[Congressional Record Volume 147, Number 16 (Tuesday, February 6, 2001)]
[Senate]
[Pages S1067-S1072]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BIDEN (for himself, Mrs. Hutchison, Mr. Lott, Mr.

[[Page S1068]]

        Daschle, Mr. Kerry, Mr. Baucus, Mrs. Boxer, Mr. Breaux, Mr. 
        Burns, Mr. Byrd, Mr. Carper, Mr. L. Chafee, Mr. Cleland, Mrs. 
        Clinton, Mr. Cochran, Ms. Collins, Mr. Corzine, Mr. DeWine, Mr. 
        Dodd, Mr. Dorgan, Mr. Durbin, Mr. Edwards, Mr. Feingold, Mrs. 
        Feinstein, Mr. Graham, Mr. Helms, Mr. Hollings, Mr. Inouye, Mr. 
        Jeffords, Mr. Johnson, Mr. Kennedy, Mr. Kohl, Ms. Landrieu, Mr. 
        Leahy, Mr. Levin, Mr. Lieberman, Mrs. Lincoln, Ms. Mikulski, 
        Mr. Miller, Mrs. Murray, Mr. Reid, Mr. Rockefeller, Mr. 
        Santorum, Mr. Sarbanes, Mr. Schumer, Ms. Snowe, Mr. Specter, 
        Ms. Stabenow, Mr. Torricelli, Mr. Warner, and Mr. Wellstone):
  S. 250. A bill to amend the Internal Revenue Code of 1986 to allow a 
credit to holders of qualified bonds issued by Amtrak, and for other 
purposes; to the Committee on Finance.
  Mr. BIDEN. Mr. President, I rise today to introduce, along with 
Senator Hutchison, Senator Lott, Senator Daschle, and 47 other 
cosponsors, the High Speed Rail Investment Act of 2001. With this 
legislation we continue the work begun by our former colleagues, 
Senator Bill Roth, Senator Pat Moynihan, and especially Senator Frank 
Lautenberg, who worked so hard in the last Congress to support high 
speed intercity passenger rail.
  Since the very first steam locomotive in this country rolled in 
Newcastle, Delaware, railroading has been a capital-intensive industry. 
From the rolling stock to the right of way, railroads require major 
long-term investments. But unlike every other passenger rail system in 
the world, Amtrak has lacked a secure source of public support for its 
capital needs. Over the years, along with many of my colleagues here in 
the Senate, I have looked for ways to right that wrong.
  The bill that Senator Hutchison and I introduce today is designed to 
provide Amtrak with the capital funds to establish a truly national 
high speed passenger rail system. The idea is simple, and it is modeled 
on a program we already have in place to support another important 
public priority, public school construction. Under this legislation, 
Amtrak is authorized to issue, over the next ten years, up to $12 
billion in bonds. Instead of an interest payment, the holders of those 
bonds will be paid by a rebate on their federal income taxes.
  The funds generated from the sale of the bonds will be available for 
investments in high speed rail corridors throughout the country, from 
the established and profitable Northeast Corridor to planned corridors 
from Florida to the Pacific Northwest. One thing I learned from my days 
on the County Council in Delaware was that each route on a bus system 
supports and sustains the others. Cut one route, and ridership will 
fall off on the others as the whole system becomes less useful. 
Conversely, the more complete the system the more people will find that 
it meets their needs.
  Another thing I learned on the county council, Mr. President, is that 
if state and local governments are required to put up some of their own 
funds to match assistance from the federal government, they will think 
long and hard about the best use of their funds. That is why this 
legislation requires a twenty percent match by the state before a high 
speed rail project can qualify for the support this bill provides. This 
provision not only provides an additional safeguard that high speed 
rail investments meet the many real needs the states have, but it also 
assures that the funds will be there to pay off the bonds as they come 
due.
  Before a project is eligible for the funds raised under this bill, it 
