[Congressional Record (Bound Edition), Volume 153 (2007), Part 1]
[Senate]
[Pages 1239-1271]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. LAUTENBERG (for himself, Mr. Lott, Mr. Inouye, Mr. 
        Stevens, Mr. Specter, Mr. Carper, Mrs. Hutchison, Mrs. Boxer, 
        Ms. Snowe, Mr. Dorgan, Mr. Burr, Mrs. Clinton, Mr. Durbin, Mr. 
        Biden, Mr. Menendez, Mr. Kerry, Mr. Kennedy, Mr. Schumer, Mr. 
        Pryor, and Mr. Cardin):
  S. 294. A bill to reauthorize Amtrak, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mr. LAUTENBERG. Mr. President, together with my good friend--the new 
Minority Whip--Senator Trent Lott I rise to introduce S. 294, the 
Passenger Rail Investment and Improvement Act of 2007.
  After several gloomy years, the future of America's passenger 
railroad is bright. This legislation will provide the necessary 
resources to bring Amtrak up to speed as a real alternative to taking a 
plane or driving a car.
  As we did in the past, we have joined forces to strengthen Amtrak and 
intercity passenger rail services for all Americans. But today, we 
introduce an updated version of last Congress's Amtrak reauthorization 
and passenger rail expansion bill. S. 1516, the Passenger Rail 
Investment and Improvement (PRIIA) Act of 2005.
  I co-authored this legislation with Senator Lott, then Chairman of 
the Commerce Committee's Surface Transportation and Merchant Marine 
Subcommittee, so that we could finally provide Amtrak with the funding 
and support it needs to thrive. The Commerce Committee favorably 
reported this bill, and Senator Lott and I added it to last Congress's 
Budget Reconciliation package, where it was adopted by an overwhelming 
vote of 93 to 6. Despite the bipartisan support, the House failed to 
act, so Amtrak was left without a necessary reauthorization.
  Now, in the new Congress, I am the chair of the Commerce Committee's 
Surface Transportation and Merchant Marine Subcommittee. Working with 
Senator Lott, and our bipartisan group of cosponsors, we are going to 
get our Amtrak bill through the Senate. This time, I believe the House 
will be ready, willing, and able to match our efforts, so that we can 
send a bill to the President for his signature.
  Every year, Amtrak is forced to fight for Federal funding--funding 
that has been insufficient at best. But as air and highway congestion 
continue to worsen, and concerns over our dependence on foreign oil 
remain, we must expand the capacity and improve the quality of our 
passenger rail system.
  One needs only to look to Europe and Asia to see the benefits that a 
modern passenger rail system can bring to a nation. Germany, which 
invested nine billion dollars in its rail system 2003 alone, has a 
modern, high-speed rail system that reduces pollution, eases congestion 
and improves mobility for all of its citizens. The benefits of their 
world class system are obvious to anyone who travels there. We need the 
same world class system in our country.
  The era of the free and easy interstate and quick, hassle-free 
flights has come and gone, and time for us to make real investments in 
our passenger rail system has come. If we do not invest in Amtrak now, 
I fear for our country's economy and quality of life over the coming 
years. We simply cannot afford to rely solely on air travel or 
automobiles if we are going to keep this country moving.
  The terror and tragedy we experienced on 9/11 taught us that we 
cannot rely solely on our aviation system. Last fall, Hurricane Katrina 
highlighted the role that passenger rail could play in evacuating 
residents who do not own automobiles. Hurricane Rita demonstrated the 
limits of our

[[Page 1240]]

highway system, as evacuees' vehicles crawled to a stop in bumper-to-
bumper traffic. Each one of these disasters reminded us that our Nation 
needs Amtrak and better train service to provide options for the 
traveling public--in good times and in bad.
  The bill we introduce today is the most comprehensive reauthorization 
of Amtrak ever attempted by this body. We have worked with Amtrak, 
freight railroads, the States and rail labor to draft strong and 
comprehensive legislation.
  Our bill authorizes nearly $12 billion in Federal support to expand 
partnerships for passenger rail with the States, improve the Northeast 
Corridor and provide real rail security for the Nation. Additionally, 
Senator Lott and I filed an amendment today to this bill which would 
add $7.8 billion in bonding authority for States and Amtrak to develop 
rail infrastructure. This bonding authority would augment the 
appropriated funds authorized by this bill and provide Amtrak and the 
States with a reliable, multi-year source of capital for major 
projects. We look forward to working with the Finance Committee to 
consider this proposal.
  Our bill also requires significant reforms of Amtrak: The system's 
supporters and detractors alike agree that it is time to reauthorize 
the Corporation so that Amtrak has congressional guidance on how to 
proceed with important reform initiatives needed to improve service, 
grow revenues, and cut costs.
  People in New Jersey rely on Amtrak and want to be sure that the 
system will be there for them in the future. With this plan, it will.
  Last year, 93 Senators voted for this plan. I ask that my colleagues, 
once again, join Senator Lott and myself in supporting this important 
bill that will bring America's passenger rail system into the 21st 
Century.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 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.

               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.
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 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

[[Page 1241]]

     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, D.C.;
       ``(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:

     ``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:

     ``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

[[Page 1242]]

       (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 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

[[Page 1243]]

      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, 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 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

[[Page 1244]]

     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 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.''.
       (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 Northeast 
     Corridor to a state of good repair by the

[[Page 1245]]

     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 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'' 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-

[[Page 1246]]

     subsidization of intercity rail passenger and commuter rail 
     passenger service, not later than January 30, 2008.
       (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 U.S.C. 481(b) and 491(b)) for each of fiscal 
     years 2007 through 2012.

     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''.

[[Page 1247]]



               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
       ``(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).
       ``(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

[[Page 1248]]

     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 
     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.
       ``(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 for capital projects to benefit 
     intercity passenger rail service or for the operating costs 
     of such service above the average of 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.--
       ``(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.

[[Page 1249]]

       ``(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; and
       ``(C) an assurance by the railroad that collective 
     bargaining agreements with the railroad's employees 
     (including terms regulating the contracting of work) will 
     remain in full force and effect according to their terms for 
     work performed by the railroad on the railroad transportation 
     corridor;
       ``(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 
     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);

[[Page 1250]]

       ``(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.
       ``(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''.


[[Page 1251]]

       (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 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.

[[Page 1252]]

       ``(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 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;

[[Page 1253]]

       (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 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.

[[Page 1254]]

       (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;
       (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.

[[Page 1255]]

       (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-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,''.

[[Page 1256]]



     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.

  Mr. LOTT. Mr. President, I just want to take a few moments to talk 
about Amtrak and inter-city passenger rail.
  In the last Congress, I worked with Senators Stevens, Inouye, and 
Lautenberg--and other members of the Commerce Committee--to develop S. 
1516, the Passenger Rail Investment and Improvement Act.
  Last year during the Senate's consideration of the reconciliation 
bill I offered an amendment to add the text of S. 1516. The amendment 
passed by a vote of 93 to 6. So I know there is widespread support for 
this legislation.
  Today we are introducing the same bipartisan legislation in hopes of 
gaining the same level of support as we did in the last Congress.
  The bill was developed with input from the Administration, the 
Department of Transportation's Inspector General, States, Amtrak Board 
members, and many others.
  The bill makes a number of important reforms to Amtrak, and has three 
major themes: Amtrak Reform and Accountability; cost cutting; and, 
creating funding options for States.
  By increasing executive branch oversight over Amtrak, this bill 
ensures that the taxpayers' money is used more effectively. Under its 
past President, David Gunn, Amtrak has made some improvements in its 
management. However, much remains to be done. Amtrak must be run more 
like a business. This 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. The bill reduces 
Amtrak's operating subsidy by 40 percent by 2011 by requiring Amtrak to 
use its funding more effectively,
  The bill promotes a greater role for the private sector by allowing 
private companies to bid on operating Amtrak routes.
  The bill also creates a new rail capital grant program that States 
can use to start new inter-city passenger rail service. This will be 
the first time that States will have a Federal program they can use for 
passenger rail, putting intercity passenger rail on a similar footing 
to highways, transit, and airports, all of which have Federal 
assistance programs for infrastructure. States won't have to rely only 
on Amtrak for intercity passenger rail service.
  I look forward to working with my colleagues on both sides of the 
aisle to get this bipartisan legislation signed into law this year
                                 ______
                                 
      By Ms. LANDRIEU (for herself, Mr. Cochran, Mr. Levin, Mr. 
        Voinovich, Mr. Durbin, and Mr. Schumer):
  S. 295. A bill to establish a servitude and emancipation archival 
research clearinghouse in the National Archives; to the Committee on 
Homeland Security and Governmental Affairs.
  Ms. LANDRIEU. Mr. President, I rise today to reintroduce the 
Servitude and Emancipation Archival Research Clearing House, SEARCH, 
Act of 2007, a bill that will establish a national database consisting 
of historic records of servitude and emancipation in the United States 
to assist African Americans in researching their genealogy. 
Additionally, Congressman Elijah Cummings is reintroducing a companion 
to this bill on the House side because we both believe in its 
importance.
  It is a very human instinct for people to want to understand who they 
are from the lenses of who are their ancestors and where are they from. 
This is the very reason I stand before you today to reintroduce this 
piece of very important legislation. Unfortunately, African Americans 
who attempt to trace their genealogy encounter huge hurdles in 
reclaiming the usual documentary history that allows most Americans to 
piece together their heritage. W.E.B. Dubois once said that, ``There is 
in this world no such force as the force of a person determined to 
rise, for the human soul cannot be permanently chained.'' The Servitude 
and Emancipation Archival Research ClearingHouse, SEARCH, Act of 2007 
gives African Americans the tools they need to rise above the unique 
challenges and hardships they face in order to trace their genealogy. 
The SEARCH Act establishes a national database within the National 
Archives and Records Administration, NARA, housing various documents 
that would assist those in search of a history that, because of 
slavery, is almost impossible to find in the most ordinary registers 
and census records.
  Traditionally, someone researching their genealogy would try looking 
up wills and land deeds; however, enslaved African Americans were 
prohibited from owning property. In fact, African Americans, must 
frequently rely on the records of slave owners--most of which are in 
private hands--in hope that they had kept records containing birth and 
death information. Even if records do exist, many African Americans in 
the

[[Page 1257]]

past did not have formal last names, thus compounding the difficulty of 
tracing their lives. The omission of surnames also precludes use of the 
most popular and major source of genealogical research, the United 
States Census. Furthermore, letters, diaries, and other first-person 
records used by most genealogical researchers are scarcely available 
for slaves, owing to the fact that they could not legally learn to read 
or write.
  Even after the Emancipation Proclamation was given in 1865, we would 
think that African Americans could begin using traditional genealogical 
records like voter registrations and school records. However, African 
Americans did not immediately begin to participate in many of the 
privileges of citizenship, including voting and attending school. 
Discrimination meant that African Americans were barred from sitting on 
juries or owning businesses. Segregation meant segregated 
neighborhoods, schools, churches, clubs, and fraternal organizations, 
and thus segregated societies maintained segregated records. For 
example, some telephone directories in South Carolina did not include 
African Americans in the regular alphabetical listing, but rather at 
the end of the book. An African American must maneuver these 
distinctive nuances in order to conduct proper genealogical research. 
In my own State of Louisiana, descendants of the 9th Cavalry Regiment 
and 25th Infantry Regiment, known as the Buffalo Soldiers, would have 
to know to look in the index of United States Colored Troops since 
there is no mention of them in the index of State Military Regiments.
  Abraham Lincoln said, ``a man who cares nothing about his past can 
care little about his future.'' By providing $5 million for the 
National Historical Publications and Records Commission to establish 
and maintain a national database, the SEARCH Act has the potential to 
significantly reduce the time and painstaking efforts of those African 
Americans who truly care about their American past to contribute to the 
American future. This bill also seeks to authorize $5 million for 
States, colleges, and universities to preserve, catalogue, and index 
records locally.
  In a democracy, records matter. The mission of NARA is to ensure that 
anyone can have access to the records that matter to them. The SEARCH 
Act of 2007 seeks to fulfill that mission by helping African Americans 
navigate genealogical research sources and negotiate the unique 
challenges that confront them in this process. No longer should any 
American have to wait to learn information, which in itself can offer 
such freedom.
  I don't believe there is a more appropriate time than now to pass 
this piece of legislation, on the day before we honor the legacy of a 
man who spent his life as an advocate of freedom, Dr. Martin Luther 
King, Jr. Dr. King once said, ``Our lives begin to end the day we 
become silent about things that matter.'' Mr. President, this piece of 
legislation does matter and I ask my colleagues to join me in passing 
the SEARCH Act of 2007.
                                 ______
                                 
      By Ms. MURKOWSKI (for herself and Mr. Stevens):
  S. 298. A bill to provide incentives for renewable energy production, 
to increase fuel economy standards for automobiles, and to provide tax 
incentives for renewable energy production; to the Committee on 
Finance.
  Ms. MURKOWSKI. Mr. President, I rise today to introduce a significant 
bill to improve energy efficiency in this Nation and reduce greenhouse 
gas emissions.
  The bill I am introducing will promote the development of additional 
forms of renewable energy and also pave the way for improved fuel 
consumption by vehicles. I rise to introduce the Renewable Energy, Fuel 
Reduction, and Economic Stabilization and Enhancement Act of 2007, or 
the REFRESH Act, for short.
  I consider this a balanced measure, a companion to a bill introduced 
recently by Alaska's Senior Senator Ted Stevens who proposed to raise 
the fuel efficiency of automobiles to 40 miles per gallon within a 
decade, a bill I am proud to be a cosponsor of. This bill will promote 
alternative energy by providing grants and tax credits to promote 
development of geothermal power, all forms of ocean energy and small 
hydro electric development.
  The bill also seeks to reduce American fossil fuel consumption by 
nearly 5 million barrels of oil a day by 2025 by not only supporting an 
increase in the Corporate Average Fuel Efficiency Standard, CAFE, for 
automobiles, as proposed by Senator Stevens, but by also requiring a 
study of whether to mandate that a CAFE standard to be imposed on 
commercial trucks. The bill also requires an improvement in the 
efficiency of replacement tires for all passenger cars, provides grants 
to States and local communities to encourage a reduction in traffic 
congestion by helping States to set up telecommuting and flexible-work 
programs to keep motorists off roadways during rush hours, and extends 
and removes a cap on tax credits to encourage the purchase of hybrid 
and advanced fuel efficient lean-burn vehicles. The bill also 
authorizes $100 million in additional research assistance for plug-in 
hybrid and battery storage technology development.
  The bill also includes a truth in advertising provision requiring 
that the CAFE standards for vehicles be based on the actual fuel 
economy that the vehicles will achieve under real-world driving 
conditions, where acceleration, the use of air conditioning and stop 
and go driving is considered rather than on a three-decades old testing 
formula.
  The bill will reduce carbon dioxide emissions from fossil fuel usage 
by about 530 million metric tons in the United States by 2025--a 7 
percent cut over what emissions otherwise are predicted to be that 
year. Coming from Alaska where there is no question but that warming 
temperatures have been in place in recent years, it only makes sense 
that we take common sense steps now to improve fuel efficiency, to 
promote the development of a wider range of alternative energy 
technologies and to encourage Americans to buy more fuel efficient 
vehicles, as long as their ability to drive safe and affordable 
vehicles of their own choosing is protected.
  This bill is a careful balance of steps we can take to reduce fuel 
usage and thus greenhouse gas emissions, but also of provisions that 
are economic for Americans to undertake, and will pay for themselves in 
reduced fuel costs, sometimes in very short order. It will be good 
insurance for the environment, but also good for the pocketbooks of 
Americans.
  Americans understand that we are in a current warming trend. Just 
this week, our government reported that 2006 was the warmest year 
worldwide in over a century. There are dozens of examples of the 
effects on the environment that the warming climate of the past three 
decades has caused. While I believe the ultimate cause of the climate 
change we are seeing is not yet certain, it is our responsibility to 
take affordable steps now to reduce fuel consumption, increase the use 
of alternative, non-fossil-fuel technologies, and to reduce carbon 
dioxide and other greenhouse gas emissions.
  This bill, paired with previous legislation by my colleague Senator 
Ted Stevens that specifically raises the CAFE standard by 2017, S. 183, 
will require automobile makers, if it is technologically feasible, to 
improve fuel efficiency. I am proud to be a supporter of that measure. 
The two bills will have a host of policy and economic advantages. They 
will make us less dependent on imported oil, improving our national 
security and reducing the money we spend overseas to buy imported crude 
oil. And they will produce more jobs in America through the development 
of new alternative-fuel industries.
  The bill I introduce today, for example, will require all tire 
manufacturers to make and sell only low, rolling, resistance tires for 
replacement tire purposes within five years--the same tires found on 
new cars today. The tires, while they will add on average $20 to the 
cost of a set of two replacement tires, will improve fuel efficiency by 
1.5

