II 

114TH CONGRESS 

1ST SESSION S. 797 

To amend the Railroad Revitalization and Regulatory Reform Act of 1976, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 19, 2015 

Mr. BOOKER introduced the following bill; which was read twice and referred 

to the Committee on Commerce, Science, and Transportation 

A BILL 

To amend the Railroad Revitalization and Regulatory Reform 

Act of 1976, 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; REFERENCES. 

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

5 ‘‘Railroad Infrastructure Financing Improvement Act’’. 

6 (b) REFERENCES TO THE RAILROAD REVITALIZA7 TION AND REGULATORY REFORM ACT OF 1976.—Except 

8 as otherwise expressly provided, wherever in this Act an 

9 amendment or repeal is expressed in terms of an amend10 ment to, or repeal of, a section or other provision, the refVerDate Sep 11 2014 00:48 Mar 26, 2015 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S797.IS S797

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1 erence shall be considered to be made to a section or other 

2 provision of the Railroad Revitalization and Regulatory 

3 Reform Act of 1976 (45 U.S.C. 801 et seq.). 

4 SEC. 2. DEFINITIONS. 

5 Section 501 (45 U.S.C. 821) is amended— 

6 (1) by redesignating paragraph (8) as para7 graph (10); 

8 (2) by redesignating paragraphs (6) and (7) as 

9 paragraphs (7) and (8), respectively; 

10 (3) by inserting after paragraph (5) the fol11 lowing: 

12 ‘‘(6) The term ‘investment-grade rating’ means 

13 a rating of BBB minus, Baa 3, bbb minus, 

14 BBB(low), or higher assigned by a rating agency.’’; 

15 (4) by inserting after paragraph (8), as redesig16 nated, the following: 

17 ‘‘(9) The term ‘master credit agreement’ means 

18 an agreement to make 1 or more direct loans or loan 

19 guarantees at future dates for a program of related 

20 projects secured by a common security pledge on 

21 terms acceptable to the Secretary.’’; and 

22 (5) by adding at the end the following: 

23 ‘‘(11) The term ‘project obligation’ means as 

24 note, bond, debenture, or other debt obligation 

25 issued by a borrower in connection with the financVerDate Sep 11 2014 00:48 Mar 26, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S797.IS S797

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1 ing of a project, other than a direct loan or loan 

2 guarantee under this title. 

3 ‘‘(12) The term ‘railroad’ has the meaning 

4 given the term ‘railroad carrier’ in section 20102 of 

5 title 49, United States Code. 

6 ‘‘(13) The term ‘rating agency’ means a credit 

7 rating agency registered with the Securities and Ex8 change Commission as a nationally recognized statis9 tical rating organization (as defined in section 3(a) 

10 of the Securities Exchange Act of 1934 (15 U.S.C. 

11 78c(a))). 

12 ‘‘(14) The term ‘substantial completion’ 

13 means— 

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

15 or freight traffic; or 

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

17 the Secretary and specified in the direct loan.’’. 

18 SEC. 3. ELIGIBLE APPLICANTS. 

19 Section 502(a) (45 U.S.C. 822(a)) is amended— 

20 (1) in paragraph (5), by striking ‘‘one railroad; 

21 and’’ and inserting ‘‘1 of the entities described in 

22 paragraph (1), (2), (3), (4), or (6);’’; 

23 (2) by amending paragraph (6) to read as fol24 lows: 


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1 ‘‘(6) solely for the purpose of constructing a 

2 rail connection between a plant or facility and a rail 

3 carrier, limited option freight shippers that own or 

4 operate a plant or other facility; and’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(7) any obligor, as designated by an entity 

7 otherwise eligible to receive a direct loan or loan 

8 guarantee under this section, including a special 

9 purpose entity receiving user fees or other payments 

10 or revenues from dedicated sources for debt service 

11 and maintenance of the equipment or facilities to be 

12 acquired or improved; and 

13 ‘‘(8) solely for a project described in subsection 

14 (b)(1)(D), a public-private partnership, private enti15 ty, or consortium that specializes in real estate de16 velopment.’’. 

