Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Emergency Rural and Small Railroad
Preservation Act''.

SEC. 2. FINDINGS.

Congress finds that--
(1) a well-developed system of transportation and
infrastructure is critical to the economic well being, health,
and welfare of the United States;
(2) a national emergency exists that threatens the survival
of essential rail transportation infrastructure, especially
infrastructure serving rural areas of the country;
(3) a failure to address the growing crisis will result in
rail line abandonments which will add to highway costs and
congestion, thus increasing highway traffic that will lead to a
degradation of safety, increase environmental damage, and
further economically disadvantage rural areas of the country;
(4) traditional funding techniques are unable to keep pace
with the rail infrastructure investment needs in rural areas,
including the requirement to upgrade track and bridges, to
ensure safety, and to accommodate 286,000 pound freight cars;
(5) the requirement that railroads pay a 4.3-cent diesel
fuel excise tax into the general fund of the Treasury, while
similar taxes on competing modes of transportation improve the
infrastructures for those competing modes, is inequitable; and
(6) a temporary Federal program utilizing the proceeds of
the 4.3-cent railroad fuel tax to address the national
emergency and preserve freight rail service is in the national
interest as long as the 4.3-cent diesel tax on railroads is in
existence.

SEC. 3. ESTABLISHMENT OF PROGRAM.

(a) Establishment.--The Secretary of Transportation shall establish
a program to preserve, rehabilitate, and improve rail tracks and
bridges of Class II and III freight railroads to ensure that such
railroads can be operated safely and can accommodate 286,000 pound rail
cars.
(b) Allocation of Funds.--
(1) Eligible recipients.--The Secretary shall allocate
funds made available to carry out this section to entities
making applications to the Secretary for such funds, including
State and local governments, government-sponsored authorities
and corporations, and Class II and III railroads.
(2) Criteria.--In allocating funds made available to carry
out this section, the Secretary shall give priority to
applications that--
(A) propose the rehabilitation or improvement of
track and bridges to a condition sufficient to
accommodate 286,000 pound rail cars at speeds of at
least 25 mph; or
(B) are designated by a State Department of
Transportation as--
(i) preserving an essential link in the
State's transportation network;
(ii) providing a cost efficient alternative
to a highway connection or highway project; or
(iii) enhancing safety.
(3) Equitable distribution.--In allocating funds to carry
out this section, the Secretary shall ensure the equitable
distribution of funds to a diversity of geographic regions.
(c) Use of Funds.--
(1) Types of projects.--Funds available under this section
may be used only for capital rehabilitation and improvement
projects to Class II and III rail freight lines to--
(A) upgrade track and bridges to accommodate
286,000 pound freight cars; or
(B) promote essential service and enhance safety.
(2) Types of funding.--The Secretary may make direct grants
for the purposes stated in paragraph (1), and may make grants
to supplement direct loans and loan guarantees under title V of
the Railroad Revitalization and Regulatory Reform Act of 1976
(45 U.S.C. 821 et seq.) to provide for such benefits as a
holiday on early payments, lowering rates of interest, or
paying credit risk premiums or premium risk subsidy amounts in
whole or in part.
(d) Railroad Trust Fund.--
(1) In general.--Subchapter A of chapter 98 of the Internal
Revenue Code of 1986 (relating to trust fund code) is amended
by adding at the end the following section:

''SEC. 9511. RAILROAD TRUST FUND.

''(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the 'Railroad Trust
Fund', consisting of any amount appropriated or credited to the Trust
Fund as provided in this section or section 9602(b).
''(b) Transfers to Trust Fund.--There are hereby appropriated to
the Railroad Trust Fund amounts equivalent to the taxes received in the
Treasury under clause (ii) of section 4041(a)(1)(C) (relating to rate
of tax on trains).
''(c) Expenditures.--Amounts in the Railroad Trust Fund shall be
available, as provided by appropriation Acts, for making expenditures
under the Emergency Rural and Small Railroad Preservation Act, as in
effect on the date of the enactment of this section.''.
(2) Clerical amendment.--The table of sections for
subchapter A of chapter 98 of such Code is amended by adding at
the end the following new item:

''Sec. 9511. Railroad Trust Fund.''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts received after the date of the enactment
of this Act.
(e) Administration.--The Secretary shall give priority to projects
that are economically viable, and shall require a non-Federal matching
contribution of at least 10 percent. The Secretary shall make grants
available no later than 90 days following the availability of
appropriations for each fiscal year.
(f) Study.--Section 22301(d) of title 49, United States Code, is
amended by inserting '', and of projects carried out with assistance
under the Emergency Rural and Small Railroad Preservation Act,'' after
''under this section''.
Student:
Amends the Internal Revenue Code to establish the Railroad Trust Fund consisting of amounts derived from taxes on trains to be used to carry out this Act.