[Senate Report 110-67]
[From the U.S. Government Publishing Office]
110th Congress Report
SENATE
1st Session 110-67
_______________________________________________________________________
Calendar No. 158
PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2007
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 294
DATE deg.May 22, 2007.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred tenth congress
first session
DANIEL K. INOUYE, Hawaii, Chairman
TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West JOHN McCAIN, Arizona
Virginia TRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California GORDON H. SMITH, Oregon
BILL NELSON, Florida JOHN ENSIGN, Nevada
MARIA CANTWELL, Washington JOHN E. SUNUNU, New Hampshire
FRANK R. LAUTENBERG, New Jersey JIM DEMINT, South Carolina
MARK PRYOR, Arkansas DAVID VITTER, Louisiana
THOMAS CARPER, Delaware JOHN THUNE, South Dakota
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
Margaret Cummisky, Staff Director and Chief Counsel
Lila Helms, Deputy Staff Director and Policy Director
Christine Kurth, Republican Staff Director and General Counsel
Kenneth Nahigian, Republican Deputy Staff Director and Chief Counsel
Calendar No. 158
110th Congress Report
SENATE
1st Session 110-67
======================================================================
PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2007
_______
May 22, 2007.--Ordered to be printed
_______
Mr. Inouye, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 294]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 294) to reauthorize Amtrak, and
for other purposes, having considered the same, reports
favorably thereon with amendments and recommends that the bill
joint resolution deg. (as amended) do pass.
Purpose of the Bill
S. 294, the Passenger Rail Investment and Improvement Act of
2007 (PRIIA) would authorize Federal funding for the operation
and development of intercity passenger rail service; make
improvements to Federal passenger rail transportation policy
and activities; enhance passenger rail security; and
reauthorize Amtrak for 6 years.
Background and Needs
The National Railroad Passenger Corporation, known as Amtrak,
was formed as a non-governmental corporation in 1971 through
the enactment of the Rail Passenger Service Act of 1970. Amtrak
was established as a congressionally-chartered, for-profit
corporation to relieve the then financially beleaguered private
railroad sector of its common carrier obligations to offer
intercity passenger transportation and to preserve and
reinvigorate intercity passenger rail service throughout the
Nation. Amtrak was initially capitalized with limited Federal
funding and second-hand equipment acquired from the private
railroads. Some predicted the railroad would operate without
Federal support beginning in 1973, despite inheriting routes
and services that were generally unprofitable when operated by
the private railroads immediately preceding Amtrak's creation.
This stated expectation of Amtrak's self-sufficiency, and even
profitability, represented a unique Federal approach towards
the financing of one of the Nation's major passenger
transportation modes. While the country's highway network,
aviation, and public transportation systems have received
significant Federal capital and operating funding, Amtrak and
intercity passenger rail have not received similar treatment.
More than 35 years later, this approach--and the expectation
of self-sufficiency--has proven to be ineffective and
unrealistic, and has hindered the development of a world-class
national passenger rail system able to fully meet the needs of
the Nation in the 21st Century. While intercity passenger rail
service patronage steadily declined in the United States
following the second World War, recent increases in highway and
aviation congestion, rising fuel costs, available rail
capacity, and minimal environmental impacts have all made
intercity passenger rail service a growing and increasingly
important part of the Nation's multi-modal transportation
system.
Today, Amtrak serves nearly 25 million riders annually at
more than 500 stations in 46 States on approximately 22,000
route miles. Amtrak's ticket revenues were $1.56 billion in
Fiscal Year (FY) 2006--nearly 11 percent above FY 2005 levels--
with total revenues slightly exceeding $2 billion and expenses
at roughly $3 billion. Amtrak directly owns or operates 730
route miles, primarily between Massachusetts and Washington,
D.C., on Amtrak's Northeast Corridor (NEC) and in the State of
Michigan; several station facilities including Pennsylvania
Station in New York, New York, and Chicago Union Station in
Chicago, Illinois; and several major maintenance and repair
facilities.
In addition to infrastructure, Amtrak owns or leases hundreds
of locomotives, thousands of railroad cars, and numerous pieces
of maintenance of way equipment, vehicles, and other associated
assets. Outside of the NEC, Amtrak operates over tracks owned
by freight railroads through access rights provided by law and
either owns or contracts for the use of station facilities.
Amtrak's services can be classified into 4 distinct
categories:
NEC Services.--Three classes of
trains (Regional, Keystone, and high-speed
Acela Express) offer service between city pairs
along the NEC, serving the densely populated
and congested Northeast. Ridership on these
services accounted for roughly 38 percent of
Amtrak's total ridership, while operations
accounted for 53 percent of revenue and 29
percent of operating costs in 2006;
Long Distance Services.--Amtrak's
long distance trains generally travel over 750
miles and connect different regions of the
country, serving both major cities and sparsely
populated rural areas where other
transportation options are often limited.
Ridership on these services accounted for
roughly 15 percent of Amtrak's total ridership,
while operations accounted for 26 percent of
revenue and 43 percent of operating costs in
2006;
Corridor Services.--Amtrak's
corridor services connect intra- or inter-state
city pairs within 750 miles of each other.
Amtrak generally receives some financial
support from the States for the operational and
capital costs of these services. Ridership on
these services accounted for roughly 46 percent
of Amtrak's total ridership, while operations
accounted for 21 percent of revenue and 28
percent of operating costs in 2006;
Commuter Services.--Amtrak is also
one of the Nation's largest providers of
contract commuter service for State and
regional authorities, providing services to
rail commuter authorities in California,
Maryland, Connecticut, Washington, and
Virginia, and serving an additional 61.1
million people per year.
Since Amtrak's inception, Congress has provided Federal
funding for Amtrak's operational and capital needs, either
directly to Amtrak or through a Department of Transportation
(DOT) grant process, which is currently the case. Federal
funding is provided through the annual appropriations process
from discretionary funds and can vary significantly from year
to year, depending on overall budget conditions and political
support, as shown below.
FEDERAL CAPITAL AND OPERATING FUNDS FOR AMTRAK:
FY 1997 $0.8 billion
FY 1998 $1.7 billion
FY 1999 $1.7 billion
FY 2000 $0.6 billion
FY 2001 $0.5 billion
FY 2002 $0.8 billion
FY 2003 $1.0 billion
FY 2004 $1.2 billion
FY 2005 $1.2 billion
FY 2006 $1.3 billion
FY 2007 $1.3 billion
Amtrak's most recent authorization, the Amtrak Reform and
Accountability Act of 1997 (Reform Act) reauthorized Amtrak for
5 years, providing a total of $5.3 billion for FYs 1998-2002
and requiring Amtrak to achieve operational self sufficiency
(``operational self sufficiency'' was defined to mean that
Amtrak's operating costs, excluding depreciation, would not be
funded with Federal funds) by December 2002--a goal that the
Corporation did not meet. During these years, limited Federal
funding, failed Amtrak revenue initiatives, and an
unwillingness by the railroad to exit services perceived as
essential to its public mission led to the failure to
dramatically reduce the Corporation's reliance on Federal
operating subsidies as called for by the Reform Act. Therefore,
in order to survive with the available revenues and Federal
monies, Amtrak curtailed or deferred many needed capital
investments and took on additional private debt financing to
fund its basic system needs. While most of Amtrak's existing
$3.5 billion long-term debt stems from equipment capital
leases, a portion of this total debt was acquired during these
years to preserve operations and now must be paid back as part
of a debt servicing cost that averages $300 million annually.
Limited continuous capital investment in both rolling stock
and infrastructure from the period of the last authorization
created a serious deferred maintenance problem. Poor train
performance and reliability due to equipment and infrastructure
deficiencies undermined Amtrak's operations and revenue
potential. Amtrak's subsidy per passenger during the Reform
Act's authorization period did decline from about $80 in 1998
to about $22 in 2001, much of this gain was due to Amtrak's
heavy borrowing and liquidation of assets to generate cash. In
2002, the final year of the Reform Act, Amtrak received a
Federal loan and an emergency appropriation to avoid
bankruptcy, and its subsidy jumped to nearly $40 per passenger.
Increases in the per passenger subsidy were similarly observed
over the next 2 years, reaching nearly $44 in 2003 and $48 in
2004.
Under current management, Amtrak has undertaken significant
efforts to reduce costs, restructure services, rebuild
equipment, and return infrastructure to a ``state-of-good-
repair''. (Amtrak has termed the process of returning the
railroad's infrastructure and equipment to a reliable and
productive state, a ``state-of-good-repair.'') Management
reforms have led to reduced operating costs, the termination of
unproductive business lines, increased ridership and revenue,
and improved train performance for NEC services. In FY 2006,
Amtrak reduced its net loss by $110 million as compared to FY
2005. Headcount at the Corporation has dropped by roughly 6,000
employees over the past several years, while the number of
daily trains has risen from 265 in 2002 to 300 today. After
being plagued by mechanical problems for several years, the
performance of the Acela Express, Amtrak's flagship fleet of
high-speed trains finally rebounded from roughly 70 percent on-
time operations in FY 2005 to nearly 80 percent in FY 2006.
Significant challenges and funding needs remain. Amtrak and
the DOT Inspector General (IG) identified roughly $5 billion in
deferred maintenance and capital backlog projects needed to
return the NEC to a state-of-good-repair. On-time performance
across Amtrak's system remained low at 66 percent in FY 2006,
with long-distance routes only operating on-time 28 percent of
the time, largely due to congestion on the freight railroad-
owned lines over which Amtrak operates outside the NEC. The
Corporation and its operating unions remain deadlocked in
longstanding contract negotiations. Additionally, the
Administration continues to recommend inadequate funding for
Amtrak through its annual budget proposal.
Responding to calls for reforms and improved and expanded
service, Amtrak's Board of Directors developed strategic reform
initiatives (Board Plan or Plan) in April 2005 to guide the
future actions of the Corporation. Accompanying this Plan was a
request for $1.82 billion in Federal funding to support FY 2006
capital investment programs and national operations. The Board
Plan would set forth several internal efforts to improve the
railroad while also calling upon Congress to adequately fund
the system and enact changes in statute to facilitate the
achievement of certain goals. The 4 fundamental objectives of
the Board Plan are:
Development of passenger rail
corridors utilizing a Federal/State matching
approach common to all other modes (generally
80/20). States, not Amtrak, would lead the
development of the corridors, a number of which
have already been federally designated, and
Amtrak and others may competitively bid to
provide the service;
Return of the NEC infrastructure to
a state-of-good-repair and operational
reliability, with phased in financial
responsibility for capital and operating costs
assumed on a proportionate basis by all users,
including Amtrak and freight and commuter
railroads;
Establishment of phased in financial
performance thresholds for Amtrak's existing 15
long distance trains and any future similar
proposed service; and
Creation of markets for competition,
private commercial participation and industrial
reforms in various rail functions. This
includes competition among operators, including
Amtrak, for new corridor routes.
Since the introduction of this plan, Amtrak has continued to
improve its physical state and launched new efforts to improve
customer service. In the first quarter of FY 2007, ridership
was up 4 percent, and ticket revenues were up 10 percent from
the first quarter of FY 2006. Amtrak also continued to reduce
its long term debt from nearly $4 billion in FY 2002 to under
$3.5 billion today, all while improving the safety of its
operations through a recent 40 percent reduction in the
Corporation's employee injury rate. During the balance of FY
2007 and FY 2008, Amtrak intends to build upon operational
improvements made over the last year and a half and focus
additional efforts on improving operations and revenues and
minimizing costs.
For FY 2008, Amtrak has requested $1.53 billion in Federal
operating and capital funding, representing an increase of $230
million over amount appropriated for FY 2007. In addition,
Amtrak proposed that Congress provide $100 million in matching
funds to States and communities for strategic intercity
passenger rail investment needs and $50 million for Americans
with Disabilities Act (ADA) station compliance efforts. Taken
together, Amtrak's total FY 2008 intercity passenger rail-
related Federal funding request is $1.68 billion. Out of this
total, Amtrak is requesting $485 million in FY 2008 to support
existing operations, which represents a $10 million reduction
in operating support from the FY 2007 enacted level. This
amount continues the Corporation's recent trend of generating
additional operating revenues to cover a growing portion of its
expenses, with a resulting reduction in Federal operating
funding requirements. The ratio of Federal operating support
versus total Amtrak expenses has continued to drop over the
past few years, from over 20 percent in FY 2005, when new cost
containment and revenue generation initiatives began, to a
projected 18.5 percent in FY 2008. These initiatives helped
Amtrak achieve $61.3 million in operational savings in FY 2006
and are budgeted to produce an additional $61 million for FY
2007. Amtrak projects an additional $80 million in savings in
FY 2008, which will equal a total reduction of $200 million in
recurring annual losses in just 3 years.
Amtrak is requesting an additional $285 million for debt
service payments in FY 2008. These funds are largely needed to
pay interest and principal payments related to rail equipment
leases. As is the case throughout the freight rail and transit
industries, railroads often purchase passenger rail equipment,
such as locomotives and cars, then sell and lease them back
through a third party (usually a financial institution). Such
arrangements can free up additional capital for investment
purposes, improve debt-to-equity ratio, and reduce depreciation
and interest costs. Thus, the debt that Amtrak pays can be
considered an operating cost associated with the Corporation's
capital fleet. Since FY 2003, Amtrak has taken on no additional
debt.
Over the past several years, Federal funding levels more
closely matched to Amtrak's capital and operating needs have
helped to eliminate some of the backlog of deferred maintenance
and capital projects, leading to a renewal of some Corporation
assets to service and reliability levels not seen over the past
20 years. The effects of this work on Amtrak's revenues and
ridership have been predictably positive.
Several improvements have flowed from the state-of-good-
repair process. The core car fleet, including the ``Amfleet''
and ``Horizon'' equipment used in the Northeast and Midwest
corridor services and the ``Superliner'' equipment used in
long-distance services, has undergone significant mechanical
overhauls, reducing equipment-related failures and delays.
Currently, almost 70 percent of Amtrak's passenger car fleet
and 85 percent of its locomotives will be in a state-of-good-
repair by the end of FY 2007, with the balance of the fleet
scheduled for overdue overhauls in FY 2008 and FY 2009. Other
recent state-of-good-repair projects completed or underway
include:
Initiating replacement of the Thames
River bridge in Connecticut.
Significant track replacement,
including improving below-track drainage,
replacing wood with concrete ties, and
replacing worn or jointed rail with continuous
welded rail.
Renewal of 61 miles of electric
catenary hardware.
Replacement of unreliable, 1930s-era
transmission cable in the Baltimore tunnels.
Completion of freight and commuter
projects in Rhode Island and Massachusetts.
The advancement of the Penn Station
tunnels fire and life safety program, including
a new ventilation plant and completion of the
floodgates in each tunnel.
Continuing such progress is dependent on reliable and
adequate Federal funding in FY 2008 and the following years.
Amtrak has requested $760 million in Federal capital funding
for FY 2008, which would allow Amtrak to continue the state-of-
good-repair effort and upgrade or replace obsolete
infrastructure and other assets. This figure includes a request
of $407 million for infrastructure investment, $182 million for
equipment overhaul, and $87 million for improvements to
stations and facilities. Additionally, Amtrak is requesting $21
million for an initial ``seed'' purchase of diesel multiple
unit (DMU) cars for use on lower density corridors. DMUs are
anticipated to be more efficient to operate than traditional
passenger trains on certain routes, and their use could allow
Amtrak to free up underutilized equipment for State corridor
growth. Amtrak's request also includes high-return business
initiative investments, such as a new electronic ticketing
system and conversions of Superliner diner and lounge cars into
diner-lounge cars, which will deliver near-term benefits to the
operating bottom line.
Over the past decade, States have increasingly taken the
initiative in meeting the growing demand for intercity
passenger rail, as the Federal government has provided only
limited funding for the development of new or improved
services. In its FY 2008 funding request, Amtrak calls for the
establishment of a $100 million Federal capital matching
program to support State passenger rail investments, suggesting
that such a program could substantially expand States'
abilities to meet the growing demand for passenger rail
corridor services. Amtrak also believes that such strategic
public investments in passenger rail corridors would provide
additional benefits to the freight rail industry, over whose
tracks most Amtrak routes operate. Additionally, Amtrak
proposes supporting this program through its own initiatives to
advance corridor development, including the joint development
of future fleet equipment specifications; DMU procurement to
serve as a test-case for low density services; the
transitioning of decision-making and some funding
responsibility for corridor routes from Amtrak to States; and
organizational changes that will enhance service to State
customers.
Concerns remain that insufficient time and funding are likely
to prevent full compliance with the ADA specifications at all
station stops by the 2010 deadline for passenger rail station
compliance. Amtrak estimates that the cost of ADA compliance is
approximately $250 million for all Amtrak stations, including
those owned by others but used by Amtrak. The outcome of a
pending Federal Railroad Administration (FRA) rulemaking
regarding station platforms likely will affect the time
required to comply with the ADA requirements and could
significantly increase the costs. Amtrak requested a
placeholder figure for ADA funding in FY 2008 of $50 million
above its base grant request to cover some of the anticipated
compliance costs. Amtrak also requested an extension of at
least five years to meet the statutory compliance obligation
after promulgation of final regulations by FRA.
Summary of Provisions
To address the challenges facing Amtrak and to promote the
expansion and improvement of intercity passenger rail service,
PRIIA would authorize stable and predictable funding for long-
term investments and improvements to intercity passenger rail
service and set forth strict guidelines for improvements to
Amtrak's long distance and corridor routes to reduce Amtrak's
operating subsidy. PRIIA incorporates features from the Board
Plan, DOT's reauthorization proposal, recommendations by the
DOT IG, and previous Senate reauthorization proposals.
PRIIA is a 6-year reauthorization bill covering FY 2007
through FY 2012, that would authorize sufficient capital and
operating funds to continue Amtrak's current service, upgrade
equipment, and return the NEC to a state-of-good-repair. Over
the life of the bill, Amtrak's operating subsidy would be
reduced by 40 percent through cost cutting, restructuring, and
reform while capital funding to Amtrak and the States for
intercity passenger rail projects would be increased.
FUNDING SUMMARY
(dollars in millions)
----------------------------------------------------------------------------------------------------------------
Avg.
2007 2008 2009 2010 2011 2012 Total Annual
----------------------------------------------------------------------------------------------------------------
Amtrak 5-Year Plan Operating Subsidy 580 601 642 683 724 765 3,995 666
Request
----------------------------------------------------------------------------------------------------------------
PRIIA Operating Subsidy Authorizations 580 590 600 575 535 455 3,335 556
----------------------------------------------------------------------------------------------------------------
PRIIA Amtrak Capital Authorizations 788 810 821 821 821 821 4,893 816
----------------------------------------------------------------------------------------------------------------
State Grants Authorizations 25 100 250 300 350 400 1,425 238
----------------------------------------------------------------------------------------------------------------
Amtrak Debt Repayment Authorizations 278 282 289.8 207.8 270 297.3 1,725 287
----------------------------------------------------------------------------------------------------------------
Total 1,671 1,782 1,961 2,004 1,976 1,973 11,378 1,896
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
The authorization levels for PRIIA are based, in part, on
future operating and capital spending estimates developed by
Amtrak and the DOT IG. The DOT's own Amtrak reauthorization
proposal did not recommend specific funding amounts, but rather
recommended ``such sums as necessary'' for the Corporation and
related intercity passenger rail programs. Specifically, the
amounts for capital include authorizations for the NEC and
other corridors, long distance trains, and Amtrak's system.
Through the operational reforms and flexibilities provided in
the bill, Amtrak is expected to achieve operational
efficiencies that will result in cost reductions and revenue
increases that will result in a forty percent reduction (in
real terms) in its Federal operating subsidy over the 6-year
term of the bill. This reduction is reflected in the authorized
funding levels. Sources of savings include: restructuring and
streamlining long-distance train service; increased
productivity; and outsourcing and streamlining of food service
and station operations. Amtrak revenues should increase due to
increased State contributions for corridor service and
increased passenger revenue due to service enhancements.
AMTRAK REFORMS AND OPERATIONAL IMPROVEMENTS
PRIIA would require several major Amtrak reform initiatives
designed to increase financial and operation transparency and
accountability, reduce Federal operating subsidies, and improve
train performance and customer service.
The bill would require Amtrak to develop a new financial and
cost accounting system for Amtrak operations and a 5 year
financial plan that is consistent with the authorized funding
levels in the bill. Amtrak's current accounting system is
limited by both data quality and analysis depth, which hinders
the development of accurate business plans and service models.
This requirement will ensure increased transparency and better
data inputs and analysis on which to base sound business
decisions.
To address Amtrak's staggering debt load, which currently
consumes a significant portion of the Corporation's revenues
and Federal assistance, the bill would direct the Treasury
Secretary, in consultation with the DOT Secretary and Amtrak,
to enter into negotiations to restructure Amtrak's debt within
1 year after enactment of the Act. If such a restructuring
results in significant savings to Amtrak or the Federal
government, the Treasury Secretary may assume the restructured
debt, with the full faith and credit backing of the United
States. If no restructuring is possible, Amtrak remains solely
responsible for the debt without any Federal guarantee, as is
the case currently. This approach provides an incentive for
creditors to renegotiate and restructure current agreements in
a way favorable to Amtrak in exchange for certainty of
repayment. Reductions in principal and interest costs to Amtrak
achieved through such a restructuring should lower Amtrak's
need for Federal operating assistance, thus saving the public
money.
PRIIA expands the current Amtrak Board of Directors by adding
an additional member and the Amtrak President, bringing the
total number of members to 10. Further, the bill seeks to
establish a professional Board with the expertise to
effectively lead the Corporation by requiring members to have a
background in rail, transportation, or business. Additionally,
the bill modifies the procedure for congressional consultation
with regards to member appointments and ensures that the Board
has bipartisan representation. These steps should help to
hasten the Senate confirmation process for Board members and
ensure a full Board.
To track and enhance customer service, train performance, and
reliability, PRIIA would require the FRA and Amtrak, in
consultation with the Surface Transportation Board (STB) and
the freight railroads on whose track Amtrak operates, to
jointly develop metrics and standards for measuring the
performance and service quality of intercity train operations.
Such metrics and standards shall address cost recovery, on-time
performance, ridership per train mile, on board and station
services, and the connectivity of routes. The bill would
further direct FRA to collect metric data and publish quarterly
reports on train performance and service quality.
PRIIA also would direct FRA to retain an independent
consultant to develop and recommend objective methodologies for
route and service decisions. The methodologies shall give
consideration to cost recovery and on-time performance of
existing routes, connections with other routes, transportation
needs of communities not served by other public transportation,
and the methodologies used by rail service providers in other
countries. Amtrak shall consider adoption of the methodologies
recommended by the consultant. Amtrak often faces requests from
the public and its representatives to begin new service, alter
existing routes, or change frequencies. This effort is expected
to provide Amtrak with new options to consider when making
decisions about when, where, and how often to run trains and
provide the public with a better understanding of the
considerations impacting such decisions.
States wishing to directly, or through another rail carrier,
operate intercity passenger rail corridor service may seek use
of Amtrak equipment, facilities, and reservation systems. If
Amtrak and a State fail to reach an agreement governing such
use, PRIIA would direct STB to determine reasonable terms of
use and would allow STB to direct Amtrak to make such assets
available under such terms, so long as such use is essential to
the planned service and will not impair or degrade Amtrak's
other operations.
NORTHEAST CORRIDOR AND SHORT-DISTANCE ROUTES
The NEC is Amtrak's flagship asset. The Corporation operates
the majority of its passenger trains on this line, and the NEC
provides Amtrak with the bulk of its patronage and revenue.
However, the NEC, as Amtrak's main capital asset, also has the
greatest capital needs and poses the largest set of future
challenges to the Corporation. The intensity of current
intercity and commuter operations coupled with years of
deferred maintenance and limited capital spending has
significantly impaired operations. In particular, although
Amtrak's ownership and dispatching control of the NEC ensures
significantly better on-time performance as compared to the
majority of Amtrak's long-distance trains, persistent problems
with infrastructure, equipment, and trackage consistently lower
expected NEC train performance.
To address these issues, PRIIA would require Amtrak to
develop a capital spending plan to return the NEC to a state-
of-good-repair by the end of 2011. Some of the capital funds
authorized in the bill are available to carry out the plan at a
100 percent Federal share. The bill also would establish an
advisory commission to provide advice and oversight of the
NEC's operations and infrastructure and to plan for the
Corridor's future needs. The commission membership would
represent Amtrak, FRA, and the 13 States along the NEC.
Additionally, to address historical differences in the fees
paid to Amtrak for NEC access by various northeastern commuter
authorities and to ensure that Amtrak is charging adequate fees
to cover the associated costs, the commission would be required
to develop a proposal for determining the proper cost
allocations and access fees for NEC passenger and commuter
trains. If Amtrak and the States fail to develop or implement a
proposal for determining such costs and assigning commensurate
fees, PRIIA would authorize STB to impose restructured fees for
the users of the NEC.
For other short distance corridor services, Amtrak and the
States, in consultation with FRA, would be required to develop
uniform cost allocation methods to assign costs and determine
compensation levels from States for the services Amtrak
provides. Currently, States pay widely varying amounts to
Amtrak to cover capital and operating costs associated with
these services. PRIIA would require Amtrak and all States in
which short distance trains are operated to settle on a cost
allocation formula that would eliminate this discrepancy,
allowing all States to pay like amounts for like services. If
Amtrak and the States do not develop or implement the proposed
formula, STB would be authorized to impose restructured
compensation rates.
LONG-DISTANCE TRAINS
Amtrak's 15 long-distance trains serve 41 States connecting
major regional population centers across the Nation. These
trains serve several travel markets simultaneously, providing
basic public transportation in rural regions of the country
where other options are limited, serving leisure travelers and
tourists, and providing intercity corridor service between city
pairs along a given route. Long distance trains come in various
sizes and configurations depending on the markets served, with
trains featuring a mix of sleeping accommodations, coaches,
dining cars, and baggage equipment. All of the long-distance
trains incur operating losses and require significant Federal
operating subsidies. The long-distance services also routinely
suffer significant delays for a number of reasons, including
delays caused by freight train interference as they traverse
freight railroad owned trackage, which affect Amtrak's
reliability and the revenue potential for these services.
