[Senate Report 111-380]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 711

111th Congress                                                   Report
 2d Session                      SENATE                         111-380
_______________________________________________________________________



        SURFACE TRANSPORTATION BOARD REAUTHORIZATION ACT OF 2009

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 2889



                                     

               December 21, 2010.--Ordered to be printed


                             ______

                   U.S. GOVERNMENT PRINTING OFFICE

99-010                      WASHINGTON : 2010











       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred eleventh congress
                             second session

            JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii             KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts         OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota        JOHN ENSIGN, Nevada
BARBARA BOXER, California            JIM DeMINT, South Carolina
BILL NELSON, Florida                 JOHN THUNE, South Dakota
MARIA CANTWELL, Washington           ROGER F. WICKER, Mississippi
FRANK R. LAUTENBERG, New Jersey      GEORGE S. LeMIEUX, Florida
MARK PRYOR, Arkansas                 JOHNNY ISAKSON, Georgia
CLAIRE McCASKILL, Missouri           DAVID VITTER, Louisiana
AMY KLOBUCHAR, Minnesota             SAM BROWNBACK, Kansas
TOM UDALL, New Mexico                MIKE JOHANNS, Nebraska
MARK WARNER, Virginia
MARK BEGICH, Alaska
                     Ellen Doneski, Staff Director
                   James Reid, Deputy Staff Director
                     Bruce Andrews, General Counsel
                 Ann Begeman, Republican Staff Director
              Brian Hendricks, Republican General Counsel
                Todd Bertoson, Republican Senior Counsel









                                                       Calendar No. 711
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-380

======================================================================



 
        SURFACE TRANSPORTATION BOARD REAUTHORIZATION ACT OF 2009

                                _______
                                

               December 21, 2010.--Ordered to be printed

                                _______
                                

     Mr. Rockefeller, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 2889]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2889) to amend title 49, United 
States Code, to reauthorize the Surface Transportation Board 
and for other purposes, having considered the same, reports 
favorably thereon with an amendment (in the nature of a 
substitute) and recommends that the bill (as amended) do pass.

                          Purpose of the Bill

  The purpose of this legislation is to reauthorize the Surface 
Transportation Board for fiscal years (FYs) 2010 through 2014, 
and for other purposes.

                          Background and Needs

  The U.S. freight railroad industry has undergone a remarkable 
transformation since the enactment of the Staggers Rail Act of 
1980 (Staggers Act; P.L. 96	448), the last of a trio of acts 
passed between 1973 and 1980 that partially deregulated the 
U.S. railroad industry. In the decades preceding the enactment 
of the Staggers Act, railroads experienced traffic losses due 
in part to regulatory policies and procedures that prevented 
railroads from easily adjusting their rates to reflect changing 
market or cost environments, which led to financial strain in 
the industry, ultimately resulting in the bankruptcy of many 
railroads by the 1970s. The Staggers Act permitted railroads to 
have more freedom to set rates for rail service. More 
specifically, it permitted the railroads to charge lower rates 
to their customers who operate in a competitive environment and 
higher rates to customers who are ``captive'' to one railroad 
carrier for transportation service (i.e., demand-based 
differential pricing). The Staggers Act also lowered many 
regulatory barriers to help the railroads more easily 
rationalize their networks, such as decreasing the difficulty 
for railroads to abandon unprofitable lines. Despite these 
extensive regulatory changes, the Staggers Act still envisioned 
a role for the Federal government to ensure that captive 
shippers were not subject to unreasonable rates or poor service 
and invested the Interstate Commerce Commission (ICC), later to 
become the Surface Transportation Board (STB, or Board), with 
the authority to oversee the railroad industry.
  In the 30 years since the Staggers Act was enacted, the 
industry has evolved and the railroads' financial viability has 
improved. There have been numerous acquisitions and 
consolidations amongst the larger railroads and a proliferation 
of shortline railroads. The are currently seven Class I 
railroads\1\ (BNSF Railway Company, Canadian National Railway 
Company (Grand Trunk Corporation), Canadian Pacific (Soo Line 
Railroad Company), CSX Transportation Inc., Kansas City 
Southern Railway Company, Norfolk Southern Corporation, and 
Union Pacific Railroad) and approximately 550 Class II and 
Class III railroads. The industry has also increased its 
productivity, which was flat prior to the Staggers Act, but was 
up 172 percent from 1981 to 2009. As a result of the mergers 
and increased productivity, the number of Class I employees 
decreased from over 458,000 in 1980 to over 164,000 in 2008 and 
the number of road-miles decreased from 164,822 in 1980 to 
94,209 in 2008.\2\ The average Class I railroad's return on 
investment increased from 1978 when it was 1.52 percent to 10.7 
percent in 2008. Since the 1980s, the Class I proportion of 
total industry freight revenue has remained relatively constant 
in the mid-90 percent range versus single digit percentage of 
total revenues for Class II and Class III railroads.
---------------------------------------------------------------------------
    \1\The Surface Transportation Board annually classifies railroads 
based on annual operating revenues reported from railroad carriers; in 
2009, those thresholds were Class I, $379 million or more, Class II, 
$30 million or more, Class III, less than $30 million.
    \2\``Railroad Facts, 2009 Edition,'' Association of American 
Railroads, pgs. 56,45.
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  For the majority of this same time period, railroad rates 
charged to most shippers largely declined; however, rates began 
to rise in 2001 with significant increases in recent years, 
particularly in 2008. According to the Christensen Associates 
report discussed in greater detail below, in the two-year 
period between 2007 and 2008, real revenue per ton-mile for the 
industry increased by about 12 percent. However, certain 
industries--coal and chemicals in particular--experienced above 
average increases. Additionally, railroads have also begun to 
shift costs to some shippers, including costs for fuel 
surcharges, car ownership, and liability costs. Furthermore, 
captive shippers have increasingly complained about the lack of 
competitive access and poor service from railroads.
  The U.S. freight railroad industry remains important to the 
success of the nation's economy and global competitiveness 
because the railroads play a key role in overall U.S. freight 
shipments, with some commodities particularly dependent on rail 
transportation. For example, 70 percent of domestically-
produced automobiles, 70 percent of coal delivered to power 
plants, and about 35 percent of the U.S. grain harvest move by 
rail.\3\ Since 1980, railroads have captured an increasing 
share of U.S. freight shipments. Railroads accounted for about 
27 percent of the ton-miles of U.S. freight movements in 1980, 
and that number increased to 42.7 percent in 2007. Because of 
the reliance of certain shippers on the freight rail industry 
and the overall importance of the rail industry to the U.S. 
economy, policy changes affecting oversight of the railroad 
industry are essential to ensure a proper balance between the 
needs of the railroads and the users of their systems.
---------------------------------------------------------------------------
    \3\``Railroad Facts, 2009 Edition,'' Association of American 
Railroads, p. 18.
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SURFACE TRANSPORTATION BOARD

  The STB is the agency charged with overseeing the economic 
regulation of the rail industry. It is a three-member, 
bipartisan, independent board administratively housed within 
the Department of Transportation (DOT). The STB was established 
by the ICC Termination Act of 1995 (ICCTA; P.L. 104	88). During 
the 15 years following passage of the Staggers Act, the ICC--
which was responsible for administering the Staggers Act--was 
significantly downsized. The ICCTA continued the deregulatory 
theme of the preceeding 15 years and repealed or eliminated 
certain authorities granted to the ICC, dissolved the ICC, and 
assigned many of the ICC's remaining economic regulatory 
authorities to the Board.
  The Board's responsibilities include jurisdiction over 
railroad rate and service issues and rail restructuring 
transactions (mergers, line sales, line construction, and line 
abandonments). In addition, the STB has jurisdiction over 
other, non-rail matters pertaining to certain trucking company, 
moving van, and non-contiguous ocean shipping company rate 
matters; certain intercity passenger bus company structure, 
financial, and operational matters; and rates and services of 
certain pipelines not regulated by the Federal Energy 
Regulatory Commission.
  Additionally, the Board's responsibilities were expanded 
under the Passenger Rail Investment and Improvement Act of 2008 
(PRIIA; P.L. 110	432) to include authority to investigate the 
causes of delays to passenger trains and to mediate disputes 
between commuter rail authorities and freight railroads 
regarding commuter rail use of freight railroad tracks and 
rights-of-way. The Clean Railroads Act of 2008 (P.L. 110	432) 
also clarified the Board's authority with regard to solid waste 
rail transfer facilities and the issuance of land-use exemption 
permits.
  Through its annual budget requests, the Board has 
consistently sought additional staffing and funds to allow the 
Board to carry out the new statutory responsibilities as well 
as meet the increased demands of its rail economic regulatory 
responsibilities. In FY 2009, the Board employed 141 full-time 
equivalents at its headquarters office in Washington, D.C., to 
implement its responsibilities. From 2008 through 2010, more 
shippers filed rail rate disputes than in previous years and 
the STB's workload related to these disputes has increased.
  Congress has not enacted comprehensive legislation to 
reauthorize the Board in the 12 years since the STB's 
authorization expired in 1998. However, as discussed above, the 
railroad industry has continued to experience changes that 
began following passage of the Staggers Act, and there is 
continued concern that the Board's authorities granted in ICCTA 
are not sufficient to keep pace with these changes. This bill 
is intended to make the Board's authorities consistent with the 
needs of the railroad industry today and to prepare it to 
better address the needs of the rail industry in the future.

RECENT FINDINGS ON RAIL COMPETITION AND SERVICE

  Congressional interest in ensuring the appropriate balancing 
of railroad and shipper interests, and the continued viability 
and ability of the railroad industry to fulfill demands for its 
services, has led the U.S. Government Accountability Office 
(GAO) to issue several reports on the railroad industry since 
the passage of the Staggers Act. In 2006, the GAO reported that 
while rates have declined since 1985, they have not done so 
uniformly, and rates for some commodities are significantly 
higher than rates for others. It also found that the railroads 
have shifted other costs, such as fuel surcharges, to shippers, 
and the STB has not collected sufficient data to accurately 
monitor the revenues the railroads have raised from some of 
these charges. GAO also reported that concerns about 
competition and captivity in the industry remain because 
traffic is concentrated in fewer railroads, but it was 
difficult to determine how many shippers are captive because 
the Board does not accurately collect such railroad revenue 
data. While the GAO found that the extent of captivity appears 
to be dropping, the percentage of industry traffic traveling at 
rates substantially over the statutory threshold for seeking 
rate relief has increased. The GAO concluded that its findings 
may reflect reasonable economic practices by the railroads in 
an environment of excess demand, or a possible abuse of market 
power.\4\
---------------------------------------------------------------------------
    \4\GAO, ``Freight Railroads: Industry Health Has Improved, but 
Concerns about Competition and Capacity Should Be Addressed,'' (GAO-07-
94) 2006.
---------------------------------------------------------------------------
  Based on its observations, the GAO recommended that the STB 
conduct an analysis of the state of U.S. railroad competition 
and consider the range of actions available to address problems 
associated with the potential abuse of market power. In 
response, the STB contracted with Christensen Associates to 
complete an analysis of the state of competition in the U.S. 
railroad industry.
  In 2008, Christensen Associates released its report and 
issued subsequent revisions in November 2009 and January 
2010.\5\ The report found that weak reporting and data 
collection by the Board prevented a stronger analysis of 
ongoing shipper concerns, such as effective competition, 
service quality, shifting of costs from railroads to shippers, 
captivity and network access, capacity and demand, and fuel 
surcharge issues. The report recommended the Board collect 
additional data to evaluate such concerns. The report also 
recommended the Board take additional steps to address 
complaints, including reporting complaint statistics on its 
website, to better identify and help rectify service quality 
issues. Christensen Associates also found a weak relationship 
between revenue to variable cost (R/VC) ratios and market 
structure factors, making it difficult to correctly assess the 
presence of market-dominant behavior and recommended a better 
empirical understanding of the economic dimensions of rail 
shipper captivity.
---------------------------------------------------------------------------
    \5\Christensen Associates, ``A Study of Competition in the U.S. 
Freight Railroad Industry and Analysis of Proposals that Might Enhance 
Competition,'' November 2008. The STB asked that Christensen revise the 
reports to make corrections to the initial report using corrected 
masked versus unmasked customer waybill sample data and updated data 
from 2007 and 2008.
---------------------------------------------------------------------------
  Finally, the report makes recommendations about policy 
changes that would have a positive impact by increasing 
competition. The report advocates that the current structure 
and performance of the railroad industry would favor reciprocal 
switching and terminal access agreements with STB oversight. It 
also advocates the increased use of arbitration to improve the 
functioning of private markets, as long as the arbitrators are 
conversant in the complexities of railroads economics. It also 
cautions that a potential challenge in implementing policy 
changes would be establishing the details of access terms and 
pricing in a manner that promotes economic efficiency and 
prevents economically harmful outcomes.

