[Congressional Record Volume 153, Number 162 (Wednesday, October 24, 2007)]
[Senate]
[Pages S13323-S13354]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2007

  Mr. REID. Mr. President, we are going to move to the Amtrak bill. 
There is an understanding that I have with Senator Lott that a number 
of Members on the Republican side want to be able to have a little 
extra time to do some amendments dealing with this bill. There are no 
games being played with this legislation. This is something which is 
long overdue, and we want to complete this.
  I ask unanimous consent that the Senate now proceed to consideration 
of Calendar No. 158, S. 294, the Amtrak authorization measure.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. REID. Mr. President, let me say this. We have a lot to do here. 
For people who are concerned with why we haven't been doing things this 
afternoon, it takes time getting things done, and I appreciate that. 
This is a bipartisan effort to move forward on this legislation. It is 
something I think we can do. There is no effort to do anything other 
than get a bill passed.
  I have had a conversation with Senator Lott and with two other 
Republican Senators, and we have agreements with what we have talked 
about with them. It is a gentleman's agreement, but we will live up to 
it on our side.
  Mr. President, there will be no more votes today. We hope there will 
be a good debate on this important issue today and hope there will be 
some amendments offered tomorrow and Friday.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 294) to reauthorize Amtrak, and for other 
     purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Commerce, Science and 
Transportation, with amendments, as follows:
  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italic.)

                                 S. 294

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Passenger Rail Investment 
     and Improvement Act of 2007''.

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

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

     SEC. 3. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

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

                        TITLE I--AUTHORIZATIONS

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

          TITLE II--AMTRAK REFORM AND OPERATIONAL IMPROVEMENTS

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

               TITLE III--INTERCITY PASSENGER RAIL POLICY

Sec. 301. Capital assistance for intercity passenger rail service.
Sec. 302. State rail plans.
Sec. 303. Next generation corridor train equipment pool.
Sec. 304. Federal rail policy.
Sec. 305. Rail cooperative research program.

             [TITLE IV--PASSENGER RAIL SECURITY AND SAFETY

Sec. 400. Short title.
Sec. 401. Rail transportation security risk assessment.
Sec. 402. Systemwide Amtrak security upgrades.
Sec. 403. Fire and life-safety improvements.
Sec. 404. Freight and passenger rail security upgrades.
Sec. 405. Rail security research and development.
Sec. 406. Oversight and grant procedures.
Sec. 407. Amtrak plan to assist families of passengers involved in rail 
              passenger accidents.
Sec. 408. Northern border rail passenger report.

[[Page S13324]]

Sec. 409. Rail worker security training program.
Sec. 410. Whistleblower protection program.
Sec. 411. High hazard material security threat mitigation plans.
Sec. 412. Memorandum of agreement.
Sec. 413. Rail security enhancements.
Sec. 414. Public awareness.
Sec. 415. Railroad high hazard material tracking.
Sec. 416. Authorization of appropriations.]

                    TITLE IV--IMPROVED RAIL SECURITY

Sec. 401. Definitions.
Sec. 402. Rail transportation security risk assessment.
Sec. 403. Systemwide Amtrak security upgrades.
Sec. 404. Fire and life-safety improvements.
Sec. 405. Freight and passenger rail security upgrades.
Sec. 406. Rail security research and development.
Sec. 407. Oversight and grant procedures.
Sec. 408. Amtrak plan to assist families of passengers involved in rail 
              passenger accidents.
Sec. 409. Northern border rail passenger report.
Sec. 410. Rail worker security training program.
Sec. 411. Whistleblower protection program.
Sec. 412. High hazard material security risk mitigation plans.
Sec. 413. Enforcement authority.
Sec. 414. Rail security enhancements.
Sec. 415. Public awareness.
Sec. 416. Railroad high hazard material tracking.
Sec. 417. Certain reports submitted to Senate Committee on Homeland 
              Security and Governmental Affairs.
Sec. 418. Authorization of appropriations.

                        TITLE I--AUTHORIZATIONS

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

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

     SEC. 102. AUTHORIZATION FOR THE FEDERAL RAILROAD 
                   ADMINISTRATION.

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

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

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

     SEC. 104. EXCESS RAILROAD RETIREMENT.

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

     SEC. 105. OTHER AUTHORIZATIONS.

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

          TITLE II--AMTRAK REFORM AND OPERATIONAL IMPROVEMENTS

     SEC. 201. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM 
                   DEFINED.

       (a) In General.--Section 24102 is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (2), (3), and (4), respectively; and
       (3) by inserting after paragraph (4) as so redesignated the 
     following:
       ``(5) `national rail passenger transportation system' 
     means--
       ``(A) the segment of the Northeast Corridor between Boston, 
     Massachusetts and Washington, DC;
       ``(B) rail corridors that have been designated by the 
     Secretary of Transportation as high-speed corridors (other 
     than corridors described in subparagraph (A)), but only after 
     they have been improved to permit operation of high-speed 
     service;
       ``(C) long distance routes of more than 750 miles between 
     endpoints operated by Amtrak as of the date of enactment of 
     the Passenger Rail Investment and Improvement Act of 2007; 
     and
       ``(D) short-distance corridors, or routes of not more than 
     750 miles between endpoints, operated by--
       ``(i) Amtrak; or
       ``(ii) another rail carrier that receives funds under 
     chapter 244.''.
       (b) Amtrak Routes With State Funding.--
       (1) In general.--Chapter 247 is amended by inserting after 
     section 24701 the following:

     ``Sec. 24702. Transportation requested by States, 
       authorities, and other persons

       ``(a) Contracts for Transportation.--Amtrak may enter into 
     a contract with a State, a regional or local authority, or 
     another person for Amtrak to operate an intercity rail 
     service or route not included in the national rail passenger 
     transportation system upon such terms as the parties thereto 
     may agree.
       ``(b) Discontinuance.--Upon termination of a contract 
     entered into under this section, or the cessation of 
     financial support under such a contract by either party, 
     Amtrak may discontinue such service or route, notwithstanding 
     any other provision of law.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     247 is amended by inserting after the item relating to 
     section 24701 the following:

``24702. Transportation requested by States, authorities, and other 
              persons.''.

       (c) Amtrak To Continue To Provide Non-High-speed 
     Services.--Nothing in this Act is intended to preclude Amtrak 
     from restoring, improving, or developing non-high-speed 
     intercity passenger rail service.
       (d) Applicability of Section 24706.--Section 24706 is 
     amended by adding at the end the following:
       ``(c) Applicability.--This section applies to all service 
     over routes provided by Amtrak, notwithstanding any provision 
     of section 24701 of this title or any other provision of this 
     title except section 24702(b).''.

     SEC. 202. AMTRAK BOARD OF DIRECTORS.

       (a) In General.--Section 24302 is amended to read as 
     follows:

[[Page S13325]]

     ``Sec. 24302. Board of directors

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

     SEC. 203. ESTABLISHMENT OF IMPROVED FINANCIAL ACCOUNTING 
                   SYSTEM.

       (a) In General.--The Amtrak Board of Directors--
       (1) may employ an independent financial consultant with 
     experience in railroad accounting to assist Amtrak in 
     improving Amtrak's financial accounting and reporting system 
     and practices; and
       (2) shall implement a modern financial accounting and 
     reporting system 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;
       (C) to allow the analysis of ticketing and reservation 
     information on a real-time basis;
       (D) to provide Amtrak cost accounting data; and
       (E) to allow financial analysis by route and service.
       (b) Verification of System; Report.--The Inspector General 
     of the Department of Transportation shall review the 
     accounting system designed and implemented under subsection 
     (a) to ensure that it accomplishes the purposes for which it 
     is intended. The Inspector General shall report his findings 
     and conclusions, together with any recommendations, to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure.

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

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

     SEC. 205. ESTABLISHMENT OF GRANT PROCESS.

       (a) Grant Requests.--Amtrak shall submit grant requests 
     (including a schedule for the disbursement of funds), 
     consistent with the requirements of this Act, to the 
     Secretary of Transportation for funds authorized to be 
     appropriated to the Secretary for the use of Amtrak under 
     sections 101(a) and (b), 103, and 105.
       (b) Procedures for Grant Requests.--The Secretary shall 
     establish substantive and procedural requirements, including 
     schedules, for grant requests under this section not later 
     than 30 days after the date of enactment of this Act and 
     shall transmit copies to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure. As part of 
     those requirements, the Secretary shall require, at a 
     minimum, that Amtrak deposit grant funds, consistent with the 
     appropriated amounts for each area of expenditure in a given 
     fiscal year, in the following 3 accounts:
       (1) The Amtrak Operating account.
       (2) The Amtrak General Capital account.
       (3) The Northeast Corridor Improvement funds account.

     Amtrak may not transfer such funds to another account or 
     expend such funds for any purpose other than the purposes 
     covered by the account in which the funds are deposited 
     without approval by the Secretary.
       (c) Review and Approval.--
       (1) 30-day approval process.--The Secretary shall complete 
     the review of a complete grant request (including the 
     disbursement schedule) and approve or disapprove the request 
     within 30 days after the date on which Amtrak submits the 
     grant request. If the Secretary disapproves the request or 
     determines that the request is incomplete or

[[Page S13326]]

     deficient, the Secretary shall include the reason for 
     disapproval or the incomplete items or deficiencies in the 
     notice to Amtrak.
       (2) 15-day modification period.--Within 15 days after 
     receiving notification from the Secretary under the preceding 
     sentence, Amtrak shall submit a modified request for the 
     Secretary's review.
       (3) Revised requests.--Within 15 days after receiving a 
     modified request from Amtrak, the Secretary shall either 
     approve the modified request, or, if the Secretary finds that 
     the request is still incomplete or deficient, the 
     Secretary shall identify in writing to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure the remaining deficiencies and recommend a 
     process for resolving the outstanding portions of the 
     request.

     SEC. 206. STATE-SUPPORTED ROUTES.

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

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

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

     SEC. 208. METRICS AND STANDARDS.

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

     SEC. 209. PASSENGER TRAIN PERFORMANCE.

       (a) In General.--Section 24308 is amended by adding at the 
     end the following:
       ``(f) Passenger Train Performance and Other Standards.--
       ``(1) Investigation of substandard performance.--If the on-
     time performance of any intercity passenger train averages 
     less than 80 percent for any 2 consecutive calendar quarters, 
     or the service quality of intercity passenger train 
     operations for which minimum standards are established under 
     section 208 of the Passenger Rail Investment and Improvement 
     Act of 2007 fails to meet those standards for 2 consecutive 
     calendar quarters, the Surface Transportation Board may 
     initiate an investigation, or upon the filing of a complaint 
     by Amtrak, an intercity passenger rail operator, a host 
     freight railroad over which Amtrak operates, or an entity for 
     which Amtrak operates intercity passenger rail service, the 
     Board shall initiate an investigation to determine whether, 
     and to what extent, delays or failure to achieve minimum 
     standards are due to causes that could reasonably be 
     addressed by a rail carrier over tracks of which the 
     intercity passenger train operates or reasonably addressed by 
     Amtrak or other intercity passenger rail operator. In making 
     its determination or carrying out such an investigation, the 
     Board shall obtain information from all parties involved and 
     identify reasonable measures and make recommendations to 
     improve the service, quality, and on-time performance of the 
     train.
       ``(2) Problems caused by host rail carrier.--If the Board 
     determines that delays or failures to achieve minimum 
     standards investigated under paragraph (1) are attributable 
     to a rail carrier's failure to provide preference to Amtrak 
     over freight transportation as required under subsection (c), 
     the Board may award damages against the host rail carrier, 
     including prescribing such other relief to Amtrak as it 
     determines to be reasonable and appropriate pursuant to 
     paragraph (3) of this subsection.
       ``(3) Damages and relief.--In awarding damages and 
     prescribing other relief under this subsection the Board 
     shall consider such factors as--
       ``(A) the extent to which Amtrak suffers financial loss as 
     a result of host rail carrier delays or failure to achieve 
     minimum standards; and
       ``(B) what reasonable measures would adequately deter 
     future actions which may reasonably be expected to be likely 
     to result in delays to Amtrak on the route involved.
       ``(4) Use of damages.--The Board shall, as it deems 
     appropriate, remit the damages awarded under this subsection 
     to Amtrak or

[[Page S13327]]

     to an entity for which Amtrak operates intercity passenger 
     rail service. Such damages shall be used for capital or 
     operating expenditures on the routes over which delays or 
     failures to achieve minimum standards were the result of a 
     rail carrier's failure to provide preference to Amtrak over 
     freight transportation as determined in accordance with 
     paragraph (2).''.
       (b) Change of Reference.--Section 24308 is amended--
       (1) by striking ``Interstate Commerce Commission'' in 
     subsection (a)(2)(A) and inserting ``Surface Transportation 
     Board'';
       (2) by striking ``Commission'' each place it appears and 
     inserting ``Board'';
       (3) by striking ``Secretary of Transportation'' in 
     subsection (c) and inserting ``Board''; and
       (4) by striking ``Secretary'' the last 3 places it appears 
     in subsection (c) and each place it appears in subsections 
     (d) and (e) and inserting ``Board''.

     SEC. 210. LONG DISTANCE ROUTES.

       (a) In General.--Chapter 247 is amended by adding at the 
     end thereof the following:

     ``Sec. 24710. Long distance routes

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

``24710. Long distance routes.''.

     SEC. 211. ALTERNATE PASSENGER RAIL SERVICE PROGRAM.

       (a) In General.--Chapter 247, as amended by section 209, is 
     amended by adding at the end thereof the following:

     ``Sec. 24711. Alternate passenger rail service program

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

[[Page S13328]]

       (b) Conforming Amendment.--The chapter analysis for chapter 
     247, as amended by section 209, is amended by inserting after 
     the item relating to section 24710 the following:

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

     SEC. 212. EMPLOYEE TRANSITION ASSISTANCE.

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

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

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

     SEC. 214. NORTHEAST CORRIDOR INFRASTRUCTURE AND OPERATIONS 
                   IMPROVEMENTS.

       (a) In General.--Section 24905 is amended to read as 
     follows:

     ``Sec. 24905. Northeast Corridor Infrastructure and 
       Operations Advisory Commission; Safety and Security 
       Committee

       ``(a) Northeast Corridor Infrastructure and Operations 
     Advisory Commission.--
       ``(1) Within 180 days after the date of enactment of the 
     Passenger Rail Investment and Improvement Act of 2007, the 
     Secretary of Transportation shall establish a Northeast 
     Corridor Infrastructure and Operations Advisory Commission 
     (hereinafter referred to in this section as the `Commission') 
     to promote mutual cooperation and planning pertaining to the 
     rail operations and related activities of the Northeast 
     Corridor. The Commission shall be made up of--
       ``(A) members representing the National Railroad Passenger 
     Corporation;
       ``(B) members representing the Secretary of Transportation 
     and the Federal Railroad Administration;
       ``(C) 1 member from each of the States (including the 
     District of Columbia) that constitute the Northeast Corridor 
     as defined in section 24102, designated by, and serving at 
     the pleasure of, the chief executive officer thereof; and
       ``(D) non-voting representatives of freight railroad 
     carriers using the Northeast Corridor selected by the 
     Secretary.
       ``(2) The Secretary shall ensure that the membership 
     belonging to any of the groups enumerated under subparagraph 
     (1) shall not constitute a majority of the commission's 
     memberships.
       ``(3) The commission shall establish a schedule and 
     location for convening meetings, but shall meet no less than 
     four times per fiscal year, and the commission shall develop 
     rules and procedures to govern the commission's proceedings.
       ``(4) A vacancy in the Commission shall be filled in the 
     manner in which the original appointment was made.
       ``(5) Members shall serve without pay but shall receive 
     travel expenses, including per diem in lieu of subsistence, 
     in accordance with sections 5702 and 5703 of title 5, United 
     States Code.
       ``(6) The Chairman of the Commission shall be elected by 
     the members.
       ``(7) The Commission may appoint and fix the pay of such 
     personnel as it considers appropriate.
       ``(8) Upon request of the Commission, the head of any 
     department or agency of the United States may detail, on a 
     reimbursable basis, any of the personnel of that department 
     or agency to the Commission to assist it in carrying out its 
     duties under this section.
       ``(9) Upon the request of the Commission, the Administrator 
     of General Services shall provide to the Commission, on a 
     reimbursable basis, the administrative support services 
     necessary for the Commission to carry out its 
     responsibilities under this section.
       ``(10) The commission shall consult with other entities as 
     appropriate.
       ``(b) General Recommendations.--The Commission shall 
     develop recommendations concerning Northeast Corridor rail 
     infrastructure and operations including proposals addressing, 
     as appropriate--
       ``(1) short-term and long term capital investment needs 
     beyond the state-of-good-repair under section 213;
       ``(2) future funding requirements for capital improvements 
     and maintenance;
       ``(3) operational improvements of intercity passenger rail, 
     commuter rail, and freight rail services;
       ``(4) opportunities for additional non-rail uses of the 
     Northeast Corridor;
       ``(5) scheduling and dispatching;
       ``(6) safety and security enhancements;
       ``(7) equipment design;
       ``(8) marketing of rail services; and
       ``(9) future capacity requirements.
       ``(c) Access Costs.--
       ``(1) Development of formula.--Within 1 year after 
     verification of Amtrak's new financial accounting system 
     pursuant to section 203(b) of the Passenger Rail Investment 
     and Improvement Act of 2007, the Commission shall--
       ``(A) develop a standardized formula for determining and 
     allocating costs, revenues, and compensation for Northeast 
     Corridor commuter rail passenger transportation, as defined 
     in section 24102 of this title, that use National Railroad 
     Passenger Corporation facilities or services or that provide 
     such facilities or services to the National Railroad 
     Passenger Corporation that ensure that--
       ``(i) there is no cross-subsidization of commuter rail 
     passenger, intercity rail passenger, or freight rail 
     transportation; and
       ``(ii) each service is assigned the costs incurred only for 
     the benefit of that service, and a proportionate share, based 
     upon factors that reasonably reflect relative use, of costs 
     incurred for the common benefit of more than 1 service;
       ``(B) develop a proposed timetable for implementing the 
     formula before the end of the 6th year following the date of 
     enactment of that Act;
       ``(C) transmit the proposed timetable to the Surface 
     Transportation Board; and
       ``(D) at the request of a Commission member, petition the 
     Surface Transportation Board to appoint a mediator to assist 
     the Commission members through non-binding mediation to reach 
     an agreement under this section.
       ``(2) Implementation.--The National Railroad Passenger 
     Corporation and the commuter authorities providing commuter 
     rail passenger transportation on the Northeast Corridor shall 
     implement new agreements for usage of facilities or services 
     based on the formula proposed in paragraph (1) in accordance 
     with the timetable established therein. If the entities fail 
     to implement such new agreements in accordance with the 
     timetable, the Commission shall petition the Surface 
     Transportation Board to determine the appropriate 
     compensation amounts for

[[Page S13329]]

     such services in accordance with section 24904(c) of this 
     title. The Surface Transportation Board shall enforce its 
     determination on the party or parties involved.
       ``(d) Transmission of Recommendations.--The commission 
     shall annually transmit the recommendations developed under 
     subsection (b) and the formula and timetable developed under 
     subsection (c)(1) to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure.
       ``(e) Northeast Corridor Safety and Security Committee.--
       ``(1) In general.--The Secretary shall establish a 
     Northeast Corridor Safety and Security Committee composed of 
     members appointed by the Secretary. The members shall be 
     representatives of--
       ``(A) the Secretary;
       ``(B) Amtrak;
       ``(C) freight carriers operating more than 150,000 train 
     miles a year on the main line of the Northeast Corridor;
       ``(D) commuter agencies;
       ``(E) rail passengers;
       ``(F) rail labor;
       ``(G) the Transportation Security Administration; and
       ``(H) other individuals and organizations the Secretary 
     decides have a significant interest in rail safety or 
     security.
       ``(2) Function; meetings.--The Secretary shall consult with 
     the Committee about safety and security improvements on the 
     Northeast Corridor main line. The Committee shall meet at 
     least once every 2 years to consider safety matters on the 
     main line.
       ``(3) Report.--At the beginning of the first session of 
     each Congress, the Secretary shall submit a report to the 
     Commission and to Congress on the status of efforts to 
     improve safety and security on the Northeast Corridor main 
     line. The report shall include the safety recommendations of 
     the Committee and the comments of the Secretary on those 
     recommendations.''.
       (b) Conforming Amendments.--Section 24904(c)(2) is amended 
     by--
       (1) inserting ``commuter rail passenger and'' after 
     ``between''; and
       (2) striking ``freight'' in the second sentence.
       (c) RIDOT Access Agreement.--
       (1) In general.--Not later than December 15, 2007, Amtrak 
     and the Rhode Island Department of Transportation shall enter 
     into an agreement governing access fees and other costs or 
     charges related to the operation of the South County commuter 
     rail service on the Northeast Corridor between Providence and 
     Wickford Junction, Rhode Island.
       (2) Failure to reach agreement.--If Amtrak and the Rhode 
     Island Department of Transportation fail to reach the 
     agreement specified under paragraph (1), the Administrator of 
     the Federal Railroad Administration shall, after consultation 
     with both parties, resolve any outstanding disagreements 
     between the parties, including setting access fees and other 
     costs or charges related to the operation of the South County 
     commuter rail service that do not allow for the cross-
     subsidization of intercity rail passenger and commuter rail 
     passenger service, not later than [January 30, 2008.] October 
     31, 2007.
       (3) Interim agreement.--Any agreement between Amtrak and 
     the Rhode Island Department of Transportation relating to 
     access costs made under this subsection shall be superseded 
     by any access cost formula developed by the Northeast 
     Corridor Infrastructure and Operations Advisory Commission 
     under section 24905(c)(1) of title 49, United States Code, as 
     amended by section 214(a) of this Act.

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

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

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

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

     SEC. 217. INCENTIVE PAY.

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

     SEC. 218. ACCESS TO AMTRAK EQUIPMENT AND SERVICES.

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

     SEC. 219. GENERAL AMTRAK PROVISIONS.

       (a) Repeal of Self-Sufficiency Requirements.
       (1) 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.
       (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

[[Page S13330]]

     U.S.C. 481(b) and 491(b)) for each of fiscal years 2007 
     through 2012.
       (c) Applicability of District of Columbia Law to Certain 
     Amtrak Contracts.--Section 24301 is amended by adding at the 
     end the following:
       ``(o) Applicability of District of Columbia Law.--Any lease 
     or contract entered into between the National Railroad 
     Passenger Corporation and the State of Maryland, or any 
     department or agency of the State of Maryland, after the date 
     of the enactment of this subsection shall be governed by the 
     laws of the District of Columbia.''.
       (d) Travel Facilitation.--Using existing authority or 
     agreements, or upon reaching additional agreements with 
     Canada, the Secretary of Transportation and other Federal 
     agencies, as appropriate, are authorized to establish 
     facilities and procedures to conduct preclearance of 
     passengers traveling on Amtrak trains from Canada to the 
     United States. The Secretary shall seek to establish such 
     facilities and procedures--
       (1) in Vancouver, Canada, no later than June 1, 2008; and
       (2) in other areas as determined appropriate by the 
     Secretary.

     SEC. 220. PRIVATE SECTOR FUNDING OF PASSENGER TRAINS.

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

     SEC. 221. ON-BOARD SERVICE IMPROVEMENTS.

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

     SEC. 222. AMTRAK MANAGEMENT ACCOUNTABILITY.

       (a) In General.--Chapter 243 is amended by inserting after 
     section 24309 the following:

     ``Sec. 24310. Management accountability

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

``24310. Management accountability.''.

     SEC. 223. LOCOMOTIVE BIODIESEL FUEL USE STUDY.

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

               TITLE III--INTERCITY PASSENGER RAIL POLICY

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

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

   ``CHAPTER 244. INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL 
                               ASSISTANCE

``Sec.
``24401. Definitions.
``24402. Capital investment grants to support intercity passenger rail 
              service.
``24403. Project management oversight.
``24404. Use of capital grants to finance first-dollar liability of 
              grant project.
``24405. Grant conditions.

     ``Sec. 24401. Definitions

       ``In this subchapter:
       ``(1) Applicant.--The term `applicant' means a State 
     (including the District of Columbia), a group of States, an 
     Interstate Compact, or a public agency established by one or 
     more States and having responsibility for providing intercity 
     passenger rail service.
       ``(2) Capital project.--The term `capital project' means a 
     project or program in a State rail plan developed under 
     chapter 225 of this title for--
       ``(A) acquiring, constructing, improving, or inspecting 
     equipment, track and track structures, or a facility for use 
     in or for the primary benefit of intercity passenger rail 
     service, expenses incidental to the acquisition or 
     construction (including designing, engineering, location 
     surveying, mapping, environmental studies, and acquiring 
     rights-of-way), payments for the capital portions of rail 
     trackage rights agreements, highway-rail grade crossing 
     improvements related to intercity passenger rail service, 
     security, mitigating environmental impacts, communication and 
     signalization improvements, relocation assistance, acquiring 
     replacement housing sites, and acquiring, constructing, 
     relocating, and rehabilitating replacement housing;
       ``(B) rehabilitating, remanufacturing or overhauling rail 
     rolling stock and facilities used primarily in intercity 
     passenger rail service;
       ``(C) costs associated with developing State rail plans; 
     and
       ``(D) the first-dollar liability costs for insurance 
     related to the provision of intercity passenger rail service 
     under section 24404.
       ``(3) Intercity passenger rail service.--The term 
     `intercity passenger rail service' means transportation 
     services with the primary purpose of passenger transportation 
     between towns, cities and metropolitan areas by rail, 
     including high-speed rail, as defined in section 24102 of 
     title 49, United States Code.

