[Code of Federal Regulations]
[Title 49, Volume 4]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR266.7]

[Page 894-895]
 
                        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 
 
Sec.  266.7  Project eligibility.

    (a) Rail service continuation assistance, acquisition assistance and 
substitute service assistance. A project is eligible for assistance 
under Sec.  266.3(a) (1), (2), and (4) of this part, respectively, if:
    (1) The Commission pursuant to 49 U.S.C. 10903 has found since 
February 5, 1976, that the public convenience and necessity permit the 
abandonment and discontinuance of rail service on the line related to 
the project, except that any such line or related project eligible prior 
to October 1, 1978, is eligible only until September 30, 1981 and any 
such line eligible for rail service continuation assistance shall 
receive such assistance for no more than 36 months after October 1, 
1978;
    (2) The line related to the project was eligible for assistance 
under section 402 of the Rail Act (45 U.S.C. 762), except that any such 
line or related project is eligible only until September 30, 1981; or
    (3) For purposes of acquisition assistance, the line related to the 
project is

[[Page 895]]

listed for possible inclusion in a rail bank in Part III, Section C of 
the Final System Plan.
    (b) Rehabilitation and improvement assistance and rail facility 
construction assistance. A project is eligible for assistance under 
Sec.  266.3(a) (3) and (5) of this part, respectively, if:
    (1)(i) The Commission has not made a finding that the public 
convenience and necessity would require or permit abandonment or 
discontinuance of rail service on the line related to the project;
    (ii) Any pending application for a certificate of abandonment or 
discontinuance of rail service on the line related to the project is 
withdrawn within a reasonable period (as determined by the 
Administrator) following the execution of the grant agreement and before 
Federal funds are disbursed for the project; and
    (iii)(A) The line related to the project is certified by the 
railroad as having carried three million gross ton miles per mile or 
less during the prior year; or
    (B) The line related to the project is certified by the railroad in 
a written statement which identifies the name of the line, the State or 
States in which it is located, its length, termini, and termini mile 
posts as having carried between three and five million gross ton miles 
per mile during the prior year, and the Administrator has determined 
that the project is consistent with proposals made under the authority 
of subsections 5 (a) through (e) of the Act (49 U.S.C. 1654 (a)-(e));
    (2)(i) An application for a certificate of abandonment or 
discontinuance of rail service on the line related to the project has 
been filed with the Commission during the period February 5, 1976 
through December 31, 1978, whether or not such application has been 
granted; or
    (ii) During the period February 5, 1976, through December 31, 1978, 
the Commission has found that the public convenience and necessity would 
require or permit abandonment or discontinuance of rail service on the 
line related to the project irrespective of when the application was 
filed;
    (3) The line related to the project is listed for possible inclusion 
in a rail bank in Part III, Section C of the Final System Plan; or
    (4) The line related to the project was eligible to be acquired 
under section 402(c)(3) of the Rail Act (45 U.S.C. 762(c)(3)).
    (c) Projects eligible under paragraphs (b)(2), (b)(3), and (b)(4), 
of this section are eligible only until September 30, 1981. Projects 
initially eligible under paragraph (b)(2) of this section, may 
subsequently become eligible under paragraph (b)(1) of this section, if 
the Commission issues a new certificate of public convenience and 
necessity with respect to the line related to the project.