17 SEC. 4. ELIGIBLE PURPOSES. 

18 Section 502(b)(1) (45 U.S.C. 822(b)(1)) is amend19 ed— 

20 (1) in subparagraph (A), by inserting ‘‘, and in21 cluding costs related to these activities and excluding 

22 operating expenses’’ after ‘‘shops’’; 

23 (2) in subparagraph (B), by striking ‘‘subpara24 graph (A); or’’ and inserting ‘‘subparagraph (A) or 

25 (C);’’; 


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1 (3) in subparagraph (C), by striking the period 

2 at the end and inserting ‘‘; or’’; and 

3 (4) by adding at the end the following: 

4 ‘‘(D) finance economic development, in5 cluding commercial and residential development, 

6 and related infrastructure and activities, that— 

7 ‘‘(i) incorporates private investment; 

8 ‘‘(ii) is physically or functionally re9 lated to a passenger rail station or 

10 multimodal station; and 

11 ‘‘(iii) is likely to increase ridership at 

12 that station.’’. 

13 SEC. 5. PROGRAM ADMINISTRATION. 

14 (a) APPLICATION PROCESSING PROCEDURES.—Sec15 tion 502(i) (45 U.S.C. 822(i)) is amended to read as fol16 lows: 

17 ‘‘(i) APPLICATION PROCESSING PROCEDURES.— 

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

19 than 30 days after the date that the Secretary re20 ceives an application under this section, the Sec21 retary shall provide the applicant written notice as 

22 to whether the application is complete or incomplete. 

23 ‘‘(2) INCOMPLETE APPLICATIONS.—If the Sec24 retary determines that an application is incomplete, 

25 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 and 

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

6 information and material described under sub7 paragraph (A) to complete the application with8 out prejudice. 

9 ‘‘(3) APPLICATION APPROVALS AND DIS10 APPROVALS.—Not later than 60 days after the date 

11 the Secretary notifies an applicant that an applica12 tion is complete under paragraph (1), the Secretary 

13 shall provide the applicant written notice as to 

14 whether the Secretary has approved or disapproved 

15 the application. 

16 ‘‘(4) EXPEDITED PROCESSING.—The Secretary 

17 shall implement procedures and measures to econo18 mize the time and cost involved in obtaining an ap19 proval or a disapproval of credit assistance under 

20 this title.’’. 

21 (b) ADMINISTRATION OF DIRECT LOANS AND LOAN

22 GUARANTEES.—Section 503 (45 U.S.C. 823) is amend23 ed— 

24 (1) in subsection (a), by striking the period at 

25 the end and inserting ‘‘, including a program guide 


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1 and standard term sheet, application deadlines, and 

2 specific timetables.’’; 

3 (2) by redesignating subsections (c) through (l) 

4 as subsections (d) through (m), respectively; 

5 (3) by striking ‘‘(b) ASSIGNMENT OF LOAN

6 GUARANTEES.—’’ and inserting ‘‘(c) ASSIGNMENT

7 OF LOAN GUARANTEES.—’’; 

8 (4) in subsection (d), as redesignated— 

9 (A) in paragraph (1), by striking ‘‘; and’’ 

10 and inserting a semicolon; 

11 (B) in paragraph (2), by striking the pe12 riod at the end and inserting ‘‘; and’’; and 

13 (C) by adding at the end the following: 

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

15 under section 502(f).’’; and 

16 (5) by amending subsection (l), as redesignated, 

17 to read as follows: 

18 ‘‘(l) CHARGES.— 

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

20 from each applicant a reasonable charge for— 

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

22 amendments, modifications, and waivers, in23 cluding appraisal of the value of the equipment 

24 or facilities for which the direct loan or loan 


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1 guarantee is sought, and for making necessary 

2 determinations and findings; 

3 ‘‘(B) the cost of award management and 

4 project management oversight; 

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

6 including counsel, in the field of railroad, mu7 nicipal, and project finance, to assist in the un8 derwriting, auditing, servicing, and exercise of 

9 rights with respect to direct loans and loan 

10 guarantees; and 

11 ‘‘(D) the cost of all other expenses in12 curred as a result of a breach of any term or 

13 condition or any event of default on a direct 

14 loan or loan guarantee. 

15 ‘‘(2) STANDARDS.—The Secretary shall pre16 scribe standards for applying a charge under this 

17 subsection to ensure that it does not prevent an ap18 plicant from having adequate access to direct loans 

19 and loan guarantees under this title. 

