[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 294 Referred in House (RFH)]

  1st Session
                                 S. 294


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 31, 2007

     Referred to the Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 AN ACT


 
             To reauthorize Amtrak, 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 ``Passenger Rail Investment and 
Improvement Act of 2007''.

SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE.

    Except as otherwise specifically provided, whenever in this Act an 
amendment is expressed in terms of an amendment to a section or other 
provision of law, the reference shall be considered to be made to a 
section or other provision of title 49, United States Code.

SEC. 3. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Amendment of title 49, United States Code.
Sec. 3. Table of contents.
                        TITLE I--AUTHORIZATIONS

Sec. 101. Authorization for Amtrak capital and operating expenses and 
                            State capital grants.
Sec. 102. Authorization for the Federal Railroad Administration.
Sec. 103. Repayment of long-term debt and capital leases.
Sec. 104. Excess railroad retirement.
Sec. 105. Other authorizations.
          TITLE II--AMTRAK REFORM AND OPERATIONAL IMPROVEMENTS

Sec. 201. National railroad passenger transportation system defined.
Sec. 202. Amtrak Board of Directors.
Sec. 203. Establishment of improved financial accounting system.
Sec. 204. Development of 5-year financial plan.
Sec. 205. Establishment of grant process.
Sec. 206. State-supported routes.
Sec. 207. Independent auditor to establish methodologies for Amtrak 
                            route and service planning decisions.
Sec. 208. Metrics and standards.
Sec. 209. Passenger train performance.
Sec. 210. Long distance routes.
Sec. 210A. Report on service delays on certain passenger rail routes.
Sec. 211. Alternate passenger rail service program.
Sec. 212. Employee transition assistance.
Sec. 213. Northeast Corridor state-of-good-repair plan.
Sec. 214. Northeast Corridor infrastructure and operations 
                            improvements.
Sec. 215. Restructuring long-term debt and capital leases.
Sec. 216. Study of compliance requirements at existing intercity rail 
                            stations.
Sec. 217. Incentive pay.
Sec. 218. Access to Amtrak equipment and services.
Sec. 219. General Amtrak provisions.
Sec. 220. Private sector funding of passenger trains.
Sec. 221. On-board service improvements.
Sec. 222. Amtrak management accountability.
Sec. 223. Locomotive biodiesel fuel use study.
Sec. 224. Sense of the Senate regarding the need to maintain Amtrak as 
                            a national passenger rail system.
Sec. 225. Passenger rail study.
               TITLE III--INTERCITY PASSENGER RAIL POLICY

Sec. 301. Capital assistance for intercity passenger rail service; 
                            State rail plans.
Sec. 302. State rail plans.
Sec. 303. Next generation corridor train equipment pool.
Sec. 304. Federal rail policy.
Sec. 305. Rail cooperative research program.
Sec. 306. Passenger rail system comparison study.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Strategic plan on expanded cross-border passenger rail 
                            service during the 2010 Olympic Games.

                        TITLE I--AUTHORIZATIONS

SEC. 101. AUTHORIZATION FOR AMTRAK CAPITAL AND OPERATING EXPENSES AND 
              STATE CAPITAL GRANTS.

    (a) Operating Grants.--There are authorized to be appropriated to 
the Secretary of Transportation for the use of Amtrak for operating 
costs the following amounts:
            (1) For fiscal year 2007, $580,000,000.
            (2) For fiscal year 2008, $590,000,000.
            (3) For fiscal year 2009, $600,000,000.
            (4) For fiscal year 2010, $575,000,000.
            (5) For fiscal year 2011, $535,000,000.
            (6) For fiscal year 2012, $455,000,000.
    (b) Capital Grants.--There are authorized to be appropriated to the 
Secretary of Transportation for the use of Amtrak for capital projects 
(as defined in subparagraphs (A) and (B) of section 24401(2) of title 
49, United States Code) to bring the Northeast Corridor (as defined in 
section 24102(a)) to a state-of-good-repair, for capital expenses of 
the national railroad passenger transportation system, and for purposes 
of making capital grants under section 24402 of that title to States, 
the following amounts:
            (1) For fiscal year 2007, $813,000,000.
            (2) For fiscal year 2008, $910,000,000.
            (3) For fiscal year 2009, $1,071,000,000.
            (4) For fiscal year 2010, $1,096,000,000.
            (5) For fiscal year 2011, $1,191,000,000.
            (6) For fiscal year 2012, $1,231,000,000.
    (c) Amounts for State Grants.--Out of the amounts authorized under 
subsection (b), the following percentage shall be available each fiscal 
year for capital grants to States under section 24402 of title 49, 
United States Code, to be administered by the Secretary of 
Transportation:
            (1) 3 percent for fiscal year 2007.
            (2) 11 percent for fiscal year 2008.
            (3) 23 percent for fiscal year 2009.
            (4) 25 percent for fiscal year 2010.
            (5) 31 percent for fiscal year 2011.
            (6) 33 percent for fiscal year 2012.
    (d) Project Management Oversight.--The Secretary may withhold up to 
\1/2\ of 1 percent of amounts appropriated pursuant to subsection (b) 
for the costs of project management oversight of capital projects 
carried out by Amtrak.

SEC. 102. AUTHORIZATION FOR THE FEDERAL RAILROAD ADMINISTRATION.

    There are authorized to be appropriated to the Secretary of 
Transportation for the use of the Federal Railroad Administration such 
sums as necessary to implement the provisions required under this Act 
for fiscal years 2007 through 2012.

SEC. 103. REPAYMENT OF LONG-TERM DEBT AND CAPITAL LEASES.

    (a) Amtrak Principal and Interest Payments.--
            (1) Principal on debt service.--There are authorized to be 
        appropriated to the Secretary of Transportation for the use of 
        Amtrak for retirement of principal on loans for capital 
        equipment, or capital leases, not more than the following 
        amounts:
                    (A) For fiscal year 2007, $153,900,000.
                    (B) For fiscal year 2008, $153,400,000.
                    (C) For fiscal year 2009, $180,600,000.
                    (D) For fiscal year 2010, $182,800,000.
                    (E) For fiscal year 2011, $189,400,000.
                    (F) For fiscal year 2012, $202,600,000.
            (2) Interest on debt.--There are authorized to be 
        appropriated to the Secretary of Transportation for the use of 
        Amtrak for the payment of interest on loans for capital 
        equipment, or capital leases, the following amounts:
                    (A) For fiscal year 2007, $139,600,000.
                    (B) For fiscal year 2008, $131,300,000.
                    (C) For fiscal year 2009, $121,700,000.
                    (D) For fiscal year 2010, $111,900,000.
                    (E) For fiscal year 2011, $101,900,000.
                    (F) For fiscal year 2012, $90,200,000.
            (3) Early buyout option.--There are authorized to be 
        appropriated to the Secretary of Transportation such sums as 
        may be necessary for the use of Amtrak for the payment of costs 
        associated with early buyout options if the exercise of those 
        options is determined to be advantageous to Amtrak.
            (4) Legal effect of payments under this section.--The 
        payment of principal and interest on secured debt, with the 
        proceeds of grants authorized by this section shall not--
                    (A) 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;
                    (B) change the private nature of Amtrak's or its 
                successors' liabilities; or
                    (C) imply any Federal guarantee or commitment to 
                amortize Amtrak's outstanding indebtedness.

SEC. 104. EXCESS RAILROAD RETIREMENT.

    There are authorized to be appropriated to the Secretary of 
Transportation, beginning with fiscal year 2007, such sums as may be 
necessary to pay to the Railroad Retirement Account an amount equal to 
the amount Amtrak must pay under section 3221 of the Internal Revenue 
Code of 1986 in such fiscal years that is more than the amount needed 
for benefits for individuals who retire from Amtrak and for their 
beneficiaries. For each fiscal year in which the Secretary makes such a 
payment, the amounts authorized by section 101(a) shall be reduced by 
an amount equal to such payment.

SEC. 105. OTHER AUTHORIZATIONS.

    There are authorized to be appropriated to the Secretary of 
Transportation--
            (1) $5,000,000 for each of fiscal years 2007 through 2012 
        to carry out the rail cooperative research program under 
        section 24910 of title 49, United States Code;
            (2) $5,000,000 for fiscal year 2008, to remain available 
        until expended, for grants to Amtrak and States participating 
        in the Next Generation Corridor Train Equipment Pool Committee 
        established under section 303 of this Act for the purpose of 
        designing, developing specifications for, and initiating the 
        procurement of an initial order of 1 or more types of 
        standardized next-generation corridor train equipment and 
        establishing a jointly-owned corporation to manage that 
        equipment; and
            (3) $2,000,000 for fiscal year 2008, for the use of Amtrak 
        in conducting the evaluation required by section 216 of this 
        Act.

          TITLE II--AMTRAK REFORM AND OPERATIONAL IMPROVEMENTS

SEC. 201. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM DEFINED.

    (a) In General.--Section 24102 is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (2), (3), and (4), respectively; and
            (3) by inserting after paragraph (4) as so redesignated the 
        following:
            ``(5) `national rail passenger transportation system' 
        means--
                    ``(A) the segment of the Northeast Corridor between 
                Boston, Massachusetts and Washington, DC;
                    ``(B) rail corridors that have been designated by 
                the Secretary of Transportation as high-speed corridors 
                (other than corridors described in subparagraph (A)), 
                but only after they have been improved to permit 
                operation of high-speed service;
                    ``(C) long distance routes of more than 750 miles 
                between endpoints operated by Amtrak as of the date of 
                enactment of the Passenger Rail Investment and 
                Improvement Act of 2007; and
                    ``(D) short-distance corridors, or routes of not 
                more than 750 miles between endpoints, operated by--
                            ``(i) Amtrak; or
                            ``(ii) another rail carrier that receives 
                        funds under chapter 244.''.
    (b) Amtrak Routes With State Funding.--
            (1) In general.--Chapter 247 is amended by inserting after 
        section 24701 the following:
``Sec. 24702. Transportation requested by States, authorities, and 
              other persons
    ``(a) Contracts for Transportation.--Amtrak may enter into a 
contract with a State, a regional or local authority, or another person 
for Amtrak to operate an intercity rail service or route not included 
in the national rail passenger transportation system upon such terms as 
the parties thereto may agree.
    ``(b) Discontinuance.--Upon termination of a contract entered into 
under this section, or the cessation of financial support under such a 
contract by either party, Amtrak may discontinue such service or route, 
notwithstanding any other provision of law.''.
            (2) Conforming amendment.--The chapter analysis for chapter 
        247 is amended by inserting after the item relating to section 
        24701 the following:

``24702. Transportation requested by States, authorities, and other 
                            persons.''.
    (c) Amtrak To Continue To Provide Non-High-speed Services.--Nothing 
in this Act is intended to preclude Amtrak from restoring, improving, 
or developing non-high-speed intercity passenger rail service.
    (d) Applicability of Section 24706.--Section 24706 is amended by 
adding at the end the following:
    ``(c) Applicability.--This section applies to all service over 
routes provided by Amtrak, notwithstanding any provision of section 
24701 of this title or any other provision of this title except section 
24702(b).''.
    (e) Amtrak's Mission.--
            (1) Section 24101 is amended--
                     (A) by striking ``purpose'' in the section heading 
                and inserting ``mission'';
                    (B) by striking subsection (b) and inserting the 
                following:
    ``(b) Mission.--
            ``(1) In general.--The mission of Amtrak is to provide 
        efficient and effective intercity passenger rail mobility 
        consisting of high quality service that is trip-time 
        competitive with other intercity travel options and that is 
        consistent with the goals of subsection (d).
            ``(2) Performance measurement.--All measurements of Amtrak 
        performance, including decisions on whether, and to what 
        extent, to provide operating subsidies, shall be based on 
        Amtrak's ability to carry out the mission described in 
        paragraph (1).''; and
                    (C) by redesignating paragraphs (9) through (11) in 
                subsection (c) as paragraphs (10) through (12), 
                respectively, and inserting after paragraph (8) the 
                following:
            ``(9) provide redundant or complimentary intercity 
        transportation service to ensure mobility in times of national 
        disaster or other instances where other travel options are not 
        adequately available;''.
    (2) Conforming amendment.--The chapter analysis for chapter 241 is 
amended by striking the item relating to section 24101 and inserting 
the following:

``24101. Findings, mission, and goals''.

SEC. 202. AMTRAK BOARD OF DIRECTORS.