While some have called for the wholesale elimination of these
trains, PRIIA would require that significant steps be taken to
try to improve or restructure these services to reduce costs
and enhance service while continuing to provide basic long-
distance service, where appropriate, to meet the mobility needs
of rural communities that may not have access to other
transportation alternatives. The bill would require Amtrak to
rate the performance of its long-distance routes and establish
performance improvement plans for all long-distance trains,
beginning with the 5 lowest ranked routes. As Amtrak develops
these plans, it must consider restructuring these routes,
improving on board services, changing amenities such as sleeper
car service and food service, seeking revenue contributions
from States or other sources, and changing train frequencies.
Amtrak also would be directed to consider the feasibility of
restructuring long-distance trains into a series of
interconnected corridors. Such interconnected corridors could
provide better frequencies and operate at times that are more
convenient to passengers on the route. Because Amtrak's long
distance trains generally operate night and day, a number of
communities along the route receive service only at
inconvenient times such as the middle of the night. If Amtrak
fails to implement a plan for a specific route in accordance
with the timetable set in the bill or if the plan does not lead
to the achievement of the stated objectives, FRA would have the
authority to withhold Federal operating support for that route.
In an additional effort to improve service, the bill would
establish a competitive bid program, administered by FRA,
allowing freight railroads to bid to operate a limited number
of long-distance trains over their current routes. This program
would introduce competition in an attempt to reduce operating
costs and improve service and would offer an opportunity to
observe passenger train performance over freight railroads when
the host railroad is entirely in charge of the provision of
service. Operating subsidies for any operators under this
program would be capped at the amount provided in the previous
year. Any Amtrak employee adversely affected by the cessation
of the operation of a route would either be relocated to other
positions within Amtrak, provided financial incentives in
exchange for the voluntary termination of his or her
employment, or paid termination payments guaranteed under
existing collective bargaining agreements.
To address on-time performance and service issues impacting
intercity passenger trains operating over freight railroad
trackage, the bill would direct FRA to issue a quarterly on-
time service report. If for a particular route, a passenger
train's on-time performance record falls below 80 percent for 2
consecutive quarters or fails to meet other requirements set by
FRA, STB may investigate the causes and make recommendations to
Amtrak or a freight railroad of how to reduce delays.
Additionally, STB would automatically undertake such an
investigation if petitioned by Amtrak, a freight railroad that
hosts Amtrak trains, or a State or other entity that funds
Amtrak operations. If STB determines that delays to passenger
trains are the result of freight railroads not providing
priority access to Amtrak, as currently required under law, STB
would be authorized to take appropriate action to enforce
Amtrak's priority access rights.
STATE CAPITAL GRANTS PROGRAM
In an effort to encourage the development of new and improved
intercity passenger rail services, PRIIA would create a new
State Capital Grant program for intercity passenger rail
capital projects as proposed by the States, Amtrak, and the
Administration and based on the New Starts transit capital
program administered by the Federal Transit Administration
(FTA). The program would authorize grants to a State, or a
group of States, to pay for the capital costs of facilities and
equipment necessary to provide new or improved intercity
passenger rail. The Federal match would be 80 percent. The DOT
Secretary would award grants for projects based on economic
performance, expected ridership, and other factors.
RAIL SECURITY
PRIIA, as reported, includes the rail security provisions of
S. 184, the Surface Transportation and Rail Security Act of
2007 (STARS Act), that were passed by the Senate as part of S.
4, the ``Improving America's Security by Implementing
Unfinished Recommendations of the 9/11 Commission Act of 2007''
on March 13, 2007. S.184 was reported by the Senate Committee
on Commerce, Science, and Transportation on February 15, 2007.
The provisions would require the Transportation Security
Administration (TSA) and the Department of Homeland Security
(DHS) to undertake a comprehensive railroad security risk
assessment, develop new grant programs to fund passenger and
freight rail security improvements and research, and authorize
security and safety improvements for Amtrak's NEC tunnels.
Legislative History
S. 294 was introduced on January 16, 2007, by Senator
Lautenberg and co sponsored by Senators Lott, Inouye, Stevens,
Kerry, Hutchison, Dorgan, Snowe, Boxer, Specter, Pryor, Burr,
Carper, Durbin, Biden, Kennedy, Clinton, Schumer, Menendez, and
Cardin, and was referred to the Senate Committee on Commerce,
Science, and Transportation. A hearing on the reauthorization
of Amtrak was held by the Senate Committee on Commerce,
Science, and Tranportation Subcommittee on Surface
Transportation and Merchant Marine Infrastructure, Safety, and
Security on February 27, 2007. On April 25, 2007, the Committee
met in open executive session and ordered S. 294 reported
favorably, as amended, with two amendments.
Estimated Costs
In compliance with subsection (a)(3) of paragraph 11
of rule XXVI of the Standing Rules of the Senate, the Committee
states that, in its opinion, it is necessary to dispense with
the requirements of paragraphs (1) and (2) of that subsection
in order to expedite the business of the Senate. deg.
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:
S. 294--Passenger Rail Investment and Improvement Act of 2007
Summary: CBO estimates that implementing S. 294 would cost
$10.1 billion over the 2008-2017 period. S. 294 authorizes the
appropriation of about $ 8.9 billion over the 2008-2012 period
for grants to Amtrak to cover operating expenses, capital
projects, debt repayment, and security improvements. The
legislation also would authorize the appropriation of about
$1.8 billion over the 2008-2012 period to the Department of
Transportation (DOT) for new grant programs for certain
projects completed by state railroad entities, to enable Amtrak
and participating states to share railroad equipment, for
grants to improve rail security, and for assessments and
research of rail operations. The bill would require Customs and
Border Protection (CBP) to expand its operations at its leased
rail facility in Vancouver, Canada. In addition to those
amounts specifically authorized to be appropriated, S. 294
would impose additional costs on the Department of Homeland
Security (DHS) and certain agencies within DOT by requiring
them to oversee Amtrak operations, to assess rail operations
and rail security, and to submit reports to the Congress.
S. 294 would affect direct spending by authorizing the
Surface Transportation Board (STB) to assess penalties on
freight railroads for damages they cause by delaying Amtrak
trains and to provide those penalties to Amtrak. CBO expects
that the net impact on the budget would be insignificant
because the STB would spend whatever it collects for damages.
The bill also would authorize the Department of the Treasury to
repay Amtrak debt--without further appropriation--if the
department chooses to negotiate with Amtrak's creditors to
restructure the debt. CBO does not expect that the Treasury
would seek to restructure and repay Amtrak's debt. If, however,
the Treasury did repay Amtrak's debt, that provision would
increase direct spending by more than $2 billion over the next
several years.
CBO estimates that the other civil penalties authorized in
the bill would have a negligible effect on revenues.
S. 294 contains intergovernmental mandates as defined in
the Unfunded Mandates Reform Act (UMRA) because it would
require rail and motor carriers to comply with reporting
requirements and certain security procedures. The bill also
would preempt certain state laws. The aggregate cost to public
entities for complying with those mandates is uncertain and
would depend on future regulations. Because of the small number
of entities involved, however, CBO estimates that those costs
would not exceed the annual threshold established by UMRA for
intergovernmental mandates ($66 million in 2007, adjusted
annually for inflation). Other provisions of the bill would
benefit states by authorizing about $2.4 billion in new grants
to improve rail service and security. Any costs those entities
would incur to comply with conditions of federal assistance
would be incurred voluntarily.
S. 294 contains several private-sector mandates as defined
in UMRA because it would require Amtrak and other rail carriers
to comply with reporting requirements and certain security
procedures. The bill also would impose additional requirements
on Amtrak related to the performance of routes and meeting
certain passenger needs. The cost to the private sector for
complying with those mandates is uncertain and would depend on
future regulations. CBO cannot determine whether the aggregate
cost of mandates in the bill would exceed the annual threshold
established by UMRA for private-sector mandates ($131 million
in 2007, adjusted annually for inflation). Other provisions of
the bill would authorize grants for Amtrak. Any costs that
Amtrak would incur to comply with conditions of federal
assistance would be incurred voluntarily.
Estimated cost to the Federal government: The estimated
budgetary impact of S. 294 is shown in the following table. The
costs of this legislation fall within budget function 400
(transportation).
Basis of estimate: For this estimate, CBO assumes that S.
294 will be enacted near the end of fiscal year 2007 and that
the authorized and necessary amounts will be appropriated each
year beginning in fiscal year 2008. S. 294 also would authorize
the appropriation of $1.7 billion in 2007 for Amtrak and other
activities related to rail transportation; however, those
amounts are not included in this cost estimate. (For this
estimate, CBO assumes that no further appropriations will be
provided in 2007 for Amtrak.) Estimates of spending are based
on historical spending patterns of existing and similar
programs.
S. 294 would authorize the appropriation of $10.8 billion
over the 2008-2012 period. That amount includes funds for
grants to Amtrak for capital, operating, security, and debt
expenses, grants to rail operators for security, grants to
states for rail operations, and funds to support customs
operations at the Vancouver rail station in Canada. In
addition, CBO estimates that complying with the bill's
requirements for DHS and certain agencies within DOT would cost
$38 million over the 2008-2012 period, subject to the
availability of appropriated funds.
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
---------------------------------------
2008 2009 2010 2011 2012
------------------------------------------------------------------------
Grants to Amtrak:
Authorization Level......... 1,867 1,870 1,834 1,760 1,566
Estimated Outlays........... 1,867 1,870 1,834 1,760 1,566
Grants for Rail Security:
Authorization Level......... 133 133 133 0 0
Estimated Outlays........... 83 118 133 50 15
Grants to States for Rail
Projects:
Authorization Level......... 100 246 274 369 406
Estimated Outlays........... 22 72 139 205 277
Other Authorized Programs:
Authorization Level......... 20 9 9 6 6
Estimated Outlays........... 11 11 10 8 7
Oversight, Reporting, and
Assessments:
Estimated Authorization 15 8 6 5 6
Level......................
Estimated Outlays........... 7 14 6 5 6
---------------------------------------
Total Changes:
Estimated 2,135 2,266 2,256 2,140 1,984
Authorization Level
Estimated Outlays... 1,990 2,085 2,122 2,028 1,871
------------------------------------------------------------------------
Spending subject to appropriation
Amtrak. S. 294 would authorize the appropriation of about
$8.9 billion for grants to Amtrak over the 2008-2012 period.
This total includes $2.7 billion for operating expenses, $4.1
billion for capital projects, and $1.5 billion for the
repayment of the principal and interest on its debt. The bill
also includes $599 million to improve the safety of tunnels in
Maryland, New York, and the District of Columbia, and to
upgrade security throughout the Amtrak system. Currently, DOT
makes appropriations immediately available to Amtrak for such
expenses. Assuming appropriation of the specified amounts, CBO
estimates that those grants to Amtrak would cost $8.9 billion
over the 2008-2012 period.
Grants for Rail Security. The bill would authorize the
appropriation of $399 million over the 2008-2010 period for
grants to rail carriers for improving security. That amount
includes $300 million to upgrade the security of the national
freight and passenger rail system by improving emergency
communications, securing capital assets, and training
employees. The bill also would authorize the appropriation of
$99 million over the 2008-2010 period for grants to research
and develop methods to improve the security of freight and
intercity rail transportation. CBO estimates implementing those
provisions would cost $399 million over the 2008-2012 period.
Grants to States for Rail Projects. S. 294 would authorize
DOT to make grants to states for capital projects that would
improve intercity rail service. For those grants, the bill
would authorize the appropriation of $1.4 billion over the
2008-2012 period. Assuming appropriation of the specified
amounts, CBO estimates those grants would cost $715 million
over the 2008-2012 period and about $700 million after 2012.
Other Authorized Programs. Other provisions of the bill
would authorize the appropriation of $50 million over the 2008-
2012 period, including:
$30 million for DOT to improve models for
understanding railroad transportation and to study how
railroad transportation could be improved;
$5 million for the Federal Railroad
Administration, Amtrak, and interested states to form a
committee to develop standards for certain rail
equipment. The bill would allow Amtrak and
participating states to enter into agreements or
establish a corporation for acquiring such equipment;
$9 million for DHS to develop a program to
encourage the use of wireless tracking systems for rail
cars that are transporting certain hazardous materials;
and
$6 million for CBP to implement a program to
prescreen individuals traveling by rail between
Vancouver, Canada, and Seattle, Washington.
Assuming appropriation of those specified amounts, CBO
estimates that implementing those provisions would cost $11
million in 2008 and $50 million over the 2008-2012 period.
Oversight, Reporting, and Assessments. S. 294 would require
DHS and certain agencies within DOT to oversee Amtrak
operations, assess the nation's rail infrastructure, the safety
and security of rail operations, and the performance of Amtrak,
and to complete several reports to the Congress on Amtrak's
operations and rail security. The bill also would require those
departments to review plans for security and infrastructure
improvements submitted by states and rail carriers to increase
the public awareness of rail security issues. The bill would
authorize the appropriation of $5 million to DHS in 2008 to
complete a risk assessment of freight and passenger rail
transportation and require the department to prepare subsequent
annual updates to that assessment.
Based on information from DOT and DHS, CBO estimates that
implementing those provisions would cost $7 million 2008 and
$38 million over the 2008-2012 period.
Direct spending and revenues
The bill would authorize the Treasury to repay Amtrak debt.
S. 294 would authorize the Surface Transportation Board to
assess penalties on freight railroads that cause damages to
Amtrak operations and to provide those amounts to Amtrak.
However, CBO expects that the impact of those provisions on
direct spending would be insignificant.
Repayment of Amtrak Debt. S. 294 would authorize the
Department of the Treasury to negotiate with Amtrak's creditors
to restructure Amtrak's long-term debt with the goal of
reducing costs to Amtrak and the government. Treasury's
authority to initiate such negotiations would expire on October
1, 2008. The bill also would direct the Treasury--without
further appropriation--to repay whatever debt the department is
able to restructure if the government and Amtrak would realize
savings.
Based on information from Amtrak and the Departments of
Transportation and Treasury, CBO does not expect that the
Secretary of the Treasury would opt to negotiate with Amtrak's
creditors, and as a result, would not repay any of Amtrak's
debt under this bill. Thus, CBO does not estimate that this
provision would affect direct spending. As of March 31, 2007,
Amtrak held about $3.4 billion in long-term debt. Of this
total, almost $900 million is held in an escrow account for
repayment, leaving about $2.5 billion available for
restructuring under S. 294. If the Treasury did negotiate with
Amtrak's creditors and restructure and repay this debt, CBO
estimates that the repayment would increase direct spending by
more than $2 billion over the next several years.
Freight Railroad Damages. S. 294 would direct the STB to
investigate Amtrak's failure to meet certain performance
measures and determine when the performance failure is due to a
freight rail carrier's refusal to provide Amtrak preference
over its tracks. The bill would authorize the STB to charge
damages to freight rail carriers for refusing to give Amtrak
such preference, and the bill would direct STB to provide those
penalties to Amtrak. Collecting the penalties and providing
them to Amtrak would affect direct spending and revenues, but
CBO estimates that the net impact on the federal deficit would
be insignificant. CBO estimates that such penalties would total
less than $500,000.
S. 294 would establish new civil penalties for violating
certain regulations established by DHS and for failing to
comply with the requirement to supply DHS with certain security
plans. Thus, the federal government might collect additional
fines if the bill is enacted. Collections of civil fines are
recorded as revenues and deposited in the Treasury; however,
CBO expects that any increase in revenues related to those
penalties each year would not be significant.
Estimated impact on state, local, and tribal governments:
S. 294 contains several intergovernmental mandates as defined
in the Unfunded Mandates Reform Act because it would require
rail and motor carriers to comply with reporting requirements
and certain security procedures. The bill also would preempt
certain state laws. The cost to public entities for complying
with those mandates is uncertain and would depend on future
regulations. Because of the small number of entities involved,
however, CBO estimates that those costs would not exceed the
annual threshold established by UMRA for intergovernmental
mandates ($66 million in 2007, adjusted annually for
inflation).
Rail worker security training
Through regulations to be established by the Department of
Homeland Security, section 410 would require rail carriers to
create and submit plans for security training and then complete
the training for all front-line workers. Front-line workers are
defined in the bill as security personnel, dispatchers, train
operators, other onboard employees, maintenance and
maintenance-support personnel, bridge tenders, as well as other
appropriate employees of rail carriers as defined by the
Secretary. CBO estimates that approximately 28,500 public-
sector employees would fit that definition.
According to experts from the rail industry, the amount of
training required varies depending on the industry sector
(passenger vs. freight). It is likely that in either sector,
the regulations issued by DHS would require additional
training. Further, it is likely that many employees would need
to be trained more than once over a five-year period.
Therefore, costs to train workers would probably exceed the
current costs for security training. Because costs would depend
upon the future actions of DHS, for which information is not
available, CBO cannot precisely estimate the total cost of this
mandate. We expect, however, that the incremental cost likely
would be small for public entities.
Whistleblower protection
Section 411 would prohibit rail carriers from discharging
or discriminating against any employee who reports a perceived
threat to security. Under current law, employees are protected
if they report any safety issues, but this bill would grant
additional whistleblower protections that would impose an
intergovernmental mandate on rail carriers, as defined in UMRA.
Because compliance with those broader whistleblower protections
likely would involve only a small adjustment in current
administrative procedures, CBO estimates that the provision
would impose only minimal additional costs on rail carriers.
Other impacts
Title I would authorize about $1.4 billion over the 2007-
2012 period for grants to states to improve intercity rail
service. Title II would require certain states with Amtrak
routes to agree on a formula for the distribution of capital
and operating costs. The federal government--via Amtrak--
currently subsidizes those routes, and the bill effectively
would increase the price of federal service. The bill would
also authorize about $1 billion over four years for grants to
improve the security of both passenger and freight rail,
establish a rail security and research program, and upgrade
Amtrak tunnels in New York, New Jersey, Baltimore, and
Washington, D.C. To the extent that state, local, or tribal
governments apply for and receive such grants, those provisions
would provide benefits to those entities. Any costs resulting
from complying with the conditions of the grants would be
incurred voluntarily.
Estimated impact on the private sector: S. 294 contains
several private-sector mandates as defined in UMRA because it
would require Amtrak and other rail carriers to comply with
reporting requirements and certain security procedures. The
bill also would impose additional requirements on Amtrak
related to the performance of routes and meeting certain
passenger needs. The cost to the private sector for complying
with those mandates is uncertain and would depend on future
regulations. CBO cannot determine whether the aggregate cost of
mandates in the bill would exceed the annual threshold
established by UMRA for private-sector mandates ($131 million
in 2007, adjusted annually for inflation). Other provisions of
the bill would authorize grants for Amtrak. Any costs that
Amtrak would incur to comply with conditions of federal
assistance would be incurred voluntarily.
Requirements specific to Amtrak
S. 294 would impose various private-sector mandates, as
defined in UMRA, on Amtrak. The bill includes reforms related
to financial reporting that would require Amtrak to submit an
annual budget and a five-year fiscal plan for Amtrak to the
Secretary of Transportation and DOT's Inspector General. Amtrak
would also be required to implement a modern financial
accounting and reporting system, subject to review by DOT. The
bill also would require Amtrak to evaluate the performance of
each long-distance passenger rail route annually and complete
the improvements necessary to make all existing stations
readily accessible to and usable by persons with disabilities.
Further, the bill would require that Amtrak:
Develop new or improve existing metrics and
minimum standards for measuring performance and service
quality of intercity train operations;
Develop and implement a plan to improve
onboard service within one year after those metrics and
minimum standards are established;
Submit a plan to the Chairman of the
National Transportation Safety Board and the Secretary
of Transportation for addressing the needs of families
of passengers involved in fatal rail accidents
involving Amtrak intercity trains; and
Implement new agreements for usage with
various public-sector entities.
According to industry sources, most of the requirements
included in the bill already are being met by Amtrak. For those
requirements that may require additional effort or changes to
current efforts, the cost to make such changes would be small.
Requirements on rail carriers (including Amtrak)
S. 294 would require rail carriers to train certain workers
in security procedures, would grant whistleblower protections
to their employees, and would place new requirements on
carriers that transport high hazard materials.
Rail Worker Security Training. Section 410 would require
rail carriers to create and submit plans for security training
and then complete the training for all front-line workers. The
security training programs must be developed in accordance with
the guidance to be issued by DHS under the bill. CBO estimates
that approximately 165,000 private-sector employees would fit
the definition of front-line workers under the bill.
According to experts from the rail industry, the amount of
training required varies depending on the industry sector
(passenger vs. freight). It is likely that in either sector,
the regulations issued by DHS would require additional training
over and above current practice. Further, it is likely that
many employees would need to be trained more than once over a
five-year period. Therefore, costs to train workers would
probably exceed the current costs for security training.
Because this mandate depends upon the future actions of DHS,
for which information currently is not available, CBO cannot
provide an estimate for the cost of this mandate. CBO expects,
however, that the additional cost for the private sector could
be substantial, depending on the guidelines set forth by DHS.
Whistleblower Protection. Section 411 would prohibit rail
carriers from discharging or discriminating against any
employee who reports a perceived threat to security. Under
current law, employees are protected if they report any safety
issues. The granting of additional whistleblower protections
would impose a private-sector mandate on rail carriers, as
defined in UMRA. Because compliance with these broader
whistleblower protections likely would involve only a small
adjustment in administrative procedures, however, CBO estimates
that the provision would impose only minimal additional costs
on rail carriers.
Requirements on Hazmat Carriers. Section 412 would require
rail carriers who transport high hazard materials, as defined
in the bill, to develop a security risk mitigation plan for
such materials. Currently, the Department of Transportation
requires rail carriers who transport those hazardous materials
to submit a security plan. However, the bill would expand the
current requirements on rail carriers to include submitting a
list of routes used to transport high hazard materials,
addressing temporary shipment suspension options, and assessing
risks to high-consequence targets. According to railroad
industry sources, rail carriers are already complying with many
of the requirements in the bill. Therefore, CBO estimates that
the additional cost to comply with the mandate would be
minimal.
Previous CBO estimate: On February 28, 2007, CBO
transmitted a cost estimate for S. 184, the Surface
Transportation and Rail Security Act of 2007, as ordered
reported by the Senate Committee on Commerce, Science, and
Transportation on February 15, 2007. That bill would authorize
$599 million in grants to Amtrak to secure tunnels and make
security upgrades and $399 million in grants to improve rail
security nationwide. It also would require DHS and DOT to
complete several reports, some of which would also be required
by S. 294. Both bills would require rail carriers to create and
submit plans for security training and then to complete such
training for all front-line workers and would protect
whistleblowers. The differences between the bills are reflected
in CBO's cost estimates.
In addition to several mandates on motor carriers and
pipeline operators, S. 184 contained many of the same mandates
on rail carriers as are contained in S. 294. Because of
uncertainty about regulations to be implemented under the bill,
CBO could not determine whether the aggregate costs of those
mandates on the private sector would exceed UMRA's annual
threshold for private-sector mandates.
Estimate prepared by: Federal Costs: Sarah Puro; Impact on
State, Local, and Tribal Governments: Elizabeth Cove; Impact on
the Private Sector: Fatimot Ladipot.
Estimate approved by: Peter H. Fontaine, Deputy 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
S. 294 is intended to reauthorize Amtrak, expand State
investment in passenger rail, enhance Federal and State rail
planning efforts, and improve rail and surface transportation
security by establishing new Federal programs and modifying
existing law. The bill affects DOT, FRA, STB, TSA, and other
entities already subject to FRA, STB, TSA rules and
regulations, and therefore the number of persons covered should
be consistent with the current levels of individuals impacted
under existing TSA and DOT regulations.
ECONOMIC IMPACT
S. 294 is not expected to have an adverse impact on the
United States economy. It is anticipated that the bill would
have positive economic impacts for Amtrak and for other
entities and regions that rely on intercity passenger service
to provide efficient transportation. For further analysis of
the economic impact on the private sector, see page ---- of the
CBO estimate.
PRIVACY
S. 294 would have minimal effect on the privacy rights of
individuals.
PAPERWORK
The Committee anticipates a slight increase in paperwork
burdens on requirements for private individuals or businesses.
In those areas where the bill does require additional
paperwork, it is aimed at improving the operations of Amtrak,
strengthening rail planning at the Federal and State level, and
enhancing the safety and security of transportation
infrastructure, assets, and operations.
S. 294 would require a range of plans, reports,
communications, budget analyses, agreements, and rulemakings.
Under sections 203 and 204, Amtrak and DOT IG would be required
to create financial plans and transmit these reports to the
Congress. Section 207 would require FRA to obtain an
independent analysis of route selection methodology for Amtrak
trains and submit this analysis to Congress, Amtrak, and DOT.
Under section 209, STB would be required to report on the
causes of chronic delays to Amtrak trains when certain criteria
have been meet or a party has requested an investigation.
Sections 209, 213, and 214 would require Amtrak to develop
route improvement plans for long-distance trains; an NEC state-
of-good-repair plan; an NEC access fee agreement, developed
with the NEC states; and security and safety committee reports.
Section 216 would require Amtrak to report to Congress on ADA
compliance issues, and section 221 would require a report on
improving on-board services.
Under section 401, the DHS Secretary would be required to
issue a report containing recommendations and plans to Congress
for improving rail security, and under sections 109 and 111,
the DHS and DOT Secretaries would be required to develop and
issue detailed guidance to the pertinent industry stakeholders.
Section 414 would require the DHS and DOT Secretaries to
develop a national plan for improved public outreach for rail
security, which would entail communication with citizens,
although not necessarily in print format.
The paperwork burden on industry or private individuals would
stem from plans that would be developed and/or submitted for
review to FRA and TSA; these plans would be used to justify new
or continued Federal financial support and for strategic
security purposes. For example, section 301 would require that
States submit State rail plans meeting the criteria set forth
under section 302 in order to be eligible for capital grants.
Under Section 411, rail carriers would be required to develop
and submit security threat mitigation plans which would be
updated and resubmitted for review, while section 401 could
require certain motor carriers to develop and maintain written
route plans. Illustrations of grant requirements are found in
sections 103, where the DOT Secretary would have to approve
plans submitted by Amtrak before distributing grants for fire
and life-safety improvements; in section 106, which would
require the DHS Secretary to establish procedures applicants or
grant awards; and in section 207, where the DHS Secretary would
not be required to award grants until private bus operators
submitted a plan for making security improvements.
