[Congressional Record Volume 149, Number 174 (Tuesday, November 25, 2003)]
[Senate]
[Pages S15986-S16004]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HOLLINGS (for himself, Ms. Collins, Mr. Carper, Mr. 
        Specter, Mr. Jeffords, Mr. Lautenberg, and Mr. Biden):
  S. 1961. A bill to provide for the revitalization and enhancement of 
the American passenger and freight rail transportation system; to the 
Committee on Commerce, Science, and Transportation.
  Mr. HOLLINGS. Mr. President, I rise today to introduce the American 
Railroad Revitalization, Investment, and Enhancement Act of the 21st 
Century, better known as ``ARRIVE-21.'' This legislation is of vital 
importance to rail transportation because it provides steady, 
dependable funding for our beleaguered national passenger rail system. 
It also provides funding for infrastructure investment in the railroad 
industry as a whole, including freight railroads. And it establishes a 
financing mechanism to ensure that our rail system benefits from a 
steady stream of funding, just like our airline industry, our transit 
systems, and our national highway system.
  For the past 30 years, Amtrak has provided us with a valuable public 
service, even though it was forced year after year to come beg for 
money from the Congress. And year after year, the Congress gave it just 
enough money to barely survive another 12 months. Sometimes Congress 
didn't appropriate even enough money to last 12 months, and Amtrak had 
to come back and beg for a supplemental appropriation just to remain in 
business until the end of the fiscal year. Never mind having enough 
money to grow the railroad; never mind having enough money to run a 
first-class passenger railroad. And never mind having enough money to 
keep the infrastructure in a state of good repair. All Amtrak has been 
able to do for 30 years is stay alive. It's time to give Amtrak the 
tools and funding it needs to do the job we keep asking it to do.
  Last year I introduced the National Defense Rail Act of 2002 which 
was approved by the Senate Commerce Committee by a vote of 20-3. We 
have shown that bipartisan support exists for authorizing a strong rail 
program, however the main obstacle we have faced has been securing 
funding to live up to the authorized amounts. This legislation attempts 
to address the lack of a guaranteed revenue stream for passenger rail 
programs and establishes a framework to address freight needs where 
there is a clear public benefit.
  It's a foregone conclusion that transportation development requires 
money. We somehow figured this out a long time ago with regard to every 
other mode of transportation. We federally funded the development of 
the interstate highway system; we subsidized airport construction; we 
dredged harbors and channels; and we built locks and dams. And the 
result of all that investment is that our citizens and our goods can 
move across the country, from big cities and from small towns, 
efficiently and relatively cheaply. We have today a national 
transportation system with many impressive components.
  You might even say we have been a little too successful with these 
modes of transportation because many of them are now strained to 
capacity in many areas of the country. This situation presents not only 
an economic dilemma, but also a genuine security risk. The atrocious 
events of September 11th, and the aftermath that followed, exposed the 
vulnerability of our society and our economy when transportation 
choices become limited and our mobility is diminished. Effective 
transportation security means that, as a Nation, we nurture all 
transportation options and we do not allow ourselves to be overly 
dependent on only one or two particular modes. In effect, that's what 
we have done by favoring highways and aviation, where we have directed 
the flow of billions of dollars. Ironically, rail passenger service is 
more environmentally-friendly, more fuel-efficient, and more capable of 
mitigating the impacts of population congestion to help foster regional 
economic growth than any of the other modes. But in the process of 
shoring up those other transportation modes for all those years, we 
lost our focus on passenger rail and we sadly neglected investing in 
its development.
  For passenger rail to be successful, its infrastructure must be 
developed through the kind of bold Federal leadership we exercised for 
our other modes of transportation. That's why my colleagues and I are 
pleased to introduce this landmark piece of legislation designed to 
change the way we think

[[Page S15987]]

about financing passenger rail service and designed to grow our 
passenger rail system into the world-class system it should be. The 
bill creates Federal/State and public/private partnerships to promote 
infrastructure development for both freight and passenger rail. It 
provides $20-$25 billion in grants over six years to States and State 
compacts for rail capital projects to provide for a safe, secure, and 
efficient rail transportation system. It enhances Federal and State 
rail transportation policy, and it promotes intermodal transportation 
investment.
  ARRIVE-21 creates a non-profit Rail Infrastructure Finance 
Corporation (RIFCO) to issue $30 billion in tax-credit bonds over six 
years for the purpose of providing grants to States for capital 
investment in freight and passenger rail infrastructure and facilities. 
RIFCO will establish a trust account made up of bond proceeds and 
contributions from States that receive RIFCO grants. Bond proceeds and 
State contributions in excess of the amount required to maintain the 
trust account will then be available for grants to the States through a 
competitive process.
  Although my first choice would be to fully fund the needs authorized 
in this legislation by straight federal spending, it has become clear 
that over the last thirty years that there is no pot of gold at the end 
of the rainbow when it comes to Amtrak. There is not enough money in 
the scant pot available for discretionary spending on transportation 
programs. We have established dedicated trust funds for the airlines 
with their ticket taxes, and we have the trust fund for the highways 
and transit programs which are funded through the gas tax, but when it 
comes to passenger railroads, there is no such revenue stream. The 
establishment of RIFCO was not my first choice to finance the publicly 
needed improvements of the railroad system, but it is an option for the 
Congress to debate and consider as we attempt to address what we need 
the rail system to do for this country.
  RIFCO is set up to assist the States fund both passenger and freight 
projects that benefit the public on a State, regional or national 
basis. State or State compacts may apply for RIFCO funds for 
discretionary and formula funds for capital projects in four 
categories: State Intercity Passenger Rail Corridor Development, 
including equipment, stations, and facilities. State Freight Rail 
Infrastructure Development Projects, including capital projects that 
primarily benefit freight rail transportation. States may use a 
percentage of these formula funds to manage State rail programs. 
National System Improvement Projects, including projects that 
significantly benefit the national passenger rail system, Amtrak-
sponsored projects and Northeast Corridor projects. High Priority 
Projects, including projects with major public policy benefits to the 
national rail system or significantly expand rail intermodal capacity 
in connection with maritime, aviation, and highway facilities.
  Eligible capital projects would include new rail line development, 
planning and environmental reviews, track upgrades and restoration, 
highway-rail grade crossing improvements and eliminations, relocation 
of track, infrastructure and facilities, construction of intermodal 
facilities and passenger rail stations, tunnel and bridge repairs, 
communication and signaling improvements, environmental impact 
mitigation, acquisition of passenger rail equipment, and security 
improvements. Projects to receive discretionary funding would be 
selected by RIFCO according to selection criteria contained in the 
bill. The projects would require a 20 percent non-Federal contribution 
paid to RIFCO for bond repayment.
  ARRIVE-21 also directs the Federal Railroad Administration to develop 
a National Rail Plan and to work with States in developing State rail 
plans, so that we have a comprehensive and coordinated long-range plan 
for rail development for the whole country. The bill also directs the 
Office of Intermodalism in the Department of Transportation to create a 
``50-Year Blueprint'' for the development of a national intermodal 
transportation system and provide a vision of emerging trends and 
opportunities for the future of passenger and freight rail 
transportation.
  Before I close, I would be remiss if I did not recognize the work of 
Nancy Lummens Lewis, a detailee from the Federal Railroad 
Administration, who has worked on the Commerce Committee since January. 
We have appreciated her professionalism, competency, and her 
willingness to work and share her time with us. I thank Nancy for her 
time spent on this bill, as well as her efforts on the reauthorization 
of the Transportation Equity Act of the 21st Century, The Federal 
Railroad Safety Improvement Act, and The Surface Transportation Board 
Act of 2003. We wish her well in her future endeavors.
  ARRIVE-21 presents a smart and efficient solution to a very important 
transportation dilemma. I am joined by several of my colleagues, 
including Senators Collins, Specter, Carper and Jeffords, in 
introducing this bipartisan legislation. As we have passed legislation 
this week providing approximately $15 billion annually for aviation for 
the next 4 years, and plan to take up a highway bill next year which 
will spend $40 to $60 billion annually on highways and transit over six 
years, we must not leave rail out. It is critical that the Senate take 
this bill up, and pass it, to ensure that our railroad transportation 
system, especially our passenger rail system, can grow and develop to 
meet our current and future transportation needs.
  Attached is an amendment that the sponsors of ARRIVE-21 intend to 
offer during floor consideration of the bill. I ask unanimous consent 
that the amendment and the text of the bill be printed in the Record.
  There being no objection, the amendment and the bill was ordered to 
be printed in the Record, as follows:


                               amendment

            TITLE VIII--RAIL INFRASTRUCTURE TAX CREDIT BONDS

     SEC. 801. CREDIT TO HOLDERS OF QUALIFIED RAIL INFRASTRUCTURE 
                   BONDS.

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

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

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

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

       ``(a) Allowance of Credit.--In the case of a taxpayer who 
     holds a qualified rail infrastructure bond on a credit 
     allowance date of such bond which occurs during the taxable 
     year, there shall be allowed as a credit against the tax 
     imposed by this chapter for such taxable year an amount equal 
     to the sum of the credits determined under subsection (b) 
     with respect to credit allowance dates during such year on 
     which the taxpayer holds such bond.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a qualified rail infrastructure bond is 25 percent 
     of the annual credit determined with respect to such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any qualified rail infrastructure bond is the 
     product of--
       ``(A) the applicable credit rate, multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Applicable credit rate.--For purposes of paragraph 
     (2), the applicable credit rate with respect to an issue is 
     the rate, equal to an average market yield (as of the day 
     before the date of sale of the issue) on outstanding long-
     term corporate debt obligations (determined under regulations 
     prescribed by the Secretary).
       ``(4) Credit allowance date.--For purposes of this section, 
     the term `credit allowance date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.

     Such term includes the last day on which the bond is 
     outstanding.
       ``(5) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed.
       ``(c) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for any taxable year shall not 
     exceed the excess of--
       ``(1) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(2) the sum of the credits allowable under this part 
     (other than this subpart and subpart C).

[[Page S15988]]

       ``(d) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (e)) and the amount so included shall be treated as interest 
     income.
       ``(c) Qualified Rail, Infrastructure Bond.--For purposes of 
     this part, the term `qualified rail infrastructure bond' 
     means any bond issued as part of an issue if--
       ``(1) the bond is issued by the Rail Infrastructure Finance 
     Corporation and is in registered form,
       ``(2) the term of each bond which is part of such issue 
     does not exceed 20 years,
       ``(3) the payment of principal with respect to such bond is 
     the obligation of the Rail Infrastructure Finance Corporation 
     and not an obligation of the United States,
       ``(4) all proceeds from the sale of the issue are used for 
     the purposes set forth in section 507(c)(5) of the Arrive 21 
     Act, and
       ``(5) 95 percent or more of the net spendable proceeds from 
     the sale of such issue are to be used for expenditures 
     incurred after the date of enactment of this section for any 
     qualified project described in section 601, 602, or 603 of 
     the Arrive 21 Act subject to the limitations established by 
     that Act.
       ``(f) Special Rules Relating to Net Spendable Proceeds.--
       ``(1) In general.--Subject to paragraph (2), an issue shall 
     be treated as meeting the requirements of this subsection if, 
     as of 6 years after the date of issuance, the issuer 
     reasonably expects--
       ``(A) to award grants under sections 501, 502, and 503 of 
     the Arrive 21 Act in a total amount that is at least 95 
     percent of the net spendable proceeds of the issue for 1 or 
     more qualified projects within the 6-year period beginning on 
     such date,
       ``(B) to incur a binding commitment with a third party--
       ``(i) to spend at least 10 percent of the net spendable 
     proceeds of the issue, or to commence construction, with 
     respect to such projects within the 12-month period beginning 
     on such date, and
       ``(ii) to proceed with due diligence to complete such 
     projects, and
       ``(C) to expend the total amount of the net spendable 
     proceeds of the issue.
       ``(2) Rules regarding continuing compliance after 6-year 
     determination.--If at least 95 percent of the net spendable 
     proceeds of the issue is not awarded as grants to be expended 
     for 1 or more qualified projects within the 6-year period 
     beginning 6 years after the date of issuance, but the 
     requirements of paragraph (1) are otherwise met, an issue 
     shall be treated as continuing to meet the requirements of 
     paragraph (1) if either the requirement under subparagraph 
     (A) or the requirements under subparagraph (B) are met, as 
     follows:
       ``(A) The issuer uses all unspent proceeds from the sale of 
     the issue to redeem bonds of the issue within 90 days after 
     the end of such 6-year period and disburses any remaining net 
     spendable proceeds to the Secretary of Treasury within 30 
     days after the end of such 6-year period.
       ``(B) The issuer--
       ``(i) awards in grants under sections 501, 502, and 503 of 
     the Arrive 21 Act at least 75 percent of the net spendable 
     proceeds of the issue for 1 or more qualified projects within 
     the 6-year period beginning 6 years after the date of 
     issuance, and
       ``(ii) awards in grants under sections 501, 502, and 503 of 
     the Arrive 21 Act at least 95 percent of the net spendable 
     proceeds of the issue for 1 or more qualified projects within 
     the 7-year period beginning 6 years after the date of 
     issuance.
       ``(g) Recapture of Portion of Credit Where Cessation of 
     Compliance.--
       ``(1) In general.--If any bond which when issued purported 
     to be a qualified rail infrastructure bond ceases to be such 
     a qualified bond, the issuer shall pay to the United States 
     (at the time required by the Secretary) an amount equal to 
     the sum of--
       ``(A) the aggregate of the credits allowable under this 
     section with respect to such bond (determined without regard 
     to subsection (c)) for taxable years ending during the 
     calendar year in which such cessation occurs and the 2 
     preceding calendar years, and
       ``(B) interest at the underpayment rate under section 6621 
     on the amount determined under subparagraph (A) for each 
     calendar year for the period beginning on the first day of 
     such calendar year.
       ``(2) Nonculpable disqualifications.--If a qualified rail 
     infrastructure bond ceases to qualify as such a bond due to 
     action taken by the recipient of a grant made under section 
     601, 602, or 603 of the Arrive 21 Act, the issuer may seek 
     compensation under paragraph (1) of this subsection.
       ``(h) Rail Infrastructure Finance Trust.--
       ``(i) In general.--The following amounts shall be held in a 
     trust account by the Rail Infrastructure Finance Corporation:
       ``(A) An amount of the proceeds from the sale of all bonds 
     designated for purposes of this section that, when combined 
     with amounts described in subparagraphs (B), (C), and (D), is 
     sufficient--
       ``(i) to ensure the Corporation's ability to redeem all 
     bonds upon maturity; and
       ``(ii) to pay the administrative expenses of the 
     Corporation and the Rail Infrastructure Finance Trust.
       ``(B) The amount of any on-Federal contributions required 
     under section 604(b) of the Arrive 21 Act.
       ``(C) The temporary period investment earnings on proceeds 
     from the sale of such bonds.
       ``(D) Any earnings on any amounts described in subparagraph 
     (A), (B), or (C).
       ``(2) Use of funds.--Amounts in the trust account may be 
     used only for investment purposes to generate sufficient 
     funds to redeem qualified rail infrastructure bonds at 
     maturity and pay the administrative expenses of the 
     Corporation and the Trust.
       ``(3) Use of remaining funds on trust account.--If the 
     Corporation determines that the amount in the trusts account 
     exceeds the amount required to comply with paragraph (2), the 
     Corporation may transfer the excess to the Rail 
     Infrastructure Investment account to be available for 
     awarding grants as provided for in section 507(c)(5)(B) of 
     the Arrive 21 Act.
       ``(4) Reversion of remaining proceeds.--Upon retirement of 
     all bonds issued by the Corporation, any remaining proceeds 
     from the sale of such bonds shall be covered into the general 
     fund of the Treasury of the United States as miscellaneous 
     receipts.
       ``(i) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Bond.--The term `bond' includes any obligation.
       ``(2) Net spendable proceeds.--The terms `net spendable 
     proceeds' has the meaning give such term in section 507(c)(6) 
     of the Arrive 21 Act.
       ``(3) Qualified project.--The term `qualified project' 
     means any project that is eligible for grant funding under 
     section 601, 602, or 603 of the Arrive 21 Act.
       ``(4) Partnership; s corporation; and other pass-thru 
     entities.--Under regulations prescribed by the Secretary, in 
     the case of a partnership, trust, S corporation, or other 
     pass-thru entity, rules similar to the rules of section 41(g) 
     shall apply with respect to the credit allowable under 
     subsection (a).
       (5) Bonds held by regulated investment companies.--If any 
     qualified rail infrastructure bond is held by a regulated 
     investment company, the credit determined under subsection 
     (a) shall be allowed to shareholders of such company under 
     procedures prescribed by the Secretary.
       ``(6) Reporting.--Issuers of qualified rail infrastructure 
     bonds shall submit reports similar to the reports required 
     under section 149(e).''.
       (b) Amendments to Other Code Sections.--
       (1) Reporting.--Subsection (d) of section 6049 of the 
     Internal Revenue Code of 1986 (relating to returns regarding 
     payments of interest) is amended by adding at the end the 
     following new paragraph:
       ``(8) Reporting of credit on qualified rail infrastructure 
     bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54(d) and such amounts shall be treated as paid on 
     the credit allowance date (as defined in section 54(b)(4)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A), subsection (b)(4) shall be 
     applied without regard to subparagraphs (A), (H), (I), (J), 
     (K), and (L)(i) of such subsection.
       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''.
       (2) Treatment for estimated tax purposes.--
       (A) Individual.--Section 6654 of such Code (relating to 
     failure by individual to pay estimated income tax) is amended 
     by redesignating subsection (m) as subsection (n) and by 
     inserting after subsection (l) the following new subsection:
       ``(m) Special Rule for Holders of Qualified Rail 
     Infrastructure Bonds.--For purposes of this section, the 
     credit allowed by section 54 to a taxpayer by reason of 
     holding a qualified rail infrastructure bond on a credit 
     allowance date shall be treated as if it were a payment of 
     estimated tax made by the taxpayer on such date.''.
       (B) Corporate.--Section 6655 of such Code (relating to 
     failure by corporation to pay estimated income tax) is 
     amended by adding at the end of subsection (g) the following 
     new paragraph:
       ``(5) Special rule for holders of qualified rail 
     infrastructure bonds.--For purposes of this section, the 
     credit allowed by section 54 to a taxpayer by reason of 
     holding a qualified rail infrastructure bond on a credit 
     allowance date shall be treated as if it were a payment of 
     estimated tax made by the taxpayer on such date.''.
       (c) Clerical Amendments.--
       (1) The table of subparts for part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     item:

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

       (2) Section 6401(b)(1) is amended by striking ``and G'' and 
     inserting ``G, and H''.

