[Senate Report 104-157]
[From the U.S. Government Publishing Office]
104th Congress 1st SENATE Report
Session
104-157
_______________________________________________________________________
Calendar No. 206
AMTRAK AND LOCAL RAIL REVITALIZATION ACT OF 1995
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 1318
October 12 (legislative day, October 10), 1995.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
One Hundred Fourth Congress
first session
LARRY PRESSLER, South Dakota,
Chairman
ERNEST F. HOLLINGS, South Carolina BOB PACKWOOD, Oregon
DANIEL K. INOUYE, Hawaii TED STEVENS, Alaska
WENDELL H. FORD, Kentucky JOHN McCAIN, Arizona
J. JAMES EXON, Nebraska CONRAD BURNS, Montana
JOHN D. ROCKEFELLER IV, West VirginiaSLADE GORTON, Washington
JOHN F. KERRY, Massachusetts TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana KAY BAILEY HUTCHISON, Texas
RICHARD H. BRYAN, Nevada OLYMPIA SNOWE, Maine
BYRON L. DORGAN, North Dakota JOHN ASHCROFT, Missouri
Patric G. Link, Chief of Staff
Kevin G. Curtin, Democratic Chief
Counsel and Staff Director
(ii)
Calendar No. 206
104th Congress Report
SENATE
1st Session 104-157
_______________________________________________________________________
AMTRAK AND LOCAL RAIL REVITALIZATION ACT OF 1995
_______
October 12 (legislative day, October 10), 1995.--Ordered to be printed
_______________________________________________________________________
Mr. Pressler, from the Committee on Commerce, Science, and
Transportation, submitted the following original bill; which was read
twice and placed on the calendar
R E P O R T
[To accompany S. 318]
The Committee on Commerce, Science, and Transportation, to
which was referred the original bill (S. 318) to reform the
statutes relating to Amtrak, to authorize appropriations for
Amtrak, and for other purposes, having considered the same,
reports favorably thereon and recommends that the bill do pass.
Purpose of the Bill
The bill, as reported, would authorize appropriations of $772
million for fiscal year (FY) 1995, $712 million in each of FYs
1996 through 1998, and $403 million for FY 1999 for Amtrak's
general operating expenses and capital expenditures; and of
$200 million for each of FYs 1995 through 1999 for Northeast
Corridor improvements. Also, for FYs 1996 through 1999, the
bill would authorize appropriations of $50 million per year for
Amtrak's participation in the $1 billion loan guarantee program
created by Section 511 of the Railroad Revitalization and
Regulatory Reform Act of 1976. Finally, the bill would
authorize $25 million in appropriations for the Local Rail
Freight Assistance program (LRFA), for FY 1996 and each
subsequent fiscal year.
With regard to rail passenger service, the bill is intended
to enable Amtrak to operate as much like a private business as
possible, with a view toward elimination of its need for
Federal operating support by the fifth year after the date of
enactment. Specifically, the bill provides for Amtrak reforms
in the areas of procurement, operations, employee protection,
use of railroad facilities, financial management, revenue
enhancement including commercial diversification, and taxation.
The bill also would create an Amtrak Reform Council (ARC)
responsible for reviewing, at the end of three years, whether
Amtrak (1) is meeting certain financial goals; (2) will be able
to continue to operate as a national passenger rail system; and
(3) is likely not to require Federal operating funds after the
fifth anniversary of enactment. The ARC's assessment of
Amtrak's success or failure at that point would trigger
implementation of a plan to continue, privatize or liquidate
Amtrak no later than the fifth year after enactment. Congress
would have 45 days upon receiving the ARC's recommended plan in
which to disapprove it.
With rail freight service, the bill as reported is intended
to address freight rail infrastructure needs in neglected
regions of the country. In addition to permanently authorizing
LRFA, it would provide for emergency funding for rail lines
damaged by natural disasters and otherwise expand the types of
projects eligible for funding. The bill also would make the
Section 511 loan guarantee program more compatible with the
needs of railroads.
Background and Needs
In 1970, the Rail Passenger Service Act (RPSA) was enacted.
The law created Amtrak in order to relieve the freight railroad
industry from the economic burden of providing ongoing
passenger service and to ensure that modern, efficient
intercity passenger rail service would continue to be a part of
the national transportation system. Since 1971, Amtrak has
received $13 billion in Federal funding to help cover its
operating, capital, and labor protective costs.
In 1994, the General Accounting Office (GAO) testified before
several Congressional committees that Amtrak's financial and
operating conditions had deteriorated, seriously threatening
the corporation's ability to provide acceptable service. GAO
found a widening gap between Amtrak's revenues and expenses
beginning in 1990 in spite of increasing Federal support.
Amtrak's passenger revenues lagged $600 million behind those
projected between 1991 and 1994, due to factors including an
economic recession, declining quality of Amtrak service and
equipment, disruptions caused by the 1993 Midwestern floods,
unanticipated expenses related to several rail crashes, and
increased fare competition from airlines. Amtrak responded by
drawing down cash resources, deferring maintenance on equipment
and reducing staffing levels and some services. However, its
1994 deficit exceeded the Federal operating grant by $76
million.
On December 14, 1994, responding to a projected cash
shortfall of $200 million by June 1995, the Amtrak Board of
Directors approved an aggressive ``strategic and business
plan'' to improve its service quality and productivity and
eventually reduce its overall annual expenses by $364 million.
Under the plan, Amtrak would adjust routes and reduce train
miles of service by 21 percent. Amtrak would replace much of
its ``Heritage fleet,'' the older passenger and baggage cars
inherited from the freight railroads 25 years ago. (The average
age of these cars, which make up 43 percent of Amtrak's 2,000
car fleet, is 34 years. Amtrak's passenger cars alone average
40 years in age.) Finally, Amtrak would terminate approximately
900 non-union and 4,600 union positions out of a total
workforce of 25,000 employees.
A full Committee hearing on Amtrak Oversight was chaired by
Senator Pressler on January 26, 1995. Witnesses at the hearing
included representatives of the Administration, GAO, the
National Association of Railroad Passengers, state and local
governments, rail labor, and Amtrak. During the hearing, Amtrak
President Tom Downs explained that about 26 percent of the
savings anticipated by the strategic and business plan would
depend upon collective bargaining or legislative changes. Even
if the plan were fully implemented, Amtrak would expect a $2.5
billion operating shortfall through the year 2000 at a current
Federal subsidy level of about $1 billion annually. This
subsidy level would not address unmet capital needs over the
next five years of nearly $4 billion across the national rail
passenger system, including about $2.35 billion on the Amtrak-
owned Northeast Corridor.
At the request of Senators Pressler and Lott, Amtrak
sponsored a series of seven locally-hosted regional forums
around the nation between late March and early May of 1995.
These forums sought ideas and suggestions from Americans, in
both rural and urban settings, regarding comprehensive, long-
term reform of Amtrak in order to maintain and improve a
national rail passenger system. A follow-up workshop involving
a 22-member team of both local hosts and presenters from each
of the seven regional forums was conducted in Washington, DC,
on May 17th and 18th to develop specific recommendations for
Congress.
During a June 16th Surface Transportation and Merchant Marine
Subcommittee hearing chaired by Senator Lott on ``The Future of
Amtrak and Local Rail Freight Assistance'', John Robert Smith,
Mayor of Meridian, MS, presented the following recommendations
from the workshop report, ``Listening to America: Regional
Public Forums on the Future of Passenger Rail Service in
America - 1995'':
1. Congress should modify and/or eliminate
legislative restrictions that do not apply to
businesses other than Amtrak.
2. Congress should establish a Federal passenger rail
trust fund to support intercity passenger rail and
intermodal facilities.
3. One cent of the Federal gas tax now designated for
deficit reduction (expiring 10/1/95) should be
dedicated instead to an intercity passenger rail trust
fund.
4. Intercity rail passenger user fees should be
assessed and put in an intercity rail passenger trust
fund.
5. Congress should allow interstate compacts to
promote rail passenger service.
6. Congress should permit states flexibility to use
Federal surface transportation funds for intercity
passenger rail services within their state.
7. Congress should adopt Amtrak/freight liability
limitations proposals.
8. Congress should amend rail labor laws to limit to
two the number of unions certified for collective
bargaining with Amtrak.
9. Amtrak should provide on-time performance
incentives for freight railroads; Congress should
exempt incentive payments to freight railroads from
Federal income tax.
10. Amtrak should pursue profitable entrepreneurial
activities and sales of services.
11. Amtrak should identify market opportunities,
customized services potential, and use sophisticated
market research and analysis in its business planning.
12. Amtrak should listen to its customers and
aggressively pursue their ideas, for example, create a
``frequent train rider'' program.
13. Amtrak should expand private provision and
development of on-board customer services, including
food, beverage and communications, once statutory
prohibitions are removed.
During the June 16th hearing, representatives of the
Administration, the American Bus Association, rail labor, the
Association of American Railroads and Amtrak commented on the
Regional Forum Workshop recommendations and on the provisions
of H.R. 1788, the Amtrak Reform and Privatization Act of 1995
introduced by Congresswoman Susan Molinari and reported by the
House Rail Subcommittee on May 25th; S. 675, the Rail
Investment and Efficiency Act of 1995, introduced by Senators
Exon, Dorgan, Kerry and Moynihan on April 4th, and S. 693, the
Amtrak Restructuring Act of 1995, introduced by Senator
Hollings at the request of the Administration on April 6th.
During the June 16th hearing, Amtrak's President expressed
optimism that the earlier anticipated $200 million cash
shortfall could be avoided in FY 1995. He reiterated, however,
that Amtrak's long-term survival depends upon enactment of the
major legislative reforms included in Amtrak's FY 1996
Legislative Program and the Regional Forum Workshop
recommendations. The bill as reported incorporates Amtrak and
Regional Forum Workshop recommendations which would enable
Amtrak to make up as much as $1.123 billion of its $2.5 billion
projected deficit over the next five years.
It is intended that no single Amtrak stakeholder bear a
disproportionate share of the responsibility for reducing
Amtrak's deficit. Under the bill as reported, the burden would
be shared more equitably by Amtrak management, labor and
passengers; Federal, state, and local governments; and the
American taxpayer. Specifically, implementation of Amtrak's
strategic and business plan is projected to save another $1.57
billion over the five-year period through further reductions in
Amtrak management personnel, route and service adjustments,
pricing changes, and other internal efficiencies. Implementing
fully-allocated cost recovery for commuter services provided by
Amtrak on the Northeast Corridor would make up at least $170
million of Amtrak's projected five-year deficit. Increased
State contributions across the rest of the Amtrak system would
constitute another estimated $200 million. Immediate
availability of Amtrak appropriations would contribute $15
million. Transferring responsibility for excess mandatory
railroad retirement and unemployment insurance payments to the
Secretary of Transportation would remove a $650 million burden
from Amtrak. Other creative commercial activities encouraged by
the bill as reported, particularly the purchase and sale of
power in the Northeast Corridor, would contribute substantially
to Amtrak's financial viability, although precise amounts are
difficult to estimate.
Elimination of Federal operating subsidies will require an
estimated savings of $550 million in labor-related costs over
five years. The bill as reported assumes an unknown cost
savings from Amtrak being permitted to contract out for some
services now provided by its own workforce. The extent to which
Amtrak will realize savings from contracting out will depend on
negotiations between Amtrak and its employees. Indeed, Amtrak
cannot meet the financial challenges inherent in the
legislation, unless Amtrak's employees are willing to cooperate
to find cost reductions in other areas as well, including less
restrictive work rules to permit greater cross-utilization of
employees, reduction in train and engine manning requirements,
the structuring of a more cost-effective health insurance plan
after obtaining data on the claims experience of its employees,
and a better correlation between pay increases and productivity
improvements. Collective bargaining of these issues will need
to be pursued vigorously so new agreements can take effect and
Amtrak can begin realizing costs savings quickly. Optimally,
new agreements should be in place within the first year
following enactment of this legislation.
The bill as reported also would create an Intercity Rail
Passenger Account. This represents a critical element of the
plan to save Amtrak and reduce its dependency on Federal
subsidies given Amtrak projections that an expenditure of at
least $4 billion is required over the next five years to bring
its Northeast Corridor infrastructure up to a basic ``state of
good repair'' and to purchase the new equipment and locomotives
needed for the rest of the national system. Redirecting one-
half penny of the per gallon gasoline tax dedicated to deficit
reduction through October 1, 1995, to this Intercity Rail
Passenger Account could raise up to $675 million annually for
Amtrak capital needs.
During the June 16th hearing, the Subcommittee also addressed
the importance of Federal involvement in preserving our
nation's shortline and regional rail freight infrastructure
through the continuation of the LRFA program, the Section 511
loan guarantee program, and other initiatives. Representatives
of the South Dakota Department of Transportation, the American
Short Line Railroad Association and the Regional Railroads of
America discussed the need for investment capital to maintain
secondary rail lines serving smaller cities and rural areas.
LRFA was created in 1973 to provide matching funds to help
states save rail lines that otherwise would be abandoned. Its
matching requirements enable limited Federal, state and local
resources to be leveraged. The LRFA program promotes investment
partnerships, maximizing very limited Federal assistance to
advance infrastructure improvements.
LRFA has been a very popular program since it has been the
only Federal program that provides infrastructure investment in
short-line and regional railroads in the absence of Section 511
appropriations. According to the Federal Railroad
Administration (FRA), in FY 1995, 31 states requested LRFA
assistance for 59 projects--totaling more than $32 million in
funding requests. Less than one-third of the amount of funding
requested was available to meet these rail infrastructure
needs.
With continued railroad restructuring, legitimate funding
needs will only increase. According to a 1993 report by the FRA
on Small Railroad Investment Goals and Financial Options, an
estimated funding shortfall of $440 million exists among the
Class II and Class III railroads for necessary rehabilitation
projects.
The bill as reported includes the provisions of S. 920, the
Rail Infrastructure Preservation Act of 1995, introduced by
Senator Pressler on June 14th. It is intended to provide a
blueprint for rebuilding and improving rail infrastructure on
lines served by regional and short line railroads by
permanently authorizing LRFA and by improving the Section 511
loan guarantee program.
Summary of Major Provisions
Specifically, the bill as reported includes the following
major provisions:
1. Procurement and Labor Reforms.--The bill as reported
includes a 180-day negotiating timeframe for determining which
non-food and beverage services now provided by Amtrak workers
could be contracted out. The bill would use baseball-style
arbitration as a last resort, should regular negotiations fail,
wherein a neutral arbitrator would review and choose between
the last best offers submitted by labor and Amtrak management.
The decision of the arbitrator would be binding. Statutory
employee protective arrangements providing up to six years'
severance pay to rail workers affected by route discontinuances
would be reduced to six months' pay, and this cap would apply
to all of Amtrak's labor protection obligations--statutory or
contractual.
2. Operational Reforms.--Amtrak would be instructed to strive
to operate as a national rail passenger transportation system
which provides access and intermodal linkage to all areas of
the country. The existing 403(b) program would be repealed on
the basis that states now are negotiating directly with Amtrak
regarding the provision of such service without regard to
matching formulas. Amtrak would be required to give 180 days'
notice prior to discontinuance of routes to give states the
opportunity to share or assume the cost of such service. States
on the Northeast Corridor, within two years of enactment, would
be required to pay ``fully allocated costs'' for services
provided by Amtrak. States would have full access to Amtrak's
records to confirm the amount of payments owed.
3. Liability Reform.--The bill as reported would authorize
Amtrak to establish ``contracts'' with its passengers to limit
claims related to rail passenger transportation to no less than
the limits established by the Senate-passed product liability
reform legislation (i.e., punitive damages, where permitted,
equal to 2 times compensatory damages or $250,000, whichever is
greater). Amtrak passengers could purchase supplemental
insurance coverage when they purchase Amtrak tickets or at the
point of departure.
4. Amtrak Sunset Trigger.--A Presidentially appointed Amtrak
Reform Council (ARC), modelled after the Base Closing
Commission concept, would review and report to Congress
annually on Amtrak's progress toward eliminating the need for
Federal operating support within five years of enactment. Based
on an assessment of Amtrak's success or failure at the end of
three years, the Council would submit to Congress a plan for
Amtrak's continuation or liquidation after the fifth
anniversary of enactment. Implementation of the final ARC plan
would begin 45 days after its submission, unless rejected by
Congress within that time.
5. Financial Reforms.--Federal appropriations would be
disbursed immediately to Amtrak upon request. Payments for
excess railroad retirement and unemployment taxes would become
the responsibility of the Department of Transportation (DOT),
Amtrak would remain liable, however, for any obligations not
paid by DOT due to inadequate appropriations in order to assure
the continuation of all retirement benefits. In any event,
payment of these taxes would not be considered a Federal
subsidy of Amtrak.
6. Commercial Diversification.--Amtrak would be encouraged to
increase non-Federal revenues through sale of concessions and
use of vending machines and video and audio equipment on
trains; sale of advertising; telecommunications network use;
and the purchase and sale of power and other creative marketing
and service activities.
7. Fiscal Revitalization.--An Intercity Rail Passenger
Account would be created to provide a stable source of capital
support for Amtrak and rail passenger services in states not
currently served by Amtrak. The account would receive funds
from several sources, including one-half cent of the per gallon
fuel taxes that are now deposited into general revenues, but
that, on October 1, 1995, are slated to contribute to the
excess funding in the mass transit account. Tax incentives
would be created to encourage State and local government
support and private sector investment in Amtrak. Amtrak would
be permitted to issue tax free debt.
8. Preservation of Rail Infrastructure.--LRFA would be
permanently authorized at a funding level of $25 million
annually and made available for emergency funding related to
natural disasters, closing or improving grade crossings, and
creating State-supervised grain car pools. The existing Section
511 railroad loan guarantee program would be made more ``user
friendly''.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 20, 1995.
Hon. Larry Pressler,
Chairman, Committee on Commerce, Science, and Transportation, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed revised cost estimate for the Amtrak and
Local Rail Revitalization Act of 1995. On August 11, 1995, CBO
transmitted a cost estimate of this bill. This cost estimate
reflects subsequent changes to the bill.
Enacting this bill would affect direct spending and
receipts. Therefore, pay-as-you-go procedures would apply to
the bill.
If you wish further details on this estimate, we will be
pleased to provide them.
Sincerely,
James L. Blum
(For June E. O'Neill, Director).
Enclosure.
congressional budget office cost estimate
1. Bill number: Not yet assigned.
2. Bill title: Amtrak and Local Rail Revitalization Act of
1995.
3. Bill status: As ordered reported by the Senate Committee
on Commerce, Science, and Transportation on July 20, 1995.
4. Bill purpose: In general, the bill would restructure
Amtrak's operations and reauthorize federal subsidies for
Amtrak. Specifically, the bill would try to decrease Amtrak's
reliance on federal operating subsidies by decreasing its costs
and increasing its revenue. This goal would be supported by
several provisions:
Allowing Amtrak to contract out for services--a
practice that is prohibited under current law--rather
than provide them internally;
Terminating the requirement that Amtrak's route
discontinuances and additions comply with established
criteria and requiring Amtrak to give states a 180-day
notice before discontinuing routes, rather than a 90-
day notice as currently stipulated in law;
Terminating the requirements that Amtrak provide
commuter service in areas specified in law (referred to
as section 403 (d) service) and subsidize certain
passenger rail routes that are requested by states
(referred to as section 403(b) service);
Prohibiting cross-subsidization between Amtrak,
freight railroads, and commuter rail authorities on the
Northeast Corridor starting two years after enactment
of the bill;
Restricting labor protection, including limiting
severance pay, from 6 years to 6 months for Amtrak
employees;
Establishing new procedures for settling punitive or
exemplary damages claimed against Amtrak;
Allowing Amtrak to purchase electricity without being
regulated by the state utility commissions;
Allowing Amtrak to use the Northeast Corridor's
electrical lines to transfer power between electrical
utility companies; and
Establishing an Amtrak Reform Council, which would
determine the fate of Amtrak, subject to a
Congressional veto. If the council determines that
Amtrak cannot provide passenger rail service throughout
the country and operate without federal operating
subsidies in five years, the Secretary of
Transportation would have to carry out a plan,
developed by the council, to liquidate Amtrak within
five years.
The bill contains other provisions that would affect
federal outlays. These provisions would:
Transfer 0.5 cents per gallon of the existing
gasoline tax to Amtrak for capital improvements;
Transfer all the unexpended funds appropriated for
the Northeast Corridor Improvement Project to Amtrak so
that Amtrak can earn interest on these funds until they
are expended;
Transfer all subsidies to Amtrak upon appropriation
so that Amtrak can earn interest on these funds until
they are expended;
Authorize appropriations over the next four years
totaling $2.5 billion for Amtrak operating and capital
grants, $800 million for Northeast Corridor grants, and
$200 million to guarantee Amtrak loans;
Authorize an annual appropriation of $25 million to
assist freight railroads for fiscal year 1996 and each
year thereafter; and
Change the conditions under which the federal
government would guarantee loans for freight railroads.
The bill also contains tax provisions that would:
Exempt Amtrak passengers and clients from paying
state and local taxes and fees;
Reduce Amtrak's tax liability for railroad retirement
and unemployment if funds are appropriated for the
Secretary of Transportation to make these payments;
Reaffirm the tax-exempt status of commuter railroads;
Give railroads a tax break for payments from Amtrak
for ensuring that Amtrak's trains are on-time when
Amtrak uses the railroads' track;
Refund to Amtrak the diesel fuel taxes it pays the
federal government;
Change the tax treatment of leased property; and
Make Amtrak's debt tax-exempt.
5. Estimated cost to the Federal Government: The following
table summarizes the impact this bill would have on federal
spending. The revenue estimates will be provided by the Joint
Committee on Taxation. Over the next five years this bill would
increase direct spending by $3.8 billion and authorize
appropriations totaling $4.3 billion.
----------------------------------------------------------------------------------------------------------------
1995 1996 1997 1998 1999 2000
----------------------------------------------------------------------------------------------------------------
REVENUES
Tax Provisions............................................ (\1\) (\1\) (\1\) (\1\) (\1\) (\1\)
DIRECT SPENDING
Estimated Budget Authority:
Transfer of Gasoline Tax Receipts..................... ....... 720 736 751 766 781
Northeast Corridor Transfer........................... .......
Amtrak Grant Transfer................................. .......
-----------------------------------------------------
Total............................................... ....... 720 736 751 766 781
=====================================================
Estimated Outlays:
Transfer of Gasoline Tax Receipt...................... ....... 720 736 751 766 781
Northeast Corridor Transfer........................... ....... 238 -145 -53 -30 -10
Amtrak Grant Transfer................................. ....... 61 -61 .......
-----------------------------------------------------
Total............................................... ....... 1,019 530 698 736 771
SPENDING SUBJECT TO APPROPRIATIONS
Spending Under Current Law:
Budget Authority \2\.................................. 1,004 .......
Estimated Outlays..................................... 983 382 212 55 31 10
Proposed Changes:
Authorization Level................................... ....... 1,122 1,107 1,107 798 145
Estimated Outlays..................................... ....... 1,087 1,095 1,107 798 165
Spending Under this Bill:
Authorization Level \2\............................... 1,004 1,122 1,107 1,107 798 145
Estimated Outlays..................................... 983 1,469 1,307 1,162 829 175
----------------------------------------------------------------------------------------------------------------
\1\ The Joint Committee on Taxation will provide these estimates at a later date.
\2\ The 1995 level is the amount appropriated for that year.
The costs of this bill fall within budget function 400.
6. Basis of Estimate: Revenues.--Tax estimates will be
provided by the Joint Committee on Taxation.
