[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1631 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1631

To provide for the financing of high-speed rail infrastructure, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 14, 2005

Mr. Young of Alaska (for himself, Mr. Oberstar, Mr. LaTourette, and Ms. 
  Corrine Brown of Florida) introduced the following bill; which was 
referred to the Committee on Transportation and Infrastructure, and in 
    addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To provide for the financing of high-speed rail infrastructure, and for 
                            other purposes.

    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 Infrastructure Development and 
Expansion Act for the 21st Century''.

SEC. 2. HIGH-SPEED INTERCITY RAIL FACILITY BONDS.

    (a) Amendment.--Chapter 261 of title 49, United States Code, is 
amended by adding at the end the following new section:
``Sec. 26106. High-speed rail infrastructure bonds
    ``(a) Designation.--The Secretary may designate bonds for purposes 
of subsection (f) or section 54 of the Internal Revenue Code of 1986 
if--
            ``(1) the bonds are to be issued by--
                    ``(A) a State, if the entire railroad passenger 
                transportation corridor containing the infrastructure 
                project to be financed is within the State;
                    ``(B) 1 or more of the States that have entered 
                into an agreement or an interstate compact consented to 
                by Congress under section 410(a) of Public Law 105-134 
                (49 U.S.C 24101 nt); or
                    ``(C) an agreement or an interstate compact 
                described in subparagraph (B);
            ``(2) the bonds are for the purpose of financing--
                    ``(A) projects that make a substantial contribution 
                to providing the infrastructure and equipment required 
                to complete a high-speed rail transportation corridor 
                (including projects for the acquisition, financing, or 
                refinancing of equipment and other capital 
                improvements, including the introduction of new high-
                speed technologies such as magnetic levitation systems, 
                track or signal improvements, the elimination of grade 
                crossings, development of intermodal facilities, 
                improvement of train speeds or safety, or both, and 
                station rehabilitation or construction), but only if 
                the Secretary determines that the projects are part of 
                a viable and comprehensive high-speed rail 
                transportation corridor design for intercity passenger 
                service, including a design for minimally operable 
                segments of a corridor designated under section 
                104(d)(2) of title 23, United States Code; or
                    ``(B) projects for the Alaska Railroad;
            ``(3) for a railroad passenger transportation corridor 
        design that includes the use of rights-of-way owned by a 
        freight railroad, a written agreement exists between the 
        applicant and the freight railroad regarding such use and 
        ownership, including compensation for such use and assurances 
        regarding the adequacy of infrastructure capacity to 
        accommodate both existing and future freight and passenger 
        operations, and including an assurance by the freight railroad 
        that collective bargaining agreements with the freight 
        railroad's employees (including terms regulating the 
        contracting of work) shall remain in full force and effect 
        according to their terms for work performed by the freight 
        railroad on such railroad passenger transportation corridor;
            ``(4) the corridor design eliminates existing railway-
        highway grade crossings that the Secretary determines would 
        impede high-speed rail operations;
            ``(5) the applicant agrees to comply with--
                    ``(A) the standards of section 24312, as in effect 
                on September 1, 2002, with respect to the project in 
                the same manner that the National Railroad Passenger 
                Corporation is required to comply with such standards 
                for construction work financed under an agreement made 
