1.1 	A bill for an act
1.2 	relating to transportation; providing for grants for freight railroad preservation 
1.3 	and improvement; appropriating money;amending Minnesota Statutes 2014, 
1.4 	section 222.50, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2014, section 222.50, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 6a.Grants; freight railroad preservation and improvement. (a) The 
1.9 	commissioner may make grants for freight railroad preservation and improvement as 
1.10 	provided in this subdivision and for the purposes specified in subdivision 7.
1.11 	(b) Eligible recipients of grant funds under this subdivision consist of: railroad 
1.12 	companies that are classified by federal law or regulation as Class II Railroads, Class II Rail 
1.13 	Carriers, Class III Railroads, or Class III Carriers; rail users; and local units of government. 
1.14 	An eligible recipient may receive funds regardless of ownership of rail facilities.
1.15 	(c) When awarding grants, the commissioner must prioritize projects:
1.16 	(1) identified under subdivision 7, paragraph (a), clauses (2) and (3);
1.17 	(2) on segments experiencing low rail service use; and
1.18 	(3) with applicants who commit more than 20 percent of total project costs from 
1.19 	nonstate and nonfederal sources.
1.20 	(d) A grant under this subdivision may not exceed 80 percent of the total project cost.

1.21 	Sec. 2. APPROPRIATION; FREIGHT RAILROAD PRESERVATION AND 
1.22 	IMPROVEMENT GRANTS.
 2.1 	$4,500,000 in fiscal year 2017 is appropriated from the general fund to the 
2.2 	commissioner of transportation for freight railroad preservation and improvement grants 
2.3 	under Minnesota Statutes, section 222.50, subdivision 6a. Notwithstanding Minnesota 
2.4 	Statutes, section 16A.28, this appropriation is available for three years after the year of 
2.5 	appropriation.