[Congressional Record Volume 167, Number 194 (Thursday, November 4, 2021)]
[Senate]
[Pages S7821-S7822]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4288. Mr. CORNYN (for himself, Ms. Baldwin, and Mr. Moran) 
submitted an amendment intended to be proposed to amendment SA 3867 
submitted by Mr. Reed and intended to be proposed to the bill H.R. 
4350, to authorize appropriations for fiscal year 2022 for military 
activities of the Department of Defense, for military construction, and 
for defense activities of the Department of Energy, to prescribe 
military personnel strengths for such fiscal year, and for other 
purposes; which was ordered to lie on the table; as follows:

        At the end of subtitle G of title X, add the following:

     SEC. 1064. REQUIREMENTS FOR RAILROAD FREIGHT CARS PLACED INTO 
                   SERVICE IN THE UNITED STATES.

       (a) In General.--Subchapter II of chapter 201 of subtitle V 
     of title 49, United States Code, is amended by adding at the 
     end the following:

     ``Sec. 20169. Requirements for railroad freight cars placed 
       into service in the United States

       ``(a) Definitions.--In this section:
       ``(1) Component.--The term `component' means a part or 
     subassembly of a railroad freight car.
       ``(2) Control.--The term `control' means the power, whether 
     direct or indirect and whether or not exercised, through the 
     ownership of a majority or a dominant minority of the total 
     outstanding voting interest in an entity, representation on 
     the board of directors of an entity, proxy voting on the 
     board of directors of an entity, a special share in the 
     entity, a contractual arrangement with the entity, a formal 
     or informal arrangement to act in concert with an entity, or 
     any other means, to determine, direct, make decisions, or 
     cause decisions to be made for the entity.
       ``(3) Cost of sensitive technology.--The term `cost of 
     sensitive technology' means the aggregate cost of the 
     sensitive technology located on a railroad freight car.
       ``(4) Country of concern.--The term `country of concern' 
     means a country that--
       ``(A) is identified by the Department of Commerce as a 
     nonmarket economy country (as defined in section 771(18) of 
     the Tariff Act of 1930 (19 U.S.C. 1677(18))) as of the date 
     of the enactment of the National Defense Authorization Act 
     for Fiscal Year 2022;
       ``(B) was identified by the United States Trade 
     Representative in the most recent report required by section 
     182 of the Trade Act of 1974 (19 U.S.C. 2242) as a foreign 
     country included on the priority watch list (as defined in 
     subsection (g)(3) of such section); and
       ``(C) is subject to monitoring by the Trade Representative 
     under section 306 of the Trade Act of 1974 (19 U.S.C. 2416).
       ``(5) Net cost.--The term `net cost' has the meaning given 
     such term in chapter 4 of the USMCA or any subsequent free 
     trade agreement between the United States, Mexico, and 
     Canada.
       ``(6) Qualified facility.--The term `qualified facility' 
     means a facility that is not owned or under the control of a 
     state-owned enterprise.
       ``(7) Qualified manufacturer.--The term `qualified 
     manufacturer' means a railroad freight car manufacturer that 
     is not owned or under the control of a state-owned 
     enterprise.
       ``(8) Railroad freight car.--The term `railroad freight 
     car' means a car designed to carry freight or railroad 
     personnel by rail, including--
       ``(A) a box car;
       ``(B) a refrigerator car;
       ``(C) a ventilator car;
       ``(D) an intermodal well car;

[[Page S7822]]