COMPETITIVE ACCESS

  Currently, the STB has the statutory authority to mandate 
three competitive access remedies to complaining shippers or 
carriers in certain circumstances; however, ICC regulatory and 
judicial decisions have made it very difficult for shippers to 
succeed in challenges to receive such remedies. In fact, 
shippers have not filed cases requesting such remedies because 
some perceive that they will be unsuccessful in any challenge. 
The first form of access is a bottleneck rate, whereby the 
Board can order an incumbent railroad to interline traffic with 
another railroad and provide a through route and through rate 
for that traffic if that route is more efficient or economic 
than the incumbent route. The second form of access is a 
reciprocal switching arrangement, whereby the incumbent 
railroad, for a fee, must transport the cars of a competing 
carrier, enabling the latter carrier, even though it cannot 
physically serve the shipper's facility, to offer a single-line 
rate to compete with the incumbent's single-line service. The 
third form of access is a terminal trackage rights arrangement, 
whereby the incumbent railroad, for a fee, must permit physical 
access over its lines to the trains and crews of a competing 
carrier.
  The STB has ruled that railroads are not required to provide 
rates for the bottleneck segments pursuant to the railroads' 
discretion to set rates and specify routes (Central Power & 
Light Co. v. Southern Pacific Transportation Co., et al., 1 STB 
1059 (1996), modified in part, 2 STB 235 (1997), aff'd sub nom. 
MidAmerican Energy Co. v. STB, 169 F.3d 1099 (8th Cir. 1999), 
cert. denied, 528 U.S. 950). The Board determined that it was 
precluded from requiring a railroad to provide service on a 
portion of its route when the railroad serves both the origin 
and destination points and provides a rate for such movement. 
STB requires a railroad to provide service for the bottleneck 
segment only if the shipper had prior arrangements or a 
contract for the remaining portion of the shipment route. In 
practice, however, shippers report that the non-bottleneck 
railroad has generally not been willing to enter into a 
contract with a shipper under these circumstances or has 
provided a rate for service that is so high that it is not 
economically feasible for the shipper to accept the rate 
offered.
  Although access to more routing options could provide 
additional competition to captive shippers, the ICC ruled in 
Midtec Paper Corp. v. Chicago & N.W. Transp. Co. (3 I.C.C.2d 
171 (1986), aff'd sub nom. Midtec Paper Corp. v. United States, 
857 F.2d 1487 (D.C. Cir. 1988)) that it is not required to 
provide these access remedies on demand; a showing of need is 
required. The ICC decided that before it would order a railroad 
to provide access to another, a shipper must first demonstrate 
that the incumbent railroad has engaged in anticompetitive 
conduct by showing that the railroad has either (1) used its 
market power to extract unreasonable terms or (2) shown a 
disregard for the shipper's needs by rendering inadequate 
service because of its monopoly position. Many captive shippers 
contend that the anticompetitive conduct standard is too 
onerous, effectively precluding use of the competitive access 
remedy in an increasingly consolidated rail industry.

RATE CHALLENGES

  All railroads providing transportation or service subject to 
the jurisdiction of the STB have a common carrier obligation to 
provide reasonable service upon reasonable request. A railroad 
can fulfill this obligation through contract carriage; however, 
the Board does not have jurisdiction over rail transportation 
that moves under contract.
  The STB can review the reasonableness of a common carrier 
rail rate only upon complaint if the railroad has market 
dominance. A railroad is considered market dominant if there is 
an absence of effective competition from other rail carriers or 
other modes of transportation for the transportation to which 
the rate applies. To determine whether these conditions exist, 
the Board examines whether the rate a railroad charges produces 
a Revenue to Variable Cost (R/VC) ratio above 180 percent for 
it to provide service and whether there are no feasible 
transportation alternatives for the traffic involved.
  If the STB determines that a railroad has market dominance 
over a transportation service, then the applicable rate for 
that transportation service must be reasonable. The rate is 
considered unreasonable if the STB determines the revenues from 
the transportation service unreasonably exceed the long-run 
marginal cost of handling the traffic. If the Board determines 
that the rate is unreasonable, then it may order reparations 
for past shipments as far back as two years from the time of 
the complaint and establish a rate prescription for the maximum 
allowable rate for future shipments. Until 2007, the only 
viable means for challenging rates was pursuant to the stand-
alone cost (SAC) analysis, which requires a complainant to 
construct a hypothetical stand-alone railroad (SARR) to provide 
the challenged service. If the complainant can show that the 
revenue requirements of the SARR are less than the revenue 
requirements of the challenged railroad to serve the contested 
traffic group, then the STB must determine the appropriate rate 
relief.
  Shippers indicate that they have been reluctant to file rate 
challenge cases because of the high costs and length of time it 
takes the Board to decide the cases. In fact, the Board 
estimates that a SAC case can cost up to $5 million and take 
3.57 years on average to complete. Shippers have also expressed 
concern that, in addition to litigation fees, they must 
continue to pay the challenged rate while the case is being 
adjudicated. Some smaller shippers, such as agricultural 
shippers, contend that the cost of challenging a rail rate 
using even the simplified rate methods is too high for the 
value of the cases they are contesting, thereby limiting the 
value of these methods to challenge a rail rate. The GAO 
reported in 2006 that the Board's processes to challenge a rail 
rate have proven to be largely inaccessible because the 
standard process is expensive, time consuming, and complex.
  In 2007, the Board revised its SAC test to help reduce the 
cost and complexity of challenging a rail rate under that test. 
It also created two simplified and expedited methods for 
determining the reasonableness of challenged rail rates for 
cases where a full SAC presentation is too costly. These two 
methods, the Three-Benchmark test and the simplified SAC (SSAC) 
test, may be used to contest cases under $1 million and under 
$5 million, respectively.

INTERCHANGE COMMITMENTS

  The Staggers Act eased the requirements for rail carriers to 
obtain the necessary approval to abandon, sell, or lease a rail 
line, thereby helping Class I railroads shed unprofitable lines 
or spin them off to smaller railroads (shortlines or Class II 
or Class III railroads) that could operate the lines at a lower 
cost. Shortlines generally serve small-volume shippers and thus 
have an incentive to give specialized attention to the needs of 
the shippers on their lines. Offering better service, some 
shortlines have been able to attract new traffic to the lines.
  Many of the line spin-off transactions contained contractual 
provisions that limit the incentive or ability of the shortline 
railroad to interchange traffic with other connecting carriers 
that could compete with the selling or leasing Class I railroad 
for the long-haul portion of a movement. These interchange 
commitments, also called paper barriers, took varying forms, 
including credits for cars interchanged with the selling or 
leasing Class I railroad, a penalty for traffic interchanged 
with another railroad, or a total ban on interchanging traffic 
with any carrier other than the selling or leasing Class I 
railroad.
  Often, these interchange commitments played an important role 
in the establishment of shortline railroads because they 
enabled the start-ups or very small companies to purchase or 
lease rail lines with little or no upfront capital investment. 
The Class I railroads were generally willing to sell or lease 
these lighter-density lines at reduced prices because they were 
assured of retaining a portion of the revenues from the traffic 
on those lines. Although the terms of interchange commitments 
are varied, the Board has the authority to review them to 
ensure that they are in the public interest, and is currently 
reviewing a challenge to one particular paper barrier.
  In 2008, the Board amended its guidelines to require parties 
seeking authorization for the sale or lease of a railroad line 
to: (1) identify the presence of any interchange commitment and 
the interchange points that are affected by it; and (2) submit 
a copy of the full agreement to the Board. The new regulations 
also provide a procedure whereby a shipper or other affected 
party may obtain access to information regarding an existing 
interchange commitment to pursue its rights under the statute. 
The new regulations were adopted to facilitate the Board's 
monitoring and case-specific review of challenges to 
interchange commitments.
  The U.S. Department of Agriculture (USDA), representing the 
interests of farmers and agricultural shippers, has argued that 
interchange commitments can interfere with the ability of 
agricultural shippers to obtain the best prices for their 
products, and otherwise increase their transportation costs.\6\ 
The USDA advocates clear guidelines regarding the legality of 
interchange commitments and modification of existing 
interchange commitments to permit unrestricted interchange. 
Clear statutory guidance for the Board could permit additional 
challenges to existing paper barriers.
---------------------------------------------------------------------------
    \6\U.S. Department of Agriculture, ``Study of Rural Transportation 
Issues,'' April 2010, p. 518.
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MERGERS AND ACQUISITIONS

  The Board has exclusive authority to review and approve any 
proposed consolidation, merger, or acquisition of control 
between two or more railroads. Board-approved consolidations 
are not subject to challenge under the antitrust laws, 
including State and municipal law, as necessary to let that 
rail carrier, corporation, or person carry out the transaction, 
hold, maintain, and operate property, and exercise control of 
franchises acquired through the transaction.
  There are two separate standards the Board must use to 
consider an application for the consolidation, merger, or 
acquisition of control between two or more railroads, depending 
on the class of railroads in the application. For transactions 
involving two Class I carriers, the Board is required to 
approve a transaction if it is in the public interest, after 
considering several elements, including: (1) the effect of the 
proposed transaction on the adequacy of transportation to the 
public; (2) the effect on the public interest of including, or 
failing to include, other rail carriers in the area involved in 
the proposed transaction; (3) the total fixed charges that 
would result from the proposed transaction; (4) the interest of 
rail carrier employees affected by the proposed transaction; 
and (5) whether the proposed transaction would have an adverse 
effect on completion among rail carriers in the affected region 
or the national rail system. For transactions that do not 
involve at least two Class I railroads, the Board is required 
to approve the transaction unless it finds that (1) as a result 
of the transaction, there is likely to be substantial lessening 
of competition, creation of a monopoly, or restraint of trade 
in freight surface transportation in any region of the United 
States; and (2) the anticompetitive effects of the transaction 
outweigh the public interest in meeting significant 
transportation needs.

EXEMPTIONS

  Today, there are a number of active, specified commodity and 
class exemptions authorized by the Board. These exemptions were 
initially authorized for commodities or classes of traffic that 
were presumed to be competitive, such as intermodal traffic. 
Many agricultural products are exempt, although carriers must 
continue to comply with STB accounting and reporting 
requirements and must maintain copies of rates, charges, rules, 
or regulations for traffic moved under an exemption. A wide 
range of other commodities, such as automobiles, cement, and 
paper, are also exempt; however, these commodities are not 
exempt from existing regulations regarding the use of equipment 
or from the antitrust laws necessary to negotiate car service 
regulations or equipment interchange.
  Currently, the Board is required to exempt rail carrier 
transportation from its oversight ``to the maximum extent'' 
whenever regulation is not necessary to carry out the rail 
transportation policy and either when the transaction is 
limited in scope, or when regulation is not needed to protect 
shippers from the abuse of market power. Congress included this 
provision in the Staggers Act because it had identified broad 
areas of commerce where reduced regulation was clearly 
warranted, yet believed the administrative process was more 
appropriate to determine how to apply the regulatory provisions 
and practices in a manner consistent with the policies of the 
Act.