     ``Sec. 24402. Capital investment grants to support intercity 
       passenger rail service

       ``(a) General Authority.--
       ``(1) The Secretary of Transportation may make grants under 
     this section to an applicant to assist in financing the 
     capital costs of facilities and equipment necessary to 
     provide or improve intercity passenger rail transportation.
       ``(2) The Secretary shall require that a grant under this 
     section be subject to the terms, conditions, requirements, 
     and provisions the Secretary decides are necessary or 
     appropriate for the purposes of this section, including 
     requirements for the disposition of net increases in value of 
     real property resulting from the project assisted under this 
     section and shall prescribe procedures and schedules for the 
     awarding of grants under this title, including application 
     and qualification procedures and a record of decision on 
     applicant eligibility. The Secretary shall issue a final rule 
     establishing such procedures not later than 90 days after the 
     date of enactment of the Passenger Rail Investment and 
     Improvement Act of 2007.
       ``(b) Project as Part of State Rail Plan.--
       ``(1) The Secretary may not approve a grant for a project 
     under this section unless the Secretary finds that the 
     project is part of a State rail plan developed under chapter 
     225 of this title, or under the plan required by section 203 
     of the Passenger Rail Investment and Improvement Act of 2007, 
     and that the applicant or recipient has or will have the 
     legal, financial, and technical capacity to carry out the 
     project, satisfactory continuing control over the use of the 
     equipment or facilities, and the capability and willingness 
     to maintain the equipment or facilities.
       ``(2) An applicant shall provide sufficient information 
     upon which the Secretary can make the findings required by 
     this subsection.
       ``(3) If an applicant has not selected the proposed 
     operator of its service competitively, the applicant shall 
     provide written justification to the Secretary showing why 
     the proposed operator is the best, taking into account price 
     and other factors, and that use of the proposed operator will 
     not unnecessarily increase the cost of the project.
       ``(c) Project Selection Criteria.--The Secretary, in 
     selecting the recipients of financial assistance to be 
     provided under subsection (a), shall--
       ``(1) require that each proposed project meet all safety 
     and security requirements that are applicable to the project 
     under law;
       ``(2) give preference to projects with high levels of 
     estimated ridership, increased on-time performance, reduced 
     trip time, additional service frequency to meet anticipated 
     or existing demand, or other significant service enhancements 
     as measured against minimum standards developed under section 
     208 of the Passenger Rail Investment and Improvement Act of 
     2007;
       ``(3) encourage intermodal connectivity through projects 
     that provide direct connections between train stations, 
     airports, bus terminals, subway stations, ferry ports, and 
     other modes of transportation;
       ``(4) ensure that each project is compatible with, and is 
     operated in conformance with--
       ``(A) plans developed pursuant to the requirements of 
     section 135 of title 23, United States Code; and

[[Page S13331]]

       ``(B) the national rail plan (if it is available); and
       ``(5) favor the following kinds of projects:
       ``(A) Projects that are expected to have a significant 
     favorable impact on air or highway traffic congestion, 
     capacity, or safety.
       ``(B) Projects that also improve freight or commuter rail 
     operations.
       ``(C) Projects that have significant environmental 
     benefits.
       ``(D) Projects that are--
       ``(i) at a stage of preparation that all pre-commencement 
     compliance with environmental protection requirements has 
     already been completed; and
       ``(ii) ready to be commenced.
       ``(E) Projects with positive economic and employment 
     impacts.
       ``(F) Projects that encourage the use of positive train 
     control technologies.
       ``(G) Projects that have commitments of funding from non-
     Federal Government sources in a total amount that exceeds the 
     minimum amount of the non-Federal contribution required for 
     the project.
       ``(H) Projects that involve donated property interests or 
     services.
       ``(I) Projects that are identified by the Surface 
     Transportation Board as necessary to improve the on time 
     performance and reliability of intercity passenger rail under 
     section 24308(f).
       ``(J) Projects described in section 5302(a)(1)(G) of this 
     title that are designed to support intercity passenger rail 
     service.
       ``(d) Amtrak Eligibility.--To receive a grant under this 
     section, the National Railroad Passenger Corporation may 
     enter into a cooperative agreement with 1 or more States to 
     carry out 1 or more projects on a State rail plan's ranked 
     list of rail capital projects developed under section 
     22504(a)(5) of this title.
       ``(e) Letters of Intent, Full Funding Grant Agreements, and 
     Early Systems Work Agreements.--
       ``(1)(A) The Secretary may issue a letter of intent to an 
     applicant announcing an intention to obligate, for a major 
     capital project under this section, an amount from future 
     available budget authority specified in law that is not more 
     than the amount stipulated as the financial participation of 
     the Secretary in the project.
       ``(B) At least 30 days before issuing a letter under 
     subparagraph (A) of this paragraph or entering into a full 
     funding grant agreement, the Secretary shall notify in 
     writing the Committee on Transportation and Infrastructure of 
     the House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate and the House and 
     Senate Committees on Appropriations of the proposed letter or 
     agreement. The Secretary shall include with the notification 
     a copy of the proposed letter or agreement as well as the 
     evaluations and ratings for the project.
       ``(C) An obligation or administrative commitment may be 
     made only when amounts are appropriated.
       ``(2)(A) The Secretary may make a full funding grant 
     agreement with an applicant. The agreement shall--
       ``(i) establish the terms of participation by the United 
     States Government in a project under this section;
       ``(ii) establish the maximum amount of Government financial 
     assistance for the project;
       ``(iii) cover the period of time for completing the 
     project, including a period extending beyond the period of an 
     authorization; and
       ``(iv) make timely and efficient management of the project 
     easier according to the law of the United States.
       ``(B) An agreement under this paragraph obligates an amount 
     of available budget authority specified in law and may 
     include a commitment, contingent on amounts to be specified 
     in law in advance for commitments under this paragraph, to 
     obligate an additional amount from future available budget 
     authority specified in law. The agreement shall state that 
     the contingent commitment is not an obligation of the 
     Government and is subject to the availability of 
     appropriations made by Federal law and to Federal laws in 
     force on or enacted after the date of the contingent 
     commitment. Interest and other financing costs of efficiently 
     carrying out a part of the project within a reasonable time 
     are a cost of carrying out the project under a full funding 
     grant agreement, except that eligible costs may not be more 
     than the cost of the most favorable financing terms 
     reasonably available for the project at the time of 
     borrowing. The applicant shall certify, in a way satisfactory 
     to the Secretary, that the applicant has shown reasonable 
     diligence in seeking the most favorable financing terms.
       ``(3)(A) The Secretary may make an early systems work 
     agreement with an applicant if a record of decision under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) has been issued on the project and the Secretary finds 
     there is reason to believe--
       ``(i) a full funding grant agreement for the project will 
     be made; and
       ``(ii) the terms of the work agreement will promote 
     ultimate completion of the project more rapidly and at less 
     cost.
       ``(B) A work agreement under this paragraph obligates an 
     amount of available budget authority specified in law and 
     shall provide for reimbursement of preliminary costs of 
     carrying out the project, including land acquisition, timely 
     procurement of system elements for which specifications are 
     decided, and other activities the Secretary decides are 
     appropriate to make efficient, long-term project management 
     easier. A work agreement shall cover the period of time the 
     Secretary considers appropriate. The period may extend beyond 
     the period of current authorization. Interest and other 
     financing costs of efficiently carrying out the work 
     agreement within a reasonable time are a cost of carrying out 
     the agreement, except that eligible costs may not be more 
     than the cost of the most favorable financing terms 
     reasonably available for the project at the time of 
     borrowing. The applicant shall certify, in a way satisfactory 
     to the Secretary, that the applicant has shown reasonable 
     diligence in seeking the most favorable financing terms. If 
     an applicant does not carry out the project for reasons 
     within the control of the applicant, the applicant shall 
     repay all Government payments made under the work agreement 
     plus reasonable interest and penalty charges the Secretary 
     establishes in the agreement.
       ``(4) The total estimated amount of future obligations of 
     the Government and contingent commitments to incur 
     obligations covered by all outstanding letters of intent, 
     full funding grant agreements, and early systems work 
     agreements may be not more than the amount authorized under 
     section 101(c) of Passenger Rail Investment and Improvement 
     Act of 2007, less an amount the Secretary reasonably 
     estimates is necessary for grants under this section not 
     covered by a letter. The total amount covered by new letters 
     and contingent commitments included in full funding grant 
     agreements and early systems work agreements may be not more 
     than a limitation specified in law.
       ``(f) Federal Share of Net Project Cost.--
       ``(1)(A) Based on engineering studies, studies of economic 
     feasibility, and information on the expected use of equipment 
     or facilities, the Secretary shall estimate the net project 
     cost.
       ``(B) A grant for the project shall not exceed 80 percent 
     of the project net capital cost.
       ``(C) The Secretary shall give priority in allocating 
     future obligations and contingent commitments to incur 
     obligations to grant requests seeking a lower Federal share 
     of the project net capital cost.
       ``(2) Up to an additional 20 percent of the required non-
     Federal funds may be funded from amounts appropriated to or 
     made available to a department or agency of the Federal 
     Government that are eligible to be expended for 
     transportation.
       ``(3) 50 percent of the average amounts expended by a State 
     or group of States (including the District of Columbia) for 
     capital projects to benefit intercity passenger rail service 
     and operating costs of up to $5,000,000 per fiscal year of 
     such service in fiscal years 2004, 2005, and 2006 shall be 
     credited towards the matching requirements for grants awarded 
     in fiscal years 2007, 2008, and 2009 under this section. The 
     Secretary may require such information as necessary to verify 
     such expenditures.
       ``(4) 50 percent of the average amounts expended by a State 
     or group of States (including the District of Columbia) in a 
     [fiscal year beginning in 2007] fiscal year, beginning in 
     fiscal year 2007, for capital projects to benefit intercity 
     passenger rail service or for the operating costs of such 
     service above the average [of] capital and operating 
     expenditures made for such service in fiscal years 2004, 
     2005, and 2006 shall be credited towards the matching 
     requirements for grants awarded under this section. The 
     Secretary may require such information as necessary to verify 
     such expenditures.
       ``(g) Undertaking Projects in Advance.--
       ``(1) The Secretary may pay the Federal share of the net 
     capital project cost to an applicant that carries out any 
     part of a project described in this section according to all 
     applicable procedures and requirements if--
       ``(A) the applicant applies for the payment;
       ``(B) the Secretary approves the payment; and
       ``(C) before carrying out the part of the project, the 
     Secretary approves the plans and specifications for the part 
     in the same way as other projects under this section.
       ``(2) The cost of carrying out part of a project includes 
     the amount of interest earned and payable on bonds issued by 
     the applicant to the extent proceeds of the bonds are 
     expended in carrying out the part. However, the amount of 
     interest under this paragraph may not be more than the most 
     favorable interest terms reasonably available for the project 
     at the time of borrowing. The applicant shall certify, in a 
     manner satisfactory to the Secretary, that the applicant has 
     shown reasonable diligence in seeking the most favorable 
     financial terms.
       ``(3) The Secretary shall consider changes in capital 
     project cost indices when determining the estimated cost 
     under paragraph (2) of this subsection.
       ``(h) 2-Year Availability.--Funds appropriated under this 
     section shall remain available until expended. If any amount 
     provided as a grant under this section is not obligated or 
     expended for the purposes described in subsection (a) within 
     2 years after the date on which the State received the grant, 
     such sums shall be returned to the Secretary for other 
     intercity passenger rail development projects under this 
     section at the discretion of the Secretary.
       ``(i) Public-Private Partnerships.--

[[Page S13332]]

       ``(1) In general.--A metropolitan planning organization, 
     State transportation department, or other project sponsor may 
     enter into an agreement with any public, private, or 
     nonprofit entity to cooperatively implement any project 
     funded with a grant under this title.
       ``(2) Forms of participation.--Participation by an entity 
     under paragraph (1) may consist of--
       ``(A) ownership or operation of any land, facility, 
     locomotive, rail car, vehicle, or other physical asset 
     associated with the project;
       ``(B) cost-sharing of any project expense;
       ``(C) carrying out administration, construction management, 
     project management, project operation, or any other 
     management or operational duty associated with the project; 
     and
       ``(D) any other form of participation approved by the 
     Secretary.
       ``(3) Sub-allocation.--A State may allocate funds under 
     this section to any entity described in paragraph (1).
       ``(j) Special Transportation Circumstances.--In carrying 
     out this section, the Secretary shall allocate an appropriate 
     portion of the amounts available under this section to 
     provide grants to States--
       ``(1) in which there is no intercity passenger rail service 
     for the purpose of funding freight rail capital projects that 
     are on a State rail plan developed under chapter 225 of this 
     title that provide public benefits (as defined in chapter 
     225) as determined by the Secretary; or
       ``(2) in which the rail transportation system is not 
     physically connected to rail systems in the continental 
     United States or may not otherwise qualify for a grant under 
     this section due to the unique characteristics of the 
     geography of that State or other relevant considerations, for 
     the purpose of funding transportation-related capital 
     projects.
       ``(k) Small Capital Projects.--The Secretary shall make 
     available $10,000,000 annually from the amounts authorized 
     under section 101(c) of the Passenger Rail Investment and 
     Improvement Act of 2007 beginning in fiscal year 2008 for 
     grants for capital projects eligible under this section not 
     exceeding $2,000,000, including costs eligible under section 
     206(c) of that Act. The Secretary may wave requirements of 
     this section, including state rail plan requirements, as 
     appropriate.

     ``Sec. 24403. Project management oversight

       ``(a) Project Management Plan Requirements.--To receive 
     Federal financial assistance for a major capital project 
     under this subchapter, an applicant must prepare and carry 
     out a project management plan approved by the Secretary of 
     Transportation. The plan shall provide for--
       ``(1) adequate recipient staff organization with well-
     defined reporting relationships, statements of functional 
     responsibilities, job descriptions, and job qualifications;
       ``(2) a budget covering the project management 
     organization, appropriate consultants, property acquisition, 
     utility relocation, systems demonstration staff, audits, and 
     miscellaneous payments the recipient may be prepared to 
     justify;
       ``(3) a construction schedule for the project;
       ``(4) a document control procedure and recordkeeping 
     system;
       ``(5) a change order procedure that includes a documented, 
     systematic approach to handling the construction change 
     orders;
       ``(6) organizational structures, management skills, and 
     staffing levels required throughout the construction phase;
       ``(7) quality control and quality assurance functions, 
     procedures, and responsibilities for construction, system 
     installation, and integration of system components;
       ``(8) material testing policies and procedures;
       ``(9) internal plan implementation and reporting 
     requirements;
       ``(10) criteria and procedures to be used for testing the 
     operational system or its major components;
       ``(11) periodic updates of the plan, especially related to 
     project budget and project schedule, financing, and ridership 
     estimates; and
       ``(12) the recipient's commitment to submit a project 
     budget and project schedule to the Secretary each month.
       ``(b) Secretarial Oversight.--
       ``(1) The Secretary may use no more than 0.5 percent of 
     amounts made available in a fiscal year for capital projects 
     under this subchapter to enter into contracts to oversee the 
     construction of such projects.
       ``(2) The Secretary may use amounts available under 
     paragraph (1) of this subsection to make contracts for 
     safety, procurement, management, and financial compliance 
     reviews and audits of a recipient of amounts under paragraph 
     (1).
       ``(3) The Federal Government shall pay the entire cost of 
     carrying out a contract under this subsection.
       ``(c) Access to Sites and Records.--Each recipient of 
     assistance under this subchapter shall provide the Secretary 
     and a contractor the Secretary chooses under subsection (c) 
     of this section with access to the construction sites and 
     records of the recipient when reasonably necessary.

     ``Sec. 24404. Use of capital grants to finance first-dollar 
       liability of grant project

       ``Notwithstanding the requirements of section 24402 of this 
     subchapter, the Secretary of Transportation may approve the 
     use of capital assistance under this subchapter to fund self-
     insured retention of risk for the first tier of liability 
     insurance coverage for rail passenger service associated with 
     the capital assistance grant, but the coverage may not exceed 
     $20,000,000 per occurrence or $20,000,000 in aggregate per 
     year.

     ``Sec. 24405. Grant conditions

       ``(a) Domestic Buying Preference.--
       ``(1) Requirement.--
       ``(A) In general.--In carrying out a project funded in 
     whole or in part with a grant under this title, the grant 
     recipient shall purchase only--
       ``(i) unmanufactured articles, material, and supplies mined 
     or produced in the United States; or
       ``(ii) manufactured articles, material, and supplies 
     manufactured in the United States substantially from 
     articles, material, and supplies mined, produced, or 
     manufactured in the United States.
       ``(B) De minimis amount.--Subparagraph (1) applies only to 
     a purchase in an total amount that is not less than 
     $1,000,000.
       ``(2) Exemptions.--On application of a recipient, the 
     Secretary may exempt a recipient from the requirements of 
     this subsection if the Secretary decides that, for particular 
     articles, material, or supplies--
       ``(A) such requirements are inconsistent with the public 
     interest;
       ``(B) the cost of imposing the requirements is 
     unreasonable; or
       ``(C) the articles, material, or supplies, or the articles, 
     material, or supplies from which they are manufactured, are 
     not mined, produced, or manufactured in the United States in 
     sufficient and reasonably available commercial quantities and 
     are not of a satisfactory quality.
       ``(3) United States defined.--In this subsection, the term 
     `the United States' means the States, territories, and 
     possessions of the United States and the District of 
     Columbia.
       ``(b) Operators Deemed Rail Carriers and Employers for 
     Certain Purposes.--A person that conducts rail operations 
     over rail infrastructure constructed or improved with funding 
     provided in whole or in part in a grant made under this title 
     shall be considered a rail carrier as defined in section 
     10102(5) of this title for purposes of this title and any 
     other statute that adopts the that definition or in which 
     that definition applies, including--
       ``(1) the Railroad Retirement Act of 1974 (45 U.S.C. 231 et 
     seq.); and
       ``(2) the Railway Labor Act (43 U.S.C. 151 et seq.).
       ``(c) Grant Conditions.--The Secretary shall require as a 
     condition of making any grant under this title for a project 
     that uses rights-of-way owned by a railroad that--
       ``(1) a written agreement exist between the applicant and 
     the railroad regarding such use and ownership, including--
       ``(A) any compensation for such use;
       ``(B) assurances regarding the adequacy of infrastructure 
     capacity to accommodate both existing and future freight and 
     passenger operations;
       ``(C) an assurance by the railroad that collective 
     bargaining agreements with the railroad's employees 
     (including terms regulating the contracting of work) will 
     remain in full force and effect according to their terms for 
     work performed by the railroad on the railroad transportation 
     corridor; and
       ``(D) an assurance that an applicant complies with 
     liability requirements consistent with section 28103 of this 
     title; and
       ``(2) the applicant agrees to comply with--
       ``(A) the standards of section 24312 of this title, as such 
     section was in effect on September 1, 2003, with respect to 
     the project in the same manner that the National Railroad 
     Passenger Corporation is required to comply with those 
     standards for construction work financed under an agreement 
     made under section 24308(a) of this title; and
       ``(B) the protective arrangements established under section 
     504 of the Railroad Revitalization and Regulatory Reform Act 
     of 1976 (45 U.S.C. 836) with respect to employees affected by 
     actions taken in connection with the project to be financed 
     in whole or in part by grants under this subchapter.
       ``(d) Replacement of Existing Intercity Passenger Rail 
     Service.--
       ``(1) Collective bargaining agreement for intercity 
     passenger rail projects.--Any entity providing intercity 
     passenger railroad transportation that begins operations 
     after the date of enactment of this Act on a project funded 
     in whole or in part by grants made under this title and 
     replaces intercity rail passenger service that was provided 
     by Amtrak, unless such service was provided solely by Amtrak 
     to another entity, as of such date shall enter into an 
     agreement with the authorized bargaining agent or agents for 
     adversely affected employees of the predecessor provider 
     that--
       ``(A) gives each such qualified employee of the predecessor 
     provider priority in hiring according to the employee's 
     seniority on the predecessor provider for each position with 
     the replacing entity that is in the employee's craft or class 
     and is available within 3 years after the termination of the 
     service being replaced;
       ``(B) establishes a procedure for notifying such an 
     employee of such positions;
       ``(C) establishes a procedure for such an employee to apply 
     for such positions; and
       ``(D) establishes rates of pay, rules, and working 
     conditions.
       ``(2) Immediate replacement service.--
       ``(A) Negotiations.--If the replacement of preexisting 
     intercity rail passenger service occurs concurrent with or 
     within a reasonable time before the commencement of the

[[Page S13333]]

     replacing entity's rail passenger service, the replacing 
     entity shall give written notice of its plan to replace 
     existing rail passenger service to the authorized collective 
     bargaining agent or agents for the potentially adversely 
     affected employees of the predecessor provider at least 90 
     days before the date on which it plans to commence service. 
     Within 5 days after the date of receipt of such written 
     notice, negotiations between the replacing entity and the 
     collective bargaining agent or agents for the employees of 
     the predecessor provider shall commence for the purpose of 
     reaching agreement with respect to all matters set forth in 
     subparagraphs (A) through (D) of paragraph (1). The 
     negotiations shall continue for 30 days or until an agreement 
     is reached, whichever is sooner. If at the end of 30 days the 
     parties have not entered into an agreement with respect to 
     all such matters, the unresolved issues shall be submitted 
     for arbitration in accordance with the procedure set forth in 
     subparagraph (B).
       ``(B) Arbitration.--If an agreement has not been entered 
     into with respect to all matters set forth in subparagraphs 
     (A) through (D) of paragraph (1) as described in subparagraph 
     (A) of this paragraph, the parties shall select an 
     arbitrator. If the parties are unable to agree upon the 
     selection of such arbitrator within 5 days, either or both 
     parties shall notify the National Mediation Board, which 
     shall provide a list of seven arbitrators with experience in 
     arbitrating rail labor protection disputes. Within 5 days 
     after such notification, the parties shall alternately strike 
     names from the list until only 1 name remains, and that 
     person shall serve as the neutral arbitrator. Within 45 days 
     after selection of the arbitrator, the arbitrator shall 
     conduct a hearing on the dispute and shall render a decision 
     with respect to the unresolved issues among the matters set 
     forth in subparagraphs (A) through (D) of paragraph (1). This 
     decision shall be final, binding, and conclusive upon the 
     parties. The salary and expenses of the arbitrator shall be 
     borne equally by the parties; all other expenses shall be 
     paid by the party incurring them.
       ``(3) Service commencement.--A replacing entity under this 
     subsection shall commence service only after an agreement is 
     entered into with respect to the matters set forth in 
     subparagraphs (A) through (D) of paragraph (1) or the 
     decision of the arbitrator has been rendered.
       ``(4) Subsequent replacement of service.--If the 
     replacement of existing rail passenger service takes place 
     within 3 years after the replacing entity commences intercity 
     passenger rail service, the replacing entity and the 
     collective bargaining agent or agents for the adversely 
     affected employees of the predecessor provider shall enter 
     into an agreement with respect to the matters set forth in 
     subparagraphs (A) through (D) of paragraph (1). If the 
     parties have not entered into an agreement with respect to 
     all such matters within 60 days after the date on which the 
     replacing entity replaces the predecessor provider, the 
     parties shall select an arbitrator using the procedures set 
     forth in paragraph (2)(B), who shall, within 20 days after 
     the commencement of the arbitration, conduct a hearing and 
     decide all unresolved issues. This decision shall be final, 
     binding, and conclusive upon the parties.
       ``(e) Inapplicability to Certain Rail Operations.-- Nothing 
     in this section applies to--
       ``(1) commuter rail passenger transportation (as defined in 
     section 24102(4) of this title) operations of a State or 
     local government authority (as those terms are defined in 
     section 5302(11) and (6), respectively, of this title) 
     eligible to receive financial assistance under section 5307 
     of this title, or to its contractor performing services in 
     connection with commuter rail passenger operations (as so 
     defined);
       ``(2) the Alaska Railroad or its contractors; or
       ``(3) the National Railroad Passenger Corporation's access 
     rights to railroad rights of way and facilities under current 
     law.''.
       (b) Conforming Amendments.--
       (1) The table of chapters for the title is amended by 
     inserting the following after the item relating to chapter 
     243:

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

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

     SEC. 302. STATE RAIL PLANS.

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

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

``Sec.
``22501. Definitions.
``22502. Authority.
``22503. Purposes.
``22504. Transparency; coordination; review.
``22505. Content.
``22506. Review.

     ``Sec. 22501. Definitions

       ``In this subchapter:
       ``(1) Private benefit.--
       ``(A) In general.--The term `private benefit'--
       ``(i) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(ii) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(B) Consultation.--The Secretary may seek the advice of 
     the States and rail carriers in further defining this term.
       ``(2) Public benefit.--
       ``(A) In general.--The term `public benefit'--
       ``(i) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and
       ``(ii) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(B) Consultation.--The Secretary may seek the advice of 
     the States and rail carriers in further defining this term.
       ``(3) State.--The term `State' means any of the 50 States 
     and the District of Columbia.
       ``(4) State rail transportation authority.--The term `State 
     rail transportation authority' means the State agency or 
     official responsible under the direction of the Governor of 
     the State or a State law for preparation, maintenance, 
     coordination, and administration of the State rail plan.''.

     ``Sec. 22502. Authority

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     subchapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22503. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system.

     ``Sec. 22504. Transparency; coordination; review

       ``(a) Preparation.--A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.
       ``(b) Intergovernmental Coordination.--A State shall review 
     the freight and passenger rail service activities and 
     initiatives by regional planning agencies, regional 
     transportation authorities, and municipalities within the 
     State, or in the region in which the State is located, while 
     preparing the plan, and shall include any recommendations 
     made by such agencies, authorities, and municipalities as 
     deemed appropriate by the State.

     ``Sec. 22505. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A review of all rail lines within the State, 
     including proposed high speed rail corridors and significant 
     rail line segments not currently in service.
       ``(3) A statement of the State's passenger rail service 
     objectives, including minimum service levels, for rail 
     transportation routes in the State.
       ``(4) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(5) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(6) A statement of public financing issues for rail 
     projects and service in the State, including a list of 
     current and prospective public capital and operating funding 
     resources, public subsidies, State taxation, and other 
     financial policies relating to rail infrastructure 
     development.