     SEC. 802. ISSUANCE OF REGULATIONS.

       The Secretary of the Treasury shall issue regulations 
     required under section 54 of the Internal Revenue Code of 
     1986 not later than 90 days after the date of the enactment 
     of this Act.

     SEC. 803. EFFECTIVE DATE.

       The amendments made by section 701 shall apply to 
     obligations issued after the date of enactment of this Act.
       On page 3, at the end of the matter appearing before line 
     1, insert the following:

[[Page S15989]]

            Title VIII--Rail Infrastructure Tax Credit Bonds

Sec. 801. Credit to holders of qualified rail infrastructure bonds.
Sec. 802. Issuance of regulations.
Sec. 803. Effective date.

                                S. 1961

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``American 
     Railroad Revitalization, Investment, and Enhancement Act of 
     the 21st Century'' or the ``Arrive 21 Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Amendment of title 49, United States Code.
Sec. 3. Purposes.

                 TITLE I--RAIL TRANSPORTATION SECURITY

Sec. 101. Rail transportation security risk assessment.
Sec. 102. Certain personnel limitations not to apply.

                     TITLE II--FEDERAL RAIL POLICY

Sec. 201. Federal rail policy enhancement.
Sec. 202. Rail cooperative research program.
Sec. 203. State rail plans.
Sec. 204. Interstate railroad passenger high-speed transportation 
              policy.
Sec. 205. High-speed rail corridor planning.
Sec. 206. Designated high-speed rail corridors.
Sec. 207. Rehabilitation, improvement, and security financing.
Sec. 208. Repayment of loan to National Railroad Passenger Corporation.

                      TITLE III--INTERMODAL POLICY

Sec. 301. 50-year intermodal blueprint.
Sec. 302. Intermodal transportation policy.

                    TITLE IV--AMTRAK AUTHORIZATIONS

Sec. 401. National Railroad Passenger Transportation system defined.
Sec. 402. Restructuring of long-term debt and capital leases.
Sec. 403. General Amtrak authorizations.
Sec. 404. Excess railroad retirement.
Sec. 405. Authorizations for environmental compliance and station 
              improvements.
Sec. 406. Tunnel life safety.
Sec. 407. Authorization for capital and operating expenses.
Sec. 408. Establishment of grant process.
Sec. 409. State-supported routes.
Sec. 410. Re-establishment of Northeast Corridor Safety Committee.
Sec. 411. Amtrak board of directors.
Sec. 412. Establishment of financial accounting system for Amtrak 
              operations by independent auditor.
Sec. 413. Development of 5-year financial plan.
Sec. 414. Independent auditor to establish methodologies for Amtrak 
              route and service planning decisions.
Sec. 415. Metrics and standards.
Sec. 416. On-time performance.

            TITLE V--RAIL INFRASTRUCTURE FINANCE CORPORATION

Sec. 501. Establishment of corporation.
Sec. 502. Board of directors.
Sec. 503. Officers and employees.
Sec. 504. Nonprofit and nonpolitical nature of the corporation.
Sec. 505. Purpose and activities of corporation.
Sec. 506. Report to Congress.
Sec. 507. Administrative matters.
Sec. 508. Rail Infrastructure Finance Trust.

               TITLE VI--RAIL DEVELOPMENT GRANT PROGRAMS

Sec. 601. Intercity passenger rail development grant program.
Sec. 602. Freight rail infrastructure development grant program.
Sec. 603. High priority projects grant program.
Sec. 604. Grant program requirements and limitations.
Sec. 605. Standards and conditions.
Sec. 606. Grant program funding.

               TITLE VII--AUTHORIZATION OF APPROPRIATIONS

Sec. 701. Authorization of Appropriations.

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

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

     SEC. 3. PURPOSES.

       The purposes of this Act are--
       (1) to ensure more adequate financing of infrastructure 
     projects for the national rail transportation system 
     through--
       (A) the establishment of the nonprofit Rail Infrastructure 
     Finance Corporation to provide financial support for rail 
     infrastructure improvement projects by issuing qualified rail 
     transportation bonds; and
       (B) the provision of appropriate tax treatment of qualified 
     rail transportation bonds so issued;
       (2) to create a partnership between public and private 
     entities to promote freight and passenger rail infrastructure 
     development that benefits the public;
       (3) to provide resources to States and groups of States for 
     rail capital projects that result in a safe, secure, and 
     efficient rail transportation system;
       (4) to enhance Federal and State rail transportation policy 
     and planning;
       (5) to promote intermodal transportation investment, 
     planning, and coordination; and
       (6) to reauthorize the National Railroad Passenger 
     Corporation and reaffirm the Federal commitment to a national 
     system of intercity passenger 19l transportation.

                 TITLE I--RAIL TRANSPORTATION SECURITY

     SEC. 101. RAIL TRANSPORTATION SECURITY RISK ASSESSMENT.

       (a) In General.--
       (1) Assessment.--The Secretary of Homeland Security, in 
     consultation with the Secretary of Transportation, shall 
     assess the security risks associated with freight and 
     intercity passenger rail transportation and develop 
     prioritized recommendations for--
       (A) improving the security of rail infrastructure and 
     facilities, terminals, tunnels, rail bridges, rail switching 
     areas, and other areas identified by the Secretary as posing 
     significant rail-related risks to public safety and the 
     movement of interstate commerce, taking into account the 
     impact that any proposed security measure might have on the 
     provision of rail service;
       (B) deploying chemical and biological weapon detection 
     equipment;
       (C) training employees in terrorism response activities; 
     and
       (D) identifying the immediate and long-term economic impact 
     of measures that may be required to address those risks.
       (2) Existing private and public sector efforts.--The 
     assessment shall include a review of any actions already 
     taken or prospective actions necessary to address identified 
     security issues by both public and private entities.
       (b) Consultation; Use of Existing Resources.--In carrying 
     out the assessment required by subsection (a), the Secretary 
     shall consult with rail management, rail labor, facility 
     owners and operators, and public safety officials (including 
     officials responsible for responding to emergencies).
       (C) Report.--
       (1) Contents.--Within 180 days after the date of enactment 
     of this Act, the Secretary shall transmit to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure a report, without compromising national 
     security, containing the assessment and prioritized 
     recommendations required by subsection (a).
       (2) Format.--The Secretary may submit the report in both 
     classified and redacted formats if the Secretary determines 
     that such action is appropriate or necessary.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary $515,000,000 for fiscal 
     year 2004 to carry out this section, implement the measures 
     contained in the Secretary's prioritized recommendations, and 
     award grants for purposes identified in the assessment in 
     subsection (a), such sums to remain available until expended.

     SEC. 102. CERTAIN PERSONNEL LIMITATIONS NOT TO APPLY.

       Any statutory limitation on the number of employees in the 
     Transportation Security Administration of the Department of 
     Transportation, before or after its transfer to the 
     Department of Homeland Security, does not apply to the extent 
     that any such employees are responsible for implementing the 
     provisions of this Act.

                     TITLE II--FEDERAL RAIL POLICY

     SEC. 201. FEDERAL RAIL POLICY ENHANCEMENT

       Section 103 is amended to read as follows:

     ``Sec. 103. Federal Railroad Administration

       ``(a) In General.--The Federal Railroad Administration is 
     an administration in the Department of Transportation.
       ``(b) Administrator.--The head of the Administration is the 
     Administrator who is appointed by the President, by and with 
     the advice and consent of the Senate. The Administrator 
     reports directly to the Secretary of Transportation.
       ``(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.
       ``(d) Powers and Duties.--
       ``(1) In general.--The Administrator shall carry out--
       ``(A) the duties and powers related to rail road safety 
     vested in the Secretary by section 20134(c) and chapters 203 
     through 211 of this title, and chapter 213 of this title in 
     carrying out chapters 203 through 211;
       ``(B) the duties and powers related to railroad policy and 
     development under subsection (e); and
       ``(C) any additional duties and powers prescribed by the 
     Secretary.
       ``(2) Transfers.--A duty or power specified by paragraph 
     (1)(A) of this subsection may be transferred to another part 
     of the Department only when specifically provided by law or a 
     reorganization plan submitted under chapter 9 of title 5. A 
     decision of the Administrator in carrying out those duties 
     or powers and involving notice and hearing required by law 
     is administratively final.
       ``(3) Contracts, grants, leases, cooperative agreements, 
     and similar transactions.--Subject to the provisions of 
     subtitle I of title 40 and title III of the Federal

[[Page S15990]]

     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.), the Secretary of Transportation may make, enter 
     into, and perform such contracts, grants, leases, cooperative 
     agreements, and other similar transactions with Federal or 
     other public agencies (including State and local governments) 
     and private organizations and persons, and make such 
     payments, by way of advance or reimbursement, as the 
     Secretary may determine to be necessary or appropriate to 
     carry out functions of the Federal Railroad Administration. 
     The authority of the Secretary granted by this paragraph 
     shall be carried out by the Administrator.
       ``(e) Additional Duties of the Administrator.--The 
     Administrator shall--
       ``(1) provide assistance to States in developing State rail 
     plans prepared under section 22501 and review all State rail 
     plans submitted under such section 22501;
       ``(2) develop a long range national rail plan that is 
     consistent with approved State rail plans, the 50-year 
     Intermodal Blueprint developed under section 5503(e), 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 Arrive 21 Act;
       ``(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 under 
     section 205;
       ``(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.
       ``(f) 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 2005 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. 202. RAIL COOPERATIVE RESEARCH PROGRAM.

       (a) Requirement for Program.--
       (1) 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; and
       ``(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.
       ``(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.''.
       (2) Clerical Amendment.--The chapter analysis for chapter 
     249 is amended by adding at the end the following:

``24910. Rail cooperative research program''.

       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $5,000,000 for each of fiscal years 2004 through 2009 to 
     carry out the rail cooperative research program under section 
     24910 of title 49, United States Code.

     SEC. 203. 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. Authority
``22502. Purposes
``22503. Transparency; coordination; review
``22504. Content
``22505. Approval
``22506. High priority projects
``22507. Definitions

     ``Sec. 22501. Authority

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(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 approval; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22502. 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 preserve, 
     enhance, or expand 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. 22503. 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

[[Page S15991]]

     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.
       ``(c) Annual Reviews.--Each State shall transmit an annual 
     report on its plan to the Secretary of Transportation. The 
     report shall include, for the year preceding the year in 
     which submitted, the following matters:
       ``(1) A review of progress made, and actions taken, under 
     the plan during the year, including an update on the budget, 
     schedule, and financing for each project on the freight or 
     passenger rail capital project list compiled under section 
     22504(a) of this title.
       ``(2) Any modifications made in the plan after approval of 
     the plan by the Secretary or after the submission of the most 
     recent annual report on the plan to the Secretary, including 
     any modifications made to the priority freight or passenger 
     rail capital list required by section 22504(b).
       ``(d) Approval of Modified Plans.--Modifications of a State 
     rail plan that are determined substantive by the Secretary, 
     including any modification to a priority freight or passenger 
     rail capital project list required by section 22504(b), is 
     subject to approval (for the purposes of this chapter) by the 
     Secretary.

     ``Sec. 22504. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An evaluation of the existing overall rail 
     transportation system and rail services and facilities within 
     the State, a prioritization of such services and facilities 
     in terms of their contributions to the State's rail and 
     transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service, 
     containing an overview of the transportation services 
     provided by those lines, their ownership, operating 
     characteristics, and the general state of their 
     infrastructure.
       ``(3) A statement of the State's freight and 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 service and investment program for 
     current and future freight and passenger services 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 capital and operating funding 
     resources, public subsidies, State taxation, and other 
     financial policies relating to rail service and rail 
     infrastructure development.
       ``(7) A statement of rail service issues within the State, 
     such as congestion and capacity, and current system 
     deficiencies on a regional, intrastate, and interstate basis, 
     that reflects consultation with neighboring States and 
     describes any coordination of regional rail service.
       ``(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 description of new technology that relates to rail 
     transportation within the State, including logistics and 
     process improvements.
       ``(10) 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.
       ``(11) 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.
       ``(12) A compilation of studies and reports on high-speed 
     rail corridor development within the State not included in a 
     previous plan under this chapter, and a plan for funding any 
     recommended development of such corridors in the State.
       ``(13) 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 service and 
     investment program included in a State rail plan under 
     subsection (a)(5) shall include the following matters:
       ``(A) Two ranked lists for rail capital projects, 1 for 
     freight rail capital projects and 1 for intercity passenger 
     rail capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The ranked list of freight and 
     intercity passenger 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 
     ranked list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall 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 to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Competitive and service impacts for rail carriers and 
     shippers.
       ``(G) Preservation of rail service.
       ``(H) Economic and employment impacts.
       ``(I) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     Sec. 22505. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan--
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with--
       ``(A) State transportation plans developed pursuant to the 
     requirements of section 135 of title 23; and
       ``(B) the national rail plan, the 50-year intermodal 
     blueprint developed under section 5503(e) of this title, (if 
     either is available) and any other transportation plan of the 
     Federal Government that is required by law deemed relevant by 
     the Secretary.
       ``(b) Procedures for State Rail Plan Submission and 
     Approval.--The Secretary shall prescribe procedures for 
     States to submit State rail plans for review under this 
     title, including standardized format and data requirements 
     and procedures for resubmittal if a State rail plan is 
     disapproved. The procedures shall provide for the Secretary 
     to review a State rail plan and issue a record of decision of 
     approval or disapproval, with comment, on such plan within 
     180 days after the plan is submitted.

