I 
111TH CONGRESS 
1ST SESSION H. R. 2530 
To authorize the Secretary of Transportation to make capital grants for 
certain freight rail economic development projects. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 20, 2009 
Mr. NADLER of New York introduced the following bill; which was referred 
to the Committee on Transportation and Infrastructure 
A BILL 
To authorize the Secretary of Transportation to make capital 
grants for certain freight rail economic development projects. 
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 ‘‘Freight Rail Economic 
Development Act of 2009’’. 
SEC. 2. CAPITAL GRANTS FOR FREIGHT RAIL ECONOMIC 
DEVELOPMENT PROJECTS. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary 
of Transportation shall carry out a program for making 
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capital grants to construct freight rail switches and sid-
ings to encourage economic development. 
(b) PROVISION OF GRANTS AND GRANT CRITERIA.— 
(1) ELIGIBILITY.—Grants shall be made under 
this section— 
(A) directly to a class I, class II or class 
II railroad; or 
(B) with the conconcurrence of the railroad 
to a State or local government. 
(2) CONSIDERATIONS.—The Secretary shall— 
(A) conduct a national solicitation for ap-
plications; 
(B) award grants on a competitive basis; 
and 
(C) establish criteria for selecting among 
projects that meet the criteria specified in para-
graph (3). 
(3) GRANT CRITERIA.—The Secretary, in select-
ing the recipients of grants to be provided under this 
subsection, shall select projects that— 
(A) construct or rehabilitate freight rail 
sidings; 
(B) construct or rehabilitate freight rail 
switches; 
(C) promote economic development; and 
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(D) have a public benefit. 
(c) STATE COOPERATION.—Railroad applicants for a 
grant under this section are encouraged to utilize the ex-
pertise and assistance of State transportation agencies in 
applying for and administering such grants. State trans-
portation agencies are encouraged to provide such exper-
tise and assistance to such railroads. 
(d) 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. 
(e) WAGE RATE REQUIREMENTS.—All laborers and 
mechanics employed by contractors or subcontractors in 
the construction, alteration, or repair, including painting 
and decorating of projects, buildings, and works, with re-
spect to any project that receives assistance under this 
section shall be paid wages at rates not less than those 
prevailing on similar construction in the locality as deter-
mined by the Secretary of Labor in accordance with sub-
chapter IV of chapter 31 of part A of subtitle II of title 
40, United States Code (commonly referred to as the 
‘‘Davis-Bacon Act’’). The Secretary of Labor shall have, 
with respect to such labor standards, the authority and 
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