RAIL FREIGHT PRESERVATION AND IMPROVEMENT ACT - PROGRAM AUTHORITY AND
                               DEFINITIONS
                 Act of Nov. 29, 2006, P.L. 1590, No. 180             Cl. 74
                             Session of 2006
                               No. 2006-180

     SB 1095

                                  AN ACT

     Amending the act of July 5, 1984 (P.L.587, No.119), entitled "An
        act empowering the Department of Transportation to preserve
        and improve rail freight service in the Commonwealth by
        making grants, loans or other assistance available to
        qualified applicants; authorizing a comprehensive rail study;
        making an appropriation; and making repeals," further
        providing for definitions and for program authority.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  The definition of "capital project" in section 3
     of the act of July 5, 1984 (P.L.587, No.119), known as the Rail
     Freight Preservation and Improvement Act, is amended and the
     section is amended by adding a definition to read:
      Section 3.  Definitions.
        The following words and phrases when used in this act shall
     have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        * * *
        "Capital project."  Acquisition of property, labor and
     materials for equipping, furnishing, constructing,
     reconstructing, rehabilitating or improving rail freight
     transportation systems or facilities, but shall not include
     accelerated maintenance.
        * * *
        "Railroad user."  Any person, firm or corporation which is a
     direct user or promoter of the development of any rail freight
     transportation system, facility or service in this Commonwealth.
        * * *
        Section 2.  Section 6(a) of the act is amended to read:
      Section 6.  Program authority.
        (a)  Authority.--The department is hereby authorized, within
     the limitation herein provided to:
            (1)  Provide operating subsidy grants to railroad
        companies, transportation organizations or municipalities to
        defray, or assist in defraying, the net deficit incurred by
        such entities in providing essential rail freight
        transportation services within the Commonwealth.
            (2)  Provide grants to railroad companies, transportation
        organizations, railroad users or municipalities to defray, or
        assist in defraying, the cost of accelerated maintenance
        projects performed on rail lines within the Commonwealth.
            (3)  Undertake capital projects and to provide and
        administer capital project grants to railroad companies,
        transportation organizations, railroad users or
        municipalities. The department shall not operate or provide
        directly rail freight transportation services on its own rail
        lines or on lines owned by others, nor shall a capital
        project be undertaken in order to enable the department to
        provide directly rail freight transportation services.
        Notwithstanding the provisions of sections 302 and 303 of the
        act of February 9, 1999 (P.L.1, No.1), known as the Capital
        Facilities Debt Enabling Act, the department is authorized to
        make grants for capital projects up to $250,000 without
        authorization or itemization in an approved capital budget.
            (4)  Acquire by purchase, lease, eminent domain
        proceedings, gift or otherwise, all and any property, in such
        estate as determined by the secretary, for promoting the
        purposes of this act, including the property of a public
        utility. All municipalities and corporations are hereby
        authorized to donate property to the department. Eminent
        domain proceedings shall be in accordance with the act of
        June 22, 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent
        Domain Code, and the department is empowered to join with any
        municipality or transportation organization in obtaining any
        property through the eminent domain proceedings.
            (5)  Undertake research, studies, analysis and planning,
        to make grants to railroad companies, transportation
        organizations and municipalities for research, studies
        analysis and planning, relating to any phase of rail freight
        transportation services, systems and facilities, including
        the management, operation, capital requirements and economic
        feasibility thereof, and any preparation of engineering and
        architectural surveys, plans and specifications and other
        similar activities preliminary to and in preparation for
        construction, acquisition or improved operation of rail
        freight transportation services, systems and facilities
        within the Commonwealth.
            (6)  Undertake demonstration projects and to make grants
        to railroad companies, transportation organizations and
        municipalities for demonstration projects, including the
        development, testing and demonstration of new facilities,
        equipment, techniques and methods of providing rail freight
        transportation services, systems and facilities within the
        Commonwealth.
            (7)  Undertake marketing activities and to make grants to
        railroad companies, transportation organizations and
        municipalities for marketing activities designed to foster
        the fullest and most efficient utilization of rail freight
        transportation services, systems and facilities within the
        Commonwealth. Marketing activities may be undertaken by
        contract with the department or by subcontract with a grantee
        of the department, upon approval of the subcontract by the
        secretary.
            (8)  Undertake audits of any project being financially
        assisted by the department. The department may hire outside
        auditors to perform such functions or may direct its grantees
        to engage such auditors and include the expense thereof as an
        eligible program cost.
        * * *
        Section 3.  This act shall take effect in 60 days.

     APPROVED--The 29th day of November, A. D. 2006.

     EDWARD G. RENDELL