Section-by-Section Analysis
TITLE I--AUTHORIZATIONS
Section 101. Authorization for Amtrak capital and operating expenses
and state capital grants.
This section would authorize capital and operating grants to
Amtrak for each of the FYs 2007 through 2012. Operating grant
authorizations are as follows:
FY 07: $580 million
FY 08: $590 million
FY 09: $600 million
FY 10: $575 million
FY 11: $535 million
FY 12: $455 million
This section would authorize capital grants for the national
railroad transportation system, for expenses to bring the
Northeast Corridor to a state-of-good-repair, and to make
grants directly to States for other intercity rail passenger
improvements under section 301. Capital grant authorizations
are as follows:
Amount authorized Percent available for States
FY 07: $813 million 3 percent
FY 08: $910 million 11 percent
FY 09: $1.071 billion 23 percent
FY 10: $1.096 billion 25 percent
FY 11: $1.191 billion 31 percent
FY 12: $1.231 billion 33 percent
One half of one percent of the available capital funds would
be available to the DOT Secretary to perform project management
oversight for Amtrak and State capital projects funded under
this section.
Section 102. Authorization for the Federal Railroad Administration.
There would be authorized to be appropriated to FRA such
funds as are necessary to implement responsibilities authorized
by this Act for FYs 2007 through 2012.
Section 103. Repayment of long term debt and capital leases.
Funds would be authorized to be appropriated to pay interest
and principal on Amtrak's long term debt for FYs 2007 through
2012. The average amount authorized per year for interest and
principal repayment is $287.5 million. Funds also would be
authorized, to the extent necessary, to exercise early buyout
of existing Amtrak debt or capital leases, if advantageous to
Amtrak and therefore the taxpayers. Payments made under this
section would not alter the existing non-Federal nature of
Amtrak's debt. Authorization amounts under this section shall
be reduced by the amount of Amtrak's debt service costs reduced
through debt restructuring by the Treasury Secretary under
section 215.
Section 104. Excess railroad retirement.
Such sums as are necessary would be authorized to be
appropriated to the DOT Secretary beginning FY 2007 to pay into
the Railroad Retirement Account the portion of Amtrak's
Railroad Retirement Tier II Tax which exceeds the Railroad
Retirement Tier II annuities paid to Amtrak retirees. The
authorization level for Amtrak's operations grant is to be
reduced by payments the Secretary makes under this section.
Section 105. Other authorizations.
Five million dollars would be authorized for each of FYs 2007
through 2012 for the rail cooperative research program required
under section 305. Another $5 million would be authorized for
FY 2008 to Amtrak and States participating in the Next
Generation Corridor Train Equipment Pool Committee established
under section 303. Two million in FY 2008 would be authorized
for Amtrak's use in conducting the evaluation required under
section 216.
TITLE II--AMTRAK REFORM AND OPERATION IMPROVEMENTS
Section 201. National railroad passenger transportation system defined.
The definition of the basic Amtrak route system, which has
been obsolete since 1997, would be repealed, and a new
``national rail passenger transportation system'' would be
defined as: Amtrak's Boston Washington NEC; high speed
corridors designated by the DOT Secretary once they have been
improved for high speed service; long-distance routes (of
greater than 750 miles) operated on the date of enactment of
the Act; and short distance routes operated by Amtrak or a non
Amtrak recipient of Federal capital assistance under section
301. Amtrak and a State may agree on the operation of an
intercity route or service not included in the National Rail
Transportation System.
Subsection (b) would clarify that the 180 day notice period
for routes which Amtrak seeks to discontinue does not apply for
routes exclusively supported by non Federal sources, including
States, regional or local authorities, or other parties that
contract with Amtrak to provide intercity passenger rail
service. Nothing in this provision is meant to provide third
parties with direct statutory access to Amtrak or privately
owned rail infrastructure. As is the case today, third parties
seeking to initiate intercity passenger rail service would have
to contract with Amtrak to operate such service if Amtrak's
statutory right of access to private rail infrastructure is to
be used.
Subsection (c) would state that Amtrak's general powers to
develop and operate non high speed intercity service are
unaffected by this bill.
Subsection (d) would state that the provision of law
pertaining to the discontinuance of Amtrak routes, 49 U.S.C.
24706, applies to all routes operated by Amtrak regardless of a
route's inclusion in the National Railroad Passenger
Transportation System. This provision affirms that a route's
inclusion in the National Railroad Passenger Transportation
System does not protect that route from possible
discontinuance. The Committee does not intend for this
provision to countervail the amendments made by subsection (b).
Section 202. Amtrak board of directors.
Effective, October 1, 2007, the Amtrak Board would be
expanded to 10 members as follows: the DOT Secretary, the
President of Amtrak, and 8 individuals with experience in
business, finance, or activities related to passenger
transportation, who are appointed by the President of the
United States, by and with the advice and consent of the
Senate, for a term of 5 years or until their successors have
been appointed and qualified. The President would be required
to consult with Congressional leaders to ensure balanced
representation of regions served by Amtrak. Members of Amtrak's
Board serving on the date of enactment of the Act would be
allowed to continue to serve to the end of their terms.
Section 203. Establishment of improved financial accounting system.
Section 203 would direct Amtrak to implement a modern
accounting and reporting system that enables the railroad to:
assign revenues and expenses to each of its lines of business
and major activities, such as train operations, equipment
maintenance, ticketing, and reservations; separate costs of
infrastructure and rail operations; analyze ticketing and
reservation data on a real time basis; and provide cost
accounting data. This section would further require the DOT IG
to review the accounting system and ensure it accomplishes the
specified purposes. Without improved financial systems and
controls, it will be difficult for Amtrak to substantially
improve its operations, save money, and increase revenue.
Section 204. Development of 5-year financial plan.
This section would require Amtrak to submit its annual budget
for the next fiscal year and a 5-year financial plan to DOT on
the first day of the fiscal year or 60 days after enactment of
an appropriation for such fiscal year. The budget should
specify how Amtrak plans to spend its Federal subsidy that it
has received in the appropriations act. This budget would be
distinct from the budget request that Amtrak submits to the
Administration and Congress. The 5-year plan shall include
projected revenues, expenditures, ridership, capital funding
requirements, cash flow forecasts, and an assessment of
Amtrak's continuing financial stability. The DOT IG shall
report to the Congress on the annual budget and the 5-year plan
prepared by Amtrak. It is the Committee's expectation that the
5-year plan conform to the authorization levels contained in
this legislation and that the out year detail be sufficient for
Congress to be able to ascertain if Amtrak will be able to
achieve the operating subsidy reductions required by section
101.
Section 205. Establishment of grant process.
Section 205 would require the DOT Secretary to establish
substantive and procedural requirements for Amtrak grant
requests. It is the Committee's expectation that the
requirements developed by the Secretary provide sufficient
transparency and controls over Amtrak's use of the Federal
appropriation. The requirements should include controls that
ensure that Federal funds appropriated for capital projects are
not diverted to cover operating costs. After Amtrak submits a
complete grant request including a schedule for funding, the
Secretary must approve or disapprove it within 30 days. If the
request is denied, the Secretary must notify Amtrak of the
reasons, and Amtrak must submit a modified request within 15
days. If the Secretary denies the modified request, the
Secretary must, within 15 days of its receipt, notify the
appropriate House and Senate Committees of the reasons for such
disapproval and recommend a process for resolving the
outstanding issues. This grant process would provide additional
Federal oversight ensuring that funds appropriated for the use
of Amtrak are used efficiently and for purposes consistent with
this Act. Additionally, the Committee believes that statutory
establishment of this process will provide both Amtrak and the
Secretary with clear timelines and expectations, which should
minimize disputes and result in the timely and predictable
transmittal of appropriated funds. The Committee does not
intend the grant process to be used by either party as a means
to pursue or require initiatives not included in this
reauthorization.
Section 206. State-supported routes.
Within 2 years after the date of enactment of the Act,
Amtrak, in consultation with the Secretary and the chief
executive of each State, would be required to develop a
standardized methodology for computing and allocating operating
and capital costs of short-distance routes of 750 miles or
less. Within 5 years after the date of enactment of the Act,
the new methodology must be implemented and ensure equal
treatment to all States supporting short-distance service. In
the event of a failure to adopt and implement such a
methodology, STB would be required to develop and implement an
allocation methodology. Grants to a State described under
section 301 would be available to pay capital costs under this
section. Currently Federal financial participation for corridor
routes varies widely. In some cases the Federal Government
supports the full subsidy, in other cases the routes are
supported exclusively by State funds. The purpose of this
provision is to standardize Federal participation across all
corridors.
Section 207. Independent auditor to establish methodologies for Amtrak
route and service planning decisions.
This section would direct FRA to retain a consultant to
develop and recommend objective methodologies for route and
service decisions including expansion or elimination of
services. Cost recovery and on-time performance of existing
routes, connections with other routes, transportation needs of
communities not served by other public transportation services,
and the methodologies used by rail service providers in other
countries must be considered. The Amtrak Board would be
required to consider adoption of the consultant's
recommendations. It is the Committee's expectation that the
methodologies be based on objective criteria and that the
independent consultant shall not have a financial interest or
other such conflicts in the outcome of Amtrak's routing
decisions.
Section 208. Metrics and standards.
This section would provide that, in consultation with STB and
the operating freight railroads, FRA and Amtrak will jointly
develop metrics and standards for measuring the performance and
service quality of intercity train operations within 180 days
after the date of enactment of the Act. These metrics and
standards would include cost recovery; on-time performance;
ridership per train mile; on board and station services; and
the connectivity of routes. This section would require FRA to
publish a quarterly report on train performance and service
quality. It is the Committee's expectation that the freight
railroads be consulted in the development of the metrics and
that to the extent practicable, the metrics and standards
developed not be inconsistent with measures of on-time
performance included in the contracts between the freight
railroads and Amtrak.
Section 209. Passenger train performance.
Section 209 would provide that if for any 2 consecutive
quarters, the on-time performance of any intercity passenger
train averages less than 80 percent, or the service quality
fails to meet the standards established under the previous
section, STB may investigate the extent to which such failure
is due to causes that could reasonably be addressed by the
operating freight railroad. Additionally, Amtrak, freight
railroads that host Amtrak trains, or states that financially
support Amtrak services also would be permitted to petition STB
directly for an investigation of Amtrak delays. If the Board
determines that the cause is the failure of a freight railroad
to provide preference to Amtrak over freight trains, the Board
shall enforce that preference under applicable law and may
award damages to Amtrak or a State that financially supports
Amtrak's services. The section also would amend existing law to
allow freight railroads to petition STB for relief if the
railroad believes that the operation of a particular Amtrak
route is having a negative impact on its freight operations.
Under current law, the railroad may only petition the DOT
Secretary. The intent of this section is to provide a forum for
both Amtrak and the freight railroads for the adjudication of
service disputes, including on-time performance problems.
Currently, the Committee understands that the existing process
is cumbersome and is almost never used. Meanwhile, the
frustration of both Amtrak and the freight railroads that host
Amtrak towards one another seems to be increasing, while
passenger train performance continues to decline or remain
dismal on certain routes. The Committee believes that STB will
be able to consider disputes in an efficient and evenhanded
manner.
Section 210. Long-distance routes.
Using the metrics and standards developed under section 208,
Amtrak would be required annually to evaluate each long-
distance route. Further, Amtrak would be required to rank the
routes, based upon their performance in 2006, as the best
performing third of such routes, the second best performing
third, and the worst performing third. Amtrak must develop a
performance improvement plan for its long-distance routes and
implement it in FY 2008 with respect to the worst-performing
routes; in FY 2009 for the second-best performers; and in FY
2010 for the best performing. FRA would monitor the development
and implementation of the long-distance route performance plan
and may withhold, following notice to Amtrak which has an
opportunity to be heard, appropriated funds for operating a
route on which reasonable progress in improving performance is
not being made. It is the Committee's expectation that the
performance improvement plans be the result of thorough
evaluations of the long-distance routes and that changes to
food service, sleeper service, and other on board amenities be
considered. It has been suggested that significant savings may
be realized if Amtrak restructured its contracts for food and
beverage service. Amtrak also should evaluate the long-distance
routes to see if they could be restructured to be a series of
inter-connected corridors. It also has been suggested that such
inter-connected corridors could provide more frequent service
at more convenient times, offering the potential for increased
ridership.
Section 211. Alternate passenger rail service program.
Within 1 year after the date of enactment of this Act, FRA
would be required to develop a program under which a rail
carrier or carriers that own a route over which Amtrak operates
may petition FRA to become a passenger rail carrier for that
route in lieu of Amtrak. Under the program, the rail carrier
and Amtrak would submit a bid to provide service over the
entire route, and FRA would award the right to provide such
service in accordance with standards it may prescribe. In
addition, the operating subsidy provided by FRA would not
exceed that which Amtrak received for the route prior to the
petition. An entity operating as a rail carrier that has
negotiated a contingent lease agreement with a railroad that
owns the infrastructure over which Amtrak currently operates
may participate in this program in affiliation with the host
freight railroad. The first deadline for submission of
petitions would be in FY 2008 for alternate operations to
commence in FY 2009. This section would not apply to more than
1 Amtrak route in FYs 2009 and 2010, and two routes beginning
in FY 2011 and each fiscal year thereafter. Any contract
awarded by FRA under this section would require the operator to
meet the metrics and standards under section 208.
Section 212. Employee transition assistance.
For Amtrak employees adversely affected by the cessation of
Amtrak as the operator of a long-distance route under section
211, the Secretary would be required to develop a program under
which the Secretary may provide up to $50,000 per employee in
benefits in lieu of other termination related payments due from
Amtrak. This transition assistance would be similar to
compensation provided to Conrail employees during Federal
management of that system. If the affected employees do not
accept the incentives offered under such program, the Secretary
would make grants to Amtrak of funds otherwise appropriated to
FRA to permit Amtrak to pay termination related benefits to
such employees under existing contractual agreements. Since
there will be ample time to plan for the transition of service
from Amtrak to a winning bidder other than Amtrak under section
211, it is expected that Amtrak will be able to use the
employees on the affected route to back fill positions
elsewhere in its system due to the attrition.
Section 213. Northeast Corridor state-of-good-repair plan.
Within 6 months after the date of enactment of the Act,
Amtrak, in consultation with the Secretary and the NEC States,
would be required to prepare a capital spending plan to return
the right of way, including trackage, signals, auxiliary
structures and infrastructure, equipment, stations, and
facilities of the NEC to a state-of-good-repair by the end of
FY 2012. The Secretary would review the plan and annual updates
for approval. The Secretary would make capital grants of
appropriated funds, as authorized by section 101 of this Act,
for up to 100 percent of the capital investments contained in
the spending plan. It is the Committee's expectation that the
Secretary shall use the grant process established in section
205 to ensure that funds appropriated for the NEC and made
available to Amtrak are spent on the Corridor and in a manner
consistent with the improvement plan. The bill also would allow
the Secretary to withhold up to one half percent of funds
appropriated for the NEC to fund project management oversight
(PMO). PMO is used in other DOT programs to ensure that funds
are effectively spent. The Committee intends that no local or
State match be required for projects on the state-of-good-
repair plan. Additionally, in the development and execution of
the capital spending plan, Amtrak shall have the flexibility to
allocate the estimated funds attributed to the state-of-good-
repair needs for a particular asset towards the refurbishment,
renewal, or replacement of that asset. Amounts made available
to Amtrak under this Act for projects contained in the plan
would be allowed to be combined with other sources of capital
investment to finance improvements that incorporate within them
the elements contained in the state-of-good-repair program.
Section 214. Northeast Corridor infrastructure and operations
improvements.
Within 6 months after the date of enactment of the Act, the
Secretary would be required to establish a NEC Infrastructure
and Operations Advisory Commission, which would include
representatives of Amtrak, FRA, and each of the States in the
NEC, with none of these parties constituting a majority. The
Commission then would develop future funding requirement
recommendations for capital improvements and scheduling and
safety enhancements. Further, within 1 year after the date of
enactment of PRIIA, the Commission would develop a proposal for
a standardized formula to determine costs and compensation to
be paid by the NEC commuter authorities for the use of
facilities or services provided to them by Amtrak. If Amtrak
and the commuter authorities do not implement the recommended
formula, they may go to arbitration or petition STB for a
ruling. This provision also would direct the Secretary to
establish a NEC Safety and Security Committee.
This section also would require Amtrak and the Rhode Island
Department of Transportation (RIDOT) to reach agreement by no
later than December 15, 2007, on access terms and other
conditions for RIDOT's use of the NEC for additional commuter
service in Rhode Island. If Amtrak and RIDOT can not reach
agreement on the terms of access, FRA, after consultation with
both parties, would resolve any outstanding disagreements
impeding the agreement by January 30, 2008. FRA would ensure
that the agreement would not allow for the cross-subsidization
of intercity passenger rail and commuter passenger rail
service.
Section 215. Restructuring long term debt and capital leases.
Between the date of enactment and January 1, 2008, the
Treasury Secretary, in consultation with the DOT Secretary and
Amtrak, would be authorized to make agreements to restructure
Amtrak's debt. The provision would direct the Treasury
Secretary to enter into negotiations with the holders of such
debt for the purpose of restructuring and assuming, or
repaying, the debt on terms significantly more favorable to the
United States Government. To the extent Amtrak's principal and
interest payments would be reduced as a result of this section,
authorizations for such payments under section 103 of this Act
are correspondingly reduced. Amtrak may incur no new debt
without advance approval of the DOT Secretary.
Section 216. Study of compliance requirements at existing intercity
rail stations.
Under this section, Amtrak would be required to evaluate the
improvements necessary to make all existing stations it serves
readily accessible as required under the ADA. The evaluation
would be required to include the estimated cost of such
improvements and the earliest date they could be made. The
evaluation submitted by Amtrak would be submitted to the House
and Senate authorizing Committees and the National Council on
Disability by September 30, 2008, along with recommendations
for funding such improvements.
Section 217. Incentive pay.
This section would encourage Amtrak to develop an incentive
pay program for Amtrak management employees. The Committee
believes that incentive pay could be an important tool to
increase productivity at Amtrak and reward excellence,
innovation, and improvement.
Section 218. Access to Amtrak equipment and services.
Under this section, States wishing to use operators other
than Amtrak for the provision of State-supported services would
have access to Amtrak equipment, facilities, and reservation
systems for the purpose of operating that particular route. If
Amtrak and a State fail to reach an agreement governing such
use, STB shall determine reasonable terms of use in accordance
with section 206 of this Act and direct Amtrak to make such
assets available to the State, so long as such use is essential
to the planned service and will not impair or degrade Amtrak's
other operations.
Section 219. General Amtrak provisions.
This section would repeal the operating self sufficiency
requirement imposed on Amtrak in 1997, along with the 2002
``sunset trigger'' for failing to meet the requirement. This
repeal is technical in nature and is not meant to indicate that
Amtrak should not strive to reduce it dependency on Federal
funds or improve the efficiency of how it spends Federal funds
as elaborated through this bill. Also repealed would be the
requirement to redeem Amtrak's outstanding common stock. In
addition, the provision would authorize Amtrak to continue
leasing vehicles from the General Services Administration. This
section also specifies that District of Columbia laws are
applicable to Amtrak contracts entered into with the State of
Maryland. This provision is necessary to avoid a conflict with
Maryland arbitration laws that has prevented the State and
Amtrak from concluding contract negotiations related to
Maryland-sponsored commuter service on the NEC.
Lastly, the section would authorize the establishment of
facilities and procedures to conduct pre-clearance of
passengers on Amtrak trains entering the U.S. from Canada. The
section would require that a facility first be established in
Vancouver, Canada, and other areas as designated by the DOT
Secretary. The Committee is aware of significant delays caused
to Amtrak trains entering the United State from Canada by
customs clearance procedures that occur en-route. The Committee
expects this authorization to lead to the establishment of pre-
clearance operations in Canada to expedite travel to the United
States by Amtrak, where practicable, similar to pre-clearance
arrangements now underway for certain airline flights between
the two Nations.
Section 220. Private sector funding of passenger trains.
The provision would prompt Amtrak to seek out business with
private sector customers (i.e. charters, etc.) in order to
decrease its Federal operations grant amounts. The Committee
believes that Amtrak should explore such business arrangements
and that such partnerships have the potential to reduce costs
and improve the level of service.
Section 221. On-board service improvements.
Under this provision, Amtrak would develop and implement a
plan to improve on-board service based on the metrics and
standards developed under section 208. Amtrak would provide a
report to Congress describing how it will improve on board
service and provide a timeline for implementing such
improvements. Amtrak's on-board service has frequently been the
subject of criticism. The Committee believes major improvements
can be made to improve the experience of passengers, and
suspects such improvements will directly increase the
corporation's profits.
Section 222. Amtrak management accountability.
This section would require the DOT IG to complete an overall
assessment within 3 years following the date of enactment of
this Act and 2 years thereafter of the progress made by Amtrak
management and the DOT in implementing the provisions of this
Act.
Section 223. Locomotive biodiesel fuel use study.
This section would require FRA to conduct a study on the
extent to which Amtrak can use biodiesel fuel to power its
locomotive fleet. FRA would be required to consult with the
Department of Energy and the Environmental Protection Agency in
conducting the study. By April 1, 2008, FRA would be required
to report to Congress the results of the study, including
findings, conclusions, and recommendations.
TITLE III--INTERCITY PASSENGER RAIL POLICY
Section 301. Capital assistance for intercity passenger rail service.
This provision would establish authority for the DOT
Secretary to make capital grants to a State to fund
improvements to intercity passenger rail transportation from
the funds authorized for capital improvements under section
101. A grant may not exceed 80 percent of the capital cost, but
the remaining 20 percent may be funded from amounts
appropriated to a department of the Federal Government and
eligible to be expended on transportation. The Secretary also
would allocate an appropriate portion of grants under this
section to States with no intercity rail passenger service
(Hawaii, South Dakota, and Wyoming) and to the State of Alaska.
Conditions of the grants are: (1) compliance with laws
generally governing major Federal projects, (2) a written
agreement between the grantee and the owner of any railroad
facilities to be used or improved, and (3) a written agreement
between any new rail operator and Amtrak labor organizations to
protect the rights of Amtrak employees who would otherwise be
adversely affected (this does not apply to Amtrak's access to
railroad rights of way for projects where train speeds do not
exceed 79 miles per hour or to the Alaska Railroad). Although
these grants are primarily established for States to fund
improvements to intercity passenger rail transportation, these
projects may benefit other infrastructure owners or users.
Section 302. State rail plans.
States would be authorized to prepare and maintain a State
rail plan in accord with requirements listed in this section. A
State rail plan would be required to designate an authority to
approve and carry out the plan and be reviewed by the
Secretary. The section also would provide criteria for the
purpose and content of the State rail plans, including a long
range service and investment program.
Section 303. Next generation corridor train equipment pool.
Amtrak would be required to establish, within 180 days of
enactment of this Act, a committee, along with FRA and
interested States, to design and develop specifications for a
joint procurement of equipment (i.e. passenger cars,
locomotives, etc.).
Section 304. Federal rail policy.
Under this section, the organization of FRA would be modified
and its responsibilities would be expanded. Under this section
FRA would be required to develop a national rail plan; the
development of the national rail plan shall not impede ongoing
State rail planning, project development, or funding.
Section 305. Rail cooperative research program.
The Secretary would be directed to establish a research
program to examine issues relating to intercity, commuter, and
freight rail enhancements, including impacts on highway and
airport congestion, rail capacity constraints, and development
of high speed rail services.
TITLE IV--PASSENGER RAIL SECURITY AND SAFETY
Section 401. Definitions.
This section defines the terms ``High Hazard Materials'' and
``Secretary'' for the purposes of this Act.
Section 402. Rail transportation security risk assessments.
This section would require the Secretary of DHS to establish
a task force to complete a risk assessment of freight and
passenger rail transportation. The DHS Secretary would be
required to take into account actions taken or planned by both
public and private entities. Based on the findings of the task
force, within 1 year after the date of enactment of this Act,
the Secretary would be required to develop and report to
Congress prioritized recommendations for improving rail
security, including recommendations related to: tunnels,
bridges, and other rail infrastructure security; explosive,
chemical, biological, and radiological detection technologies;
surveillance equipment; railroad or railroad shipper employee
training; public outreach and security awareness; immediate and
long-term costs associated with addressing risks; and public
and private sector rail security funding efforts.
The DHS Secretary would be required to include in the
recommendations a plan for the Federal government to provide
security support at high threat levels of alert; a plan for
coordinating existing and planned rail security initiatives
undertaken by the public and private sectors; and a contingency
plan developed in conjunction with the intercity and commuter
passenger railroads to ensure the continued movement of freight
and passengers in the event of a terrorist attack. The DHS
Secretary would be required to provide Congress with annual
assessments and recommendations concerning the security of the
domestic rail system. In developing the risk assessment,
recommendations, and plans required under this section, the
Secretary shall consult with industry stakeholders and other
relevant entities and shall utilize existing risk assessments
completed by the DHS or other Federal entities, and, as
appropriate, assessments completed by other stakeholders. This
section would authorize $5 million for FY 2008 to carry out
this section.
The Committee notes its frustration with the inability of TSA
to complete a comprehensive risk assessment of the railroad
sector. The Committee believes fulfillment of this section is
an absolute priority, so that the results of the assessment may
be used to guide the ongoing rail security efforts and the new
programs called for in this bill. In completing the assessment
required by this section, the Committee does not want TSA to
unnecessarily redo existing assessment work, of sufficient
quality and relevance, already completed by the agency or other
Federal, private or public stakeholders. However, the Committee
expects any existing assessments used to be synthesized into a
comprehensive and coherent total assessment, not simply
compiled into a single document.
Section 403. System-wide Amtrak security upgrades.
This section would authorize the DHS Secretary to make
security grants to Amtrak for the general purposes of:
protecting underwater/underground assets and systems;
protecting high risk/high consequence assets identified through
system-wide risk assessments; counter-terrorism training for
front line staff; use of visible/unpredictable deterrence;
emergency preparedness drills and exercises; and public
awareness and preparedness campaigns. Specific grant
eligibilities include: securing major tunnel access points in
New York, New Jersey, Maryland, and Washington, D.C.; securing
Amtrak trains and stations; obtaining a watch list
identification system and interoperable communication system;
and hiring additional police and security officers.
