[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2306 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                S. 2306

 To reauthorize, restructure, and reform the intercity passenger rail 
                            service program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 8, 2004

Mr. McCain (for himself and Mr. Sununu) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To reauthorize, restructure, and reform the intercity passenger rail 
                            service program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rail Passenger Service 
Restructuring, Reauthorization, and Development Act''.

SEC. 2. TABLE OF CONTENTS; AMENDMENT OF TITLE 49, UNITED STATES CODE.

    (a) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Table of contents; amendment of title 49, United States Code.
            TITLE I--NETWORK RESTRUCTURING AND COST-SHARING

                       Subtitle A--Restructuring

Sec. 101. Findings, purpose, and goals.
Sec. 102. Passenger rail service restructuring.
Sec. 103. Definitions.
Sec. 104. Operating grants for corridor routes.
Sec. 105. Operating grants for long distance routes.
Sec. 106. Long distance route restructuring commission.
Sec. 107. Criteria for restructuring.
Sec. 108. Implementation of restructuring plan.
Sec. 109. Redemption of common stock.
Sec. 110. Retirement of preferred stock; transfer of assets.
Sec. 111. Real estate and asset sales; other.
                     Subtitle B--Northeast Corridor

Sec. 131. Interstate compact for the Northeast Corridor.
Sec. 132. Shut-down of commuter or freight operations.
Sec. 133. Capital grants for the Northeast Corridor.
                      Subtitle C--Related Matters

Sec. 151. Fair and open competition.
Sec. 152. Access to other railroads.
Sec. 153. Limitations on rail passenger transportation liability.
Sec. 154. Train operations insurance pool.
Sec. 155. Collective bargaining arrangements.
                       TITLE II--RAIL DEVELOPMENT

Sec. 201. Capital assistance for intercity passenger rail service.
Sec. 202. Regulations
                           TITLE III--REFORMS

Sec. 301. Management of secured debt.
Sec. 302. Employee transition assistance.
Sec. 303. Termination of authority for GSA to provide services to 
                            Amtrak.
Sec. 304. Amtrak reform board of directors.
Sec. 305. Limitations on availability of grants.
Sec. 306. Repeal of obsolete and executed provisions of law.
Sec. 307. Establishment of financial accounting system.
Sec. 308. Restructuring of long-term debt and capital leases.
Sec. 309. Authorization of appropriations.
    (b) Amendment of Title 49.--Except as otherwise expressly provided, 
whenever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or a repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of title 49, United States Code.

            TITLE I--NETWORK RESTRUCTURING AND COST-SHARING

                       Subtitle A--Restructuring

SEC. 101. FINDINGS, PURPOSE, AND GOALS.

    Section 24101 is amended to read as follows:
``Sec. 24101. Findings, purpose, and goals
    ``(a) Findings.--
            ``(1) It is in the public interest of the United States to 
        encourage and promote the development of various modes of 
        transportation and transportation infrastructure to efficiently 
        maximize the mobility of passengers and goods.
            ``(2) Despite Federal subsidies of nearly $27 billion over 
        the past 34 years, intercity rail passenger service still 
        accounts for less than 1 percent of all intercity travel.
            ``(3) Intercity rail passenger service can be competitive 
        with other modes of transportation and achieve a significant 
        share of the travel market in short-distance corridors 
        connecting metropolitan areas.
            ``(4) Rail passenger transportation can help alleviate 
        overcrowding of airways and airports, and can provide needed 
        intermodal connections to airports, bus terminals, and mass 
        transit services.
            ``(5) Corridor routes account for approximately 85 percent 
        of Amtrak's ridership but only one-third of Amtrak's operating 
        losses, excluding depreciation.
            ``(6) A number of Amtrak's long-distance routes may be more 
        efficiently operated and attract higher ridership as connected 
        corridors.
            ``(7) Long-distance routes that cannot be restructured as 
        connected corridors, do not receive State financial support, 
        cannot be operated on a for-profit basis, or are not an 
        essential link to the rest of the intercity passenger rail 
        network, should be consolidated or discontinued.
            ``(8) Some States with corridor services provide 
        significant financial support for such services, while other 
        States with routes and all States with long-distance routes 
        contribute nothing for such services. More equitable cost-
        sharing is needed to justify Federal investment in intercity 
        rail passenger service.
            ``(9) The need to invest taxpayer dollars in intercity rail 
        passenger service demands that fair and open competition be 
        permitted for the provision of such services to ensure that 
        service is provided in the most efficient manner without 
        jeopardizing the safety of such operations.
            ``(10) A greater degree of cooperation is necessary among 
        intercity passenger service operators, freight railroads, 
        State, regional, and local governments, the private sector, 
        labor organizations, and suppliers of services and equipment to 
        achieve the performance sufficient to justify the expenditure 
        of additional public money on intercity rail passenger service.
            ``(11) Transportation services provided by the private 
        freight railroads are vital to the economy and national defense 
        and should not be disadvantaged by the operation of intercity 
        passenger rail service over their rights-of-way.
            ``(12) The Northeast Corridor is a valuable resource of the 
        United States used by intercity and commuter rail passenger 
        transportation and freight transportation and should be 
        restored to a state of good repair.
    ``(b) Purpose.--The purpose of this part is to assist in the 
preservation and development of conventional and high-speed intercity 
rail passenger services where such services can play an important role 
in facilitating passenger mobility in the United States.
    ``(c) Goals.--The goals of this part are--
            ``(1) to move toward a national network of interconnected 
        short-distance passenger rail corridor services;
            ``(2) to return the Northeast Corridor to a state of good 
        repair;
            ``(3) to establish a framework for the development of new 
        conventional and high-speed rail services;
            ``(4) to allow for train services to be operated under 
        contract to a State or group of States, with the operator of 
        the service selected by the State or group of States;
            ``(5) to establish equitable cost-sharing for capital 
        expenses and operating losses with the States; and
            ``(6) to encourage greater participation in the provision 
        of intercity rail passenger services by the private sector.''.

SEC. 102. PASSENGER RAIL SERVICE RESTRUCTURING.

    (a) In General.--Chapter 243 is amended by inserting before section 
24301 the following:
``Sec. 24300. Restructuring mandate
    ``(a) In General.--Within 6 months after the date of enactment of 
the Rail Passenger Service Restructuring, Reauthorization, and 
Development Act, the Amtrak Reform Board shall restructure Amtrak as 2 
independent entities, as follows:
            ``(1) The national railroad passenger corporation.--One 
        entity shall be the National Railroad Passenger Corporation, 
        otherwise known as Amtrak, that shall provide overall 
        supervision of the restructuring of the intercity passenger 
        rail program.
            ``(2) The american passenger railway corporation.--The 
        other entity shall be a for profit corporation, to be known as 
        the American Passenger Railway Corporation, that shall be 
        responsible for conducting the passenger operations, 
        infrastructure maintenance, and related services, including 
        operation of reservation centers and ownership and maintenance 
        of rolling stock.
    ``(b) Articles of Incorporation and Other Documentation.--Within 6 
months after the date of enactment of the Rail Passenger Service 
Restructuring, Reauthorization, and Development Act, the Amtrak Reform 
Board shall--
            ``(1) file appropriate articles of incorporation under 
        State law for the American Passenger Railway Corporation; and
            ``(2) amend the articles of incorporation and bylaws of the 
        National Railroad Passenger Corporation to reflect its changed 
        functions and responsibilities.
    ``(c) Roles and Responsibilities of the American Passenger Railway 
Corporation.--
            ``(1) Railroad activities.--Consistent with the business 
        corporation law of the State of incorporation of the American 
        Passenger Railway Corporation, the Corporation shall be 
        qualified to undertake railroad activities of an operational or 
        infrastructure nature.
            ``(2) Rail operations and related functions.--The American 
        Passenger Railway Corporation--
                    ``(A) shall have the exclusive right, until October 
                1, 2005, to continue to provide the intercity passenger 
                services provided by Amtrak on the date of enactment of 
                the Rail Passenger Service Restructuring, 
                Reauthorization, and Development Act;
                    ``(B) shall, beginning October 1, 2005, operate 
                intercity passenger service only on a contractual basis 
                under negotiated terms and conditions;
                    ``(C) shall operate a national reservations system; 
                and
                    ``(D) subject to fulfillment of its contractual 
                obligations, shall have the exclusive right, until 
                management of the mainline of the Northeast Corridor 
                between Boston, Massachusetts, and Washington, District 
                of Columbia, is transferred to the interstate compact 
                created under section 131 or to another entity, to 
                provide the train operations, dispatching, maintenance, 
                and infrastructure services that are being provided by 
                Amtrak on the date of enactment of the Rail Passenger 
                Service Restructuring, Reauthorization, and Development 
                Act, but may provide such services beginning October 1, 
                2005, only on a contractual basis with the National 
                Railroad Passenger Corporation under negotiated terms 
                and conditions.
            ``(3) Status of corporation.--
                    ``(A) The American Passenger Railway Corporation--
                            ``(i) is a railroad carrier under section 
                        20102(2) and chapters 261 and 281 of this 
                        title;
                            ``(ii) shall be operated and managed as a 
                        for-profit corporation; and
                            ``(iii) is not a department, agency, or 
                        instrumentality of the United States Government 
                        nor a Government corporation (as defined in 
                        section 103 of title 5).
            ``(B) Chapter 105 of this title does not apply to the 
        American Passenger Railway Corporation, except that laws and 
        regulations governing safety, employee representation for 
        collective bargaining purposes, the handling of disputes 
        between carriers and employees, employee retirement, annuity, 
        and unemployment systems, and other dealings with employees 
        apply to the American Passenger Railway Corporation to the same 
        extent as they applied to Amtrak before the restructuring 
        required by this section.
            ``(C) Subsections (c), (d), and (f) through (l) of section 
        24301 of this title shall apply to the Corporation.
            ``(4) Chief executive officer.--Subject to further action 
        by the board of directors of the American Passenger Railway 
        Corporation, the individual who, on the date of enactment of 
        the Rail Passenger Service Restructuring, Reauthorization, and 
        Development Act, is President of Amtrak shall be offered the 
        position of chief executive officer of the American Passenger 
        Railway Corporation as soon as practicable after the 
        corporation is established.
            ``(5) Issuance of stock and assumption of debt.--The 
        Corporation may not issue stock or incur debt without the 
        express approval of the Secretary of Transportation.
``Sec. 24300A. American Passenger Railway Corporation board of 
              directors
    ``(a) In General.--
            ``(1) Membership.--The American Passenger Railway 
        Corporation shall be governed by a board of directors 
        consisting of 7 members appointed by the President, by and with 
        the advice and consent of the Senate.
            ``(2) Qualifications.--
                    ``(A) In general.--Members of the board shall be 
                chosen from among individuals who have technical 
                qualifications, professional standing, and demonstrated 
                expertise in the field of transportation, corporate 
                management, or financial management.
                    ``(B) Federal employees disqualified.--No 
                individual who is an officer or employee of the United 
                States may serve as a member of the board.
            ``(3) Term of office.--Each member shall serve for a term 
        of 5 years. An individual may not serve for more than 2 terms.
            ``(4) Quorum.--A majority of the board members who have 
        been lawfully appointed and qualified at any moment shall 
        constitute a quorum for the conduct of business.
    ``(b) Bylaws.--The board of directors shall adopt bylaws governing 
the corporation consistent with the provisions of this section and its 
articles of incorporation, and may amend, repeal, and otherwise modify 
the bylaws from time to time as necessary or appropriate.
    ``(c) Transition Board Members.--Individuals who are serving as 
members of the Amtrak Reform Board on the day before the date on which 
the American Passenger Railway Corporation is established, with the 
exception of the Secretary of Transportation, shall serve as members of 
the board of directors of the American Passenger Railway Corporation 
until 4 members of that board have been appointed and qualified.
``Sec. 24300B. National Railroad Passenger Corporation board after 
              restructuring
    ``(a) In General.--After the American Passenger Railway Corporation 
is established, the Reform Board established under section 24302(a) 
shall be dissolved, and the National Railroad Passenger Corporation 
shall be governed by a board of directors consisting of--
            ``(1) the Secretary of Transportation;
            ``(2) the Federal Railroad Administrator or another officer 
        of the United States within the Department of Transportation 
        compensated under the Executive Schedule under title 5, United 
        States Code, who is designated by the Secretary; and
            ``(3) the Federal Transit Administrator or another officer 
        of the United States within the Department of Transportation 
        compensated under the Executive Schedule under title 5, who is 
        designated by the Secretary.
    ``(b) Roles and Responsibilities.--
            ``(1) Supervision and management.--After the board of 
        directors described in subsection (a) takes office, the 
        National Railroad Passenger Corporation shall--
                    ``(A) provide overall supervision of the 
                restructuring of the intercity passenger rail program;
                    ``(B) manage residual Amtrak responsibilities; and
                    ``(C) retain and manage Amtrak's legal rights, 
                including its legal right of access to other railroads, 
                and ownership of Amtrak's real property, until that 
                property is transferred to the Secretary of 
                Transportation under section 110 of the Rail Passenger 
                Service Restructuring, Reauthorization, and Development 
                Act.
            ``(2) Contracts for service.--The National Railroad 
        Passenger Corporation shall, by contract, permit an operator to 
        provide intercity passenger rail service over any route 
        operated by Amtrak on the date prior to the date the 
        restructuring required by section 24300 becomes effective, at 
        the frequencies in effect on that date, on its behalf and to 
        use its right of access to any segment of rail line owned by 
        another rail carrier needed for the operation of that train. 
        The operator may be the American Passenger Railway Corporation 
        or another operator, but there shall be no more than 1 
        intercity passenger rail operator at a time over any segment of 
        rail line owned by another rail carrier, except in terminal 
        areas as determined by the Secretary or as may otherwise be 
        provided by agreement among the National Railroad Passenger 
        Corporation, the operators, and the owner of the rail line.
            ``(3) Use of amtrak name.--
                    ``(A) In general.--The National Railroad Passenger 
                Corporation shall retain all legal rights pertaining to 
                the name `Amtrak,' and may, at its option, license or 
                otherwise make the name `Amtrak' commercially available 
                in connection with intercity passenger rail and related 
                services.
                    ``(B) Use by american passenger railway 
                corporation.--Amtrak shall by contract, permit the 
                American Passenger Railway Corporation to market its 
                services under the Amtrak name.
            ``(4) Amtrak personnel.--All Amtrak employees shall become 
        American Passenger Railway Corporation employees unless 
        retained by the National Railroad Passenger Corporation. The 
        American Passenger Railway Corporation shall succeed to the 
        collective bargaining agreements in effect between Amtrak and 
        labor organizations that are in effect on the day before the 
date on which that Corporation is established. An employee who elects 
employment with National Railroad Passenger Corporation shall become an 
employee of that Corporation, with only such rights regarding pay and 
benefits as that Corporation shall determine.
            ``(5) Freight and commuter operations.--The National 
        Railroad Passenger Corporation shall ensure that the 
        implementation of the restructuring required by section 24300 
        gives due consideration to the needs of freight and commuter 
        operations that, as of the date of enactment of the Rail 
        Passenger Service Restructuring, Reauthorization, and 
        Development Act, operate on the Northeast Corridor using Amtrak 
        rights-of-way.
            ``(6) Rolling stock.--The National Railroad Passenger 
        Corporation shall set the terms under which the American 
        Passenger Railway Corporation must make available to any 
        replacement operator the legacy equipment associated with any 
        intercity passenger rail service provided as of the date of the 
        restructuring required by section 24300.''.
    (b) Spinning-Off of Reservations System.--Not later than 2 years 
after the date of enactment of the Rail Passenger Service 
Restructuring, Reauthorization, and Development Act, the Inspector 
General of the Department of Transportation shall submit to the 
Secretary of Transportation, the Senate Committee on Commerce, Science, 
and Transportation, and the House of Representatives Committee on 
Transportation and Infrastructure recommendations on the feasibility, 
advantages, and disadvantages of spinning off the national reservations 
system as a private for-profit entity.
    (c) Conforming Amendment.--The chapter analysis for chapter 243 is 
amended by inserting the following after the item relating to section 
24309:

