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Senate File 273 - IntroducedA Bill ForAn Act 1relating to the railroad revolving loan and grant fund
2by making moneys available to certain railroads operating
3exclusively in Iowa.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 327H.20A, subsection 2, Code 2023, is
2amended to read as follows:
32. The department shall administer a program for the
4granting and administration of loans and grants under this
5section. The department may establish a limit on the amount
6that may be awarded as a grant for any given project in order
7to maximize the use of the moneys in the fund. The department
8may enter into agreements with railroad corporations, the
9United States government, cities, counties, and other persons
10for carrying out the purposes of this section. However,
11the department shall not grant any loans to a class I or
12class II railroad carrier, as defined by the federal surface
13transportation board, or any class III railroad carrier, as
14defined by the federal surface transportation board, that
15operates trains beyond the borders of this state.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19The department of transportation (DOT) controls a railroad
20revolving loan and grant fund. Moneys in the fund are used
21to provide assistance for the restoration, conservation,
22improvement, and construction of railroad main lines, branch
23lines, switching yards, sidings, rail connections, intermodal
24yards, highway grade separations, and other railroad-related
25improvements, and for rail economic development projects that
26improve rail facilities, including the construction of branch
27lines, sidings, rail connections, intermodal yards, and other
28rail-related improvements that spur economic development and
29job growth. The DOT administers a program for the granting
30and administration of applicable loans and grants, and may
31establish a limit on the amount that may be awarded for any
32given project in order to maximize the use of the moneys in the
33fund.
34This bill prohibits the DOT from granting any loans to a
35class I or class II railroad carrier, as defined by the federal
-1-1surface transportation board (STB), or any class III railroad
2carrier that operates trains beyond the borders of this state.
3The STB is an independent federal agency that is charged
4with the economic regulation of various modes of surface
5transportation including primarily freight rail. The STB has
6defined three classes of railroad carriers, designated as
7class I, class II, and class III, respectively, according to
8annual revenue criteria. The STB thresholds, last adjusted
9for inflation in 2019, for a class I carrier includes a
10carrier earning revenue greater than $504,803,294. A class II
11carrier is a carrier earning revenue between $40,387,772 and
12$504,803,294. A carrier earning revenues less than $40,387,772
13is a class III carrier.
-2-th/ns
2by making moneys available to certain railroads operating
3exclusively in Iowa.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 327H.20A, subsection 2, Code 2023, is
2amended to read as follows:
32. The department shall administer a program for the
4granting and administration of loans and grants under this
5section. The department may establish a limit on the amount
6that may be awarded as a grant for any given project in order
7to maximize the use of the moneys in the fund. The department
8may enter into agreements with railroad corporations, the
9United States government, cities, counties, and other persons
10for carrying out the purposes of this section. However,
11the department shall not grant any loans to a class I or
12class II railroad carrier, as defined by the federal surface
13transportation board, or any class III railroad carrier, as
14defined by the federal surface transportation board, that
15operates trains beyond the borders of this state.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19The department of transportation (DOT) controls a railroad
20revolving loan and grant fund. Moneys in the fund are used
21to provide assistance for the restoration, conservation,
22improvement, and construction of railroad main lines, branch
23lines, switching yards, sidings, rail connections, intermodal
24yards, highway grade separations, and other railroad-related
25improvements, and for rail economic development projects that
26improve rail facilities, including the construction of branch
27lines, sidings, rail connections, intermodal yards, and other
28rail-related improvements that spur economic development and
29job growth. The DOT administers a program for the granting
30and administration of applicable loans and grants, and may
31establish a limit on the amount that may be awarded for any
32given project in order to maximize the use of the moneys in the
33fund.
34This bill prohibits the DOT from granting any loans to a
35class I or class II railroad carrier, as defined by the federal
-1-1surface transportation board (STB), or any class III railroad
2carrier that operates trains beyond the borders of this state.
3The STB is an independent federal agency that is charged
4with the economic regulation of various modes of surface
5transportation including primarily freight rail. The STB has
6defined three classes of railroad carriers, designated as
7class I, class II, and class III, respectively, according to
8annual revenue criteria. The STB thresholds, last adjusted
9for inflation in 2019, for a class I carrier includes a
10carrier earning revenue greater than $504,803,294. A class II
11carrier is a carrier earning revenue between $40,387,772 and
12$504,803,294. A carrier earning revenues less than $40,387,772
13is a class III carrier.
-2-th/ns