[Congressional Record Volume 143, Number 111 (Thursday, July 31, 1997)]
[Senate]
[Pages S8559-S8565]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MOYNIHAN (for himself, Mr. Reid, Mrs. Boxer, Ms. Mikulski, 
        and Mr. Robb):
  S. 1103. A bill to amend title 23, United States Code, to authorize 
Federal participation in financing of projects to demonstrate the 
feasibility of deployment of magnetic levitation transportation 
technology, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.


 the magnetic levitation (maglev) transportation technology deployment 
                              act of 1997

  Mr. MOYNIHAN. Mr. President, I rise with a distinguished group of my 
colleagues to introduce the Magnetic Levitation Transportation 
Technology Deployment Act of 1997.
  Maglev is the first new transportation technology envisioned since 
the development of aviation in the early 1900's, and its adoption 
represents an opportunity for dramatic national gains in transportation 
efficiency and economic growth. This legislation proposes to 
demonstrate the feasibility of Maglev by authorizing limited Federal 
participation in financing one or more Maglev projects in the United 
States.
  Maglev is an advanced technology in which magnetic forces lift, 
propel, and guide a vehicle over a guideway. Utilizing state-of-the-art 
electric power and control systems, this configuration eliminates the 
need for wheels and many other mechanical parts, thereby minimizing 
friction and permitting cruising speeds of 300 miles per hour or more--
three times the speed of conventional American train technology. 
Because of its high speeds and relatively modest right-of-way 
requirements, Maglev offers significant advantages over auto, rail, and 
aviation modes in 40- to 600-mile travel markets. Maglev is also a very 
safe technology since properly designed Maglev is virtually impossible 
to derail.
  While Maglev was invented by a young American nuclear engineer in the 
1960's, the Germans have developed the technology and have already 
built a demonstration Maglev test facility. They are now proceeding 
with a public/private project to construct a 181-mile Maglev system to 
connect Berlin to Hamburg. The German system, which is expected to be 
operational by 2005, will provide 1-hour service between the two 
cities. Not far behind Germany, Japan has its own Maglev system under 
test. Meanwhile, our Federal Government has done relatively little to 
develop this extraordinary technology.
  In the last few years, however, the Federal Rail Administration has 
identified the feasibility of deployment of Maglev systems in several 
major U.S. transportation corridors. Also, several public/private 
partnerships in the United States have begun to develop

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Maglev projects in a number of States, including California, Florida, 
Maryland, and Nevada. However, as with our European and Asian 
competitors, developing these Maglev projects will require Federal 
support to supplement the private and other public funding sources. Our 
bill would establish a competition for Federal funds, based on economic 
and financial criteria, among the various public/private Maglev project 
partnerships.
  Because Maglev is a proven technology that offers significant 
benefits for both passengers and freight, it is in the National 
interest to demonstrate these benefits by proceeding to construct and 
put into service, at an early date, a project in the United States. 
This legislation will encourage such a project at minimum public cost.
  I ask unanimous consent that the section-by-section analysis and the 
text of the Magnetic Levitation (Maglev) Transportation Technology 
Deployment Act of 1997 be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1103

       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 ``Magnetic Levitation (MAGLEV) 
     Transportation Technology Deployment Act of 1997''.

     SEC. 2. FINDINGS AND POLICY.

       (a) Findings.--Congress finds that--
       (1)(A) new transportation technologies are needed to 
     develop new modes of transportation that are environmentally 
     sound and energy efficient;
       (B) very high- and super-speed magnetic levitation 
     (referred to in this section as ``MAGLEV'') is the technology 
     that appears to best meet the needs of the traveling public 
     and high-value freight shippers in the 40- to 600-mile 
     distance corridors;
       (C) MAGLEV is energy efficient, consuming less energy per 
     passenger mile at any given speed than other forms of 
     transportation and reducing dependence on imported oil;
       (D) since properly designed MAGLEV is virtually impossible 
     to derail, MAGLEV is safe and will prevent accidents and loss 
     of life, and will significantly reduce costs attributable to 
     accidents occurring on highways, freight rail lines, 
     intercity rail passenger service lines, commuter rail lines, 
     and short haul airline routes of the United States;
       (E) MAGLEV is virtually unaffected by weather conditions, 
     which annually result in delays in other transportation modes 
     employed by freight and passenger carriers; and
       (F) MAGLEV makes extensive use of existing highway rights-
     of-way and consumes less land for its guideway infrastructure 
     than a comparable roadway;
       (2) the commercial feasibility study of high-speed ground 
     transportation conducted under section 1036 of the Intermodal 
     Surface Transportation Efficiency Act of 1991 (Public Law 
     102-240; 105 Stat. 1978)--
       (A) demonstrates that MAGLEV systems have the potential for 
     a public and private partnership under which the private 
     sector could operate a system without operating subsidies and 
     the total benefits of the system would exceed the total 
     costs; and
       (B) demonstrates that adding links or corridors to the 
     basic MAGLEV system would enhance the basic system, leading 
     to establishment of high-volume high-speed ground 
     transportation networks; and
       (3) the study required by section 359(d) of the National 
     Highway System Designation Act of 1995 (Public Law 104-59; 
     109 Stat. 627) further demonstrates the potential for MAGLEV 
     systems.
       (b) Policy.--It is the policy of the United States to 
     establish a MAGLEV transportation technology system operating 
     along Federal-aid highway and other rights-of-way as part of 
     a national transportation system of the United States.