     ``Sec. 22506. High priority projects

       ``(a) Designation of Projects.--In reviewing State rail 
     plans, the Secretary of Transportation may designate as a 
     high priority project any project submitted by a State or 
     group of States that meets both of the following criteria:
       ``(1) The project focuses on key rail congestion points 
     that are--
       ``(A) selected by the Secretary on the basis of national 
     benefits to the rail transportation system; and
       ``(B) coordinated with the national rail plan, if that plan 
     is available.
       ``(2) The project is on a ranked list of priority freight 
     and passenger rail capital projects that is included in a 
     State rail plan under section 22504(a)(5) of title 49, United 
     States Code, unless this criterion is waived by the 
     Secretary.
       ``(b) Preferred Projects.--The Secretary, in designating 
     high priority projects, shall give preference to--
       ``(1) projects that have national significance for--
       ``(A) improving the national rail network and the Nation's 
     transportation system;
       ``(B) ensuring particularly high levels of safety;
       ``(C) increasing intermodal connectivity by providing or 
     improving direct connections between rail facilities and 
     other modes of transportation;
       ``(D) significantly improving highway, aviation, or 
     maritime capacity, congestion, or safety;
       ``(E) improving intercity passenger rail service by 
     increasing ridership, reducing trip time, or other 
     significant enhancements;
       ``(F) improving both intercity passenger rail and freight 
     rail services simultaneously;
       ``(G) enhancing freight rail service for shippers;
       ``(H) causing positive economic and employment results;
       ``(I) producing significant environmental or community 
     benefits;
       ``(J) having received financial commitments and other 
     support from non-Federal entities such as States, local 
     governments, or private entities;
       ``(K) enhancing international trade;
       ``(L) enhancing national security; or
       ``(M) employing positive train control technologies; and
       ``(2) projects that are at the stage of preparation that 
     all pre-commencement compliance with environmental protection 
     requirements has been completed and the projects are ready to 
     commence.
       ``(c) Regional Balance and Compatibility.--The Secretary, 
     in designating high priority projects, shall ensure that--
       ``(1) the geographic distribution of the designated high 
     priority projects is balanced

[[Page S15992]]

     among the geographic regions of the United States and a 
     disproportionated number of such projects is not concentrated 
     in a single State; and
       ``(2) all projects are--
       ``(A) compatible with State transportation plans developed 
     pursuant to the requirements of section 135 of title 23; and
       ``(B) carried out in conformance with the national rail 
     plan.
       ``(d) AdditionaL Projects.--The Secretary may designate 
     projects submitted to the Office by the National Railroad 
     Passenger Corporation, either independently or in conjunction 
     with a State or group of States, as a high priority project. 
     Any such projects shall be subject to the same designation 
     and selection criteria as apply under this section, except 
     the criteria set forth in subsections (a)(2) and (c)(2) of 
     this section.

     ``Sec. 22507. Definitions

       ``In this chapter:
       ``(1) Private benefit.--The term `private benefit' 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. The Secretary may seek the advice of the states 
     and rail carriers in further defining this term.xxx
       ``(2) Public benefit.--The term `public benefit' 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. The Secretary make 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.''.
       (b) Clerical Amendment.--The table of chapters for subtitle 
     V is amended by inserting after the item relating to chapter 
     223 the following:

``225. STATE RAIL PLANS AND HIGH PRIORITY PROJECTS........22501.''.....

     2SEC. 204. INTERSTATE RAILROAD PASSENGER HIGH-SPEED 
                   TRANSPORTATION POLICY.

       (a) In General.--Chapter 261 is amended by inserting before 
     section 26101 the following:

     ``Sec. 26100. Policy.

       ``The Congress declares that it is the policy of the United 
     States that designated high-speed railroad passenger 
     transportation corridors are the building blocks of an 
     interconnected National railroad passenger system.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     261 is amended by inserting before the item relating to 
     section 26101 the following:

``26100. Policy''.

     SEC. 205. HIGH-SPEED RAIL CORRIDOR PLANNING.

       (a) In General.--Section 26101(a) is amended to read as 
     follows:
       ``(a) Planning.--
       ``(1) In General.--The Secretary of Transportation shall 
     provide planning assistance to States or group of States and 
     other public agencies promoting the development of high-speed 
     rail corridors designated by the Secretary under section 
     104(d) of title 23. The Secretary shall establish an 
     application and qualification process for applicants eligible 
     for assistance under this section.
       ``(2) Secretary may provide direct or financial 
     assistance.--The Secretary may provide planning assistance 
     under paragraph (1) directly or by providing financial 
     assistance to a public agency or group of public agencies to 
     undertake planning activities approved by the Secretary. 
     Twenty percent of the publicly financed planning costs 
     associated with projects assisted under this chapter shall 
     come from non-Federal sources. State matching contributions 
     may not be derived, directly or indirectly, from Federal 
     funds.
       ``(d) Record of Decision.--Upon completion of planning 
     activities funded under this section, the Secretary shall 
     make a recommendation on the record of whether to proceed 
     with the implementation of the corridor.''.
       (b) Conforming and Other Amendments to Section 26101.--
     Section 26101 is further amended--
       (1) by striking subsection (c)(2) and inserting the 
     following:
       ``(2) the extent to which the proposed planning focuses on 
     high-speed rail systems, giving a priority to systems which 
     will achieve sustained speeds of 125 miles per hour or 
     greater and projects involving dedicated rail passenger 
     rights-of-way;'';
       (2) by inserting ``and'' after the semicolon in subsection 
     (c)(12);
       (3) by striking ``completed; and'' in subsection (c)(13) 
     and inserting ``completed.''; and
       (4) by striking subsection (c)(14).
       (c) Conforming Amendment.--Section 26105(2)(A) is amended 
     by striking ``more than 125 miles per hour;'' and inserting 
     ``90 miles per hour or more;''.
       (d) Financial Assistance To Include Loans and Loan 
     Guarantees--.Section 26105(1) is amended by inserting 
     ``loans, loan guarantees,'' after ``contracts,''.
       (e) Special Transportation Circumstances.--Section 26101 is 
     amended by adding at the end the following:
       ``(d) Special Transportation Circumstances.--In carrying 
     out this section, the Secretary shall allocate an appropriate 
     portion of the amounts available for planning assistance to 
     providing appropriate transportation-related assistance in 
     any State in which the rail transportation system--
       ``(1) is not physically connected to rail systems in the 
     continental United States; and
       ``(2) may not otherwise qualify for high speed rail 
     implementation assistance due to the constraints imposed on 
     the railway infrastructure in that State due to the unique 
     characteristics of the geography of that State or other 
     relevant considerations, as determined by the Secretary.''.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $50,000,000 for each of fiscal years 2004 through 2009 to 
     provide planning assistance under section 26101(a) of title 
     49, United States Code.

     SEC. 206. DESIGNATED HIGH-SPEED RAIL CORRIDORS.

       (a) In General.--The Secretary of Transportation shall give 
     priority in allocating funds authorized by section 26104 of 
     title 49, United States Code, to designated high-speed rail 
     corridors.
       (b) Designated High-Speed Rail Corridors.--For purposes of 
     subsection (a), the following shall be considered to be 
     designated high-speed rail corridors:
       (1) California Corridor connecting the San Francisco Bay 
     area and Sacramento to Los Angeles and San Diego.
       (2) Chicago Hub Corridor Network with the following spokes:
       (A) Chicago to Detroit.
       (B) Chicago to Minneapolis/St. Paul, Minnesota, via 
     Milwaukee, Wisconsin.
       (C) Chicago to Kansas City, Missouri, via Springfield, 
     Illinois, and St. Louis, Missouri.
       (D) Chicago to Louisville, Kentucky, via Indianapolis, 
     Indiana, and Cincinnati, Ohio.
       (E) Chicago to Cleveland, Ohio, via Toledo, Ohio.
       (F) Cleveland, Ohio, to Cincinnati, Ohio, via Columbus, 
     Ohio.
       (3) Empire State Corridor from New York City, New York, 
     through Albany, New York, to Buffalo, New York.
       (4) Florida High-Speed Rail Corridor from Tampa through 
     Orlando to Miami.
       (5) Gulf Coast Corridor from Houston Texas, through New 
     Orleans, Louisiana, to Mobile, Alabama, with a branch from 
     New Orleans, through Meridian, Mississippi, and Birmingham, 
     Alabama, to Atlanta, Georgia.
       (6) Keystone Corridor from Philadelphia, Pennsylvania, 
     through Harrisburg, Pennsylvania, to Pittsburgh, 
     Pennsylvania.
       (7) Northeast Corridor from Washington, District of 
     Columbia, through New York City, New York, New Haven, 
     Connecticut, and Providence, Rhode Island, to Boston, 
     Massachusetts, with a branch from New Haven, Connecticut, to 
     Springfield, Massachusetts.
       (8) New England Corridor from Boston, Massachusetts, to 
     Portland and Auburn, Maine, and from Boston, Massachusetts, 
     through Concord, New Hampshire, and Montpelier, Vermont, to 
     Montreal, Quebec.
       (9) Pacific Northwest Corridor from Eugene, Oregon; through 
     Portland, Oregon, and Seattle, Washington, to Vancouver, 
     British Columbia.
       (10) South Central Corridor from San Antonio, Texas, 
     through Dallas/Fort Worth to Little Rock, Arkansas, with a 
     branch from Dallas/Fort Worth through Oklahoma City, 
     Oklahoma, to Tulsa, Oklahoma.
       (11) Southeast Corridor from Washington, District of 
     Columbia, through Richmond, Virginia, Raleigh, North 
     Carolina, Columbia, South Carolina, Savannah, Georgia, and 
     Jessup, Georgia, to Jacksonville, Florida, with--
       (A) a branch from Raleigh, North Carolina, through 
     Charlotte, North Carolina, and Greenville, South Carolina, to 
     Atlanta, Georgia; a branch from Richmond, to Hampton Roads/
     Norfolk, Virginia;
       (B) a branch from Charlotte, North Carolina, to Columbia, 
     South Carolina, to Charleston, South Carolina;
       (C) a connecting route from Atlanta, Georgia, to Jessup, 
     Georgia;
       (D) a connecting route from Atlanta, Georgia, to 
     Charleston, South Carolina; and
       (E) a branch from Raleigh, North Carolina, through 
     Florence, South Carolina, to Charleston, South Carolina, and 
     Savannah, Georgia, with a connecting route from Florence, 
     South Carolina, to Myrtle Beach, South Carolina.
       (12) Southwest Corridor from Los Angeles, California, to 
     Las Vegas, Nevada.
       (c) Other High-Speed Rail Corridors.--For purposes of this 
     section, subsection (b)--
       (1) does not limit the term ``designated highspeed rail 
     corridor'' to those corridors described in subsection (b); 
     and
       (2) does not limit the Secretary of Transportation's 
     authority--
       (A) to designate additional high-speed rail corridors; or
       (B) to terminate the designation of any high-speed rail 
     corridor.

[[Page S15993]]

     SEC. 207. REHABILITATION, IMPROVEMENT, AND SECURITY 
                   FINANCING.

       (a) Definitions.--Section 102(7) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     802(7)) is amended to read as follows:
       ``(7) `railroad' has the meaning given that term in section 
     20102 of title 49, United States Code; and''.
       (b) General Authority.--Section 502 of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822) is amended--
       (1) by striking ``Secretary may provide direct loans and 
     loan guarantees to State and local governments,'' in 
     subsection (a) and inserting ``Secretary shall provide direct 
     loans and loan guarantees to State and local governments, 
     interstate compacts entered into under section 410 of the 
     Amtrak Reform and Accountability Act of 1997 (49 U.S.C 24101 
     note),'';
       (2) by striking ``or'' in subsection (b)(1)(B);
       (3) by redesignating subparagraph (C) of subsection (b)(1) 
     as subparagraph (D); and
       (4) by inserting after subparagraph (B) of subsection 
     (b)(1) the following:
       ``(C) to acquire, improve, or rehabilitate rail safety and 
     security equipment and facilities; or''.
       (c) Extent of Authority.--Section 502(d) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(d)) is amended by adding at the end ``The Secretary shall 
     not establish any limit on the proportion of the unused 
     amount authorized under this subsection that may be used for 
     a single loan or loan guarantee.''.
       (d) Cohorts of Loans.--Section 502(f) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(f)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``and'' at the end of subparagraph (D);
       (B) by redesignating subparagraph (E) as subparagraph (F); 
     and
       (C) by adding after subparagraph (D) the following new 
     subparagraph:
       ``(E) the size and characteristics of the cohort of which 
     the loan or loan guarantee is a member; and''; and
       (2) by adding at the end of paragraph (4) the following: 
     ``A cohort may include loans and loan guarantees. The 
     Secretary shall not establish any limit on the proportion of 
     a cohort that may be used for a single loan or loan 
     guarantee.''.
       (e) Conditions of Assistance.--Section 502 of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822) is amended--
       (1) by striking ``offered;'' in subsection (f) (2) (A) and 
     inserting ``offered, if any;'';
       (2) by inserting ``(1)'' before ``The Secretary'' in 
     subsection (h) and redesignating paragraphs (1), (2), and (3) 
     of that subsection as subparagraphs (A), (B), and (C); and
       (3) by adding at the end of subsection (h) the following: .
       ``(2) The Secretary may not require an applicant for a 
     direct loan or loan guarantee under this section to provide 
     collateral.
       ``(3) The Secretary may not require that an applicant for a 
     direct loan or loan guarantee under this section have 
     previously sought the financial assistance requested from 
     another source.
       ``(4) The Secretary shall require recipients of direct 
     loans or loan guarantees under this section to apply the 
     standards of subsections (b) and (e) of section 22301 of 
     title 49, United States Code, to their projects.
       ``(5) The Secretary shall require recipients of direct 
     loans or loan guarantees under this section to comply with--
       ``(A) the standards of section 24312, as 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 such standards for construction work 
     financed under an agreement made under section 24308(a); and
       ``(B) the protective arrangements established under section 
     504 of the Railroad Revitalization and Regulatory Reform Act 
     of 1976 (45 U.S.C. 836) with respect to employees affected by 
     actions taken in connection with the project to be financed 
     by direct loans or loan guarantees.''.
       (f) Time Limit for Approval or Disapproval.--Section 502 of 
     the Railroad Revitalization and Regulatory Reform Act of 1976 
     (45 U.S.C. 822) is amended by adding at the end the 
     following:
       ``(i) Time Limit for Approval or Disapproval.--Not later 
     than 180 days after receiving a complete application for a 
     direct loan or loan guarantee under this section, the 
     Secretary shall approve or disapprove the application.''.
       (g) Fees and Charges.--Section 503 of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     823) is amended--
       (1) by adding at the end of subsection (k) the following: 
     ``Funds received by the Secretary under the preceding 
     sentence shall be credited to the appropriation from which 
     the expenses of making such appraisals, determinations, and 
     findings were incurred.''; and
       (2) by adding at the end the following new subsection:
       ``(m) Fees and Charges.--Except as provided in this title, 
     the Secretary may not assess any fees, including user fees, 
     or charges in connection with a direct loan or loan guarantee 
     provided under section 502.''.
       (h) Substantive Criteria and Standards.--Not later than 30 
     days after the date of the enactment of this Act, the 
     Secretary of Transportation shall publish in the Federal 
     Register and post on the Department of Transportation Web 
     site the substantive criteria and standards used by the 
     Secretary to determine whether to approve or disapprove 
     applications submitted under section 502 of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822).
       (i) Operators Deemed Rail Carriers; Loans and Loan 
     Guarantees for Non-Railroad Entities.--Section 502 of the 
     Railroad Revitalization and Regulatory Reform Act of 1976 (45 
     U.S.C. 822), as amended by subsection (f), is amended by 
     adding at the end the following:
       ``(j) Operators Deemed Rail Carriers.--Any entity providing 
     railroad transportation (within the meaning of section 20102) 
     that begins operations after the date of enactment of the 
     Arrive 21 Act and that uses property acquired pursuant to 
     this section shall be considered an employer for purposes of 
     the Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.) 
     and considered a carrier for purposes of the Railway Labor 
     Act (45 U.S.C. 151 et seq. ).
       ``(k) Loan and Loan Guarantees for Non-Railroad Entities.--
     Notwithstanding any other provision of law, entities other 
     than rail companies shall be eligible for loans and loan 
     guarantees under this section.''.

     SEC. 208. REPAYMENT OF LOAN TO NATIONAL RAILROAD PASSENGER 
                   CORPORATION.

       The Secretary of Transportation may not collect any 
     payments of principal or interest for the direct loan made to 
     the National Railroad Passenger Corporation under section 502 
     of the Railroad Revitalization and Regulatory Reform Act of 
     1976 (45 U.S.C. 822). There are authorized to be appropriated 
     to the Secretary for fiscal year 2004 $100,000,000 for the 
     purpose of repaying that loan to the Secretary of the 
     Treasury.

                      TITLE III--INTERMODAL POLICY

     SEC. 301. 50-YEAR INTERMODAL BLUEPRINT.

