TITLE 43. TRANSPORTATION
PART 1. TEXAS DEPARTMENT OF TRANSPORTATION
CHAPTER 7. RAIL FACILITIES
SUBCHAPTER
H.
The Texas Department of Transportation (department) adopts the new §§7.160 - 7.173; concerning the Short Line Railroad Improvement State Fund Program. The new §§7.160 - 7.173 are adopted without changes to the proposed text as published in the May 15, 2026 issue of the Texas Register (51 TexReg 3360) and will not be republished.
EXPLANATION OF ADOPTED NEW SECTIONS
New §§7.160 - §7.173, contained in new Subchapter H of Chapter 7, describe the policies and procedures for the implementation and administration of the Short Line Railroad Improvement State Fund Program ("program") as authorized by Senate Bill (S.B) 2366, 89th Legislature, Regular Session, 2025 and codified as Transportation Code, §201.981.
New §7.160, Purpose, states the purpose of the new subchapter.
New §7.161, Definitions, defines the terms used in the new subchapter.
New §7.162, Program Eligibility, sets criteria a project must meet to be eligible for the program. This includes the statutory criteria that the project must (1) be for the replacement of short line railroad tracks or bridges, the improvement of short line rail capacity, or the restoration of short line railways, (2) increase public safety, enhance economic development, or reduce traffic, and (3) be sponsored by a rural rail district that owns or operates the short line railroad and has authority to undertake the project and to enter the required grant agreement. In order to maximize efficiency and use of available funds, the project must also constitute a logical, self-contained unit of work that can be constructed as an independent project whether it is proposed as an independent project or as a part of a larger transportation project.
New §7.163, Funding and Eligible Costs, sets the allowable costs under the program. To maximize use of funding, allowable costs are limited to direct costs of eligible projects, including planning, detailed design activities, environmental, right of way acquisition, and utility adjustments. Elements that do not qualify for grant funds may be included in the project, but must be funded with non-program funds.
New §7.164, Non-State Funding Match, addresses the statutory requirement that at least 10% of total project costs must be provided by a source other than the state as matching funds, or, if the grant funds are to be used as matching funds for another grant, at least 10% of the amount used as matching funds must be provided by a source other than the state. The standard policies apply that the matching funds must be provided before the work begins and donated services may be used to reduce the cost of the project but do not constitute matching funds.
New §7.165, Call for Project Nominations, provides that projects will be selected through a competitive process in order to make the best use of available funding. If funding is available, a program call describing the required application contents will be published in the Texas Register.
New §7.166, Nomination Package, requires a project sponsor to submit project nominations in the form prescribed by the department. A complete nomination package must be received by the department by the deadline, or it will be deemed ineligible.
New §7.167, Project Evaluation Committee, requires the executive director to appoint a project evaluation committee consisting of department staff to make recommendations for the selection of projects funded under the program.
New §7.168, Nomination Screening, requires the project evaluation committee to screen each nominated project to determine its eligibility under statutory and regulatory requirements. It provides for notification if a project is found ineligible and for an appeals process.
New §7.169, Project Evaluation, requires the project evaluation committee to evaluate the benefits of eligible applications based on statutory requirements, the goals of the program, and specific selection criteria set forth in the program call. The department will provide the evaluation criteria with each program call.
New §7.170, Project Selection and Approval, requires the project evaluation committee to make recommendations for project selection to the department's Railroad Division director. The division director will make a final recommendation of selected projects to the Texas Transportation Commission (commission) for approval.
New §7.171, Project Implementation, requires the project sponsor and applicable railroad to comply with all applicable laws and regulations, including all applicable state procedures, requirements, and standards and specifications. An agreement between the state and the project sponsor is required, which must include the responsibilities and duties of the parties, local match funding commitment, the scope and course of the project, and the maximum amount of available funding.
New §7.172, Elimination of Project from the Program, provides the department's executive director criteria for eliminating a project after selection. A project may be eliminated from the program if a project sponsor does not meet the requirements of the program, if a project sponsor chooses to withdraw, if significant deviations from the approved scope of work would be required, if construction has not been initiated within three years of project selection, or if the required agreement is not signed within one year after project selection.
New §7.173, Reporting to the Commission, requires the department to submit to the commission annually a report regarding project nominations and selected projects.
COMMENTS
No comments on the new §§7.160 - 7.173 were received.
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §201.981, which requires the commission to adopt rules as necessary to implement that section.
The authority for the adopted amendments is provided by S.B. 2366, 89th Regular Session 2025. The primary authors of that bill are Senators Bryan Hughes and Angela Paxton, and the primary sponsor of that bill is Representative Cole Hefner.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Transportation Code, §201.981
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on July 30, 2026.
TRD-202603229
Becky Blewett
Deputy General Counsel
Texas Department of Transportation
Effective date: August 19, 2026
Proposal publication date: May 15, 2026
For further information, please call: (512) 486-5230
CHAPTER 30. AVIATION
SUBCHAPTER
C.
