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
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2474 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2474
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 13, 2021
Ms. Kuster (for herself, Mr. Smucker, and Mr. Pappas) introduced the
following bill; which was referred to the Committee on Transportation
and Infrastructure
_______________________________________________________________________
A 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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Transportation and Infrastructure.
Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.
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