[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).

                                  
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