§ 489-v. Capital improvements to railroad property. 1. As used in this
section:

(a) "Completed capital project" shall mean a capital project which has
been certified by the commissioner to be completed in accordance with a
capital project proposal approved by the commissioner.

(b) "Capital project proposal" shall mean a proposal, prepared by a
railroad company and submitted to the commissioner, which sets forth a
proposed capital project. Such proposal shall include a description of
the proposed capital project and conditions relating to railroad tracks,
roadbeds, bridge and structural improvements, improvements to railroad
yards, switches, sidings, or other facilities, signal system
improvements, or other railroad projects that improve the efficiency,
capacity, or safety of railroad facilities. The proposal shall be
reviewed by the commissioner and shall be approved if the commissioner
determines that the proposed project is consistent with the provisions
of paragraph (e) of this subdivision and rules and regulations
prescribed by the department pursuant to this section. Capital project
proposals that have been approved by the commissioner may be amended
with the approval of the commissioner.

(c) "Commissioner" shall mean the commissioner of the New York state
department of transportation.

(d) "Department" shall mean the New York state department of
transportation.

(e) "Capital project" shall mean a construction project which shall
modify railroad facilities to substantially improve the efficiency,
capacity, or safety of railroad freight or passenger transportation, as
determined by the commissioner, in one or more of the following manners:

(i) a substantial enhancement in rail freight or passenger
transportation performance, such as upgrading the class of the railroad
track as track classes are defined in the track safety standards of the
United States department of transportation;

(ii) the construction of significant new facilities for rail freight
or passenger transportation, such as the construction of new railroad
lines, additional tracks along existing lines, sidings, structures,
yards, stations, signal systems or switching facilities, and intermodal
facilities, including, but not limited to, automotive, bulk transfer,
trailer on flatcar, container on flatcar, and reload facilities; and

(iii) major renovations to or expansions of components of railroad
infrastructure, such as the reconstruction of bridges or the increase in
bridge capacity, the expansion of railroad yards, or the substantial
improvement of the technology or safety of signal systems.

2. (a) A railroad company shall propose a capital project to the
commissioner for approval under this section on forms prescribed by the
department. The commissioner shall approve capital project proposals
that are consistent with the terms of this section and rules and
regulations prescribed by the department. The commissioner shall notify
the submitting railroad company within thirty days of receipt of a
proposal whether or not the commissioner considers the proposal to be
consistent with the definition of a capital project as set forth in
paragraph (e) of subdivision one of this section.

(b) Upon a railroad company's completion of the construction of a
capital project, such railroad company may make application to the
commissioner for certification under this section on forms prescribed by
the department. If the commissioner finds that such capital project was
completed in accordance with, and is in compliance with, an approved
capital project proposal, the commissioner is authorized to forward a
certificate of approval to the property owner thereof, with the approved
capital project proposal for the completed capital project.

(c) The department is hereby authorized to adopt and promulgate rules
and regulations necessary for the implementation of this section. Such
regulations may relate to the nature and content of eligible capital
projects, approved capital project proposals, certifications and notices
issued by the commissioner, and completed capital projects. Rules and
regulations relating to capital projects and approved capital project
proposals or amendments thereto may provide for alternative or
contingent terms based on the scope and nature of the capital project.

(d) This section shall apply to any certified completed capital
project. The obligations and benefits of this section shall devolve
upon the property owner and the heirs, successors, and assigns thereof,
as the case may be.

3. (a) Whenever any alteration of a completed capital project is
proposed during the period of exemption pursuant to section four hundred
eighty-nine-d or four hundred eighty-nine-dd of this article in a manner
that would reduce the utility of the completed capital project, the
property owner shall give not less than sixty days notice to the
commissioner in a manner and upon such form as shall be prescribed by
the department. Such notice shall include information as to the location
and nature of such proposed alteration.

(b) The commissioner shall, in response to a notice from a property
owner or on the commissioner's own initiative, after notice and hearing,
issue a notice of revocation of the certificate of approval issued
pursuant to this section for any completed capital project whenever the
commissioner finds that:

(i) any completed capital project or portion thereof is not maintained
or is converted to a use which precludes the use of the improvement for
common carrier railroad use; or

(ii) the property owner fails to give notice of a proposed alteration
of such completed capital project pursuant to paragraph (a) of this
subdivision; or

(iii) the property owner fails to comply with the terms of the
approved capital project proposal for such improved property.

4. Any determination made pursuant to this section shall be binding
upon the commissioner in any calculation pursuant to this title or title
two-B of this article.