Local Rail Service Assistance Act of 1978

Summary

Railroad Amendments Act - Title I: Local Rail Services - Declares that the policy of this Act is to provide Federal assistance in the provision of adequate transportation service to shippers and communities served by light density rail lines. Amends the Department of Transportation Act to stipulate that the rail freight service continuation payments made to States under such Act shall cover the difference between the revenues which are attributable to a line of railroad and the avoidable cost of providing rail freight service on such line, together with a reasonable return on the value of such line. Authorizes the Secretary of Transportation to make rail freight assistance available to States: (1) for the acquisition, by purchase or otherwise, of rail lines or property; (2) for the cost of constructing rail or rail related facilities to improve local rail freight service; and (3) the cost of innovative experimental programs which are designed to improve service on eligible rail lines and which involve cooperative action between State and local communities and railroad industry representatives or shippers. Revises the cost sharing formula for rail freight assistance programs under such Act to stipulate that the Federal share of such a program shall be 80 percent of its cost. Stipulates that the State share of such a project may be made in cash, through the forgiveness of State tax imposed on a railroad or through the provision, by the State or by an individual or entity on behalf of the State, of real or personal tangible property for use in its rail service assistance program. Sets forth a formula for computing the dollar amount of assistance which may be made available to a State for rail freight assistance. Sets forth the eligibility requirements for funding rail service assistance projects. Directs the Secretary to promulgate regulations establishing criteria for determining the ratio of benefits to costs of proposed projects eligible for specified assistance under such Act. Requires States to use the Federal rail rehabilitation assistance provided under such Act in a specified manner. Directs States to make grants or loans to the owners of rail properties or the operators of rail service related to such a rehabilitation project. Title II: Amendments to the Railroad Revitalization and Regulatory Reform Act of 1976 - Amends the Railroad Revitalization and Regulatory Reform Act of 1976 to prohibit the use of proceeds from the sale of anticipation notes of the Railroad Rehabilitation and Improvement Fund for the payment of interest on such notes. Prohibits the obligation of money in the Fund for any purpose without prior approval thereof in an annual appropriations Act. Revises the factor dealing with a railroad's rate of return on total capital which the Secretary of Transportation is to consider in determining whether to make rehabilitation and improvement financing available under such Act. Removes the total dollar limitation on the use of proceeds from Fund anticipation notes for use by the Secretary of Transportation in purchasing trustee certificates. Stipulates that Fund anticipation notes sold by the Secretary to the Secretary of the Treasury shall be subject to such terms, conditions, and interest rates as the Secretary of the Treasury may prescribe. Establishes a minimum interest rate for such notes. Stipulates that if the Congress does not enact legislation authorizing the issuance of Fund bonds by September 30, 1979 the Secretary of Transportation shall hold in trust all redeemable preference shares issued by railroads which are held in the Fund, and the Fund shall then terminate. Repeals the authorization for appropriations contained in such Act for Fund notes.

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Documents

3 official files

• Public Law (PDF)

  Public Law · EN · 9 November 1978

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• Passed House amended

  summary · EN · 13 October 1978

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• Introduced in Senate

  summary · EN · 25 April 1978

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