       (a) In General.--Section 5503 is amended--
       (1) by redesignating subsections (e) and (f) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (d) the following:
       ``(e) 50-Year Intermodal Blueprint.--
       ``(1) In general.--The Secretary, in consultation with the 
     advisory board established under section 24910(c) of this 
     title, and other Federal, State, local, and private concerns, 
     shall create a document to be known as the `50-year 
     Intermodal Blueprint', which shall--
       ``(A) set forth a plan to develop a national intermodal 
     transportation system, including all major modes of 
     transportation;
       ``(B) describe emerging trends and opportunities to fulfill 
     the future passenger and freight transportation needs of the 
     United States;
       ``(C) illustrate and estimate the potential results of 
     current policies, possible policy improvements, and 
     directives for achieving the goals set forth in the document;
       ``(D) forecast the impact of current and future 
     transportation policies on mobility, safety, energy 
     consumption, the environment, technology, international 
     trade, economic activity, and the quality of life in the 
     United States; and
       ``(E) identify sources of funding to implement the plan 
     described in subparagraph (A).
       ``(2) Biennial progress reports.--The Director, working 
     with the Department of Transportation Inspector General, 
     shall issue a 50-year Intermodal Blueprint progress report 
     every 2 years and transmit a copy to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Transportation and 
     Infrastructure. In the report, the Director shall--
       ``(A) disclose the results of an audit of the progress made 
     toward achieving the goals set forth in the 50-year 
     Intermodal Blueprint;
       ``(B) describe successes, challenges, and obstacles with 
     respect to the 50-year Intermodal Blueprint;
       ``(C) suggest any changes to the 50-year Intermodal 
     Blueprint that the Director deems necessary or appropriate to 
     reflect changed circumstances or new developments;
       ``(D) make recommendations on ways to increase intermodal 
     planning and cooperation throughout the national 
     transportation system and within the Department of 
     Transportation; and
       ``(E) identify successful funding mechanisms and make 
     recommendations for new approaches to funding intermodal 
     transportation facilities and services.
       ``(3) Sexennial revisions.--The Secretary, in consultation 
     with Federal, State, local, and private concerns, shall 
     revise and republish the 50-year Intermodal Blueprint every 6 
     years.
       ``(f) Impact Measurement Methodology; Impact Review.--The 
     Secretary, working with the Bureau of Transportation 
     Statistics, and taking into account the work of the rail 
     cooperative research program established under section 
     24910(a) of this title, shall--
       ``(1) formulate a methodology for measuring the impact of 
     intermodal transportation on--
       ``(A) the environment;
       ``(B) public health and welfare;
       ``(C) energy consumption;
       ``(D) the operation and efficiency of the transportation 
     system;
       ``(E) congestion; and
       ``(F) the economy and employment; and
       ``(2) undertake a comprehensive review of the impact of 
     international trade on intermodal transportation and existing 
     intermodal transportation infrastructure.''.
       (b) Retained Funds.--Section 5568 is amended--

[[Page S15994]]

       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following:
       ``(b) 50-Year Intermodal Blueprint.--There are authorized 
     to be appropriated to the Secretary $1,000,000 for each of 
     fiscal years 2004 through 2009 to carry out section 
     5503(e).''.

     SEC. 302. INTERMODAL TRANSPORTATION POLICY.

       (a) Policy Standards.--Section 302(e) is amended by 
     striking ``system'' and inserting ``system, including freight 
     and passenger rail service and maritime transportation, 
     including such transportation via inland waterways,''.
       (b) State Transportation Improvement Programs.--Section 
     135(f)(4) of title 23, United States Code, is amended by 
     inserting ``a State rail plan developed under chapter 225 of 
     title 49,'' after ``134,''.

                    TITLE IV--AMTRAK AUTHORIZATIONS

     SEC. 401. 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, D.C.;
       ``(B) rail corridors that have been designated by the 
     Secretary of Transportation as high-speed corridors, but only 
     after they have been improved to permit operation of 
     highspeed service;
       ``(C) long-distance routes of more than 750 miles between 
     endpoints operated by Amtrak as of the date of enactment of 
     the Arrive 21 Act; and
       ``(D) short-distance corridors or routes operated by 
     Amtrak.''.
       (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 and a State, a 
     regional or local authority, or another person may enter into 
     a contract 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.

     SEC. 402. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.

       (a) In General.--The Secretary of the Treasury shall work 
     with the Secretary of Transportation and Amtrak to 
     restructure Amtrak's indebtedness as of the date of enactment 
     of this Act.
       (b) New Debt Prohibition.--Except as approved by the 
     Secretary of Transportation, Amtrak may not enter into any 
     obligation secured by assets of the Corporation after the 
     date of enactment of this Act. This section does not prohibit 
     unsecured lines of credit used by Amtrak or any subsidiary 
     for working capital purposes.
       (c) Debt Redemption.--The Secretary of Transportation, in 
     consultation with the Secretary of the Treasury, shall enter 
     into negotiations with the holders of Amtrak debt, including 
     leases, that is outstanding on the date of enactment of this 
     Act for the purpose of redeeming or restructuring that debt. 
     The Secretary, in consultation with the Secretary of the 
     Treasury, shall secure agreements for repayment on such terms 
     as the Secretary deems favorable to the interests of the 
     Government. Payments for such redemption may be made after 
     October 1, 2004, in either a single payment or a series of 
     payments, but in no case shall the repayment period extend 
     beyond September 30, 2008.
       (d) Criteria.--In redeeming or restructuring Amtrak's 
     indebtedness, the Secretaries and Amtrak--
       (1) shall ensure that the restructuring imposes the least 
     practicable burden on taxpayers; and
       (2) take into consideration repayment costs, the term of 
     any loan or loans, and market conditions.
       (e) Authorization.--There are authorized to be appropriated 
     to the Secretary such sums as may be necessary for fiscal 
     years 2005 through 2008 to restructure or redeem Amtrak's 
     secured debt.
       (f) Amtrak Principal and Interest Payments.--
       (1) Principal on debt service.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury restructure 
     or redeem the debt, there are authorized to be appropriated 
     to the Secretary of Transportation for the use of Amtrak for 
     retirement of principal on loans for capital equipment, or 
     capital leases, not more than the following amounts:
       (A) For fiscal year 2004, $116,900,000.
       (B) For fiscal year 2005, $109,500,000.
       (C) For fiscal year 2006, $114,700,000.
       (D) For fiscal year 2007, $202,900,000.
       (E) For fiscal year 2008, $164,300,000.
       (F) For fiscal year 2009, $155,800,000.
       (2) Interest on debt.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury restructure 
     or redeem the debt, there are authorized to be appropriated 
     to the Secretary of Transportation for the use of Amtrak for 
     the payment of interest on loans for capital equipment, or 
     capital leases, the following amounts:
       (A) For fiscal year 2004, $162,600,000.
       (B) For fiscal year 2005, $151,300,000.
       (C) For fiscal year 2006, $146,300,000.
       (D) For fiscal year 2007, $137,500,000.
       (E) For fiscal year 2008, $125,300,000.
       (F) For fiscal year 2009, $117,100,000.
       (3) Reductions in authorization levels.--Whenever action 
     taken by the Secretary of the Treasury under subsection (c) 
     results in reductions in amounts of principle and interest 
     that Amtrak must service on existing debt, Amtrak shall 
     submit revised recommendations to the Senate Committee on 
     Commerce, Science and Transportation, the House of 
     Representatives Committee on Transportation and 
     Infrastructure, the Senate Committee on Appropriations, and 
     House of Representatives Committee on Appropriations revised 
     requests for amounts authorized by paragraphs (1) and (2) 
     that reflect the such reductions.

     SEC. 403. GENERAL AMTRAK AUTHORIZATIONS.

       (a) Repeal of Self-Sufficiency Requirements.--
       (1) Title 49 amendments.--Chapter 241 is amended
       (A) by striking the last sentence of section 24101(d); and
       (B) by striking the last sentence of section 24104(a).
       (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.
       (3) Common stock redemption date.--Section 415 of the 
     Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304 
     nt) is amended by striking subsection (b).
       (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 2004 through 2008.
       (c) Financial Powers.--Section 415(d) of the Amtrak Reform 
     and Accountability Act of 1997 by adding at the end, the 
     following:
       ``(3) This section does not affect the applicability of 
     section 3729 of title 31, United States Code, to claims made 
     against Amtrak.''.

     SEC. 404. EXCESS RAILROAD RETIREMENT.

       Beginning in fiscal year 2004, the Secretary of the 
     Treasury each year shall 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 fiscal 
     years that is more than the amount needed for benefits for 
     individuals who retire from Amtrak and for their 
     beneficiaries. There are authorized to be appropriated such 
     sums as may be necessary in each fiscal year beginning after 
     fiscal year 2004 for these payments.

     SEC. 405. AUTHORIZATIONS FOR ENVIRONMENTAL COMPLIANCE AND 
                   STATION EVIPROVEMENTS.

       (a) Environmental Compliance.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak in order to comply with environmental regulations 
     the following amounts:
       (A) For fiscal year 2004, $18,800,000.
       (B) For fiscal year 2005, $21,700,000.
       (C) For fiscal year 2006, $22,300,000.
       (D) For fiscal year 2007, $15,100,000.
       (E) For fiscal year 2008, $15,900,000.
       (F) For fiscal year 2009, $16,000,000.
       (b) Capital Improvements to Stations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary of Transportation for the use of Amtrak for 
     capital improvements to stations, including an initial 
     assessment of the full set of accessibility needs across the 
     national rail passenger transportation system and improved 
     accessibility for the elderly and people with disabilities 
     and in Amtrak facilities and stations, the following 
     amounts:
       (A) For fiscal year 2004, $17,100,000.
       (B) For fiscal year 2005, $19,800,000.
       (C) For fiscal year 2006, $19,800,000.
       (D) For fiscal year 2007, $19,000,000.
       (E) For fiscal year 2008, $19,000,000.
       (F) For fiscal year 2009, $19,000,000.
       (2) Study of compliance requirements at existing intercity 
     rail stations.--Amtrak 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 survey to 
     the Senate Committee on

[[Page S15995]]

     Commerce, Science, and Transportation, the House of 
     Representatives Committee on Transportation and 
     Infrastructure, and the National Council on Disability by 
     September 30, 2005, along with recommendations for funding 
     the necessary improvements.

     SEC. 406. TUNNEL LIFE SAFETY.

       (a) Life Safety Needs.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for fiscal year 2004:
       (1) $677,000,000 for the 6 New York tunnels built in 1910 
     to provide ventilation, electrical, and fire safety 
     technology upgrades, emergency communication and lighting 
     systems, and emergency access and egress for passengers.
       (2) $57,000,000 for the Baltimore & Potomac tunnel built in 
     1872 to provide adequate drainage, ventilation, 
     communication, lighting, and passenger egress upgrades.
       (3) $40,000,000 for the Washington, DC, Union Station 
     tunnels built in 1904 under the Supreme Court and House and 
     Senate Office Buildings to improve ventilation, 
     communication, lighting, and passenger egress upgrades.
       (b) Infrastructure Upgrades.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak $3,000,000 for fiscal year 2004 for the preliminary 
     design of options for a new tunnel on a different alignment 
     to augment the capacity of the existing Baltimore tunnels.
       (c) Financial Contribution From Other Tunnel Users.--The 
     Secretary shall, taking into account the need for the timely 
     completion of all life safety portions of the tunnel projects 
     described in subsection (a)--
       (1) consider the extent to which rail carriers other than 
     Amtrak use the tunnels;
       (2) consider the feasibility of seeking a financial 
     contribution from those other rail carriers toward the costs 
     of the projects; and
       (3) obtain financial contributions or commitments from such 
     other rail carriers if feasible.
       (d) Availability of Funds. Amounts appropriated pursuant to 
     this section shall remain available until expended.

     SEC. 407. AUTHORIZATION FOR CAPITAL AND OPERATING EXPENSES.

       (a) OPerating Expenses.--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 2004, $581,000,000.
       (2) For fiscal year 2005, $567,000,000.
       (3) For fiscal year 2006, $558,000,000.
       (4) For fiscal year 2007, $529,000,000.
       (5) For fiscal year 2008, $522,000,000.
       (6) For fiscal year 2009, $522,000,000.
       (b) Capital Backlog and Upgrades.--There are authorized to 
     be appropriated to the Secretary of Transportation for the 
     use of Amtrak for capital expenses, the following amounts:
       (1) For fiscal year 2004, $674,000,000.
       (2) For fiscal year 2005, $765,000,000.
       (3) For fiscal year 2006, $733,000,000.
       (4) For fiscal year 2007, $604,000,000.
       (5) For fiscal year 2008, $560,000,000.
       (6) For fiscal year 2009, $565,000,000.
       (c) Reductions.--Amounts authorized under subsection (b) 
     shall be reduced by amounts equal to grants provided by the 
     Rail Infrastructure Finance Corporation under title VI of 
     this Act upon receipt to Amtrak for capital requirements and 
     expenditures listed in the annual budget and 5 Year Financial 
     Plan required under section 413.

     SEC. 409. ESTABLISHMENT OF GRANT PROCESS.

       (a) Grant Requests.--Amtrak shall submit grant requests to 
     the Secretary of Transportation for funds authorized to be 
     appropriated to the Secretary for the use of Amtrak under 
     sections 405, 406, and 407.
       (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.
       (c) Review and Approval.--
       (1) 30-day process.--The Secretary shall complete the 
     review of a grant request and approve or disapprove the 
     request within 30 days after the date on which Amtrak submits 
     the grant request.
       (2) Incomplete or Deficient Requests.--If the Secretary 
     disapproves the request or determines that the request is 
     incomplete or deficient, the Secretary shall immediately 
     notify Amtrak of the reason for disapproval or the incomplete 
     items or deficiencies. 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. 409. STATE-SUPPORTED ROUTES.

       The Board of Directors of Amtrak, in consultation with the 
     Secretary of Transportation and the chief executive officer 
     of each State and the District of Columbia, shall develop a 
     formula for funding the operating costs of trains operating 
     on routes not in excess of 750 miles in length that--
       (1) is equitable and fair; and
       (2) ensures, within 5 years after the date of enactment of 
     this Act, equal treatment of all States (and the District of 
     Columbia) and groups of States (including the District of 
     Columbia).

     SEC. 410. RE-ESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY 
                   COMMITTEE.

       (a) Re-establishment of Northeast Corridor Safety 
     Committee.--The Secretary of Transportation shall re-
     establish the Northeast Corridor Safety Committee authorized 
     by section 24905(b) of title 49, United States Code.
       (b) Termination Date.--Section 24905(b)(4) is amended by 
     striking ``January 1, 1999,'' and inserting ``January 1, 
     2009,''.

     SEC. 411. 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 9 directors, each of whom must be a citizen of the 
     United States:
       ``(A) The President of Amtrak.
       ``(B) The Secretary of Transportation.
       ``(C) 7 individuals appointed by the President of the 
     United States, by and with the advice and consent of the 
     Senate, with experience and qualifications in or directly 
     related to rail transportation, including representatives of 
     freight and passenger rail transportation, travel, 
     hospitality, cruise line, and passenger air transportation 
     businesses, consumers of passenger rail transportation, and 
     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 should ensure adequate and 
     balanced representation of the major geographic regions of 
     the United States.
       ``(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 4 
     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.
       ``(b) Pay and Expenses.--Each director not employed by the 
     United States Government is entitled to $300 a day when 
     performing board duties and powers. 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) 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, 2003. 
     The members of the Amtrak Reform Board may continue to serve 
     until 3 directors appointed by the President under section 
     24302(a) of title 49, United States Code, as amended by 
     subsection (a), have qualified for office.

     SEC. 412. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR 
                   AMTRAK OPERATIONS BY INDEPENDENT AUDITOR.

       (a) In General.--The Inspector General of the Department of 
     Transportation shall employ an independent financial 
     consultant with experience in railroad accounting--
       (1) to assess Amtrak's financial accounting and reporting 
     system and practices;
       (2) to design and assist Amtrak in implementing a modern 
     financial accounting and reporting system, on the basis of 
     the assessment, that will produce accurate and timely 
     financial information in sufficient detail--
       (A) to enable Amtrak to assign revenues and expenses 
     appropriately to each of its lines of business and to each 
     major activity within each line of business activity, 
     including train operations, equipment maintenance, ticketing, 
     and reservations;
       (B) to aggregate expenses and revenues related to 
     infrastructure and distinguish them from expenses and 
     revenues related to rail operations; and
       (C) to provide ticketing and reservation information on a 
     real-time basis.
       (b) Verification of System; Report.--The Inspector General 
     of the Department of Transportation shall review the 
     accounting system designed and implemented under subsection 
     (a) to ensure that it accomplishes the purposes for which it 
     is intended. The Inspector General shall report his findings 
     and conclusions, together with any recommendations, to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the

[[Page S15996]]

     House of Representatives Committee on Transportation and 
     Infrastructure.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $2,500,000 for fiscal year 2004 to carry out subsection (a), 
     such sums to remain available until expended.