                under section 24308(a); and
                    ``(B) the protective arrangements established under 
                section 504 of the Railroad Revitalization and 
                Regulatory Reform Act of 1976 (45 U.S.C. 836) with 
                respect to employees affected by actions taken in 
                connection with the project to be financed by the bond; 
                and
            ``(6) the applicant agrees not to pay the principal or 
        interest on the bonds using funds derived directly or 
        indirectly from the Highway Trust Fund, except as permitted by 
        law as of the date of the enactment of this section.
    ``(b) Bond Amount Limitation.--
            ``(1) In general.--The amount of bonds designated under 
        this section may not exceed--
                    ``(A) in the case of subsection (f) bonds, 
                $1,200,000,000 for each of the fiscal years 2006 
                through 2015; and
                    ``(B) in the case of section 54 bonds, 
                $1,200,000,000 for each of the fiscal years 2006 
                through 2015.
            ``(2) Carryover of unused limitation.--If for any fiscal 
        year the limitation amount under subparagraph (A) or (B) of 
        paragraph (1) exceeds--
                    ``(A) with respect to subparagraph (A) of paragraph 
                (1), the amount of subsection (f) bonds issued during 
                such year; or
                    ``(B) with respect to subparagraph (B) of paragraph 
                (1), the amount of section 54 bonds issued during such 
                year,
        the limitation amount under subparagraph (A) or (B) of 
        paragraph (1), as the case may be, for the following fiscal 
        year (through fiscal year 2019) shall be increased by the 
        amount of such excess.
    ``(c) Preference.--The Secretary shall give preference to the 
designation under this section of bonds for projects--
            ``(1) to be funded through a combination of subsection (f) 
        bonds and section 54 bonds;
            ``(2) which propose to link rail passenger service with 
        other modes of transportation;
            ``(3) expected to have a significant impact on air traffic 
        congestion;
            ``(4) expected to also improve commuter rail operations;
            ``(5) where all environmental work has already been 
        completed and the project is ready to commence; or
            ``(6) that have received financial commitments and other 
        support of State and local governments.
    ``(d) Timely Disposition of Application.--The Secretary shall grant 
or deny a requested designation within 9 months after receipt of an 
application.
    ``(e) Annual Reports.--
            ``(1) From issuer of bonds.--The issuer of bonds designated 
        under subsection (a) shall report annually to the Secretary 
        regarding the terms of outstanding designated bonds and the 
        progress made with respect to the project financed by the 
        bonds.
            ``(2) From secretary.--The Secretary, in consultation with 
        the Secretary of the Treasury, shall transmit to the Congress 
        an annual report which includes--
                    ``(A) reports received under paragraph (1); and
                    ``(B) an assessment of the progress made toward 
                completion of high-speed rail transportation corridors 
                resulting from projects financed by bonds designated 
                under subsection (a).
    ``(f) Tax Treatment of Subsection (f) Bonds.--
            ``(1) Exclusion from gross income.--The interest on a bond 
        designated by the Secretary under subsection (a) for purposes 
        of this subsection shall be excluded from gross income under 
        section 103 of the Internal Revenue Code of 1986, 
        notwithstanding section 149(c) of such Code.
            ``(2) Exemption from volume cap.--For purposes of section 
        146 of such Code, a bond designated by the Secretary under 
        subsection (a) for purposes of this subsection shall be 
        considered to be exempt from the volume cap of the issuing 
        authority in the same manner as bonds listed in subsection (g) 
        of such section 146.
    ``(g) Refinancing Rules.--Bonds designated by the Secretary under 
subsection (a) may be issued for refinancing projects only if the 
indebtedness being refinanced (including any obligation directly or 
