Federal Laws and Material Relating to the Federal Highway Administration

(4) such State provides satisfactory assurance that it has or will adopt and maintain adequate procedures for financial control, accounting, and performance evaluation in order to assure proper use of Federal funds; and

(5) such State complies with regulations of the Secretary issued under this section and the Secretary determines that such State meets or exceeds the requirements of paragraphs (1) through (4) of this subsection.

(k) Eligibility criteria for different classes of projects for rail freight financial assistance; annual list of rail line carriage of certain gross tonnage or less per mile.

(1) A project is eligible for financial assistance under paragraph (1) of subsection (f) of this section only if—

(A) the Interstate Commerce Commission has found, since February 5, 1976, that the public convenience and necessity permit the abandonment of, or the discontinuance of rail service on, the line of railroad related to the project;

(B) the line of railroad related to the project is listed for possible inclusion in a rail bank in part III, section C of the Final System Plan issued by the United States Railway Association under section 717 of Title 45.

(2) A project is eligible for financial assistance under paragraphs (2) and (4) of subsection (f) of this section only if—

(A) the line of railroad related to the project is certified by the railroad as having carried 3 million gross ton miles of freight or less per mile during the prior year;

(B) the line of railroad related to the project is certified by the railroad as having carried less than 5 million gross ton miles of freight per mile during the prior year and the Secretary has determined that the project is essential to carry out proposals made under authority of subsections (a) through (e) of this section;

(C) an application for a certificate of abandonment or discontinuance with respect to the line of railroad related to the project has been filed with the Interstate Commerce Commission prior to January 1, 1979 (whether or not such application has been granted);

(D) the line of railroad related to the project is listed for possible inclusion in a rail bank in part III, section C of the Final System Plan issued by the United States Railway Association under section 717 of Title 45; or

(E) the line of railroad related to the project was eligible to be acquired under section 762(c)(3) of Title 45.

Any project involving a line of railroad described in subparagraph (C), (D), or (E) of this paragraph shall only be eligible for financial assist

ance until September 30, 1981, unless such a project has been receiving assistance under this subsection but did not receive all the funds to which the State was entitled at the beginning of the fiscal year ending September 30, 1981, in which case such project shall continue to be eligible until September 30, 1982.

(3) A project is eligible for financial assistance under paragraph (3) of subsection (f) of this section only if—

(B) the line of railroad or related project was eligible for financial assistance under section 762 of Title 45, except that a line of railroad or related project which was eligible for assistance under such section 762 or under this section prior to October 1, 1978, shall be eligible only until September 30, 1981, unless such a project has been receiving assistance under this subsection but did not receive all the funds to which the State was entitled at the beginning of the fiscal year ending September 30, 1981, in which case such project shall continue to be eligible until September 30, 1982.

(4) On or before August 1 of each year, each common carrier by railroad subject to chapter 1 of this title shall prepare, update, and submit to the Secretary a listing of those rail lines of such carrier which, based on level of usage, carried 3 million gross ton miles of freight or less per mile during the prior year.

(5) Redesignated (4).

(1) Certain payments to eligible State; procedure.

The Secretary shall pay to each eligible State an amount equal to its entitlement under subsection (h) of this section, to be expended or committed to one or more projects which are eligible, pursuant to subsection (k) of this section. Upon receipt of an application for rail freight assistance, the Secretary shall consider the application and notify the State submitting such an application as to its approval or disapproval within 45 days. If the Secretary fails to consider and notify the State applying for rail freight assistance under subsection (k) of this section within 45 days, then the project shall be considered approved and the State shall receive the Federal share up to the amount to which it is entitled.

(m) Recordkeeping, auditing, etc., requements of recipients of financial assistance.

(1) Each recipient of financial assistance under subsections (e) through (p) of this section, whether in the form of grants, subgrants, contracts, subcontracts, or other arrangements, shall keep such records as the Secretary shall prescribe including records which fully disclose the amount and disposition by such recipient of the proceeds of such

assistance, the total cost of the project or undertaking in connection with which such assistance was given or used, the amount of that portion of the cost of the project which was supplied by other sources, and such other records as will facilitate an effective audit. Such records shall be maintained for 3 years after the completion of such a project or undertaking.

(2) The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access, for the purpose of audit and examination, to any books, documents, papers, and records of receipts which, in the opinion of the Secretary or of the Comptroller General may be related or pertinent to the grants, contracts, or other arrangements referred to in paragraph (1) of this subsection.

(3) The Secretary and the Comptroller General shall regularly conduct, or cause to be conducted—

(A) a financial audit, in accordance with generally accepted auditing standards; and

(B) a performance audit of the activities and transactions assisted under this section, in accordance with generally accepted management principles.

Such audits may be conducted by independent certified or licensed public accountants and management consultants approved by the Secretary and the Comptroller General, and they shall be conducted in accordance with such rules and regulations as may be prescribed by the Comptroller General.

(n) Definition.

As used in this section, the term "State" means any State in which a rail carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under chapter 105 of Title 49, maintains any line of railroad.

(0) State use of financial assistance; terms and conditions.

A State shall use financial assistance provided under paragraph (2) of subsection (f) of this section in accordance with the following provisions:

(1) The financial assistance shall be used to rehabilitate or improve rail properties in order to improve rail freight service within the State.