must be reviewed by the Secretary of Transportation for its financial 
soundness, its role in a national passenger rail system, and its 
contribution to balance among the many regional corridors in the 
national system.
  I know that I don't have to tell my colleagues about the growing 
chorus of public complaints about air travel in this country. All over 
the country, overworked and over booked airports and flyways keep 
passengers sitting in terminals or out on the runways, waiting for some 
movement in a clogged system. The vast majority of our most crowded 
airports are located near rail lines that could take some of those 
passengers where they need to go faster, safer, and more comfortably.
  But only if we make the same investment in passenger rail that every 
other advanced economy does, Mr. President. Today, those tracks carry 
no passengers while our airports are bursting at the seams.
  The same is true for the major highway corridors between our nation's 
cities. Those arteries are clogged with every kind of traffic, from 
freight haulers to vacationers to business travelers. Many of them run 
parallel to major rail corridors, that could share some of that load. 
But only, Mr. President, if we make the same investment in passenger 
rail that every other advanced economy does.
  Just look at the lack of balance in our transportation spending, Mr. 
President. We spend $80 billion a year on our highways. We spend a 
billion just cleaning up road kills, and more than a billion a year 
salting icy roads. But we spend less than $600 million a year on rail 
infrastructure.
  We spend $19 billion a year on aviation, but, again, less than $600 
million on rail.
  These numbers are even more disturbing when you realize what you get 
for each dollar spent. Look at the enormous cost of individual 
projects. Construction of a freeway in Los Angeles costs $125 million 
per mile. Per mile, Mr. President. But that is cheap compared to the 
``Big Dig'' Central Artery in Boston--the price tag on that is $1.5 
billion per mile. Airport construction is just as expensive: the Denver 
International Airport cost $4.2 billion. To expand the Los Angeles 
International Airport will involve $3 billion to $4 billion in ground 
transportation costs alone.
  High speed passenger rail investments can get a lot more done for a 
lot less money--five to ten times as much as an investment in new 
highways. For example, expanding I-95, our major east-coast highway 
corridor, by just one lane can cost as much as $50 million a mile. That 
works out to about 45 passengers per hour for every million dollars. 
But a mile of new, high-speed rail track, which can cost $8 million a 
mile, will move 450 passengers per hour for every million dollars 
invested. That's a good deal all around.--fewer cars, less pollution, 
more people getting where they want to go.
  Under the terms of the Amtrak Reform Act of 1997, we have put Amtrak 
on a path to self-sufficiency in its operating budget by the year 2003. 
I have said many times that I do not think that this is the wisest 
course. Given the long history of underfunding Amtrak's needs, I am far 
from convinced that we have put Amtrak in a position to reach full 
operating self sufficiency by that artificial deadline. But whatever we 
make of that deadline on operating support, Mr. President, it is clear 
that the very least we can do is provide Amtrak with the capital funds 
to become the passenger rail service this nation needs.
  With the commitment of the leadership in both parties, with the 
support of over half of the Senate on the day of its introduction, this 
legislation is off to a great start. We will need all of these 
resources and more to see this through to final passage, and to get a 
real, world-class passenger rail system for the United States under 
way.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 250