Direct spending.--Transferring 0.5 cents per gallon of the
federal gasoline tax to Amtrak would cost the federal
government an estimated $3.8 billion from fiscal year 1996
through fiscal year 2000. Under current law, 2 cents per gallon
of the gasoline tax will be deposited in the Mass Transit
Account of the Highway Trust Fund. We estimate that these taxes
would average about $3 billion per year over the next five
years. Hence, the bill's provision to direct 0.5 cents per
gallon to Amtrak would increase federal outlays by one-quarter
of those annual amounts, an average of about $750 million per
year. Finally, transferring these funds would reduce the amount
of funds available to be spent on transit programs. However,
the Mass Transit Account would still have sufficient funds to
maintain obligation limitations at 1995 levels through 2000.
Under current law, CBO estimates the unexpended balance for
the Northeast Corridor Improvement Project will be $470 million
at the end of fiscal year 1995; these funds will be transferred
to Amtrak as bills come due. This bill would transfer these
balances to Amtrak upon enactment so that Amtrak can earn
interest on the funds until they are expended. The transfer
would not increase outlays over time but would cause outlays to
occur earlier than they would have otherwise. CBO estimates
that $238 million of the unexpended balances that would be
expended between 1997 and 2000 under current law would be
expended in 1996 if this bill is enacted.
Similarly, the bill would allow Amtrak to receive and earn
interest on any unexpended funds from its opening and capital
appropriations for 1995. CBO estimates that the funds
transferred would total $196 million, but $135 million of these
funds would be expended in 1996 under current law anyway.
Therefore, only $61 million of outlays would be shifted from
1997 to 1996 because of these provisions.
The cash management principles outlined in Title 31 of the
United States Code requires an entity to pay the federal
government any interest that it earns with federal money. It is
unclear to CBO if these transfer provisions supersede Title 31.
For the purpose of this estimate, CBO assumes that the bill's
provisions would supersede Title 31, and therefore, we do not
project any payments from interest to the federal government.
Authorization of appropriations.--For purposes of this
estimate, CBO assumes that the full amounts authorized would be
appropriated at the start of each fiscal year. If this bill is
enacted, the outlay rates for Amtrak grants and Northeast
Corridor grants would increase to 100 percent because the bill
would allow Amtrak to receive all the funds up front in order
to earn interest on them. However, it is unclear if this
provision supersedes the cash management principles outlined in
Title 31 of the United States Code. For the purpose of this
estimate, CBO assumes that the bill's provisions would
supersede Title 31, and therefore, we do not project any
payments from interest to the federal government.
The bill would authorize appropriations of $50 million each
year for fiscal years 1996 through 1999 for the cost of
guaranteeing loans to Amtrak. Based on information provided by
Amtrak, CBO projects that the loans to Amtrak guaranteed by the
federal government would be disbursed over three years. The
amount of loan guarantees that $50 million of subsidy funds
would support is very uncertain for Amtrak. Because Amtrak is
in financial trouble and these guaranteed loans would likely be
subordinated to existing debt, the probability of default would
be very high. However, the bill gives Amtrak permanent
assistance from transfers of gasoline tax revenues, which would
decrease the probability of default.
The estimated outlays for local rail freight assistance are
based on the historical rates of spending for this program. CBO
estimates that the operations of the Amtrak Reform Council
would cost the federal government between $300,000 and $500,000
per year. Finally, the modifications to the conditions under
which loan guarantees would be given to freight railroads would
decrease the federal government's protection against defaults
and increase the cost to the federal government if loans
guarantees are provided in the future.
Possible Amtrak liquidation.--Subject to a Congressional
veto, this bill would direct the Secretary of Transportation
and Amtrak to liquidate Amtrak if the Amtrak Reform Council
finds that Amtrak cannot provide passenger rail service
throughout the country without an operating subsidy in five
years. Under current budgetary treatment, Amtrak is not a
federal entity, and its operations are not included in the
budget beyond the operating and capital subsidies that it
receives. If liquidation were to occur, the transfer of
receipts from the gasoline tax would cease. In addition, the
federal government could obtain receipts from the preferred
stock that it owns and the lien it has on the right of way for
the Northeast Corridor; however, CBO believes that obtaining
significant receipts is extremely unlikely. Alternatively, it
is possible that the courts would decide that Amtrak is a
federal entity and is liable for any of Amtrak outstanding
liabilities. This bill however, would reduce one of the
potentially largest liabilities--labor protection. For the
purpose of this estimate, CBO assumes operations will continue.
7. Pay-as-you-go considerations: Section 252 of the
Balanced Budget and Emergency Deficit Control Act of 1985 sets
up pay-as-you-go procedures for legislation affecting direct
spending or receipts through 1998. CBO estimates that enacting
this bill would increase direct spending by transferring
gasoline tax money and unexpected funds to Amtrak. The
following table summarizes CBO's estimate of the bill's pay-as-
you-go effect.
------------------------------------------------------------------------
1995 1996 1997 1998
------------------------------------------------------------------------
Change in outlays........... 0 1,019 530 698
Change in receipts.......... (\1\) (\1\) (\1\) (\1\)
------------------------------------------------------------------------
\1\ Revenue estimates will be provided by the Joint Committee on
Taxation.
In addition, if this bill is enacted after the 1996
transportation bill, additional direct spending will occur. If
the appropriations bill is enacted first, this bill would
increase the outlay rates for Amtrak and Northeast Corridor
Grants.
8. Estimated cost to State and local governments: Most
sections of the bill affecting state and local governments
(primarily commuter authorities) would make it more expensive
for them to provide rail service within their jurisdictions. To
the extent that state and local governments choose to maintain
current levels of commuter service, these provisions would
shift costs from Amtrak to local authorities. CBO is unable to
predict the likelihood or magnitude of any resulting costs at
this time. The bill would preempt local and state governments
from collecting sales taxes on interstate services provided by
Amtrak. The bill does not impose any new enforceable duties on
state and local governments.
Section 102 of the bill would prohibit Amtrak from
submitting below-cost bids to provide certain services for
local governments and commuter authorities. There is no such
prohibition in current law. To the extent that Amtrak would
have made below-cost bids on future contracts, state and local
transportation authorities would have to pay more for
contracted services. This provision would apply primarily to
Amtrak's seven commuter rail contracts, which generated $270
million in revenues in fiscal year 1994. Because it is unclear
whether Amtrak actually does bid below cost on contracts, CBO
cannot estimate the effect this change would have on commuter
authorities.
Section 201 of the bill would end the requirement that
Amtrak continue to provide special commuter transportation
under section 403(d) of the Rail Passenger Service Act. Under
current law, Amtrak must provide this service as long as the
short-term avoidable loss on a route does not exceed a specific
threshold. According to Amtrak officials, all 403(d) services
currently run by Amtrak either cover their short-term avoidable
losses or are already fully supported by states. Therefore,
this change would not shift any costs to state or local
governments.
Sections 203 and 204 of the bill would end Congressional
review of changes to Amtrak's route and service criteria and
end additional route requirements. State and local governments
would face higher costs if they decided to pay for the
provision of any services that Amtrak discontinued as a result
of these changes. We currently have no information on which
routes, if any, Amtrak would discontinue if these changes were
to become law. Furthermore, we cannot estimate how states and
local governments would respond to Amtrak's decisions.
Therefore, CBO cannot estimate the budget impact on these
changes.
Section 205 of the bill would end the requirement that
Amtrak consider applications from state and local governments
to provide or continue to provide services under section 403(b)
of the Rail Passenger Service Act. Currently, Amtrak may
approve such applications if the applicants agree to pay a
certain share of short-term avoidable losses or capital costs
that Amtrak incurs by providing the services. This section also
would allow Amtrak to end agreements reached prior to the
enactment of this change. In fiscal year 1993, Amtrak absorbed
approximately $82 million in losses on services of this kind.
Amtrak officials say that losses have been smaller since then,
because some state and local governments have agreed to bear
larger shares of the costs. If Amtrak renegotiated all
agreements that are currently generating losses, the costs
shifted to state and local governments would be somewhat less
than $82 million annually. State and local governments would
not be compelled to continue these services, however.
Section 207 of the bill would affect the way Amtrak charges
other carriers and commuter authorities for services it
provides on its Northeast Corridor right-of-way. Amtrak
estimates that, in total, this change would increase commuter
authority payments from about $60 million to about $90 million
annually. In discussions with CBO, officials of commuter
authorities noted that the actual increase in payments could be
substantially different from this estimate, because it would be
determined by separate negotiations with each of the commuter
authorities.
Section 507 of the bill would exempt Amtrak's passengers
and customers from most state and local taxes, fees, or
charges, whereas current law exempts only Amtrak and its
subsidiaries. This section would prohibit new state or local
taxes of any kind on Amtrak services. An April 1995 Supreme
Court ruling upheld the right of states to place unapportioned
sales taxes on interstate bus tickets. This ruling could be
used to justify state taxes on Amtrak's interstate passenger
tickets and possibly on its interstate mail or freight
transportation services. Therefore, this change would preempt
state and local taxing authority and would foreclose a
potential source of state and local revenues. In fiscal year
1994, Amtrak collected about $830 million from ticket sales and
about $60 million from mail and express services.
Section 615 would allow states to enter into interstate
compacts to retain existing intercity passenger rail services
or create new services. These compacts could finance their
activities by issuing notes or bonds. This change would make it
easier for states to provide any services discontinued by
Amtrak.
Finally, Section 803 of the bill would make it easier for
Amtrak to raise revenue through the sale or transmission of
electric power. Commuter authorities might be able to buy
electricity from Amtrak more cheaply than they currently
purchase it from electric utility companies, although it would
be difficult to estimate the amount of savings that would
occur.
9. Estimate comparison: None.
10. Previous CBO estimate: On August 11, 1995, CBO
transmitted a cost estimate of this bill as ordered reported by
the Senate Committee on Commerce, Science, and Transportation
on July 20, 1995. This revised estimate reflects subsequent
changes to the bill. The proposed tax relief from railroad
retirement and unemployment taxes would now be contingent on
funds being appropriated to the Secretary of Transportation to
make these payments for Amtrak. The federal government would
not forgive the debt owed by the Union Station Redevelopment
Corporation. Finally, Amtrak passengers and clients would not
be exempted from intrastate sales taxes.
11. Estimate prepared by: Federal cost estimate, John
Patterson; State and local cost estimate, Pepper Santalucia.
12. Estimate approved by: Paul N. Van de Water, Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported.
NUMBER OF PERSONS COVERED
The bill as reported would authorize appropriations for
Amtrak operating expenses and capital expenditures for fiscal
years 1995 through 1999. As this legislation is intended to
enable Amtrak to continue to operate as a national rail
passenger system serving all areas of the country, the number
of persons covered should be consistent with current levels.
Section 101 of the bill as reported would remove the
statutory prohibition against Amtrak contracting out for non-
food work now done by Amtrak employees. Amtrak and its
employees would negotiate rules stating under what conditions,
if any, Amtrak may contract out for such work. In any event,
the number of persons required to provide Amtrak services,
whether directly employed or under contract, is likely to be
similar.
ECONOMIC IMPACT
Title VII of the bill as reported authorizes appropriations
at levels similar to or less than previously authorized for
Amtrak. The $25 million authorized annually for LRFA is less
than the $30 million authorized in FY 1994, the last year in
which a specific funding level was approved. A total of $50
million of funding is authorized in each of FYs 1996 through
1999 to permit Amtrak to obtain loan guarantees out of the
approximately $980 million dollars now available for Section
511 loan guarantees overall.
Title X of the bill as reported would transfer to the
Intercity Rail Passenger Account one-half cent of the per
gallon fuel taxes collected now for deposit into general
revenues. Under Public Law 103-66, this one-half cent was
scheduled to be deposited in the Mass Transit Account beginning
on October 1, 1995. If this amount were designated instead to
the Amtrak capital account, the Mass Transit Account would
continue to receive the one and one-half cent share it now
receives of fuel taxes collected. Use of one-half penny would
generate approximately $675 million annually for Amtrak, and
should not threaten funding available for mass transit purposes
in any way, as the Mass Transit Account now holds an estimated
surplus of $5.4 billion in excess of its approved obligation
level.
PRIVACY
The bill as reported would have no adverse impact on the
personal privacy of individuals affected.
PAPERWORK
Paperwork requirements associated with the bill as reported
are minimal. The most notable new requirement is created by
Title V, which directs the ARC, in each of the first three
years after enactment, to assess and report to Congress on
progress made by Amtrak in meeting its financial goals. The ARC
also would be responsible for developing plans for Amtrak's
continuation or liquidation.
Section-by-Section Analysis
Section 1. Short title
This section states the short title of this portion of the
bill, the Amtrak and Local Rail Revitalization Act of 1995.
Section 2. Findings
This section includes 13 findings related to the importance
of intercity rail passenger service as an essential part of a
national intermodal passenger transportation system; the need
for Amtrak to reduce costs and increase revenues in order to
eliminate the need for Federal operating support within five
years of enactment of this bill; the importance to Amtrak of
adequate capital investment; the roles and responsibilities of
Amtrak stakeholders, management and rail labor in helping
Amtrak meet its financial objectives; the need for Amtrak and
its workers to modify collective bargaining agreements to make
more efficient use of manpower and realize cost savings; and
the importance of ensuring that management flexibility
procedures produce cost savings without compromising safety.
Title I. Procurement Reforms
Section 101. Contracting out
This section repeals, at the end of 180 days after enactment,
statutory language prohibiting Amtrak from contracting out for
certain work. Within five days of enactment, Amtrak and its
labor organizations would be directed to begin negotiating
rules for contracting out work in areas other than food and
beverage services. If the issue is not resolved within 90 days,
parties would be required to participate in the selection of an
arbitrator to assist in negotiations. In the absence of
resolution within 120 days of enactment, a hearing would be
scheduled, prior to which the arbitrator would meet with the
parties to attempt to mediate. Only if all of these efforts
fail would a binding, baseball-type arbitration process result
with the arbitrator selecting a last best offer within 180 days
of enactment.
Section 102. Contracting practices
This section prohibits Amtrak from underbidding actual costs
when competing for contracts to provide services other than
intercity rail passenger, mail or express transportation (e.g.,
support, dispatching, maintenance of way, etc.). This
prohibition would end when Amtrak ceases to receive Federal
support. This section allows Amtrak to contract for intercity
bus transportation only for passengers who will move by rail
immediately before or after the bus movement. Intermodal
passenger service arrangements between Amtrak and bus companies
would be encouraged.
Section 103. Rail and motor carrier passenger service
This section encourages rail and motor carrier passenger
service providers to combine or package their services and
facilities and to coordinate their schedules, routes, rates,
reservations and ticketing to provide for enhanced intermodal
surface transportation and increased revenues.
Section 104. World class service
This section adds to Amtrak's statutory goals that Amtrak
shall manage capital investment in such a way as to provide
customers with world class service, and treat all passengers
with respect, courtesy, and dignity.
Section 105. Passenger choice
This section would allow Federal employees to choose travel
on Amtrak for official business where the total travel cost is
competitive on a total trip or time basis.
Section 106. Freedom of Information Act (FOIA)
This section removes Amtrak from FOIA coverage when it no
longer receives Federal operating subsidies.
Title II. Operational Reforms
Section 201. Basic system
This section would direct Amtrak to strive to operate as a
national rail passenger transportation system, providing
service to all areas of the country. This section does not
repeal the statutory requirement that intercity passenger
transportation be provided by Amtrak, or by others with the
consent of Amtrak, within a specified ``basic system.'' This
section would repeal detailed operational planning directions,
including those requiring Amtrak to cooperate with state-
requested high speed rail development planning. It repeals
mandatory reports to Congress on the cost and performance of
various routes. States would be given 180 days' notice, rather
than the current 90 days, regarding any proposed discontinuance
of a route in order to provide an adequate timeframe for states
to have an opportunity to agree to share or assume the cost of
retaining the route. This section also repeals an unnecessary
``special commuter'' provision.
Section 202. Mail, express and auto-ferry transportation
This section repeals the monopoly of Amtrak over auto-plus-
passenger service.
Section 203. Route and service criteria
This section repeals the requirement that Congress approve
changes in the criteria Amtrak uses to evaluate routes and
services.
Section 204. Additional qualifying routes
This section repeals obsolete mandates on proposed route
changes dating back to 1978.
Section 205. Transportation requested by States, authorities, and other
persons
This section repeals the current 403(b) state-supported
service matching-program, and discontinues any existing 403(b)
arrangements, on the basis that Amtrak and affected states
already have begun negotiating individualized cost-sharing
arrangements without regard to matching formulas.
Section 206. Amtrak commuter
This section repeals a never-used chapter authorizing an
``Amtrak Commuter'' subsidiary, but retains certain tax
exemptions and trackage rights provided under that chapter.
Section 207. Commuter cost-sharing on the Northeast Corridor
This section requires states on the Northeast Corridor to
begin, within two years of enactment, to fully compensate
Amtrak for commuter services. Currently, only rail freight
services operating on Amtrak's Northeast Corridor are required
to pay fully allocated costs.
Section 208. Access to records and accounts
This section would give states access to Amtrak records,
accounts and necessary documents to verify the payment owed
Amtrak.
Title III. Employee Protection Reforms
Section 301. Service discontinuance
This section amends statutory employee protective
arrangements which currently provide up to six years' severance
pay to rail workers affected by route discontinuations,
frequency reductions to less than tri-weekly, or relocations of
more than 30 miles from home. Instead, regardless of the source
of any existing entitlement, Amtrak employees would be entitled
to protective payments of up to six months' pay only. The one-
time cost savings anticipated from enactment of this provision
would be approximately $90 million, based on Amtrak's
historical experience that only 40 percent of affected
employees will require payment under the program. In the
absence of this legislative reform, Congress would face a
potential taxpayer liability of between $2.1 billion and $5.2
billion in labor protection costs should Amtrak cease to exist.
Also, as agreed to by rail labor and Conrail, this section
would allow Conrail to furlough one employee for every employee
from Amtrak who exercises the ``flowback'' labor protection
arrangements (both statutory and contractual) under the
Northeast Rail Service Act of 1981.
Title IV. Use of Railroad Facilities
Section 401. Liability limitation
This section would authorize Amtrak to establish
``contracts'' with its passengers to limit claims related to
rail passenger transportation to no less than the limits in the
Senate product liability reform provisions passed on May 10,
1995 during its consideration of H.R. 956. This essentially
would permit Amtrak to limit its exposure to punitive damages,
where recoverable, to an amount equal to 2 times compensatory
damages or $250,000, whichever is greater. Amtrak passengers
could purchase supplemental insurance coverage when they
purchase Amtrak tickets or at the point of departure.
Title V. Financial Reforms
Section 501. Amtrak financial goals
This section requires Amtrak to prepare a financial plan
aimed at the elimination of Federal operating subsidies after
the fifth anniversary of enactment of this bill. The plan would
include budgetary goals for fiscal years 1995 through 1997,
internal reforms to maximize cost savings, steps to maximize
revenue, implementation of a commercially rationalized route
system, and achievement through negotiation of substantial
reductions in labor costs. Each year before the fifth
anniversary of the date of enactment of this bill, the Amtrak
Reform Council (ARC) created in Section 601 would submit to
Congress a progress report outlining the likelihood that Amtrak
will not require Federal operating grants.
Section 502. Amtrak sunset trigger
This section would authorize the ARC to review, at the end of
three years after enactment, Amtrak's progress toward meeting
its financial goals and to report to Congress on the likelihood
that Amtrak will not require Federal operating support and will
continue to operate a national passenger rail system five years
after enactment. If, at the end of three years after enactment,
the ARC determines Amtrak is meeting its financial goals, the
Secretary of Transportation and Amtrak would implement the plan
developed under Section 601(b)(6)(A), unless it is disapproved
by Congress within 45 days of its submission. If the ARC
determines Amtrak is failing to meet its financial goals, the
Secretary and Amtrak would implement the Amtrak sunset plan
developed under Section 601(b)(6)(B), unless it is disapproved
by Congress within the 45 day limit.
The bill as reported does not include any provision to
statutorily reduce the number of Amtrak bargaining units,
although such action was recommended by the Regional Forum
Workshops. The Committee recognizes that prompt resolution of
productivity issues is important to Amtrak's efficient
operation. Therefore, the Committee views the potential for
Amtrak sunset in the event that progress is not made in this
area a serious incentive for Amtrak and its labor unions to
reach mutually acceptable productivity gains.
Section 503. Disbursement of Federal funds; grant release date
This section would allow Amtrak to receive approved
appropriations immediately upon request.
Section 504. Transfer of excess railroad taxes
This section would relieve Amtrak, effective October 1, 1995,
from any liability or obligation to pay excess railroad
retirement and unemployment insurance taxes. Instead, the
Secretary of Transportation would be authorized to make
payments equal to those from which Amtrak was relieved. Should
the Secretary be unable to meet fully this obligation, Amtrak
would remain liable for the portion not paid by the Secretary.
Nothing in this section may be construed as a basis for
reducing any benefit payable to any railroad employee, retiree
or beneficiary. Amounts appropriated under this section are not
to be considered a United States Government subsidy of Amtrak.
In fiscal years 1991 through 1995, between $137 million and
$150 million were appropriated for Amtrak each year to fund
railroad retirement benefits to freight retirees.
Section 505. Reports and audits
This section eliminates several nonessential Congressional
reporting requirements.
Section 506. Officers' pay
This section would allow the Amtrak Board to disregard
statutory limitations on Amtrak officers' pay in any fiscal
year during which Amtrak does not receive Federal operating
support.
Section 507. Exemption from taxes
This section would prohibit individual states from imposing
sales taxes on Amtrak tickets or Amtrak passengers. Although
states are not now taxing Amtrak ticket sales, it is clear that
Amtrak's financial condition would be adversely affected if
states attempt to tax such sales in the future. This section
phases out the special provision in effect since 1981 allowing
Beech Grove, IN, to tax Amtrak property, although taxes
assessed prior to April 1, 1995, would be required to be paid.
This provision would save Amtrak approximately $800,000 per
year in property taxes.
Title VI. Miscellaneous
Section 601. Amtrak Reform Council
This section would create an eight-member, Presidentially
appointed, independent Amtrak Reform Council that would
evaluate and report to Congress on Amtrak's performance;
prepare an analysis and critique of Amtrak's business plan;
suggest strategies for further cost containment and
productivity improvements; consider the merits, costs and
service implications of Amtrak privatization; recommend
appropriate methods for Amtrak use of uniform cost and
accounting procedures; and develop and submit to Congress
action plans for use under the Amtrak Sunset Trigger created in
Section 502.
Section 602. Principal office and place of business
This section strikes the requirement that Amtrak be domiciled
in the District of Columbia, although Amtrak could elect to
remain in the District of Columbia and be governed by its
corporate laws.
Section 603. Status and applicable laws
This section makes technical corrections, and makes clear
that Amtrak shall continue to be considered an employer for
purposes of the railroad retirement and unemployment insurance
acts.
Section 604. Waste disposal
This section postpones the deadline for Amtrak waste disposal
retrofitting requirements from 1996 to 2001.
Section 605. Assistance for upgrading facilities
This section repeals an obsolete provision pertaining to
upgrading facilities.
Section 606. Rail Safety System Program
This section repeals a provision requiring Amtrak to develop
a model safety system program.
Section 607. Demonstration of new technology
This section repeals a new technology demonstration project
completed in 1993.
Section 608. Northeast Corridor improvement project
This section makes Amtrak projects eligible for the
exemptions and procedures applicable to other Federal
government projects, unless such Amtrak projects are initiated
in a fiscal year in which Amtrak receives no Federal operating
subsidy.
