Invest in American Railroads Act
Bill: H.R.2474 | Sponsor: Rep. Kuster, Ann M. (D-NH)
Policy area: Transportation and Public Works

Summary:
Invest in American Railroads Act
This bill revises and expands the Railroad Rehabilitation and Improvement Financing program of the Department of Transportation (DOT).
Specifically, the bill

To amend the Railroad Revitalization and Regulatory Reform Act of 1976 
 to provide for the Secretary to pay certain credit risk premiums for 
            loan or loan guarantees, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Invest in American Railroads Act''.

SEC. 2. PAYMENT OF CREDIT RISK PREMIUMS FOR LOANS AND LOAN GUARANTEES.

    Section 502(f)(4) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 822(f)(4)) is amended--
            (1) by striking ``Credit risk premiums'' and inserting the 
        following:
                    ``(A) Timing of payment.--Credit risk premiums''; 
                and
            (2) by adding at the end the following:
                    ``(B) Payment of credit risk premiums.--
                            ``(i) In general.--In granting assistance 
                        under this section, the Secretary may pay 
                        credit risk premiums required under paragraph 
                        (3), in whole or in part, with respect to a 
                        loan or loan guarantee.
                            ``(ii) Set-aside.--Of the amounts made 
                        available to carry out this paragraph, at least 
                        $100,000,000 shall be used for passenger rail 
                        projects for a fiscal year. Any amounts not 
                        obligated in a fiscal year shall be made 
                        available for any project receiving assistance 
                        under this section.
                            ``(iii) Authorization of appropriation.--
                        There are authorized to be appropriated 
                        $300,000,000 for each of fiscal years 2022 
                        through 2027 to carry out this subparagraph, to 
                        remain available until expended.''.

SEC. 3. INCREASING FEDERAL SUPPORT FOR FREIGHT RAIL.

    Section 502(a) of the Railroad Revitalization and Regulatory Reform 
Act of 1976 (45 U.S.C. 822(a)) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(7) a private entity with controlling ownership in one or 
        more freight railroads other than Class I carriers.''.

SEC. 4. EXPANDING USES FOR RIFF.

    Section 502(b)(1) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 822(b)(1)) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) acquire, improve, or rehabilitate intermodal 
                or rail equipment or facilities, including track, 
                components of track, civil works such as cuts and 
                fills, stations, tunnels, bridges, yards, buildings, 
                and shops, and costs related to these activities, 
                including pre-construction costs;''; and
            (2) by striking subparagraph (D) and inserting the 
        following:
                    ``(D) reimburse planning, permitting, and design 
                expenses relating to activities described in 
                subparagraph (A) or (C); or''.

SEC. 5. ELIGIBILITY.

    Section 502(f)(3) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 822(f)(3)) is amended--
            (1) by amending clause (ii) of subparagraph (B) to read as 
        follows:
                            ``(ii) user fees, including operating or 
                        tenant charges, facility rents or other fees 
                        paid by transportation service providers or 
                        operators for access to or use of 
                        infrastructure including but not limited to 
                        rail lines, bridges tunnels, yards or stations; 
                        or''; and
            (2) by adding at the end the following:
                    ``(D) A projection of freight or passenger demand 
                for the project based on regionally developed economic 
                forecasts, including projections of any modal diversion 
                resulting from the project.''.

SEC. 6. COLLATERAL AND APPRAISAL STANDARDS.

    Section 502(f) of the Railroad Revitalization and Regulatory Reform 
Act of 1976 (45 U.S.C. 822(f)) is amended--
            (1) in paragraph (3), by striking ``tangible asset'' and 
        inserting ``collateral described in paragraph (5)''; and
            (2) by adding at the end the following:
            ``(5) Collateral.--
                    ``(A) Types of collateral.--An applicant or 
                infrastructure partner may propose tangible and 
                intangible assets as collateral, exclusive of goodwill. 
                The Secretary shall evaluate each such asset and--
                            ``(i) shall accept a net liquidation value 
                        of collateral; and
                            ``(ii) shall consider and may accept--
                                    ``(I) the market value of 
                                collateral; or
                                    ``(II) in the case of a blanket 
                                pledge or assignment of an entire 
                                operating asset or basket of assets as 
                                collateral, the net liquidation value, 
                                the market value of assets, or, the 
                                market value of the going concern, 
                                considering--
                                            ``(aa) inclusion in the 
                                        pledge of all the assets 
                                        necessary for independent 
                                        operational utility of the 
                                        collateral, including tangible 
                                        assets such as real property, 
                                        track and structure, equipment 
                                        and rolling stock, stations, 
                                        systems and maintenance 
                                        facilities and intangible 
                                        assets such as long-term 
                                        shipping agreements, easements, 
                                        leases and access rights such 
                                        as for trackage and haulage;
                                            ``(bb) interchange 
                                        commitments; and
                                            ``(cc) the value of the 
                                        asset as determined through the 
                                        cost or market approaches, or 
                                        the market value of the going 
                                        concern, with the latter 
                                        considering discounted cash 
                                        flows for a period not to 
                                        exceed the term of the direct 
                                        loan or loan guarantee.
                    ``(B) Appraisal standards.--In evaluation of 
                appraisals of collateral under subparagraph (A), the 
                Secretary shall consider--
                            ``(i) adherence to the substance and 
                        principles of the Uniform Standards of 
                        Professional Appraisal Practice, as developed 
                        by the Appraisal Standards Board of the 
                        Appraisal Foundation;
                            ``(ii) performance of the appraisal by 
                        licensed or certified appraisers as may be 
                        required by the State of jurisdiction for the 
                        type of asset being appraised; and
                            ``(iii) the qualifications of the 
                        appraisers to value the type of collateral 
                        offered.''.

SEC. 7. REPAYMENT OF RRIF LOANS.

    Section 502(g)(1) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 822(g)(1)) is amended--
            (1) in subparagraph (A) by striking ``35'' and inserting 
        ``50''; and
            (2) by amending subparagraph (B) to read as follows:
                    ``(B) the estimated useful life of the rail 
                equipment or facilities to be acquired, rehabilitated, 
                improved, developed, or established, including civil 
                works such as cuts and fills, bridges, tunnels, yards, 
                buildings and other long-lived assets.''.

SEC. 8. LEVERAGING EXISTING FEDERAL INFRASTRUCTURE PROGRAMS.

    Section 502 of the Railroad Revitalization and Regulatory Reform 
Act of 1976 (45 U.S.C. 822) is amended by adding at the end the 
following:
    ``(n) Non-Federal Share.--The proceeds of a secured loan under this 
title, if such loan is repayable from non-Federal funds, shall not be 
considered Federal funds. Such loan funds shall be accepted for payment 
of the non-Federal share of project costs under law, including for any 
projects receiving funding under title 23 or 49 of the United States 
Code.''.
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