``24300. Restructuring mandate.
``24300A. American Passenger Railway Corporation board of directors.
``24300B. Amtrak board after restructuring.''.

SEC. 103. DEFINITIONS.

    Section 24102 is amended--
            (1) by striking paragraph (2) and redesignating paragraphs 
        (3) through (9) as paragraphs (2) through (8), respectively;
            (2) by redesignating paragraphs (3) through (8), as 
        redesignated, as paragraphs (4) through (9), respectively, and 
        inserting after paragraph (2) the following:
            ``(3) `corridor route' means--
                    ``(A) a train route operated by Amtrak with a route 
                length of 750 miles or less as of January 1, 2004; or
                    ``(B) a new conventional or high-speed route 
                eligible for funding under chapter 244 of this 
                title.'';
            (3) by redesignating paragraphs (6) through (9), as 
        redesignated, as paragraphs (8) through (11), respectively, and 
        inserting after paragraph (5) the following:
            ``(6) `long distance route' means a train route operated by 
        Amtrak with a route length greater than 750 miles as of January 
        1, 2004.
            ``(7) `legacy equipment' means the rolling stock required 
        to provide intercity passenger rail service owned or leased by 
        Amtrak on the day prior to the date on which the restructuring 
        required by section 24300 is completed (as such date is 
        determined by the Secretary).''.

SEC. 104. OPERATING GRANTS FOR CORRIDOR ROUTES.

    (a) In General.--Chapter 243 is amended by adding at the end the 
following:
``Sec. 24316. Operating grants for corridor routes
    ``(a) In General.--
            ``(1) Operating grant authority.--Beginning on October 1, 
        2005, the Secretary of Transportation may make grants to States 
        for operating assistance under the authority of this section, 
        and not under any other provision of law, to reimburse 
        operators of the corridor routes operated by Amtrak on the day 
        before the date on which the restructuring required by section 
        24300 is completed (as determined by the Secretary) for a 
        portion of the operating subsidies required to operate those 
        routes with the same train frequencies.
            ``(2) Conditions.--A grant under this section shall be 
        subject to the terms, conditions, requirements, and provisions 
        the Secretary decides are necessary or appropriate for the 
        purposes of this section, including limitations on what 
        operating expenses are eligible for reimbursement.
    ``(b) Federal Share of Operating Losses.--
            ``(1) Reimbursable amount.--A grant to a State under this 
        section for any fiscal year may not exceed an amount equal to 
        the lower of--
                    ``(A) the applicable percentage of the Federal 
                operating subsidy for that fiscal year; or
                    ``(B) the percentage of the operating subsidy for a 
                route not borne by a State during the last fiscal year 
                ending before the date of enactment of the Rail 
                Passenger Service Restructuring, Reauthorization, and 
                Development Act.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage of the operating subsidy for a 
        fiscal year is--
                    ``(A) 70 percent for fiscal year 2006;
                    ``(B) 60 percent for fiscal year 2007;
                    ``(C) 50 percent for fiscal year 2008;
                    ``(D) 40 percent for fiscal year 2009; and
                    ``(E) 30 percent for fiscal year 2010.
    ``(c) Determination of Expenses Eligible for Reimbursement.--
            ``(1) Annual determination of subsidy.--On an annual basis, 
        the Inspector General for the Department of Transportation 
        shall analyze and advise the Secretary of Transportation as to 
        the operating subsidy required on each corridor route operated 
        by the American Passenger Railway Corporation under contract 
        with a State without competitive bid. The operating loss on 
        such routes shall--
                    ``(A) reflect the fully allocated costs of 
                operating the route, including an appropriate share of 
                overhead expenses, including general and administrative 
                expenses; and
                    ``(B) exclude depreciation and interest expense on 
                long-term debt.
            ``(2) Aggregation of northeast corridor profits and 
        losses.--Operating profits and losses on corridor routes 
        operated exclusively on the mainline of the Northeast Corridor 
        extending from Washington, D.C. to Boston, MA may be aggregated 
        for purposes of determining the operating subsidy required on 
        the routes.
            ``(3) Determination with competitive bidding.--Expenses 
        eligible for Federal support pursuant to paragraph (b)(2) for 
        reimbursement for a corridor route that has been competitively 
        bid shall consist of the operating subsidy agreed upon by the 
        State, group of States, or other entity and the operator.
    ``(d) Exception to Date Cost-Sharing Required.--For any State whose 
legislature has not convened in regular session after the date of 
enactment of the Rail Passenger Service Restructuring, Reauthorization, 
and Development Act and before October 1, 2005, the additional cost-
sharing requirements of this section shall become effective on October 
1, 2006.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $125,000,000 for fiscal year 2006;
            ``(2) $100,000,000 for fiscal year 2007;
            ``(3) $90,000,000 for fiscal year 2008;
            ``(4) $75,000,000 for fiscal year 2009; and
            ``(5) $50,000,000 for fiscal year 2010.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 243 is 
amended by adding at the end the following:

``24316. Operating grants for corridor routes.''.

SEC. 105. OPERATING GRANTS FOR LONG DISTANCE ROUTES.

    (a) In General.--Chapter 243, as amended by section 104, is amended 
by adding at the end the following:
``Sec. 24317. Operating grants for long distance routes
    ``(a) In General.--
            ``(1) Operating grant authority.--Beginning on October 1, 
        2005, the Secretary of Transportation may make grants to the 
        American Passenger Railway Corporation or to a State providing 
        financial support for a long distance route for operating 
        assistance under the authority of this section, and not under 
        any other provision of law, to reimburse operators of the long 
        distance routes operated by Amtrak on the day before the date 
        on which the restructuring required by section 24300 is 
        completed (as determined by the Secretary) for a portion of the 
        operating subsidies required to operate those routes with the 
        same train frequencies.
            ``(2) Conditions.--
                    ``(A) A grant under this section shall be subject 
                to the terms, conditions, requirements, and provisions 
                the Secretary decides are necessary or appropriate for 
                the purposes of this section, including limitations on 
                what operating expenses are eligible for reimbursement.
                    ``(B) The Secretary shall require the American 
                Passenger Railway Corporation, as a condition of a 
                grant under this section, to systematically reduce its 
                route and system-wide overhead expenses by a minimum of 
                5 percent annually through fiscal year 2010. A contract 
                between the National Railroad Passenger Corporation and 
                the American Passenger Railway Corporation for the 
                operation of a long distance route or routes must 
                provide for a reduction in the annual operating subsidy 
                to reflect the reduction in such expenses.
            ``(3) Annual determination of subsidy.--On an annual basis, 
        the Inspector General for the Department of Transportation 
        shall analyze and advise the Secretary of Transportation as to 
        the operating subsidy required on each long distance route 
        operated by the American Passenger Railway Corporation without 
        competitive bid and the portion of the subsidy attributable to 
        route and system-wide overhead expenses.
    ``(b) Federal Share of Operating Losses.--Pending restructuring of 
the long distance routes required by sections 106 through 108 of the 
Rail Passenger Service Restructuring, Reauthorization, and Development 
Act, the Federal share for an operating grant may be 100 percent of the 
qualifying operating subsidy for the route.
    ``(c) Cost-Sharing Process for Long Distance Routes.--Within 9 
months after the date of enactment of the Rail Passenger Service 
Restructuring, Reauthorization, and Development Act, the Secretary 
shall develop a process to facilitate State cost-sharing on long 
distance routes. The process shall--
            ``(1) provide States the option of either--
                    ``(A) receiving Federal grants, managing the 
                service, and selecting the train operator; or
                    ``(B) having the service managed by the Federal 
                Government with a train operator selected by the 
                National Rail Passenger Corporation;
            ``(2) include a methodology to assist States interested in 
        providing financial support in equitably allocating the share 
        of a route's required operating subsidy among the affected 
        States; and
            ``(3) be made available to the Long Distance Restructuring 
        Commission established under section 106 of the Rail Passenger 
        Service Restructuring, Reauthorization, and Development Act and 
        the States to assist in the development of the restructuring 
        plan under that section.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation to carry out this 
section--
            ``(1) $550,000,000 for fiscal year 2006;
            ``(2) $425,000,000 for fiscal year 2007;
            ``(3) $375,000,000 for fiscal year 2008;
            ``(4) $325,000,000 for fiscal year 2009; and
            ``(5) $300,000,000 for fiscal year 2010.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 243, as 
amended by section 104 of this Act, is amended by adding at the end the 
following:

``24317. Operating grants for long distance routes.

SEC. 106. LONG DISTANCE ROUTE RESTRUCTURING COMMISSION.

