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The Oregon Administrative Rules contain OARs filed through November 15, 2014
 
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DEPARTMENT OF TRANSPORTATION,
RAIL DIVISION

 

DIVISION 20

STANDARDS TO DETERMINE PROJECT ELIGIBILITY AND APPLICATION PROCEDURES FOR GRANTS OR LOANS UNDER THE INDUSTRIAL SPUR PROGRAM

741-020-0010

Purpose

Chapter 741, Oregon Laws 2003 created the Industrial Rail Spur Fund, allowing for the issuance of lottery bonds to for the purpose of financing grants and loans to fund industrial rail spurs. The purpose of division 20 rules is to establish the Industrial Spur Track Program for the distribution of the funds as well as procedures, standards and criteria for its operation.

Stat. Auth.: ORS 184.616, 184.619 & 823.011
Stats. Implemented: ORS 367.070 & Sec. 10. Ch. 741 OL 2003
Hist.: RD 3-2004, f.& cert. ef. 5-20-04

741-020-0020

Definitions

For the purposes of Division 20 rules, the following terms shall have the following definitions, unless the context clearly indicates otherwise:

(1) "Approved Project" means a Project that the Department has determined will receive funding through either a grant or loan from the Industrial Spur Rail Fund.

(2) "Department" is as defined in ORS 184.610(2).

(3) "Director" is as defined in ORS 184.610(3).

(4) "Industrial Spur Track" means a segment of trackage used for the rail transportation of raw materials and finished products between manufacturing facilities and mail line rails or that serves a transloading, reloading and teaming facility.

(5) "Program" means the Industrial Spur Track Program established by Division 20 rules to administer the Industrial Rail Spur Fund.

(6) "Program Funds" means the money appropriated by the Legislature to the Industrial Spur Fund. These funds may be used as either grants or loans to eligible projects.

(7) "Project" means installation and/or upgrading of industrial spur track. A Project may also include the upgrade of trackage at an industrial facility to handle 286,000-pound GWR rail car shipments or the installation and/or upgrade of trackage that is adjacent to the project and is necessary for the proposed project to function properly.

(8) "Railroad" as is defined in ORS 824.020.

Stat. Auth.: ORS 184.616, 184.619 & 823.011
Stats. Implemented: ORS 367.070 & Sec. 10. Ch. 741 OL 2003
Hist.: RD 3-2004, f.& cert. ef. 5-20-04

741-020-0025

Application Submission Periods

(1) The Department will announce periods for submitting applications for funding from the Industrial Rail Spur Fund, as funding is available.

(2) Project applications will be reviewed for compliance with the requirements in OAR 741-020-0040 and as prescribed in 741-020-0050.

(3) Projects not funded may be resubmitted during application submission periods prescribed by the Department.

Stat. Auth.: ORS 184.616, 184.619 & 823.011
Stats. Implemented: ORS 367.070 & Sec. 10. Ch. 741 OL 2003
Hist.: RD 3-2004, f.& cert. ef. 5-20-04

741-020-0030

Application Requirements

Persons or entities interested in receiving funds from the Industrial Rail Spur Fund may submit to the Department a written application. The application shall be in a format prescribed by the Department and shall contain or be accompanied by such information as the Department may require.

Stat. Auth.: ORS 184.616, 184.619 & 823.011
Stats. Implemented: ORS 367.070 & Sec. 10. Ch. 741 OL 2003
Hist.: RD 3-2004, f.& cert. ef. 5-20-04

741-020-0040

Application Review and Approval

Upon receipt of an application the Department shall determine whether the Project is eligible for Program Funds. Projects that meet the following criteria are eligible:

(1) The applicant is a railroad doing business within the state of Oregon; a public jurisdiction within the state of Oregon; a company, foreign or domestic, incorporated or registered with the Oregon Secretary of State to do business within the state of Oregon.

(2) The Project will assist in developing a system of industrial rail spur tracks that supports state and local government efforts to attract new industries to Oregon or that keeps and encourages expansion of existing industries.

(3) The Project will serve the public good and would benefit from the provision of public assistance.

(4) The Project is not a replacement for an industrial spur track that would have been constructed without public assistance.

(5) The project will not require or rely upon continuing subsidies from the Department.

(6) The applicant is current on all state and local taxes, fees and assessments.

(7) If the Project is not eligible, the Department shall, within 30 days:

(a) Reject the application; or

(b) Specify the additional information the applicant must provide to establish eligibility.

Stat. Auth.: ORS 184.616, 184.619 & 823.011
Stats. Implemented: ORS 367.070 & Sec. 10. Ch. 741 OL 2003
Hist.: RD 3-2004, f.& cert. ef. 5-20-04

741-020-0050

Project Funding Priorities

The Department shall consider the following in its determination of which eligible Projects will be approved for receipt of funds from the Industrial Rail Spur Fund:

(1) The amount of funding available.