       ``(E) a gondola car;
       ``(F) a hopper car;
       ``(G) an auto rack car;
       ``(H) a flat car;
       ``(I) a special car;
       ``(J) a caboose car;
       ``(K) a tank car; and
       ``(L) a yard car.
       ``(9) Sensitive technology.--The term `sensitive 
     technology' means any device embedded with electronics, 
     software, sensors, or other connectivity, that enables the 
     device to connect to, collect data from, or exchange data 
     with another device, including--
       ``(A) onboard telematics;
       ``(B) remote monitoring software;
       ``(C) firmware;
       ``(D) analytics;
       ``(E) global positioning system satellite and cellular 
     location tracking systems;
       ``(F) event status sensors;
       ``(G) predictive component condition and performance 
     monitoring sensors; and
       ``(H) similar sensitive technologies embedded into freight 
     railcar components and sub-assemblies.
       ``(10) State-owned enterprise.--The term `state-owned 
     enterprise' means--
       ``(A) an entity that is owned by, or under the control of, 
     a national, provincial, or local government of a country of 
     concern, or an agency of such government; or
       ``(B) an individual acting under the direction or influence 
     of a government or agency described in subparagraph (A).
       ``(11) Substantially transformed.--The term `substantially 
     transformed' means a component of a railroad freight car that 
     undergoes an applicable change in tariff classification as a 
     result of the manufacturing process, as described in chapter 
     4 and related annexes of the USMCA or any subsequent free 
     trade agreement between the United States, Mexico, and 
     Canada.
       ``(12) USMCA.--The term `USMCA' has the meaning given the 
     term in section 3 of the United States-Mexico-Canada 
     Agreement Implementation Act (19 U.S.C. 4502).
       ``(b) Requirements for Railroad Freight Cars.--
       ``(1) Limitation on railroad freight cars.--A railroad 
     freight car wholly manufactured on or after the date that is 
     1 year after the date of issuance of the regulations required 
     under subsection (c)(1) may only operate on the United States 
     general railroad system of transportation if--
       ``(A) the railroad freight car is manufactured, assembled, 
     and substantially transformed, as applicable, by a qualified 
     manufacturer in a qualified facility;
       ``(B) none of the sensitive technology located on the 
     railroad freight car, including components necessary to the 
     functionality of the sensitive technology, originates from a 
     country of concern or is sourced from a state-owned 
     enterprise; and
       ``(C) none of the content of the railroad freight car, 
     excluding sensitive technology, originates from a country of 
     concern or is sourced from a state-owned enterprise that has 
     been determined by a recognized court or administrative 
     agency of competent jurisdiction and legal authority to have 
     violated or infringed valid United States intellectual 
     property rights of another including such a finding by a 
     Federal district court under title 35 or the U.S. 
     International Trade Commission under section 337 of the 
     Tariff Act of 1930 (19 U.S.C. 1337).
       ``(2) Limitation on railroad freight car content.--
       ``(A) Percentage limitation.--
       ``(i) Initial limitation.--Not later than 1 year after the 
     date of issuance of the regulations required under subsection 
     (c)(1), a railroad freight car described in paragraph (1) may 
     operate on the United States general railroad system of 
     transportation only if not more than 20 percent of the 
     content of the railroad freight car, calculated by the net 
     cost of all components of the car and excluding the cost of 
     sensitive technology, originates from a country of concern or 
     is sourced from a state-owned enterprise.
       ``(ii) Subsequent limitation.--Effective beginning on the 
     date that is 3 years after the date of issuance of the 
     regulations required under subsection (c)(1), a railroad 
     freight car described in paragraph (1) may operate on the 
     United States general railroad system of transportation only 
     if not more than 15 percent of the content of the railroad 
     freight car, calculated by the net cost of all components of 
     the car and excluding the cost of sensitive technology, 
     originates from a country of concern or is sourced from a 
     state-owned enterprise.
       ``(B) Conflict.--The percentages specified in clauses (i) 
     and (ii) of subparagraph (A), as applicable, shall apply 
     notwithstanding any apparent conflict with provisions of 
     chapter 4 of the USMCA.
       ``(c) Rulemaking; Penalties.--
       ``(1) Regulations required.--Not later than 2 years after 
     the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2022, the Secretary of 
     Transportation shall issue such regulations as are necessary 
     to carry out this section, including for the monitoring and 
     sensitive technology requirements of this section.
       ``(2) Certification required.--To be eligible to provide a 
     railroad freight car for operation on the United States 
     general railroad system of transportation, the manufacturer 
     of such car shall annually certify to the Secretary of 
     Transportation that any railroad freight cars to be so 
     provided meet the requirements under this section.
       ``(3) Compliance.--
       ``(A) Valid certification required.--At the time a railroad 
     freight car begins operation on the United States general 
     railroad system of transportation, the manufacturer of such 
     railroad freight car shall have valid certification described 
     in paragraph (2) for the year in which such car begins 
     operation.
       ``(B) Registration of noncompliant cars prohibited.--A 
     railroad freight car manufacturer may not register, or cause 
     to be registered, a railroad freight car that does not comply 
     with the requirements under this section in the Association 
     of American Railroad's Umler system.
       ``(4) Civil penalties.--
       ``(A) In general.--Pursuant to section 21301, the Secretary 
     of Transportation may assess a civil penalty of not less than 
     $100,000, and not more than $250,000, for each violation of 
     this section for each railroad freight car.
       ``(B) Prohibition on operation for violations.--The 
     Secretary of Transportation may prohibit a railroad freight 
     car manufacturer with respect to which the Secretary has 
     assessed more than 3 violations under subparagraph (A) from 
     providing additional railroad freight cars for operation on 
     the United States general railroad system of transportation 
     until the Secretary determines--
       ``(i) such manufacturer is in compliance with this section; 
     and
       ``(ii) all civil penalties assessed to such manufacturer 
     pursuant to subparagraph (A) have been paid in full.''.
       (b) Clerical Amendment.--The analysis for chapter 201 of 
     subtitle V of title 49, United States Code, is amended by 
     adding at the end the following:

``20169. Requirements for railroad freight cars placed into service in 
              the United States.''.
                                 ______