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This Act may be cited as the ``High-Speed 
     Rail Investment Act of 2001''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

     SEC. 2. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

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

[[Page S1069]]

``Subpart H--Nonrefundable Credit for Holders of Qualified Amtrak Bonds

``Sec. 54. Credit to holders of qualified Amtrak bonds.

     ``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

       ``(a) Allowance of Credit.--In the case of a taxpayer who 
     holds a qualified Amtrak bond on a credit allowance date of 
     such bond which occurs during the taxable year, there shall 
     be allowed as a credit against the tax imposed by this 
     chapter for such taxable year an amount equal to the sum of 
     the credits determined under subsection (b) with respect to 
     credit allowance dates during such year on which the taxpayer 
     holds such bond.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a qualified Amtrak bond is 25 percent of the annual 
     credit determined with respect to such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any qualified Amtrak bond is the product of--
       ``(A) the applicable credit rate, multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Applicable credit rate.--For purposes of paragraph 
     (2), the applicable credit rate with respect to an issue is 
     the rate equal to an average market yield (as of the day 
     before the date of sale of the issue) on outstanding long-
     term corporate debt obligations (determined under regulations 
     prescribed by the Secretary).
       ``(4) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed.
       ``(c) Limitation Based on Amount of Tax.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this part 
     (other than this subpart and subpart C).
       ``(2) Carryover of unused credit.--If the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such taxable year.
       ``(d) Qualified Amtrak Bond.--For purposes of this part--
       ``(1) In general.--The term `qualified Amtrak bond' means 
     any bond issued as part of an issue if--
       ``(A) 95 percent or more of the proceeds of such issue are 
     to be used for any qualified project,
       ``(B) the bond is issued by the National Railroad Passenger 
     Corporation,
       ``(C) the issuer--
       ``(i) designates such bond for purposes of this section,
       ``(ii) certifies that it meets the State contribution 
     requirement of paragraph (3) with respect to such project and 
     that it has received the required State contribution payment 
     before the issuance of such bond,
       ``(iii) certifies that it has obtained the written approval 
     of the Secretary of Transportation for such project, 
     including a finding by the Inspector General of the 
     Department of Transportation that there is a reasonable 
     likelihood that the proposed program will result in a 
     positive incremental financial contribution to the National 
     Railroad Passenger Corporation and that the investment 
     evaluation process includes a return on investment, 
     leveraging of funds (including State capital and operating 
     contributions), cost effectiveness, safety improvement, 
     mobility improvement, and feasibility, and
       ``(iv) certifies that it has obtained written certification 
     by the Secretary, after consultation with the Secretary of 
     Transportation, that, in the case of a qualified project 
     which results in passenger trains operating at speeds greater 
     than 79 miles per hour, the issuer has entered into a written 
     agreement with the rail carriers (as defined in section 24102 
     of title 49, United States Code) the properties of which are 
     to be improved by such project as to the scope and estimated 
     cost of such project and the impact on freight capacity of 
     such rail carriers; Provided that the National Railroad 
     Passenger Corporation shall not exercise its rights under 
     section 24308(a) of such title 49 to resolve disputes with 
     respect to such project or the cost of such project,
       ``(D) the term of each bond which is part of such issue 
     does not exceed 20 years,
       ``(E) the payment of principal with respect to such bond is 
     the obligation of the National Railroad Passenger Corporation 
     (regardless of the establishment of the trust account under 
     subsection (j)), and
       ``(F) the issue meets the requirements of subsection (h).
       ``(2) Treatment of changes in use.--For purposes of 
     paragraph (1)(A), the proceeds of an issue shall not be 
     treated as used for a qualified project to the extent that 
     the issuer takes any action within its control which causes 
     such proceeds not to be used for a qualified project. The 
     Secretary shall prescribe regulations specifying remedial 
     actions that may be taken (including conditions to taking 
     such remedial actions) to prevent an action described in the 
     preceding sentence from causing a bond to fail to be a 
     qualified Amtrak bond.
       ``(3) State contribution requirement.--
       ``(A) In general.--For purposes of paragraph (1)(C)(ii), 
     the State contribution requirement of this paragraph is met 
     with respect to any qualified project if the National 
     Railroad Passenger Corporation has a written binding 
     commitment from 1 or more States to make matching 
     contributions not later than the date of issuance of the 
     issue of not less than 20 percent of the cost of the 
     qualified project. State matching contributions may include 
     privately funded contributions.
       ``(B) Use of state matching contributions.--The matching 
     contributions described in subparagraph (A) with respect to 
     each qualified project shall be used--
       ``(i) as necessary to redeem bonds which are a part of the 
     issue with respect to such project, and
       ``(ii) in the case of any remaining amount, at the election 
     of the National Railroad Passenger Corporation and the 
     contributing State--

       ``(I) to fund a qualified project,
       ``(II) to redeem other qualified Amtrak bonds, or
       ``(III) for the purposes of subclauses (I) and (II).

