Action
Notice of Proposed Rulemaking (NPRM).
Summary
Section 7203 of the Transportation Equity Act for the 21st Century (``TEA 21'') amends Title V of the Railroad Revitalization and Regulatory Reform Act of 1976, as amended (``Act'') by replacing the railroad financing programs (the purchase of preference shares and the issuance of loan guarantees) with a new loan and loan guarantee program. Section 7203 authorizes the Secretary of Transportation (``Secretary'') to provide direct loans and loan guarantees to State and local governments, government sponsored authorities and corporations, railroads, and joint ventures that include at least one railroad. The Secretary has delegated his authority to the FRA Administrator. The following types of projects are eligible for financing under Title V, as revised: acquisition, improvement or rehabilitation of intermodal or rail equipment or facilities (including tracks, components of tracks, bridges, yards, buildings, and shops), refinancing outstanding debt incurred for these purposes, or development or establishment of new intermodal or railroad facilities. The aggregate unpaid principal amounts of obligations cannot exceed $3.5 billion at any one time and not less that $1 billion is to be available solely for projects benefiting freight railroads other than Class I carriers. The NPRM would strike the language in existing part 260 (the Title V loan guarantee program), and replace it with new procedures and requirements to cover applications of financial assistance in the form of direct loans and loan guarantees consistent with the changes in Title V made by section 7203.