I

106TH CONGRESS

2D SESSION H. R. 4746

To establish a program to preserve, rehabilitate, and improve certain railroad

tracks and bridges using funds collected through the diesel fuel tax,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 26, 2000

Mr. BACHUS (for himself, Mr. CLEMENT, Mr. BOEHLERT, Mr. DEFAZIO, Mr.

FRANKS of New Jersey, Mr. KLECZKA, Mr. FOLEY, Mr. DOOLEY of California, Mr. SWEENEY, Mr. MCHUGH, Mr. SCARBOROUGH, and Mr. FILNER) introduced the following bill; which was referred to the Committee

on Transportation and Infrastructure, and in addition to the Committee

on Ways and Means, for a period to be subsequently determined by the

Speaker, in each case for consideration of such provisions as fall within

the jurisdiction of the committee concerned

A BILL

To establish a program to preserve, rehabilitate, and improve

certain railroad tracks and bridges using funds collected

through the diesel fuel tax, 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.

4 This Act may be cited as the ‘‘Emergency Rural and

5 Small Railroad Preservation Act’’.
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1 SEC. 2. FINDINGS.

2 Congress finds that—

3 (1) a well-developed system of transportation

4 and infrastructure is critical to the economic well

5 being, health, and welfare of the United States;

6 (2) a national emergency exists that threatens

7 the survival of essential rail transportation infra8 structure, especially infrastructure serving rural

9 areas of the country;

10 (3) a failure to address the growing crisis will

11 result in rail line abandonments which will add to

12 highway costs and congestion, thus increasing high13 way traffic that will lead to a degradation of safety,

14 increase environmental damage, and further eco15 nomically disadvantage rural areas of the country;

16 (4) traditional funding techniques are unable to

17 keep pace with the rail infrastructure investment

18 needs in rural areas, including the requirement to

19 upgrade track and bridges, to ensure safety, and to

20 accommodate 286,000 pound freight cars;

21 (5) the requirement that railroads pay a 4.3-

22 cent diesel fuel excise tax into the general fund of

23 the Treasury, while similar taxes on competing

24 modes of transportation improve the infrastructures

25 for those competing modes, is inequitable; and
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1 (6) a temporary Federal program utilizing the

2 proceeds of the 4.3-cent railroad fuel tax to address

3 the national emergency and preserve freight rail

4 service is in the national interest as long as the 4.3-

5 cent diesel tax on railroads is in existence.

6 SEC. 3. ESTABLISHMENT OF PROGRAM.

7 (a) ESTABLISHMENT.—The Secretary of Transpor8 tation shall establish a program to preserve, rehabilitate,

9 and improve rail tracks and bridges of Class II and III

10 freight railroads to ensure that such railroads can be oper11 ated safely and can accommodate 286,000 pound rail cars.

12 (b) ALLOCATION OF FUNDS.—

13 (1) ELIGIBLE RECIPIENTS.—The Secretary

14 shall allocate funds made available to carry out this

15 section to entities making applications to the Sec16 retary for such funds, including State and local gov17 ernments, government-sponsored authorities and cor18 porations, and Class II and III railroads.

19 (2) CRITERIA.—In allocating funds made avail20 able to carry out this section, the Secretary shall

21 give priority to applications that—

22 (A) propose the rehabilitation or improve23 ment of track and bridges to a condition suffi24 cient to accommodate 286,000 pound rail cars

25 at speeds of at least 25 mph; or
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1 (B) are designated by a State Department

2 of Transportation as—

3 (i) preserving an essential link in the

4 State’s transportation network;

5 (ii) providing a cost efficient alter6 native to a highway connection or highway

7 project; or

8 (iii) enhancing safety.

9 (3) EQUITABLE DISTRIBUTION.—In allocating

10 funds to carry out this section, the Secretary shall

11 ensure the equitable distribution of funds to a diver12 sity of geographic regions.

13 (c) USE OF FUNDS.—

14 (1) TYPES OF PROJECTS.—Funds available

15 under this section may be used only for capital reha16 bilitation and improvement projects to Class II and

17 III rail freight lines to—

18 (A) upgrade track and bridges to accom19 modate 286,000 pound freight cars; or

20 (B) promote essential service and enhance

21 safety.

22 (2) TYPES OF FUNDING.—The Secretary may

23 make direct grants for the purposes stated in para24 graph (1), and may make grants to supplement di25 rect loans and loan guarantees under title V of the
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1 Railroad Revitalization and Regulatory Reform Act

2 of 1976 (45 U.S.C. 821 et seq.) to provide for such

3 benefits as a holiday on early payments, lowering

4 rates of interest, or paying credit risk premiums or

5 premium risk subsidy amounts in whole or in part.

6 (d) RAILROAD TRUST FUND.—

7 (1) IN GENERAL.—Subchapter A of chapter 98

8 of the Internal Revenue Code of 1986 (relating to

9 trust fund code) is amended by adding at the end

10 the following section:

11 ‘‘SEC. 9511. RAILROAD TRUST FUND.

12 ‘‘(a) CREATION OF TRUST FUND.—There is estab13 lished in the Treasury of the United States a trust fund

14 to be known as the ‘Railroad Trust Fund’, consisting of

15 any amount appropriated or credited to the Trust Fund

16 as provided in this section or section 9602(b).

17 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here18 by appropriated to the Railroad Trust Fund amounts

19 equivalent to the taxes received in the Treasury under

20 clause (ii) of section 4041(a)(1)(C) (relating to rate of tax

21 on trains).

22 ‘‘(c) EXPENDITURES.—Amounts in the Railroad

23 Trust Fund shall be available, as provided by appropria24 tion Acts, for making expenditures under the Emergency
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1 Rural and Small Railroad Preservation Act, as in effect

2 on the date of the enactment of this section.’’.

3 (2) CLERICAL AMENDMENT.—The table of sec4 tions for subchapter A of chapter 98 of such Code

5 is amended by adding at the end the following new

6 item:

‘‘Sec. 9511. Railroad Trust Fund.’’.

7 (3) EFFECTIVE DATE.—The amendments made

8 by this subsection shall apply to amounts received

9 after the date of the enactment of this Act.

10 (e) ADMINISTRATION.—The Secretary shall give pri11 ority to projects that are economically viable, and shall

12 require a non-Federal matching contribution of at least

13 10 percent. The Secretary shall make grants available no

14 later than 90 days following the availability of appropria15 tions for each fiscal year.

16 (f) STUDY.—Section 22301(d) of title 49, United

17 States Code, is amended by inserting ‘‘, and of projects

18 carried out with assistance under the Emergency Rural

19 and Small Railroad Preservation Act,’’ after ‘‘under this

20 section’’.

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