[[Page 1258]]

to 4.5 percent. Thus if the price of gasoline is only $2 a gallon, 
drivers will save from $87 to $260 a year in fuel costs per year, the 
change saving the typical driver money within the first year, according 
to estimates by the National Commission on Energy Policy that 
recommended the change in a 2005 report.
  The bill also will require the National Highway Traffic Safety 
Administration (NHTSA) to study the savings that would result and the 
costs of imposing a CAFE standard on commercial trucks, a key 
requirement before Congress can actually impose such a standard. 
Commercial trucks consume between 1.5 and 2 million barrels of oil a 
day in fuel. According to estimates by the Department of Energy's 21st 
Century Truck Program and by Argonne National Laboratory, fuel economy 
for tractor-trailers should be able to improve by 30 to 60 percent by 
2015 through use of a CAFE standard. While such improvements might 
increase the cost of a tractor-trailer by $7,000 at time of purchase, 
it would save some $11,000 in fuel costs over the life of the vehicle, 
achieving payback for the typical truck owner in less than three years. 
Imposing such a CAFE on trucks was proposed by the Energy Security 
Leadership Council in a report just last month.
  The $50 million in grants to reduce traffic congestion could pay for 
themselves nearly immediately, since the National Commission on Energy 
Policy estimated that American motorists consume between 65,000 and 
260,000 barrels of oil a day in wasted fuel because of urban traffic 
congestion, costing the Nation up to $13 million a day at current fuel 
prices.
  And the tax credit provisions, making all forms of ocean energy: 
wave, current, tidal and thermal, and small hydro electric power 
qualified to receive the Federal Production Tax Credit that currently 
reduces the cost of wind, solar and biomass energy by 1.9 cents per 
kilowatt hour generated, would help to increase renewable energy 
production nationwide. Geothermal energy is already covered by the PTC, 
as are wind, solar and biomass projects.
  Congress two years ago in the Energy Policy Act of 2005, which I 
helped formulate, provided both grant and the tax assistance to 
encourage the development of wind, solar and biomass energy. But when 
you consider that large portions of the country, including 70 percent 
of Alaska, may contain geothermal resources, that there are thousands 
of lakes and small rivers and creeks that can power small-scale hydro 
electric development without requiring dams or affecting fisheries or 
the environment in the least, and that thousands of miles of U.S. 
coastlines and river systems can generate electricity from emerging 
ocean energy systems, it only makes sense to expand the scope of 
Federal assistance to encourage wider development and use of these 
other renewable technologies.
  The Electric Power Research Institute has estimated that wave energy 
off U.S. coasts alone could conservatively generate 252 million 
megawatt hours of electricity, 6.5 percent of all energy now produced 
in America. Alaska has nearly 80 coastal and river communities that 
could benefit greatly by development of ocean energy systems. To 
facilitate ocean and geothermal development, the bill authorizes $100 
million in Federal research and development grant assistance to both 
types of development.
  This bill is not a cure all for all of our energy woes. I recently 
co-sponsored legislation by Senators Jim Bunning and Barack Obama that 
will provide additional incentives to develop fuel from coal and that 
will encourage the sequestration of carbon from coal processed in fuel-
to-liquid plants. I will support additional assistance to promote wind, 
solar and biomass alternative energy development. I have supported and 
will continue to support development of the next generation of nuclear 
power that can produce energy without any greenhouse gas emissions. And 
I will continue to support research and development of biofuels, such 
as ethanol, especially celluosic ethanol, and of development of 
hydrogen-fueled vehicles and fuel distribution systems for the new 
fuels.
  I also will support production of more domestic energy from 
conventional sources, whether it be more oil and natural gas from the 
ground onshore and from under some of our seas offshore where it can be 
done in an environmentally friendly way, or more novel forms of fossil 
fuels, be they from oil shales, oil sands, coal or from gas hydrate 
deposits. In my view we need to do everything we can to find economic 
forms of the energy we will need during the remainder of the 21st 
Century.
  This bill only represents one piece of a balanced plan to improve 
this Nation's energy outlook. But it is an important piece. This bill 
has the ability to restore and refresh our environment by reducing 
greenhouse gas emissions. It will encourage development of more 
renewable energy. We can't afford not to find the funds to pay for its 
provisions.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 298

       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 ``Renewable Energy, Fuel 
     Reduction, and Economic Stabilization and EnHancement Act of 
     2007'' or the ``REFRESH Act''.

                  TITLE I--RENEWABLE ENERGY INCENTIVES

     SEC. 101. GEOTHERMAL POWER.

       (a) In General.--The Secretary of Energy, acting through 
     the Office of Energy Efficiency and Renewable Energy 
     (referred to in this title as the ``Secretary''), shall make 
     grants to eligible entities (as determined by the Secretary) 
     to promote geothermal power development, including high- and 
     low-temperature geothermal power development.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000.

     SEC. 102. OCEAN ENERGY.

       (a) In General.--The Secretary shall make grants to 
     eligible entities (as determined by the Secretary) to develop 
     all forms of ocean energy (including wave, current, tidal, 
     and thermal energy).
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000.

     SEC. 103. PLUG-IN HYBRID ELECTRIC-COMBUSTION ENGINE VEHICLES.

       (a) In General.--The Secretary shall make grants to 
     eligible entities (as determined by the Secretary) to assist 
     in the development of new technology (including storage 
     batteries or other forms of technology) to assist automobile 
     manufactures in the production of plug-in hybrid electric-
     combustion engine vehicles.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000.

                  TITLE II--FUEL EFFICIENCY STANDARDS

     SEC. 201. TRUTH IN TESTING OF CAFE STANDARDS.

       (a) Testing and Calculation Procedures.--
       (1) In general.--Section 32904(c) of title 49, United 
     States Code, is amended by striking ``However, except under 
     section 32908 of this title, the Administrator shall use the 
     same procedures for passenger automobiles the Administrator 
     used for model year 1975 (weighted 55 percent urban cycle and 
     45 percent highway cycle),'' and insert ``In measuring fuel 
     economy under this subsection, the Administrator shall use 
     the procedures described in the final rule relating to fuel 
     economy labeling published in the Federal Register on 
     December 27, 2006 (71 Fed. Reg. 77,872; to be codified at 40 
     C.F.R. parts 86 and 600)''.
       (2) Effective date.--Paragraph (1) shall take effect on the 
     date that is 5 years after the date of the enactment of this 
     Act and shall apply to passenger automobiles manufactured 
     after such date.
       (b) Study and Report.--
       (1) Study.--The Administrator of the National Highway 
     Traffic Safety Administration shall conduct a study of the 
     anticipated economic impacts and fuel saving benefits that 
     would result from a requirement that all vehicles 
     manufactured for sale in the United States with a gross 
     vehicle weight of not less than 10,000 pounds meet specific 
     average fuel economy standards.
       (2) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Administrator shall submit a 
     report to Congress that includes--
       (A) the results of the study conducted under paragraph (1); 
     and
       (B) a recommendation on whether the vehicles described in 
     paragraph (1) should be subject to average fuel economy 
     standards.

[[Page 1259]]



     SEC. 202. TIRE RESISTANCE STANDARDS.

       Section 30123 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(d) Low Rolling Resistance Tires.--Not later than 5 years 
     after the date of the enactment of this subsection, all 
     passenger automobile tires sold in the United States shall 
     meet the low rolling resistance standards prescribed by the 
     Administrator of the National Highway Traffic Safety 
     Administration.''.

     SEC. 203. TRAFFIC REDUCTION GRANTS.

       (a) In General.--The Secretary of Transportation may award 
     grants to States to develop telecommuting and flexible work 
     scheduling incentives that will reduce traffic congestion in 
     urban areas.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated $50,000,000 for fiscal year 2008 to carry 
     out the grant program established under this section. Any 
     sums appropriated pursuant to this subsection shall remain 
     available until expended.

                         TITLE III--TAX CREDITS

     SEC. 301. EXPANSION OF CREDIT FOR PRODUCTION OF ENERGY FROM 
                   CERTAIN RENEWABLE RESOURCES.

       (a) Expansion of Resources to Wave, Current, Tidal, and 
     Ocean Thermal Energy.--
       (1) In general.--Section 45(c)(1) of the Internal Revenue 
     Code of 1986 (defining qualified energy resources) is amended 
     by striking ``and'' at the end of subparagraph (G), by 
     striking the period at the end of subparagraph (H) and 
     inserting ``, and'', and by adding at the end the following 
     new subparagraph:
       ``(I) wave, current, tidal, and ocean thermal energy.''
       (2) Definition of resources.--Section 45(c) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new paragraph:
       ``(10) Wave, current, tidal, and ocean thermal energy.--The 
     term `wave, current, tidal, and ocean thermal energy' means 
     electricity produced from any of the following:
       ``(A) Free flowing ocean water derived from tidal currents, 
     ocean currents, waves, or estuary currents.
       ``(B) Ocean thermal energy.
       ``(C) Free flowing water in rivers, lakes, man made 
     channels, or streams.''
       (3) Facilities.--Section 45(d) of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(11) Wave, current, tidal, and ocean thermal facility.--
     In the case of a facility using resources described in clause 
     (i), (ii), or (iii) of subsection (c)(10)(A) to produce 
     electricity, the term `qualified facility' means any facility 
     owned by the taxpayer which is originally placed in service 
     after the date of the enactment of this paragraph and before 
     January 1, 2009, but such term shall not include a facility 
     which includes impoundment structures or a small irrigation 
     power facility.''
       (b) Expansion of Small Irrigation Power.--Paragraph (5) of 
     section 45(c) of the Internal Revenue Code of 1986 is amended 
     to read as follows:
       ``(5) Small irrigation power.--The term `small irrigation 
     power' means power--
       ``(A) generated without any dam or impoundment of water 
     through--
       ``(i) through an irrigation system canal or ditch, or
       ``(ii) utilizing lake taps, perched alpine lakes, or run-
     of-river with diversion, and
       ``(B) the nameplate capacity rating of which is less than 
     15 megawatts.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to electricity produced in taxable years ending 
     after the date of the enactment of this Act.

     SEC. 302. EXTENSION AND MODIFICATION OF NEW QUALIFIED HYBRID 
                   MOTOR VEHICLE CREDIT FOR PLUG-IN HYBRIDS.

       (a) Extension.--
       (1) New qualified hybrid passenger automobiles and light 
     trucks.--Paragraph (2) of section 30B(j) of the Internal 
     Revenue Code of 1986 is amended by inserting ``(December 31, 
     2012, in the case of a new qualified hybrid motor vehicle 
     which is recharged by means of an off board device)'' after 
     ``December 31, 2010''.
       (2) Other qualified hybrid motor vehicles.--Paragraph (3) 
     of section 30B(j) of the Internal Revenue Code of 1986 is 
     amended by inserting ``(December 31, 2012, in the case of a 
     new qualified hybrid motor vehicle which is recharged by 
     means of an off board device)'' after ``December 31, 2009''.
       (b) Elimination of Limitation on Number of New Qualified 
     Hybrid and Advanced Lean Burn Technology Vehicles Eligible 
     for Full Alternative Motor Vehicle Tax Credit.--
       (1) In general.--Section 30B of the Internal Revenue Code 
     of 1986 is amended--
       (A) by striking subsection (f); and
       (B) by redesignating subsections (g) through (j), as 
     amended by subsection (a), as subsections (f) through (i), 
     respectively.
       (2) Conforming amendments.--
       (A) Paragraphs (4) and (6) of section 30B(g) of such Code, 
     as redesignated by paragraph (1)(B), are each amended by 
     striking ``(determined without regard to subsection (g))'' 
     and inserting ``(determined without regard to subsection 
     (f))''.
       (B) Section 38(b)(25) of such Code is amended by striking 
     ``section 30B(g)(1)'' and inserting ``section 30B(f)(1)''.
       (C) Section 55(c)(2) of such Code is amended by striking 
     ``section 30B(g)(2)'' and inserting ``section 30B(f)(2)''.
       (D) Section 1016(a)(36) of such Code is amended by striking 
     ``section 30B(h)(4)'' and inserting ``section 30B(g)(4)''.
       (E) Section 6501(m) of such Code is amended by striking 
     ``section 30B(h)(9)'' and inserting ``section 30B(g)(9)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2005, in taxable years ending after such date.
                                 ______
                                 
      By Mr. COLEMAN:
  S. 299. A bill to amend the Internal Revenue Code of 1986 to extend 
increased expensing for small businesses; to the Committee on Finance.
  Mr. COLEMAN. Mr. President, I ask unanimous consent that the text of 
my legislation to extend increased expensing for small businesses be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 299

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

     SECTION 1. EXTENSION OF INCREASED EXPENSING FOR SMALL 
                   BUSINESSES.

