SF 2112 (LSB 1910SZ (2) 90)

SENATE FILE 2112

BY  COMMITTEE ON TRANSPORTATION

(SUCCESSOR TO SF 502)
(SUCCESSOR TO SF 273)

A BILL FOR

An Act relating to the railroad revolving loan and grant fund by making moneys available for certain projects and prioritizing grants and loans for certain purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 327H.20A, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  Grants or loans to provide assistance for the restoration, conservation, improvement, and construction of railroad main lines, branch lines, switching yards, sidings, rail connections, intermodal yards, transload facilities, railroad bridges, highway grade separations, and other railroad-related improvements.
    Sec. 2.  Section 327H.20A, subsection 2, Code 2024, is amended to read as follows:
   2.  The department shall administer a program for the granting and administration of to make loans and award grants under this section.  Beginning January 1, 2025, the department shall prioritize granting and loaning moneys to railroad corporations for the purposes described in subsection 1, paragraph “a”, and any moneys not so granted or awarded shall then be made available for economic development projects described in subsection 1, paragraph “b”. The department may establish a limit on the amount that may be awarded as a grant for any given project in order to maximize the use of the moneys in the fund. The department may enter into agreements with railroad corporations, the United States government, cities, counties, and other persons for carrying out the purposes of this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   The department of transportation (DOT) controls a railroad revolving loan and grant fund. Moneys in the fund are used to provide assistance for the restoration, conservation, improvement, and construction of railroad main lines, branch lines, switching yards, sidings, rail connections, intermodal yards, highway grade separations, and other railroad-related improvements, and for rail economic development projects that improve rail facilities, including the construction of branch lines, sidings, rail connections, intermodal yards, and other rail-related improvements that spur economic development and job growth. The DOT administers a program for the granting and administration of applicable loans and grants, and may establish a limit on the amount that may be awarded for any given project in order to maximize the use of the moneys in the fund.
   This bill adds transload facilities and railroad bridges to the list of projects for which a grant may be awarded or a loan may be made. The bill requires the DOT to prioritize, beginning January 1, 2025, granting and loaning moneys to railroad corporations for the restoration, conservation, improvement, and construction projects described in Code section 327H.20A(1)(a) before providing moneys for rail economic development projects described in Code section 327H.20A(1)(b).