    (a) Establishment.--There is established an independent commission 
to be known as the Long Distance Route Restructuring Commission.
    (b) Duty.--
            (1) In general.--The Commission shall submit a plan to 
        Congress for restructuring long distance intercity passenger 
        rail routes in a manner that will reduce Federal operating 
        subsidies on the routes by at least 50 percent by the end of 
        fiscal year 2010 (as compared to the operating subsidies for 
        those routes for fiscal year 2003) by--
                    (A) retaining routes that provide a unique service 
                that can be contracted out by the National Railroad 
                Passenger Corporation on a for-profit basis;
                    (B) restructuring other routes as linked corridor 
                routes between major metropolitan areas; and
                    (C) consolidating or discontinuing service over 
                remaining routes.
            (2) Preservation of national network.--The restructuring 
        plan submitted by the Commission shall ensure that no corridor 
        route is completely isolated from the rest of the intercity 
        passenger rail network.
            (3) Exceptions.--
                    (A) In general.--A route will be excluded from 
                consideration for restructuring, consolidation, or 
                closure if a State or group of States commits, by 
                contractual arrangement with the American Passenger 
                Railway Corporation or another operator selected 
                through a competitive process, to provide financial 
                operating support at a level sufficient to offset at 
                least
                            (i) 30 percent of the operating subsidy for 
                        fiscal year 2007;
                            (ii) 40 percent of the operating subsidy 
                        for fiscal year 2008; and
                            (iii) 50 percent of the operating subsidy 
                        thereafter.
                    (B) Failure of support.--If a State or group of 
                States fails to provide the financial support to which 
                it committed under this paragraph, then service over 
                the route shall be discontinued.
            (4) Consultation required.--In carrying out its duties, the 
        Commission shall consult with the American Passenger Railway 
        Corporation, State and local officials, freight railroads, 
        companies with expertise in intercity passenger transportation, 
        and other organizations with an interest in the restructuring 
        of the long distance train routes.
    (c) Appointment.--
            (1) The Commission shall be composed of 7 members appointed 
        by the President within 6 months after the date of enactment of 
        this Act.
            (2) The Commission members shall elect 1 member to serve as 
        Chairman.
    (d) Termination.--The Commission shall terminate 90 days after the 
Commission's recommendations for consolidation and closure are 
submitted to Congress.
    (e) Vacancies.--A vacancy on the Commission shall be filled in the 
same manner as the original appointment.
    (f) Detailees.--Upon the request of the Chairman of the Commission, 
the head of any Federal department or agency may detail personnel of 
that department or agency to the Commission to assist the Commission in 
carrying out its duties.
    (g) Compensation; Reimbursement.--Members of the Commission shall 
serve without pay, but shall receive travel expenses, including per 
diem in lieu of subsistence, in accordance with sections 5702 and 5703 
of title 5, United States Code.
    (h) Other Authority.--
            (1) The Commission may procure by contract, to the extent 
        funds are available, the temporary or intermittent services of 
        experts or consultants pursuant to section 3109 of title 5, 
        United States Code.
            (2) The Commission may lease space and acquire personal 
        property to the extent funds are available.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated for the use of the Commission in carrying out its 
responsibilities under this section for each of fiscal years 2005 and 
2006, $4,000,000, such sums to remain available until expended.

SEC. 107. CRITERIA FOR RESTRUCTURING.

    (a) Restructuring as Linked Corridors.--
            (1) Prerequisite for restructuring.--A long distance route 
        or portion thereof may be recommended for restructuring as a 
        linked corridor if--
                    (A) the origin-to-destination travel time of each 
                corridor link in the new route, at conventional train 
                speeds, including all station stops, will be 
                competitive with other modes of transportation;
                    (B) each corridor link in the new route connects at 
                least 2 major metropolitan areas or provides a link 
                between 2 or more existing corridor routes;
                    (C) the route as restructured can be reasonably 
                expected to attract at least 10 percent of the combined 
                common carrier market in the markets served;
                    (D) the projected cash operating loss of each of 
                the restructured links does not exceed 11 cents per 
                passenger-mile on a fully allocated cost basis; and
                    (E) by the end of fiscal year 2010 the Federal 
                operating subsidy will be reduced by at least 50 
                percent (as compared to the operating subsidy for the 
                route for fiscal year 2003), taking into account 
                commitments by the affected States to provide financial 
                support for the route so that no Federal operating 
                subsidy is available for any portion of a route for 
                which there is no such State commitment.
            (2) Hours of operation.--In addition to the eligibility 
        criteria in paragraph (1), any long distance routes recommended 
        for restructuring as linked corridors shall be designed to 
operate between the hours of 6:00 a.m. and 11:00 p.m.
            (3) Modification of routes.--With the concurrence of the 
        affected States and the host railroad, the route and stations 
        service by a restructured long distance route may be modified 
        to improve ridership and financial performance.
            (4) New capital plans.--As part of the restructuring plan 
        for reconfigured routes, the Commission shall develop a capital 
        plan, if additional capital is needed to reconfigure the route 
        as linked corridors.
    (b) Contracting-Out of Profitable Long Distance Routes and 
Services.--The Commission shall determine which long distance routes or 
services on such routes, including auto-ferry transportation, food 
service, and sleeping accommodations, could be contracted to a private 
operator on a for-profit basis. In making these determinations, the 
Commission shall solicit expressions of interest from the private 
sector in operating long distance routes or services, including the 
conditions under which private companies may be interested in operating 
such services.
    (c) Consolidation and Closure.--The Commission shall make 
recommendations to Congress for consolidating and closing long distance 
train routes or portions of routes that cannot be restructured under 
subsection (a) or contracted out under subsection (b), to reduce the 
Federal operating subsidy required by at least 50 percent by the end of 
fiscal year 2010 (as compared to the operating subsidies for those 
routes for fiscal year 2003), taking into consideration--
            (1) the operating loss on a fully allocated cost basis, 
        including capital costs, of the route or portion thereof;
            (2) the extent to which train service is the only available 
        public transportation to the cities and towns along the route 
        or portion thereof;
            (3) whether an alternate route could significantly reduce 
        operating losses and capital requirements or increase 
        ridership;
            (4) available capacity on the rights-of-way of the host 
        railroad or railroads; and
            (5) commitments by the affected States to provide financial 
        support for the route or portion thereof.
    (d) Cooperation of American Passenger Railway Corporation.--
            (1) The American Passenger Railway Corporation shall 
        cooperate and comply, subject to the agreement of the 
        Commission to protect the confidentiality of proprietary 
        information, with all requests for financial, marketing, and 
        other information about the routes under consideration by the 
        Commission.
            (2) The Secretary of Transportation may withhold all or 
        part of an operating or capital grant to the Corporation if the 
        Secretary determines the American Passenger Railway Corporation 
        is not cooperating with the Commission as required by this 
        subsection.
    (e) Report.--The Commission shall submit its recommendations for 
restructuring the long distance routes to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure within 18 months after 
the date of enactment of this Act. The report shall include a 
description of--
            (1) the analysis performed by the Commission to reach its 
        conclusions;
            (2) options considered in the development of a 
        restructuring plan; and
            (3) the impact of the restructuring on employees of the 
        American Passenger Railway Corporation for any long distance 
        route restructured under this section.

SEC. 108. IMPLEMENTATION OF RESTRUCTURING PLAN.

    (a) In General.--The Secretary of Transportation shall implement 
the restructuring plan submitted to Congress by the Long Distance Route 
Restructuring Commission in its report pursuant to section 106 unless a 
joint resolution is enacted by the Congress disapproving such 
recommendations of the Commission before the earlier of--
            (1) the end of the 60-day period beginning on the date the 
        Commission submits its report to Congress; or
            (2) the adjournment of Congress sine die for the session 
        during which such report is submitted.
    (b) Certain Days Disregarded.--For purposes of subsection (a), the 
days on which either House of Congress is not in session because of an 
adjournment of more than 4 days to a day certain shall be excluded in 
the computation of a period.
    (c) 1-Year Implementation Period.--Unless disapproved under section 
(a), the Secretary of Transportation shall fully implement the plan 
within 1 year after the date on which the period described in 
subsection (a) expires.

SEC. 109. REDEMPTION OF COMMON STOCK.

    (a) Valuation.--The Secretary of Transportation shall arrange, at 
the National Railroad Passenger Corporation's expense, for a valuation 
of all Amtrak assets and liabilities with an estimated value in excess 
of $1,000,000 as of the date of enactment of this Act by the Secretary 
of the Treasury, or by a contractor selected by the Secretary of the 
Treasury. The valuation shall be conducted in accordance with the 
Uniform Standards of Professional Appraisal Practice of the Appraisal 
Foundation's Appraisal Standards Board and shall be completed within 1 
year after the date of enactment of this Act.
    (b) Redemption.--
            (1) Prior to the transfer of assets to the Secretary 
        directed by section 110 of this Act, and within 3 months after 
        the completion of the valuation under subsection (a), the 
        National Railroad Passenger Corporation shall redeem all common 
        stock in Amtrak issued prior to the date of enactment of this 
        Act at the fair market value of such stock, based on the 
        valuation performed under subsection (a).
            (2) No provision of this Act, or amendments made by this 
        Act, provide to the owners of the common stock a priority over 
        holders of indebtedness or other stock of Amtrak.
    (c) Acquisition Through Eminent Domain.--In the event that the 
National Railroad Passenger Corporation and the owners of the Amtrak 
common stock have not completed the redemption of such stock within 3 
months after the completion of the valuation under subsection (a), the 
National Railroad Passenger Corporation shall exercise its right of 
eminent domain under section 24311 of title 49, United States Code, to 
acquire that stock. The value assigned to the common stock under 
subsection (a) shall be deemed to constitute just compensation except 
to the extent that the owners of the common stock demonstrate that the 
valuation is less than the constitutional minimum value of the stock.
    (d) Amendment of Section 24311.--Section 24311(a)(1) is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by striking ``Amtrak.'' in subparagraph (B) and 
        inserting ``Amtrak; or''; and
            (3) by adding at the end the following:
                    ``(C) necessary to redeem Amtrak's common stock 
                from any holder thereof, including a rail carrier.''.
    (e) Conversion of Preferred Stock to Common.--
            (1) Subsequent to the redemption of the common stock in the 
        corporation issued prior to the date of enactment of this Act, 
        the Secretary of Transportation shall convert the one share of 
        the preferred stock of the corporation retained under section 
        110 of this Act for 10 shares of common stock in the National 
        Railroad Passenger Corporation.
            (2) The National Railroad Passenger Corporation may not 
        issue any other common stock, and may not issue preferred 
        stock, without the express written consent of the Secretary.
    (f) Termination of Section 24907 Note and Mortgage Authority.--
Section 24907 is amended by adding at the end the following:
    ``(d) Termination of Authority.--The authority of the Secretary to 
obtain a note of indebtedness from, and make a mortgage agreement with, 
the American Passenger Railway Corporation under subsection (a) is 
terminated as of the date of the transfer of assets under section 110 
of the Rail Passenger Service Restructuring, Reauthorization, and 
Development Act.''.

SEC. 110. RETIREMENT OF PREFERRED STOCK; TRANSFER OF ASSETS.

    (a) Transfer.--Not later than 30 days after the redemption or 
acquisition of stock under section 109 of this Act, the National 
Railroad Passenger Corporation shall, in return for the consideration 
specified in subsection (c), transfer to the Secretary of 
Transportation title to--
            (1) the portions of the Northeast Corridor currently owned 
        or leased by the Corporation as well as any improvements made 
        to these assets, including the rail right-of-way, stations, 
        track, signal equipment, electric traction facilities, bridges, 
        tunnels, repair facilities, and all other improvements owned by 
        the Corporation between Boston, Massachusetts, and Washington, 
        District of Columbia (including the route through Springfield, 
        Massachusetts, and the routes to Harrisburg, Pennsylvania, and 
        Albany, New York, from the Northeast Corridor mainline);
            (2) Chicago Union Station and rail-related assets in the 
        Chicago Metropolitan area; and
            (3) all other track and right-of-way, stations, repair 
        facilities, and other real property owned or leased by the 
        Corporation.
    (b) Existing Encumbrances.--
            (1) Assumption by federal government.--Any outstanding debt 
        on the mainline of the Northeast Corridor (other than debt 
        associated with rolling stock) shall become a debt obligation 
        of the United States as of the date of transfer of title under 
        subsection (a)(1).
            (2) Restructuring.--Except as provided in paragraph (1), 
        the obligation of the American Passenger Railway Corporation or 
        its successors or assigns to repay in full any indebtedness to 
        the United States incurred since January, 1990, is not affected 
        by this Act or an amendment made by this Act.
    (c) Consideration.--In consideration for the assets transferred to 
the United States under subsection (a), the Secretary shall--
            (1) deliver to the National Passenger Railroad Corporation 
        all but one share of the preferred stock of the corporation 
        held by the Secretary and forgive the corporation's legal 
        obligation to pay any dividends, including accrued but unpaid 
        dividends as of the date of transfer, evidenced by the 
        preferred stock certificates; and
            (2) release the National Railroad Passenger Corporation 
        from all mortgages and liens held by the Secretary that were in 
        existence on January 1, 1990.
    (d) Agreement.--Prior to accepting title to the assets transferred 
under this section, the Secretary shall enter into a contract with 
American Passenger Railway Corporation under which American Passenger 
Railway Corporation will exercise care, custody, maintenance, and 
operational control of the assets to be transferred. The term of the 
contract shall be for 1 year, which shall be renewed annually without 
action on the part of either party unless canceled by either party with 
90 days notice.
    (e) Further Transfers.--
            (1) The Secretary may, for appropriate consideration, 
        transfer title to all or part of Chicago Union Station and 
        rail-related assets in the Chicago metropolitan area acquired 
        under this section to a regional public transportation agency 
        that has significant operations in Chicago Union Station on the 
        date of enactment of this Act.
            (2) The Secretary may, for appropriate consideration, 
        transfer to the underlying States title to real estate 
        properties owned by the Corporation between Boston, 
        Massachusetts, and Washington, District of Columbia, that 
        constitute the route through Springfield, Massachusetts, and 
        the routes to Harrisburg, Pennsylvania, and Albany, New York, 
        from the Northeast Corridor mainline.
            (3) The Secretary may, for appropriate consideration, 
        transfer title to all or part of the assets acquired under 
        subsection (a)(3) to a State, a public agency, a railroad, or 
other entity deemed appropriate by the Secretary.
    (f) Use of Proceeds.--Notwithstanding section 3302 of title 31, 
United States Code, any proceeds from the transfer of the assets 
described subsection (e) shall be credited as off-setting collections 
to the account that finances debt and interest payments to the American 
Passenger Railway Corporation. Funds available for corridor development 
under chapter 244 of title 49, United States Code, shall be increased 
by an amount equal to the amounts credited under the preceding 
sentence.