The Secretary would authorize grants to Amtrak for projects
contained in a system-wide security plan approved by the
Secretary, and the DOT Secretary would disburse the grant funds
to Amtrak through DOT's existing Amtrak grant process. The
Secretary would be required to ensure that grants are
appropriately distributed to areas outside of the NEC,
consistent with the highest security needs of the Amtrak
system. This section would authorize $63.5 million for FY 2008
and $30 million for FYs 2009 and 2010 to carry out this
section.
The Committee expects the DOT Secretary to function as a
pass-through for grants awarded under this section to Amtrak,
using the quarterly grant process currently used by the DOT to
provide Federal funds to Amtrak. The Committee does not expect
the DOT to establish any additional grants requirements, and
this section does not provide the DOT any additional authority
by which to deal or withhold grants made to Amtrak.
Section 404. Fire and life-safety improvements.
This section would authorize the DOT Secretary to make grants
to Amtrak for the purpose of making fire and life-safety
improvements to Amtrak tunnels on the NEC. This section would
authorize $100 million in funding for DOT for each of FYs 2008
through 2011 to make fire and life-safety improvements to the
New York/New Jersey tunnels; $10 million for each of FYs 2008
through 2011 for improvements of the Baltimore & Potomac and
Union tunnels in Baltimore, Maryland; and $8 million for each
of FYs 2008 through 2011 for improvements of the Washington,
D.C., Union Station tunnels. The DOT Secretary would be
required to approve plans submitted by Amtrak before
distributing grants. In addition, the Secretary may consider
the feasibility of seeking a financial contribution from other
rail carriers towards the cost of the project. This section
also would authorize $3 million in FY 2008 for preliminary
design of a new railroad tunnel in Baltimore, Maryland.
Section 405. Freight and passenger rail security upgrades.
This section would authorize the DHS Secretary to make grants
to freight railroads, the Alaska Railroad, hazardous materials
shippers, owners of rail cars used to transport hazardous
materials, institutions of higher education, State and local
governments, and Amtrak, for full or partial reimbursement of
costs incurred to prevent or respond to acts of terrorism,
sabotage, or other risks. The DHS Secretary would be required
to adopt necessary procedures to ensure that grants made under
this section are expended in accordance with the purposes of
this Act. This section would authorize $100 million for DHS for
each of FYs 2008 through 2010 for the Secretary to carry out
this section. Grants to Amtrak would be limited to $45 million
and grants for hazardous material rail security would be
limited to $80 million in total over the authorization period.
The Committee believes the authorization of the program is
particularly important because very little of the existing DHS
rail security grant funds have been available to intercity
passenger rail security and no funds have been made available
for freight railroad security.
Section 406. Rail security research and development.
This section would require the DHS Secretary, in conjunction
with the DHS Undersecretary for Science and Technology and the
Assistant Secretary for TSA, and in consultation with the DOT
Secretary, to carry out a research and development program for
the purpose of improving freight and intercity passenger rail
security. In carrying out this section, the DHS Secretary would
be required to coordinate with other research and development
initiatives at the DOT. The DHS Secretary would also be allowed
to award research and development grants to certain entities
described in this section. This section would authorize $33
million for DHS for each of FYs 2008 through 2011 for the
Secretary to carry out this section.
Section 407. Oversight and grant procedures.
This section would authorize the DHS Secretary to enter into
contracts to audit and review grants awarded under this Act.
The Secretary would be required to prescribe procedures and
schedules for the awarding of grants under this Act, including
application and qualification procedures. In awarding grants,
the DHS Secretary may issue letters of intent (LOI) to
recipients of grant awarded under this bill, as the Secretary
may do now for aviation security funding through TSA. The
Committee included this LOI authority because of the multi-year
nature of some of the capital projects that may be funded
through grants under this bill. In such instances, it is
important that public and private sector partners in security
improvements receive indications from TSA that the agency
believes multi-year funding is appropriate. The Committee
acknowledges an LOI is not a commitment of future funds by an
agency.
Section 408. Amtrak plan to assist families of passengers involved in
rail accidents.
This section would require Amtrak, not later than 6 months
after the date of enactment of this Act, to submit to the
Chairman of the National Transportation Safety Board, the DOT
Secretary and the DHS Secretary, a plan for addressing the
needs of families of passengers involved in any rail passenger
accident involving an Amtrak intercity train and resulting in
loss of life. This section would authorize $500,000 for FY 2008
for the DOT Secretary to carry out this new section.
Section 409. Northern border rail passenger report.
This section would require the DHS Secretary, in consultation
with the DOT Secretary, heads of other appropriate Federal
departments and agencies, and Amtrak, within 180 days of the
date of enactment of the Act, to submit a report to Congress
that contains: a description of the current system for
screening passengers and baggage on rail service between the
U.S. and Canada; an assessment of the current program to
provide pre-clearance of airline passengers between the U.S.
and Canada; an assessment of the current program to provide
pre-clearance of freight railroad traffic between the U.S. and
Canada; information on progress by the DHS and other Federal
agencies towards finalizing a bilateral protocol with Canada
that would provide for pre-clearance of passengers on trains
operating between the U.S. and Canada; a description of
legislative, regulatory, budgetary, or policy barriers to
providing pre-screened passenger lists for such passengers; a
description of the Canadian position with respect to pre-
clearance; a draft of any changes to Federal law necessary to
allow for pre-screening; and a feasibility analysis of
reinstating in-transit inspections onboard international Amtrak
trains. The Committee expects this report and the work
undertaken to prepare it by the relevant agencies to inform the
development of pre-clearance facilities and procedures under
section 219.
Section 410. Rail worker security training program.
This section would require that, not later than one year
after the date of enactment of this Act, the DHS and DOT
Secretaries work with law enforcement officials, as well as
terrorism and rail experts, to develop and issue detailed
guidance for a railroad worker security training program to
prepare front-line workers for potential threat conditions.
This section also would require railroad carriers to adopt a
worker security training program in accordance with the
guidance and submit it to the DHS Secretary for approval.
Within one year after the Secretary reviews rail carriers'
training programs, railroad carriers would be required to
complete the training of all front-line workers consistent with
the approved program.
Section 411. Whistleblower protection program.
This section would preclude rail carriers from discharging,
or otherwise discriminating against, a railroad employee
because the employee, or the employee's representative,
provided, caused to be provided, or is about to provide, to the
employer or the Federal government information relating to a
reasonably perceived threat to security; provided, caused to be
provided, or is about to provide testimony before a Federal or
State proceeding; or refused to violate or assist in violation
of any law or regulation related to rail security.
Additionally, a new process for employees to report railroad
security problems, deficiencies, or vulnerabilities would be
required to be established under this section. The process
shall ensure the confidentiality of employees reporting under
this section and bars retaliation against employees that
provide information under this section.
Section 412. High hazard material security threat mitigation plans.
This section would direct the Secretaries of DHS and DOT to
require rail carriers transporting a high hazard material to
develop security threat mitigation plans, including alternative
routing and temporary shipments suspension options, and to
address assessed risks to high-consequence targets. These
threat mitigation plans would be implemented when the threat
levels of the Homeland Security Advisory System are high or
severe or specific intelligence of probable or imminent threat
exists toward high-consequence rail targets or infrastructure.
Within 60 days of enactment of this Act, a list of routes used
to transport high hazard materials would be required to be
submitted to the DHS Secretary. Within 180 days after receiving
the notice of high-consequence targets on such routes by the
Secretary, each rail carrier would be required to develop and
submit a high hazard material security threat mitigation plan
to the DHS Secretary. Any revisions must be submitted to the
Secretary within 30 days of the revisions being made. The DHS
Secretary, with the assistance of the DOT Secretary would be
directed to review and transmit comments on the plans to the
railroad carrier. A railroad carrier must respond to those
comments within 30 days. The plans would be required to be
updated by the railroad carrier every 2 years. This section
also defines the following terms: ``high-consequence target,''
``catastrophic impact zone,'' and ``rail carrier.''
Section 413. Enforcement authority.
This section would amend current law to clarify the DHS
Secretary's legal authority for initiating an administrative
enforcement proceeding for violations of transportation
security regulations and requirements relating to modes of
transportation other than aviation. Presently, the TSA can
enforce aviation security-related regulations and requirements
administratively, but ambiguity exists regarding such
administrative enforcement authority for non-aviation related
enforcement actions. This provision would extend the existing
aviation enforcement authority to the Secretary for non-
aviation transportation modes.
Section 414. Rail security enhancements.
This section would allow police officers employed by a
railroad to be deputized to help a second railroad in carrying
out enforcement duties on the second railroad. Additionally,
the provisions would require the DOT Secretary to write and
distribute to States model railroad police commissioning laws
to help prevent the problems posed by ``scam railroads.'' Scam
railroads are companies that are organized as railroads in
order to obtain police powers but are not actually engaged in
the railroad business.
Section 415. Public awareness.
This section would require, within 90 days of enactment of
this Act, the DHS Secretary, in consultation with the DOT
Secretary, to develop a national plan for improved public
outreach and awareness of measures that the general public,
railroad passengers, and railroad employees can take to
increase railroad system security. Not later than 9 months
after the date of enactment of this Act, the DHS Secretary
would be directed to implement this plan.
Section 416. Railroad high hazard material tracking.
This section would require, within 6 months of enactment of
this Act, the DHS Secretary to develop a program to encourage
the equipping of rail cars transporting high hazard materials
with communications technology that provides information
concerning car position, depressurization, and the release of
hazardous materials. This section would authorize $3 million in
funding for FYs 2008 through 2010 for the Secretary to carry
out this section.
Section. 417. Certain reports submitted to Senate Committee on Homeland
Security and Governmental Affairs.
This section specifies that certain reports required by under
this title shall be additionally submitted the Senate Committee
on Homeland Security and Governmental Affairs.
Section 418. Authorization of appropriations.
This section would authorize $205 million in funding for FY
2008 and $166 million for FYs 2009 to 2010 for the DHS
Secretary for this title. This section also would authorize
$121 million for FY 2008 and $118 million for FYs 2009 to 2011
for the DOT Secretary to carry out the DOT's responsibilities
under this Act.
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):
AMTRAK REFORM AND ACCOUNTABILITY ACT OF 1997
[SEC. 204. SUNSET TRIGGER.
[49 U.S.C. 24101 note]
[(a) In general.--If at any time more than 2 years after the
date of enactment of this Act and implementation of the
financial plan referred to in section 24104(d) of title 49,
United States Code, as amended by section 201 of this Act, the
Amtrak Reform Council finds that--
[(1) Amtrak's business performance will prevent it
from meeting the financial goals set forth in section
24104(d) of title 49, United States Code, as amended by
section 201 of this Act; or
[(2) Amtrak will require operating grant funds after
the fifth anniversary of the date of enactment of this
Act, then the Council shall immediately notify the
President, the Committee on Commerce, Science, and
Transportation of the United States Senate, and the
Committee on Transportation and Infrastructure of the
United States House of Representatives.
[(b) Factors considered.--In making a finding under
subsection (a), the Council shall take into account--
[(1) Amtrak's performance;
[(2) the findings of the independent assessment
conducted under section 202;
[(3) the level of Federal funds made available for
carrying out the financial plan referred to in section
24104(d) of title 49, United States Code, as amended by
section 201 of this Act; and
[(4) Acts of God, national emergencies, and other
events beyond the reasonable control of Amtrak.
[(c) Action plan.--Within 90 days after the Council makes a
finding under subsection (a)--
[(1) it shall develop and submit to the Congress an
action plan for a restructured and rationalized
national intercity rail passenger system; and
[(2) Amtrak shall develop and submit to the Congress
an action plan for the complete liquidation of Amtrak,
after having the plan reviewed by the Inspector General
of the Department of Transportation and the General
Accounting Office for accuracy and reasonableness.
[SEC. 205. SENATE PROCEDURE FOR CONSIDERATION OF RESTRUCTURING AND
LIQUIDATION PLANS.
[49 U.S.C. 24101 note]
[(a) In general.--If, within 90 days (not counting any day on
which either House is not in session) after a restructuring
plan is submitted to the House of Representatives and the
Senate by the Amtrak Reform Council under section 204 of this
Act, an implementing Act with respect to a restructuring plan
(without regard to whether it is the plan submitted) has not
been passed by the Congress, then a liquidation disapproval
resolution shall be introduced in the Senate by the Majority
Leader of the Senate, for himself and the Minority Leader of
the Senate, or by Members of the Senate designated by the
Majority Leader and Minority Leader of the Senate. The
liquidation disapproval resolution shall be held at the desk at
the request of the Presiding Officer.
[(b) Consideration in the Senate.--
[(1) Referral and reporting.--A liquidation
disapproval resolution introduced in the Senate shall
be placed directly and immediately on the Calendar.
[(2) Implementing resolution from House.--When the
Senate receives from the House of Representatives a
liquidation disapproval resolution, the resolution
shall not be referred to committee and shall be placed
on the Calendar.
[(3) Consideration of single liquidation disapproval
resolution.--After the Senate has proceeded to the
consideration of a liquidation disapproval resolution
under this subsection, then no other liquidation
disapproval resolution originating in that same House
shall be subject to the procedures set forth in this
section.
[(4) Amendments.--No amendment to the resolution is
in order except an amendment that is relevant to
liquidation of Amtrak. Consideration of the resolution
for amendment shall not exceed one hour excluding time
for recorded votes and quorum calls. No amendment shall
be subject to further amendment, except for perfecting
amendments.
[(5) Motion nondebatable.--A motion to proceed to
consideration of a liquidation disapproval resolution
under this subsection shall not be debatable. It shall
not be in order to move to reconsider the vote by which
the motion to proceed was adopted or rejected, although
subsequent motions to proceed may be made under this
paragraph.
[(6) Limit on consideration.--
[(A) After no more than 20 hours of
consideration of a liquidation disapproval
resolution, the Senate shall proceed, without
intervening action or debate (except as
permitted under paragraph (9)), to vote on the
final disposition thereof to the exclusion of
all amendments not then pending and to the
exclusion of all motions, except a motion to
reconsider or table.
[(B) The time for debate on the liquidation
disapproval resolution shall be equally divided
between the Majority Leader and the Minority
Leader or their designees.
[(7) Debate of amendments.--Debate on any amendment
to a liquidation disapproval resolution shall be
limited to one hour, equally divided and controlled by
the Senator proposing the amendment and the majority
manager, unless the majority manager is in favor of the
amendment, in which case the minority manager shall be
in control of the time in opposition.
[(8) No motion to recommit.--A motion to recommit a
liquidation disapproval resolution shall not be in
order.
[(9) Disposition of Senate resolution.--If the Senate
has read for the third time a liquidation disapproval
resolution that originated in the Senate, then it shall
be in order at any time thereafter to move to proceed
to the consideration of a liquidation disapproval
resolution for the same special message received from
the House of Representatives and placed on the Calendar
pursuant to paragraph (2), strike all after the
enacting clause, substitute the text of the Senate
liquidation disapproval resolution, agree to the Senate
amendment, and vote on final disposition of the House
liquidation disapproval resolution, all without any
intervening action or debate.
[(10) Consideration of House message.--Consideration
in the Senate of all motions, amendments, or appeals
necessary to dispose of a message from the House of
Representatives on a liquidation disapproval resolution
shall be limited to not more than 4 hours. Debate on
each motion or amendment shall be limited to 30
minutes. Debate on any appeal or point of order that is
submitted in connection with the disposition of the
House message shall be limited to 20 minutes. Any time
for debate shall be equally divided and controlled by
the proponent and the majority manager, unless the
majority manager is a proponent of the motion,
amendment, appeal, or point of order, in which case the
minority manager shall be in control of the time in
opposition.
[(c) Consideration in conference.--
[(1) Convening of conference.--In the case of
disagreement between the two Houses of Congress with
respect to a liquidation disapproval resolution passed
by both Houses, conferees should be promptly appointed
and a conference promptly convened, if necessary.
[(2) Senate consideration.--Consideration in the
Senate of the conference report and any amendments in
disagreement on a liquidation disapproval resolution
shall be limited to not more than 4 hours equally
divided and controlled by the Majority Leader and the
Minority Leader or their designees. A motion to
recommit the conference report is not in order.
[(d) Definitions.--For purposes of this section--
[(1) Liquidation disapproval resolution.--The term
``liquidation disapproval resolution'' means only a
resolution of either House of Congress which is
introduced as provided in subsection (a) with respect
to the liquidation of Amtrak.
[(2) Restructuring plan.--The term ``restructuring
plan'' means a plan to provide for a restructured and
rationalized national intercity rail passenger
transportation system.
[(e) Rules of Senate.--This section is enacted by the
Congress--
[(1) as an exercise of the rulemaking power of the
Senate, and as such they are deemed a part of the rules
of the Senate, but applicable only with respect to the
procedure to be followed in the Senate in the case of a
liquidation disapproval resolution; and they supersede
other rules only to the extent that they are
inconsistent therewith; and
[(2) with full recognition of the constitutional
right of the Senate to change the rules (so far as
relating to the procedure of the Senate) at any time,
in the same manner and to the same extent as in the
case of any other rule of the Senate.]
TITLE 49, UNITED STATES CODE
Subtitle I. Department of Transportation
CHAPTER 1. ORGANIZATION
Sec. 103. Federal Railroad Administration
(a) In General._The Federal Railroad Administration is an
administration in the Department of Transportation. [To carry
out all railroad safety laws of the United States, the
Administration is divided on a geographical basis into at least
8 safety offices. The Secretary of Transportation is
responsible for all acts taken under those laws and for
ensuring that the laws are uniformly administered and enforced
among the safety offices.]
(b) Administrator._The head of the Administration is the
Administrator who is appointed by the President, by and with
the advice and consent of the Senate. The Administrator reports
directly to the Secretary.
(c) Safety.--To carry out all railroad safety laws of the
United States, the Administration is divided on a geographical
basis into at least 8 safety offices. The Secretary of
Transportation is responsible for all acts taken under those
laws and for ensuring that the laws are uniformly administered
and enforced among the safety offices.
[(c)] (d) Powers and Duties._The Administrator shall carry
out--
(1) duties and powers related to railroad safety
vested in the Secretary by section 20134(c) and
chapters 203-211 of this title, and chapter 213 of this
title in carrying out chapters 203-211; [and]
(2) the duties and powers related to railroad policy
and development under subsection (e); and
[(2)] (3) additional duties and powers prescribed by
the Secretary.
[(d)] (e) Transfers of Duty._A duty or power specified by
subsection (c)(1) of this section may be transferred to another
part of the Department only when specifically provided by law
or a reorganization plan submitted under chapter 9 of title 5.
A decision of the Administrator in carrying out those duties or
powers and involving notice and hearing required by law is
administratively final.
[(e)] (f) Contracts, grants, leases, cooperative agreements,
and similar transactions._Subject to the provisions of subtitle
I of title 40 and title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.),
the Secretary of Transportation may make, enter into, and
perform such contracts, grants, leases, cooperative agreements,
and other similar transactions with Federal or other public
agencies (including State and local governments) and private
organizations and persons, and make such payments, by way of
advance or reimbursement, as the Secretary may determine to be
necessary or appropriate to carry out functions of the Federal
Railroad Administration. [The authority of the Secretary
granted by this subsection shall be carried out by the
Administrator. Notwithstanding any other provision of this
chapter, no authority to enter into contracts or to make
payments under this subsection shall be effective, except as
provided for in appropriations Acts.]
(g) Additional Duties of the Administrator.--The
Administrator shall--
(1) provide assistance to States in developing State
rail plans prepared under chapter 225 and review all
State rail plans submitted under that section;
(2) develop a long range national rail plan that is
consistent with approved State rail plans and the rail
needs of the Nation, as determined by the Secretary in
order to promote an integrated, cohesive, efficient,
and optimized national rail system for the movement of
goods and people;
(3) develop a preliminary national rail plan within a
year after the date of enactment of the Passenger Rail
Investment and Improvement Act of 2005;
(4) develop and enhance partnerships with the freight
and passenger railroad industry, States, and the public
concerning rail development;
(5) support rail intermodal development and high-
speed rail development, including high speed rail
planning;
(6) ensure that programs and initiatives developed
under this section benefit the public and work toward
achieving regional and national transportation goals;
and
(7) facilitate and coordinate efforts to assist
freight and passenger rail carriers, transit agencies
and authorities, municipalities, and States in
passenger-freight service integration on shared rights
of way by providing neutral assistance at the joint
request of affected rail service providers and
infrastructure owners relating to operations and
capacity analysis, capital requirements, operating
costs, and other research and planning related to
corridors shared by passenger or commuter rail service
and freight rail operations.
(h) Performance Goals and Reports.--
(1) Performance goals.--In conjunction with the
objectives established and activities undertaken under
section 103(e) of this title, the Administrator shall
develop a schedule for achieving specific, measurable
performance goals.
(2) Resource needs.--The strategy and annual plans
shall include estimates of the funds and staff
resources needed to accomplish each goal and the
additional duties required under section 103(e).
(3) Submission with president's budget.--Beginning
with fiscal year 2009 and each fiscal year thereafter,
the Secretary shall submit to Congress, at the same
time as the President's budget submission, the
Administration's performance goals and schedule
developed under paragraph (1), including an assessment
of the progress of the Administration toward achieving
its performance goals.
* * * * * * *
Sec. 114. Transportation Security Administration
(a) In General.--The Transportation Security Administration
shall be an administration of the Department of Transportation.
(b) Under Secretary.--
(1) Appointment.--The head of the Administration
shall be the Under Secretary of Transportation for
Security. The Under Secretary shall be appointed by the
President, by and with the advice and consent of the
Senate.
(2) Qualifications.--The Under Secretary must--
(A) be a citizen of the United States; and
(B) have experience in a field directly
related to transportation or security.
(3) Term.--The term of office of an individual
appointed as the Under Secretary shall be 5 years.
(c) Limitation on Ownership of Stocks and Bonds.--The Under
Secretary may not own stock in or bonds of a transportation or
security enterprise or an enterprise that makes equipment that
could be used for security purposes.
(d) Functions.--The Under Secretary shall be responsible for
security in all modes of transportation, including--
(1) carrying out chapter 449, relating to civil
aviation security, and related research and development
activities; and
(2) security responsibilities over other modes of
transportation that are exercised by the Department of
Transportation.
(e) Screening Operations.--The Under Secretary shall--
(1) be responsible for day-to-day Federal security
screening operations for passenger air transportation
and intrastate air transportation under sections 44901
and 44935;
(2) develop standards for the hiring and retention of
security screening personnel;
(3) train and test security screening personnel; and
(4) be responsible for hiring and training personnel
to provide security screening at all airports in the
United States where screening is required under section
44901, in consultation with the Secretary of
Transportation and the heads of other appropriate
Federal agencies and departments.
(f) Additional Duties and Powers.--In addition to carrying
out the functions specified in subsections (d) and (e), the
Under Secretary shall--
(1) receive, assess, and distribute intelligence
information related to transportation security;
(2) assess threats to transportation;
(3) develop policies, strategies, and plans for
dealing with threats to transportation security;
(4) make other plans related to transportation
security, including coordinating countermeasures with
appropriate departments, agencies, and
instrumentalities of the United States Government;
(5) serve as the primary liaison for transportation
security to the intelligence and law enforcement
communities;
(6) on a day-to-day basis, manage and provide
operational guidance to the field security resources of
the Administration, including Federal Security Managers
as provided by section 44933;
(7) enforce security-related regulations and
requirements;
(8) identify and undertake research and development
activities necessary to enhance transportation
security;
(9) inspect, maintain, and test security facilities,
equipment, and systems;
(10) ensure the adequacy of security measures for the
transportation of cargo;
(11) oversee the implementation, and ensure the
adequacy, of security measures at airports and other
transportation facilities;
(12) require background checks for airport security
screening personnel, individuals with access to secure
areas of airports, and other transportation security
personnel;
(13) work in conjunction with the Administrator of
the Federal Aviation Administration with respect to any
actions or activities that may affect aviation safety
or air carrier operations;
(14) work with the International Civil Aviation
Organization and appropriate aeronautic authorities of
foreign governments under section 44907 to address
security concerns on passenger flights by foreign air
carriers in foreign air transportation; and
(15) carry out such other duties, and exercise such
other powers, relating to transportation security as
the Under Secretary considers appropriate, to the
extent authorized by law.
(g) National Emergency Responsibilities.--
(1) In general.--Subject to the direction and control
of the Secretary, the Under Secretary, during a
national emergency, shall have the following
responsibilities:
(A) To coordinate domestic transportation,
including aviation, rail, and other surface
transportation, and maritime transportation
(including port security).
(B) To coordinate and oversee the
transportation-related responsibilities of
other departments and agencies of the Federal
Government other than the Department of Defense
and the military departments.
(C) To coordinate and provide notice to other
departments and agencies of the Federal
Government, and appropriate agencies of State
and local governments, including departments
and agencies for transportation, law
enforcement, and border control, about threats
to transportation.
(D) To carry out such other duties, and
exercise such other powers, relating to
transportation during a national emergency as
the Secretary shall prescribe.
(2) Authority of other departments and agencies.--The
authority of the Under Secretary under this subsection
shall not supersede the authority of any other
department or agency of the Federal Government under
law with respect to transportation or transportation-
related matters, whether or not during a national
emergency.
(3) Circumstances.--The Secretary shall prescribe the
circumstances constituting a national emergency for
purposes of this subsection.
(h) Management of Security Information.--In consultation with
the Transportation Security Oversight Board, the Under
Secretary shall--
(1) enter into memoranda of understanding with
Federal agencies or other entities to share or
otherwise cross-check as necessary data on individuals
identified on Federal agency databases who may pose a
risk to transportation or national security;
(2) establish procedures for notifying the
Administrator of the Federal Aviation Administration,
appropriate State and local law enforcement officials,
and airport or airline security officers of the
identity of individuals known to pose, or suspected of
posing, a risk of air piracy or terrorism or a threat
to airline or passenger safety;
(3) in consultation with other appropriate Federal
agencies and air carriers, establish policies and
procedures requiring air carriers--
(A) to use information from government
agencies to identify individuals on passenger
lists who may be a threat to civil aviation or
national security; and
(B) if such an individual is identified,
notify appropriate law enforcement agencies,
prevent the individual from boarding an
aircraft, or take other appropriate action with
respect to that individual; and
(4) consider requiring passenger air carriers to
share passenger lists with appropriate Federal agencies
for the purpose of identifying individuals who may pose
a threat to aviation safety or national security.