     SEC. 413. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

       (a) Development of 5-Year Financial Plan.--The Amtrak board 
     of directors shall submit an annual budget for Amtrak, and a 
     5-year financial plan for the fiscal year to which that 
     budget relates 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 nonpassenger 
     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 adequately meet capital and operating 
     requirements, Amtrak's access to long-term and short-term 
     capital markets, Amtrak's ability to efficiently manage its 
     workforce, and Amtrak's ability to effectively provide 
     passenger train service.
       (8) lump sum expenditures of $10,000,000 or more and 
     sources of funding.
       (9) estimates of long-term and short-term debt and 
     associated principle and interest payments (both current and 
     anticipated);
       (10) annual cash flow forecasts; and
       (11) a statement describing methods of estimation and 
     significant assumptions.
       (c) Standards to Promote Financial Stability.--In meeting 
     the requirements of subsection (b) with respect to a 5-year 
     financial plan, Amtrak shall--
       (1) apply sound budgetary practices, including reducing 
     costs and other expenditures, improving productivity, 
     increasing revenues, or combinations of such practices; and
       (2) use the categories specified in the financial 
     accounting and reporting system developed under section 412 
     when preparing its 5-year financial plan.
       (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. 414. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR 
                   AMTRAK ROUTE AND SERVICE PLANNING DECISIONS.

       (a) Review.--The Secretary of Transportation shall, in 
     consultation with the Federal Railroad Administration, 
     execute a contract to obtain the services of an independent 
     auditor or consultant to research and define Amtrak's past 
     and current methodologies for determining intercity passenger 
     rail routes and services.
       (b) Recommendations.--The independent auditor or consultant 
     shall recommend objective methodologies for determining such 
     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.
       (c) Submittal to Congress.--The Secretary shall submit 
     recommendations received under subsection (b) to Amtrak, the 
     House of Representatives Committee on Transportation and 
     Infrastructure, and the Senate Committee on Commerce, 
     Science, and Transportation.
       (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.

     SEC. 415. METRICS AND STANDARDS.

       The Administrator of the Federal Railroad Administration 
     shall, in consultation with Amtrak and host railroads, 
     develop new or improve existing metrics and minimum standards 
     for measuring the service quality of intercity train 
     operations, including on-time performance, on-board services, 
     stations, facilities, equipment, and other services.

     SEC. 416. ON-TIME PERFORMANCE.

       Section 24308 is amended by adding at the end the 
     following:
       ``(f) On-time Performance and Other Standards.--If the on-
     time performance of any intercity passenger train averages 
     less than 80 percent for any consecutive 6-month period, or 
     the service quality of intercity train operations for which 
     minimum standards are established under section 415 of the 
     Arrive 21 Act fails to meet those standards, Amtrak may 
     petition the Surface Transportation Board to investigate 
     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 the tracks of which the 
     intercity passenger train operates, or by a regional 
     authority providing commuter service, if any. In carrying out 
     such an investigation, the Surface Transportation Board shall 
     obtain information from all parties involved and make 
     recommendations regarding reasonable measures to improve the 
     service, quality, and on-time performance of the train.''.

            TITLE V--RAIL INFRASTRUCTURE FINANCE CORPORATION

     SEC. 501. ESTABLISHMENT OF CORPORATION.

       There is established a nonprofit corporation, to be known 
     as the ``Rail Infrastructure Finance Corporation''. The Rail 
     Infrastructure Finance Corporation is not an agency or 
     establishment of the United States Government. The 
     Corporation shall be subject to the provisions of this title 
     and title VI, and, to the extent consistent with this 
     section, to the laws of the State of Delaware applicable to 
     corporations not for profit.

     SEC. 502. BOARD OF DIRECTORS.

       (a) Appointment.--The Rail Infrastructure Finance 
     Corporation shall have a Board of Directors consisting of 9 
     members appointed by the President, by and with the advice 
     and consent of the Senate. The President shall submit all 
     nominations for the initial Board not less than 180 days 
     after the date of enactment of this Act. Not more than 5 
     members of the Board may be members of the same political 
     party.
       (b) Membership Qualifications.--
       (1) In general.--The 9 members of the Board shall be 
     appointed from among citizens of the United States (not 
     regular full-time employees of the United States) who are 
     eminent in the fields of rail transportation, rail financing, 
     and intermodal transportation planning, and the financing and 
     management of large-scale, long-term public-private 
     cooperative projects.
       (2) Representation of specific interests.--Of the 9 members 
     of the Board, 8 of the members shall be selected as follows:
       (A) 1 member from among individuals who represent the 
     interests of freight rail transportation.
       (B) 1 member from among individuals who represent the 
     interests of intermodal transportation.
       (C) 1 member from among individuals who represent the 
     interests of passenger rail transportation.
       (D) 1 member from among individuals who represent the 
     interests of the States.
       (E) 1 member from among individuals who represent the 
     interests of intercity passenger rail users.
       (F) 1 member from among individuals who represent the 
     interests of organized rail labor.
       (G) 2 members from among persons who are involved in 
     finance.
       (c) Incorporation.--The members initially appointed to the 
     Board of Directors shall serve as incorporators and, upon the 
     establishment of a quorum, shall take whatever actions are 
     necessary to establish the Corporation under the laws of 
     Delaware.
       (d) Terms of Office.--Members of the Board shall be 
     appointed for terms of 6 years. No member of the Board shall 
     be eligible to serve in excess of 2 consecutive full terms.
       (e) Vacancies.--A member of the Board appointed to fill a 
     vacancy occurring prior to the expiration of the term for 
     which the member's predecessor was appointed shall be 
     appointed for the remainder of such term. Upon the expiration 
     of a member's term, the member shall continue to serve until 
     a successor is appointed.
       (f) Attendance Required.--Members of the Board shall attend 
     not less than 50 percent of all duly convened meetings of the 
     Board in any calendar year. A member who fails to meet the 
     requirement of the preceding sentence shall forfeit 
     membership and the President shall appoint a new member to 
     fill the resulting vacancy not later than 90 days after such 
     vacancy is determined by the Chairman of the Board.
       (g) Election of Chairman and Vice Chairman.--Members of the 
     Board shall annually elect 1 of their members to be Chairman 
     and elect 1 or more of their members as a Vice Chairman or 
     Vice Chairmen.
       (h) Compensation.--The members of the Board shall not, by 
     reason of such membership, be considered to be officers or 
     employees of the United States. They shall, while

[[Page S15997]]

     attending meetings of the Board or while engaged in duties 
     related to such meetings or other activities of the Board 
     pursuant to this Act, be entitled to receive compensation at 
     the rate of $300 per day, including traveltime. No Board 
     member shall receive compensation of more than $10,000 in any 
     fiscal year. While away from their homes or regular places of 
     business, Board members shall be allowed travel and actual, 
     reasonable, and necessary expenses.
       (i) Meetings Open to Public.--All meetings of the Board of 
     Directors of the Corporation, including any committee of the 
     Board, shall be open to the public under such terms, 
     conditions, and exceptions as the Board may establish.
       (j) Quorum and Proceedings.--Five members of the Board 
     shall constitute a quorum for the Board to conduct business. 
     All decisions of the Board shall be entered upon the records 
     of the Board.

     SEC. 503. OFFICERS AND EMPLOYEES.

       (a) In General.--The Rail Infrastructure Finance 
     Corporation shall have a President, and such other officers 
     as may be named and appointed by the Board for terms and at 
     rates of compensation fixed by the Board. No individual other 
     than a citizen of the United States may be an officer of the 
     Corporation. No officer of the Corporation may receive any 
     salary or other compensation (except for compensation for 
     services on boards of directors of other organizations that 
     do not receive funds from the Corporation, on committees of 
     such boards, and in similar activities for such 
     organizations) from any sources other than the Corporation 
     for services rendered during the period of his or her 
     employment by the Corporation. Service by any officer on 
     boards of directors of other organizations, on committees of 
     such boards, and in similar activities for such organizations 
     shall be subject to annual advance approval by the Board and 
     subject to the provisions of the Corporation's Statement of 
     Ethical Conduct. All officers shall serve at the pleasure of 
     the Board. An officer of the corporation shall not be 
     considered to be an officer or employee of the United States 
     by virtue of such office.
       (b) Nonpartisan Nature of Appointments.--No political test 
     or qualification shall be used in selecting, appointing, 
     promoting, or taking other personnel actions with respect to 
     officers, agents, or employees of the Corporation.

     SEC. 504. NONPROFIT AND NONPOLITICAL NATURE OF THE 
                   CORPORATION.

       (a) Stock.--The Rail Infrastructure Finance Corporation 
     shall have no power to issue any shares of stock, or to 
     declare or pay any dividends.
       (b) No Private Benefit.--No part of the income or assets of 
     the Corporation shall inure to the benefit of any director, 
     officer, employee, or any other individual except as salary 
     or reasonable compensation for services.
       (c) Political Activity Prohibited.--The Corporation may not 
     contribute to or otherwise support any political party or 
     candidate for elective public office.
       (d) Conflicts of Interest.--No director, officer, or 
     employee of the Corporation shall in any manner, directly or 
     indirectly, participate in the deliberation upon or the 
     determination of any question affecting his or her personal 
     interests or the interests of any corporation, partnership, 
     or organization in which he or she has a direct or indirect 
     financial interest. Board members shall recuse themselves 
     from Board decisions that directly affect either them or 
     entities they represent regarding grants and other financial 
     assistance provided to States by the Board.

     SEC. 505. PURPOSE AND ACTIVITIES OF CORPORATION.

       (a) Purpose.--The Rail Infrastructure Finance Corporation 
     shall, through the issuance of qualified rail infrastructure 
     bonds in accordance with section 54 of the Internal Revenue 
     Code of 1986 and this title, provide financial support for 
     rail transportation capital projects under title VI of this 
     Act.
       (b) Bond Issuance Authority.--
       (1) In general.--In order to carry out its purposes, the 
     Corporation is authorized to issue qualified rail 
     infrastructure bonds (as defined in section 54(e) of the 
     Internal Revenue Code of 1986) during the 6-year period 
     beginning on the day after the date of enactment of this Act.
       (2) Limitation.--The total face amount of the bonds 
     outstanding under paragraph (1) at any time may not exceed 
     $30,000,000,000.
       (3) No federal guarantee.--
       (A) Obligations insured by the corporation.--No obligation 
     that is insured, guaranteed, or otherwise backed by the 
     Corporation shall be deemed to be an obligation that is 
     guaranteed by the full faith and credit of the United States.
       (B) Special rule.--This paragraph shall not affect the 
     determination of whether such obligation is guaranteed for 
     purposes of Federal income taxes.
       (C) Securities offered by the corporation.--No debt or 
     equity securities of the Corporation shall be deemed to be 
     guaranteed by the full faith and credit of the United States.
       (4) Authority.--To carry out the foregoing purposes and 
     engage in the foregoing activities, the Corporation shall 
     have the usual powers conferred upon a nonprofit corporation 
     under the laws of the State of Delaware.
       (c) Federal Assistance.--The Corporation shall be eligible 
     to receive discretionary grants, contracts, gifts, 
     contributions, or technical assistance from any department or 
     agency of the Federal Government, but only to the extent 
     permitted by law and to the extent necessary to carry out the 
     purpose set forth in subsection (a) and the activities 
     described in subsection (b).
       (d) Status Under Federal Securities Laws.--
       (1) In general.--For purposes of the Securities Act of 
     1933, the Securities Exchange Act of 1934 or the Trust 
     Indenture Act of 1939, the Rail Infrastructure Finance 
     Corporation shall not be considered an agency or 
     instrumentality of the United States or any State or 
     Territory thereof nor an entity described in section 
     3(a)(4) of the Securities Act of 1933 and shall not be 
     entitled to rely on any exemption from those laws. Any 
     security offered or sold or guaranteed by the Rail 
     Infrastructure Finance Corporation may not be offered or 
     sold in reliance on any exemption from registration under 
     the Securities Act of 1933, unless exempted by rule or 
     regulation of the Securities and Exchange Commission. For 
     so long as the Rail Infrastructure Finance Corporation has 
     any securities outstanding, it may not rely on the rules 
     promulgated under the Securities Exchange Act of 1934 to 
     voluntarily terminate or suspend the Rail Infrastructure 
     Finance Corporation's obligations to comply with the 
     reporting requirements of the Securities Exchange Act of 
     1934 with regard to any of its outstanding securities and 
     the provisions of section 15(d)(6) of the Securities 
     Exchange Act of 1934 shall not apply to the Rail 
     Infrastructure Finance Corporation, unless exempted by 
     rule, regulation, or order of the Securities and Exchange 
     Commission.
       (2) Relationship to federal securities laws.--Except as 
     provided in paragraph (1), no provision of this section or 
     any regulation issued by any other Federal agency shall 
     supercede or otherwise affect the application of the Federal 
     securities laws (as such term is defined in section 2(a)(47) 
     of the Securities Exchange Act of 1934) or the rules, 
     regulations, or orders of the Securities and Exchange 
     Commission promulgated under those laws.

     SEC. 506. REPORT TO CONGRESS.

       (a) In General.--On or before May 15 of each year, the Rail 
     Infrastructure Finance Corporation shall submit an annual 
     report for the fiscal year ending on September 30 of the 
     preceding year to the Senate Committee on Commerce, Science, 
     and Transportation and the House of Representatives Committee 
     on Transportation and Infrastructure. The report shall 
     include a comprehensive and detailed report of the 
     Corporation's operations, activities, financial condition, 
     and accomplishments under this title and such recommendations 
     as the Corporation deems appropriate.
       (b) Availability for Testimony.--The officers and directors 
     of the Corporation shall be available to testify before those 
     committees with respect to such report or any other matter 
     which such committees may determine.

     SEC. 507. ADMINISTRATIVE MATTERS.

