That is as local as it gets around here. We don’t have subways or street cars, it’s either busses (diesel) or train (motor coach actually) for even single digit km distances.
But yeah, it is real rail, not some separate local network.
Uh, appparently only 61% of German train lines are electrified. I know of at least 2 heavily used lines that aren't (so far). One is the connection Basel towards Bodensee, the Hochrheinbahn. Another is Ringzug.