The Texas Department of Transportation (department) adopts the amendments to §§30.202, 30.203, 30.206, and §30.210 concerning aviation facilities development and financial assistance. The amendments to §§30.202, 30.203, 30.206, and §30.210 are adopted without changes to the proposed text as published in the May 15, 2026 issue of the Texas Register (51 TexReg 3363) and will not be republished.
EXPLANATION OF ADOPTED AMENDMENTS
House Bill 4520, 89th Legislature, Regular Session, 2025 amended §21.105(b), Transportation Code, to provide that for a loan or grant for an airport located in an economically disadvantaged county, 5% of the total project cost, rather than 10%, must be provided by sources other than the state. The bill also repealed §21.114(b) of the Transportation Code, which results in the declaration that the department serves as the agent for federal funds for general aviation airports, including reliever airports. The Federal Aviation Administration no longer funds reliever airports separately from general aviation airports. H.B. 4520 brings the statute in line with the State Block Grant Program agreement.
Amendments to §30.202, Scope of the Rules, remove "nonreliever," with the effect that Chapter 30, Subchapter C, applies for all general aviation airports in accordance with the amendments made by H.B. 4520.
Amendments to §30.203, Definitions, delete the operative provisions in the definition of "grant." Those provisions are moved to §30.206, which provides the requirements applicable to grants and loans. The amendments also make a nonsubstantive clarifying grammatical change in paragraph 14 of the section.
Amendments to §30.206, Amount of Grant or Loan, move the matching requirements for grants from the definition of grant and modify those requirements in accordance with the changes in law made by H.B. 4520. The provision allows the Texas Transportation Commission (commission) to award a grant of up to 95% of eligible project costs if the airport is located in an economically disadvantaged county. The amendments also make nonsubstantive clarifying grammatical changes in subsections (a) and (d) of the section.
Amendments to §30.210, Intergovernmental Agreements, substitute a reference to §30.206 in the description of the terms and conditions of intergovernmental agreements in the place of the percentage numbers that set the limits of matching requirements for financial assistance, as expressed in §30.206. The substitution eliminates redundancy and the potential for discrepancy between the percentages in the two sections. The amendments also make nonsubstantive clarifying grammatical changes in subsections (b)(4), (d)(9), and (e) of the section.
COMMENTS
No comments on the proposed amendments were received.
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department.
The authority for the adopted amendments is provided by H.B. 4520, 89th Regular Session, 2025. The primary author and the primary sponsor of that bill are Representative Armando Martinez and Senator Robert Nichols, respectively.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Transportation Code, Chapter 21, Subchapter C
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on July 30, 2026.
TRD-202603230
Becky Blewett
Deputy General Counsel
Texas Department of Transportation
Effective date: August 19, 2026
Proposal publication date: May 15, 2026
For further information, please call: (512) 416-4500
SUBCHAPTER
F.
The Texas Department of Transportation (department) adopts the amendments to §30.502 and §30.503 concerning Meteorological Evaluation Towers. The amendments to §30.502 and §30.503 are adopted without changes to the proposed text as published in the May 15, 2026 issue of the Texas Register (51 TexReg 3367) and will not be republished.
EXPLANATION OF ADOPTED AMENDMENTS
House Bill (H.B.) 2898 89th Legislature, Regular Session, 2025 amended Transportation Code, §21.071, relating to the requirements for certain meteorological evaluation towers.
Amendments to §30.502, Definitions, change the definition of "meteorological evaluation tower" by increasing the diameter at the base of a structure included within the definition from 6 to 12 feet and add a definition of "military aviation training facility."
Amendments to §30.503, Notice and Registration, reflect that not later than the 30th day after the date the department receives notice of a person's intent to erect a meteorological evaluation tower under §30.502, the department will notify each federally owned or operated radar installation or military aviation training facility in this state whose boundaries are within 50 nautical miles of the tower, the county judge of each county in this state that contains a radar installation or military aviation training facility, and the county judge of each county in this state within 25 miles of a radar installation or military aviation training facility.
FISCAL NOTE
Stephen Stewart, chief financial officer, has determined, in accordance with Government Code, §2001.024(a)(4), that for each of the first five years in which the proposed rules are in effect, there will be no fiscal implications for state or local governments as a result of the department's or Texas Transportation Commission's (commission) enforcing or administering the proposed rules.
COMMENTS
No comments on the proposed amendments were received.
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §21.071, which requires the department to adopt rules related to the notice and registration of meteorological evaluation towers.
The authority for the adopted amendments is provided by H.B. 2898, 89th Regular Session, 2025. The primary author and the primary sponsor of that bill are: Representative James Frank and Senator Brent Hagenbuch, respectively.
CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING
Transportation Code, §21.071
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on July 30, 2026.
TRD-202603231
Becky Blewett
Deputy General Counsel
Texas Department of Transportation
Effective date: August 19, 2026
Proposal publication date: May 15, 2026
For further information, please call: (512) 416-4500