant lease payments, or 

9 other activities that generate revenue ex10 ceeding costs. 

11 ‘‘(2) OPERATING EXPENSES NOT ELIGIBLE.— 

12 Direct loans and loan guarantees under this section 

13 may not be used for railroad operating expenses. 

14 ‘‘(3) SUNSET.—The Secretary may provide a 

15 direct loan or loan guarantee under this section for 

16 a project described in paragraph (1)(E) only during 

17 the 4-year period beginning on December 4, 2015. 

18 ‘‘(c) PRIORITY PROJECTS.—In granting applications 

19 for direct loans or guaranteed loans under this section, 

20 the Secretary shall give priority to projects that— 

21 ‘‘(1) enhance public safety, including projects 

22 for the installation of a positive train control system 

23 (as defined in section 20157(i)); 

24 ‘‘(2) promote economic development; 

25 ‘‘(3) enhance the environment; 


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1 ‘‘(4) enable United States companies to be more 

2 competitive in international markets; 

3 ‘‘(5) are endorsed by the plans prepared under 

4 chapter 227 of this title or section 135 of title 23 

5 by the State or States in which the projects are lo6 cated; 

7 ‘‘(6) improve railroad stations and passenger 

8 facilities and increase transit-oriented development; 

9 ‘‘(7) preserve or enhance rail or intermodal 

10 service to small communities or rural areas; 

11 ‘‘(8) enhance service and capacity in the na12 tional rail system; or 

13 ‘‘(9)(A) would materially alleviate rail capacity 

14 problems that degrade the provision of service to 

15 shippers; and 

16 ‘‘(B) would fulfill a need in the national trans17 portation system. 

18 ‘‘(d) EXTENT OF AUTHORITY.— 

19 ‘‘(1) LIMITATION ON AGGREGATE UNPAID PRIN20 CIPAL AMOUNTS OF OBLIGATIONS.—The aggregate 

21 unpaid principal amounts of obligations under direct 

22 loans and loan guarantees made under this section 

23 may not exceed $35,000,000,000 at any time. 

24 ‘‘(2) MINIMUM AMOUNT FOR FREIGHT RAIL25 ROADS.—Of the amount referred to in paragraph 


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1 (1), not less than $7,000,000,000 shall be available 

2 solely for projects primarily benefitting freight rail3 roads other than Class I carriers. 

4 ‘‘(3) PROPORTION OF UNUSED AMOUNT.—The 

5 Secretary shall not establish any limit on the propor6 tion of the unused amount authorized under this 

7 subsection that may be used for 1 loan or loan guar8 antee. 

9 ‘‘(e) RATES OF INTEREST.— 

10 ‘‘(1) DIRECT LOANS.—The interest rate on a 

11 direct loan under this section shall be not less than 

12 the yield on United States Treasury securities of a 

13 similar maturity to the maturity of the secured loan 

14 on the date of execution of the loan agreement. 

15 ‘‘(2) LOAN GUARANTEES.—The Secretary shall 

16 not make a loan guarantee under this section if the 

17 interest rate for the loan exceeds that which the Sec18 retary determines to be reasonable, taking into con19 sideration the prevailing interest rates and cus20 tomary fees incurred under similar obligations in the 

21 private capital market. 

22 ‘‘(f) INFRASTRUCTURE PARTNERS.— 

23 ‘‘(1) AUTHORITY OF SECRETARY.— 

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1 ity to cover the costs of direct loans and loan 

2 guarantees as required under section 504(b)(1) 

3 of the Federal Credit Reform Act of 1990 (2 

4 U.S.C. 661c(b)(1)), including the cost of a 

5 modification of a direct loan or loan guarantee, 

6 the Secretary may accept on behalf of an appli7 cant for assistance under this section a commit8 ment from a non-Federal source, including a 

9 State or local government or agency, or public 

10 benefit corporation or public authority of a 

11 State or local government, to fund, in whole or 

12 in part, credit risk premiums and modification 

13 costs with respect to the loan that is the subject 

14 of the application or modification. 

15 ‘‘(B) LIMITATION.—The aggregate of ap16 propriations of budget authority and credit risk 

17 premiums described in this paragraph with re18 spect to a direct loan or loan guarantee shall 

19 not be less than the cost of that direct loan or 

20 loan guarantee. 

21 ‘‘(2) CREDIT RISK PREMIUM AMOUNT.—The 

22 Secretary shall determine the amount required for 

23 credit risk premiums under this subsection on the 

24 basis of— 


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1 ‘‘(A) the circumstances of the applicant, 

2 including the amount of collateral offered, if 

3 any; 

4 ‘‘(B) the proposed schedule of loan dis5 bursements; 

6 ‘‘(C) historical data on the repayment his7 tory of similar borrowers; 

8 ‘‘(D) consultation with the Congressional 

9 Budget Office; and 

10 ‘‘(E) any other factors the Secretary con11 siders relevant. 

12 ‘‘(3) CREDITWORTHINESS.—Upon receipt of a 

13 proposal from an applicant for assistance under this 

14 section, the Secretary shall accept, as a basis for de15 termining the amount of the credit risk premium 

16 under paragraph (2), in addition to the value of any 

17 collateral described in paragraph (5), any of the fol18 lowing : 

19 ‘‘(A) The net present value of a future 

20 stream of State or local subsidy income or other 

21 dedicated revenues to secure the direct loan or 

22 loan guarantee. 

23 ‘‘(B) Adequate coverage requirements to 

24 ensure repayment, on a nonrecourse basis, from 


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1 cash flows generated by the project or any other 

2 dedicated revenue source, including— 

3 ‘‘(i) tolls; 

4 ‘‘(ii) user fees, including operating or 

5 tenant charges, facility rents, or other fees 

6 paid by transportation service providers or 

7 operators for access to, or the use of, in8 frastructure, including rail lines, bridges, 

9 tunnels, yards, or stations; and 

10 ‘‘(iii) payments owing to the obligor 

11 under a public-private partnership. 

12 ‘‘(C) An investment-grade rating on the di13 rect loan or loan guarantee, as applicable, un14 less the total amount of the direct loan or loan 

15 guarantee is greater than $150,000,000, in 

16 which case the applicant shall have an invest17 ment-grade rating from not fewer than 2 rating 

18 agencies regarding the direct loan or loan guar19 antee. 

20 ‘‘(D) A projection of freight or passenger 

21 demand for the project based on regionally de22 veloped economic forecasts, including projec23 tions of any modal diversion resulting from the 

24 project. 


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1 ‘‘(4) PAYMENT OF PREMIUMS.—Credit risk pre2 miums under this subsection shall be paid to the 

3 Secretary before the disbursement of loan amounts 

4 (and in the case of a modification, before the modi5 fication is executed), to the extent appropriations 

6 are not available to the Secretary to meet the costs 

7 of direct loans and loan guarantees, including costs 

8 of modifications of direct loans and loan guarantees. 