Section 609. Program master plan for Boston-New York main line
This section repeals a specific planning requirement which
was to have been completed prior to October 27, 1993.
Section 610. Americans with Disabilities Act of 1990 (ADA)
This section extends the deadline for ADA compliance with
respect to existing equipment until January 1, 1998, and
existing stations to October 15, 2001. This extension will
obviate the need for retrofits of rolling stock which will be
retired when new cars are delivered and permit Amtrak to
stretch out the time allowed to perform expensive station
retrofit work.
Section 611. Definitions
This section deletes several obsolete definitions; conforms
definitions with previous statutory amendments; defines ``rail
passenger transportation'' as including interstate, intrastate,
or international transportation of passengers by rail; and
expands the definition of ``rail carrier'' to include units of
state or local government that provide rail transportation for
compensation.
Section 612. Northeast Corridor dispute resolution
This section repeals an obsolete section of the Northeast
Rail Service Act of 1981.
Section 613. Inspector General Act of 1978 amendment
This section states that Amtrak shall not be considered a
Federal entity for purposes of the Inspector General Act of
1978 beginning in the first fiscal year in which it no longer
receives Federal operating subsidies.
Section 614. Consolidated Rail Corporation
This section repeals an obsolete section of the Conrail
Privatization Act affecting selection of Conrail's Board of
Directors.
Section 615. Interstate rail compacts
This section allows states to enter into interstate rail
compacts to promote provision of rail passenger service,
including activities related to the financing of such service.
Title VII. Authorization of Appropriations
Section 701. Authorization of appropriations
This section authorizes Amtrak capital and operating
expenditures of $772 million for FY 1995; $712 million in each
of FYs 1996 through 1998; and $403 million for FY 1999. It
authorizes Northeast Corridor improvement funds of $200 million
in each of FYs 1995 through 1999. Appropriations to permit use
of Section 511 loan guarantees for Amtrak would be authorized
at levels of $50 million in each of FYs 1996 through 1999. In
addition to expanding the use of this loan guarantee program,
which currently is used only for freight rail projects, this
section would allow Section 511 loans for Amtrak to be used
more flexibly. Specifically, Section 511 loans for Amtrak could
be used for acquisition, rehabilitation, and development of
equipment and facilities. Preexisting obligations would not
have to be subordinated to the rights of the Secretary of
Transportation in the event of a default on a Section 511 loan.
Most notably, this section requires Amtrak to expend capital
funds equitably across its national system, on projects deemed
necessary to meet its most critical operating and capital needs
without compromising safety. Priority is to be given projects
which offer significant return on investment, and which
leverage the highest levels of State, local and private
financial support. Although the Committee would not statutorily
reference specific projects or levels of funding for them, it
assumes Amtrak is authorized to proceed, as it deems
appropriate, with projects including the Boston Central Artery
Rail Link; New York Farley Post Office Redevelopment; New Haven
to Boston electrification; infrastructure improvements
necessary for implementation of high speed rail service in the
Pacific Northwest and other designated corridors; and
activities related to the development and improvement of
intermodal facilities.
Title VIII. Amtrak Revenue Enhancement
Section 801. Intercity Rail Passenger Account
This section establishes a permanent Intercity Rail Passenger
Account as a stable source of capital funding for Amtrak and
rail passenger services in states not currently served by
Amtrak. The account would be authorized to receive 5 percent of
Amtrak's ticket revenues for fiscal years 1995 through 1999;
payments for the use of Amtrak equipment or facilities; claims
recovered by Amtrak; taxes refunded to Amtrak; and amounts from
other sources as authorized by law.
Section 802. Transfer of interest in Washington Union Station to Amtrak
Section 802 concerns the transfer of loan repayments into
an account to maintain Washington, D.C.'s Union Station in good
repair. Currently, the Union Station Redevelopment Corporation
owns Union Station subject to a mortgage and other obligations
held by the Secretary of Transportation. This section allows
the Union Station Redevelopment Corporation to make, in lieu of
loan repayments to the Secretary, equal payments into a reserve
account to maintain Union Station in good repair.
Section 803. Commercial diversification
Amtrak is authorized and encouraged to increase non-Federal
revenues through: (1) the sale of concessions and the use of
vending machines on trains; (2) the sale of advertising space
on trains and in rail stations; (3) the use of
telecommunications networks or infrastructure; (4) other
creative marketing and services activities; and (5) the
purchase and sale of power, transmission services, etc., to
commuter authorities and other consumers of electricity.
Title IX. Preservation of Rail Infrastructure
Section 901. Short title
This section states the short title of this portion of the
bill, the Rail Infrastructure Preservation Act of 1995.
Section 902. Local rail freight assistance; authorization of
appropriations
This section authorizes for the LRFA program $25 million for
the fiscal year ending September 30, 1996, and for each
subsequent fiscal year.
Section 903. Disaster funding for railroads
This section clarifies procedures allowing the Secretary of
Transportation to use LRFA for railroad disaster assistance.
Section 904. Grade-crossing eligibility
This section expands the list of activities eligible for LRFA
funding to include the cost of grade crossing closure or
improvements and the cost of creating a state-supervised grain
car pool.
Section 905. Declaration of policy
This section states that continuation of service on and
preservation of light density lines are essential for continued
employment and community well-being throughout the United
States.
Section 906. Railroad loan guarantees; maximum rate of interest
This section sets a rate of interest based on a known number,
equivalent to the cost of money to the Federal government, in
order to facilitate the loan process.
Section 907. Railroad loan guarantees; minimum repayment period and
prepayment penalties
This section would allow minimum repayment of 15 years and
permit prepayment after five years without penalty. Under
current law, there is only a provision for 25 year maximum
repayment.
Section 908. Railroad loan guarantees; determination of repayability
This section is intended to avoid over-collateralization of
loans.
Section 909. Railroad loan guarantees; rights of the secretary
This section prohibits the Secretary of Transportation from
requiring that an applicant's preexisting loans be subordinated
in the event of a default on a Section 511 loan.
Title X. Fiscal Revitalization
Section 1001. On-time performance incentives
This section provides that payments received by freight
railroads as an incentive for on-time operation of intercity
passenger trains would not be taxable as income.
Section 1002. Payment to the Intercity Rail Passenger Account of excise
taxes on fuel
This section provides for payment to the Intercity Rail
Passenger Account the amount of fuel tax now paid by Amtrak to
deficit reduction. Amtrak currently pays between $5 million and
$7 million annually in such fuel taxes.
Section 1003. Funding for the National Railroad Passenger Corporation
from the mass transit account
This section provides that one-half cent of the per gallon
fuel tax collected now for deposit into general revenues would
be transferred to the Intercity Rail Passenger Account
beginning on October 1, 1995. On that date, this amount is
slated to be deposited in the mass transit trust fund account,
increasing it from one and one-half cents to two cents per
gallon. Use of this half penny would contribute approximately
$675 million annually in the Intercity Rail Passenger Account,
and should not threaten funding available for mass transit
purposes in any way as the mass transit account now holds an
estimated surplus of $5.4 billion in excess of its approved
obligation level. Also, the mass transit account would continue
to receive its one and one-half cent share of fuel taxes.
Section 1004. Safeharbor leasing of intercity rail passenger equipment
and facilities
This section would provide tax incentives to encourage
private investment in Amtrak capital projects by facilitating
transactions in which investors take deductions for
depreciation which Amtrak itself is unable to utilize.
Section 1005. Issuance of tax-exempt debt
This section would allow Amtrak to issue tax exempt debt.
Amtrak estimates that it would save $0.025 in interest per year
on every dollar it borrows if the interest were exempt from
tax. On a borrowing of $500 million, for example, the annual
savings to Amtrak would be $12.5 million.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new material is printed
in italic, existing law in which no change is proposed is shown
in roman):
[Note: Changes in existing law are shown as that law is carried
in the United States Code, whether or not a particular title
has been enacted into positive law. Changes to tables of
sections are not shown.]
TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
TITLE 5--APPENDIX
INSPECTOR GENERAL ACT OF 1978
Sec. 8G. Requirements for Federal entities and designated Federal
entities
(a) Notwithstanding section 11 of this Act, as used in this
section--
(1) the term ``Federal entity'' means any Government
corporation (within the meaning of section 103(1) of
title 5, United States Code), any Government controlled
corporation (within the meaning of section 103(2) of
such title), or any other entity in the Executive
branch of the Government, or any independent regulatory
agency, but does not include--
(A) an establishment (as defined under
section 11(2) of this Act) or part of an
establishment;
(B) a designated Federal entity (as defined
under paragraph (2) of this subsection) or part
of a designated Federal entity;
(C) the Executive Office of the President;
(D) the Central Intelligence Agency;
(E) the General Accounting Office; or
(F) any entity in the judicial or legislative
branches of the Government, including the
Administrative Office of the United States
Courts and the Architect of the Capitol and any
activities under the direction of the Architect
of the Capitol;
(2) the term ``designated Federal entity'' means
[Amtrak,] the Appalachian Regional Commission, the
Board of Governors of the Federal Reserve System, the
Board for International Broadcasting, the Commodity
Futures Trading Commission, the Consumer Product Safety
Commission, the Corporation for Public Broadcasting,
the Equal Employment Opportunity Commission, the Farm
Credit Administration, the Federal Communications
Commission, the Federal Deposit Insurance Corporation,
the Federal Election Commission, the Federal Housing
Finance Board, the Federal Labor Relations Authority,
the Federal Maritime Commission, the Federal Trade
Commission, the Interstate Commerce Commission, the
Legal Services Corporation, the National Archives and
Records Administration, the National Credit Union
Administration, the National Endowment for the Arts,
the National Endowment for the Humanities, the National
Labor Relations Board, the National Science Foundation,
the Panama Canal Commission, the Peace Corps, the
Pension Benefit Guaranty Corporation, the Securities
and Exchange Commission, the Smithsonian Institution,
the Tennessee Valley Authority, the United States
International Trade Commission, and the United States
Postal Service;
* * * * * * *
TITLE 16--CONSERVATION
CHAPTER 12. FEDERAL REGULATION AND DEVELOPMENT OF POWER
REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE
COMMERCE
Sec. 824k. Orders requiring interconnection or wheeling
(a) Rates, Charges, Terms, and Conditions for Wholesale
Transmission Services.--An order under section 211 shall
require the transmitting utility subject to the order to
provide wholesale transmission services at rates, charges,
terms, and conditions which permit the recovery by such utility
of all the costs incurred in connection with the transmission
services and necessary associated services, including, but not
limited to, an appropriate share, if any, of legitimate,
verifiable and economic costs, including taking into account
any benefits to the transmission system of providing the
transmission service, and the costs of any enlargement of
transmission facilities. Such rates, charges, terms, and
conditions shall promote the economically efficient
transmission and generation of electricity and shall be just
and reasonable, and not unduly discriminatory or preferential.
Rates, charges, terms, and conditions for transmission services
provided pursuant to an order under section 211 shall ensure
that, to the extent practicable, costs incurred in providing
the wholesale transmission services, and properly allocable to
the provision of such services, are recovered from the
applicant for such order and not from a transmitting utility's
existing wholesale, retail, and transmission customers.
* * * * * * *
(h) Prohibition on mandatory retail wheeling and sham
wholesale transactions.--No order issued under this Act shall
be conditioned upon or require the transmission of electric
energy:
(1) directly to an ultimate consumer, or
(2) to, or for the benefit of, an entity if such
electric energy would be sold by such entity directly
to an ultimate consumer, unless:
(A) such entity is a Federal power marketing
agency; the Tennessee Valley Authority; a State
or any political subdivision of a State (or an
agency, authority, or instrumentality of a
State or a political subdivision); Amtrak; a
corporation or association that has ever
received a loan for the purposes of providing
electric service from the Administrator of the
Rural Electrification Administration under the
Rural Electrification Act of 1936; a person
having an obligation arising under State or
local law (exclusive of an obligation arising
solely from a contract entered into by such
person) to provide electric service to the
public; or any corporation or association which
is wholly owned, directly or indirectly, by any
one or more of the foregoing; and
(B) such entity was providing electric
service to such ultimate consumer on the date
of enactment of this subsection or would
utilize transmission or distribution facilities
that it owns or controls to deliver all such
electric energy to such electric consumer.
Nothing in this subsection shall affect any authority
of any State or local government under State law
concerning the transmission of electric energy directly
to an ultimate consumer.
* * * * * * *
Title 26--Internal Revenue Code of 1986
SEC. 137. INCENTIVE PAYMENTS FOR ON-TIME PERFORMANCE.
Gross income does not include payments received by a railroad
as an incentive for the on-time operation of intercity
passenger trains.
SEC. [137.] 138. CROSS REFERENCES TO OTHER ACTS.
* * * * * * *
SEC. 150. DEFINITIONS AND SPECIAL RULES.
(a) General Rule.--For purposes of this part--
(1) Bond.--The term ``bond'' includes any obligation.
(2) Governmental unit not to include federal
government.--The term ``governmental unit'' does not
include the United States or any agency or
instrumentality thereof.
(3) Net proceeds.--The term ``net proceeds'' means,
with respect to any issue, the proceeds of such issue
reduced by amounts in a reasonably required reserve or
replacement fund.
(4) 501(c)(3) Organization.--The term ``501(c)(3)
organization'' means any organization described in
section 501(c)(3) and exempt from tax under section
501(a).
(5) Ownership of property.--Property shall be treated
as owned by a governmental unit if it is owned on
behalf of such unit.
(6) Tax-exempt bond.--The term ``tax-exempt'' means,
with respect to any bond (or issue), that the interest
on such bond (or on the bonds issued as part of such
issue) is excluded from gross income.
* * * * * * *
(f) Intercity Rail Passenger Bonds._
(1) In general._For purposes of this part and section
103--
(A) Treatment as state or local bond._An
intercity rail passenger bond shall be treated
as a State or local bond.
(B) Definition of intercity rail passenger
bond._The term ``intercity rail passenger
bond'' means a bond issued by an intercity
passenger railroad created under an Act of
Congress (or a related party thereto) 95
percent or more of the net proceeds of which
are to be used by the issuer (or a related
party) in the trade or business of operating an
intercity passenger railroad, including the
acquisition, construction, reconstruction, or
improvement of property to be used for such
purposes and other general purposes of the
issuer. Issuance of not more than $100,000,000
per year shall be treated as a State or local
bond under this section.
(C) Not federally guaranteed or private
activity bond._An intercity rail passenger bond
shall not be treated as a private activity bond
or as Federally guaranteed.
(2) Coordination with other provisions._
(A) Treatment of bond-financed property._
Property acquired with the proceeds of
intercity rail passenger bonds shall not be
treated as tax-exempt bond financed property
for purposes of section 168.
(B) Treatment of issuer._The issuer of such a
bond shall not be treated as a tax-exempt
entity for any purpose of this title solely
because of such issuance.
(C) Treatment of lease agreements._An
agreement entered into by the issuer of such a
bond which otherwise qualifies as a lease of
property to the issuer under this title will be
treated as a lease, notwithstanding any use of
proceeds of the bonds to finance the
acquisition of leased property.
SEC. 168. ACCELERATED COST RECOVERY SYSTEM.
(a) General Rule.--Except as otherwise provided in this
section, the depreciation deduction provided by section 167(a)
for any tangible property shall be determined by using--
(1) the applicable depreciation method,
(2) the applicable recovery period, and
(3) the applicable convention.
* * * * * * *
(k) Leased Property Used in the Provision of Intercity Rail
Passenger Service._
(1) In general._In the case of an agreement with
respect to qualified leased property, if all of the
parties to the agreement characterize such agreement as
a lease and elect to have the provisions of this
subsection apply with respect to such agreement, and if
the requirements of paragraph (2) are met, then, for
purposes of this subtitle, such agreement shall be
treated as a lease entered into by the parties in the
course of carrying on a trade or business and the
lessor shall be treated as the owner of the property
and the lessee shall be treated as the lessee of the
property.
(2) Certain requirements must be met._The
requirements of this subsection are met if the minimum
investment of the lessor at the time the property is
first placed in service under the lease and at all
times during the lease term is not less than 10 percent
of the adjusted basis of such property and the term of
the lease (including any extensions) does not exceed
the greater of 90 percent of the useful life of such
property or 150 percent of the class life of such
property.
(3) No other factors taken into account._If the
requirements of paragraphs (1) and (2) are met with
respect to any transaction described in paragraph (1),
no other factors shall be taken into account in making
a determination as to whether paragraph (1) applies
with respect to the transaction.
(4) Qualified leased property._For purposes of this
subsection, the term ``qualified leased property''
means property used in the provision of intercity rail
passenger service which was leased within 3 months
after such property was placed in service by the lessee
and with respect to which the adjusted basis of the
lessor does not exceed the adjusted basis of the lessee
at the time of the lease.
(5) Minimum investment._For purposes of paragraph
(1), the term ``minimum investment'' means the amount
the lessor has at risk with respect to the property
(other than financing from the lessee or a related
party of the lessee). For the purposes of the preceding
sentence, an agreement between the lessor and lessee
requiring either or both parties to purchase or sell
the qualified leased property at some price (whether or
not fixed in the agreement at the end of the lease
term) shall not affect the amount the lessor is treated
as having at risk with respect to the property.
(6) Use of private activity bond financing._A private
activity bond issued to finance qualified leased
property shall be deemed to be a qualified bond (within
the meaning of section 141) for the purpose of section
103 and subpart A of part IV of this chapter. Qualified
leased property financed by a private activity bond
shall not be deemed to be ``tax-exempt bond financed
property'' or ``tax-exempt use property'' for the
purpose of subsection (g).
(7) Characterization by parties._For purposes of this
subsection, any determination as to whether a person is
a lessor or lessee, or whether property is leased,
shall be made on the basis of the characterization of
such person or property under the agreement described
in paragraph (1).
(8) Regulations._The Secretary shall prescribe such
regulations as may be necessary to carry out the
purposes of this subsection, including regulations
consistent with such purposes which limit the aggregate
amount of (and timing of) deductions and credits in
respect of qualified leased property to the aggregate
amount (and the timing) allowable without regard to
this subsection.
SEC. 6427. FUELS NOT USED FOR TAXABLE PURPOSES.
(a) Nontaxable Uses.--Except as provided in subsection (k),
if tax has been imposed under paragraph (2) or (3) of section
4041(a) or section 4041(c) on the sale of any fuel and the
purchaser uses such fuel other than for the use for which sold,
or resells such fuel, the Secretary shall pay (without
interest) to him an amount equal to--
(1) the amount of tax imposed on the sale of the fuel
to him, reduced by
(2) if he uses the fuel, the amount of tax which
would have been imposed under section 4041 on such use
if no tax under section 4041 had been imposed on the
sale of the fuel.
* * * * * * *
(k) Income Tax Credit in Lieu of Payment.--
(1) Persons not subject to income tax.--Payment shall
be made under this section only to--
(A) the United States or an agency or
instrumentality thereof, a State, apolitical
subdivision of a State, or any agency or
instrumentality of one or more States or
political subdivisions, or
(B) an organization exempt from tax under
section 501(a) (other than an organization
required to make a return of the tax imposed
under subtitle A for its taxable year).
(2) Exception.--Paragraph (1) shall not apply to a
payment of a claim filed under paragraph (2), (3), (4),
or (5) of subsection (i).
(3) Allowance of credit against income tax.--For
allowances of credit against the income tax imposed by
subtitle A for fuel used or resold by the purchaser,
see section 34.
* * * * * * *
(r) Amtrak Intercity Passenger Trains._The Secretary shall
pay (without interest) to the Intercity Rail Passenger Account
established by section 24316 of title 49, United States Code,
the amount of tax paid by Amtrak under chapter 31 or 32 on any
fuel used in the operation of intercity passenger trains. For
purposes of subsection (k)(1) of this section, payment to the
Intercity Rail Passenger Account shall be considered to be a
payment described in subsection (k)(1)(A).
[(r)] (s) Cross references.
(1) For civil penalty for excessive claims under this
section, see section 6675.
(2) For fraud penalties, etc., see chapter 75
(section 7201 and following, relating to crimes, other
offenses, and forfeitures).
(3) For treatment of an Indian tribal government as a
State (and a subdivision of an Indian tribal government
as a political subdivision of a State), see section
7871.
Sec. 9503. Highway Trust Fund
(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
``Highway Trust Fund'', consisting of such amounts as may be
appropriated or credited to the Highway Trust Fund as provided
in this section or section 9602(b).
* * * * * * *
(e) Establishment of Mass Transit Account.--
(1) Creation of account.--There is established in the
Highway Trust Fund a separate account to be known as
the ``Mass Transit Account'' consisting of such amounts
as may be transferred or credited to the Mass Transit
Account as provided in this subsection or section
9602(b).
(2) Transfers to mass transit account.--The Secretary
of the Treasury shall transfer to the Mass Transit
Account the mass transit portion of the amounts
appropriated to the Highway Trust Fund under subsection
(b) which are attributable to taxes under sections 4041
and 4081 imposed after March 31, 1983. For purposes of
the preceding sentence, the term ``mass transit
portion'' means an amount determined at the rate of 2
cents for each gallon with respect to which tax was
imposed under section 4041 or 4081.
(3) Expenditures from account.--Amounts in the Mass
Transit Account shall be available, as provided by
appropriation Acts, for making capital or capital-
related expenditures before October 1, 1997 (including
capital expenditures for new projects) in accordance
with,
(A) section 5338(a)(1) or (b)(1) of title 49,
or
(B) the Intermodal Surface Transportation
Efficiency Act of 1991,
as such Acts are in effect on the date of the enactment
of the Intermodal Surface Transportation Efficiency Act
of 1991.
(4) Limitation.--Rules similar to the rules of
subsection (d) shall apply to the Mass Transit Account
except that subsection (d)(1) shall be applied by
substituting ``12-month'' for ``24-month''.
(5) Portion of certain transfers to be made from
account.--
(A) In general.--Transfers under paragraphs
(2), (3), and (4) of subsection (c) shall be
borne by the Highway Account and the Mass
Transit Account in proportion to the respective
revenues transferred under this section to the
Highway Account (after the application of
paragraph (2)) and the Mass Transit Account;
except that any such transfers to the extent
attributable to section 6427(g) shall be borne
only by the Highway Account.
(B) Highway account. For purposes of
subparagraph (A), the term ``Highway Account''
means the portion of the Highway Trust Fund
which is not the Mass Transit Account.
(6) Transfers to the intercity rail passenger
account._Notwithstanding any other provision of law to
the contrary, the Secretary shall transfer from the
Mass Transit Account to the Intercity Rail Passenger
Account established under section 24316 of title 49,
United States Code, the intercity rail passenger
portion of the amounts appropriated under subsection
(b) of this section which are attributable to taxes
under sections 4041 and 4081 imposed on or after
October 1, 1995. The intercity rail passenger portion
is appropriated for the benefit of Amtrak for
expenditure in accordance with the provisions of such
section 24316. For purposes of this paragraph, the term
``intercity rail passenger portion'' means the amount
attributable to 0.5 cent per gallon of the 2 cents per
gallon to be transferred to the Mass Transit Account
pursuant to paragraph (2) of this subsection. The
Secretary shall transfer such funds at the end of each
quarter of a fiscal year.