                         Summary of Provisions

  S. 2889, the Surface Transportation Board Reauthorization Act 
of 2009, (STB Act or S. 2889) as reported, would reauthorize 
the Board for a period of five years, from FYs 2010 through 
2014. The authorization levels are intended to fund the Board's 
activities through the authorization period, including the 
studies required by the STB Act and technology upgrades to 
improve the efficiency of the Board's operations. The STB Act 
is designed to authorize Board activities based on three 
themes: improving shipper access to the Board, strengthening 
the Board's ability to conduct oversight of the railroad 
industry, and increasing competition in the railroad industry.
  S. 2889 would formally establish the Board as an independent 
agency by removing it from its administrative affiliation with 
the DOT. The current arrangement has provided little to no 
financial or administrative benefit for the Board, and in some 
instances permits the DOT the ability to extract resources from 
the Board. This change would allow the Board to devote a 
greater amount of its resources to fulfilling its regulatory 
responsibilities. The STB Act would also make conforming 
changes to ensure the DOT Inspector General (IG) retains its 
authority to review the Board's administrative activities. This 
oversight authority would mirror the DOT IG's authority over 
the National Transportation Safety Board. It would also make 
conforming changes to clarify that the Board shall continue to 
submit its own budget.
  The STB Act would also increase Board membership from three 
to five members to make it consistent with other independent 
Federal agencies and boards, such as the Federal Maritime 
Commission and the Federal Communications Commission, and to 
improve the efficiency of its operations. This change would 
primarily permit Board members to work with one another outside 
of publicly-announced meetings, which they are currently 
prevented from doing because of the Government in the Sunshine 
Act requirements. Currently, these restrictions empower Board 
staff to have discussions related to Board matters, while 
members are generally precluded from communicating directly 
similarly. It would also provide the opportunity for a greater 
range of representation of interests and expertise to inform 
Board decisions.
  The STB Act would also limit the amount a party must pay for 
filing a formal complaint. The filing fee would not be higher 
than the fee to file a civil action in a district court in the 
United States, which is currently $350. This would make 
permanent the limitation on the amount of filing fees for rate 
complaints that were included in the FYs 2008, 2009, and 2010 
appropriations laws and expand that limitation to other formal 
complaints brought before the Board, such as unreasonable 
practice complaints.
  To ensure that shippers and other rail industry entities 
continue to have access to the Board's Office of Public 
Assistance, Governmental Affairs, and Compliance (OPAGAC), the 
STB Act would codify OPAGAC and clarify its authority in 
mediating rail disputes, monitoring rail carrier operations, 
acting as the Board's point of contact with public and private 
entities, and facilitating communication among stakeholders. 
The Committee intends for OPAGAC's monitoring of rail 
operations to help it better understand trends in the rail 
industry. The Committee does not intend to confer independent 
enforcement rights on OPAGAC.
  Further, to assist rail customers in navigating the Board's 
processes and procedures, the STB Act would establish a Rail 
Customer Advocate as a resource for rail customers. The 
Advocate would be responsible for investigating customer 
complaints, among other responsibilities. While S. 2889 would 
establish the Customer Advocate under the OPAGAC to allow for 
sharing administrative resources, the Committee intends the 
Advocate to report directly to the Board, as opposed to the 
Director of OPAGAC, to ensure that the Advocate remains 
insulated from other OPAGAC activities and serves as an 
independent resource for rail shippers.
  S. 2889 would also make changes to the Railroad-Shipper 
Transportation Advisory Council (RSTAC) to make its activities 
more transparent and effective by subjecting it to the Federal 
Advisory Committee Act and requiring it to issue annual 
recommendations. It would also update the composition of the 
Council to specify the type of experience that should be held 
by the ninth-voting member.
  Currently, the Board may only initiate an investigation upon 
complaint. S. 2889 would authorize the Board to begin an 
investigation on its own initiative, an authority that was 
previously vested in the ICC. The STB Act would not authorize 
the STB to investigate rate cases and prosecute them on behalf 
of a particular shipper; it would still be the responsibility 
of each shipper to file rate complaints when a shipper believes 
that the rate that has been quoted is unreasonable. The 
Committee intends that this reinstated authority would permit 
the Board to investigate matters of industry-wide applicability 
and, if a violation is found, take appropriate action to remedy 
such violations. The Committee also recognizes that the STB 
currently has the authority to issue an injunctive order when 
necessary to prevent irreparable harm, pursuant to 49 U.S.C. 
721 (b)(4). The Committee encourages parties to request, and 
that the Board order, such injunctive relief in appropriate 
circumstances.
  S. 2889 would update the current rail transportation policy 
(RTP). Congress established the RTP to guide the ICC, and its 
successor, the STB, in its duties in regulating the railroad 
industry. The bill would update this policy to make it more 
consistent with the needs of the railroad industry and shippers 
today and in the future because the nature of the industry has 
changed significantly in the 30 years following enactment of 
the Staggers Act.
  One of the bill's revisions to the RTP would direct the Board 
to balance each of the objectives in carrying out its statutory 
responsibilities. S. 2889 separates certain objectives of the 
current policy into individual objectives as well as includes 
new objectives to reflect the current needs of the industry. 
One of these changes splits a current objective for the Board 
to promote a safe and efficient rail transportation system by 
allowing rail carriers to earn adequate revenues to bring equal 
attention for the need to promote a safe and efficient system 
and the need for the railroad to earn adequate revenues. This 
revision is not intended to expand the Board's safety 
jurisdiction. Further, the objective to ensure that rail 
carriers can earn adequate revenues to maintain and expand rail 
infrastructure is intended for the Board to consider the need 
for the rail industry to meet the nation's rail transportation 
needs. The Committee also expects the Board to consider the 
needs of all users of the rail system and to foster intercity 
and commuter rail passenger service consistent with national 
rail planning efforts. Finally, the policy recognizes the need 
to protect shippers in the absence of effective competition and 
to prohibit predatory pricing and practices.
  The STB Act would also amend the Board's authority with 
regard to granting exemptions. Currently, any rail customer 
that is exempt from oversight from the Board has the ability to 
file a request with the Board to revoke the exempt status. 
However, the Committee is informed that some shippers have been 
reluctant to file such request with the Board because they 
believe the language in 49 U.S.C. 10502 requires the Board to 
exempt as much traffic as possible and that the Board has acted 
accordingly, thus leaving those shippers to conclude a request 
to revoke an exemption likely to not be approved. The STB Act 
would amend the standard for granting an exemption to remove 
the language ``to the maximum extent consistent with this 
part'' and expects the Board will continue to conduct thorough 
reviews of all exemption applications to determine if they meet 
the criteria in 49 U.S.C. 10502. S. 2889 would also amend the 
standard for revoking an exemption to make clear that the Board 
may revoke an exemption to protect shippers from an abuse of 
market power. S. 2889 would also require the Board to conduct a 
comprehensive review of all current commodity class exemptions 
to determine if any such exemptions should be revoked pursuant 
to 49 U.S.C. 10502 (d). The Committee expects the Board to take 
appropriate action with respect to such exemptions based on its 
analysis. The Committee also expects the STB to establish a 
process for periodic review of such class exemptions.
  S. 2889 would direct the Board to undertake a number of 
studies to address concerns raised by industry stakeholders, 
including needed updates to the uniform rail costing system 
(URCS), the use of replacement costs in Board proceedings, the 
use of certain rail practices, the effect of rail car 
interchange rules and their effect on the national rail system, 
and guidance on how to apply the revenue adequacy constraint. 
The Committee expects the Board to conduct these studies in a 
neutral, fact-based manner so as to not predetermine their 
outcomes. Further, the Committee expects the Board to provide 
an opportunity for public comment for each of the studies. The 
Committee also encourages the Board to initiate further 
proceedings or rulemakings to respond to or implement 
recommendations resulting from these studies.
  The Committee also expects that as part of the URCS study, 
the Board consider a broad range of information submitted by 
industry stakeholders to ensure that any updates to URCS are 
fair, reasonable, and flexible to meet future changes to the 
rail industry. Until the Board updates URCS, S. 2889 would 
permit parties to make reasonable movement-specific adjustments 
to the variable costs calculated by URCS in full SAC cases. It 
would also permit the Board to develop a one-time adjustment 
factor to adjust variable costs in rate prescriptions 
determined under any procedures changed as a result of this 
study's findings to equal those that would have been obtained 
under prior procedures. The Committee also expects the Board to 
use these studies as an opportunity to address more thoroughly 
longstanding concerns, such as those related to coal dust 
issues.
  S. 2889 would codify the STB's current standards for the 
review of interchange agreements/paper barriers. There is 
concern that some of these agreements have impeded competition 
by prohibiting shortline or regional railroads from 
interchanging traffic with other railroads, thereby prejudicing 
shippers. Some shippers have argued that all paper barriers 
should be deemed to be in violation of Federal law and be 
terminated. However, because each paper barrier is unique and 
the Committee has not undertaken a comprehensive examination of 
all existing paper barriers, the Committee has several concerns 
about making such a sweeping determination. The Committee also 
has concerns about the effect such determination would have on 
the existence of smaller railroads and the shippers that they 
serve, which are generally the primary beneficiaries of such 
paper barrier arrangements. Therefore, to provide for an 
orderly review, the STB Act would require the Board to maintain 
a process by which paper barriers can be reviewed and clarify 
that the Board has the authority to take appropriate actions to 
remedy conflicts between a paper barrier and the provisions of 
49 U.S.C Subtitle IV Part A. Further, S. 2889 would provide a 
mechanism for a shortline to purchase the terms of a paper 
barrier and provide a means of financial assistance from the 
DOT should it be necessary for the shortline to execute the 
purchase.
  S. 2889 would overturn the mid-1980s Midtec Paper decisions 
discussed above, which govern mandated reciprocal switching and 
terminal access (which refer to activities where one railroad 
operates on the facilities of another railroad). Many rail 
shippers have been reluctant to file cases to resolve 
reciprocal switching and terminal access concerns due to 
Midtec's requirement of having to prove that a railroad is 
engaged in anti-competitive conduct. S. 2889 would restructure 
the statutory language governing reciprocal switching and 
terminal access by creating a new statutory provision and 
revising an existing provision, which is discussed more below. 
S. 2889 would also combine the requirements for mandated 
reciprocal switching in terminal areas with those for quoting 
bottleneck rates.
  The STB Act would require a Class I rail carrier, or other 
rail carrier the Board determines appropriate, to quote a 
bottleneck rate to a shipper over which they have market 
dominance. This provision is intended to cover situations 
related to traditional bottleneck rate cases and those that are 
considered reciprocal switching cases currently addressed by 49 
U.S.C. 11102. The Committee notes that although the STB would 
be given the authority to apply the bottleneck rate provision 
to Class II and Class III railroads because of the possibility 
that it may be warranted in certain circumstances, it also 
encourages the STB to use such authority cautiously to prevent 
abuse or an ultimate lessening of competition for all shippers. 
If there is a question about whether a rail carrier has market 
dominance over certain transportation, it is incumbent on the 
rail carrier to request an expedited market dominance 
determination from the Board. Although the bill does not 
specify how the Board should make such an expedited 
determination, the Committee expects the Board to establish a 
method to resolve such concerns in no more than 60 days. Rail 
carriers have also expressed concern that being required to 
quote a rate to a shipper before the question of market 
dominance is resolved would create significant logistical 
difficulties. The Committee expects that this expedited process 
will also resolve concerns over whether rail carriers can abuse 
the provision by refusing to quote a rate to a rail customer by 
failing to seek an expedited determination.
  This provision would also require the Board to establish and 
maintain standards for determining whether a bottleneck rate is 
reasonable. The Committee evaluated several different 
mechanisms for establishing reasonable bottleneck rates; 
legislative language is provided to guide the Board in 
establishing its standards. The Committee recognizes also that 
to maintain the national rail system, in most instances, rail 
carriers need to receive a reasonable contribution to their 
network infrastructure costs as part of a bottleneck rate. In 
determining what a reasonable network contribution would be to 
maintain the national rail network, the Committee encourages 
the Board to examine a broad range of economic principles, 
studies related to bottleneck rates, network access charges in 
other closed network systems, and existing Board rate 
reasonableness information. While the Committee expects the 
Board to find some level of network infrastructure contribution 
to be reasonable in most circumstances, the Committee can also 
envision scenarios where such network infrastructure 
contributions could be phased out over time as traffic on a 
particular line varies or increases, as well as scenarios where 
no infrastructure contribution is necessary at all. Because the 
Board's standards are anticipated to be relatively 
prescriptive, the Committee expects the rate challenge process 
to be a relatively low-cost, expedited process as well.
  Finally, the Committee encourages good faith actions on 
behalf of both rail carriers and shippers in complying with and 
using this provision. For example, the Committee believes that 
it would be unreasonable for a shipper to request that a rail 
carrier quote an exorbitant number of bottleneck rates over 
multiple interchanges that meet the statutory definition 
because such a request could create significant logistical 
difficulties for the rail carrier to comply. By encouraging 
such good faith behavior, the Committee intends to prevent any 
attempts to manipulate the statutory language to reach 
unreasonable or unfair results that would inordinately benefit 
one party over another, which goes beyond the intent of the 
provision to create opportunities for shippers who have no 
competition to have access to a competing rail carrier.
  On a related issue, the definition of market dominance in 49 
U.S.C. 10707 says that a rail carrier is considered to be 
market dominant if there is ``an absence of effective 
competition from other rail carriers or modes of transportation 
for the transportation to which a rate applies.'' However, 
several shippers have complained that Class I rail carriers 
fail to compete with one another. For example, where two rail 
carriers have access to serve a particular shipper, they fail 
to compete with one another by the non-incumbent carrier 
offering a rate so exorbitantly high that the shipper has no 
reasonable, cost-effective choice but to continue to use the 
incumbent carrier. Rail carriers, on the other hand, argue that 
they vigorously compete with one another in such circumstances. 
Although the STB Act makes no changes to 49 U.S.C. 10707 to 
address specifically the concerns raised, the Committee 
encourages the Board to use sufficient scrutiny to ensure that 
rail carriers are effectively competing with one another.
  Terminal access is an approach where a railroad would grant 
access of its tracks and terminal facilities to another 
railroad. As mentioned above, S. 2889 would provide clarity to 
when the Board should require terminal access and establish the 
pricing mechanism for that access. It would direct the Board to 
establish a pricing mechanism similar to what the Board would 
be required to establish for the quoting of bottleneck rates.
  The Committee recognizes the long-standing concerns of 
shippers, such as agricultural producers, about the economic 
and other challenges of bringing complaints before the Board. 
The STB has established provisions intended to govern the 
binding, voluntary arbitration of certain disputes subject to 
the Board's jurisdiction. However, the STB's current process 
has never been used, possibly because both parties in a dispute 
must agree to use it. As part of the Committee's efforts to 
address ongoing small shipper concerns, S. 2889 would allow the 
Board to direct certain rail rate, practice, and common carrier 
service expectation disputes to be resolved by an arbitrator. 
S. 2889 would make this process more accessible by allowing a 
shipper to request that the Board direct a dispute to binding 
arbitration, either upon complaint or following informal 
mediation. The Committee expects the Board to make the 
arbitration process available when the potential damages from 
the complaint do not warrant the Board's more expensive 
resolution methods, such as the Three Benchmark rate challenge 
method. The arbitration process is not intended to be used to 
resolve policy questions of industry-wide application or to 
supplant the Board's responsibility to implement a national 
uniform rail policy.
  To further improve the STB's rate challenge process, S. 2889 
would amend the STB's simplified rate case processes to 
increase the value of what may be awarded under the Three 
Benchmark and SSAC methods to $1.5 million and $10 million, 
respectively. This would make 84 percent of all regulated 
traffic eligible for rate dispute resolution under these two 
methods, and decrease the time, costs, and complexity of 
challenging a rate for a larger amount of regulated traffic. 
The Committee believes the STB's SAC test is an expensive, 
lengthy, and complicated method to challenge the reasonableness 
of rail rates, and expects the Board to ensure the method is as 
accessible and cost effective as possible. The STB Act would 
also permit the Board to consider the reasonableness of a rate 
quoted up to one year before the date that the rate is to take 
effect. It would also establish a timeline for adjudication of 
SAC rate challenges to limit the process and decision-making 
time to 18 months, which is significantly faster than the 
current average of over three and one-half years.
  S. 2889 would make several improvements to the Board's 
ability to monitor and resolve service concerns. For example, 
it would require that railroads provide service expectation 
ranges to shippers for any common carrier rate that they 
provide to shippers. The Committee does not believe that this 
would affect a shipper's ability to challenge unreasonable 
service at the Board, but the inclusion of these service 
expectation ranges would provide shippers with a better 
understanding of the service they can expect to receive and 
would also help the Board better monitor service issues. The 
STB Act would also require railroads to report to the STB 
certain performance metrics and data so that the Board can 
better oversee service issues that may arise in the industry. 
It would also require the Board to maintain a database and to 
publish on its website a compilation of informal and formal 
service complaints, without identifying the complainant, to 
provide more transparency to the users of the rail system and 
the public about rail service issues.
  S. 2889 would require mergers and acquisitions between a 
Class I and Class II (a regional or short line) rail carrier to 
receive the same level of scrutiny that transactions between 
two Class I carriers currently receive. Because there are only 
seven Class I railroads, transactions between Class I and Class 
II carriers have an increased importance and deserve additional 
scrutiny. The bill would also clarify the STB's authority to 
consider the potential effects of a particular merger or 
acquisition on public health, safety, and the environment, and 
intercity rail passenger transportation and commuter rail 
passenger transportation. It would also eliminate the Board's 
oversight of certain rate agreements that have been exempt from 
Federal antitrust laws, which would take effect two years after 
the date of enactment of the STB Act.
  The STB Act would also make several statutory clarifications 
and improvements to the Board's authority, such as making clear 
that the Board has the authority to act on adverse abandonment 
complaints and may apply conditions to the sale or lease of 
abandoned properties being used for public purposes. The bill 
would also place a five-year time limit on right of first 
refusal in the resale of properties that were purchased 
pursuant to 49 U.S.C. 10907, and clarify that the Board has the 
authority to extend emergency service orders until the 
emergency has ended.
  S. 2889 would require the GAO to review the progress of the 
STB in implementing the bill and assess the impact of the 
regulatory changes made by the STB Act on the rail 
transportation system. The Committee anticipates that this 
review and assessment will help inform the Committee prior to 
the expiration of the authorization of the STB Act.
  The STB Act makes several purely technical corrections to the 
Rail Safety Improvement Act of 2008 and the Passenger Rail 
Investment and Improvement Act of 2008.
  The STB Act would also amend the Board's authority to 
investigate pipeline matters on its own authority as opposed to 
only on complaints, similar to the change made for its rail 
investigative authority. To establish regulatory certainty over 
which Federal agency has the authority to regulate carbon 
dioxide pipelines, the bill would subject carbon dioxide 
pipelines to the authority of the Board. Finally, it would 
require the GAO to complete a study to examine the regulatory 
framework for carbon dioxide pipeline development, permitting, 
access, sitting, and rate regulation.