9 ‘‘(5) COLLATERAL.— 

10 ‘‘(A) TYPES OF COLLATERAL.—An appli11 cant or infrastructure partner may propose tan12 gible and intangible assets as collateral, exclu13 sive of goodwill. The Secretary, after evaluating 

14 each such asset— 

15 ‘‘(i) shall accept a net liquidation 

16 value of collateral; and 

17 ‘‘(ii) shall consider and may accept— 

18 ‘‘(I) the market value of collat19 eral; or 

20 ‘‘(II) in the case of a blanket 

21 pledge or assignment of an entire op22 erating asset or basket of assets as 

23 collateral, the net liquidation value, 

24 the market value of assets, or, the 


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1 market value of the going concern, 

2 considering— 

3 ‘‘(aa) inclusion in the pledge 

4 of all the assets necessary for 

5 independent operational utility of 

6 the collateral, including tangible 

7 assets such as real property, 

8 track and structure, equipment 

9 and rolling stock, stations, sys10 tems and maintenance facilities 

11 and intangible assets such as 

12 long-term shipping agreements, 

13 easements, leases and access 

14 rights such as for trackage and 

15 haulage; 

16 ‘‘(bb) interchange commit17 ments; and 

18 ‘‘(cc) the value of the asset 

19 as determined through the cost 

20 or market approaches, or the 

21 market value of the going con22 cern, with the latter considering 

23 discounted cash flows for a pe24 riod not to exceed the term of the 

25 direct loan or loan guarantee. 


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1 ‘‘(B) APPRAISAL STANDARDS.—In evalu2 ating appraisals of collateral under subpara3 graph (A), the Secretary shall consider— 

4 ‘‘(i) adherence to the substance and 

5 principles of the Uniform Standards of 

6 Professional Appraisal Practice, as devel7 oped by the Appraisal Standards Board of 

8 the Appraisal Foundation; 

9 ‘‘(ii) performance of the appraisal by 

10 licensed or certified appraisers as may be 

11 required by the State of jurisdiction for the 

12 type of asset being appraised; and 

13 ‘‘(iii) the qualifications of the apprais14 ers to value the type of collateral offered. 

15 ‘‘(g) PREREQUISITES FOR ASSISTANCE.—The Sec16 retary may not make a direct loan or loan guarantee under 

17 this section unless the Secretary has made a written find18 ing that— 

19 ‘‘(1) repayment of the obligation is required to 

20 be made within a term of the lesser of— 

21 ‘‘(A) 35 years after the date of substantial 

22 completion of the project; or 

23 ‘‘(B) with regard to rail equipment or fa24 cilities with estimated useful lives that exceed 

25 the term described in subparagraph (A)— 


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1 ‘‘(i) 50 years after the date of sub2 stantial completion of the project; or 

3 ‘‘(ii) the estimated useful life of the 

4 rail equipment or facilities to be acquired, 

5 rehabilitated, improved, developed, or es6 tablished, subject to an adequate deter7 mination of long-term risk; 

8 ‘‘(2) the direct loan or loan guarantee is justi9 fied by the present and probable future demand for 

10 rail services or intermodal facilities; 

11 ‘‘(3) the applicant has given reasonable assur12 ances that the facilities or equipment to be acquired, 

13 rehabilitated, improved, developed, or established 

14 with the proceeds of the obligation will be economi15 cally and efficiently utilized; 

16 ‘‘(4) the obligation can reasonably be repaid, 

17 using an appropriate combination of credit risk pre18 miums and collateral offered by the applicant to pro19 tect the Federal Government; and 

20 ‘‘(5) the purposes of the direct loan or loan 

21 guarantee are consistent with subsection (b). 

22 ‘‘(h) CONDITIONS OF ASSISTANCE.— 

23 ‘‘(1) IN GENERAL.—Before granting assistance 

24 under this section, the Secretary shall require the 

25 applicant to agree to such terms and conditions as 


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1 are sufficient, in the judgment of the Secretary, to 

2 ensure that, as long as any principal or interest is 

3 due and payable on the obligation, the applicant, 

4 and any railroad or railroad partner for whose ben5 efit the assistance is intended— 

6 ‘‘(A) will not use any funds or assets from 

7 railroad or intermodal operations for purposes 

8 not related to the operations, if the use— 

9 ‘‘(i) would impair the ability of the 

10 applicant, railroad, or railroad partner to 

11 provide rail or intermodal services in an ef12 ficient and economic manner; or 

13 ‘‘(ii) would adversely affect the ability 

14 of the applicant, railroad, or railroad part15 ner to perform any obligation entered into 

16 by the applicant under this section; 

17 ‘‘(B) will, consistent with its capital re18 sources, maintain its capital program, equip19 ment, facilities, and operations on a continuing 

20 basis; and 

21 ‘‘(C) will not make any discretionary divi22 dend payments that unreasonably conflict with 

23 the purposes stated in subsection (b). 

24 ‘‘(2) COLLATERAL AND REQUEST FOR ASSIST25 ANCE FROM ANOTHER SOURCE NOT REQUIRED.— 


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1 ‘‘(A) COLLATERAL.— 

2 ‘‘(i) IN GENERAL.—The Secretary 

3 may not require an applicant for a direct 

4 loan or loan guarantee under this section 

5 to provide collateral. 

6 ‘‘(ii) VALUATION.—Any collateral pro7 vided or enhanced after being provided 

8 shall be valued as a going concern after 

9 giving effect to the present value of im10 provements contemplated by the comple11 tion and operation of the project, if appli12 cable. 

13 ‘‘(B) REQUEST FOR ASSISTANCE FROM AN14 OTHER SOURCE.—The Secretary may not re15 quire an applicant for a direct loan or loan 

16 guarantee under this section to have previously 

17 sought the financial assistance requested from 

18 another source. 

19 ‘‘(3) REQUIRED COMPLIANCE.—The Secretary 

20 shall require recipients of direct loans or loan guar21 antees under this section to comply with— 

22 ‘‘(A) the standards of section 24312, as in 

23 effect on September 1, 2002, with respect to 

24 the project in the same manner that Amtrak is 

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1 struction work financed under an agreement 

2 made under section 24308(a); and 

3 ‘‘(B) the protective arrangements estab4 lished under section 22404, with respect to em5 ployees affected by actions taken in connection 

6 with the project to be financed by the direct 

7 loan or loan guarantee. 

8 ‘‘(4) MATCHING FUNDS.—The Secretary shall 

9 require each recipient of a direct loan or loan guar10 antee under this section, for a project described in 

11 subsection (b)(1)(E), to provide a non-Federal 

12 match of not less than 25 percent of the total 

13 amount expended by the recipient for the project. 