       (a) Budget.--The Rail Infrastructure Finance Corporation 
     shall establish an annual budget for the Corporation, 
     including the Rail Infrastructure Investment Account under 
     subsection (c).
       (b) Implementation Plan.--
       (1) Requirement for plan.--The Corporation shall conduct a 
     study and prepare a plan on how the Corporation can best 
     achieve the purposes and fulfill the requirements of this 
     title.
       (2) Consultation.--In preparing the plan, the Corporation 
     may consult with representatives of State and local 
     governments, railroads, and other similar entities.
       (3) Other requirements.--The plan, which shall be based on 
     the conclusions resulting from the study conducted under 
     paragraph (1), shall be submitted by the Corporation to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure not later than 180 days after the date on 
     which the Corporation is incorporated. Unless directed 
     otherwise by law, the Corporation shall implement the plan 
     during the first fiscal year beginning after the fiscal year 
     in which the plan is submitted to Congress.
       (c) Rail Infrastructure Investment Account.--
       (1) Establishment.--The Board of Directors for the 
     Corporation shall establish an account to be known as the 
     Rail Infrastructure Investment Account.
       (2) Deposit of bond proceeds.--The Corporation shall 
     deposit the proceeds of sales of any bonds issued under 
     section 54 of the Internal Revenue Code of 1986 into the 
     Account.
       (3) Deposit of non-federal contributions.--The Board shall 
     deposit all non-Federal contributions received into the 
     Account.
       (4) Disbursements.--The Board may make available and may 
     disburse, during the first fiscal year beginning after the 
     date of enactment of this Act and during each succeeding 
     fiscal year thereafter, such funds as may be available for 
     obligation and expenditure from the Account.
       (5) Use of account funds.--Funds in the Account--
       (A) shall be used by the Corporation for investment 
     purposes through the trust established under section 508 to 
     generate an amount sufficient--
       (i) to repay the principal of the bonds at their maturity; 
     and

[[Page S15998]]

       (ii) to pay the administrative costs of the Corporation and 
     the Rail Infrastructure Finance Trust under section 508; and
       (B) shall, to the extent of the net spendable proceeds in 
     the account, be held in the Rail Infrastructure Finance Trust 
     established under section 508 and be available for 
     distribution as grants of financial assistance under title VI 
     of this Act.
       (6) Net spendable proceeds defined.--In this subsection, 
     the term ``net spendable proceeds'', with respect to the Rail 
     Infrastructure Investment Account, means the amount, 
     determined by the Board of Trustees of the Rail 
     Infrastructure Finance Trust, equal to the excess of--
       (A) the total amount in such Account, over
       (B) the amount in such Account that is needed for uses 
     under paragraph (5)(A).
       (d) Records and Audit.--
       (1) In general.--The account of the Corporation shall be 
     audited annually in accordance with generally accepted 
     auditing standards by independent certified public 
     accountants or independent licensed public accountants 
     certified or licensed by a regulatory authority of a State or 
     other political subdivision of the United States. The audits 
     shall be conducted at the place or places where the accounts 
     of the Corporation are normally kept. All books, accounts, 
     financial records, reports, files, and all other papers, 
     things, or property belonging to or in use by the Corporation 
     and necessary to facilitate the audits shall be made 
     available to the person or persons conducting the audits; and 
     full facilities for verifying transactions with the balances 
     or securities held by depositories, fiscal agents and 
     custodians shall be afforded to such person or persons.
       (2) Audit report.--The report of each such independent 
     audit shall be included in the annual report required by 
     section 506. The audit report shall set forth the scope of 
     the audit and include such statements as are necessary to 
     present fairly the Corporation's assets and liabilities, 
     surplus or deficit, with an analysis of the changes therein 
     during the year, supplemented in reasonable detail by a 
     statement of the Corporation's income and expenses during the 
     year, and a statement of the sources and application of 
     funds, together with the independent auditor's opinion of 
     those statements.
       (3) Accounting principles.--Not later than 1 year after the 
     date of the enactment of this Act, the Corporation shall 
     develop accounting principles which shall be used uniformly 
     by all entities receiving funds under this Act, taking into 
     account organizational differences among various categories 
     of such entities. Such principles shall be designed to 
     account fully for all funds received and expended for 
     purposes of this Act by such entities.
       (4) Requirements for recipients.--Each entity receiving 
     funds under this Act shall--
       (A) keep its books, records, and accounts in such form as 
     may be required by the Corporation;
       (B) either--
       (i) undergo an annual audit by independent certified public 
     accountants or independent licensed public accountants 
     certified or licensed by a regulatory authority of a State, 
     which audit shall be in accordance with auditing standards 
     developed by the Corporation; or
       (ii) submit a financial statement in lieu of the audit 
     required by subparagraph (A) if the Corporation determines 
     that the cost burden of such audit on such entity is 
     excessive in light of the financial condition of such entity; 
     and
       (C) furnish biennially to the Corporation a copy of the 
     audit report required pursuant to the subparagraph (B), as 
     well as such other information regarding finances (including 
     an annual financial report) as the Corporation may require.
       (5) Additional recordkeeping.--Any recipient of assistance 
     by grant or contract under this section, other than a fixed 
     price contract awarded pursuant to competitive bidding 
     procedures, shall keep such records as may be reasonably 
     necessary to disclose fully the amount and the disposition by 
     such recipient of such assistance, that total cost of the 
     project or undertaking in connection with which such 
     assistance is given or used, and the amount and nature of 
     that portion of the cost of the projects or undertaking 
     supplied by other sources, and such other records as will 
     facilitate an effective audit.
       (6) Access to records.--The Corporation or any of its duly 
     authorized representatives shall have access to any books, 
     documents, papers, and records of any recipient of assistance 
     for the purpose of auditing and, examining all funds received 
     from the Corporation.
       (7) Public inspection.--The Corporation shall maintain the 
     information described in paragraphs (4), (5), and (6) at its 
     offices for public inspection and copying for at least 3 
     years, according to such reasonable guidelines as the 
     Corporation may issue. This public file shall be updated 
     regularly.

     SEC. 508. RAIL. INFRASTRUCTURE FINANCE TRUST.

       (a) Establishment.--The Board of Directors of the Rail 
     Infrastructure Finance Corporation shall establish the Rail 
     Infrastructure Finance Trust (hereafter in this section 
     referred to as the ``Trust'') as a trust domiciled in the 
     State of Delaware before the issuance of bonds under section 
     505(b). The Trust shall, to the extent not inconsistent with 
     this Act, be subject to the laws of the State of Delaware 
     that are applicable to trusts. The Trust shall manage and 
     invest the assets of the Rail Infrastructure Account 
     described in section 507(c) that are transferred to it by the 
     Board in the manner set forth in this section.
       (b) Not a Federal Agency or Instrumentality.--The Trust is 
     not a department, agency, or other instrumentality of the 
     Government of the United States and shall not be subject to 
     title 31, United States Code.
       (c) Board of Trustees.--
       (1) Establishment.--The Trust shall have a Board of 
     Trustees.
       (2) Composition.--
       (A) Appointment.--The Board of Trustees shall consist of 5 
     members (hereafter in this title referred to as ``Trustees'') 
     3 of whom shall be appointed by a unanimous vote of the Board 
     of Directors of the Rail Infrastructure Finance Corporation.
       (B) Representation of particular interests.--The 3 members 
     of the Board of Trustees shall be selected as follows:
       (i) 1 from among persons who represent the interests of the 
     States.
       (ii) 1 from among persons who represent the interests of 
     freight and passenger railroads.
       (iii) 1 from among persons who represent the interests of 
     holders of qualified rail infrastructure bonds issued by the 
     Rail Infrastructure Corporation.
       (C) The 2 Trustees not appointed under subparagraph (A) 
     shall be elected directly by holders of qualified rail 
     infrastructure bonds issued by the Rail Infrastructure 
     Corporation through procedures established by the Board of 
     Trustees to represent the interests of such bond holders. The 
     election shall be held, and both members elected under this 
     subparagraph shall take office as Trustees, within 1 year 
     after the initial issuance of bonds under section 505(b).
       (3) Members not united states officials.--The members of 
     the Board of Trustees may not be considered officers or 
     employees of the Government of the United States.
       (4) Qualifications.--The Trustees shall be appointed only 
     from among persons who have experience and expertise in the 
     management of financial investments. No member of the Board 
     of Directors of the Rail Infrastructure Finance Corporation 
     is eligible to be a Trustee.
       (5) Terms.--Each member of the Board of Trustees shall be 
     appointed for a 3-year term. Any member whose term has 
     expired may serve until such member's successor has taken 
     office, or until the end of the calendar year in which such 
     member's term has expired, whichever is earlier. A vacancy in 
     the Board of Trustees shall not affect the powers of the 
     Board of Trustees and shall be filled in the same manner as 
     the member whose departure caused the vacancy. Any member 
     appointed to fill a vacancy occurring prior to the expiration 
     of the term for which the member's predecessor was appointed 
     shall be appointed for the remainder of such term.
       (d) Powers.--The Board of Trustees shall--
       (1) establish investment policies, including guidelines, 
     and retain independent advisers to assist in the formulation 
     and adoption of the investment guidelines;
       (2) retain independent investment managers to invest the 
     assets of the Trust in a manner consistent with such 
     investment guidelines;
       (3) invest assets in the Trust, pursuant to the policies 
     adopted in paragraph (1);
       (4) pay administrative expenses of the Trust from the 
     assets in the Trust;
       (5) transfer money to the Rail Infrastructure Investment 
     Account, upon request of the Board of Directors of the Rail 
     Infrastructure Finance Corporation, for bond repayment and 
     administrative expenses; and
       (6) develop a formula, subject to approval by the Board of 
     Directors before the issuance of bonds under section 505(b), 
     for determining when there is a sufficient trust income 
     stream for purposes of paragraph (7); and
       (7) transfer net spendable proceeds to the Board of 
     Directors to be used for grants under title VI of this Act 
     after determining that adequate trust funds are available, or 
     that there is a trust income stream sufficient, to allow the 
     Board of Trustees to meet its obligations under paragraphs 
     (4) and (5).
       (e) Reporting Requirements and Fiduciary Standards.--The 
     following reporting requirements and fiduciary standards 
     shall apply with respect to the Trust:
       (1) Duties of the Board of trustees.--The Trust and each 
     member of the Board of Trustees shall discharge the duties of 
     the Trust and the duties of the Trustee, respectively 
     (including the voting of proxies), with respect to the assets 
     of the Trust solely in the interests of the Rail 
     Infrastructure Finance Corporation and the programs funded 
     under this title--
       (A) for the exclusive purposes of--
       (i) providing sufficient funds to repay qualified rail 
     infrastructure bonds issued by the Rail Infrastructure 
     Finance Corporation,
       (ii) funding the administrative costs of the Rail 
     Infrastructure Finance Corporation;
       (iii) defraying reasonable expenses of administering the 
     Trust; and
       (iv) providing grants for rail capital projects under title 
     VI of this Act; and
       (B) with the care, skill, prudence, and diligence under the 
     circumstances then prevailing that a prudent person acting in 
     a like capacity and familiar with such matters would use in 
     the conduct of an enterprise of a like character and with 
     like aims;
       (C) by diversifying investments so as to minimize the risk 
     of large losses and to avoid disproportionate influence over 
     a particular industry or firm, unless under the

[[Page S15999]]

     circumstances it is clearly prudent not to do so; and
       (D) in accordance with Trust governing documents and 
     instruments insofar as such documents and instruments are 
     consistent with this title.
       (2) Prohibitions with respect to members of the board of 
     trustees.--A member of the Board of Trustees may not--
       (A) deal with the assets of the Trust in the Trustee's own 
     interest or for the Trustee's own account;
       (B) act in an individual or in any other capacity, in any 
     transaction involving the assets of the Trust on behalf of a 
     party (or represent a party) whose interests are adverse to 
     the interests of the Trust and the Rail Infrastructure 
     Finance Corporation; or
       (C) receive any consideration for the Trustee's own 
     personal account from any party dealing with the assets of 
     the Trust.
       (3) Exculpatory provisions and insurance.--Any provision in 
     an agreement or instrument that purports to relieve a Trustee 
     from responsibility or liability for any responsibility, 
     obligation, or duty under this Act shall be void. Nothing in 
     this paragraph shall be construed to preclude--
       (A) the Trust from purchasing insurance for its Trustees or 
     for itself to cover liability or losses occurring by reason 
     of the act or omission of a Trustee, if such insurance 
     permits recourse by the insurer against the Trustee in the 
     case of a breach of a fiduciary obligation by such Trustee;
       (B) a Trustee from purchasing insurance to cover liability 
     under this section from and for his own account; or
       (C) an employer or an employee organization from purchasing 
     insurance to cover potential liability of 1 or more Trustees 
     with respect to their fiduciary responsibilities, 
     obligations, and duties under this section.
       (4) Trustees, bonds.--
       (A) Requirement.--Each Trustee and every person who handles 
     funds or other property of the Trust (hereafter in this 
     section referred to as ``Trust official'') shall be bonded. 
     The bond shall provide protection to the Trust against loss 
     by reason of acts of fraud or dishonesty on the part of any 
     Trust official, directly or through the connivance of others.
       (B) Amount.--The amount of a bond for a Trustee under this 
     paragraph shall be fixed at the beginning of each fiscal year 
     of the Trust by the Board of Directors of the Rail 
     Infrastructure Finance Corporation. The amount may not be 
     less than 10 percent of the amount of the funds 
     administered by the Trust.
       (C) Unlawful conduct.--It shall be unlawful for--
       (i) any Trust official to receive, handle, disburse, or 
     otherwise exercise custody or control of any of the funds or 
     other property of the Trust without being bonded as required 
     by this subsection;
       (ii) any Trust official, or any other person having 
     authority to direct the performance of such functions, to 
     permit such functions, or any of them, to be performed by any 
     Trust official, with respect to whom the requirements of this 
     subsection have not been met; and
       (iii) any person to procure any bond required by this 
     subsection from any surety or other company or through any 
     agent or broker in whose business operations such person has 
     any control or significant financial interest, direct or 
     indirect.
       (f) Administrative Matters.--
       (1) Authority.--The Board of Trustees shall have the 
     authority to make rules to govern its operations, employ 
     professional staff, and contract with outside advisors 
     (including the Rail Infrastructure Finance Corporation) to 
     provide legal, accounting, investment advisory, or other 
     services necessary for the proper administration of this 
     section. In the case of a contract for investment advisory 
     services, compensation for such services may be provided on a 
     fixed fee basis or on such other terms and conditions as are 
     customary for such services.
       (2) Quorum and proceedings.--Three members of the Board of 
     Trustees shall constitute a quorum for the Board to conduct 
     business. Investment guidelines shall be adopted by a 
     unanimous vote of the entire Board of Trustees. All other 
     decisions of the Board of Trustees shall be decided by a 
     majority vote of the quorum present. All decisions of the 
     Board of Trustees shall be entered upon the records of the 
     Board of Trustees.
       (3) Compensation of trustees and employees.--The salaries 
     of the Trustees are subject to the limitations in section 
     502(h).
       (4) Compensation arrangements.--The Board of Trustees may 
     compensate investment advisory service providers and 
     employees of the Trust on a fixed contract fee basis or on 
     such other terms and conditions as are customary for such 
     services.
       (5) Funding.--The expenses of the Trust and the Board of 
     Trustees that are incurred under this section shall be paid 
     from the Trust.
       (g) Audit and Report.--
       (1) Requirement for annual audit.--The Trust shall annually 
     engage an independent qualified public accountant to audit 
     the financial statements of the Trust.
       (2) Annual management report.--The Trust shall submit an 
     annual management report to be included in the annual report 
     of the Corporation required under section 506. The management 
     report under this paragraph shall include the following 
     matters:
       (A) A statement of financial position.
       (B) A statement of operations.
       (C) A statement of cash flows.
       (D) A statement on internal accounting and administrative 
     control systems.
       (E) The report resulting from an audit of the financial 
     statements of the Trust conducted under paragraph (1).
       (F) Any other comments and information necessary to inform 
     Congress about the operations and financial condition of the 
     Trust.
       (h) Enforcement.--The Rail Infrastructure Finance 
     Corporation may commence a civil action--
       (1) to enjoin any act or practice by the Trust, its Board 
     of Trustees, or its employees or agents that violates any 
     provision of this title; or
       (2) to obtain other appropriate relief to redress such 
     violations, or to enforce any provisions of this title.
       (i) Exemption From Tax for Rail Infrastructure Finance 
     Trust.--Subsection (c) of section 501 of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(29) The Rail Infrastructure Finance Trust established 
     under section 408 of the Arrive 21 Act.''Add to Title IV 
     where appropriate:

               TITLE VI--RAIL DEVELOPMENT GRANT PROGRAMS

     SEC. 601. INTERCITY PASSENGER RAIL DEVELOPMENT GRANT PROGRAM.

       (a) Grants to States.--The Board of Directors of the Rail 
     Infrastructure Finance Corporation may, by grant, provide 
     financial assistance to a State, a group of States, or the 
     National Railroad Passenger Corporation for, or in 
     connection with, 1 or more intercity passenger rail 
     capital projects that--
       (1) in accordance with section 22504(a)(5) of title 49, 
     United States Code, are listed in a State rail plan approved 
     for such State under chapter 225 of such title; and
       (2) as determined by the Board, would primarily benefit 
     intercity passenger rail infrastructure or services or the 
     development of passenger rail corridors (including high-speed 
     rail corridors designated by the Secretary under section 
     104(d) of title 23, United States Code) and provide 
     significant public benefits.
       (b) Purposes Eligible for Grant Funding.--The purposes for 
     which grants may be made under subsection (a) for, or in 
     connection with, an intercity passenger rail capital project 
     described in that subsection are as follows:
       (1) Planning, including activities described in section 
     26101(b)(1) of title 49, United States Code, and 
     environmental impact studies.
       (2) New rail line development, including right of way and 
     infrastructure acquisition and construction of track and 
     facilities.
       (3) Track upgrades and restoration.
       (4) Highway-rail grade crossing improvement or elimination.
       (5) Track, infrastructure, and facility relocation.
       (6) Acquisition, financing, or refinancing of locomotives 
     and rolling stock.
       (7) Intermodal and station facilities.
       (8) Tunnel and bridge repair or replacement.
       (9) Communications and signaling improvements.
       (10) Environmental impact mitigation.
       (11) Security improvements.
       (12) Supplemental funding for direct loans or loan 
     guarantees made under title V of the Railroad Revitalization 
     and Regulatory Reform Act of 1976 (45 U.S.C. 821 et seq.).
       (13) Payment of credit risk premiums, to lower rates of 
     interest, or to provide for a holiday on principal payments 
     on loan or financing directly associated with rail capital 
     projects described in paragraphs (1) through (11).
       (c) Project Selection Criteria.--The Board, in selecting 
     the recipients of financial assistance to be provided under 
     subsection (a), shall--
       (1) require that each proposed project meet all safety 
     requirements that are applicable to the project under law, 
     and give a preference to any project determined by the Board 
     as having provided for particularly high levels of safety;
       (2) give preference to projects with high levels of 
     estimated ridership, increased ontime performance, reduced 
     trip time, additional service frequency, or other significant 
     service enhancements as measured against minimum standards 
     developed under section 415 of this Act;
       (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 a general balance across geographic regions of 
     the United States in providing such assistance and avoid a 
     concentration of a disproportionate amount of such financial 
     assistance in a single project, State, or region of the 
     country;
       (5) encourage projects that also improve freight or 
     commuter rail operations;
       (6) ensure that each project is compatible with, and is 
     operated in conformance with--
       (A) plans developed pursuant to the requirements of 
     sections 135 of title 23, United States Code;
       (B) State rail plans under chapter 225 of title 49, United 
     States Code; and
       (C) the national rail plan (if it is available); and
       (8) 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 have significant environmental benefits.

