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(3) facilitate the use of environmentally friendly 
options, such as public transportation, walking, and 
bicycling. 
Subtitle C—Railroad and Pipeline 
Transportation 
PART 1—RAILROADS 
SEC. 8301. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT 
PILOT PROGRAM. 
(a) IN GENERAL.—The Secretary of Transportation, 
in coordination with the Administrator of the Environ-
mental Protection Agency, shall establish and carry out 
a pilot program for making grants to railroad carriers (as 
defined in section 20102 of title 49, United States Code) 
and State and local governments— 
(1) for assistance in purchasing hybrid loco-
motives, including hybrid switch locomotives; and 
(2) to demonstrate the extent to which such lo-
comotives increase fuel economy, reduce emissions, 
and lower costs of operation. 
(b) LIMITATION.—Notwithstanding subsection (a), 
no grant under this section may be used to fund the costs 
of emissions reductions that are mandated under Federal, 
State, or local law. 
(c) GRANT CRITERIA.—In selecting applicants for 
grants under this section, the Secretary shall consider—
494 
(1) the level of energy efficiency that would be 
achieved by the proposed project; 
(2) the extent to which the proposed project 
would assist in commercial deployment of hybrid lo-
comotive technologies; 
(3) the extent to which the proposed project 
complements other private or governmental partner-
ship efforts to improve air quality or fuel efficiency 
in a particular area; and 
(4) the extent to which the applicant dem-
onstrates innovative strategies and a financial com-
mitment to increasing energy efficiency and reducing 
greenhouse gas emissions of its railroad operations. 
(d) COMPETITIVE GRANT SELECTION PROCESS.— 
(1) APPLICATIONS.—A railroad carrier or State 
or local government seeking a grant under this sec-
tion shall submit for approval by the Secretary an 
application for the grant under this section con-
taining such information as the Secretary may re-
quire to receive a grant under this section. 
(2) COMPETITIVE SELECTION.—The Secretary 
shall conduct a national solicitation for applications 
for grants under this section and shall select grant-
ees on a competitive basis.
495 
(e) FEDERAL SHARE.—The Federal share of the cost 
of a project under this section shall not exceed 90 percent 
of the project cost. 
(f) REPORT.—Not later than 3 years after the date 
of enactment of this Act, the Secretary shall submit to 
Congress a report on the results of the pilot program car-
ried out under this section. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized 
to 
be 
appropriated 
to 
the 
Secretary 
$10,000,000 for each of the fiscal years 2008 through 
2011 to carry out this section. Such funds shall remain 
available until expended. 
SEC. 8302. CAPITAL GRANTS FOR RAILROAD TRACK. 
(a) AMENDMENT.—Chapter 223 of title 49, United 
States Code, is amended to read as follows: 
‘‘CHAPTER 223—CAPITAL GRANTS FOR 
RAILROAD TRACK 
‘‘Sec. 
‘‘22301. Capital grants for railroad track. 
‘‘§ 22301. Capital grants for railroad track 
‘‘(a) ESTABLISHMENT OF PROGRAM.— 
‘‘(1) 
ESTABLISHMENT.—The 
Secretary 
of 
Transportation shall establish a program of capital 
grants for the rehabilitation, preservation, or im-
provement of railroad track (including roadbed, 
bridges, and related track structures) of class II and
496 
class III railroads. Such grants shall be for rehabili-
tating, preserving, or improving track used primarily 
for freight transportation to a standard ensuring 
that the track can be operated safely and efficiently, 
including grants for rehabilitating, preserving, or im-
proving track to handle 286,000 pound railcars. 
Grants may be provided under this chapter— 
‘‘(A) directly to the class II or class III 
railroad; or 
‘‘(B) with the concurrence of the class II 
or class III railroad, to a State or local govern-
ment. 
‘‘(2) STATE COOPERATION.—Class II and class 
III railroad applicants for a grant under this chap-
ter are encouraged to utilize the expertise and assist-
ance of State transportation agencies in applying for 
and administering such grants. State transportation 
agencies are encouraged to provide such expertise 
and assistance to such railroads. 
‘‘(3) INTERIM REGULATIONS.—Not later than 
December 31, 2007, the Secretary shall issue tem-
porary regulations to implement the program under 
this section. Subchapter II of chapter 5 of title 5 
does not apply to a temporary regulation issued
497 
under this paragraph or to an amendment to such 
a temporary regulation. 
‘‘(4) FINAL REGULATIONS.—Not later than Oc-
tober 1, 2008, the Secretary shall issue final regula-
tions to implement the program under this section. 
‘‘(b) MAXIMUM FEDERAL SHARE.—The maximum 
Federal share for carrying out a project under this section 
shall be 80 percent of the project cost. The non-Federal 
share may be provided by any non-Federal source in cash, 
equipment, or supplies. Other in-kind contributions may 
be approved by the Secretary on a case-by-case basis con-
sistent with this chapter. 
‘‘(c) PROJECT ELIGIBILITY.—For a project to be eli-
gible for assistance under this section the track must have 
been operated or owned by a class II or class III railroad 
as of the date of the enactment of this chapter. 
‘‘(d) USE OF FUNDS.—Grants provided under this 
section shall be used to implement track capital projects 
as soon as possible. In no event shall grant funds be con-
tractually obligated for a project later than the end of the 
third Federal fiscal year following the year in which the 
grant was awarded. Any funds not so obligated by the end 
of such fiscal year shall be returned to the Secretary for 
reallocation.
498 
‘‘(e) EMPLOYEE PROTECTION.—The Secretary shall 
require as a condition of any grant made under this sec-
tion that the recipient railroad provide a fair arrangement 
at least as protective of the interests of employees who 
are affected by the project to be funded with the grant 
as the terms imposed under section 11326(a), as in effect 
on the date of the enactment of this chapter. 
‘‘(f) LABOR STANDARDS.— 
‘‘(1) PREVAILING WAGES.—The Secretary shall 
ensure that laborers and mechanics employed by 
contractors and subcontractors in construction work 
financed by a grant made under this section will be 
paid wages not less than those prevailing on similar 
construction in the locality, as determined by the 
Secretary of Labor under subchapter IV of chapter 
31 of title 40 (commonly known as the ‘Davis-Bacon 
Act’). The Secretary shall make a grant under this 
section only after being assured that required labor 
standards will be maintained on the construction 
work. 
‘‘(2) WAGE RATES.—Wage rates in a collective 
bargaining agreement negotiated under the Railway 
Labor Act (45 U.S.C. 151 et seq.) are deemed for 
purposes of this subsection to comply with the sub-
chapter IV of chapter 31 of title 40.