[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.''.
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