* * * * * * *
TITLE 45--RAILROADS
CHAPTER 17 RAILROAD REVITALIZATION AND REGULATORY REFORM
Sec. 801. Declaration of policy
(a) Purpose.--It is the purpose of the Congress in this Act
to provide the means to rehabilitate and maintain the physical
facilities, improve the operations and structure, and restore
the financial stability of the railway system of the United
States, and to promote the revitalization of such railway
system, so that this mode of transportation will remain viable
in the private sector of the economy and will be able to
provide energy-efficient, ecologically compatible
transportation services with greater efficiency, effectiveness,
and economy, through--
(1) ratemaking and regulatory reform;
(2) the encouragement of efforts to restructure the
system on a more economically justified basis,
including planning authority in the Secretary of
Transportation, an expedited procedure for determining
whether merger and consolidation applications are in
the public interest, and continuing reorganization
authority;
(3) financing mechanisms that will assure adequate
rehabilitation and improvement of facilities and
equipment, implementation of the final system plan, and
implementation of the Northeast Corridor project;
[(4) transitional continuation of service on light-
density rail lines that are necessary to continued
employment and community well-being throughout the
United States;]
(4) continuation of service on, or preservation of,
light density lines that are necessary to continued
employment and community well-being throughout the
United States;
(5) auditing, accounting, reporting, and other
requirements to protect Federal funds and to assure
repayment of loans and financial responsibility; and
(6) necessary studies.
* * * * * * *
Sec. 831. Guarantee of obligations
(a) General.--The Secretary may, in accordance with the
provisions of this section, guarantee and make commitments to
guarantee the payment of the principal balance of, and any
interest on, an obligation of an applicant prior to, on, or
after the date of execution or the date of disbursement of such
obligation, if the proceeds of such obligation shall be or have
been used (1) to acquire or to rehabilitate and improve
facilities or equipment (which includes but is not limited to
computerized car management systems), (2) to develop or
establish new railroad facilities, or (3) to acquire,
rehabilitate, improve, develop, or establish high-speed rail
facilities or equipment. Each guarantee of such an obligation
shall be made in accordance with the provisions of sections 511
through 513 of this title and such rules as the Secretary may
prescribe to protect reasonably the interest of the United
States. Each application for the guarantee of such an
obligation or for a commitment to guarantee such an obligation
shall be made in writing to the Secretary in such form and with
such content as the Secretary prescribes. Such application
shall be granted, in whole or in part, if the Secretary
determines that the proposed, negotiated, or executed
obligation is eligible for such guarantee. Each such guarantee
or commitment to guarantee shall be extended in such form,
under such terms and conditions, and pursuant to such
regulations as the Secretary deems appropriate, consistent with
the purposes of this title. Such a guarantee or commitment to
guarantee shall inure to the benefit of the holder of the
obligation to which such guarantee or commitment to guarantee
applies.
(b) Fund.--An obligation guarantee fund shall be established
and administered by the Secretary as a revolving fund to carry
out the provisions of sections 511 through 513 of this title.
Moneys in the obligation guarantee fund shall be deposited in
the Treasury of the United States to the credit of such fund or
invested in bonds or other obligations of the United States
approved by the Secretary of the Treasury.
(c) Full Faith and Credit.--All guarantees entered into by
the Secretary under this section shall constitute general
obligations of the United States of America backed by the full
faith and credit of the United States of America.
(d) Modifications.--The Secretary may approve any
modification of any provision of a guarantee, or of a
commitment to guarantee an obligation, including the rate of
interest, time of payment of interest or principal, security,
or any other terms and conditions, if the Secretary makes a
finding in writing that such modification is equitable and is
in the overall best interests of the United States under this
title, and that the holder of such obligation consents to such
modification.
(e) Extent of Authority.--The aggregate unpaid principal
amounts of obligations which may be guaranteed by the Secretary
under this section shall not exceed $1,000,000,000 at any one
time.
(f) Rate of Interest.--The rate of interest (exclusive of
premium charges for a guarantee and service fees) which shall
be paid on the unpaid principal balance of each obligation
guaranteed by the Secretary under this section, [shall not
exceed an annual percentage rate which the Secretary determines
to be reasonable, taking into consideration the prevailing
interest rates for similar obligations in the private market.]
shall not exceed the annual percentage rate charged equivalent
to the cost of money to the Federal government.
(g) Prerequisites for Guarantees.--No obligation shall be
guaranteed and no commitment shall be made to guarantee any
obligation under this section, unless and until the Secretary
makes a finding in writing that--
(1) an obligation for equipment acquisition,
rehabilitation, or improvement is secured (A) by the
particular equipment which is to be financed or
refinanced by such obligation, or (B) in the case of
the rehabilitation or improvement of leased equipment,
by the lease;
[(2) payment of the obligation is required by its
terms to be made within 25 years from the date of its
execution;]
(2) payment of the obligation is required by its
terms to be made not less than 15 years nor more than
25 years from the date of its execution, with no
penalty imposed for prepayment after 5 years;
(3) the financing or refinancing is justified by the
present and probable future demand for rail services or
high-speed rail services to be rendered by the
applicant and will serve to meet demonstrable needs for
rail services or high-speed rail services and to
provide shippers or passengers with improved service;
(4) the applicant has given reasonable assurances
that the facilities or equipment to be acquired,
rehabilitated, improved, developed, or established with
the proceeds of the obligation will be economically and
efficiently utilized;
[(5) the prospective earning power of the applicant,
or the value or prospective earning power of any
equipment or facilities to be acquired, rehabilitated,
improved, developed, or established (or any combination
of the foregoing), together with any other security
offered by the applicant, is sufficient to provide the
United States with reasonable security and protection,
except that if the value or prospective earning power
of such equipment or facilities is equal to or greater
than the amount of the obligation to be guaranteed, the
Secretary may not, on the basis of the lack of
prospective earning power of the applicant, find that
the United States will not be provided with the
reasonable security and protection referred to in this
paragraph;]
(5) either the loan can reasonably be repaid by the
applicant or the loan is collateralized at no more than
the current value of assets being financed under this
section to provide protection to the United States;
(6) the transaction will result in an improvement in
the ability of any affected railroad or high-speed rail
carrier to transport passengers or freight; and
(7) in the case of high-speed rail facilities and
equipment, at least 85 percent of such facilities and
equipment are mined, produced, or manufactured in the
United States, unless the Secretary finds in writing
that--
(A) such requirement would be inconsistent
with the public interest;
(B) such facilities and equipment could not
be mined, produced, or manufactured in the
United States in sufficient and reasonably
available quantities of a satisfactory quality;
(C) such a requirement would increase the
cost of the facilities and equipment by more
than 25 percent; or
(D) such a requirement would result in a
violation of obligations of the United States
under international trade agreements.
(h) General Requirement.--The recipients of any guarantees
of, or of any commitments to guarantee, an obligation under
this section, shall, consistent with their capital resources,
maintain their facilities, on a continuing basis, in accordance
with standards promulgated under this subsection. The Secretary
shall assure compliance with this requirement by regular
periodic inspection.
(i) Conditions of Guarantees.--
(1) The Secretary shall, before making, approving, or
extending any guarantee or commitment to guarantee any
obligation under this section, require the obligor to
agree to such terms and conditions as are sufficient,
in the judgment of the Secretary, to assure that, as
long as any principal or interest is due and payable on
such obligation, such obligor--
(A) will not make any discretionary dividend
payments, except as provided in paragraph (2)
of this subsection; and
(B) (i) will not use any funds or assets from
railroad operations for nonrail purposes; and
(ii) will not use any funds or assets from
high-speed rail operations for purposes other
than high-speed rail purposes,
if such payments or use will impair the ability of such
obligor to provide rail services or high-speed rail
services in an efficient and economic manner or will
adversely effect the ability of such obligor to perform
any obligation guaranteed by the Secretary.
(2) An obligor shall not be restricted with respect
to making dividend payments from its net income for any
fiscal year, if such payments do not exceed--
(A) when compared to the net income of such
obligor for such fiscal year, the ratio which
aggregate dividends paid by such obligor,
during the 5 fiscal years prior to the granting
of the earliest loan guarantee then outstanding
under this section, bore to aggregate net
income of such obligor for such period; or
(B) 50 per centum of the total additions to
the retained income of such obligor (computed
on a cumulative basis and giving cognizance to
dividends paid) during the period commencing
with the fiscal year prior to the granting of
the earliest loan guarantee then outstanding
under this section,
whichever is greater.
(3) The restrictions set forth in paragraphs (1) of
this subsection shall not apply with respect to an
obligation guaranteed under this section if, in the
event of a default by the obligor, the Secretary would
be subrogated to the rights of the lender under section
77(j) of the Bankruptcy Act.
(4) The Secretary shall not require, as a condition
for guarantee of an obligation, that all preexisting
secured obligations of an obligor be subordinated to
the rights of the Secretary in the event of a default.
(j) Breach of Conditions.--The Attorney General shall
commence a civil action in any appropriate district court of
the United States to enjoin any activity which the Secretary
finds is in violation of any requirement or condition specified
in subsection (i) or (j) of this section, and to secure any
other appropriate relief, including termination, suspension,
and punitive damages.
(k) Investigation Charge.--The Secretary shall charge and
collect from each applicant such amounts as he deems reasonable
for the investigation of any application submitted under this
section, for appraisal of the value of the equipment or
facilities involved, and for making the necessary
determinations and findings. Such charges shall not aggregate
more than one-half of 1 percent of the principal amount of the
obligation with respect to which the applicant seeks a
guarantee or commitment to guarantee.
(l) Premium Charge.--The Secretary shall assess and collect
from the obligor an annual premium charge on each obligation
guaranteed under this section. The amount of such premium may
not exceed an annual rate of 1 percent on the unpaid principal
balance of such obligation at the time payment is due. Payment
is due initially when the obligation is guaranteed by the
Secretary, and, thereafter, in the anniversary date of such
guarantee.
(m) Administrative Costs.--All moneys received by the
Secretary under this section shall be deposited in the
obligation guarantee fund, and to the extent provided in
appropriation acts, may be used by the Secretary to pay
administrative costs and expenses incurred by him pursuant to
this section.
(n) Definitions.--As used in this section, the term ``high-
speed rail'' means all forms of nonhighway ground
transportation that run on rails providing transportation
service which is--
(1) reasonably expected to reach sustained speeds of
more than 125 miles per hour; and
(2) made available to members of the general public
as passengers.
Such term does not include rapid transit operations within an
urban area that are not connected to the general rail system of
transportation.
[Sec. 1111. Northeast Corridor cost dispute
[(a) Determination of Costing Methodology.--
[(1) Within 120 days after the effective date of this
subtitle, the Commission shall determine an appropriate
costing methodology for compensation to Amtrak for the
right-of-way related costs for the operation of
commuter rail passenger service over the Northeast
Corridor and other properties owned by Amtrak, unless
Conrail, Amtrak, and affected commuter authorities have
otherwise agreed on such a methodology by that date. In
making its determination, the Commission shall consider
all relevant factors, including the standards of
sections 205(d) and 304(c) of the Regional Rail
Reorganization Act of 1973, section 701(a)(6) of the
Railroad Revitalization and Regulatory Reform Act of
1976, and section 402(a) of the Rail Passenger Service
Act.
[(2) The Commission, in making such a determination,
shall consider all relevant factors, and shall not
permit cross subsidization between intercity rail
passenger service and commuter rail passenger service.
[(b) Effective Date of Determination or Agreement.--Any
determination by the Commission under this section shall be
effective on the date of such determination, and any agreement
of the parties under this section shall be effective on the
date specified in such agreement. Any such determination or
agreement shall not apply to any compensation paid to Amtrak
prior to the date of such determination or the date so
specified, as the case may be, for the right-of-way related
costs described in subsection (a) of this section.
[(c) Agreement Subsequent to Determination.--Nothing in this
section shall preclude parties from entering into an agreement,
after the determination of the Commission or their initial
agreement under this section, with respect to the right-of-way
related costs described in subsection (a) of this section.
[(d) Finality of Determination.--Any determination by the
Commission under this section shall be final and shall not be
reviewable in any court.]
Sec. 1113. Intercity passenger service
(a) Responsibility of Conrail to Provide Crews Terminated;
Negotiations for Employee Transfers.--(1) After January 1,
1983, Conrail shall be relieved of the responsibility to
provide crews for intercity passenger service on the Northeast
Corridor. [Amtrak, Amtrak Commuter, and Conrail] Amtrak and
Conrail, and the employees with seniority in both freight and
passenger service shall commence negotiations not later than
120 days after the date of the enactment [of this section] for
the right of such employees to move from one service to the
other once each six-month period. [Such agreement shall ensure
that Conrail, Amtrak, and Amtrak Commuter have the right to
furlough one employee in the same class or craft for each
employee who returns through the exercise of seniority rights.
If agreement is not reached within 360 days, such matter shall
be submitted to binding arbitration.]
(2) Notwithstanding any other provision of law, agreement, or
arrangement, with respect to employees in any class or craft in
train or engine service, Conrail shall have the right to
furlough one such employee for each employee in train or engine
service who moves from Amtrak to Conrail in excess of the
cumulative number of such employees who move from Conrail to
Amtrak. Conrail shall not be obligated to fill any position
governed by an agreement concerning crew consist, attrition
arrangements, reserve boards, or reserve engine service
positions, where an increase in positions is the result of the
return of an Amtrak employee pursuant to an agreement entered
into under paragraph (1). Conrail's collective bargaining
agreements with organizations representing its train and engine
service employees shall be deemed to have been amended to
conform to this paragraph. Any dispute or controversy with
respect to the interpretation, application, or enforcement of
this paragraph which has not been resolved within 90 days after
the date of the enactment of this paragraph may be submitted by
either party to an adjustment board for a final and binding
decision under section 3 of the Railway Labor Act.
(b) Eligibility of Employees Protection Benefits.--Conrail
employees who are deprived of employment by an assumption or
discontinuance of intercity passenger service by Amtrak shall
be eligible for employee protection benefits under section 701
of the Regional Rail Reorganization Act of 1973 (45 U.S.C.
797), notwithstanding any other provision of law, agreement, or
arrangement, and notwithstanding the inability of such
employees otherwise to meet the eligibility requirements of
such section. Such protection shall be the exclusive protection
applicable to Conrail employees deprived of employment or
adversely affected by any such assumption or discontinuance.
CHAPTER 22 CONRAIL PRIVATIZATION
[Sec. 1323. Board of Directors
[The Board of Directors of the Corporation shall be comprised
as follows:
[(1) Except as provided in paragraph (3), with
respect to the period ending June 30, 1987, the board
shall remain as it exists on the date of the enactment
of this Act, with any vacancies being filled by
directors nominated and elected by the remainder of the
members of the board.
[(2)(A) Except as provided in paragraph (3), with
respect to the period beginning July 1, 1987, the board
shall consist of--
[(i) 3 directors appointed by the Secretary
of Transportation;
[(ii) the Chief Executive Officer and the
Chief Operating Officer of the Corporation; and
[(iii) 8 directors appointed from among
persons knowledgeable in business affairs by
the special court trustees named under
subparagraph (C), in consultation with the
Secretary of Transportation and the Chairman of
the Board of Directors of the Corporation, and
recognizing the need for and importance of--
[(I) continuity in the direction of
the Corporation's business and affairs;
[(II) preserving the value of the
investment of the United States in the
Corporation;
[(III) preserving essential rail
service provided by the Corporation;
and
[(IV) providing for the sale of the
United States shares.
[(B) The Secretary of Transportation and the special
court trustees may appoint directors under subparagraph
(A) from among existing directors of the Corporation.
[(C) (i) If more than 50 percent of the interest of
the United States in the Corporation has not been sold
before June 1, 1987, the special court established
under section 209 of the Regional Rail Reorganization
Act of 1973 (45 U.S.C. 719) shall, on that date, name 3
trustees from among persons knowledgeable in business
affairs to make the appointments required by
subparagraph (A)(iii). The Corporation shall compensate
the special court trustees in an amount to be specified
by the special court, not to exceed the amount paid by
the Corporation to its directors for comparable
services.
[(ii) No person shall be eligible to be appointed as
a special court trustee under this subparagraph who, at
any time during the 30 months immediately preceding
such appointment, was an officer, employee, or director
of the United States Railway Association, the
Corporation, or the Department of Transportation.
[(3) (A) After the sale date, one director shall be
elected by the public shareholders of the Corporation
for each increment of 12.5 percent of the interest of
the United States in the Corporation that has been sold
through public offering.
[(B) With respect to the period ending June 30,
1987--
[(i) the first director elected under this
paragraph shall replace the member of the board
who became a director most recently from
among--
[(I) directors appointed by the
United States Railway Association, or
elected under paragraph (1) to replace
such a director, andca
[(II) directors appointed by the
Secretary of Transportation, or elected
under paragraph (1) to replace such a
director;
[(ii) the second director elected under this
paragraph shall replace the member of the Board
who became a director most recently from among
directors described in clause (i) (I) or (II),
whichever group the first director replaced
under this subparagraph was not a member of;
and
[(iii) subsequent directors elected under
this paragraph shall replace members
alternately from the groups described in clause
(i) (I) and (II).
[(C) With respect to the period beginning July 1,
1987, directors elected under this paragraph shall
replace directors appointed by the special court
trustees under paragraph (2)(A)(iii), in the order
designated by the special court trustees in a list to
be issued at the time of such original appointments.
[(D) With respect to the period beginning on the
first date more than 50 percent of the interest of the
United States in the Corporation has been sold through
public offering and ending when 100 percent of such
interest has been sold--
[(i) all remaining members of the board
referred to in paragraph (2)(A)(iii), and
[(ii) with respect to the period ending June
30, 1987, all remaining members of the board,
except 3 members appointed by the Secretary of
Transportation and the Chief Executive Officer
and the Chief Operating Officer of the
Corporation,
shall be replaced by directors elected by the public
shareholders of the Corporation.
[(E) After 100 percent of the interest of the United
States in the Corporation has been sold, any remaining
directors appointed by the Secretary of Transportation,
the United States Railway Association, or the special
courttrustees referred to under paragraph (2)(A)(iii),
shall be replaced by director selected by the public
shareholders of the Corporation.
[(F) Nothing in this paragraph shall be construed to
prohibit any director referred to in this section from
being elected as a director by the public shareholders
of the Corporation.
[(4) (A) No director appointed or elected under this
section shall be a special court trustee or an employee
of the United States, except as elected by the public
shareholders of the Corporation.
[(B) No director appointed or elected under this
section shall be an employee of the Corporation, except
as provided in paragraph (2)(A)(ii) or as elected by
the public shareholders of the Corporation.]
TITLE 49--TRANSPORTATION
Sec. 11347. Employee protective arrangements in transactions involving
rail carriers
When a rail carrier is involved in a transaction for which
approval is sought under sections 11344 and 11345 or section
11346 of this title, the Interstate Commerce Commission shall
require the carrier to provide a fair arrangement at least as
protective of the interests of employees who are affected by
the transaction as the terms imposed under this section before
February 5, 1976, and the terms established under [sections
24307(c), 24312, and] section 24706(c) of this title.
Notwithstanding this subtitle, the arrangement may be remade by
the rail carrier and the authorized representative of its
employees. The arrangement and the order approving the
transaction must require that the employees of the affected
rail carrier will not be in a worse position related to their
employment as a result of the transaction during the 4 years
following the effective date of the final action of the
Commission (or if an employee was employed for a lesser period
of time by the carrier before the action became effective, for
that lesser period).
Sec. 22101. Financial assistance for State projects
(a) General.--The Secretary of Transportation shall provide
financial assistance to a State, as provided under this
chapter, for a rail freight assistance project of the State
when a rail carrier subject to subchapter I of chapter 105 of
this title maintains a rail line in the State. The assistance
is for the cost of--
(1) acquiring, in any way the State considers
appropriate, an interest in a rail line or rail
property to maintain existing, or to provide future,
rail freight transportation, but only if the Interstate
Commerce Commission has authorized, or exempted from
the requirements of that authorization, the abandonment
of, or the discontinuance of rail transportation on,
the rail line related to the project;
(2) improving and rehabilitating rail property on a
rail line to the extent necessary to allow adequate and
efficient rail freight transportation on the line, but
only if the rail carrier certifies that the rail line
related to the project carried not more than 5,000,000
gross ton-miles of freight a mile in the prior year;
[and]
(3) building rail or rail-related facilities
(including new connections between at least 2 existing
rail lines, intermodal freight terminals, sidings,
ridges, and relocation of existing lines) to improve
the quality and efficiency of the rail freight
transportation, but only if the rail carrier certifies
that the rail line related to the project carried not
more than 5,000,000 gross ton-miles of freight a mile
in the prior [year.] year;
(4) the cost of closing or improving a railroad grade
crossing or series of railroad grade crossings; and
(5) the cost of creating a State-supervised grain car
pool.
(b) Calculating Cost-Benefit Ratio.--The Secretary shall
establish a methodology for calculating the ratio of benefits
to costs of projects proposed under this chapter. In
establishing the methodology, the Secretary shall consider the
need for equitable treatment of different regions of the United
States and different commodities transported by rail. The
establishment of the methodology is committed to the discretion
of the secretary.
(c) Conditions.--
(1) Assistance for a project shall be provided under
this chapter only if--
(A) a rail carrier certifies that the rail
line related to the project carried more than
20 carloads a mile during the most recent year
during which 49 USC 22101 (1994) transportation
was provided by the carrier on the line; and
(B) the ratio of benefits to costs for the
project, as calculated using the methodology
established under subsection (b) of this
section, is more than 1.0.
(2) If the rail carrier that provided the
transportation on the rail line is no longer in
existence, the applicant for the project shall provide
the information required by the certification under
paragraph (1)(A) of this subsection in the way the
Secretary prescribes.
(3) The Secretary may waive the requirement of
paragraph (1)(A) or (2) of this subsection if the
Secretary--
(A) decides that the rail line has
contractual guarantees of at least 40 carloads
a mile for each of the first 2 years of
operation of the proposed project; and
(B) finds that there is a reasonable
expectation that the contractual guarantees
will be fulfilled.
(d) Disaster Funding For Railroads._
(1) The Secretary may declare that a disaster has
occurred and that it is necessary to repair and rebuild
rail lines damaged as a result of such disaster. If the
Secretary makes the declaration under this paragraph,
the Secretary may--
(A) waive the requirements of this section;
and
(B) prescribe the form and time for
applications for assistance made available
herein.
(2) The Secretary may not provide assistance under
this subsection unless emergency disaster relief funds
are appropriated for that purpose.
(3) Funds provided for under this subsection shall
remain available until extended.
[(d)] (e) Limitations on Amounts.--A State may not receive
more than 15 percent of the amounts provided in a fiscal year
under this chapter. Not more than 20 percent of the amounts
available under this chapter may be provided in a fiscal year
for any one project.
Sec. 22108. Authorization of appropriations
[(a) General.--(1) Not more than the following amounts may be
appropriated to the Secretary of Transportation to carry out
this chapter:
[(A) $25,000,000 for the fiscal year ending September
30, 1993.
[(B) $30,000,000 for the fiscal year ending September
30, 1994.]
(a) General._
(1) There is authorized to be appropriated to the
Secretary of Transportation to carry out this chapter
the sum of $25,000,000 for the fiscal year ending
September 30, 1996, and for each subsequent fiscal
year.
(2) Amounts appropriated under paragraph (1) of this
subsection remain available until expended.
(3) No amount may be appropriated under this
subsection to the Secretary for any period after
September 30, 1994, to carry out this chapter.
(b) Distribution of Amounts.--The Secretary shall establish
procedures necessary to ensure that amounts available to the
Secretary for projects under this chapter are distributed not
later than April 1 of the fiscal year for which the amounts are
appropriated. If any amounts are not distributed by April 1,
the Secretary shall report to the Committee on Energy and
Commerce of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate on the
status of those amounts and the reasons for the delay in
distribution.
(c) Availability of other Amounts.--Amounts appropriated to
carry out section 5(i) of the Department of Transportation Act
for fiscal year 1990 that are not applied for or that remain
obligated on January 1, 1991, are available to the secretary
for projects under this chapter.