SEC. 111. REAL ESTATE AND ASSET SALES; OTHER.

    (a) In General.--Within 3 years after the date of enactment of this 
Act, the Secretary of Transportation shall transfer all stations, 
track, and other fixed facilities outside the Northeast Corridor 
mainline to which the Secretary has assumed title under section 110 of 
this Act, other than equipment repair facilities, to States, 
municipalities, railroads, or other entities for maximum consideration.
    (b) Use of Proceeds.--Notwithstanding section 3302 of title 31, 
United States Code, any proceeds from the transfer of assets under this 
section shall be credited as off-setting collections to the account 
that finances debt and interest payments to the American Passenger 
Railway Corporation. Funds available for corridor development under 
chapter 244 of title 49, United States Code, shall be increased by an 
amount equal to the amounts credited under the preceding sentence.

                     Subtitle B--Northeast Corridor

SEC. 131. INTERSTATE COMPACT FOR THE NORTHEAST CORRIDOR.

    (a) Consent to Compact.--
            (1) In general.--The States and the District of Columbia 
        that constitute the Northeast Corridor, as defined in section 
        24102 of title 49, United States Code, may enter into a 
        multistate compact, not in conflict with any other law of the 
        United States, to be known as the Northeast Corridor Compact, 
        to manage railroad operations and rail service and conduct 
        related activities on the Northeast Corridor mainline between 
        Boston, Massachusetts, and Washington, District of Columbia.
            (2) Congressional approval required.--The Northeast 
        Corridor Compact shall be submitted to Congress for its 
        consent. It is the sense of the Congress that rapid consent to 
        the Compact is a priority matter for the Congress.
    (b) Compact Commission.--
            (1) In general.--There is hereby established a commission 
        to be known as the Northeast Corridor Compact Commission. The 
        Commission shall be composed of--
                    (A) 2 members (or their designees), to be selected 
                by the Secretary of Transportation;
                    (B) 2 members (or their designees), to be selected 
                by agreement of--
                            (i) the governors of Maryland, Delaware, 
                        Pennsylvania, New Jersey, New York, 
                        Connecticut, Rhode Island, and Massachusetts 
                        (hereinafter referred to as the ``participating 
                        States''); and
                            (ii) the mayor of the District of Columbia; 
                        and
                    (C) 1 member to be selected by the 4 members 
                selected under subparagraphs (A) and (B).
            (2) Administrative provisions.--
                    (A) Members of the Commission shall be appointed 
                for the life of the Commission.
                    (B) A vacancy in the Commission shall be filled in 
                the manner in which the original appointment was made.
                    (C) Members shall serve without pay but shall 
                receive travel expenses, including per diem in lieu of 
                subsistence, in accordance with sections 5702 and 5703 
                of title 5, United States Code.
                    (D) The Chairman of the Commission shall be elected 
                by the members.
                    (E) The Commission may appoint and fix the pay of 
                such personnel as it considers appropriate.
                    (F) Upon the request of the Commission, the head of 
                any department or agency of the United States may 
                detail, on a reimbursable basis, any of the personnel 
                of that department or agency to the Commission to 
                assist it in carrying out its duties under this 
                section.
                    (G) Upon the request of the Commission, the 
                Administrator of General Services shall provide to the 
                Commission, on a reimbursable basis, the administrative 
                support services necessary for the Commission to carry 
                out its responsibilities under this section.
    (c) Functions.--The Commission shall prepare for the consideration 
of and adoption by participating States, the District of Columbia, and 
the Secretary of Transportation an interstate compact that provides 
for--
            (1) full authority for 99 years to succeed to the 
        responsibilities of the National Railroad Passenger Corporation 
        as manager of the Northeast Corridor, subject to the provisions 
        of a lease from the Department of Transportation, including 
        responsibility for--
                    (A) Corridor maintenance and improvement;
                    (B) the operation of intercity passenger rail 
                service;
                    (C) making arrangements for operation of freight 
                railroad operations and commuter operations;
                    (D) the use of the Corridor for non-rail purposes; 
                and
                    (E) the Northeast Corridor financial operations;
            (2) execution of a lease of the Northeast Corridor from the 
        Department of Transportation, for a period of 99 years, subject 
        to appropriate provisions protecting the lessor's interests, 
        including reversion of all lease interests to the lessor in the 
        event the lessee fails to meet its financial obligations or 
        otherwise assume financial responsibility for Northeast 
        Corridor functions; and
            (3) participation by the Department of Transportation, as 
        the non-voting representative of the United States.
    (d) Final Compact Proposal.--
            (1) The Commission shall submit a final compact proposal to 
        participating States, the District of Columbia, and the Federal 
        Government not later than 18 months after the date of enactment 
        of this Act.
            (2) The Commission shall terminate on the 180th day 
        following the date of transmittal of the final compact proposal 
        under this subsection.
    (e) Governance and Funding Requirements for Compact.--
            (1) The governance provisions of the compact shall provide 
        a mechanism to ensure voting representation for the 
        participating States and the District of Columbia and for non-
        voting representation for the Secretary of Transportation and a 
        freight railroad that conducts operations on the Northeast 
        Corridor as ex officio members participating in all Compact 
        affairs.
            (2) The provisions of the compact shall establish the 
        financial obligations of each compact member and shall provide 
        for each member's management of rail services in the Northeast 
        Corridor.
    (f) Federal Interest Requirements for Compact.--The provisions of 
the Compact shall hold the United States Government harmless as to the 
actions of the Compact under the lease of rights to the Northeast 
Corridor by the United States Government.
    (g) Compact Borrowing Authority.--
            (1) The borrowing authority provisions of the Compact may 
        authorize it to issue bonds or other debt instruments from time 
        to time at its discretion for purposes that include paying any 
        part of the cost of rail service improvements, construction, 
        and rehabilitation and the acquisition of real and personal 
        property, including operating equipment, except that debt 
        issued by the Compact may be secured only by revenues to the 
        Compact and may not be a debt of a participating State, the 
        District of Columbia, or the Federal Government.
            (2) The debt authorized by this subsection shall under no 
        circumstances be backed by the full faith and credit of the 
        United States, and a grant made under the authority of this Act 
        or under the authority of part C of subtitle V of title 49, 
        United States Code, shall include an express acknowledgement by 
        the grantee that the debt does not constitute an obligation of 
        the United States.
    (h) Adoption of Compact; Turnover.--
            (1) In general.--The participating States and the District 
        of Columbia shall adopt a final compact agreement within 5 
        years after the date of enactment of this Act, and the Compact 
        shall thereafter assume responsibility for the Northeast 
        Corridor operations on a date that is not later than 6 months 
        after adoption of the Compact.
            (2) Operations.--Upon leasing the Northeast Corridor to the 
        Compact, the Secretary shall assign to the Compact and the 
        Compact shall assume the then-current contract for operation of 
        the Northeast Corridor. Upon the termination of that contract, 
        the Compact may make such arrangements for operation of the 
        Northeast Corridor as it sees fit consistent with its lease and 
        this Act. If the Compact chooses to use a contractor other than 
        the American Passenger Railway Corporation to operate trains on 
        the Northeast Corridor, the contract shall be awarded 
        competitively.
            (3) Maintenance.--Upon leasing the Northeast Corridor to 
        the Compact, the Secretary shall assign to the Compact and the 
        Compact shall assume the then-current contract for maintenance 
        of the Northeast Corridor. Upon the termination of that 
        contract, the Compact may make such arrangements for 
        maintenance of the Northeast Corridor as it sees fit consistent 
        with its lease and this Act. If the Compact chooses to use a 
        contractor other than the American Passenger Railway 
        Corporation to maintain the Northeast Corridor and provide 
        related services, the contract shall be awarded competitively.
            (4) Non-compact alternative.--If the participating States 
        and the District of Columbia do not adopt the final compact 
        agreement and make it operational under the schedule set forth 
        in this section, the Secretary of Transportation, through a 
        competitive bidding process, shall contract with another public 
        or private entity to manage the Northeast Corridor, with a goal 
        of maximizing the return to the Federal government from such 
        operations.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation to carry out this 
section--
            (1) $3,000,000 for fiscal year 2005, and
            (2) $2,000,000 for fiscal year 2006,
such sums to remain available until expended.

SEC. 132. SHUT-DOWN OF COMMUTER OR FREIGHT OPERATIONS.

    (a) In General.--Section 11123 is amended by striking ``National 
Railroad Passenger Corporation'' each place it appears and inserting 
``American Passenger Railway Corporation''.
    (b) Authorization of Appropriations.--From the funds made available 
for the American Passenger Railway Corporation for fiscal years 2005 
through 2010, the Secretary of Transportation shall in each fiscal year 
hold in reserve from the amounts authorized by section 24402(g) of 
title 49, United States Code, such sums as may be necessary to carry 
out directed service orders issued under section 1123 of title 49, 
United States Code, to respond to the shut-down of commuter rail 
operations or freight operations due to a shut-down of operations by 
the American Passenger Railway Corporation. The Secretary shall make 
the reserved funds available through an appropriate grant instrument 
during the fourth quarter of each fiscal year to the extent that no 
grant orders have been issued by the Surface Transportation Board 
during that fiscal year prior to the date of transfer of the reserved 
funds or there is a balance of reserved funds not needed by the Board 
to pay for any directed service order in that fiscal year.
    (c) Effective Date for Subsection (a).--The amendment made by 
subsection (a) shall take effect on the date, determined by the 
Secretary of Transportation, on which the restructuring required by 
sections 24300 of title 49, United States Code, is completed.

SEC. 133. CAPITAL GRANTS FOR NORTHEAST CORRIDOR.

    (a) In General.--Chapter 243, as amended by section 105, is amended 
by adding at the end the following:
``Sec. 24318. Capital authorizations for the Northeast Corridor
    ``(a) In General.--The Secretary of Transportation, in consultation 
with the American Passenger Railway Corporation, shall develop and 
implement a capital program to restore the mainline of the Northeast 
Corridor between Boston, Massachusetts, and Washington, District of 
Columbia, to a state of good repair, as defined by the Secretary.
    ``(b) Authorization of Appropriations for Capital Projects on the 
Northeast Corridor.--There are authorized to be appropriated to the 
Secretary of Transportation to make capital grants under this section 
$200,000,000 for fiscal year 2005 and $300,000,000 for each of fiscal 
years 2006 through 2010.
    ``(c) Achievement of State-of-Good-Repair on Northeast Corridor.--
            ``(1) Use of funds.--Sums authorized for the Northeast 
        Corridor under subsection (b) may be used solely for the 
        purpose of funding deferred maintenance and safety projects, 
        including the negotiated Federal share for life-safety 
        improvements in the New York Penn Station tunnels.
            ``(2) State of good repair.--The Northeast Corridor shall 
        be considered to be in a state of good repair upon the 
        completion of the capital program developed under subsection 
        (a).''.
    (b) Conforming Amendment.--The chapter analysis for chapter 243, as 
amended by section 105, is amended by adding at the end thereof the 
following:

``24318. Capital authorizations for the Northeast Corridor.''.

                      Subtitle C--Related Matters

SEC. 151. FAIR AND OPEN COMPETITION.