14 ‘‘(i) APPLICATION PROCESSING PROCEDURES.— 

15 ‘‘(1) APPLICATION STATUS NOTICES.—Not later 

16 than 30 days after the date on which the Secretary 

17 receives an application under this section, or addi18 tional information and material under paragraph 

19 (2)(B), the Secretary shall provide the applicant 

20 written notice as to whether the application is com21 plete or incomplete. 

22 ‘‘(2) INCOMPLETE APPLICATIONS.—If the Sec23 retary determines that an application is incomplete, 

24 the Secretary shall— 


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1 ‘‘(A) provide the applicant with a descrip2 tion of all of the specific information or mate3 rial that is needed to complete the application, 

4 including any information required by an inde5 pendent financial analyst; and 

6 ‘‘(B) allow the applicant to resubmit the 

7 application with the information and material 

8 described under subparagraph (A) to complete 

9 the application. 

10 ‘‘(3) APPLICATION APPROVALS AND DIS11 APPROVALS.— 

12 ‘‘(A) IN GENERAL.—Not later than 45 

13 days after the date on which the Secretary noti14 fies an applicant that an application is complete 

15 under paragraph (1), the Secretary shall pro16 vide the applicant written notice as to whether 

17 the Secretary has approved or disapproved the 

18 application. 

19 ‘‘(B) ACTIONS BY THE OFFICE OF MAN20 AGEMENT AND BUDGET.—In order to enable 

21 compliance with the time limit under subpara22 graph (A), the Office of Management and 

23 Budget shall take any action required with re24 spect to the application within such 45-day pe25 riod. 


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1 ‘‘(4) STREAMLINED APPLICATION REVIEW

2 PROCESS.— 

3 ‘‘(A) IN GENERAL.—Consistent with sec4 tion 116, and not later than 180 days after 

5 date of the enactment of the Railroad Rehabili6 tation and Financing Innovation Act, the Sec7 retary shall make available an expedited appli8 cation process or processes at the request of ap9 plicants seeking loans or loan guarantees. 

10 ‘‘(B) CRITERIA.—Applicants seeking loans 

11 and loan guarantees issued under this sub12 section shall— 

13 ‘‘(i) seek a total loan or loan guar14 antee value not exceeding $100,000,000; 

15 ‘‘(ii) meet eligible project purposes in16 cluded in subparagraphs (A)(i), (A)(ii), 

17 and (B) of subsection (b)(1); and 

18 ‘‘(iii) meet other criteria considered 

19 appropriate by the Secretary, in consulta20 tion with the Department of Transpor21 tation Council on Credit and Finance. 

22 ‘‘(C) EXPEDITED CREDIT REVIEW.—The 

23 total period between the submission of a draft 

24 application and the approval or disapproval of 

25 a loan or loan guarantee for an applicant under 


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1 this paragraph may not exceed 90 days. If an 

2 application review conducted under this para3 graph exceeds 90 days, the Secretary shall— 

4 ‘‘(i) provide written notice to the ap5 plicant, including a justification for the 

6 delay and updated estimate of the time 

7 needed for approval or disapproval; and 

8 ‘‘(ii) post the notice on the dashboard 

9 described in paragraph (5). 

10 ‘‘(5) DASHBOARD.—The Secretary shall post, 

11 on the Department of Transportation’s internet 

12 website, a monthly report that includes, for each ap13 plication— 

14 ‘‘(A) the applicant type; 

15 ‘‘(B) the location of the project; 

16 ‘‘(C) a brief description of the project, in17 cluding its purpose; 

18 ‘‘(D) the requested direct loan or loan 

19 guarantee amount; 

20 ‘‘(E) the date on which the Secretary pro21 vided application status notice under paragraph 

22 (1); 

23 ‘‘(F) the date that the Secretary provided 

24 notice of approval or disapproval under para25 graph (3); and 


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1 ‘‘(G) whether the project utilized the expe2 dited application process under paragraph (4). 

3 ‘‘(6) REGULAR CREDITWORTHINESS REVIEW

4 STATUS REPORTS.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 provide to the applicant a regular report con7 taining information related to the application 

8 for a loan or loan guarantee, including— 

9 ‘‘(i) a summary of the proposed trans10 action, including— 

11 ‘‘(I) the total value of the pro12 posed loan or loan guarantee; 

13 ‘‘(II) the name of the applicant 

14 or applicants submitting an applica15 tion; 

16 ‘‘(III) the proposed capital struc17 ture of the project to which the loan 

18 or loan guarantee would be applied, 

19 including the proposed Federal and 

20 non-Federal shares of the total project 

21 cost; 

22 ‘‘(IV) the type of activity to re23 ceive credit assistance, including 

24 whether the project— 


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1 ‘‘(aa) is new construction or 

2 rehabilitation of existing rail 

3 equipment or facilities; 

4 ‘‘(bb) is a refinancing an ex5 isting loan or loan guarantee; 

6 and 

7 ‘‘(V) if a deferred payment is 

8 proposed, the length of such 

9 deferment; 

10 ‘‘(VI) the credit rating or ratings 

11 provided for the applicant; 

12 ‘‘(VII) if other credit instruments 

13 are involved, the proposed subordina14 tion relationship and a description of 

15 such other credit instruments; 

16 ‘‘(VIII) a schedule for the readi17 ness of proposed investments for fi18 nancing; 

19 ‘‘(IX) a description of any Fed20 eral permits required, including under 

21 the National Environmental Policy 

22 Act of 1969 (42 U.S.C. 4321 et seq.) 

23 and any waivers under section 5323(j) 

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1 monly referred to as the ‘Buy America 

2 Act’); and 

3 ‘‘(X) other characteristics of the 

4 proposed activity to be financed, bor5 rower, key agreements, or the nature 

6 of the credit that the Secretary con7 siders to be fundamental to the credit8 worthiness review; 

9 ‘‘(ii) the status of the application in 

10 the pre-application review and selection 

11 process; 

12 ‘‘(iii) the cumulative amounts paid by 

13 the Secretary to outside advisors related to 

14 the application, including financial and 

15 legal advisors; 

16 ‘‘(iv) a description of the key rating 

17 factors used by the Secretary to determine 

18 credit risk, including— 

19 ‘‘(I) the qualitative and quan20 titative factors used to determine risk 

21 for the proposed application; 

22 ‘‘(II) an adjectival risk rating for 

23 each identified factor, ranked as ei24 ther low, moderate, or high; and 


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1 ‘‘(v) a nonbinding estimate of the 

2 credit risk premium, which may be in the 

3 form of— 

4 ‘‘(I) a range, based on the assess5 ment of risk factors described in 

6 clause (iv); or 

7 ‘‘(II) a justification for why the 

8 estimate of the credit risk premium 

9 cannot be determined based on avail10 able information; and 

11 ‘‘(vi) a description of key information 

12 the Secretary needs from the applicant to 

13 complete the credit review process and 

14 make a final determination of the credit 

15 risk premium. 

