[Code of Federal Regulations]
[Title 49, Volume 4]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR266.13]

[Page 770-771]
 
                        TITLE 49--TRANSPORTATION
 
       CHAPTER II--FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF 
                             TRANSPORTATION
 
PART 266_ASSISTANCE TO STATES FOR LOCAL RAIL SERVICE UNDER SECTION 5 OF 
THE DEPARTMENT OF TRANSPORTATION ACT--Table of Contents
 
Sec. 266.13  Distribution of funds.

    (a) Formula. Funds appropriated for or reallocated in any fiscal 
year (in this section refered to jointly as ``funds'') are to be 
distributed to each State as follows:
    (1) Two-thirds of the funds will be allocated in the ratio which a 
State's rail mileage that, in accordance with 49 U.S.C. 10904(d), is 
either potentially subject to abandonment or is to become the subject of 
an application for a certificate of abandonment or discontinuance which 
a carrier plans to submit, but has not yet submitted, bears to the total 
such rail mileage in all the States;
    (2) One-third of the funds will be allocated in the ratio which a 
State's rail mileage for which the Commission has found within three 
years prior to the first day of the fiscal year for which the funds are 
being allocated that the public convenience and necessity permits the 
abandonment, or the discontinuance, of rail service on such rail 
mileage, bears to the total such rail mileage in all the States. Until 
September 30, 1981, such rail mileage includes the rail mileage which 
was eligible under the Rail Service Assistance Program pursuant to 
section 402 of the Rail Act, and all rail mileage which, prior to 
October 1, 1978, had been included for formula allocation purposes. The 
Administrator will calculate rail mileage under this paragraph as of 
October 1 of each year; and
    (3) The above calculations will be adjusted if necessary so that no 
State receives less than 1 percent of the funds appropriated for a 
fiscal year.
    (b) Reallocation. The Administrator will reallocate among the States 
funds which have not been granted under an executed grant agreement by 
the end of the fiscal year for which the funds were appropriated and 
funds determined by

[[Page 771]]

a Federal audit to be in excess of allowable costs when they have not 
been granted under an executed grant agreement by the end of the fiscal 
year in which the Federal audit is made. Reallocated funds are 
distributed in accordance with the allocation formula described in 
paragraph (a) of this section.
    (c) Interstate sharing of allocated funds. Where not in violation of 
State law, two or more States, which are eligible to receive assistance 
under the Rail Service Assistance Program pursuant to Sec. 266.5 of 
this part may combine any portion of their entitlements for purposes of 
conducting any eligible project of mutual benefit provided that they 
enter into an agreement for this purpose.