(i) View of NTSB.--In taking any action under this section
that could affect safety, the Under Secretary shall give great
weight to the timely views of the National Transportation
Safety Board.
(j) Acquisitions.--
(1) In general.--The Under Secretary is authorized--
(A) to acquire (by purchase, lease,
condemnation, or otherwise) such real property,
or any interest therein, within and outside the
continental United States, as the Under
Secretary considers necessary;
(B) to acquire (by purchase, lease,
condemnation, or otherwise) and to construct,
repair, operate, and maintain such personal
property (including office space and patents),
or any interest therein, within and outside the
continental United States, as the Under
Secretary considers necessary;
(C) to lease to others such real and personal
property and to provide by contract or
otherwise for necessary facilities for the
welfare of its employees and to acquire,
maintain, and operate equipment for these
facilities;
(D) to acquire services, including such
personal services as the Secretary determines
necessary, and to acquire (by purchase, lease,
condemnation, or otherwise) and to construct,
repair, operate, and maintain research and
testing sites and facilities; and
(E) in cooperation with the Administrator of
the Federal Aviation Administration, to utilize
the research and development facilities of the
Federal Aviation Administration.
(2) Title.--Title to any property or interest therein
acquired pursuant to this subsection shall be held by
the Government of the United States.
(k) Transfers of Funds.--The Under Secretary is authorized to
accept transfers of unobligated balances and unexpended
balances of funds appropriated to other Federal agencies (as
such term is defined in section 551(1) of title 5) to carry out
functions transferred, on or after the date of enactment of the
Aviation and Transportation Security Act, by law to the Under
Secretary.
(l) Regulations.--
(1) In general.--The Under Secretary is authorized to
issue, rescind, and revise such regulations as are
necessary to carry out the functions of the
Administration.
(2) Emergency procedures.--
(A) In general.--Notwithstanding any other
provision of law or executive order (including
an executive order requiring a cost-benefit
analysis), if the Under Secretary determines
that a regulation or security directive must be
issued immediately in order to protect
transportation security, the Under Secretary
shall issue the regulation or security
directive without providing notice or an
opportunity for comment and without prior
approval of the Secretary.
(B) Review by Transportation Security
Oversight Board.--Any regulation or security
directive issued under this paragraph shall be
subject to review by the Transportation
Security Oversight Board established under
section 115. Any regulation or security
directive issued under this paragraph shall
remain effective for a period not to exceed 90
days unless ratified or disapproved by the
Board or rescinded by the Under Secretary.
(3) Factors to consider.--In determining whether to
issue, rescind, or revise a regulation under this
section, the Under Secretary shall consider, as a
factor in the final determination, whether the costs of
the regulation are excessive in relation to the
enhancement of security the regulation will provide.
The Under Secretary may waive requirements for an
analysis that estimates the number of lives that will
be saved by the regulation and the monetary value of
such lives if the Under Secretary determines that it is
not feasible to make such an estimate.
(4) Airworthiness objections by FAA.--
(A) In general.--The Under Secretary shall
not take an aviation security action under this
title if the Administrator of the Federal
Aviation Administration notifies the Under
Secretary that the action could adversely
affect the airworthiness of an aircraft.
(B) Review by Secretary.--Notwithstanding
subparagraph (A), the Under Secretary may take
such an action, after receiving a notification
concerning the action from the Administrator
under subparagraph (A), if the Secretary of
Transportation subsequently approves the
action.
(m) Personnel and services; cooperation by Under Secretary.--
(1) Authority of under secretary.--In carrying out
the functions of the Administration, the Under
Secretary shall have the same authority as is provided
to the Administrator of the Federal Aviation
Administration under subsections (l) and (m) of section
106.
(2) Authority of agency heads.--The head of a Federal
agency shall have the same authority to provide
services, supplies, equipment, personnel, and
facilities to the Under Secretary as the head has to
provide services, supplies, equipment, personnel, and
facilities to the Administrator of the Federal Aviation
Administration under section 106(m).
(n) Personnel Management System.--The personnel management
system established by the Administrator of the Federal Aviation
Administration under section 40122 shall apply to employees of
the Transportation Security Administration, or, subject to the
requirements of such section, the Under Secretary may make such
modifications to the personnel management system with respect
to such employees as the Under Secretary considers appropriate,
such as adopting aspects of other personnel systems of the
Department of Transportation.
(o) Acquisition Management System.--The acquisition
management system established by the Administrator of the
Federal Aviation Administration under section 40110 shall apply
to acquisitions of equipment, supplies, and materials by the
Transportation Security Administration, or, subject to the
requirements of such section, the Under Secretary may make such
modifications to the acquisition management system with respect
to such acquisitions of equipment, supplies, and materials as
the Under Secretary considers appropriate, such as adopting
aspects of other acquisition management systems of the
Department of Transportation.
(p) Authority of Inspector General.--The Transportation
Security Administration shall be subject to the Inspector
General Act of 1978 (5 U.S.C. App.) and other laws relating to
the authority of the Inspector General of the Department of
Transportation.
(q) Law Enforcement Powers.--
(1) In general.--The Under Secretary may designate an
employee of the Transportation Security Administration
or other Federal agency to serve as a law enforcement
officer.
(2) Powers.--While engaged in official duties of the
Administration as required to fulfill the
responsibilities under this section, a law enforcement
officer designated under paragraph (1) may--
(A) carry a firearm;
(B) make an arrest without a warrant for any
offense against the United States committed in
the presence of the officer, or for any felony
cognizable under the laws of the United States
if the officer has probable cause to believe
that the person to be arrested has committed or
is committing the felony; and
(C) seek and execute warrants for arrest or
seizure of evidence issued under the authority
of the United States upon probable cause that a
violation has been committed.
(3) Guidelines on exercise of authority.--The
authority provided by this subsection shall be
exercised in accordance with guidelines prescribed by
the Under Secretary, in consultation with the Attorney
General of the United States, and shall include
adherence to the Attorney General's policy on use of
deadly force.
(4) Revocation or suspension of authority.--The
powers authorized by this subsection may be rescinded
or suspended should the Attorney General determine that
the Under Secretary has not complied with the
guidelines prescribed in paragraph (3) and conveys the
determination in writing to the Secretary of
Transportation and the Under Secretary.
(r) Authority to Exempt.--The Under Secretary may grant an
exemption from a regulation prescribed in carrying out this
section if the Under Secretary determines that the exemption is
in the public interest.
(s) Nondisclosure of Security Activities.--
(1) In general.--Notwithstanding section 552 of title
5, the Under Secretary shall prescribe regulations
prohibiting the disclosure of information obtained or
developed in carrying out security under authority of
the Aviation and Transportation Security Act (Public
Law 107-71) or under chapter 449 of this title if the
Under Secretary decides that disclosing the information
would--
(A) be an unwarranted invasion of personal
privacy;
(B) reveal a trade secret or privileged or
confidential commercial or financial
information; or
(C) be detrimental to the security of
transportation.
(2) Availability of information to Congress.--Paragraph (1)
does not authorize information to be withheld from a committee
of Congress authorized to have the information.
(3) Limitation on transferability of duties.--Except as
otherwise provided by law, the Under Secretary may not transfer
a duty or power under this subsection to another department,
agency, or instrumentality of the United States.
(t) Transportation Security Strategic Planning.--
(1) In general.--The Secretary of Homeland Security
shall develop, prepare, implement, and update, as
needed--
(A) a National Strategy for Transportation
Security; and
(B) transportation modal security plans.
(2) Role of Secretary of Transportation.--The
Secretary of Homeland Security shall work jointly with
the Secretary of Transportation in developing,
revising, and updating the documents required by
paragraph (1).
(3) Contents of National Strategy for Transportation
Security.--The National Strategy for Transportation
Security shall include the following:
(A) An identification and evaluation of the
transportation assets in the United States
that, in the interests of national security and
commerce, must be protected from attack or
disruption by terrorist or other hostile
forces, including modal security plans for
aviation, bridge and tunnel, commuter rail and
ferry, highway, maritime, pipeline, rail, mass
transit, over-the-road bus, and other public
transportation infrastructure assets that could
be at risk of such an attack or disruption.
(B) The development of risk-based priorities
across all transportation modes and realistic
deadlines for addressing security needs
associated with those assets referred to in
subparagraph (A).
(C) The most appropriate, practical, and
cost-effective means of defending those assets
against threats to their security.
(D) A forward-looking strategic plan that
sets forth the agreed upon roles and missions
of Federal, State, regional, and local
authorities and establishes mechanisms for
encouraging private sector cooperation and
participation in the implementation of such
plan.
(E) A comprehensive delineation of response
and recovery responsibilities and issues
regarding threatened and executed acts of
terrorism within the United States.
(F) A prioritization of research and
development objectives that support
transportation security needs, giving a higher
priority to research and development directed
toward protecting vital transportation assets.
(4) Submissions of plans to Congress.--
(A) Initial strategy.--The Secretary of
Homeland Security shall submit the National
Strategy for Transportation Security, including
the transportation modal security plans,
developed under this subsection to the
appropriate congressional committees not later
than April 1, 2005.
(B) Subsequent versions.--After December 31,
2005, the Secretary of Homeland Security shall
submit the National Strategy for Transportation
Security, including the transportation modal
security plans and any revisions to the
National Strategy for Transportation Security
and the transportation modal security plans, to
appropriate congressional committees not less
frequently than April 1 of each even-numbered
year.
(C) Periodic progress report.--
(i) Requirement for report.--Each
year, in conjunction with the
submission of the budget to Congress
under section 1105(a) of title 31,
United States Code, the Secretary of
Homeland Security shall submit to the
appropriate congressional committees an
assessment of the progress made on
implementing the National Strategy for
Transportation Security.
(ii) Content.--Each progress report
under this subparagraph shall include,
at a minimum, recommendations for
improving and implementing the National
Strategy for Transportation Security
and the transportation modal security
plans that the Secretary, in
consultation with the Secretary of
Transportation, considers appropriate.
(D) Classified material.--Any part of the
National Strategy for Transportation Security
or the transportation modal security plans that
involve information that is properly classified
under criteria established by Executive order
shall be submitted to the appropriate
congressional committees separately in a
classified format.
(E) Appropriate congressional committees
defined.--In this subsection, the term
``appropriate congressional committees'' means
the Committee on Transportation and
Infrastructure and the Select Committee on
Homeland Security of the House of
Representatives and the Committee on Commerce,
Science, and Transportation and the Committee
on Homeland Security and Governmental Affairs
of the Senate.
(5) Priority status.--
(A) In general.--The National Strategy for
Transportation Security shall be the governing
document for Federal transportation security
efforts.
(B) Other plans and reports.--The National
Strategy for Transportation Security shall
include, as an integral part or as an
appendix--
(i) the current National Maritime
Transportation Security Plan under
section 70103 of title 46;
(ii) the report required by section
44938 of this title;
(iii) transportation modal security
plans required under this section; and
(iv) any other transportation
security plan or report that the
Secretary of Homeland Security
determines appropriate for inclusion.
(u) Enforcement of Regulations and Orders of the Secretary of
Homeland Security Issued Under this Title.--
(1) Application of subsection.--
(A) In general.--This subsection applies to
the enforcement of regulations prescribed, and
orders issued, by the Secretary of Homeland
Security under a provision of this title other
than a provision of chapter 449.
(B) Violations of chapter 449.--The penalties
for violations of regulations prescribed, and
orders issued, by the Secretary of Homeland
Security under chapter 449 of this title are
provided under chapter 463 of this title.
(C) Nonapplication to certain violations.--
(i) Paragraphs (2) through (5) of
this subsection do not apply to
violations of regulations prescribed,
and orders issued, by the Secretary of
Homeland Security under a provision of
this title--
(I) involving the
transportation of personnel or
shipments of materials by
contractors where the
Department of Defense has
assumed control and
responsibility;
(II) by a member of the armed
forces of the United States
when performing official
duties; or
(III) by a civilian employee
of the Department of Defense
when performing official
duties.
(ii) Violations described in
subclause (I), (II), or (III) of clause
(i) shall be subject to penalties as
determined by the Secretary of Defense
or the Secretary's designee.
(2) Civil penalty.--
(A) In general.--A person is liable to the
United States Government for a civil penalty of
not more than $10,000 for a violation of a
regulation prescribed, or order issued, by the
Secretary of Homeland Security under this
title.
(B) Repeat violations.--A separate violation
occurs under this paragraph for each day the
violation continues.
(3) Administrative imposition of civil penalties.--
(A) In general.--The Secretary of Homeland
Security may impose a civil penalty for a
violation of a regulation prescribed, or order
issued, under this title. The Secretary shall
give written notice of the finding of a
violation and the penalty.
(B) Scope of civil action.--In a civil action
to collect a civil penalty imposed by the
Secretary under this subsection, the court may
not re-examine issues of liability or the
amount of the penalty.
(C) Jurisdiction.--The district courts of the
United States have exclusive jurisdiction of
civil actions to collect a civil penalty
imposed by the Secretary under this subsection
if--
(i) the amount in controversy is more
than--
(I) $400,000, if the
violation was committed by a
person other than an individual
or small business concern; or
(II) $50,000, if the
violation was committed by an
individual or small business
concern;
(ii) the action is in rem or another
action in rem based on the same
violation has been brought; or
(iii) another action has been brought
for an injunction based on the same
violation.
(D) Maximum penalty.--The maximum penalty the
Secretary may impose under this paragraph is--
(i) $400,000, if the violation was
committed by a person other than an
individual or small business concern;
or
(ii) $50,000, if the violation was
committed by an individual or small
business concern.
(4) Compromise and setoff.--
(A) The Secretary may compromise the amount
of a civil penalty imposed under this
subsection. If the Secretary compromises the
amount of a civil penalty under this
subparagraph, the Secretary shall--
(i) notify the Senate Committee on
Commerce, Science, and Transportation
and the House of Representatives
Committee on Homeland Security of the
compromised penalty and explain the
rationale therefor; and
(ii) make the explanation available
to the public to the extent feasible
without compromising security.
(B) The Government may deduct the amount of a
civil penalty imposed or compromised under this
subsection from amounts it owes the person
liable for the penalty.
(5) Investigations and proceedings.--Chapter 461 of
this title shall apply to investigations and
proceedings brought under this subsection to the same
extent that it applies to investigations and
proceedings brought with respect to aviation security
duties designated to be carried out by the Secretary.
(6) Definitions.--In this subsection:
(A) Person.--The term `person' does not
include--
(i) the United States Postal Service;
or
(ii) the Department of Defense.
(B) Small business concern.--The term `small
business concern' has the meaning given that
term in section 3 of the Small Business Act (15
U.S.C. 632).
(v) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary of Homeland Security for rail
security--
(1) $205,000,000 for fiscal year 2008;
(2) $166,000,000 for fiscal year 2009; and
(3) $166,000,000 for fiscal year 2010.
Subtitle V. Rail Programs
Part A--Safety
CHAPTER 201. GENERAL
Sec. 20103. General authority
(a) Regulations and Orders.--The Secretary of Transportation,
as necessary, shall prescribe regulations and issue orders for
every area of railroad [safety] safety, including security,
supplementing laws and regulations in effect on October 16,
1970. When prescribing a security regulation or issuing a
security order that affects the safety of railroad operations,
the Secretary of Homeland Security shall consult with the
Secretary.
(b) Regulations of Practice for Proceedings.--The Secretary
shall prescribe regulations of practice applicable to each
proceeding under this chapter. The regulations shall reflect
the varying nature of the proceedings and include time limits
for disposition of the proceedings. The time limit for
disposition of a proceeding may not be more than 12 months
after the date it begins.
(c) Consideration of Information and Standards.--In
prescribing regulations and issuing orders under this section,
the Secretary shall consider existing relevant safety
information and standards.
(d) Waivers.--The Secretary may waive compliance with any
part of a regulation prescribed or order issued under this
chapter if the waiver is in the public interest and consistent
with railroad safety. The Secretary shall make public the
reasons for granting the waiver.
(e) Hearings.--The Secretary shall conduct a hearing as
provided by section 553 of title 5 when prescribing a
regulation or issuing an order under this chapter, including a
regulation or order establishing, amending, or waiving
compliance with a railroad safety regulation prescribed or
order issued under this chapter. An opportunity for an oral
presentation shall be provided.
(f) Tourist Railroad Carriers.--In prescribing regulations
that pertain to railroad safety that affect tourist, historic,
scenic, or excursion railroad carriers, the Secretary of
Transportation shall take into consideration any financial,
operational, or other factors that may be unique to such
railroad carriers. The Secretary shall submit a report to
Congress not later than September 30, 1995, on actions taken
under this subsection.
* * * * * * *
Sec. 20118. Whistleblower protection for rail security matters
(a) Discrimination Against Employee.--A railroad carrier
engaged in interstate or foreign commerce may not discharge or
in any way discriminate against an employee because the
employee, whether acting for the employee or as a
representative, has--
(1) provided, caused to be provided, or is about to
provide or cause to be provided, to the employer or the
Federal Government information relating to a reasonably
perceived threat, in good faith, to security;
(2) provided, caused to be provided, or is about to
provide or cause to be provided, testimony before
Congress or at any Federal or State proceeding
regarding a reasonably perceived threat, in good faith,
to security; or
(3) refused to violate or assist in the violation of
any law, rule or regulation related to rail security.
(b) Dispute Resolution.--A dispute, grievance, or claim
arising under this section is subject to resolution under
section 3 of the Railway Labor Act (45 U.S.C. 153). In a
proceeding by the National Railroad Adjustment Board, a
division or delegate of the Board, or another board of
adjustment established under section 3 to resolve the dispute,
grievance, or claim the proceeding shall be expedited and the
dispute, grievance, or claim shall be resolved not later than
180 days after it is filed. If the violation is a form of
discrimination that does not involve discharge, suspension, or
another action affecting pay, and no other remedy is available
under this subsection, the Board, division, delegate, or other
board of adjustment may award the employee reasonable damages,
including punitive damages, of not more than $20,000.
(c) Procedural Requirements.--Except as provided in
subsection (b), the procedure set forth in section
42121(b)(2)(B) of this subtitle, including the burdens of
proof, applies to any complaint brought under this section.
(d) Election of Remedies.--An employee of a railroad carrier
may not seek protection under both this section and another
provision of law for the same allegedly unlawful act of the
carrier.
(e) Disclosure of Identity.--
(1) Except as provided in paragraph (2) of this
subsection, or with the written consent of the
employee, the Secretary of Transportation or Secretary
of Homeland Security may not disclose the name of an
employee of a railroad carrier who has provided
information about an alleged violation of this section.
(2) The Secretary shall disclose to the Attorney
General the name of an employee described in paragraph
(1) of this subsection if the matter is referred to the
Attorney General for enforcement.
(f) Process for Reporting Problems.--
(1) Establishment of reporting process.--The
Secretary shall establish, and provide information to
the public regarding, a process by which any person may
submit a report to the Secretary regarding railroad
security problems, deficiencies, or vulnerabilities.
(2) Confidentiality.--The Secretary shall keep
confidential the identity of a person who submits a
report under paragraph (1) and any such report shall be
treated as a record containing protected information to
the extent that it does not consist of publicly
available information.
(3) Acknowledgment of receipt.--If a report submitted
under paragraph (1) identifies the person making the
report, the Secretary shall respond promptly to such
person and acknowledge receipt of the report.
(4) Steps to address problems.--The Secretary shall
review and consider the information provided in any
report submitted under paragraph (1) and shall take
appropriate steps under this title to address any
problems or deficiencies identified.
(5) Retaliation prohibited.--No employer may
discharge any employee or otherwise discriminate
against any employee with respect to the compensation
to, or terms, conditions, or privileges of the
employment of, such employee because the employee (or a
person acting pursuant to a request of the employee)
made a report under paragraph (1).
Part B--Assistance
CHAPTER 225. STATE RAIL PLANS AND HIGH PRIORITY PROJECTS
Sec.
22501. Definitions.
22502. Authority.
22503. Purposes.
22504. Transparency; coordination; review.
22505. Content.
22506. Review.
Sec. 22501. Definitions
In this subchapter:
(1) Private benefit.--
(A) In general.--The term ``private
benefit''--
(i) means a benefit accrued to a
person or private entity, other than
the National Railroad Passenger
Corporation, that directly improves the
economic and competitive condition of
that person or entity through improved
assets, cost reductions, service
improvements, or any other means as
defined by the Secretary; and
(ii) shall be determined on a
project-by-project basis, based upon an
agreement between the parties.
(B) Consultation.--The Secretary may seek the
advice of the States and rail carriers in
further defining this term.
(2) Public benefit.--
(A) In general.--The term ``public
benefit''--
(i) means a benefit accrued to the
public in the form of enhanced mobility
of people or goods, environmental
protection or enhancement, congestion
mitigation, enhanced trade and economic
development, improved air quality or
land use, more efficient energy use,
enhanced public safety or security,
reduction of public expenditures due to
improved transportation efficiency or
infrastructure preservation, and any
other positive community effects as
defined by the Secretary; and
(ii) shall be determined on a
project-by-project basis, based upon an
agreement between the parties.
(B) Consultation.--The Secretary may seek the
advice of the States and rail carriers in
further defining this term.
(3) State.--The term ``State'' means any of the 50
States and the District of Columbia.
(4) State rail transportation authority.--The term
``State rail transportation authority'' means the State
agency or official responsible under the direction of
the Governor of the State or a State law for
preparation, maintenance, coordination, and
administration of the State rail plan.
Sec. 22502. Authority
(a) In General.--Each State may prepare and maintain a State
rail plan in accordance with the provisions of this subchapter.
(b) Requirements.--For the preparation and periodic revision
of a State rail plan, a State shall--
(1) establish or designate a State rail
transportation authority to prepare, maintain,
coordinate, and administer the plan;
(2) establish or designate a State rail plan approval
authority to approve the plan;
(3) submit the State's approved plan to the Secretary
of Transportation for review; and
(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for reapproval by
the Secretary.
Sec. 22503. Purposes
(a) Purposes.--The purposes of a State rail plan are as
follows:
(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
(2) To establish the period covered by the State rail
plan.
(3) To present priorities and strategies to enhance
rail service in the State that benefits the public.
(4) To serve as the basis for Federal and State rail
investments within the State.
(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs and
set forth rail transportation's role within the State
transportation system.
Sec. 22504. Transparency; coordination; review
(a) Preparation.--A State shall provide adequate and
reasonable notice and opportunity for comment and other input
to the public, rail carriers, commuter and transit authorities
operating in, or affected by rail operations within the State,
units of local government, and other interested parties in the
preparation and review of its State rail plan.
(b) Intergovernmental Coordination.--A State shall review the
freight and passenger rail service activities and initiatives
by regional planning agencies, regional transportation
authorities, and municipalities within the State, or in the
region in which the State is located, while preparing the plan,
and shall include any recommendations made by such agencies,
authorities, and municipalities as deemed appropriate by the
State.
Sec. 22505. Content
(a) In General.--Each State rail plan shall contain the
following:
(1) An inventory of the existing overall rail
transportation system and rail services and facilities
within the State and an analysis of the role of rail
transportation within the State's surface
transportation system.
(2) A review of all rail lines within the State,
including proposed high speed rail corridors and
significant rail line segments not currently in
service.
(3) A statement of the State's passenger rail service
objectives, including minimum service levels, for rail
transportation routes in the State.
(4) A general analysis of rail's transportation,
economic, and environmental impacts in the State,
including congestion mitigation, trade and economic
development, air quality, land-use, energy-use, and
community impacts.
(5) A long-range rail investment program for current
and future freight and passenger infrastructure in the
State that meets the requirements of subsection (b).
(6) A statement of public financing issues for rail
projects and service in the State, including a list of
current and prospective public capital and operating
funding resources, public subsidies, State taxation,
and other financial policies relating to rail
infrastructure development.
(7) An identification of rail infrastructure issues
within the State that reflects consultation with all
relevant stake holders.
(8) A review of major passenger and freight
intermodal rail connections and facilities within the
State, including seaports, and prioritized options to
maximize service integration and efficiency between
rail and other modes of transportation within the
State.
(9) A review of publicly funded projects within the
State to improve rail transportation safety and
security, including all major projects funded under
section 130 of title 23.
(10) A performance evaluation of passenger rail
services operating in the State, including possible
improvements in those services, and a description of
strategies to achieve those improvements.
(11) A compilation of studies and reports on high-
speed rail corridor development within the State not
included in a previous plan under this subchapter, and
a plan for funding any recommended development of such
corridors in the State.
(12) A statement that the State is in compliance with
the requirements of section 22102.
(b) Long-Range Service and Investment Program.--
(1) Program content.--A long-range rail investment
program included in a State rail plan under subsection
(a)(5) shall include the following matters:
(A) A list of any rail capital projects
expected to be undertaken or supported in whole
or in part by the State.
(B) A detailed funding plan for those
projects.
(2) Project list content.--The list of rail capital
projects shall contain--
(A) a description of the anticipated public
and private benefits of each such project; and
(B) a statement of the correlation between--
(i) public funding contributions for
the projects; and
(ii) the public benefits.
(3) Considerations for project list.--In preparing
the list of freight and intercity passenger rail
capital projects, a State rail transportation authority
should take into consideration the following matters:
(A) Contributions made by non-Federal and
non-State sources through user fees, matching
funds, or other private capital involvement.
(B) Rail capacity and congestion effects.
(C) Effects on highway, aviation, and
maritime capacity, congestion, or safety.
(D) Regional balance.
(E) Environmental impact.
(F) Economic and employment impacts.
(G) Projected ridership and other service
measures for passenger rail projects.
Sec. 22506. Review
The Secretary shall prescribe procedures for States to submit
State rail plans for review under this title, including
standardized format and data requirements. State rail plans
completed before the date of enactment of the Passenger Rail
Investment and Improvement Act of 2007 that substantially meet
the requirements of this chapter, as determined by the
Secretary, shall be deemed by the Secretary to have met the
requirements of this chapter.