indirectly refinanced by such indebtedness) was originally incurred by 
the issuer--
            ``(1) after the date of the enactment of this section;
            ``(2) for a term of not more than 3 years;
            ``(3) to finance projects described in subsection (a)(2); 
        and
            ``(4) in anticipation of being refinanced with proceeds of 
        a bond designated under subsection (a).
    ``(h) Provisions Regarding High-Speed Rail Service.--
            ``(1) Status as employer or carrier.--Any entity providing 
        railroad transportation (within the meaning of section 20102) 
        that begins operations after the date of the enactment of this 
        section and that uses property acquired pursuant to this 
        section (except as provided in subsection (a)(2)(B)), 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 high-speed intercity passenger railroad 
        transportation (within the meaning of section 20102) that 
        begins operations after the date of enactment of this section 
        on a project funded in whole or in part by bonds designated 
        under subsection (a), and replaces intercity rail passenger 
        service that was provided by another entity as of the date of 
        enactment of this section, 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) Immediate replacement of existing rail passenger 
        service.--
                    ``(A) Negotiations.--If the replacement of 
                preexisting intercity rail passenger service occurs 
                concurrent with or within a reasonable amount of time 
                before the commencement of the replacing entity's high-
                speed rail passenger service, the replacing entity 
                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 paragraph (2)(A)-(D). 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 
                paragraph (2)(A)-(D) 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 seven 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 paragraph (2)(A)-(D). 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; all other expenses shall be 
                paid by the party incurring them.
                    ``(C) Service commencement.--A replacing entity 
                under this paragraph shall commence service only after 
                an agreement is entered into with respect to the 
                matters set forth in paragraph (2)(A)-(D) or the 
                decision of the arbitrator has been rendered.
            ``(4) Subsequent replacement of existing rail passenger 
        service.--If the replacement of existing rail passenger service 
        takes place within 3 years after the replacing entity commences 
        high-speed rail passenger service, the replacing entity and the 
        collective bargaining agent or agents for the employees of the 
        predecessor provider shall enter into an agreement with respect 
        to the matters set forth in paragraph (2)(A)-(D). If the 
        parties have not entered into an agreement with respect to all 
        such matters within 60 days after the date on which the 
        replacing entity replaces the predecessor provider, the parties 
        shall select an arbitrator using the procedures set forth in 
        paragraph (3)(B), who shall, within 20 days after the 
        commencement of the arbitration, conduct a hearing and decide 
        all unresolved issues. This decision shall be final, binding, 
        and conclusive upon the parties.
    ``(i) Issuance of Regulations.--Not later than 6 months after the 
date of the enactment of this section, the Secretary shall issue 
regulations for carrying out this section.
    ``(j) Definitions.--For purposes of this section--
            ``(1) Subsection (f) bond.--The term `subsection (f) bond' 
        means a bond designated by the Secretary under subsection (a) 
        for purposes of subsection (f).
            ``(2) Section 54 bond.--The term `section 54 bond' means a 
        bond designated by the Secretary under subsection (a) for 
        purposes of section 54 of the Internal Revenue Code of 1986 
        (relating to credit to holders of qualified high-speed rail 
        infrastructure bonds).''.
    (b) Table of Sections Amendment.--The table of sections of chapter 
261 of title 49, United States Code, is amended by adding after the 
item relating to section 26105 the following new item:

``26106. High-speed rail infrastructure bonds.''.

SEC. 3. TAX CREDIT TO HOLDERS OF QUALIFIED HIGH-SPEED RAIL 
              INFRASTRUCTURE BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to credits against tax) is 
amended by adding at the end the following new subpart:

 ``Subpart H--Nonrefundable Credit for Holders of Qualified High-Speed 
                       Rail Infrastructure Bonds

``Sec. 54. Credit to holders of qualified high-speed rail 
                            infrastructure bonds.

``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED HIGH-SPEED RAIL 
              INFRASTRUCTURE BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
qualified high-speed rail infrastructure bond on a credit allowance 
date of such bond which occurs during the taxable year, there shall be 
allowed as a credit against the tax imposed by this chapter for such 
taxable year an amount equal to the sum of the credits determined under 
subsection (b) with respect to credit allowance dates during such year 
on which the taxpayer holds such bond.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified high-speed rail infrastructure bond is 25 
        percent of the annual credit determined with respect to such 
        bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified high-speed rail infrastructure bond is 
        the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (2), the applicable credit rate with respect to an issue is the 
        rate equal to an average market yield (as of the day before the 
        date of sale of the issue) on outstanding long-term corporate 
        debt obligations (determined under regulations prescribed by 
        the Secretary).
            ``(4) Credit allowance date.--For purposes of this section, 
        the term `credit allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(5) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than this subpart and subpart C).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year.
    ``(d) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(e) Qualified High-Speed Rail Infrastructure Bond.--For purposes 
of this part, the term `qualified high-speed rail infrastructure bond' 
means any bond issued as part of an issue if--
            ``(1) the issuer certifies that the Secretary of 
        Transportation has designated the bond for purposes of this 
        section under section 26106(a) of title 49, United States Code, 
        as in effect on the date of the enactment of this section,
            ``(2) 95 percent or more of the proceeds from the sale of 
        such issue are to be used for expenditures incurred after the 
        date of the enactment of this section for any project described 
        in section 26106(a)(2) of title 49, United States Code,
            ``(3) the term of each bond which is part of such issue 
        does not exceed 20 years,
            ``(4) the payment of principal with respect to such bond is 
        the obligation solely of the issuer, and
            ``(5) the issue meets the requirements of subsection (f) 
        (relating to arbitrage).
    ``(f) Special Rules Relating to Arbitrage.--
            ``(1) In general.--Subject to paragraph (2), an issue shall 
        be treated as meeting the requirements of this subsection if as 
        of the date of issuance, the issuer reasonably expects--
                    ``(A) to spend at least 95 percent of the proceeds 
                from the sale of the issue for 1 or more qualified 
                projects within the 3-year period beginning on such 
                date,
                    ``(B) to incur a binding commitment with a third 
                party to spend at least 10 percent of the proceeds from 
                the sale of the issue, or to commence construction, 
                with respect to such projects within the 6-month period 
                beginning on such date, and
                    ``(C) to proceed with due diligence to complete 
                such projects and to spend the proceeds from the sale 
                of the issue.
            ``(2) Rules regarding continuing compliance after 3-year 
        determination.--If at least 95 percent of the proceeds from the 
        sale of the issue is not expended for 1 or more qualified 
        projects within the 3-year period beginning on the date of 
        issuance, but the requirements of paragraph (1) are otherwise 
        met, an issue shall be treated as continuing to meet the 
        requirements of this subsection if either--
                    ``(A) the issuer uses all unspent proceeds from the 
                sale of the issue to redeem bonds of the issue within 
                90 days after the end of such 3-year period, or
                    ``(B) the following requirements are met:
                            ``(i) The issuer spends at least 75 percent 
                        of the proceeds from the sale of the issue for 
                        1 or more qualified projects within the 3-year 
                        period beginning on the date of issuance.
                            ``(ii) Either--
                                    ``(I) the issuer spends at least 95 
                                percent of the proceeds from the sale 
                                of the issue for 1 or more qualified 
                                projects within the 4-year period 
                                beginning on the date of issuance, or
                                    ``(II) the issuer pays to the 
                                Federal Government any earnings on the 
                                proceeds from the sale of the issue 
                                that accrue after the end of the 3-year 
                                period beginning on the date of 
                                issuance and uses all unspent proceeds 
                                from the sale of the issue to redeem 
                                bonds of the issue within 90 days after 
                                the end of the 4-year period beginning 
                                on the date of issuance.
