(A) Whenever the public safety, convenience, or necessity so requires, all operators of railroads which are now or hereafter shall be crossed at grade by a public highway shall construct and maintain grade crossings meeting the requirements of the authorities responsible for such highways. This shall apply to crossings necessary for new highways, as well as to crossings needed to replace existing crossings rendered obsolete or unnecessary by the relocation or improvement of existing highways or roads.

(B) The involved railroad shall be responsible for all costs associated with construction, modification, or relocation of rail-highway grade crossings when such construction, modification, or relocation results from projects initiated by the railroad. Such railroad-initiated projects shall include, but are not limited to, constructing a new line, adding an additional track to an existing line, and relocating an existing rail line.

(C) The public authority responsible for a highway crossing a railroad track or tracks shall reimburse the involved railroad for all costs that railroad incurs by virtue of construction, modification, or relocation of rail-highway grade crossings when such construction, modification, or relocation results from projects initiated by the public authority. A public authority is limited to the State Department of Transportation, which is required to reimburse the railroad for Department of Transportation authorized projects from within the funds appropriated to the Department of Transportation by the General Assembly. Such public authority-initiated projects are limited to constructing a new highway, widening an existing highway, and relocating an existing highway.