                          Legislative History

  S. 2889 was introduced on December 16, 2009, by Senator 
Rockefeller, Senator Hutchison, Senator Lautenberg, Senator 
Thune, and Senator Dorgan and was referred to the Committee on 
Commerce, Science, and Transportation. On December 17, 2009, 
the Committee met, and by voice vote, ordered S. 2889 reported 
with two amendments: one in the nature of a substitute and one 
making technical changes.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 2889--Surface Transportation Board Reauthorization Act of 2009

    Summary: S. 2889 would authorize appropriations over the 
2010-2015 period for operating the Surface Transportation Board 
(STB) and for the Railroad Rehabilitation and Improvement 
Financing (RRIF) program to help small railroads buy back 
certain lease agreements from larger railroads. The STB is 
responsible for overseeing economic competition in the railroad 
industry. Assuming appropriation of the necessary amounts, CBO 
estimates that implementing the bill would cost $292 million 
over the 2010-2015 period. Enacting S. 2889 would not affect 
direct spending or revenues; therefore, pay-as-you-go 
procedures would not apply.
    S. 2889 contains intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Several of those mandates would impose requirements on both 
public and private rail carriers. CBO estimates that the 
aggregate cost of intergovernmental mandates in the bill would 
fall below the annual threshold established in UMRA ($70 
million in 2010, adjusted annually for inflation). The cost of 
private-sector mandates in the bill is uncertain because many 
of them would depend, in part, on future regulations. 
Consequently, CBO cannot determine whether the aggregate cost 
of private-sector mandates would exceed the annual threshold 
established in UMRA ($141 million in 2010, adjusted annually 
for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 2889 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).


----------------------------------------------------------------------------------------------------------------
                                                                By fiscal year in millions of dollars--
                                                      ----------------------------------------------------------
                                                        2010    2011    2012    2013    2014     015   2010-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Surface Transportation Board:
    Authorization Level..............................      12      48      41      44      48       0       193
    Estimated Outlays................................       6      48      42      44      47       5       192
Railroad Rehabilitation and Improvement Financing:
    Estimated Authorization Level....................       *       *       *      20      60      20       100
    Estimated Outlays................................       *       *       *      20      60      20       100

    Total Changes:...................................
        Estimated Authorization Level................      12      48      41      64     108       0       293
        Estimated Outlays............................       6      48      42      64     107      25       292
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.

    Basis of estimate: For this estimate, CBO assumes that S. 
2889 will be enacted in 2010 and that the authorized and 
estimated amounts will be appropriated each year, including 
supplemental appropriations for 2010.

Surface transportation board programs

    S. 2889 would authorize the appropriation of $193 million 
for the operations of the STB over the 2010-2014 period. The 
board has already received an appropriation of $28 million for 
2010. The STB is responsible for overseeing economic 
competition in the railroad industry. S. 2889 would increase 
the STB's responsibilities for overseeing and regulating the 
rail industry, including allowing it to conduct investigations 
on its own initiative and requiring the board to establish new 
regulations regarding the rates charged by rail carriers. The 
bill also would require the board to appoint both a Customer 
Advocate and an Ombudsman and to complete several studies about 
the rail industry. Based on information from the STB and 
historical spending patterns for similar programs, CBO 
estimates that implementing those provisions would cost $192 
million over the 2010-2015 period.

Railroad rehabilitation and improvement financing

    Under the RRIF program, the Federal Railroad Administration 
(FRA) provides direct loans and loan guarantees to develop 
railroad infrastructure. Among other features of the RRIF 
program, borrowers pay a premium to cover the estimated subsidy 
cost of their loans. This payment is known as a credit-risk 
premium. Currently, the RRIF program charges loan recipients 
the same interest rate that would be paid on 30-year Treasury 
bonds. The RRIF loan term is 35 years.
    The RRIF program is governed by the Federal Credit Reform 
Act of 1990, which requires an appropriation to cover the 
subsidy and administrative costs associated with direct loan 
guarantees and loan operations. The subsidy cost is the 
estimated long-term cost to the government of a loan or loan 
guarantee, calculated on a net-present-value basis, excluding 
administrative costs. Administrative costs, recorded on a cash 
basis, include activities related to making, servicing, and 
liquidating loans as well as overseeing the performance of 
lenders. In recent history, FRA has typically charged railroads 
between 2 percent and 8 percent of the loan level as a credit-
risk premium because those loans are backed by significant 
collateral in the form of property and equipment.
    Paper Barriers. S. 2889 would expand the activities 
eligible for RRIF loans to allow small railroads to buy back 
certain lease agreements from larger railroads. There are seven 
such larger ``Class I'' railroads in the United States. Smaller 
railroads--Class II and Class III--are often referred to as 
``shortlines'' because they tend to cover a relatively small 
distance of track. A lease agreement with one large railroad is 
called a ``paper barrier'' and generally requires a shortline 
railroad to distribute its rail traffic exclusively to a single 
Class I railroad. By buying back a lease, a shortline would be 
able to distribute its traffic to more than one Class I 
railroad, potentially leading to lower shipping prices. The 
precise number of such paper barriers is unknown, but industry 
experts estimate that there are currently about 100 such 
contracts. The values of those paper barriers vary widely; each 
value depends on the unique circumstances of the agreement 
between a shortline and a Class I railroad.
    Under the provisions of S. 2889, a shortline railroad or a 
customer of such a railroad could petition the STB to 
invalidate or alter a paper barrier. If the STB invalidated 
such an agreement by finding it not to be in the public 
interest, the shortline railroad, alone or in conjunction with 
customers, could then seek a RRIF loan to purchase the 
agreement from the larger carrier. The bill would authorize the 
appropriation of $37.5 million over the 2010-2015 period to pay 
for a portion of the subsidy cost of loans--the credit-risk 
premium--to shortline railroads that plan to buy back a paper 
barrier agreement.
    Cost of Expanding the RRIF program. Because the loans 
authorized by S. 2889 would probably not be backed with the 
same level of collateral as existing loans, CBO estimates that 
the credit subsidy would be greater than the subsidy cost for 
loans the agency has historically made. In addition to the 
$37.5 million authorized for the credit risk, the bill would 
add to the subsidy cost for loans made under S. 2889 because it 
would cap the amount of interest charged on RRIF loans used to 
purchase paper barriers at 1 percent, subject to the 
appropriation of the necessary additional subsidy amounts. CBO 
estimates that the total subsidy rate for RRIF loans used to 
purchase paper barrier agreements would be about 50 percent. 
That rate is largely due to the difference between the 
government's borrowing rate and the 1 percent interest rate 
that would be charged to borrowers.
    Based on information from industry sources, CBO estimates 
that only a handful of shortline railroads or their customers 
would ask to have their paper barriers invalidated. Under the 
bill, CBO estimates that shortline railroads would apply for 
around $200 million in loans to purchase such agreements over 
the next few years. Assuming appropriation of the necessary 
amounts consistent with the projected subsidy rate of 50 
percent, CBO estimates that implementing those changes to the 
RRIF program would cost about $100 million over the 2010-2015 
period.
    Pay-as-you-go considerations: None.
    Intergovernmental and private sector impact: S. 2889 
contains intergovernmental and private-sector mandates, as 
defined in UMRA. Several of those mandates would impose 
requirements on both public and private rail carriers. CBO 
estimates that the aggregate cost of intergovernmental mandates 
in the bill would fall below the annual threshold established 
in UMRA ($70 million in 2010, adjusted annually for inflation). 
The cost of private-sector mandates in the bill is uncertain 
because many of them would depend, in part, on future 
regulations. Consequently, CBO cannot determine whether the 
aggregate cost of private-sector mandates would exceed the 
annual threshold established in UMRA ($141 million in 2010, 
adjusted annually for inflation).

Mandates that apply to both public and private entities

    Rate Regulation and Access to Facilities. The bill would 
require Class I rail carriers to offer reasonable rates for 
shipments on non-competitive segments of track. According to 
industry sources, about 40 percent of the shipments using Class 
I carriers involve such segments. The cost of the mandate to 
rail carriers would be the cost of setting up a new pricing 
system and any loss in net income as a result of the new 
standards. Depending on the number of shipping routes affected 
and the standards established by the STB for reasonable rates, 
the compliance cost to private entities could be substantial.
    S. 2889 also would authorize the STB to require Class I 
rail carriers to make their terminal facilities available to 
competing carriers. The cost of the mandate would be any income 
loss resulting from the required transaction. Because the 
number of rail carriers and the sections of rail that would be 
subject to the mandate would be based on future regulations, 
CBO cannot estimate the cost of this mandate on private-sector 
entities.
    The bill also would allow the STB to extend those 
requirements to shortline railroads, some of which are publicly 
owned. Depending on future rules and regulations, some public 
rail carriers could be required to comply with these mandates. 
Nevertheless, because of the relatively small number of public 
entities potentially affected by such requirements, CBO 
estimates the costs to state and local governments would be 
small.
    Regulatory Exemptions. S. 2889 would require the STB to 
modify or discontinue existing regulatory exemptions for 
shortline railroads based upon the results of a study of the 
impact of those exemptions. Under current law, such rail 
carriers with exempt traffic do not have to comply with 
regulations that apply to Class I carriers. Because of the 
relatively limited number of public entities subject to such 
modifications, the costs to state and local governments would 
be small. Because CBO cannot determine what modifications to 
exempt traffic, if any, would be imposed by the legislation, 
CBO has no basis for estimating the cost of the mandate to 
private-sector carriers.
    Paper barriers. By allowing challenges to paper barrier 
agreements, the bill would impose a mandate as defined in UMRA. 
If the STB were to invalidate an agreement by finding that it 
goes against the public interest, the parties to the agreement 
would have to rewrite the agreement or terminate it. Based on 
information from industry sources, CBO estimates that around 
100 such agreements exist. Because of the relatively small 
number of public entities with such contracts, CBO estimates 
the costs to state and local governments would be small. 
Because the number and value of such agreements that would be 
invalidated is uncertain, CBO cannot estimate the cost to the 
private sector of complying with this mandate.
    Reporting Requirements. The bill would require Class I rail 
carriers to regularly submit information to the STB regarding 
service metrics such as transit times and other data the STB 
may require. In addition, rail carriers would have to publish 
figures that reflect expected ranges for reasonable service. 
Because of the relatively small number of public entities 
subject to the reporting requirements, the costs to state and 
local governments would be minimal. Based on information from 
industry sources and the STB, CBO estimates that the cost of 
the reporting requirements on private-sector entities could 
amount to tens of millions of dollars primarily to develop 
reporting systems.
    Rate Quotes. By allowing the STB to challenge a rate, the 
bill could restrict the ability of rail carriers to set rates. 
Because of the relatively small number of public entities 
affected, CBO estimates that the cost of this provision to 
those entities would be small. Because CBO cannot determine 
when or how often the STB would use this authority, CBO cannot 
determine the cost of the mandate to private entities.
    Other Mandates. The bill contains additional mandates that 
would affect both public and private entities. The bill would 
place a mandate on previous owners of rail lines by limiting 
their right of first refusal if the new owner proposes to sell 
or abandon the line. The bill also could expand existing 
mandates related to rail accidents. Those mandates include 
prohibitions on states and private entities relating to 
National Transportation Safety Board investigations and 
counseling services. CBO estimates that none of the costs of 
those mandates would be significant during the first five years 
the mandates would be in effect.

Mandates that apply to private entities only

    The bill would require the STB to update its uniform 
costing system, which it uses to determine reasonable shipping 
rates. If the updated system would decrease the reasonable rate 
a rail carrier could charge, the new restriction would 
constitute a mandate on rail carriers. The cost would be any 
income loss from the reduction in reasonable rates charged. 
Since CBO does not know how the STB would modify the costing 
system, we cannot determine the potential cost of the mandate.
    Estimate prepared by: Federal Costs: Sarah Puro; Impact on 
State, Local, and Tribal Governments: Ryan Miller; Impact on 
the Private Sector: Samuel Wice.
    Estimate approved by: Theresa Gullo, 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

  The STB currently has the authority to oversee several 
aspects of the rail industry, including the approval of 
construction and abandonment of rail lines, resolution of rail 
rate and service disputes, and review of mergers and 
acquisitions. The bill is intended to provide the STB with 
additional authority to oversee the railroad industry. The 
number of railroads and entities that are subject to the 
Board's oversight is not expected to change as a direct result 
of the bill. The bill would clarify the Board's jurisdiction 
over carbon dioxide pipelines, which could potentially increase 
the purview of the pipeline entities subject to the Board's 
jurisdiction. Because the carbon dioxide pipeline industry is 
still in a developmental stage, the number of potentially 
additional regulated entities remains low.

                            ECONOMIC IMPACT

  S. 2889 is not expected to have an adverse impact on the 
nation's economy. It would encourage more competition and 
improve service within the rail industry, making transportation 
by rail a more desirable transportation option. While some may 
have concerns that the bill could have a negative impact on 
revenues within the rail industry, the bill would also make 
sure the Board has sufficient authority to ensure that the 
needs of railroads and all users of the nations' rail network, 
are appropriately balanced to guarantee that rail 
transportation remains a viable, efficient, and safe mode of 
transportation.

                                PRIVACY

  S. 2889 would not have an adverse impact on the personal 
privacy of individuals.

                               PAPERWORK

  S. 2889 would require certain railroads to provide additional 
information to the STB they currently collect, but are not 
required to report. Any additional paperwork burdens would be 
minimal.