    ``(g) Recapture of Portion of Credit Where Cessation of 
Compliance.--
            ``(1) In general.--If any bond which when issued purported 
        to be a qualified high-speed rail infrastructure bond ceases to 
        be such a qualified bond, the issuer shall pay to the United 
        States (at the time required by the Secretary) an amount equal 
        to the sum of--
                    ``(A) the aggregate of the credits allowable under 
                this section with respect to such bond (determined 
                without regard to subsection (c)) for taxable years 
                ending during the calendar year in which such cessation 
                occurs and the 2 preceding calendar years, and
                    ``(B) interest at the underpayment rate under 
                section 6621 on the amount determined under 
                subparagraph (A) for each calendar year for the period 
                beginning on the first day of such calendar year.
            ``(2) Failure to pay.--If the issuer fails to timely pay 
        the amount required by paragraph (1) with respect to such bond, 
        the tax imposed by this chapter on each holder of any such bond 
        which is part of such issue shall be increased (for the taxable 
        year of the holder in which such cessation occurs) by the 
        aggregate decrease in the credits allowed under this section to 
        such holder for taxable years beginning in such 3 calendar 
        years which would have resulted solely from denying any credit 
        under this section with respect to such issue for such taxable 
        years.
            ``(3) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (2) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards under subsection (c) shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under paragraph (2) shall not be treated as a tax 
                imposed by this chapter for purposes of determining--
                            ``(i) the amount of any credit allowable 
                        under this part, or
                            ``(ii) the amount of the tax imposed by 
                        section 55.
    ``(h) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Qualified project.--The term `qualified project' 
        means any project described in section 26106(a)(2) of title 49, 
        United States Code.
            ``(3) Treatment of changes in use.--For purposes of 
        subsection (e)(2), the proceeds from the sale of an issue shall 
        not be treated as used for a qualified project to the extent 
        that the issuer takes any action within its control which 
        causes such proceeds not to be used for a qualified project. 
        The Secretary shall prescribe regulations specifying remedial 
        actions that may be taken (including conditions to taking such 
        remedial actions) to prevent an action described in the 
        preceding sentence from causing a bond to fail to be a 
        qualified high-speed rail infrastructure bond.
            ``(4) Partnership; s corporation; and other pass-thru 
        entities.--Under regulations prescribed by the Secretary, in 
        the case of a partnership, trust, S corporation, or other pass-
        thru entity, rules similar to the rules of section 41(g) shall 
        apply with respect to the credit allowable under subsection 
        (a).
            ``(5) Bonds held by regulated investment companies.--If any 
        qualified high-speed rail infrastructure bond is held by a 
        regulated investment company, the credit determined under 
        subsection (a) shall be allowed to shareholders of such company 
        under procedures prescribed by the Secretary.
            ``(6) Reporting.--Issuers of qualified high-speed rail 
        infrastructure bonds shall submit reports similar to the 
        reports required under section 149(e).''.
    (b) Amendments to Other Code Sections.--
            (1) Reporting.--Subsection (d) of section 6049 of the 
        Internal Revenue Code of 1986 (relating to returns regarding 
        payments of interest) is amended by adding at the end the 
        following new paragraph:
            ``(8) Reporting of credit on qualified high-speed rail 
        infrastructure bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54(d) and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54(b)(4)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A), subsection 
                (b)(4) shall be applied without regard to subparagraphs 
                (A), (H), (I), (J), (K), and (L)(i) of such subsection.
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
            (2) Treatment for estimated tax purposes.--
                    (A) Individual.--Section 6654 of such Code 
                (relating to failure by individual to pay estimated 
                income tax) is amended by redesignating subsection (m) 
                as subsection (n) and by inserting after subsection (l) 
                the following new subsection:
    ``(m) Special Rule for Holders of Qualified High-Speed Rail 
Infrastructure Bonds.--For purposes of this section, the credit allowed 
by section 54 to a taxpayer by reason of holding a qualified high-speed 
rail infrastructure bond on a credit allowance date shall be treated as 
if it were a payment of estimated tax made by the taxpayer on such 
date.''.
                    (B) Corporate.--Section 6655 of such Code (relating 
                to failure by corporation to pay estimated income tax) 
                is amended by adding at the end of subsection (g) the 
                following new paragraph:
            ``(5) Special rule for holders of qualified high-speed rail 
        infrastructure bonds.--For purposes of this section, the credit 
        allowed by section 54 to a taxpayer by reason of holding a 
        qualified high-speed rail infrastructure bond on a credit 
        allowance date shall be treated as if it were a payment of 
        estimated tax made by the taxpayer on such date.''.
    (c) Clerical Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by adding at the end the following new 
        item:

 ``subpart h. nonrefundable credit for holders of qualified high-speed 
                      rail infrastructure bonds''.
            (2) Section 6401(b)(1) is amended by striking ``and G'' and 
        inserting ``G, and H''.
    (d) Issuance of Regulations.--Not later than 6 months after the 
date of the enactment of this section, the Secretary of the Treasury 
shall issue regulations for carrying out this section and the 
amendments made by this section.
    (e) High-Speed Intercity Rail Facilities.--
            (1) Requirement to meet title 49 requirements.--Section 
        142(i) of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new paragraph:
            ``(4) Additional requirements.--A bond issued as part of an 
        issue described in subsection (a)(11) shall not be considered 
        an exempt facility bond unless the requirements of paragraphs 
        (1) through (6) of section 26106(a) of title 49, United States 
        Code, are met.''.
            (2) Revision of speed requirement.--Section 142(i)(1) of 
        such Code is amended by striking ``150 miles per hour'' and 
        inserting ``110 miles per hour''.
    (f) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 4. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT.

    (a) Corridor Development.--
            (1) Amendments.--Section 26101 of title 49, United States 
        Code, is amended--
                    (A) in the section heading, by striking 
                ``planning'' and inserting ``development'';
                    (B) in the heading of subsection (a), by striking 
                ``Planning'' and inserting ``Development'';
                    (C) by striking ``corridor planning'' each place it 
                appears and inserting ``corridor development'';
                    (D) in subsection (b)(1)--
                            (i) by inserting ``, or if it is an 
                        activity described in subparagraph (M)'' after 
                        ``high-speed rail improvements'';
                            (ii) by striking ``and'' at the end of 
                        subparagraph (K);
                            (iii) by striking the period at the end of 
                        subparagraph (L) and inserting ``; and''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
            ``(M) the acquisition of locomotives, rolling stock, track, 
        and signal equipment.''; and
                    (E) in subsection (c)(2), by striking ``planning'' 
                and inserting ``development''.
            (2) Conforming amendment.--The item relating to section 
        26101 in the table of sections of chapter 261 of title 49, 
        United States Code, is amended by striking ``planning'' and 
        inserting ``development''.
    (b) Authorization of Appropriations.--Section 26104 of title 49, 
United States Code, is amended to read as follows:
``Sec. 26104. Authorization of appropriations
    ``(a) Fiscal Years 2006 Through 2013.--There are authorized to be 
appropriated to the Secretary--
            ``(1) $70,000,000 for carrying out section 26101; and
            ``(2) $30,000,000 for carrying out section 26102,
for each of the fiscal years 2006 through 2013.
    ``(b) Funds to Remain Available.--Funds made available under this 
section shall remain available until expended.''.

SEC. 5. REHABILITATION AND IMPROVEMENT FINANCING.

    (a) Definitions.--Section 102(7) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 802(7)) is amended to read as 
follows:
            ``(7) `railroad' has the meaning given that term in section 
        20102 of title 49, United States Code; and''.
    (b) General Authority.--Section 502(a) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(a)) is 
amended by striking ``Secretary may provide direct loans and loan 
guarantees to State and local governments,'' and inserting ``Secretary 
shall provide direct loans and loan guarantees to State and local 
governments, agreements or interstate compacts consented to by Congress 
under section 410(a) of Public Law 105-134 (49 U.S.C 24101 nt),''.
    (c) Extent of Authority.--Section 502(d) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(d)) is 
amended--
            (1) by striking ``$3,500,000,000'' and inserting 
        ``$35,000,000,000'';
            (2) by striking ``$1,000,000,000'' and inserting 
        ``$7,000,000,000''; and
            (3) by adding at the end the following new sentence: ``The 
        Secretary shall not establish any limit on the proportion of 
        the unused amount authorized under this subsection that may be 
        used for 1 loan or loan guarantee.''.
    (d) Cohorts of Loans.--Section 502(f) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(f)) is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``and'' at the end of subparagraph 
                (D);
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (C) by adding after subparagraph (D) the following 
                new subparagraph:
                    ``(E) the size and characteristics of the cohort of 
                which the loan or loan guarantee is a member; and''; 
                and
            (2) by adding at the end of paragraph (4) the following: 
        ``A cohort may include loans and loan guarantees. The Secretary 
        shall not establish any limit on the proportion of a cohort 
        that may be used for 1 loan or loan guarantee.''.
    (e) Conditions of Assistance.--Section 502 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822) is 
amended--
            (1) in subsection (f)(2)(A), by inserting ``, if any'' 
        after ``collateral offered''; and
            (2) by adding at the end of subsection (h) the following:
 ``The Secretary shall not require an applicant for a direct loan or 
loan guarantee under this section to provide collateral. The Secretary 
shall not require that an applicant for a direct loan or loan guarantee 
under this section have previously sought the financial assistance 
requested from another source. The Secretary shall require recipients 
of direct loans or loan guarantees under this section to apply the 
standards of section 26106(a)(5) of title 49, United States Code, to 
their projects.''.
    (f) Time Limit for Approval or Disapproval.--Section 502 of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822) is amended by adding at the end the following new subsection:
    ``(i) Time Limit for Approval or Disapproval.--Not later than 90 
days after receiving a complete application for a direct loan or loan 
guarantee under this section, the Secretary shall approve or disapprove 
the application.''.
    (g) Fees and Charges.--Section 503 of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 823) is amended by adding 
at the end the following new subsection:
    ``(l) Fees and Charges.--Except as provided in this title, the 
Secretary may not assess any fees, including user fees, or charges in 
connection with a direct loan or loan guarantee provided under section 
502.''.
    (h) Substantive Criteria and Standards.--Not later than 30 days 
after the date of the enactment of this Act, the Secretary of 
Transportation shall publish in the Federal Register and post on the 
Department of Transportation web site the substantive criteria and 
standards used by the Secretary to determine whether to approve or 
disapprove applications submitted under section 502 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822).
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