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

 

DIVISION 25

STANDARDS TO DETERMINE PROJECT ELIGIBILITY
AND APPLICATION PROCEDURES FORGRANTS OR LOANS
FOR
SHORT LINE RAILROAD RAIL INFRASTRUCTURE

741-025-0010

Purpose

The Short Line Credit Premium Account is established in ORS 367.067. The purpose of division 25 rules is to establish the Short Line Railroad Rail Infrastructure Improvement Program as well as procedures, standards and criteria for its operation.

Stat. Auth.: ORS 184.616, 184.619, 367.066, 367.067 & 823.011
Stats. Implemented: ORS 367.066(2) & 367.067
Hist.: RD 4-2004, f. & cert. ef. 5-20-04

741-025-0020

Definitions

For the purposes of division 25 rules, the following terms shall have the following definitions, unless the context clearly indicates otherwise:

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

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

(3) "Program" means the Short Line Railroad Rail Infrastructure Improvement Program as established by Division 25 rules to administer the Short Line Credit Premium Account.

(4) "Program Funds" means the amount of money appropriated by the Legislature to the Short Line Credit Premium Account. These funds may used as either grants or loans to eligible projects.

(5) "Project" means repair and refurbishment of trackage, right of way, structures or appurtenances of a shortline railroad's rail line for the purpose of either restoring the line to rail service or upgrading infrastructure to meet Legislative criteria set forth in OAR 741-025-0040.

(6) "Short line railroad" means a Class II or Class III railroad as defined in 49 C.F.R. 1201.

Stat. Auth.: ORS 184.616, 184.619, 367.066, 367.067 & 823.011
Stats. Implemented: ORS 367.066(2) & 367.067
Hist.: RD 4-2004, f. & cert. ef. 5-20-04

741-025-0025

Application Submission Periods

(1) The Department will announce periods for submitting applications for funding from the Short Line Credit Premium Account, as funding is available.

(2) Project applications will be reviewed for compliance with the requirements in OAR 741-025-0040 and as prescribed in 741-025-0050.

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

Stat. Auth.: ORS 367.066 - 367.067
Stats. Implemented: ORS 367.067(2)
Hist.: RD 4-2004, f. & cert. ef. 5-20-04

741-025-0030

Application Requirements

Applications for infrastructure assistance from the Short Line Credit Premium Account 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, 367.066, 367.067 & 823.011
Stats. Implemented: ORS 367.066(2) & 367.067
Hist.: RD 4-2004, f. & cert. ef. 5-20-04

741-025-0040

Application Review and Approval

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

(a) The applicant is a short line railroad;

(b) The Project will not require or rely upon continuing subsidies from the Department; and

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

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

(a) Reject the application; or

(b) Require the applicant to submit additional information as may be necessary.

Stat. Auth.: ORS 184.616, 184.619, 367.066, 367.067 & 823.011
Stats. Implemented: ORS 367.066(2) & 367.067
Hist.: RD 4-2004, f. & cert. ef. 5-20-04

741-025-0050

Project Funding Priorities

(1) In evaluating eligible Projects to determine which shall receive infrastructure assistance, the Department shall consider:

(a) The amount of funds available in the Short Line Credit Premium Account.

(b) Whether the Project has a demonstrable public benefit.

(c) Whether the Project leverages railroad and shipper contributions.

(d) Whether the Project regains or creates jobs in economically distressed areas of the state.

(2) In evaluating eligible Projects to determine which shall receive infrastructure assistance, the department shall give priority to eligible Projects that:

(a) Enhance public safety;

(b) Enhance the environment;

(c) Appear creditworthy, providing financially secure sources of repayment to secure a federal credit instrument;

(d) Promote rural economic development;

(e) Reduce demand for expansion of highway capacity;

(f) Enable Oregon companies to be more competitive in regional, national, and international markets;

(g) Preserve or enhance rail or intermodal service to small communities or rail areas; and

(h) Will be operated by a short line railroad with federal credit assistance under the RRIFP.

Stat. Auth.: ORS 184.616, 184.619, 367.066, 367.067 & 823.011
Stats. Implemented: ORS 367.066(2) & 367.067
Hist.: RD 4-2004, f. & cert. ef. 5-20-04

741-025-0060

Grant Awards and Match

(1) Grants shall cover 100% of any Credit Risk Premiums set forth in the granting of a federal RRIF loan.

(2) No one Project shall receive more than 30% of the funds available to the Program outside of projects for RRIF financing.

(3) Any railroad and/or shipper contributions can be cash, or a combination of cash and in-kind services.

(4) 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, 367.066, 367.067 & 823.011
Stats. Implemented: ORS 367.066(2) & 367.067
Hist.: RD 4-2004, f. & cert. ef. 5-20-04

741-025-0070

Project Administration

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

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

(3) Disbursal of Program Funds for a grant will not exceed one disbursal per month and will be on a voucher basis.

(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 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 the project is located. This lien shall be in form approved by the Department and remains in effect for a period of not less than 10 years from the disbursal of the first funds.

Stat. Auth.: ORS 184.616, 184.619, 367.066, 367.067 & 823.011
Stats. Implemented: ORS 367.066(2) & 367.067
Hist.: RD 4-2004, f. & cert. ef. 5-20-04

741-025-0080

Sanctions, Exceptions and Appeals

(1) The Department may invoke sanctions against the applicants that fail to comply with the requirements governing the Program. The Department will notify the applicant in writing of deficiencies and give a reasonable amount of time for the applicant to respond to and correct the deficiencies before imposing sanctions. The following circumstances may warrant sanctions:

(a) None of the Project activities have begun within six months after award.

(b) State statutory requirements have not been met.

(c) The Project substantially deviates from the contract.

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

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

(a) Revoke an existing award;

(b) Withhold unexpended 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. 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, 367.066, 367.067 & 823.011
Stats. Implemented: ORS 367.066(2) & 367.067
Hist.: RD 4-2004, f. & cert. ef. 5-20-04

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