NC H975

Establishes a Special Economic Development Fund for Rail within the Department of Transportation, administered by the Division of Rail, to fund rail construction, improvements, industry rail connections, railcar and locomotive acquisition, and railyard construction.

No more than 60% of annual fund allocations may be used for state matching funds on federal grant applications, and no more than 30% may be used for project preparation activities like preliminary engineering and due diligence.

Allocations must be awarded competitively to rail projects independently determined to increase capital investment, jobs, and revenue, with awards based on greatest projected economic impact after consultation with the Department of Commerce.

Department may use no more than 3% of the fund for administrative costs, and unexpended appropriated funds shall not revert to the General Fund.

Appropriates $100,000,000 in nonrecurring General Fund money to the Special Economic Development Fund for Rail, with an initial implementation report due by March 1, 2025, and annual reports thereafter by December 1.