California State Rail Plan 2005-06 to 2015-16

Chapter XVII - Funding
funding on a Federal/local matching share basis for four types of projects:
rehabilitation, new construction, substitute service, and acquisition. The LRSA
program permitted states to provide funds on a grant or loan basis.
In 1990, the Local Rail Service Reauthorization Act was passed, and the name of
the program was changed to Local Rail Freight Assistance (LRFA). The criteria
for lines eligible to receive assistance also were revised. Funds for the program
were dramatically reduced in the 1990s, and congressional appropriations ceased
in 1995. Over $544 million in Federal funds were expended between 1976 and
1985.
TEA-21 Rail Funding
In 1998, the Transportation Equity Act for the 21 st Century (TEA-21) reauthorized
the 1991 Intermodal Surface Transportation Efficiency Act (ISTEA). TEA-21
contained several provisions for rail assistance project funding. In 2005, the
Federal rail assistance programs were reauthorized, as discussed below.
Tax Credits for Maintenance of Railroad Track
Section 245 of the “American Jobs Creation Act of 2004” (Public Law 108-357)
provides a tax credit for 50 percent of railroad track maintenance costs for Class II
and III railroads.
SAFETEA-LU Rail Funding
In 2005, Safe, Accountable, Flexible, Efficient Transportation Equity Act: a
Legacy for Users (SAFETEA-LU) reauthorized the TEA-21. SAFETEA-LU
contained several provisions for rail assistance project funding. Under Section
9003, Rehabilitation and Improvement Financing, priority will be given to projects
that enhance service and capacity for shippers in the national rail system.
§1101: Congestion Management and Air Quality Improvement Program
(CMAQ)
This program, continued from TEA-21, provides $8.608 billion in funding for
projects that improve air quality in non-attainment areas as long as measurable
emission reductions can be shown. Freight intermodal facilities are eligible for
funding.
§1306: Freight Intermodal Distribution Pilot Grant Program
This new program provides the Ports of Los Angeles and Long Beach $1 million
per year for six years to provide capital funding to address infrastructure and
freight distribution needs at in land ports and intermodal facilities. Projects are
intended to reduce congestion into and out of U.S. international ports, decrease the
number of empty container moves, and encourage the development of inland
intermodal freight terminals.
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