    (a) In General.--The Secretary of Transportation shall consult with 
States that competitively bid intercity passenger rail services to 
ensure their bidding practices provide for fair and open competition 
for all bidders, including the American Passenger Railway Corporation. 
The Secretary may withhold all or a portion of a grant under this Act 
if the Secretary determines that the State's bidding processes do not 
treat all competitors fairly.
    (b) Use of Federal or State Funds.--The Secretary shall ensure that 
the American Passenger Railway Corporation may not use Federal or State 
financial support for a passenger rail route to subsidize a competitive 
bid to operate intercity passenger rail service on another route.

SEC. 152. ACCESS TO OTHER RAILROADS.

    (a) Terms and Conditions for Access to Other Railroads.--
            (1) Existing routes and frequencies.--
                    (A) In general.--The National Railroad Passenger 
                Corporation shall be responsible for negotiating the 
                terms and conditions under which--
                            (i) the American Passenger Railway 
                        Corporation, a State, or other entity may 
                        access the property of a rail carrier to 
                        provide intercity passenger rail service over 
                        routes operated by Amtrak on the day before the 
                        date, determined by the Secretary of 
                        Transportation, on which the restructuring 
                        required by sections 24300 of title 49, United 
                        States Code, is completed at the frequencies in 
                        effect on that day; and
                            (ii) the American Passenger Railway 
                        Corporation, freight railroads, commuter 
                        authorities, and other entities may obtain 
                        access to property owned by the United States 
                        Government to provide intercity, commuter, 
                        freight rail and other services, except that 
                        the National Railroad Passenger Corporation 
                        shall delegate its authority under this clause 
                        to the interstate compact authorized by section 
                        131 after that compact has been adopted.
                    (B) Preservation of railroad benefits.--The access 
                and liability terms and conditions of the contracts 
                between the National Railroad Passenger Corporation and 
                other rail carriers following the restructuring 
                required by section 24300 of title 49, United States 
                Code, shall be no less favorable to the railroads than 
                the access and liability terms and conditions under 
                contracts in effect on the day before the date, as so 
                determined by the Secretary, on which the restructuring 
                is completed.
                    (C) Incentive payments; penalties.--The National 
                Railroad Passenger Corporation shall retain a system of 
                incentive payments and performance penalties in 
                negotiating compensation payments to other rail 
                carriers under subparagraph (A) that encourages on-time 
                performance.
            (3) Conditions for new routes and train frequencies.--
                    (A) In general.--The terms and conditions for the 
                operation of a new intercity passenger rail route or 
                frequency added after the date of enactment of this Act 
                shall, except for the rental charge compensation to 
                another rail carrier, be determined by negotiation and 
                mutual agreement between the host railroad and the 
                operator or sponsor of the route or frequency to be 
                added.
                    (B) Standard of compensation.--The standard of 
                compensation for the rental change shall be fully 
                allocated costs, excluding capital investments 
                associated with an added route or frequency, when the 
                on-time performance of the new route or train frequency 
                meets or exceeds 95 percent of the goal set by the 
                parties, net of delays not within the host railroad's 
                control.
                    (C) Failure of negotiation.--If the parties cannot 
                agree on the terms of the rental charge, either party 
                may petition the Surface Transportation Board to 
                prescribe the terms under section 24308 of title 49, 
                United States Code.
    (b) Fitness Qualifications for Passenger Rail.--
            (1) In general.--No person may operate intercity passenger 
        rail service unless that person demonstrates to the 
        satisfaction of the Secretary of Transportation that--
                    (A) its intercity passenger rail operations will 
                meet all applicable Federal safety rules and 
                regulations;
                    (B) it will operate the service on a sound 
                financial basis; and
                    (C) it has the technical expertise to operate 
                intercity passenger rail service.
            (2) Minimum standards.--Within 6 months after the date of 
        enactment of this Act, the Secretary of Transportation shall by 
        regulation establish minimum safety and financial 
        qualifications for operators of intercity passenger rail 
        service.

SEC. 153. LIMITATIONS ON RAIL PASSENGER TRANSPORTATION LIABILITY.

    Section 28103 is amended by striking ``Amtrak shall maintain a 
total'' in subsection (c) and inserting ``each operator of intercity 
passenger rail service shall maintain''.

SEC. 154. TRAIN OPERATIONS INSURANCE POOL.

    (a) In General.--Chapter 281 is amended by adding at the end the 
following:
``Sec. 28104. Train operations insurance pool
    ``(a) In General.--The Secretary of Transportation is authorized to 
encourage and otherwise assist insurance companies and other insurers 
that meet the requirements prescribed under subsection (b) of this 
section to form, associate, or otherwise join together in a pool--
            ``(1) to provide the insurance coverage required by section 
        28103; and
            ``(2) for the purpose of assuming, on such terms and 
        conditions as may be agreed upon, such financial responsibility 
        as will enable such companies and other insurers to assume a 
        reasonable proportion of responsibility for the adjustment and 
        payment of claims under section 28103.
    ``(b) Regulations To Establish Insurer Qualification 
Requirements.--In order to promote the effective administration of the 
intercity rail passenger program, and to assure that the objectives of 
this chapter are furthered, the Secretary is authorized to prescribe 
requirements for insurance companies and other insurers participating 
in an insurance pool under subsection (a), including minimum 
requirements for capital or surplus or assets.
    ``(c) Authority To Collect and Pay Premiums and Other Costs.--In 
order to provide adequate insurance coverage at affordable cost to 
operators of intercity passenger rail service at no cost to the United 
States, the Secretary is authorized to divide the insurance premiums 
and all other costs of forming and operating the insurance pool created 
pursuant to this section, including the costs of any contractors or 
consultants the Secretary may hire, among all the operators of 
intercity passenger rail service (including the American Passenger 
Railway Corporation) and collect from each operator of intercity 
passenger rail service the insurance premiums and other costs the 
Secretary has allocated to it. Notwithstanding any other provision of 
law, the Secretary may receive funds collected under this section 
directly from each operator of intercity passenger rail service, credit 
the appropriation charged for the insurance premiums and other costs of 
forming and operating the insurance pool, and use those funds to pay 
insurance premiums and other costs of forming and operating the 
insurance pool, including the costs of any contractors or consultants 
the Secretary may hire. The Secretary may advance such sums as may be 
necessary to pay insurance premiums and other costs of forming and 
operating the insurance pool from unobligated balances available to the 
Federal Railroad Administration for intercity passenger rail service, 
to be reimbursed from payments received from operators of intercity 
passenger rail service. Where the Secretary is making a grant of 
operating funds for a route, the Secretary may collect the insurance 
premiums and other costs the Secretary has allocated to it by 
withholding those funds from the grant and crediting them to the 
appropriation charged for the insurance premiums and other costs of 
forming and operating the insurance pool.
``Sec. 28105. Use of insurance pool, companies, or other private 
              organizations for certain payments
    ``(a) Authorization To Enter Into Contracts for Certain 
Responsibilities.--The Secretary of Transportation may enter into 
contracts with the pool formed or otherwise created under section 
28104, or any insurance company or other private organizations, for the 
purpose of securing performance by such pool, company, or organization 
of any or all of the following responsibilities:
            ``(1) Estimating and later determining any amounts of 
        payments to be made from the pool.
            ``(2) Receiving from the Secretary, disbursing, and 
        accounting for payments of insurance premiums.
            ``(3) Making such audits of the records of any insurance 
        company or other insurer, insurance agent or broker, or 
        insurance adjustment organization as may be necessary to assure 
        that proper payments are made.
            ``(4) Otherwise assisting in such manner as the contract 
        may provide to further the purposes of this chapter.
    ``(b) Terms and Conditions of Contract.--Any contract with the pool 
or an insurance company or other private organization under this 
section may contain such terms and conditions as the Secretary finds 
necessary or appropriate for carrying out responsibilities under 
subsection (a) of this section, and may provide for payment of any 
costs which the Secretary determines are incidental to carrying out 
such responsibilities which are covered by the contract.
    ``(c) Competitive Bidding.--Any contract entered into under 
subsection (a) of this section may be entered into without regard to 
section 5 of title 41 or any other provision of law requiring 
competitive bidding.
    ``(d) Findings of Secretary.--No contract may be entered into under 
this section unless the Secretary finds that the pool, company, or 
organization will perform its obligations under the contract 
efficiently and effectively, and will meet such requirements as to 
financial responsibility, legal authority, and other matters as the 
Secretary finds pertinent.
    ``(e) Term of Contract; Renewals; Termination.--Any contract 
entered into under this section shall be for a term of 1 year, and may 
be made automatically renewable from term to term in the absence of 
notice by either party of an intention to terminate at the end of the 
current term; except that the Secretary may terminate any such contract 
at any time (after reasonable notice to the pool, company, or 
organization involved) if the Secretary finds that the pool, company, 
or organization has failed substantially to carry out the contract, or 
is carrying out the contract in a manner inconsistent with the 
efficient and effective administration of the intercity rail passenger 
program.''.
    (b) Conforming Amendments.--
            (1) Chapter 281 is amended by striking ``LAW ENFORCEMENT'' 
        in the chapter heading and inserting ``LAW ENFORCEMENT; 
        LIABILITY; INSURANCE''.
            (2) The part analysis of subtitle V is amended by striking 
        the item relating to chapter 281 and inserting the following:

``281. Law enforcement; liability; insurance...............    28101''.
            (3) The table of contents of the title is amended by 
        striking the item relating to chapter 281 and inserting the 
        following:

``281. Law enforcement; liability; insurance...............    28101''.
            (4) The chapter analysis for chapter 281 is amended by 
        adding at the end the following:

``28104. Train operations insurance pool.
``28105. Use of insurance pool, companies, or other private 
                            organizations for certain payments.''.

SEC. 155. COLLECTIVE BARGAINING ARRANGEMENTS.

    (a) Status as Employer or Carrier.--
            (1) In general.--Any entity providing intercity passenger 
        railroad transportation (within the meaning of section 20102 of 
        title 49, United States Code) that begins operations after the 
        date of enactment of this Act shall be considered an employer 
        for purposes of the Railroad Retirement Act of 1974 (45 U.S.C. 
        231 et seq.) and considered a carrier for purposes of the 
        Railway Labor Act (45 U.S.C. 151 et seq.).
            (2) Collective bargaining agreement.--Any entity providing 
        intercity passenger railroad transportation (within the meaning 
        of section 20102 of title 49, United States Code) that begins 
        operations after the date of enactment of this Act and replaces 
        intercity rail passenger service that was provided by another 
        entity as of the date of enactment of this Act, shall enter 
        into an agreement with the authorized bargaining agent or 
        agents for employees of the predecessor provider that--
                    (A) gives each employee of the predecessor provider 
                priority in hiring according to the employee's 
                seniority on the predecessor provider for each position 
                with the replacing entity that is in the employee's 
                craft or class and is available within three years 
                after the termination of the service being replaced;
                    (B) establishes a procedure for notifying such an 
                employee of such positions;
                    (C) establishes a procedure for such an employee to 
                apply for such positions; and
                    (D) establishes rates of pay, rules, and working 
                conditions.
            (3) Replacement of existing rail passenger service.--
                    (A) Negotiations.--An entity providing replacement 
                intercity rail passenger service under paragraph (2) 
                shall give written notice of its plan to replace 
                existing rail passenger service to the authorized 
                collective bargaining agent or agents for the employees 
                of the predecessor provider at least 90 days prior to 
                the date it plans to commence service. Within 5 days 
                after the date of receipt of such written notice, 
                negotiations between the replacing entity and the 
                collective bargaining agent or agents for the employees 
                of the predecessor provider shall commence for the 
                purpose of reaching agreement with respect to all 
                matters set forth in subparagraphs (A) through (D) of 
                paragraph (2). The negotiations shall continue for 30 
                days or until an agreement is reached, whichever is 
                sooner. If at the end of 30 days the parties have not 
                entered into an agreement with respect to all such 
                matters, the unresolved issues shall be submitted for 
                arbitration in accordance with the procedure set forth 
                in subparagraph (B).
                    (B) Arbitration.--If an agreement has not been 
                entered into with respect to all matters set forth in 
                subparagraphs (A) through (D) of paragraph (2) as 
                provided in subparagraph (A) of this paragraph, the 
                parties shall select an arbitrator. If the parties are 
                unable to agree upon the selection of such arbitrator 
                within 5 days, either or both parties shall notify the 
                National Mediation Board, which shall provide a list of 
                7 arbitrators with experience in arbitrating rail labor 
                protection disputes. Within 5 days after such 
                notification, the parties shall alternately strike 
                names from the list until only one name remains, and 
                that person shall serve as the neutral arbitrator. 
                Within 45 days after selection of the arbitrator, the 
                arbitrator shall conduct a hearing on the dispute and 
                shall render a decision with respect to the unresolved 
                issues set forth in subparagraphs (A) through (D) of 
                paragraph (2). This decision shall be final, binding, 
                and conclusive upon the parties. The salary and 
                expenses of the arbitrator shall be borne equally by 
                the parties, but all other expenses shall be paid by 
                the party incurring them.
                    (C) Service commencement.--An entity providing 
                replacement intercity rail passenger service under 
                paragraph (2) shall commence service only after an 
                agreement is entered into with respect to the matters 
                set forth in subparagraphs (A) through (D) of paragraph 
                (2) or the decision of the arbitrator has been 
                rendered.
    (b) Regulations.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary of Transportation shall issue 
regulations for carrying out this section.