                   Congressionally Directed Spending

  In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


Section 1. Short title.

  The short title of this bill is the ``Surface Transportation 
Board Reauthorization Act of 2009.''

Section 2. Table of contents.

  This section includes the table of contents for the bill.

Section 3. Amendment of title 49, United States Code.

  This section would make clear that amendments in the bill are 
to sections or provisions in title 49, United States Code, 
unless otherwise noted.

                   TITLE I--ADMINISTRATIVE PROVISIONS

Section 101. Authorization of appropriations.

  This section would authorize appropriations to fund the STB 
so that it can fully implement the provisions of the bill as 
well as carry out its existing responsibilities. These 
authorization levels would also provide funding for the 
required studies, necessary technology, software, and database 
upgrades at the Board to improve its efficiency and 
effectiveness, and the administrative costs of the additional 
Board members.

Section 102. Board members.

  This section would expand the Board membership from three to 
five members. It would also update the member qualification 
requirements to provide that at least 3 Board members have 
professional standing and demonstrated knowledge in the fields 
of transportation, transportation regulation, or economic 
regulation, and at least 2 members have professional or 
business experience (including agriculture and other rail 
customers) in the private sector. The section would repeal the 
``holdover'' limitation that limits a Board member from serving 
longer than one year after his or her term expires. This 
section would also repeal an obsolete provision dealing with 
ICC members who transitioned to members of the STB.

Section 103. Establishment of Board as independent agency.

  The STB is currently administratively affiliated with the 
DOT, though it is decisionally-independent. This section would 
establish the STB as an independent agency of the United States 
Government.

Section 104. Filing fees for certain cases.

  This section would limit the filing fee the Board may require 
a party to pay to bring a formal complaint to no more than the 
fee charged for bringing a civil action in a Federal District 
Court of the United States, which is currently $350.

Section 105. Repeal of expired and obsolete provisions.

  This section would repeal obsolete and expired provisions 
under the Board's jurisdiction.

Section 106. Department of Transportation Inspector General authority.

  This section would provide authority to the DOT IG to review 
the financial management, property management, and business 
operations of the STB, including internal accounting and 
administrative control systems, to determine compliance with 
applicable Federal laws, rules, and regulations. This authority 
is modeled after the DOT IG's role with respect to the National 
Transportation Safety Board.

Section 107. Railroad-Shipper Transportation Advisory Council.

  This section would make a number of changes to the 
composition and responsibilities of the RSTAC, a 19-member 
council of small shippers and railroads with the duty to advise 
Congress and the STB on rail transportation issues, with 
particular attention to issues of importance to small shippers 
and small railroads, including car supply, rates, competition, 
and effective procedures for addressing legitimate shipper and 
other claims. This section would establish a member at large 
that may be a representative of rail labor, a State or local 
transportation agency, an academic institution, or other 
relevant entity selected by the STB Chairman. This section 
would also subject the Council to the Federal Advisory 
Committee Act and require the Council to prepare an annual 
report concerning its activities and the results of Council 
efforts to resolve industry issues. The annual report would be 
required to include at least one recommendation to the Board 
stemming from the Council's activities and any proposal 
regarding regulation or legislation it considers appropriate.

                    TITLE II--AUTHORITY IMPROVEMENTS

Section 201. Rail transportation policy update.

  The rail transportation policy is intended to guide the STB 
in its duties in regulating the railroad industry. This section 
would update the rail transportation policy and direct the 
Board to balance the following objectives: (1) to promote a 
safe and efficient rail transportation system; (2) to allow, to 
the maximum extent possible, competition and the demand for 
services to establish reasonable rates for transportation by 
rail; (3) to protect rail shippers and to maintain reasonable 
rates where there is an absence of effective competition and 
where rail rates provide revenues that exceed the amount 
necessary to maintain and expand the rail system and to attract 
capital; (4) to foster the continuation and expansion of a 
sound rail transportation system while also preserving 
effective competition among rail carriers and with other modes 
to meet the needs of the public and National defense; (5) to 
ensure that rail carriers can earn adequate revenues to provide 
and sustain consistent, efficient, and reliable transportation 
services and maintain and expand rail infrastructure, 
equipment, and technology; (6) to prohibit predatory pricing 
and practices, avoid undue concentrations of market power, and 
to prohibit unlawful discrimination; (7) to provide fair and 
expeditious regulatory decisions and ensure that the regulatory 
process is accessible and cost effective for all affected 
parties; (8) to advance the environmental and energy efficiency 
advantages of rail transportation and encourage energy 
conservation and environmentally-responsible practices among 
rail carriers; (9) to foster intercity and commuter rail 
passenger service; and (10) to encourage fair wages and safe 
and suitable working conditions in the railroad industry.

Section 202. Office of Public Assistance, Governmental Affairs, and 
        Compliance.

  This section would codify the Board's OPAGAC. This section 
would give the office authority over public assistance and 
outreach, governmental affairs, and compliance. This section 
would also expand and clarify the Office's responsibilities, 
including to (1) mediate disputes between affected parties; (2) 
monitor rail carrier operations subject to the Board's 
jurisdiction to ensure that such operations are in compliance 
with each carrier's statuatory and regulatory responsibilities; 
(3) act as the Board's point of contact with government, public 
and private parties; (4) facilitate communication among 
stakeholders subject to the Board's jurisdiction; and (5) carry 
out other duties and powers prescribed by the Board.
  This section would direct the Board to appoint a Rail 
Customer Advocate. The Advocate would be required to: (1) 
review or investigate rail customer inquiries and complaints; 
(2) serve as a technical advisor to a rail customer in any 
appropriate proceeding of the Board; (3) advise the Board in 
certain matters, as appropriate; (4) review information 
regarding the cost and efficiency of rail transportation; (5) 
carry out other duties and powers prescribed by the Board; and 
(6) participate as a party in a Board proceeding, as 
appropriate.
  This section would also authorize the Board to designate an 
officer or employee of the Board to serve as an ombudsman in 
regional or local matters of Board interest, including matters 
related to railroad service, mergers and acquisitions, or any 
other matter designated by the Board.

Section 203. Investigative authority.

  This section would authorize the Board to conduct 
investigations, except for matters involving rate disputes, on 
its own initiative or upon complaint. Currently, the Board may 
initiate an investigation only upon complaint.

Section 204. Compilation of complaints.

  This section would direct the Board to establish and maintain 
a database of complaints and post on its website a quarterly 
report of formal and informal service complaints by region, 
type of complaint, and resolution of the complaint.

Section 205. Exempt traffic.

  This section would amend the criteria by which the STB may 
grant or revoke an exemption to a person, class of persons, or 
a transaction or service from the protection of the Board. This 
section would also direct the Board to conclude a study of 
current class exemptions within two years after the date of 
enactment of this Act to determine whether any exemptions 
should be revoked and to establish a process to review class 
exemptions periodically.

Section 206. Railroad service metrics and performance data.

  This section would direct the Board to require, within two 
years after the date of enactment of this Act, Class I 
railroads and other railroad carriers, as appropriate, to 
report railroad service metrics and performance data to the 
Board. The data may include transportation cycle times and 
transit cycle times and variations in such cycle times, average 
train speed, and terminal dwell time by type of traffic and by 
geographic area and other metrics, as determined by the Board. 
The Board shall ensure that metrics and data submitted pursuant 
to this section and deemed confidential by the Board are 
appropriately protected.

Section 207. Uniform railroad costing system.

  This section would direct the Board to complete, within three 
years of enactment of this Act, a proceeding to update, revise, 
or replace its URCS and any related reporting of financial and 
operating information by rail carriers. Within 18 months after 
the date of enactment of this Act, the Board shall submit an 
interim report on its progress to the Senate Committee on 
Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure. 
Until the Board updates, revises, or replaces the system 
pursuant to this section, or thereafter at the discretion of 
the Board, parties may make reasonable movement-specific 
adjustments to the variable costs calculated by the System in 
full SAC rate challenges. Finally, if URCS is materially 
changed pursuant to the proceeding required under this section, 
the Board shall develop a one-time adjustment factor to be used 
to adjust the variable costs in rate prescriptions determined 
under the changed procedures to equal those that would have 
been obtained under the prior procedures, and will apply this 
adjustment factor, upon request, in rate prescriptions that are 
in effect as of the date of enactment of the STB Act.

Section 208. Replacement cost study.

  This section would direct the Board to initiate, within 180 
days after the date of enactment of this Act, a study to review 
the use of a replacement cost approach to value the assets of 
rail facilities. The review shall include matters deemed 
appropriate by the Board, but shall include, at a minimum, 
consideration of the feasibility, effectiveness, and 
appropriateness of using a replacement cost approach in 
proceedings where replacement costs may be relevant. The Board 
shall conduct one or more public hearings as part of this 
study. The Board shall provide a report of its findings to the 
Senate Committee on Commerce, Science, and Transportation and 
the House Committee on Transportation and Infrastructure within 
180 days after completing the study.

Section 209. Rail practices study.

  This section would direct the Board to initiate, within 180 
days after the date of enactment of this Act, a study on rail 
practices, including switching, surcharges, penalties, 
demurrage, and accessorial charges. The Board shall conduct one 
or more public hearings as part of this study. The Board shall 
provide a report of its findings to the Senate Committee on 
Commerce, Science, and Transportation and the House Committee 
on Transportation and Infrastructure within 180 days after 
completing the study.

Section 210. Rail car interchange rules study.

  This section would direct the Board to initiate, within 180 
days after the date of enactment of this Act, a study of rail 
interchange rules, including car service, interchange, and 
other operating rules adopted and administered by the 
Association of American Railroads and the effect of those rules 
on the national rail system. In conducting the study, the Board 
shall provide public notice and comment and conduct one or more 
public hearings. The Board shall provide a report of its 
findings to the Senate Committee on Commerce, Science, and 
Transportation and the House Committee on Transportation and 
Infrastructure within 180 days after completing the study.

Section 211. Offers of financial assistance.

  This section would clarify that the Board may authorize the 
abandonment of a rail line unless a financially responsible 
person offers financial assisitance and establishes a 
reasonable likelihood of public transportation, intercity rail 
passenger transportation, or freight rail service over that 
pert of the railroad line to be abandoned.

Section 212. Adverse abandonments.

  The section would clarify that parties other than a rail 
carrier may file to abandon or discontinue service on a 
particular line. This is a clarification to the STB's 
authority.

Section 213. Emergency service orders.

  The section would authorize the Board to extend an emergency 
service order beyond the initial 30 days in 90-day increments 
until such emergency has ended.

Section 214. Rate Agreements.

  This section would amend section 10706 to subject existing 
rate agreements to the antitrust laws. The section would retain 
language to ensure that in any proceeding where a rail carrier 
is alleged to be a party in an agreement, conspiracy, or 
combination that is in violation of an antitrust law, such a 
violation may not be inferred from evidence that two or more 
rail carriers acted together with respect to an interline rate 
or related matter.
  In any such proceeding, evidence of a discussion or agreement 
between or among such rail carrier and one or more other rail 
carriers, or of any rate or other action resulting from such 
discussion or agreement, would not be admissible if the 
discussion or agreement concerned an interline movement of the 
rail carrier, and the discussion or agreement would not, 
considered by itself, violate a Federal or State antitrust law.
  In any such proceeding before a jury, the court would be 
required to determine whether the requirements of this section 
are satisfied before allowing the introduction of any such 
evidence.

Section 215. Miscellaneous provisions.

  This section would direct the Board to maintain its 
simplified and expedited methods (``Three Benchmark'' and 
``SSAC'') for determining the reasonableness of challenged 
rates in those cases in which a full SAC rate challenge is too 
costly, given the value of the case.

                      TITLE III--REGULATORY REFORM

Section 301. Paper barriers.

  This section would define an interchange commitment as a 
contractual agreement between two or more rail carriers subject 
to the jurisdiction of the Board reached as part of a sale or 
lease of a rail line for which the approval of the Board is 
required, which limits the incentive or the ability of the 
purchaser or tenant rail carrier to interchange traffic with a 
rail carrier other than the seller or lessor rail carrier.
  This section would permit the Board to approve transactions 
that include interchange commitments only if they are 
reasonable and in the public interest. Any lease transaction 
that includes an interchange commitment would be subject to 
Board review when it is up for renewal.
  This section would require the Board to maintain a process to 
allow affected persons to challenge existing interchange 
commitments. The Secretary of Transportation and the Attorney 
General would also be allowed to participate in such 
proceedings.
  This section would allow, after a finding that an interchange 
commitment is found to be in violation of the law (on ``the 
reasonableness and public interest standard'') and the rail 
carriers in question cannot bring the interchange commitment 
into compliance with this part within a reasonable period of 
time, the Board to require, upon application by the purchaser 
or tenant rail carrier, the elimination of an interchange 
commitment at a price not less than fair market value.
  This section would make financial assistance under the 
Railroad Rehabilitation and Improvement Financing (RRIF) 
program available to the purchaser or tenant rail carrier for 
the purposes of buying out an interchange commitment that is 
eliminated by the Board. The Secretary of Transportation would 
also be authorized to reduce the interest payments on a direct 
loan. Finally, this section would authorize $7.5 million 
annually for FY 2010 through FY 2014 for the Secretary of 
Transportation, in consultation with the Board, to make grants 
to a Class III railroad to assist with the credit risk premium 
of a direct loan or loan guarantee made under the RRIF program.

Section 302. Bottleneck and terminal switching rates.

