Rail Freight Funding Programs
	Rail Freight Assistance Program (CLOSED UNTIL FURTHER NOTICE)
	The Rail Freight Assistance Program (RFAP) provides financial assistance for investment in rail freight infrastructure. The intent of the Program is to (1) preserve essential rail freight service where economically feasible, and (2) preserve or stimulate economic development through the generation of new or expanded rail freight service.
	The maximum state funding for a RFAP project is 70 percent of the total project costs, not to exceed $700,000. The funding for the construction portion of any project cannot exceed $250,000. The final grant award will be based upon actual bid costs or agreed upon prices if work is to be performed by your own labor forces.
	Rail TAP
	The Rail Transportation Assistance Program (Rail TAP), otherwise known as Capital Budget, is available to those having a line item in the current Capital Budget Bill. For those who do not have a line item, please contact your local representative or senator to secure a line item. The project can be funded up to 70 percent of the total project costs, not to exceed the amount of the line item. The final grant award will be based upon actual bid costs or agreed upon prices if work is to be performed by your own labor forces.
	Both rail funding programs have become very competitive and not all applications will receive funding.
	Program Administration and Procedures
	The Bureau of Rail Freight is charged with the administration of monies allocated from the Commonwealth General Fund to the RFAP and monies from the Capital Budget for Capital grants. Financial assistance is available on a matching grant basis to railroad companies, transportation organizations, municipalities, municipal authorities and users of rail freight infrastructure whose proposals, at a minimum, meet certain project eligibility requirements. Because the dollar value of requests for state financial assistance usually exceeds available funding, not all grant applications can receive funding assistance or the full amount requested. The Bureau is responsible for the evaluation of grant applications and the awarding of state financial assistance based upon an objective process that serves the legislative intent of the programs and promotes the public interest.
	Following the close of the application period, applicants will be given the opportunity to present their rail projects in Harrisburg. These meetings will allow the Bureau staff to more effectively evaluate candidate projects in order to strategically invest grant dollars in a fiscally constrained program. It is expected that meetings will take place in the September/October timeframe. Contact the Bureau of Rail Freight for more information on these meetings/dates at (717) 783-8567. Upon completion of project evaluation, Bureau staff may reduce the scope of the project and/or the estimated costs. All projects are scored and ranked for selection of funding based on the scoring criteria reflecting the intent of the project and the initiates of the Commonwealth. Once the projects are selected, the Bureau presents its selections to the Program Management Committee (PMC) and the State Transportation Commission (STC) for approval. Following approval by the STC, all applicants are notified of their funding status.
	No project shall begin without the Bureau’s written approval.
	All invoices received by Grantees from contractors requesting payment must be submitted for reimbursement to the Bureau within 5 days of receipt. Final retainage payment could be held by the Department until proof of payment to the contractor (s) is provided. Failure to follow reimbursement procedures could result in failure to receive future grants.
	Eligible Projects and Funding Limits
	RFAP (maintenance projects):(CLOSED UNTIL FURTHER NOTICE) Consist of the replacement of ties, rails, plates, turnouts, and other track materials, structural materials and additional ballast to be sufficient functionally to restore, improve, or maintain an existing railroad line to the level necessary for safe operation or use and has an estimated useful life of a least five years but does not include acquisition cost of land, rights to land, buildings, or building materials to construct a new building.
	Capital Budget (construction projects ): Consist of the cost to purchase ties, rail, ballast, other track materials, and structural materials in sufficient quantity to construct a railroad line (where none exists) or a rail associated facility to a level necessary for the operation or use, and has an estimated useful life in excess of five years, but does not include acquisition cost of land, rights of land, buildings or building materials to construct a new building.
	Combination Maintenance/Construction Projects: This is a combination maintenance/construction project as described previously.
	Prevailing Wage: Rail projects are subject to prevailing wage requirements. It is your responsibility to obtain the prevailing wage rates from the Department of Labor and Industry (L&I) and to meet their requirements in this regard. To obtain prevailing wage information and rates, click on the following link: http://www.dli.state.pa.us. If you have any questions regarding prevailing wages, please contact L&I’s Bureau of Labor Compliance: 1-800-932-0665.
	How to Apply for an Assistance Grant
	Both Rail Freight grant programs require ALL applications to be filed electronically using our dotgrants web based application. Applications can only be filed during the open application period.
	Click on the link to access the dotgrants information page. New users and organizations will need to register and should follow the instructions provided on the information page. Please contact Megan Mott with any questions concerning this application at (717) 214-9757.