[[Page S16000]]

       (C) 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.
       (D) Projects with positive economic and employment impacts.
       (E) Projects that encourage the use of positive train 
     control technologies.
       (F) 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.
       (G) Projects that involve donated property interests or 
     services.
       (H) Projects that enhance national security.
       (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 an approved State rail plan's 
     ranked list of priority freight and passenger rail capital 
     projects developed under section 22504(a)(5) of title 49, 
     United States Code, or may submit an independent application 
     for a grant for any eligible project under this section. Any 
     such independent grant request shall be subject to the same 
     selection criteria as apply under subsection (b) to projects 
     of States, except the criteria set forth in subsection (a) 
     (1) and subparagraphs (A) and (B) of subsection (b)(12).
       (e) Limitations.--
       (1) 2-year availability.--If any amount provided as a grant 
     to a State or the National Railroad Passenger Corporation 
     under this section is not obligated or expended for the 
     purposes described in subsection (a) or (b) within 2 years 
     after the date on which the State or Corporation received the 
     grant, such sums shall be returned to the Board for other 
     intercity passenger rail development projects under this 
     section at the discretion of the Board.
       (2) Single project amount.--In awarding grants to States or 
     the National Railroad Passenger Corporation for eligible 
     projects under this section, the Board shall limit the amount 
     of any grant made for a particular project in a fiscal year 
     to not more than 30 percent of the total amount of the funds 
     available for grants under this section for that fiscal year.
       (3) Amtrak.--The total amount of grants made under this 
     section solely to the National Railroad Passenger Corporation 
     in a fiscal year may not exceed 50 percent of the total 
     amount available under this section for all grants in that 
     fiscal year.
       (f) Funding.--Amounts reserved for grants for a fiscal year 
     under section 606(b)(1) shall be available for grants under 
     this section.
       (e) Public benefit.--The term ``public benefit'' 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.

     SEC. 602. FREIGHT RAIL INFRASTRUCTURE DEVELOPMENT GRANT 
                   PROGRAM.

       (a) Grants to States.--The Board of Directors of the Rail 
     Infrastructure Finance Corporation shall, by grant, provide 
     financial assistance to a State or group of States--
       (1) for, or in connection with, 1 or more freight rail 
     capital projects that--
       (A) in accordance with section 22504(a)(5) of title 49, 
     United States Code, are listed in a State rail plan approved 
     for such State under chapter 225 of such title; and
       (B) as determined by the Board, would primarily benefit 
     freight rail transportation infrastructure or services, but 
     also would provide significant public benefits; or
       (2) for the payment of staff expenses associated with the 
     management of State rail programs and the development and 
     updating of State rail plans under chapter 225 of title 49, 
     United States Code.
       (b) Purposes Eligible for Grant Funding.--The purposes for 
     which grants may be made under subsection (a)(1) for, or in 
     connection with, a freight rail capital project are as 
     follows:
       (1) Planning, including activities described in section 
     26101(b)(1) of title 49, United States Code, and 
     environmental impact studies.
       (2) New rail line development, including infrastructure 
     acquisition and construction of track and facilities.
       (3) Track upgrades and restoration.
       (4) Highway-rail grade crossing improvement or elimination.
       (5) Track, infrastructure, and facility relocation.
       (6) Intermodal facilities.
       (7) Tunnel and bridge repair or replacement.
       (8) Communications and signaling improvements.
       (9) Environmental impact mitigation.
       (10) Security improvements.
       (11) Supplemental funding for direct loans or loan 
     guarantees made under title V of the Railroad Revitalization 
     and Regulatory Reform Act of 1976 (45 U.S.C. 821 et seq.) 
     for projects described in the last sentence of section 
     502(d) of that Act (45 U.S.C. 822(d)).
       (12) Payment of credit risk premiums, to lower rates of 
     interest, or to provide for a holiday on principal payments 
     on loan or financing directly associated with capital 
     projects described paragraphs (1) through (9).
       (c) State Grant Funding Formula.--Of the total amount 
     reserved for a grant program under section 606(b)(2) for a 
     fiscal year, there shall be reserved for each State (to fund 
     grants made to such State under this section) the amount 
     determined for such State in accordance with a formula 
     prescribed by the Board to weigh equally for each State--
       (1) the number of rail miles in active use in the State;
       (2) the number of rail cars loaded in the State;
       (3) the number of rail cars unloaded in the State; and
       (4) the number of railroad and public road grade crossings 
     in the State.
       (d) Period of Availability for Grants.--
       (1) Three-year reservation.--The amount reserved for grant 
     to a State under section (c) in a fiscal year shall be 
     available for grant to such State in such fiscal year and the 
     2 successive fiscal years.
       (2) Cancellation at end of period.--At the end of the third 
     of the 3 successive fiscal years, the reservation of any part 
     of the amount for a State that has not been awarded in a 
     grant to such State shall be canceled, and the amount of the 
     canceled reservation--
       (A) shall be merged with the funds reserved for the grant 
     program under section 606(b)(2) for the next fiscal year; and
       (B) shall be reserved for each State in accordance with the 
     formula provided under this section.
       (e) Two-Year Availability.--If any amount provided as a 
     grant to a State under this section is not obligated or 
     expended for the purposes described in subsection (a) or (b) 
     within 2 years after the date on which the State received the 
     grant, such sums shall be returned to the Board for other 
     freight rail capital projects under this section at the 
     discretion of the Board.

     SEC. 603. HIGH PRIORITY PROJECTS GRANT PROGRAM.

       (a) Grants to States.--The Board of Directors of the Rail 
     Infrastructure Finance Corporation may, by grant, provide 
     financial assistance to a State, a group of States, or the 
     National Railroad Passenger Corporation for intercity 
     passenger rail and freight rail infrastructure development 
     projects that are designated as high priority projects under 
     section 22505 of title 49, United States Code.
       (b) Purposes.--The purposes for which a grant may be made 
     under this section are--
       (1) in the case of an intercity passenger rail corridor 
     development project, the same purposes as are provided under 
     section 601; and
       (2) in the case of a freight rail infrastructure 
     development project, the same purposes as are provided under 
     section 602.
       (c) Preferred Projects.--In selecting the projects to 
     receive financial assistance under this section, the Board 
     shall give preference to a project that--
       (1) provides for use of positive train control 
     technologies;
       (2) provides for particularly high levels of safety;
       (3) increases intermodal connectivity by providing or 
     improving direct connections between rail facilities and 
     other modes of transportation;
       (4) assists the Board--
       (A) to achieve a general balance across geographic regions 
     of the United States in the awarding of grants under this 
     section; and
       (B) to avoid a concentration of a disproportionate amount 
     of such financial assistance in a single project, State, or 
     region of the country;
       (5) has a significant favorable impact on highway, 
     aviation, or maritime capacity, congestion, or safety;
       (6) improves the national intercity passenger rail system 
     through higher levels of estimated ridership, reduced trip 
     time, increased ontime performance, additional service 
     frequency, or other significant service enhancements as 
     measured against minimum standards developed under section 
     415 of this Act;
       (7) has positive economic and employment impacts;
       (8) has significant environmental benefits;
       (9) is--
       (A) at the stage of preparation that all pre-commencement 
     compliance with environmental protection requirements has 
     been completed; and
       (B) ready to be commenced;
       (10) has received financial commitments and other support 
     from non-Federal entities such as States, local governments, 
     and private entities;
       (11) has commitments of funding from nonFederal Government 
     sources in a total amount that exceeds the minimum amount of 
     the non-Federal contribution required; and
       (12) involves donated property interests or services.
       (d) Amtrak Eligibility.--To receive a grant under this 
     section, the National Railroad Passenger Corporation may 
     submit an independent application or may enter into a 
     cooperative agreement with 1 or more States to carry out 1 or 
     more high priority projects designated under section 22506 of 
     title 49, United States Code. Any such independent grant 
     request shall be subject to the same conditions as apply 
     under this section to projects of States.
       (e) Limitations.--
       (1) Two-year availability.--If any amount provided as a 
     grant to a State or the National Railroad Passenger 
     Corporation under

[[Page S16001]]

     this section is not obligated or expended for the purposes 
     for which the grant is made within 2 years after the date on 
     which the State or the National Railroad Passenger 
     Corporation received the grant, such sums shall be returned 
     to the Board for other high priority projects under this 
     section at the discretion of the Board.
       (2) Single project amount.--In awarding grants to States 
     for eligible projects under this section, the Board shall 
     limit the amount of any grant made for a particular project 
     in a fiscal year to not more than 30 percent of the total 
     amount of the funds available for grants under this section 
     for that fiscal year.
       (f) Funding.--Amounts reserved for grants for a fiscal year 
     under section 606(b)(3) shall be available for grants under 
     this section.

     SEC. 604. GRANT PROGRAM REQUIREMENTS AND LIMITATIONS.

       (a) Authorized Uses.--The proceeds of a grant made for a 
     project under this title may be used to defray the costs of 
     the project or to reimburse the recipient for costs of the 
     project paid by the recipient.
       (b) Non-Federal Contribution.--The proceeds of a grant 
     under this title may be released upon receipt by the Board of 
     Directors of the Rail Infrastructure Finance Corporation of 
     cash payment by a non-Federal Government source, or 1 or more 
     such sources jointly, in an amount not less than the amount 
     equal to 20 percent of the amount of the grant disbursed. The 
     cash payment may not be derived, directly or indirectly, from 
     Federal funds. Amounts received under this subsection shall 
     be credited to the Rail Infrastructure Investment Account 
     established under section 507(e).
       (c) Preference Involving Donated Property Interests and 
     Services.--In selecting projects for grant funding under this 
     title, the Board may give preference to projects that involve 
     donated right-of-way, property, or in-kind services by a 
     public sector or private sector entity. The value of a 
     donation under this subsection may not be counted toward 
     satisfaction of the requirement in subsection (b).
       (d) Flexibility.--Notwithstanding any other provision of 
     this title, amounts made available under section 506 may be 
     combined and used for projects that significantly benefit 
     either freight rail service, intercity passenger rail 
     service, or both.
       (e) Suballocation; 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 Board.
       (3) Sub-allocation.--A State may allocate funds under this 
     section to any entity described in paragraph (1).
       (f) Special Transportation Circumstances.--In carrying out 
     this section, the Board shall allocate an appropriate portion 
     of the amounts available under section 601 or 602 to provide 
     appropriate transportation-related assistance in any State in 
     which the rail transportation system--
       ``(1) is not physically connected to rail systems in the 
     continental United States; and
       ``(2) may not otherwise qualify for assistance under 
     section 601 or 602 due to the constraints imposed on the 
     railway infrastructure in that State due to the unique 
     characteristics of the geography of that State or other 
     relevant considerations, as determined by the Board.
       (g) Applications.--To seek a grant under this title, a 
     State or, in the case of a grant under section 601 or 603, 
     the National Railroad Passenger Corporation shall submit an 
     application for the grant to the Board. The application shall 
     be submitted at such time and contain such information as the 
     Board requires.
       (h) Procedures for Grant Award.--The Board 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 procedures shall include the execution of a grant 
     agreement between the applicant and the Board. The Board 
     shall issue a final rule establishing the procedures not 
     later than 90 days after the date on which a sufficient 
     number of the members of Board to constitute a quorum has 
     taken office.
       (i) 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 Board 
     may exempt a recipient from the requirements of this 
     subsection if the Board 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.

     SEC. 605. STANDARDS AND CONDITIONS.

       (a) Operators Deemed Rail Carriers and Employers for 
     Certain Purposes.--A person that con ducts rail operations 
     over rail infrastructure constructed or improved with funding 
     provided in whole or in part in a grant made under this title
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       (2) shall be considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).
       (b) Grant Conditions.--The Board of Directors of the Rail 
     Infrastructure Finance Corporation shall require as a 
     condition of making any grant under this title that includes 
     the improvement or use of rights-of-way owned by a railroad 
     that--
       (1) a written agreement exist between the applicant and the 
     railroad regarding such use and owner ship, 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; and
       (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
       (2) the applicant agrees to comply with--
       (A) the standards of section 24312 of title 49, United 
     States Code, 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 that 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 the Rail Infrastructure Finance 
     Corporation.
       (c) 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 another entity as 
     of such date shall enter into an agreement with the 
     authorized bargaining agent or agents for employees of the 
     predecessor provider that--
       (A) gives each 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 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

[[Page S16002]]

     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 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.
       (d) Inapplicability to Certain Rail Operations.--Nothing in 
     this section applies to--
       (1) commuter rail passenger transportation (as defined in 
     section 24102(4) of title 49, United States Code) operations 
     of a State or local government authority (as those terms are 
     defined in section 5302(11) and (6), respectively, of that 
     title) eligible to receive financial assistance under section 
     5307 of that title, or to its contractor performing services 
     in connection with commuter rail passenger operations (as so 
     defined); or
       (2) the Alaska Railroad or its contractors.
       (3) The National Railroad Passenger Corporation's access 
     rights to railroad rights of way and facilities under current 
     law for projects funded under this title where train 
     operating speeds do not exceed 79 miles per hour.

     SEC. 606. GRANT PROGRAM FUNDING.

       (a) Annual Reservation of Funds.--Each fiscal year, the 
     Board of directors of the Rail Infrastructure Finance 
     Corporation Board shall reserve for grants under each of the 
     grant programs authorized under sections 501, 502, and 503 
     the amount determined by multiplying the percent applicable 
     to the program under subsection (b) times the amount of the 
     net spendable proceeds (as defined under section 507(c)(7)) 
     that is available for such fiscal year.
       (b) Applicable Percent.--The percent applicable to a grant 
     program under subsection (a) is as follows:
       (1) Intercity passenger rail development grant program.--
     For the intercity passenger rail development grant program 
     under section 601, 40 percent.
       (2) Freight infrastructure development grant program.--For 
     the freight infrastructure development grant program under 
     section 602, 40 percent.
       (4) High priority projects grant program.--For the high 
     priority projects grant program under section 603, 20 
     percent.