  This section would require a Class I rail carrier or other 
rail carrier, as deemed appropriate by the Board, to quote a 
bottleneck rate to a rail customer over which it has market 
dominance, including in a terminal area, provided such request 
is reasonable. It would permit a rail customer to challenge the 
reasonableness of that rate at the STB.
  This section would also direct the Board, not later than one 
year after the date of enactment of this Act, to establish and 
maintain standards for determining whether a bottleneck rate 
established by a rail carrier is reasonable and to establish a 
simplified and expedited method for determining the 
reasonableness of challenged bottleneck rates.
  This section would direct the Board, in developing the 
standards for a reasonable bottleneck rate, to consider rail 
carriers' need to earn adequate revenues to provide and sustain 
consistent, efficient, and reliable transportation services and 
to maintain the national rail system. It would also direct the 
Board to include as part of a reasonable rate: (1) operating 
costs, including any additional labor costs, of providing the 
requested transportation service over the bottleneck segment; 
(2) maintenance costs associated with providing the requested 
transportation service; (3) additional capital and investment 
costs required to perform the requested transportation service 
over the bottleneck segment; (4) a reasonable return on 
embedded capital used for the requested transportation service 
over the bottleneck segment sufficient to meet the rail 
carrier's cost of capital or, if such cost is not available, 
the rail industry cost of capital; (5) a reasonable 
contribution, to the extent appropriate, to that carrier's 
network infrastructure costs of the non-bottleneck segment of 
the route offered by the incumbent rail carrier that is 
sufficient, along with other traffic on the segment, to 
maintain the non-bottleneck segment; and (6) any other 
contributing factors appropriate to meet the considerations 
above.
  This section would also establish that in any proceeding in 
which a rail customer challenges a bottleneck rate established 
under this section as unreasonable, the burden of proof that 
the rate is reasonable shall be on the rail carrier.

Section 303. Terminal access.

  This section would permit the Board to require a rail carrier 
to make its terminal facilities available for use by another 
rail carrier when that carrier is found to have market 
dominance over the requested transportation and establish the 
standards for when terminal access should be required. This 
section would require the Board to establish the standard for 
reasonableness of the rate that could be charged for access.
  This section would stipulate that the Board may only require 
such an action if the Board finds that it (1) would be 
practicable and would not significantly adversely affect the 
operations of the terminal or facility owned by such rail 
carrier or rail carriers otherwise entitled to use the terminal 
or facilities; (2) would not significantly adversely affect the 
network efficiency of such rail carrier or rail carriers 
otherwise entitled to use the terminal or facilities; (3) would 
not significantly impair service to other customers of such 
rail carrier or other rail carriers entitled to use the 
terminal or facilities; (4) is necessary to promote the 
efficient operation of the national railroad system and 
competitive rail service; and (5) is in the public interest.
  This section would require that the rail carriers required to 
make facilities available or provide service under this section 
are responsible for establishing reasonable conditions and 
compensation for the use of the facilities. The compensation 
would be required to be be paid or adequately secured before a 
rail carrier may begin to use the facilities of another rail 
carrier.
  This section would direct the Board, not later than one year 
after the date of enactment of this Act, to establish and 
maintain standards for determining whether compensation is 
reasonable for purposes of this section and to establish a 
simplified and expedited method for determining the 
reasonableness of challenged compensation rates.
  This section would require the Board to develop rate 
reasonableness standards according to the same specific 
directions required under section 302.
  A rail carrier whose terminal facilities would be required to 
be used by another rail carrier under this section would be 
entitled to recover compensation from the other rail carrier 
for damages sustained as the result of compliance with the 
requirement in a civil action.
  This section would also establish that in any proceeding in 
which a rail customer challenges compensation under this 
section as unreasonable, the burden of proof that the rate is 
reasonable shall be on the rail carrier.

Section 304. Service.

  This section would require the Board, through regulation, to 
require rail carriers to publish reasonable common carrier 
service expectation ranges, which may include ranges for normal 
car cycle times, switching frequency, and other service 
components determined by the Board.

Section 305. Arbitration of certain rail rate, practice, and common 
        carrier service expectation disputes.

  This section would direct the STB to establish a binding 
arbitration process to resolve rail rate, practice, and common 
carrier service expectation complaints subject to the 
jurisdiction of the Board. Arbitration may be initiated by the 
Board only after the filing of a formal complaint or upon 
petition by a party at the conclusion of any informal dispute 
resolution that would be eligible for resolution by 
arbitration. A decision by the arbitrator must (1) be 
consistent with subtitle IV of title 49, United States Code; 
(2) be in writing and shall contain findings of fact and 
conclusions; (3) have no precedential effect in any other or 
subsequent arbitration dispute; and (4) be binding upon the 
parties. If a party appeals an arbitrator's decision to the 
Board, the Board may review the decision to determine if the 
decision exceeds the statutory authority of the Board. A 
decision under this section may award the payment of damages or 
rate prescriptive relief, but the value of the award may not 
exceed $250,000 per year and the award may not cover a total 
time period of more than 2 years. The Board shall periodically 
review this limit and adjust it as necessary to reflect 
inflation.

Section 306. Maximum relief in certain rate cases.

  This section would direct the Board to revise the maximum 
amount of rate relief available to railroad shippers in cases 
brought pursuant to the simplified rate dispute methods from $1 
million to $1.5 million for the ``Three-Benchmark'' procedure 
and from $5 million to $10 million for the SSAC procedure. This 
section would also direct the Board to periodically review the 
amounts established under this section and revise them as 
appropriate.

Section 307. Advance rate challenge.

  This section would allow the Board to consider the 
reasonableness of a rate quoted by a rail carrier up to 1 year 
before the date on which the rate is to take effect.

Section 308. Rate review timelines.

  This section would direct the Board to comply with the 
following timelines for a SAC rate challenge, unless it extends 
them after a request from any party or in the interest of due 
process: (1) for discovery, 150 days after the date on which 
the challenge is initiated; (2) for development of the 
evidentiary record, 155 days after that date; (3) for 
submission of parties' closing briefs, 60 days after that date; 
(4) for a final Board decision, 180 days after the date on 
which the parties submit closing briefs.

Section 309. Revenue adequacy study.

  This section would direct the Board, within 180 days after 
the date of enactment of the STB Act, to initiate a study to 
provide further guidance on how it will apply its revenue 
adequacy constraint. In conducting the study, the Board shall 
provide public notice and opportunity for comment and conduct 
one or more public hearings.

Section 310. Public usage of abandoned rail properties.

  This section would clarify the STB's authority to impose 
conditions on the sale and lease of abandoned properties.

Section 311. Transactions.

  This section would allow the Board to extend the limits of 
review of a proposed railroad consolidation, merger, and 
acquisition of control in order to complete the environmental 
review process. This section would also amend the Board's 
procedure for considering a proposed railroad consolidation, 
merger, and acquisition of control for an application that 
involves a transaction other than the merger or control of at 
least two Class I railroads to apply to one Class I railroad 
and at least one Class II railroad, or if it involves a 
transaction which the Board has determined to be of regional or 
national transportation significance.

Section 312. Considerations in consolidations, mergers, and 
        acquisitions.

  This section would revise the Board's considerations for 
approval of a proposed transaction of at least two Class I 
railroads. This section would also clarify that the Board is 
permitted to take into account the potential effects of the 
transaction on (1) public health, safety, and the environment; 
and (2) intercity rail passenger transportation and commuter 
rail passenger transportation.

Section 313. Railroad development.

  This section would limit the ``right of first refusal'' for a 
railroad required to sell a rail line under section 10907 for 
five years after the date of sale.

Section 314. Regulatory reform review.

  This section would direct the Comptroller General of the 
United States (GAO) to undertake a review of the regulatory 
changes made by this Act. The review will include: (1) a review 
of the Board's progress in implementing this Act; (2) an 
assessment of the impact on the rail transportation system of 
the regulatory changes made by this Act; and (3) an analysis of 
the impact on railroad operations, rates, competition, service, 
revenues, maintenance, and investment resulting from the 
implementation of sections 302 and 303 of this Act. This 
section would also direct the GAO to solicit input from the 
railroads, railroad shippers, railroad non-profit employee 
labor organizations, the Federal Railroad Administration, and 
other entities, as appropriate. This section would direct the 
GAO to complete the report by December 31, 2013.

                    TITLE IV--TECHNICAL CORRECTIONS

Section 401. Technical corrections to Public Law 110	432.

  This section would make technical corrections to the Rail 
Safety Improvement Act of 2008 and the Passenger Rail 
Investment and Improvement Act of 2008.

                         TITLE V--MISCELLANEOUS

Section 501. Pipeline investigative authority.

  This section would give the Board authority to investigate 
pipeline complaints on its own initiative or upon complaint.

Section 502. Carbon dioxide pipelines.

  This section would clarify the Board's jurisdiction over the 
common carrier obligation for carbon dioxide pipelines.
  This section would direct the GAO to report within 18 months 
after enactment of this Act to the Senate Committee on 
Commerce, Science, and Transportation and the House Committee 
on Transportation and Infrastructure on the Federal and State 
regulatory framework to support the development of pipelines 
for the purposes of capture, transportation, and sequestration 
of carbon dioxide. The study shall examine the Federal 
permitting process for new carbon dioxide pipelines, the 
regulatory process for access, siting, eminent domain, and rate 
regulation.

Section 503. Effective dates.

  This section would state that all sections of this bill, 
except section 214, shall take effect on the date of enactment. 
Section 214 would take effect two years after the date of 
enactment of 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):

                      TITLE 49, UNITED STATES CODE


                SUBTITLE I--DEPARTMENT OF TRANSPORTATION

                CHAPTER 7--SURFACE TRANSPORTATION BOARD

                      SUBCHAPTER I--ESTABLISHMENT

Sec. 701. Establishment of Board

  [(a) Establishment.--There is hereby established within the 
Department of Transportation the Surface Transportation Board.]
  (a) Establishment of Board.--The Surface Transportation Board 
is an independent establishment of the United States 
Government.
  (b) Membership.--(1) The Board shall consist of [3 members,] 
5 members, to be appointed by the President, by and with the 
advice and consent of the Senate. Not more than [2 members] 3 
members may be appointed from the same political party.
  [(2) At any given time, at least 2 members of the Board shall 
be individuals with professional standing and demonstrated 
knowledge in the fields of transportation or transportation 
regulation, and at least one member shall be an individual with 
professional or business experience (including agriculture) in 
the private sector.]
  (2) At any given time, at least 3 members of the Board shall 
be individuals with professional standing and demonstrated 
knowledge in the fields of transportation, transportation 
regulation, or economic regulation, and at least 2 members 
shall be individuals with professional or business experience 
(including agriculture or other rail customers) in the private 
sector.
  (3) The term of each member of the Board shall be 5 years and 
shall begin when the term of the predecessor of that member 
ends. An individual appointed to fill a vacancy occurring 
before the expiration of the term for which the predecessor of 
that individual was appointed, shall be appointed for the 
remainder of that term. When the term of office of a member 
ends, the member may continue to serve until a successor is 
appointed and [qualified, but for a period not to exceed one 
year.] qualified. The President may remove a member for 
inefficiency, neglect of duty, or malfeasance in office.
  [(4) On January 1, 1996, the members of the Interstate 
Commerce Commission serving unexpired terms on December 29, 
1995, shall become members of the Board, to serve for a period 
of time equal to the remainder of the term for which they were 
originally appointed to the Interstate Commerce Commission. Any 
member of the Interstate Commerce Commission whose term expires 
on December 31, 1995, shall become a member of the Board, 
subject to paragraph (3).]
  [(5)] (4) No individual may serve as a member of the Board 
for more than 2 terms. [In the case of an individual who 
becomes a member of the Board pursuant to paragraph (4), or an 
individual] An individual appointed to fill a vacancy occurring 
before the expiration of the term for which the predecessor of 
that individual was appointed, such individual may not be 
appointed for more than one additional term.
  [(6)] (5) A member of the Board may not have a pecuniary 
interest in, hold an official relation to, or own stock in or 
bonds of, a carrier providing transportation by any mode and 
may not engage in another business, vocation, or employment.
  [(7)] (6) A vacancy in the membership of the Board does not 
impair the right of the remaining members to exercise all of 
the powers of the Board. The Board may designate a member to 
act as Chairman during any period in which there is no Chairman 
designated by the President.
  (c) Chairman.--(1) There shall be at the head of the Board a 
Chairman, who shall be designated by the President from among 
the members of the Board. The Chairman shall receive 
compensation at the rate prescribed for level III of the 
Executive Schedule under section 5314 of title 5.
  (2) Subject to the general policies, decisions, findings, and 
determinations of the Board, the Chairman shall be responsible 
for administering the Board. The Chairman may delegate the 
powers granted under this paragraph to an officer, employee, or 
office of the Board. The Chairman shall--
          (A) appoint and supervise, other than regular and 
        full-time employees in the immediate offices of another 
        member, the officers and employees of the Board, 
        including attorneys to provide legal aid and service to 
        the Board and its members, and to represent the Board 
        in any case in court;
          (B) appoint the heads of offices with the approval of 
        the Board;
          (C) distribute Board business among officers and 
        employees and offices of the Board;
          (D) prepare requests for appropriations for the Board 
        and submit those requests to the President and Congress 
        with the prior approval of the Board; and
          (E) supervise the expenditure of funds allocated by 
        the Board for major programs and purposes.

Sec. 703. Administrative provisions

  [(a) Executive Reorganization.--Chapter 9 of title 5, United 
States Code, shall apply to the Board in the same manner as it 
does to an independent regulatory agency, and the Board shall 
be an establishment of the United States Government.]
  [(b)] (a) Open Meetings.--For purposes of section 552b of 
title 5, United States Code, the Board shall be deemed to be an 
agency.
  [(c) Independence.--In the performance of their functions, 
the members, employees, and other personnel of the Board shall 
not be responsible to or subject to the supervision or 
direction of any officer, employee, or agent of any other part 
of the Department of Transportation.]
  [(d)] (b) Representation by Attorneys.--Attorneys designated 
by the Chairman of the Board may appear for, and represent the 
Board in, any civil action brought in connection with any 
function carried out by the Board pursuant to this chapter or 
subtitle IV or as otherwise authorized by law.
  [(e)] (c) Admission To Practice.--Subject to section 500 of 
title 5, the Board may regulate the admission of individuals to 
practice before it and may impose a reasonable admission fee.
  [(f) Budget Requests.--In each annual request for 
appropriations by the President, the Secretary of 
Transportation shall identify the portion thereof intended for 
the support of the Board and include a statement by the Board--
          [(1) showing the amount requested by the Board in its 
        budgetary presentation to the Secretary and the Office 
        of Management and Budget; and
          [(2) an assessment of the budgetary needs of the 
        Board.
  [(g) Direct Transmittal to Congress.--The Board shall 
transmit to Congress copies of budget estimates, requests, and 
information (including personnel needs), legislative 
recommendations, prepared testimony for congressional hearings, 
and comments on legislation at the same time they are sent to 
the Secretary of Transportation. An officer of an agency may 
not impose conditions on or impair communications by the Board 
with Congress, or a committee or Member of Congress, about the 
information.]
  (d) Submissions and Transmittals.--Whenever the Board submits 
or transmits any budget estimate, budget request, supplemental 
budget estimate, or other budget information, legislative 
recommendation, prepared testimony for congressional hearings, 
or comment on legislation to the President or to the Office of 
Management and Budget, it shall concurrently transmit a copy 
thereof to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure. No officer or agency of the 
United States shall have any authority to require the Board to 
submit its budget requests or estimates, legislative 
recommendations, prepared testimony for congressional hearings, 
or comments on legislation to any officer or agency of the 
United States for approval, comments, or review, prior to the 
submission of such recommendations, testimony, or comments to 
the Congress.

