article: SECTION 1. CAPITAL GRANTS FOR RAIL LINE RELOCATION PROJECTS. (a) Establishment of Program.-- (1) Program requirements.--Chapter 201 of title 49, United States Code, is amended by adding at the end of subchapter II the following new section: ``Sec. 20154. Capital grants for rail line relocation projects ``(a) Establishment of Program.--The Secretary of Transportation shall carry out a grant program to provide financial assistance for local rail line relocation projects. ``(b) Eligibility.--A State is eligible for a grant under this section for any project for the improvement of the route or structure of a rail line passing through a municipality of the State that-- ``(1) is carried out for the purpose of mitigating the adverse effects of rail traffic on safety, motor vehicle traffic flow, or economic development in the municipality; ``(2) involves a lateral or vertical relocation of any portion of the rail line within the municipality to avoid a closing of a grade crossing or the construction of a road underpass or overpass; and ``(3) meets the costs-benefits requirement set forth in subsection (c). ``(c) Costs-Benefits Requirement.--A grant may be awarded under this section for a project for the relocation of a rail line only if the benefits of the project for the period equal to the estimated economic life of the relocated rail line exceed the costs of the project for that period, as determined by the Secretary considering the following factors: ``(1) The effects of the rail line and the rail traffic on motor vehicle and pedestrian traffic, safety, and area commerce if the rail line were not so relocated. ``(2) The effects of the rail line, relocated as proposed, on motor vehicle and pedestrian traffic, safety, and area commerce. ``(3) The effects of the rail line, relocated as proposed, on the freight and passenger rail operations on the rail line. ``(d) Considerations for Approval of Grant Applications.--In addition to considering the relationship of benefits to costs in determining whether to award a grant to an eligible State under this section, the Secretary shall consider the following factors: ``(1) The capability of the State to fund the rail line relocation project without Federal grant funding. ``(2) The requirement and limitation relating to allocation of grant funds provided in subsection (e). ``(3) Equitable treatment of the various regions of the United States. ``(e) Allocation Requirements.-- ``(1) Grants not greater than $20,000,000.--At least 50 percent of all grant funds awarded under this section out of funds appropriated for a fiscal year shall be provided as grant awards of not more than $20,000,000 each. ``(2) Limitation per project.--Not more than 25 percent of the total amount available for carrying out this section for a fiscal year may be provided for any one project in that fiscal year. ``(f) Federal Share.--The total amount of a grant awarded under this section for a rail line relocation project shall be 90 percent of the shared costs of the project, as determined under subsection (g)(4). ``(g) State Share.-- ``(1) Percentage.--A State shall pay 10 percent of the shared costs of a project that is funded in part by a grant awarded under this section. ``(2) Forms of contributions.--The share required by paragraph (1) may be paid in cash or in kind. ``(3) In-kind contributions.--The in-kind contributions that are permitted to be counted under paragraph (2) for a project for a State are as follows: ``(A) A contribution of real property or tangible personal property (whether provided by the State or a person for the State). ``(B) A contribution of the services of employees of the State, calculated on the basis of costs incurred by the State for the pay and benefits of the employees, but excluding overhead and general administrative costs. ``(C) A payment of any costs that were incurred for the project before the filing of an application for a grant for the project under this section, and any in- kind contributions that were made for the project before the filing of the application, if and to the extent that the costs were incurred or in-kind contributions were made, as the case may be, to comply with a provision of a statute required to be satisfied in order to carry out the project. ``(4) Costs not shared.-- ``(A) In general.--For the purposes of subsection (f) and this subsection, the shared costs of a project in a municipality do not include any cost that is defrayed with any funds or in-kind contribution that a source other than the municipality makes available for the use of the municipality without imposing at least one of the following conditions: ``(i) The condition that the municipality use the funds or contribution only for the project. ``(ii) The condition that the availability of the funds or contribution to the municipality is contingent on the execution of the project. ``(B) Determinations of the secretary.--The Secretary shall determine the amount of the costs, if any, that are not shared costs under this paragraph and the total amount of the shared costs. A determination of the Secretary shall be final. ``(h) Multistate Agreements To Combine Amounts.--Two or more States (not including political subdivisions of States) may, pursuant to an agreement entered into by the States, combine any part of the amounts provided through grants for a project under this section if-- ``(1) the project will benefit each of the States entering into the agreement; and ``(2) the agreement is not a violation of a law of any such State. ``(i) Regulations.--The Secretary shall prescribe regulations for carrying out this section. ``(j) State Defined.--In this section, the term `State' includes, except as otherwise specifically provided, a political subdivision of a State. ``(k) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary for use in carrying out this section $350,000,000 for each of the fiscal years 2004 through 2008.''. (2) Clerical amendment.--The table of sections at the beginning of such chapter is amended by adding at the end the following new item: ``20154. Capital grants for rail line relocation projects.''. (b) Regulations.-- (1) Interim regulations.--Not later than October 1, 2003, the Secretary of Transportation shall issue temporary regulations to implement the grant program under section 20154 of title 49, United States Code, as added by subsection (a). Subchapter II of chapter 5 of title 5, United States Code, shall not apply to the issuance of a temporary regulation under this subsection or of any amendment of such a temporary regulation. (2) Final regulations.--Not later than April 1, 2004, the Secretary shall issue final regulations implementing the program.
summary: Amends Federal transportation law to direct the Secretary of Transportation to carry out a grant program to provide financial assistance to States for 90 percent of the cost of local rail line relocation projects.