     SEC. 3. MAGNETIC LEVITATION TRANSPORTATION TECHNOLOGY 
                   DEPLOYMENT PROGRAM.

       (a) In General.--Chapter 3 of title 23, United States Code, 
     is amended by inserting after section 321 the following:

     ``Sec. 322. Magnetic levitation transportation technology 
       deployment program

       ``(a) Definitions.--In this section:
       ``(1) Eligible project costs.--The term `eligible project 
     costs' means the capital cost of the fixed guideway 
     infrastructure of a MAGLEV project, including land, piers, 
     guideways, propulsion equipment and other components attached 
     to guideways, power distribution facilities (including 
     substations), control and communications facilities, access 
     roads, and storage, repair, and maintenance facilities, but 
     not including costs incurred for a new station.
       ``(2) Full project costs.--The term `full project costs' 
     means the total capital costs of a MAGLEV project, including 
     eligible project costs and the costs of stations, vehicles, 
     and equipment.
       ``(3) MAGLEV.--The term `MAGLEV' means transportation 
     systems employing magnetic levitation that would be capable 
     of safe use by the public at a speed in excess of 240 miles 
     per hour.
       ``(4) Partnership potential.--The term `partnership 
     potential' has the meaning given the term in the commercial 
     feasibility study of high-speed ground transportation 
     conducted under section 1036 of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (Public Law 102-240; 
     105 Stat. 1978).
       ``(5) Recognized pilot project.--The term `recognized pilot 
     project' means a project identified in the report transmitted 
     by the Secretary to Congress on the near-term applications of 
     magnetic levitation ground transportation technology in the 
     United States as required by section 359(d) of the National 
     Highway System Designation Act of 1995 (Public Law 104-59; 
     109 Stat. 627).
       ``(b) High-Speed Ground Transportation Office.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of the Magnetic Levitation (MAGLEV) Transportation 
     Technology Deployment Act of 1997, the Secretary shall 
     establish a High-Speed Ground Transportation Office in the 
     Federal Railroad Administration to--
       ``(A) coordinate and administer all high-speed rail and 
     MAGLEV programs authorized by this section and any other 
     provision of this title or title 49; and
       ``(B) make available financial assistance to provide the 
     Federal share of full project costs of eligible projects 
     selected under this section and otherwise carry out this 
     section.
       ``(2) Federal share.--The Federal share of full project 
     costs under paragraph (1)(B) shall be not more than \2/3\.
       ``(3) Use of assistance.--Financial assistance provided 
     under paragraph (1)(B) shall be used only to pay eligible 
     project costs of projects selected under this section.
       ``(c) Solicitation of Applications for Assistance.--Not 
     later than 90 days after the establishment of the High-Speed 
     Ground Transportation Office, the Secretary shall solicit 
     applications from States, or authorities designated by 1 or 
     more States, for financial assistance authorized by 
     subsection (b)(1)(B) for planning, design, and construction 
     of eligible MAGLEV projects.
       ``(d) Project Eligibility.--To be eligible to receive 
     financial assistance under subsection (b)(1)(B), a project 
     shall--
       ``(1) involve a segment or segments of a high-speed ground 
     transportation corridor that--
       ``(A) exhibits partnership potential; or
       ``(B) is a portion of a recognized pilot project;
       ``(2) require an amount of Federal funds for project 
     financing that will not exceed--
       ``(A) the amounts made available under subsection 
     (j)(1)(A); and
       ``(B) the amounts made available by States under subsection 
     (j)(4);
       ``(3) result in an operating transportation facility that 
     provides a revenue producing service;
       ``(4) be undertaken through a public and private 
     partnership, with at least \1/3\ of full project costs paid 
     using non-Federal funds;
       ``(5) to the maximum extent practicable (as determined by 
     the Secretary), satisfy applicable Statewide and metropolitan 
     planning requirements;
       ``(6) be approved by the Secretary based on an application 
     submitted to the Secretary by a State or authority designated 
     by 1 or more States;
       ``(7) to the extent non-United States MAGLEV technology is 
     used within the United States, be carried out as a technology 
     transfer project; and
       ``(8) be carried out using materials at least 70 percent of 
     which are manufactured in the United States.
       ``(e) Project Selection Criteria.--Prior to soliciting 
     applications, the Secretary shall establish criteria for 
     selecting which eligible projects under subsection (d) will 
     receive financial assistance under subsection (b)(1)(B). The 
     criteria shall include the extent to which--
       ``(1) a project is nationally significant, including the 
     extent to which the project will demonstrate the feasibility 
     of deployment of MAGLEV technology throughout the United 
     States;
       ``(2) timely implementation of the project will reduce 
     congestion in other modes of transportation and reduce the 
     need for additional highway or airport construction;
       ``(3) States, regions, and localities financially 
     contribute to the project;
       ``(4) implementation of the project will create new jobs in 
     traditional and emerging industries;
       ``(5) the project will augment MAGLEV networks identified 
     as having partnership potential;
       ``(6) financial assistance would foster public and private 
     partnerships for infrastructure development and attract 
     private debt or equity investment;
       ``(7) financial assistance would foster the timely 
     implementation of a project; and
       ``(8) life-cycle costs in design and engineering are 
     considered and enhanced.
       ``(f) Project Selection.--Not later than 90 days after a 
     deadline established by the Secretary for the receipt of 
     applications, the Secretary shall evaluate the eligible 
     projects in accordance with the selection criteria and select 
     1 or more eligible projects for financial assistance.
       ``(g) Joint Ventures.--A project undertaken by a joint 
     venture of United States and non-United States persons 
     (including a project involving the deployment of non-United 
     States MAGLEV technology in the United States) shall be 
     eligible for financial