       ``(C) State contribution requirement for certain qualified 
     projects.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, with respect to any qualified project on the high-speed 
     rail corridors designated under section 104(d)(2) of title 
     23, United States Code, the State contribution requirement of 
     this paragraph may include the value of land to be 
     contributed by a State for right-of-way and may be derived by 
     a State directly or indirectly from Federal funds, including 
     transfers from the Highway Trust Fund under section 9503.
       ``(ii) Special rules regarding use of bond proceeds.--
     Proceeds from the issuance of bonds for such a qualified 
     project may be used to the extent necessary for the purpose 
     of subparagraph (B)(i), and any such proceeds deposited into 
     the trust account required under subsection (j) shall be 
     deemed expenditures for the qualified project under 
     subsection (h).
       ``(D) State matching contributions may not include federal 
     funds.--Except as provided in subparagraph (C), for purposes 
     of this paragraph, State matching contributions shall not be 
     derived, directly or indirectly, from Federal funds, 
     including any transfers from the Highway Trust Fund under 
     section 9503.
       ``(E) No state contribution requirement for certain 
     qualified projects.--With respect to any qualified project 
     described in subsection (e)(4), the State contribution 
     requirement of this paragraph is zero.
       ``(4) Qualified project.--
       ``(A) In general.--The term `qualified project' means--
       ``(i) the acquisition, financing, or refinancing of 
     equipment, rolling stock, and other capital improvements, 
     including station rehabilitation or construction, track or 
     signal improvements, or the elimination of grade crossings, 
     for the northeast rail corridor between Washington, D.C. and 
     Boston, Massachusetts,
       ``(ii) the acquisition, financing, or refinancing of 
     equipment, rolling stock, and other capital improvements, 
     including station rehabilitation or construction, track or 
     signal improvements, or the elimination of grade crossings, 
     for the improvement of train speeds or safety (or both) on 
     the high-speed rail corridors designated under section 
     104(d)(2) of title 23, United States Code, and
       ``(iii) the acquisition, financing, or refinancing of 
     equipment, rolling stock, and other capital improvements, 
     including station rehabilitation or construction, track or 
     signal improvements, or the elimination of grade crossings, 
     for other intercity passenger rail corridors for the purpose 
     of increasing railroad speeds to at least 90 miles per hour.
       ``(B) Refinancing rules.--For purposes of subparagraph (A), 
     a refinancing shall constitute a qualified project only if 
     the indebtedness being refinanced (including any obligation 
     directly or indirectly refinanced by such indebtedness) was 
     originally incurred by the National Railroad Passenger 
     Corporation--
       ``(i) after the date of the enactment of this section,
       ``(ii) for a term of not more than 3 years,
       ``(iii) to finance or acquire capital improvements 
     described in subparagraph (A), and
       ``(iv) in anticipation of being refinanced with proceeds of 
     a qualified Amtrak bond.
       ``(C) Prior issuance costs.--For purposes of subparagraph 
     (A), a qualified project may include the costs a State incurs 
     prior to the issuance of the bonds to fulfill any statutory 
     requirements directly necessary for implementation of the 
     project.
       ``(e) Limitations on Amount of Bonds Designated.--
       ``(1) In general.--There is a qualified Amtrak bond 
     limitation for each fiscal year. Such limitation is--
       ``(A) $1,200,000,000 for each of the fiscal years 2002 
     through 2011, and
       ``(B) except as provided in paragraph (5), zero after 
     fiscal year 2011.

[[Page S1070]]

       ``(2) Bonds for rail corridors.--Not more than 
     $3,000,000,000 of the limitation under paragraph (1) may be 
     designated for any 1 rail corridor described in clause (i) or 
     (ii) of subsection (d)(4)(A).
       ``(3) Bonds for other projects.--Not more than $100,000,000 
     of the limitation under paragraph (1) for any fiscal year may 
     be allocated to all qualified projects described in 
     subsection (d)(4)(A)(iii).
       ``(4) Bonds for alaska railroad.--The Secretary of 
     Transportation may allocate to the Alaska Railroad a portion 
     of the qualified Amtrak limitation for any fiscal year in 
     order to allow the Alaska Railroad to issue bonds which meet 
     the requirements of this section for use in financing any 
     project described in subsection (d)(4)(A)(iii) (determined 
     without regard to the requirement of increasing railroad 
     speeds). For purposes of this section, the Alaska Railroad 
     shall be treated in the same manner as the National Railroad 
     Passenger Corporation.
       ``(5) Carryover of unused limitation.--If for any fiscal 
     year--
       ``(A) the limitation amount under paragraph (1), exceeds
       ``(B) the amount of bonds issued during such year which are 
     designated under subsection (d)(1)(C)(i),

     the limitation amount under paragraph (1) for the following 
     fiscal year (through fiscal year 2015) shall be increased by 
     the amount of such excess.
       ``(6) Additional selection criteria.--In selecting 
     qualified projects for allocation of the qualified Amtrak 
     bond limitation under this subsection, the Secretary of 
     Transportation--
       ``(A) may give preference to any project with a State 
     matching contribution rate exceeding 20 percent, and
       ``(B) shall consider regional balance in infrastructure 
     investment and the national interest in ensuring the 
     development of a nation-wide high-speed rail transportation 
     network.
       ``(f) Other Definitions.--For purposes of this subpart--
       ``(1) Bond.--The term `bond' includes any obligation.
       ``(2) Credit allowance date.--The term `credit allowance 
     date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.

