1. (a) Compliance with the following criteria shall increase the priority standing of an application for a loan guarantee:

   1. (1) the rail lines affected have less than 5,000,000 gross tons per mile annually;
   2. (2) the application demonstrates a higher benefit-to-cost ratio than the minimum ratio required by statute and regulation;

   3. (3) the application demonstrates that operations will be made more efficient by raising the minimum operating speed to one of the following F.R.A. classes:

      1. (A) F.R.A. class one to F.R.A. class two; or
      2. (B) F.R.A. class two to F.R.A. class three;
   4. (4) the application demonstrates a positive statewide or regional economic impact;
   5. (5) the application demonstrates that the project for which funding is sought will result in road or highway maintenance cost savings for state and local governmental entities;
   6. (6) the application describes the tangible assets of and the net worth of the applicant; and
   7. (7) the application demonstrates the commitment of capital, or the guarantee of a set amount of rail traffic by local shippers, governmental entities or other interested parties, to the applicant for the continued operations of rail service for which a loan guarantee is sought.

(Authorized by K.S.A. 1995 Supp. 75-5050 and 75-5046; implementing K.S.A. 75-5040; effective Aug. 30, 1993; amended July 11, 1997.)