[[Page S13334]]

       ``(7) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(8) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports, and prioritized options to maximize service 
     integration and efficiency between rail and other modes of 
     transportation within the State.
       ``(9) A review of publicly funded projects within the State 
     to improve rail transportation safety and security, including 
     all major projects funded under section 130 of title 23.
       ``(10) A performance evaluation of passenger rail services 
     operating in the State, including possible improvements in 
     those services, and a description of strategies to achieve 
     those improvements.
       ``(11) A compilation of studies and reports on high-speed 
     rail corridor development within the State not included in a 
     previous plan under this subchapter, and a plan for funding 
     any recommended development of such corridors in the State.
       ``(12) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-Range Service and Investment Program.--
       ``(1) Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(5) 
     shall include the following matters:
       ``(A) A list of any rail capital projects expected to be 
     undertaken or supported in whole or in part by the State.
       ``(B) A detailed funding plan for those projects.
       ``(2) Project list content.--The list of rail capital 
     projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority should take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects on highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.

     ``Sec. 22506. Review

       The Secretary shall prescribe procedures for States to 
     submit State rail plans for review under this title, 
     including standardized format and data requirements. State 
     rail plans completed before the date of enactment of the 
     Passenger Rail Investment and Improvement Act of 2007 that 
     substantially meet the requirements of this chapter, as 
     determined by the Secretary, shall be deemed by the Secretary 
     to have met the requirements of this chapter''.
       (b) Conforming Amendments.--
       (1) The table of chapters for the title is amended by 
     inserting the following after the item relating to chapter 
     223:

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

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

     SEC. 303. NEXT GENERATION CORRIDOR TRAIN EQUIPMENT POOL.

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

     SEC. 304. FEDERAL RAIL POLICY.

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

     SEC. 305. RAIL COOPERATIVE RESEARCH PROGRAM.

       (a) Establishment and Content.--Chapter 249 is amended by 
     adding at the end the following:

     ``Sec. 24910. Rail cooperative research program

       ``(a) In General.--The Secretary shall establish and carry 
     out a rail cooperative research program. The program shall--
       ``(1) address, among other matters, intercity rail 
     passenger and freight rail services, including existing rail 
     passenger and freight technologies and speeds, incrementally 
     enhanced rail systems and infrastructure, and new high-speed 
     wheel-on-rail systems and rail security;
       ``(2) address ways to expand the transportation of 
     international trade traffic by rail, enhance the efficiency 
     of intermodal interchange at ports and other intermodal 
     terminals, and increase capacity and availability of rail 
     service for seasonal freight needs;
       ``(3) consider research on the interconnectedness of 
     commuter rail, passenger rail, freight rail, and other rail 
     networks; and
       ``(4) give consideration to regional concerns regarding 
     rail passenger and freight transportation, including meeting 
     research

[[Page S13335]]

     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.''.
       (b) Clerical Amendment.--The chapter analysis for chapter 
     249 is amended by adding at the end the following:

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

             [TITLE IV--PASSENGER RAIL SECURITY AND SAFETY

     [SEC. 400. SHORT TITLE.

       [This title may be cited as the ``Surface Transportation 
     and Rail Security Act of 2007''.

     [SEC. 401. RAIL TRANSPORTATION SECURITY RISK ASSESSMENT.

       [(a) In General.--
       [(1) Vulnerability and risk assessment.--The Secretary of 
     Homeland Security shall establish a task force, including the 
     Transportation Security Administration, the Department of 
     Transportation, and other appropriate agencies, to complete a 
     vulnerability and risk assessment of freight and passenger 
     rail transportation (encompassing railroads, as that term is 
     defined in section 20102(1) of title 49, United States Code). 
     The assessment shall include--
       [(A) a methodology for conducting the risk assessment, 
     including timelines, that addresses how the Department of 
     Homeland Security will work with the entities describe in 
     subsection (b) and make use of existing Federal expertise 
     within the Department of Homeland Security, the Department of 
     Transportation, and other appropriate agencies;
       [(B) identification and evaluation of critical assets and 
     infrastructures;
       [(C) identification of vulnerabilities and risks to those 
     assets and infrastructures;
       [(D) identification of vulnerabilities and risks that are 
     specific to the transportation of hazardous materials via 
     railroad;
       [(E) identification of security weaknesses in passenger and 
     cargo security, transportation infrastructure, protection 
     systems, procedural policies, communications systems, 
     employee training, emergency response planning, and any other 
     area identified by the assessment; and
       [(F) an account of actions taken or planned by both public 
     and private entities to address identified rail security 
     issues and assess the effective integration of such actions.
       [(2) Recommendations.--Based on the assessment conducted 
     under paragraph (1), the Secretary, in consultation with the 
     Secretary of Transportation, shall develop prioritized 
     recommendations for improving rail security, including any 
     recommendations the Secretary has for--
       [(A) improving the security of rail tunnels, rail bridges, 
     rail switching and car storage areas, other rail 
     infrastructure and facilities, information systems, 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 equipment to detect explosives and hazardous 
     chemical, biological, and radioactive substances, and any 
     appropriate countermeasures;
       [(C) training appropriate railroad or railroad shipper 
     employees in terrorism prevention, passenger evacuation, and 
     response activities;
       [(D) conducting public outreach campaigns on passenger 
     railroads;
       [(E) deploying surveillance equipment; and
       [(F) identifying the immediate and long-term costs of 
     measures that may be required to address those risks.
       [(3) Plans.--The report required by subsection (c) shall 
     include--
       [(A) a plan, developed in consultation with the freight and 
     intercity passenger railroads, and State and local 
     governments, for the Federal government to provide increased 
     security support at high or severe threat levels of alert;
       [(B) a plan for coordinating existing and planned rail 
     security initiatives undertaken by the public and private 
     sectors; and
       [(C) a contingency plan, developed in conjunction with 
     freight and intercity and commuter passenger railroads, to 
     ensure the continued movement of freight and passengers in 
     the event of an attack affecting the railroad system, which 
     shall contemplate--
       [(i) the possibility of rerouting traffic due to the loss 
     of critical infrastructure, such as a bridge, tunnel, yard, 
     or station; and
       [(ii) methods of continuing railroad service in the 
     Northeast Corridor in the event of a commercial power loss, 
     or catastrophe affecting a critical bridge, tunnel, yard, or 
     station.
       [(b) Consultation; Use of Existing Resources.--In carrying 
     out the assessment and developing the recommendations and 
     plans required by subsection (a), the Secretary of Homeland 
     Security shall consult with rail management, rail labor, 
     owners or lessors of rail cars used to transport hazardous 
     materials, first responders, shippers of hazardous materials, 
     public safety officials, and other relevant parties.
       [(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, the House 
     of Representatives Committee on Transportation and 
     Infrastructure, and the House of Representatives Committee on 
     Homeland Security a report containing the assessment, 
     prioritized recommendations, and plans required by subsection 
     (a) and an estimate of the cost to implement such 
     recommendations.
       [(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) Annual Updates.--The Secretary, in consultation with 
     the Secretary of Transportation, shall update the assessment 
     and recommendations each year and transmit a report, which 
     may be submitted in both classified and redacted formats, to 
     the Committees named in subsection (c)(1), containing the 
     updated assessment and recommendations.
       [(e) Funding.--Out of funds appropriated pursuant to 
     section 114(u) of title 49, United States Code, as amended by 
     section 416 of this title, there shall be made available to 
     the Secretary of Homeland Security to carry out this section 
     $5,000,000 for fiscal year 2008.

     [SEC. 402. SYSTEMWIDE AMTRAK SECURITY UPGRADES.

       [(a) In General.--Subject to subsection (c) the Secretary 
     of Homeland Security, in consultation with the Assistant 
     Secretary of Homeland Security (Transportation Security 
     Administration), is authorized to make grants to Amtrak--
       [(1) to secure major tunnel access points and ensure tunnel 
     integrity in New York, Baltimore, and Washington, DC;
       [(2) to secure Amtrak trains;
       [(3) to secure Amtrak stations;
       [(4) to obtain a watch list identification system approved 
     by the Secretary;
       [(5) to obtain train tracking and interoperable 
     communications systems that are coordinated to the maximum 
     extent possible;
       [(6) to hire additional police and security officers, 
     including canine units;
       [(7) to expand emergency preparedness efforts; and
       [(8) for employee security training.
       [(b) Conditions.--The Secretary of Transportation shall 
     disburse funds to Amtrak provided under subsection (a) for 
     projects contained in a systemwide security plan approved by 
     the Secretary of Homeland Security. The plan shall include 
     appropriate

[[Page S13336]]

     measures to address security awareness, emergency response, 
     and passenger evacuation training.
       [(c) Equitable Geographic Allocation.--The Secretary shall 
     ensure that, subject to meeting the highest security needs on 
     Amtrak's entire system and consistent with the risk 
     assessment required under section 401, stations and 
     facilities located outside of the Northeast Corridor receive 
     an equitable share of the security funds authorized by this 
     section.
       [(d) Availability of Funds.--Out of funds appropriated 
     pursuant to section 114(u) of title 49, United States Code, 
     as amended by section 416 of this title, there shall be made 
     available to the Secretary of Homeland Security and the 
     Assistant Secretary of Homeland Security (Transportation 
     Security Administration) to carry out this section--
       [(1) $63,500,000 for fiscal year 2008;
       [(2) $30,000,000 for fiscal year 2009; and
       [(3) $30,000,000 for fiscal year 2010.
     [Amounts appropriated pursuant to this subsection shall 
     remain available until expended.

     [SEC. 403. FIRE AND LIFE-SAFETY IMPROVEMENTS.

       [(a) Life-Safety Needs.--The Secretary of Transportation, 
     in consultation with the Secretary of Homeland Security, is 
     authorized to make grants to Amtrak for the purpose of making 
     fire and life-safety improvements to Amtrak tunnels on the 
     Northeast Corridor in New York, NY, Baltimore, MD, and 
     Washington, DC.
       [(b) Authorization of Appropriations.--Out of funds 
     appropriated pursuant to section 416(b) of this title, there 
     shall be made available to the Secretary of Transportation 
     for the purposes of carrying out subsection (a) the following 
     amounts:
       [(1) For the 6 New York tunnels to provide ventilation, 
     electrical, and fire safety technology upgrades, emergency 
     communication and lighting systems, and emergency access and 
     egress for passengers--
       [(A) $100,000,000 for fiscal year 2008;
       [(B) $100,000,000 for fiscal year 2009;
       [(C) $100,000,000 for fiscal year 2010; and
       [(D) $100,000,000 for fiscal year 2011.
       [(2) For the Baltimore & Potomac tunnel and the Union 
     tunnel, together, to provide adequate drainage, ventilation, 
     communication, lighting, and passenger egress upgrades--
       [(A) $10,000,000 for fiscal year 2008;
       [(B) $10,000,000 for fiscal year 2009;
       [(C) $10,000,000 for fiscal year 2010; and
       [(D) $10,000,000 for fiscal year 2011.
       [(3) For the Washington, DC, Union Station tunnels to 
     improve ventilation, communication, lighting, and passenger 
     egress upgrades--
       [(A) $8,000,000 for fiscal year 2008;
       [(B) $8,000,000 for fiscal year 2009;
       [(C) $8,000,000 for fiscal year 2010; and
       [(D) $8,000,000 for fiscal year 2011.
       [(c) Infrastructure Upgrades.--Out of funds appropriated 
     pursuant to section 416(b) of this title, there shall be made 
     available to the Secretary of Transportation for fiscal year 
     2008 $3,000,000 for the preliminary design of options for a 
     new tunnel on a different alignment to augment the capacity 
     of the existing Baltimore tunnels.
       [(d) Availability of Appropriated Funds.--Amounts made 
     available pursuant to this section shall remain available 
     until expended.
       [(e) Plans Required.--The Secretary of Transportation may 
     not make amounts available to Amtrak for obligation or 
     expenditure under subsection (a)--
       [(1) until Amtrak has submitted to the Secretary, and the 
     Secretary has approved, an engineering and financial plan for 
     such projects; and
       [(2) unless, for each project funded pursuant to this 
     section, the Secretary has approved a project management plan 
     prepared by Amtrak addressing appropriate project budget, 
     construction schedule, recipient staff organization, document 
     control and record keeping, change order procedure, quality 
     control and assurance, periodic plan updates, and periodic 
     status reports.
       [(f) Review of Plans.--The Secretary of Transportation 
     shall complete the review of the plans required by paragraphs 
     (1) and (2) of subsection (e) and approve or disapprove the 
     plans within 45 days after the date on which each such plan 
     is submitted by Amtrak. If the Secretary determines that a 
     plan is incomplete or deficient, the Secretary shall notify 
     Amtrak of the incomplete items or deficiencies and Amtrak 
     shall, within 30 days after receiving the Secretary's 
     notification, submit a modified plan for the Secretary's 
     review. Within 15 days after receiving additional information 
     on items previously included in the plan, and within 45 days 
     after receiving items newly included in a modified plan, the 
     Secretary shall either approve the modified plan, or, if the 
     Secretary finds the plan is still incomplete or deficient, 
     the Secretary shall identify in writing to the Senate 
     Committee on Commerce, Science, and Transportation, the House 
     of Representatives Committee on Transportation and 
     Infrastructure, and the House of Representatives Committee on 
     Homeland Security the portions of the plan the Secretary 
     finds incomplete or deficient, approve all other portions of 
     the plan, obligate the funds associated with those other 
     portions, and execute an agreement with Amtrak within 15 days 
     thereafter on a process for resolving the remaining portions 
     of the plan.
       [(g) Financial Contribution From Other Tunnel Users.--The 
     Secretary shall, taking into account the need for the timely 
     completion of all portions of the tunnel projects described 
     in subsection (a)--
       [(1) consider the extent to which rail carriers other than 
     Amtrak use or plan to 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 at levels reflecting the extent of 
     their use or planned use of the tunnels, if feasible.

     [SEC. 404. FREIGHT AND PASSENGER RAIL SECURITY UPGRADES.

       [(a) Security Improvement Grants.--The Secretary of 
     Homeland Security, through the Assistant Secretary of 
     Homeland Security (Transportation Security Administration) 
     and other appropriate agencies, is authorized to make grants 
     to freight railroads, the Alaska Railroad, hazardous 
     materials shippers, owners of rail cars used in the 
     transportation of hazardous materials, universities, colleges 
     and research centers, State and local governments (for rail 
     passenger facilities and infrastructure not owned by Amtrak), 
     and, through the Secretary of Transportation, to Amtrak, for 
     full or partial reimbursement of costs incurred in the 
     conduct of activities to prevent or respond to acts of 
     terrorism, sabotage, or other intercity passenger rail and 
     freight rail security vulnerabilities and risks identified 
     under section 401, including--
       [(1) security and redundancy for critical communications, 
     computer, and train control systems essential for secure rail 
     operations;
       [(2) accommodation of rail cargo or passenger screening 
     equipment at the United States-Mexico border, the United 
     States-Canada border, or other ports of entry;
       [(3) the security of hazardous material transportation by 
     rail;
       [(4) secure intercity passenger rail stations, trains, and 
     infrastructure;
       [(5) structural modification or replacement of rail cars 
     transporting high hazard materials to improve their 
     resistance to acts of terrorism;
       [(6) employee security awareness, preparedness, passenger 
     evacuation, and emergency response training;
       [(7) public security awareness campaigns for passenger 
     train operations;
       [(8) the sharing of intelligence and information about 
     security threats;
       [(9) to obtain train tracking and interoperable 
     communications systems that are coordinated to the maximum 
     extent possible;
       [(10) to hire additional police and security officers, 
     including canine units; and
       [(11) other improvements recommended by the report required 
     by section 401, including infrastructure, facilities, and 
     equipment upgrades.
       [(b) Accountability.--The Secretary shall adopt necessary 
     procedures, including audits, to ensure that grants made 
     under this section are expended in accordance with the 
     purposes of this title and the priorities and other criteria 
     developed by the Secretary.
       [(c) Allocation.--The Secretary shall distribute the funds 
     authorized by this section based on risk and vulnerability as 
     determined under section 401, and shall encourage non-Federal 
     financial participation in awarding grants. With respect to 
     grants for intercity passenger rail security, the Secretary 
     shall also take into account passenger volume and whether a 
     station is used by commuter rail passengers as well as 
     intercity rail passengers.
       [(d) Conditions.--The Secretary of Transportation may not 
     disburse funds to Amtrak under subsection (a) unless Amtrak 
     meets the conditions set forth in section 402(b) of this 
     title.
       [(e) Allocation Between Railroads and Others.--Unless as a 
     result of the assessment required by section 401 the 
     Secretary of Homeland Security determines that critical rail 
     transportation security needs require reimbursement in 
     greater amounts to any eligible entity, no grants under this 
     section may be made--
       [(1) in excess of $45,000,000 to Amtrak; or
       [(2) in excess of $80,000,000 for the purposes described in 
     paragraphs (3) and (5) of subsection (a).
       [(f) Authorization of Appropriations.--Out of funds 
     appropriated pursuant to section 114(u) of title 49, United 
     States Code, as amended by section 416 of this title,, there 
     shall be made available to the Secretary of Homeland Security 
     to carry out this section--
       [(1) $100,000,000 for fiscal year 2008;
       [(2) $100,000,000 for fiscal year 2009; and
       [(3) $100,000,000 for fiscal year 2010.
     Amounts made available pursuant to this subsection shall 
     remain available until expended.
       [(g) High Hazard Materials Defined.--In this section, the 
     term ``high hazard materials'' means quantities of poison 
     inhalation hazard materials, Class 2.3 gases, Class 6.1 
     materials, and anhydrous ammonia that the Secretary, in 
     consultation with the Secretary of Transportation, determines 
     pose a security risk.

     [SEC. 405. RAIL SECURITY RESEARCH AND DEVELOPMENT.

       [(a) Establishment of Research and Development Program.--
     The Secretary of Homeland Security, through the Under 
     Secretary for Science and Technology and the Assistant 
     Secretary of Homeland Security (Transportation Security 
     Administration), in consultation with the Secretary of 
     Transportation shall carry out a research and development 
     program for the purpose of improving freight and intercity 
     passenger rail

[[Page S13337]]

     security that may include research and development projects 
     to--
       [(1) reduce the vulnerability of passenger trains, 
     stations, and equipment to explosives and hazardous chemical, 
     biological, and radioactive substances;
       [(2) test new emergency response techniques and 
     technologies;
       [(3) develop improved freight technologies, including--
       [(A) technologies for sealing rail cars;
       [(B) automatic inspection of rail cars;
       [(C) communication-based train controls; and
       [(D) emergency response training;
       [(4) test wayside detectors that can detect tampering with 
     railroad equipment;
       [(5) support enhanced security for the transportation of 
     hazardous materials by rail, including--
       [(A) technologies to detect a breach in a tank car or other 
     rail car used to transport hazardous materials and transmit 
     information about the integrity of cars to the train crew or 
     dispatcher;
       [(B) research to improve tank car integrity, with a focus 
     on tank cars that carry high hazard materials (as defined in 
     section 404(g) of this title); and
       [(C) techniques to transfer hazardous materials from rail 
     cars that are damaged or otherwise represent an unreasonable 
     risk to human life or public safety; and
       [(6) other projects that address vulnerabilities and risks 
     identified under section 401.
       [(b) Coordination With Other Research Initiatives.--The 
     Secretary of Homeland Security shall ensure that the research 
     and development program authorized by this section is 
     coordinated with other research and development initiatives 
     at the Department of Homeland Security and the Department of 
     Transportation. The Secretary shall carry out any research 
     and development project authorized by this section through a 
     reimbursable agreement with the Secretary of Transportation, 
     if the Secretary of Transportation--
       [(1) is already sponsoring a research and development 
     project in a similar area; or
       [(2) has a unique facility or capability that would be 
     useful in carrying out the project.
       [(c) Grants and Accountability.--To carry out the research 
     and development program, the Secretary may award grants to 
     the entities described in section 404(a) and shall adopt 
     necessary procedures, including audits, to ensure that grants 
     made under this section are expended in accordance with the 
     purposes of this title and the priorities and other criteria 
     developed by the Secretary.
       [(d) Authorization of Appropriations.--Out of funds 
     appropriated pursuant to section 114(u) of title 49, United 
     States Code, as amended by section 416 of this title,, there 
     shall be made available to the Secretary of Homeland Security 
     to carry out this section--
       [(1) $33,000,000 for fiscal year 2008;
       [(2) $33,000,000 for fiscal year 2009; and
       [(3) $33,000,000 for fiscal year 2010.
       [Amounts made available pursuant to this subsection shall 
     remain available until expended.

     [SEC. 406. OVERSIGHT AND GRANT PROCEDURES.

       [(a) Secretarial Oversight.--The Secretary of Homeland 
     Security may use up to 0.5 percent of amounts made available 
     for capital projects under this title to enter into contracts 
     for the review of proposed capital projects and related 
     program management plans and to oversee construction of such 
     projects.
       [(b) Use of Funds.--The Secretary may use amounts available 
     under subsection (a) of this subsection to make contracts to 
     audit and review the safety, procurement, management, and 
     financial compliance of a recipient of amounts under this 
     title.
       [(c) Procedures for Grant Award.--The Secretary shall, 
     within 90 days after the date of enactment of this Act, 
     prescribe procedures and schedules for the awarding of grants 
     under this title, including application and qualification 
     procedures (including a requirement that the applicant have a 
     security plan), and a record of decision on applicant 
     eligibility. The procedures shall include the execution of a 
     grant agreement between the grant recipient and the Secretary 
     and shall be consistent, to the extent practicable, with the 
     grant procedures established under section 70107 of title 46, 
     United States Code.

     [SEC. 407. AMTRAK PLAN TO ASSIST FAMILIES OF PASSENGERS 
                   INVOLVED IN RAIL PASSENGER ACCIDENTS.

       [(a) In General.--Chapter 243 of title 49, United States 
     Code, is amended by adding at the end the following:

     [``Sec. 24316. Plans to address needs of families of 
       passengers involved in rail passenger accidents

       [``(a) Submission of Plan.--Not later than 6 months after 
     the date of the enactment of the Surface Transportation and 
     Rail Security Act of 2007 Amtrak shall submit to the Chairman 
     of the National Transportation Safety Board, the Secretary of 
     Transportation, and the Secretary of Homeland Security a plan 
     for addressing the needs of the families of passengers 
     involved in any rail passenger accident involving an Amtrak 
     intercity train and resulting in a loss of life.
       [``(b) Contents of Plans.--The plan to be submitted by 
     Amtrak under subsection (a) shall include, at a minimum, the 
     following:
       [``(1) A process by which Amtrak will maintain and provide 
     to the National Transportation Safety Board and the Secretary 
     of Transportation, immediately upon request, a list (which is 
     based on the best available information at the time of the 
     request) of the names of the passengers aboard the train 
     (whether or not such names have been verified), and will 
     periodically update the list. The plan shall include a 
     procedure, with respect to unreserved trains and passengers 
     not holding reservations on other trains, for Amtrak to use 
     reasonable efforts to ascertain the number and names of 
     passengers aboard a train involved in an accident.
       [``(2) A plan for creating and publicizing a reliable, 
     toll-free telephone number within 4 hours after such an 
     accident occurs, and for providing staff, to handle calls 
     from the families of the passengers.
       [``(3) A process for notifying the families of the 
     passengers, before providing any public notice of the names 
     of the passengers, by suitably trained individuals.
       [``(4) A process for providing the notice described in 
     paragraph (2) to the family of a passenger as soon as Amtrak 
     has verified that the passenger was aboard the train (whether 
     or not the names of all of the passengers have been 
     verified).
       [``(5) A process by which the family of each passenger will 
     be consulted about the disposition of all remains and 
     personal effects of the passenger within Amtrak's control; 
     that any possession of the passenger within Amtrak's control 
     will be returned to the family unless the possession is 
     needed for the accident investigation or any criminal 
     investigation; and that any unclaimed possession of a 
     passenger within Amtrak's control will be retained by the 
     rail passenger carrier for at least 18 months.
       [``(6) A process by which the treatment of the families of 
     nonrevenue passengers will be the same as the treatment of 
     the families of revenue passengers.
       [``(7) An assurance that Amtrak will provide adequate 
     training to its employees and agents to meet the needs of 
     survivors and family members following an accident.
       [``(c) Use of Information.--The National Transportation 
     Safety Board, the Secretary of Transportation, and Amtrak may 
     not release any personal information on a list obtained under 
     subsection (b)(1) but may provide information on the list 
     about a passenger to the family of the passenger to the 
     extent that the Board or Amtrak considers appropriate.
       [``(d) Limitation on Liability.--Amtrak shall not be liable 
     for damages in any action brought in a Federal or State court 
     arising out of the performance of Amtrak in preparing or 
     providing a passenger list, or in providing information 
     concerning a train reservation, pursuant to a plan submitted 
     by Amtrak under subsection (b), unless such liability was 
     caused by Amtrak's conduct.
       [``(e) Limitation on Statutory Construction.--Nothing in 
     this section may be construed as limiting the actions that 
     Amtrak may take, or the obligations that Amtrak may have, in 
     providing assistance to the families of passengers involved 
     in a rail passenger accident.
       [``(f) Funding.--Out of funds appropriated pursuant to 
     section 416(b) of the Surface Transportation and Rail 
     Security Act of 2007, there shall be made available to the 
     Secretary of Transportation for the use of Amtrak $500,000 
     for fiscal year 2007 to carry out this section. Amounts made 
     available pursuant to this subsection shall remain available 
     until expended.''.
       [(b) Conforming Amendment.--The chapter analysis for 
     chapter 243 of title 49, United States Code, is amended by 
     adding at the end the following:

[``24316.  Plan to assist families of passengers involved in rail 
              passenger accidents.''.

     [SEC. 408. NORTHERN BORDER RAIL PASSENGER REPORT.