Part C--Passenger Transportation
CHAPTER 241. GENERAL
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, 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) coordinate the uses of the Northeast Corridor,
particularly intercity and commuter rail passenger
transportation; and
(11) 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. 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 1998 through 2002. [Commencing
no later than the fiscal year following the fifth anniversary
of the Amtrak Reform and Accountability Act of 1997, Amtrak
shall operate without Federal operating grant funds
appropriated for its benefit.]
Sec. 24102. Definitions
In this part--
(1) ``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) ``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.]
[(3)] (2) ``commuter authority'' means a State,
local, or regional entity established to provide, or
make a contract providing for, commuter rail passenger
transportation.
[(4)] (3) ``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.
[(5)] (4) ``intercity rail passenger transportation''
means rail passenger transportation, except commuter
rail passenger transportation.
(5) ``national rail passenger transportation system''
means--
(A) the segment of the Northeast Corridor
between Boston, Massachusetts and Washington,
D.C.;
(B) rail corridors that have been designated
by the Secretary of Transportation as high-
speed corridors (other than corridors described
in subparagraph (A)), but only after they have
been improved to permit operation of high-speed
service;
(C) long-distance routes of more than 750
miles between endpoints operated by Amtrak as
of the date of enactment of the Passenger Rail
Investment and Improvement Act of 2007; and
(D) short-distance corridors, or routes of
not more than 750 miles between endpoints,
operated by--
(i) Amtrak; or
(ii) another rail carrier that
receives funds under chapter 244.
(6) ``Northeast Corridor'' means Connecticut,
Delaware, the District of Columbia, Maryland,
Massachusetts, New Jersey, New York, Pennsylvania, and
Rhode Island.
(7) ``rail carrier'' means a person, including a unit
of State or local government, providing rail
transportation for compensation.
(8) ``rate'' means a rate, fare, or charge for rail
transportation.
(9) ``regional transportation authority'' means an
entity established to provide passenger transportation
in a region.
Sec. 24104. Authorization of appropriations
(a) In General.--There are authorized to be appropriated to
the Secretary of Transportation--
(1) $ 1,138,000,000 for fiscal year 1998;
(2) $ 1,058,000,000 for fiscal year 1999;
(3) $ 1,023,000,000 for fiscal year 2000;
(4) $ 989,000,000 for fiscal year 2001; and
(5) $ 955,000,000 for fiscal year 2002,
for the benefit of Amtrak for capital expenditures under
chapters 243, 247, and 249 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 Reform and Accountability Act of 1997 no funds
authorized for Amtrak shall be used for operating expenses
other than those prescribed for tax liabilities under section
3221 of the Internal Revenue Code of 1986 that are more than
the amount needed for benefits of individuals who retire from
Amtrak and for their beneficiaries.]
(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.
(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 by Congress when the amounts
are appropriated. A payment may not be made more 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.
(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.
* * * * * * *
CHAPTER 243. AMTRAK
Sec. 24301. Status and applicable laws
(a) Status.--Amtrak--
(1) is a 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, and shall not be
subject to title 31.
(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 when deciding original jurisdiction of the district
courts of the United States in a civil action.
(c) Application of Subtitle IV.--Subtitle IV of this title
shall not apply to Amtrak, except for sections 11123, 11301,
11322(a), 11502, and 11706. 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 rail carrier subject to
part A of subtitle IV 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.) apply to Amtrak. Section 552 of title
5, United States Code, applies to Amtrak for any fiscal year in
which Amtrak receives a Federal subsidy.
(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 adopt 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) In general.--Amtrak, a rail carrier subsidiary of
Amtrak, and any passenger or other customer of Amtrak
or such subsidiary, are exempt from a tax, fee, head
charge, or other charge, imposed or levied by a State,
political subdivision, or local taxing authority 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. In
the case of a tax or fee that Amtrak was required to
pay as of September 10, 1982, Amtrak is not exempt from
such tax or fee if it was assessed before April 1,
1997.
(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 a servicing facility. Subject to
appropriations--
(A) the retrofit program shall be completed
not later than October 15, 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) Applicability of District of Columbia Law.--Any lease or
contract entered into between the National Railroad Passenger
Corporation and the State of Maryland, or any department or
agency of the State of Maryland, after the date of the
enactment of this subsection shall be governed by the laws of
the District of Columbia.
[Sec. 24302. Board of directors
[(a) Reform Board.--
[(1) Establishment and duties.--The Reform Board
described in paragraph (2) shall assume the
responsibilities of the Board of Directors of Amtrak by
March 31, 1998, or as soon thereafter as at least 4
members have been appointed and qualified. The Board
appointed under prior law shall be abolished when the
Reform Board assumes such responsibilities.
[(2) Membership.--
[(A)(i) The Reform Board shall consist of 7
voting members appointed by the President, by
and with the advice and consent of the Senate,
for a term of 5 years.
[(ii) Notwithstanding clause (i), if
the Secretary of Transportation is
appointed to the Reform Board, such
appointment shall not be subject to the
advice and consent of the Senate. If
appointed, the Secretary may be
represented at Board meetings by his
designee.
[(B) In selecting the individuals described
in subparagraph (A) for nominations for
appointments to the Reform Board, the President
should consult with the Speaker of the House of
Representatives, the Minority Leader of the
House of Representatives, the Majority Leader
of the Senate, and the Minority Leader of the
Senate.
[(C) Appointments under subparagraph (A)
shall be made from among individuals who--
[(i) have technical qualifications,
professional standing, and demonstrated
expertise in the fields of
transportation or corporate or
financial management;
[(ii) are not representatives of rail
labor or rail management; and
[(iii) in the case of 6 of the 7
individuals selected, are not employees
of Amtrak or of the United States.
[(D) The President of Amtrak shall serve as
an ex officio, nonvoting member of the Reform
Board.
[(3) Confirmation procedure in Senate.--
[(A) This paragraph is enacted by the
Congress--
[(i) as an exercise of the rulemaking
power of the Senate, and as such it is
deemed a part of the rules of the
Senate, but applicable only with
respect to the procedure to be followed
in the Senate in the case of a motion
to discharge; and it supersedes other
rules only to the extent that it is
inconsistent therewith; and
[(ii) with full recognition of the
constitutional right of the Senate to
change the rules (so far as relating to
the procedure of the Senate) at any
time, in the same manner and to the
same extent as in the case of any other
rule of the Senate.
[(B) If, by the first day of June on which
the Senate is in session after a nomination is
submitted to the Senate under this section, the
committee to which the nomination was referred
has not reported the nomination, then it shall
be discharged from further consideration of the
nomination and the nomination shall be placed
on the Executive Calendar.
[(C) It shall be in order at any time
thereafter to move to proceed to the
consideration of the nomination without any
intervening action or debate.
[(D) After no more than 10 hours of debate on
the nomination, which shall be evenly divided
between, and controlled by, the Majority Leader
and the Minority Leader, the Senate shall
proceed without intervening action to vote on
the nomination.
[(b) Board of Directors.--Five years after the establishment
of the Reform Board under subsection (a), a Board of Directors
shall be selected--
[(1) if Amtrak has, during the then current fiscal
year, received Federal assistance, in accordance with
the procedures set forth in subsection (a)(2); or
[(2) if Amtrak has not, during the then current
fiscal year, received Federal assistance, pursuant to
bylaws adopted by the Reform Board (which shall provide
for employee representation), and the Reform Board
shall be dissolved.
[(c) Authority to recommend plan.--The Reform Board shall
have the authority to recommend to the Congress a plan to
implement the recommendations of the 1997 Working Group on
Inter- City Rail regarding the transfer of Amtrak's
infrastructure assets and responsibilities to a new separately
governed corporation.]
Sec. 24302. Board of directors
(a) Composition and Terms.--
(1) The Board of Directors of Amtrak is composed of
the following 10 directors, each of whom must be a
citizen of the United States:
(A) The Secretary of Transportation.
(B) The President of Amtrak, who shall serve
ex officio, as a non-voting member.
(C) 8 individuals appointed by the President
of the United States, by and with the advice
and consent of the Senate, with general
business and financial experience, experience
or qualifications in transportation, freight
and passenger rail transportation, travel,
hospitality, cruise line, and passenger air
transportation businesses, or representatives
of employees or users of passenger rail
transportation or a State government.
(2) In selecting individuals described in paragraph
(1) for nominations for appointments to the Board, the
President shall consult with the Speaker of the House
of Representatives, the minority leader of the House of
Representatives, the majority leader of the Senate, and
the minority leader of the Senate and try to provide
adequate and balanced representation of the major
geographic regions of the United States served by
Amtrak.
(3) An individual appointed under paragraph (1)(C) of
this subsection serves for 5 years or until the
individual's successor is appointed and qualified. Not
more than 5 individuals appointed under paragraph
(1)(C) may be members of the same political party.
(4) The Board shall elect a chairman and a vice
chairman from among its membership. The vice chairman
shall serve as chairman in the absence of the chairman.
(5) The Secretary may be represented at board
meetings by the Secretary's designee.
(6) The voting privileges of the President can be
changed by a unanimous decision of the Board.
(b) Pay and Expenses.--Each director not employed by the
United States Government is entitled to $300 a day when
performing Board duties. Each Director is entitled to
reimbursement for necessary travel, reasonable secretarial and
professional staff support, and subsistence expenses incurred
in attending Board meetings.
(c) Vacancies.--A vacancy on the Board is filled in the same
way as the original selection, except that an individual
appointed by the President of the United States under
subsection (a)(1)(C) of this section to fill a vacancy
occurring before the end of the term for which the predecessor
of that individual was appointed is appointed for the remainder
of that term. A vacancy required to be filled by appointment
under subsection (a)(1)(C) must be filled not later than 120
days after the vacancy occurs.
(d) Quorum.--A majority of the members serving shall
constitute a quorum for doing business.
(e) Bylaws.--The Board may adopt and amend bylaws governing
the operation of Amtrak. The bylaws shall be consistent with
this part and the articles of incorporation.
* * * * * * *
Sec. 24308. Use of facilities and providing services to Amtrak
(a) General Authority.--
(1) Amtrak may make an agreement with a rail carrier
or regional transportation authority to use facilities
of, and have services provided by, the carrier or
authority under terms on which the parties agree. The
terms shall include a penalty for untimely performance.
(2)(A) If the parties cannot agree and if the
[Interstate Commerce Commission] Surface Transportation
Board finds it necessary to carry out this part, the
[Commission] Board shall--
(i) order that the facilities be made
available and the services provided to Amtrak;
and
(ii) prescribe reasonable terms and
compensation for using the facilities and
providing the services.
(B) When prescribing reasonable compensation under
subparagraph (A) of this paragraph, the [Commission]
Board shall consider quality of service as a major
factor when determining whether, and the extent to
which, the amount of compensation shall be greater than
the incremental costs of using the facilities and
providing the services.
(C) The [Commission] Board shall decide the dispute
not later than 90 days after Amtrak submits the dispute
to the [Commission] Board.
(3) Amtrak's right to use the facilities or have the
services provided is conditioned on payment of the
compensation. If the compensation is not paid promptly,
the rail carrier or authority entitled to it may bring
an action against Amtrak to recover the amount owed.
(4) Amtrak shall seek immediate and appropriate legal
remedies to enforce its contract rights when track
maintenance on a route over which Amtrak operates falls
below the contractual standard.
(b) Operating During Emergencies.--To facilitate operation by
Amtrak during an emergency, the [Commission] Board, on
application by Amtrak, shall require a rail carrier to provide
facilities immediately during the emergency. The [Commission]
Board then shall promptly prescribe reasonable terms, including
indemnification of the carrier by Amtrak against personal
injury risk to which the carrier may be exposed. The rail
carrier shall provide the facilities for the duration of the
emergency.
(c) Preference over Freight Transportation.--Except in an
emergency, intercity and commuter rail passenger transportation
provided by or for Amtrak has preference over freight
transportation in using a rail line, junction, or crossing
unless the [Secretary of Transportation] Board orders otherwise
under this subsection. A rail carrier affected by this
subsection may apply to the [Secretary] Board for relief. If
the [Secretary,] Board, after an opportunity for a hearing
under section 553 of title 5, decides that preference for
intercity and commuter rail passenger transportation materially
will lessen the quality of freight transportation provided to
shippers, the [Secretary] Board shall establish the rights of
the carrier and Amtrak on reasonable terms.
(d) Accelerated Speeds.--If a rail carrier refuses to allow
accelerated speeds on trains operated by or for Amtrak, Amtrak
may apply to the [Secretary] Board for an order requiring the
carrier to allow the accelerated speeds. The [Secretary] Board
shall decide whether accelerated speeds are unsafe or
impracticable and which improvements would be required to make
accelerated speeds safe and practicable. After an opportunity
for a hearing, the [Secretary] Board shall establish the
maximum allowable speeds of Amtrak trains on terms the
[Secretary] Board decides are reasonable.
(e) Additional Trains.--
(1) When a rail carrier does not agree to provide, or
allow Amtrak to provide, for the operation of
additional trains over a rail line of the carrier,
Amtrak may apply to the [Secretary] Board for an order
requiring the carrier to provide or allow for the
operation of the requested trains. After a hearing on
the record, the [Secretary] Board may order the
carrier, within 60 days, to provide or allow for the
operation of the requested trains on a schedule based
on legally permissible operating times. However, if the
[Secretary] Board decides not to hold a hearing, the
[Secretary,] Board, not later than 30 days after
receiving the application, shall publish in the Federal
Register the reasons for the decision not to hold the
hearing.
(2) The [Secretary] Board shall consider--
(A) when conducting a hearing, whether an
order would impair unreasonably freight
transportation of the rail carrier, with the
carrier having the burden of demonstrating that
the additional trains will impair the freight
transportation; and
(B) when establishing scheduled running
times, the statutory goal of Amtrak to
implement schedules that attain a system-wide
average speed of at least 60 miles an hour that
can be adhered to with a high degree of
reliability and passenger comfort.
(3) Unless the parties have an agreement that
establishes the compensation Amtrak will pay the
carrier for additional trains provided under an order
under this subsection, the [Commission] Board shall
decide the dispute under subsection (a) of this
section.
(f) Passenger Train Performance and Other Standards.--
(1) Investigation of substandard performance.--If the
on-time performance of any intercity passenger train
averages less than 80 percent for any 2 consecutive
calendar quarters, or the service quality of intercity
passenger train operations for which minimum standards
are established under section 208 of the Passenger Rail
Investment and Improvement Act of 2007 fails to meet
those standards for 2 consecutive calendar quarters,
the Surface Transportation Board may initiate an
investigation, or upon the filing of a complaint by
Amtrak, an intercity passenger rail operator, a host
freight railroad over which Amtrak operates, or an
entity for which Amtrak operates intercity passenger
rail service, the Board shall initiate an investigation
to determine whether, and to what extent, delays or
failure to achieve minimum standards are due to causes
that could reasonably be addressed by a rail carrier
over tracks of which the intercity passenger train
operates or reasonably addressed by Amtrak or other
intercity passenger rail operator. In making its
determination or carrying out such an investigation,
the Board shall obtain information from all parties
involved and identify reasonable measures and make
recommendations to improve the service, quality, and
on-time performance of the train.
(2) Problems caused by host rail carrier.--If the
Board determines that delays or failures to achieve
minimum standards investigated under paragraph (1) are
attributable to a rail carrier's failure to provide
preference to Amtrak over freight transportation as
required under subsection (c), the Board may award
damages against the host rail carrier, including
prescribing such other relief to Amtrak as it
determines to be reasonable and appropriate pursuant to
paragraph (3) of this subsection.
(3) Damages and relief.--In awarding damages and
prescribing other relief under this subsection the
Board shall consider such factors as--
(A) the extent to which Amtrak suffers
financial loss as a result of host rail carrier
delays or failure to achieve minimum standards;
and
(B) what reasonable measures would adequately
deter future actions which may reasonably be
expected to be likely to result in delays to
Amtrak on the route involved.
(4) Use of damages.--The Board shall, as it deems
appropriate, remit the damages awarded under this
subsection to Amtrak or to an entity for which Amtrak
operates intercity passenger rail service. Such damages
shall be used for capital or operating expenditures on
the routes over which delays or failures to achieve
minimum standards were the result of a rail carrier's
failure to provide preference to Amtrak over freight
transportation as determined in accordance with
paragraph (2).
* * * * * * *
Sec. 24310. Management accountability
(a) In General.--Three years after the date of enactment of
the Passenger Rail Investment and Improvement Act of 2007, and
two years thereafter, the Inspector General of the Department
of Transportation shall complete an overall assessment of the
progress made by Amtrak management and the Department of
Transportation in implementing the provisions of that Act.
(b) Assessment.--The management assessment undertaken by the
Inspector General may include a review of--
(1) effectiveness improving annual financial
planning;
(2) effectiveness in implementing improved financial
accounting;
(3) efforts to implement minimum train performance
standards;
(4) progress maximizing revenues and minimizing
Federal subsidies; and
(5) any other aspect of Amtrak operations the
Inspector General finds appropriate to review.
* * * * * * *
Sec. 24316. Plans to address needs of families of passengers involved
in rail passenger accidents
(a) Submission of Plan.--Not later than 6 months after the
date of the enactment of the Surface Transportation and Rail
Security Act of 2007 Amtrak shall submit to the Chairman of the
National Transportation Safety Board, the Secretary of
Transportation, and the Secretary of Homeland Security a plan
for addressing the needs of the families of passengers involved
in any rail passenger accident involving an Amtrak intercity
train and resulting in a loss of life.
(b) Contents of Plans.--The plan to be submitted by Amtrak
under subsection (a) shall include, at a minimum, the
following:
(1) A process by which Amtrak will maintain and
provide to the National Transportation Safety Board and
the Secretary of Transportation, immediately upon
request, a list (which is based on the best available
information at the time of the request) of the names of
the passengers aboard the train (whether or not such
names have been verified), and will periodically update
the list. The plan shall include a procedure, with
respect to unreserved trains and passengers not holding
reservations on other trains, for Amtrak to use
reasonable efforts to ascertain the number and names of
passengers aboard a train involved in an accident.
(2) A plan for creating and publicizing a reliable,
toll-free telephone number within 4 hours after such an
accident occurs, and for providing staff, to handle
calls from the families of the passengers.
(3) A process for notifying the families of the
passengers, before providing any public notice of the
names of the passengers, by suitably trained
individuals.
(4) A process for providing the notice described in
paragraph (2) to the family of a passenger as soon as
Amtrak has verified that the passenger was aboard the
train (whether or not the names of all of the
passengers have been verified).
(5) A process by which the family of each passenger
will be consulted about the disposition of all remains
and personal effects of the passenger within Amtrak's
control; that any possession of the passenger within
Amtrak's control will be returned to the family unless
the possession is needed for the accident investigation
or any criminal investigation; and that any unclaimed
possession of a passenger within Amtrak's control will
be retained by the rail passenger carrier for at least
18 months.
(6) A process by which the treatment of the families
of nonrevenue passengers will be the same as the
treatment of the families of revenue passengers.
(7) An assurance that Amtrak will provide adequate
training to its employees and agents to meet the needs
of survivors and family members following an accident.
(c) Use of Information.--The National Transportation Safety
Board, the Secretary of Transportation, and Amtrak may not
release any personal information on a list obtained under
subsection (b)(1) but may provide information on the list about
a passenger to the family of the passenger to the extent that
the Board or Amtrak considers appropriate.
(d) Limitation on Liability.--Amtrak shall not be liable for
damages in any action brought in a Federal or State court
arising out of the performance of Amtrak in preparing or
providing a passenger list, or in providing information
concerning a train reservation, pursuant to a plan submitted by
Amtrak under subsection (b), unless such liability was caused
by Amtrak's conduct.
(e) Limitation on Statutory Construction.--Nothing in this
section may be construed as limiting the actions that Amtrak
may take, or the obligations that Amtrak may have, in providing
assistance to the families of passengers involved in a rail
passenger accident.
(f) Funding.--Out of funds appropriated pursuant to section
416(b) of the Surface Transportation and Rail Security Act of
2007, there shall be made available to the Secretary of
Transportation for the use of Amtrak $500,000 for fiscal year
2007 to carry out this section. Amounts made available pursuant
to this subsection shall remain available until expended.
* * * * * * *
CHAPTER 244--INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL
ASSISTANCE
Sec.
24401. Definitions.
24402. Capital investment grants to support intercity passenger rail
service.
24403. Project management oversight.
24404. Use of capital grants to finance first-dollar liability of grant
project.
24405. Grant conditions.
Sec. 24401. Definitions
In this subchapter:
(1) Applicant.--The term ``applicant'' means a State
(including the District of Columbia), a group of
States, an Interstate Compact, or a public agency
established by one or more States and having
responsibility for providing intercity passenger rail
service.
(2) Capital project.--The term ``capital project''
means a project or program in a State rail plan
developed under chapter 225 of this title for--
(A) acquiring, constructing, improving, or
inspecting equipment, track and track
structures, or a facility for use in or for the
primary benefit of intercity passenger rail
service, expenses incidental to the acquisition
or construction (including designing,
engineering, location surveying, mapping,
environmental studies, and acquiring rights-of-
way), payments for the capital portions of rail
trackage rights agreements, highway-rail grade
crossing improvements related to intercity
passenger rail service, security, mitigating
environmental impacts, communication and
signalization improvements, relocation
assistance, acquiring replacement housing
sites, and acquiring, constructing, relocating,
and rehabilitating replacement housing;
(B) rehabilitating, remanufacturing or
overhauling rail rolling stock and facilities
used primarily in intercity passenger rail
service;
(C) costs associated with developing State
rail plans; and
(D) the first-dollar liability costs for
insurance related to the provision of intercity
passenger rail service under section 24404.
(3) Intercity passenger rail service.--The term
``intercity passenger rail service'' means
transportation services with the primary purpose of
passenger transportation between towns, cities and
metropolitan areas by rail, including high-speed rail,
as defined in section 24102 of title 49, United States
Code.
Sec. 24402. Capital investment grants to support intercity passenger
rail service
(a) General Authority.--
(1) The Secretary of Transportation may make grants
under this section to an applicant to assist in
financing the capital costs of facilities and equipment
necessary to provide or improve intercity passenger
rail transportation.
(2) The Secretary shall require that a grant under
this section be subject to the terms, conditions,
requirements, and provisions the Secretary decides are
necessary or appropriate for the purposes of this
section, including requirements for the disposition of
net increases in value of real property resulting from
the project assisted under this section and shall
prescribe procedures and schedules for the awarding of
grants under this title, including application and
qualification procedures and a record of decision on
applicant eligibility. The Secretary shall issue a
final rule establishing such procedures not later than
90 days after the date of enactment of the Passenger
Rail Investment and Improvement Act of 2007.
(b) Project as Part of State Rail Plan.--
(1) The Secretary may not approve a grant for a
project under this section unless the Secretary finds
that the project is part of a State rail plan developed
under chapter 225 of this title, or under the plan
required by section 203 of the Passenger Rail
Investment and Improvement Act of 2007, and that the
applicant or recipient has or will have the legal,
financial, and technical capacity to carry out the
project, satisfactory continuing control over the use
of the equipment or facilities, and the capability and
willingness to maintain the equipment or facilities.
(2) An applicant shall provide sufficient information
upon which the Secretary can make the findings required
by this subsection.
(3) If an applicant has not selected the proposed
operator of its service competitively, the applicant
shall provide written justification to the Secretary
showing why the proposed operator is the best, taking
into account price and other factors, and that use of
the proposed operator will not unnecessarily increase
the cost of the project.
(c) Project Selection Criteria.--The Secretary, in selecting
the recipients of financial assistance to be provided under
subsection (a), shall--
(1) require that each proposed project meet all
safety and security requirements that are applicable to
the project under law;
(2) give preference to projects with high levels of
estimated ridership, increased on-time performance,
reduced trip time, additional service frequency to meet
anticipated or existing demand, or other significant
service enhancements as measured against minimum
standards developed under section 208 of the Passenger
Rail Investment and Improvement Act of 2007;
(3) encourage intermodal connectivity through
projects that provide direct connections between train
stations, airports, bus terminals, subway stations,
ferry ports, and other modes of transportation;
(4) ensure that each project is compatible with, and
is operated in conformance with--
(A) plans developed pursuant to the
requirements of section 135 of title 23, United
States Code; and
(B) the national rail plan (if it is
available); and
(5) favor the following kinds of projects:
(A) Projects that are expected to have a
significant favorable impact on air or highway
traffic congestion, capacity, or safety.
(B) Projects that also improve freight or
commuter rail operations.
(C) Projects that have significant
environmental benefits.
(D) Projects that are--
(i) at a stage of preparation that
all pre-commencement compliance with
environmental protection requirements
has already been completed; and
(ii) ready to be commenced.
(E) Projects with positive economic and
employment impacts.
(F) Projects that encourage the use of
positive train control technologies.
(G) Projects that have commitments of funding
from non-Federal Government sources in a total
amount that exceeds the minimum amount of the
non-Federal contribution required for the
project.
(H) Projects that involve donated property
interests or services.
(I) Projects that are identified by the
Surface Transportation Board as necessary to
improve the on time performance and reliability
of intercity passenger rail under section
24308(f).
(J) Projects described in section
5302(a)(1)(G) of this title that are designed
to support intercity passenger rail service.
(d) Amtrak Eligibility.--To receive a grant under this
section, the National Railroad Passenger Corporation may enter
into a cooperative agreement with 1 or more States to carry out
1 or more projects on a State rail plan's ranked list of rail
capital projects developed under section 22504(a)(5) of this
title.
(e) Letters of Intent, Full Funding Grant Agreements, and
Early Systems Work Agreements.--
(1)(A) The Secretary may issue a letter of intent to
an applicant announcing an intention to obligate, for a
major capital project under this section, an amount
from future available budget authority specified in law
that is not more than the amount stipulated as the
financial participation of the Secretary in the
project.
(B) At least 30 days before issuing a letter under
subparagraph (A) of this paragraph or entering into a
full funding grant agreement, the Secretary shall
notify in writing the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Commerce, Science, and Transportation of
the Senate and the House and Senate Committees on
Appropriations of the proposed letter or agreement. The
Secretary shall include with the notification a copy of
the proposed letter or agreement as well as the
evaluations and ratings for the project.
(C) An obligation or administrative commitment may be
made only when amounts are appropriated.