[[Page S8565]]

     assistance under this section if the project is eligible 
     under subsection (d) and selected under subsection (f).
       ``(h) Research Grants and Contracts.--The Secretary shall 
     conduct research that shall include providing grants to, and 
     entering into contracts with, colleges, universities, 
     research institutes, Federal laboratories, and private 
     entities for research related to--
       ``(1) the quantification of benefits derived from the 
     implementation of MAGLEV technology;
       ``(2) MAGLEV safety;
       ``(3) the development of domestic MAGLEV technologies, 
     including electromagnetic and superconducting technology; and
       ``(4) the development of technologies associated with 
     MAGLEV infrastructure.
       ``(i) Report.--Not later than 180 days after the date of 
     enactment of the Magnetic Levitation (MAGLEV) Transportation 
     Technology Deployment Act of 1997, the Secretary shall submit 
     a report to the Committee on Environment and Public Works of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives on progress in 
     implementing this section that includes a report on--
       ``(1) the establishment of the High-Speed Ground 
     Transportation Office under subsection (b);
       ``(2) applications for assistance under this section; and
       ``(3) the establishment of public and private partnerships 
     to carry out this section.
       ``(j) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to--
       ``(A) carry out this section (other than subsection (h)), 
     $10,000,000 for fiscal year 1998, $20,000,000 for fiscal year 
     1999, $200,000,000 for each of fiscal years 2000 and 2001, 
     and $250,000,000 for each of fiscal years 2002 and 2003; and
       ``(B) provide research grants and contracts under 
     subsection (h), $10,000,000 for each of fiscal years 1998 
     through 2003.
       ``(2) Availability of funds.--Funds made available under 
     paragraph (1) shall remain available until expended.
       ``(3) Contract authority.--Approval by the Secretary of an 
     eligible project selected under this section shall be 
     considered to be a contractual obligation of the United 
     States for payment of the Federal share of the full project 
     costs of the project.
       ``(4) Other federal funds.--Notwithstanding any other 
     provision of law, funds made available to a State to carry 
     out the surface transportation program under section 133 and 
     the congestion mitigation and air quality improvement program 
     under section 149 may be used by the State to pay a portion 
     of the full project costs of an eligible project selected 
     under this section, without requirement for non-Federal 
     funds.
       ``(5) Other assistance.--Notwithstanding any other 
     provision of law, an eligible project selected under this 
     section shall be eligible for the loans, loan guarantees, 
     lines of credit, development cost and political risk 
     insurance, credit enhancement, and risk insurance that are 
     authorized for a highway project under this title.
       ``(6) Tax-exempt bond financing.--For the purpose of 
     obtaining tax-exempt bond financing under the Internal 
     Revenue Code of 1986, a MAGLEV facility shall be considered 
     to be a high-speed intercity rail facility with an average 
     speed greater than 150 miles per hour under section 
     142(a)(11) of that Code.''.
       (b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code, is amended by inserting after 
     the item relating to section 321 the following:

``322. Magnetic levitation transportation technology deployment 
              program.''.