16 ‘‘(B) REPORT.—The Secretary shall sub17 mit the report described in subparagraph (A) 

18 not less frequently than every 45 days after the 

19 date on which the Secretary presents the first 

20 request to the applicant for funding to pay fees 

21 for advisors described in subparagraph (A)(iii). 

22 ‘‘(C) EXCEPTION.—The report required 

23 under this paragraph may not be applied to ap24 plications processed using the expedited credit 

25 review process under paragraph (5)(B). 


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1 ‘‘(j) REPAYMENT SCHEDULES.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall estab3 lish a repayment schedule requiring payments to 

4 commence not later than 5 years after the date of 

5 substantial completion. 

6 ‘‘(2) ACCRUAL.—Interest shall accrue as of the 

7 date of disbursement, and shall be amortized over 

8 the remaining term of the loan, beginning at the 

9 time the payments begin. 

10 ‘‘(3) DEFERRED PAYMENTS.— 

11 ‘‘(A) IN GENERAL.—If, at any time the 

12 date of substantial completion, the obligor is 

13 unable to pay the scheduled loan repayments of 

14 principal and interest on a direct loan provided 

15 under this section, the Secretary, subject to 

16 subparagraph (B), may allow, for a maximum 

17 aggregate time of 1 year over the duration of 

18 the direct loan, the obligor to add unpaid prin19 cipal and interest to the outstanding balance of 

20 the direct loan. 

21 ‘‘(B) INTEREST.—A payment deferred 

22 under subparagraph (A) shall— 

23 ‘‘(i) continue to accrue interest under 

24 paragraph (2) until the loan is fully repaid; 

25 and 


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1 ‘‘(ii) be scheduled to be amortized 

2 over the remaining term of the loan. 

3 ‘‘(4) PREPAYMENTS.— 

4 ‘‘(A) USE OF EXCESS REVENUES.—With 

5 respect to a direct loan provided by the Sec6 retary under this section, any excess revenues 

7 that remain after satisfying scheduled debt 

8 service requirements on the project obligations 

9 and direct loan and all deposit requirements 

10 under the terms of any trust agreement, bond 

11 resolution, or similar agreement securing 

12 project obligations may be applied annually to 

13 prepay the direct loan without penalty. 

14 ‘‘(B) USE OF PROCEEDS OF REFI15 NANCING.—The direct loan may be prepaid at 

16 any time without penalty from the proceeds of 

17 refinancing from non-Federal funding sources. 

18 ‘‘(k) SALE OF DIRECT LOANS.— 

19 ‘‘(1) IN GENERAL.—Subject to paragraph (2) 

20 and as soon as practicable after substantial comple21 tion of a project, the Secretary, after notifying the 

22 obligor, may sell to another entity or reoffer into the 

23 capital markets a direct loan for the project if the 

24 Secretary determines that the sale or reoffering has 

25 a high probability of being made on favorable terms. 


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1 ‘‘(2) CONSENT OF OBLIGOR.—In making a sale 

2 or reoffering under paragraph (1), the Secretary 

3 shall not change the original terms and conditions of 

4 the secured loan without the prior written consent of 

5 the obligor. 

6 ‘‘(l) NONSUBORDINATION.— 

7 ‘‘(1) IN GENERAL.—Except as provided in para8 graph (2), a direct loan provided by the Secretary 

9 under this section shall not be subordinated to the 

10 claims of any holder of project obligations in the 

11 event of bankruptcy, insolvency, or liquidation of the 

12 obligor. 

13 ‘‘(2) PREEXISTING INDENTURES.— 

14 ‘‘(A) IN GENERAL.—The Secretary may 

15 waive the requirement under paragraph (1) for 

16 a public agency borrower that is financing on17 going capital programs and has outstanding 

18 senior bonds under a preexisting indenture if— 

19 ‘‘(i) the direct loan is rated in the A 

20 category or higher; 

21 ‘‘(ii) the direct loan is secured and 

22 payable from pledged revenues not affected 

23 by project performance, such as a tax24 based revenue pledge or a system-backed 

25 pledge of project revenues; and 


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1 ‘‘(iii) the program share, under this 

2 chapter, of eligible project costs is 50 per3 cent or less. 

4 ‘‘(B) LIMITATION.—The Secretary may 

5 impose limitations for the waiver of the non6 subordination requirement under this para7 graph if the Secretary determines that the limi8 tations would be in the financial interest of the 

9 Federal Government. 

10 ‘‘(m) MASTER CREDIT AGREEMENTS.— 

11 ‘‘(1) IN GENERAL.—Subject to paragraph (2) 

12 and to subsection (d), the Secretary may enter into 

13 a master credit agreement that is contingent on all 

14 of the conditions for the provision of a direct loan 

15 or loan guarantee, as applicable, under this chapter 

16 and other applicable requirements being satisfied 

17 prior to the issuance of the direct loan or loan guar18 antee. 

19 ‘‘(2) CONDITIONS.—Each master credit agree20 ment shall— 

21 ‘‘(A) establish the maximum amount and 

22 general terms and conditions of each applicable 

23 direct loan or loan guarantee; 

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1 payment of each applicable direct loan or loan 

2 guarantee; 

3 ‘‘(C) provide for the obligation of funds— 

4 ‘‘(i) for the direct loans or loan guar5 antees contingent on the meeting of all ap6 plicable requirements and after all require7 ments have been met, for the projects sub8 ject to the master credit agreement; and 

9 ‘‘(D) provide 1 or more dates, as deter10 mined by the Secretary, before which the mas11 ter credit agreement results in the disbursement 

12 issuance of each of the direct loans or loan 

13 guarantees or in the release of the master cred14 it agreement. 

15 ‘‘§ 22403. Administration of direct loans and loan 

16 guarantees 

17 ‘‘(a) APPLICATIONS.— 

18 ‘‘(1) IN GENERAL.—The Secretary shall pre19 scribe the form and contents required of applications 

20 for assistance under section 22402, to enable the 

21 Secretary to determine the eligibility of the appli22 cant’s proposal, and shall establish terms and condi23 tions for direct loans and loan guarantees made 

24 under that section, including a program guide, a 

25 standard term sheet, and specific timetables. 


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1 ‘‘(2) DOCUMENTATION.—An applicant meeting 

2 the size standard for small business concerns estab3 lished under section 3(a)(2) of the Small Business 

4 Act (15 U.S.C. 632(a)(2)) may provide unaudited fi5 nancial statements as documentation of historical fi6 nancial information if such statements are accom7 panied by the applicant’s Federal tax returns and 

8 Internal Revenue Service tax verifications for the 

9 corresponding years. 