(2)(A) The Secretary may make a full funding grant
agreement with an applicant. The agreement shall--
(i) establish the terms of participation by
the United States Government in a project under
this section;
(ii) establish the maximum amount of
Government financial assistance for the
project;
(iii) cover the period of time for completing
the project, including a period extending
beyond the period of an authorization; and
(iv) make timely and efficient management of
the project easier according to the law of the
United States.
(B) An agreement under this paragraph obligates an
amount of available budget authority specified in law
and may include a commitment, contingent on amounts to
be specified in law in advance for commitments under
this paragraph, to obligate an additional amount from
future available budget authority specified in law. The
agreement shall state that the contingent commitment is
not an obligation of the Government and is subject to
the availability of appropriations made by Federal law
and to Federal laws in force on or enacted after the
date of the contingent commitment. Interest and other
financing costs of efficiently carrying out a part of
the project within a reasonable time are a cost of
carrying out the project under a full funding grant
agreement, except that eligible costs may not be more
than the cost of the most favorable financing terms
reasonably available for the project at the time of
borrowing. The applicant shall certify, in a way
satisfactory to the Secretary, that the applicant has
shown reasonable diligence in seeking the most
favorable financing terms.
(3)(A) The Secretary may make an early systems work
agreement with an applicant if a record of decision
under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) has been issued on the project and
the Secretary finds there is reason to believe--
(i) a full funding grant agreement for the
project will be made; and
(ii) the terms of the work agreement will
promote ultimate completion of the project more
rapidly and at less cost.
(B) A work agreement under this paragraph obligates
an amount of available budget authority specified in
law and shall provide for reimbursement of preliminary
costs of carrying out the project, including land
acquisition, timely procurement of system elements for
which specifications are decided, and other activities
the Secretary decides are appropriate to make
efficient, long-term project management easier. A work
agreement shall cover the period of time the Secretary
considers appropriate. The period may extend beyond the
period of current authorization. Interest and other
financing costs of efficiently carrying out the work
agreement within a reasonable time are a cost of
carrying out the agreement, except that eligible costs
may not be more than the cost of the most favorable
financing terms reasonably available for the project at
the time of borrowing. The applicant shall certify, in
a way satisfactory to the Secretary, that the applicant
has shown reasonable diligence in seeking the most
favorable financing terms. If an applicant does not
carry out the project for reasons within the control of
the applicant, the applicant shall repay all Government
payments made under the work agreement plus reasonable
interest and penalty charges the Secretary establishes
in the agreement.
(4) The total estimated amount of future obligations
of the Government and contingent commitments to incur
obligations covered by all outstanding letters of
intent, full funding grant agreements, and early
systems work agreements may be not more than the amount
authorized under section 101(c) of Passenger Rail
Investment and Improvement Act of 2007, less an amount
the Secretary reasonably estimates is necessary for
grants under this section not covered by a letter. The
total amount covered by new letters and contingent
commitments included in full funding grant agreements
and early systems work agreements may be not more than
a limitation specified in law.
(f) Federal Share of Net Project Cost.--
(1)(A) Based on engineering studies, studies of
economic feasibility, and information on the expected
use of equipment or facilities, the Secretary shall
estimate the net project cost.
(B) A grant for the project shall not exceed 80
percent of the project net capital cost.
(C) The Secretary shall give priority in allocating
future obligations and contingent commitments to incur
obligations to grant requests seeking a lower Federal
share of the project net capital cost.
(2) Up to an additional 20 percent of the required
non-Federal funds may be funded from amounts
appropriated to or made available to a department or
agency of the Federal Government that are eligible to
be expended for transportation.
(3) 50 percent of the average amounts expended by a
State or group of States (including the District of
Columbia) for capital projects to benefit intercity
passenger rail service and operating costs of up to
$5,000,000 per fiscal year of such service in fiscal
years 2004, 2005, and 2006 shall be credited towards
the matching requirements for grants awarded in fiscal
years 2007, 2008, and 2009 under this section. The
Secretary may require such information as necessary to
verify such expenditures.
(4) 50 percent of the average amounts expended by a
State or group of States (including the District of
Columbia) in a fiscal year, beginning in fiscal year
2007, for capital projects to benefit intercity
passenger rail service or for the operating costs of
such service above the average of capital and operating
expenditures made for such service in fiscal years
2004, 2005, and 2006 shall be credited towards the
matching requirements for grants awarded under this
section. The Secretary may require such information as
necessary to verify such expenditures.
(g) Undertaking Projects in Advance.--
(1) The Secretary may pay the Federal share of the
net capital project cost to an applicant that carries
out any part of a project described in this section
according to all applicable procedures and requirements
if--
(A) the applicant applies for the payment;
(B) the Secretary approves the payment; and
(C) before carrying out the part of the
project, the Secretary approves the plans and
specifications for the part in the same way as
other projects under this section.
(2) The cost of carrying out part of a project
includes the amount of interest earned and payable on
bonds issued by the applicant to the extent proceeds of
the bonds are expended in carrying out the part.
However, the amount of interest under this paragraph
may not be more than the most favorable interest terms
reasonably available for the project at the time of
borrowing. The applicant shall certify, in a manner
satisfactory to the Secretary, that the applicant has
shown reasonable diligence in seeking the most
favorable financial terms.
(3) The Secretary shall consider changes in capital
project cost indices when determining the estimated
cost under paragraph (2) of this subsection.
(h) 2-Year Availability.--Funds appropriated under this
section shall remain available until expended. If any amount
provided as a grant under this section is not obligated or
expended for the purposes described in subsection (a) within 2
years after the date on which the State received the grant,
such sums shall be returned to the Secretary for other
intercity passenger rail development projects under this
section at the discretion of the Secretary.
(i) Public-Private Partnerships.--
(1) In general.--A metropolitan planning
organization, State transportation department, or other
project sponsor may enter into an agreement with any
public, private, or nonprofit entity to cooperatively
implement any project funded with a grant under this
title.
(2) Forms of participation.--Participation by an
entity under paragraph (1) may consist of--
(A) ownership or operation of any land,
facility, locomotive, rail car, vehicle, or
other physical asset associated with the
project;
(B) cost-sharing of any project expense;
(C) carrying out administration, construction
management, project management, project
operation, or any other management or
operational duty associated with the project;
and
(D) any other form of participation approved
by the Secretary.
(3) Sub-allocation.--A State may allocate funds under
this section to any entity described in paragraph (1).
(j) Special Transportation Circumstances.--In carrying out
this section, the Secretary shall allocate an appropriate
portion of the amounts available under this section to provide
grants to States--
(1) in which there is no intercity passenger rail
service for the purpose of funding freight rail capital
projects that are on a State rail plan developed under
chapter 225 of this title that provide public benefits
(as defined in chapter 225) as determined by the
Secretary; or
(2) in which the rail transportation system is not
physically connected to rail systems in the continental
United States or may not otherwise qualify for a grant
under this section due to the unique characteristics of
the geography of that State or other relevant
considerations, for the purpose of funding
transportation-related capital projects.
(k) Small Capital Projects.--The Secretary shall make
available $10,000,000 annually from the amounts authorized
under section 101(c) of the Passenger Rail Investment and
Improvement Act of 2007 beginning in fiscal year 2008 for
grants for capital projects eligible under this section not
exceeding $2,000,000, including costs eligible under section
206(c) of that Act. The Secretary may wave requirements of this
section, including State rail plan requirements, as
appropriate.
Sec. 24403. Project management oversight
(a) Project Management Plan Requirements.--To receive Federal
financial assistance for a major capital project under this
subchapter, an applicant must prepare and carry out a project
management plan approved by the Secretary of Transportation.
The plan shall provide for--
(1) adequate recipient staff organization with well-
defined reporting relationships, statements of
functional responsibilities, job descriptions, and job
qualifications;
(2) a budget covering the project management
organization, appropriate consultants, property
acquisition, utility relocation, systems demonstration
staff, audits, and miscellaneous payments the recipient
may be prepared to justify;
(3) a construction schedule for the project;
(4) a document control procedure and recordkeeping
system;
(5) a change order procedure that includes a
documented, systematic approach to handling the
construction change orders;
(6) organizational structures, management skills, and
staffing levels required throughout the construction
phase;
(7) quality control and quality assurance functions,
procedures, and responsibilities for construction,
system installation, and integration of system
components;
(8) material testing policies and procedures;
(9) internal plan implementation and reporting
requirements;
(10) criteria and procedures to be used for testing
the operational system or its major components;
(11) periodic updates of the plan, especially related
to project budget and project schedule, financing, and
ridership estimates; and
(12) the recipient's commitment to submit a project
budget and project schedule to the Secretary each
month.
(b) Secretarial Oversight.--
(1) The Secretary may use no more than 0.5 percent of
amounts made available in a fiscal year for capital
projects under this subchapter to enter into contracts
to oversee the construction of such projects.
(2) The Secretary may use amounts available under
paragraph (1) of this subsection to make contracts for
safety, procurement, management, and financial
compliance reviews and audits of a recipient of amounts
under paragraph (1).
(3) The Federal Government shall pay the entire cost
of carrying out a contract under this subsection.
(c) Access to Sites and Records.--Each recipient of
assistance under this subchapter shall provide the Secretary
and a contractor the Secretary chooses under subsection (c) of
this section with access to the construction sites and records
of the recipient when reasonably necessary.
Sec. 24404. Use of capital grants to finance first-dollar liability of
grant project
Notwithstanding the requirements of section 24402 of this
subchapter, the Secretary of Transportation may approve the use
of capital assistance under this subchapter to fund self-
insured retention of risk for the first tier of liability
insurance coverage for rail passenger service associated with
the capital assistance grant, but the coverage may not exceed
$20,000,000 per occurrence or $20,000,000 in aggregate per
year.
Sec. 24405. Grant conditions
(a) Domestic Buying Preference.--
(1) Requirement.--
(A) In general.--In carrying out a project
funded in whole or in part with a grant under
this title, the grant recipient shall purchase
only--
(i) unmanufactured articles,
material, and supplies mined or
produced in the United States; or
(ii) manufactured articles, material,
and supplies manufactured in the United
States substantially from articles,
material, and supplies mined, produced,
or manufactured in the United States.
(B) De minimis amount.--Subparagraph (1)
applies only to a purchase in an total amount
that is not less than $1,000,000.
(2) Exemptions.--On application of a recipient, the
Secretary may exempt a recipient from the requirements
of this subsection if the Secretary decides that, for
particular articles, material, or supplies--
(A) such requirements are inconsistent with
the public interest;
(B) the cost of imposing the requirements is
unreasonable; or
(C) the articles, material, or supplies, or
the articles, material, or supplies from which
they are manufactured, are not mined, produced,
or manufactured in the United States in
sufficient and reasonably available commercial
quantities and are not of a satisfactory
quality.
(3) United States defined.--In this subsection, the
term `the United States' means the States, territories,
and possessions of the United States and the District
of Columbia.
(b) Operators Deemed Rail Carriers and Employers for Certain
Purposes.--A person that conducts rail operations over rail
infrastructure constructed or improved with funding provided in
whole or in part in a grant made under this title shall be
considered a rail carrier as defined in section 10102(5) of
this title for purposes of this title and any other statute
that adopts the that definition or in which that definition
applies, including--
(1) the Railroad Retirement Act of 1974 (45 U.S.C.
231 et seq.); and
(2) the Railway Labor Act (43 U.S.C. 151 et seq.).
(c) Grant Conditions.--The Secretary shall require as a
condition of making any grant under this title for a project
that uses rights-of-way owned by a railroad that--
(1) a written agreement exist between the applicant
and the railroad regarding such use and ownership,
including--
(A) any compensation for such use;
(B) assurances regarding the adequacy of
infrastructure capacity to accommodate both
existing and future freight and passenger
operations; and
(C) an assurance by the railroad that
collective bargaining agreements with the
railroad's employees (including terms
regulating the contracting of work) will remain
in full force and effect according to their
terms for work performed by the railroad on the
railroad transportation corridor;
(D) an assurance that an applicant complies
with liability requirements consistent with
section 28103 of this title; and
(2) the applicant agrees to comply with--
(A) the standards of section 24312 of this
title, as such section was in effect on
September 1, 2003, with respect to the project
in the same manner that the National Railroad
Passenger Corporation is required to comply
with those standards for construction work
financed under an agreement made under section
24308(a) of this title; and
(B) the protective arrangements established
under section 504 of the Railroad
Revitalization and Regulatory Reform Act of
1976 (45 U.S.C. 836) with respect to employees
affected by actions taken in connection with
the project to be financed in whole or in part
by grants under this subchapter.
(d) Replacement of Existing Intercity Passenger Rail
Service.--
(1) Collective bargaining agreement for intercity
passenger rail projects.--Any entity providing
intercity passenger railroad transportation that begins
operations after the date of enactment of this Act on a
project funded in whole or in part by grants made under
this title and replaces intercity rail passenger
service that was provided by Amtrak, unless such
service was provided solely by Amtrak to another
entity, as of such date shall enter into an agreement
with the authorized bargaining agent or agents for
adversely affected employees of the predecessor
provider that--
(A) gives each such qualified employee of the
predecessor provider priority in hiring
according to the employee's seniority on the
predecessor provider for each position with the
replacing entity that is in the employee's
craft or class and is available within 3 years
after the termination of the service being
replaced;
(B) establishes a procedure for notifying
such an employee of such positions;
(C) establishes a procedure for such an
employee to apply for such positions; and
(D) establishes rates of pay, rules, and
working conditions.
(2) Immediate replacement service.--
(A) Negotiations.--If the replacement of
preexisting intercity rail passenger service
occurs concurrent with or within a reasonable
time before the commencement of the replacing
entity's rail passenger service, the replacing
entity shall give written notice of its plan to
replace existing rail passenger service to the
authorized collective bargaining agent or
agents for the potentially adversely affected
employees of the predecessor provider at least
90 days before the date on which it plans to
commence service. Within 5 days after the date
of receipt of such written notice, negotiations
between the replacing entity and the collective
bargaining agent or agents for the employees of
the predecessor provider shall commence for the
purpose of reaching agreement with respect to
all matters set forth in subparagraphs (A)
through (D) of paragraph (1). The negotiations
shall continue for 30 days or until an
agreement is reached, whichever is sooner. If
at the end of 30 days the parties have not
entered into an agreement with respect to all
such matters, the unresolved issues shall be
submitted for arbitration in accordance with
the procedure set forth in subparagraph (B).
(B) Arbitration.--If an agreement has not
been entered into with respect to all matters
set forth in subparagraphs (A) through (D) of
paragraph (1) as described in subparagraph (A)
of this paragraph, the parties shall select an
arbitrator. If the parties are unable to agree
upon the selection of such arbitrator within 5
days, either or both parties shall notify the
National Mediation Board, which shall provide a
list of seven arbitrators with experience in
arbitrating rail labor protection disputes.
Within 5 days after such notification, the
parties shall alternately strike names from the
list until only 1 name remains, and that person
shall serve as the neutral arbitrator. Within
45 days after selection of the arbitrator, the
arbitrator shall conduct a hearing on the
dispute and shall render a decision with
respect to the unresolved issues among the
matters set forth in subparagraphs (A) through
(D) of paragraph (1). This decision shall be
final, binding, and conclusive upon the
parties. The salary and expenses of the
arbitrator shall be borne equally by the
parties; all other expenses shall be paid by
the party incurring them.
(3) Service commencement.--A replacing entity under
this subsection shall commence service only after an
agreement is entered into with respect to the matters
set forth in subparagraphs (A) through (D) of paragraph
(1) or the decision of the arbitrator has been
rendered.
(4) Subsequent replacement of service.--If the
replacement of existing rail passenger service takes
place within 3 years after the replacing entity
commences intercity passenger rail service, the
replacing entity and the collective bargaining agent or
agents for the adversely affected employees of the
predecessor provider shall enter into an agreement with
respect to the matters set forth in subparagraphs (A)
through (D) of paragraph (1). If the parties have not
entered into an agreement with respect to all such
matters within 60 days after the date on which the
replacing entity replaces the predecessor provider, the
parties shall select an arbitrator using the procedures
set forth in paragraph (2)(B), who shall, within 20
days after the commencement of the arbitration, conduct
a hearing and decide all unresolved issues. This
decision shall be final, binding, and conclusive upon
the parties.
(e) Inapplicability to Certain Rail Operations.-- Nothing in
this section applies to--
(1) commuter rail passenger transportation (as
defined in section 24102(4) of this title) operations
of a State or local government authority (as those
terms are defined in section 5302(11) and (6),
respectively, of this title) eligible to receive
financial assistance under section 5307 of this title,
or to its contractor performing services in connection
with commuter rail passenger operations (as so
defined);
(2) the Alaska Railroad or its contractors; or
(3) the National Railroad Passenger Corporation's
access rights to railroad rights of way and facilities
under current law.
* * * * * * *
Sec. 24702. Transportation requested by States, authorities, and other
persons
(a) Contracts for Transportation.--Amtrak may enter into a
contract with a State, a regional or local authority, or
another person for Amtrak to operate an intercity rail service
or route not included in the national rail passenger
transportation system upon such terms as the parties thereto
may agree.
(b) Discontinuance.--Upon termination of a contract entered
into under this section, or the cessation of financial support
under such a contract by either party, Amtrak may discontinue
such service or route, notwithstanding any other provision of
law.
* * * * * * *
Sec. 24706. Discontinuance
(a) Notice of discontinuance.--
(1) Except as provided in subsection (b) of this
section, at least 180 days before a discontinuance
under section 24704 or 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 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 subsection (a)(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) Applicability.--This section applies to all service over
routes provided by Amtrak, notwithstanding any provision of
section 24701 of this title or any other provision of this
title except section 24702(b).
* * * * * * *
Sec. 24710. Long distance routes
(a) Annual Evaluation.--Using the financial and performance
metrics developed under section 208 of the Passenger Rail
Investment and Improvement Act of 2007, Amtrak shall--
(1) evaluate annually the financial and operating
performance of each long distance passenger rail route
operated by Amtrak; and
(2) rank the overall performance of such routes for
2006 and identify each long distance passenger rail
route operated by Amtrak in 2006 according to its
overall performance as belonging to the best performing
third of such routes, the second best performing third
of such routes, or the worst performing third of such
routes.
(b) Performance Improvement Plan.--Amtrak shall develop and
publish a performance improvement plan for its long distance
passenger rail routes to achieve financial and operating
improvements based on the data collected through the
application of the financial and performance metrics developed
under section 208 of that Act. The plan shall address--
(1) on-time performance;
(2) scheduling, frequency, routes, and stops;
(3) the feasibility of restructuring service into
connected corridor service;
(4) performance-related equipment changes and capital
improvements;
(5) on-board amenities and service, including food,
first class, and sleeping car service;
(6) State or other non-Federal financial
contributions;
(7) improving financial performance; and
(8) other aspects of Amtrak's long distance passenger
rail routes that affect the financial, competitive, and
functional performance of service on Amtrak's long
distance passenger rail routes.
(c) Implementation.--Amtrak shall implement the performance
improvement plan developed under subsection (b)--
(1) beginning in fiscal year 2008 for those routes
identified as being in the worst performing third under
subsection (a)(2);
(2) beginning in fiscal year 2009 for those routes
identified as being in the second best performing third
under subsection (a)(2); and
(3) beginning in fiscal year 2010 for those routes
identified as being in the best performing third under
subsection (a)(2).
(d) Enforcement.--The Federal Railroad Administration shall
monitor the development, implementation, and outcome of
improvement plans under this section. If, for any year, it
determines that Amtrak is not making reasonable progress in
implementing its performance improvement plan or in achieving
the expected outcome of the plan for any calendar year, the
Federal Railroad Administration--
(1) shall notify Amtrak, the Inspector General of the
Department of Transportation, and appropriate
Congressional committees of its determination under
this subsection;
(2) shall provide an opportunity for a hearing with
respect to that determination; and
(3) may withhold any appropriated funds otherwise
available to Amtrak for the operation of a route or
routes on which it is not making progress, other than
funds made available for passenger safety or security
measures.
Sec. 24711. Alternate passenger rail service program
(a) In General.--Within 1 year after the date of enactment of
the Passenger Rail Investment and Improvement Act of 2007, the
Federal Railroad Administration shall initiate a rulemaking
proceeding to develop a program under which--
(1) a rail carrier or rail carriers that own
infrastructure over which Amtrak operates a passenger
rail service route described in subparagraph (B), (C),
or (D) of section 24102(5) or in section 24702 of title
49, United States Code, or any entity operating as a
rail carrier that has negotiated a contingent agreement
to lease necessary rights-of-way from a rail carrier or
rail carriers that own the infrastructure on which
Amtrak operates such routes, may petition the Federal
Railroad Administration to be considered as a passenger
rail service provider over that route in lieu of
Amtrak;
(2) the Administration would notify Amtrak within 30
days after receiving a petition under paragraph (1) and
establish a deadline by which both the petitioner and
Amtrak would be required to submit a bid to provide
passenger rail service over the route to which the
petition relates;
(3) each bid would describe how the bidder would
operate the route, what Amtrak passenger equipment
would be needed, if any, what sources of non-Federal
funding the bidder would use, including any State
subsidy, among other things;
(4) the Administration would make a decision and
execute a contract within a specified, limited time
after that deadline awarding to the winning bidder--
(A) the right and obligation to provide
passenger rail service over that route subject
to such performance standards as the
Administration may require, consistent with the
standards developed under section 208 of this
Act; and
(B) an operating subsidy--
(i) for the first year at a level not
in excess of the level in effect during
the fiscal year preceding the fiscal
year in which the petition was
received, adjusted for inflation;
(ii) for any subsequent years at such
level, adjusted for inflation; and
(5) each bid would contain a staffing plan describing
the number of employees needed to operate the service,
the job assignments and requirements, and the terms of
work for prospective and current employees of the
bidder for the service outlined in the bid, and such
staffing plan would be made available by the winning
bidder to the public after the bid award.
(b) Implementation.--
(1) Initial petitions.--Pursuant to any rules or
regulations promulgated under subsection (A), the
Administration shall establish a deadline for the
submission of a petition under subsection (a)--
(A) during fiscal year 2008 for operations
commencing in fiscal year 2009; and
(B) during the immediately preceding fiscal
year for operations commencing in subsequent
fiscal years.
(2) Route limitations.--The Administration may not
make the program available with respect to more than 1
Amtrak passenger rail route for operations beginning in
fiscal year 2009 nor to more than 2 such routes for
operations beginning in fiscal year 2011 and subsequent
fiscal years.
(c) Performance Standards; Access to Facilities; Employees.--
If the Administration awards the right and obligation to
provide passenger rail service over a route under the program
to a rail carrier or rail carriers--
(1) it shall execute a contract with the rail carrier
or rail carriers for rail passenger operations on that
route that conditions the operating and subsidy rights
upon--
(A) the service provider continuing to
provide passenger rail service on the route
that is no less frequent, nor over a shorter
distance, than Amtrak provided on that route
before the award; and
(B) the service provider's compliance with
the minimum standards established under section
208 of the Passenger Rail Investment and
Improvement Act of 2007 and such additional
performance standards as the Administration may
establish;
(2) it shall, if the award is made to a rail carrier
other than Amtrak, require Amtrak to provide access to
its reservation system, stations, and facilities to any
rail carrier or rail carriers awarded a contract under
this section, in accordance with section 218 of that
Act, necessary to carry out the purposes of this
section;
(3) the employees of any person used by a rail
carrier or rail carriers (as defined in section
10102(5) of this title) in the operation of a route
under this section shall be considered an employee of
that carrier or carriers and subject to the applicable
Federal laws and regulations governing similar crafts
or classes of employees of Amtrak, including provisions
under section 121 of the Amtrak Reform and
Accountability Act of 1997 relating to employees that
provide food and beverage service; and
(4) the winning bidder shall provide preference in
hiring to qualified Amtrak employees displaced by the
award of the bid, consistent with the staffing plan
submitted by the bidder.
(d) Cessation of Service.--If a rail carrier or rail carriers
awarded a route under this section cease to operate the service
or fail to fulfill their obligations under the contract
required under subsection (c), the Administrator, in
collaboration with the Surface Transportation Board shall take
any necessary action consistent with this title to enforce the
contract and ensure the continued provision of service,
including the installment of an interim service provider and
re-bidding the contract to operate the service. The entity
providing service shall either be Amtrak or a rail carrier
defined in section 24711(a)(1).
(e) Adequate Resources.--Before taking any action allowed
under this section, the Secretary shall certify that the
Administrator has sufficient resources that are adequate to
undertake the program established under this section.
* * * * * * *
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.); and
(7) appoint a general manager of the Northeast
Corridor improvement program.
(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 commuter rail passenger and intercity 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
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.
[Sec. 24905. Coordination board and safety committee
[(a) Northeast Corridor Coordination Board.--(1) The
Northeast Corridor Coordination Board is composed of the
following members:
[(A) one individual from each commuter authority (as
defined in section 1135(a) of the Omnibus Budget
Reconciliation Act of 1981 (45 U.S.C. 1104)) that
provides or makes a contract to provide commuter rail
passenger transportation over the main line of the
Northeast Corridor.
[(B) 2 individuals selected by Amtrak.
[(C) one individual selected by the Consolidated Rail
Corporation.
[(2) The Board shall recommend to Amtrak--
[(A) policies that ensure equitable access to the
Northeast Corridor, considering the need for equitable
access by commuter and intercity rail passenger
transportation and the requirements of section 24308(c)
of this title; and
[(B) equitable policies for the Northeast Corridor
related to--
[(i) dispatching;
[(ii) public information;
[(iii) maintaining equipment and facilities;
[(iv) major capital facility investments; and
[(v) harmonizing equipment acquisitions,
rates, and schedules.
[(3) The Board may recommend to the board of directors and
President of Amtrak action necessary to resolve differences on
providing transportation, except for facilities and
transportation matters under section 24308(a) or 24904(a)(5)
and (c) of this title.
[(b) Northeast Corridor Safety Committee.--(1) The Northeast
Corridor Safety Committee is composed of members appointed by
the Secretary of Transportation. The members shall be
representatives of--
[(A) the Secretary;
[(B) Amtrak;
[(C) freight carriers operating more than 150,000
train miles a year on the main line of the Northeast
Corridor;
[(D) commuter agencies;
[(E) rail passengers;
[(F) rail labor; and
[(G) other individuals and organizations the
Secretary decides have a significant interest in rail
safety.
