[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.

                                
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