(2) The State shall, in its discretion, grant or loan funds to the owner of rail properties or operator of rail service related to the project.

(3) The State shall determine all financial terms and conditions of a grant or loan, except that the timing of all advances with respect to grants in and under this subsection shall be in accordance with Department of Treasury regulations.

(4) The State shall place the Federal share of repaid funds in an interest-bearing account or, with the approval of the Secretary,

permit any borrower to place such funds, for the benefit and use of the State, in a bank which has been designated by the Secretary of the Treasury in accordance with section 265 of Title 12. The State shall use such funds and all accumulated interest to make further loans or grants under paragraph (2) of subsection (f) of this section in the same manner and under the same conditions as if they were originally granted to the State by the Secretary. The State may, at any time, pay to the Secretary the Federal share of any unused funds and accumulated interest. After the termination of a State's participation in the rail service assistance program established by this section, such State shall pay the Federal share of any unused funds and accumulated interest to the Secretary.

(5) The State, to the maximum extent possible, shall encourage the participation of shippers, railroads, and local communities in providing the State share of rail freight assistance funds.

(p) State contingent interest in funds.

Each State shall retain a contingent interest (redeemable preference shares) for the Federal share of funds in any line receiving rail freight assistance under this section and may exercise the right to collect its share of the funds used for such a line, if an application for abandonment of such line is filed under chapter 109 of Title 49, or if such line is sold or disposed of in any way after it has received Federal assistance. (q) Authorization of appropriations; availability of unexpended appropri

ations.

There are authorized to be appropriated to the Secretary for the purposes of subsections (f) through (p) of this section not to exceed $360,000,000, of which $40,000,000 shall be made available for the fiscal year ending September 30, 1982, $44,000,000 shall be made available for the fiscal year ending September 30, 1983 and $48,000,000 shall be made available for the fiscal year ending September 30, 1984. In addition, any appropriated sums remaining after the repeal of section 762 of Title 45 and section 1653a of this title are authorized to remain available to the Secretary for purposes of subsections (f) through (p) of this section. Such sums as are appropriated are authorized to remain available until expended. 9

Sec. 1654a. Federal assistance to railroad industry; report to Congress. 10 Within 90 days after the end of each fiscal year, the Secretary of Transportation shall submit a report to the Congress listing the specific

9 Previous section deleted by Public Law 93-633, sec. 308(1), Jan. 3, 1975 (88 Stat. 2173); and new section added by Public Law 94-210, Title IV, sec. 501 and Title VIII, sec. 803, Feb. 5, 1976 (90 Stat. 61, 130); and amended by Public Law 95-607, secs. 102-106(a), 107-109(a), Nov. 8, 1978 (92 Stat. 3059-3064); and Public Law 96-86, Title I, § 115(b), Oct. 12, 1979 (93 Stat. 662); Public Law 97-35, Title XI, §§ 1191, 1192, Aug. 13, 1981 (95 Stat. 699); Public Law 97-449, § 7(b), Jan. 12, 1983 (96 Stat. 2444); and Public Law 97-468, Title V, § 501, Jan. 14, 1983 (96 Stat. 2551).

10 Public Law 96-448, Title IV, § 409, Oct. 14, 1980 (94 Stat. 1948), and amended by Public Law 97-375, Title II, § 210(a), Dec. 21, 1982 (96 Stat. 1825).

Federal assistance provided the railroad industry during such fiscal year. Each such report shall set forth the reasons for each Federal loan or grant and explain the way in which such loan or grant contributed to the overall goal of providing a safe and efficient transportation system. In each report the Secretary shall advise the Congress on the past and anticipated financial condition and operations during the fiscal year of the Railroad Rehabilitation and Improvement Fund established under section 822(a) of Title 45 and of the Obligation Guarantee Fund established under section 831(b) of Title 45. In addition, the Secretary shall include in the report information on the financial condition of each railroad having a loan guaranteed under the Emergency Rail Services Act of 1970 [45 U.S.C.A. § 661 et seq.], throughout the existence of such loan.

Sec. 1655. Transfer of functions

(a) Powers and duties of Secretary of Commerce and other offices and officers of Department of Commerce relating to highways, ground transportation generally, aircraft, pilotage, and traffic and highway safety generally.

There are hereby transferred to and vested in the Secretary all functions, powers, and duties of the Secretary of Commerce and other offices and officers of the Department of Commerce under

(1) the following laws and provisions of law relating generally to highways:

(A) Title 23, United States Code, as amended.

(B), (C) Repealed. Pub. L. 97-449, § 7(b), Jan. 12, 1983, 96 Stat. 2444.

(D) The Act of July 14, 1960, as amended.

(E) to (M) Repealed. Pub. L. 97-449, § 7(b), Jan. 12, 1983, 96 Stat. 2444.

(2) the following laws and provisions of law relating generally to ground transportation:

(A) The Act of September 30, 1965, as amended.

(B) The Urban Mass Transportation Act of 1964, as amended.

(3) the following laws and provisions of law relating generally to aircraft:

(A) The Act of September 7, 1957, as amended.

(B) Section 1380 of this title.

(4) Repealed. Pub. L. 97-449, § 7(b), Jan. 12, 1983, 96 Stat. 2444. (5) the following law to the extent it authorizes scientific and professional positions which relate primarily to functions transferred by this subsection: The Act of August 1, 1947, as amended.

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