10 ‘‘(b) FULL FAITH AND CREDIT.—All guarantees en11 tered into by the Secretary under section 22402 shall con12 stitute general obligations of the United States of America 

13 and shall be backed by the full faith and credit of the 

14 United States of America. 

15 ‘‘(c) ASSIGNMENT OF LOAN GUARANTEES.—The 

16 holder of a loan guarantee made under section 22402 may 

17 assign the loan guarantee in whole or in part, subject to 

18 such requirements as the Secretary may prescribe. 

19 ‘‘(d) MODIFICATIONS.—The Secretary may approve 

20 the modification of any term or condition of a direct loan, 

21 loan guarantee, direct loan obligation, or loan guarantee 

22 commitment, including the rate of interest, time of pay23 ment of interest or principal, or security requirements, if 

24 the Secretary finds in writing that— 


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1 ‘‘(1) the modification is equitable and is in the 

2 overall best interests of the United States; 

3 ‘‘(2) consent has been obtained from the appli4 cant and in the case of a loan guarantee or loan 

5 guarantee commitment, the holder of the obligation; 

6 and 

7 ‘‘(3) the modification cost has been covered 

8 under section 22402(f). 

9 ‘‘(e) COMPLIANCE.—The Secretary shall ensure com10 pliance by an applicant, any other party to the loan, and 

11 any railroad or railroad partner for whose benefit assist12 ance is intended, with the provisions of this chapter, regu13 lations issued under this chapter, and the terms and con14 ditions of the direct loan or loan guarantee, including 

15 through regular periodic inspections. 

16 ‘‘(f) COMMERCIAL VALIDITY.— 

17 ‘‘(1) IN GENERAL.—For purposes of claims by 

18 any party other than the Secretary, a loan guarantee 

19 or loan guarantee commitment shall be conclusive 

20 evidence that the underlying obligation is in compli21 ance with the provisions of this chapter, and that 

22 the obligation has been approved and is legal as to 

23 principal, interest, and other terms. 

24 ‘‘(2) VALID AND INCONTESTABLE.—A guar25 antee or commitment under paragraph (1) shall be 


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1 valid and incontestable in the hands of a holder of 

2 the guarantee or commitment, including the original 

3 lender or any other holder, as of the date when the 

4 Secretary granted the application for the guarantee 

5 or commitment, except as to fraud or material mis6 representation by the holder. 

7 ‘‘(g) DEFAULT.— 

8 ‘‘(1) IN GENERAL.—The Secretary shall pre9 scribe regulations setting forth procedures in the 

10 event of default on a loan made or guaranteed under 

11 section 22402. 

12 ‘‘(2) LOAN GUARANTEES.—The Secretary shall 

13 ensure that each loan guarantee made under section 

14 22402 contains terms and conditions that provide 

15 that— 

16 ‘‘(A) if a payment of principal or interest 

17 under the loan is in default for more than 30 

18 days, the Secretary shall pay to the holder of 

19 the obligation, or the holder’s agent, the 

20 amount of unpaid guaranteed interest; 

21 ‘‘(B) if the default has continued for more 

22 than 90 days, the Secretary shall pay to the 

23 holder of the obligation, or the holder’s agent, 

24 90 percent of the unpaid guaranteed principal; 


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1 ‘‘(C) after final resolution of the default, 

2 through liquidation or otherwise, the Secretary 

3 shall pay to the holder of the obligation, or the 

4 holder’s agent, any remaining amounts guaran5 teed but that were not recovered through the 

6 default’s resolution; 

7 ‘‘(D) the Secretary shall not be required to 

8 make any payment under subparagraphs (A) 

9 through (C) if the Secretary finds, before the 

10 expiration of the periods described in such sub11 paragraphs, that the default has been remedied; 

12 and 

13 ‘‘(E) the holder of the obligation shall not 

14 receive payment or be entitled to retain pay15 ment in a total amount that, together with all 

16 other recoveries (including any recovery based 

17 upon a security interest in equipment or facili18 ties) exceeds the actual loss of the holder. 

19 ‘‘(h) RIGHTS OF THE SECRETARY.— 

20 ‘‘(1) SUBROGATION.—If the Secretary makes 

21 payment to a holder, or a holder’s agent, under sub22 section (g) in connection with a loan guarantee made 

23 under section 22402, the Secretary shall be sub24 rogated to all of the rights of the holder with respect 

25 to the obligor under the loan. 


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1 ‘‘(2) DISPOSITION OF PROPERTY.—The Sec2 retary may complete, recondition, reconstruct, ren3 ovate, repair, maintain, operate, charter, rent, sell, 

4 or otherwise dispose of any property or other inter5 ests obtained pursuant to this section. The Secretary 

6 shall not be subject to any Federal or State regu7 latory requirements when carrying out this para8 graph. 

9 ‘‘(i) ACTION AGAINST OBLIGOR.— 

10 ‘‘(1) IN GENERAL.—The Secretary may bring a 

11 civil action in an appropriate Federal court in the 

12 name of the United States in the event of a default 

13 on a direct loan made under section 22402 or in the 

14 name of the United States or of the holder of the 

15 obligation in the event of a default on a loan guar16 anteed under section 22402. 

17 ‘‘(2) RECORDS AND EVIDENCE.—The holder of 

18 a guarantee shall make available to the Secretary all 

19 records and evidence necessary to prosecute the civil 

20 action. 

21 ‘‘(3) PROPERTY AS SATISFACTION OF SUMS

22 OWED.—The Secretary may accept property in full 

23 or partial satisfaction of any sums owed as a result 

24 of a default. 

25 ‘‘(4) EXCESS AMOUNT.— 


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1 ‘‘(A) PAYMENT TO OBLIGOR.—If the Sec2 retary receives, through the sale or other dis3 position of the property described in paragraph 

4 (3), an excess amount described in subpara5 graph (B), the Secretary shall pay to the obli6 gor the excess amount. 

7 ‘‘(B) AMOUNT.—An excess amount under 

8 this subparagraph is an amount the exceeds the 

9 aggregate of— 

10 ‘‘(i) the amount paid to the holder of 

11 a guarantee under subsection (g); and 

12 ‘‘(ii) any other cost to the United 

13 States of remedying the default. 

14 ‘‘(j) BREACH OF CONDITIONS.—The Attorney Gen15 eral shall commence a civil action in an appropriate Fed16 eral court to enjoin any activity that the Secretary finds 

17 is in violation of this chapter, regulations issued under this 

18 chapter, or any conditions that were agreed to, and to se19 cure any other appropriate relief. 

20 ‘‘(k) ATTACHMENT.—No attachment or execution 

21 may be issued against the Secretary, or any property in 

22 the control of the Secretary, prior to the entry of final 

23 judgment to that effect in any Federal, State, or other 

24 court. 

