Current through Register Vol. 49, No. 13, September 23, 2024
Subpart
1.
Eligibility; funding.
The commissioner shall provide funding to rail users from the
rail service improvement account for up to 100 percent of the cost of a rail
transportation-related capital improvement project under the following
conditions:
A. state funds are
available;
B. the capital
improvement project will benefit the economy of the state and strengthen the
financial condition of the associated rail line;
C. the state's interests are protected by
sufficient collateral or guarantees; and
D. the commissioner is repaid for funds
loaned at a predetermined, fixed amount payable quarterly over a period of not
more than ten years.
Subp.
1a.
Priority criteria.
The following criteria govern the priority of capital
improvement projects proposed for funding:
A. Highest priority will be given to projects
where:
(1) the capital improvement is directly
related to an overall rail line rehabilitation or acquisition; and
(2) the loan applicant has made a financial
contribution toward rehabilitating or acquiring the line.
B. Other projects will be given priority in
the following order:
(1) capital improvement
projects related to a rail line rehabilitation or acquisition;
(2) capital improvement projects on any rail
line carrying less than 5,000,000 gross tons per mile per year;
(3) capital improvement projects on a Surface
Transportation Board Class Two or Class Three rail line; and
(4) capital improvement projects on any rail
line within the boundaries of Minnesota.
Subp. 2.
Demonstration project.
The commissioner shall provide interest-free funding from the
rail service improvement account of up to 100 percent of the total cost of a
capital improvement project if the capital improvement is a demonstration
project and the following conditions are met:
A. state funds are available;
B. the project demonstrates unique methods of
improving rail service or alleviating the impact of abandonments that are not
in common usage throughout the rail industry and the project has not been
previously funded under parts
8830.5300 to
8830.5500;
C. it is likely that a similar project can be
instituted in other locations without the need for public financing;
and
D. the benefits resulting from
the project exceed the costs of implementing the project.
The amount of funding assistance will be determined by the
availability of funds and the viability of the proposed project.
Statutory Authority: MS s
218.071;
219.073;
219.165;
219.17;
219.384;
222.50;
222.58;
222.63