       [Within 180 days after the date of enactment of this Act, 
     the Secretary of Homeland Security, in consultation with the 
     Assistant Secretary of Homeland Security (Transportation 
     Security Administration), the Secretary of Transportation, 
     heads of other appropriate Federal departments, and agencies 
     and the National Railroad Passenger Corporation, shall 
     transmit a report to the Senate Committee on Commerce, 
     Science, and Transportation, the House of Representatives 
     Committee on Transportation and Infrastructure, and the House 
     of Representatives Committee on Homeland Security that 
     contains--
       [(1) a description of the current system for screening 
     passengers and baggage on passenger rail service between the 
     United States and Canada;
       [(2) an assessment of the current program to provide 
     preclearance of airline passengers between the United States 
     and Canada as outlined in ``The Agreement on Air Transport 
     Preclearance between the Government of Canada and the 
     Government of the United States of America'', dated January 
     18, 2001;
       [(3) an assessment of the current program to provide 
     preclearance of freight railroad traffic between the United 
     States and Canada as outlined in the ``Declaration of 
     Principle for the Improved Security of Rail Shipments by 
     Canadian National Railway and Canadian Pacific Railway from 
     Canada to the United States'', dated April 2, 2003;
       [(4) information on progress by the Department of Homeland 
     Security and other Federal agencies towards finalizing a 
     bilateral protocol with Canada that would provide for 
     preclearance of passengers on trains operating between the 
     United States and Canada;

[[Page S13338]]

       [(5) a description of legislative, regulatory, budgetary, 
     or policy barriers within the United States Government to 
     providing pre-screened passenger lists for rail passengers 
     traveling between the United States and Canada to the 
     Department of Homeland Security;
       [(6) a description of the position of the Government of 
     Canada and relevant Canadian agencies with respect to 
     preclearance of such passengers;
       [(7) a draft of any changes in existing Federal law 
     necessary to provide for pre-screening of such passengers and 
     providing pre-screened passenger lists to the Department of 
     Homeland Security; and
       [(8) an analysis of the feasibility of reinstating in-
     transit inspections onboard international Amtrak trains.

     [SEC. 409. RAIL WORKER SECURITY TRAINING PROGRAM.

       [(a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Homeland Security and 
     the Secretary of Transportation, in consultation with 
     appropriate law enforcement, security, and terrorism experts, 
     representatives of railroad carriers, and nonprofit employee 
     organizations that represent rail workers, shall develop and 
     issue detailed guidance for a rail worker security training 
     program to prepare front-line workers for potential threat 
     conditions. The guidance shall take into consideration any 
     current security training requirements or best practices.
       [(b) Program Elements.--The guidance developed under 
     subsection (a) shall include elements, as appropriate to 
     passenger and freight rail service, that address the 
     following:
       [(1) Determination of the seriousness of any occurrence.
       [(2) Crew communication and coordination.
       [(3) Appropriate responses to defend or protect oneself.
       [(4) Use of protective devices.
       [(5) Evacuation procedures.
       [(6) Psychology of terrorists to cope with hijacker 
     behavior and passenger responses.
       [(7) Situational training exercises regarding various 
     threat conditions.
       [(8) Any other subject the Secretary considers appropriate.
       [(c) Railroad Carrier Programs.--Not later than 90 days 
     after the Secretary of Homeland Security issues guidance 
     under subsection (a) in final form, each railroad carrier 
     shall develop a rail worker security training program in 
     accordance with that guidance and submit it to the Secretary 
     for review. Not later than 30 days after receiving a railroad 
     carrier's program under this subsection, the Secretary shall 
     review the program and transmit comments to the railroad 
     carrier concerning any revisions the Secretary considers 
     necessary for the program to meet the guidance requirements. 
     A railroad carrier shall respond to the Secretary's comments 
     within 30 days after receiving them.
       [(d) Training.--Not later than 1 year after the Secretary 
     reviews the training program developed by a railroad carrier 
     under this section, the railroad carrier shall complete the 
     training of all front-line workers in accordance with that 
     program. The Secretary shall review implementation of the 
     training program of a representative sample of railroad 
     carriers and report to the Senate Committee on Commerce, 
     Science, and Transportation, the House of Representatives 
     Committee on Transportation and Infrastructure, and the House 
     of Representatives Committee on Homeland Security on the 
     number of reviews conducted and the results. The Secretary 
     may submit the report in both classified and redacted formats 
     as necessary.
       [(e) Updates.--The Secretary shall update the training 
     guidance issued under subsection (a) as appropriate to 
     reflect new or different security threats. Railroad carriers 
     shall revise their programs accordingly and provide 
     additional training to their front-line workers within a 
     reasonable time after the guidance is updated.
       [(f) Front-Line Workers Defined.--In this section, the term 
     ``front-line workers'' means security personnel, dispatchers, 
     train operators, other onboard employees, maintenance and 
     maintenance support personnel, bridge tenders, as well as 
     other appropriate employees of railroad carriers, as defined 
     by the Secretary.
       [(g) Other Employees.--The Secretary of Homeland Security 
     shall issue guidance and best practices for a rail shipper 
     employee security program containing the elements listed 
     under subsection (b) as appropriate.

     [SEC. 410. WHISTLEBLOWER PROTECTION PROGRAM.

       [(a) In General.--Subchapter A of chapter 201 of title 49, 
     United States Code, is amended by inserting after section 
     20117 the following:

     [``Sec. 20118. Whistleblower protection for rail security 
       matters

       [``(a) Discrimination Against Employee.--No rail carrier 
     engaged in interstate or foreign commerce may discharge a 
     railroad employee or otherwise discriminate against a 
     railroad employee because the employee (or any person acting 
     pursuant to a request of the employee)--
       [``(1) provided, caused to be provided, or is about to 
     provide or cause to be provided, to the employer or the 
     Federal Government information relating to a reasonably 
     perceived threat, in good faith, to security; or
       [``(2) provided, caused to be provided, or is about to 
     provide or cause to be provided, testimony before Congress or 
     at any Federal or State proceeding regarding a reasonably 
     perceived threat, in good faith, to security; or
       [``(3) refused to violate or assist in the violation of any 
     law, rule or regulation related to rail security.
       [``(b) Dispute Resolution.--A dispute, grievance, or claim 
     arising under this section is subject to resolution under 
     section 3 of the Railway Labor Act (45 U.S.C. 153). In a 
     proceeding by the National Railroad Adjustment Board, a 
     division or delegate of the Board, or another board of 
     adjustment established under section 3 to resolve the 
     dispute, grievance, or claim the proceeding shall be 
     expedited and the dispute, grievance, or claim shall be 
     resolved not later than 180 days after it is filed. If the 
     violation is a form of discrimination that does not involve 
     discharge, suspension, or another action affecting pay, and 
     no other remedy is available under this subsection, the 
     Board, division, delegate, or other board of adjustment may 
     award the employee reasonable damages, including punitive 
     damages, of not more than $20,000.
       [``(c) Procedural Requirements.--Except as provided in 
     subsection (b), the procedure set forth in section 
     42121(b)(2)(B) of this subtitle, including the burdens of 
     proof, applies to any complaint brought under this section.
       [``(d) Election of Remedies.--An employee of a railroad 
     carrier may not seek protection under both this section and 
     another provision of law for the same allegedly unlawful act 
     of the carrier.
       [``(e) Disclosure of Identity.--
       [``(1) Except as provided in paragraph (2) of this 
     subsection, or with the written consent of the employee, the 
     Secretary of Transportation may not disclose the name of an 
     employee of a railroad carrier who has provided information 
     about an alleged violation of this section.
       [``(2) The Secretary shall disclose to the Attorney General 
     the name of an employee described in paragraph (1) of this 
     subsection if the matter is referred to the Attorney General 
     for enforcement.''.
       [(b) Conforming Amendment.--The chapter analysis for 
     chapter 201 of title 49, United States Code, is amended by 
     inserting after the item relating to section 20117 the 
     following:

[``20118. Whistleblower protection for rail security matters.''.

     [SEC. 411. HIGH HAZARD MATERIAL SECURITY THREAT MITIGATION 
                   PLANS.

       [(a) In General.--The Secretary of Homeland Security, in 
     consultation with the Assistant Secretary of Homeland 
     Security (Transportation Security Administration) and the 
     Secretary of Transportation, shall require rail carriers 
     transporting a high hazard material, as defined in section 
     404(g) of this title to develop a high hazard material 
     security threat mitigation plan containing appropriate 
     measures, including alternative routing and temporary 
     shipment suspension options, to address assessed risks to 
     high consequence targets. The plan, and any information 
     submitted to the Secretary under this section shall be 
     protected as sensitive security information under the 
     regulations prescribed under section 114(s) of title 49, 
     United States Code.
       [(b) Implementation.--A high hazard material security 
     threat mitigation plan shall be put into effect by a rail 
     carrier for the shipment of high hazardous materials by rail 
     on the rail carrier's right-of-way when the threat levels of 
     the Homeland Security Advisory System are high or severe and 
     specific intelligence of probable or imminent threat exists 
     towards--
       [(1) a high-consequence target that is within the 
     catastrophic impact zone of a railroad right-of-way used to 
     transport high hazardous material; or
       [(2) rail infrastructure or operations within the immediate 
     vicinity of a high-consequence target.
       [(c) Completion and Review of Plans.--
       [(1) Plans required.--Each rail carrier shall--
       [(A) submit a list of routes used to transport high hazard 
     materials to the Secretary of Homeland Security within 60 
     days after the date of enactment of this Act;
       [(B) develop and submit a high hazard material security 
     threat mitigation plan to the Secretary within 180 days after 
     it receives the notice of high consequence targets on such 
     routes by the Secretary; and
       [(C) submit any subsequent revisions to the plan to the 
     Secretary within 30 days after making the revisions.
       [(2) Review and updates.--The Secretary, with assistance of 
     the Secretary of Transportation, shall review the plans and 
     transmit comments to the railroad carrier concerning any 
     revisions the Secretary considers necessary. A railroad 
     carrier shall respond to the Secretary's comments within 30 
     days after receiving them. Each rail carrier shall update and 
     resubmit its plan for review not less than every 2 years.
       [(d) Definitions.--In this section:
       [(1) The term ``high-consequence target'' means a building, 
     buildings, infrastructure, public space, or natural resource 
     designated by the Secretary of Homeland Security that is 
     viable terrorist target of national significance, the attack 
     of which could result in--
       [(A) catastrophic loss of life; and
       [(B) significantly damaged national security and defense 
     capabilities; or
       [(C) national economic harm.
       [(2) The term ``catastrophic impact zone'' means the area 
     immediately adjacent to, under, or above an active railroad 
     right-of-

[[Page S13339]]

     way used to ship high hazard materials in which the potential 
     release or explosion of the high hazard material being 
     transported would likely cause--
       [(A) loss of life; or
       [(B) significant damage to property or structures.
       [(3) The term ``rail carrier'' has the meaning given that 
     term by section 10102(5) of title 49, United States Code.

     [SEC. 412. MEMORANDUM OF AGREEMENT.

       [(a) Memorandum of Agreement.--Similar to the public 
     transportation security annex between the two departments 
     signed on September 8, 2005, within 1 year after the date of 
     enactment of this Act, the Secretary of Transportation and 
     the Secretary of Homeland Security shall execute and develop 
     an annex to the memorandum of agreement between the two 
     departments signed on September 28, 2004, governing the 
     specific roles, delineations of responsibilities, resources 
     and commitments of the Department of Transportation and the 
     Department of Homeland Security, respectively, in addressing 
     railroad transportation security matters, including the 
     processes the departments will follow to promote 
     communications, efficiency, and nonduplication of effort.
       [(b) Rail Safety Regulations.--Section 20103(a) of title 
     49, United States Code, is amended by striking ``safety'' the 
     first place it appears, and inserting ``safety, including 
     security,''.

     [SEC. 413. RAIL SECURITY ENHANCEMENTS.

       [(a) Rail Police Officers.--Section 28101 of title 49, 
     United States Code, is amended--
       [(1) by inserting ``(a) In General.--'' before ``Under''; 
     and
       [(2) by striking ``the rail carrier'' each place it appears 
     and inserting ``any rail carrier''.
       [(b) Review of Rail Regulations.--Within 1 year after the 
     date of enactment of this Act, the Secretary of 
     Transportation, in consultation with the Secretary of 
     Homeland Security and the Assistant Secretary of Homeland 
     Security (Transportation Security Administration), shall 
     review existing rail regulations of the Department of 
     Transportation for the purpose of identifying areas in which 
     those regulations need to be revised to improve rail 
     security.

     [SEC. 414. PUBLIC AWARENESS.

       [Not later than 90 days after the date of enactment of this 
     Act, the Secretary of Homeland Security, in consultation with 
     the Secretary of Transportation, shall develop a national 
     plan for public outreach and awareness. Such plan shall be 
     designed to increase awareness of measures that the general 
     public, railroad passengers, and railroad employees can take 
     to increase railroad system security. Such plan shall also 
     provide outreach to railroad carriers and their employees to 
     improve their awareness of available technologies, ongoing 
     research and development efforts, and available Federal 
     funding sources to improve railroad security. Not later than 
     9 months after the date of enactment of this Act, the 
     Secretary of Homeland Security shall implement the plan 
     developed under this section.

     [SEC. 415. RAILROAD HIGH HAZARD MATERIAL TRACKING.

       [(a) Wireless Communications.--
       [(1) In general.--In conjunction with the research and 
     development program established under section 405 and 
     consistent with the results of research relating to wireless 
     tracking technologies, the Secretary of Homeland Security, in 
     consultation with the Assistant Secretary of Homeland 
     Security (Transportation Security Administration), shall 
     develop a program that will encourage the equipping of rail 
     cars transporting high hazard materials (as defined in 
     section 404(g) of this title) with wireless terrestrial or 
     satellite communications technology that provides--
       [(A) car position location and tracking capabilities;
       [(B) notification of rail car depressurization, breach, or 
     unsafe temperature; and
       [(C) notification of hazardous material release.
       [(2) Coordination.--In developing the program required by 
     paragraph (1), the Secretary shall--
       [(A) consult with the Secretary of Transportation to 
     coordinate the program with any ongoing or planned efforts 
     for rail car tracking at the Department of Transportation; 
     and
       [(B) ensure that the program is consistent with 
     recommendations and findings of the Department of Homeland 
     Security's hazardous material tank rail car tracking pilot 
     programs.
       [(b) Funding.--Out of funds appropriated pursuant to 
     section 114(u) of title 49, United States Code, as amended by 
     section 416 of this title, there shall be made available to 
     the Secretary of Homeland Security to carry out this section 
     $3,000,000 for each of fiscal years 2008, 2009, and 2010.

     [SEC. 416. AUTHORIZATION OF APPROPRIATIONS.

       [(a) Transportation Security Administration 
     Authorization.--Section 114 of title 49, United States Code, 
     is amended by adding at the end thereof the following:
       [``(u) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of Homeland 
     Security for rail security--
       [``(1) $205,000,000 for fiscal year 2008;
       [``(2) $166,000,000 for fiscal year 2009; and
       [``(3) $166,000,000 for fiscal year 2010.''.
       [(b) Department of Transportation.--There are authorized to 
     be appropriated to the Secretary of Transportation to carry 
     out this title and sections 20118 and 24316 of title 49, 
     United States Code, as added by this title--
       [(1) $121,000,000 for fiscal year 2008;
       [(2) $118,000,000 for fiscal year 2009;
       [(3) $118,000,000 for fiscal year 2010; and
       [(4) $118,000,000 for fiscal year 2011.

                    TITLE IV--IMPROVED RAIL SECURITY

     SEC. 401. DEFINITIONS.

       In this title:
       (1) High hazard materials.--The term ``high hazard 
     materials'' means quantities of poison inhalation hazard 
     materials, Class 2.3 gases, Class 6.1 materials, anhydrous 
     ammonia, and other hazardous materials that the Secretary, in 
     consultation with the Secretary of Transportation, determines 
     pose a security risk.
       (2) Secretary.--The term ``Secretary'' refers to the 
     Secretary of Homeland Security unless otherwise noted.

     SEC. 402. RAIL TRANSPORTATION SECURITY RISK ASSESSMENT.

       (a) In General.--
       (1) Risk assessment.--The Secretary shall establish a task 
     force, including the Transportation Security Administration 
     and other agencies within the Department, the Department of 
     Transportation, and other appropriate Federal agencies, to 
     complete a risk assessment of freight and passenger rail 
     transportation (encompassing railroads, as that term is 
     defined in section 20102(1) of title 49, United States Code). 
     The assessment shall include--
       (A) a methodology for conducting the risk assessment, 
     including timelines, that addresses how the Department of 
     Homeland Security will work with the entities described in 
     subsection (b) and make use of existing Federal expertise 
     within the Department of Homeland Security, the Department of 
     Transportation, and other appropriate agencies;
       (B) identification and evaluation of critical assets and 
     infrastructures;
       (C) identification of risks to those assets and 
     infrastructures;
       (D) identification of risks that are specific to the 
     transportation of hazardous materials via railroad;
       (E) identification of risks to passenger and cargo 
     security, transportation infrastructure (including rail 
     tunnels used by passenger and freight railroads in high 
     threat urban areas), protection systems, operations, 
     communications systems, employee training, emergency response 
     planning, and any other area identified by the assessment;
       (F) an assessment of public and private operational 
     recovery plans to expedite, to the maximum extent 
     practicable, the return of an adversely affected freight or 
     passenger rail transportation system or facility to its 
     normal performance level after a major terrorist attack or 
     other security event on that system or facility; and
       (G) an account of actions taken or planned by both public 
     and private entities to address identified rail security 
     issues and assess the effective integration of such actions.
       (2) Recommendations.--Based on the assessment conducted 
     under paragraph (1), the Secretary, in consultation with the 
     Secretary of Transportation, shall develop prioritized 
     recommendations for improving rail security, including any 
     recommendations the Secretary has for--
       (A) improving the security of rail tunnels, rail bridges, 
     rail switching and car storage areas, other rail 
     infrastructure and facilities, information systems, 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 
     or on operations served or otherwise affected by rail 
     service;
       (B) deploying equipment and personnel to detect security 
     threats, including those posed by explosives and hazardous 
     chemical, biological, and radioactive substances, and any 
     appropriate countermeasures;
       (C) training appropriate railroad or railroad shipper 
     employees in terrorism prevention, preparedness, passenger 
     evacuation, and response activities;
       (D) conducting public outreach campaigns on passenger 
     railroads regarding security;
       (E) deploying surveillance equipment;
       (F) identifying the immediate and long-term costs of 
     measures that may be required to address those risks; and
       (G) public and private sector sources to fund such 
     measures.
       (3) Plans.--The report required by subsection (c) shall 
     include--
       (A) a plan, developed in consultation with the freight and 
     intercity passenger railroads, and State and local 
     governments, for the Federal Government to provide adequate 
     security support at high or severe threat levels of alert;
       (B) a plan for coordinating existing and planned rail 
     security initiatives undertaken by the public and private 
     sectors; and
       (C) a contingency plan, developed in coordination with 
     freight and intercity and commuter passenger railroads, to 
     ensure the continued movement of freight and passengers in 
     the event of an attack affecting the railroad system, which 
     shall contemplate--
       (i) the possibility of rerouting traffic due to the loss of 
     critical infrastructure, such as a bridge, tunnel, yard, or 
     station; and
       (ii) methods of continuing railroad service in the 
     Northeast Corridor in the event of a commercial power loss, 
     or catastrophe affecting a critical bridge, tunnel, yard, or 
     station.
       (b) Consultation; Use of Existing Resources.--In carrying 
     out the assessment and developing the recommendations and 
     plans required by subsection (a), the Secretary shall consult 
     with rail management, rail labor, owners or lessors of rail 
     cars used to transport hazardous materials, first responders, 
     offerers of

[[Page S13340]]

     hazardous materials, public safety officials, and other 
     relevant parties. In developing the risk assessment required 
     under this section, the Secretary shall utilize relevant 
     existing risk assessments developed by the Department or 
     other Federal agencies, and, as appropriate, assessments 
     developed by other public and private stakeholders.
       (c) Report.--
       (1) Contents.--Within 1 year after the date of enactment of 
     this Act, the Secretary shall transmit to the Committee on 
     Commerce, Science, and Transportation of the Senate, and the 
     Committee on Transportation and Infrastructure and the 
     Committee on Homeland Security of the House of 
     Representatives a report containing--
       (A) the assessment, prioritized recommendations, and plans 
     required by subsection (a); and
       (B) an estimate of the cost to implement such 
     recommendations.
       (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) Annual Updates.--The Secretary, in consultation with 
     the Secretary of Transportation, shall update the assessment 
     and recommendations each year and transmit a report, which 
     may be submitted in both classified and redacted formats, to 
     the Committees named in subsection (c)(1), containing the 
     updated assessment and recommendations.
       (e) Funding.--Out of funds appropriated pursuant to section 
     114(v) of title 49, United States Code, as amended by section 
     418 of this title, there shall be made available to the 
     Secretary to carry out this section $5,000,000 for fiscal 
     year 2008.

     SEC. 403. SYSTEMWIDE AMTRAK SECURITY UPGRADES.

       (a) In General.--
       (1) Grants.--Subject to subsection (c) the Secretary, in 
     consultation with the Assistant Secretary of Homeland 
     Security (Transportation Security Administration), is 
     authorized to make grants to Amtrak in accordance with the 
     provisions of this section.
       (2) General purposes.--The Secretary may make such grants 
     for the purposes of--
       (A) protecting underwater and underground assets and 
     systems;
       (B) protecting high risk and high consequence assets 
     identified through system-wide risk assessments;
       (C) providing counter-terrorism training;
       (D) providing both visible and unpredictable deterrence; 
     and
       (E) conducting emergency preparedness drills and exercises.
       (3) Specific projects.--The Secretary shall make such 
     grants--
       (A) to secure major tunnel access points and ensure tunnel 
     integrity in New York, New Jersey, Maryland, and Washington, 
     DC;
       (B) to secure Amtrak trains;
       (C) to secure Amtrak stations;
       (D) to obtain a watch list identification system approved 
     by the Secretary;
       (E) to obtain train tracking and interoperable 
     communications systems that are coordinated to the maximum 
     extent possible;
       (F) to hire additional police officers, special agents, 
     security officers, including canine units, and to pay for 
     other labor costs directly associated with security and 
     terrorism prevention activities;
       (G) to expand emergency preparedness efforts; and
       (H) for employee security training.
       (b) Conditions.--The Secretary of Transportation shall 
     disburse funds to Amtrak provided under subsection (a) for 
     projects contained in a systemwide security plan approved by 
     the Secretary. Amtrak shall develop the security plan in 
     consultation with constituent States and other relevant 
     parties. The plan shall include appropriate measures to 
     address security awareness, emergency response, and passenger 
     evacuation training and shall be consistent with State 
     security plans to the maximum extent practicable.
       (c) Equitable Geographic Allocation.--The Secretary shall 
     ensure that, subject to meeting the highest security needs on 
     Amtrak's entire system and consistent with the risk 
     assessment required under section 403, stations and 
     facilities located outside of the Northeast Corridor receive 
     an equitable share of the security funds authorized by this 
     section.
       (d) Availability of Funds.--
       (1) In general.--Out of funds appropriated pursuant to 
     section 114(v) of title 49, United States Code, as amended by 
     section 418 of this title, there shall be made available to 
     the Secretary and the Assistant Secretary of Homeland 
     Security (Transportation Security Administration) to carry 
     out this section--
       (A) $63,500,000 for fiscal year 2008;
       (B) $30,000,000 for fiscal year 2009; and
       (C) $30,000,000 for fiscal year 2010.
       (2) Availability of appropriated funds.--Amounts 
     appropriated pursuant to paragraph (1) shall remain available 
     until expended.

     SEC. 404. FIRE AND LIFE-SAFETY IMPROVEMENTS.

       (a) Life-Safety Needs.--The Secretary of Transportation, in 
     consultation with the Secretary, is authorized to make grants 
     to Amtrak for the purpose of making fire and life-safety 
     improvements to Amtrak tunnels on the Northeast Corridor in 
     New York, New Jersey, Maryland, and Washington, DC.
       (b) Authorization of Appropriations.--Out of funds 
     appropriated pursuant to section 418(b) of this title, there 
     shall be made available to the Secretary of Transportation 
     for the purposes of carrying out subsection (a) the following 
     amounts:
       (1) For the 6 New York and New Jersey tunnels to provide 
     ventilation, electrical, and fire safety technology upgrades, 
     emergency communication and lighting systems, and emergency 
     access and egress for passengers--
       (A) $100,000,000 for fiscal year 2008;
       (B) $100,000,000 for fiscal year 2009;
       (C) $100,000,000 for fiscal year 2010; and
       (D) $100,000,000 for fiscal year 2011.
       (2) For the Baltimore & Potomac tunnel and the Union 
     tunnel, together, to provide adequate drainage, ventilation, 
     communication, lighting, and passenger egress upgrades--
       (A) $10,000,000 for fiscal year 2008;
       (B) $10,000,000 for fiscal year 2009;
       (C) $10,000,000 for fiscal year 2010; and
       (D) $10,000,000 for fiscal year 2011.
       (3) For the Washington, DC, Union Station tunnels to 
     improve ventilation, communication, lighting, and passenger 
     egress upgrades--
       (A) $8,000,000 for fiscal year 2008;
       (B) $8,000,000 for fiscal year 2009;
       (C) $8,000,000 for fiscal year 2010; and
       (D) $8,000,000 for fiscal year 2011.
       (c) Infrastructure Upgrades.--Out of funds appropriated 
     pursuant to section 418(b) of this title, there shall be made 
     available to the Secretary of Transportation for fiscal year 
     2008 $3,000,000 for the preliminary design of options for a 
     new tunnel on a different alignment to augment the capacity 
     of the existing Baltimore tunnels.
       (d) Availability of Appropriated Funds.--Amounts made 
     available pursuant to this section shall remain available 
     until expended.
       (e) Plans Required.--The Secretary of Transportation may 
     not make amounts available to Amtrak for obligation or 
     expenditure under subsection (a)--
       (1) until Amtrak has submitted to the Secretary, and the 
     Secretary has approved, an engineering and financial plan for 
     such projects; and
       (2) unless, for each project funded pursuant to this 
     section, the Secretary has approved a project management plan 
     prepared by Amtrak addressing appropriate project budget, 
     construction schedule, recipient staff organization, document 
     control and record keeping, change order procedure, quality 
     control and assurance, periodic plan updates, and periodic 
     status reports.
       (f) Review of Plans.--
       (1) In general.--The Secretary of Transportation shall 
     complete the review of the plans required by paragraphs (1) 
     and (2) of subsection (e) and approve or disapprove the plans 
     within 45 days after the date on which each such plan is 
     submitted by Amtrak.
       (2) Incomplete or deficient plan.--If the Secretary 
     determines that a plan is incomplete or deficient, the 
     Secretary shall notify Amtrak of the incomplete items or 
     deficiencies and Amtrak shall, within 30 days after receiving 
     the Secretary's notification, submit a modified plan for the 
     Secretary's review.
       (3) Approval of plan.--Within 15 days after receiving 
     additional information on items previously included in the 
     plan, and within 45 days after receiving items newly included 
     in a modified plan, the Secretary shall either approve the 
     modified plan, or, if the Secretary finds the plan is still 
     incomplete or deficient, the Secretary shall--
       (A) identify in writing to the Committee on Commerce, 
     Science, and Transportation of the Senate, and the Committee 
     on Transportation and Infrastructure and the Committee on 
     Homeland Security of the House of Representatives the 
     portions of the plan the Secretary finds incomplete or 
     deficient;
       (B) approve all other portions of the plan;
       (C) obligate the funds associated with those other 
     portions; and
       (D) execute an agreement with Amtrak within 15 days 
     thereafter on a process for resolving the remaining portions 
     of the plan.
       (g) Financial Contribution From Other Tunnel Users.--The 
     Secretary shall, taking into account the need for the timely 
     completion of all portions of the tunnel projects described 
     in subsection (a)--
       (1) consider the extent to which rail carriers other than 
     Amtrak use or plan to 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 at levels reflecting the extent of their 
     use or planned use of the tunnels, if feasible.