                       TITLE II--RAIL DEVELOPMENT

SEC. 201. CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL SERVICE.

    (a) In General.--Part C of subtitle V is amended by inserting after 
chapter 243 the following:

   ``CHAPTER 244--INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL 
                               ASSISTANCE

``Sec.
``24401. Definitions.
``24402. Capital investment grants to support intercity passenger rail 
                            service.
``24403. Project management oversight.
``24404. Inclusion of projects in Budget.
``24405. Local share and maintenance of effort.
``24406. Grants for maintenance and modernization.
``Sec. 24401. Definitions
    ``In this chapter:
            ``(1) Applicant.--The term `applicant' means a State, a 
        group of States, including an interstate compact formed under 
        section 410 of the Amtrak Reform and Accountability Act of 1997 
        (49 U.S.C. 24101 note) or section 131 of the Rail Passenger 
        Service Restructuring, Reauthorization, and Development Act, or 
        a public corporation, board, commission, or agency established 
        by one or more States designated as the lead agency of a State 
        for providing intercity passenger rail service.
            ``(2) Capital project.--The term `capital project' means a 
        project for--
                    ``(A) acquiring or constructing equipment or a 
                facility for use in intercity passenger rail service, 
                expenses incidental to the acquisition or construction 
                (including designing, inspecting, supervising, 
                engineering, location surveying, mapping, environmental 
                studies, and acquiring rights-of-way), alternatives 
                analysis related to the development of such train 
                services, capacity improvements on the property over 
                which the service will be conducted, passenger rail-
                related intelligent transportation systems, highway-
                rail grade crossing improvements or closures on routes 
                used for intercity passenger rail service, relocation 
                assistance, acquiring replacement housing sites, and 
                acquiring, constructing, relocating, and rehabilitating 
                replacement housing;
                    ``(B) rehabilitating or remanufacturing rail 
                rolling stock and associated facilities used primarily 
                in intercity passenger rail service;
                    ``(C) leasing equipment or a facility for use in 
                intercity passenger rail service, subject to 
                regulations (to be prescribed by the Secretary of 
                Transportation) limiting such leasing arrangements to 
                arrangements that are more cost-effective than purchase 
                or construction;
                    ``(D) modernizing existing intercity passenger rail 
                service facilities and information systems;
                    ``(E) the introduction of new technology, through 
                innovative and improved products, other than magnetic 
                levitation; or
                    ``(F) defraying, with respect to new service 
                established under section 24402, the cost of rental 
                charges to freight railroads.
            ``(3) Intercity corridor passenger rail service.--The term 
        `intercity corridor passenger rail service' means the 
        transportation of passengers between major metropolitan areas 
        by rail, including high-speed rail (as defined in section 
        26105(2) of this title), at multiple daily frequencies in 
        corridors of 300 miles or less in length or with trip times of 
        4 hours or less.
            ``(4) Net project cost.--The term `net project cost' means 
        that portion of the cost of a project than cannot be financed 
        from revenues reasonably expected to be generated by the 
        project.
``Sec. 24402. Capital investment grants to support new intercity 
              passenger rail service
    ``(a) General Authority.--
            ``(1) Grants.--The Secretary of Transportation may make 
        grants under this section to an applicant to assist in 
        financing capital investments to establish or add additional 
        train frequencies for new intercity corridor passenger rail 
        service.
            ``(2) Terms and conditions.--The Secretary shall require 
        that a grant under this section be subject to the terms, 
        conditions, requirements, and provisions the Secretary decides 
        are necessary or appropriate for the purposes of this section, 
        including requirements for the disposition of net increases in 
        value of real property resulting from the project assisted 
        under this section.
            ``(3) Application with chapter 53.--A grant under this 
        section may not be made for a project or program of projects 
        that qualifies for financial assistance under chapter 53 of 
        this title.
    ``(b) Project as Part of Approved Program.--
            ``(1) In general.--The Secretary may not approve a grant 
        for a project under this section unless the Secretary finds 
        that the project is part of an approved corridor plan and 
        program developed under section 135 of title 23 and that the 
        applicant or recipient has or will have the legal, financial, 
        and technical capacity to carry out the project (including 
        safety and security aspects of the project), satisfactory 
        continuing control over the use of the equipment or facilities, 
        and the capability and willingness to maintain the equipment or 
        facilities.
            ``(2) Eligibility information.--An applicant shall provide 
        sufficient information upon which the Secretary can make the 
        findings required by this subsection.
            ``(3) Proposed operator justification.--If an applicant has 
        not selected the proposed operator of its service 
        competitively, the applicant shall provide written 
        justification to the Secretary showing why the proposed 
        operator is preferred, taking into account price and other 
        factors, and that use of the proposed operator will not 
        increase the capital cost of the project.
            ``(4) Rail agreement.--The Secretary of Transportation may 
        not approve a grant under this section unless the applicant 
        demonstrates that the railroad over which the intercity 
        passenger rail service will operate concurs with the 
        applicant's operating plans and infrastructure improvement 
        requirements.
    ``(c) Criteria for Grants for Intercity Corridor Passenger Rail 
Projects.--
            ``(1) In general.--The Secretary may approve a grant under 
        this section for a capital project only if the Secretary 
        determines that the proposed project is--
                    ``(A) justified, based on--
                            ``(i) the results of an alternatives 
                        analysis and preliminary engineering; and
                            ``(ii) a comprehensive review of its 
                        mobility improvements, environmental benefits, 
                        cost effectiveness, and operating efficiencies; 
                        and
                    ``(B) supported by an acceptable degree of State 
                and local financial commitment, including evidence of 
                stable and dependable financing sources to construct, 
                maintain, and operate the system or extension.
            ``(2) Alternatives analysis and preliminary engineering.--
        In evaluating a project under paragraph (1)(A), the Secretary 
        shall analyze and consider the results of the alternatives 
        analysis and preliminary engineering for the project.
            ``(3) Project justification.--In evaluating a project under 
        paragraph (1)(B), the Secretary shall consider--
                    ``(A) the direct and indirect benefits and costs of 
                relevant alternatives;
                    ``(B) the ability of the service to compete with 
                other modes of transportation;
                    ``(C) the extent to which the project fills an 
                unmet transportation need;
                    ``(D) the ability of the service to fund its 
                operating expenses from fare revenues;
                    ``(E) population density in the corridor;
                    ``(F) the technical capability of the grant 
                recipient to construct the project;
                    ``(G) factors such as congestion relief, improved 
                mobility, air pollution, noise pollution, energy 
                consumption, and all associated ancillary and 
mitigating cost increases necessary to carry out each alternative 
analyzed;
                    ``(H) the level of private sector financial 
                participation and risk sharing in the project;
                    ``(I) differences in local land, construction, and 
                operating costs in evaluating project justification; 
                and
                    ``(J) other factors that the Secretary determines 
                appropriate to carry out this chapter.
            ``(4) Local financial commitment.--
                    ``(A) Evaluation of project.--In evaluating a 
                project under paragraph (1)(C), the Secretary shall 
                require that--
                            ``(i) the proposed project plan provides 
                        for the availability of contingency amounts 
                        that the Secretary determines to be reasonable 
                        to cover unanticipated cost increases;
                            ``(ii) each proposed State or local source 
                        of capital and operating financing is stable, 
                        reliable, and available within the proposed 
                        project timetable; and
                            ``(iii) State or local resources are 
                        available to operate the proposed service.
                    ``(B) Considerations.--In assessing the stability, 
                reliability, and availability of proposed sources of 
                local financing under subparagraph (A), the Secretary 
                shall consider--
                            ``(i) existing grant commitments;
                            ``(ii) the degree to which financing 
                        sources are dedicated to the purposes proposed;
                            ``(iii) any debt obligation that exists or 
                        is proposed by the applicant for the proposed 
                        project or other intercity passenger rail 
                        service purpose; and
                            ``(iv) the extent to which the project has 
                        a local financial commitment that exceeds the 
                        required non-Federal share of the cost of the 
                        project.
            ``(5) Project evaluation and rating.--A proposed project 
        may advance from alternatives analysis to preliminary 
        engineering, and may advance from preliminary engineering to 
        final design and construction, only if the Secretary finds that 
        the project meets the requirements of this section and there is 
        a reasonable likelihood that the project will continue to meet 
        such requirements. In making such findings, the Secretary shall 
        evaluate and rate the project as `highly recommended', 
        `recommended', or `not recommended', based on the results of 
        alternatives analysis, the project justification criteria, and 
        the degree of local financial commitment, as required under 
        this subsection. In rating the projects, the Secretary shall 
        provide, in addition to the overall project rating, individual 
        ratings for each of the criteria established under the 
        regulations issued under paragraph (5).
            ``(6) Full funding grant agreement.--A project financed 
        under this subsection shall be carried out through a full 
        funding grant agreement. The Secretary shall enter into a full 
        funding grant agreement based on the evaluations and ratings 
        required under this subsection. The Secretary shall not enter 
        into a full funding grant agreement for a project unless that 
        project is authorized for final design and construction.
    ``(d) Letters of Intent, Full Funding Grant Agreements, and Early 
Systems Work Agreements.--
            ``(1) Letter of intent.--
                    ``(A) The Secretary may issue a letter of intent to 
                an applicant announcing an intention to obligate, for a 
                project under this section, an amount from future 
                available budget authority specified in law that is not 
                more than the amount stipulated as the financial 
                participation of the Secretary in the project.
                    ``(B) At least 60 days before issuing a letter 
                under subparagraph (A) of this paragraph or entering 
                into a full funding grant agreement, the Secretary 
                shall notify in writing the Senate Committee on 
                Commerce, Science, and Transportation and the House of 
                Representatives Committee on Transportation and 
                Infrastructure, and the House of Representatives and 
                Senate Committees on Appropriations of the proposed 
                letter or agreement. The Secretary shall include with 
                the notification a copy of the proposed letter or 
                agreement as well as the evaluations and ratings for 
                the project.
                    ``(C) The issuance of a letter is deemed not to be 
                an obligation under sections 1108(c) and (d), 1501, and 
                1502(a) of title 31, or an administrative commitment.
                    ``(D) An obligation or administrative commitment 
                may be made only when amounts are appropriated.
            ``(2) Full funding agreement.--
                    ``(A) The Secretary may make a full funding grant 
                agreement with an applicant. The agreement shall--
                            ``(i) establish the terms of participation 
                        by the United States Government in a project 
                        under this section;
                            ``(ii) establish the maximum amount of 
                        Government financial assistance for the 
                        project, which, with respect to a high-speed 
                        rail project, shall be sufficient to complete 
                        at least an operable segment;
                            ``(iii) cover the period of time for 
                        completing the project, including a period 
                        extending beyond the period of an 
                        authorization; and
                            ``(iv) make timely and efficient management 
                        of the project easier according to the law of 
                        the United States.
                    ``(B) An agreement under this paragraph obligates 
                an amount of available budget authority specified in 
                law and may include a commitment, contingent on amounts 
                to be specified in law in advance for commitments under 
                this paragraph, to obligate an additional amount from 
                future available budget authority specified in law. The 
                agreement shall state that the contingent commitment is 
                not an obligation of the Federal Government and is 
                subject to the availability of appropriations made by 
                Federal law and to Federal laws in force on or enacted 
                after the date of the contingent commitment. Interest 
                and other financing costs of efficiently carrying out a 
                part of the project within a reasonable time are a cost 
                of carrying out the project under a full funding grant 
                agreement, except that eligible costs may not be more 
                than the cost of the most favorable financing terms 
                reasonably available for the project at the time of 
                borrowing. The applicant shall certify, in a way 
                satisfactory to the Secretary, that the applicant has 
                shown reasonable diligence in seeking the most 
                favorable financing terms.
            ``(3) Early systems work agreement.--
                    ``(A) The Secretary may make an early systems work 
                agreement with an applicant if a record of decision 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.) has been issued on the project and 
                the Secretary finds there is reason to believe--
                            ``(i) a full funding grant agreement for 
                        the project will be made; and
                            ``(ii) the terms of the work agreement will 
                        promote ultimate completion of the project more 
                        rapidly and at less cost.
                    ``(B) A work agreement under this paragraph 
                obligates an amount of available budget authority 
                specified in law and shall provide for reimbursement of 
                preliminary costs of carrying out the project, 
                including land acquisition, timely procurement of 
                system elements for which specifications are decided, 
                and other activities the Secretary decides are 
                appropriate to make efficient, long-term project 
                management easier. A work agreement shall cover the 
                period of time the Secretary considers appropriate. The 
                period may extend beyond the period of current 
                authorization. Interest and other financing costs of 
                efficiently carrying out the work agreement within a 
                reasonable time are a cost of carrying out the 
                agreement, except that eligible costs may not be more 
                than the cost of the most favorable financing terms 
                reasonably available for the project at the time of 
                borrowing. The applicant shall certify, in a way 
                satisfactory to the Secretary, that the applicant has 
                shown reasonable diligence in seeking the most 
                favorable financing terms. If an applicant does not 
                carry out the project for reasons within the control of 
                the applicant, the applicant shall repay all Government 
                payments made under the work agreement plus reasonable 
                interest and penalty charges the Secretary establishes 
                in the agreement.
            ``(4) Limit on total obligations and commitments.--The 
        total estimated amount of future obligations of the Government 
        and contingent commitments to incur obligations covered by all 
        outstanding letters of intent, full funding grant agreements, 
        and early systems work agreements under this section, when 
        combined with obligations under section 5309 of this title, may 
        be not more than the amount authorized under section 5338(b) of 
        this title, less an amount the Secretary reasonably estimates 
        is necessary for grants under this section not covered by a 
        letter. The total amount covered by new letters and contingent 
        commitments included in full funding grant agreements and early 
        systems work agreements may be not more than a limitation 
        specified in law.
    ``(e) Federal Share of Net Project Cost.--
            ``(1) In general.--
                    ``(A) Based on engineering studies, studies of 
                economic feasibility, and information on the expected 
                use of equipment or facilities, the Secretary shall 
                estimate the net project cost.
                    ``(B) A grant for the project may be for up to 50 
                percent of the net project cost. The remainder shall be 
                provided in cash from non-Federal sources.
    ``(f) Undertaking Projects in Advance.--
            ``(1) In general.--The Secretary may pay the Federal share 
        of the net capital project cost to an applicant that carries 
        out any part of a project described in this section according 
        to all applicable procedures and requirements if--
                    ``(A) the applicant applies for the payment;
                    ``(B) the Secretary approves the payment; and
                    ``(C) before carrying out a part of the project, 
                the Secretary approves the plans and specifications for 
                the part in the same way as other projects under this 
                section.
            ``(2) Interest costs.--The cost of carrying out part of a 
        project includes the amount of interest earned and payable on 
        bonds issued by the applicant to the extent proceeds of the 
        bonds are expended in carrying out the part. The amount of 
        interest includable as cost under this paragraph may not be 
        more than the most favorable interest terms reasonably 
        available for the project at the time of borrowing. The 
        applicant shall certify, in a manner satisfactory to the 
        Secretary, that the applicant has shown reasonable diligence in 
        seeking the most favorable financial terms.
            ``(3) Use of cost indices.--The Secretary shall consider 
        changes in capital project cost indices when determining the 
        estimated cost under paragraph (2) of this subsection.
    ``(g) Funding.--There are authorized to be appropriated to the 
Secretary of Transportation for purposes of this section--
            ``(1) $525,000,000 for fiscal year 2006,
            ``(2) $525,000,000 for fiscal year 2007,
            ``(3) $650,000,000 for fiscal year 2008,
            ``(4) $750,000,000 for fiscal year 2009, and
            ``(5) $800,000,000 for fiscal year 2010,
such sums to remain available until expended.
``Sec. 24403. Project management oversight
    ``(a) Project Management Plan Requirements.--To receive Federal 
financial assistance for a major capital project under this chapter, an 
applicant shall prepare and carry out a project management plan 
approved by the Secretary of Transportation. The plan shall provide 
for--
            ``(1) adequate recipient staff organization with well-
        defined reporting relationships, statements of functional 
        responsibilities, job descriptions, and job qualifications;
            ``(2) a budget for the project, including the project 
        management organization, appropriate consultants, property 
        acquisition, utility relocation, systems demonstration staff, 
        audits, and miscellaneous payments the recipient may be 
        prepared to justify;
            ``(3) a construction schedule for the project;
            ``(4) a document control procedure and recordkeeping 
        system;
            ``(5) a change order procedure that includes a documented, 
        systematic approach to handling the construction change orders;
            ``(6) organizational structures, management skills, and 
        staffing levels required throughout the construction phase;
            ``(7) quality control and quality assurance functions, 
        procedures, and responsibilities for construction, system 
        installation, and integration of system components;
            ``(8) material testing policies and procedures;
            ``(9) internal plan implementation and reporting 
        requirements;
            ``(10) criteria and procedures to be used for testing the 
        operational system or its major components;
            ``(11) annual updates of the plan, especially related to 
        project budget and project schedule, financing, and ridership 
        estimates; and
            ``(12) the recipient's commitment to submit a project 
        budget and project schedule to the Secretary each month.
    ``(b) Plan Approval.--
            ``(1) 60-day decision.--The Secretary shall approve or 
        disapprove a plan not later than 60 days after it is submitted. 
        If the approval process cannot be completed within 60 days, the 
        Secretary shall notify the recipient, explain the reasons for 
        the delay, and estimate the additional time that will be 
        required.
            ``(2) Explanation of disapproval.--If the Secretary 
        disapproves a plan, the Secretary shall inform the applicant of 
        the reasons for disapproval of the plan.
    ``(c) Secretarial Oversight.--
            ``(1) In general.--The Secretary may use no more than 0.5 
        percent of amounts made available in a fiscal year for capital 
        projects under this chapter to enter into contracts to oversee 
        the construction of such projects.
            ``(2) Use of funds.--The Secretary may use amounts 
        available under paragraph (1) of this subsection to make 
        contracts for safety, procurement, management, and financial 
        compliance reviews and audits of a recipient of amounts under 
        paragraph (1).
            ``(3) Federal share.--The Federal Government may pay the 
        entire cost of carrying out a contract under this subsection.
    ``(d) Access to Sites and Records.--Each recipient of assistance 
under this chapter shall provide the Secretary and a contractor the 
Secretary chooses under subsection (b) of this section with access to 
the construction sites and records of the recipient when reasonably 
necessary.
``Sec. 24404. Inclusion of projects in Budget
    ``Beginning with fiscal year 2005, the Secretary of Transportation 
shall transmit to the Office of Management and Budget for inclusion in 
the President's budget submission for the fiscal year a list of 
projects recommended for funding under section 24402 for the fiscal 
year.
``Sec. 24405. Local share and maintenance of effort
    ``(a) In General.--Notwithstanding any other provision of law, a 
recipient of assistance under section 24402 may use, as part of the 
local matching funds for a capital project, the proceeds from the 
issuance of revenue bonds.
    ``(b) Maintenance of Effort.--The Secretary of Transportation shall 
approve the use of proceeds from the issuance of revenue bonds for the 
non-Federal share of the net project cost only if the aggregate amount 
of financial support for intercity passenger rail service from the 
State is not less than the average annual amount provided by the State 
during the preceding 3 years.
``Sec. 24406. Grants for maintenance and modernization
    ``(a) In General.--The Secretary of Transportation may make capital 
grants for renewal and modernization of intercity passenger rail 
services to--
            ``(1) the American Passenger Railway Corporation for 
        services it operates under contract with the Secretary of 
        Transportation; or
            ``(2) to States for intercity passenger rail services 
        operated under a contract with the American Passenger Railway 
        Corporation or another train operator.
    ``(b) Use of Funds.--Grants under this section may be used--
            ``(1) to purchase, lease, rehabilitate, or remanufacture 
        rolling stock and associated facilities used primarily in 
        intercity passenger rail service;
            ``(2) to modernize existing intercity passenger rail 
        service facilities and information systems; or
            ``(3) to defray the cost of rental charges to freight 
        railroads for the addition of train frequencies.
    ``(c) Federal Share.--For fiscal years 2005 through 2010, the 
Federal share for a capital grant under this section may be 100 
percent, except that the Federal share for a grant made under 
subsection (b)(3) may not exceed 50 percent. After fiscal year 2010, 
the Federal share for a capital grant under this section may not exceed 
80 percent.
    ``(d) Allocation Formula.--Funds made available by this section 
shall be allocated equitably among the States based on a formula to be 
determined by the Secretary.
    ``(e) Sleeping and Dining Cars.--Pending the restructuring of long 
distance routes under sections 106 through 108 of the Rail Passenger 
Service Restructuring, Reauthorization, and Development Act, capital 
grants may be made to the American Passenger Railway Corporation for 
sleeping and dining cars only to the extent necessary to maintain the 
equipment in working order and not for the purpose of refurbishing, 
rebuilding, or renewing such equipment to extend the equipment's useful 
life.
    ``(f) Long Distance Restructuring Plan.--Unless the restructuring 
plan submitted by the Long Distance Route Restructuring Commission 
under section 106 of the Rail Passenger Service Restructuring, 
Reauthorization, and Development Act is disapproved by Congress, from 
the sums authorized for capital projects outside of the Northeast 
Corridor, the Secretary may reserve up to $20,000,000 in each of fiscal 
years 2007 through 2010 to assist in the restructuring of long distance 
routes as linked corridors, and the Federal share of such assistance 
shall be 100 percent.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $200,000,000 for each 
of fiscal years 2005 through 2010 to carry out this section.''.