    (a) In General.--Section 24302 is amended to read as follows:
``Sec. 24302. Board of directors
    ``(a) Composition and Terms.--
            ``(1) The Board of Directors of Amtrak is composed of the 
        following 10 directors, each of whom must be a citizen of the 
        United States:
                    ``(A) The Secretary of Transportation.
                    ``(B) The President of Amtrak, who shall serve ex 
                officio, as a non-voting member.
                    ``(C) 8 individuals appointed by the President of 
                the United States, by and with the advice and consent 
                of the Senate, with general business and financial 
                experience, experience or qualifications in 
                transportation, freight and passenger rail 
                transportation, travel, hospitality, cruise line, and 
                passenger air transportation businesses, or 
                representatives of employees or users of passenger rail 
                transportation or a State government.
            ``(2) In selecting individuals described in paragraph (1) 
        for nominations for appointments to the Board, the President 
        shall consult with the Speaker of the House of Representatives, 
        the minority leader of the House of Representatives, the 
        majority leader of the Senate, and the minority leader of the 
        Senate and try to provide adequate and balanced representation 
        of the major geographic regions of the United States served by 
        Amtrak.
            ``(3) An individual appointed under paragraph (1)(C) of 
        this subsection serves for 5 years or until the individual's 
        successor is appointed and qualified. Not more than 5 
        individuals appointed under paragraph (1)(C) may be members of 
        the same political party.
            ``(4) The Board shall elect a chairman and a vice chairman 
        from among its membership. The vice chairman shall serve as 
        chairman in the absence of the chairman.
            ``(5) The Secretary may be represented at board meetings by 
        the Secretary's designee.
            ``(6) The voting privileges of the President can be changed 
        by a unanimous decision of the Board.
    ``(b) Pay and Expenses.--Each director not employed by the United 
States Government is entitled to $300 a day when performing Board 
duties. Each Director is entitled to reimbursement for necessary 
travel, reasonable secretarial and professional staff support, and 
subsistence expenses incurred in attending Board meetings.
    ``(c) Vacancies.--A vacancy on the Board is filled in the same way 
as the original selection, except that an individual appointed by the 
President of the United States under subsection (a)(1)(C) of this 
section to fill a vacancy occurring before the end of the term for 
which the predecessor of that individual was appointed is appointed for 
the remainder of that term. A vacancy required to be filled by 
appointment under subsection (a)(1)(C) must be filled not later than 
120 days after the vacancy occurs.
    ``(d) Quorum.--A majority of the members serving shall constitute a 
quorum for doing business.
    ``(e) Bylaws.--The Board may adopt and amend bylaws governing the 
operation of Amtrak. The bylaws shall be consistent with this part and 
the articles of incorporation.''.
    (b) Effective Date for Directors' Provision.--The amendment made by 
subsection (a) shall take effect on October 1, 2007. The members of the 
Amtrak Board serving on the date of enactment of this Act may continue 
to serve for the remainder of the term to which they were appointed.

SEC. 203. ESTABLISHMENT OF IMPROVED FINANCIAL ACCOUNTING SYSTEM.

    (a) In General.--The Amtrak Board of Directors--
            (1) may employ an independent financial consultant with 
        experience in railroad accounting to assist Amtrak in improving 
        Amtrak's financial accounting and reporting system and 
        practices;
            (2) shall implement a modern financial accounting and 
        reporting system; and
            (3) shall, not later than 90 days after the end of each 
        fiscal year through fiscal year 2012--
                    (A) submit to Congress a comprehensive report that 
                allocates all of Amtrak's revenues and costs to each of 
                its routes, each of its lines of business, and each 
                major activity within each route and line of business 
                activity, including--
                            (i) train operations;
                            (ii) equipment maintenance;
                            (iii) food service;
                            (iv) sleeping cars;
                            (v) ticketing; and
                            (vi) reservations;
                    (B) include the report described in subparagraph 
                (A) in Amtrak's annual report; and
                    (C) post such report on Amtrak's website.
    (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) Categorization of Revenues and Expenses.--
            (1) In general.--In carrying out subsection (a), the Amtrak 
        Board of Directors shall separately categorize routes, assigned 
        revenues, and attributable expenses by type of service, 
        including long distance routes, State-sponsored routes, 
        commuter contract routes, and Northeast Corridor routes.
            (2) Northeast corridor.--Amtrak revenues generated by 
        freight and commuter railroads operating on the Northeast 
        Corridor shall be separately listed to include the charges per 
        car mile assessed by Amtrak to other freight and commuter 
        railroad entities.
            (3) Fixed overhead expenses.--Fixed overhead expenses that 
        are not directly assigned or attributed to any route (or group 
        of routes) shall be listed separately by line item and expense 
        category.

SEC. 204. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

    (a) Development of 5-Year Financial Plan.--The Amtrak Board of 
Directors shall submit an annual budget and business plan for Amtrak, 
and a 5-year financial plan for the fiscal year to which that budget 
and business plan relate and the subsequent 4 years, prepared in 
accordance with this section, to the Secretary of Transportation and 
the Inspector General of the Department of Transportation no later 
than--
            (1) the first day of each fiscal year beginning after the 
        date of enactment of this Act; or
            (2) the date that is 60 days after the date of enactment of 
        an appropriation Act for the fiscal year, if later.
    (b) Contents of 5-Year Financial Plan.--The 5-year financial plan 
for Amtrak shall include, at a minimum--
            (1) all projected revenues and expenditures for Amtrak, 
        including governmental funding sources;
            (2) projected ridership levels for all Amtrak passenger 
        operations;
            (3) revenue and expenditure forecasts for non-passenger 
        operations;
            (4) capital funding requirements and expenditures necessary 
        to maintain passenger service which will accommodate predicted 
        ridership levels and predicted sources of capital funding;
            (5) operational funding needs, if any, to maintain current 
        and projected levels of passenger service, including state-
        supported routes and predicted funding sources;
            (6) projected capital and operating requirements, 
        ridership, and revenue for any new passenger service operations 
        or service expansions;
            (7) an assessment of the continuing financial stability of 
        Amtrak, as indicated by factors such as the ability of the 
        Federal government to fund capital and operating requirements 
        adequately, Amtrak's ability to efficiently manage its 
        workforce, and Amtrak's ability to effectively provide 
        passenger train service;
            (8) estimates of long-term and short-term debt and 
        associated principal and interest payments (both current and 
        anticipated);
            (9) annual cash flow forecasts;
            (10) a statement describing methods of estimation and 
        significant assumptions;
            (11) specific measures that demonstrate measurable 
        improvement year over year in Amtrak's ability to operate with 
        reduced Federal operating assistance;
            (12) prior fiscal year and projected operating ratio, cash 
        operating loss, and cash operating loss per passenger on a 
        route, business line, and corporate basis;
            (13) prior fiscal year and projected specific costs and 
        savings estimates resulting from reform initiatives;
            (14) prior fiscal year and projected labor productivity 
        statistics on a route, business line, and corporate basis;
            (15) prior fiscal year and projected equipment reliability 
        statistics; and
            (16) capital and operating expenditure for anticipated 
        security needs.
    (c) Standards To Promote Financial Stability.--In meeting the 
requirements of subsection (b), Amtrak shall--
            (1) apply sound budgetary practices, including reducing 
        costs and other expenditures, improving productivity, 
        increasing revenues, or combinations of such practices;
            (2) use the categories specified in the financial 
        accounting and reporting system developed under section 203 
        when preparing its 5-year financial plan; and
            (3) ensure that the plan is consistent with the 
        authorizations of appropriations under title I of this Act.
    (d) Assessment by DOT Inspector General.--
            (1) In general.--The Inspector General of the Department of 
        Transportation shall assess the 5-year financial plans prepared 
        by Amtrak under this section to determine whether they meet the 
        requirements of subsection (b), and may suggest revisions to 
        any components thereof that do not meet those requirements.
            (2) Assessment to be furnished to the congress.--The 
        Inspector General shall furnish to the House of Representatives 
        Committee on Appropriations, the Senate Committee on 
        Appropriations, the House of Representatives Committee on 
        Transportation and Infrastructure, and the Senate Committee on 
        Commerce, Science, and Transportation--
                    (A) an assessment of the annual budget within 90 
                days after receiving it from Amtrak; and
                    (B) an assessment of the remaining 4 years of the 
                5-year financial plan within 180 days after receiving 
                it from Amtrak.

SEC. 205. ESTABLISHMENT OF GRANT PROCESS.

    (a) Grant Requests.--Amtrak shall submit grant requests (including 
a schedule for the disbursement of funds), consistent with the 
requirements of this Act, to the Secretary of Transportation for funds 
authorized to be appropriated to the Secretary for the use of Amtrak 
under sections 101(a) and (b), 103, and 105.
    (b) Procedures for Grant Requests.--The Secretary shall establish 
substantive and procedural requirements, including schedules, for grant 
requests under this section not later than 30 days after the date of 
enactment of this Act and shall transmit copies to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure. As part 
of those requirements, the Secretary shall require, at a minimum, that 
Amtrak deposit grant funds, consistent with the appropriated amounts 
for each area of expenditure in a given fiscal year, in the following 3 
accounts:
            (1) The Amtrak Operating account.
            (2) The Amtrak General Capital account.
            (3) The Northeast Corridor Improvement funds account.
Amtrak may not transfer such funds to another account or expend such 
funds for any purpose other than the purposes covered by the account in 
which the funds are deposited without approval by the Secretary.
    (c) Review and Approval.--
            (1) 30-day approval process.--The Secretary shall complete 
        the review of a complete grant request (including the 
        disbursement schedule) and approve or disapprove the request 
        within 30 days after the date on which Amtrak submits the grant 
        request. If the Secretary disapproves the request or determines 
        that the request is incomplete or deficient, the Secretary 
        shall include the reason for disapproval or the incomplete 
        items or deficiencies in the notice to Amtrak.
            (2) 15-day modification period.--Within 15 days after 
        receiving notification from the Secretary under the preceding 
        sentence, Amtrak shall submit a modified request for the 
        Secretary's review.
            (3) Revised requests.--Within 15 days after receiving a 
        modified request from Amtrak, the Secretary shall either 
        approve the modified request, or, if the Secretary finds that 
the request is still incomplete or deficient, the Secretary shall 
identify in writing to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure the remaining deficiencies and 
recommend a process for resolving the outstanding portions of the 
request.

SEC. 206. STATE-SUPPORTED ROUTES.

    (a) In General.--Within 2 years after the date of enactment of this 
Act, the Board of Directors of Amtrak, in consultation with the 
Secretary of Transportation and the governors of each relevant State 
and the Mayor of the District of Columbia or groups representing those 
officials, shall develop and implement a single, Nationwide 
standardized methodology for establishing and allocating the


                

operating and capital costs among the States and Amtrak associated with 
trains operated on routes described in section 24102(5)(B) or (D) or 
section 24702 that--
            (1) ensures, within 5 years after the date of enactment of 
        this Act, equal treatment in the provision of like services of 
        all States and groups of States (including the District of 
        Columbia); and
            (2) allocates to each route the costs incurred only for the 
        benefit of that route and a proportionate share, based upon 
        factors that reasonably reflect relative use, of costs incurred 
        for the common benefit of more than 1 route.
    (b) Review.--If Amtrak and the States (including the District of 
Columbia) in which Amtrak operates such routes do not voluntarily adopt 
and implement the methodology developed under subsection (a) in 
allocating costs and determining compensation for the provision of 
service in accordance with the date established therein, the Surface 
Transportation Board shall determine the appropriate methodology 
required under subsection (a) for such services in accordance with the 
procedures and procedural schedule applicable to a proceeding under 
section 24904(c) of title 49, United States Code, and require the full 
implementation of this methodology with regards to the provision of 
such service within 1 year after the Board's determination of the 
appropriate methodology.
    (c) Use of Chapter 244 Funds.--Funds provided to a State under 
chapter 244 of title 49, United States Code, may be used, as provided 
in that chapter, to pay capital costs determined in accordance with 
this section.

SEC. 207. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR AMTRAK 
              ROUTE AND SERVICE PLANNING DECISIONS.

    (a) Methodology Development.--The Federal Railroad Administration 
shall obtain the services of an independent auditor or consultant to 
develop and recommend objective methodologies for determining intercity 
passenger routes and services, including the establishment of new 
routes, the elimination of existing routes, and the contraction or 
expansion of services or frequencies over such routes. In developing 
such methodologies, the auditor or consultant shall consider--
            (1) the current or expected performance and service quality 
        of intercity passenger train operations, including cost 
        recovery, on-time performance and minutes of delay, ridership, 
        on-board services, stations, facilities, equipment, and other 
        services;
            (2) connectivity of a route with other routes;
            (3) the transportation needs of communities and populations 
        that are not well served by intercity passenger rail service or 
        by other forms of public transportation;
            (4) Amtrak's and other major intercity passenger rail 
        service providers in other countries' methodologies for 
        determining intercity passenger rail routes and services; and
            (5) the views of the States and other interested parties.
    (b) Submittal to Congress.--The auditor or consultant shall submit 
recommendations developed under subsection (a) to Amtrak, the House of 
Representatives Committee on Transportation and Infrastructure, and the 
Senate Committee on Commerce, Science, and Transportation.
    (c) Consideration of Recommendations.--Within 90 days after 
receiving the recommendations developed under subsection (a) by the 
independent auditor or consultant, the Amtrak Board shall consider the 
adoption of those recommendations. The Board shall transmit a report to 
the Senate Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Transportation and Infrastructure 
explaining its action in adopting or failing to adopt any of the 
recommendations.
    (d) Authorization of Appropriations.--There are authorized to be 
made available to the Secretary of Transportation, out of any amounts 
authorized by this Act to be appropriated for the benefit of Amtrak and 
not otherwise obligated or expended, such sums as may be necessary to 
carry out this section.
    (e) Pioneer Route.--Not later than 1 year after the date of the 
enactment of this Act, Amtrak shall conduct a 1-time evaluation of 
passenger rail service between Seattle and Chicago (commonly known as 
the ``Pioneer Route''), which was operated by Amtrak until 1997, using 
methodologies adopted under subsection (c), to determine whether to 
reinstate passenger rail service along the Pioneer Route or along 
segments of such route.
    (f) North Coast Hiawatha Route.--Not later than 1 year after the 
date of enactment of this Act, Amtrak shall conduct a 1-time evaluation 
of passenger rail service between Chicago and Seattle, through Southern 
Montana (commonly known as the ``North Coast Hiawatha Route''), which 
was operated by Amtrak until 1979, using methodologies adopted under 
subsection (c), to determine whether to reinstate passenger rail 
service along the North Coast Hiawatha Route or along segments of such 
route, provided that such service will not negatively impact existing 
Amtrak routes.