     SEC. 405. FREIGHT AND PASSENGER RAIL SECURITY UPGRADES.

       (a) Security Improvement Grants.--The Secretary, in 
     consultation with Assistant Secretary of Homeland Security 
     (Transportation Security Administration) and other 
     appropriate agencies or officials, is authorized to make 
     grants to freight railroads, the Alaska Railroad, hazardous 
     materials offerers, owners of rail cars used in the 
     transportation of hazardous materials, universities, colleges 
     and research centers, State and local governments (for rail 
     passenger facilities and infrastructure not owned by Amtrak), 
     and to Amtrak for full or partial reimbursement of costs 
     incurred in the conduct of activities to prevent or respond 
     to acts of terrorism, sabotage, or other intercity passenger 
     rail and freight rail security risks identified under section 
     402, including--
       (1) security and redundancy for critical communications, 
     computer, and train control systems essential for secure rail 
     operations;
       (2) accommodation of rail cargo or passenger screening 
     equipment at the United States-Mexico border, the United 
     States-Canada border, or other ports of entry;
       (3) the security of hazardous material transportation by 
     rail;
       (4) secure intercity passenger rail stations, trains, and 
     infrastructure;
       (5) structural modification or replacement of rail cars 
     transporting high hazard materials to improve their 
     resistance to acts of terrorism;
       (6) employee security awareness, preparedness, passenger 
     evacuation, and emergency response training;

[[Page S13341]]

       (7) public security awareness campaigns for passenger train 
     operations;
       (8) the sharing of intelligence and information about 
     security threats;
       (9) to obtain train tracking and interoperable 
     communications systems that are coordinated to the maximum 
     extent possible;
       (10) to hire additional police and security officers, 
     including canine units; and
       (11) other improvements recommended by the report required 
     by section 402, including infrastructure, facilities, and 
     equipment upgrades.
       (b) Accountability.--The Secretary shall adopt necessary 
     procedures, including audits, to ensure that grants made 
     under this section are expended in accordance with the 
     purposes of this title and the priorities and other criteria 
     developed by the Secretary.
       (c) Allocation.--The Secretary shall distribute the funds 
     authorized by this section based on risk as determined under 
     section 402, and shall encourage non-Federal financial 
     participation in projects funded by grants awarded under this 
     section. With respect to grants for intercity passenger rail 
     security, the Secretary shall also take into account 
     passenger volume and whether stations or facilities are used 
     by commuter rail passengers as well as intercity rail 
     passengers. Not later than 240 days after the date of 
     enactment of this Act, the Secretary shall provide a report 
     to the Committees on Commerce, Science and Transportation and 
     Homeland Security and Governmental Affairs in the Senate and 
     the Committee on Homeland Security in the House on the 
     feasibility and appropriateness of requiring a non-Federal 
     match for the grants authorized in subsection (a).
       (d) Conditions.--Grants awarded by the Secretary to Amtrak 
     under subsection (a) shall be disbursed to Amtrak through the 
     Secretary of Transportation. The Secretary of Transportation 
     may not disburse such funds unless Amtrak meets the 
     conditions set forth in section 403(b) of this title.
       (e) Allocation Between Railroads and Others.--Unless as a 
     result of the assessment required by section 402 the 
     Secretary determines that critical rail transportation 
     security needs require reimbursement in greater amounts to 
     any eligible entity, no grants under this section may be made 
     cumulatively over the period authorized by this title--
       (1) in excess of $45,000,000 to Amtrak; or
       (2) in excess of $80,000,000 for the purposes described in 
     paragraphs (3) and (5) of subsection (a).
       (f) Authorization of Appropriations.--
       (1) In general.--Out of funds appropriated pursuant to 
     section 114(v) of title 49, United States Code, as amended by 
     section 418 of this title, there shall be made available to 
     the Secretary to carry out this section--
       (A) $100,000,000 for fiscal year 2008;
       (B) $100,000,000 for fiscal year 2009; and
       (C) $100,000,000 for fiscal year 2010.
       (2) Availability of appropriated funds.--Amounts 
     appropriated pursuant to paragraph (1) shall remain available 
     until expended.

     SEC. 406. RAIL SECURITY RESEARCH AND DEVELOPMENT.

       (a) Establishment of Research and Development Program.--The 
     Secretary, through the Under Secretary for Science and 
     Technology and the Assistant Secretary of Homeland Security 
     (Transportation Security Administration), in consultation 
     with the Secretary of Transportation shall carry out a 
     research and development program for the purpose of improving 
     freight and intercity passenger rail security that may 
     include research and development projects to--
       (1) reduce the risk of terrorist attacks on rail 
     transportation, including risks posed by explosives and 
     hazardous chemical, biological, and radioactive substances to 
     intercity rail passengers, facilities, and equipment;
       (2) test new emergency response techniques and 
     technologies;
       (3) develop improved freight rail security technologies, 
     including--
       (A) technologies for sealing rail cars;
       (B) automatic inspection of rail cars;
       (C) communication-based train controls; and
       (D) emergency response training;
       (4) test wayside detectors that can detect tampering with 
     railroad equipment;
       (5) support enhanced security for the transportation of 
     hazardous materials by rail, including--
       (A) technologies to detect a breach in a tank car or other 
     rail car used to transport hazardous materials and transmit 
     information about the integrity of cars to the train crew or 
     dispatcher;
       (B) research to improve tank car integrity, with a focus on 
     tank cars that carry high hazard materials (as defined in 
     section 401 of this title); and
       (C) techniques to transfer hazardous materials from rail 
     cars that are damaged or otherwise represent an unreasonable 
     risk to human life or public safety; and
       (6) other projects that address risks identified under 
     section 402.
       (b) Coordination With Other Research Initiatives.--The 
     Secretary shall ensure that the research and development 
     program authorized by this section is coordinated with other 
     research and development initiatives at the Department of 
     Homeland Security and the Department of Transportation. The 
     Secretary shall carry out any research and development 
     project authorized by this section through a reimbursable 
     agreement with the Secretary of Transportation, if the 
     Secretary of Transportation--
       (1) is already sponsoring a research and development 
     project in a similar area; or
       (2) has a unique facility or capability that would be 
     useful in carrying out the project.
       (c) Grants and Accountability.--To carry out the research 
     and development program, the Secretary may award grants to 
     the entities described in section 405(a) and shall adopt 
     necessary procedures, including audits, to ensure that grants 
     made under this section are expended in accordance with the 
     purposes of this title and the priorities and other criteria 
     developed by the Secretary.
       (d) Authorization of Appropriations.--
       (1) In general.--Out of funds appropriated pursuant to 
     section 114(v) of title 49, United States Code, as amended by 
     section 418 of this title, there shall be made available to 
     the Secretary to carry out this section--
       (A) $33,000,000 for fiscal year 2008;
       (B) $33,000,000 for fiscal year 2009; and
       (C) $33,000,000 for fiscal year 2010.
       (2) Availability of appropriated funds.--Amounts 
     appropriated pursuant to paragraph (1) shall remain available 
     until expended.

     SEC. 407. OVERSIGHT AND GRANT PROCEDURES.

       (a) Secretarial Oversight.--The Secretary may award 
     contracts to audit and review the safety, security, 
     procurement, management, and financial compliance of a 
     recipient of amounts under this title.
       (b) Procedures for Grant Award.--The Secretary shall, 
     within 180 days after the date of enactment of this Act, 
     prescribe procedures and schedules for the awarding of grants 
     under this title, including application and qualification 
     procedures (including a requirement that the applicant have a 
     security plan), and a record of decision on applicant 
     eligibility. The procedures shall include the execution of a 
     grant agreement between the grant recipient and the Secretary 
     and shall be consistent, to the extent practicable, with the 
     grant procedures established under section 70107 of title 46, 
     United States Code.
       (c) Additional Authority.--The Secretary may issue 
     nonbinding letters under similar terms to those issued 
     pursuant to section 47110(e) of title 49, United States Code, 
     to sponsors of rail projects funded under this title.

     SEC. 408. AMTRAK PLAN TO ASSIST FAMILIES OF PASSENGERS 
                   INVOLVED IN RAIL PASSENGER ACCIDENTS.

       (a) In General.--Chapter 243 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 24316. Plans to address needs of families of 
       passengers involved in rail passenger accidents

       ``(a) Submission of Plan.--Not later than 6 months after 
     the date of the enactment of the Transportation Security and 
     Interoperable Communication Capabilities Act, Amtrak shall 
     submit to the Chairman of the National Transportation Safety 
     Board, the Secretary of Transportation, and the Secretary of 
     Homeland Security a plan for addressing the needs of the 
     families of passengers involved in any rail passenger 
     accident involving an Amtrak intercity train and resulting in 
     a loss of life.
       ``(b) Contents of Plans.--The plan to be submitted by 
     Amtrak under subsection (a) shall include, at a minimum, the 
     following:
       ``(1) A process by which Amtrak will maintain and provide 
     to the National Transportation Safety Board, the Secretary of 
     Transportation, and the Secretary of Homeland Security, 
     immediately upon request, a list (which is based on the best 
     available information at the time of the request) of the 
     names of the passengers aboard the train (whether or not such 
     names have been verified), and will periodically update the 
     list. The plan shall include a procedure, with respect to 
     unreserved trains and passengers not holding reservations on 
     other trains, for Amtrak to use reasonable efforts to 
     ascertain the number and names of passengers aboard a train 
     involved in an accident.
       ``(2) A plan for creating and publicizing a reliable, toll-
     free telephone number within 4 hours after such an accident 
     occurs, and for providing staff, to handle calls from the 
     families of the passengers.
       ``(3) A process for notifying the families of the 
     passengers, before providing any public notice of the names 
     of the passengers, by suitably trained individuals.
       ``(4) A process for providing the notice described in 
     paragraph (2) to the family of a passenger as soon as Amtrak 
     has verified that the passenger was aboard the train (whether 
     or not the names of all of the passengers have been 
     verified).
       ``(5) A process by which the family of each passenger will 
     be consulted about the disposition of all remains and 
     personal effects of the passenger within Amtrak's control; 
     that any possession of the passenger within Amtrak's control 
     will be returned to the family unless the possession is 
     needed for the accident investigation or any criminal 
     investigation; and that any unclaimed possession of a 
     passenger within Amtrak's control will be retained by the 
     rail passenger carrier for at least 18 months.
       ``(6) A process by which the treatment of the families of 
     nonrevenue passengers will be the same as the treatment of 
     the families of revenue passengers.
       ``(7) An assurance that Amtrak will provide adequate 
     training to its employees and agents to meet the needs of 
     survivors and family members following an accident.
       ``(c) Use of Information.--Neither the National 
     Transportation Safety Board, the Secretary of Transportation, 
     the Secretary of Homeland Security, nor Amtrak may release 
     any personal information on a list obtained under subsection 
     (b)(1) but may provide information on the list about a 
     passenger to the family of the passenger to the extent that 
     the Board or Amtrak considers appropriate.
       ``(d) Limitation on Liability.--Amtrak shall not be liable 
     for damages in any action brought in a Federal or State court 
     arising out of the performance of Amtrak under this section 
     in preparing or providing a passenger list, or in

[[Page S13342]]

     providing information concerning a train reservation, 
     pursuant to a plan submitted by Amtrak under subsection (b), 
     unless such liability was caused by Amtrak's conduct.
       ``(e) Limitation on Statutory Construction.--Nothing in 
     this section may be construed as limiting the actions that 
     Amtrak may take, or the obligations that Amtrak may have, in 
     providing assistance to the families of passengers involved 
     in a rail passenger accident.
       ``(f) Funding.--Out of funds appropriated pursuant to 
     section 418(b) of the Passenger Rail Investment and 
     Improvement Act of 2007, there shall be made available to the 
     Secretary of Transportation for the use of Amtrak $500,000 
     for fiscal year 2008 to carry out this section. Amounts made 
     available pursuant to this subsection shall remain available 
     until expended.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     243 of title 49, United States Code, is amended by adding at 
     the end the following:

``24316. Plan to assist families of passengers involved in rail 
              passenger accidents.''.

     SEC. 409. NORTHERN BORDER RAIL PASSENGER REPORT.

       Within 1 year after the date of enactment of this Act, the 
     Secretary, in consultation with the Assistant Secretary of 
     Homeland Security (Transportation Security Administration), 
     the Secretary of Transportation, heads of other appropriate 
     Federal departments, and agencies and the National Railroad 
     Passenger Corporation, shall transmit a report to the Senate 
     Committee on Commerce, Science, and Transportation, the House 
     of Representatives Committee on Transportation and 
     Infrastructure, and the House of Representatives Committee on 
     Homeland Security that contains--
       (1) a description of the current system for screening 
     passengers and baggage on passenger rail service between the 
     United States and Canada;
       (2) an assessment of the current program to provide 
     preclearance of airline passengers between the United States 
     and Canada as outlined in ``The Agreement on Air Transport 
     Preclearance between the Government of Canada and the 
     Government of the United States of America'', dated January 
     18, 2001;
       (3) an assessment of the current program to provide 
     preclearance of freight railroad traffic between the United 
     States and Canada as outlined in the ``Declaration of 
     Principle for the Improved Security of Rail Shipments by 
     Canadian National Railway and Canadian Pacific Railway from 
     Canada to the United States'', dated April 2, 2003;
       (4) information on progress by the Department of Homeland 
     Security and other Federal agencies towards finalizing a 
     bilateral protocol with Canada that would provide for 
     preclearance of passengers on trains operating between the 
     United States and Canada;
       (5) a description of legislative, regulatory, budgetary, or 
     policy barriers within the United States Government to 
     providing pre-screened passenger lists for rail passengers 
     traveling between the United States and Canada to the 
     Department of Homeland Security;
       (6) a description of the position of the Government of 
     Canada and relevant Canadian agencies with respect to 
     preclearance of such passengers;
       (7) a draft of any changes in existing Federal law 
     necessary to provide for pre-screening of such passengers and 
     providing pre-screened passenger lists to the Department of 
     Homeland Security; and
       (8) an analysis of the feasibility of reinstating in-
     transit inspections onboard international Amtrak trains.

     SEC. 410. RAIL WORKER SECURITY TRAINING PROGRAM.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Secretary of Transportation, appropriate law enforcement, 
     security, and terrorism experts, representatives of railroad 
     carriers and shippers, and nonprofit employee organizations 
     that represent rail workers, shall develop and issue detailed 
     guidance for a rail worker security training program to 
     prepare front-line workers for potential threat conditions. 
     The guidance shall take into consideration any current 
     security training requirements or best practices.
       (b) Program Elements.--The guidance developed under 
     subsection (a) shall include elements appropriate to 
     passenger and freight rail service that address the 
     following:
       (1) Determination of the seriousness of any occurrence.
       (2) Crew communication and coordination.
       (3) Appropriate responses to defend or protect oneself.
       (4) Use of protective devices.
       (5) Evacuation procedures.
       (6) Psychology, behavior, and methods of terrorists, 
     including observation and analysis.
       (7) Situational training exercises regarding various threat 
     conditions.
       (8) Any other subject the Secretary considers appropriate.
       (c) Railroad Carrier Programs.--Not later than 90 days 
     after the Secretary issues guidance under subsection (a) in 
     final form, each railroad carrier shall develop a rail worker 
     security training program in accordance with that guidance 
     and submit it to the Secretary for review. Not later than 90 
     days after receiving a railroad carrier's program under this 
     subsection, the Secretary shall review the program and 
     transmit comments to the railroad carrier concerning any 
     revisions the Secretary considers necessary for the program 
     to meet the guidance requirements. A railroad carrier shall 
     respond to the Secretary's comments within 90 days after 
     receiving them.
       (d) Training.--Not later than 1 year after the Secretary 
     reviews the training program developed by a railroad carrier 
     under this section, the railroad carrier shall complete the 
     training of all front-line workers in accordance with that 
     program. The Secretary shall review implementation of the 
     training program of a representative sample of railroad 
     carriers and report to the Senate Committee on Commerce, 
     Science, and Transportation, the House of Representatives 
     Committee on Transportation and Infrastructure, and the House 
     of Representatives Committee on Homeland Security on the 
     number of reviews conducted and the results. The Secretary 
     may submit the report in both classified and redacted formats 
     as necessary.
       (e) Updates.--The Secretary shall update the training 
     guidance issued under subsection (a) as appropriate to 
     reflect new or different security threats. Railroad carriers 
     shall revise their programs accordingly and provide 
     additional training to their front-line workers within a 
     reasonable time after the guidance is updated.
       (f) Front-Line Workers Defined.--In this section, the term 
     ``front-line workers'' means security personnel, dispatchers, 
     locomotive engineers, conductors, trainmen, other onboard 
     employees, maintenance and maintenance support personnel, 
     bridge tenders, as well as other appropriate employees of 
     railroad carriers, as defined by the Secretary.
       (g) Other Employees.--The Secretary shall issue guidance 
     and best practices for a rail shipper employee security 
     program containing the elements listed under subsection (b) 
     as appropriate.

     SEC. 411. WHISTLEBLOWER PROTECTION PROGRAM.

       (a) In General.--Subchapter A of chapter 201 of title 49, 
     United States Code, is amended by inserting after section 
     20117 the following:

     ``Sec. 20118. Whistleblower protection for rail security 
       matters

       ``(a) Discrimination Against Employee.--A railroad carrier 
     engaged in interstate or foreign commerce may not discharge 
     or in any way discriminate against an employee because the 
     employee, whether acting for the employee or as a 
     representative, has--
       ``(1) provided, caused to be provided, or is about to 
     provide or cause to be provided, to the employer or the 
     Federal Government information relating to a reasonably 
     perceived threat, in good faith, to security;
       ``(2) provided, caused to be provided, or is about to 
     provide or cause to be provided, testimony before Congress or 
     at any Federal or State proceeding regarding a reasonably 
     perceived threat, in good faith, to security; or
       ``(3) refused to violate or assist in the violation of any 
     law, rule or regulation related to rail security.
       ``(b) Dispute Resolution.--A dispute, grievance, or claim 
     arising under this section is subject to resolution under 
     section 3 of the Railway Labor Act (45 U.S.C. 153). In a 
     proceeding by the National Railroad Adjustment Board, a 
     division or delegate of the Board, or another board of 
     adjustment established under section 3 to resolve the 
     dispute, grievance, or claim the proceeding shall be 
     expedited and the dispute, grievance, or claim shall be 
     resolved not later than 180 days after it is filed. If the 
     violation is a form of discrimination that does not involve 
     discharge, suspension, or another action affecting pay, and 
     no other remedy is available under this subsection, the 
     Board, division, delegate, or other board of adjustment may 
     award the employee reasonable damages, including punitive 
     damages, of not more than $20,000.
       ``(c) Procedural Requirements.--Except as provided in 
     subsection (b), the procedure set forth in section 
     42121(b)(2)(B) of this subtitle, including the burdens of 
     proof, applies to any complaint brought under this section.
       ``(d) Election of Remedies.--An employee of a railroad 
     carrier may not seek protection under both this section and 
     another provision of law for the same allegedly unlawful act 
     of the carrier.
       ``(e) Disclosure of Identity.--
       ``(1) Except as provided in paragraph (2) of this 
     subsection, or with the written consent of the employee, the 
     Secretary of Transportation or Secretary of Homeland Security 
     may not disclose the name of an employee of a railroad 
     carrier who has provided information about an alleged 
     violation of this section.
       ``(2) The Secretary shall disclose to the Attorney General 
     the name of an employee described in paragraph (1) of this 
     subsection if the matter is referred to the Attorney General 
     for enforcement.
       ``(f) Process for Reporting Problems.--
       ``(1) Establishment of reporting process.--The Secretary 
     shall establish, and provide information to the public 
     regarding, a process by which any person may submit a report 
     to the Secretary regarding railroad security problems, 
     deficiencies, or vulnerabilities.
       ``(2) Confidentiality.--The Secretary shall keep 
     confidential the identity of a person who submits a report 
     under paragraph (1) and any such report shall be treated as a 
     record containing protected information to the extent that it 
     does not consist of publicly available information.
       ``(3) Acknowledgment of receipt.--If a report submitted 
     under paragraph (1) identifies the person making the report, 
     the Secretary shall respond promptly to such person and 
     acknowledge receipt of the report.
       ``(4) Steps to address problems.--The Secretary shall 
     review and consider the information provided in any report 
     submitted under paragraph (1) and shall take appropriate 
     steps under this title to address any problems or 
     deficiencies identified.
       ``(5) Retaliation prohibited.--No employer may discharge 
     any employee or otherwise discriminate against any employee 
     with respect to the compensation to, or terms, conditions, or 
     privileges of the employment of, such employee

[[Page S13343]]

     because the employee (or a person acting pursuant to a 
     request of the employee) made a report under paragraph 
     (1).''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     201 of title 49, United States Code, is amended by inserting 
     after the item relating to section 20117 the following:

``20118. Whistleblower protection for rail security matters.''.

     SEC. 412. HIGH HAZARD MATERIAL SECURITY RISK MITIGATION 
                   PLANS.

       (a) In General.--The Secretary, in consultation with the 
     Assistant Secretary of Homeland Security (Transportation 
     Security Administration) and the Secretary of Transportation, 
     shall require rail carriers transporting a high hazard 
     material, as defined in section 402 of this title, to develop 
     a high hazard material security risk mitigation plan 
     containing appropriate measures, including alternative 
     routing and temporary shipment suspension options, to address 
     assessed risks to high consequence targets. The plan, and any 
     information submitted to the Secretary under this section 
     shall be protected as sensitive security information under 
     the regulations prescribed under section 114(s) of title 49, 
     United States Code.
       (b) Implementation.--A high hazard material security risk 
     mitigation plan shall be put into effect by a rail carrier 
     for the shipment of high hazardous materials by rail on the 
     rail carrier's right-of-way when the threat levels of the 
     Homeland Security Advisory System are high or severe or 
     specific intelligence of probable or imminent threat exists 
     towards--
       (1) a high-consequence target that is within the 
     catastrophic impact zone of a railroad right-of-way used to 
     transport high hazardous material; or
       (2) rail infrastructure or operations within the immediate 
     vicinity of a high-consequence target.
       (c) Completion and Review of Plans.--
       (1) Plans required.--Each rail carrier shall--
       (A) submit a list of routes used to transport high hazard 
     materials to the Secretary within 60 days after the date of 
     enactment of this Act;
       (B) develop and submit a high hazard material security risk 
     mitigation plan to the Secretary within 180 days after it 
     receives the notice of high consequence targets on such 
     routes by the Secretary that includes an operational recovery 
     plan to expedite, to the maximum extent practicable, the 
     return of an adversely affected rail system or facility to 
     its normal performance level following a major terrorist 
     attack or other security incident; and
       (C) submit any subsequent revisions to the plan to the 
     Secretary within 30 days after making the revisions.
       (2) Review and updates.--The Secretary, with assistance of 
     the Secretary of Transportation, shall review the plans and 
     transmit comments to the railroad carrier concerning any 
     revisions the Secretary considers necessary. A railroad 
     carrier shall respond to the Secretary's comments within 30 
     days after receiving them. Each rail carrier shall update and 
     resubmit its plan for review not less than every 2 years.
       (d) Definitions.--In this section:
       (1) The term ``high-consequence target'' means property, 
     infrastructure, public space, or natural resource designated 
     by the Secretary that is a viable terrorist target of 
     national significance, the attack of which could result in--
       (A) catastrophic loss of life;
       (B) significant damage to national security or defense 
     capabilities; or
       (C) national economic harm.
       (2) The term ``catastrophic impact zone'' means the area 
     immediately adjacent to, under, or above an active railroad 
     right-of-way used to ship high hazard materials in which the 
     potential release or explosion of the high hazard material 
     being transported would likely cause--
       (A) loss of life; or
       (B) significant damage to property or structures.
       (3) The term ``rail carrier'' has the meaning given that 
     term by section 10102(5) of title 49, United States Code.

     SEC. 413. ENFORCEMENT AUTHORITY.

