(1) Provide operating subsidy grants to railroad companies, transportation organizations or municipalities to defray, or assist in defraying, the net deficit incurred by such entities in providing essential rail freight transportation services within the Commonwealth.

(2) Provide grants to railroad companies, transportation organizations, railroad users or municipalities to defray, or assist in defraying, the cost of accelerated maintenance projects performed on rail lines within the Commonwealth.

(3) Undertake capital projects and to provide and administer capital project grants to railroad companies, transportation organizations, railroad users or municipalities. The department shall not operate or provide directly rail freight transportation services on its own rail lines or on lines owned by others, nor shall a capital project be undertaken in order to enable the department to provide directly rail freight transportation services. Notwithstanding the provisions of sections 302 and 303 of the act of February 9, 1999 (P.L. 1, No. 1),¹ known as the Capital Facilities Debt Enabling Act, the department is authorized to make grants for capital projects up to $250,000 without authorization or itemization in an approved capital budget.

(4) Acquire by purchase, lease, eminent domain proceedings, gift or otherwise, all and any property, in such estate as determined by the secretary, for promoting the purposes of this act, including the property of a public utility. All municipalities and corporations are hereby authorized to donate property to the department. Eminent domain proceedings shall be in accordance with the act of June 22, 1964 (Sp.Sess., P.L. 84, No. 6),² known as the Eminent Domain Code, and the department is empowered to join with any municipality or transportation organization in obtaining any property through the eminent domain proceedings.

(5) Undertake research, studies, analysis and planning, to make grants to railroad companies, transportation organizations and municipalities for research, studies analysis and planning, relating to any phase of rail freight transportation services, systems and facilities, including the management, operation, capital requirements and economic feasibility thereof, and any preparation of engineering and architectural surveys, plans and specifications and other similar activities preliminary to and in preparation for construction, acquisition or improved operation of rail freight transportation services, systems and facilities within the Commonwealth.

(6) Undertake demonstration projects and to make grants to railroad companies, transportation organizations and municipalities for demonstration projects, including the development, testing and demonstration of new facilities, equipment, techniques and methods of providing rail freight transportation services, systems and facilities within the Commonwealth.

(7) Undertake marketing activities and to make grants to railroad companies, transportation organizations and municipalities for marketing activities designed to foster the fullest and most efficient utilization of rail freight transportation services, systems and facilities within the Commonwealth. Marketing activities may be undertaken by contract with the department or by subcontract with a grantee of the department, upon approval of the subcontract by the secretary.

(8) Undertake audits of any project being financially assisted by the department. The department may hire outside auditors to perform such functions or may direct its grantees to engage such auditors and include the expense thereof as an eligible program cost.

(1) A responsible level of local financial participation, to be determined by the department, shall be required for each category of project authorized by this section.

(2) A grant shall be made only upon application filed by a grantee reviewed and approved by the department. No grant shall exceed the amount requested by a grantee. An amended grant request need not be filed by a grantee where a proposed contract amendment does not exceed the amount previously requested.

(3) A grant may be made with reference to any appropriate project regardless of when it was first commenced or considered and regardless of whether the costs with respect thereto shall have been incurred prior to the time the project is undertaken or the project grant is applied for or made. In the case of a project involving accelerated maintenance or rehabilitation, grants shall be made by the department only after receipt of satisfactory documentation concerning the condition of the rail facilities involved before and after the accelerated maintenance or rehabilitation. Where the department contracts for a grant based upon estimated costs, payments may be made thereunder prior to the time costs are actually incurred, however, the department shall adjust the payments under any agreement before the end of the fiscal year involved, based upon the most recent available actual data.

(3.1) Any grant made for purposes of accelerated maintenance projects or capital projects shall continue for two fiscal years and shall not lapse at the end of the fiscal year in which that grant was awarded.

(4) No agreement shall impair, suspend, contract, enlarge or extend or affect in any manner the powers of the Pennsylvania Public Utility Commission, the Interstate Commerce Commission or any other regulatory agency having jurisdiction over rail freight transportation services, systems and facilities.