(a) The board shall provide a state oversight report to the governor and the legislature before undertaking

1. (1) expansion, reduction, or diversification of services provided by the railroad upon the date of transfer or as provided under this chapter that the board determines would represent a significant and permanent change in the level and nature of services provided; or
2. (2) an application for an appropriation to be used for providing any service that is not self-sustaining.

(b) The report under (a) of this section shall be in writing, describe the proposed undertaking in detail, and specify

1. (1) its financial impact on the corporation;
2. (2) its impact on the level and nature of services provided by the corporation;
3. (3) the reasons the action is necessary or desirable to achieve the purposes of this chapter;
4. (4) whether and when the undertaking or service is expected to be self-sustaining financially; and
5. (5) if the undertaking requires an appropriation to be used for providing a service that is not self-sustaining, that the amount of the appropriation has been strictly calculated in accordance with United States Surface Transportation Board standards for determining rail service subsidies.