       (a) In General.--Section 114 of title 49, United States 
     Code, is amended by adding at the end the following:
       ``(u) Enforcement of Regulations and Orders of the 
     Secretary of Homeland Security Issued Under This Title.--
       ``(1) Application of subsection.--
       ``(A) In general.--This subsection applies to the 
     enforcement of regulations prescribed, and orders issued, by 
     the Secretary of Homeland Security under a provision of this 
     title other than a provision of chapter 449.
       ``(B) Violations of chapter 449.--The penalties for 
     violations of regulations prescribed, and orders issued, by 
     the Secretary of Homeland Security under chapter 449 of this 
     title are provided under chapter 463 of this title.
       ``(C) Nonapplication to certain violations.--
       ``(i) Paragraphs (2) through (5) of this subsection do not 
     apply to violations of regulations prescribed, and orders 
     issued, by the Secretary of Homeland Security under a 
     provision of this title--

       ``(I) involving the transportation of personnel or 
     shipments of materials by contractors where the Department of 
     Defense has assumed control and responsibility;
       ``(II) by a member of the armed forces of the United States 
     when performing official duties; or
       ``(III) by a civilian employee of the Department of Defense 
     when performing official duties.

       ``(ii) Violations described in subclause (I), (II), or 
     (III) of clause (i) shall be subject to penalties as 
     determined by the Secretary of Defense or the Secretary's 
     designee.
       ``(2) Civil penalty.--
       ``(A) In general.--A person is liable to the United States 
     Government for a civil penalty of not more than $10,000 for a 
     violation of a regulation prescribed, or order issued, by the 
     Secretary of Homeland Security under this title.
       ``(B) Repeat violations.--A separate violation occurs under 
     this paragraph for each day the violation continues.
       ``(3) Administrative imposition of civil penalties.--
       ``(A) In general.--The Secretary of Homeland Security may 
     impose a civil penalty for a violation of a regulation 
     prescribed, or order issued, under this title. The Secretary 
     shall give written notice of the finding of a violation and 
     the penalty.
       ``(B) Scope of civil action.--In a civil action to collect 
     a civil penalty imposed by the Secretary under this 
     subsection, the court may not re-examine issues of liability 
     or the amount of the penalty.
       ``(C) Jurisdiction.--The district courts of the United 
     States have exclusive jurisdiction of civil actions to 
     collect a civil penalty imposed by the Secretary under this 
     subsection if--
       ``(i) the amount in controversy is more than--

       ``(I) $400,000, if the violation was committed by a person 
     other than an individual or small business concern; or
       ``(II) $50,000, if the violation was committed by an 
     individual or small business concern;

       ``(ii) the action is in rem or another action in rem based 
     on the same violation has been brought; or
       ``(iii) another action has been brought for an injunction 
     based on the same violation.
       ``(D) Maximum penalty.--The maximum penalty the Secretary 
     may impose under this paragraph is--
       ``(i) $400,000, if the violation was committed by a person 
     other than an individual or small business concern; or
       ``(ii) $50,000, if the violation was committed by an 
     individual or small business concern.
       ``(4) Compromise and setoff.--
       ``(A) The Secretary may compromise the amount of a civil 
     penalty imposed under this subsection. If the Secretary 
     compromises the amount of a civil penalty under this 
     subparagraph, the Secretary shall--
       ``(i) notify the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Homeland Security of the compromised penalty and explain the 
     rationale therefor; and
       ``(ii) make the explanation available to the public to the 
     extent feasible without compromising security.
       ``(B) The Government may deduct the amount of a civil 
     penalty imposed or compromised under this subsection from 
     amounts it owes the person liable for the penalty.
       ``(5) Investigations and proceedings.--Chapter 461 of this 
     title shall apply to investigations and proceedings brought 
     under this subsection to the same extent that it applies to 
     investigations and proceedings brought with respect to 
     aviation security duties designated to be carried out by the 
     Secretary.
       ``(6) Definitions.--In this subsection:
       ``(A) Person.--The term `person' does not include--
       ``(i) the United States Postal Service; or
       ``(ii) the Department of Defense.
       ``(B) Small business concern.--The term `small business 
     concern' has the meaning given that term in section 3 of the 
     Small Business Act (15 U.S.C. 632).''.
       (b) Conforming Amendment.--Section 46301(a)(4) of title 49, 
     United States Code is amended by striking ``or another 
     requirement under this title administered by the Under 
     Secretary of Transportation for Security''.
       (c) Rail Safety Regulations.--Section 20103(a) of title 49, 
     United States Code, is amended by striking ``safety'' the 
     first place it appears, and inserting ``safety, including 
     security,''.

     SEC. 414. RAIL SECURITY ENHANCEMENTS.

       (a) Rail Police Officers.--Section 28101 of title 49, 
     United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``Under''; 
     and
       (2) by adding at the end the following:
       ``(b) Assignment.--A rail police officer employed by a rail 
     carrier and certified or commissioned as a police officer 
     under the laws of a State may be temporarily assigned to 
     assist a second rail carrier in carrying out law enforcement 
     duties upon the request of the second rail carrier, at which 
     time the police officer shall be considered to be an employee 
     of the second rail carrier and shall have authority to 
     enforce the laws of any jurisdiction in which the second rail 
     carrier owns property to the same extent as provided in 
     subsection (a).''.
       (b) Model State Legislation.--By no later than September 7, 
     2007, the Secretary of Transportation shall develop model 
     State legislation to address the problem of entities that 
     claim to be rail carriers in order to establish and run a 
     police force when the entities do not in fact provide rail 
     transportation and shall make it available to State 
     governments. In developing the model State legislation the 
     Secretary shall solicit the input of the States, railroads 
     companies, and railroad employees. The Secretary shall review 
     and, if necessary, revise such model State legislation 
     periodically.

     SEC. 415. PUBLIC AWARENESS.

       Not later than 90 days after the date of enactment of this 
     Act, the Secretary, in consultation with the Secretary of 
     Transportation, shall develop a national plan for public 
     outreach and awareness. Such plan shall be designed to 
     increase awareness of measures that the general public, 
     railroad passengers, and railroad employees can take to 
     increase railroad system security. Such plan shall also 
     provide outreach to railroad carriers and their employees to 
     improve their awareness of available technologies, ongoing 
     research and development efforts, and available Federal 
     funding sources to improve railroad

[[Page S13344]]

     security. Not later than 9 months after the date of enactment 
     of this Act, the Secretary shall implement the plan developed 
     under this section.

     SEC. 416. RAILROAD HIGH HAZARD MATERIAL TRACKING.

       (a) Wireless Communications.--
       (1) In general.--In conjunction with the research and 
     development program established under section 406 and 
     consistent with the results of research relating to wireless 
     tracking technologies, the Secretary, in consultation with 
     the Assistant Secretary of Homeland Security (Transportation 
     Security Administration), shall develop a program that will 
     encourage the equipping of rail cars transporting high hazard 
     materials (as defined in section 402 of this title) with 
     technology that provides--
       (A) car position location and tracking capabilities; and
       (B) notification of rail car depressurization, breach, 
     unsafe temperature, or release of hazardous materials.
       (2) Coordination.--In developing the program required by 
     paragraph (1), the Secretary shall--
       (A) consult with the Secretary of Transportation to 
     coordinate the program with any ongoing or planned efforts 
     for rail car tracking at the Department of Transportation; 
     and
       (B) ensure that the program is consistent with 
     recommendations and findings of the Department of Homeland 
     Security's hazardous material tank rail car tracking pilot 
     programs.
       (b) Funding.--Out of funds appropriated pursuant to section 
     114(v) of title 49, United States Code, as amended by section 
     418 of this title, there shall be made available to the 
     Secretary to carry out this section $3,000,000 for each of 
     fiscal years 2008, 2009, and 2010.

     SEC. 417. CERTAIN REPORTS SUBMITTED TO SENATE COMMITTEE ON 
                   HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS.

       The Senate Committee on Homeland Security and Governmental 
     Affairs shall receive the reports required by the following 
     provisions of law in the same manner and to the same extent 
     that the reports are to be received by the Senate Committee 
     on Commerce, Science, and Transportation:
       (1) Section 402(c) of this title.
       (2) Section 404(f)(3)(A) of this title.
       (3) Section 409 of this title.
       (4) Section 410(d) of this title.

     SEC. 418. AUTHORIZATION OF APPROPRIATIONS.

       (a) Transportation Security Administration Authorization.--
     Section 114 of title 49, United States Code, as amended by 
     section 413, is amended by adding at the end thereof the 
     following:
       ``(v) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of Homeland 
     Security for rail security--
       ``(1) $205,000,000 for fiscal year 2008;
       ``(2) $166,000,000 for fiscal year 2009; and
       ``(3) $166,000,000 for fiscal year 2010.''.
       (b) Department of Transportation.--There are authorized to 
     be appropriated to the Secretary of Transportation to carry 
     out this title and sections 20118 and 24316 of title 49, 
     United States Code, as added by this title--
       (1) $121,000,000 for fiscal year 2008;
       (2) $118,000,000 for fiscal year 2009;
       (3) $118,000,000 for fiscal year 2010; and
       (4) $118,000,000 for fiscal year 2011.
  Mr. REID. Mr. President, I ask unanimous consent that the committee 
amendments be agreed to.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendments were agreed to.
  The PRESIDING OFFICER. The Senator from Tennessee is recognized.
  Mr. ALEXANDER. Mr. President, I ask unanimous consent to speak for up 
to 5 minutes as in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ALEXANDER. I thank the Senator from New Jersey and the Senator 
from Mississippi for allowing me to proceed.
  (The remarks of Mr. Alexander are printed in today's Record under 
``Morning Business.'')
  Mr. ALEXANDER. Mr. President, I thank the bill managers, and I yield 
the floor.
  The PRESIDING OFFICER. The Senator from New Jersey.
  Mr. LAUTENBERG. Mr. President, our bill has been sent to the desk, 
and I want to start off by saying that I am pleased, obviously, that 
the Senate is considering S. 294, the Passenger Rail Investment and 
Improvement Act of 2007.
  The first thing I want to do is to say thanks to my friend and chief 
cosponsor of the bill, Senator Trent Lott. We have worked together on 
matters related to transportation in the past, and there is no question 
that he understands the potential for passenger rail, and his long-
standing efforts to improve our country's transportation systems are 
well known and deeply appreciated.
  Like him, I believe this is a critical moment--with delays, 
unavailability of reliable planning for work, personal opportunity to 
spend time with kids and family or other activities of choice. Anyone 
who spends any significant time on our roads does not need reminders 
that highway congestion is a major problem. In almost every city and 
town of any size throughout our country, it is experienced.
  A recent study by the Texas Transportation Institute showed that 
highway congestion costs our country over $78 billion per year, 
including $4.2 billion in lost productivity and 2.9 billion gallons of 
wasted fuel and an indeterminable loss in the quality of our lives. 
These things all cascade upon us.
  Congestion, however, isn't just limited to our roads. One in four 
flights was late last year at our airports. At Newark Liberty 
International Airport, it is almost one in two flights. Other 
metropolitan regions are experiencing worsening delays. The DOT finally 
had to cap the number of flights at Chicago's O'Hare Airport a couple 
of years ago and is considering doing the same thing for Newark and 
Kennedy Airport in New York. Even airlines are throwing in the towel. 
The 38 minutes in the air between here and New York City is now 
scheduled to take almost 2 hours, gate to gate. It is on the schedule--
38 minutes of flying time and almost 2 hours to make the trip. It is 
outrageous. Coupled with long security lines, these delays make air 
travel increasingly stressful and inconvenient. How about those who are 
stranded in airplanes, for sometimes as long as 9 hours--stuck in an 
airplane without the amenities that necessarily should be there, like 
food and potable water and working restrooms and so forth?

  Everyone knows what a difficult day going to the airport can be, or 
that air travel can be like. Further, everyone knows that the high 
price of gas has created economic hardship for so many Americans. Some 
experienced voices are predicting that oil prices in the future, not 
too distant, can be as high as $200 a barrel, more than twice the 
current price. One reason why the United States is addicted to oil, as 
President Bush puts it, is because the Government has not provided 
other options for travelers. Where reliable rail service is available, 
people will run to the trains.
  Our Nation's passenger railroad, Amtrak, has enjoyed record ridership 
over the past several years and set a new company record of almost 26 
million passengers in the last year. More travelers take the train 
between Washington and New York City than fly on all the airlines 
combined between these cities. Amtrak is so popular in the Northeast 
because people can count on being on time; it is reliable service and 
it is economical and comfortable.
  We see similar results outside of the Northeast corridor, where 
frequent and reliable passenger service is available. I can tell you 
from personal experience that riding the train can be a pleasurable 
experience. Passengers can use their laptops, talk on the phone, have a 
bite and be productive and not be exhausted when they get there.
  Additionally, in most instances, rail service delivers passengers 
directly to where they need to go in the heart of a city. What a 
difference that is. You don't have to spend a half hour or an hour to 
get to the airport a half hour or an hour before the plane takes off so 
you are ready when the flight is ready to leave. Good passenger rail 
service is not only good transportation policy, but it is something 
people in this country are rushing to use.
  Everyone is aware now also of the danger of pollution. In the battle 
against global warming, which is enveloping our country, with erratic 
weather raising havoc, rail is one of the most effective weapons. To 
move one passenger a mile, Amtrak emits slightly more than half of the 
carbon dioxide that airlines do and less than cars as well. Americans 
want a cleaner option in the air and the water for their children, 
grandchildren, and future generations than this constant assault on 
healthy air and water.
  In a time where conserving energy and reducing our dependency on 
foreign oil has never been more important, passenger rail service 
offers significant fuel-saving benefits. In a time when oil imports 
continue to expand while prices rise, the quality of life in America is 
being substantially eroded by these high prices. According to the 
Department of Energy, airlines on the average consume over 20 percent 
more energy than Amtrak to move a passenger one mile, while we search 
for ways to fight against poisoning our atmosphere.

[[Page S13345]]

  Passenger rail is not just a matter of convenience. It is also an 
important security asset. One of the lessons we learned on 9/11 was 
that our country cannot afford to rely on any single mode of 
transportation. When our aviation system shut down that terrible day, 
September 11, and for days thereafter, Amtrak was a principal way to 
reunite thousands of travelers with their families. We also saw chaotic 
evacuations during Hurricanes Katrina and Rita, with resulting floods, 
with evacuating motorists stuck for hours and some without cars were 
left behind altogether. Some investigations showed that with better 
preparation, passenger trains could have been used to help move 
thousands out of harm's way.
  It is clear that rail service can help move our citizens to safety 
during emergencies, but you can't do it without the trains and the 
track that are part of the system. Other nations around the world 
understand these benefits and, unfortunately, we have been lagging 
behind. I will never forget a trip I took from Paris to Brussels. There 
are 18 trains a day between these two cities. You cannot get an 
airplane that goes between the two. The 210-mile trip takes about 85 
minutes. Think about it, 210 miles taking 85 minutes, with trains 
leaving practically every hour. If you go to Union Station here and 
travel approximately 210 miles, it is a 3-hour or 2\3/4\-hour train 
ride. We can do so much better.
  The Europeans are not better at these things than we are. They are 
not smarter than we are. But from Spain to Germany, they have simply 
made the wise decision to invest in passenger rail. These investments 
extend worldwide.
  Taiwan recently opened its $15 billion, 208-mile rail line this year, 
where riders can travel its length, 208 miles, in 90 minutes--
approximately the length of the trip between Washington, DC, and New 
York City.
  The benefits of these systems are obvious to anyone who travels 
there. We need the same world-class system in this country. The 
potential of new rail corridors in our country is enormous. Higher 
speed, more frequent rail service between Chicago and other Midwestern 
cities, such as St. Louis, Detroit, and Milwaukee, would revolutionize 
the way people travel in an entire region of our country.
  Likewise, expanded rail service between Atlanta, Charlotte, Richmond, 
and Washington would allow people options besides having to brave 
traffic and trucks on Interstate 95.
  I am reminded that the train service between Portland, Oregon, and 
Seattle, Washington, called the Cascades line, is enjoying tremendous 
ridership, over 600,000 passengers each and every year. It is an 
invaluable asset. We see something similar in California between San 
Diego and Los Angeles, where over two and a half million people took 
the train this past year.

  There is enthusiasm for passenger rail service in America, and States 
are planning rail corridors throughout the country. They are prepared 
to spend their limited funding for rail projects. But our Federal 
policies encourage them to build more roads. That is why we need to 
pass this bill that Senator Lott and I have presented. Our bill paves 
the way for an improved modern passenger rail network. It authorizes 
funding for Amtrak's capital needs as well as State grants for 
passenger rail. We already make a significant investment in roads. We 
spend $40 billion a year. By comparison, we spend almost half that 
amount on airports and air traffic control towers. Our bill will start 
to address this investment gap by authorizing nearly $2 billion a year 
for Amtrak in the States that participate over the next 6 years.
  A yearly average of $237 million of this money will be used to create 
a new State grant program for rail projects. Our Amtrak bill also funds 
the rehabilitation of Amtrak's Northeast corridor and mandates that 
Amtrak work with the Department of Transportation and the States to 
develop plans to do so.
  Our bill also requires changes at Amtrak--Senator Lott pursued this 
diligently--to make sure these funds will help the railroad continue 
moving in the right direction.
  While we had record ridership and revenues last year, we can still 
improve its efficiency and management practices. That is why our bill 
would require Amtrak to reform its operations to reduce its Federal 
operating subsidy by 40 percent over the life of the bill. It also, at 
the suggestion of the Department of Transportation's inspector general, 
will allow the Federal Government to refinance Amtrak's $3 billion in 
outstanding debt.
  With this bill, we are hitting so many of the areas of concern: it 
not only addresses the funding, but it also helps the management to 
focus on getting this railroad in a condition that it should be in.
  One of these major reforms is for Amtrak to develop a new financial 
accounting system, which will provide more transparency into the 
company's financial management and better cost controls.
  Most importantly, the Lautenberg-Lott Amtrak bill focuses on 
improving service for passengers. I learned when I was in the private 
sector that if you provide a good product, people will buy it. We will 
require new standards for service quality--on-time performance, onboard 
and station services, cost recovery, connectivity, to name a few. The 
public is going to know what Amtrak is doing and would be kept apprised 
of their performance through quarterly reports from the Federal 
Railroad Administration.
  Our bill also addresses the problem of train delays. On many routes 
outside the Northeast, freight trains delay Amtrak riders from reaching 
their destination on time. It is against the Federal law. As we know in 
the airline industry, delays frustrate passengers and hurt the 
company's bottom line. Our bill would authorize the Surface 
Transportation Board to issue fines to freight railroads that delay 
Amtrak trains. We all have to share the system and share it 
efficiently.
  Some have suggested another provider could be more efficient than 
Amtrak. I doubt this claim, but our bill does authorize a program to 
allow a freight railroad to bid for Amtrak's subsidy on up to two long-
distance or State-supported corridor routes. So we are saying, even if 
there is some skepticism on our part, the bill authorizes the States to 
go ahead and work with the freight railroad to bid for an Amtrak 
subsidy, on up to two long-distance or State-supported corridor routes.
  I repeat that because it is very significant. We want the States to 
participate, and we want to open as much of a change in policy as can 
be done with practical output. This pilot program could allow freight 
railroads to maximize efficiencies because they own the tracks already. 
As many Northeast corridor States have called for more involvement in 
how that essential corridor is run, this bill will improve governance 
by giving Northeast States, such as New Jersey, a bigger voice in 
infrastructure and operations decisions.
  The State will join a newly formed commission that will develop 
recommendations about the short- and long-term capital investments, 
among other things.
  And speaking of governance, our bill restructures Amtrak's board of 
directors by ensuring a bipartisan nine-member board of qualified 
members. That gives an opportunity to bring more people into the 
management decision process, and we think it will be a much more 
efficient and involved board. One board member, nominated by President 
Bush, actually told me at his Senate confirmation hearing that he had 
never even been on an Amtrak train. Well, it does not suggest he is 
going to be working with knowledge in hand that is significant or 
helpful to the company.
  Currently there is a seven-member board, no qualification 
requirements, and for years the Administration had taken the position 
that the board need not be bipartisan at all. Well, it was originally 
structured as a bipartisan board to give all sides to the principal 
parties to be able to be engaged in this process.
  We worked hard to forge this bipartisan compromise plan. Last 
Congress, our plan, which was nearly identical to this one, was 
approved by the Senate as an amendment to the budget bill by a vote of 
93 to 6. That tells us this is a well thought-out plan.
  There are only slight changes to our bill from the last Congress, and 
we will have a managers' amendment to address other minor 
modifications. Our

[[Page S13346]]

Nation's passenger rail programs have not been reauthorized for a 
decade, and the result is chaos in our transportation system.
  I urge my colleagues to vote for this Amtrak bill, to provide 
millions of Americans with more transportation choices. It is fair to 
say that the public has agreed with this change in droves. They are 
sick and tired of being delayed, paying more for fuel, and including a 
more polluted atmosphere at the same time. It is time to make this 
change.


                           Amendment No. 3451

  Madam President, I send a managers' amendment to the desk and ask for 
its immediate consideration.
  The PRESIDING OFFICER (Ms. Cantwell.) The clerk will report.
  The legislative clerk read as follows:

       The Senator from New Jersey [Mr. Lautenberg] proposes an 
     amendment numbered 3451.

  Mr. LAUTENBERG. Madam President, I ask unanimous consent that the 
reading of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

  (Purpose: To make minor changes in the bill as reported, to strike 
                   title IV, and for other purposes)

       In the table of contents, strike the items relating to 
     title IV.
       On page 22, line 2, insert ``relevant'' after ``each''.
       On page 22, line 4, insert ``single, Nationwide'' after 
     ``implement a''.
       On page 28, line 12, insert ``As part of its investigation, 
     the Board has authority to review the accuracy of the train 
     performance data.'' after ``operator.''.
       On page 29, line 15, insert ``order the host rail carrier 
     to'' after ``appropriate,''.
       On page 29, between lines 23 and 24, insert the following:
       (b) Fees.--The Surface Transportation Board may establish 
     and collect filing fees from any entity that files a 
     complaint under section 24308(f)(1) of title 49, United 
     States Code, or otherwise requests or requires the Board's 
     services pursuant to this Act. The Board shall establish such 
     fees at levels that will fully or partially, as the Board 
     determines to be appropriate, offset the costs of 
     adjudicating complaints under that section and other requests 
     or requirements for Board action under this Act. The Board 
     may waive any fee established under this subsection for any 
     governmental entity as determined appropriate by the Board.
       (c) Authorization of Additional Staff.--The Surface 
     Transportation Board may increase the number of Board 
     employees by up to 15 for the 5 fiscal year period beginning 
     with fiscal year 2008 to carry out its responsibilities under 
     section 24308 of title 49, United States Code, and this Act.
       On page 29, line 24, strike ``(b)'' and insert ``(d)''.
       On page 51, between lines 4 and 5, insert the following:
       (d) Acela Service Study.--
       (1) In general.--Amtrak shall conduct a conduct a study to 
     determine the infrastructure and equipment improvements 
     necessary to provide regular Acela service--
       (A) between Washington, D.C. and New York City in 2 hours 
     and 30 minutes; and
       (B) between New York City and Boston in 3 hours and 15 
     minutes.
       (2) Issues.--The study conducted under paragraph (1) shall 
     include--
       (A) an estimated time frame for achieving the trip time 
     described in paragraph (1);
       (B) an analysis of any significant obstacles that would 
     hinder such an achievement; and
       (C) a detailed description and cost estimate of the 
     specific infrastructure and equipment improvements necessary 
     for such an achievement.
       (3) Secondary study.--Amtrak shall provide an initial 
     assessment of the infrastructure and equipment improvements, 
     including an order of magnitude cost estimate of such 
     improvements, that would be necessary to provide regular 
     Acela service--
       (A) between Washington, D.C. and New York City in 2 hours 
     and 15 minutes; and
       (B) between New York City and Boston in 3 hours.
       (4) Report.--Not later than February 1, 2008, Amtrak shall 
     submit a written report containing the results of the studies 
     required under this subsection to--
       (A) the Committee on Commerce, Science, and Transportation 
     of the Senate;
       (B) the Committee on Appropriations of the Senate;
       (C) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       (D) the Committee on Appropriations of the House of 
     Representatives; and
       (E) the Federal Railroad Administration.
       On page 57, strike lines 3 through 11.
       On page 57, line 12, strike ``(d)'' and insert ``(c)''.
       On page 73, line 1, insert ``2003,'' after ``years''.
       On page 81, line 25, strike ``and''.
       On page 82, line 2, strike ``seq.).'' and insert ``seq.); 
     and''.
       On page 82, between lines 2 and 3, insert the following:
       ``(3) the Railroad Unemployment Insurance Act (45 U.S.C. 
     351 et seq.).
       On page 144, beginning with line 2, strike through the end 
     of the bill.