[Sec. 704. Annual report]

704. Reports

  (a) Annual Report.--The Board shall annually transmit to the 
Congress a report on its activities.
  (b) Complaints.--
          (1) The Board shall establish and maintain a database 
        of complaints received by the Board.
          (2) The Board shall post a quarterly report of formal 
        and informal service complaints received by the Board 
        during the previous quarter that shall include--
                  (A) a list of the type of each complaint;
                  (B) the geographic region of the complaint; 
                and
                  (C) the resolution of the complaint, if 
                appropriate.
          (3) The quarterly report may identify a complainant 
        that submitted an informal complaint only upon the 
        written consent of the complainant.
          (4) The report shall be posted on the Board's public 
        website.

Sec. 705. Authorization of appropriations

  There are authorized to be appropriated for the activities of 
the Board--
          [(1) $8,421,000 for fiscal year 1996;
          [(2) $12,000,000 for fiscal year 1997; and
          [(3) $12,000,000 for fiscal year 1998.]
          (1) $40,370,000 for fiscal year 2010;
          (2) $47,518,000 for fiscal year 2011;
          (3) $40,834,000 for fiscal year 2012;
          (4) $44,315,000 for fiscal year 2013; and
          (5) $47,971,000 for fiscal year 2014.

           *       *       *       *       *       *       *


                     SUBCHAPTER II--ADMINISTRATIVE

Sec. 723. Service of notice in Board proceedings

  (a) Designation of Agent.--A carrier providing transportation 
subject to the jurisdiction of the Board under subtitle IV 
shall designate an agent [in the District of Columbia,] on whom 
service of notices in a proceeding before, and of actions of, 
the Board may be made.
  (b) Filing and Changing Designations.--A designation under 
subsection (a) shall be in writing and filed with the Board. 
The designation may be changed at any time in the same manner 
as originally made.
  (c) Service of Notice.--Except as otherwise provided, notices 
of the Board shall be served on its designated agent at the 
office or usual place of residence [in the District of 
Columbia] of that agent. A notice of action of the Board shall 
be served immediately on the agent or in another manner 
provided by law. If that carrier does not have a designated 
agent, service may be made by posting the notice in the office 
of the Board.
  (d) Special Rule for Rail Carriers.--In a proceeding 
involving the lawfulness of classifications, rates, or 
practices of a rail carrier that has not designated an agent 
under this section, service of notice of the Board on an 
attorney in fact for the carrier constitutes service of notice 
on the carrier.

Sec. 724. Service of process in court proceedings

  (a) Designation of Agent.--A carrier providing transportation 
subject to the jurisdiction of the Board under subtitle IV 
shall designate an agent [in the District of Columbia] on whom 
service of process in an action before a district court may be 
made. Except as otherwise provided, process in an action before 
a district court shall be served on the designated agent of 
that carrier at the office or usual place of residence [in the 
District of Columbia] of that agent. If the carrier does not 
have a designated agent, service may be made by posting the 
notice in the office of the Board.
  (b) Changing Designation.--A designation under this section 
may be changed at any time in the same manner as originally 
made.

[Sec. 725. Administrative support

  [The Secretary of Transportation shall provide administrative 
support for the Board.]

725.Filing fees

  The Board may not require a party to pay a filing fee to 
bring a formal complaint before the Board that is greater than 
the fee provided by section 1914 of title 28 for bringing a 
civil action in a district court of the United States.

Sec. 726. Railroad-Shipper Transportation Advisory Council

  (a) Establishment; Membership.--There is established the 
Railroad-Shipper Transportation Advisory Council (in this 
section referred to as the ``Council'') to be composed of 19 
members, of which 15 members shall be appointed by the Chairman 
of the Board, after recommendation from rail carriers and 
shippers, within 60 days after December 29, 1995. The members 
of the Council shall be appointed as follows:
          (1) The members of the Council shall be appointed 
        from among citizens of the United States who are not 
        regular full-time employees of the United States and 
        shall be selected for appointment so as to provide as 
        nearly as practicable a broad representation of the 
        various segments of the railroad and rail shipper 
        industries.
          (2) Nine of the members shall be appointed from 
        senior executive officers of organizations engaged in 
        the railroad and rail shipping industries, which 9 
        members shall be the voting members of the Council. 
        Council action and Council positions shall be 
        determined by a majority vote of the members present. A 
        majority of such voting members shall constitute a 
        quorum. Of such 9 voting members--
                  (A) at least 4 shall be representative of 
                small shippers (as determined by the Chairman); 
                [and]
                  (B) at least 4 shall be representative of 
                Class II or III [railroads.] railroads; and
                  (C) the ninth voting member shall be a 
                member-at-large, and may be a representative of 
                rail labor, a State or local transportation 
                agency, an academic institution, or other 
                relevant entity selected by the Chairman.
          (3) The remaining 6 members of the Council shall 
        serve in a nonvoting advisory capacity only, but shall 
        be entitled to participate in Council deliberations. Of 
        the remaining members--
                  (A) 3 shall be representative of Class I 
                railroads; and
                  (B) 3 shall be representative of large 
                shipper organizations (as determined by the 
                Chairman).
          (4) The Secretary of Transportation and the members 
        of the Board shall serve as ex officio, nonvoting 
        members of the Council. [The Council shall not be 
        subject to the Federal Advisory Committee Act.] A list 
        of the members appointed to the Council shall be 
        forwarded to the Chairmen and ranking members of the 
        Committee on Commerce, Science, and Transportation of 
        the Senate and the Committee on Transportation and 
        Infrastructure of the House of Representatives.
          (5) Each ex officio member of the Council may 
        designate an alternate, who shall serve as a member of 
        the Council whenever the ex officio member is unable to 
        attend a meeting of the Council. Any such designated 
        alternate shall be selected from individuals who 
        exercise significant decision-making authority in the 
        Federal agency involved.
  (b) Term of Office.--The members of the Council shall be 
appointed for a term of office of 3 years, except that of the 
members first appointed--
          (1) 5 members shall be appointed for terms of 1 year; 
        and
          (2) 5 members shall be appointed for terms of 2 
        years,
as designated by the Chairman at the time of appointment. Any 
member appointed to fill a vacancy occurring before the 
expiration of the term for which the member's predecessor was 
appointed shall be appointed only for the remainder of such 
term. A member may serve after the expiration of his term until 
his successor has taken office. Vacancies on the Council shall 
be filled in the same manner in which the original appointments 
were made. No member of the Council shall be eligible to serve 
in excess of two consecutive terms.
  (c) Election and Duties of Officers.--The Council Chairman 
and Vice Chairman and other appropriate officers of the Council 
shall be elected by and from the voting members of the Council. 
The Council Chairman shall serve as the Council's executive 
officer and shall direct the administration of the Council, 
assign officer and committee duties, and shall be responsible 
for issuing and communicating the reports, policy positions and 
statements of the Council. In the event that the Council 
Chairman is unable to serve, the Vice Chairman shall act as 
Council Chairman.
  (d) Expenses.--(1) The members of the Council shall receive 
no compensation for their services as such, but upon request by 
the Council Chairman, based on a showing of significant 
economic burden, the Secretary of Transportation or the 
Chairman of the Board, to the extent provided in advance in 
appropriation Acts, may provide reasonable and necessary travel 
expenses for such individual Council members from Department or 
Board funding sources in order to foster balanced 
representation on the Council.
  (2) Upon request by the Council Chairman, the Secretary or 
Chairman of the Board, to the extent provided in advance in 
appropriations Acts, may pay the reasonable and necessary 
expenses incurred by the Council in connection with the 
coordination of Council activities, announcement and reporting 
of meetings, and preparation of such Council documents as are 
required or permitted by this section.
  (3) The Council may solicit and use private funding for its 
activities, subject to this subsection.
  (4) Prior to making any Federal funding requests, the Council 
Chairman shall undertake best efforts to fund such activities 
privately unless the Council Chairman determines that such 
private funding would create a conflict of interest, or the 
appearance thereof, or is otherwise impractical. The Council 
Chairman shall not request funding from any Federal agency 
without providing written justification as to why private 
funding would create any such conflict or appearance, or is 
otherwise impractical.
  (5) To enable the Council to carry out its functions--
          (A) the Council Chairman may request directly from 
        any Federal agency such personnel, information, 
        services, or facilities, on a compensated or 
        uncompensated basis, as the Council Chairman determines 
        necessary to carry out the functions of the Council;
          (B) each Federal agency may, in its discretion, 
        furnish the Council with such information, services, 
        and facilities as the Council Chairman may request to 
        the extent permitted by law and within the limits of 
        available funds; and
          (C) each Federal agency may, in its discretion, 
        detail to temporary duty with the Council, such 
        personnel as the Council Chairman may request for 
        carrying out the functions of the Council, each such 
        detail to be without loss of seniority, pay, or other 
        employee status.
  (e) Meetings.--The Council shall meet at least semi-annually 
and shall hold other meetings at the call of the Council 
Chairman. Appropriate Federal facilities, where available, may 
be used for such meetings. Whenever the Council, or a committee 
of the Council, considers matters that affect the 
jurisdictional interests of Federal agencies that are not 
represented on the Council, the Council Chairman may invite the 
heads of such agencies, or their designees, to participate in 
the deliberations of the Council.
  (f) Functions and Duties; Annual Report.--(1) The Council 
shall advise the Secretary, the Chairman, the Committee on 
Commerce, Science, and Transportation of the Senate, and the 
Committee on Transportation and Infrastructure of the House of 
Representatives with respect to rail transportation policy 
issues it considers significant, with particular attention to 
issues of importance to small shippers and small railroads, 
including car supply, rates, competition, and effective 
procedures for addressing legitimate shipper and other claims.
  (2) To the extent the Council addresses specific grain car 
issues, it shall coordinate such activities with the National 
Grain Car Council. The Secretary and Chairman shall cooperate 
with the Council to provide research, technical and other 
reasonable support in developing any reports and policy 
statements required or authorized by this subsection.
  (3) The Council shall endeavor to develop within the private 
sector mechanisms to prevent, or identify and effectively 
address, obstacles to the most effective and efficient 
transportation system practicable.
  (4) [The Council shall prepare an annual report concerning 
its activities and the results of Council efforts to resolve 
industry issues, and propose whatever regulatory or legislative 
relief it considers appropriate.] The Council shall prepare an 
annual report concerning its activities and the results of 
Council efforts to resolve railroad and shipper issues and 
shall include in the report at least one recommendation to the 
Board stemming from the Council's activities and any proposal 
regarding regulations or legislation it considers appropriate. 
The Council shall include in the annual report such 
recommendations as it considers appropriate with respect to the 
performance of the Secretary and Chairman under this chapter, 
and with respect to the operation and effectiveness of meetings 
and industry developments relating to the Council's efforts, 
and such other information as it considers appropriate. Such 
annual reports shall be reviewed by the Secretary and Chairman, 
and shall include the Secretary's and Chairman's views or 
comments relating to--
          (A) the accuracy of information therein;
          (B) Council efforts and reasonableness of Council 
        positions and actions; and
          (C) any other aspects of the Council's work as they 
        may consider appropriate.
The Council may prepare other reports or develop policy 
statements as the Council considers appropriate. An annual 
report shall be submitted for each fiscal year and shall be 
submitted to the Secretary and Chairman within 90 days after 
the end of the fiscal year. Other such reports and statements 
may be submitted as the Council considers appropriate.

727. Authority of the Inspector General

  (a) In General.--The Inspector General of the Department of 
Transportation, in accordance with the mission of the Inspector 
General to prevent and detect fraud and abuse, shall have 
authority to review only the financial management, property 
management, and business operations of the Surface 
Transportation Board, including internal accounting and 
administrative control systems, to determine compliance with 
applicable Federal laws, rules, and regulations.
  (b) Duties.--In carrying out this section, the Inspector 
General shall--
          (1) keep the Chairman of the Board and the Senate 
        Committee on Commerce, Science, and Transportation and 
        the House of Representatives Committee on 
        Transportation and Infrastructure fully and currently 
        informed about problems relating to administration of 
        the internal accounting and administrative control 
        systems of the Board;
          (2) issue findings and recommendations for actions to 
        address such problems; and
          (3) report periodically to the Senate Committee on 
        Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and 
        Infrastructure on any progress made in implementing 
        actions to address such problems.
  (c) Access to Information.--In carrying out this section, the 
Inspector General may exercise authorities granted to the 
Inspector General under subsections (a) and (b) of section 6 of 
the Inspector General Act of 1978 (5 U.S.C. App.).
  (d) Authorizations of Appropriations.--
          (1) Funding.--There are authorized to be appropriated 
        to the Secretary of Transportation for use by the 
        Inspector General of the Department of Transportation 
        such sums as may be necessary to cover expenses 
        associated with activities pursuant to the authority 
        exercised under this section.
          (2) Reimbursable agreement.--In the absence of an 
        appropriation under this subsection for an expense 
        referred to in paragraph (1), the Inspector General and 
        the Board shall have a reimbursable agreement to cover 
        such expense.

