Authority: Title 33.1, Code of Virginia.

A.  The Commonwealth Transportation Board shall operate a program entitled the Shortline Railway Preservation and Development Program in accordance with § 33.1-221.1:1.2, Code of Virginia.   Using transportation revenues generally available to the Board, funds shall be appropriated as determined by the Board to designated transportation projects in addition to funds allocated pursuant to § 33.1-23.1, Code of Virginia.  Total Shortline Rail Preservation funding for the Shortline Railway Preservation and Development Fund shall not exceed $3,000,000 the first year and $3,000,000 the second year.  For the purpose of this section and program, a shortline railroad is any Class II or Class III railroad as defined by the Surface Transportation Board.  Projects undertaken by the Board pursuant to this section shall be to acquire, lease, improve, or assist other appropriate entities to acquire, lease, or improve shortline railways for freight and passenger rail transportation purposes which the Board determines are for the common good of the Commonwealth or any region of the Commonwealth.

B.  The Department shall report to the Chairmen of the Senate Finance and House Appropriations Committees on the transportation project authorized under the Virginia Transportation Act of 2000 to provide passenger rail service between the Cities of Bristol and Richmond, and Washington, D.C.  In addition to the project's status, the Department shall include revised information on capital and operating costs, potential revenue of such passenger service, and the project's potential benefits to alleviate congestion on the state's Interstate and highway system of roads.  The report shall be submitted by January 2, 2007.