20 ‘‘(3) SAFETY AND OPERATIONS ACCOUNT.— 

21 Amounts collected under this subsection shall be 

22 credited directly to the Safety and Operations ac23 count of the Federal Railroad Administration, and 

24 shall remain available until expended to pay for the 

25 costs described in this subsection.’’. 


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1 SEC. 6. LOAN TERMS AND REPAYMENT. 

2 (a) PREREQUISITES FOR ASSISTANCE.—Section 

3 502(g)(1) (45 U.S.C. 822(g)(1)) is amended by striking 

4 ‘‘35 years from the date of its execution’’ and inserting 

5 ‘‘the lesser of 50 years or 90 percent of the estimated use6 ful life of the rail equipment or facilities to be acquired, 

7 rehabilitated, improved, developed, or established’’. 

8 (b) REPAYMENT SCHEDULES.—Section 502(j) (45 

9 U.S.C. 822(j)) is amended— 

10 (1) in paragraph (1), by striking ‘‘the sixth an11 niversary date of the original loan disbursement’’ 

12 and inserting ‘‘5 years after the date of substantial 

13 completion’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(3) DEFERRED PAYMENTS.— 

16 ‘‘(A) IN GENERAL.—If at any time after 

17 the date of substantial completion the project is 

18 unable to generate sufficient revenues to pay 

19 the scheduled loan repayments of principal and 

20 interest on the direct loan, the Secretary, sub21 ject to subparagraph (B), may allow the obligor 

22 to add unpaid principal and interest to the out23 standing balance of the direct loan. 

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

25 under subparagraph (A) shall— 


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1 ‘‘(i) continue to accrue interest under 

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

3 and 

4 ‘‘(ii) be scheduled to be amortized 

5 over the remaining term of the loan. 

6 ‘‘(4) PREPAYMENTS.— 

7 ‘‘(A) USE OF EXCESS REVENUES.—Any 

8 excess revenues that remain after satisfying 

9 scheduled debt service requirements on the 

10 project obligations and direct loan and all de11 posit requirements under the terms of any trust 

12 agreement, bond resolution, or similar agree13 ment securing project obligations may be ap14 plied annually to prepay the direct loan without 

15 penalty. 

16 ‘‘(B) USE OF PROCEEDS OF REFI17 NANCING.—The direct loan may be prepaid at 

18 any time without penalty from the proceeds of 

19 refinancing from non-Federal funding 

20 sources.’’. 

21 SEC. 7. CREDIT RISK PREMIUMS. 

22 Section 502(f) (45 U.S.C. 822(f)) is amended— 

23 (1) in paragraph (1), by amending the first sen24 tence to read as follows: ‘‘In lieu of or in combina25 tion with appropriations of budget authority to cover 


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1 the costs of direct loans and loan guarantees as re2 quired under section 504(b)(1) of the Federal Credit 

3 Reform Act of 1990 (2 U.S.C. 661c(b)(1)), includ4 ing the cost of a modification thereof, the Secretary 

5 may accept on behalf of an applicant for assistance 

6 under this section a commitment from a non-Federal 

7 source, including a State or local government or 

8 agency thereof, to fund in whole or in part credit 

9 risk premiums and modification costs with respect to 

10 the loan that is the subject of the application or 

11 modification.’’; 

12 (2) in paragraph (2)— 

13 (A) in subparagraph (D), by adding ‘‘and’’ 

14 after the semicolon; 

15 (B) by striking subparagraph (E); and 

16 (C) by redesignating subparagraph (F) as 

17 subparagraph (E); 

18 (3) by striking paragraph (4); 

19 (4) by redesignating paragraph (3) as para20 graph (4); 

21 (5) by inserting after paragraph (2) the fol22 lowing: 

23 ‘‘(3) CREDITWORTHINESS.—An applicant may 

24 propose and the Secretary may accept as a basis for 

25 determining the amount of the credit risk premium 


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1 under paragraph (2) any of the following in lieu of 

2 the value of any tangible asset as collateral under 

3 paragraph (2)(A): 

4 ‘‘(A) A rate covenant, if applicable. 

5 ‘‘(B) Adequate coverage requirements to 

6 ensure repayment, on a non-recourse basis, 

7 from cash flows generated by the project or any 

8 other dedicated revenue source, including— 

9 ‘‘(i) tolls; 

10 ‘‘(ii) user fees; or 

11 ‘‘(iii) payments owing to the obligor 

12 under a public-private partnership. 