               TITLE VII--AUTHORIZATION OF APPROPRIATIONS

     SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated $5,000,000 for 
     fiscal year 2004 for the establishment and payment of initial 
     administrative costs of the Rail Infrastructure Finance 
     Corporation, including the Rail Infrastructure Finance Trust.
  Mr. CARPER. Mr. President, I rise today to join Senators Hollings, 
Collins, Specter, Jeffords and Lautenberg in introducing ``ARRIVE 21,'' 
the American Railroad Revitalization, Investment, and Enhancement Act 
of the 21st Century. ARRIVE 21 is a comprehensive proposal that creates 
a new public/private partnership to fund rail infrastructure 
development, reauthorizes and improves Amtrak, and enhances Federal and 
State rail policy and planning efforts.
  As our Nation faces a mobility crisis of staggering proportions, with 
freight movements expected to double and our highways and airways 
already overburdened with congestion, ARRIVE 21 will give our States a 
new and powerful tool to unlock the potential of intercity passenger 
rail, bringing high-speed rail to viable corridors across the country 
while providing capital funding for freight rail projects that deliver 
public benefits. Today's passenger and freight railroads are already 
essential components of our surface transportation system and I believe 
that greater use of rail offers one of the best opportunities to 
augment the capacity of our existing transportation network, while 
benefiting the environment and reducing our dependency on foreign oil.
  Historically, railroads have been built, maintained and operated 
outside of the publicly funded programs that finance our other 
transportation modes, relying almost exclusively on the private sector 
to fund their infrastructure. However, today's railroads face 
restricted access to capital and capacity constraints that limit 
service quality and expansion, all the while facing ever-growing modal 
competition financed by federally funded trust funds. If rail is to 
remain viable or increase its share of the intercity passenger and 
freight markets--necessary developments if we are to reach other 
transportation and public policy goals including highway infrastructure 
preservation, highway and air congestion relief, energy efficiency, 
environmental stewardship and smart growth development--then the pubic 
sector, through arm's length voluntary partnerships with private 
railroads, must play a more active role in financing the development of 
freight and passenger rail infrastructure, as it has with all other 
modes.
  Today, America's freight railroads carry 16 percent of the nation's 
freight by tonnage and intercity passenger rail carriers roughly 23 
million passenger annually. But, the ability of our passenger and 
freight rail systems to generate the sufficient investment capital 
needed to maintain this market share, or expand it to handle the 
expected increases in passenger and freight traffic over the next 20 
years, is limited or in jeopardy. According to the America Association 
of State Highway and Transportation Officials' (ASSHTO) ``Freight Rail 
Bottom Line Report,'' the nation's freight railroads will need an 
additional $2.65 billion of public sector annual capital investment 
over the next 20 years above and beyond what they can finance 
themselves just to maintain their current share of the freight tonnage.
  Without this additional investment, freight traffic is likely to 
shift from rail to our highways, resulting in an additional 450 million 
tons of freight and 15 billion truck VMT (Vehicle Miles Traveled) on 
our roads and $162 billion in increased shipper costs, $238 billion in 
increased highway user costs, and approximately $20 billion in direct 
additional highway infrastructure costs. Alternatively, ASSHTO has 
concluded that with a public investment of $4 billion annually in 
freight rail infrastructure over the next 20 years, freight rail's 
tonnage share would increase 1 percentage point to 17 percent. This 
shift would thereby relieve our highways of an estimated 600 million 
tons of freight traffic and 25 billion VMT, while saving shippers $239 
billion and highways users $397 billion, and reducing direct highway 
infrastructure costs by $17 billion.
  For intercity passenger rail, ASSHTO similarly concludes that roughly 
$3 billion in annual public sector investment over the next 20 years is 
needed to expand intercity passenger rail services and advance the many 
viable high speed rail corridors that could reduce highway and aviation 
congestion. The Texas Transportation Institute's ``2003 Urban Mobility 
Report,'' which looks at transportation mobility in 75 cities of 
varying sizes, concludes that the average annual transportation delay 
time per person climbed from ``16 hours in 1982 to 60 hours in 2001'' 
due to the congestion of our surface system.
  High-quality and high-speed intercity passenger service, especially 
in intercity corridors of 500 miles or less where rail can offer 
competitive trip times, offers a tremendous opportunity to relieve such 
congestion by shifting travelers who current drive and fly onto trains. 
Today, roughly 80 percent off all trips of more than 100 miles are less 
than 500 miles in length. Successful rail corridors in California, the 
Pacific Northwest, and in the Northeast have shown that rail can be 
viable option for travelers in such markets, capturing significant 
market share and in same cases becoming the dominate mode when frequent 
and high-quality service

[[Page S16003]]

is offered. Where intercity passenger rail is successful, congestion in 
our airports and on our highways is reduced, smart development is 
induced, jobs are created and citizens' safety and quality of life are 
improved.
  Theses facts lead to the obvious conclusion that leveraging modest 
public investment in our rail system will reap benefits to our entire 
surface transportation system and to our Nation as a whole. In my State 
of Delaware, we have clearly seen the value that high-quality passenger 
and freight rail service brings and we have made significant 
investments to upgrade both Amtrak facilities and infrastructure and 
enhance freight capacity for the railroads that serve Delaware 
industries. But despite of all the good reasons to invest in our 
railroad infrastructure, Delaware and other States are limited in what 
they can do on there own without the benefit of the financing 
partnership that our Federal Government provides the State for all 
other transportation investments. ARRIVE 21 is designed to change that.
  ARRIVE 21 will empower our States to make rational investments in our 
rail system when such investments provide significant pubic benefits. 
Through the creation of the Rail Infrastructure Finance Corporation 
(RIFCO) a non-profit, non-Federal, congressionally-chartered 
corporation that can issue $30 billion in tax-credit bonds over 6 
years, States will have a new partner to assist them in undertaking 
rail capital projects. RIFCO will award, using a portion of the 
proceeds from the bond issuance, discretionary capital matching grants 
to States and Amtrak for high-speed rail and intercity passenger rail 
projects and State formula matching grants for freight capital 
projects. Prior to issuing grants, a portion of the bond proceeds will 
be deposited in a secure and continually monitored repayment fund 
managed by the RIFCO investment trust to retire the debt over the life 
of the bonds.
  Passenger and freight rail projects eligible for funding through 
RIFCO include planning and environmental review, rail line 
rehabilitation, upgrades and development, safety and security projects, 
passenger equipment acquisition, station improvements, and intermodal 
facilities development. In order to receive grants, States must prepare 
a State rail plan and provide a 20 percent non-Federal match to RIFCO, 
thereby replicating the cost sharing relationship our States currently 
have for investments in other modes.
  ARRIVE 21 will promote jobs and economic growth through the 
rehabilitation and expansion of rail infrastructure, the manufacture 
and procurement of new rail equipment and the enhancement of mobility 
and development in and around or cities and towns. Our bill provides a 
total $42 billion investment in U.S. rail infrastructure and service to 
expand high-speed passenger rail in congested corridors, strengthen 
Amtrak, and improve freight mobility. Such investment will revitalize 
the U.S. rail supply industry and create thousands of jobs. According 
to U.S. Transportation Secretary Mineta, every $1 billion invested in 
transportation infrastructure creates roughly 47,500 jobs. That means 
ARRIVE 21 stands to create roughly 2 million jobs, if enacted.
  ARRIVE 21 reauthorizes and reforms Amtrak. Designed to improve upon 
Amtrak's current congressional and State funding processes, our bill 
authorizes approximately $1.5 billion annually for 6 years to Amtrak 
for the basic capital and operating needs required to run and maintain 
the current system. In addition to these funds, the States and Amtrak 
can pursue major capital improvements and equipment acquisition through 
RIFCO, with reductions in Amtrak's capital authorizations for projects 
funded through RIFCO capital grants. Through this process, the amount 
needed for annual Amtrak appropriation for capital will be reduced over 
the life of the reauthorization, as RIFCO begins to finance a growing 
share of Amtrak's capital needs. As is the case today, operating costs 
on long distance trains will be covered by Amtrak's annual 
appropriation, while States will share the costs with Amtrak for 
operations of short distance corridors.
  For such shot distance corridors, ARRIVE 21 infuse fairness into the 
current system by requiring parity between Amtrak and all States for 
cost sharing, putting an end to disparate treatment among the States 
that contract with Amtrak to provide corridor service. Furthermore, it 
authorizes a study of new methodologies to determine Amtrak routes and 
services while defining the national passenger rail system based on 
existing service and high-speed rail corridors. ARRIVE 21 also requires 
a whole host of new reforms including accounting transparency measures, 
the establishment of a quarterly grant process for Amtrak through the 
U.S. Department of Transportation to ensure accountability, and the 
creation of new service metrics that will improve the monitoring and 
quantification of Amtrak service performance and quality.
  ARRIVE 21 helps to coordinate rail-planning efforts across the U.S. 
at the national and State level and increases the Federal Railroad 
Administration's advocacy role in promoting a safe, secure, efficient, 
environmentally sound rail transportation system nationwide. The bill 
directs the Federal Government to develop a national rail plan in 
coordination with State rail plans and creates a rail cooperative 
research program through the National Academies of Sciences. It also 
authorizes additional funds for planning of high-speed rail projects 
through the U.S. Secretary of Transportation and addresses rail safety 
needs by authorizing funding for emergency passenger safety improvement 
projects. In light of the security risks facing our railroads, ARRIVE 
21 authorizes $515 million in 2004 for rail security threat assessments 
and grants through the Department of Homeland Security.
  In total, ARRIVE 21 provides the needed funding for the more than $5 
billion annual shortfall in U.S. rail infrastructure investment cited 
by AASHTO Bottom Line Report without involving the Highway Trust Fund 
or sapping funds away from other important transportation priorities. 
This bill will provide our States and the Nation with a fiscally 
responsible and innovative opportunity to enhance our entire 
transportation system. We owe it to the American people to support this 
bill and move towards the type of high-quality, high-speed intercity 
passenger rail service that Americans desire and deserve, while meeting 
the ever-growing demands that trade and our economy are placing on our 
freight system. I ask my colleagues to join me in supporting ARRIVE 21.
  Mr. JEFFORDS. Mr. President, I have frequently reiterated my 
conviction that investment in transportation is a means to an end. Our 
national transportation policy must be designed to serve the public 
good. In my view, the outcomes we seek are a strong economy, safe and 
healthy communities, and a clean environment. A balanced transportation 
system, including a strong freight and passenger rail system, is 
necessary for us to attain these goals.
  As ranking member of the Committee on Environment and Public Works, I 
have been highly involved in the Senate's effort to reauthorize the 
nation's surface transportation program. Over the past two years, I 
have traveled around the country, visiting local examples of national 
transportation challenges. I have heard critiques and suggestions from 
dozens of transportation officials, users, and advocates.
  In order to best serve the needs of this country, we must redouble 
our investment in an efficient, intermodal transportation system. I 
have often expressed my view that the success of our surface 
transportation program rests on four fundamental `pillars':
  First, asset management. We must maintain and preserve existing 
infrastructure. Second, we must enhance access and mobility, 
particularly for Americans living in our most congested urban areas.
  The third pillar is freight and trade. We need new and improved 
facilities to accommodate the quantity of goods moving through our 
system.
  Fourth, I believe that rail is the final component of a successful 
surface transportation system. We are not currently meeting the 
nation's freight and passenger rail needs. We must invest in a modern 
national rail system, comparable to our highway and aviation systems. 
The bill that we are introducing today will help us achieve that goal.
  The American Railroad Revitalization, Investment, and Enhancement

[[Page S16004]]

Act of the 21st Century (ARRIVE 21) strives to provide sustainable, 
meaningful, and continuous funding opportunities for states that want 
to improve and expand their rail systems. Currently, the federal 
government provides few funding sources to assist states in their 
efforts to maintain and improve freight and passenger rail service. 
This bill creates a nonprofit, public-private partnership--the Rail 
Infrastructure Finance Corporation (RIFCO)--with the authority to issue 
$30 billion in tax-credit bonds over six years. With the resulting 
revenue, RIFCO will award capital grants to states and to Amtrak.
  My State of Vermont has long displayed a commitment to maintaining an 
effective and efficient freight and passenger rail system. This 
legislation would provide Vermont a significant new source of revenue 
to fund capital projects such as rail line rehabilitation, safety and 
security projects, and development of intermodal facilities. In fact, 
grants awarded by RIFCO could be used to reimburse States for the 
capital investments they've already made, a provision that is 
particularly helpful to States, like Vermont, that have invested State 
money into eligible projects.
  For Amtrak, this legislation introduces financial and policy 
commitments to dramatically improve passenger rail service in this 
country. We envision a future that includes a healthy and efficient 
passenger rail system and provide the resources to move Amtrak in that 
direction.
  ARRIVE 21 authorizes approximately $1.5 billion per year, for six 
years, for capital and operating expenses. We have under-funded Amtrak 
for too long. This funding level will provide Amtrak the resources it 
needs to address urgent infrastructure needs and system-wide service 
improvements.
  Amtrak will also benefit from provisions in this bill that encourage 
long-term sustainability and enhanced operations. ARRIVE 21 requires 
improved accounting procedures and oversight. Additionally, states that 
currently share responsibility with Amtrak for supporting services 
through or within their states will see changes to equalize their cost 
burden. This bill requires that Amtrak, in collaboration with the 
Department of Transportation, adopt fair and uniform standards for cost 
sharing on short-distance services that states contract with Amtrak to 
provide.
  ARRIVE 21 also directs an independent study to research Amtrak's 
current and past procedures for determining intercity passenger rail 
routes and services. The study will recommend changes to that process 
to improve the efficiency, accessibility, and effectiveness of our 
national rail service.
  I have long been a strong advocate for rail. I firmly believe that 
nation-wide investment in freight and passenger rail infrastructure 
will invite rewards in the form of reduced congestion, improved 
environmental quality, and improved mobility options for our nation's 
travelers. ARRIVE 21 encourages States, and the Federal Government, to 
more fully integrate freight and passenger rail into the surface 
transportation system. Improved rail planning policy, at both the 
Federal and State levels, will enhance the efficiency and longevity of 
our transportation system and will promote safe, efficient, and 
environmentally sound transportation options.
  Mr. LAUTENBERG. Mr. President, I am proud to be a cosponsor of 
ARRIVE-21. I believe rail is a vital component of our national 
transportation system, and investment in our Nation's rail 
infrastructure is necessary for our economy, our security, and the 
effective and safe movement of people and goods in our country.
  The importance of rail service became apparent in the Northeast long 
ago, as we dealt with the myriad transportation planning and congestion 
issues that many other States are now just facing. These States are 
joining us Northeasterners in looking to the Federal Government to 
provide the leadership needed to ensure that passenger rail is given 
the priority it deserves.
  It took Federal money, not just gasoline taxes, to build the Dwight 
D. Eisenhower Interstate Highway System. It took Federal money to build 
our national aviation system.
  Here in the Northeast, the first part of the country to become 
densely populated, we faced congestion problems long ago, and passenger 
rail service became a mainstay. In the Northeast, we rely heavily on 
Amtrak's high-speed service between Boston and Washington, D.C. The 
Northeast Corridor serves cities with four of the Nation's seven most 
congested airports: Logan, LaGuardia, Newark, and Reagan National. 
Amtrak carries more passengers between New York and Washington than all 
of the airlines combined and, unlike airline passengers, rail travelers 
are able to stop in Trenton and Newark, New Jersey, and in other places 
along the way.
  Next month, New Jersey Transit will open for service a new rail 
station in Secaucus, NJ. As a result of this opening, more than 15,000 
cars will be diverted from our roads each day by 2010. That will reduce 
carbon monoxide emissions by nearly 277,000 pounds each year. New 
Jersey riders who switch to rail because of this one station will cut 
their gasoline consumption by 1.3 million gallons each year.
  Also, in this post-9-11 environment we have a new perspective about 
the national security interest in ensuring that there is more than one 
way to get from here to there, and this includes passenger rail. 
September 11 underscored just how important passenger rail is to 
America's economy and security.
  New Jersey's economy is so dependent on passenger rail and mass 
transit as a result of being the most densely populated State in the 
Nation. New Jersey needs federal assistance for passenger rail 
infrastructure. But New Jersey is not alone. As metropolitan areas 
across the country continue to swell with people, our roads and 
airports become more and more congested. I think the prudence of 
increasing our investment in another way to move people--passenger 
rail--has become more and more obvious. And ARRIVE-21 provides this 
investment opportunity.
  The benefits of rail service are not limited to urban areas. In rural 
towns across America, passenger trains may be the only option for 
intercity travel for many people.
  From 1987 through 2000, I was the Chairman or Ranking Member of the 
Senate Appropriations Subcommittee on Transportation. During that time, 
I helped to secure 10.3 billion dollars in operating funds for AMTRAK 
and an additional 2.2 billion dollars in tax-advantaged financing for 
capital improvements. Unfortunately, during that time, we have not been 
able to make the capital investments necessary to bring Amtrak's 
infrastructure up to a state of good repair.
  ARRIVE-21 gives the Federal Government the impetus to step up and 
take charge with a strong program to invest in our rail infrastructure. 
The States are interested, the traveling public is interested. This 
kind of investment will lay the tracks for the future of all Americans 
to have travel options, provide a national security role, and support 
our economy.
  For these reasons, I am proud to cosponsor ARRIVE-21.
                                 ______