The Federal Railroad Administration (FRA) has issued a final rule governing eligibility requirements and selection criteria for capital grants provided under the Rail Line Relocation and Improvement program created through SAFETEA-LU.

To be eligible for grant funding, a project must mitigate rail traffic's adverse effects on a community, safety or motor vehicle traffic flow, or involve a lateral or vertical relocation of any portion of a rail line.

Half of all grant funds are reserved for projects costing $20 million or less. A state or other eligible entity will be required to pay at least 10 percent of a project's shared costs.

Congress has appropriated $20 million for the program in FY2008, with $5.2 million to be directed to nine projects. The FRA plans to issue a notice of funding availability later this year, after which the agency will accept applications for a competitive selection process for remaining program funds.