       (a) Extension.--Section 179 of the Internal Revenue Code of 
     1986 (relating to election to expense certain depreciable 
     business assets) is amended by striking ``2010'' each place 
     it appears and inserting ``2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.
                                 ______
                                 
      By Mr. KYL (for himself, Mr. Ensign, Mr. Reid, and Mrs. 
        Feinstein):
  S. 300. A bill to authorize appropriations for the Bureau of 
Reclamation to carry out the Lower Colorado River Multi-Species 
Conservation Program in the States of Arizona, California, and Nevada, 
and for other purposes; to the Committee on Energy and Natural 
Resources.
  Mr. KYL. Mr. President, today I am pleased to join with Senators 
Ensign, Feinstein and Reid to introduce the Lower Colorado River Multi-
Species Conservation Program Act. This bipartisan legislation is 
designed to protect and maintain wildlife habitat on the lower Colorado 
River and to provide assurances to the affected water and power 
agencies of Arizona, California, and Nevada that their river operations 
may continue upon compliance with the underlying program. This bill is 
nearly identical to legislation I introduced late last year with 
Senators Ensign, Feinstein, and Reid.
  The Lower Colorado River Multi-Species Conservation Program, 
otherwise known as the MSCP, is a comprehensive, cooperative effort 
among 50 Federal and non-Federal entities in Arizona, California, and 
Nevada whose purposes are to 1. protect the lower Colorado River 
environment while ensuring the certainty of existing river water and 
power operations; 2. protect threatened endangered wildlife under the 
Endangered Species Act; and 3. prevent the listing of additional 
species on the lower Colorado River.
  To accomplish these goals, the MSCP will create more than 8,100 acres 
of riparian, marsh, and backwater habitat and implement additional 
measures to protect 26 endangered, threatened and sensitive species. 
The program covers approximately 400 miles, including the full-pool 
elevations of Lake Mead to the United States-Mexico Southerly 
International Boundary.
  The program costs will be spread over 50 years, and split 50-50 
between the Federal Government and the non-Federal entities covered by 
MSCP. Arizona and Nevada will each bear 25 percent of the non-Federal 
costs and California will bear 50 percent of the non-federal costs.
  Although implementation of the program began in April 2005 under the 
U.S. Department of the Interior's existing authority, legislation is 
needed to protect the substantial financial commitments that the non-
Federal parties are making to species protection . To that end, the 
bill 1. expressly authorizes appropriations to cover the Federal share 
of the program costs; 2. directs the Secretary of the Interior to 
manage and implement the MSCP in accordance

[[Page 1260]]

with the underlying program documents; and 3. provides a waiver of 
sovereign immunity to allow the non-Federal parties to enforce, if 
necessary, the underlying program documents. The waiver, however, does 
not allow an action to be brought against the United States for money 
damages.
  Late in 2006, the House Committee on Resources, Subcommittee on Water 
and Power held a comprehensive field hearing in Arizona on the MSCP 
Act. The hearing highlighted the significance of the program to 
Colorado River users in Arizona, California, and Nevada and 
demonstrated the strong support for the legislation. Unfortunately, 
Congress adjourned before it could take action on the bill. We hope for 
its swift passage in the 110th Congress.
                                 ______
                                 
      By Mrs. CLINTON (for herself, Mr. Durbin, Ms. Mikulski, and Mr. 
        Lieberman):
  S. 301. A bill to provide higher education assistance for 
nontraditional students, and for other purposes; to the Committee on 
Finance.
  Mrs. CLINTON. Mr. President, I rise today to introduce legislation to 
meet the needs of non-traditional college students. If enacted, The 
Non-Traditional Student Success Act would expand services that promote 
retention and graduation for non-traditional students.
  The number of non-traditional students has been increasing 
dramatically on college campuses all across America. These students 
face unique challenges to completing their degree that include 
affording their education, balancing work, school, and family 
responsibilities, overcoming inadequate academic preparation, and 
navigating the college environment. Unfortunately, many of our current 
higher education policies make it harder, not easier for these students 
to complete their degree.
  In fact, among students seeking a bachelor's degree, nearly half of 
non-traditional students leave college within the first 3 years before 
completing their studies, compared with 12 percent of traditional 
students. Similarly, among those seeking an associate's degree, 62 
percent of non-traditional students left without any degree, compared 
with 19 percent of traditional students. This trend has a 
disproportionate impact on minority communities especially when 
considering over 80 percent of both black and Hispanic undergraduate 
students are non-traditional in some way. This trend must end if we are 
to ensure that all students are awarded an equal opportunity to compete 
for jobs in today's marketplace.
  We must take a step forward with a positive agenda in the 110th 
Congress to ensure that all students are able to successfully acquire a 
college education as doing so is essential to our economic prosperity. 
That is why I have introduced the Non-Traditional Student Success Act.
  The Non-Traditional Student Success Act will tear down the financial 
barriers many non-traditional students face when financing their 
college education. By allowing students access to their Federal Pell 
grants year-round while increasing the maximum Pell grant award to 
$12,600 over the next 5 years, this bill will not only help students 
pay for college but also allow them the opportunity to complete 
programs more quickly. This legislation also creates a pilot program to 
provide more financial aid--grants and loans--to students enrolled in a 
degree program less than half-time.
  This legislation will also expand services that promote retention and 
graduation for non-traditional students. The Non-Traditional Student 
Success Act will increase funding for Student Support Service programs, 
GEAR-UP, mentoring, tutoring and other services to help non-traditional 
students succeed. While spending for remediation among U.S. colleges 
and universities approaches the $1 billion mark, this bill create 
incentives for institutions to customize their courses to help students 
more successfully complete remedial work and graduate into academic 
programs.
  I am happy to report that two of the provisions from the previously 
introduced Nontraditional Student Success Act were enacted into law 
through the Deficit Reduction Act of 2005. These provisions, expanding 
the use of Pell grants for less than half-time students and a provision 
to reduce the work penalty for independent students, will provide more 
options to non-traditional students in financing their college 
education.
  The fact is, three out of four undergraduate students--75 percent--
are non-traditional in some way. My bill will increase access to a 
higher education and improve the graduate rates for the millions of 
non-traditional students.
  The start of a new Congress brings an opportunity to provide critical 
changes in higher education and offer assistance to non-traditional 
students. This proposal is endorsed by the Commission on Independent 
Colleges and Universities, The Center for Law and Social Policy, Career 
Colleges Association, and the American Association of Community 
Colleges.
  I am hopeful that my Senate colleagues from both sides of the aisle 
will join in support of this bill and move this legislation to the 
floor without delay.
                                 ______
                                 
      By Mr. VOINOVICH:
  S. 304. A bill to establish a commission to develop legislation 
designed to reform tax policy and entitlement benefit programs and to 
ensure a sound fiscal future for the United States, and for other 
purposes; to the Committee on the Budget.
  Mr. VOINOVICH. Mr. President, a fiscal crisis looms on the horizon. 
As the Nation's demographic tide begins to shift, a fiscal tidal wave 
threatens to overwhelm our economy if we do not act now. Our 
irresponsible fiscal policies have created a grave situation that more 
and more people--Republicans and Democrats--are coming to recognize. We 
can no longer sit back and hope things will work themselves out. A 
potential national disaster threatens to devastate our way of life, and 
we have a moral responsibility to do something about it.
  In the simplest of terms, the Federal Government continues to spend 
more than it brings in. But, running the credit card for today's needs 
and leaving the bill for future generations should not be the policy of 
this Congress.
  An historical perspective helps to highlight the gravity of our 
current situation.
  The Fiscal Year 2006 budget deficit was $248 billion--the seventh 
largest deficit in our Nation's history. However, if we don't include 
the money we're borrowing from the Social Security Trust Fund, the 
Fiscal Year 2006 budget deficit was $434 billion.
  I arrived in Washington in 1999, and in the 8 short years since, our 
national debt has increased by over 50 percent from $5.6 trillion to a 
staggering $8.6 trillion. It represents 67 percent of the GDP--the 
worst number in 50 years. This means that each man, woman, and child in 
the United States owes $29,000 of the Federal Government's debt.
  And yet, these numbers pale in comparison with the budget problems 
looming in our future as the Baby Boom generation begins to retire less 
than a year from now, on January 1, 2008. Our long-term fiscal 
imbalance is $50 trillion. That's hard to even grasp, but it translates 
into $440,000 of future government debt for every American household--
up from a mere $175,000 per household just 6 years ago.
  If we do not sharply curb entitlement spending, the continual growth 
of these programs--especially in healthcare--will crowd out all our 
other spending obligations and collide with historic, long-term level 
of taxes. To put it in perspective, balancing the budget without 
reforming entitlement programs will require raising taxes to European 
levels. And, that would cripple our ingenuity and economy.
  So, what must be done?
  Congress must view our tax code, entitlement programs, and budget 
process as the three components--or pillars--of the nation's fiscal 
foundation, and not as separate entities. Each is intricately linked to 
the other two pillars. We must reform all three areas to raise the 
necessary revenue to ensure

[[Page 1261]]

effective and responsible behavior by Congress and federal agencies, to 
keep our obligations to future generations, and to keep our nation 
strong.
  First, we need fundamental tax reform to help make the tax code 
simple, fair, transparent, and economically efficient. According to the 
President's tax panel and the Mack-Breaux report, only 13 percent of 
taxpayers file without the help of either a tax preparer or computer 
software program--a function of the complexity of the system. Since 
enacting the Tax Reform Act of 1986--legislation intended to simplify 
the filing process for taxpayers--15,000 additions have been made to 
the Internal Revenue Code.
  We cannot consider tax reform, however, without reforming our growing 
entitlement programs. Our already massive debt will spike yet higher as 
entitlements such as Social Security, Medicare, and Medicaid witness a 
surge of beneficiaries in the form of retiring Baby Boomers. This 
mounting debt will soon become a burden our children cannot bear, 
dragging down our standard of living and our standing in the world.
  Finally, we must restore the third pillar of our fiscal foundation--
the budget process. Together we can streamline the system to help lock 
in long term tax and entitlement reforms. In the past, every major 
deficit reduction package has included a series of budget process 
reforms and enforcement mechanisms designed to prevent Congress from 
undoing tough choices in future years. By transforming the budget 
process, we can fight back against the all-too-common practice of 
gaming the system.
  While some of our colleagues claim we need tax reform, others claim 
we need entitlement reform. The bill I am introducing today, however, 
is the only bill that does it all--because you can't reform one without 
the other, or it's doomed to fail.
  The Securing America's Future Economy Commission Act establishes a 
national, bipartisan commission to examine these broken systems and to 
present solutions to place the nation on a fiscally sustainable course 
and ensure the solvency of entitlement programs for future generations.
  The Commission will be comprised of 16 voting members--an equal 
number of members from each party, with some seats reserved for sitting 
members of Congress. The Treasury Secretary and the OMB Director will 
be members, and the other 14 will be appointed by congressional 
leaders.
  The Commission will hold town hall meetings throughout the country to 
determine the scope of the problem and consider possible policy 
options. The Commission will present a report--and, if a three-fourths 
majority of the Commission agrees, they will present actual legislation 
to Congress.
  The administration and Congress will each have 90 days to review the 
proposal and develop an alternative package of reforms if they believe 
it's necessary. The most important point is that this legislation uses 
a fast-track procedure to guarantee a vote in Congress on the 
Commission's legislation and the congressional and presidential 
alternatives.
  Outside groups across the political spectrum have shown support for 
our efforts, as have business executives--who view our efforts as an 
economic necessity--and religious leaders--who view our efforts as a 
moral necessity. And, when you look at the numbers, it is clear why. We 
have a moral obligation to improve the fiscal health of our Nation. 
Otherwise, our children and grandchildren are going to celebrate 
America's past and the good old days, rather than the future and the 
good new days.
  Restoring our Nation's fiscal health will require hard, bipartisan 
work and tough decisions. That work, however, must begin immediately. 
We cannot afford to put it off any longer.
                                 ______
                                 
      By Mr. GRASSLEY (for himself, Mr. Dorgan, Mr. Enzi, and Mr. 
        Harkin):
  S. 305. A bill to amend the Packers and Stockyards Act, 1921, to make 
it unlawful for a packer to own, feed, or control livestock intended 
for slaughter; to the Committee on Agriculture, Nutrition, and 
Forestry.
  Mr. GRASSLEY. Mr. President, Congress will be working on a rewrite of 
the current farm bill during the 110th Congress and I will be looking 
for ways to improve the economic condition of America's farmers. 
However, one of the many shortcomings of the 2002 farm bill is that it 
failed to protect family farmers and independent livestock producers 
from vertical integration in the livestock industry. This is one reason 
why I voted against the final conference report.
  Over the years, family farmers from across Iowa have contacted me to 
express their fears about the threat they feel from concentration in 
the livestock industry. They fear that if the trend toward increased 
concentration continues, they may be unable to compete effectively and 
will not be able to get a fair price for their livestock in the 
marketplace.
  The bill I am introducing would prevent meat packers from assuming 
complete control of the meat supply by preventing packers from owning 
livestock.
  This bill would make it unlawful for a packer to own or feed 
livestock intended for slaughter. Single pack entities and packs too 
small to participate in the Mandatory Price Reporting program would be 
excluded from the limitation. In addition, farmer cooperatives in which 
the members own, feed, or control the livestock themselves would be 
exempt under this new bill.
  This is a similar version I successfully offered on the floor during 
the debate on the 2002 farm bill.
  It's important for our colleagues to remember that family farmers 
ultimately derive their income from the agricultural marketplace, not 
the farm bill. Family farmers have unfortunately been in a position of 
weakness in selling their product to large processors and in buying 
their inputs from large suppliers.
  Today, the position of the family farmer has become weaker as 
consolidation in agribusiness has reached all time highs. Farmers have 
fewer buyers and suppliers than ever before. The result is an 
increasing loss of family farms and the smallest farm share of the 
consumer dollar in history.
  One hundred years ago, this Nation reacted appropriately to citizen 
concerns about large, powerful companies by establishing rules 
constraining such businesses when they achieved a level of market power 
that harmed, or risked harming, the public interest, trade and 
commerce. The United States Congress enacted the first competition laws 
in the world to make commerce more free and fair. These competition 
laws include the Sherman Act, Clayton Act, Federal Trade Commission Act 
and Packers & Stockyards Act.
  Since that time, many countries in the world have followed this U.S. 
example to constrain undue market power in their domestic economies.
  Unfortunately, competition policy has been severely weakened in this 
country, especially in agriculture, due to Federal case law, 
underfunded enforcement, and unfounded reliance on efficiency claims. 
The result has been a significant degradation of the domestic 
agricultural market infrastructure. The current situation reflects a 
tremendous mis-allocation of resources across the food chain. Congress 
must strengthen competition policy within the farm sector to reclaim a 
properly operating marketplace.
  While this legislation does not accomplish all that we need to do in 
this area, it's an important first step toward remedying the biggest 
problem facing farmers today, the problem of concentration.
  Thank you Mr. President; I ask unanimous consent the text of the bill 
be printed in the Record.
  There being no objection, the text was ordered to be printed in the 
Record, as follows:

                                 S. 305

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

     SECTION 1. PROHIBITION ON PACKERS OWNING, FEEDING, OR 
                   CONTROLLING LIVESTOCK.

       (a) In General.--Section 202 of the Packers and Stockyards 
     Act, 1921 (7 U.S.C. 192), is amended--

[[Page 1262]]

       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following:
       ``(f) Own or feed livestock directly, through a subsidiary, 
     or through an arrangement that gives the packer operational, 
     managerial, or supervisory control over the livestock, or 
     over the farming operation that produces the livestock, to 
     such an extent that the producer is no longer materially 
     participating in the management of the operation with respect 
     to the production of the livestock, except that this 
     subsection shall not apply to--
       ``(1) an arrangement entered into within 7 days (excluding 
     any Saturday or Sunday) before slaughter of the livestock by 
     a packer, a person acting through the packer, or a person 
     that directly or indirectly controls, or is controlled by or 
     under common control with, the packer;
       ``(2) a cooperative or entity owned by a cooperative, if a 
     majority of the ownership interest in the cooperative is held 
     by active cooperative members that--
       ``(A) own, feed, or control livestock; and
       ``(B) provide the livestock to the cooperative for 
     slaughter;
       ``(3) a packer that is not required to report to the 
     Secretary on each reporting day (as defined in section 212 of 
     the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a)) 
     information on the price and quantity of livestock purchased 
     by the packer; or
       ``(4) a packer that owns 1 livestock processing plant; 
     or''.
       (b) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by subsection (a) take effect on the date of enactment 
     of this Act.
       (2) Transition rules.--In the case of a packer that on the 
     date of enactment of this Act owns, feeds, or controls 
     livestock intended for slaughter in violation of section 
     202(f) of the Packers and Stockyards Act, 1921 (as amended by 
     subsection (a)), the amendments made by subsection (a) apply 
     to the packer--
       (A) in the case of a packer of swine, beginning on the date 
     that is 18 months after the date of enactment of this Act; 
     and
       (B) in the case of a packer of any other type of livestock, 
     beginning as soon as practicable, but not later than 180 
     days, after the date of enactment of this Act, as determined 
     by the Secretary of Agriculture.
                                 ______
                                 