25 ‘‘(l) CHARGES AND LOAN SERVICING.— 


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1 ‘‘(1) PURPOSES.—The Secretary may collect 

2 from each applicant, obligor, or loan party a reason3 able charge for— 

4 ‘‘(A) the cost of evaluating the application, 

5 amendments, modifications, and waivers, in6 cluding for evaluating project viability, appli7 cant creditworthiness, and the appraisal of the 

8 value of the equipment or facilities for which 

9 the direct loan or loan guarantee is sought, and 

10 for making necessary determinations and find11 ings; 

12 ‘‘(B) to cost of award management and 

13 project management oversight; 

14 ‘‘(C) the cost of services from expert firms, 

15 including counsel, and independent financial ad16 visors to assist in the underwriting, auditing, 

17 servicing, and exercise of rights with respect to 

18 direct loans and loan guarantees; and 

19 ‘‘(D) the cost of all other expenses in20 curred as a result of a breach of any term or 

21 condition or any event of default on a direct 

22 loan or loan guarantee. 

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1 section based on the different costs incurred under 

2 paragraph (1). 

3 ‘‘(3) SERVICER.— 

4 ‘‘(A) IN GENERAL.—The Secretary may 

5 appoint a financial entity to assist the Secretary 

6 in servicing a direct loan or loan guarantee 

7 under this chapter. 

8 ‘‘(B) DUTIES.—A servicer appointed under 

9 subparagraph (A) shall act as the agent of the 

10 Secretary in servicing a direct loan or loan 

11 guarantee under this chapter. 

12 ‘‘(C) FEES.—A servicer appointed under 

13 subparagraph (A) shall receive a servicing fee 

14 from the obligor or other loan party, subject to 

15 approval by the Secretary. 

16 ‘‘(4) NATIONAL SURFACE TRANSPORTATION

17 AND INNOVATIVE FINANCE BUREAU ACCOUNT.— 

18 Amounts collected under this subsection shall— 

19 ‘‘(A) be credited directly to the National 

20 Surface Transportation and Innovative Finance 

21 Bureau Account; and 

22 ‘‘(B) remain available until expended to 

23 pay for the costs described in this subsection. 

24 ‘‘(m) FEES AND CHARGES.—Except as provided in 

25 this chapter, the Secretary may not assess fees, including 


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1 user fees, or charges in connection with a direct loan or 

2 loan guarantee provided under section 22402. 

3 ‘‘§ 22404. Employee protection 

4 ‘‘(a) IN GENERAL.— 

5 ‘‘(1) FAIR AND EQUITABLE ARRANGEMENTS.— 

6 Fair and equitable arrangements shall be provided, 

7 in accordance with this section, to protect the inter8 ests of any employees who may be affected by ac9 tions taken pursuant to authorizations or approval 

10 obtained under this chapter. 

11 ‘‘(2) ARRANGEMENTS BY AGREEMENTS.—The 

12 arrangements under paragraph (1) shall be deter13 mined by the execution of an agreement between the 

14 representatives of the railroads and the representa15 tives of their employees not later than June 4, 1976. 

16 ‘‘(3) PRESCRIBED ARRANGEMENTS.—In the ab17 sence of an executed agreement under paragraph 

18 (2), the Secretary of Labor shall prescribe the appli19 cable protective arrangements not later than July 4, 

20 1976. 

21 ‘‘(b) TERMS.— 

22 ‘‘(1) APPLICABILITY TO EXISTING EMPLOY23 EES.—The arrangements required under subsection 

24 (a) shall apply to each employee who has an employ25 ment relationship with a railroad on the date on 


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1 which the railroad first applies for financial assist2 ance under this chapter. 

3 ‘‘(2) INCLUSIONS.—Such arrangements shall 

4 include such provisions as may be necessary for the 

5 negotiation and execution of agreements as to the 

6 manner in which the protective arrangements shall 

7 be applied, including notice requirements. 

8 ‘‘(3) EXECUTION PRIOR TO IMPLEMENTATION

9 OF WORK.—The agreements shall be executed prior 

10 to implementation of work funded from financial as11 sistance under this chapter. 

12 ‘‘(4) ARBITRATION.— 

13 ‘‘(A) IN GENERAL.—If an agreement de14 scribed in subsection (a)(2) is not reached with15 in 30 days after the date on which an applica16 tion for the assistance is approved, either party 

17 to the dispute may submit the issue for final 

18 and binding arbitration. 

19 ‘‘(B) DECISION.— 

20 ‘‘(i) WHEN DECISION IS TO BE REN21 DERED.—The decision on any arbitration 

22 under this paragraph shall be rendered 

23 within 30 days after the submission. 

24 ‘‘(ii) EFFECT.—The arbitration deci25 sion— 


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1 ‘‘(I) shall not modify the protec2 tion afforded in the protective ar3 rangements established pursuant to 

4 this section; 

5 ‘‘(II) shall be final and binding 

6 on the parties to the arbitration; and 

7 ‘‘(III) shall become a part of the 

8 agreement. 

9 ‘‘(5) OTHER INCLUSIONS.—The arrangements 

10 shall also include such provisions as may be nec11 essary— 

12 ‘‘(A) for the preservation of compensation 

13 (including subsequent general wage increases, 

14 vacation allowances, and monthly compensation 

15 guarantees), right, privileges, and benefits (in16 cluding fringe benefits such as pensions, hos17 pitalization, and vacations, under the same con18 ditions and so long as the benefits continue to 

19 be accorded to other employees of the employ20 ing railroad in active service or on furlough, as 

21 the case may be) to the employees under exist22 ing collective-bargaining agreements or other23 wise; 

24 ‘‘(B) to provide for final and binding arbi25 tration of any dispute that cannot be settled by 


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1 the parties with respect to the interpretation, 

2 application, or enforcement of the provisions of 

3 the protective arrangements; 

4 ‘‘(C) to provide that an employee who is 

5 unable to secure employment by the exercise of 

6 the employee’s seniority rights, as a result of 

7 actions taken with financial assistance obtained 

8 under this chapter, shall be offered reassign9 ment and, where necessary, retraining to fill a 

10 position comparable to the position held at the 

11 time of the adverse effect and for which the em12 ployee is, or by training and retraining can be13 come, physically and mentally qualified, so long 

14 as the offer is not in contravention of collective 

15 bargaining agreements relating to the provi16 sions in this paragraph; and 

17 ‘‘(D) to provide that the protection af18 forded pursuant to this section shall not be ap19 plicable to employees benefitted solely as a re20 sult of the work that is financed by funds pro21 vided pursuant to this chapter. 

22 ‘‘(c) SUBCONTRACTING.—The arrangements that are 

23 required to be negotiated by the parties or prescribed by 

24 the Secretary of Labor, pursuant to subsections (a) and 

25 (b), shall include provisions regulating subcontracting by 


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1 the railroads of work that is financed by funds provided 

2 pursuant to this chapter. 