Sec. 24101. Findings, purpose, and goals
(a) Findings.--
(1) Public convenience and necessity require that
Amtrak, to the extent its budget allows, provide
modern, cost-efficient, and energy-efficient intercity
rail passenger transportation between crowded urban
areas and in other areas of the United States.
(2) Rail passenger transportation can help alleviate
overcrowding of airways and airports and on highways.
(3) A traveler in the United States should have the
greatest possible choice of transportation most
convenient to the needs of the traveler.
(4) A greater degree of cooperation is necessary
among Amtrak, other rail carriers, State, regional, and
local governments, the private sector, labor
organizations, and suppliers of services and equipment
to Amtrak to achieve a performance level sufficient to
justify expending public money.
(5) Modern and efficient commuter rail passenger
transportation is important to the viability and well-
being of major urban areas and to the energy
conservation and self-sufficiency goals of the United
States.
(6) As a rail passenger transportation entity, Amtrak
should be available to operate commuter rail passenger
transportation through its subsidiary, Amtrak Commuter,
under contract with commuter authorities that do not
provide the transportation themselves as part of the
governmental function of the State.
(7) The Northeast Corridor is a valuable resource of
the United States used by intercity and commuter rail
passenger transportation and freight transportation.
(8) Greater coordination between intercity and
commuter rail passenger transportation is required.
(b) Purpose.--By using innovative operating and marketing
concepts, Amtrak shall provide intercity and commuter rail
passenger transportation that completely develops the potential
of modern rail transportation to meet the intercity and
commuter passenger transportation needs of the United States.
(c) Goals.--Amtrak shall--
(1) use its best business judgment in acting to
minimize United States Government subsidies,
including--
(A) increasing fares;
(B) increasing revenue from the
transportation of mail and express;
(C) reducing losses on food service;
(D) improving its contracts with operating
rail carriers;
(E) reducing management costs; and
(F) increasing employee productivity;
(2) minimize Government subsidies by encouraging
State, regional, and local governments and the private
[sector] sector, separately or in combination, to share
the cost of providing rail passenger transportation,
including the cost of operating facilities;
(3) carry out strategies to achieve immediately
maximum productivity and efficiency consistent with
safe and efficient transportation;
(4) operate Amtrak trains, to the maximum extent
feasible, to all station stops within 15 minutes of the
time established in public timetables;
(5) develop transportation on rail corridors
subsidized by States and private parties;
(6) implement schedules based on a systemwide average
speed of at least 60 miles an hour that can be achieved
with a degree of reliability and passenger comfort;
(7) encourage rail carriers to assist in improving
intercity rail passenger transportation;
(8) improve generally the performance of Amtrak
through comprehensive and systematic operational
programs and employee incentives;
(9) carry out policies that ensure equitable access
to the Northeast Corridor by intercity and commuter
rail passenger transportation;
(10) manage capital investment in such a way as to
provide customers with world class service;
(11) treat all passengers with respect, courtesy, and
dignity;
[(10)] (12) coordinate the uses of the Northeast
Corridor, particularly intercity and commuter rail
passenger transportation; and
[(11)] (13) maximize the use of its resources,
including the most cost-effective use of employees,
facilities, and real property.
[(d) Minimizing Government Subsidies.--To carry out
subsection (c)(11) of this section, Amtrak is encouraged to
make agreements with the private sector and undertake
initiatives that are consistent with good business judgment and
designed to maximize its revenues and minimize Government
subsidies.]
(d) Minimizing Government Subsidies.--To carry out this part,
Amtrak is encouraged to make agreements with the private sector
and undertake initiatives that are consistent with good
business judgment, that produce income to minimize Government
subsidies, and that promote the potential privatization of
Amtrak's operations. Within 90 days after the date of enactment
of the Amtrak and Local Rail Revitalization Act of 1995, Amtrak
shall prepare a financial plan to operate within the funding
levels authorized by section 24104 of this chapter, including
budgetary goals for fiscal years 1995 through 1997. Commencing
no later than the fiscal year following the fifth anniversary
of the enactment of the Amtrak and Local Rail Revitalization
Act of 1995, Amtrak shall operate without the need for any
Federal operating grant funds appropriated for its benefit. The
plan shall include internal reforms to maximize cost savings
through overhead reduction and productivity improvement, steps
to maximize revenue, implementation of a commercially
rationalized national route system, and achievement through
negotiation of substantial reductions in costs directly related
to health and welfare plans, train and engine crew size
requirements, and mechanical workforce inefficiencies. Each
year before the fifth anniversary of the date of enactment of
the Amtrak and Local Rail Revitalization Act of 1995, the
Amtrak Reform Council shall submit to the congress a progress
report outlining the likelihood that Amtrak will not require
Federal operating grants after that anniversary.
Sec. 24102. Definitions
In this part--
(1) ``Amtrak'' means the National Railroad Passenger
Corporation and any successor, assign, subsidiary, and,
except for purposes of the Internal Revenue Code of
1986, any affiliate, or joint venture in which that
Corporation has a material interest.
[(1)] (2) ``auto-ferry transportation'' means
intercity rail passenger transportation--
(A) of automobiles or recreational vehicles
and their occupants; and
(B) when space is available, of used
unoccupied vehicles.
[(2) ``avoidable loss'' means the avoidable costs of
providing rail passenger transportation, less revenue
attributable to the transportation, as determined by
the Interstate Commerce Commission under section 553 of
title 5.]
(3) ``basic system'' means the system of intercity
rail passenger transportation designated by the
Secretary of Transportation under section 4 of the
Amtrak Improvement Act of 1978 and approved by
Congress, and transportation required to be provided
under section 24705(a) of this title and section 4(g)
of the Act, including changes in the system or
transportation that Amtrak makes using the route and
service criteria.
(4) ``commuter authority'' means a State, local, or
regional entity established provide, or make a contract
providing for, commuter rail passenger transportation.
(5) ``commuter rail passenger transportation'' means
short-haul rail passenger transportation in
metropolitan and suburban areas usually having reduced
fare, multiple-ride, and commuter tickets and morning
and evening peak period operations.
(6) ``intercity rail passenger transportation'' means
rail passenger transportation, except commuter rail
passenger transportation.
(7) ``Northeast Corridor'' means Connecticut,
Delaware, the District of Columbia, Maryland,
Massachusetts, New Jersey, New York, Pennsylvania, and
Rhode Island.
(8) ``rail carrier'' means a [person] person,
including a unit of State or local government,
providing rail transportation for compensation.
(8) ``rail passenger transportation'' means the
interstate, intrastate, or international transportation
of passengers by rail, including mail and express.
(9) ``rate'' means a rate, fare, or charge for rail
transportation.
(10) ``regional transportation authority'' means an
entity established provide passenger transportation in
a region.
[(11) ``route and service criteria'' means the
criteria and procedures for making route and service
decisions established under section 404(c)(1)-(3)(A) of
the Rail Passenger Service Act.]
Sec. 24104. Authorization of appropriations
[(a) Capital Acquisition and Corridor Development.--
[(1) Not more than $250,000,000 may be appropriated
to the Secretary of transportation for each of the
fiscal years ending September 30, 1993, and September
30, 1994, for the benefit of Amtrak to make capital
expenditures under chapters 243--247 of this title.
[(2) In addition to amounts that may be appropriated
under section 24909 of this title, not more than the
following amounts may be appropriated to the secretary
for the benefit of Amtrak to make capital expenditures
under chapter 249 of this title:
[(A) $220,000,000 for the fiscal year ending
September 30, 1993.
[(B) $250,000,000 for the fiscal year ending
September 30, 1994.
[(3) (A) Not more than 15 percent of each of the
amounts appropriated under paragraphs (1) and (2) of
this subsection is available for transportation
described in subparagraphs (B) and (C) of this
paragraph.
[(B) Amounts made available under subparagraph (A) of
this paragraph shall be used to develop new intercity
rail passenger transportation on corridors between
cities undergoing significant population growth and in
which the transportation reasonably can be expected to
provide travel times comparable with other surface
transportation modes. An amount may be expended for the
transportation only if a State requests the
transportation and the State and Amtrak agree that--
[(i) Amtrak will pay at least 90 percent of
the cost of acquiring rolling stock for the
transportation; and
[(ii) the State will pay at least 90 percent
of the cost of improving the right of way,
including track structure, signal systems,
passenger station facilities, highway and
pedestrian grade crossings, and other safety
equipment and facilities.
[(C) Amounts made available under subparagraph (A) of
this paragraph shall be used to begin new long distance
intercity rail passenger transportation. An amount may
be expended for the transportation only if a State
requests the transportation and the State and Amtrak
agree that--
[(i) Amtrak will pay at least 75 percent of
the cost of acquiring rolling stock for the
transportation; and
[(ii) the State will pay at least 90 percent
of the cost of improving the right of way,
including track structure, signal systems,
passenger station facilities, highway and
pedestrian grade crossings, and other safety
equipment and facilities.
[(D) Section 24704 of this title applies to the
operating expenses of transportation described in
subparagraphs (B) and (C) of this paragraph.
[(b) Operating Expenses.--
[(1) Not more than $381,000,000 may be appropriated
to the Secretary for each of the fiscal years ending
September 30, 1993, and September 30, 1994, for the
benefit of Amtrak for operating expenses. Not more than
5 percent of the amounts appropriated for each fiscal
year shall be used to pay operating expenses under
section 24704 of this title for transportation in
operation on September 30, 1992.
[(2) (A) Not more than the following amounts may be
appropriated to the secretary for the benefit of Amtrak
for operating losses under section 24704 of this title
for transportation beginning after September 30, 1992:
[(i) $7,500,000 for the fiscal year ending
September 30, 1993.
[(ii) $9,500,000 for the fiscal year ending
September 30, 1994.
[(B) The expenditure by Amtrak of an amount
appropriated under subparagraph(A) of this paragraph is
deemed not to be an operating expense when calculating
the revenue-to-operating expense ratio of Amtrak.]
(a) In General.--There are authorized to be appropriated to
the Secretary of Transportation--
(1) $772,000,000 for fiscal year 1995;
(2) $712,000,000 for fiscal year 1996;
(3) $712,000,000 for fiscal year 1997;
(4) $712,000,000 for fiscal year 1998; and
(5) $403,000,000 for fiscal year 1999,
for the benefit of Amtrak for capital expenditures under
chapters 243 and 247 of this title, operating expenses, and
payments described in subsection (c)(1)(A) through (C). In
fiscal years following the fifth anniversary of the enactment
of the Amtrak and Local Rail Revitalization Act of 1995 no
funds authorized for Amtrak shall be used for operating
expenses.
(b) Additional Authorizations.--In addition to amounts
appropriated under subsection (a), there are authorized to be
appropriated to the Secretary of Transportation--
(1) $200,000,000 for fiscal year 1995;
(2) $200,000,000 for fiscal year 1996;
(3) $200,000,000 for fiscal year 1997;
(4) $200,000,000 for fiscal year 1998; and
(5) $200,000,000 for fiscal year 1999,
for the benefit of Amtrak to make capital expenditures under
chapter 249 of this title.
(c) Mandatory Payments.--
(1) Not more than $150,000,000 for the fiscal year
ending September 30, 1993, and amounts that may be
necessary for the fiscal year ending September 30,
1994, may be appropriated to the Secretary to pay--
(A) tax liabilities under section 3221 of the
Internal Revenue Code of 1986 (26 U.S.C. 3221)
due in those fiscal years that are more than
the amount needed for benefits for individuals
who retire from Amtrak and for their
beneficiaries;
(B) obligations of Amtrak under section 8(a)
of the Railroad Unemployment Insurance Act (45
U.S.C. 358(a)) due in those fiscal years that
are more than obligations of Amtrak calculated
on an experience-related basis; and
(C) obligations of Amtrak due under section
3321 of the Code (26 U.S.C. 3321).
(2) Amounts appropriated under this subsection are
not a United States government subsidy of Amtrak.
[(d) Payment to Amtrak.--Amounts appropriated under this
section shall be paid to Amtrak under the budget request of the
Secretary as approved or modified congress when the amounts are
appropriated. A payment may not be made more 49 USC 24104
(1994) frequently than once every 90 days, unless Amtrak, for
good cause, requests more frequent payment before a 90-day
period ends. In each fiscal year in which amounts are
authorized to be appropriated under this section, amounts
appropriated shall be paid to Amtrak as follows:
[(1) 50 percent on October 1.
[(2) 25 percent on January 1.
[(3) 25 percent on April 1.]
(d) Administration of Appropriations.--Funds appropriated
pursuant to this section shall be provided to Amtrak upon
appropriation when requested by Amtrak. Notwithstanding any
agreement to the contrary, funds that have been appropriated to
the Secretary for use in implementing the Northeast Corridor
Improvement Project prior to September 30, 1995, shall be made
immediately available to Amtrak for use in undertaking the
improvements authorized by chapter 249 of this title.
(e) Availability of Amounts and Early Appropriations.--
(1) Amounts appropriated under this section remain
available until expended.
(2) Amounts for capital acquisitions and improvements
may be appropriated in a fiscal year before the fiscal
year in which the amounts will be obligated.
(f) Limitations on Use.--Amounts appropriated under this
section may not be used to subsidize operating losses of
commuter rail passenger or rail freight transportation.
(g) Sunset Trigger._
(1) Following the third anniversary of the enactment
of the Amtrak and Local Rail Revitalization Act of
1995, the Amtrak Reform Council shall review the
progress Amtrak has made under its plan to achieve the
financial goals specified in section 24101(d), and
determine on the basis of performance under the plan
the likelihood that Amtrak will not require Federal
operating grant funds appropriated for its benefit
after the fifth anniversary of the enactment of that
Act. The Amtrak Reform Council will submit a report on
its findings and determinations, and the action plan
recommended for implementation by the Secretary and
Amtrak under section 601 of that Act to the Congress 90
days after the third anniversary of the enactment of
that Act. Authorizations for appropriations made by
this section for fiscal years beginning after the
submission of the report to the Congress pursuant to
this subsection are conditioned on Amtrak achieving the
targets in its plan and findings that Amtrak will not
require Federal operating grant funds to be
appropriated for its benefit in fiscal years following
the fifth anniversary of the enactment of that Act.
(2) In determining whether Amtrak has met the targets
in its plans and the likelihood that it will not
require a Federal operating subsidy for fiscal years
beginning after the fifth anniversary of the date of
enactment of the Amtrak and Local Rail Revitalization
Act of 1995, the Amtrak Reform Council shall take into
account Acts of God, national emergencies, and other
events beyond the reasonable control of Amtrak, and
shall not consider any liability of Amtrak under
section 24301(g) of title 49, United States Code.
(3) If the Amtrak Reform Council finds that--
(A) Amtrak--
(i) has met the financial goals
anticipated for it at the end of 3
years, taking into account the factors
in paragraph (2), and
(ii) will be able to maintain a
national passenger rail system which
provides access to all areas of the
country without Federal operational
support,
then the Secretary and Amtrak shall implement
the Amtrak plan developed under section
601(b)(6)(A) of the Amtrak and Local Rail
Revitalization Act of 1995 providing the
continued operation of Amtrak unless the
Congress disapproves the plan within 45 days
after it is submitted to the Congress; or
(B) Amtrak has failed to meet the financial
goals anticipated for it at the end of 3 years,
taking into account the factors in paragraph
(3), then the Secretary and Amtrak shall
implement the Amtrak sunset plan developed
under section 601(b)(6)(B) of that Act
providing for the complete liquidation of
Amtrak, unless the Congress disapproves the
plan within 45 days after it is submitted to
the Congress.
(4) The annual report of the Amtrak Reform Council
shall include an assessment of progress on the
resolution or status of productivity issues,
including--
(A) train and engine manning requirements;
(B) utilization of employees in the
mechanical operations;
(C) health and welfare benefits and plan
design;
(D) management efficiency improvement;
(E) property utilization and management;
(F) revenue enhancement and ridership;
(G) Amtrak's operation as a national
passenger rail system which provides access to
all areas of the country and ties together
existing and emerging regional rail passenger
networks and other intermodal passenger
service;
(H) technology utilization; and
(I) procurement reforms.
Sec. 24301. Status and applicable laws
(a) Status.--Amtrak--
(1) is a [rail carrier under section 10102] railroad
carrier under section 20102(2) and chapters 261 and 281
of this title;
(2) shall be operated and managed as a for-profit
corporation; and
(3) is not a department, agency, or instrumentality
of the United States Government.
(b) Principal Office and Place of Business.--[The principal
office and place of business of Amtrak are in the District of
Columbia.] Amtrak is qualified to do business in each State in
which Amtrak carries out an activity authorized under this
part. Amtrak shall accept service of process by certified mail
addressed to the secretary of Amtrak at its principal office
and place of business. Amtrak is a citizen only of the
[District of Columbia] State in which its principal office and
place of business is located when deciding original
jurisdiction of the district courts of the United States in a
civil action. For purposes of this subsection, the term
``State'' includes the District of Columbia. Notwithstanding
section 3 of the District of Columbia Business Corporation Act,
Amtrak may, at its election, continue to be organized under the
provisions of that Act.
[(c) Application of Subtitle IV.--
[(1) Subtitle IV of this title applies to Amtrak,
except for provisions related to the--
[(A) regulation of rates;
[(B) abandonment or extension of rail lines
used only for passenger transportation and the
abandonment or extension of operations over
those lines;
[(C) regulation of routes and service;
[(D) discontinuance or change of rail
passenger transportation operations; and
[(E) issuance of securities or the assumption
of an obligation or liability related to the
securities of others.
[(2) Notwithstanding this subsection--
[(A) sections 10721-10724 of this title apply
to Amtrak; and
[(B) on application of an adversely affected
motor carrier, the Interstate Commerce
Commission under any provision of subtitle IV
of this title applicable to a carrier subject
to subchapter I of chapter 105 of this title
may hear a complaint about an unfair or
predatory rate or marketing practice of Amtrak
for a route or service operating at a loss.]
(c) Application of Subtitle IV.--Subtitle IV of this title
shall not apply to Amtrak, except for sections 11303, 11342(a),
11504(a) and (d), and 11707. Notwithstanding the preceding
sentence, Amtrak shall continue to be considered an employer
under the Railroad Retirement Act of 1974, the Railroad
Unemployment Insurance Act, and the Railroad Retirement Tax
Act.
(d) Application of Safety and Employee Relations Laws and
Regulations.--Laws and regulations governing safety, employee
representation for collective bargaining purposes, the handling
of disputes between carriers and employees, employee
retirement, annuity, and unemployment systems, and other
dealings with employees that apply to a common carrier subject
to subchapter I of chapter 105 of this title apply to Amtrak.
(e) Application of Certain Additional Laws.--Section 552 of
title 5, this part, and, to the extent consistent with this
part, [the District of Columbia Business Corporation Act (D.C.
Code Sec. 29-301 et seq.)] the corporate law of the State in
which it is incorporated apply to Amtrak. Section 552 of title
5, United States Code, shall apply to Amtrak in any fiscal year
for which Amtrak receives a Federal operating subsidy.
[(f) Laws Governing Leases and Contracts.--The laws of the
District of Columbia govern leases and contracts of Amtrak,
regardless of where they are executed.]
(f) Tax Exemption for Certain Commuter Authorities.--A
commuter authority that was eligible to make a contract with
Amtrak Commuter to provide commuter rail passenger
transportation but which decided to provide its own rail
passenger transportation beginning January 1, 1983, is exempt,
effective October 1, 1981, from paying a tax or fee to the same
extent Amtrak is exempt.
(g) Nonapplication of Rate, Route, and Service Laws.--A
State or other law related to rates, routes, or service does
not apply to Amtrak in connection with rail passenger
transportation.
(h) Nonapplication of Pay Period Laws.--A State or local
law related to pay periods or days for payment of employees
does not apply to Amtrak. Except when otherwise provided under
a collective bargaining agreement, an employee of Amtrak shall
be paid at least as frequently as the employee was paid on
October 1, 1979.
(i) Preemption Related to Employee Work Requirements.--A
State may not adapt or continue in force a law, rule,
regulation, order, or standard requiring Amtrak to employ a
specified number of individuals to perform a particular task,
function, or operation.
(j) Nonapplication of Laws on Joint Use or Operation of
Facilities and Equipment.--Prohibitions of law applicable to an
agreement for the joint use or operation of facilities and
equipment necessary to provide quick and efficient rail
passenger transportation do not apply to a person making an
agreement with Amtrak to the extent necessary to allow the
person to make and carry out obligations under the agreement.
(k) Exemption from Additional Taxes.--
(1) In this subsection--
(A) ``additional tax'' means a tax or fee--
(i) on the acquisition, improvement,
ownership, or operation of personal
property by Amtrak; and
(ii) on real property, except a tax
or fee on the acquisition of real
property or on the value of real
property not attributable to
improvements made, or the operation of
those improvements, by Amtrak.
(B) ``Amtrak'' includes a rail carrier
subsidiary of Amtrak and a lessor or lessee of
Amtrak or one of its rail carrier subsidiaries.
(2) Amtrak is not required to pay an additional tax
because of an expenditure to acquire or improve real
property, equipment, a facility, or right-of-way
material or structures used in providing rail passenger
transportation, even if that use is indirect.
(l) Exemption From Taxes Levied After September 30, 1981.--
(1) Amtrak or a rail carrier subsidiary of [Amtrak]
Amtrak, and any passenger or other customer of Amtrak
or such subsidiary, is exempt from a [tax or fee
imposed by a State, a political subdivision of a State,
or a local taxing authority and levied on it] tax, fee,
head charge, or other charge, imposed or levied by a
State, political subdivision, or local taxing
authority, directly or indirectly on Amtrak, a rail
carrier subsidiary of Amtrak, or on persons traveling
in intercity rail passenger transportation or on mail
or express transportation provided by Amtrak or such a
subsidiary, or on the carriage of such persons, mail,
or express, or on the sale of any such transportation,
or on the gross receipts derived therefrom after
September 30, 1981. [However, Amtrak is not exempt
under this subsection from a tax or fee that it was
required to pay as of September 10, 1982.] Amtrak is
not exempt from a tax or fee it was required to pay as
of September 10, 1982, if that tax or fee was assessed
before April 1, 1995.
(2) The district courts of the United States have
original jurisdiction over a civil action Amtrak brings
to enforce this subsection and may grant equitable or
declaratory relief requested by Amtrak.
(m) Waste Disposal.--
(1) An intercity rail passenger car manufactured
after October 14, 1990, shall be built to provide for
the discharge of human waste only at a servicing
facility. Amtrak shall retrofit each of its intercity
rail passenger cars that was manufactured after May 1,
1971, and before October 15, 1990, with a human waste
disposal system that provides for the discharge of
human waste only at servicing facility. Subject to
appropriations--
(A) the retrofit program shall be completed
not later than October 15, [1996] 2001; and
(B) a car that does not provide for the
discharge of human waste only at a servicing
facility shall be removed from service after
that date.
(2) Section 361 of the Public Health Service Act (42
U.S.C. 264) and other laws of the United States,
States, and local governments do not apply to waste
disposal from rail carrier vehicles operated in
intercity rail passenger transportation. The district
courts of the United States have original jurisdiction
over a civil action Amtrak brings to enforce this
paragraph and may grant equitable or declaratory relief
requested by Amtrak.
(n) Rail Transportation Treated Equally.--When authorizing
transportation in the continental United States for an officer,
employee, or member of the uniformed services of a department,
agency, or instrumentality of the government, the head of that
department, agency, or instrumentality shall consider rail
transportation (including transportation by extra-fare trains)
the same as transportation by another authorized mode. The
Administrator of General services shall include Amtrak in the
contract air program of the Administrator in markets in which
transportation provided by Amtrak is competitive with other
carriers on fares and total trip times.