      By Mr. DODD:
  S. 308. A bill to prohibit an escalation in United States military 
forces in Iraq without prior authorization by Congress; to the 
Committee on Foreign Relations.
  Mr. DODD. Mr. President, last week President Bush announced a plan to 
escalate U.S. military involvement in Iraq, the continuation of his 
failed policy in Iraq. I am strongly opposed to this course.
  That is why I have introduced legislation today that will prohibit 
the number of troops in Iraq from exceeding the current force levels 
without an explicit authorization from Congress. As of January 16, 
2007, United States Central Command reports 130,500 American service-
members operating within the borders of Iraq.
  It is my hope that Congress can begin debate on my proposal and 
others that may be forthcoming before the week is out. It is imperative 
that we in Congress act swiftly on this crucial issue.
  Let's be very clear, my bill does not prohibit additional funding for 
American troops who are currently in harms way. I will continue to do 
everything that I can to support our troops so long as they are 
stationed in Iraq. My bill would prohibit President Bush from 
increasing the number of U.S. service-members in Iraq without prior 
authorization from Congress.
  The President's decision to escalate U.S. military involvement is a 
true disservice to American troops who have shown nothing but 
professionalism and courage, and who should not be asked to risk their 
lives to become cannon fodder in a civil war rife with ethnic 
cleansing.
  Moreover, I do not believe that the authorization provided by 
Congress in 2002 gives the President unlimited authority to send 
additional troops to Iraq for a mission which is completely different 
from the one the President himself articulated in March 2002, shortly 
after committing U.S. forces to Iraq. On March 22, 2002, the President 
of the United States said that our goal in invading Iraq was ``to 
disarm Iraq of weapons of mass destruction, to end Saddam Hussein's 
support for terrorism, and to free the Iraqi people.''
  We all now know that there were no weapons of mass destruction in 
Iraq to be disarmed. So we can no longer justify an additional troop 
presence on the grounds of WMDs. Saddam Hussein is no longer in a 
position to support terrorism, or anything else for that matter. As for 
freeing the Iraqi people--Iraq's dictator is dead and the Iraqi people 
have duly elected their own leaders to govern them.
  Nothing in the 2002 resolution, or in the President's articulation of 
his goals for Iraq prior to that resolution suggested that the United 
States would, could, or should be engaged in trying to referee a civil 
war.
  So Congress is confronted with two choices--do nothing; or respond 
decisively in opposition to staying the course--a course that is sure 
to produce an even more violent, less stable political and security 
climate in Iraq.
  To me, that choice is clear. Leadership demands that those of us who 
think the President is on the wrong track, not simply stand up and say 
so, but act to stop this escalation from going forward.
  I know that enacting legislation to stop the President from the 
course he has chosen will not be easy. But that doesn't mean that the 
Congress shouldn't debate it and vote on it--that is exactly what the 
American people sent us to Congress to do.
  We have arrived at a moment of choice. The President and this 
Administration have chosen escalation--more bloodshed, more chaos, and 
more violence. If the President wants to escalate our military 
commitment to Iraq, and if the President wants to send more troops into 
the center of a civil war, then the President must make that case to 
the United States Congress and let the full Congress vote on the merits 
of such a plan.
  The President has stated that he believes that as Commander-in-Chief 
he has the authority to order troops to Iraq in the face of 
Congressional opposition. We are a Nation of laws. The President is not 
above those laws. If Congress passes legislation to limit the 
deployment of troops to Iraq, the President will no longer have the 
luxury of ignoring the views of the Congress, a co-equal branch of 
government. And the time for a blank check is over.
                                 ______
                                 
      By Mr. SANDERS (for himself, Mrs. Boxer, Mr. Kennedy, Mr. 
        Menendez, Mr. Lautenberg, Mr. Leahy, Mr. Reed, Mr. Akaka, Mr. 
        Inouye, Mr. Feingold, and Mr. Whitehouse):
  S. 309. A bill to amend the Clean Air Act to reduce emissions of 
carbon dioxide, and for other purposes; to the Committee on Environment 
and Public Works.
  Mr. SANDERS. Mr. President, today I am introducing the Global Warming 
Pollution Reduction Act of 2007. There are many critically important 
issues that we face, including education, health care, the growing and 
inexcusable economic inequality in this country, and the situation in 
Iraq. Among these issues has to be the threat faced by the earth itself 
due to global warming and that is why this legislation is the first 
bill that I am introducing as a U.S. Senator.
  The Global Warming Pollution Reduction Act, the full text of which I 
ask be included in the Record following my remarks, was initially 
introduced last year by the Senator whose seat I currently hold, 
Senator Jim Jeffords. Jim's leadership in offering a forwardthinking 
global warming bill is known by all in this chamber and I am honored to 
continue his efforts by introducing this tremendously-important 
legislation today.
  This bill, is being cosponsored by many of my esteemed colleagues and 
I would like to recognize them this morning: Senator Boxer, chairman of 
the Environment and Public Works Committee; the Senior Senator from the 
great state of Vermont, Mr. Leahy; both Senators from New Jersey, Mr. 
Lautenberg and Mr. Menendez; Senators Reed and Whitehouse, both from 
Rhode Island; the Senate delegation from the State of Hawaii, Senators 
Inouye and Akaka; and Senator Feingold of Wisconsin and Senator Kennedy 
of Massachusetts. I appreciate the support of these colleagues in 
focusing attention on the most important environmental issue of our 
time

[[Page 1263]]

and urge my other colleagues to join in this effort.
  I am also proud that the Global Warming Pollution Reduction Act has 
the support of numerous national groups, including the Earth Day 
Network, Earthjustice, Environmental Defense, Environmental & Energy 
Study Institute, Friends of the Earth, Greenpeace, League of 
Conservation Voters, National Audubon Society, National Environmental 
Trust, National Wildlife Federation, Natural Resources Defense Council, 
Physicians for Social Responsibility, Public Citizen, Sierra Club, 
Union of Concerned Scientists, and US PIRG.
  The Global Warming Pollution Reduction Act is based on the scientific 
evidence and consensus that global warming poses a significant threat 
to the United States and the world. In fact, with our national 
security, our economy, our public health and welfare, and our global 
environment at stake, we must do nothing short of taking bold action. 
To that end, I am proud that last week the Vermont state legislature 
began 3 weeks of hearings on global warming. Like Americans across the 
country, they want action to fight global warming and they wish their 
Federal Government would step up and provide leadership commensurate 
with the magnitude of the threat. Well, Mr President this bill answers 
those pleas for leadership.
  Grassroots support for action on global warming is clear. Over 300 
mayors have committed their cities to meeting the standards described 
in the Kyoto Protocol. In fact, with over 54 million citizens 
represented, the U.S. Mayors Climate Protection Agreement provides 
clear evidence that everyday citizens--unlike some large corporations 
who have continually misrepresented the science of global warming--want 
to see movement on this issue. Additionally, a group of northeast 
States, including Maine, Connecticut, Delaware, New Hampshire, New 
Jersey, New York, and Vermont, have already implemented a regional 
effort to reduce greenhouse gas emissions and other northeastern 
States, such as Maryland and Massachusetts, are likely to join this 
group soon. And, we all know that the State of California has 
recognized the need to act on global warming and is moving forward with 
a tremendous program.
  Despite the increasing calls for action, for years, the Bush 
administration has turned a deaf ear as the scientific community warned 
us of the problem of global warming and the disastrous impact it will 
have on our planet. Sadly, many of these predictions are now becoming a 
reality.
  Global concentrations of greenhouse gases are incredibly high. In 
fact, the atmospheric concentration of greenhouse gases has risen to 
378 parts per million--a level unseen during anytime over the past 
400,000 years. Additionally, on a global scale, 8 of the 10 years 
between 1996 and the end of 2005 are among the warmest 10 years on 
record and experts at the National Oceanic and Atmospheric 
Administration have just logged 2006 as the hottest year on record for 
the U.S. Also, the National Center for Atmospheric Research suggests 
that the majority of the ice caps of the Arctic Ocean will melt by the 
summer of 2040--decades earlier than previously expected. And, the 
situation has become so dramatic that the Department of the Interior 
recently suggested listing polar bears on the endangered species list 
because their habitat is quite literally disappearing. We are also told 
to expect changes in agriculture and water systems, new threats to our 
health, and more extreme weather patterns including more intense 
hurricanes. All of this is due to global warming caused by the carbon 
dioxide and other greenhouse gases that are released into our 
atmosphere when we burn fossil fuels.
  The good news is that we know how to stop continued global warming--
we simply need the political will to make it happen. The time is now 
for bold action that will move our country away from fossil fuels such 
as coal, gas, and oil towards efficient, sustainable energy sources 
like wind, solar, bio-mass and hydrogen. The bill I introduce today 
recognizes the urgency of our circumstances and sets targets for 
reduction of U.S. emissions to help stabilize global atmospheric 
concentrations of greenhouse gases below 450 parts per million, a 
critical level as recognized by leading climate scientists. More 
specifically, this legislation calls for an 80 percent decrease--
compared to 1990 levels--in global warming pollutants by 2050 by 
enacting a combination of mandatory reduction targets and incentives 
that will help develop clean alternative energies.
  The concept is simple. By putting our minds to it, we can usher in a 
new era of nonpolluting, renewable energy sources. And, what makes this 
proposal even more exciting is its potential to reshape our economy and 
make the United States a leader in clean and efficient energy 
technologies--creating millions of good paying jobs in the process.
  In fact, it is a lack of bold vision that will financially cost us. 
In October of 2006, Sir Nicholas Stern, a former chief economist of the 
World Bank, turned the old economic arguments against taking action on 
climate change on their head. In a report to the British government, he 
writes that bold action to combat the threat of global warming will in 
fact save industrial nations money and that inaction could cost between 
5 to 20 percent of global gross domestic product. Speaking to the issue 
in no uncertain terms, the report states, ``If no action is taken we 
will be faced with the kind of downturn that has not been seen since 
the great depression and the two world wars.''
  To be quite frank, the time for talk is over. It is time for action 
and introduction of this bill signals my commitment to pushing for such 
action.
  While I ask unanimous consent that Senator Jeffords' full statement 
from last year on this important bill be included following my remarks, 
I want to read two excerpts from those remarks:

       Global warming is real and it is already happening. Its 
     effects are being felt across the globe and the longer we 
     delay, the more severe these effects will be.

  He went on to say,

       In my final year in the Senate, I have often asked myself, 
     ``What lasting actions can I take to make the world a better 
     place?'' I hope that by proposing real action on climate 
     change, and passing the torch to a new generation of those 
     committed to protecting the environment, that I can help make 
     a difference for us all.

  I couldn't be more honored to carry on Senator Jeffords' vision on 
behalf of Vermonters and all Americans.
  In closing, a country that represents only 6 percent of the world's 
population but produces 25 percent of its greenhouse gas emissions, the 
United States has a moral obligation to lead the way toward reducing 
these emissions. For the sake of our children and grandchildren, we 
must meet that obligation. This legislation will put us on the right 
path to do so.
  I ask unanimous consent that the material be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

              Statement of Senator Jeffords, July 20, 2006

       Mr. President, I rise to introduce the Global Warming 
     Pollution Reduction Act of 2006.
       One of the most important issues facing mankind is the 
     problem of global warming. Global warming is real and it is 
     already happening. Its effects are being felt across the 
     globe and the longer we delay, the more severe these effects 
     will be. The broad consensus within the scientific community 
     is that global warming has begun, is largely the result of 
     human activity, and is accelerating. Atmospheric greenhouse 
     gas concentrations have risen to 378 parts per million, 
     nearly one third above pre-industrial levels and higher than 
     at any time during the past 400,000 years. Projections 
     indicate that stabilizing concentrations at 450 parts per 
     million would still mean a temperature increase of two to 
     four degrees Fahrenheit. Such warming will result in more 
     extreme weather, increased flooding and drought, disruption 
     of agricultural and water systems, threats to human health 
     and loss of sensitive species and ecosystems.
       In order to prevent and minimize these effects, we must 
     take global actions to address this issue as soon as 
     possible. We owe that to ourselves and to future generations.
       The overwhelming majority of Americans support taking some 
     form of action on climate change. I am today introducing the 
     Global Warming Pollution Reduction Act, which I believe 
     responds to that call. I believe this is the most far 
     reaching and forward thinking climate change bill ever 
     introduced. It sets a goal of an 80% reduction

[[Page 1264]]

     in global warming pollutants by 2050. It provides a roadmap 
     for actions that we will need to take over the next few 
     decades to combat global warming. I believe that if this bill 
     were passed, it would put us on the path to potentially 
     solving the global warming problem. If it were passed, we 
     would reshape our economy to become more energy independent, 
     cleaner and more economically competitive. If it were passed, 
     we would have a chance of avoiding some of the worst and most 
     dangerous effects of global warming. If it were passed, we 
     would be in a position to negotiate with other countries as 
     part of the global solution.
       Some will say that this bill imposes requirements that ask 
     too much of industry. Some will say that this bill contains 
     requirements that we cannot easily meet. I say first of all 
     that the costs of inaction vastly outweigh the costs of 
     action, and that we have a responsibility to future 
     generations not to leave the earth far worse off than when we 
     found it--with a fundamentally altered climate system. 
     Temperature changes, sea level rise, hurricanes, floods and 
     droughts can affect food production, national security, the 
     spread of disease and the survival of endangered species. 
     These are not things to trifle with on the basis of industry 
     cost estimates, which have frequently been overstated.
       But perhaps more importantly, we can act to reduce global 
     warming. We can reduce emissions to 1990 levels between now 
     and 2020 through a reduction of just 2 percent per year. 
     Energy efficiency alone could play a major part in reaching 
     reductions and new technologies can help as well. Moreover, 
     additional deployment of existing renewable energy sources, 
     including bio-fuels, can also help substantially. If we were 
     to take the actions suggested in this bill, we would find 
     that we would enhance our energy independence, and we would 
     become a world leader in clean energy technologies. American 
     innovation can position us as the world leader in clean 
     technologies.
       In my final year in the Senate, I have often asked myself 
     ``What lasting actions can I take to make the world a better 
     place?'' I hope that by proposing real action on climate 
     change, and passing the torch to a new generation of those 
     committed to protecting the environment, that I can help make 
     a difference for us all. Global warming is upon us now. The 
     question is, can we take action now, before it is too late?
       We know what we need to do, we know how much we must 
     reduce, and we have the technology to do so. The question for 
     this body is, do we have the political will? Can we overcome 
     our fears and insecurity and act decisively to combat global 
     warming? That is the opportunity and challenge of the coming 
     years, which my bill on global warming seeks to address. I 
     urge my colleagues to join me in the quest for a better, 
     safer world that is free of the enormous threat posed by 
     dangerous global warming. I urge my colleagues to support 
     this important piece of legislation.
                                  ____


                                 S. 309

       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 ``Global Warming Pollution 
     Reduction Act''.

     SEC. 2. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.

       The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by 
     adding at the end the following:

     ``TITLE VII--COMPREHENSIVE GLOBAL WARMING POLLUTION REDUCTIONS

``Sec. 701. Findings.
``Sec. 702. Purposes.
``Sec. 703. Definitions.
``Sec. 704. Global warming pollution emission reductions.
``Sec. 705. Conditions for accelerated global warming pollution 
              emission reduction.
``Sec. 706. Use of allowances for transition assistance and other 
              purposes.
``Sec. 707. Vehicle emission standards.
``Sec. 708. Emission standards for electric generation units.
``Sec. 709. Low-carbon generation requirement.
``Sec. 710. Geological disposal of global warming pollutants.
``Sec. 711. Research and development.
``Sec. 712. Energy efficiency performance standard.
``Sec. 713. Renewable portfolio standard.
``Sec. 714. Standards to account for biological sequestration of 
              carbon.
``Sec. 715. Global warming pollution reporting.
``Sec. 716. Clean energy technology deployment in developing countries.
``Sec. 717. Paramount interest waiver.
``Sec. 718. Effect on other law.

     ``SEC. 701. FINDINGS.