SEC. 208. METRICS AND STANDARDS.

    (a) In General.--Within 180 days after the date of enactment of 
this Act, the Administrator of the Federal Railroad Administration and 
Amtrak shall jointly, in consultation with the Surface Transportation 
Board, rail carriers over whose rail lines Amtrak trains operate, 
States, Amtrak employees, and groups representing Amtrak passengers, as 
appropriate, develop new or improve existing metrics and minimum 
standards for measuring the performance and service quality of 
intercity passenger train operations, including cost recovery, on-time 
performance and minutes of delay, ridership, on-board services, 
stations, facilities, equipment, and other services. Such metrics, at a 
minimum, shall include the percentage of avoidable and fully allocated 
operating costs covered by passenger revenues on each route, ridership 
per train mile operated, measures of on-time performance and delays 
incurred by intercity passenger trains on the rail lines of each rail 
carrier and, for long distance routes, measures of connectivity with 
other routes in all regions currently receiving Amtrak service and the 
transportation needs of communities and populations that are not well-
served by other forms of public transportation. Amtrak shall provide 
reasonable access to the Federal Railroad Administration in order to 
enable the Administration to carry out its duty under this section.
    (b) Quarterly Reports.--The Administrator of the Federal Railroad 
Administration shall collect the necessary data and publish a quarterly 
report on the performance and service quality of intercity passenger 
train operations, including Amtrak's cost recovery, ridership, on-time 
performance and minutes of delay, causes of delay, on-board services, 
stations, facilities, equipment, and other services.
    (c) Contract With Host Rail Carriers.--To the extent practicable, 
Amtrak and its host rail carriers shall incorporate the metrics and 
standards developed under subsection (a) into their access and service 
agreements.
    (d) Arbitration.--If the development of the metrics and standards 
is not completed within the 180-day period required by subsection (a), 
any party involved in the development of those standards may petition 
the Surface Transportation Board to appoint an arbitrator to assist the 
parties in resolving their disputes through binding arbitration.

SEC. 209. PASSENGER TRAIN PERFORMANCE.

    (a) In General.--Section 24308 is amended by adding at the end the 
following:
    ``(f) Passenger Train Performance and Other Standards.--
            ``(1) Investigation of substandard performance.--If the on-
        time performance of any intercity passenger train averages less 
        than 80 percent for any 2 consecutive calendar quarters, or the 
        service quality of intercity passenger train operations for 
        which minimum standards are established under section 208 of 
        the Passenger Rail Investment and Improvement Act of 2007 fails 
        to meet those standards for 2 consecutive calendar quarters, 
        the Surface Transportation Board may initiate an investigation, 
        or upon the filing of a complaint by Amtrak, an intercity 
        passenger rail operator, a host freight railroad over which 
        Amtrak operates, or an entity for which Amtrak operates 
        intercity passenger rail service, the Board shall initiate an 
        investigation to determine whether, and to what extent, delays 
        or failure to achieve minimum standards are due to causes that 
        could reasonably be addressed by a rail carrier over tracks of 
        which the intercity passenger train operates or reasonably 
        addressed by Amtrak or other intercity passenger rail operator. 
        As part of its investigation, the Board has authority to review 
        the accuracy of the train performance data. In making its 
        determination or carrying out such an investigation, the Board 
        shall obtain information from all parties involved and identify 
        reasonable measures and make recommendations to improve the 
        service, quality, and on-time performance of the train.
            ``(2) Problems caused by host rail carrier.--If the Board 
        determines that delays or failures to achieve minimum standards 
        investigated under paragraph (1) are attributable to a rail 
        carrier's failure to provide preference to Amtrak over freight 
        transportation as required under subsection (c), the Board may 
        award damages against the host rail carrier, including 
        prescribing such other relief to Amtrak as it determines to be 
        reasonable and appropriate pursuant to paragraph (3) of this 
        subsection.
            ``(3) Damages and relief.--In awarding damages and 
        prescribing other relief under this subsection the Board shall 
        consider such factors as--
                    ``(A) the extent to which Amtrak suffers financial 
                loss as a result of host rail carrier delays or failure 
                to achieve minimum standards; and
                    ``(B) what reasonable measures would adequately 
                deter future actions which may reasonably be expected 
                to be likely to result in delays to Amtrak on the route 
                involved.
            ``(4) Use of damages.--The Board shall, as it deems 
        appropriate, order the host rail carrier to remit the damages 
        awarded under this subsection to Amtrak or to an entity for 
        which Amtrak operates intercity passenger rail service. Such 
        damages shall be used for capital or operating expenditures on 
        the routes over which delays or failures to achieve minimum 
        standards were the result of a rail carrier's failure to 
        provide preference to Amtrak over freight transportation as 
        determined in accordance with paragraph (2).''.
    (b) Fees.--The Surface Transportation Board may establish and 
collect filing fees from any entity that files a complaint under 
section 24308(f)(1) of title 49, United States Code, or otherwise 
requests or requires the Board's services pursuant to this Act. The 
Board shall establish such fees at levels that will fully or partially, 
as the Board determines to be appropriate, offset the costs of 
adjudicating complaints under that section and other requests or 
requirements for Board action under this Act. The Board may waive any 
fee established under this subsection for any governmental entity as 
determined appropriate by the Board.
    (c) Authorization of Additional Staff.--The Surface Transportation 
Board may increase the number of Board employees by up to 15 for the 5 
fiscal year period beginning with fiscal year 2008 to carry out its 
responsibilities under section 24308 of title 49, United States Code, 
and this Act.
    (d) Change of Reference.--Section 24308 is amended--
            (1) by striking ``Interstate Commerce Commission'' in 
        subsection (a)(2)(A) and inserting ``Surface Transportation 
        Board'';
            (2) by striking ``Commission'' each place it appears and 
        inserting ``Board'';
            (3) by striking ``Secretary of Transportation'' in 
        subsection (c) and inserting ``Board''; and
            (4) by striking ``Secretary'' the last 3 places it appears 
        in subsection (c) and each place it appears in subsections (d) 
        and (e) and inserting ``Board''.

SEC. 210. LONG DISTANCE ROUTES.

    (a) In General.--Chapter 247 is amended by adding at the end 
thereof the following:
``Sec. 24710. Long distance routes
    ``(a) Annual Evaluation.--Using the financial and performance 
metrics developed under section 208 of the Passenger Rail Investment 
and Improvement Act of 2007, Amtrak shall--
            ``(1) evaluate annually the financial and operating 
        performance of each long distance passenger rail route operated 
        by Amtrak; and
            ``(2) rank the overall performance of such routes for 2006 
        and identify each long distance passenger rail route operated 
        by Amtrak in 2006 according to its overall performance as 
        belonging to the best performing third of such routes, the 
        second best performing third of such routes, or the worst 
        performing third of such routes.
    ``(b) Performance Improvement Plan.--Amtrak shall develop and 
publish a performance improvement plan for its long distance passenger 
rail routes to achieve financial and operating improvements based on 
the data collected through the application of the financial and 
performance metrics developed under section 208 of that Act. The plan 
shall address--
            ``(1) on-time performance;
            ``(2) scheduling, frequency, routes, and stops;
            ``(3) the feasibility of restructuring service into 
        connected corridor service;
            ``(4) performance-related equipment changes and capital 
        improvements;
            ``(5) on-board amenities and service, including food, first 
        class, and sleeping car service;
            ``(6) State or other non-Federal financial contributions;
            ``(7) improving financial performance; and
            ``(8) other aspects of Amtrak's long distance passenger 
        rail routes that affect the financial, competitive, and 
        functional performance of service on Amtrak's long distance 
        passenger rail routes.
    ``(c) Implementation.--Amtrak shall implement the performance 
improvement plan developed under subsection (b)--
            ``(1) beginning in fiscal year 2008 for those routes 
        identified as being in the worst performing third under 
        subsection (a)(2);
            ``(2) beginning in fiscal year 2009 for those routes 
        identified as being in the second best performing third under 
        subsection (a)(2); and
            ``(3) beginning in fiscal year 2010 for those routes 
        identified as being in the best performing third under 
        subsection (a)(2).
    ``(d) Enforcement.--The Federal Railroad Administration shall 
monitor the development, implementation, and outcome of improvement 
plans under this section. If, for any year, it determines that Amtrak 
is not making reasonable progress in implementing its performance 
improvement plan or in achieving the expected outcome of the plan for 
any calendar year, the Federal Railroad Administration--
            ``(1) shall notify Amtrak, the Inspector General of the 
        Department of Transportation, and appropriate Congressional 
        committees of its determination under this subsection;
            ``(2) shall provide an opportunity for a hearing with 
        respect to that determination; and
            ``(3) may withhold any appropriated funds otherwise 
        available to Amtrak for the operation of a route or routes on 
        which it is not making progress, other than funds made 
        available for passenger safety or security measures.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 247 is 
amended by inserting after the item relating to section 24709 the 
following:

``24710. Long distance routes.''.

SEC. 210A. REPORT ON SERVICE DELAYS ON CERTAIN PASSENGER RAIL ROUTES.

    Not later than 6 months after the date of the enactment of this 
Act, the Inspector General of the Department of Transportation shall 
submit to Congress a report that--
            (1) describes service delays and the sources of such delays 
        on--
                    (A) the Amtrak passenger rail route between 
                Seattle, Washington, and Los Angeles, California 
                (commonly known as the ``Coast Starlight''); and
                    (B) the Amtrak passenger rail route between 
                Vancouver, British Columbia, Canada, and Eugene, Oregon 
                (commonly known as ``Amtrak Cascades''); and
            (2) contains recommendations for improving the on-time 
        performance of such routes.

SEC. 211. ALTERNATE PASSENGER RAIL SERVICE PROGRAM.