(o) Nonapplication of Certain Other Laws.--State and local
laws and regulations that impair the provision of mail,
express, and auto-ferry transportation do not apply to Amtrak
or a rail carrier providing mail, express, or auto-ferry
transportation.
(p) Tax Relief._
(1) In general._To the extent funds are appropriated
pursuant to paragraph (3) of this subsection, Amtrak
shall, effective October 1, 1995, be relieved from any
liability or obligation to pay--
(A) tax liabilities under section 3221 of the
Internal Revenue Code of 1986 that are more
than the amount needed for benefits for
individuals who retire from Amtrak and for
their beneficiaries; and
(B) obligations of Amtrak under section 8(a)
of the Railroad Unemployment Insurance Act (45
U.S.C. 358(a)) that are more than obligations
of Amtrak calculated on an experience-related
basis.
(2) Scope._
(A) Employee classification._In determining
Amtrak's liabilities or obligations under the
provisions of law to which reference is made in
paragraph (1), workers not on Amtrak's employee
roster shall not be classified as Amtrak's
employees.
(B) No reduction of benefit._Nothing in this
paragraph shall be construed as a basis for
reducing any benefit payable to any railroad
employee, retiree, or beneficiary.
(C) Residual liability._Amtrak remains liable
for any obligations not paid under paragraph
(3).
(3) Authorization of appropriations._There are
authorized to be appropriated to the Secretary amounts
necessary to relieve Amtrak of portions of its
liabilities under section 3221 of the Internal Revenue
Code of 1086 and section 8(a) of the railroad
Unemployment Insurance Act, as provided in paragraph
(1) of this subsection, up to the estimated amount of
such portions in each calendar year. To the extent
funds are appropriated pursuant to this paragraph,
Amtrak is relieved of such liabilities. Appropriations
to the Secretary which have been authorized by this
subsection shall be paid in the same manner as tax
liabilities or obligations from which Amtrak has not
been relieved. Amounts appropriated under this
subsection shall not be considered a United States
Government subsidy of Amtrak.
(q) Power Purchases._The sale of power to Amtrak for its own
use, including operating its electric traction system, does not
constitute a direct sale of electric energy to an ultimate
consumer under section 212(h)(1) of the Federal Power Act (16
U.S.C. 824k(h)(1)).
(r) Power Sales to Commuter Authorities and Others._A State
or other law, rule, regulation, order, or standard relating to
the licensing, rates, terms, and conditions of sales of
electric energy at retail does not apply to Amtrak in making
sales of electric energy in the Northeast Corridor from its
electric power transmission and distribution system to commuter
authorities and other consumers of electricity. For purposes of
this subsection, the term `sales' means sales to consumers of
electricity directly connected to Amtrak's electric power
system except to the extent that Amtrak is otherwise authorized
by law to make other sales of electric energy.
(s) Transmission Service._Amtrak, or any entity selling power
to Amtrak for Amtrak's use or to be resold by Amtrak to
commuter authorities or other consumers of electricity in the
Northeast Corridor from Amtrak's electric power transmission
and distribution system, may seek an order under section 211(a)
of the Federal Power Act (16 U.S.C. 824j(a)) requiring a
utility to provide transmission service for this power without
regard to any restrictions in subsections (g) and (h) of
section 212 of such Act (16 U.S.C. 824k).
Sec. 24303. Officers
(a) Appointment and Terms.--Amtrak has a President and other
officers that are named and appointed by the board of directors
of Amtrak. An officer of Amtrak must be a citizen of the United
States. Officers of Amtrak serve at the pleasure of the board.
(b) Pay.--The board may fix the pay of the officers of
Amtrak. An officer may not be paid more than the general level
of pay for officers of rail carriers with comparable
responsibility. The preceding sentence shall not apply for any
fiscal year for which no Federal operating assistance is
provided to Amtrak.--
(c) Conflicts of Interest.--When employed by Amtrak, an
officer may not have financial or employment relationship with
another rail carrier, except that holding securities issued by
a rail carrier is not deemed to be a violation of this
subsection if the officer holding the securities makes a
complete public disclosure of the holdings and does not
participate in any decision directly affecting the rail
carrier.
Sec. 24305. General authority
(a) Acquisition and Operation of Equipment and Facilities.--
(1) Amtrak may acquire, operate, maintain, and make
contracts for the operation and maintenance of
equipment and facilities necessary for intercity and
commuter rail passenger transportation, the
transportation of mail and express, and auto-ferry
transportation.
(2) Amtrak shall operate and control directly, to the
extent practicable, all aspects of the rail passenger
transportation it provides.
(3)(A) Except as provided in subsection (d)(2),
Amtrak may enter into a contract with a motor carrier
of passengers for the intercity transportation of
passengers by motor carrier over regular routes only--
(i) if the motor carrier is not a public
recipient of governmental assistance, as such
term is defined in section 10922(d)(1)(F)(i) of
this title, other than a recipient of funds
under section 18 of the Federal Transit Act;
(ii) for passengers who have had prior
movement by rail or will have subsequent
movement by rail; and
(iii) if the buses, when used in the
provision of such transportation, are used
exclusively for the transportation of
passengers described in clause (ii).
(B) Subparagraph (A) shall not apply to
transportation funded predominantly by a State or local
government, or to ticket selling agreements.
[(b) Maintenance and Rehabilitation.--Amtrak may maintain and
rehabilitate rail passenger equipment and shall maintain a
regional maintenance plan that includes--
[(1) a review panel at the principal office of Amtrak
consisting of members the President of Amtrak
designates;
[(2) a system wide inventory of spare equipment parts
in each operational region;
[(3) enough maintenance employees for cars and
locomotives in each region;
[(4) a systematic preventive maintenance program;
[(5) periodic evaluations of maintenance costs, time
lags, and parts shortages and corrective actions; and
[(6) other elements or activities Amtrak considers
appropriate.]
(b) Below-Cost Competition._Amtrak shall not submit any bid
for the performance of services under a contract for an amount
less than the cost to Amtrak of performing such services, with
respect to any activity other than the provision of intercity
rail passenger transportation, or mail or express
transportation. For purposes of this subsection, the cost to
Amtrak of performing services shall be determined using
generally accepted accounting principles for contracting. This
subsection shall not apply for any fiscal year for which Amtrak
receives no Federal subsidy.
(c) Miscellaneous Authority.--Amtrak may--
(1) make and carry out appropriate agreements;
(2) transport mail and express and shall use all
feasible methods to obtain the bulk mail business of
the United States Postal Service;
(3) improve its reservation system and advertising;
(4) provide food and beverage services on its trains
only if revenues from the services each year at least
equal the cost of providing the services;
(5) conduct research, development, and demonstration
programs related to the mission of Amtrak; and
(6) buy or lease rail rolling stock and develop and
demonstrate improved rolling stock.
(d) Through Routes and Joint Fares.--
(1) Establishing through routes and joint fares
between Amtrak and other intercity rail passenger
carriers and motor carriers of passengers is consistent
with the public interest and the transportation policy
of the United States. Congress encourages establishing
those routes and fares.
(2) Amtrak may establish through routes and joint
fares with any domestic or international motor carrier,
air carrier, or water carrier.
(3) Congress encourages Amtrak and motor common
carriers of passengers to use the authority conferred
in section 11342(a) of this title for the purpose of
providing improved service to the public and economy of
operation.
(e) Rail Police.--Amtrak may employ rail police to provide
security for rail passengers and property of Amtrak. Rail
police employed by Amtrak who have complied with a State law
establishing requirements applicable to rail police or
individuals employed in a similar position may be employed
without regard to the law of another State containing those
requirements.
(f) Domestic Buying Preferences.--
(1) In this subsection, ``United States'' means the
States, territories, and possessions of the United
States and the District of Columbia.
(2) Amtrak shall buy only--
(A) unmanufactured articles, material, and
supplies mined or produced in the United
States; or
(B) manufactured articles, material, and
supplies manufactured in the United States
substantially from articles, material, and
supplies mined, produced, or manufactured in
the United States.
(3) Paragraph (2) of this subsection applies only
when the cost of those articles, material, or supplies
bought is at least $1,000,000.
(4) On application of Amtrak, the Secretary of
Transportation may exempt Amtrak from this subsection
if the Secretary decides that--
(A) for particular articles, material, or
supplies--
(i) the requirements of paragraph (2)
of this subsection are inconsistent
with the public interest;
(ii) the cost of imposing those
requirements is unreasonable; or
(iii) 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; or
(B) rolling stock or power train equipment
cannot be bought and delivered in the United
States within a reasonable time.
(g) Sale of Surplus Power._Whenever Amtrak owns electric
energy or power transmission capacity that is surplus to its
traction power needs, it may sell such power at wholesale or
retail to any purchaser in the Northeast Corridor, sell power
transmission services, seek interconnection under section 210
of the Federal Power Act (16 U.S.C. 824i), and enter into
coordination, power pooling, and other arrangements with
electric utilities designed to increase Amtrak's revenues or
decrease its costs.
[Sec. 24306. Mail, express, and auto-ferry transportation
[(a) Actions To Increase Revenues.--Amtrak shall take
necessary action to increase its revenues from the
transportation of mail and express. To increase its revenues,
Amtrak may provide auto-ferry transportation as part of the
basic passenger transportation authorized by this part. When
requested by Amtrak, a department, agency, or instrumentality
of the United States Government shall assist in carrying out
this section.
[(b) Authority of Others to Provide Auto-Ferry
Transportation.--
[(1) A person primarily providing auto-ferry
transportation and any other person not a rail carrier
may provide auto-ferry transportation over any route
under a certificate issued by the Interstate Commerce
Commission if the commission finds that the auto-ferry
transportation--
[(A) will not impair the ability of Amtrak to reduce
its losses or increase its revenues; and
[(B) is required to meet the public demand.
[(2) A rail carrier that has not made a contract with
Amtrak to provide rail passenger transportation may
provide auto-ferry transportation over its own rail
lines.
[(3) State and local laws and regulations that impair
the provision of auto-ferry transportation do not apply
to Amtrak or a rail carrier providing auto-ferry
transportation. A rail carrier may not refuse to
participate with Amtrak in providing auto-ferry
transportation because a State or local law or
regulation makes the transportation unlawful.]
Sec. 24307. Special transportation
(a) Reduced Fare Program.--Amtrak shall maintain a reduced
fare program for the following:
(1) individuals at least 65 years of age.
(2) individuals (except alcoholics and drug abusers)
who--
(A) have a physical or mental impairment that
substantially limits a major life activity of
the individual;
(B) have a record of an impairment; or
(C) are regarded as having an impairment.
[(b) Actions to Ensure Access.--Amtrak may act to ensure
access to intercity transportation for elderly or handicapped
individuals on passenger trains operated by or for Amtrak. That
action may include--
[(1) acquiring special equipment;
[(2) conducting special training for employees;
[(3) designing and acquiring new equipment and
facilities;
[(4) eliminating barriers in existing equipment and
facilities to comply with the highest standards of
design, construction, and alteration of property
accommodate elderly and handicapped individuals; and
[(5) providing special assistance to elderly and
handicapped individuals when getting on and off trains
and in terminal areas.]
[(c)] (b) Employee Transportation.--
(1) In this subsection, ``rail carrier employee''
means--
(A) an active full-time employee of a rail
carrier or terminal company and includes an
employee on furlough or leave of absence;
(B) a retired employee of a rail carrier or
terminal company; and
(C) a dependent of an employee referred to in
clause (A) or (B) of this paragraph.
(2) Amtrak shall ensure that a rail carrier employee
eligible for free or reduced-rate rail transportation
on April 30, 1971, under an agreement in effect on that
date is eligible, to the greatest extent practicable,
for free or reduced-rate intercity rail passenger
transportation provided by Amtrak under this part, if
space is available, on terms similar to those available
on that date under the agreement. However, Amtrak may
apply to all rail carrier employees eligible to receive
free or reduced-rate transportation under any agreement
a single system wide schedule of terms that Amtrak
decides applied to a majority of employees on that date
under all those agreements. Unless Amtrak and a rail
carrier make a different agreement, the carrier shall
reimburse Amtrak at the rate of 25 percent of the
system wide average monthly yield of each revenue
passenger-mile. The reimbursement is in place of costs
Amtrak incurs related to free or reduced-rate
transportation, including liability related to travel
of a rail carrier employee eligible for free or
reduced-rate transportation.
(3) This subsection does not prohibit the Interstate
Commerce Commission from ordering retroactive relief in
a proceeding begun or reopened after October 1, 1981.
[Sec. 24310. Assistance for upgrading facilities
[(a) To Correct Dangerous Conditions.--
[(1) Amtrak or the owner of a facility presenting a
danger to the employees, passengers, or property of
Amtrak may petition the Secretary of Transportation for
assistance to the owner for relocation or other
measures undertaken after December 31, 1977, to
minimize or eliminate the danger.
[(2) The Secretary shall recommend to Congress that
Congress authorize amounts for the relocation or other
measures if the Secretary decides that--
[(A) the facility presents a danger of death
or serious injury to an employee or passenger
or of serious damage to that property; and
[(B) the owner should not be expected to bear
the cost of that relocation or other measures.
[(b) To Correct State and Local Violations.--
[(1) Amtrak, by itself or jointly with an owner or
operator of a rail station Amtrak uses to provide rail
passenger transportation, may apply to the Secretary
for amounts that may be appropriated under paragraph
(2) of this subsection to pay or reimburse expenses
incurred after October 1, 1987, related to the station
complying with an official notice received before
October 1, 1987, from a State or local authority
stating that the station violates or allegedly violates
the building, construction, fire, electric, sanitation,
mechanical, or plumbing code.
[(2) Not more than $1,000,000, may be appropriated to
the Secretary to carry out paragraph (1) of this
subsection. Amounts appropriated under this paragraph
remain available until expended.]
TITLE 49--TRANSPORTATION
SUBTITLE V. RAIL PROGRAMS
PART C. PASSENGER TRANSPORTATION
CHAPTER 243. AMTRAK
Sec. 24312. Labor standards
(a) Prevailing Wages and Health and Safety Standards.--[(1)]
Amtrak shall ensure that laborers and mechanics employed by
contractors and subcontractors in construction work financed
under an agreement made under section 24308(a)[, 24701(a), or
24704(b)(2)] of this title will be paid wages not less than
those prevailing on similar construction in the locality, as
determined by the Secretary of Labor under the Act of March 3,
1931 (known as the Davis-Bacon Act) (40 U.S.C. 276a 276a-5).
Amtrak may make such an agreement only after being assured that
required labor standards will be maintained on the construction
work. Health and safety standards prescribed by the Secretary
under section 107 of the Contract Work Hours and Safety
Standards Act (40 U.S.C. 333) apply to all construction work
performed under such an agreement, except for construction work
performed by a rail carrier.
[(2)] (b) Wage rates in a collective bargaining agreement
negotiated under the railway Labor Act (45 U.S.C. 151 et seq.)
are deemed to comply with the Act of March 3, 1931 (known as
the Davis-Bacon Act) (40 U.S.C. 276a 276a-5).
[(b) Contracting Out.--
[(1) Amtrak may not contract out work normally
performed by an employee in a bargaining unit covered
by a contract between a labor organization and Amtrak
or a rail carrier that provided intercity rail
passenger transportation on October 30, 1970, if
contracting out results in the layoff of an employee in
the bargaining unit.
[(2) This subsection does not apply to food and
beverage services provided on trains of Amtrak.]
[Sec. 24313. Rail safety system program
[In consultation with rail labor organizations, Amtrak shall
maintain a rail safety system program for employees working on
property owned by Amtrak. The program shall be a model for
other rail carriers to use in developing safety programs. The
program shall include--
[(1) periodic analyses of accident information,
including primary and secondary causes;
[(2) periodic evaluations of the activities of the
program, particularly specific steps taken in response
to an accident;
[(3) periodic reports on amounts spent for
occupational health and safety activities of the
program;
[(4) periodic reports on reduced costs and personal
injuries because of accident prevention activities of
the program;
[(5) periodic reports on direct accident costs,
including claims related to accidents; and
[(6) reports and evaluations of other information
Amtrak considers appropriate.]
[Sec. 24314. Demonstration of new technology
[(a) Plan.--Amtrak shall develop a plan for demonstrating new
technology in rail passenger equipment. The plan shall provide
that new equipment that Amtrak procures that may increase train
speed significantly over existing rail facilities shall be
demonstrated, to the extent practicable, throughout the
intercity rail passenger system.
[(b) Report.--Not later than September 30, 1993, Amtrak shall
submit to the committee on Energy and Commerce of the House of
Representatives and the committee on Commerce, Science, and
Transportation of the Senate a report summarizing the plan
developed under subsection (a) of this section, including its
goals, locations for technology demonstration, and a schedule
for carrying out the plan.
[(c) Cooperation.--To make efforts to increase train speed
throughout the intercity rail passenger system easier, Amtrak
shall consult and cooperate, to the extent feasible, on request
of eligible applicants proposing a technology demonstration
authorized and financed under a law of the United States, with
those applicants.]
Sec. 24315. Reports and audits
[(a) Amtrak Annual Operations Report.--Not later than
February 15 of each year, Amtrak shall submit to Congress a
report that--
[(1) for each route on which Amtrak provided
intercity rail passenger transportation during the
prior fiscal year, includes information on--
[(A) ridership;
[(B) passenger-miles;
[(C) the short-term avoidable profit or loss
for each passenger-mile;
[(D) the revenue-to-cost ratio;
[(E) revenues;
[(F) the United States Government subsidy;
[(G) the subsidy not provided by the United
States Government; and
[(H) on-time performance;
[(2) provides relevant information about a decision
to pay an officer of Amtrak more than the rate for
level I of the Executive Schedule under section 5312 of
title 5; and
[(3) specifies--
[(A) significant operational problems Amtrak
identifies; and
[(B) proposals by Amtrak to solve those
problems.]
[(b)] (a) Amtrak General and Legislative Annual Report.--
(1) Not later than February 15 of each year, Amtrak
shall submit to the president and Congress a complete
report of its operations, activities, and
accomplishments, including a statement of revenues and
expenditures for the prior fiscal year. The report--
(A) shall include a discussion and accounting
of Amtrak's success in meeting the goal of
section 24902(b) of this title; and
(B) may include recommendations for
legislation, including the amount of financial
assistance needed for operations and capital
improvements, the method of computing the
assistance, and the sources of the assistance.
(2) Amtrak may submit reports to the President and
Congress at other times Amtrak considers desirable.
[(c) Secretary's Report on Effectiveness of this Part.--The
Secretary of Transportation shall prepare a report on the
effectiveness of this part in meeting the requirements for a
balanced transportation system in the United States. The report
may include recommendations for legislation. The Secretary
shall include this report as part of the annual report the
Secretary submits under section 308 (a) of this title.]
[(d)] (b) Independent Audits.--An independent certified
public accountant shall audit the financial statements of
Amtrak each year. The audit shall be carried out at the place
at which the financial statements normally are kept and under
generally accepted auditing standards. A report of the audit
shall be included in the report required by subsection (a) of
this section.
[(e)] (c) Comptroller General Audits.--The Comptroller
General may conduct performance audits of the activities and
transactions of Amtrak. Each audit shall be conducted at the
place at which the Comptroller General decides and under
generally accepted management principles. The Comptroller
General may prescribe regulations governing the audit.
[(f)] (d) Availability of Records and Property of Amtrak and
Rail Carriers.--Amtrak and, if required by the Comptroller
General, a rail carrier with which Amtrak has made a contract
for intercity rail passenger transportation shall make
available for an audit under subsection [(d) or (e)] (b) or (c)
of this section all records and property of, or used by, Amtrak
or the carrier that are necessary for the audit. Amtrak and the
carrier shall provide facilities for verifying transactions
with the balances or securities held by depositories, fiscal
agents, and custodians. Amtrak and the carrier may keep all
reports and property.
[(g)] (e) Comptroller General's Report to Congress.--The
Comptroller General shall submit to Congress a report on each
audit, giving comments and information necessary to inform
Congress on the financial operations and condition of Amtrak
and recommendations related to those operations and conditions.
The report also shall specify any financial transaction or
undertaking the Comptroller General considers is carried out
without authority of law. When the Comptroller General submits
a report to Congress, the Comptroller General shall submit a
copy of it to the President, the Secretary, and Amtrak at the
same time.
(f) Access to Records and Accounts.--A State shall have
access to Amtrak's records, accounts, and other necessary
documents used to determine the amount of any payment to Amtrak
required of the State.
``Sec. 24316. Intercity Rail Passenger Account
(a) Establishment._Amtrak shall establish an Intercity Rail
Passenger Account. Amounts deposited in this account shall be
available for use by Amtrak to--
(1) acquire passenger equipment and locomotives;
(2) encourage State and local investment in
facilities and equipment used to provide intercity rail
passenger transportation; and
(3) address other critical capital priorities.
(b) Deposits._During fiscal years 1995 through 1999, Amtrak
shall deposit amounts equal in the aggregate to 5 percent of
ticket revenue for that 5 fiscal year period into the Intercity
Rail Passenger Account and may deposit into the Account--
(1) payments received for the use of its equipment or
facilities;
(2) claims recovered by Amtrak;
(3) amounts from any other source to the extent
authorized by law; and
(4) amounts received by Amtrak as refunds of taxes on
the fuel required for its operations.
[chapter 245--amtrak commuter
[Sec.
[24501. Status and applicable laws.
[24502. Board of directors.
[24503. Officers.
[24504. General authority.
[24505. Commuter rail passenger transportation.
[24506. Certain duties and powers unaffected.
[Sec. 24501. Status and applicable laws
[(a) Status.--Amtrak Commuter--
[(1) is a wholly-owned subsidiary of Amtrak;
[(2) provides by contract commuter rail passenger
transportation for a commuter authority with which
Amtrak Commuter makes a contract to provide the
transportation under this chapter;
[(3) has no common carrier obligations to provide
rail passenger or rail freight transportation; and
[(4) is not a department, agency, or instrumentality
of the United States Government.
[(b) Application of Safety and Employee Relations Laws and
Regulations.--Chapter 105 of this title does not apply to
Amtrak Commuter. However, laws and regulations governing
safety, employee representation for collective bargaining
purposes, the handling of disputes between carriers and
employees, employee retirement, annuity, and unemployment
systems, and other dealings with employees that apply to a rail
carrier providing transportation subject to subchapter I of
chapter 105 apply to Amtrak Commuter.
[(c) Application of Certain Additional Laws.--This part and,
to the extent consistent with this part, the District of
Columbia Business Corporation Act (D.C. Code Sec. 29--301 et
seq.) apply to Amtrak Commuter.
[(d) Nonapplication of Rate, Route, and Service Laws.--A
State or other law related to rates, routes, or service in
connection with rail passenger transportation does not apply to
Amtrak Commuter.
[(e) Preemption Related to Employee Work Requirements.--A
State may not adopt or continue in force a law, rule,
regulation, order, or standard requiring Amtrak Commuter to
employ a specified number of individuals to perform a
particular task, function, or operation.
[(f) Exemption From Additional Taxes.--
[(1) In this subsection--
[(A) ``additional tax'' means a tax or fee--
[(i) on the acquisition, improvement,
ownership, or operation of personal
property by Amtrak Commuter; and
[(ii) on real property, except a tax
or fee on the acquisition of real
property or on the value of real
property not attributable to
improvements made, or the operation of
those improvements, by Amtrak Commuter.
[(B) ``Amtrak Commuter'' includes a rail
carrier subsidiary of Amtrak Commuter and a
lessor or lessee of Amtrak Commuter or one of
its rail carrier subsidiaries.