3 ‘‘§ 22405. Substantive criteria and standards 

4 ‘‘The Secretary shall publish in the Federal Register 

5 and post on the Department of Transportation website the 

6 substantive criteria and standards used by the Secretary 

7 to determine whether to approve or disapprove applica8 tions submitted under section 22404. The Secretary shall 

9 ensure adequate procedures and guidelines are in place to 

10 permit the filing of complete applications not later than 

11 30 days after such publication. 

12 ‘‘§ 22406. Funding 

13 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.— 

14 ‘‘(1) IN GENERAL.—There are authorized to be 

15 appropriated out of the General Fund for credit as16 sistance under this chapter— 

17 ‘‘(A) $30,000,000 for fiscal year 2022; 

18 ‘‘(B) $31,000,000 for fiscal year 2023; 

19 ‘‘(C) $32,000,000 for fiscal year 2024; 

20 ‘‘(D) $33,000,000 for fiscal year 2025; 

21 and 

22 ‘‘(E) $34,000,000 for fiscal year 2026. 

23 ‘‘(2) AVAILABILITY.—Amounts appropriated 

24 pursuant to this subsection shall remain available 

25 until expended. 


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1 ‘‘(b) USE OF FUNDS.— 

2 ‘‘(1) IN GENERAL.—Except as provided in para3 graph (2), amounts appropriated pursuant to this 

4 section shall be used for loans and loan guarantees 

5 with a total value of not more than $200,000,000. 

6 ‘‘(2) ADMINISTRATIVE COSTS.—In each fiscal 

7 year, not less than $3,000,000 of the amounts ap8 propriated pursuant to subsection (a) shall be made 

9 available for the Secretary for use in lieu of charges 

10 collected under section 22403(l)(1) for freight rail11 roads other than Class I carriers and passenger rail12 roads. 

13 ‘‘(3) SHORT LINE SET-ASIDE.—In each fiscal 

14 year, not less than 50 percent of the amounts appro15 priated pursuant to subsection (a) that remain avail16 able after the set aside described in paragraph (2) 

17 shall be set aside for freight railroads other than 

18 Class I carriers. 

19 ‘‘(4) PASSENGER RAIL SET-ASIDE.—Any 

20 amounts appropriated pursuant to subsection (a) 

21 that remain available after the set-asides described 

22 in paragraphs (2) and (3) shall be set aside for pas23 senger railroads.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of chapters 

2 for title 49, United States Code, is amended by inserting 

3 after the item relating to chapter 223 the following: 

‘‘CHAPTER 224—RAILROAD REHABILITATION AND IMPROVEMENT FINANCING

PROGRAM’’. 

4 SEC. 3. CONFORMING AMENDMENTS. 

5 (a) NATIONAL TRAILS SYSTEM ACT.—Section 8(d) 

6 of the National Trails System Act (16 U.S.C. 1247(d)) 

7 is amended by inserting ‘‘(45 U.S.C. 801 et seq.) and 

8 chapter 224 of title 49, United States Code’’ after 

9 ‘‘1976’’. 

10 (b) PASSENGER RAIL REFORM AND INVESTMENT

11 ACT.—Section 11315(c) of the Passenger Rail Reform 

12 and Investment Act of 2015 (23 U.S.C. 322 note; Public 

13 Law 114–94) is amended by striking ‘‘sections 502 and 

14 503 of the Railroad Revitalization and Regulatory Reform 

15 Act of 1976’’ and inserting ‘‘sections 22402 and 22403 

16 of title 49, United States Code’’. 

17 (c) PROVISIONS CLASSIFIED IN TITLE 45, UNITED

18 STATES CODE.— 

19 (1) Section 101 of the Railroad Revitalization 

20 and Regulatory Reform Act of 1976 (45 U.S.C. 

21 801) is amended— 

22 (A) in subsection (a), in the matter pre23 ceding paragraph (1), by striking ‘‘It is the 

24 purpose of the Congress in this Act to’’ and inVerDate Sep 11 2014 02:33 Mar 19, 2021 Jkt 019200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S468.IS S468

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1 serting ‘‘The purpose of this Act and chapter 

2 224 of subtitle V of title 49, United States 

3 Code, is to’’; and 

4 (B) in subsection (b), in the matter pre5 ceding paragraph (1), by striking ‘‘It is de6 clared to be the policy of the Congress in this 

7 Act’’ and inserting ‘‘The policy of this Act and 

8 chapter 224 of title 49, United States Code, 

9 is’’. 

10 (2) Section 11607(b) of the Railroad Infra11 structure Financing Improvement Act (Public Law 

12 114–94; 45 U.S.C. 821 note) is amended by striking 

13 ‘‘All provisions under sections 502 through 504 of 

14 the Railroad Revitalization and Regulatory Reform 

15 Act of 1976 (45 U.S.C. 8301 et seq.)’’ and inserting 

16 ‘‘All provisions under section 22404 through 22404 

17 of title 49, United States Code,’’. 

18 (3) Section 11610(b) of the Railroad Infra19 structure Financing Improvement Act (Public Law 

20 114–94; 45 U.S.C. 821 note) is amended by striking 

21 ‘‘section 502(f) of the Railroad Revitalization and 

22 Regulatory Reform Act of 1976 (45 U.S.C. 822(f)), 

23 as amended by section 11607 of this Act’’ and in24 serting ‘‘section 22402(f) of title 49, United States 

25 Code’’. 


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1 (4) Section 7203(b)(2) of the Transportation 

2 Equity Act for the 21st Century (Public Law 105– 

3 178; 45 U.S.C. 821 note) is amended by striking 

4 ‘‘title V of the Railroad Revitalization and Regu5 latory Reform Act of 1976 (45 U.S.C. 821 et seq.)’’ 

6 and inserting ‘‘chapter 224 of title 49, United States 

7 Code,’’. 

8 (5) Section 212(d)(1) of Hamm Alert Maritime 

9 Safety Act of 2018 (title II of Public Law 115–265; 

10 45 U.S.C. 822 note) is amended, in the matter pre11 ceding subparagraph (A), by striking ‘‘for purposes 

12 of section 502(f)(4) of the Railroad Revitalization 

13 and Regulatory Reform Act of 1976 (45 U.S.C. 

14 822(f)(4))’’ and inserting ‘‘for purposes of section 

15 22402 of title 49, United States Code’’. 

16 (6) Section 15(f) of the Milwaukee Railroad Re17 structuring Act (45 U.S.C. 914(f)) is amended by 

18 striking ‘‘Section 516 of the Railroad Revitalization 

19 and Regulatory Reform Act of 1976 (45 U.S.C. 