    (a) In General.--Chapter 247, as amended by section 209, is amended 
by adding at the end thereof the following:
``Sec. 24711. Alternate passenger rail service program
    ``(a) In General.--Within 1 year after the date of enactment of the 
Passenger Rail Investment and Improvement Act of 2007, the Federal 
Railroad Administration shall initiate a rulemaking proceeding to 
develop a program under which--
            ``(1) a rail carrier or rail carriers that own 
        infrastructure over which Amtrak operates a passenger rail 
        service route described in subparagraph (B), (C), or (D) of 
        section 24102(5) or in section 24702 of title 49, United States 
        Code, or any entity operating as a rail carrier that has 
        negotiated a contingent agreement to lease necessary rights-of-
        way from a rail carrier or rail carriers that own the 
        infrastructure on which Amtrak operates such routes, may 
        petition the Federal Railroad Administration to be considered 
        as a passenger rail service provider over that route in lieu of 
        Amtrak;
            ``(2) the Administration would notify Amtrak within 30 days 
        after receiving a petition under paragraph (1) and establish a 
        deadline by which both the petitioner and Amtrak would be 
        required to submit a bid to provide passenger rail service over 
        the route to which the petition relates;
            ``(3) each bid would describe how the bidder would operate 
        the route, what Amtrak passenger equipment would be needed, if 
        any, what sources of non-Federal funding the bidder would use, 
        including any State subsidy, among other things;
            ``(4) the Administration would make a decision and execute 
        a contract within a specified, limited time after that deadline 
        awarding to the winning bidder--
                    ``(A) the right and obligation to provide passenger 
                rail service over that route subject to such 
                performance standards as the Administration may 
                require, consistent with the standards developed under 
                section 208 of this Act; and
                    ``(B) an operating subsidy--
                            ``(i) for the first year at a level not in 
                        excess of the level in effect during the fiscal 
                        year preceding the fiscal year in which the 
                        petition was received, adjusted for inflation;
                            ``(ii) for any subsequent years at such 
                        level, adjusted for inflation; and
            ``(5) each bid would contain a staffing plan describing the 
        number of employees needed to operate the service, the job 
        assignments and requirements, and the terms of work for 
        prospective and current employees of the bidder for the service 
        outlined in the bid, and such staffing plan would be made 
        available by the winning bidder to the public after the bid 
        award.
    ``(b) Implementation.--
            ``(1) Initial petitions.--Pursuant to any rules or 
        regulations promulgated under subsection (A), the 
        Administration shall establish a deadline for the submission of 
        a petition under subsection (a)--
                    ``(A) during fiscal year 2008 for operations 
                commencing in fiscal year 2009; and
                    ``(B) during the immediately preceding fiscal year 
                for operations commencing in subsequent fiscal years.
            ``(2) Route limitations.--The Administration may not make 
        the program available with respect to more than 1 Amtrak 
        passenger rail route for operations beginning in fiscal year 
        2009 nor to more than 2 such routes for operations beginning in 
        fiscal year 2011 and subsequent fiscal years.
    ``(c) Performance Standards; Access to Facilities; Employees.--If 
the Administration awards the right and obligation to provide passenger 
rail service over a route under the program to a rail carrier or rail 
carriers--
            ``(1) it shall execute a contract with the rail carrier or 
        rail carriers for rail passenger operations on that route that 
        conditions the operating and subsidy rights upon--
                    ``(A) the service provider continuing to provide 
                passenger rail service on the route that is no less 
                frequent, nor over a shorter distance, than Amtrak 
                provided on that route before the award; and
                    ``(B) the service provider's compliance with the 
                minimum standards established under section 208 of the 
                Passenger Rail Investment and Improvement Act of 2007 
                and such additional performance standards as the 
                Administration may establish;
            ``(2) it shall, if the award is made to a rail carrier 
        other than Amtrak, require Amtrak to provide access to its 
        reservation system, stations, and facilities to any rail 
        carrier or rail carriers awarded a contract under this section, 
        in accordance with section 218 of that Act, necessary to carry 
        out the purposes of this section;
            ``(3) the employees of any person used by a rail carrier or 
        rail carriers (as defined in section 10102(5) of this title) in 
        the operation of a route under this section shall be considered 
        an employee of that carrier or carriers and subject to the 
        applicable Federal laws and regulations governing similar 
        crafts or classes of employees of Amtrak, including provisions 
        under section 121 of the Amtrak Reform and Accountability Act 
        of 1997 relating to employees that provide food and beverage 
        service; and
            ``(4) the winning bidder shall provide preference in hiring 
        to qualified Amtrak employees displaced by the award of the 
        bid, consistent with the staffing plan submitted by the bidder.
    ``(d) Cessation of Service.--If a rail carrier or rail carriers 
awarded a route under this section cease to operate the service or fail 
to fulfill their obligations under the contract required under 
subsection (c), the Administrator, in collaboration with the Surface 
Transportation Board shall take any necessary action consistent with 
this title to enforce the contract and ensure the continued provision 
of service, including the installment of an interim service provider 
and re-bidding the contract to operate the service. The entity 
providing service shall either be Amtrak or a rail carrier defined in 
section 24711(a)(1).
    ``(e) Adequate Resources.--Before taking any action allowed under 
this section, the Secretary shall certify that the Administrator has 
sufficient resources that are adequate to undertake the program 
established under this section.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 247, as 
amended by section 209, is amended by inserting after the item relating 
to section 24710 the following:

``24711. Alternate passenger rail service program.''.

SEC. 212. EMPLOYEE TRANSITION ASSISTANCE.

    (a) Provision of Financial Incentives.--For Amtrak employees who 
are adversely affected by the cessation of the operation of a long 
distance route or any other route under section 24711 of title 49, 
United States Code, previously operated by Amtrak, the Secretary shall 
develop a program under which the Secretary may, in the Secretary's 
discretion, provide grants for financial incentives to be provided to 
employees of the National Railroad Passenger Corporation 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.
    (b) Conditions for Financial Incentives.--As a condition for 
receiving financial assistance grants under this section, the 
Corporation must certify that--
            (1) a reasonable attempt was made to reassign an employee 
        adversely affected under section 24711 of title 49, United 
        States Code, or by the elimination of any route, to other 
        positions within the Corporation in accordance with any 
        contractual agreements;
            (2) the financial assistance results in a net reduction in 
        the total number of employees equal to the number receiving 
        financial incentives;
            (3) 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
            (4) the total number of employees eligible for termination-
        related payments will not be increased without the express 
        written consent of the Secretary.
    (c) Amount of Financial Incentives.--The financial incentives 
authorized under this section may be no greater than $50,000 per 
employee.
    (d) Authorization of Appropriations.--There are hereby authorized 
to be appropriated to the Secretary such sums as may be necessary to 
make grants to the National Railroad Passenger Corporation to provide 
financial incentives under subsection (a).
    (e) Termination-Related Payments.--If Amtrak employees adversely 
affected by the cessation of Amtrak service resulting from the awarding 
of a grant to an operator other than Amtrak for the operation of a 
route under section 24711 of title 49, United States Code, or any other 
route, previously operated by Amtrak do not receive financial 
incentives under subsection (a), then the Secretary shall make grants 
to the National Railroad Passenger Corporation from funds authorized by 
section 102 of this Act for termination-related payments to employees 
under existing contractual agreements.

SEC. 213. NORTHEAST CORRIDOR STATE-OF-GOOD-REPAIR PLAN.

    (a) In General.--Within 6 months after the date of enactment of 
this Act, the National Railroad Passenger Corporation, in consultation 
with the Secretary and the States (including the District of Columbia) 
that make up the Northeast Corridor (as defined in section 24102 of 
title 49, United States Code), shall prepare a capital spending plan 
for capital projects required to return the railroad right-of-way 
(including track, signals, and auxiliary structures), facilities, 
stations, and equipment, of the Northeast Corridor to a state of good 
repair by the end of fiscal year 2012, consistent with the funding 
levels authorized in this Act and shall submit the plan to the 
Secretary.
    (b) Approval by the Secretary.--
            (1) The Corporation shall submit the capital spending plan 
        prepared under this section to the Secretary of Transportation 
        for review and approval pursuant to the procedures developed 
        under section 205 of this Act.
            (2) The Secretary of Transportation shall require that the 
        plan be updated at least annually and shall review and approve 
        such updates. During review, the Secretary shall seek comments 
        and review from the commission established under section 24905 
        of title 49, United States Code, and other Northeast Corridor 
        users regarding the plan.
            (3) The Secretary shall make grants to the Corporation with 
        funds authorized by section 101(b) for Northeast Corridor 
        capital investments contained within the capital spending plan 
        prepared by the Corporation and approved by the Secretary.
            (4) Using the funds authorized by section 101(d), the 
        Secretary shall review Amtrak's capital expenditures funded by 
        this section to ensure that such expenditures are consistent 
        with the capital spending plan and that Amtrak is providing 
        adequate project management oversight and fiscal controls.
    (c) Eligibility of Expenditures.--The Federal share of expenditures 
for capital improvements under this section may not exceed 100 percent.

SEC. 214. NORTHEAST CORRIDOR INFRASTRUCTURE AND OPERATIONS 
              IMPROVEMENTS.

    (a) In General.--Section 24905 is amended to read as follows:
``Sec. 24905. Northeast Corridor Infrastructure and Operations Advisory 
              Commission; Safety and Security Committee
    ``(a) Northeast Corridor Infrastructure and Operations Advisory 
Commission.--
            ``(1) Within 180 days after the date of enactment of the 
        Passenger Rail Investment and Improvement Act of 2007, the 
        Secretary of Transportation shall establish a Northeast 
        Corridor Infrastructure and Operations Advisory Commission 
        (hereinafter referred to in this section as the `Commission') 
        to promote mutual cooperation and planning pertaining to the 
        rail operations and related activities of the Northeast 
        Corridor. The Commission shall be made up of--
                    ``(A) members representing the National Railroad 
                Passenger Corporation;
                    ``(B) members representing the Secretary of 
                Transportation and the Federal Railroad Administration;
                    ``(C) 1 member from each of the States (including 
                the District of Columbia) that constitute the Northeast 
                Corridor as defined in section 24102, designated by, 
                and serving at the pleasure of, the chief executive 
                officer thereof; and
                    ``(D) non-voting representatives of freight 
                railroad carriers using the Northeast Corridor selected 
                by the Secretary.
            ``(2) The Secretary shall ensure that the membership 
        belonging to any of the groups enumerated under subparagraph 
        (1) shall not constitute a majority of the commission's 
        memberships.
            ``(3) The commission shall establish a schedule and 
        location for convening meetings, but shall meet no less than 
        four times per fiscal year, and the commission shall develop 
        rules and procedures to govern the commission's proceedings.
            ``(4) A vacancy in the Commission shall be filled in the 
        manner in which the original appointment was made.
            ``(5) 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.
            ``(6) The Chairman of the Commission shall be elected by 
        the members.
            ``(7) The Commission may appoint and fix the pay of such 
        personnel as it considers appropriate.
            ``(8) Upon 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.
            ``(9) 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.
            ``(10) The commission shall consult with other entities as 
        appropriate.
    ``(b) General Recommendations.--The Commission shall develop 
recommendations concerning Northeast Corridor rail infrastructure and 
operations including proposals addressing, as appropriate--
            ``(1) short-term and long term capital investment needs 
        beyond the state-of-good-repair under section 213;
            ``(2) future funding requirements for capital improvements 
        and maintenance;
            ``(3) operational improvements of intercity passenger rail, 
        commuter rail, and freight rail services;
            ``(4) opportunities for additional non-rail uses of the 
        Northeast Corridor;
            ``(5) scheduling and dispatching;
            ``(6) safety and security enhancements;
            ``(7) equipment design;
            ``(8) marketing of rail services; and
            ``(9) future capacity requirements.
    ``(c) Access Costs.--
            ``(1) Development of formula.--Within 1 year after 
        verification of Amtrak's new financial accounting system 
        pursuant to section 203(b) of the Passenger Rail Investment and 
        Improvement Act of 2007, the Commission shall--
                    ``(A) develop a standardized formula for 
                determining and allocating costs, revenues, and 
                compensation for Northeast Corridor commuter rail 
                passenger transportation, as defined in section 24102 
                of this title, that use National Railroad Passenger 
                Corporation facilities or services or that provide such 
                facilities or services to the National Railroad 
                Passenger Corporation that ensure that--
                            ``(i) there is no cross-subsidization of 
                        commuter rail passenger, intercity rail 
                        passenger, or freight rail transportation; and
                            ``(ii) each service is assigned the costs 
                        incurred only for the benefit of that service, 
                        and a proportionate share, based upon factors 
                        that reasonably reflect relative use, of costs 
                        incurred for the common benefit of more than 1 
                        service;
                    ``(B) develop a proposed timetable for implementing 
                the formula before the end of the 6th year following 
                the date of enactment of that Act;
                    ``(C) transmit the proposed timetable to the 
                Surface Transportation Board; and
                    ``(D) at the request of a Commission member, 
                petition the Surface Transportation Board to appoint a 
                mediator to assist the Commission members through non-
                binding mediation to reach an agreement under this 
                section.
            ``(2) Implementation.--The National Railroad Passenger 
        Corporation and the commuter authorities providing commuter 
        rail passenger transportation on the Northeast Corridor shall 
        implement new agreements for usage of facilities or services 
        based on the formula proposed in paragraph (1) in accordance 
        with the timetable established therein. If the entities fail to 
        implement such new agreements in accordance with the timetable, 
        the Commission shall petition the Surface Transportation Board 
        to determine the appropriate compensation amounts for such 
        services in accordance with section 24904(c) of this title. The 
        Surface Transportation Board shall enforce its determination on 
        the party or parties involved.
    ``(d) Transmission of Recommendations.--The commission shall 
annually transmit the recommendations developed under subsection (b) 
and the formula and timetable developed under subsection (c)(1) to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure.
    ``(e) Northeast Corridor Safety and Security Committee.--
            ``(1) In general.--The Secretary shall establish a 
        Northeast Corridor Safety and Security Committee composed of 
        members appointed by the Secretary. The members shall be 
        representatives of--
                    ``(A) the Secretary;
                    ``(B) Amtrak;
                    ``(C) freight carriers operating more than 150,000 
                train miles a year on the main line of the Northeast 
                Corridor;
                    ``(D) commuter agencies;
                    ``(E) rail passengers;
                    ``(F) rail labor;
                    ``(G) the Transportation Security Administration; 
                and
                    ``(H) other individuals and organizations the 
                Secretary decides have a significant interest in rail 
                safety or security.
            ``(2) Function; meetings.--The Secretary shall consult with 
        the Committee about safety and security improvements on the 
        Northeast Corridor main line. The Committee shall meet at least 
        once every 2 years to consider safety matters on the main line.
            ``(3) Report.--At the beginning of the first session of 
        each Congress, the Secretary shall submit a report to the 
        Commission and to Congress on the status of efforts to improve 
        safety and security on the Northeast Corridor main line. The 
        report shall include the safety recommendations of the 
        Committee and the comments of the Secretary on those 
        recommendations.''.
    (b) Conforming Amendments.--Section 24904(c)(2) is amended by--
            (1) inserting ``commuter rail passenger and'' after 
        ``between''; and
            (2) striking ``freight'' in the second sentence.
    (c) RIDOT Access Agreement.--
            (1) In general.--Not later than December 15, 2007, Amtrak 
        and the Rhode Island Department of Transportation shall enter 
        into an agreement governing access fees and other costs or 
        charges related to the operation of the South County commuter 
        rail service on the Northeast Corridor between Providence and 
        Wickford Junction, Rhode Island.
            (2) Failure to reach agreement.--If Amtrak and the Rhode 
        Island Department of Transportation fail to reach the agreement 
        specified under paragraph (1), the Administrator of the Federal 
        Railroad Administration shall, after consultation with both 
        parties, resolve any outstanding disagreements between the 
        parties, including setting access fees and other costs or 
        charges related to the operation of the South County commuter 
        rail service that do not allow for the cross-subsidization of 
        intercity rail passenger and commuter rail passenger service, 
        not later than October 31, 2007.
            (3) Interim agreement.--Any agreement between Amtrak and 
        the Rhode Island Department of Transportation relating to 
        access costs made under this subsection shall be superseded by 
        any access cost formula developed by the Northeast Corridor 
        Infrastructure and Operations Advisory Commission under section 
        24905(c)(1) of title 49, United States Code, as amended by 
        section 214(a) of this Act.
    (d) Acela Service Study.--
            (1) In general.--Amtrak shall conduct a conduct a study to 
        determine the infrastructure and equipment improvements 
        necessary to provide regular Acela service--
                    (A) between Washington, D.C. and New York City in 2 
                hours and 30 minutes; and
                    (B) between New York City and Boston in 3 hours and 
                15 minutes.
            (2) Issues.--The study conducted under paragraph (1) shall 
        include--
                    (A) an estimated time frame for achieving the trip 
                time described in paragraph (1);
                    (B) an analysis of any significant obstacles that 
                would hinder such an achievement; and
                    (C) a detailed description and cost estimate of the 
                specific infrastructure and equipment improvements 
                necessary for such an achievement.
            (3) Secondary study.--Amtrak shall provide an initial 
        assessment of the infrastructure and equipment improvements, 
        including an order of magnitude cost estimate of such 
        improvements, that would be necessary to provide regular Acela 
        service--
                    (A) between Washington, D.C. and New York City in 2 
                hours and 15 minutes; and
                    (B) between New York City and Boston in 3 hours.
            (4) Report.--Not later than February 1, 2008, Amtrak shall 
        submit a written report containing the results of the studies 
        required under this subsection to--
                    (A) the Committee on Commerce, Science, and 
                Transportation of the Senate;
                    (B) the Committee on Appropriations of the Senate;
                    (C) the Committee on Transportation and 
                Infrastructure of the House of Representatives;
                    (D) the Committee on Appropriations of the House of 
                Representatives; and
                    (E) the Federal Railroad Administration.