SEC. 202. REGULATIONS IMPLEMENTING CHAPTER 244.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Transportation shall issue final 
regulations under chapter 244 of title 49, United States Code.
    (b) Specific Requirements.--The regulations under chapter 244 of 
title 49, United States Code, shall include--
            (1) the manner in which the Secretary will evaluate and 
        rate projects based on the results of alternatives analysis, 
        project justification, and the degree of local financial 
        commitment, as required by section 24402 of that title;
            (2) a definition of ``major capital project'' for purposes 
        of section 24403;
            (3) a requirement that project oversight begin during the 
        preliminary engineering stage of a project, unless the 
        Secretary finds it more appropriate to begin oversight during 
        another stage of a project, to maximize the transportation 
        benefits and cost savings associated with project management 
        oversight;
            (4) a deadline by which all grant applications for a fiscal 
        year shall be submitted that is early enough to permit the 
        Secretary to evaluate all timely applications thoroughly before 
        making grants;
            (5) a formula based on infrastructure ownership, boardings, 
        and passenger-miles traveled in the prior fiscal year by which 
        the funds authorized for modernization of existing services 
        will be allocated among the States; and
            (6) a requirement that, if a State does not apply for its 
        share of formula grant funds under paragraph (5) of this 
        subsection in a timely manner, those funds will be made 
        available to other States.

                           TITLE III--REFORMS

SEC. 301. MANAGEMENT OF SECURED DEBT.

    Except as approved by the Secretary of Transportation to refinance 
existing secured debt, Amtrak (until the American Passenger Railway 
Corporation is established) and the American Passenger Railway 
Corporation thereafter, may not enter into any obligation secured by 
assets after the date of enactment of this Act. This section does not 
prohibit unsecured lines of credit used for working capital purposes.

SEC. 302. EMPLOYEE ASSISTANCE.

    (a) Transition Financial Incentives.--
            (1) In general.--To reduce operating expenses in 
        preparation for competition from other rail carriers, the 
        American Passenger Railway Corporation may institute a program 
        under which it may, at its discretion, provide financial 
        incentives to employees who voluntarily terminate their 
        employment with the Corporation and relinquish any legal rights 
        to receive termination-related payments under any contractual 
        agreement with the Corporation.
            (2) Conditions for financial incentives.--As a condition 
        for receiving financial assistance grants under this section, 
        the American Passenger Railway Corporation shall certify to the 
        Secretary of Transportation that--
                    (A) the financial assistance results in a net 
                reduction in the total number of employees equal to the 
                number receiving financial incentives;
                    (B) the financial assistance results in a net 
                reduction in total employment expense equivalent to the 
                total employment expenses associated with the employees 
                receiving financial incentives; and
                    (C) the total number of employees eligible for 
                termination-related payments will not be increased 
                without the express written consent of the Secretary.
            (3) Amount of financial incentives.--The financial 
        incentives authorized under this section may not exceed 1 
        year's base pay.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary of Transportation 
        $25,000,000 for each of fiscal years 2005, 2006, and 2007 to 
        make grants to the American Passenger Railway Corporation to 
        fund financial incentive payments to employees under this 
        subsection.
    (b) Labor Protection for Employees of the American Passenger 
Railway Corporation.--
            (1) In general.--The American Passenger Railway Corporation 
        shall be responsible for obligations imposed by law or 
        collective bargaining agreement for compensation and benefits 
        payable to its employees terminated in connection with the 
        restructuring of passenger rail service under this Act and the 
        amendments made by this Act. The responsibility of the American 
        Passenger Railway Corporation under the preceding sentence, and 
        the obligations for which it is responsible under that 
        sentence, may not be transferred to any other entity in 
        connection with such restructuring by contract or otherwise.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary of Transportation for the 
        use of the American Passenger Railway Corporation in meeting 
        its responsibility under paragraph (1) $75,000,000 for each of 
        fiscal years 2007 through 2010.
            (3) Not an obligation of the united states.--
        Notwithstanding paragraph (2), nothing in paragraph (1) shall 
        be construed to mean that any labor protection obligation of 
        the American Passenger Railway Corporation under that paragraph 
        is an obligation of the United States Government.