     Such term includes the last day on which the bond is 
     outstanding.
       ``(3) State.--The term `State' means the several States and 
     the District of Columbia, and any subdivision thereof.
       ``(4) Program.--The term `program' means 1 or more projects 
     implemented over 1 or more years to support the development 
     of intercity passenger rail corridors.
       ``(g) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)) and the amount so included shall be treated as interest 
     income.
       ``(h) Special Rules Relating to Arbitrage.--
       ``(1) In general.--Subject to paragraph (2), an issue shall 
     be treated as meeting the requirements of this subsection if 
     as of the date of issuance, the issuer reasonably expects--
       ``(A) to spend at least 95 percent of the proceeds of the 
     issue for 1 or more qualified projects within the 5-year 
     period beginning on such date, and
       ``(B) to proceed with due diligence to complete such 
     projects and to spend the proceeds of the issue.
       ``(2) Rules regarding continuing compliance after 5-year 
     determination.--If at least 95 percent of the proceeds of the 
     issue is not expended for 1 or more qualified projects within 
     the 5-year period beginning on the date of issuance, an issue 
     shall be treated as continuing to meet the requirements of 
     this subsection if either--
       ``(A) the issuer uses all unspent proceeds of the issue to 
     redeem bonds of the issue within 90 days after the end of 
     such 5-year period, or
       ``(B) the following requirements are met:
       ``(i) The issuer spends at least 75 percent of the proceeds 
     of the issue for 1 or more qualified projects within the 5-
     year period beginning on the date of issuance.
       ``(ii) The issuer has proceeded with due diligence to spend 
     the proceeds of the issue within such 5-year period and 
     continues to proceed with due diligence to spend such 
     proceeds.
       ``(iii) The issuer pays to the Federal Government any 
     earnings on the proceeds of the issue that accrue after the 
     end of such 5-year period.
       ``(iv) Either--

       ``(I) at least 95 percent of the proceeds of the issue is 
     expended for 1 or more qualified projects within the 6-year 
     period beginning on the date of issuance, or
       ``(II) the issuer uses all unspent proceeds of the issue to 
     redeem bonds of the issue within 90 days after the end of 
     such 6-year period.

       ``(i) Recapture of Portion of Credit Where Cessation of 
     Compliance.--
       ``(1) In general.--If any bond which when issued purported 
     to be a qualified Amtrak bond ceases to be a qualified Amtrak 
     bond, the issuer shall pay to the United States (at the time 
     required by the Secretary) an amount equal to the sum of--
       ``(A) the aggregate of the credits allowable under this 
     section with respect to such bond (determined without regard 
     to subsection (c)) for taxable years ending during the 
     calendar year in which such cessation occurs and the 2 
     preceding calendar years, and
       ``(B) interest at the underpayment rate under section 6621 
     on the amount determined under subparagraph (A) for each 
     calendar year for the period beginning on the first day of 
     such calendar year.
       ``(2) Failure to pay.--If the issuer fails to timely pay 
     the amount required by paragraph (1) with respect to such 
     bond, the tax imposed by this chapter on each holder of any 
     such bond which is part of such issue shall be increased (for 
     the taxable year of the holder in which such cessation 
     occurs) by the aggregate decrease in the credits allowed 
     under this section to such holder for taxable years beginning 
     in such 3 calendar years which would have resulted solely 
     from denying any credit under this section with respect to 
     such issue for such taxable years.
       ``(3) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (2) only with respect to credits 
     allowed by reason of this section which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and carrybacks under section 
