Relating to the railroad revolving loan and grant fund by making moneys available to certain railroads operating exclusively in Iowa

The department of transportation (DOT) controls a railroad revolving loan and grant fund. Moneys in the fund are used to provide assistance for the restoration, conservation, improvement, and construction of railroad main lines, branch lines, switching yards, sidings, rail connections, intermodal yards, highway grade separations, and other railroad-related improvements, and for rail economic development projects that improve rail facilities, including the construction of branch lines, sidings, rail connections, intermodal yards, and other rail-related improvements that spur economic development and job growth. The DOT administers a program for the granting and administration of applicable loans and grants, and may establish a limit on the amount that may be awarded for any given project in order to maximize the use of the moneys in the fund. This bill prohibits the DOT from granting any loans to a class I or class II railroad carrier, as defined by the federal surface transportation board (STB), or any class III railroad carrier that operates trains beyond the borders of this state. The STB is an independent federal agency that is charged with the economic regulation of various modes of surface transportation including primarily freight rail. The STB has defined three classes of railroad carriers, designated as class I, class II, and class III, respectively, according to annual revenue criteria. The STB thresholds, last adjusted for inflation in 2019, for a class I carrier includes a carrier earning revenue greater than $504,803,294. A class II carrier is a carrier earning revenue between $40,387,772 and $504,803,294. A carrier earning revenues less than $40,387,772 is a class III carrier.