SEC. 215. RESTRUCTURING LONG-TERM DEBT AND CAPITAL LEASES.

    (a) In General.--The Secretary of the Treasury, in consultation 
with the Secretary of Transportation and Amtrak, may make agreements to 
restructure Amtrak's indebtedness as of the date of enactment of this 
Act. This authorization expires on October 1, 2008.
    (b) Debt Restructuring.--The Secretary of Treasury, in consultation 
with the Secretary of the Transportation and Amtrak, shall enter into 
negotiations with the holders of Amtrak debt, including leases, 
outstanding on the date of enactment of this Act for the purpose of 
restructuring (including repayment) and repaying that debt. The 
Secretary of the Treasury may secure agreements for restructuring or 
repayment on such terms as the Secretary of the Treasury deems 
favorable to the interests of the Government.
    (c) Criteria.--In restructuring Amtrak's indebtedness, the 
Secretary and Amtrak--
            (1) shall take into consideration repayment costs, the term 
        of any loan or loans, and market conditions; and
            (2) shall ensure that the restructuring results in 
        significant savings to Amtrak and the United States Government.
    (d) Payment of Renegotiated Debt.--If the criteria under subsection 
(c) are met, the Secretary of Treasury may assume or repay the 
restructured debt, as appropriate.
    (e) Amtrak Principal and Interest Payments.--
            (1) Principal on debt service.--Unless the Secretary of 
        Treasury makes sufficient payments to creditors under 
        subsection (d) so that Amtrak is required to make no payments 
        to creditors in a fiscal year, the Secretary of Transportation 
        shall use funds authorized by section 103(a)(1) for the use of 
        Amtrak for retirement of principal on loans for capital 
        equipment, or capital leases.
            (2) Interest on debt.--Unless the Secretary of Treasury 
        makes sufficient payments to creditors under subsection (d) so 
        that Amtrak is required to make no payments to creditors in a 
        fiscal year, the Secretary of Transportation shall use funds 
        authorized by section 103(a)(2) for the use of Amtrak for the 
        payment of interest on loans for capital equipment, or capital 
        leases.
            (3) Reductions in authorization levels.-- Whenever action 
        taken by the Secretary of the Treasury under subsection (a) 
        results in reductions in amounts of principal or interest that 
        Amtrak must service on existing debt, the corresponding amounts 
        authorized by section 103(a)(1) or (2) shall be reduced 
        accordingly.
    (f) Legal Effect of Payments Under This Section.--The payment of 
principal and interest on secured debt, other than debt assumed under 
subsection (d), with the proceeds of grants under subsection (e) 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.
    (g) Secretary Approval.--Amtrak may not incur more debt after the 
date of enactment of this Act without the express advance approval of 
the Secretary of Transportation.
    (h) Report.--The Secretary of the Treasury shall transmit a report 
to the Senate Committee on Commerce, Science, and Transportation, the 
Senate Committee on Appropriations, the House of Representatives 
Committee on Transportation and Infrastructure, and the House of 
Representatives Committee on Appropriations by November 1, 2008--
            (1) describing in detail any agreements to restructure the 
        Amtrak debt; and
            (2) providing an estimate of the savings to Amtrak and the 
        United States Government.

SEC. 216. STUDY OF COMPLIANCE REQUIREMENTS AT EXISTING INTERCITY RAIL 
              STATIONS.

    Amtrak, in consultation with station owners, shall evaluate the 
improvements necessary to make all existing stations it serves readily 
accessible to and usable by individuals with disabilities, as required 
by section 242(e)(2) of the Americans with Disabilities Act of 1990 (42 
U.S.C. 12162(e)(2)). The evaluation shall include the estimated cost of 
the improvements necessary, the identification of the responsible 
person (as defined in section 241(5) of that Act (42 U.S.C. 12161(5))), 
and the earliest practicable date when such improvements can be made. 
Amtrak shall submit the evaluation to the Senate Committee on Commerce, 
Science, and Transportation, the House of Representatives Committee on 
Transportation and Infrastructure, and the National Council on 
Disability by September 30, 2008, along with recommendations for 
funding the necessary improvements.

SEC. 217. INCENTIVE PAY.

    The Amtrak Board of Directors is encouraged to develop an incentive 
pay program for Amtrak management employees.

SEC. 218. ACCESS TO AMTRAK EQUIPMENT AND SERVICES.

    If a State desires to select or selects an entity other than Amtrak 
to provide services required for the operation of an intercity 
passenger train route described in section 24102(5)(D) or 24702 of 
title 49, United States Code, the State may make an agreement with 
Amtrak to use facilities and equipment of, or have services provided 
by, Amtrak under terms agreed to by the State and Amtrak to enable the 
State to utilize an entity other than Amtrak to provide services 
required for operation of the route. If the parties cannot agree upon 
terms, and the Surface Transportation Board finds that access to 
Amtrak's facilities or equipment, or the provision of services by 
Amtrak, is necessary to carry out this provision and that the operation 
of Amtrak's other services will not be impaired thereby, the Surface 
Transportation Board shall, within 120 days after submission of the 
dispute, issue an order that the facilities and equipment be made 
available, and that services be provided, by Amtrak, and shall 
determine reasonable compensation, liability and other terms for use of 
the facilities and equipment and provision of the services. 
Compensation shall be determined in accord with the methodology 
established pursuant to section 206 of this Act.

SEC. 219. GENERAL AMTRAK PROVISIONS.

    (a) Repeal of Self-Sufficiency Requirements.
            (1) Plan required.--Section 24101(d) is amended--
                    (A) by striking ``plan to operate within the 
                funding levels authorized by section 24104 of this 
                chapter, including the budgetary goals for fiscal years 
                1998 through 2002.'' and inserting ``plan, consistent 
                with section 204 of the Passenger Rail Investment and 
                Improvement Act of 2007, including the budgetary goals 
                for fiscal years 2007 through 2012.''; and
                    (B) by striking the last sentence and inserting 
                ``Amtrak and its Board of Directors shall adopt a long 
                term plan that minimizes the need for Federal operating 
                subsidies.''.
            (2) Amtrak reform and accountability act amendments.--Title 
        II of the Amtrak Reform and Accountability Act of 1997 (49 
        U.S.C. 24101 nt) is amended by striking sections 204 and 205.
    (b) Lease Arrangements.--Amtrak may obtain services from the 
Administrator of General Services, and the Administrator may provide 
services to Amtrak, under section 201(b) and 211(b) of the Federal 
Property and Administrative Service Act of 1949 (40 U.S.C. 481(b) and 
491(b)) for each of fiscal years 2007 through 2012.
    (c) Travel Facilitation.--Using existing authority or agreements, 
or upon reaching additional agreements with Canada, the Secretary of 
Transportation and other Federal agencies, as appropriate, are 
authorized to establish facilities and procedures to conduct 
preclearance of passengers traveling on Amtrak trains from Canada to 
the United States. The Secretary shall seek to establish such 
facilities and procedures--
            (1) in Vancouver, Canada, no later than June 1, 2008; and
            (2) in other areas as determined appropriate by the 
        Secretary.

SEC. 220. PRIVATE SECTOR FUNDING OF PASSENGER TRAINS.

    Amtrak is encouraged to increase the operation of trains funded by, 
or in partnership with, private sector operators through competitive 
contracting to minimize the need for Federal subsidies. Amtrak shall 
utilize the provisions of section 24308 of title 49, United States 
Code, when necessary to obtain access to facilities, train and engine 
crews, or services of a rail carrier or regional transportation 
authority that are required to operate such trains.

SEC. 221. ON-BOARD SERVICE IMPROVEMENTS.

    (a) In General.--Within 1 year after metrics and standards are 
established under section 208 of this Act, Amtrak shall develop and 
implement a plan to improve on-board service pursuant to the metrics 
and standards for such service developed under that section.
    (b) Report.--Amtrak shall provide a report to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure on the 
on-board service improvements proscribed in the plan and the timeline 
for implementing such improvements.

SEC. 222. AMTRAK MANAGEMENT ACCOUNTABILITY.

    (a) In General.--Chapter 243 is amended by inserting after section 
24309 the following:
``Sec. 24310. Management accountability
    ``(a) In General.--Three years after the date of enactment of the 
Passenger Rail Investment and Improvement Act of 2007, and two years 
thereafter, the Inspector General of the Department of Transportation 
shall complete an overall assessment of the progress made by Amtrak 
management and the Department of Transportation in implementing the 
provisions of that Act.
    ``(b) Assessment.--The management assessment undertaken by the 
Inspector General may include a review of--
            ``(1) effectiveness improving annual financial planning;
            ``(2) effectiveness in implementing improved financial 
        accounting;
            ``(3) efforts to implement minimum train performance 
        standards;
            ``(4) progress maximizing revenues and minimizing Federal 
        subsidies; and
            ``(5) any other aspect of Amtrak operations the Inspector 
        General finds appropriate to review.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 243 is 
amended by inserting after the item relating to section 24309 the 
following:

``24310. Management accountability.''.

SEC. 223. LOCOMOTIVE BIODIESEL FUEL USE STUDY.

    (a) In General.--The Federal Railroad Administration, in 
consultation with the Secretary of Energy and the Administrator of the 
Environmental Protection Agency, shall conduct a study to determine the 
extent to which Amtrak could use biodiesel fuel blends to power its 
fleet of locomotives and any of its other motor vehicles that can 
operate on diesel fuel.
    (b) Factors.--In conducting the study, the Federal Railroad 
Administration shall consider--
            (1) environmental and energy security effects of biodiesel 
        fuel use;
            (2) the cost of purchasing biodiesel fuel blends for such 
        purposes;
            (3) whether sufficient biodiesel fuel is readily available; 
        and
            (4) the effect of biodiesel fuel use on relevant 
        performance or warranty specifications.
    (c) Report.--Not later than April 1, 2008, the Federal Railroad 
Administration shall report the results of its study to the Congress 
together with such findings, conclusions, and recommendations as it 
deems appropriate.

SEC. 224. SENSE OF THE SENATE REGARDING THE NEED TO MAINTAIN AMTRAK AS 
              A NATIONAL PASSENGER RAIL SYSTEM.