     39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     paragraph (2) shall not be treated as a tax imposed by this 
     chapter for purposes of determining--
       ``(i) the amount of any credit allowable under this part, 
     or
       ``(ii) the amount of the tax imposed by section 55.
       ``(j) Use of Trust Account.--
       ``(1) In general.--The amount of any matching contribution 
     with respect to a qualified project described in subsection 
     (d)(3)(B)(i) or (d)(3)(B)(ii)(II) and the temporary period 
     investment earnings on proceeds of the issue with respect to 
     such project, and any earnings thereon, shall be held in a 
     trust account by a trustee independent of the National 
     Railroad Passenger Corporation to be used to the extent 
     necessary to redeem bonds which are part of such issue.
       ``(2) Use of remaining funds in trust account.--Upon the 
     repayment of the principal of all qualified Amtrak bonds 
     issued under this section, any remaining funds in the trust 
     account described in paragraph (1) shall be available--
       ``(A) to the trustee described in paragraph (1), to meet 
     any remaining obligations under any guaranteed investment 
     contract used to secure earnings sufficient to repay the 
     principal of such bonds, and
       ``(B) to the issuer, for any qualified project.
       ``(k) Other Special Rules.--
       ``(1) Partnership; s corporation; and other pass-thru 
     entities.--Under regulations prescribed by the Secretary, in 
     the case of a partnership, trust, S corporation, or other 
     pass-thru entity, rules similar to the rules of section 41(g) 
     shall apply with respect to the credit allowable under 
     subsection (a).
       ``(2) Bonds held by regulated investment companies.--If any 
     qualified Amtrak bond is held by a regulated investment 
     company, the credit determined under subsection (a) shall be 
     allowed to shareholders of such company under procedures 
     prescribed by the Secretary.
       ``(3) Credits may be stripped.--Under regulations 
     prescribed by the Secretary--
       ``(A) In general.--There may be a separation (including at 
     issuance) of the ownership of a qualified Amtrak bond and the 
     entitlement to the credit under this section with respect to 
     such bond. In case of any such separation, the credit under 
     this section shall be allowed to the person who on the credit 
     allowance date holds the instrument evidencing the 
     entitlement to the credit and not to the holder of the bond.
       ``(B) Certain rules to apply.--In the case of a separation 
     described in subparagraph (A), the rules of section 1286 
     shall apply to the qualified Amtrak bond as if it were a 
     stripped bond and to the credit under this section as if it 
     were a stripped coupon.
       ``(4) Treatment for estimated tax purposes.--Solely for 
     purposes of sections 6654 and 6655, the credit allowed by 
     this section to a taxpayer by reason of holding a qualified 
     Amtrak bond on a credit allowance date shall be treated as if 
     it were a payment of estimated tax made by the taxpayer on 
     such date.
       ``(5) Credit may be transferred.--Nothing in any law or 
     rule of law shall be construed to limit the transferability 
     of the credit allowed by this section through sale and 
     repurchase agreements.
       ``(6) Reporting.--Issuers of qualified Amtrak bonds shall 
     submit reports similar to the reports required under section 
     149(e).''.
       (b) Reporting.--Subsection (d) of section 6049 (relating to 
     returns regarding payments of interest), as amended by 
     section 505(d), is amended by adding at the end the following 
     new paragraph:
       ``(9) Reporting of credit on qualified amtrak bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54(g) and such amounts shall be treated as paid on 
     the credit allowance date (as defined in section 54(f)(2)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A) of this paragraph, subsection 
     (b)(4) of this section shall be applied without regard to 
     subparagraphs (A), (H), (I), (J), (K), and (L)(i).