       ``Congress finds that--
       ``(1) global warming poses a significant threat to the 
     national security and economy of the United States, public 
     health and welfare, and the global environment;
       ``(2) due largely to an increased use of energy from fossil 
     fuels, human activities are primarily responsible for the 
     release of carbon dioxide and other heat-trapping global 
     warming pollutants that are accumulating in the atmosphere 
     and causing surface air and subsurface ocean temperatures to 
     rise;
       ``(3) as of the date of enactment of this title, 
     atmospheric concentrations of carbon dioxide are 35 percent 
     higher than those concentrations were 150 years ago, at 378 
     parts per million compared to 280 parts per million;
       ``(4) the United States emits more global warming 
     pollutants than any other country, and United States carbon 
     dioxide emissions have increased by an average of 1.3 percent 
     annually since 1990;
       ``(5)(A) during the past 100 years, global temperatures 
     have risen by 1.44 degrees Fahrenheit; and
       ``(B) from 1970 to the present, those temperatures have 
     risen by almost 1 degree Fahrenheit;
       ``(6) 8 years during the 10-year period beginning January 
     1, 1996, and ending December 31, 2005, were among the 10 
     warmest years on record;
       ``(7) average temperatures in the Arctic have increased by 
     4 to 7 degrees Fahrenheit during the past 50 years;
       ``(8) global warming has caused--
       ``(A) ocean temperatures to increase, resulting in rising 
     sea levels, extensive bleaching of coral reefs worldwide, and 
     an increase in the intensity of tropical storms;
       ``(B) the retreat of Arctic sea ice by an average of 9 
     percent per decade since 1978;
       ``(C) the widespread thawing of permafrost in polar, 
     subpolar, and mountainous regions;
       ``(D) the redistribution and loss of species; and
       ``(E) the rapid shrinking of glaciers;
       ``(9) the United States must adopt a comprehensive and 
     effective national program of mandatory limits and incentives 
     to reduce global warming pollution emissions into the 
     atmosphere;
       ``(10) at the current rate of emission, global warming 
     pollution concentrations in the atmosphere could reach more 
     than 600 parts per million in carbon dioxide equivalent, and 
     global average mean temperature could rise an additional 2.7 
     to 11 degrees Fahrenheit, by the end of the century;
       ``(11) although an understanding of all details of the 
     Earth system is not yet complete, present knowledge indicates 
     that potential future temperature increases could result in--
       ``(A) the further or complete melting of the Antarctic and 
     Greenland ice sheets;
       ``(B) the disruption of the North-Atlantic Thermohaline 
     Circulation (commonly known as the `Gulf Stream');
       ``(C) the extinction of species; and
       ``(D) large-scale disruptions of the natural systems that 
     support life;
       ``(12) there exists an array of technological options for 
     use in reducing global warming pollution emissions, and 
     significant reductions can be attained using a portfolio of 
     options that will not adversely impact the economy;
       ``(13) the ingenuity of the people of the United States 
     will allow the Nation to become a leader in solving global 
     warming; and
       ``(14) it should be a goal of the United States to achieve 
     a reduction in global warming pollution emissions in the 
     United States--
       ``(A) to ensure that the average global temperature does 
     not increase by more than 3.6 degrees Fahrenheit (2 degrees 
     Celsius); and
       ``(B) to facilitate the achievement of an average global 
     atmospheric concentration of global warming pollutants that 
     does not exceed 450 parts per million in carbon dioxide 
     equivalent.

     ``SEC. 702. PURPOSES.

       ``The purposes of this title are--
       ``(1) to achieve a reduction in global warming pollution 
     emissions compatible with ensuring that--
       ``(A) the average global temperature does not increase by 
     more than 3.6 degrees Fahrenheit (2 degrees Celsius) above 
     the preindustrial average; and
       ``(B) total average global atmospheric concentrations of 
     global warming pollutants do not exceed 450 parts per million 
     in carbon dioxide equivalent;
       ``(2) to reduce by calendar year 2050 the aggregate net 
     level of global warming pollution emissions of the United 
     States to a level that is 80 percent below the aggregate net 
     level of global warming pollution emissions for calendar year 
     1990;
       ``(3) to allow for an acceleration of reductions in global 
     warming pollution emissions to prevent--
       ``(A) average global temperature from increasing by more 
     than 3.6 degrees Fahrenheit (2 degrees Celsius) above the 
     preindustrial average; or
       ``(B) global atmospheric concentrations of global warming 
     pollutants from exceeding 450 parts per million;
       ``(4) to establish a motor vehicle global warming pollution 
     emission requirement;
       ``(5) to require electric generation units to meet a global 
     warming pollution emission standard;
       ``(6) to establish rules for the safe geological 
     sequestration of carbon dioxide;
       ``(7) to encourage energy efficiency and the use of 
     renewable energy by establishing a renewable portfolio 
     standard and an energy efficiency portfolio standard;
       ``(8) to provide for research relating to, and development 
     of, the technologies to control global warming pollution 
     emissions;

[[Page 1265]]

       ``(9) to position the United States as the world leader in 
     reducing the risk of the potentially devastating, wide-
     ranging impacts associated with global warming; and
       ``(10) to promote, through leadership by the United States, 
     accelerated reductions in global warming pollution from other 
     countries with significant global warming pollution 
     emissions.

     ``SEC. 703. DEFINITIONS.

       ``In this title:
       ``(1) Academy.--The term `Academy' means the National 
     Academy of Sciences.
       ``(2) Carbon dioxide equivalent.--The term `carbon dioxide 
     equivalent' means, for each global warming pollutant, the 
     quantity of the global warming pollutant that makes the same 
     contribution to global warming as 1 metric ton of carbon 
     dioxide, as determined by the Administrator, taking into 
     account the study and report described in section 705(a).
       ``(3) Facility.--The term `facility' means all buildings, 
     structures, or installations that are--
       ``(A) located on 1 or more contiguous or adjacent 
     properties under common control of the same persons; and
       ``(B) located in the United States.
       ``(4) Global warming pollutant.--The term `global warming 
     pollutant' means--
       ``(A) carbon dioxide;
       ``(B) methane;
       ``(C) nitrous oxide;
       ``(D) hydrofluorocarbons;
       ``(E) perfluorocarbons;
       ``(F) sulfur hexafluoride; and
       ``(G) any other anthropogenically-emitted gas that the 
     Administrator, after notice and comment, determines to 
     contribute to global warming.
       ``(5) Global warming pollution.--The term `global warming 
     pollution' means any combination of 1 or more global warming 
     pollutants emitted into the ambient air or atmosphere.
       ``(6) Market-based program.--The term `market-based 
     program' means a program that places an absolute limit on the 
     aggregate net global warming pollution emissions of 1 or more 
     sectors of the economy of the United States, while allowing 
     the transfer or sale of global warming pollution emission 
     allowances.
       ``(7) NAS report.--The term `NAS report' means a report 
     completed by the Academy under subsection (a) or (b) of 
     section 705.

     ``SEC. 704. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.

       ``(a) Emission Reduction Goal.--Congress declares that--
       ``(1) it shall be the goal of the United States, acting in 
     concert with other countries that emit global warming 
     pollutants, to achieve a reduction in global warming 
     pollution emissions--
       ``(A) to ensure that the average global temperature does 
     not increase by more than 3.6 degrees Fahrenheit (2 degrees 
     Celsius); and
       ``(B) to facilitate the achievement of an average global 
     atmospheric concentration of global warming pollutants that 
     does not exceed 450 parts per million in carbon dioxide 
     equivalent; and
       ``(2) in order to achieve the goal described in paragraph 
     (1), the United States shall reduce the global warming 
     pollution emissions of the United States by a quantity that 
     is proportional to the share of the United States of the 
     reductions that are necessary--
       ``(A) to ensure that the average global temperature does 
     not increase more than 3.6 degrees Fahrenheit (2 degrees 
     Celsius); and
       ``(B) to stabilize average global warming pollution 
     concentrations globally at or below 450 parts per million in 
     carbon dioxide equivalent.
       ``(b) Emission Reduction Milestones for 2020.--
       ``(1) In general.--To achieve the goal described in 
     subsection (a)(1), not later than 2 years after the date of 
     enactment of this title, after an opportunity for public 
     notice and comment, the Administrator shall promulgate any 
     rules that are necessary to reduce, by not later than January 
     1, 2020, the aggregate net levels of global warming pollution 
     emissions of the United States to the aggregate net level of 
     those global warming pollution emissions during calendar year 
     1990.
       ``(2) Achievement of milestones.--To the maximum extent 
     practicable, the reductions described in paragraph (1) shall 
     be achieved through an annual reduction in the aggregate net 
     level of global warming pollution emissions of the United 
     States of approximately 2 percent for each of calendar years 
     2010 through 2020.
       ``(c) Emission Reduction Milestones for 2030, 2040, and 
     2050.--Except as described in subsection (d), not later than 
     January 1, 2018, after an opportunity for public notice and 
     comment, the Administrator shall promulgate any rules that 
     are necessary to reduce the aggregate net levels of global 
     warming pollution emissions of the United States--
       ``(1) by calendar year 2030, by \1/3\ of 80 percent of the 
     aggregate net level of global warming pollution emissions of 
     the United States during calendar year 1990;
       ``(2) by calendar year 2040, by \2/3\ of 80 percent of the 
     aggregate net level of the global warming pollution emissions 
     of the United States during calendar year 1990; and
       ``(3) by calendar year 2050, by 80 percent of the aggregate 
     net level of global warming pollution emissions of the United 
     States during calendar year 1990.
       ``(d) Accelerated Emission Reduction Milestones.--If an NAS 
     report determines that any of the events described in section 
     705(a)(2) have occurred, or are more likely than not to occur 
     in the foreseeable future, not later than 2 years after the 
     date of completion of the NAS report, the Administrator, 
     after an opportunity for public notice and comment and taking 
     into account the new information reported in the NAS report, 
     may adjust the milestones under this section and promulgate 
     any rules that are necessary--
       ``(1) to reduce the aggregate net levels of global warming 
     pollution emissions from the United States on an accelerated 
     schedule; and
       ``(2) to minimize the effects of rapid climate change and 
     achieve the goals of this title.
       ``(e) Report on Achievement of Milestones.--If an NAS 
     report determines that a milestone under paragraph (1) or (2) 
     of subsection (c) cannot be achieved because of technological 
     infeasibility, the Administrator shall submit to Congress a 
     notification of that determination.
       ``(f) Emission Reduction Policies.--
       ``(1) In general.--In implementing subsections (a) through 
     (e), the Administrator may establish 1 or more market-based 
     programs.
       ``(2) Market-based program policies.--
       ``(A) In general.--In implementing any market-based 
     program, the Administrator shall allocate to households, 
     communities, and other entities described in section 706(a) 
     any global warming pollution emission allowances that are not 
     allocated to entities covered under the emission limitation.
       ``(B) Recognition of emission reductions made in compliance 
     with state and local laws.--A market-based program may 
     recognize reductions of global warming pollution emissions 
     made before the effective date of the market-based program if 
     the Administrator determines that--
       ``(i)(I) the reductions were made in accordance with a 
     State or local law;
       ``(II) the State or local law is at least as stringent as 
     the rules established for the market-based program under 
     paragraph (1); and
       ``(III) the reductions are at least as verifiable as 
     reductions made in accordance with those rules; or
       ``(ii) for any given entity subject to the market-based 
     program, the entity demonstrates that the entity has made 
     entity-wide reductions of global warming pollution emissions 
     before the effective date of the market-based program, but 
     not earlier than calendar year 1992, that are at least as 
     verifiable as reductions made in accordance with the rules 
     established for the market-based program under paragraph (1).
       ``(C) Publication.--If the Administrator determines that it 
     is necessary to establish a market-based program, the 
     Administrator shall publish notice of the determination in 
     the Federal Register.
       ``(D) Limitations on market-based programs.--
       ``(i) Definitions.--In this subparagraph:

       ``(I) Annual allowance price.--The term `annual allowance 
     price' means the average market price of global warming 
     pollution emission allowances for a calendar year.
       ``(II) Declining emissions cap with a technology-indexed 
     stop price.--The term `declining emissions cap with a 
     technology-indexed stop price' means a feature of a market-
     based program for an industrial sector, or on an economy-wide 
     basis, under which the emissions cap declines by a fixed 
     percentage each calendar year or, during any year in which 
     the annual allowance price exceeds the technology-indexed 
     stop price, the emissions cap remains the same until the 
     occurrence of the earlier of--

       ``(aa) the date on which the annual allowance price no 
     longer exceeds the technology-indexed stop price; or
       ``(bb) the date on which a period of 3 years has elapsed 
     during which the emissions cap has remained unchanged.

       ``(III) Emissions cap.--The term `emissions cap' means the 
     total number of global warming pollution emission allowances 
     issued for a calendar year.
       ``(IV) Technology-indexed stop price.--The term 
     `technology-indexed stop price' means a price per ton of 
     global warming pollution emissions determined annually by the 
     Administrator that is not less than the technology-specific 
     average cost of preventing the emission of 1 ton of global 
     warming pollutants through commercial deployment of any 
     available zero-carbon or low-carbon technologies. With 
     respect to the electricity sector, those technologies shall 
     consist of--

       ``(aa) wind-generated electricity;
       ``(bb) photovoltaic-generated electricity;
       ``(cc) geothermal energy;
       ``(dd) solar thermally-generated energy;
       ``(ee) wave-based forms of energy;
       ``(ff) any fossil fuel-based electric generating technology 
     emitting less than 250 pounds per megawatt hour; and
       ``(gg) any zero-carbon-emitting electric generating 
     technology that does not generate radioactive waste.
       ``(ii) Implementation.--In implementing any market-based 
     program under this Act,

[[Page 1266]]

     for the period prior to January 1, 2020, the Administrator 
     shall consider the impact on the economy of the United States 
     of implementing the program with a declining emissions cap 
     through the use of a technology-indexed stop price.
       ``(iii) Other emitting sectors.--The Administrator may 
     consider the use of a declining emissions cap with a 
     technology-indexed stop price, or similar approaches, for 
     other emitting sectors based on low-carbon or zero-carbon 
     technologies, including--

       ``(I) biofuels;
       ``(II) hydrogen power; and
       ``(III) other sources of energy and transportation fuel.

       ``(g) Cost-Effectiveness.--In promulgating regulations 
     under this section, the Administrator shall select the most 
     cost-effective options for global warming pollution control 
     and emission reduction strategies.

     ``SEC. 705. CONDITIONS FOR ACCELERATED GLOBAL WARMING 
                   POLLUTION EMISSION REDUCTION.

