I 
109TH CONGRESS 
1ST SESSION H. R. 3264 
To authorize the Secretary of Transportation to establish a grant program 
for the rehabilitation, preservation, or improvement of railroad track. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 13, 2005 
Mr. YOUNG of Alaska (for himself, Mr. OBERSTAR, Mr. LATOURETTE, and 
Ms. CORRINE BROWN of Florida) introduced the following bill; which was 
referred to the Committee on Transportation and Infrastructure 
A BILL 
To authorize the Secretary of Transportation to establish 
a grant program for the rehabilitation, preservation, or 
improvement of railroad track. 
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 ‘‘Railroad Track Mod-
ernization Act of 2005’’. 
SEC. 2. 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 
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 rail cars. 
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, 2005, 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 
under this paragraph or to an amendment to such 
a temporary regulation. 
‘‘(4) FINAL REGULATIONS.—Not later than Oc-
tober 1, 2006, 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 the Railroad Track 
Modernization Act of 2005. 
‘‘(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. 
‘‘(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 the Railroad Track Mod-
ernization Act of 2005. 
‘‘(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 the Act of March 3, 1931 
(known as the Davis-Bacon Act; 40 U.S.C. 276a et 
seq.). 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 Act 
of March 3, 1931 (known as the Davis-Bacon Act; 
40 U.S.C. 276a et seq.). 
‘‘(g) STUDY.—The Secretary shall conduct a study 
of the projects carried out with grant assistance under this 
section to determine the public interest benefits associated 
with the light density railroad networks in the States and 
their contribution to a multimodal transportation system. 
Not later than March 31, 2007, the Secretary shall report 
to Congress any recommendations the Secretary considers 
appropriate regarding the eligibility of light density rail 
networks for Federal infrastructure financing. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of 
Transportation $350,000,000 for each of the fiscal years 
2006 through 2008 for carrying out this section.’’.
(b) CONFORMING AMENDMENT.—The item relating 
to chapter 223 in the table of chapters of subtitle V of 
title 49, United States Code, is amended to read as fol-
lows: 
‘‘223. CAPITAL GRANTS FOR RAILROAD TRACK ..............22301’’. 
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