(2) Whether the Project will facilitate creation of new jobs and capital investment or the retention of existing jobs and capital investment that would otherwise be lost to Oregon.

(3) Whether the Project leverages other development efforts by the state or other government units.

(4) Supportive documents from the industry(s) and the railroad indicating the number of new carloads expected to be created within the first three years after construction of the project.

(5) Whether the Project facilitates the retention and/or creation of jobs in economically distressed areas of the state.

Stat. Auth.: ORS 184.616, 184.619 & 823.011
Stats. Implemented: ORS 367.070 & Sec. 10. Ch. 741 OL 2003
Hist.: RD 3-2004, f.& cert. ef. 5-20-04

741-020-0060

Grant Awards and Match

(1) Grant awards shall not exceed 75% of the total Project costs. Loans may be for the full amount of the project. In no case, shall any one project receive more than 50% of the funds available to the Program.

(2) Any required local share of a project grant can be cash, or a combination of cash and in-kind services.

(3) Grants and loans will be awarded only when there are sufficient funds available to cover the costs of the loans and grants.

Stat. Auth.: ORS 184.616, 184.619 & 823.011
Stats. Implemented: ORS 367.070 & Sec. 10. Ch. 741 OL 2003
Hist.: RD 3-2004, f.& cert. ef. 5-20-04

741-020-0070

Project Administration

(1) The Department and the successful applicant shall execute a grant/loan contract prior to the disbursal of Program Funds for an Approved Project.

(2) Documentation of the projected costs for an Approved Project shall be submitted to the Department prior to the disbursal of Program Funds.

(3) Disbursal of Program Funds for grants will not exceed one disbursal per month.

(4) Upon request, the successful applicant must provide the Department with a copy of documents, studies, reports and materials developed during the Project, including a written report on the activities or results of the Project and any other information that may be reasonably requested by the Department.

(5) Any Program Funds disbursed but not used for an Approved Project must be returned to the Department.

(6) Amendments to Approved Project grant contracts are required to change a project's cost, scope, objectives or timeframe.

(7) The Department will require that a lien be placed upon the improvements in the county in which an Approved Project is located. This lien shall be in form approved by the Department and remain in effect for a period of not less than 10 years from the disbursal of the first Program Funds.

(8) If after three years the Approved Project does not generate the carloads and/or the jobs anticipated, the Department may request that the applicant repay up to 40% of Program Funds given as a grant. This shall only occur after the Department investigates the situation and a determination is made as to the cause(s) of the failure to meet the original objectives of the Approved Project.

Stat. Auth.: ORS 184.616, 184.619 & 823.011
Stats. Implemented: ORS 367.070 & Sec. 10. Ch. 741 OL 2003
Hist.: RD 3-2004, f.& cert. ef. 5-20-04

741-020-0080

Sanctions, Exceptions and Appeals

(1) The Department may invoke sanctions against applicants that fail to comply with the requirements governing the Program. The Department will not impose sanctions until the applicant has been notified in writing of deficiencies and has been given a reasonable time to respond and correct the deficiencies noted. The following circumstances may warrant sanctions:

(a) None of the Approved Project activities have begun within six months of notification of the award of money from the Industrial Spur Program;

(b) State statutory requirements have not been met;

(c) There is a significant deviation from the Approved Project grant/loan contract; or

(d) The Department finds that significant corrective actions are necessary to protect the integrity of the Program Funds for the Approved Project, and those corrective actions are not, or will not be, made within a reasonable time.

(2) One or more of the following sanctions may be imposed by the Department:

(a) Revoke an existing award.

(b) Withhold unexpended Program Funds.

(c) Require return of unexpended Program Funds or repayment of expended Program Funds.

(d) Bar the applicant from applying for future assistance.

(e) Other remedies that may be incorporated into grant/loan contracts.

(3) The remedies set forth in this rule are cumulative, are not exclusive, and are in addition to any other rights and remedies provided by law or under the contract.

(4) The Director will consider appeals of the Department's funding decisions. Only the applicant may appeal. Appeals must be submitted in writing to the Director within 30 days of the event or action that is being appealed. The Director's decision is final.

(5) The Director may waive non-statutory requirements of this Program if it is demonstrated such a waiver would serve to further the goals and objectives of the Program.

Stat. Auth.: ORS 184.616, 184.619 & 823.011
Stats. Implemented: ORS 367.070 & Sec. 10. Ch. 741 OL 2003
Hist.: RD 3-2004, f.& cert. ef. 5-20-04

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