[(2) The Secretary shall consult with the Committee about
safety improvements on the Northeast Corridor main line. The
Committee shall meet at least once every 2 years to consider
safety matters on the main line.
[(3) At the beginning of the first session of each Congress,
the Secretary shall submit a report to Congress on the status
of efforts to improve safety on the Northeast Corridor main
line. The report shall include the safety recommendations of
the Committee and the comments of the Secretary on those
recommendations.
[(4) The Committee shall cease to exist on January 1, 1999,
or on another date the Secretary decides is appropriate. The
Secretary shall notify Congress in writing of a decision to
terminate the Committee on another date.]
Sec. 24905. Northeast Corridor Infrastructure and Operations Advisory
Commission; Safety and Security Committee.
(a) Northeast Corridor Infrastructure and Operations Advisory
Commission.--
(1) Within 180 days after the date of enactment of
the Passenger Rail Investment and Improvement Act of
2007, the Secretary of Transportation shall establish a
Northeast Corridor Infrastructure and Operations
Advisory Commission (hereinafter referred to in this
section as the `Commission') to promote mutual
cooperation and planning pertaining to the rail
operations and related activities of the Northeast
Corridor. The Commission shall be made up of--
(A) members representing the National
Railroad Passenger Corporation;
(B) members representing the Secretary of
Transportation and the Federal Railroad
Administration;
(C) 1 member from each of the States
(including the District of Columbia) that
constitute the Northeast Corridor as defined in
section 24102, designated by, and serving at
the pleasure of, the chief executive officer
thereof; and
(D) non-voting representatives of freight
railroad carriers using the Northeast Corridor
selected by the Secretary.
(2) The Secretary shall ensure that the membership
belonging to any of the groups enumerated under
subparagraph (1) shall not constitute a majority of the
commission's memberships.
(3) The commission shall establish a schedule and
location for convening meetings, but shall meet no less
than four times per fiscal year, and the commission
shall develop rules and procedures to govern the
commission's proceedings.
(4) A vacancy in the Commission shall be filled in
the manner in which the original appointment was made.
(5) Members shall serve without pay but shall receive
travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703
of title 5, United States Code.
(6) The Chairman of the Commission shall be elected
by the members.
(7) The Commission may appoint and fix the pay of
such personnel as it considers appropriate.
(8) Upon request of the Commission, the head of any
department or agency of the United States may detail,
on a reimbursable basis, any of the personnel of that
department or agency to the Commission to assist it in
carrying out its duties under this section.
(9) Upon the request of the Commission, the
Administrator of General Services shall provide to the
Commission, on a reimbursable basis, the administrative
support services necessary for the Commission to carry
out its responsibilities under this section.
(10) The commission shall consult with other entities
as appropriate.
(b) General Recommendations.--The Commission shall develop
recommendations concerning Northeast Corridor rail
infrastructure and operations including proposals addressing,
as appropriate--
(1) short-term and long term capital investment needs
beyond the state-of-good-repair under section 213;
(2) future funding requirements for capital
improvements and maintenance;
(3) operational improvements of intercity passenger
rail, commuter rail, and freight rail services;
(4) opportunities for additional non-rail uses of the
Northeast Corridor;
(5) scheduling and dispatching;
(6) safety and security enhancements;
(7) equipment design;
(8) marketing of rail services; and
(9) future capacity requirements.
(c) Access Costs.--
(1) Development of formula.--Within 1 year after
verification of Amtrak's new financial accounting
system pursuant to section 203(b) of the Passenger Rail
Investment and Improvement Act of 2007, the Commission
shall--
(A) develop a standardized formula for
determining and allocating costs, revenues, and
compensation for Northeast Corridor commuter
rail passenger transportation, as defined in
section 24102 of this title, that use National
Railroad Passenger Corporation facilities or
services or that provide such facilities or
services to the National Railroad Passenger
Corporation that ensure that--
(i) there is no cross-subsidization
of commuter rail passenger, intercity
rail passenger, or freight rail
transportation; and
(ii) each service is assigned the
costs incurred only for the benefit of
that service, and a proportionate
share, based upon factors that
reasonably reflect relative use, of
costs incurred for the common benefit
of more than 1 service;
(B) develop a proposed timetable for
implementing the formula before the end of the
6th year following the date of enactment of
that Act;
(C) transmit the proposed timetable to the
Surface Transportation Board; and
(D) at the request of a Commission member,
petition the Surface Transportation Board to
appoint a mediator to assist the Commission
members through non-binding mediation to reach
an agreement under this section.
(2) Implementation.--The National Railroad Passenger
Corporation and the commuter authorities providing
commuter rail passenger transportation on the Northeast
Corridor shall implement new agreements for usage of
facilities or services based on the formula proposed in
paragraph (1) in accordance with the timetable
established therein. If the entities fail to implement
such new agreements in accordance with the timetable,
the Commission shall petition the Surface
Transportation Board to determine the appropriate
compensation amounts for such services in accordance
with section 24904(c) of this title. The Surface
Transportation Board shall enforce its determination on
the party or parties involved.
(d) Transmission of Recommendations.--The commission shall
annually transmit the recommendations developed under
subsection (b) and the formula and timetable developed under
subsection (c)(1) to the Senate Committee on Commerce, Science,
and Transportation and the House of Representatives Committee
on Transportation and Infrastructure.
(e) Northeast Corridor Safety and Security Committee.--
(1) In general.--The Secretary shall establish a
Northeast Corridor Safety and Security Committee
composed of members appointed by the Secretary. The
members shall be representatives of--
(A) the Secretary;
(B) Amtrak;
(C) freight carriers operating more than
150,000 train miles a year on the main line of
the Northeast Corridor;
(D) commuter agencies;
(E) rail passengers;
(F) rail labor;
(G) the Transportation Security
Administration; and
(H) other individuals and organizations the
Secretary decides have a significant interest
in rail safety or security.
(2) Function; meetings.--The Secretary shall consult
with the Committee about safety and security
improvements on the Northeast Corridor main line. The
Committee shall meet at least once every 2 years to
consider safety matters on the main line.
(3) Report.--At the beginning of the first session of
each Congress, the Secretary shall submit a report to
the Commission and to Congress on the status of efforts
to improve safety and security on the Northeast
Corridor main line. The report shall include the safety
recommendations of the Committee and the comments of
the Secretary on those recommendations.
* * * * * * *
Sec. 24910. Rail cooperative research program
(a) In General.--The Secretary shall establish and carry out
a rail cooperative research program. The program shall--
(1) address, among other matters, intercity rail
passenger and freight rail services, including existing
rail passenger and freight technologies and speeds,
incrementally enhanced rail systems and infrastructure,
and new high-speed wheel-on-rail systems and rail
security;
(2) address ways to expand the transportation of
international trade traffic by rail, enhance the
efficiency of intermodal interchange at ports and other
intermodal terminals, and increase capacity and
availability of rail service for seasonal freight
needs;
(3) consider research on the interconnectedness of
commuter rail, passenger rail, freight rail, and other
rail networks; and
(4) give consideration to regional concerns regarding
rail passenger and freight transportation, including
meeting research needs common to designated high-speed
corridors, long-distance rail services, and regional
intercity rail corridors, projects, and entities.
(b) Content.--The program to be carried out under this
section shall include research designed--
(1) to identify the unique aspects and attributes of
rail passenger and freight service;
(2) to develop more accurate models for evaluating
the impact of rail passenger and freight service,
including the effects on highway and airport and airway
congestion, environmental quality, and energy
consumption;
(3) to develop a better understanding of modal choice
as it affects rail passenger and freight
transportation, including development of better models
to predict utilization;
(4) to recommend priorities for technology
demonstration and development;
(5) to meet additional priorities as determined by
the advisory board established under subsection (c),
including any recommendations made by the National
Research Council;
(6) to explore improvements in management, financing,
and institutional structures;
(7) to address rail capacity constraints that affect
passenger and freight rail service through a wide
variety of options, ranging from operating improvements
to dedicated new infrastructure, taking into account
the impact of such options on operations;
(8) to improve maintenance, operations, customer
service, or other aspects of intercity rail passenger
and freight service;
(9) to recommend objective methodologies for
determining intercity passenger rail routes and
services, including the establishment of new routes,
the elimination of existing routes, and the contraction
or expansion of services or frequencies over such
routes;
(10) to review the impact of equipment and
operational safety standards on the further development
of high speed passenger rail operations connected to or
integrated with non-high speed freight or passenger
rail operations; and
(11) to recommend any legislative or regulatory
changes necessary to foster further development and
implementation of high speed passenger rail operations
while ensuring the safety of such operations that are
connected to or integrated with non-high speed freight
or passenger rail operations.
(c) Advisory Board.--
(1) Establishment.--In consultation with the heads of
appropriate Federal departments and agencies, the
Secretary shall establish an advisory board to
recommend research, technology, and technology transfer
activities related to rail passenger and freight
transportation.
(2) Membership.--The advisory board shall include--
(A) representatives of State transportation
agencies;
(B) transportation and environmental
economists, scientists, and engineers; and
(C) representatives of Amtrak, the Alaska
Railroad, freight railroads, transit operating
agencies, intercity rail passenger agencies,
railway labor organizations, and environmental
organizations.
(d) National Academy of Sciences.-- The Secretary may make
grants to, and enter into cooperative agreements with, the
National Academy of Sciences to carry out such activities
relating to the research, technology, and technology transfer
activities described in subsection (b) as the Secretary deems
appropriate.
Part E--Miscellaneous
CHAPTER 281. LAW ENFORCEMENT
Sec. 28101. Rail police officers
Under regulations prescribed by the Secretary of
Transportation, a rail police officer who is employed by a rail
carrier and certified or commissioned as a police officer under
the laws of a State may enforce the laws of any jurisdiction in
which [the rail carrier] any rail carrier owns property, to the
extent of the authority of a police officer certified or
commissioned under the laws of that jurisdiction, to protect--
(1) employees, passengers, or patrons of [the rail
carrier] any rail carrier;
(2) property, equipment, and facilities owned,
leased, operated, or maintained by [the rail carrier]
any rail carrier;
(3) property moving in interstate or foreign commerce
in the possession of [the rail carrier] any rail
carrier; and
(4) personnel, equipment, and material moving by rail
that are vital to the national defense.
Subtitle VII. Aviation Programs
Part A--Air Commerce and Safety
CHAPTER 463. PENALTIES
Sec. 46301. Civil penalties
(a) General Penalty.--
(1) A person is liable to the United States
Government for a civil penalty of not more than $25,000
(or $1,100 if the person is an individual or small
business concern) for violating--
(A) chapter 401 (except sections 40103(a) and
(d), 40105, 40116, and 40117), chapter 411,
chapter 413 (except sections 41307 and
41310(b)-(f)), chapter 415 (except sections
41502, 41505, and 41507-41509), chapter 417
(except sections 41703, 41704, 41710, 41713,
and 41714), chapter 419, subchapter II or III
of chapter 421, chapter 441 (except section
44109), 44502(b) or (c), chapter 447 (except
sections 44717 and 44719-44723), chapter 449
(except sections 44902, 44903(d), 44904,
44907(a)-(d)(1)(A) and (d)(1)(C)-(f), and
44908), section 47107(b) (including any
assurance made under such section), or section
47133 of this title;
(B) a regulation prescribed or order issued
under any provision to which clause (A) of this
paragraph applies;
(C) any term of a certificate or permit
issued under section 41102, 41103, or 41302 of
this title; or
(D) a regulation of the United States Postal
Service under this part.
(2) A separate violation occurs under this subsection
for each day the violation (other than a violation of
section 41719) continues or, if applicable, for each
flight involving the violation (other than a violation
of section 41719).
(3) Penalty for diversion of aviation revenues.--The
amount of a civil penalty assessed under this section
for a violation of section 47107(b) of this title (or
any assurance made under such section) or section 47133
of this title may be increased above the otherwise
applicable maximum amount under this section to an
amount not to exceed 3 times the amount of revenues
that are used in violation of such section.
(4) Aviation security violations.--Notwithstanding
paragraph (1) of this subsection, the maximum civil
penalty for violating chapter 449 [or another
requirement under this title administered by the Under
Secretary of Transportation for Security] shall be
$10,000; except that the maximum civil penalty shall be
$25,000 in the case of a person operating an aircraft
for the transportation of passengers or property for
compensation (except an individual serving as an
airman).
(5) Penalties applicable to individuals and small
business concerns.--
(A) An individual (except an airman serving
as an airman) or small business concern is
liable to the Government for a civil penalty of
not more than $10,000 for violating--
(i) chapter 401 (except sections
40103(a) and (d), 40105, 40106(b),
40116, and 40117), section 44502 (b) or
(c), chapter 447 (except sections
44717-44723), or chapter 449 (except
sections 44902, 44903(d), 44904, and
44907-44909) of this title; or
(ii) a regulation prescribed or order
issued under any provision to which
clause (i) applies.
(B) A civil penalty of not more than $10,000
may be imposed for each violation under
paragraph (1) committed by an individual or
small business concern related to--
(i) the transportation of hazardous
material;
(ii) the registration or recordation
under chapter 441 of an aircraft not
used to provide air transportation;
(iii) a violation of section
44718(d), relating to the limitation on
construction or establishment of
landfills;
(iv) a violation of section 44725,
relating to the safe disposal of life-
limited aircraft parts; or
(v) a violation of section 40127 or
section 41705, relating to
discrimination.
(C) Notwithstanding paragraph (1), the
maximum civil penalty for a violation of
section 41719 committed by an individual or
small business concern shall be $5,000 instead
of $1,000.
(D) Notwithstanding paragraph (1), the
maximum civil penalty for a violation of
section 41712 (including a regulation
prescribed or order issued under such section)
or any other regulation prescribed by the
Secretary by an individual or small business
concern that is intended to afford consumer
protection to commercial air transportation
passengers shall be $2,500 for each violation.
(b) Smoke Alarm Device Penalty.--
(1) A passenger may not tamper with, disable, or
destroy a smoke alarm device located in a lavatory on
an aircraft providing air transportation or intrastate
air transportation.
(2) An individual violating this subsection is liable
to the Government for a civil penalty of not more than
$2,000.
(c) Procedural Requirements.--
(1) The Secretary of Transportation may impose a
civil penalty for the following violations only after
notice and an opportunity for a hearing:
(A) a violation of subsection (b) of this
section or chapter 411, chapter 413 (except
sections 41307 and 41310(b)-(f)), chapter 415
(except sections 41502, 41505, and 41507-
41509), chapter 417 (except sections 41703,
41704, 41710, 41713, and 41714), chapter 419,
subchapter II of chapter 421, or section 44909
of this title.
(B) a violation of a regulation prescribed or
order issued under any provision to which
clause (A) of this paragraph applies.
(C) a violation of any term of a certificate
or permit issued under section 41102, 41103, or
41302 of this title.
(D) a violation under subsection (a)(1) of
this section related to the transportation of
hazardous material.
(2) The Secretary shall give written notice of the
finding of a violation and the civil penalty under
paragraph (1) of this subsection.
(d) Administrative Imposition of Penalties.--
(1) In this subsection--
(A) ``flight engineer'' means an individual
who holds a flight engineer certificate issued
under part 63 of title 14, Code of Federal
Regulations.
(B) ``mechanic'' means an individual who
holds a mechanic certificate issued under part
65 of title 14, Code of Federal Regulations.
(C) ``pilot'' means an individual who holds a
pilot certificate issued under part 61 of title
14, Code of Federal Regulations.
(D) ``repairman'' means an individual who
holds a repairman certificate issued under part
65 of title 14, Code of Federal Regulations.
(2) The Administrator of the Federal Aviation
Administration may impose a civil penalty for a
violation of chapter 401 (except sections 40103(a) and
(d), 40105, 40106(b), 40116, and 40117), chapter 441
(except section 44109), section 44502(b) or (c),
chapter 447 (except sections 44717 and 44719-44723) or
section 46301(b), 46302 (for a violation relating to
section 46504), 46318, or 47107(b) (as further defined
by the Secretary under section 47107(l) and including
any assurance made under section 47107(b)) of this
title or a regulation prescribed or order issued under
any of those provisions. The Secretary of Homeland
Security may impose a civil penalty for a violation of
chapter 449 (except sections 44902, 44903(d), 44907(a)-
(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), 46302
(except for a violation relating to section 46504),
46303, or a regulation prescribed or order issued under
such chapter 449. The Secretary of Homeland Security or
Administrator shall give written notice of the finding
of a violation and the penalty.
(3) In a civil action to collect a civil penalty
imposed by the Secretary of Homeland Security or
Administrator under this subsection, the issues of
liability and the amount of the penalty may not be
reexamined.
(4) Notwithstanding paragraph (2) of this subsection,
the district courts of the United States have exclusive
jurisdiction of a civil action involving a penalty the
Secretary of Homeland Security or Administrator
initiates if--
(A) the amount in controversy is more than--
(i) $50,000 if the violation was
committed by any person before the date
of enactment of the Vision 100--Century
of Aviation Reauthorization Act
[enacted Dec. 12, 2003];
(ii) $400,000 if the violation was
committed by a person other than an
individual or small business concern on
or after that date; or
(iii) $50,000 if the violation was
committed by an individual or small
business concern on or after that date;
(B) the action is in rem or another action in
rem based on the same violation has been
brought;
(C) the action involves an aircraft subject
to a lien that has been seized by the
Government; or
(D) another action has been brought for an
injunction based on the same violation.
(5)(A) The Administrator may issue an order imposing
a penalty under this subsection against an individual
acting as a pilot, flight engineer, mechanic, or
repairman only after advising the individual of the
charges or any reason the Administrator relied on for
the proposed penalty and providing the individual an
opportunity to answer the charges and be heard about
why the order shall not be issued.
(B) An individual acting as a pilot, flight engineer,
mechanic, or repairman may appeal an order imposing a
penalty under this subsection to the National
Transportation Safety Board. After notice and an
opportunity for a hearing on the record, the Board
shall affirm, modify, or reverse the order. The Board
may modify a civil penalty imposed to a suspension or
revocation of a certificate.
(C) When conducting a hearing under this paragraph,
the Board is not bound by findings of fact of the
Administrator but is bound by all validly adopted
interpretations of laws and regulations the
Administrator carries out and of written agency policy
guidance available to the public related to sanctions
to be imposed under this section unless the Board finds
an interpretation is arbitrary, capricious, or
otherwise not according to law.
(D) When an individual files an appeal with the Board
under this paragraph, the order of the Administrator is
stayed.
(6) An individual substantially affected by an order
of the Board under paragraph (5) of this subsection, or
the Administrator when the Administrator decides that
an order of the Board under paragraph (5) will have a
significant adverse impact on carrying out this part,
may obtain judicial review of the order under section
46110 of this title. The Administrator shall be made a
party to the judicial review proceedings. Findings of
fact of the Board are conclusive if supported by
substantial evidence.
(7) (A) The Administrator may impose a penalty on a
person (except an individual acting as a pilot, flight
engineer, mechanic, or repairman) only after notice and
an opportunity for a hearing on the record.
(B) In an appeal from a decision of an administrative
law judge as the result of a hearing under subparagraph
(A) of this paragraph, the Administrator shall consider
only whether--
(i) each finding of fact is supported by a
preponderance of reliable, probative, and
substantial evidence;
(ii) each conclusion of law is made according
to applicable law, precedent, and public
policy; and
(iii) the judge committed a prejudicial error
that supports the appeal.
(C) Except for good cause, a civil action involving a
penalty under this paragraph may not be initiated later
than 2 years after the violation occurs.
(D) In the case of a violation of section 47107(b) of
this title or any assurance made under such section--
(i) a civil penalty shall not be assessed
against an individual;
(ii) a civil penalty may be compromised as
provided under subsection (f); and
(iii) judicial review of any order assessing
a civil penalty may be obtained only pursuant
to section 46110 of this title.
(8) The maximum civil penalty the Under Secretary,
Administrator, or Board may impose under this
subsection is--
(A) $50,000 if the violation was committed by
any person before the date of enactment of the
Vision 100--Century of Aviation Reauthorization
Act [enacted Dec. 12, 2003];
(B) $400,000 if the violation was committed
by a person other than an individual or small
business concern on or after that date; or
(C) $50,000 if the violation was committed by
an individual or small business concern on or
after that date.
(9) This subsection applies only to a violation
occurring after August 25, 1992.
(e) Penalty Considerations.--In determining the amount of a
civil penalty under subsection (a)(3) of this section related
to transportation of hazardous material, the Secretary shall
consider--
(1) the nature, circumstances, extent, and gravity of
the violation;
(2) with respect to the violator, the degree of
culpability, any history of prior violations, the
ability to pay, and any effect on the ability to
continue doing business; and
(3) other matters that justice requires.
(f) Compromise and Setoff.--
(1) (A) The Secretary may compromise the amount of a
civil penalty imposed for violating--
(i) chapter 401 (except sections 40103(a) and
(d), 40105, 40116, and 40117), chapter 441
(except section 44109), section 44502(b) or
(c), chapter 447 (except 44717 and 44719-
44723), or chapter 449 (except sections 44902,
44903(d), 44904, 44907(a)-(d)(1)(A) and
(d)(1)(C)-(f), 44908, and 44909) of this title;
or
(ii) a regulation prescribed or order issued
under any provision to which clause (i) of this
subparagraph applies.
(B) The Postal Service may compromise the amount of a
civil penalty imposed under subsection (a)(1)(D) of
this section.
(2) The Government may deduct the amount of a civil
penalty imposed or compromised under this subsection
from amounts it owes the person liable for the penalty.
(g) Judicial Review.--An order of the Secretary or the
Administrator imposing a civil penalty may be reviewed
judicially only under section 46110 of this title.
(h) Nonapplication.-- (1) This section does not apply to the
following when performing official duties: (A) a member of the
armed forces of the United States. (B) a civilian employee of
the Department of Defense subject to the Uniform Code of
Military Justice. (2) The appropriate military authority is
responsible for taking necessary disciplinary action and
submitting to the Secretary (or the Under Secretary of
Transportation for Security with respect to security duties and
powers designated to be carried out by the Under Secretary or
the Administrator with respect to aviation safety duties and
powers designated to be carried out by the Administrator) a
timely report on action taken.
(i) Small Business Concern Defined.--In this section, the
term ``small business concern'' has the meaning given that term
in section 3 of the Small Business Act (15 U.S.C. 632).
* * * * * * *
CHAPTER 261. HIGH-SPEED RAIL ASSISTANCE
Sec. 26106. Rail infrastructure bonds
(a) Designation.--The Secretary may designate bonds for
purposes of section 54 of the Internal Revenue Code of 1986
if--
(1) the bonds are to be issued by--
(A) a State, if the entire railroad passenger
transportation corridor containing the
infrastructure project to be financed is within
the State;
(B) 1 or more of the States that have entered
into an agreement or an interstate compact
consented to by Congress under section 410(a)
of Public Law 105-134 (49 U.S.C. 24101 note);
(C) an agreement or an interstate compact
described in subparagraph (B); or
(D) Amtrak, for capital projects under its 5-
year plan;
(2) the bonds are for the purpose of financing
projects that make a substantial contribution to
providing the infrastructure and equipment required to
complete or improve a rail transportation corridor
(including projects for the acquisition, financing, or
refinancing of equipment and other capital
improvements, including the introduction of new high-
speed technologies such as magnetic levitation systems,
track or signal improvements, the elimination of grade
crossings, development of intermodal facilities,
improvement of train speeds or safety, or both, and
station rehabilitation or construction), but only if
the Secretary determines that the projects are part of
a viable and comprehensive rail transportation corridor
design for intercity passenger service included in a
State rail plan under chapter 225 (except for bonds
issued under paragraph (1)(D)); and
(3) for a railroad passenger transportation corridor
not operated by Amtrak that includes the use of rights-
of-way owned by a freight railroad, a written agreement
exists between the applicant and the freight railroad
regarding such use and ownership, including
compensation for such use and assurances regarding the
adequacy of infrastructure capacity to accommodate both
existing and future freight and passenger operations,
and including an assurance by the freight railroad that
collective bargaining agreements with the freight
railroad's employees (including terms regulating the
contracting of work) shall remain in full force and
effect according to their terms for work performed by
the freight railroad on such railroad passenger
transportation corridor.
(b) Bond Amount Limitation.--
(1) In general.--The amount of bonds designated under
this section may not exceed in the case of section 54
bonds, $1,300,000,000 for each of the fiscal years 2006
through 2015.
(2) Carryover of unused limitation.--If for any
fiscal year the limitation amount under paragraph (1)
exceeds the amount of section 54 bonds issued during
such year, the limitation amount under paragraph (1)
for the following fiscal year (through fiscal year
2019) shall be increased by the amount of such excess.
(c) Project Selection Criteria.--The Secretary shall give
preference to the designation under this section of bonds for
projects selected using the criteria in chapter 244.
(d) Timely Disposition of Application.--The Secretary shall
grant or deny a requested designation within 9 months after
receipt of an application.
(e) Refinancing Rules.--Bonds designated by the Secretary
under subsection (a) may be issued for refinancing projects
only if the indebtedness being refinanced (including any
obligation directly or indirectly refinanced by such
indebtedness) was originally incurred by the issuer--
(1) after the date of the enactment of this section;
(2) for a term of not more than 3 years;
(3) to finance projects described in subsection
(a)(2); and
(4) in anticipation of being refinanced with proceeds
of a bond designated under subsection (a).
(f) Application of Conditions.--Any entity providing railroad
transportation (within the meaning of section 20102) that
begins operations after the date of the enactment of this
section and that uses property acquired pursuant to this
section (except as provided in subsection (a)(2)(B)), shall be
subject to the conditions under section 24405.
(g) Issuance of Regulations.--Not later than 6 months after
the date of the enactment of the Passenger Rail Investment and
Improvement Act of 2005, the Secretary shall issue regulations
for carrying out this section.
(h) Section 54 Bond Defined.--In this section, the term
`section 54 bond' means a bond designated by the Secretary
under subsection (a) for purposes of section 54 of the Internal
Revenue Code of 1986 (relating to credit to holders of
qualified rail infrastructure bonds).