440 
(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— 
(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-
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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. 
(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: 
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‘‘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 
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-
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