Rail Industrial Access (RIA) Program

The Rail Industrial Access (RIA) Program, administered by the Virginia Department of Rail and Public Transportation (DRPT), is a state-funded initiative designed to enhance the Commonwealth's freight rail infrastructure by supporting new or expanding business connections to the freight rail network. Operating under the broader mission of DRPT to foster a resilient, multimodal transportation system, the RIA program facilitates economic growth by enabling businesses to access rail services, thereby reducing the strain on the state's highway system and promoting environmentally sustainable freight movement:contentReference. The RIA program provides financial assistance of up to $750,000 per project, requiring a 30 percent cost share from the applicant. This cost-sharing model underscores the program's public-private partnership approach, leveraging state resources to catalyze private investment in rail infrastructure. Eligible activities under this grant include engineering, site preparation (such as grading and drainage), track construction, track rehabilitation and improvements, environmental mitigation, and the installation of mainline railroad switches. Importantly, all expenditures must be tied to facilities that generate revenue carloads, reinforcing the program’s focus on operational and economic impact. Applicants eligible for the RIA program include business, commercial, and industrial enterprises, as well as municipal and county governments and local economic development departments acting on behalf of such enterprises. Railroads may also apply directly. Projects involving relocation of utilities, right-of-way acquisition, ongoing operation or maintenance costs, storage tracks, or track rail weighing less than 115 pounds per yard are explicitly ineligible. Notably, any project work that begins before a formal agreement is executed and a Notice to Proceed is issued by DRPT is not eligible for funding unless a Letter of No Prejudice (LONP) has been granted:contentReference. The RIA program features a rolling application process, allowing submissions throughout the year to accommodate the dynamic business environment of Virginia. Applications are submitted through DRPT's WebGrants system, which manages the full grant lifecycle from application to reimbursement. Each application undergoes a three-step review process: eligibility determination, scoring, and recommendation to the Commonwealth Transportation Board (CTB). Projects are evaluated using criteria such as the number of new carloads supported, employment impact, private capital investment, jurisdictional unemployment rate, involvement of local or state economic development entities, and long-term viability of rail connections. Once approved by the CTB, grant agreements are developed in coordination with the Office of the Attorney General. These agreements outline the terms and conditions, including project scope, schedule, budget, and compliance requirements. A limited Notice to Proceed may be issued for preliminary planning, followed by a full Notice to Proceed for construction once bids and supporting documentation are reviewed. The program is reimbursement-based, and RIA grantees may only submit one claim at the end of construction, including documentation of total capital investment and job creation outcomes. Post-completion, award recipients must report rail activity (annual carloads) for three years. This period may be extended to meet contractual obligations. Additionally, DRPT retains a contingent interest in project improvements for 15 years to ensure continued service and benefit from the public investment. Any sale, transfer, or significant change to project infrastructure during this time must be approved by DRPT. For detailed program guidance, applicants can consult the “Rail Grant Programs Funding & Procedures” document (also known as the Teal Book) and reach out via email at [email protected].

Ensure project supports new or expanded carload activity; secure required local resolution; submit bids and capital investment/job projections to strengthen scoring.