MN HF3980

Establishes a freight rail economic development program jointly administered by the commissioners of transportation and employment and economic development to provide financial assistance awards to eligible recipients for rail freight projects.

Creates a freight rail account in the special revenue fund funded by transfers from the rail service improvement account (effective June 30, 2018) and proceeds from disposition of railroad property, with funds annually appropriated for financial assistance and prohibited from covering administrative costs.

Limits financial assistance awards to a maximum of 85 percent of total project costs when combined with other state funding, and requires balanced distribution of funds throughout the state by geographic location and number of projects.

Establishes eligibility for Class II and Class III railroads, rail users, and political subdivisions to receive funding for capital improvements, rehabilitation projects, industrial park development, and highway-rail grade crossing improvements that improve safety, efficiency, or capacity of freight movement.

Prohibits the commissioner from establishing engineering standards more restrictive than federal track safety standards under Code of Federal Regulations title 49, part 213, and exempts rail facilities and buildings from state building code requirements under sections 16B.30 to 16B.355.