[(2) Amtrak Commuter is not required to pay an
additional tax because of an expenditure to acquire or
improve real property, equipment, a facility, or right-
of-way material or structures used to provide rail
passenger transportation, even if that use is indirect.
[(g) Tax Exemption for Certain Commuter Authorities.--A
commuter authority with which Amtrak Commuter could have made a
contract to provide commuter rail passenger transportation
under this chapter but which decided to provide its own rail
passenger transportation beginning on January 1, 1983, is
exempt, effective October 1, 1981, from paying a tax or fee to
the same extent Amtrak is exempt.
[(h) Nonapplication of Agreements for Financial Support and
Trackage Rights.--An agreement under which financial support
was provided on January 2, 1974, to a commuter authority to
continue rail passenger transportation does not apply to Amtrak
Commuter. However, Amtrak and the Consolidated Rail Corporation
retain appropriate trackage rights over rail property owned or
leased by the authority. Compensation for the rights shall be
reasonable.]
[Sec. 24502. Board of directors
[(a) Composition.--The board of directors of Amtrak Commuter
is composed of the following directors:
[(1) the President of Amtrak Commuter.
[(2) one individual from the board of directors of
Amtrak selected as a representative of commuter
authorities that make contracts with Amtrak Commuter
for the operation of commuter rail passenger
transportation.
[(3) 2 individuals selected by the board of directors
of Amtrak.
[(4) 2 individuals selected by commuter authorities
for which Amtrak Commuter provides commuter rail
transportation under this chapter. However, only one
individual shall be selected under this clause if
Amtrak Commuter provides the transportation for only
one authority.
[(b) Terms.--Except as otherwise provided in this section,
individuals shall serve for 2 years.
[(c) Chairman.--The board shall select annually one of its
members to serve as Chairman.
[(d) Pay and Expenses.--Each director not employed by the
United States Government is entitled to $300 a day when
performing board duties and powers. Each director is entitled
to reimbursement for necessary travel, reasonable secretarial
and professional staff support, and subsistence expenses
incurred in attending board meetings.
[(e) Vacancies.--A vacancy on the board is filled in the same
way as the original selection.
[(f) Bylaws.--The board may adopt and amend bylaws governing
the operation of Amtrak Commuter. The bylaws shall be
consistent with this part and the articles of incorporation.]
[Sec. 24503. Officers
[(a) Appointment and Terms.--Amtrak Commuter has a President
and other officers that are named and appointed by the board of
directors of Amtrak commuter. An officer of Amtrak Commuter
must be a citizen of the United States. Officers of Amtrak
Commuter serve at the pleasure of the board.
[(b) Pay.--The board may fix the pay of the officers of
Amtrak Commuter. An officer may be paid not more than the
general level of pay for officers of rail carriers with
comparable responsibility.
[(c) Conflicts of Interest.--When employed by Amtrak
Commuter, an officer may not have a financial or employment
relationship with a rail carrier, except that holding
securities issued by a rail carrier is not deemed to be a
violation of this subsection if the officer holding the
securities makes a complete public disclosure of the holdings
and does not participate in any decision directly affecting the
rail carrier.
[Sec. 24504. General authority
[(a) General.--Amtrak Commuter may--
[(1) acquire, operate, maintain, and make contracts
for the operation of equipment and facilities necessary
for commuter rail passenger transportation;
[(2) conduct research and development related to the
mission of Amtrak Commuter; and
[(3) issue common stock to Amtrak.
[(b) Operation and Control.--To the extent consistent with
this part and with an agreement with a commuter authority,
Amtrak Commuter shall operate and control all aspects of the
commuter rail passenger transportation it provides.
[(c) Agreement to Avoid Duplicating Employee Functions.--To
the maximum extent practicable, Amtrak Commuter and Amtrak
shall make an agreement that avoids duplicating employee
functions and voluntarily establishes a consolidated work
force.]
[Sec. 24505. Commuter rail passenger transportation
[(a) General Authority.--Amtrak Commuter--
[(1) shall provide commuter rail passenger
transportation that the Consolidated Rail Corporation
was obligated to provide on August 13, 1981, under
section 303(b)(2) or 304(e) of the Regional Rail
Reorganization Act of 1973 (45 U.S.C. 743(b)(2),
744(e)); and
[(2) may provide other commuter rail passenger
transportation if the commuter authority for which the
transportation will be provided offers to provide a
commuter rail passenger transportation payment equal to
the--
[(A) avoidable costs of providing the
transportation (including the avoidable cost of
necessary capital improvements) and a
reasonable return on the value; less
[(B) revenue attributable to the
transportation.
[(b) Offer Requirements.--
[(1) A commuter authority making an offer under
subsection (a)(2) of this section shall--
[(A) show that it has obtained access to all
rail property necessary to provide the
additional commuter rail passenger
transportation; and
[(B) make the offer according to regulations
the Rail Services Planning Office prescribes
under section 10362(b)(5)(A) and (6) of this
title.
[(2) The Office may revise and update the regulations
when necessary to carry out this section.
[(c) Additional Employee Requirements.--Additional employee
requirements shall be met through existing seniority
arrangements agreed to in the implementing agreement negotiated
under section 508 of the Rail Passenger Service Act.
[(d) When Obligation Does Not Apply.--Amtrak Commuter is not
obligated to provide commuter rail passenger transportation if
a commuter authority provides the transportation or makes a
contract under which a person, except Amtrak Commuter, will
provide the transportation. When appropriate, Amtrak Commuter
shall give the authority or person access to the rail property
needed to provide the transportation.
[(e) Discontinuance of Commuter Rail Passenger
Transportation.--
[(1) Amtrak Commuter may discontinue commuter rail
passenger transportation provided under this section on
60 days' notice if--
[(A) a commuter authority does not offer a
commuter rail passenger transportation payment
under subsection (a)(2) of this section; or
[(B) a payment is not paid when due.
[(2) The Office shall prescribe regulations on the
necessary contents of the notice required under this
subsection.
[(f) Compensation for Right-of-Way Related Costs.--
Compensation by a commuter authority to Amtrak or Amtrak
Commuter for right-of-way related costs for transportation over
property Amtrak owns shall be determined under a method the
Interstate Commerce Commission establishes under section 1163
of the Omnibus Budget Reconciliation Act of 1981 (45 U.S.C.
1111) or to which the parties agree.
[(g) Application of Other Laws.--All laws related to commuter
rail passenger transportation apply to a commuter authority
providing commuter rail passenger transportation under this
section.]
[Sec. 24506. Certain duties and powers unaffected
[This chapter does not affect a duty or power of the
Consolidated Rail Corporation or its successor and any bi-state
commuter authority under an agreement, lease, or contract under
which property was conveyed to the Corporation under the
Regional Rail Reorganization Act of 1973 (45 U.S.C. 701 et
seq.).]
* * * * * * *
[Sec. 24702. Improving rail passenger transportation
[(a) Plan to Improve Transportation.--Amtrak shall continue
to carry out its plan, submitted under section 305(f) of the
Rail Passenger Service Act, to improve intercity rail passenger
transportation provided in the basic system. The plan shall
include--
[(1) a zero-based assessment of all operating
practices;
[(2) changes to achieve the minimum use of employees
consistent with safe operations and adequate
transportation;
[(3) a systematic program for achieving the greatest
ratio of train size to passenger demand;
[(4) a systematic program to reduce trip time in the
basic system;
[(5) establishing training programs to achieve on-
time departures;
[(6) establishing priorities for passenger trains
over freight trains;
[(7) adjusting the buying and pricing of food and
beverages so that food and beverage services ultimately
will be profitable;
[(8) cooperative marketing opportunities between
Amtrak and governmental authorities that have intercity
rail passenger transportation; and
[(9) cooperative marketing campaigns sponsored by
Amtrak and the Secretary of Energy, the Administrator
of the Federal Highway Administration, and the
Administrator of the Environmental Protection Agency.
[(b) State and Local Speed Restrictions.--Amtrak shall--
[(1) identify any speed restriction a State or local
government imposes on a train of Amtrak that Amtrak
decides impedes Amtrak from achieving high-speed
intercity rail passenger transportation; and
[(2) consult with that State or local government--
[(A) to evaluate alternatives to the speed
restriction, considering the local safety
hazard that is the basis for the restriction;
and
[(B) to consider modifying or eliminating the
restriction to allow safe operation at higher
speeds.
[(c) High-Speed Rail Transportation Development.--On
reasonable request by a State, political subdivision of a
State, regional partnership, private sector representative, or
other qualified person, Amtrak shall consult and cooperate to
the extent feasible with that person to assist the efforts of
that person to achieve high-speed rail transportation through
equipment upgrades, grade-crossing safety improvements, and
incremental infrastructure improvements on existing rail
facilities that Amtrak uses (except the Northeast Corridor
facilities). Not later than September 30, 1993, Amtrak shall
submit to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on its efforts under this
subsection.
[(d) Routes Connecting Corridors.--Amtrak shall begin or
improve appropriate rail passenger transportation on a route
between corridors that Amtrak decides is justified because it
will increase ridership on trains of Amtrak on the route and in
the connecting corridors.]
[Sec. 24703. Route and service criteria
[(a) Route Discontinuances and Additions.--Except as provided
in this part, route discontinuances and route additions shall
comply with the route and service criteria.
[(b) Congressional Review of Criteria Amendments.--
[(1) Amtrak shall submit to Congress a draft of an
amendment to the route and service criteria when Amtrak
decides an amendment is appropriate. The amendment is
effective at the end of the first period of 120
calendar days of continuous session of Congress after
it is submitted unless there is enacted into law during
the period a joint resolution stating Congress does not
approve the amendment.
[(2) In this subsection--
[(A) a continuous session of Congress is
broken only by an adjournment sine die; and
[(B) the 120-day period does not include days
on which either House is not in session because
of adjournment of more than 3 days to a day
certain.
[(c) Nonapplication.--The route and service criteria do not
apply to--
[(1) increasing or, because of construction schedules
or other temporary disruptive facts or seasonal
fluctuations in ridership, decreasing the number of
trains on an existing route or a part of an existing
route or on a route on which additional trains are
being tested;
[(2) carrying out the recommendations developed under
section 4 of the Amtrak Improvement Act of 1978;
[(3) rerouting transportation between major
population centers on an existing route; or
[(4) (A) modifying transportation operations under
section 24707(a) of this title; and
[(B) modifying the route system or discontinuing
transportation under section 24707(b) of this title.]
[Sec. 24704. Transportation requested by States, authorities, and
other persons
[(a) Applications to Begin or Keep Transportation.--
[(1) A State, a regional or local authority, or
another person may apply to Amtrak and request Amtrak
to provide rail passenger transportation or keep any
part of a train, route, or service that Amtrak intends
to discontinue under section 24706(a) or (b) or
24707(a) or (b) of this title. An application shall--
[(A) assure Amtrak that the State, authority,
or person has sufficient resources to meet its
share of the cost of the transportation for the
time the transportation will be provided;
[(B) contain a market analysis acceptable to
Amtrak to ensure that there is adequate demand
for the transportation; and
[(C) commit the State, authority, or person
to provide at least 45 percent of the short
term avoidable loss of providing the
transportation the first year the
transportation is provided and at least 65
percent of the short term avoidable loss each
of the following years, and, except as provided
in section 24104(a) of this title, at least 50
percent of associated capital costs each year
the transportation is provided.
[(2) An application submitted by more than one State
shall be considered in the same way as an application
submitted by one State, without it being necessary for
each State to comply with paragraph (1) of this
subsection.
[(b) Actions on Applications.--
[(1) Amtrak shall review each application submitted
under subsection (a) of this section to decide
whether--
[(A) the application complies with subsection
(a); and
[(B) there is a reasonable probability that
Amtrak can provide the transportation from
available resources.
[(2) Amtrak may make an agreement with an applicant
under this section to begin or keep the transportation
if Amtrak decides that the transportation can be
provided with resources available to Amtrak. An
agreement may be renewed for additional periods of not
more than 2 years each.
[(c) Selecting Among Competing Applications.--If more than
one application is made for transportation consistent with the
requirements of subsection (a) of this section, but all the
transportation applied for cannot be provided with the
available resources of Amtrak, the board of directors of Amtrak
shall select the transportation that best serves the public
interest and can be provided with the available resources of
Amtrak.
[(d) Fare Increases.--
[(1) Before increasing a fare applicable to
transportation provided under subsection (b)(2) of this
section by more than 5 percent during a 6-month period,
Amtrak shall consult with officials of each State
affected by the increase and explain why the increase
is necessary.
[(2) Except as provided in paragraph (3) of this
subsection, a fare increase described in paragraph (1)
of this subsection takes effect 90 days after Amtrak
first consults with the affected States. However, not
later than 30 days after the first consultation, a
State may submit proposals to Amtrak for reducing costs
and increasing revenues of the transportation. Amtrak
shall consider the proposals in deciding how much of
the proposed increase shall go into effect.
[(3) (A) Amtrak may increase a fare without regard to
the restrictions of this subsection during--
[(i) the first month of a fiscal year if the
authorization of appropriations and the
appropriations for Amtrak are not enacted at
least 90 days before the beginning of the
fiscal year; or
[(ii) the 30 days following enactment of an
appropriation for Amtrak or are rescission of
an appropriation.
[(B) Amtrak shall notify each affected State of an
increase under subparagraph (A) of this paragraph as
soon as possible after Amtrak decides to increase a
fare.
[(e) Determining Loss, Costs, and Revenues.--After consulting
with officials of each State contributing to providing
transportation under subsection (b)(2) of this section, the
board shall establish the basis for determining short term
avoidable loss and associated capital costs of, and revenues
from, the transportation. Amtrak shall give State officials the
basis for determining the loss, cost, and revenue for each
route on which transportation is provided under subsection
(b)(2).
[(f) Availability of Amounts.--Amounts provided by Amtrak
under an agreement with an applicant under subsection (b)(2) of
this section that are allocated for associated capital costs
remain available until expended.
[(g) Advertising and Promotion.--At least 2 percent but not
more than 5 percent of the revenue generated by transportation
provided under subsection (b)(2) of this section shall be used
for advertising and promotion at the local level.]
[Sec. 24705. Additional qualifying routes
[(a) Routes Recommended for Discontinuance.--
[(1) To maintain a national inter city rail passenger
system in the United states and if a reduction in
operating expenses can be achieved, Amtrak shall
provide rail passenger transportation over each route
the Secretary of Transportation recommended be
discontinued under section 4 of the Amtrak Improvement
Act of 1978 and may restructure a route to serve a
major population center as an ending place or principal
intermediate place. Transportation over a long distance
route shall be maintained if the Amtrak estimate for
the fiscal year ending September 30, 1980, was that the
short term avoidable loss for each passenger mile on
the route was not more than 7 cents. Transportation
over a short distance route shall be maintained if the
Amtrak estimate for the fiscal year ending September
30, 1980, was that the short term avoidable loss for
each passenger mile on the route was not more than 9
cents.
[(2) For all routes, Amtrak shall calculate short
term avoidable loss for each passenger-mile based on
consistently defined factors. Calculations shall be
based on the most recent available statistics for a 90-
day period, except that Amtrak may use historical
information adjusted to reflect the most recent
available statistics.
[(b) Deferral of Secretary's Recommendations.--
[(1) To provide equivalent or improved transportation
consistent with the goals of section 4(a) of the Act,
Amtrak may defer carrying out a recommendation the
Secretary under section 4 of the Act that requires
providing transportation over a rail line not used in
intercity rail passenger transportation on May 24,
1979, requires using a new facility, or requires making
a new labor agreement, until any necessary capital
improvements are made in the line or facility or the
agreement is made.
[(2) Notwithstanding another law and the route and
service criteria, during the period a decision of the
Secretary under section 4 of the Act is deferred,
Amtrak shall provide substitute transportation over
existing routes recommended for restructuring and over
other existing feasible routes. Except for
transportation concentrating on commuter ridership over
a short haul route, transportation provided under this
paragraph may be provided only if the route complies
with subsection (a) of this section, adjusted to
reflect constant 1979 dollars.
[(c) Short Haul Demonstration Routes.--Notwithstanding this
part, Amtrak may provide short haul trains on additional routes
totaling not more than 200 miles that link at least 2 major
metropolitan areas--
[(1) on a demonstration basis to establish the
feasibility and benefits of the transportation; and
[(2) to the extent available resources allow.
[(d) Routes Discontinued by Rail Carriers.--Amtrak may
undertake to provide rail passenger transportation between
places served by a rail carrier filing a notice of
discontinuance under section 10908 or 10909 of this title.]
Sec. 24706. Discontinuance
(a) Notice of Discontinuance.--
(1) Except as provided in subsection (b) of this
section, at least [90 days] 180 days before [a
discontinuance under section 24704 or 24707(a) or (b)
of this title] discontinuing service over a route,
Amtrak shall give notice of the discontinuance in the
way Amtrak decides will give a State, a regional or
local authority, or another person the opportunity to
agree to share or assume the cost of any part of the
train, route, or service to be discontinued.
(2) Notice of the discontinuance under [section 24704
or 24707(a) or (b) of this title] paragraph (1) shall
be posted in all stations served by the train to be
discontinued at least 14 days before the
discontinuance.
(b) Discontinuance for Lack of Appropriations.--
(1) Amtrak may discontinue service under [section
24704 or 24707(a) or (b) of this title] paragraph (1)
during--
(A) the first month of a fiscal year if the
authorization of appropriations and the
appropriations for Amtrak are not enacted at
least 90 days before the beginning of the
fiscal year; and
(B) the 30 days following enactment of an
appropriation for Amtrak or a rescission of an
appropriation.
(2) Amtrak shall notify each affected State or
regional or local transportation authority of a
discontinuance under this subsection as soon as
possible after Amtrak decides to discontinue the
service.
[(c) Employee Protective Arrangements.--
[(1) Amtrak or a rail carrier (including a terminal
company) shall provide fair and equitable arrangements
to protect the interests of employees of Amtrak or a
rail carrier, as the case may be, affected by a
discontinuance of intercity rail passenger service,
including a discontinuance of service provided by a
railcarrier under a facility or service agreement under
section 24308(a) of this title under a modification or
ending of the agreement or because Amtrak begins
providing that service. Arrangements shall include
provisions that may be necessary for--
[(A) the preservation of rights, privileges,
and benefits (including continuation of pension
rights and benefits) under existing collective
bargaining agreements or otherwise;
[(B) the continuation of collective
bargaining rights;
[(C) the protection of individual employees
against a worsening of their positions related
to employment;
[(D) assurances of priority of reemployment
of employees whose employment is ended or who
are laid off; and
[(E) paid training and retraining programs.
[(2) With respect to Amtrak's obligations under this
subsection and in an agreement to carry out this
subsection involving only Amtrak and its employees, a
discontinuance of intercity rail passenger service does
not include an adjustment in frequency, or seasonal
suspension of intercity rail passenger trains that
causes a temporary suspension of service, unless the
adjustment or suspension reduces passenger train
operations on a particular route to fewer than 3 round
trips a week at any time during a calendar year.
[(3) Arrangements under this subsection shall provide
benefits at least equal to benefits established under
section 11347 of this title.
[(4) A contract under this chapter or section
24308(a) of this title shall specify the terms of
protective arrangements.
[(5) This subsection does not impose on Amtrak an
obligation of a rail carrier related to a right,
privilege, or benefit earned by an employee because of
previous service performed for the carrier.
[(6) This subsection does not apply to Amtrak
Commuter.]
(c) Employee Protection._Notwithstanding any arrangement in
effect before the enactment of the Amtrak and Local Rail
Revitalization Act of 1995--
(1) an employee of Amtrak shall be entitled to
protective benefits only if deprived of employment as a
result of a discontinuance of intercity rail passenger
service or other transaction creating an entitlement to
such benefits;
(2) the total amount of protective payments shall not
exceed 6 months' pay; and
(3) fringe benefits shall not be continued in excess
of 6 months or the minimum period established by other
Federal law for such benefits, whichever is longer.
[Sec. 24707. Cost and performance review
[(a) Route Reviews.--Amtrak shall review annually each route
in the basic system to decide if the route meets the long
distance or short distance route criterion, as appropriate,
under section 24705(a)(1) of this title, adjusted to reflect
constant 1979 dollars. The review shall include an evaluation
of the potential market demand for, and the cost of providing
transportation on, a part of the route and an alternative
route. Amtrak shall submit the results of the review to the
House of Representatives, the Senate, and the Secretary of
transportation. If Amtrak decides that a route will not meet
the criterion under section 24705(a)(1), as adjusted, Amtrak
shall modify or discontinue rail passenger transportation
operations on the route so that it will meet the criterion.
[(b) Financial Requirements and Performance Standards.--Not
later than 30 days after the beginning of each fiscal year,
Amtrak shall evaluate the financial requirements for operating
the basic system and the progress in achieving the system-wide
performance standards prescribed under this part during the
fiscal year. If Amtrak decides amounts available for the fiscal
year are not enough to meet estimated operating costs, or if
Amtrak estimates it cannot meet the performance standards,
Amtrak shall act to reduce costs and improve performance.
Action under this subsection shall be designed to continue the
maximum level of transportation practicable, including--
[(1) changing the frequency of transportation;
[(2) increasing fares;
[(3) reducing the cost of sleeper car and dining car
service on certain routes;
[(4) increasing the passenger capacity of cars used
on certain routes; and
[(5) modifying the route system or discontinuing
transportation over routes, considering short term
avoidable loss and the number of passengers served on
those routes.
[(c) Cost Limitations and Revenue Goals.--Annual costs of
Amtrak may not be more than amounts, including grants made
under section 24104 of this title, contributions of States,
regional and local authorities, and other persons, and
revenues, available to Amtrak in the fiscal year. Amtrak
annually shall set a goal of recovering an amount so that its
revenues, including contributions, is at least 61 percent of
its costs, except capital costs.
[(d) Conductor Reports.--To assess the operational
performance of trains, the president of Amtrak may direct the
conductor on any train of Amtrak to report to Amtrak any
inadequacy of train operation. The report shall be signed by
the conductor, contain sufficient information to locate
equipment or personnel failures, and be submitted promptly to
Amtrak.]
[Sec. 24708. Special commuter transportation
[(a) Transportation to be Continued if Criterion Met.--Amtrak
shall continue to provide rail passenger transportation
provided under section 403(d) of the rail Passenger Service Act
before October 1, 1981, if, after considering estimated fare
increases and State and local contributions to the
transportation, the transportation meets the short distance
route criterion under section 24705(a)(1) of this title, as
adjusted. Transportation continued under this section shall be
financed consistent with the method of financing in effect on
September 30, 1981. If the transportation is not estimated to
meet the criterion, as adjusted, Amtrak may modify or
discontinue the transportation so that the criterion is met.]
[(b) Transportation with Short-term Avoidable loss.--
Notwithstanding subsection (a) of this section, if after
September 30, 1993, and before October 1, 1995, transportation
provided under subsection (a) on a route during the prior 6
months has a short-term avoidable loss (excluding the cost of
providing passenger equipment needed to provide the
transportation), Amtrak may choose to consider modifying or
discontinuing the transportation. If Amtrak does make such a
choice, Amtrak shall solicit public comment for at least 30
days on alternatives to the modification or discontinuance. Not
later than 60 days after the comment period ends, Amtrak may
modify or discontinue the transportation so that there is no
short-term avoidable loss under this section for providing the
transportation on the route.]