    (a) Findings.--The Senate makes the following findings:
            (1) In fiscal year 2007, 3,800,000 passengers traveled on 
        Amtrak's long distance trains, an increase of 2.4 percent over 
        fiscal year 2006.
            (2) Amtrak long-distance routes generated $376,000,000 in 
        revenue in fiscal year 2007, an increase of 5 percent over 
        fiscal year 2006.
            (3) Amtrak operates 15 long-distance trains over 18,500 
        route miles that serve 39 States and the District of Columbia. 
        These trains provide the only rail passenger service to 23 
        States.
            (4) Amtrak's long-distance trains provide an essential 
        transportation service for many communities and to a 
        significant percentage of the general public.
            (5) Many long-distance trains serve small communities with 
        limited or no significant air or bus service, especially in 
        remote or isolated areas in the United States.
            (6) As a result of airline deregulation and decisions by 
        national bus carriers to leave many communities, rail 
        transportation may provide the only feasible common carrier 
        transportation option for a growing number of areas.
            (7) If long-distance trains were eliminated, 23 States and 
        243 communities would be left with no intercity passenger rail 
        service and 16 other States would lose some rail service. These 
        trains provide a strong economic benefit for the States and 
        communities that they serve.
            (8) Long-distance trains also provide transportation during 
        periods of severe weather or emergencies that stall other modes 
        of transportation.
            (9) Amtrak provided the only reliable long-distance 
        transportation following the September 11, 2001 terrorist 
        attacks that grounded air travel.
            (10) The majority of passengers on long-distance trains do 
        not travel between the endpoints, but rather between any 
        combination of cities along the route.
            (11) Passenger trains provide transportation options, 
        mobility for underserved populations, congestion mitigation, 
        and jobs in the areas they serve.
            (12) Passenger rail has a positive impact on the 
        environment compared to other modes of transportation by 
        conserving energy, reducing greenhouse gas emissions, and 
        cutting down on other airborne particulate and toxic emissions.
            (13) Amtrak communities that are served use passenger rail 
        and passenger rail stations as a significant source of economic 
        development.
            (14) This Act makes meaningful and important reforms to 
        increase the efficiency, profitability and on-time performance 
        of Amtrak's long-distance routes.
    (b) Sense of the Senate.--It is the sense of the Senate that--
            (1) long-distance passenger rail is a vital and necessary 
        part of our national transportation system and economy; and
            (2) Amtrak should maintain a national passenger rail 
        system, including long-distance routes, that connects the 
        continental United States from coast to coast and from border 
        to border.

SEC. 225. PASSENGER RAIL STUDY.

    (a) In General.--The Comptroller General of the General 
Accountability Office shall conduct a study to determine the potential 
cost and benefits of expanding passenger rail service options in 
underserved communities.
    (b) Submission.--Not later than 1 year after the date of the 
enactment of this Act, the Comptroller General shall submit a report 
containing the results of the study conducted under this section to--
            (1) the Committee on Commerce, Science, and Transportation 
        of the Senate; and
            (2) the Committee on Transportation and Infrastructure of 
        the House of Representatives.

               TITLE III--INTERCITY PASSENGER RAIL POLICY

SEC. 301. CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL SERVICE; 
              STATE RAIL PLANS.

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

   ``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. Use of capital grants to finance first-dollar liability of 
                            grant project.
``24405. Grant conditions.
``Sec. 24401. Definitions
    ``In this subchapter:
            ``(1) Applicant.--The term `applicant' means a State 
        (including the District of Columbia), a group of States, an 
        Interstate Compact, or a public agency established by one or 
        more States and having responsibility for providing intercity 
        passenger rail service.
            ``(2) Capital project.--The term `capital project' means a 
        project or program in a State rail plan developed under chapter 
        225 of this title for--
                    ``(A) acquiring, constructing, improving, or 
                inspecting equipment, track and track structures, or a 
                facility for use in or for the primary benefit of 
                intercity passenger rail service, expenses incidental 
                to the acquisition or construction (including 
                designing, engineering, location surveying, mapping, 
                environmental studies, and acquiring rights-of-way), 
                payments for the capital portions of rail trackage 
                rights agreements, highway-rail grade crossing 
                improvements related to intercity passenger rail 
                service, security, mitigating environmental impacts, 
                communication and signalization improvements, 
                relocation assistance, acquiring replacement housing 
                sites, and acquiring, constructing, relocating, and 
                rehabilitating replacement housing;
                    ``(B) rehabilitating, remanufacturing or 
                overhauling rail rolling stock and facilities used 
                primarily in intercity passenger rail service;
                    ``(C) costs associated with developing State rail 
                plans; and
                    ``(D) the first-dollar liability costs for 
                insurance related to the provision of intercity 
                passenger rail service under section 24404.
            ``(3) Intercity passenger rail service.--The term 
        `intercity passenger rail service' means transportation 
        services with the primary purpose of passenger transportation 
        between towns, cities and metropolitan areas by rail, including 
        high-speed rail, as defined in section 24102 of title 49, 
        United States Code.
``Sec. 24402. Capital investment grants to support intercity passenger 
              rail service
    ``(a) General Authority.--
            ``(1) The Secretary of Transportation may make grants under 
        this section to an applicant to assist in financing the capital 
        costs of facilities, infrastructure, and equipment necessary to 
        provide or improve intercity passenger rail transportation.
            ``(2) 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 and 
        shall prescribe procedures and schedules for the awarding of 
        grants under this title, including application and 
        qualification procedures and a record of decision on applicant 
        eligibility. The Secretary shall issue a final rule 
        establishing such procedures not later than 90 days after the 
        date of enactment of the Passenger Rail Investment and 
        Improvement Act of 2007.
    ``(b) Project as Part of State Rail Plan.--
            ``(1) The Secretary may not approve a grant for a project 
        under this section unless the Secretary finds that the project 
        is part of a State rail plan developed under chapter 225 of 
        this title, or under the plan required by section 203 of the 
        Passenger Rail Investment and Improvement Act of 2007, and that 
        the applicant or recipient has or will have the legal, 
        financial, and technical capacity to carry out 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) An applicant shall provide sufficient information 
        upon which the Secretary can make the findings required by this 
        subsection.
            ``(3) 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 the best, taking into account price and 
        other factors, and that use of the proposed operator will not 
        unnecessarily increase the cost of the project.
    ``(c) Project Selection Criteria.--The Secretary, in selecting the 
recipients of financial assistance to be provided under subsection (a), 
shall--
            ``(1) require that each proposed project meet all safety 
        and security requirements that are applicable to the project 
        under law;
            ``(2) give preference to projects with high levels of 
        estimated ridership, increased on-time performance, reduced 
        trip time, additional service frequency to meet anticipated or 
        existing demand, or other significant service enhancements as 
        measured against minimum standards developed under section 208 
        of the Passenger Rail Investment and Improvement Act of 2007;
            ``(3) encourage intermodal connectivity through projects 
        that provide direct connections between train stations, 
        airports, bus terminals, subway stations, ferry ports, and 
        other modes of transportation;
            ``(4) ensure that each project is compatible with, and is 
        operated in conformance with--
                    ``(A) plans developed pursuant to the requirements 
                of section 135 of title 23, United States Code; and
                    ``(B) the national rail plan (if it is available); 
                and
            ``(5) favor the following kinds of projects:
                    ``(A) Projects that are expected to have a 
                significant favorable impact on air or highway traffic 
                congestion, capacity, or safety.
                    ``(B) Projects that also improve freight or 
                commuter rail operations.
                    ``(C) Projects that have significant environmental 
                benefits, including projects that involve the purchase 
                of environmentally sensitive, fuel-efficient, and cost-
                effective passenger rail equipment.
                    ``(D) Projects that are--
                            ``(i) at a stage of preparation that all 
                        pre-commencement compliance with environmental 
                        protection requirements has already been 
                        completed; and
                            ``(ii) ready to be commenced.
                    ``(E) Projects with positive economic and 
                employment impacts.
                    ``(F) Projects that encourage the use of positive 
                train control technologies.
                    ``(G) Projects that have commitments of funding 
                from non-Federal Government sources in a total amount 
                that exceeds the minimum amount of the non-Federal 
                contribution required for the project.
                    ``(H) Projects that involve donated property 
                interests or services.
                    ``(I) Projects that are identified by the Surface 
                Transportation Board as necessary to improve the on 
                time performance and reliability of intercity passenger 
                rail under section 24308(f).
                    ``(J) Projects described in section 5302(a)(1)(G) 
                of this title that are designed to support intercity 
                passenger rail service.
    ``(d) Amtrak Eligibility.--To receive a grant under this section, 
the National Railroad Passenger Corporation may enter into a 
cooperative agreement with 1 or more States to carry out 1 or more 
projects on a State rail plan's ranked list of rail capital projects 
developed under section 22504(a)(5) of this title.
    ``(e) Letters of Intent, Full Funding Grant Agreements, and Early 
Systems Work Agreements.--
            ``(1)(A) The Secretary may issue a letter of intent to an 
        applicant announcing an intention to obligate, for a major 
        capital 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 30 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 Committee on Transportation and Infrastructure of the House 
        of Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate and the House 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) An obligation or administrative commitment may be 
        made only when amounts are appropriated.
            ``(2)(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;
                    ``(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 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)(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) 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 may be not 
        more than the amount authorized under section 101(c) of 
        Passenger Rail Investment and Improvement Act of 2007, 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.
    ``(f) Federal Share of Net Project Cost.--
            ``(1)(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 shall not exceed 80 percent 
        of the project net capital cost.
            ``(C) The Secretary shall give priority in allocating 
        future obligations and contingent commitments to incur 
        obligations to grant requests seeking a lower Federal share of 
        the project net capital cost.
            ``(2) Up to an additional 20 percent of the required non-
        Federal funds may be funded from amounts appropriated to or 
        made available to a department or agency of the Federal 
        Government that are eligible to be expended for transportation.
            ``(3) 50 percent of the average amounts expended by a State 
        or group of States (including the District of Columbia) for 
        capital projects to benefit intercity passenger rail service 
        and operating costs of up to $5,000,000 per fiscal year of such 
        service in fiscal years 2003, 2004, 2005, and 2006 shall be 
        credited towards the matching requirements for grants awarded 
        in fiscal years 2007, 2008, and 2009 under this section. The 
        Secretary may require such information as necessary to verify 
        such expenditures.
            ``(4) 50 percent of the average amounts expended by a State 
        or group of States (including the District of Columbia) in a 
        fiscal year, beginning in fiscal year 2007, for capital 
        projects to benefit intercity passenger rail service or for the 
        operating costs of such service above the average capital and 
        operating expenditures made for such service in fiscal years 
        2004, 2005, and 2006 shall be credited towards the matching 
        requirements for grants awarded under this section. The 
        Secretary may require such information as necessary to verify 
        such expenditures.
    ``(g) Undertaking Projects in Advance.--
            ``(1) 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 the 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) 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. However, the amount of interest 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) The Secretary shall consider changes in capital 
        project cost indices when determining the estimated cost under 
        paragraph (2) of this subsection.
    ``(h) 2-Year Availability.--Funds appropriated under this section 
shall remain available until expended. If any amount provided as a 
grant under this section is not obligated or expended for the purposes 
described in subsection (a) within 2 years after the date on which the 
State received the grant, such sums shall be returned to the Secretary 
for other intercity passenger rail development projects under this 
section at the discretion of the Secretary.
    ``(i) Public-Private Partnerships.--
            ``(1) In general.--A metropolitan planning organization, 
        State transportation department, or other project sponsor may 
        enter into an agreement with any public, private, or nonprofit 
        entity to cooperatively implement any project funded with a 
        grant under this title.
            ``(2) Forms of participation.--Participation by an entity 
        under paragraph (1) may consist of--
                    ``(A) ownership or operation of any land, facility, 
                locomotive, rail car, vehicle, or other physical asset 
                associated with the project;
                    ``(B) cost-sharing of any project expense;
                    ``(C) carrying out administration, construction 
                management, project management, project operation, or 
                any other management or operational duty associated 
                with the project; and
                    ``(D) any other form of participation approved by 
                the Secretary.
            ``(3) Sub-allocation.--A State may allocate funds under 
        this section to any entity described in paragraph (1).
    ``(j) Special Transportation Circumstances.--In carrying out this 
section, the Secretary shall allocate an appropriate portion of the 
amounts available under this section to provide grants to States--
            ``(1) in which there is no intercity passenger rail service 
        for the purpose of funding freight rail capital projects that 
        are on a State rail plan developed under chapter 225 of this 
        title that provide public benefits (as defined in chapter 225) 
        as determined by the Secretary; or
            ``(2) in which the rail transportation system is not 
        physically connected to rail systems in the continental United 
        States or may not otherwise qualify for a grant under this 
        section due to the unique characteristics of the geography of 
        that State or other relevant considerations, for the purpose of 
        funding transportation-related capital projects.
    ``(k) Small Capital Projects.--The Secretary shall make available 
$10,000,000 annually from the amounts authorized under section 101(c) 
of the Passenger Rail Investment and Improvement Act of 2007 beginning 
in fiscal year 2008 for grants for capital projects eligible under this 
section not exceeding $2,000,000, including costs eligible under 
section 206(c) of that Act. The Secretary may wave requirements of this 
section, including state rail plan requirements, as appropriate.
``Sec. 24403. Project management oversight
    ``(a) Project Management Plan Requirements.--To receive Federal 
financial assistance for a major capital project under this subchapter, 
an applicant must 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 covering 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) periodic 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) Secretarial Oversight.--
            ``(1) The Secretary may use no more than 0.5 percent of 
        amounts made available in a fiscal year for capital projects 
        under this subchapter to enter into contracts to oversee the 
        construction of such projects.
            ``(2) 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) The Federal Government shall pay the entire cost of 
        carrying out a contract under this subsection.
    ``(c) Access to Sites and Records.--Each recipient of assistance 
under this subchapter shall provide the Secretary and a contractor the 
Secretary chooses under subsection (c) of this section with access to 
the construction sites and records of the recipient when reasonably 
necessary.
``Sec. 24404. Use of capital grants to finance first-dollar liability 
              of grant project
    ``Notwithstanding the requirements of section 24402 of this 
subchapter, the Secretary of Transportation may approve the use of 
capital assistance under this subchapter to fund self-insured retention 
of risk for the first tier of liability insurance coverage for rail 
passenger service associated with the capital assistance grant, but the 
coverage may not exceed $20,000,000 per occurrence or $20,000,000 in 
aggregate per year.
``Sec. 24405. Grant conditions
    ``(a) Domestic Buying Preference.--
            ``(1) Requirement.--
                    ``(A) In general.--In carrying out a project funded 
                in whole or in part with a grant under this title, the 
                grant recipient shall purchase only--
                            ``(i) unmanufactured articles, material, 
                        and supplies mined or produced in the United 
                        States; or
                            ``(ii) manufactured articles, material, and 
                        supplies manufactured in the United States 
                        substantially from articles, material, and 
                        supplies mined, produced, or manufactured in 
                        the United States.
                    ``(B) De minimis amount.--Subparagraph (1) applies 
                only to a purchase in an total amount that is not less 
                than $1,000,000.
            ``(2) Exemptions.--On application of a recipient, the 
        Secretary may exempt a recipient from the requirements of this 
        subsection if the Secretary decides that, for particular 
        articles, material, or 
        supplies--
                    ``(A) such requirements are inconsistent with the 
                public interest;
                    ``(B) the cost of imposing the requirements is 
                unreasonable; or
                    ``(C) the articles, material, or supplies, or the 
                articles, material, or supplies from which they are 
                manufactured, are not mined, produced, or manufactured 
                in the United States in sufficient and reasonably 
                available commercial quantities and are not of a 
                satisfactory quality.
            ``(3) United States defined.--In this subsection, the term 
        `the United States' means the States, territories, and 
        possessions of the United States and the District of Columbia.
    ``(b) Operators Deemed Rail Carriers and Employers for Certain 
Purposes.--A person that conducts rail operations over rail 
infrastructure constructed or improved with funding provided in whole 
or in part in a grant made under this title shall be considered a rail 
carrier as defined in section 10102(5) of this title for purposes of 
this title and any other statute that adopts the that definition or in 
which that definition applies, including--
            ``(1) the Railroad Retirement Act of 1974 (45 U.S.C. 231 et 
        seq.);
            ``(2) the Railway Labor Act (43 U.S.C. 151 et seq.); and
            ``(3) the Railroad Unemployment Insurance Act (45 U.S.C. 
        351 et seq.).
    ``(c) Grant Conditions.--The Secretary shall require as a condition 
of making any grant under this title for a project that uses rights-of-
way owned by a railroad that--
            ``(1) a written agreement exist between the applicant and 
        the railroad regarding such use and ownership, including--
                    ``(A) any compensation for such use;
                    ``(B) assurances regarding the adequacy of 
                infrastructure capacity to accommodate both existing 
                and future freight and passenger operations;
                    ``(C) an assurance by the railroad that collective 
                bargaining agreements with the railroad's employees 
                (including terms regulating the contracting of work) 
                will remain in full force and effect according to their 
                terms for work performed by the railroad on the 
                railroad transportation corridor; and
                    ``(D) an assurance that an applicant complies with 
                liability requirements consistent with section 28103 of 
                this title; and
            ``(2) the applicant agrees to comply with--
                    ``(A) the standards of section 24312 of this title, 
                as such section was in effect on September 1, 2003, 
                with respect to the project in the same manner that the 
                National Railroad Passenger Corporation is required to 
                comply with those standards for construction work 
                financed under an agreement made under section 24308(a) 
                of this title; 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 in whole or 
                in part by grants under this subchapter.
    ``(d) Replacement of Existing Intercity Passenger Rail Service.--
            ``(1) Collective bargaining agreement for intercity 
        passenger rail projects.--Any entity providing intercity 
        passenger railroad transportation that begins operations after 
        the date of enactment of this Act on a project funded in whole 
        or in part by grants made under this title and replaces 
        intercity rail passenger service that was provided by Amtrak, 
        unless such service was provided solely by Amtrak to another 
        entity, as of such date shall enter into an agreement with the 
        authorized bargaining agent or agents for adversely affected 
        employees of the predecessor provider that--
                    ``(A) gives each such qualified 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 3 
                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.
            ``(2) Immediate replacement service.--
                    ``(A) Negotiations.--If the replacement of 
                preexisting intercity rail passenger service occurs 
                concurrent with or within a reasonable time before the 
                commencement of the replacing entity's 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 potentially adversely affected employees of the 
                predecessor provider at least 90 days before the date 
                on which 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 (1). 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 (1) as 
                described 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 1 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 among 
                the matters set forth in subparagraphs (A) through (D) 
                of paragraph (1). 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.
            ``(3) Service commencement.--A replacing entity under this 
        subsection shall commence service only after an agreement is 
        entered into with respect to the matters set forth in 
        subparagraphs (A) through (D) of paragraph (1) or the decision 
        of the arbitrator has been rendered.
            ``(4) Subsequent replacement of service.--If the 
        replacement of existing rail passenger service takes place 
        within 3 years after the replacing entity commences intercity 
        passenger rail service, the replacing entity and the collective 
        bargaining agent or agents for the adversely affected employees 
        of the predecessor provider shall enter into an agreement with 
        respect to the matters set forth in subparagraphs (A) through 
        (D) of paragraph (1). 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 (2)(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.
    ``(e) Inapplicability to Certain Rail Operations.-- Nothing in this 
section applies to--
            ``(1) commuter rail passenger transportation (as defined in 
        section 24102(4) of this title) operations of a State or local 
        government authority (as those terms are defined in section 
        5302(11) and (6), respectively, of this title) eligible to 
        receive financial assistance under section 5307 of this title, 
        or to its contractor performing services in connection with 
        commuter rail passenger operations (as so defined);
            ``(2) the Alaska Railroad or its contractors; or
            ``(3) the National Railroad Passenger Corporation's access 
        rights to railroad rights of way and facilities under current 
        law.''.
    (b) Conforming Amendments.--
            (1) The table of chapters for the title is amended by 
        inserting the following after the item relating to chapter 243:

``244. Intercity passenger rail service capital assistance.    24401''.
            ``(2) The chapter analysis for subtitle V is amended by 
        inserting the following after the item relating to chapter 243:

``244. Intercity passenger rail service capital assistance.    24401''.

SEC. 302. STATE RAIL PLANS.

    (a) In General.--Part B of subtitle V is amended by adding at the 
end the following:

       ``CHAPTER 225. STATE RAIL PLANS AND HIGH PRIORITY PROJECTS

        ``Sec.
        ``22501. Definitions.
        ``22502. Authority.
        ``22503. Purposes.
        ``22504. Transparency; coordination; review.
        ``22505. Content.
        ``22506. Review.
``Sec. 22501. Definitions
    ``In this subchapter:
            ``(1) Private benefit.--
                    ``(A) In general.--The term `private benefit'--
                            ``(i) means a benefit accrued to a person 
                        or private entity, other than the National 
                        Railroad Passenger Corporation, that directly 
                        improves the economic and competitive condition 
                        of that person or entity through improved 
                        assets, cost reductions, service improvements, 
                        or any other means as defined by the Secretary; 
                        and
                            ``(ii) shall be determined on a project-by-
                        project basis, based upon an agreement between 
                        the parties.
                    ``(B) Consultation.--The Secretary may seek the 
                advice of the States and rail carriers in further 
                defining this term.
            ``(2) Public benefit.--
                    ``(A) In general.--The term `public benefit'--
                            ``(i) means a benefit accrued to the public 
                        in the form of enhanced mobility of people or 
                        goods, environmental protection or enhancement, 
                        congestion mitigation, enhanced trade and 
                        economic development, improved air quality or 
                        land use, more efficient energy use, enhanced 
                        public safety or security, reduction of public 
                        expenditures due to improved transportation 
                        efficiency or infrastructure preservation, and 
                        any other positive community effects as defined 
                        by the Secretary; and
                            ``(ii) shall be determined on a project-by-
                        project basis, based upon an agreement between 
                        the parties.
                    ``(B) Consultation.--The Secretary may seek the 
                advice of the States and rail carriers in further 
                defining this term.
            ``(3) State.--The term `State' means any of the 50 States 
        and the District of Columbia.
            ``(4) State rail transportation authority.--The term `State 
        rail transportation authority' means the State agency or 
        official responsible under the direction of the Governor of the 
        State or a State law for preparation, maintenance, 
        coordination, and administration of the State rail plan.''.
``Sec. 22502. Authority
    ``(a) In General.--Each State may prepare and maintain a State rail 
plan in accordance with the provisions of this subchapter.
    ``(b) Requirements.--For the preparation and periodic revision of a 
State rail plan, a State shall--
            ``(1) establish or designate a State rail transportation 
        authority to prepare, maintain, coordinate, and administer the 
        plan;
            ``(2) establish or designate a State rail plan approval 
        authority to approve the plan;
            ``(3) submit the State's approved plan to the Secretary of 
        Transportation for review; and
            ``(4) revise and resubmit a State-approved plan no less 
        frequently than once every 5 years for reapproval by the 
        Secretary.
``Sec. 22503. Purposes
    ``(a) Purposes.--The purposes of a State rail plan are as follows:
            ``(1) To set forth State policy involving freight and 
        passenger rail transportation, including commuter rail 
        operations, in the State.
            ``(2) To establish the period covered by the State rail 
        plan.
            ``(3) To present priorities and strategies to enhance rail 
        service in the State that benefits the public.
            ``(4) To serve as the basis for Federal and State rail 
        investments within the State.
    ``(b) Coordination.--A State rail plan shall be coordinated with 
other State transportation planning goals and programs and set forth 
rail transportation's role within the State transportation system.
``Sec. 22504. Transparency; coordination; review
    ``(a) Preparation.--A State shall provide adequate and reasonable 
notice and opportunity for comment and other input to the public, rail 
carriers, commuter and transit authorities operating in, or affected by 
rail operations within the State, units of local government, and other 
interested parties in the preparation and review of its State rail 
plan.
    ``(b) Intergovernmental Coordination.--A State shall review the 
freight and passenger rail service activities and initiatives by 
regional planning agencies, regional transportation authorities, and 
municipalities within the State, or in the region in which the State is 
located, while preparing the plan, and shall include any 
recommendations made by such agencies, authorities, and municipalities 
as deemed appropriate by the State.
``Sec. 22505. Content
    ``(a) In General.--Each State rail plan shall contain the 
following:
            ``(1) An inventory of the existing overall rail 
        transportation system and rail services and facilities within 
        the State and an analysis of the role of rail transportation 
        within the State's surface transportation system.
            ``(2) A review of all rail lines within the State, 
        including proposed high speed rail corridors and significant 
        rail line segments not currently in service.
            ``(3) A statement of the State's passenger rail service 
        objectives, including minimum service levels, for rail 
        transportation routes in the State.
            ``(4) A general analysis of rail's transportation, 
        economic, and environmental impacts in the State, including 
        congestion mitigation, trade and economic development, air 
        quality, land-use, energy-use, and community impacts.
            ``(5) A long-range rail investment program for current and 
        future freight and passenger infrastructure in the State that 
        meets the requirements of subsection (b).
            ``(6) A statement of public financing issues for rail 
        projects and service in the State, including a list of current 
        and prospective public capital and operating funding resources, 
        public subsidies, State taxation, and other financial policies 
        relating to rail infrastructure development.
            ``(7) An identification of rail infrastructure issues 
        within the State that reflects consultation with all relevant 
        stake holders.
            ``(8) A review of major passenger and freight intermodal 
        rail connections and facilities within the State, including 
        seaports, and prioritized options to maximize service 
        integration and efficiency between rail and other modes of 
        transportation within the State.
            ``(9) A review of publicly funded projects within the State 
        to improve rail transportation safety and security, including 
        all major projects funded under section 130 of title 23.
            ``(10) A performance evaluation of passenger rail services 
        operating in the State, including possible improvements in 
        those services, and a description of strategies to achieve 
        those improvements.
            ``(11) A compilation of studies and reports on high-speed 
        rail corridor development within the State not included in a 
        previous plan under this subchapter, and a plan for funding any 
        recommended development of such corridors in the State.
            ``(12) A statement that the State is in compliance with the 
        requirements of section 22102.
    ``(b) Long-Range Service and Investment Program.--
            ``(1) Program content.--A long-range rail investment 
        program included in a State rail plan under subsection (a)(5) 
        shall include the following matters:
                    ``(A) A list of any rail capital projects expected 
                to be undertaken or supported in whole or in part by 
                the State.
                    ``(B) A detailed funding plan for those projects.
            ``(2) Project list content.--The list of rail capital 
        projects shall contain--
                    ``(A) a description of the anticipated public and 
                private benefits of each such project; and
                    ``(B) a statement of the correlation between--
                            ``(i) public funding contributions for the 
                        projects; and
                            ``(ii) the public benefits.
            ``(3) Considerations for project list.--In preparing the 
        list of freight and intercity passenger rail capital projects, 
        a State rail transportation authority should take into 
        consideration the following matters:
                    ``(A) Contributions made by non-Federal and non-
                State sources through user fees, matching funds, or 
                other private capital involvement.
                    ``(B) Rail capacity and congestion effects.
                    ``(C) Effects on highway, aviation, and maritime 
                capacity, congestion, or safety.
                    ``(D) Regional balance.
                    ``(E) Environmental impact.
                    ``(F) Economic and employment impacts.
                    ``(G) Projected ridership and other service 
                measures for passenger rail projects.
``Sec. 22506. Review
    The Secretary shall prescribe procedures for States to submit State 
rail plans for review under this title, including standardized format 
and data requirements. State rail plans completed before the date of 
enactment of the Passenger Rail Investment and Improvement Act of 2007 
that substantially meet the requirements of this chapter, as determined 
by the Secretary, shall be deemed by the Secretary to have met the 
requirements of this chapter''.
    (b) Conforming Amendments.--
            (1) The table of chapters for the title is amended by 
        inserting the following after the item relating to chapter 223:

``225. State rail plans....................................    22501''.
            ``(2) The chapter analysis for subtitle V is amended by 
        inserting the following after the item relating to chapter 223:

``225. State rail plans....................................    24401''.