  Mr. LAUTENBERG. Madam President, this amendment will strike the title 
on security which has already become law this year. It adds a study on 
trip time in the Northeast corridor, and makes several technical 
corrections.
  I yield the floor to my distinguished friend and colleague, Senator 
Lott.
  Mr. LOTT. Let me say with regard to the package that was agreed to, 
the changes, we did work together on that. It was cleared on both 
sides. I want to thank the leaders for allowing us to move forward on 
this legislation. It is never easy to go straight to a bill these days. 
There are Senators who have reservations about going to this particular 
bill at this time. Some Senators wanted to make sure they were going to 
have an opportunity to look at the legislation and prepare thoughtful 
amendments, amendments that might, frankly, improve the legislation, 
add additional reforms, delete parts of it.
  That is all well and good. I understand that maybe some Senators were 
not aware we were going to try to go to Amtrak today, even though I 
know an effort was made to try to inform both sides that would be the 
intent after we dealt with the Labor-HHS appropriations bill, the 
Southwick nomination, and the DREAM Act. Maybe it moved a little 
quicker than people thought because of some of the earlier actions 
today.
  I want to emphasize this too. While I have been involved in working 
on this legislation for some 3 years with Senator Lautenberg as 
chairman of this subcommittee and now as ranking member, and I think 
there are some good things in here worth having, maybe we can even 
strengthen it more. That would be positive for the future of Amtrak. I 
am perfectly willing and anxious to see if there are good ideas of how 
we can make it even a stronger bill. I want Amtrak to succeed. If we 
are going to keep it, let's fix it where it will work. I do not think 
it is wise to continue putting money into a system that is not enough, 
and then complain because it is not doing the job. We are slowly 
starving it, using it more, and complaining that it is not doing 
better. I think we need some reforms. I think we need to have 
authorization. I think we need to expect more of the Amtrak board. We 
need to expect good service from Amtrak. I think we ought to provide an 
opportunity for them to have a way to get the funds to do the job. That 
is what we are trying to do here.
  As I said earlier today, this is not something people in my State are 
going to feel an immediate impact from. We do have Amtrak service that 
runs through my State, north and south, from New Orleans to Chicago. We 
have even had it down along the coast. Probably some people would say: 
Well, it is not worth it.
  I believe we need Amtrak. I believe we need a national passenger rail 
system. It is a part of the package. I support improving aviation and a 
modernization of the aircraft control system. I want us to have safety 
in the airways. I want us to have less congestion. I want us to do what 
we need to do to modernize the system. I want good passenger airline 
service. I also want to continue to work to improve highways in this 
country. But I do not believe that lanes and planes will always be 
enough. There is a limit to what you can do in the air and on the 
ground with highways. I think we need passenger rail service also.
  This is not something, again, that is going to be critical in my 
State. But I think it is important for our country. My State will 
benefit, too, when the rest of the country benefits.
  I also think if we are going to have this system, it ought to not be 
just the Northeast corridor. I think we should continue to work to try 
to find ways to make other routes profitable, on time, provide good 
service. That is what we are trying to do here.
  Some of my friends look at me and say: Well, why are you trying to do 
this? This is costing money. It is too overly subsidized. They have 
union problems, this, that and the other. I admit it has problems. I 
think we are part of the problem, because we are not engaged in trying 
to improve the law, give them more power to do what they need to do to 
make the tough decisions, get outside advice, try to figure

[[Page S13347]]

out how to do a better job. That is what we do here.
  So this is an area I have worked on for most of my career in 
Congress, transportation and infrastructure. I believe they are 
critical to the future of our country. It is about jobs. It is about 
economic development. It is about opportunity. It is about movement. It 
is about America.
  That is why I have been involved for some time, to the consternation 
of some of my friends. We have worked on this before. I worked on the 
last Amtrak reform legislation. I had higher hopes from that 
legislation than the results we got. But I think we have made some 
progress. And when you do legislation that does not achieve all you 
want it to do, my attitude is, come back and try again.
  But to show you the amount of support we have, when we brought this 
up on the reconciliation package in 2005, it got 93 votes. Some people 
said: Well, it is not enough, or, we can do better. But when they 
voted, 93 Senators voted for it. That is part of the process.

  This time, hopefully, we can get it through here freestanding, get 
the House to act, let us get to conference, let's bring in the 
administration. If the administration has recommendations or concerns, 
great, let us hear them.
  My problem with the administration is, they have tried to ignore it. 
So let's try to get them involved. I am not going to be partisan about 
this. I do not want to blast Amtrak, I don't want to blast the board or 
the administration. I want us all to get together. That is part of the 
effort of what we are trying to do here.
  This legislation, S. 294, makes a number of important reforms in 
Amtrak. It has three major themes: Amtrak reform and accountability; 
cost cutting; and creating funding options for States.
  Now, whether are you from Illinois, California, or Missouri, or 
whether you are from New Jersey, you ought to like this. And if you are 
a conservative Republican, did you hear what I said? Cost cutting, 
reform, and accountability. This is made in heaven.
  I think we should get this done, and work in good faith with each 
other. I think we need to increase the executive branch oversight and 
involvement in Amtrak. The bill ensures that taxpayer money is used 
more effectively and it builds on the improvements that have been made 
in recent years. I think you have to give credit to the fact that David 
Gunn, when he was the president of Amtrak, made some improvements in 
his management. He did a good job. He finally wound up leaving because 
he had other opportunities, and maybe some people were critical of him. 
But I have to say I think he did a great job, and he moved it in the 
right direction.
  The bill requires Amtrak to develop better financial systems and to 
evaluate its operations objectively. It forces Amtrak to improve the 
efficiency of long-distance train service. There are some lines that 
are losing way too much money. I think the Amtrak officials should look 
at it and try to make those lines more profitable, put some guidelines 
on them, put some pressure on them, and if they do not meet them, cut 
them off. I cannot defend a line that is losing money and is costing 
$400 a head subsidy for a passenger.
  So the bill reduces Amtrak's operating subsidy by 40 percent by 2012 
by requiring Amtrak to use its funds more effectively.
  But it does not just say ``do it,'' it provides a number of things 
that will lead to making that possible. The bill promotes a greater 
role for the private sector by allowing private companies to bid on 
operating Amtrak lines.
  The bill also creates a new rail capital grant program that States 
can use to start new inner city passenger rail service. There has been 
a real increase, and that is where we had a lot of boardings, a lot of 
passengers. They are using that service where that opportunity has 
existed. This would be the first time that States will have a Federal 
program they can use for passenger rail, putting inner city passenger 
rail on similar footing with highway transit and airports, all of which 
have Federal assistance programs for infrastructure.
  Some people complain about the money in Amtrak, and yet if you look 
at what we have in these other areas, highways and transit and 
airports, Amtrak is terribly shortchanged. We provide all of this 
infrastructure in these other areas, and then we are not prepared to do 
that with the passenger rail system.
  States will not have to rely only on Amtrak for their inner city 
passenger rail service. It gives them more opportunity, more for 
themselves, and to have a Federal program work with them to achieve 
that.
  Now, while discussing reform, we should not forget there is good news 
here. Some people will only say: Well, it is still losing money. In 
fiscal year 2007, there was a record number of 25.8 million passengers 
who traveled on Amtrak. People are using it and using it more. It is 
the chicken-and-egg deal. Once you get better equipment, on-time 
service, better food, going to places people want to go, they will 
ride. In the past they haven't done it because maybe the equipment was 
old or they got delayed. As they have provided better service, more 
people started riding. The boarding ticket revenues increased 11 
percent to $1.5 billion in fiscal year 2007. Of course, the Acela 
Express, I guess the old standard of what Amtrak should do, can do--and 
we use it here in this corridor--had a 20-percent increase in ridership 
and achieved an on-time performance of 87.8 percent, proving it can be 
done. Passenger service can be on time. The Acela is so popular that 
another round-trip between New York and Washington was created in July.

  We should not focus solely on the Northeast corridor though. I want 
to make sure we have some service in the South and the Midwest and the 
West and in the Northwest. The Capital Corridor operating in California 
between Auburn and San Jose increased ridership by 15 percent and has 
an ontime performance of 75 percent. Most notably, the Lincoln service 
connecting Chicago to St. Louis is up 42 percent. Chicago to St. Louis, 
that is a tremendous increase. It is a direct result of the State more 
than doubling its contract with Amtrak. Across the country, States are 
interested in passenger service, and passengers are responding in 
record numbers to the better service.
  S. 294 is the best mechanism to reform Amtrak. I encourage my 
colleagues to support this bill. Read it. It is not a long, complicated 
bill. But if you have a better idea, come on out here. Let's hear it. 
Tomorrow we will be ready for business. We will have some amendments. 
The way I like to do business, with the cooperation of our chairman, if 
you have an amendment, let's have you offer it. Let's talk about it, 
and let's vote. Let's don't be setting them aside and piling them up 
for later on in the day. Let's do business. I think that is one way you 
get Senators to actually be here and doing work, actually have some 
votes. I don't want to go on too long.
  Let me just run down some of the areas where we have concentrated in 
this bill. It does provide for management improvement. The bill 
requires a financial accounting system for Amtrak operations and a 5-
year financial plan. Why in the world wouldn't they have that? I don't 
know. Families have plans for their budgets and what they are going to 
do in the future. Amtrak ought to do that.
  It deals with debt. The bill directs the Secretary of the Treasury, 
in consultation with the Secretary of Transportation and Amtrak, to 
negotiate the restructuring of Amtrak's debt within 1 year. This is 
something Senator Lautenberg has talked about. They can actually save 
money. Why would they not do that? So we would direct that in the bill.
  It does improve corporate governance. It adds the Amtrak president to 
the Amtrak board, bringing the total number of members of the board to 
nine. Think about that, the Amtrak president was not on the board. That 
doesn't make any sense.
  It calls for metrics and standards. In consultation with the Surface 
Transportation Board and the operating freight railroads, the Federal 
Railroad Administration and Amtrak shall jointly develop metrics and 
standards for measuring the performance and service quality of 
intercity train operations. They should include cost recovery, ontime 
performance, ridership per train mile, onboard and station services, 
the whole package.
  It does improve the route methodology. It would provide access to 
Amtrak equipment and services.
  States wishing to use operators other than Amtrak would be able to do 
so

[[Page S13348]]

under this legislation. It would improve the Northeast corridor. It 
would work to improve the long distance routes.
  I think we have touched on the very important areas, but the one I 
think that is going to make the greatest difference is the State 
Capital Grant Program for intercity passenger rail. When I have talked 
to Governors and transportation officials, railroad people, they say 
this is what we need. This could really make a difference. I see the 
Presiding Officer nodding her head. I suspect her State is one that 
would have an interest up there in the northwest corner of Washington 
and Oregon.
  So there are significant reforms. This is a good effort. This is the 
kind of work we ought to do more of in the Senate. We have managed for 
the last few years to find what we could disagree about, something we 
could fight about. We haven't taken the time to take up issues that 
affect real people's lives that we can agree on, that are bipartisan. I 
appreciate the leader putting this in the agenda. He did it at the 
request of a number of Senators who care about this. Senator Carper 
obviously is one of them, Senator Lautenberg, myself, and others. We 
have been pleading with them. I pleaded with the previous majority 
leader. Let's get this bill up.
  Some people say there are other things more important we could be 
doing. Why aren't you doing something about health care, more 
appropriations bills? That is a good question. All I know is, this is 
an issue that matters. We don't know when we are going to have another 
incident in America with aviation, or somewhere else, when we need 
trains. We need good service. I am also working in the Finance 
Committee to see if we can't get a tax credit so that we can continue 
to improve the capacity of our freight rail and allow them to build off 
ramps so the freight trains can get out of the way so Amtrak can run 
without losing time and money. We are looking at that side of the 
equation too. I know some of our friends in the freight rail industry 
are not all that excited about this legislation because we want Amtrak 
to be on time and to get by the slower moving freight trains. Sometimes 
that costs them money, and it is an inconvenience for them. After all, 
Amtrak is running on their tracks. But we will work with the freight 
lines and make sure their points of view are considered in the process.
  I won't go on any longer. I would like for us to get to some 
amendments that may be available on Amtrak. I know Senator Sununu has 
some. We will continue tomorrow.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from New Jersey.
  Mr. LAUTENBERG. Madam President, once again, it is obvious to all 
that Senator Lott understands what we have to do to get things done 
around here, and that it can't be all one way because each of us does 
represent a different State. We are brought here to bring in the 
opinions of the people whom we serve, our constituents, so we do get a 
mix of views. Sometimes I wish we didn't, but for the most part that is 
life in the real world.
  The thing we sometimes fail to see is, when we do something for the 
infrastructure, when we do something for rail service, it is in the 
national interest, even though there are currently many more riders in 
the very densely populated Northeast corridor. The fact is, as I 
related before, other places around the country are examining rail 
service as an alternative to their own congestion and pollution 
problems. When we look at something called essential air service, it is 
essential. That is why it is done. The Government does subsidize its 
existence because communities need that. So it is with rail service.
  Interestingly enough, only four States have no contact with Amtrak. 
One of them is Hawaii, which involves a very long train ride. The other 
is Alaska. We have heard Senator Stevens talk about having a railroad 
that goes to Alaska. But otherwise we have 46 States that have contact 
with Amtrak. Some of them are more active than others. But as was said 
by our colleague, Senator Lott, some of these States don't have the 
traffic or they are not en route enough. The mission is to get as many 
States involved with Amtrak, with rail service as we can, national rail 
passenger service.
  We look at ways of improving the management of Amtrak, that which we 
would with any business. I spent much of my life in business before I 
came to the Senate. Businesses run differently than government. But 
there are some principles that are the same; for instance, investments 
in product. If you don't put the money in, you don't get the money out. 
What we found here is, since the creation of Amtrak, which goes back to 
1971--1971 was the creation of the Amtrak quasi-government corporation. 
It had been in private hands under different names for many years and 
never succeeded. Why? The thing that is obvious; that is, with rail 
passenger rail service, there is going to always be some assistance 
required from government, just as there is for the aviation system and 
the highway system. As a matter of fact, we spend more on highways in a 
year than we have spent on Amtrak since its creation, never having 
quite put in enough resources to bring the infrastructure up to the 
level it should be related to the period of time we are talking about.
  In Germany, there was a program to establish a rail system that cost 
about $70 billion in a 10-year period. China now is establishing a 
passenger rail service which could cost up to $200 billion. And here we 
are in the most powerful nation in the world playing catchup. We are 
not talking about insignificant sums of money, but we are talking about 
substantial opportunities for us to improve what we are doing with this 
bill that will run almost $2 billion a year for 6 years, plus some 
additional funding in another bill raised by bonding authority. Senator 
Lott has been very helpful in the Finance Committee to get this system 
up to where it ought to be. Whenever we look for opportunities to 
improve life in America, certainly this looms high on the horizon.
  We have made it clear that we are ready to accept amendments. We 
would like them brought to the floor this evening or tomorrow. But we 
will not be able to stay here and not see any response, if there isn't 
enough interest by fellow Members to come down and bring us their 
amendments.
  I ask unanimous consent that the previously agreed to committee 
amendments be considered as original text for the purpose of further 
amendments; that the pending managers' amendment be considered and 
agreed to and considered as original text for the purpose of further 
amendments; that the bill, as amended, be considered as original text 
for the purpose of further amendments; that no points of order be 
considered waived by virtue of this agreement.
  As Senator Lott well knows, this is kind of professional language for 
the institution.
  Mr. LOTT. Madam President, I will not object. I just want to say, we 
have worked through this, and it is cleared on our side. We have no 
objection.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3451) was agreed to.
  Mr. LOTT. I thank the Chair and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. SUNUNU. Madam President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. SUNUNU. Madam President, we are moving on into the early hours of 
the evening, and I appreciate the work that the bill managers, Senator 
Lautenberg and Senator Lott, have done on this legislation.
  I am a member of the Commerce Committee as well, and there is no 
question that there was strong support for this legislation when we 
voted on it last year. As Senator Lautenberg indicated, it was a 93-to-
6 vote. I am sorry to say, at least from his perspective, I was one of 
the six who voted ``no.''
  Despite the work that has gone into this legislation, I do think it 
has some real weaknesses. Both Senators Lott and Lautenberg touched on 
some of those weaknesses in their opening remarks--that at times Amtrak 
has not delivered the kind of quality service we would expect; at times 
they have not delivered, year after year, the kind of financial results 
we would hope for and

[[Page S13349]]

expect as taxpayers who are providing the subsidies and the support for 
Amtrak.
  Since its creation well over 25 years ago, the Federal subsidies have 
amounted to over $20 billion. Amtrak was originally created with the 
intention of becoming self-sufficient. There was an Amtrak reform bill 
passed in 1997, recommitting to this goal, and yet it still has not 
happened.
  As a taxpayer and as a Senator, it causes me great concern we have 
not done better--better both in terms of performance on the service and 
the quality side--but also on the financial side.
  There was discussion of the Northeast Corridor. The Northeast 
Corridor does provide for a great opportunity to serve millions of 
people running from my State of New Hampshire all the way down to 
Washington, DC, and beyond--some of the more densely populated areas 
where it makes the most sense to have a train service. But even in the 
Northeast Corridor, the operation is not what we would want.
  I think it is fair to expect more; not just in the financial 
oversight that is in the legislation, not just in some of the new 
programs that are in the legislation, but, for example, in the long-
distance train service. For the long-distance train routes--I think 
there are 15 or 16 now--they lose $200 per passenger. That is not 
acceptable.
  I have a couple amendments I will be offering. One deals with that 
huge per-passenger subsidy, to say if we are losing $200 per 
passenger--every single passenger: a $200 subsidy--on some of those 
long-distance routes, we should not continue to operate that route.
  There are some proposals for allowing route competition. I think that 
is also a good idea, but one we can build on and expand on, allowing 
more and different routes to be offered on a competitive basis.
  So I think there are ways to improve the bill that we need to take a 
look at, and that I hope are at least part of the debate.
  I do not necessarily expect to win on all of those amendments, but I 
think it is important we be realistic about some of the weaknesses that 
are in the system.
  I also want to address an issue that was spoken about early this 
evening by Senator Alexander. He discussed at some length the Internet 
tax moratorium and what that would mean to American consumers.
  Right now, we have a ban on Internet access taxes. You cannot levy an 
access tax on the Internet for consumers, or for businesses, for that 
matter. Everyone talks about the importance of broadband to our 
economy. Without question, the Internet is important to our economy, 
not just because it gives us information or brings data into our homes, 
but because it represents a national--in effect, a global--network for 
communication and for commerce.
  That is something that is the responsibility of Congress to protect--
to protect from onerous regulation, to protect from taxes that would 
discourage long-term investment that would raise costs for consumers or 
businesses.
  We have had that ban on Internet taxes in place, and I think it is 
important we make that tax ban permanent. Unfortunately, after 
introducing legislation at the beginning of this year, we have not had 
a single vote on this issue. We have not voted on it in the Commerce 
Committee or any subcommittee. They have not voted on it in the Finance 
Committee. We have not had a vote on it on this floor.
  Many of us have been trying very hard to get a vote to make this 
Internet tax moratorium permanent. The moratorium expires on Halloween, 
of all days. On that day, because the ban will no longer be in effect, 
States, cities, towns, and counties would be in the position to levy 
new taxes on Internet access. That is not right. It is not good for 
consumers. It is not good for the economy. It is not good for the 
communication system, the data system, and the commerce system we have 
come to count on with the Internet.
  A number of Senators--Senator Wyden; Senator McCain; Senator 
McConnell; Senator Lott and numerous House Members, such as Anna Eshoo 
from California--have worked very hard on making this ban permanent. 
For those who have listened to this debate from around the country, I 
am sure they wonder why it is we cannot do anything in a consistent 
way. We have research and development tax credits that lasts only for a 
year. We have a death tax that is repealed in 2011 and comes back from 
the dead in 2012. And we have a ban on Internet access taxes that only 
lasts 4 years. It ought to be made permanent for the sake of 
consistency.
  While I do not want to cause any unnecessary delay in underlying 
legislation, I think that addressing the Internet tax moratorium is 
something that is important.


                           Amendment No. 3452

  For that reason, Madam President, I send an amendment to the desk at 
this time and ask for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report the amendment.
  The assistant legislative clerk read as follows:

       The Senator from New Hampshire [Mr. Sununu] proposes an 
     amendment numbered 3452.

  Mr. SUNUNU. Madam President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

 (Purpose: To amend the Internet Tax Freedom Act to make permanent the 
moratorium on certain taxes relating to the Internet and to electronic 
                               commerce)

       At the end of the bill, add the following:

     SECTION ____1. SHORT TITLE.

       This Act may be cited as the ``Internet Tax Freedom Act 
     Amendments Act of 2007''.

     SEC. ______2. PERMANENT BAN OF INTERNET ACCESS TAXES.

       (a) In General.--Section 1101(a) of the Internet Tax 
     Freedom Act (47 U.S.C. 151 note) is amended by striking 
     ``during the period'' through ``2007''.
       (b) Grand Fathering of States That Tax Internet Access.--
     Section 1104(a)(2) of such Act is amended to read as follows:
       ``(2) State telecommunications service tax.--
       ``(A) Date for termination.--This subsection shall not 
     apply after November 1, 2006, with respect to a State 
     telecommunications service tax described in subparagraph (B).
       ``(B) Description of tax.--A State telecommunications 
     service tax referred to in subparagraph (A) is a State tax--
       ``(i) enacted by State law on or after October 1, 1991, and 
     imposing a tax on telecommunications service; and
       ``(ii) applied to Internet access through administrative 
     code or regulation issued on or after December 1, 2002.''.

     SEC. _____3. GRANDFATHERING OF STATES THAT TAX INTERNET 
                   ACCESS.

       Section 1104 of the Internet Tax Freedom Act (47 U.S.C. 151 
     note) is amended by adding at the end the following:
       ``(c) Application of Definition.--
       ``(1) In general.--Effective as of November 1, 2003--
       ``(A) for purposes of subsection (a), the term `Internet 
     access' shall have the meaning given such term by section 
     1104(5) of this Act, as enacted on October 21, 1998; and
       ``(B) for purposes of subsection (b), the term `Internet 
     access' shall have the meaning given such term by section 
     1104(5) of this Act as enacted on October 21, 1998, and 
     amended by section 2(c) of the Internet Tax Nondiscrimination 
     Act (Public Law 108-435).
       ``(2) Exceptions.--Paragraph (1) shall not apply until 
     November 1, 2007, to a tax on Internet access that is--
       ``(A) generally imposed and actually enforced on 
     telecommunications service purchased, used, or sold by a 
     provider of Internet access, but only if the appropriate 
     administrative agency of a State or political subdivision 
     thereof issued a public ruling prior to July 1, 2007, that 
     applied such tax to such service in a manner that is 
     inconsistent with paragraph (1); or
       ``(B) the subject of litigation instituted in a judicial 
     court of competent jurisdiction prior to July 1, 2007, in 
     which a State or political subdivision is seeking to enforce, 
     in a manner that is inconsistent with paragraph (1), such tax 
     on telecommunications service purchased, used, or sold by a 
     provider of Internet access.
       ``(3) No inference.--No inference of legislative 
     construction shall be drawn from this subsection or the 
     amendments to section 1105(5) made by the Internet Tax 
     Freedom Act Amendments Act of 2007 for any period prior to 
     November 1, 2007, with respect to any tax subject to the 
     exceptions described in subparagraphs (A) and (B) of 
     paragraph (2).''.

     SEC. ______4. DEFINITIONS.

       Section 1105 of the Internet Tax Freedom Act (47 U.S.C. 151 
     note) is amended--
       (1) in paragraph (1) by striking ``services'',
       (2) by amending paragraph (5) to read as follows:
       ``(5) Internet access.--The term `Internet access'--
       ``(A) means a service that enables users to connect to the 
     Internet to access content, information, or other services 
     offered over the Internet;

[[Page S13350]]

       ``(B) includes the purchase, use or sale of 
     telecommunications by a provider of a service described in 
     subparagraph (A) to the extent such telecommunications are 
     purchased, used or sold--
       ``(i) to provide such service; or
       ``(ii) to otherwise enable users to access content, 
     information or other services offered over the Internet;
       ``(C) includes services that are incidental to the 
     provision of the service described in subparagraph (A) when 
     furnished to users as part of such service, such as a home 
     page, electronic mail and instant messaging (including voice- 
     and video-capable electronic mail and instant messaging), 
     video clips, and personal electronic storage capacity; and
       ``(D) does not include voice, audio or video programming, 
     or other products and services (except services described in 
     subparagraph (A), (B), or (C)) that utilize Internet protocol 
     or any successor protocol and for which there is a charge, 
     regardless of whether such charge is separately stated or 
     aggregated with the charge for services described in 
     subparagraph (A), (B), or (C).'',
       (3) by amending paragraph (9) to read as follows:
       ``(9) Telecommunications.--The term `telecommunications' 
     means `telecommunications' as such term is defined in section 
     3(43) of the Communications Act of 1934 (47 U.S.C. 153(43)) 
     and `telecommunications service' as such term is defined in 
     section 3(46) of such Act (47 U.S.C. 153(46)), and includes 
     communications services (as defined in section 4251 of the 
     Internal Revenue Code of 1986 (26 U.S.C. 4251)).'', and
       (4) in paragraph (10) by adding at the end the following:
       ``(C) Specific exception.--
       ``(i) Specified taxes.--Effective November 1, 2007, the 
     term `tax on Internet access' also does not include a State 
     tax expressly levied on commercial activity, modified gross 
     receipts, taxable margin, or gross income of the business, by 
     a State law specifically using one of the foregoing terms, 
     that--

       ``(I) was enacted after June 20, 2005, and before November 
     1, 2007 (or, in the case of a State business and occupation 
     tax, was enacted after January 1, 1932, and before January 1, 
     1936);
       ``(II) replaced, in whole or in part, a modified value-
     added tax or a tax levied upon or measured by net income, 
     capital stock, or net worth (or, is a State business and 
     occupation tax that was enacted after January 1, 1932 and 
     before January 1, 1936);
       ``(III) is imposed on a broad range of business activity; 
     and
       ``(IV) is not discriminatory in its application to 
     providers of communication services, Internet access, or 
     telecommunications.

       ``(ii) Modifications.--Nothing in this subparagraph shall 
     be construed as a limitation on a State's ability to make 
     modifications to a tax covered by clause (i) of this 
     subparagraph after November 1, 2007, as long as the 
     modifications do not substantially narrow the range of 
     business activities on which the tax is imposed or otherwise 
     disqualify the tax under clause (i).
       ``(iii) No inference.--No inference of legislative 
     construction shall be drawn from this subparagraph regarding 
     the application of subparagraph (A) or (B) to any tax 
     described in clause (i) for periods prior to November 1, 
     2007.''.

     SEC. ______5. CONFORMING AMENDMENTS.

       (a) Accounting Rule.--Section 1106 of the Internet Tax 
     Freedom Act (47 U.S.C. 151 note) is amended--
       (1) by striking ``telecommunications services'' each place 
     it appears and inserting ``telecommunications'', and
       (2) in subsection (b)(2)--
       (A) in the heading by striking ``services'',
       (B) by striking ``such services'' and inserting ``such 
     telecommunications'', and
       (C) by inserting before the period at the end the 
     following: ``or to otherwise enable users to access content, 
     information or other services offered over the Internet''.
       (b) Voice Services.--The Internet Tax Freedom Act (47 
     U.S.C. 151 note) is amended by striking section 1108.

     SEC. _______6. EFFECTIVE DATE.

