Railroad Rehabilitation And Improvement Financing Program (20.316)

Program

20.316 Railroad Rehabilitation And Improvement Financing Program

Federal Agency

Agency: Department of Transportation
Office: Federal Railroad Administration (FRA)

Authorization

Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 821, et seq.), 45 U.S.C 821.

Program Number

20.316

Last Known Status

Active

Objectives

The RRIF program provides direct loans and loan guarantees to State and local governments, interstate compacts consented to by Congress under section 410(a) of the Amtrak Reform and Accountability Act of 1997 ( 49 U.S.C. 24101 ); government sponsored authorities and corporations; railroads;
joint ventures that include at least one railroad; and
solely for the purpose of constructing a rail connection between a plant or facility and a second rail carrier, limited option rail freight shippers that own or operate a plant or other facility that is served by no more than a single railroad.

Types of Assistance

DIRECT LOANS; Loan Guarantees/Grants

Uses and Use Restrictions

Funds provided by direct loans or loan guarantees under the RRIF Program can be used to: (1) Acquire, improve, or rehabilitate intermodal or rail freight or passenger equipment or facilities, including track, components of track, bridges, yards, buildings and shops (2) Refinance outstanding debt incurred for purposes described in the previous paragraph (3) Develop or establish new intermodal or railroad facilities The maximum loan amount will be based on the remaining available funds under the Program's authorization. The repayment period for direct loans and loan guarantees is up to 35 years. The interest rate on direct loans will be equal to the rate on Treasury securities of a similar term.

Eligibility Requirements

Applicant Eligibility

Eligible applicants include State and local governments, government-sponsored authorities, government-sponsored corporations, railroads, and joint ventures that include at least one railroad.

Beneficiary Eligibility

The beneficiaries of the Program will be the State or local government organizations, railroad, or joint ventures that include a railroad that will receive the financial assistance to permit them to complete the specified projects.

Credentials/Documentation

No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

A pre-application meeting may be held if requested by a potential applicant. Procedures for requesting such a meeting are available on the FRA website and at 49 CFR 260.19. This program is eligible for coverage under E.O. 12372, Intergovernmental Review of Federal Programs. An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. Environmental impact information is not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure

OMB Circular No. A-102 applies to this program. This program is excluded from coverage under OMB Circular No. A-110. Complete and submit application form available on the FRA website.

Award Procedure

FRA will evaluate application and advise applicant of approval or disapproval.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time

From 60 to 90 days. Application will be approved or disapproved within 90 days after a complete application is deemed to have been submitted.

Appeals

There is no appeal process.

Renewals

Disapproved applicants may reapply at any time.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

This program has no matching requirements.

MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

As a part of the application package, the borrower provides a projected timetable for the completion of the project. The funding will be made available as progress payments to pay directly or reimburse the Borrower for prior payment of allowable costs incurred in connection with the project. Method of awarding/releasing assistance: quarterly.

Post Assistance Requirements

Reports

Program reports are not applicable. Statement of cash flows must be submitted for the life of the financial assistance. During the course of the project, monthly progress reports of work completed and actual expenditures compared to the budget. Yearly audited and certified profit and loss statement, balance sheet and statement of cash flows must be submitted for the life of the financial assistance. During the course of the project, monthly progress reports of work completed and actual expenditures compared to the budget. Performance monitoring is not applicable.

Audits

This program is excluded from coverage under OMB Circular No. A-133. Audits of project expenditures will be conducted upon completion.

Records

None.

Program Accomplishments

Fiscal Year 2008: Since 2002 the program has approved almost $800 million in direct loans. In FY 2008 the RRIF program did not make any loans. In the current fiscal year, the RRIF program has made $38.6 million in direct loans. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Financial Information

Account Identification

69-4420-0-3-401.

Obligations

(Direct Loans) FY 08 $0; FY 09 est $600,000,000; FY 10 est $600,000,000

Range and Average of Financial Assistance

Range: Fiscal 2007-$48.0 million to $59.0 million
Average: Fiscal 2007-$53.5 million.

Regulations, Guidelines and Literature

Railroad Rehabilitation and Improvement Financing Program, 49 CFR 260.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

See Regional Agency Offices. Not applicable.

Headquarters Office

Mark Yachmetz 1200 New Jersey Avenue, S.E.,
, Washington , District of Columbia 20590 Phone: (202) 493-6381

Web Site Address

http://www.fra.dot.gov/.

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Initially the criteria are based on the relevance to the programs' objectives and uses. The program provides direct loans and loan guarantees to State and local governments, government-sponsored authorities and corporations, railroads, and joint ventures that include at least one railroad. Eligible projects include: (1) refinancing outstanding debt that was incurred for eligible purposes, (2) developing or establishing new intermodal or railroad facilities, or (3) acquisition, improvement or rehabilitation of intermodal or rail equipment or facilities (including tracks, components of tracks, bridges, yards, buildings and shops.