       ``(a) Report on Global Change Events by the Academy.--
       ``(1) In general.--The Administrator shall offer to enter 
     into a contract with the Academy under which the Academy, not 
     later than 2 years after the date of enactment of this title, 
     and every 3 years thereafter, shall submit to Congress and 
     the Administrator a report that describes whether any of the 
     events described in paragraph (2)--
       ``(A) have occurred or are more likely than not to occur in 
     the foreseeable future; and
       ``(B) in the judgment of the Academy, are the result of 
     anthropogenic climate change.
       ``(2) Events.--The events referred to in paragraph (1) 
     are--
       ``(A) the exceedance of an atmospheric concentration of 
     global warming pollutants of 450 parts per million in carbon 
     dioxide equivalent; and
       ``(B) an increase of global average temperatures in excess 
     of 3.6 degrees Fahrenheit (2 degrees Celsius) above the 
     preindustrial average.
       ``(b) Technology Reports.--
       ``(1) Definition of technologically infeasible.--In this 
     subsection, the term `technologically infeasible', with 
     respect to a technology, means that the technology--
       ``(A) will not be demonstrated beyond laboratory-scale 
     conditions;
       ``(B) would be unsafe;
       ``(C) would not reliably reduce global warming pollution 
     emissions; or
       ``(D) would prevent the activity to which the technology 
     applies from meeting or performing its primary purpose (such 
     as generating electricity or transporting goods or 
     individuals).
       ``(2) Reports.--The Administrator shall offer to enter into 
     a contract with the Academy under which the Academy, not 
     later than 2 years after the date of enactment of this title 
     and every 3 years thereafter, shall submit to Congress and 
     the Administrator a report that describes or analyzes--
       ``(A) the status of current global warming pollution 
     emission reduction technologies, including--
       ``(i) technologies for capture and disposal of global 
     warming pollutants;
       ``(ii) efficiency improvement technologies;
       ``(iii) zero-global-warming-pollution-emitting energy 
     technologies; and
       ``(iv) above- and below-ground biological sequestration 
     technologies;
       ``(B) whether any of the requirements under this title 
     (including regulations promulgated under this title) mandate 
     a level of emission control or reduction that, based on 
     available or expected technology, will be technologically 
     infeasible at the time at which the requirements become 
     effective;
       ``(C) the projected date on which any technology determined 
     to be technologically infeasible will become technologically 
     feasible;
       ``(D) whether any technology determined to be 
     technologically infeasible cannot reasonably be expected to 
     become technologically feasible prior to calendar year 2050; 
     and
       ``(E) the costs of available alternative global warming 
     pollution emission reduction strategies that could be used or 
     pursued in lieu of any technologies that are determined to be 
     technologically infeasible.
       ``(3) Report evaluating 2050 milestone.--Not later than 
     December 31, 2037, the Administrator shall offer to enter 
     into a contract with the Academy under which, not later than 
     December 31, 2039, the Academy shall prepare and submit to 
     Congress and the Administrator a report on the 
     appropriateness of the milestone described in section 
     704(c)(3), taking into consideration--
       ``(A) information that was not available as of the date of 
     enactment of this title; and
       ``(B) events that have occurred since that date relating 
     to--
       ``(i) climate change;
       ``(ii) climate change technologies; and
       ``(iii) national and international climate change 
     commitments.
       ``(c) Additional Items in NAS Report.--In addition to the 
     information described in subsection (a)(1) that is required 
     to be included in the NAS report, the Academy shall include 
     in the NAS report--
       ``(1) an analysis of the trends in annual global warming 
     pollution emissions by the United States and the other 
     countries that collectively account for more than 90 percent 
     of global warming pollution emissions (including country-
     specific inventories of global warming pollution emissions 
     and facility-specific inventories of global warming pollution 
     emissions in the United States);
       ``(2) an analysis of the trends in global warming pollution 
     concentrations (including observed atmospheric concentrations 
     of global warming pollutants);
       ``(3) a description of actual and projected global change 
     impacts that may be caused by anthropogenic global warming 
     pollution emissions, in addition to the events described in 
     subsection (a)(2); and
       ``(4) such other information as the Academy determines to 
     be appropriate.

     ``SEC. 706. USE OF ALLOWANCES FOR TRANSITION ASSISTANCE AND 
                   OTHER PURPOSES.

       ``(a) Regulations Governing Allocation of Allowances for 
     Transition Assistance to Individuals and Entities.--
       ``(1) In general.--In implementing any market-based 
     program, the Administrator may promulgate regulations 
     providing for the allocation of global warming pollution 
     emission allowances to the individuals and entities, or for 
     the purposes, specified in subsection (b).
       ``(2) Requirements.--Regulations promulgated under 
     paragraph (1) may, as the Administrator determines to be 
     necessary, provide for the appointment of 1 or more 
     trustees--
       ``(A) to receive emission allowances for the benefit of 
     households, communities, and other entities described in 
     paragraph (1);
       ``(B) to sell the emission allowances at fair market value; 
     and
       ``(C) to distribute the proceeds of any sale of emission 
     allowances to the appropriate beneficiaries.
       ``(b) Allocation for Transition Assistance.--The 
     Administrator may allocate emission allowances, in accordance 
     with regulations promulgated under subsection (a), to--
       ``(1) communities, individuals, and companies that have 
     experienced disproportionate adverse impacts as a result of--
       ``(A) the transition to a lower carbon-emitting economy; or
       ``(B) global warming;
       ``(2) owners and operators of highly energy-efficient 
     buildings, including--
       ``(A) residential users;
       ``(B) producers of highly energy-efficient products; and
       ``(C) entities that carry out energy-efficiency improvement 
     projects pursuant to section 712 that result in consumer-side 
     reductions in electricity use;
       ``(3) entities that will use the allowances for the purpose 
     of carrying out geological sequestration of carbon dioxide 
     produced by an anthropogenic global warming pollution 
     emission source in accordance with requirements established 
     by the Administrator;
       ``(4) such individuals and entities as the Administrator 
     determines to be appropriate, for use in carrying out 
     projects to reduce net carbon dioxide emissions through 
     above-ground and below-ground biological carbon dioxide 
     sequestration (including sequestration in forests, forest 
     soils, agricultural soils, rangeland, or grassland in the 
     United States);
       ``(5) such individuals and entities (including fish and 
     wildlife agencies) as the Administrator determines to be 
     appropriate, for use in carrying out projects to protect and 
     restore ecosystems (including fish and wildlife) affected by 
     climate change; and
       ``(6) manufacturers producing consumer products that result 
     in substantially reduced global warming pollution emissions, 
     for use in funding rebates for purchasers of those products.

     ``SEC. 707. VEHICLE EMISSION STANDARDS.

       ``(a) Vehicles Under 10,000 Pounds.--
       ``(1) In general.--Not later than January 1, 2010, the 
     Administrator shall promulgate regulations requiring each 
     fleet of automobiles sold by a manufacturer in the United 
     States beginning in model year 2016 to meet the standards for 
     global warming pollution emissions described in paragraph 
     (2).
       ``(2) Emission standards.--The average global warming 
     pollution emissions of a vehicle fleet described in paragraph 
     (1) shall not exceed--
       ``(A) 205 carbon dioxide equivalent grams per mile for 
     automobiles with--
       ``(i) a gross vehicle weight of not more than 8,500 pounds; 
     and
       ``(ii) a loaded vehicle weight of not more than 3,750 
     pounds;
       ``(B) 332 carbon dioxide equivalent grams per mile for--
       ``(i) automobiles with--

       ``(I) a gross vehicle weight of not more than 8,500 pounds; 
     and
       ``(II) a loaded vehicle weight of more than 3,750 pounds; 
     and

       ``(ii) medium-duty passenger vehicles; and
       ``(C) 405 carbon dioxide equivalent grams per mile for 
     vehicles--
       ``(i) with a gross vehicle weight of between 8,501 pounds 
     and 10,000 pounds; and
       ``(ii) that are not medium-duty passenger vehicles.
       ``(3) Heightened standards.--After model year 2016, the 
     Administrator may promulgate regulations that increase the 
     stringency of emission standards described in paragraph

[[Page 1267]]

     (2) as necessary to meet the emission reduction goal 
     described in section 704(e)(3).
       ``(b) Highway Vehicles Over 10,000 Pounds.--
       ``(1) In general.--Not later than January 1, 2010, the 
     Administrator shall promulgate regulations requiring each 
     fleet of highway vehicles over 10,000 pounds sold by a 
     manufacturer in the United States beginning in model year 
     2020 to meet the standards for global warming pollution 
     emissions described in paragraph (2).
       ``(2) Emission standards.--The average global warming 
     pollution emissions of a vehicle fleet described in paragraph 
     (1) shall not exceed--
       ``(A) 850 carbon dioxide equivalent grams per mile for 
     highway vehicles with a gross vehicle weight rating between 
     10,001 pounds and 26,000 pounds; and
       ``(B) 1,050 carbon dioxide equivalent grams per mile for 
     highway vehicles with a gross vehicle weight rating of more 
     than 26,000 pounds.
       ``(3) Heightened standards.--After model year 2020, the 
     Administrator may promulgate regulations that increase the 
     stringency of emission standards described in paragraph (2) 
     as necessary to meet the emission reduction goal described in 
     section 704(a)(1).
       ``(c) Adjustment of Requirements.--Taking into account 
     appropriate lead times for vehicle manufacturers, if the 
     Academy determines, pursuant to an NAS report, that a vehicle 
     emission standard under this section is or will be 
     technologically infeasible as of the effective date of the 
     standard, the Administrator may, by regulation, modify the 
     requirement to take into account the determination of the 
     Academy.
       ``(d) Study.--
       ``(1) In general.--Not later than January 1, 2008, the 
     Administrator shall enter into a contract with the Academy 
     under which the Academy shall conduct a study of, and submit 
     to the Administrator a report on, the potential contribution 
     of the non-highway portion of the transportation sector 
     toward meeting the emission reduction goal described in 
     section 704(a)(1).
       ``(2) Requirements.--The study shall analyze--
       ``(A) the technological feasibility and cost-effectiveness 
     of global warming pollution reductions from the non-highway 
     sector; and
       ``(B) the overall potential contribution of that sector in 
     terms of emissions, in meeting the emission reduction goal 
     described in section 704(a)(1).

     ``SEC. 708. EMISSION STANDARDS FOR ELECTRIC GENERATION UNITS.

       ``(a) Initial Standard.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this title, the Administrator shall, by 
     regulation, require each unit that is designed and intended 
     to provide electricity at a unit capacity factor of at least 
     60 percent and that begins operation after December 31, 2011, 
     to meet the standard described in paragraph (2).
       ``(2) Standard.--Beginning on December 31, 2015, a unit 
     described in paragraph (1) shall meet a global warming 
     pollution emission standard that is not higher than the 
     emission rate of a new combined cycle natural gas generating 
     unit.
       ``(3) More stringent requirements.--For the period 
     beginning on January 1 of the calendar year following the 
     effective date of the regulation described in paragraph (1) 
     and ending on December 31, 2029, the Administrator may 
     increase the stringency of the global warming pollution 
     emission standard described in paragraph (1) with respect to 
     electric generation units described in that paragraph.
       ``(b) Final Standard.--Not later than December 31, 2030, 
     the Administrator shall require each electric generation 
     unit, regardless of when the unit began to operate, to meet 
     the applicable emission standard under subsection (a).
       ``(c) Adjustment of Requirements.--If the Academy 
     determines, pursuant to section 705, that a requirement of 
     this section is or will be technologically infeasible at the 
     time at which the requirement becomes effective, the 
     Administrator, may, by regulation, adjust or delay the 
     effective date of the requirement as is necessary to take 
     into consideration the determination of the Academy.

     ``SEC. 709. LOW-CARBON GENERATION REQUIREMENT.

       ``(a) Definitions.--In this section:
       ``(1) Base quantity of electricity.--The term `base 
     quantity of electricity' means the total quantity of 
     electricity produced for sale by a covered generator during 
     the calendar year immediately preceding a compliance year 
     from coal, petroleum coke, lignite, or any combination of 
     those fuels.
       ``(2) Covered generator.--The term `covered generator' 
     means an electric generating unit that--
       ``(A) has a rated capacity of 25 megawatts or more; and
       ``(B) has an annual fuel input at least 50 percent of which 
     is provided by coal, petroleum coke, lignite, or any 
     combination of those fuels.
       ``(3) Low-carbon generation.--The term `low-carbon 
     generation' means electric energy generated from an electric 
     generating unit at least 50 percent of the annual fuel input 
     of which, in any year--
       ``(A) is provided by coal, petroleum coke, lignite, 
     biomass, or any combination of those fuels; and
       ``(B) results in an emission rate into the atmosphere of 
     not more than 250 pounds of carbon dioxide per megawatt-hour 
     (after adjustment for carbon dioxide from the electric 
     generating unit that is geologically sequestered in a 
     geological repository approved by the Administrator pursuant 
     to subsection (e)).
       ``(4) Program.--The term `program' means the low-carbon 
     generation credit trading program established under 
     subsection (d)(1).
       ``(b) Requirement.--
       ``(1) Calendar years 2015 through 2020.--Of the base 
     quantity of electricity produced for sale by a covered 
     generator for a calendar year, the covered generator shall 
     provide a minimum percentage of that base quantity of 
     electricity for the calendar year from low-carbon generation, 
     as specified in the following table:

                                                         Minimum annual
``Calendar year:                                            percentage:
2015................................................................0.5
2016................................................................1.0
2017................................................................2.0
2018................................................................3.0
2019................................................................4.0
2020................................................................5.0

       ``(2) Calendar years 2021 through 2025.--For each of 
     calendar years 2021 through 2025, the Administrator may 
     increase the minimum percentage of the base quantity of 
     electricity from low-carbon generation described in paragraph 
     (1) by up to 2 percentage points from the previous year, as 
     the Administrator determines to be necessary to achieve the 
     emission reduction goal described in section 704(a)(1).
       ``(3) Calendar years 2026 through 2030.--For each of 
     calendar years 2026 through 2030, the Administrator may 
     increase the minimum percentage of the base quantity of 
     electricity from low-carbon generation described in paragraph 
     (1) by up to 3 percentage points from the previous year, as 
     the Administrator determines to be necessary to achieve the 
     emission reduction goal described in section 704(a)(1).
       ``(c) Means of Compliance.--An owner or operator of a 
     covered generator shall comply with subsection (b) by--
       ``(1) generating electric energy using low-carbon 
     generation;
       ``(2) purchasing electric energy generated by low-carbon 
     generation;
       ``(3) purchasing low-carbon generation credits issued under 
     the program; or
       ``(4) undertaking a combination of the actions described in 
     paragraphs (1) through (3).
       ``(d) Low-Carbon Generation Credit Trading Program.--
       ``(1) In general.--Not later than January 1, 2008, the 
     Administrator shall establish, by regulation after notice and 
     opportunity for comment, a low-carbon generation trading 
     program to permit an owner or operator of a covered generator 
     that does not generate or purchase enough electric energy 
     from low-carbon generation to comply with subsection (b) to 
     achieve that compliance by purchasing sufficient low-carbon 
     generation credits.
       ``(2) Requirements.--As part of the program, the 
     Administrator shall--
       ``(A) issue to producers of low-carbon generation, on a 
     quarterly basis, a single low-carbon generation credit for 
     each kilowatt hour of low-carbon generation sold during the 
     preceding quarter; and
       ``(B) ensure that a kilowatt hour, including the associated 
     low-carbon generation credit, shall be used only once for 
     purposes of compliance with subsection (b).
       ``(e) Enforcement.--An owner or operator of a covered 
     generator that fails to comply with subsection (b) shall be 
     subject to a civil penalty in an amount equal to the product 
     obtained by multiplying--
       ``(1) the number of kilowatt-hours of electric energy sold 
     to electric consumers in violation of subsection (b); and
       ``(2) the greater of--
       ``(A) 2.5 cents (as adjusted under subsection (g)); or
       ``(B) 200 percent of the average market value of those low-
     carbon generation credits during the year in which the 
     violation occurred.
       ``(f) Exemption.--This section shall not apply for any 
     calendar year to an owner or operator of a covered generator 
     that sold less than 40,000 megawatt-hours of electric energy 
     produced from covered generators during the preceding 
     calendar year.
       ``(g) Inflation Adjustment.--Not later than December 31, 
     2008, and annually thereafter, the Administrator shall adjust 
     the amount of the civil penalty for each kilowatt-hour 
     calculated under subsection (e)(2) to reflect changes for the 
     12-month period ending on the preceding November 30 in the 
     Consumer Price Index for All Urban Consumers published by the 
     Bureau of Labor Statistics of the Department of Labor.
       ``(h) Technological Infeasibility.--If the Academy 
     determines, pursuant to section 705, that the schedule for 
     compliance described in subsection (b) is or will be 
     technologically infeasible for covered generators to meet, 
     the Administrator may, by regulation, adjust the schedule as 
     the Administrator determines to be necessary to take into 
     account the consideration of the determination of the 
     Academy.
       ``(i) Termination of Authority.--This section and the 
     authority provided by this section terminate on December 31, 
     2030.

[[Page 1268]]



     ``SEC. 710. GEOLOGICAL DISPOSAL OF GLOBAL WARMING POLLUTANTS.