              
                                                                    ____
 Magnetic Levitation (MAGLEV) Transportation Technology Deployment Act 
                  of 1997--Section-by-Section Analysis

     Sec. 1 Short Title
       This section designates this bill as the ``Magnetic 
     Levitation (MAGLEV) Transportation Technology Deployment Act 
     of 1997.''
     Sec. 2 Findings and Policy
       Sub-section (a) makes several findings concerning the need 
     for a new mode of transportation that is environmentally 
     sound and energy efficient and describes how magnetic 
     levitation can meet that need with a demonstrated safe and 
     cost-effective technology.
       Based upon the above findings, sub-section (b) declares 
     that it is the policy of the United States to establish a 
     MAGLEV transportation technology system as part of our 
     national transportation system.
     Sec. 3 Magnetic Levitation Transportation Technology 
         Deployment Program
       Sub-section (a) amends Chapter 3 of Title 23, U.S.C. to add 
     a new ``Section 322. Magnetic Levitation transportation 
     technology deployment program.''
       Sub-section (a) of the new Section 322 provides definitions 
     for several terms subsequently used in the legislative 
     language.
       Paragraph (b)(1) of the new Section 322 requires The 
     Secretary of Transportation to establish a High-Speed Ground 
     Transportation Office in the Federal Railroad Administration 
     to coordinate and administer all high-speed rail and MAGLEV 
     programs and make available Federal funds authorized by this 
     section for selected MAGLEV projects.
       Paragraph (b)(2) specifies that the Federal share of costs 
     of selected projects shall not exceed \2/3\ of the full 
     project costs which include: guideway, stations, vehicles and 
     appurtenant facilities and equipment.
       Paragraph (b)(3) specifies that the Federal funds 
     authorized by this legislation may only be used to pay the 
     capital costs of the fixed guideway infrastructure of a 
     MAGLEV project.
       Sub-section (c) requires the Secretary to solicit 
     applications from states or authorities designated by one or 
     more states for financial assistance in the planning, design 
     and construction of an eligible MAGLEV project.
       Sub-section (d) defines project eligibility, and requires 
     eligible projects to, among other requirements:
       Involve a segment or segments of a longer high speed ground 
     transportation corridor that exhibits partnership potential 
     (i.e. can be shown that once built, can be operated by 
     private enterprise as a self sustaining entity.) or is a 
     portion of a recognized pilot project identified in a report 
     to Congress mandated by Section 359(d) of the National 
     Highway System Designation Act of 1995;
       Not require more Federal assistance than the amount 
     authorized by this legislation plus any additional amounts of 
     Federal-aid highway apportionment which are made available by 
     the states; and
       Results in an operating transportation facility that 
     provides revenue producing service.
       Sub-section (e) requires the Secretary to establish 
     criteria for selection of eligible projects and provides a 
     list of criteria to be included.
       Sub-section (f) requires the Secretary to establish a 
     deadline for receipt of applications and provides 90 days for 
     the Secretary to evaluate the applications and select one or 
     more projects for financial assistance.
       Sub-section (g) allows joint ventures composed of U.S. and 
     non-U.S. persons to be eligible for financial assistance.
       Sub-section (h) requires the Secretary to carry out 
     additional research and provides authority to enter into 
     research contracts with a variety of public and private 
     businesses, institutions and laboratories.
       Sub-section (i) requires a report to the Senate Committee 
     on Environment and Public Works and the House Committee on 
     Transportation and Infrastructure within 180 days on the 
     progress made in implementing the legislation.
       Paragraph (j)(1) authorizes $930,000,000 from the Highway 
     Trust Fund (other than the Mass Transit Account) over six 
     years to provide the Federal share of the cost of design and 
     construction of one or more MAGLEV projects selected by the 
     Secretary. It also provides $10,000,000 annually for 
     authorized research activities.
       Paragraph (j)(2) and (3) keep the authorized amounts 
     available until expended and provide contract authority.
       Paragraph (j)(4) permits any state to use a portion of 
     Federal highway funds apportioned to the state for the 
     Surface Transportation Program (STP) and the Congestion 
     Mitigation Air Quality Program (CMAQ) to pay a portion of the 
     full project costs.
       Paragraph (j)(5) makes selected projects eligible for any 
     innovative financing techniques provided for Federal-aid 
     highway projects under title 23, U.S.C.
       Paragraph (j)(6) of the new Section 322 makes selected 
     MAGLEV projects eligible for tax-exempt bond financing.
                                 ______