[[Page S1071]]

       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''.
       (c) Clerical Amendments.--
       (1) The table of subparts for part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     item:

``Subpart H. Nonrefundable Credit for Holders of Qualified Amtrak 
              Bonds.''.

       (2) Section 6401(b)(1) is amended by striking ``and G'' and 
     inserting ``G, and H''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after September 30, 2001.
       (e) Multi-Year Capital Spending Plan and Oversight.--
       (1) Amtrak capital spending plan.--
       (A) In general.--The National Railroad Passenger 
     Corporation shall annually submit to the President and 
     Congress a multi-year capital spending plan, as approved by 
     the Board of Directors of the Corporation.
       (B) Contents of plan.--Such plan shall identify the capital 
     investment needs of the Corporation over a period of not less 
     than 5 years and the funding sources available to finance 
     such needs and shall prioritize such needs according to 
     corporate goals and strategies.
       (C) Initial submission date.--The first plan shall be 
     submitted before the issuance of any qualified Amtrak bonds 
     by the National Railroad Passenger Corporation pursuant to 
     section 54 of the Internal Revenue Code of 1986 (as added by 
     this section).
       (2) Oversight of amtrak trust account and qualified 
     projects.--
       (A) Trust account oversight.--The Secretary of the Treasury 
     shall annually report to Congress as to whether the amount 
     deposited in the trust account established by the National 
     Railroad Passenger Corporation under section 54(j) of such 
     Code (as so added) is sufficient to fully repay at maturity 
     the principal of any outstanding qualified Amtrak bonds 
     issued pursuant to section 54 of such Code (as so added), 
     together with amounts expected to be deposited into such 
     account, as certified by the National Railroad Passenger 
     Corporation in accordance with procedures prescribed by the 
     Secretary of the Treasury.
       (B) Project oversight.--The National Railroad Passenger 
     Corporation shall contract for an annual independent 
     assessment of the costs and benefits of the qualified 
     projects financed by such qualified Amtrak bonds, including 
     an assessment of the investment evaluation process of the 
     Corporation. The annual assessment shall be included in the 
     plan submitted under paragraph (1).
       (C) Oversight funding.--Not more than 0.5 percent of the 
     amounts made available through the issuance of qualified 
     Amtrak bonds by the National Railroad Passenger Corporation 
     pursuant to section 54 of such Code (as so added) may be used 
     by the National Railroad Passenger Corporation for 
     assessments described in subparagraph (B).
       (f) Protection of Highway Trust Fund.--
       (1) Certification by the secretary of the treasury.--The 
     issuance of any qualified Amtrak bonds by the National 
     Railroad Passenger Corporation or the Alaska Railroad 
     pursuant to section 54 of the Internal Revenue Code of 1986 
     (as added by this section) is conditioned on certification by 
     the Secretary of the Treasury, after consultation with the 
     Secretary of Transportation, within 30 days of a request by 
     the issuer, that with respect to funds of the Highway Trust 
     Fund described under paragraph (2), the issuer either--
       (A) has not received such funds during fiscal years 
     commencing with fiscal year 2002 and ending before the fiscal 
     year the bonds are issued, or
       (B) has repaid to the Highway Trust Fund any such funds 
     which were received during such fiscal years.
       (2) Applicability.--This subsection shall apply to funds 
     received directly, or indirectly from a State or local 
     transit authority, from the Highway Trust Fund established 
     under section 9503 of the Internal Revenue Code of 1986, 
     except for funds authorized to be expended under section 
     9503(c) of such Code, as in effect on the date of the 
     enactment of this Act.
       (3) No retroactive effect.--Nothing in this subsection 
     shall adversely affect the entitlement of the holders of 
     qualified Amtrak bonds to the tax credit allowed pursuant to 
     section 54 of the Internal Revenue Code of 1986 (as so added) 
     or to repayment of principal upon maturity.
       (g) Exemption From Taxes for High-Speed Rail Lines and 
     Improvements.--Notwithstanding any other provision of law, no 
     rail carrier (as defined in section 24102 of title 49, United 
     States Code) shall be required to pay any tax or fee imposed 
     by the Internal Revenue Code of 1986 or by any State or local 
     government with respect to the acquisition, improvement, or 
     ownership of--
       (1) personal or real property funded by the proceeds of 
     qualified Amtrak bonds (as defined in section 54(d) of the 
     Internal Revenue Code of 1986 (as added by this section) or 
     any State or local bond (as defined in section 103(c)(1) of 
     such Code), or revenues or income from such acquisition, 
     improvement, or ownership, or
       (2) rail lines in high-speed rail corridors designated 
     under section 104(d)(2) of title 23, United States Code, that 
     are leased by the National Railroad Passenger Corporation.
       (h) Issuance of Regulations.--The Secretary of the Treasury 
     shall issue regulations required under section 54 of the 
     Internal Revenue Code (as added by this section) not later 
     than 90 days after the date of the enactment of this Act.
       (i) Issuance of Tax-Exempt Bonds for Rail Passenger 
     Projects.--
       (1) Funding state match requirement.--Section 142(a) 
     (relating to exempt facility bond) is amended by striking 
     ``or'' at the end of paragraph (11), by striking the period 
     at the end of paragraph (12) and inserting ``, or'', and by 
     adding at the end the following new paragraph:
       ``(13) the State contribution requirement for qualified 
     projects under section 54.''.
       (2) Repeal of governmental ownership requirement for mass 
     commuting facilities.--Section 142(b)(1)(A) (relating to 
     certain facilities must be governmentally owned) is amended 
     by striking ``(3),''.
       (3) Definition of high-speed intercity rail facilities.--
     Section 142(i)(1) is amended by striking ``in excess of 150 
     miles per hour'' and inserting ``prescribed in section 
     104(d)(2) of title 23, United States Code,''.
       (4) Exemption from volume cap.--Subsection (g) of section 
     146 (relating to exception for certain bonds) is amended by 
     striking paragraph (4) and the last sentence of such 
     subsection and inserting the following new paragraph:
       ``(4) any exempt facility bond issued as part of an issue 
     described in paragraph (3), (11), or (13) of section 142(a) 
     (relating to mass commuting facilities, high-speed intercity 
     rail facilities, and State contribution requirements under 
     section 54).''.
       (5) Effective date.--The amendments made by this subsection 
     shall apply to bonds issued after the date of enactment of 
     this Act.