       This Act, and the amendments made by this Act, shall take 
     effect on November 1, 2007, and shall apply with respect to 
     taxes in effect as of such date or thereafter enacted, except 
     as provided in section 1104 of the Internet Tax Freedom Act 
     (47 U.S.C. 151 note).

  Mr. SUNUNU. Madam President, this legislation would simply take what 
has already been done in the House--which is to pass a 4-year 
extension--and to make it permanent. A lot of good work was done in the 
House to strengthen the current moratorium and ban on Internet access 
taxes. Unfortunately, despite the fact there were over 240 Democrats 
and Republicans who supported this legislation, it did not receive an 
up-or-down vote to make the ban on Internet taxes permanent.
  So what we do is take the House language in this amendment and make 
it permanent. It provides clarification with regard to services and 
technologies that are dealt with and not dealt with. If you are an 
Internet business, you still pay property taxes and payroll taxes. You 
pay business income taxes. But the Government should not be allowed to 
levy a tax on access to the Internet for the consumers themselves.
  There are certain States that are affected by grandfather clauses 
that were included in the House language. We maintain that language. 
All we do is fully extend it permanently so that if you are a consumer 
you know the Internet will not be taxed. If you are a small business, 
you know your cost of Internet access will not go up. If you are doing 
business over the Internet, you know there will continue to be 
investments in the infrastructure necessary to increase broadband 
deployment.
  I think at the very least we should have an opportunity to vote on 
making this Internet tax moratorium permanent. I think it is a 
commonsense approach. We can always come back and look at the technical 
issues associated with the language if it needs to be modified in 5 
years or 10 years or 15 years. That is what Congress does. But we 
should say, once and for all, we are not going to tax Internet access 
at the Federal level, at the State level, at the local level.
  Madam President, I thank you for the consideration and yield the 
floor.
  The PRESIDING OFFICER. The minority leader is recognized.
  Mr. McCONNELL. Madam President, I thank the Senator from New 
Hampshire for offering this important amendment. We are running out of 
time. The Internet tax moratorium does expire in a week. As the Senator 
from New Hampshire has indicated, State and local governments across 
our country could impose taxes on Internet access as soon as a week 
from now.
  I think it is important we address this issue--not that the 
underlying measure is not important as well. I know it is important to 
many Senators. But the Internet needs to be protected. Here is our 
chance to go on record: Are we for a tax on Internet access or not?
  The Internet has been at the heart of America's economic growth over 
the past decade--all because Government has not gotten in the way. 
Those days are over if we open the Internet to new taxes. I think there 
is bipartisan support for a permanent ban, for continuing the 
moratorium forever, and I think the Senate ought to have an opportunity 
to go on record.


                             Cloture Motion

  The only way, Madam President, in the parliamentary situation we find 
ourselves in, that a vote on a permanent moratorium could be achieved 
is if I were to offer a motion to invoke cloture, which I send to the 
desk now, on the Sununu amendment.
  The PRESIDING OFFICER. The cloture motion having been presented under 
rule XXII, the Chair directs the clerk to read the motion.
  The assistant legislative clerk read as follows:

                             Cloture Motion

       We, the undersigned Senators, in accordance with the 
     provisions of rule XXII of the Standing Rules of the Senate, 
     do hereby move to bring to a close debate on the pending 
     amendment No. 3452 to make the moratorium on Internet access 
     taxes and multiple and discriminatory taxes on electronic 
     commerce permanent.
         Mitch McConnell, John E. Sununu, John Ensign, Ted 
           Stevens, Kay Bailey Hutchison, John Barrasso, R.F. 
           Bennett, Larry Craig, Lindsey Graham, Wayne Allard, 
           Trent Lott, Jim Bunning, Jim DeMint, Mel Martinez, 
           Richard Burr, David Vitter.

  Mr. McCONNELL. Madam President, I yield the floor.
  The PRESIDING OFFICER. The Senator from New Hampshire.
  Mr. SUNUNU. Madam President, I thank the Republican leader for his 
remarks and for the support he has provided to us. He is not a member 
of the Commerce Committee. He has a lot of other duties in the Senate, 
but he has taken a great interest in this issue, as I think most any 
legislator would, because the Internet is something we all understand, 
we deal with, we work with at one level or another. Our families, our 
friends, our neighbors, and businesses we may have worked for before, 
depend on it in different ways.
  Everyone understands when you tax something, you raise its cost; when 
you tax something, you end up getting less of it--especially in the 
long run.
  Some people stood up and said: Well, there are some States that have 
some taxes on the Internet, but there has still been broadband 
deployment in their State. That may well be, but you

[[Page S13351]]

cannot argue with the economic fact that when you tax something, you 
raise its cost; and when you raise its cost, you create a barrier to 
investment. Those are economic facts of life we cannot change, and 
those are the economic factors that make implementing a permanent ban 
on Internet taxes so important.
  Opponents of making this ban permanent have also suggested it is an 
unfunded mandate to tell States they cannot tax the Internet, that it 
is an unfunded mandate because if we allow them to tax, they could 
raise money, but because we are telling them they cannot tax Internet 
access, they cannot raise that money, so there is a cost.
  I think that is classic Washington-speak, a classic inside-the-
beltway mentality, that if we prevent a State from imposing taxes, we 
have to compensate the State for that. That is plain wrong. If that 
were true, then we should be compensating every State in the Union 
because we do not allow them to arbitrarily impose taxes, fees, and 
tolls on every mile of interstate highway in the country, or because we 
do not allow every State in the Union to impose unique taxes on any 
flight or aviation that comes into or leaves their State. We do not 
allow that because we recognize our aviation system is a national 
system, because we recognize our interstate highway system is a 
national system. We do not allow States to tax exports for the same 
reason. And yet, we do not call those examples unfunded mandates. We do 
not compensate the States for these activities because the Federal 
Government has recognized these are important facets to interstate 
commerce that need to be dealt with in a systematic and uniform way at 
the Federal level. So I think it is an enormous mistake and very 
misleading to refer to this as an unfunded mandate.
  The second objection that some have made is they recognize: Well, the 
technologies may change, so defining what is Internet access or data 
service or voice service--those definitions may have to be modified, as 
we have modified them over the last 6 or 8 years since the first ban on 
Internet access taxes was first put in place in 1998.
  But if the fact that technology may change is a reason for not 
legislating or not making something permanent, we could use that as an 
excuse not to do anything ever or at least to do every bill on a 1- or 
2-year basis. Especially in an area where we are dealing with 
investment and taxation, it is counterproductive at times to do such 
short-term legislation because those in the economy who are taking 
risks, making investments, creating jobs and economic opportunity for 
other people, will not be able to calculate and estimate what long-term 
returns and benefits might come from a given investment. They do not 
know what the tax rate will be or they do not know what the regulatory 
burden will be. As a result, you get fewer investments in that area. So 
we know that technology, services, and the approach to the Internet 
that businesses take may change in the future, but Congress can always 
and should always revisit laws, rules, or regulations, whether it has 
to do with Internet access or any other area.

  So this is a piece of legislation whose time has come. I hope we can 
get expeditious consideration and approval because I think this is 
something that has been shown to have bipartisan support in both the 
House and the Senate.
  At this time, I would like to turn my attention to another amendment 
I mentioned earlier in my remarks, and that has to do with the long-
distance train routes. As I said, I think there are 14, 15, or 16 
routes in operation now. None of these long-distance train routes make 
any money. They do not make any operating profit. They all lose money. 
They all lose money at different levels. Some of the long-distance 
routes, by GAO accounting estimates, lose as much as $200 per 
passenger. That means there is a Federal taxpayer subsidy, not of $1, 
or $10, or $20, or $40, but $200 for every passenger riding that route 
over the course of a year. That is a level of cost and subsidy which 
just can't be justified; especially at a time when we are trying to 
deal with difficult Federal priorities.
  Today and throughout this week, there has been a lot of discussion 
about SCHIP, the State Children's Health Insurance Program, and the 
fact that SCHIP is an important program. I agree. I supported the 
legislation here in the Senate. Its goal is to provide coverage for 
lower income families who aren't covered by Medicaid, but may not be 
covered at their place of employment by a health care policy. As we are 
having a debate about providing that funding and targeting it to the 
most needy, whether it is health care or any other high-priority 
initiative, it is so hard to justify running trains across the country 
that have a subsidy of $200 for every passenger riding that train 
through the year.
  So what I would propose is that we set a standard of $200. If your 
per-passenger subsidy through the course of a year is less than $200, 
we will allow the train to operate. Now, we hope it improves. We hope 
the reforms that were described at the beginning of the evening work--
improve the management, reduce the costs, improve the efficiency, and 
improve the performance. But if they do not, and that subsidy level 
remains above $200 over the course of a year, that route should not 
remain in operation. Then, in subsequent years, we bring that threshold 
down, and the second year after this amendment would be in effect, the 
threshold would be $175. So if you have to subsidize passengers at $170 
for every passenger who rides that train in a year, you can remain in 
operation, but if it is more than $175, that route would have to be 
closed. So on over the lifetime, until at the end of the authorization 
period for this bill we would have a cap of $100 subsidy per rider. I 
think that is still too high, but I certainly don't think it is too 
much to ask in an authorization bill of this type.


                           Amendment No. 3453

  Mr. President, at this time I ask unanimous consent to set aside any 
pending amendment and send this amendment to the desk.
  The PRESIDING OFFICER (Mr. Casey). Without objection, it is so 
ordered. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from New Hampshire [Mr. Sununu] proposes an 
     amendment numbered 3453.

  Mr. SUNUNU. I ask unanimous consent that the reading of the amendment 
be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:


                           amendment no. 3453

(Purpose: To prohibit Federal subsidies in excess of specified amounts 
                       on any Amtrak train route)

       On page 32, before line 21, insert the following:
       (c) Limit on Passenger Subsidies.--
       (1) In general.--The Secretary of Transportation shall 
     prohibit any Federal funds to be used for the operation of an 
     Amtrak train route that has a per passenger subsidy, as 
     determined by the Inspector General under paragraph (2), of 
     not less than--
       (A) $200 during the first fiscal year beginning after the 
     date of the enactment of this Act;
       (B) $175 during the second fiscal year beginning after the 
     date of the enactment of this Act;
       (C) $150 during the third fiscal year beginning after the 
     date of the enactment of this Act;
       (D) $125 during the fourth fiscal year beginning after the 
     date of the enactment of this Act; and
       (E) $100 during any fiscal year beginning after the time 
     period described in subparagraph (D).
       (2) Determination of subsidy level.--The Inspector General 
     of the Department of Transportation, using data provided by 
     Amtrak, shall determine the difference between the average 
     fully allocated operating cost per passenger and the average 
     ticket price collected for each train route operated by 
     Amtrak during the most recent 12-month period for which data 
     is available.
       (3) Report.--
       (A) In general.--Not later than 6 months before the end of 
     each fiscal year, and every 6 months thereafter, the 
     Inspector General shall publish a report that--
       (i) lists the subsidy levels determined under paragraph 
     (2); and
       (ii) includes a statement that Amtrak will terminate any 
     train route that has a per passenger subsidy in excess of the 
     limits set forth in paragraph (1).
       (B) Distribution.--The Inspector General shall display the 
     report published under subparagraph (A) on the Internet and 
     submit a copy of such report to--
       (i) the President of Amtrak;
       (ii) the Secretary of Transportation;
       (iii) the Committee on Commerce, Science, and 
     Transportation of the Senate; and
       (iv) the Committee on Transportation and Infrastructure of 
     the House of Representatives.

  Mr. SUNUNU. Mr. President, I thank you for the time. The amendment I

[[Page S13352]]

have just submitted is as I have described, and I hope this is an idea 
and an approach which can be incorporated into the legislation. I think 
it is common sense. I know a lot of Members of the Senate believe 
strongly that we should have long-distance trains, with long routes 
across the country. I would like to see those routes maintained and 
sustained as well, if it can be done in an economically reasonable way.
  But the last years have shown that for some of these routes, the 
passenger levels are so low, the costs of operating are so high, they 
just can't compete. They can't compete with buses, they can't compete 
with automobiles, and they can't compete with airplanes in terms of 
cost and efficiency. So I think a step like this is long overdue. 
Again, I thank the bill managers, Senator Lautenberg and Senator Lott, 
for their time and consideration and for allowing me to offer these 
amendments this evening.
  I yield the floor.
  Mr. LAUTENBERG. Mr. President, I note the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. BROWN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BROWN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BROWN. Mr. President, I ask unanimous consent to speak as in 
morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                             2007 Farm Bill

  Mr. BROWN. Mr. President, I appreciate seeing the Senator from 
Pennsylvania in the chair. We were both in the Agriculture Committee 
today. I thank him for his leadership for dairy farmers and for 
nutrition and feeding kids and all that he did that way.
  The 2007 farm bill is a chance for Congress to make historic strides 
in agriculture, alternative energy, and to literally help improve the 
lives of millions of families across the country--families struggling 
from Harrisburg to Erie, from Ashtabula to Gallipolis, from Lima to 
Toledo.
  In a State such as Ohio, with a long and rich agricultural history, 
this means a bright future for our agriculture industry, for our family 
farmers, and for our families.
  I applaud the leadership of Senator Harkin. I am proud, as Ohio's 
first Senator to sit on the Agriculture Committee in four decades, to 
be part of this process.
  This bill could mean that low-income families will have more access 
to better nutrition by increasing Food Stamp Programs and access to 
affordable healthy foods. That means more fruits and vegetables into 
the schools in Hamilton, Middletown, and Akron, and more fruits and 
vegetables available, grown by local farmers, to go into farmers 
markets in Columbus and Zanesville and all over our State.
  Earlier this year, as the occupant of the chair and I and others 
gathered in the committee, we heard from Rhonda Stewart of Hamilton, 
OH. Rhonda is perhaps in her early thirties and has, I believe, a 9-
year-old son. She is a single mother, struggling and working full-time 
and making about $8, $9, or $10 an hour, with no health insurance. She 
was president of the local PTA and her son is involved in the Cub 
Scouts and she is a food stamp beneficiary. She struggled every month. 
At the beginning of the month, she told the committee back in February, 
she would serve her son pork chops that first week, which is his 
favorite meal. By the middle of the month, they went to McDonald's or 
another fast-food place maybe twice. But by the end of the month, as 
times got tough and she struggled financially, she would almost 
invariably sit at the dinner table, at the kitchen table with her son, 
he would be eating and she would not. He would say: What's wrong, Mom? 
Aren't you hungry? She would say: No, I don't feel well. She simply ran 
out of money at the end of the month.
  In the farm bill, we are helping people like her and her family who 
work hard and play by the rules and do everything in the workplace and 
in their homes that we ask them to do as citizen of their communities 
and our country. This bill could mean new investment and a new 
direction for farmers in Ohio.
  The 2007 farm bill reflects the values of farmers across Ohio: 
forward-thinking, responsible, and working to protect our natural 
resources and our rural communities.
  This bill will help family farmers in my State and in Pennsylvania 
and across the country by strengthening the farm safety net, one that 
will provide better protection for farmers against disasters, such as 
either low yield or low prices. Either one can be obviously devastating 
to farmers.
  The Average Crop Revenue Program, which Senator Durbin and I 
introduced a bill to create as part of the farm bill--amended by 
Chairman Harkin into the farm bill--offers a much needed choice to 
farmers. It represents significant reform for farmers and huge 
savings--literally $3.5 billion--for taxpayers.
  Farmers can stay in the current or old program that does little to 
protect against drops in revenue or, for the first time ever, farmers 
will be able to switch to a forward-looking policy that better protects 
against volatile crop prices, natural disasters, and rising production 
costs. If farmers are doing well and prices and yields are good, 
farmers would not get tax dollars. If times are bad--the yield is low 
or there are floods or tornadoes that cause major crop yield drops or 
if the price is low--then the farmer will get help. That is the way 
that agriculture should be. That is the way most farmers I find in 
northwest Ohio and all over my State want to do it too. I traveled 
throughout Ohio this Spring--to Chillicothe, where we did roundtables 
with fruit and vegetable farmers, and in Montgomery County, not too far 
from Troy, and Piqua, near Dayton. We talked to farmers there, and near 
Wooster, OH. We talked to dairy farmers. In Lake County we talked to 
specialty farmers, especially those who do landscaping and greenhouses. 
In northwest Ohio we talked to farmers who grow corn and soybeans.
  I met with a corn farmer in Henry County who will be supplying corn 
to one of the first ethanol plants in Ohio. I met with a hog farmer in 
Montgomery County who uses wind turbines to provide on-farm energy.
  This farm bill makes a commitment to move beyond antiquated energy 
sources and wean ourselves from Middle Eastern oil and prepare American 
agriculture to lead the world in renewable energy production.
  With the right resources and the right incentives, farmers can help 
decrease our dependence on foreign oil and produce clean, sustainable, 
renewable energy.
  In a State such as Ohio, with a talented labor force and a proud 
lead-the-nation manufacturing history, that doesn't just mean stronger 
farms and more prosperous farmers; it means a stronger economy.
  Rural communities across the Nation will benefit from additional 
Federal assistance in the farm bill and small towns not far from where 
I grew up in Lexington, OH, places like Butler and Belleville, will 
benefit from funding for infrastructure and hospitals, while expanding 
access to broadband for all of my State, especially southeast Ohio, 
which doesn't have the access it needs.
  This bill will also provide more than $4 billion in additional 
funding for conservation programs to help farmers protect our water 
quality, expand wildlife habitat, and preserve endangered farmland.
  While I am pleased with the bill overall, it can be improved. The 
public is perfectly willing to help family farmers when they need it, 
but taxpayers will not support massive payments to farms that have 
substantial net incomes.
  We should not be sending tax dollars to Florida real estate 
developers, to city farmers who live in New York, to NBA players, or to 
media personalities. Those are not the people who should benefit from 
the farm bill.
  I regret that we have not funded the McGovern-Dole international 
feeding program. I hope as this legislation progresses, we will do so.
  The agricultural industry in Ohio has experienced unprecedented 
change in recent years, but the values of Ohio farmers--hard work, 
stewardship of the

[[Page S13353]]

land, caring for their families--remains steadfast.
  We, too, must be steadfast in our support for farmers, but we must 
also change how we go about providing that support.
  I applaud the proposal put before us in the Agriculture Committee 
today. I hope we can even improve upon it in the weeks ahead.
  I yield the floor.
  Mr. LAUTENBERG. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. LAUTENBERG. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. LAUTENBERG. Mr. President, I ask for the regular order.
  The PRESIDING OFFICER. Amendment No. 3452 is pending.


                Amendment No. 3454 to Amendment No. 3452

  Mr. LAUTENBERG. Mr. President, I send an amendment to the desk on 
behalf of Senator Carper, which is No. 3452.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from New Jersey [Mr. LAUTENBERG], for Mr. 
     Carper, proposes an amendment numbered 3454 to Amendment No. 
     3452.

  Mr. LAUTENBERG. I ask unanimous consent that reading of the amendment 
be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       Strike all after the first word and insert the following:

     1. SHORT TITLE.

       This Act may be cited as the ``Internet Tax Freedom Act 
     Amendments Act of 2007''.

     SEC. 2. MORATORIUM.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended--
       (1) in section 1101(a) by striking ``2007'' and inserting 
     ``2011'', and
       (2) in section 1104(a)(2)(A) by striking ``2007'' and 
     inserting ``2011''.

     SEC. 3. GRANDFATHERING OF STATES THAT TAX INTERNET ACCESS.

       Section 1104 of the Internet Tax Freedom Act (47 U.S.C. 151 
     note) is amended by adding at the end the following:
       ``(c) Application of Definition.--
       ``(1) In general.--Effective as of November 1, 2003--
       ``(A) for purposes of subsection (a), the term `Internet 
     access' shall have the meaning given such term by section 
     1104(5) of this Act, as enacted on October 21, 1998; and
       ``(B) for purposes of subsection (b), the term `Internet 
     access' shall have the meaning given such term by section 
     1104(5) of this Act as enacted on October 21, 1998, and 
     amended by section 2(c) of the Internet Tax Nondiscrimination 
     Act (Public Law 108-435).
       ``(2) Exceptions.--Paragraph (1) shall not apply until 
     November 1, 2007, to a tax on Internet access that is--
       ``(A) generally imposed and actually enforced on 
     telecommunications service purchased, used, or sold by a 
     provider of Internet access, but only if the appropriate 
     administrative agency of a State or political subdivision 
     thereof issued a public ruling prior to July 1, 2007, that 
     applied such tax to such service in a manner that is 
     inconsistent with paragraph (1); or
       ``(B) the subject of litigation instituted in a judicial 
     court of competent jurisdiction prior to July 1, 2007, in 
     which a State or political subdivision is seeking to enforce, 
     in a manner that is inconsistent with paragraph (1), such tax 
     on telecommunications service purchased, used, or sold by a 
     provider of Internet access.
       ``(3) No inference.--No inference of legislative 
     construction shall be drawn from this subsection or the 
     amendments to section 1105(5) made by the Internet Tax 
     Freedom Act Amendments Act of 2007 for any period prior to 
     November 1, 2007, with respect to any tax subject to the 
     exceptions described in subparagraphs (A) and (B) of 
     paragraph (2).''.

     SEC. 4. DEFINITIONS.

       Section 1105 of the Internet Tax Freedom Act (47 U.S.C. 151 
     note) is amended--
       (1) in paragraph (1) by striking ``services'',
       (2) by amending paragraph (5) to read as follows:
       ``(5) Internet access.--The term `Internet access'--
       ``(A) means a service that enables users to connect to the 
     Internet to access content, information, or other services 
     offered over the Internet;
       ``(B) includes the purchase, use or sale of 
     telecommunications by a provider of a service described in 
     subparagraph (A) to the extent such telecommunications are 
     purchased, used or sold--
       ``(i) to provide such service; or
       ``(ii) to otherwise enable users to access content, 
     information or other services offered over the Internet;
       ``(C) includes services that are incidental to the 
     provision of the service described in subparagraph (A) when 
     furnished to users as part of such service, such as a home 
     page, electronic mail and instant messaging (including voice- 
     and video-capable electronic mail and instant messaging), 
     video clips, and personal electronic storage capacity; and
       ``(D) does not include voice, audio or video programming, 
     or other products and services (except services described in 
     subparagraph (A), (B), or (C)) that utilize Internet protocol 
     or any successor protocol and for which there is a charge, 
     regardless of whether such charge is separately stated or 
     aggregated, with the charge for services described in 
     subparagraph (A), (B), or (C).'',
       (3) by amending paragraph (9) to read as follows:
       ``(9) Telecommunications.--The term `telecommunications' 
     means `telecommunications' as such term is defined in section 
     3(43) of the Communications Act of 1934 (47 U.S.C. 153(43)) 
     and `telecommunications service' as such term is defined in 
     section 3(46) of such Act (47 U.S.C. 153(46)), and includes 
     communications services (as defined in section 4251 of the 
     Internal Revenue Code of 1986 (26 U.S.C. 4251)).'', and
       (4) in paragraph (10) by adding at the end the following:
       ``(C) Specific exception.--
       ``(i) Specified taxes.--Effective November 1, 2007, the 
     term `tax on Internet access' also does not include a State 
     tax expressly levied on commercial activity, modified gross 
     receipts, taxable margin, or gross income of the business, by 
     a State law specifically using one of the foregoing terms, 
     that--
       ``(I) was enacted after June 20, 2005, and before November 
     1, 2007 (or, in the case of a State business and occupation 
     tax, was enacted after January 1, 1932, and before January 1, 
     1936);
       ``(II) replaced, in whole or in part, a modified value-
     added tax or a tax levied upon or measured by net income, 
     capital stock, or net worth (or, is a State business and 
     occupation tax that was enacted after January 1, 1932 and 
     before January 1, 1936);
       ``(III) is imposed on a broad range of business activity; 
     and
       ``(IV) is not discriminatory in its application to 
     providers of communication services, Internet access, or 
     telecommunications.
       ``(ii) Modifications.--Nothing in this subparagraph shall 
     be construed as a limitation on a State's ability to make 
     modifications to a tax covered by clause (i) of this 
     subparagraph after November 1, 2007, as long as the 
     modifications do not substantially narrow the range of 
     business activities on which the tax is imposed or otherwise 
     disqualify the tax under clause (i).
       ``(iii) No inference.--No inference of legislative 
     construction shall be drawn from this subparagraph regarding 
     the application of subparagraph (A) or (B) to any tax 
     described in clause (i) for periods prior to November 1. 
     2007.''.

     SEC. 5. CONFORMING AMENDMENTS.

       (a) Accounting Rule.--Section 1106 of the Internet Tax 
     Freedom Act (47 U.S.C. 151 note) is amended--
       (1) by striking ``telecommunications services'' each place 
     it appears and inserting ``telecommunications'', and (2) in 
     subsection (b)(2)--
       (A) in the heading by striking ``SERVICES'',
       (B) by striking ``such services'' and inserting `such 
     telecommunications', and
       (C) by inserting before the period at the end the 
     following: ``or to otherwise enable users to access content, 
     information or other services offered over the Internet''.
       (b) Voice Services.--The Internet Tax Freedom Act (47 
     U.S.C. 151 note) is amended by striking section 1108.

     SEC. 6. EFFECTIVE DATE.

       This Act, and the amendments made by this Act, shall take 
     effect on November 1, 2007, and shall apply with respect to 
     taxes in effect as of such date or thereafter enacted, except 
     as provided in section 1104 of the Internet Tax Freedom Act 
     (47 U.S.C. 151 note).

  Mr. LAUTENBERG. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. LAUTENBERG. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. LAUTENBERG. Mr. President, I ask unanimous consent that when the 
Senate resumes consideration of S. 294 on Thursday, October 25, there 
be 2 hours of debate prior to a vote in relation to the Sununu 
amendment No. 3453, with the time equally divided and controlled 
between Senators Lautenberg and Sununu or their designees, with no 
amendment in order to the amendment prior to the vote; that upon the 
use or yielding back of time, the Senate proceed to vote in relation to 
the amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. LAUTENBERG. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.

[[Page S13354]]

  The assistant legislative clerk proceeded to call the roll.
  Mr. LAUTENBERG. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________