(a) Purpose. Transportation Code, Chapter 91, authorizes the department to acquire abandoned rail facilities. In establishing criteria for the department's acquisition of abandoned rail facilities, the commission is required to consider the local and regional economic benefit realized from the disbursement of funds in comparison to the amount of the disbursement. This section prescribes policies and procedures for the department's acquisition of abandoned rail facilities.
(b) Public involvement.
  (1) On receipt of a notice of intent to abandon or discontinue service, the department shall coordinate with the governing body of any municipality, county, or rural rail transportation district in which all or a segment of the rail facility is located to determine whether:
    (A) the department should acquire the rail facility; or
    (B) any other actions should be taken to provide for continued rail transportation service.
  (2) The department shall request that a municipality, county, or district in which all or a segment of the rail facility is located provide documentation concerning the local and regional economic impact of an abandonment or discontinuance of service.
  (3) If the department determines that there is a need to preserve the rail facility for continued rail service, or to preserve the corridor for another public-use condition under 49 C.F.R. §1152.28, it will notify the municipalities, counties, or districts in which all or a segment of the rail facility is located, and will conduct one or more public hearings to receive public comment on the proposed acquisition.
  (4) In making a determination under subsection (c) of this section, the department will consider:
    (A) information contained in the notice of intent to abandon or discontinue service and any application for abandonment or discontinuance of service filed with the Surface Transportation Board with respect to that rail facility under 49 C.F.R. Part 1152, including the extent of any service performed on the rail line; and
    (B) information provided by a municipality, county, or district concerning the economic impact of an abandonment or discontinuance of service.
  (5) The department will hold at least one public hearing within at least one of the counties in which the rail facility is located and will file a notice of each hearing with the Secretary of the State for publication in the Texas Register.
(c) Criteria. In approving the acquisition of an abandoned rail facility, the commission will consider:
  (1) service performed on the rail line in the two years preceding the date of the notice of intent to abandon or discontinue service;
  (2) comments or other evidence in support of or opposition to the proposed abandonment or discontinuance of service received from interested parties;
  (3) alternate sources of transportation services available, including alternate sources of rail transportation service;
  (4) impact of the proposed abandonment or discontinuance of service on the operation of the state transportation system;
  (5) local and regional economic impact of the abandonment or discontinuance of service;
  (6) viability of the rail line for continued rail transportation service; and
  (7) the extent to which the monetary value of the economic benefits attributable to the acquisition exceed the amount of funds disbursed by the department to acquire the rail facility.

Source Note: The provisions of this §7.22 adopted to be effective January 5, 2006, 30 TexReg 8991; amended to be effective April 1, 2011, 36 TexReg 1690