  Mr. KERRY. Mr. President, I am proud to join our esteemed majority 
and minority leaders in sponsoring the High Speed Rail Investment Act 
of 2001. I am proud that our two leaders have been willing and able to 
work in a bipartisan manner to fulfill a promise that they made last 
month to re-introduce this critical legislation. I thank them, and I 
thank Senator Biden and Senator Hutchison for their strong leadership 
as well. Their commitment to this bill cannot be overstated.
  This legislation would allow Amtrak to sell $12 billion in bonds over 
the next ten years and permit the federal government to provide tax 
credits to bondholders in lieu of interest payments. Amtrak would use 
this money to upgrade existing rail lines to high-speed rail 
capability. This bill has supporters from both parties and all regions 
of the country.
  Mr. President, high speed rail is not a partisan issue. It is not a 
regional issue. It is not an urban issue. The High-Speed Rail 
Investment Act has the support of the National Governors Association, 
the U.S. Conference of Mayors and the National Conference of State 
Legislatures. Thirty newspapers, from the New York Times and Providence 
Journal, to the Houston Chronicle and Seattle Post Intelligencer, have 
called for the enactment of this legislation.
  It is in our national interest to construct a national infrastructure 
that is truly intermodal. Rail transportation helps alleviate the 
stress placed on our environment by air and highway transportation. It 
is a sad fact that America's rail transportation, and its lack of a 
national high-speed rail system, lags well behind rail transportation 
in most other nations--we spend less, per capita, on rail 
transportation than Estonia and Greece.
  Mr. President, I know I made many of these same points on the floor 
of the Senate in December when we discussed a similar version of the 
High Speed Rail Investment Act. However, I believe that this 
legislation is critical to our nation's transportation infrastructure 
needs, and these facts bear repeating:
  The federal government has invested $380 billion in our highways and 
$160 billion in airports since Amtrak was created. By contrast, the 
federal government has spent only about $30 billion on Amtrak. We have 
spent just four percent of our transportation budget on rail 
transportation in the last 30 years. The Congress has mandated that 
Amtrak soon achieve operational self-sufficiency. That does not, nor 
should it, preclude further capital improvement grants. This is often 
misunderstood and misinterpreted. Amtrak has reduced its operating 
losses over the last two years, and remains capable of meeting its 
goal. However, it will continue to need the federal government to 
support its track upgrades, rolling stock improvements and other large-
scale upgrades so that it may

[[Page S1072]]

maintain its trademark quality service.
  There is a compelling need to invest in high-speed rail. Our highways 
and skyways are overburdened. Intercity passenger miles traveled have 
increased 80 percent since 1988, but only 5.5 percent of that has come 
from increased rail travel. Meanwhile, our congested skies have become 
even more crowded. The result, predictably, is that air travel delays 
are up 58 percent since 1995. Things have gotten so bad in Chicago that 
O'Hare airport maintains 1,500 cots for snow-bound travelers. This 
summer, the airport had to order additional cots to accommodate 
passengers left stranded by myriad delays and cancellations.
  Amtrak ridership is on the rise. More than 22.5 million passengers 
rode Amtrak in Fiscal Year 2000, a million more than the previous year. 
Nearly six million riders took Amtrak in the first quarter of this 
fiscal year, the best first quarter in the company's 30-year history. 
Ridership for the quarter was up 8.5 percent, while ticket revenue 
climbed almost 14 percent over the first quarter of FY00. We should 
welcome that increased use and support it by giving Amtrak the 
resources it needs to provide high-quality, dependable service.
  The High-Speed Rail Investment Act is critical to the future of 
Amtrak. For about the cost of the new Denver International Airport, we 
can improve intercity transportation in 29 states. For less than double 
the cost of constructing the new Woodrow Wilson bridge improving 
transportation in two states, we can create eight high-speed rail 
corridors in 29 states.
  High-speed rail is a viable transportation alternative. There is a 
large and growing demand for rail service in the Northeast Corridor. 
Amtrak captures almost 70 percent of the business rail and air travel 
market between Washington and New York and 30 percent of the market 
share between New York and Boston. True high-speed rail will 
undoubtedly increase that market share. These new trains, like the 
Acela Express that debuted in the Northeast this year, currently run at 
an average of only 82 miles per hour, but with track improvements, will 
run at 130 miles per hour.
  As a nation, we have recognized the importance of having the very 
best communication system, and ours is the envy of the world. That 
investment is one of reasons our economy is the strongest in the world. 
And we should do the same for our transportation system. It should be 
equally modern and must be fully intermodal. Rail transportation is a 
part of that network and I hope that we can pass this critical, cost-
efficient legislation this year.
                                 ______