13 ‘‘(C) An investment-grade rating on debt 

14 senior to the direct loan or loan guarantee. 

15 ‘‘(D) A rating on the direct loan or loan 

16 guarantee, as applicable.’’; 

17 (6) in paragraph (4), as redesignated, by strik18 ing ‘‘amounts’’ and inserting ‘‘amounts (and in the 

19 case of a modification, before the modification is ex20 ecuted), to the extent appropriations are not avail21 able to the Secretary to meet the costs of direct 

22 loans and loan guarantees, including costs of modi23 fications thereof’’; and 

24 (7) by adding at the end the following: 


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1 ‘‘(5) USE OF OTHER FEDERAL FUNDS.—Not2 withstanding any other provision of law, an appli3 cant may use other Federal funds to pay part or all 

4 of a credit risk premium under this subsection.’’. 

5 SEC. 8. MASTER CREDIT AGREEMENTS. 

6 Section 502 (45 U.S.C. 822) is amended by adding 

7 at the end the following: 

8 ‘‘(k) MASTER CREDIT AGREEMENTS.— 

9 ‘‘(1) IN GENERAL.—Subject to section 502(d) 

10 and paragraph (2) of this subsection, the Secretary 

11 may enter into a master credit agreement if— 

12 ‘‘(A) the common security pledge receives 

13 an investment-grade rating from a rating agen14 cy prior to the Secretary entering into the mas15 ter credit agreement; and 

16 ‘‘(B) all of the conditions for the provision 

17 of direct loans or loan guarantees, as applica18 ble, under this title are satisfied. 

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; 

24 ‘‘(B) identify 1 or more dedicated non25 Federal revenue sources that will secure the reVerDate Sep 11 2014 00:48 Mar 26, 2015 Jkt 049200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S797.IS S797

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1 payment of each applicable direct loan or loan 

2 guarantee; 

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

4 the direct loans or loan guarantees after all re5 quirements have been met for the projects sub6 ject to the master credit agreement; and 

7 ‘‘(D) unless otherwise extended by the Sec8 retary, require that each applicable direct loan 

9 and loan guarantee results in a financial close 

10 and obligation of assistance, or release of the 

11 master credit agreement, not later than 3 years 

12 after the date of entry by the Secretary into the 

13 agreement. 

14 ‘‘(l) NON-FEDERAL SHARE.—The proceeds of a di15 rect loan under this title may be used for any non-Federal 

16 share of project costs required under chapter 244 of title 

17 49, United States Code, if the loan is repayable from non18 Federal funds.’’. 

19 SEC. 9. MISCELLANEOUS PROVISIONS. 

20 (a) PRIORITY PROJECTS.—Section 502(c)(5) (45 

21 U.S.C. 822(c)(5)) is amended by inserting ‘‘or chapter 

22 227 of title 49’’ after ‘‘section 135 of title 23’’. 

23 (b) CONDITIONS OF ASSISTANCE.—Section 502(h) 

24 (45 U.S.C. 822(h)) is amended— 


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1 (1) in paragraph (2), by inserting ‘‘, if applica2 ble’’ after ‘‘project’’; and 

3 (2) by adding at the end the following: 

4 ‘‘(4) For a project described in subsection 

5 (b)(1)(D), the Secretary shall require the applicant 

6 to pay, in addition to the interest required under 

7 subsection (e), a fee or payment in an amount deter8 mined appropriate by the Secretary to provide an eq9 uitable share of revenue to support capital or oper10 ating costs of routes serving the passenger rail sta11 tion or multimodal station where the development is 

12 located.’’. 

13 SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

14 There is authorized to be appropriated for each of 

15 fiscal years 2015 through 2020 $100,000,000, to remain 

16 available until expended, for the cost of direct loans and 

17 loan guarantees under sections 502 through 504 of the 

18 Railroad Revitalization and Regulatory Reform Act of 

19 1976 (45 U.S.C. 801 et seq.). 

20 SEC. 11. SAVINGS PROVISION. 

21 This Act, and the amendments made by this Act, 

22 shall not affect any direct loan (or direct loan obligation) 

23 or an outstanding loan guarantee (or loan guarantee com24 mitment) that was in effect prior to the date of enactment 

25 of this Act. Any such transaction entered into before the 


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1 date of enactment of this Act shall be administered until 

2 completion under its terms as if this Act were not enacted. 

Æ 


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