the period of the estimated economic life of the relocated 
rail line exceed the costs of the project for that period, 
as determined by the Secretary considering the following 
factors: 
‘‘(1) The effects of the rail line and the rail 
traffic on motor vehicle and pedestrian traffic, safe-
ty, and area commerce if the rail line were not so 
relocated. 
‘‘(2) The effects of the rail line, relocated as 
proposed, on motor vehicle and pedestrian traffic, 
safety, and area commerce. 
‘‘(3) The effects of the rail line, relocated as 
proposed, on the freight and passenger rail oper-
ations on the rail line. 
‘‘(d) APPROVAL OF GRANT APPLICATIONS.—
‘‘(1) ADDITIONAL
FACTORS.—In addition to 
considering the relationship of benefits to costs in 
determining whether to award a grant to an eligible 
State under this section, the Secretary shall consider 
the following factors: 
‘‘(A) The capability of the State to fund 
the rail line relocation project without Federal 
grant funding.
‘‘(B) The requirement and limitation relat-
ing to allocation of grant funds provided in sub-
section (e). 
‘‘(C) Equitable treatment of the various re-
gions of the United States. 
‘‘(2) EXISTING PROJECTS.—The Secretary may 
award a grant under this section to a State to pro-
vide reimbursement for the cost of work carried out 
after January 1, 2002, and before the date of enact-
ment of Rail Line Relocation Act of 2003 for a 
project for relocation of a rail yard if—
‘‘(A) the project conforms with the require-
ments of this section, including requirements 
for State participation under subsection (g); 
and 
‘‘(B) the Secretary determines that the 
cost of the project has caused a substantial fi-
nancial hardship for non-Federal interests in-
volved in the project. 
‘‘(e) ALLOCATION REQUIREMENTS.—
‘‘(1) 
GRANTS
NOT
GREATER
THAN 
$20,000,000.—At least 50 percent of all grant funds 
awarded under this section out of funds appro-
priated for a fiscal year shall be provided as grant 
awards of not more than $20,000,000 each.
‘‘(2) LIMITATION
PER
PROJECT.—Not more 
than 25 percent of the total amount available for 
carrying out this section for a fiscal year may be 
provided for any one project in that fiscal year. 
‘‘(f) FEDERAL SHARE.—The total amount of a grant 
awarded under this section for a rail line relocation project 
shall be 80 percent of the shared costs of the project, as 
determined under subsection (g)(4). 
‘‘(g) STATE SHARE.—
‘‘(1) PERCENTAGE.—A State shall pay 20 per-
cent of the shared costs of a project that is funded 
in part by a grant awarded under this section. 
‘‘(2) FORMS
OF
CONTRIBUTIONS.—The share 
required by paragraph (1) may be paid in cash or 
in kind. 
‘‘(3) IN-KIND
CONTRIBUTIONS.—The in-kind 
contributions that are permitted to be counted under 
paragraph (2) for a project for a State are as fol-
lows: 
‘‘(A) A contribution of real property or 
tangible personal property (whether provided by 
the State or a person for the State). 
‘‘(B) A contribution of the services of em-
ployees of the State, calculated on the basis of 
costs incurred by the State for the pay and ben-
efits of the employees, but excluding overhead 
and general administrative costs. 
‘‘(C) A payment of any costs that were in-
curred for the project before the filing of an ap-
plication for a grant for the project under this 
section, and any in-kind contributions that were 
made for the project before the filing of the ap-
plication, if and to the extent that the costs 
were incurred or in-kind contributions were 
made, as the case may be, to comply with a 
provision of a statute required to be satisfied in 
order to carry out the project. 
‘‘(4) COSTS NOT SHARED.—
‘‘(A) IN GENERAL.—For the purposes of 
subsection (f) and this subsection, the shared 
costs of a project in a municipality do not in-
clude any cost that is defrayed with any funds 
or in-kind contribution that a source other than 
the municipality makes available for the use of 
the municipality without imposing at least one 
of the following conditions: 
‘‘(i) The condition that the munici-
pality use the funds or contribution only 
for the project.
‘‘(ii) The condition that the avail-
ability of the funds or contribution to the 
municipality is contingent on the execution 
of the project. 
‘‘(B) DETERMINATIONS
OF
THE
SEC-
RETARY.—The Secretary shall determine the 
amount of the costs, if any, that are not shared 
costs under this paragraph and the total 
amount of the shared costs. A determination of 
the Secretary shall be final. 
‘‘(h) MULTISTATE
AGREEMENTS
TO
COMBINE 
AMOUNTS.—Two or more States (not including political 
subdivisions of States) may, pursuant to an agreement en-
tered into by the States, combine any part of the amounts 
provided through grants for a project under this section 
if—
‘‘(1) the project will benefit each of the States 
entering into the agreement; and 
‘‘(2) the agreement is not a violation of a law 
of any such State. 
‘‘(i) REGULATIONS.—The Secretary shall prescribe 
regulations for carrying out this section. 
‘‘(j) STATE DEFINED.—In this section, the term 
‘State’ includes, except as otherwise specifically provided, 
a political subdivision of a State.
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for use 
in carrying out this section $300,000,000 for each of the 
fiscal years 2004 through 2008.’’.
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 3 of title 23, United States Code, is amended by 
inserting after the item relating to section 306 the fol-
lowing:
‘‘307. Capital grants for rail line relocation projects.’’.
(c) REGULATIONS.—
(1) INTERIM
REGULATIONS.—Not later than 
October 1, 2003, the Secretary of Transportation 
shall issue temporary regulations to implement the 
grant program under section 307 of title 23, United 
States Code. Subchapter II of chapter 5 of title 5, 
United States Code, shall not apply to the issuance 
of a temporary regulation under this subsection or 
of any amendment of such a temporary regulation. 
(2) FINAL REGULATIONS.—Not later than April 
1, 2004, the Secretary shall issue final regulations 
implementing the program. 
(3) CRITERIA.—In developing regulations under 
paragraph (1), and in any final regulations, the Sec-
retary shall establish criteria that ensure that all
grants under section 307 of title 23, United States 
Code, are awarded on a competitive basis.
Æ