CHAPTER 249. NORTHEAST CORRIDOR IMPROVEMENT PROGRAM
Sec. 24902. Goals and requirements
[(a) Northeast Corridor Improvement Plan.--To the extent of
amounts appropriated under section 24909 of this title, Amtrak
shall carry out a Northeast Corridor improvement program to
achieve the following goals:
[(1) establish not later than September 30, 1985,
regularly scheduled and dependable intercity rail
passenger transportation between--
[(A) Boston, Massachusetts, and New York, New
York, in not more than 3 hours and 40 minutes,
including intermediate stops; and
[(B) New York, New York, and the District of
Columbia, in not more than 2 hours and 40
minutes, including intermediate stops;
[(2) improve facilities, under route criteria
approved by Congress, on routes to Harrisburg,
Pennsylvania, Albany, New York, and Atlantic City, New
Jersey, from the Northeast Corridor main line, and to
Boston, Massachusetts, and New Haven, Connecticut, from
Springfield, Massachusetts, to make those facilities
more compatible with improved high-speed transportation
provided on the Northeast Corridor main line;
[(3) improve nonoperational parts of stations,
related facilities, and fencing used in intercity rail
passenger transportation;
[(4) facilitate improvements in, and usage of,
commuter rail passenger, rail rapid transit, and local
public transportation, to the extent compatible with
clauses (1)-(3) of this subsection and subsections (f)
and (h) of this section;
[(5) maintain and improve rail freight transportation
in or adjacent to the Northeast Corridor and through-
freight transportation in the Northeast Corridor, to
the extent compatible with clauses (1)--(4) of this
subsection and subsections (f) and (h) of this section;
[(6) continue and improve passenger radio mobile
telephone service on high-speed rail passenger
transportation between Boston, Massachusetts, and the
District of Columbia, to the extent compatible with
clauses (1)-(3) of this subsection and subsections (f)
and (h) of this section; and
[(7) eliminate to the maximum extent practicable
congestion in rail freight and rail passenger
transportation at the Baltimore and Potomac Tunnel in
Baltimore, Maryland, by rehabilitating and improving
the tunnel and the rail lines approaching the tunnel.]
[(b)] (a) Managing Costs and Revenues.--Amtrak shall manage
its operating costs, pricing policies, and other factors with
the goal of having revenues derived each fiscal year from
providing intercity rail passenger transportation over the
Northeast Corridor route between the District of Columbia and
Boston, Massachusetts, equal at least the operating costs of
providing that transportation in that fiscal year.
[(c) Cost Sharing for Nonoperational Facilities.--
[(1) Fifty percent of the cost of improvements under
subsection (a)(3) of this section shall be paid by a
State, local or regional transportation authority or
other responsible party. However, Amtrak may finance
entirely a safety-related improvement.
[(2) When a part of the cost of improvements under
subsection (a)(3) of this section will be paid by a
responsible party under paragraph (1) of this
subsection, Amtrak may make an agreement with the party
under which Amtrak--
[(A) shall carry out the improvements with
amounts appropriated under section 24909 of
this title and the party shall reimburse
Amtrak; and
[(B) to the extent provided in an appropriation law, may
incur obligations for contracts to carry out the improvements
in anticipation of reimbursement.
[(3) Amounts reimbursed to Amtrak under paragraph (2)
of this subsection shall be credited to the
appropriation originally charged for the cost of the
improvements and are available for further obligation.
[(d) Passenger Radio Mobile Telephone Service.--The President
and departments, agencies, and instrumentalities of the United
States Government shall assist Amtrak under subsection (a)(6)
of this section, subject to the Communications act of 1934 (47
U.S.C. 151 et seq.) and radio services standards, when the
Federal Communications Commission decides the assistance is in
the public interest, convenience, and necessity.]
[(e)] (b) Priorities in Selecting and Scheduling Projects.--
When selecting and scheduling specific projects, Amtrak shall
apply the following considerations, in the following order of
priority:
(1) Safety-related items should be completed before
other items because the safety of the passengers and
users of the Northeast Corridor is paramount.
(2) Activities that benefit the greatest number of
passengers should be completed before activities
involving fewer passengers.
(3) Reliability of intercity rail passenger
transportation must be emphasized.
(4) Trip-time requirements of this section must be
achieved to the extent compatible with the priorities
referred to in paragraphs (1)--(3) of this subsection.
(5) Improvements that will pay for the investment by
achieving lower operating or maintenance costs should
be carried out before other improvements.
(6) Construction operations should be scheduled so
that the fewest possible passengers are inconvenienced,
transportation is maintained, and the on-time
performance of Northeast Corridor commuter rail
passenger and rail freight transportation is optimized.
(7) Planning should focus on completing activities
that will provide immediate benefits to users of the
Northeast Corridor.
[(f)] (c) Compatibility with Future Improvements and
Production of Maximum Labor Benefits.--Improvements under this
section shall be compatible with future improvements in
transportation and shall produce the maximum labor benefit from
hiring individuals presently unemployed.
[(g)] (d) Automatic Train Control Systems.--A train operating
on the Northeast corridor main line or between the main line
and Atlantic City shall be equipped with an automatic train
control system designed to slow or stop the train in response
to an external signal.
[(h)] (e) High-speed Transportation.--If practicable, Amtrak
shall establish intercity rail passenger transportation in the
Northeast Corridor that carries out section 703(1)(E) of the
Railroad Revitalization and Regulatory Reform Act of 1976
(Public Law 94-210, 90 Stat. 121).
[(i)] (f) Equipment Development.--Amtrak shall develop
economical and reliable equipment compatible with track,
operating, and marketing characteristics of the Northeast
Corridor, including the capability to meet reliable trip times
under section 703(1)(E) of the Railroad Revitalization and
Regulatory Reform Act of 1976 (Public Law 94-210, 90 Stat. 121)
in regularly scheduled revenue transportation in the Corridor,
when the Northeast Corridor improvement program is completed.
Amtrak must decide that equipment complies with this subsection
before buying equipment with financial assistance of the
Government. Amtrak shall submit a request for an authorization
of appropriations for production of the equipment.
[(j)] (g) Agreements for Off-Corridor Routing of Rail Freight
Transportation.--
(1) Amtrak may make an agreement with a rail freight
carrier or a regional transportation authority under
which the carrier will carry out an alternate off-
corridor routing of rail freight transportation over
rail lines in the Northeast Corridor between the
District of Columbia and New York metropolitan areas,
including intermediate points. The agreement shall be
for at least 5 years.
(2) Amtrak shall apply to the Interstate Commerce
Commission for approval of the agreement and all
related agreements accompanying the application as soon
as the agreement is made. If the Commission finds that
approval is necessary to carry out this chapter, the
Commission shall approve the application and related
agreements not later than 90 days after receiving the
application.
(3) If an agreement is not made under paragraph (1)
of this subsection, Amtrak, with the consent of the
other parties, may apply to the Interstate Commerce
Commission. Not later than 90 days after the
application, the Commission shall decide on the terms
of an agreement if it decides that doing so is
necessary to carry out this chapter. The decision of
the Commission is binding on the other parties.
[(k)] (h) Coordination.--
(1) The Secretary of Transportation shall
coordinate--
(A) transportation programs related to the
Northeast Corridor to ensure that the programs
are integrated and consistent with the
Northeast Corridor improvement program; and
(B) amounts from departments, agencies, and
instrumentalities of the Government to achieve
urban redevelopment and revitalization in the
vicinity of urban rail stations in the
Northeast Corridor served by intercity and
commuter rail passenger transportation.
(2) If the Secretary finds significant noncompliance
with this section, the Secretary may deny financing to
a noncomplying program until the noncompliance is
corrected.
[(l)] (i) Completion.--Amtrak shall give the highest priority
to completing the program.
(j) Applicable Procedures._For the purpose of any State or
local requirement for permit or other approval for construction
or operation of any improvement undertaken by or for the
benefit of Amtrak as part of, or in furtherance of, the
Northeast Corridor Improvement Project, or chapter 241, 243, or
247 of this title, the exemptions and procedures applicable to
a project undertaken by the Federal Government or an agency
thereof shall apply. The preceding sentence shall not apply to
any project initiated in any fiscal year for which Amtrak
receives no Federal operating subsidy.
CHAPTER 249. NORTHEAST CORRIDOR IMPROVEMENT PROGRAM
[Sec. 24903. Program master plan for Boston-New York main line
[(a) Contents.--Not later than October 27, 1993, in
consultation with Amtrak and the commuter and freight rail
carriers operating over the Northeast Corridor main line
between Boston, Massachusetts, and New York, New York, the
Secretary of Transportation shall submit to the Committee on
Energy and Commerce of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate a program master plan for a coordinated program of
improvements to that main line that will allow the
establishment of regularly scheduled, safe, and dependable rail
passenger transportation between Boston, Massachusetts, and New
York, New York, in not more than 3 hours, including
intermediate stops. The plan shall include--
[(1) a description of the implications of the
improvements for the regional transportation system,
including the probable effects on general travel trends
and on travel volumes in other transportation modes and
the implications for State and local governments in
achieving compliance with the Clean Air Act (42U.S.C.
7401 et seq.);
[(2) an identification of the coordinated program of
improvements and the specific projects of that program,
including the estimated costs, schedules, timing, and
relationship of those projects with other projects;
[(3) an identification of the financial
responsibility for the specific projects of that
program and the sources of the amounts for the
projects;
[(4) an operating plan for the construction period of
the improvements that shows a coordinated approach to
scheduling intercity and commuter trains;
[(5) an operating plan for the coordinated scheduling
of intercity and commuter trains for the period after
the program is completed, including priority
scheduling, dispatching, and occupancy of tracks for
appropriately frequent, regularly scheduled intercity
rail passenger transportation between Boston,
Massachusetts, and New York, New York, in not more than
3 hours, including intermediate stops;
[(6) a comprehensive plan to control future
congestion in the Northeast corridor attributable to
increases in intercity and commuter rail passenger
transportation;
[(7) an assessment of long-term operational safety
needs and a list of specific projects designed to
maximize operational safety; and
[(8) comments that Amtrak submits to the Secretary on
the plan.
[(b) Submitting Modifications of Plan to Congress.--The
Secretary shall submit to Congress any modification made to the
program master plan and comments that Amtrak submits on the
modification.]
CHAPTER 249. NORTHEAST CORRIDOR IMPROVEMENT PROGRAM
Sec. 24904. General authority
(a) General.--To carry out this chapter and the Regional Rail
Reorganization Act of 1973 (45 U.S.C. 701 et seq.), Amtrak
may--
(1) acquire, maintain, and dispose of any interest in
property used to provide improved high-speed rail
transportation under section 24902 of this title;
(2) acquire, by condemnation or otherwise, any
interest in real property that Amtrak considers
necessary to carry out the goals of section 24902;
(3) provide for rail freight, intercity rail
passenger, and commuter rail passenger transportation
over property acquired under this section;
(4) improve rail rights of way between Boston,
Massachusetts, and the District of Columbia (including
the route through Springfield, Massachusetts, and
routes to Harrisburg, Pennsylvania, and Albany, New
York, from the Northeast Corridor main line) to achieve
the goals of section 24902 of providing improved high-
speed rail passenger transportation between Boston,
Massachusetts, and the District of Columbia, and
intermediate intercity markets;
(5) acquire, build, improve, and install passenger
stations, communications and electric power facilities
and equipment, public and private highway and
pedestrian crossings, and other facilities and
equipment necessary to provide improved high-speed rail
passenger transportation over rights of way improved
under clause (4) of this subsection;
(6) make agreements with other carriers and commuter
authorities to grant, acquire, or make arrangements for
rail freight or commuter rail passenger transportation
over, rights of way and facilities acquired under the
Regional Rail Reorganization Act of 1973 (45 U.S.C. 701
et seq.) and the Railroad Revitalization and Regulatory
Reform Act of 1976 (45 U.S.C. 801 et seq.);
(7) appoint a general manager of the Northeast
Corridor improvement program; and
(8) make agreements with telecommunications common
carriers, subject to the Communications Act of 1934 (47
U.S.C. 151 et seq.), to continue existing, and
establish new and improved, passenger radio mobile
telephone service in [the high-speed rail passenger
transportation area specified in section 24902(a)(1)
and (2)] a high-speed rail passenger transportation
area.
(b) Compensatory Agreements.--Rail freight and commuter
rail passenger transportation provided under subsection (a)(3)
of this section shall be provided under compensatory agreements
with the responsible carriers.
(c) Compensation for Transportation Over Certain Rights of
Way and Facilities.--
(1) An agreement under subsection (a)(6) of this
section shall provide for reasonable reimbursement of
costs but may not cross-subsidize intercity rail
passenger, commuter rail passenger, and rail freight
transportation.
(2) If the parties do not agree, the Interstate
Commerce Commission shall order that the transportation
continue over facilities acquired under the Regional
Rail Reorganization Act of 1973 (45 U.S.C. 701 et seq.)
and the Railroad Revitalization and Regulatory Reform
Act of 1976 (45 U.S.C. 801 et seq.) and shall determine
compensation (without allowing cross-subsidization
[between intercity rail passenger and rail freight
transportation] among intercity rail passenger,
commuter rail passenger, and rail freight
transportation) for the transportation not later than
120 days after the dispute is submitted. The Commission
shall assign to a commuter rail carrier or rail freight
carrier obtaining transportation under this subsection
the costs Amtrak incurs only for the benefit of the
carrier, plus a proportionate share of all other costs
of providing transportation under this paragraph
incurred for the common benefit of Amtrak and the
carrier. The proportionate share shall be based on
relative measures of volume of car operations, tonnage,
or other factors that reasonably reflect the relative
use of rail property covered by this subsection.
(3) This subsection does not prevent the parties from
making an agreement under subsection (a)(6) of this
section after the Commission makes a decision under
this subsection.
CHAPTER 249. NORTHEAST CORRIDOR IMPROVEMENT PROGRAM
[Sec. 24909. Authorization of appropriations
[(a) General.--
[(1) Not more than $2,313,000,000 may be appropriated
to the Secretary of Transportation to achieve the goals
of section 24902(a)(1) of this title. From this amount,
the following amounts shall be expended by Amtrak:
[(A) at least $27,000,000 for equipment
modification and replacement that a State or a
local or regional transportation authority must
bear because of the electrification conversion
system of the Northeast Corridor under this
chapter.
[(B) $30,000,000--
[(i) to improve the main line track
between the Northeast Corridor main
line and Atlantic City, New Jersey, to
ensure that the track, consistent with
a plan New Jersey developed in
consultation with Amtrak to provide
rail passenger transportation between
the Northeast Corridor main line and
Atlantic City, New Jersey, would be of
sufficient quality to allow safe rail
passenger transportation at a minimum
of 79 miles an hour not later than
September 30, 1985; and
[(ii) to promote rail passenger use
of the track.
[(C) necessary amounts to--
[(i) develop Union Station in the
District of Columbia;
[(ii) install 189 track-miles, and
renew 133 track-miles, of concrete ties
with continuously welded rail between
the District of Columbia and New York,
New York;
[(iii) install reverse signaling
between Philadelphia, Pennsylvania, and
Morrisville, Pennsylvania, on numbers 2
and 3 track;
[(iv) restore ditch drainage in
concrete tie locations between the
District of Columbia and New York, New
York;
[(v) undercut 83 track-miles between
the District of Columbia and New York,
New York;
[(vi) rehabilitate bridges between
the District of Columbia and New York,
New York (including Hi line);
[(vii) develop a maintenance of way
equipment repair facility between the
District of Columbia and New York, New
York, and build maintenance of way
bases at Philadelphia, Pennsylvania,
Sunnyside, New York, and Cedar Hill,
Connecticut;
[(viii) stabilize the roadbed between
the District of Columbia and New York,
New York;
[(ix) automate the Bush River
Drawbridge at milepost 72.14;
[(x) improve the New York Service
Facility to develop rolling stock
repair capability;
[(xi) install a rail car washer
facility at Philadelphia, Pennsylvania;
[(xii) restore storage tracks and
buildings at the Washington Service
facility;
[(xiii) install centralized traffic
control from Landlith, Delaware, to
Philadelphia, Pennsylvania;
[(xiv) improve track, including high
speed surfacing, ballast cleaning, and
associated equipment repair and
material distribution;
[(xv) rehabilitate interlockings
between the District of Columbia and
New York, New York;
[(xvi) paint the Connecticut River,
Groton, and Pelham Bay bridges;
[(xvii) provide additional catenary
renewal and power supply upgrading
between the District of Columbia and
New York, New York;
[(xviii) rehabilitate structural,
electrical, and mechanical systems at
the 30th Street Station in
Philadelphia, Pennsylvania;
[(xix) install evacuation and fire
protection facilities in tunnels in New
York, New York;
[(xx) improve the communication and
signal systems between Wilmington,
Delaware, and Boston, Massachusetts, on
the Northeast Corridor main line, and
between Philadelphia, Pennsylvania, and
Harrisburg, Pennsylvania, on the
Harrisburg Line;
[(xxi) improve the electric traction
systems between Wilmington, Delaware,
and Newark, New Jersey;
[(xxii) install baggage rack
restraints, seat back guards, and seat
lock devices on 348 passenger cars
operating in the Northeast Corridor;
[(xxiii) install 44 event recorders
and 10 electronic warning devices on
locomotives operating within the
Northeast Corridor; and
[(xxiv) acquire cab signal test boxes
and install 9 wayside loop code
transmitters for use within the
Northeast Corridor.
[(2) The following additional amounts may be
appropriated to the Secretary for expenditure by
Amtrak:
[(A) not more than $150,000,000 to achieve
the goal of section 24902(a)(3) of this title.
[(B) not more than $120,000,000 to acquire
interests in property in the Northeast
Corridor.
[(C) not more than $650,000 to develop and
use mobile radio frequencies for passenger
radio mobile telephone service on high-speed
rail passenger transportation.
[(D) not more than $20,000,000 to acquire and
improve interests in rail property designated
under section 206(c)(1)(D) of the Regional Rail
Reorganization Act of 1973 (45 U.S.C.
716(c)(1)(D)).
[(E) not more than $37,000,000 to carry out
section 24902(a)(7) and (j) of this title.
[(b) Emergency Maintenance.--Not more than $25,000,000 of the
amount appropriated under the Act of February 28, 1975 (Public
Law 94-6, 89 Stat. 11), may be used by Amtrak for emergency
maintenance on rail property designated under section
206(c)(1)(C) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 716(c)(1)(C)).
[(c) Priority in Using Certain Amounts.--Amounts appropriated
under subsection (a)(2)(B) and (D) of this section shall be
used first to repay, with interest, obligations guaranteed
under section 602 of the Rail Passenger Service Act, if the
proceeds of those obligations were used to pay the expenses of
acquiring interests in property referred to in subsection
(a)(2)(B) and (D).
[(d) Prohibition on Subsidizing Commuter and Freight
Operating Losses.--Amounts appropriated under this section may
not be used to subsidize operating losses of commuter rail or
rail freight transportation.
[(e) Substituting and Deferring Certain Improvements.--
[(1) A project for which amounts are authorized under
subsection (a)(1)(C) of this section is a part of the
Northeast Corridor improvement program and is not a
substitute for improvements specified in the document
``Corridor Master Plan II, NECIP Restructured Program''
of January, 1982. However, Amtrak may defer the project
to carry out the improvement and rehabilitation for
which amounts are authorized under subsection (a)(1)(B)
of this section. The total cost of the project that
Amtrak defers may not be substantially more than the
amount Amtrak is required to expend or reserve under
subsection (a)(1)(B).
[(2) Section 24902 of this title is deemed not to be
fulfilled until the projects under subsection (a)(1)(C)
of this section are completed.
[(f) Availability of Amounts.--Amounts appropriated under
subsection (a)(1) and (2)(A) and (C)-(E) of this section remain
available until expended.
[(g) Authorizations Increased by Prior Year Deficiencies.--An
amount greater than that authorized for a fiscal year may be
appropriated to the extent that the amount appropriated for any
prior fiscal year is less than the amount authorized for that
year.]
CHAPTER 281--LAW ENFORCEMENT
Sec. 28103. Limitations on rail passenger transportation liability
(a) Limitations.--
(1) Notwithstanding any other statutory or common law
or public policy, or the nature of the conduct giving
rise to damages or liability, a contract between Amtrak
and its passengers, the Alaskan Railroad and its
passengers, or private railroad car operators and their
passengers regarding claims for personal injury, death,
or damage to property arising from or in connection
with the provision of rail passenger transportation, or
from or in connection with any operations over or use
of right-of-way or facilities owned, leased, or
maintained by Amtrak or the Alaskan Railroad, or from
or in connection with any rail passenger transportation
operations over or rail passenger transportation use of
right-of-way or facilities owned, leased, or maintained
by any high-speed railroad authority or operator, any
commuter authority or operator, or any rail carrier
shall be enforceable if--
(A) punitive or exemplary damages, where
permitted, are not limited to less than 2 times
compensatory damages awarded to any claimant by
any State or Federal court or administrative
agency, or in any arbitration proceeding, or in
any other forum or $250,000, whichever is
greater;
(B) passengers are provided adequate notice
of any such contractual limitation or waiver or
choice of forum; and
(C) passengers are given an opportunity to
purchase supplemental insurance coverage when a
ticket is purchased or at point of departure.
(2) For purposes of this subsection, the term
``claim'' means a claim made directly or indirectly--
(A) against Amtrak, any high-speed railroad
authority or operator, any commuter authority
or operator, or any rail carrier including the
Alaskan Railroad or private rail car operators;
or
(B) against an affiliate engaged in railroad
operations, officer, employee, or agent of,
Amtrak, any high-speed railroad authority or
operator, any commuter authority or operator,
or any rail carrier.
(3) Notwithstanding paragraph (1)(A), if, in any case
in which death was caused, the law of the place where
the act or omission complained of occurred provides, or
has been construed to provide, for damages only
punitive in nature, a claimant may recover in a claim
limited by this subsection for actual or compensatory
damages measured by the pecuniary injuries, resulting
from such death, to the persons for whose benefit the
action was brought, subject to the provisions of
paragraph (1)(B).
(b) Effect on Other Laws.--This section shall not affect the
damages that may be recovered under the Act of April 27, 1908
(45 U.S.C. 51 et seq.; popularly known as the ``Federal
Employers' Liability Act'') or under any workers compensation
Act.
Rollcall Votes in Committee
In accordance with paragraph 7(c) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following description of the record votes during its
consideration of S. --:
Senator Breaux (for himself, and Mr. Packwood) offered an
amendment. By rollcall vote of 9 yeas and 10 nays as follows,
the amendment was defeated:
YEAS--10 NAYS--9
Mr. Hollings Mr. Pressler
Mr. Packwood \1\ Mr. Stevens
Mr. Inouye Mr. McCain
Mr. Ford Mr. Burns
Mr. Rockefeller Mr. Gorton
Mr. Kerry Mr. Lott
Mr. Breaux Mrs. Hutchison
Mr. Bryan \1\ Ms. Snowe
Mr. Dorgan Mr. Ashcroft \1\
Mr. Exon \1\
\1\ By proxy.
At the close of debate on S. --, the Chairman announced a
rollcall vote on the bill. On a rollcall vote of 17 yeas and 2
nays as follows, the bill was ordered reported:
YEAS--17 NAYS--2
Mr. Pressler Mr. Packwood
Mr. Stevens Mr. McCain \1\
Mr. Burns
Mr. Gorton
Mr. Lott
Mrs. Hutchison \1\
Ms. Snowe
Mr. Ashcroft
Mr. Hollings
Mr. Inouye \1\
Mr. Ford \1\
Mr. Exon
Mr. Rockefeller \1\
Mr. Kerry
Mr. Breaux
Mr. Bryan \1\
Mr. Dorgan
Mr. Pressler
\1\ By proxy.