SEC. 303. NEXT GENERATION CORRIDOR TRAIN EQUIPMENT POOL.

    (a) In General.--Within 180 days after the date of enactment of 
this Act, Amtrak shall establish a Next Generation Corridor Equipment 
Pool Committee, comprised of representatives of Amtrak, the Federal 
Railroad Administration, host freight railroad companies, passenger 
railroad equipment manufacturers, and other passenger railroad 
operators as appropriate and interested States. The purpose of the 
Committee shall be to design, develop specifications for, and procure 
standardized next-generation corridor equipment.
    (b) Functions.--The Committee may--
            (1) determine the number of different types of equipment 
        required, taking into account variations in operational needs 
        and corridor infrastructure;
            (2) establish a pool of equipment to be used on corridor 
        routes funded by participating States; and
            (3) subject to agreements between Amtrak and States, 
        utilize services provided by Amtrak to design, maintain and 
        remanufacture equipment.
    (c) Cooperative Agreements.--Amtrak and States participating in the 
Committee may enter into agreements for the funding, procurement, 
remanufacture, ownership and management of corridor equipment, 
including equipment currently owned or leased by Amtrak and next-
generation corridor equipment acquired as a result of the Committee's 
actions, and may establish a corporation, which may be owned or 
jointly-owned by Amtrak, participating States or other entities, to 
perform these functions.
    (d) Funding.--In addition to the authorization provided in section 
105 of this Act, capital projects to carry out the purposes of this 
section shall be eligible for grants made pursuant to chapter 244 of 
title 49, United States Code.

SEC. 304. FEDERAL RAIL POLICY.

    Section 103 is amended--
            (1) by inserting ``In General.--'' before ``The Federal'' 
        in subsection (a);
            (2) by striking the second and third sentences of 
        subsection (a);
            (3) by inserting ``Administrator.--'' before ``The head'' 
        in subsection (b);
            (4) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively and by inserting 
        after subsection (b) the following:
    ``(c) Safety.--To carry out all railroad safety laws of the United 
States, the Administration is divided on a geographical basis into at 
least 8 safety offices. The Secretary of Transportation is responsible 
for all acts taken under those laws and for ensuring that the laws are 
uniformly administered and enforced among the safety offices.'';
            (5) by inserting ``Powers and Duties.--'' before ``The'' in 
        subsection (d), as redesignated;
            (6) by striking ``and'' after the semicolon in paragraph 
        (1) of subsection (d), as redesignated;
            (7) by redesignating paragraph (2) of subsection (d), as 
        redesignated, as paragraph (3) and inserting after paragraph 
        (1) the following:
            ``(2) the duties and powers related to railroad policy and 
        development under subsection (e); and'';
            (8) by inserting ``Transfers of Duty.--'' before ``A duty'' 
        in subsection (e), as redesignated;
            (9) by inserting ``Contracts, grants, leases, cooperative 
        agreements, and similar transactions.--'' before ``Subject'' in 
        subsection (f), as redesignated;
            (10) by striking the last sentence in subsection (f), as 
        redesignated; and
            (11) by adding at the end the following:
    ``(g) Additional Duties of the Administrator.--The Administrator 
shall--
            ``(1) provide assistance to States in developing State rail 
        plans prepared under chapter 225 and review all State rail 
        plans submitted under that section;
            ``(2) develop a long range national rail plan that is 
        consistent with approved State rail plans and the rail needs of 
        the Nation, as determined by the Secretary in order to promote 
        an integrated, cohesive, efficient, and optimized national rail 
        system for the movement of goods and people;
            ``(3) develop a preliminary national rail plan within a 
        year after the date of enactment of the Passenger Rail 
        Investment and Improvement Act of 2007;
            ``(4) develop and enhance partnerships with the freight and 
        passenger railroad industry, States, and the public concerning 
        rail development;
            ``(5) support rail intermodal development and high-speed 
        rail development, including high speed rail planning;
            ``(6) ensure that programs and initiatives developed under 
        this section benefit the public and work toward achieving 
        regional and national transportation goals; and
            ``(7) facilitate and coordinate efforts to assist freight 
        and passenger rail carriers, transit agencies and authorities, 
        municipalities, and States in passenger-freight service 
        integration on shared rights of way by providing neutral 
        assistance at the joint request of affected rail service 
        providers and infrastructure owners relating to operations and 
        capacity analysis, capital requirements, operating costs, and 
        other research and planning related to corridors shared by 
        passenger or commuter rail service and freight rail operations.
    ``(h) Performance Goals and Reports.--
            ``(1) Performance goals.--In conjunction with the 
        objectives established and activities undertaken under section 
        103(e) of this title, the Administrator shall develop a 
        schedule for achieving specific, measurable performance goals.
            ``(2) Resource needs.--The strategy and annual plans shall 
        include estimates of the funds and staff resources needed to 
        accomplish each goal and the additional duties required under 
        section 103(e).
            ``(3) Submission with president's budget.--Beginning with 
        fiscal year 2009 and each fiscal year thereafter, the Secretary 
        shall submit to Congress, at the same time as the President's 
        budget submission, the Administration's performance goals and 
        schedule developed under paragraph (1), including an assessment 
        of the progress of the Administration toward achieving its 
        performance goals.''.

SEC. 305. RAIL COOPERATIVE RESEARCH PROGRAM.

    (a) Establishment and Content.--Chapter 249 is amended by adding at 
the end the following:
``Sec. 24910. Rail cooperative research program
    ``(a) In General.--The Secretary shall establish and carry out a 
rail cooperative research program. The program shall--
            ``(1) address, among other matters, intercity rail 
        passenger and freight rail services, including existing rail 
        passenger and freight technologies and speeds, incrementally 
        enhanced rail systems and infrastructure, and new high-speed 
        wheel-on-rail systems and rail security;
            ``(2) address ways to expand the transportation of 
        international trade traffic by rail, enhance the efficiency of 
        intermodal interchange at ports and other intermodal terminals, 
        and increase capacity and availability of rail service for 
        seasonal freight needs;
            ``(3) consider research on the interconnectedness of 
        commuter rail, passenger rail, freight rail, and other rail 
        networks; and
            ``(4) give consideration to regional concerns regarding 
        rail passenger and freight transportation, including meeting 
        research needs common to designated high-speed corridors, long-
        distance rail services, and regional intercity rail corridors, 
        projects, and entities.
    ``(b) Content.--The program to be carried out under this section 
shall include research designed--
            ``(1) to identify the unique aspects and attributes of rail 
        passenger and freight service;
            ``(2) to develop more accurate models for evaluating the 
        impact of rail passenger and freight service, including the 
        effects on highway and airport and airway congestion, 
        environmental quality, and energy consumption;
            ``(3) to develop a better understanding of modal choice as 
        it affects rail passenger and freight transportation, including 
        development of better models to predict utilization;
            ``(4) to recommend priorities for technology demonstration 
        and development;
            ``(5) to meet additional priorities as determined by the 
        advisory board established under subsection (c), including any 
        recommendations made by the National Research Council;
            ``(6) to explore improvements in management, financing, and 
        institutional structures;
            ``(7) to address rail capacity constraints that affect 
        passenger and freight rail service through a wide variety of 
        options, ranging from operating improvements to dedicated new 
        infrastructure, taking into account the impact of such options 
        on operations;
            ``(8) to improve maintenance, operations, customer service, 
        or other aspects of intercity rail passenger and freight 
        service;
            ``(9) to recommend objective methodologies for determining 
        intercity passenger rail routes and services, including the 
        establishment of new routes, the elimination of existing 
        routes, and the contraction or expansion of services or 
        frequencies over such routes;
            ``(10) to review the impact of equipment and operational 
        safety standards on the further development of high speed 
        passenger rail operations connected to or integrated with non-
        high speed freight or passenger rail operations;
            ``(11) to recommend any legislative or regulatory changes 
        necessary to foster further development and implementation of 
        high speed passenger rail operations while ensuring the safety 
        of such operations that are connected to or integrated with 
        non-high speed freight or passenger rail operations; and
            ``(12) to review rail crossing safety improvements, 
        including improvements using new safety technology.
    ``(c) Advisory Board.--
            ``(1) Establishment.--In consultation with the heads of 
        appropriate Federal departments and agencies, the Secretary 
        shall establish an advisory board to recommend research, 
        technology, and technology transfer activities related to rail 
        passenger and freight transportation.
            ``(2) Membership.--The advisory board shall include--
                    ``(A) representatives of State transportation 
                agencies;
                    ``(B) transportation and environmental economists, 
                scientists, and engineers; and
                    ``(C) representatives of Amtrak, the Alaska 
                Railroad, freight railroads, transit operating 
                agencies, intercity rail passenger agencies, railway 
                labor organizations, and environmental organizations.
    ``(d) National Academy of Sciences.-- The Secretary may make grants 
to, and enter into cooperative agreements with, the National Academy of 
Sciences to carry out such activities relating to the research, 
technology, and technology transfer activities described in subsection 
(b) as the Secretary deems appropriate.''.
    (b) Clerical Amendment.--The chapter analysis for chapter 249 is 
amended by adding at the end the following:

``24910. Rail cooperative research program.''.

SEC. 306. PASSENGER RAIL SYSTEM COMPARISON STUDY.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall complete a study that compares the passenger rail system in the 
United States with the passenger rail systems in Canada, Germany, Great 
Britain, and Japan.
    (b) Issues To Be Studied.--The study conducted under subsection (a) 
shall include a country-by-country comparison of--
            (1) the development of high speed rail;
            (2) passenger rail operating costs;
            (3) the amount and payment source of rail line construction 
        and maintenance costs;
            (4) the amount and payment source of station construction 
        and maintenance costs;
            (5) passenger rail debt service costs;
            (6) passenger rail labor agreements and associated costs;
            (7) the net profit realized by the major passenger rail 
        service providers in each of the 4 most recent quarters;
            (8) the percentage of the passenger rail system's costs 
        that are paid from general government revenues; and
            (9) the method used by the government to provide the 
        subsidies described in paragraph (8).
    (c) Report.--Not later than 180 days after the completion of the 
study under subsection (a), the Comptroller General shall submit a 
report containing the findings of such study to--
            (1) the Committee on Commerce, Science, and Transportation 
        of the Senate; and
            (2) the Committee on Transportation and Infrastructure of 
        the House of Representatives.

                        TITLE IV--MISCELLANEOUS

SEC. 401. STRATEGIC PLAN ON EXPANDED CROSS-BORDER PASSENGER RAIL 
              SERVICE DURING THE 2010 OLYMPIC GAMES.

    Not later than one year after the date of the enactment of this 
Act, Amtrak shall, in consultation with the Secretary of 
Transportation, the Secretary of Homeland Security, the Washington 
State Department of Transportation, and the owners of the relevant 
railroad infrastructure--
            (1) develop a strategic plan to facilitate expanded 
        passenger rail service across the international border between 
        the United States and Canada during the 2010 Olympic Games on 
        the Amtrak passenger rail route between Vancouver, British 
        Columbia, Canada, and Eugene, Oregon (commonly known as 
        ``Amtrak Cascades'');
            (2) develop recommendations for the Department of Homeland 
        Security to process efficiently rail passengers traveling on 
        Amtrak Cascades across such international border during the 
        2010 Olympic Games; and
            (3) submit to Congress a report containing the strategic 
        plan described in paragraph (1) and the recommendations 
        described in paragraph (2).

            Passed the Senate October 30, 2007.

            Attest:

                                                NANCY ERICKSON,

                                                             Secretary.