I 
116TH CONGRESS 
2D SESSION 
H. R. 5947 
To amend the Railroad Revitalization and Regulatory Reform Act of 1976 
to provide for the Secretary to pay certain credit risk premiums for 
loan or loan guarantees, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 21, 2020 
Ms. KUSTER of New Hampshire (for herself, Mr. SMUCKER, and Mr. PAPPAS) 
introduced the following bill; which was referred to the Committee on 
Transportation and Infrastructure 
A BILL 
To amend the Railroad Revitalization and Regulatory Reform 
Act of 1976 to provide for the Secretary to pay certain 
credit risk premiums for loan or loan guarantees, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Invest in American 
Railroads Act’’. 
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SEC. 2. PAYMENT OF CREDIT RISK PREMIUMS FOR LOANS 
AND LOAN GUARANTEES. 
Section 502(f)(4) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822(f)(4)) is 
amended— 
(1) by striking ‘‘Credit risk premiums’’ and in-
serting the following: 
‘‘(A) TIMING
OF
PAYMENT.—Credit risk 
premiums’’; and 
(2) by adding at the end the following: 
‘‘(B) PAYMENT
OF
CREDIT
RISK
PRE-
MIUMS.— 
‘‘(i) IN GENERAL.—In granting assist-
ance under this section, the Secretary may 
pay credit risk premiums required under 
paragraph (3), in whole or in part, with re-
spect to a loan or loan guarantee. 
‘‘(ii) SET-ASIDE.—Of the amounts 
made available to carry out this paragraph, 
at least $100,000,000 shall be used for 
passenger rail projects for a fiscal year. 
Any amounts not obligated in a fiscal year 
shall be made available for any project re-
ceiving assistance under this section. 
‘‘(iii) AUTHORIZATION OF APPROPRIA-
TION.—There are authorized to be appro-
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priated $300,000,000 for each of fiscal 
years 2021 through 2026 to carry out this 
subparagraph, to remain available until ex-
pended.’’. 
SEC. 3. INCREASING FEDERAL SUPPORT FOR FREIGHT 
RAIL. 
Section 502(a) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822(a)) is 
amended— 
(1) in paragraph (5), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (6), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(7) a private entity with controlling ownership 
in one or more freight railroads other than Class I 
carriers.’’. 
SEC. 4. EXPANDING USES FOR RIFF. 
Section 502(b)(1) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822(b)(1)) is 
amended— 
(1) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) acquire, improve, or rehabilitate 
intermodal or rail equipment or facilities, in-
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cluding track, components of track, civil works 
such as cuts and fills, stations, tunnels, bridges, 
yards, buildings, and shops, and costs related to 
these 
activities, 
including 
pre-construction 
costs;’’; and 
(2) by striking subparagraph (D) and inserting 
the following: 
‘‘(D) reimburse planning, permitting, and 
design expenses relating to activities described 
in subparagraph (A) or (C); or’’. 
SEC. 5. ELIGIBILITY. 
Section 502(f)(3) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822(f)(3)) is 
amended— 
(1) by amending clause (ii) of subparagraph 
(B) to read as follows: 
‘‘(ii) user fees, including operating or 
tenant charges, facility rents or other fees 
paid by transportation service providers or 
operators for access to or use of infrastruc-
ture including but not limited to rail lines, 
bridges tunnels, yards or stations; or’’; and 
(2) by adding at the end the following: 
‘‘(D) A projection of freight or passenger 
demand for the project based on regionally de-
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veloped economic forecasts, including projec-
tions of any modal diversion resulting from the 
project.’’. 
SEC. 6. COLLATERAL AND APPRAISAL STANDARDS. 
Section 502(f) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822(f)) is 
amended— 
(1) in paragraph (3), by striking ‘‘tangible 
asset’’ and inserting ‘‘collateral described in para-
graph (5)’’; and 
(2) by adding at the end the following: 
‘‘(5) COLLATERAL.— 
‘‘(A) TYPES OF COLLATERAL.—An appli-
cant or infrastructure partner may propose tan-
gible and intangible assets as collateral, exclu-
sive of goodwill. The Secretary shall evaluate 
each such asset and— 
‘‘(i) shall accept a net liquidation 
value of collateral; and 
‘‘(ii) shall consider and may accept— 
‘‘(I) the market value of collat-
eral; or 
‘‘(II) in the case of a blanket 
pledge or assignment of an entire op-
erating asset or basket of assets as 
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collateral, the net liquidation value, 
the market value of assets, or, the 
market value of the going concern, 
considering— 
‘‘(aa) inclusion in the pledge 
of all the assets necessary for 
independent operational utility of 
the collateral, including tangible 
assets such as real property, 
track and structure, equipment 
and rolling stock, stations, sys-
tems and maintenance facilities 
and intangible assets such as 
long-term shipping agreements, 
easements, leases and access 
rights such as for trackage and 
haulage; 
‘‘(bb) interchange commit-
ments; and 
‘‘(cc) the value of the asset 
as determined through the cost 
or market approaches, or the 
market value of the going con-
cern, with the latter considering 
discounted cash flows for a pe-
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riod not to exceed the term of the 
direct loan or loan guarantee. 
‘‘(B) APPRAISAL STANDARDS.—In evalua-
tion of appraisals of collateral under subpara-
graph (A), the Secretary shall consider— 
‘‘(i) adherence to the substance and 
principles of the Uniform Standards of 
Professional Appraisal Practice, as devel-
oped by the Appraisal Standards Board of 
the Appraisal Foundation; 
‘‘(ii) performance of the appraisal by 
licensed or certified appraisers as may be 
required by the State of jurisdiction for the 
type of asset being appraised; and 
‘‘(iii) the qualifications of the apprais-
ers to value the type of collateral offered.’’. 
SEC. 7. REPAYMENT OF RRIF LOANS. 
Section 502(g)(1) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822(g)(1)) is 
amended— 
(1) in subparagraph (A) by striking ‘‘35’’ and 
inserting ‘‘50’’; and 
(2) by amending subparagraph (B) to read as 
follows: 
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‘‘(B) the estimated useful life of the rail 
equipment or facilities to be acquired, rehabili-
tated, improved, developed, or established, in-
cluding civil works such as cuts and fills, 
bridges, tunnels, yards, buildings and other 
long-lived assets.’’. 
SEC. 8. LEVERAGING EXISTING FEDERAL INFRASTRUC-
TURE PROGRAMS. 
Section 502 of the Railroad Revitalization and Regu-
latory Reform Act of 1976 (45 U.S.C. 822) is amended 
by adding at the end the following: 
‘‘(n) NON-FEDERAL SHARE.—The proceeds of a se-
cured loan under this title, if such loan is repayable from 
non-Federal funds, shall not be considered Federal funds. 
Such loan funds shall be accepted for payment of the non- 
Federal share of project costs under law, including for any 
projects receiving funding under title 23 or 49 of the 
United States Code.’’. 
Æ 
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