       ``(a) Geological Carbon Dioxide Disposal Deployment 
     Projects.--
       ``(1) In general.--The Administrator shall establish a 
     competitive grant program to provide grants to 5 entities for 
     the deployment of projects to geologically dispose of carbon 
     dioxide (referred to in this subsection as `geological 
     disposal deployment projects').
       ``(2) Location.--Each geological disposal deployment 
     project shall be conducted in a geologically distinct 
     location in order to demonstrate the suitability of a variety 
     of geological structures for carbon dioxide disposal.
       ``(3) Components.--Each geological disposal deployment 
     project shall include an analysis of--
       ``(A) mechanisms for trapping the carbon dioxide to be 
     geologically disposed;
       ``(B) techniques for monitoring the geologically disposed 
     carbon dioxide;
       ``(C) public response to the geological disposal deployment 
     project; and
       ``(D) the permanency of carbon dioxide storage in 
     geological reservoirs.
       ``(4) Requirements.--
       ``(A) In general.--The Administrator shall establish--
       ``(i) appropriate conditions for environmental protection 
     with respect to geological disposal deployment projects to 
     protect public health and the environment; and
       ``(ii) requirements relating to applications for grants 
     under this subsection.
       ``(B) Rulemaking.--The establishment of requirements under 
     subparagraph (A) shall not require a rulemaking.
       ``(C) Minimum requirements.--At a minimum, each application 
     for a grant under this subsection shall include--
       ``(i) a description of the geological disposal deployment 
     project proposed in the application;
       ``(ii) an estimate of the quantity of carbon dioxide to be 
     geologically disposed over the life of the geological 
     disposal deployment project; and
       ``(iii) a plan to collect and disseminate data relating to 
     each geological disposal deployment project to be funded by 
     the grant.
       ``(5) Partners.--An applicant for a grant under this 
     subsection may carry out a geological disposal deployment 
     project under a pilot program in partnership with 1 or more 
     public or private entities.
       ``(6) Selection criteria.--In evaluating applications under 
     this subsection, the Administrator shall--
       ``(A) consider the previous experience of each applicant 
     with similar projects; and
       ``(B) give priority consideration to applications for 
     geological disposal deployment projects that--
       ``(i) offer the greatest geological diversity from other 
     projects that have previously been approved;
       ``(ii) are located in closest proximity to a source of 
     carbon dioxide;
       ``(iii) make use of the most affordable source of carbon 
     dioxide;
       ``(iv) are expected to geologically dispose of the largest 
     quantity of carbon dioxide;
       ``(v) are combined with demonstrations of advanced coal 
     electricity generation technologies;
       ``(vi) demonstrate the greatest commitment on the part of 
     the applicant to ensure funding for the proposed 
     demonstration project and the greatest likelihood that the 
     demonstration project will be maintained or expanded after 
     Federal assistance under this subsection is completed; and
       ``(vii) minimize any adverse environmental effects from the 
     project.
       ``(7) Period of grants.--
       ``(A) In general.--A geological disposal deployment project 
     funded by a grant under this subsection shall begin 
     construction not later than 3 years after the date on which 
     the grant is provided.
       ``(B) Term.--The Administrator shall not provide grant 
     funds to any applicant under this subsection for a period of 
     more than 5 years.
       ``(8) Transfer of information and knowledge.--The 
     Administrator shall establish mechanisms to ensure that the 
     information and knowledge gained by participants in the 
     program under this subsection are published and disseminated, 
     including to other applicants that submitted applications for 
     a grant under this subsection.
       ``(9) Schedule.--
       ``(A) Publication.--Not later than 180 days after the date 
     of enactment of this title, the Administrator shall publish 
     in the Federal Register, and elsewhere as appropriate, a 
     request for applications to carry out geological disposal 
     deployment projects.
       ``(B) Date for applications.--An application for a grant 
     under this subsection shall be submitted not later than 180 
     days after the date of publication of the request under 
     subparagraph (A).
       ``(C) Selection.--After the date by which applications for 
     grants are required to be submitted under subparagraph (B), 
     the Administrator, in a timely manner, shall select, after 
     peer review and based on the criteria under paragraph (6), 
     those geological disposal deployment projects to be provided 
     a grant under this subsection.
       ``(b) Interim Standards.--Not later than 3 years after the 
     date of enactment of this title, the Administrator, in 
     consultation with the Secretary of Energy, shall, by 
     regulation, establish interim geological carbon dioxide 
     disposal standards that address--
       ``(1) site selection;
       ``(2) permitting processes;
       ``(3) monitoring requirements;
       ``(4) public participation; and
       ``(5) such other issues as the Administrator and the 
     Secretary of Energy determine to be appropriate.
       ``(c) Final Standards.--Not later than 6 years after the 
     date of enactment of this title, taking into account the 
     results of geological disposal deployment projects carried 
     out under subsection (a), the Administrator shall, by 
     regulation, establish final geological carbon dioxide 
     disposal standards.
       ``(d) Considerations.--In developing standards under 
     subsections (b) and (c), the Administrator shall consider the 
     experience in the United States in regulating--
       ``(1) underground injection of waste;
       ``(2) enhanced oil recovery;
       ``(3) short-term storage of natural gas; and
       ``(4) long-term waste storage.
       ``(e) Termination of Authority.--This section and the 
     authority provided by this section terminate on December 31, 
     2030.

     ``SEC. 711. RESEARCH AND DEVELOPMENT.

       ``(a) In General.--The Administrator shall carry out a 
     program to perform and support research on global climate 
     change standards and processes, with the goals of--
       ``(1) providing scientific and technical knowledge 
     applicable to the reduction of global warming pollutants; and
       ``(2) facilitating implementation of section 704.
       ``(b) Research Program.--
       ``(1) In general.--The Administrator shall carry out, 
     directly or through the use of contracts or grants, a global 
     climate change standards and processes research program.
       ``(2) Research.--
       ``(A) Contents and priorities.--The specific contents and 
     priorities of the research program shall be determined in 
     consultation with appropriate Federal agencies, including--
       ``(i) the National Oceanic and Atmospheric Administration;
       ``(ii) the National Aeronautics and Space Administration; 
     and
       ``(iii) the Department of Energy.
       ``(B) Types of research.--The research program shall 
     include the conduct of basic and applied research--
       ``(i) to develop and provide the enhanced measurements, 
     calibrations, data, models, and reference material standards 
     necessary to enable the monitoring of global warming 
     pollution;
       ``(ii) to assist in establishing a baseline reference point 
     for future trading in global warming pollutants (including 
     the measurement of progress in emission reductions);
       ``(iii) for international exchange as scientific or 
     technical information for the stated purpose of developing 
     mutually-recognized measurements, standards, and procedures 
     for reducing global warming pollution; and
       ``(iv) to assist in developing improved industrial 
     processes designed to reduce or eliminate global warming 
     pollution.
       ``(3) Abrupt climate change research.--
       ``(A) Definition of abrupt climate change.--In this 
     paragraph, the term `abrupt climate change' means a change in 
     climate that occurs so rapidly or unexpectedly that humans or 
     natural systems may have difficulty adapting to the change.
       ``(B) Research.--The Administrator shall carry out a 
     program of scientific research on potential abrupt climate 
     change that is designed--
       ``(i) to develop a global array of terrestrial and 
     oceanographic indicators of paleoclimate in order to identify 
     and describe past instances of abrupt climate change;
       ``(ii) to improve understanding of thresholds and 
     nonlinearities in geophysical systems relating to the 
     mechanisms of abrupt climate change;
       ``(iii) to incorporate those mechanisms into advanced 
     geophysical models of climate change; and
       ``(iv) to test the output of those models against an 
     improved global array of records of past abrupt climate 
     changes.
       ``(c) Sense of the Senate.--It is the sense of the Senate 
     that Federal funds for clean, low-carbon energy research, 
     development, and deployment should be increased by at least 
     100 percent for each year during the 10-year period beginning 
     on the date of enactment of this title.

     ``SEC. 712. ENERGY EFFICIENCY PERFORMANCE STANDARD.

       ``(a) Definitions.--In this section:
       ``(1) Electricity savings.--
       ``(A) In general.--The term `electricity savings' means 
     reductions in end-use electricity consumption relative to 
     consumption by the same customer or at the same new or 
     existing facility in a given year, as defined in regulations 
     promulgated by the Administrator under subsection (e).
       ``(B) Inclusions.--The term `savings' includes savings 
     achieved as a result of--
       ``(i) installation of energy-saving technologies and 
     devices; and
       ``(ii) the use of combined heat and power systems, fuel 
     cells, or any other technology

[[Page 1269]]

     identified by the Administrator that recaptures or generates 
     energy solely for onsite customer use.
       ``(C) Exclusion.--The term `savings' does not include 
     savings from measures that would likely be adopted in the 
     absence of energy-efficiency programs, as determined by the 
     Administrator.
       ``(2) Retail electricity sales.--The term `retail 
     electricity sales' means the total quantity of electric 
     energy sold by a retail electricity supplier to retail 
     customers during the most recent calendar year for which that 
     information is available.
       ``(3) Retail electricity supplier.--The term `retail 
     electricity supplier' means a distribution or integrated 
     utility, or an independent company or entity, that sells 
     electric energy to consumers.
       ``(b) Energy Efficiency Performance Standard.--Each retail 
     electricity supplier shall implement programs and measures to 
     achieve improvements in energy efficiency and peak load 
     reduction, as verified by the Administrator.
       ``(c) Targets.--For calendar year 2008 and each calendar 
     year thereafter, the Administrator shall ensure that retail 
     electric suppliers annually achieve electricity savings and 
     reduce peak power demand and electricity use by retail 
     customers by a percentage that is not less than the 
     applicable target percentage specified in the following 
     table:


----------------------------------------------------------------------------------------------------------------
                                                     Reduction in peak demand (in   Reduction in electricity use
                   Calendar year                               percent)                     (in percent)
----------------------------------------------------------------------------------------------------------------
2008..............................................                            .25                            .25
2009..............................................                            .75                            .75
2010..............................................                           1.75                           1.5
2011..............................................                           2.75                           2.25
2012..............................................                           3.75                           3.0
2013..............................................                           4.75                           3.75
2014..............................................                           5.75                           4.5
2015..............................................                           6.75                           5.25
2016..............................................                           7.75                           6.0
2017..............................................                           8.75                           6.75
2018..............................................                           9.75                           7.5
2019..............................................                          10.75                           8.25
2020 and each calendar year thereafter............                          11.75                           9.0
----------------------------------------------------------------------------------------------------------------

       ``(d) Beginning Date.--For the purpose of meeting the 
     targets established under subsection (c), electricity savings 
     shall be calculated based on the sum of--
       ``(1) savings realized as a result of actions taken by the 
     retail electric supplier during the specified calendar year; 
     and
       ``(2) cumulative savings realized as a result of 
     electricity savings achieved in all previous calendar years 
     (beginning with calendar year 2006).
       ``(e) Implementing Regulations.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this title, the Administrator shall promulgate 
     regulations to implement the targets established under 
     subsection (c).
       ``(2) Requirements.--The regulations shall establish--
       ``(A) a national credit system permitting credits to be 
     awarded, bought, sold, or traded by and among retail 
     electricity suppliers;
       ``(B) a fee equivalent to not less than 4 cents per 
     kilowatt hour for retail energy suppliers that do not meet 
     the targets established under subsection (c); and
       ``(C) standards for monitoring and verification of 
     electricity use and demand savings reported by the retail 
     electricity suppliers.
       ``(3) Consideration of transmission and distribution 
     efficiency.--In developing regulations under this subsection, 
     the Administrator shall consider whether savings, in whole or 
     part, achieved by retail electricity suppliers by improving 
     the efficiency of electric distribution and use should be 
     eligible for credits established under this section.
       ``(f) Compliance With State Law.--Nothing in this section 
     shall supersede or otherwise affect any State or local law 
     requiring or otherwise relating to reductions in total annual 
     electricity consumption, or peak power consumption, by 
     electric consumers to the extent that the State or local law 
     requires more stringent reductions than those required under 
     this section.
       ``(g) Voluntary Participation.--The Administrator may--
       ``(1) pursuant to the regulations promulgated under 
     subsection (e)(1), issue a credit to any entity that is not a 
     retail electric supplier if the entity implements electricity 
     savings; and
       ``(2) in a case in which an entity described in paragraph 
     (1) is a nonprofit or educational organization, provide to 
     the entity 1 or more grants in lieu of a credit.

     ``SEC. 713. RENEWABLE PORTFOLIO STANDARD.

       ``(a) Renewable Energy.--
       ``(1) In general.--The Administrator, in consultation with 
     the Secretary of Energy, shall promulgate regulations 
     defining the types and sources of renewable energy generation 
     that may be carried out in accordance with this section.
       ``(2) Inclusions.--In promulgating regulations under 
     paragraph (1), the Administrator shall include of all types 
     of renewable energy (as defined in section 203(b) of the 
     Energy Policy Act of 2005 (42 U.S.C. 15852(b))) other than 
     energy generated from--
       ``(A) municipal solid waste;
       ``(B) wood contaminated with plastics or metals; or
       ``(C) tires.
       ``(b) Renewable Energy Requirement.--Of the base quantity 
     of electricity sold by each retail electric supplier to 
     electric consumers during a calendar year, the quantity 
     generated by renewable energy sources shall be not less than 
     the following percentages:

``Calendar year:                             Minimum annual percentage:
2008 through 2009.....................................................5
2010 through 2014....................................................10
2015 through 2019....................................................15
2020 and subsequent years............................................20

       ``(c) Renewable Energy Credit Program.--Not later than 1 
     year after the date of enactment of this title, the 
     Administrator shall establish--
       ``(1) a program to issue, establish the value of, monitor 
     the sale or exchange of, and track renewable energy credits; 
     and
       ``(2) penalties for any retail electric supplier that does 
     not comply with this section.
       ``(d) Prohibition on Double Counting.--A renewable energy 
     credit issued under subsection (c)--
       ``(1) may be counted toward meeting the requirements of 
     subsection (b) only once; and
       ``(2) shall vest with the owner of the system or facility 
     that generates the renewable energy that is covered by the 
     renewable energy credit, unless the owner explicitly 
     transfers the renewable energy credit.
       ``(e) Sale Under Purpa Contract.--If the Administrator, 
     after consultation with the Secretary of Energy, determines 
     that a renewable energy generator is selling electricity to 
     comply with this section to a retail electric supplier under 
     a contract subject to section 210 of the Public Utilities 
     Regulatory Policies Act of 1978 (16 U.S.C. 824a-3), the 
     retail electric supplier shall be treated as the generator of 
     the electric energy for the purposes of this title for the 
     duration of the contract.
       ``(f) State Programs.--Nothing in this section precludes 
     any State from requiring additional renewable energy 
     generation under any State renewable energy program.
       ``(g) Voluntary Participation.--The Administrator may issue 
     a renewable energy credit pursuant to subsection (c) to any 
     entity that is not subject to this section only if the entity 
     applying for the renewable energy credit meets the terms and 
     conditions of this section to the same extent as retail 
     electric suppliers subject to this section.

     ``SEC. 714. STANDARDS TO ACCOUNT FOR BIOLOGICAL SEQUESTRATION 
                   OF CARBON.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of title, the Secretary of Agriculture, with the 
     concurrence of the Administrator, shall establish standards 
     for accrediting certified reductions in the emission of 
     carbon dioxide through above-ground and below-ground 
     biological sequestration activities.
       ``(b) Requirements.--The standards shall include--
       ``(1) a national biological carbon storage baseline or 
     inventory; and
       ``(2) measurement, monitoring, and verification guidelines 
     based on--
       ``(A) measurement of increases in carbon storage in excess 
     of the carbon storage that would have occurred in the absence 
     of a new management practice designed to achieve biological 
     sequestration of carbon;
       ``(B) comprehensive carbon accounting that--
       ``(i) reflects sustained net increases in carbon 
     reservoirs; and

[[Page 1270]]

       ``(ii) takes into account any carbon emissions resulting 
     from disturbance of carbon reservoirs in existence as of the 
     date of commencement of any new management practice designed 
     to achieve biological sequestration of carbon;
       ``(C) adjustments to account for--
       ``(i) emissions of carbon that may result at other 
     locations as a result of the impact of the new biological 
     sequestration management practice on timber supplies; or
       ``(ii) potential displacement of carbon emissions to other 
     land owned by the entity that carries out the new biological 
     sequestration management practice; and
       ``(D) adjustments to reflect the expected carbon storage 
     over various time periods, taking into account the likely 
     duration of the storage of carbon in a biological reservoir.
       ``(c) Updating of Standards.--Not later than 3 years after 
     the date of establishment of the standards under subsection 
     (a), and every 3 years thereafter, the Secretary of 
     Agriculture shall update the standards to take into account 
     the most recent scientific information.

