Senate File 502 - Introduced SENATE FILE 502 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO SF 273) A BILL FOR An Act relating to the railroad revolving loan and grant 1 fund by making moneys available for certain projects and 2 prioritizing grants and loans for certain purposes. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1910SV (2) 90 th/ns
S.F. 502 Section 1. Section 327H.20A, subsection 1, paragraph a, 1 Code 2023, is amended to read as follows: 2 a. Grants or loans to provide assistance for the 3 restoration, conservation, improvement, and construction of 4 railroad main lines, branch lines, switching yards, sidings, 5 rail connections, intermodal yards, transload facilities, 6 railroad bridges, highway grade separations, and other 7 railroad-related improvements. 8 Sec. 2. Section 327H.20A, subsection 2, Code 2023, is 9 amended to read as follows: 10 2. The department shall administer a program for the 11 granting and administration of to make loans and award grants 12 under this section . Beginning January 1, 2024, the department 13 shall prioritize granting and loaning moneys to railroad 14 corporations for the purposes described in subsection 1, 15 paragraph “a” , and any moneys not so granted or awarded shall 16 then be made available for economic development projects 17 described in subsection 1, paragraph “b” . The department may 18 establish a limit on the amount that may be awarded as a grant 19 for any given project in order to maximize the use of the 20 moneys in the fund. The department may enter into agreements 21 with railroad corporations, the United States government, 22 cities, counties, and other persons for carrying out the 23 purposes of this section . 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 The department of transportation (DOT) controls a railroad 28 revolving loan and grant fund. Moneys in the fund are used 29 to provide assistance for the restoration, conservation, 30 improvement, and construction of railroad main lines, branch 31 lines, switching yards, sidings, rail connections, intermodal 32 yards, highway grade separations, and other railroad-related 33 improvements, and for rail economic development projects that 34 improve rail facilities, including the construction of branch 35 -1- LSB 1910SV (2) 90 th/ns 1/ 2
S.F. 502 lines, sidings, rail connections, intermodal yards, and other 1 rail-related improvements that spur economic development and 2 job growth. The DOT administers a program for the granting 3 and administration of applicable loans and grants, and may 4 establish a limit on the amount that may be awarded for any 5 given project in order to maximize the use of the moneys in the 6 fund. 7 This bill adds transload facilities and railroad bridges 8 to the list of projects for which a grant may be awarded or a 9 loan may be made. The bill requires the DOT to prioritize, 10 beginning January 1, 2024, granting and loaning moneys to 11 railroad corporations for the restoration, conservation, 12 improvement, and construction projects described in Code 13 section 327H.20A(1)(a) before providing moneys for rail 14 economic development projects described in Code section 15 327H.20A(1)(b). 16 -2- LSB 1910SV (2) 90 th/ns 2/ 2