SEC. 303. TERMINATION OF AUTHORITY FOR GSA TO PROVIDE SERVICES TO 
              AMTRAK.

    Section 1110 of division A of H.R. 5666 (114 Stat. 2763A-202), as 
enacted by section 1(a)(4) of the Consolidated Appropriations Act, 
2001, is repealed.

SEC. 304. AMTRAK REFORM BOARD OF DIRECTORS.

    Section 24302 is amended by adding at the end the following:
    ``(d) Asset Transition Committee.--
            ``(1) In general.--The Reform Board shall form an asset 
        transition committee comprised of the Secretary or the 
        Secretary's designee, and 2 other members, or 1 other member if 
        2 other members are not lawfully appointed.
            ``(2) Powers and duties.--In addition to other powers and 
        duties assigned by the board, the Asset Transition Committee 
        has the duty to ensure that the public interest is served in 
        board decisions and Amtrak management actions that change the 
        use of or status of--
                    ``(A) the contractual right of access of Amtrak to 
                rail lines of other railroads;
                    ``(B) Amtrak's secured debt;
                    ``(C) Northeast Corridor real property and assets; 
                and
                    ``(D) rolling stock.
            ``(3) Approval required.--The board may not take an action 
        with regard to the assets or secured debt specified in 
        paragraph (2), or permit Amtrak management action with regard 
        to those assets, that is not approved by the asset transition 
        committee.''.

SEC. 305. LIMITATIONS ON AVAILABILITY OF GRANTS.

    (a) In General.--Chapter 243, as amended by section 136 of this Act 
is amended by inserting after section 24318 the following:
``Sec. 24319. Limitations on availability of grants
    ``(a) In General.--In addition to any other requirement imposed 
under this title, grants under this subtitle are subject to the 
following conditions:
            ``(1) The Secretary of Transportation may approve funding 
        to cover operating losses or operating expenses (including 
        advance purchase orders) only after receiving and approving a 
        grant request for each specific train route to which the grant 
        relates.
            ``(2) Each such grant request shall be accompanied by a 
        detailed financial analysis, revenue projection, and capital 
        expenditure program justifying the Federal support to the 
        Secretary's satisfaction.
            ``(3) Not later than December 31st prior to each fiscal 
        year in which a grant under this subtitle is to be made, the 
        grant recipient shall transmit a business plan for operating 
        and capital improvements to be funded in the fiscal year under 
        section 24104(a) to the Secretary of Transportation, the 
        Committee on Commerce, Science, and Transportation of the 
        Senate, the Committee on Transportation and Infrastructure of 
        the House of Representatives, and the House of Representatives 
        and Senate Committees on Appropriations.
            ``(4) The business plan shall include--
                    ``(A) targets, as applicable, for ridership, 
                revenues, and capital and operating expenses;
                    ``(B) a separate accounting for such targets--
                            ``(i) on the Northeast Corridor;
                            ``(ii) each intercity train route;
                            ``(iii) as a group for long distance trains 
                        and corridor services; and
                            ``(iv) commercial activities, including 
                        contract operations and mail and express; and
                    ``(C) a description of the work to be funded, along 
                with cost estimates and an estimated timetable for 
                completion of the projects covered by the business 
                plan.
            ``(5) Each month of each fiscal year in which grants are 
        made under this subtitle, the grant recipient shall submit a 
        supplemental report in electronic format regarding the business 
        plan, which shall describe the work completed to date, any 
        changes to the business plan, and the reasons for such changes, 
        to the Secretary of Transportation, the Committee on Commerce, 
        Science, and Transportation of the Senate, the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives, and the House of Representatives and Senate 
        Committees on Appropriations.
            ``(6) None of the funds authorized by this subtitle or the 
        Rail Passenger Service Restructuring, Reauthorization, and 
        Development Act may be disbursed for operating expenses, 
        including advance purchase orders and capital projects not 
        approved by the Secretary nor in the business plan submitted by 
        the grant recipient under paragraph (3).
            ``(7) The grant recipient shall display the business plan 
        required by paragraph (3) and all subsequent supplemental plans 
        required by paragraph (5) on its website within a reasonable 
        time after they are submitted to the Secretary and the Congress 
        under this section.
            ``(8) The Secretary may not make any grant under this 
        subtitle, until the grant recipient agrees to continue abiding 
        by the provisions of paragraphs (1), (2), (5), (9), and (11) of 
        the summary of conditions on the direct loan agreement of June 
        28, 2002, until the loan is repaid.
            ``(9) With respect to any route on which intercity 
        passenger rail service is provided on the day before the date 
        on which the restructuring required by section 24300 is 
        completed (as determined by the Secretary), the American 
        Passenger Railway Corporation shall make available to any 
        replacement operator the legacy equipment that is associated 
        with the service on the route. The equipment shall be made 
        available on such terms as the National Railroad Passenger 
        Corporation determines are fair, reasonable, and in the public 
        interest.
            ``(10) The American Passenger Railway Corporation shall 
        provide interline reservations services to any other provider 
        of intercity passenger rail transportation on the same basis 
        and at the same rates as those services were provided to the 
        operating entities that provide passenger rail service within 
        Amtrak as of the date of enactment of the Rail Passenger 
        Service Restructuring, Reauthorization, and Development Act.
    ``(b) Grant Recipient.--In this section, the term `grant recipient' 
means--
            ``(1) Amtrak, until the date on which the American 
        Passenger Railway Corporation is established; and
            ``(2) the American Passenger Railway Corporation, after it 
        is established.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 243 is 
amended by inserting after the item relating to section 24318 the 
following:

``24319. Limitations on availability of grants.''.

SEC. 306. REPEAL OF OBSOLETE AND EXECUTED PROVISIONS OF LAW.

    (a) In General.--The following sections are repealed:
            (1) Section 24701.
            (2) Section 24706.
            (3) Section 24901.
            (4) Section 24902.
            (5) Section 24904.
            (6) Section 24906.
            (7) Section 24909.
    (b) Amendment of Section 24305.--Section 24305 is amended--
            (1) by striking paragraph (2) of subsection (a) and 
        redesignating paragraph (3) as paragraph (2); and
            (2) by inserting ``With regard to items acquired with funds 
        provided by the Federal Government,'' before ``Amtrak'' in 
        subsection (f)(2).
    (c) Conforming Amendments.--The chapter analyses for chapters 243, 
247, and 249 are amended, as appropriate, by striking the items 
relating to sections 24307, 24701, 24706, 24901, 24902, 24904, 24906, 
24908, and 24909.

SEC. 307. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM.

    (a) In General.--The Inspector General of the Department of 
Transportation shall employ an independent financial consultant--
            (1) to assess Amtrak's financial accounting and reporting 
        system and practices as of the date of enactment of this Act;
            (2) to design and assist the American Passenger Railway 
        Corporation in implementing a modern financial accounting and 
        reporting system, on the basis of the assessment, that will 
        produce accurate and timely financial information in sufficient 
        detail--
                    (A) to enable the American Passenger Railway 
                Corporation to assign revenues and expenses 
                appropriately to each of its lines of business and to 
                each major activity within each line of business 
                activity, including train operations, equipment 
                maintenance, ticketing, and reservations;
                    (B) to aggregate expenses and revenues related to 
                infrastructure and distinguish them from expenses and 
                revenues related to rail operations; and
                    (C) to provide ticketing and reservation 
                information on a real-time basis.
    (b) Verification of System; Report.--The Inspector General of the 
Department of Transportation shall review the accounting system 
designed and implemented under subsection (a) to ensure that it 
accomplishes the purposes for which it is intended. The Inspector 
General shall report his findings and conclusions, together with any 
recommendations, to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure.
    (c) Separate Financial Statements for Northeast Corridor 
Infrastructure.--Beginning with fiscal year 2006, the American 
Passenger Railway Corporation shall issue separate financial statements 
for activities related to the infrastructure of the Northeast Corridor.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $2,500,000 for fiscal 
year 2005 to carry out subsection (a), such sums to remain available 
until expended.

SEC. 308. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.

    (a) In General.--The Secretary of the Treasury, in consultation 
with the Secretary of Transportation and Amtrak, shall restructure 
Amtrak's indebtedness as of the date of enactment of this Act.
    (b) Debt Redemption.--The Secretary of Transportation, in 
consultation with the Secretary of the Treasury, shall enter into 
negotiations with the holders of Amtrak debt, including leases, that is 
outstanding on the date of enactment of this Act for the purpose of 
restructuring that debt. The Secretary, in consultation with the 
Secretary of the Treasury, shall secure agreements for repayment on 
such terms as the Secretary deems favorable to the interests of the 
Government.
    (c) Criteria.--In redeeming or restructuring Amtrak's indebtedness, 
the Secretaries and Amtrak--
            (1) shall ensure that the restructuring imposes the least 
        practicable burden on taxpayers; and
            (2) take into consideration repayment costs, the term of 
        any loan or loans, and market conditions.
    (d) Early Redemption Plan.--Within 1 year after the date of 
enactment of this Act, the Secretary of Transportation and the 
Secretary of the Treasury shall transmit to the Congress--
            (1) a plan for the early redemption of Amtrak debt; and
            (2) a proposal for covering the costs associated with the 
        early redemption.
    (e) Amtrak Principal and Interest Payments.--
            (1) Principal on debt service.--Unless the Secretary of 
        Transportation and the Secretary of the Treasury restructure or 
        redeem the debt, there are authorized to be appropriated to the 
        Secretary of Transportation for the use of Amtrak (before the 
        date, determined by the Secretary of Transportation, on which 
        the restructuring required by section 24300 of title 49, United 
        States Code, is completed) and the American Passenger Railway 
        Corporation (after that date) for retirement of principal on 
        loans for capital equipment, or capital leases, not more than 
        the following amounts:
                    (A) For fiscal year 2005, $110,000,000.
                    (B) For fiscal year 2006, $115,000,000.
                    (C) For fiscal year 2007, $205,000,000.
                    (D) For fiscal year 2008, $165,000,000.
                    (E) For fiscal year 2009, $155,000,000.
                    (F) For fiscal year 2010, $150,000,000.
            (2) Interest on debt.--Unless the Secretary of 
        Transportation and the Secretary of the Treasury restructure or 
        redeem the debt, there are authorized to be appropriated to the 
        Secretary of Transportation for the use of Amtrak (before the 
        date, determined by the Secretary of Transportation, on which 
        the restructuring required by section 24300 of title 49, United 
        States Code, is completed) and the American Passenger Railway 
        Corporation (after that date) for the payment of interest on 
        loans for capital equipment, or capital leases, the following 
        amounts:
                    (A) For fiscal year 2005, $155,000,000.
                    (B) For fiscal year 2006, $150,000,000.
                    (C) For fiscal year 2007, $140,000,000.
                    (D) For fiscal year 2008, $130,000,000.
                    (E) For fiscal year 2009, $125,000,000.
                    (F) For fiscal year 2010, $115,000,000.
            (3) Reductions in authorization levels.--Whenever action 
        taken by the Secretary of the Treasury under subsection (c) 
        results in reductions in amounts of principle and interest that 
        Amtrak must service on existing debt, Amtrak shall submit to 
        the Senate Committee on Commerce, Science and Transportation, 
        the House of Representatives Committee on Transportation and 
        Infrastructure, the Senate Committee on Appropriations, and 
        House of Representatives Committee on Appropriations revised 
        requests for amounts authorized by paragraphs (1) and (2) that 
        reflect such reductions.
    (f) Legal Effect of Payments Under This Section.--The payment of 
principal and interest secured debt with the proceeds of grants under 
subsection (f) shall not--
            (1) modify the extent or nature of any indebtedness of the 
        National Railroad Passenger Corporation to the United States in 
        existence of the date of enactment of this Act;
            (2) change the private nature of Amtrak's or its 
        successors' liabilities; or
            (3) imply any Federal guarantee or commitment to amortize 
        Amtrak's outstanding indebtedness.

SEC. 309. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary of 
Transportation for the benefit of Amtrak for fiscal year 2005 
$750,000,000 for operating expenses.
                                 <all>