20 836)’’ and inserting ‘‘Section 22404 of title 49, 

21 United States Code,’’. 

22 (7) Section 104(b) of the Rock Island Railroad 

23 Transition and Employee Assistance Act (45 U.S.C. 

24 1003(b)) is amended— 


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1 (A) in paragraph (1), by striking ‘‘title V 

2 of the Railroad Revitalization and Regulatory 

3 Reform Act of 1976 (45 U.S.C. 821 et seq.)’’ 

4 and inserting ‘‘chapter 224 of title 49, United 

5 States Code,’’; and 

6 (B) in paragraph (2), by striking ‘‘title V 

7 of the Railroad Revitalization and Regulatory 

8 Reform Act of 1976, and section 516 of such 

9 Act (45 U.S.C. 836)’’ and inserting ‘‘chapter 

10 224 of title 49, United States Code, and section 

11 22404 of title 49, United States Code,’’. 

12 (8) Section 104(b)(2) of the Rock Island Rail13 road Transition and Employee Assistance Act (45 

14 U.S.C. 1003(b)(2)) is amended by striking ‘‘title V 

15 of the Railroad Revitalization and Regulatory Re16 form Act of 1976, and section 516 of such Act (45 

17 U.S.C. 836)’’ and inserting ‘‘chapter 224 of title 49, 

18 United States Code, and section 22404 of such title 

19 49,’’. 

20 (d) TITLE 49.— 

21 (1) Section 116(d)(1)(B) of title 49, United 

22 States Code, is amended by striking ‘‘sections 501 

23 through 503 of the Railroad Revitalization and Reg24 ulatory Reform Act of 1976 (45 U.S.C. 821–823)’’ 


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1 and inserting ‘‘sections 22401 through 22403 of this 

2 title’’. 

3 (2) Section 306(b) of title 49, United States 

4 Code, is amended— 

5 (A) by striking ‘‘chapter 221 or 249 of this 

6 title,’’ and inserting ‘‘chapter 221, 224, or 249 

7 of this title,’’; and 

8 (B) by striking ‘‘, or title V of the Railroad 

9 Revitalization and Regulatory Reform Act of 

10 1976 (45 U.S.C. 821 et seq.)’’. 

11 (3) Section 11311(d) of the Passenger Rail Re12 form and Investment Act of 2015 (Public Law 114– 

13 94; 49 U.S.C. 20101 note) is amended by striking 

14 ‘‘, and section 502 of the Railroad Revitalization 

15 and Regulatory Reform Act of 1976 (45 U.S.C. 

16 822)’’. 

17 (4) Section 205(g) of the Passenger Rail In18 vestment and Improvement Act of 2008 (division B 

19 of Public Law 110–432; 49 U.S.C. 24101 note) is 

20 amended by striking ‘‘title V of the Railroad Revital21 ization and Regulatory Reform Act of 1976 (45 

22 U.S.C. 821 et seq.)’’ and inserting ‘‘chapter 224 of 

23 title 49, United States Code’’. 

24 (5) Section 22905(c)(2)(B) of title 49, United 

25 States Code, is amended by striking ‘‘section 504 of 


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1 the Railroad Revitalization and Regulatory Reform 

2 Act of 1976 (45 U.S.C. 836)’’ and inserting ‘‘section 

3 22404 of this title’’. 

4 (6) Section 24903 of title 49, United States 

5 Code, is amended— 

6 (A) in subsection (a)(6), by striking ‘‘and 

7 the Railroad Revitalization and Regulatory Re8 form Act of 1976 (45 U.S.C. 801 et seq.)’’ and 

9 inserting ‘‘, the Railroad Revitalization and 

10 Regulatory Reform Act of 1976 (45 U.S.C. 801 

11 et seq.), and chapter 224 of this title’’; and 

12 (B) in subsection (c)(2), by striking ‘‘and 

13 the Railroad Revitalization and Regulatory Re14 form Act of 1976 (45 U.S.C. 801 et seq.)’’ and 

15 inserting ‘‘, the Railroad Revitalization and 

16 Regulatory Reform Act of 1976 (45 U.S.C. 801 

17 et seq.), and chapter 224 of this title’’. 

18 SEC. 4. TRANSITIONAL AND SAVINGS PROVISIONS. 

19 (a) DEFINITIONS.—In this section: 

20 (1) RESTATED PROVISION.—The term ‘‘restated 

21 provision’’ means a provision of chapter 224 of title 

22 49, United States Code, as added by section 2. 

23 (2) SOURCE PROVISION.—The term ‘‘source 

24 provision’’ means a provision of law that is replaced 

25 by a restated provision. 


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1 (b) CUTOFF DATE.— 

2 (1) IN GENERAL.—The restated provisions re3 place certain source provisions enacted on or before 

4 December 31, 2020. 

5 (2) SUBSEQUENT AMENDMENTS AND RE6 PEALS.—If a law enacted after December 31, 2020 

7 amends or repeals a source provision, that law is 

8 deemed to amend or repeal, as the case may be, the 

9 corresponding restated provision. If a law enacted 

10 after December 31, 2020 is otherwise inconsistent 

11 with a restated provision of this Act, that law super12 sedes the restated provision of this Act to the extent 

13 of the inconsistency. 

14 (c) ORIGINAL DATE OF ENACTMENT UNCHANGED.— 

15 A restated provision is deemed to have been enacted on 

16 the date of enactment of the corresponding source provi17 sion. 

18 (d) REFERENCES TO RESTATED PROVISIONS.—A 

19 reference to a restated provision is deemed to refer to the 

20 corresponding source provision. 

21 (e) REFERENCES TO SOURCE PROVISIONS.—A ref22 erence to a source provision, including a reference in a 

23 regulation, order, or other law, is deemed to refer to the 

24 corresponding restated provision. 


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1 (f) REGULATIONS, ORDERS, AND OTHER ADMINIS2 TRATIVE ACTIONS.—A regulation, order, or other admin3 istrative action in effect under a source provision con4 tinues in effect under the corresponding restated provi5 sion. 

6 (g) ACTIONS TAKEN AND OFFENSES COMMITTED.— 

7 An action taken or an offense committed under a source 

8 provision is deemed to have been taken or committed 

9 under the corresponding restated provision. 

10 SEC. 5. REPEALS. 

11 The following provisions of law are repealed, except 

12 with respect to rights and duties that matured, penalties 

13 that were incurred, or proceedings that were begun before 

14 the date of enactment of this Act: 

Schedule of Laws Repealed 

Act Section United States Code 

Former Classification 

Railroad Revitalization and Regulatory Reform Act of 1976 (Public 

Law 94–210) ................................ 501 ................................................... 45 U.S.C. 821. 

502 ................................................... 45 U.S.C. 822. 

503 ................................................... 45 U.S.C. 823. 

504 ................................................... 45 U.S.C. 836. 

Safe, Accountable, Flexible, Efficient Transportation Equity Act: 

A Legacy for Users or 

SAFETEA–LU (Public Law 109– 

59) ................................................ 9003(j) ............................................. 45 U.S.C. 822 note. 

Æ 


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