     ``SEC. 715. GLOBAL WARMING POLLUTION REPORTING.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of this title, and annually thereafter, any entity 
     considered to be a major stationary source (as defined in 
     section 169A(g)) shall submit to the Administrator a report 
     describing the emissions of global warming pollutants from 
     the entity for the preceding calendar year.
       ``(b) Voluntary Reporting.--An entity that is not described 
     in subsection (a) may voluntarily report the emissions of 
     global warming pollutants from the entity to the 
     Administrator.
       ``(c) Requirements for Reports.--
       ``(1) Expression of measurements.--Each global warming 
     pollution report submitted under this section shall express 
     global warming pollution emissions in--
       ``(A) metric tons of each global warming pollutant; and
       ``(B) metric tons of the carbon dioxide equivalent of each 
     global warming pollutant.
       ``(2) Electronic format.--The information contained in a 
     report submitted under this section shall be reported 
     electronically to the Administrator in such form and to such 
     extent as may be required by the Administrator.
       ``(3) De minimis exemption.--The Administrator may specify 
     the level of global warming pollution emissions from a source 
     within a facility that shall be considered to be a de minimis 
     exemption from the requirement to comply with this section.
       ``(d) Public Availability of Information.--Not later than 
     March 1 of the year after which the Administrator receives a 
     report under this subsection from an entity, and annually 
     thereafter, the Administrator shall make the information 
     reported under this section available to the public through 
     the Internet.
       ``(e) Protocols and Methods.--The Administrator shall, by 
     regulation, establish protocols and methods to ensure 
     completeness, consistency, transparency, and accuracy of data 
     on global warming pollution emissions submitted under this 
     section.
       ``(f) Enforcement.--Regulations promulgated under this 
     section may be enforced pursuant to section 113 with respect 
     to any person that--
       ``(1) fails to submit a report under this section; or
       ``(2) otherwise fails to comply with those regulations.

     ``SEC. 716. CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING 
                   COUNTRIES.

       ``(a) Definitions.--In this section:
       ``(1) Clean energy technology.--The term `clean energy 
     technology' means an energy supply or end-use technology 
     that, over the lifecycle of the technology and compared to a 
     similar technology already in commercial use in any 
     developing country--
       ``(A) is reliable; and
       ``(B) results in reduced emissions of global warming 
     pollutants.
       ``(2) Developing country.--
       ``(A) In general.--The term `developing country' means any 
     country not listed in Annex I of the United Nations Framework 
     Convention on Climate Change, done at New York on May 9, 
     1992.
       ``(B) Inclusion.--The term `developing country' may include 
     a country with an economy in transition, as determined by the 
     Secretary.
       ``(3) Task force.--The term `Task Force' means the Task 
     Force on International Clean, Low-Carbon Energy Cooperation 
     established under subsection (b)(1).
       ``(b) Task Force.--
       ``(1) Establishment.--Not later than 90 days after the date 
     of enactment of this title, the President shall establish a 
     task force to be known as the `Task Force on International 
     Clean, Low Carbon Energy Cooperation'.
       ``(2) Composition.--The Task Force shall be composed of--
       ``(A) the Administrator and the Secretary of State, who 
     shall serve jointly as Co-Chairpersons; and
       ``(B) representatives, appointed by the head of the 
     respective Federal agency, of--
       ``(i) the Department of Commerce;
       ``(ii) the Department of the Treasury;
       ``(iii) the United States Agency for International 
     Development;
       ``(iv) the Export-Import Bank;
       ``(v) the Overseas Private Investment Corporation;
       ``(vi) the Office of United States Trade Representative; 
     and
       ``(vii) such other Federal agencies as are determined to be 
     appropriate by the President.
       ``(c) Duties.--
       ``(1) Initial strategy.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this title, the Task Force shall develop and 
     submit to the President an initial strategy--
       ``(i) to support the development and implementation of 
     programs and policies in developing countries to promote the 
     adoption of clean, low-carbon energy technologies and energy-
     efficiency technologies and strategies, with an emphasis on 
     those developing countries that are expected to experience 
     the most significant growth in global warming pollution 
     emissions over the 20-year period beginning on the date of 
     enactment of this title; and
       ``(ii)(I) open and expand clean, low-carbon energy 
     technology markets; and
       ``(II) facilitate the export of that technology to 
     developing countries.
       ``(B) Submission to congress.--On receipt of the initial 
     strategy from the Task Force under subparagraph (A), the 
     President shall submit the initial strategy to Congress.
       ``(2) Final strategy.--Not later than 2 years after the 
     date of submission of the initial strategy under paragraph 
     (1), and every 2 years thereafter--
       ``(A) the Task Force shall--
       ``(i) review and update the initial strategy; and
       ``(ii) report the results of the review and update to the 
     President; and
       ``(B) the President shall submit to Congress a final 
     strategy.
       ``(3) Performance criteria.--The Task Force shall develop 
     and submit to the Administrator performance criteria for use 
     in the provision of assistance under this section.
       ``(d) Provision of Assistance.--The Administrator may--
       ``(1) provide assistance to developing countries for use in 
     carrying out activities that are consistent with the 
     priorities established in the final strategy; and
       ``(2) establish a pilot program that provides financial 
     assistance for qualifying projects (as determined by the 
     Administrator) in accordance with--
       ``(A) the final strategy submitted under subsection 
     (c)(2)(B); and
       ``(B) any performance criteria developed by the Task Force 
     under subsection (c)(3).

     ``SEC. 717. PARAMOUNT INTEREST WAIVER.

       ``(a) In General.--If the President determines that a 
     national security emergency exists and, in light of 
     information that was not available as of the date of 
     enactment of this title, that it is in the paramount interest 
     of the United States to modify any requirement under this 
     title to minimize the effects of the emergency, the President 
     may, after opportunity for public notice and comment, 
     temporarily adjust, suspend, or waive any regulations 
     promulgated pursuant to this title to achieve that 
     minimization.
       ``(b) Consultation.--In making an emergency determination 
     under subsection (a), the President shall, to the maximum 
     extent practicable, consult with and take into account any 
     advice received from--
       ``(1) the Academy;
       ``(2) the Secretary of Energy; and
       ``(3) the Administrator.
       ``(c) Judicial Review.--An emergency determination under 
     subsection (a) shall be subject to judicial review under 
     section 307.

     ``SEC. 718. EFFECT ON OTHER LAW.

       ``Nothing in this title--
       ``(1) affects the ability of a State to take State actions 
     to further limit climate change (except that section 209 
     shall apply to standards for vehicles); and
       ``(2) except as expressly provided in this title--
       ``(A) modifies or otherwise affects any requirement of this 
     Act in effect on the day before the date of enactment of this 
     title; or
       ``(B) relieves any person of the responsibility to comply 
     with this Act.''.

     SEC. 3. RENEWABLE CONTENT OF GASOLINE.

       Section 211(o) of the Clean Air Act (as amended by section 
     1501 of the Energy Policy Act of 2005 (Public Law 109-58; 119 
     Stat. 1067)) is amended--
       (1) in paragraph (1)--
       (A) by redesignating subparagraph (B) as subparagraph (E); 
     and
       (B) by inserting after subparagraph (A) the following:
       ``(B) Low-carbon renewable fuel.--The term `low-carbon 
     renewable fuel' means renewable fuel the use of which, on a 
     full fuel cycle, per-mile basis, and as compared with the use 
     of gasoline, achieves a reduction in global warming pollution 
     emissions of 75 percent or more.''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A)(i), by inserting ``and low-carbon 
     renewable fuel'' after ``renewable fuel''; and
       (B) in subparagraph (B)--

[[Page 1271]]

       (i) in clause (iv), by striking ``(iv) Minimum applicable 
     volume.--For the purpose of subparagraph (A), the applicable 
     volume'' and inserting the following:
       ``(iv) Minimum applicable volume of renewable fuel.--For 
     the purpose of subparagraph (A), the minimum applicable 
     volume of renewable fuel''; and
       (ii) by adding at the end the following:
       ``(v) Minimum applicable volume of low-carbon renewable 
     fuel.--For the purpose of subparagraph (A), the minimum 
     applicable volume of low-carbon renewable fuel for calendar 
     year 2015 and each calendar year thereafter shall be 
     5,000,000,000 gallons.''.

     SEC. 4. ENFORCEMENT AND JUDICIAL REVIEW.

       (a) Federal Enforcement.--Section 113 of the Clean Air Act 
     (42 U.S.C. 7413) is amended--
       (1) in subsection (a)(3), by striking ``or title VI,'' and 
     inserting ``title VI, or title VII,'';
       (2) in subsection (b)(2), by striking ``or title VI,'' and 
     inserting ``title VI, or title VII,'';
       (3) in subsection (c)--
       (A) in the first sentence of paragraph (1), by striking 
     ``or title VI (relating to stratospheric ozone control),'' 
     and inserting ``title VI (relating to stratospheric ozone 
     control), or title VII (relating to global warming pollution 
     emission reductions),''; and
       (B) in the first sentence of paragraph (3), by striking 
     ``or VI'' and inserting ``VI, or VII'';
       (4) in subsection (d)(1)(B), by striking ``or VI'' and 
     inserting ``VI, or VII''; and
       (5) in the first sentence of subsection (f), by striking 
     ``or VI'' and inserting ``VI, or VII''.
       (b) Establishment of Standards.--Section 202 of the Clean 
     Air Act (42 U.S.C. 7521) is amended--
       (1) by redesignating the second subsection (f) (as added by 
     section 207(b) of Public Law 101-549 (104 Stat. 2482)) as 
     subsection (n); and
       (2) by inserting after subsection (n) (as redesignated by 
     paragraph (1)) the following:
       ``(o) Global Warming Pollution Emission Reductions.--
       ``(1) In general.--Not later than January 1, 2010, the 
     Administrator shall promulgate regulations in accordance with 
     subsection (a) and section 707 to require manufacturers of 
     motor vehicles to meet the vehicle emission standards 
     established under subsections (a) and (b) of section 707.
       ``(2) Effective date.--The regulations promulgated under 
     paragraph (1) shall take effect with respect to motor 
     vehicles sold by a manufacturer beginning in model year 
     2016.''.
       (c) Administrative Proceedings and Judicial Review.--
     Section 307 of the Clean Air Act (42 U.S.C. 7607) is 
     amended--
       (1) in subsection (b)(1)--
       (A) in the first sentence--
       (i) by striking ``section 111,,'' and inserting ``section 
     111,''; and
       (ii) by inserting ``any emission standard or requirement 
     issued pursuant to title VII,'' after ``under section 120,''; 
     and
       (B) in the second sentence, by striking ``section 112,,'' 
     and inserting ``section 112,''; and
       (2) in subsection (d)(1)--
       (A) in subparagraph (T), by striking ``, and'' at the end;
       (B) in subparagraph (U), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(V) the promulgation or revision of any regulation under 
     title VII (relating to global warming pollution).''.

     SEC. 5. FEDERAL FLEET FUEL ECONOMY.

       Section 32917 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(3) New vehicles.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     each passenger vehicle purchased, or leased for a period of 
     at least 60 consecutive days, by an Executive agency after 
     the date of enactment of this paragraph shall be as fuel-
     efficient as practicable.
       ``(B) Waiver.--In an emergency situation, an Executive 
     agency may submit to Congress a written request for a waiver 
     of the requirement under paragraph (1).''.

     SEC. 6. INTERNATIONAL NEGOTIATIONS AND TRADE RESTRICTIONS.

       It is the sense of the Senate that the United States should 
     act to reduce the health, environmental, economic, and 
     national security risks posed by global climate change, and 
     foster sustained economic growth through a new generation of 
     technologies, by--
       (1) participating in negotiations under the United Nations 
     Framework Convention on Climate Change, done at New York May 
     9, 1992, and leading efforts in other international forums, 
     with the objective of securing participation of the United 
     States in agreements that--
       (A) advance and protect the economic and national security 
     interests of the United States;
       (B) establish mitigation commitments by all countries that 
     are major emitters of global warming pollution, in accordance 
     with the principle of ``common but differentiated 
     responsibilities'';
       (C) establish flexible international mechanisms to minimize 
     the cost of efforts by participating countries; and
       (D) achieve a significant long-term reduction in global 
     warming pollution emissions; and
       (2) establishing a bipartisan Senate observation group, the 
     members of which should be designated by the Chairman and 
     Ranking Member of the Committee on Foreign Relations of the 
     Senate, and which should include the Chairman and Ranking 
     Member of the Committee on Environment and Public Works of 
     the Senate--
       (A) to monitor any international negotiations on climate 
     change; and
       (B) to ensure that the advice and consent function of the 
     Senate is exercised in a manner to facilitate timely 
     consideration of any applicable treaty submitted to the 
     Senate.

     SEC. 7. REPORT ON TRADE AND INNOVATION EFFECTS.

       Not later than 2 years after the date of enactment of this 
     Act, and annually thereafter, the Secretary of Commerce, in 
     consultation with the United States Trade Representative, the 
     Secretary of the Treasury, the Secretary of Agriculture, the 
     Secretary of Energy, and the Administrator of the 
     Environmental Protection Agency (referred to in this section 
     as the ``Secretary''), shall prepare and submit to Congress a 
     report on the trade, economic, and technology innovation 
     effects of the failure of the United States to adopt measures 
     that require or result in a reduction in total global warming 
     pollution emissions in the United States, in accordance with 
     the goals for the United States under the United Nations 
     Framework Convention on Climate Change, done at New York on 
     May 9, 1992.

     SEC. 8. CLIMATE CHANGE IN ENVIRONMENTAL IMPACT STATEMENTS.

       In any case in which a Federal agency prepares an 
     environmental impact statement or similar analysis required 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), the Federal agency shall consider and 
     evaluate--
       (1) the impact that the Federal action or project 
     necessitating the statement or analysis would have in terms 
     of net changes in global warming pollution emissions; and
       (2) the ways in which climate changes may affect the action 
     or project in the short term and the long term.

     SEC. 9. CORPORATE ENVIRONMENTAL DISCLOSURE OF CLIMATE CHANGE 
                   RISKS.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Securities and Exchange Commission 
     (referred to in this section as the ``Commission'') shall 
     promulgate regulations in accordance with section 13 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78m) directing 
     each issuer of securities under that Act to inform securities 
     investors of the risks relating to--
       (1) the financial exposure of the issuer because of the net 
     global warming pollution emissions of the issuer; and
       (2) the potential economic impacts of global warming on the 
     interests of the issuer.
       (b) Uniform Format for Disclosure.--In carrying out 
     subsection (a), the Commission shall enter into an agreement 
     with the Financial Accounting Standards Board, or another 
     appropriate organization that establishes voluntary 
     standards, to develop a uniform format for disclosing to 
     securities investors information on the risks described in 
     subsection (a).
       (c) Interim Interpretive Release.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Commission shall issue an 
     interpretive release clarifying that under items 101 and 303 
     of Regulation S-K of the Commission under part 229 of title 
     17, Code of Federal Regulations (as in effect on the date of 
     enactment of this Act)--
       (A) the commitments of the United States to reduce 
     emissions of global warming pollution under the United 
     Nations Framework Convention on Climate Change, done at New 
     York on May 9, 1992, are considered to be a material effect; 
     and
       (B) global warming constitutes a known trend.
       (2) Period of effectiveness.--The interpretive release 
     issued under paragraph (1) shall remain in effect until the 
     effective date of the final regulations promulgated under 
     subsection (a).

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