728.Office of Public Assistance, Governmental Affairs, and Compliance

  (a) In General.--The Board shall maintain an Office of Public 
Assistance, Governmental Affairs, and Compliance with authority 
over public assistance and outreach, governmental affairs, and 
compliance. The Office shall--
          (1) mediate disputes between affected parties;
          (2) monitor rail carrier operations subject to the 
        Board's jurisdiction to ensure that such operations are 
        in compliance with each rail carrier's statutory and 
        regulatory responsibilities;
          (3) act as the Board's point of contact with 
        government, public and private parties;
          (4) facilitate communication among stakeholders 
        subject to the Board's jurisdiction; and
          (5) carry out other duties and powers prescribed by 
        the Board.
  (b) Customer Advocate.--The Board shall appoint a rail 
customer advocate who shall report directly to the Board. The 
rail customer advocate--
          (1) shall review or investigate rail customer 
        inquiries and complaints;
          (2) shall serve as a technical advisor to a rail 
        customer in any appropriate proceeding of the Board;
          (3) shall advise the Board in certain matters, as 
        appropriate;
          (4) shall review information regarding the cost and 
        efficiency of rail transportation;
          (5) shall carry out other duties and powers 
        prescribed by the Board; and
          (6) may participate as a party in a proceeding of the 
        Board, as appropriate.
  (c) Ombudsman.--The Board may designate an employee of the 
Board to serve as an ombudsman of the Board in regional or 
local matters of Board interest, including matters related to 
railroad service, mergers and acquisitions, or any other matter 
designated by the Board.

[Sec. 727. Definitions]

Sec. 729. Definitions

  All terms used in this chapter that are defined in subtitle 
IV shall have the meaning given those terms in that subtitle.

           *       *       *       *       *       *       *


            CHAPTER 11--NATIONAL TRANSPORTATION SAFETY BOARD

SUBCHAPTER III--AUTHORITY

           *       *       *       *       *       *       *


Sec. 1139. Assistance to families of passengers involved in rail 
                    passenger accidents

  (a) In General.--As soon as practicable after being notified 
of a rail passenger accident within the United States involving 
a rail passenger carrier and resulting in a major loss of life, 
the Chairman of the National Transportation Safety Board 
shall--
          (1) designate and publicize the name and [phone 
        number] telephone number of a director of family 
        support services who shall be an employee of the Board 
        and shall be responsible for acting as a point of 
        contact within the Federal Government for the families 
        of passengers involved in the accident and a liaison 
        between the rail passenger carrier and the families; 
        and
          (2) designate an independent nonprofit organization, 
        with experience in disasters and [post trauma] post-
        trauma communication with families, which shall have 
        primary responsibility for coordinating the emotional 
        care and support of the families of passengers involved 
        in the accident.
  (b) Responsibilities of the Board.--The Board shall have 
primary Federal responsibility for--
          (1) facilitating the recovery and identification of 
        fatally injured passengers involved in an accident 
        described in subsection (a); and
          (2) communicating with the families of passengers 
        involved in the accident as to the roles, with respect 
        to the accident and the post-accident activities, of--
                  (A) the organization designated for an 
                accident under subsection (a)(2);
                  (B) Government agencies; and
                  (C) the rail passenger carrier involved.
  (c) Responsibilities of Designated Organization.--The 
organization designated for an accident under subsection (a)(2) 
shall have the following responsibilities with respect to the 
families of passengers involved in the accident:
          (1) To provide mental health and counseling services, 
        in coordination with the disaster response team of the 
        rail passenger carrier involved.
          (2) To take such actions as may be necessary to 
        provide an environment in which the families may grieve 
        in private.
          (3) To meet with the families who have traveled to 
        the location of the accident, to contact the families 
        unable to travel to such location, and to contact all 
        affected families periodically thereafter until such 
        time as the organization, in consultation with the 
        director of family support services designated for the 
        accident under subsection (a)(1), determines that 
        further assistance is no longer needed.
          (4) To arrange a suitable memorial service, in 
        consultation with the families.
  (d) Passenger Lists.--
          (1) Requests for passenger lists.--
                  (A) Requests by director of family support 
                services.--It shall be the responsibility of 
                the director of family support services 
                designated for an accident under subsection 
                (a)(1) to request, as soon as practicable, from 
                the rail passenger carrier involved in the 
                accident a list, which is based on the best 
                available information at the time of the 
                request, of the names of the passengers that 
                were aboard the rail passenger carrier's train 
                involved in the accident. A rail passenger 
                carrier shall use reasonable efforts, with 
                respect to its unreserved trains, and 
                passengers not holding reservations on its 
                other trains, to ascertain the names of 
                passengers aboard a train involved in an 
                accident.
                  (B) Requests by designated organization.--The 
                organization designated for an accident under 
                subsection (a)(2) may request from the rail 
                passenger carrier involved in the accident a 
                list described in subparagraph (A).
          (2) Use of information.--Except as provided in 
        subsection (k), the director of family support services 
        and the organization may not release to any person 
        information on a list obtained under paragraph (1) but 
        may provide information on the list about a passenger 
        to the family of the passenger to the extent that the 
        director of family support services or the organization 
        considers appropriate.
  (e) Continuing Responsibilities of the Board.--In the course 
of its investigation of an accident described in subsection 
(a), the Board shall, to the maximum extent practicable, ensure 
that the families of passengers involved in the accident--
          (1) are briefed, prior to any public briefing, about 
        the accident and any other findings from the 
        investigation; and
          (2) are individually informed of and allowed to 
        attend any public hearings and meetings of the Board 
        about the accident.
  (f) Use of Rail Passenger Carrier Resources.--To the extent 
practicable, the organization designated for an accident under 
subsection (a)(2) shall coordinate its activities with the rail 
passenger carrier involved in the accident to facilitate the 
reasonable use of the resources of the carrier.
  (g) Prohibited Actions.--
          (1) Actions to impede the Board.--No person 
        (including a State or political subdivision thereof) 
        may impede the ability of the Board (including the 
        director of family support services designated for an 
        accident under subsection (a)(1)), or an organization 
        designated for an accident under subsection (a)(2), to 
        carry out its responsibilities under this section or 
        the ability of the families of passengers involved in 
        the accident to have contact with one another.
          (2) Unsolicited communications.--No unsolicited 
        communication concerning a potential action or 
        settlement offer for personal injury or wrongful death 
        may be made by an attorney (including any associate, 
        agent, employee, or other representative of an 
        attorney) or any potential party to the litigation, 
        including the railroad carrier or rail passenger 
        carrier, to an individual (other than an employee of 
        the rail passenger carrier) injured in the accident, or 
        to a relative of an individual involved in the 
        accident, before the 45th day following the date of the 
        accident.
          (3) Prohibition on actions to prevent mental health 
        and counseling services.--No State or political 
        subdivision thereof may prevent the employees, agents, 
        or volunteers of an organization designated for an 
        accident under subsection (a)(2) from providing mental 
        health and counseling services under subsection (c)(1) 
        in the 30-day period beginning on the date of the 
        accident. The director of family support services 
        designated for the accident under subsection (a)(1) may 
        extend such period for not to exceed an additional 30 
        days if the director determines that the extension is 
        necessary to meet the needs of the families and if 
        State and local authorities are notified of the 
        determination.
  (h) Definitions.--In this section:
          (1) Rail passenger accident.--The term ``rail 
        passenger accident'' means any rail passenger disaster 
        resulting in a major loss of life occurring in the 
        provision of--
                  (A) [interstate] intercity rail passenger 
                transportation (as such term is defined in 
                section 24102); or
                  (B) interstate or intrastate high-speed rail 
                (as such term is defined in section 26105) 
                transportation,
        regardless of its cause or suspected cause.
          (2) Rail passenger carrier.--The term ``rail 
        passenger carrier'' means a rail carrier providing--
                  (A) interstate intercity rail passenger 
                transportation (as such term is defined in 
                section 24102); or
                  (B) [interstate or intrastate] high-speed 
                rail (as such term is defined in section 
                [26105)] 26106(b)(4)) transportation,
        except that such term does not include a tourist, 
        historic, scenic, or excursion rail carrier.
          (3) Passenger.--The term ``passenger'' includes--
                  (A) an employee of a rail passenger carrier 
                aboard a train;
                  (B) any other person aboard the train without 
                regard to whether the person paid for the 
                transportation, occupied a seat, or held a 
                reservation for the rail transportation; and
                  (C) any other person injured or killed in a 
                rail passenger accident, as determined 
                appropriate by the Board.
  (i) Limitation on Statutory Construction.--Nothing in this 
section may be construed as limiting the actions that a rail 
passenger carrier may take, or the obligations that a rail 
passenger carrier may have, in providing assistance to the 
families of passengers involved in a rail passenger accident.
  (j) Relinquishment of Investigative Priority.--
          (1) General rule.--This section [(other than 
        subsection (g))] (other than subsections (g) and (k)) 
        shall not apply to a [railroad passenger accident] rail 
        passenger accident if the Board has relinquished 
        investigative priority under section 1131(a)(2)(B) and 
        the Federal agency to which the Board relinquished 
        investigative priority is willing and able to provide 
        assistance to the victims and families of the 
        passengers involved in the accident.
          (2) Board assistance.--If this section does not apply 
        to a [railroad passenger accident] rail passenger 
        accident because the Board has relinquished 
        investigative priority with respect to the accident, 
        the Board shall assist, to the maximum extent possible, 
        the agency to which the Board has relinquished 
        investigative priority in assisting families with 
        respect to the accident.
  (k) Savings Clause.--Nothing in this section shall be 
construed to abridge the authority of the Board or the 
Secretary of Transportation to investigate the causes or 
circumstances of any rail accident, including development of 
information regarding the nature of injuries sustained and the 
manner in which they were sustained for the purposes of 
determining compliance with existing laws and regulations or 
for identifying means of preventing similar injuries in the 
future, or both.

                 SUBTITLE IV--INTERSTATE TRANSPORTATION

                              PART A--RAIL

[Sec. 10101. Rail transportation policy

  In regulating the railroad industry, it is the policy of the 
United States Government--
          [(1) to allow, to the maximum extent possible, 
        competition and the demand for services to establish 
        reasonable rates for transportation by rail;
          [(2) to minimize the need for Federal regulatory 
        control over the rail transportation system and to 
        require fair and expeditious regulatory decisions when 
        regulation is required;
          [(3) to promote a safe and efficient rail 
        transportation system by allowing rail carriers to earn 
        adequate revenues, as determined by the Board;
          [(4) to ensure the development and continuation of a 
        sound rail transportation system with effective 
        competition among rail carriers and with other modes, 
        to meet the needs of the public and the national 
        defense;
          [(5) to foster sound economic conditions in 
        transportation and to ensure effective competition and 
        coordination between rail carriers and other modes;
          [(6) to maintain reasonable rates where there is an 
        absence of effective competition and where rail rates 
        provide revenues which exceed the amount necessary to 
        maintain the rail system and to attract capital;
          [(7) to reduce regulatory barriers to entry into and 
        exit from the industry;
          [(8) to operate transportation facilities and 
        equipment without detriment to the public health and 
        safety;
          [(9) to encourage honest and efficient management of 
        railroads;
          [(10) to require rail carriers, to the maximum extent 
        practicable, to rely on individual rate increases, and 
        to limit the use of increases of general applicability;
          [(11) to encourage fair wages and safe and suitable 
        working conditions in the railroad industry;
          [(12) to prohibit predatory pricing and practices, to 
        avoid undue concentrations of market power, and to 
        prohibit unlawful discrimination;
          [(13) to ensure the availability of accurate cost 
        information in regulatory proceedings, while minimizing 
        the burden on rail carriers of developing and 
        maintaining the capability of providing such 
        information;
          [(14) to encourage and promote energy conservation; 
        and
          [(15) to provide for the expeditious handling and 
        resolution of all proceedings required or permitted to 
        be brought under this part.]

10101. Rail transportation policy

  In regulating the railroad industry, it is the policy of the 
United States Government to balance the following objectives:
          (1) To promote a safe and efficient rail 
        transportation system.
          (2) To allow, to the maximum extent possible, 
        competition and the demand for services to establish 
        reasonable rates for transportation by rail.
          (3) To protect rail shippers and to maintain 
        reasonable rates where there is an absence of effective 
        competition and where rail rates provide revenues that 
        exceed the amount necessary to maintain and expand the 
        rail system and to attract capital.
          (4) To foster the continuation and expansion of a 
        sound rail transportation system while also preserving 
        effective competition among rail carriers and with 
        other modes to meet the needs of the public and 
        National defense.
          (5) To ensure that rail carriers can earn adequate 
        revenues to provide and sustain consistent, efficient, 
        and reliable transportation services and to maintain 
        and expand rail infrastructure, equipment, and 
        technology.
          (6) To prohibit predatory pricing and practices, 
        avoid undue concentrations of market power, and to 
        prohibit unlawful discrimination.
          (7) To provide fair and expeditious regulatory 
        decisions and ensure that the regulatory process is 
        accessible and cost-effective for all affected parties.
          (8) To advance the environmental and energy 
        efficiency advantages of rail transportation and 
        encourage energy conservation and environmentally-
        responsible practices among rail carriers.
          (9) To foster intercity and commuter rail passenger 
        service.
          (10) To encourage fair wages and safe and suitable 
        working conditions in the railroad industry.

Sec. 10102. Definitions

  In this part--
          (1) ``Board'' means the Surface Transportation Board;
          (2) ``car service'' includes (A) the use, control, 
        supply, movement, distribution, exchange, interchange, 
        and return of locomotives, cars, other vehicles, and 
        special types of equipment used in the transportation 
        of property by a rail carrier, and (B) the supply of 
        trains by a rail carrier;
          (3) ``control'', when referring to a relationship 
        between persons, includes actual control, legal 
        control, and the power to exercise control, through or 
        by (A) common directors, officers, stockholders, a 
        voting trust, or a holding or investment company, or 
        (B) any other means;
          (4) ``interchange commitment'' means a contractual 
        agreement between two or more rail carriers subject to 
        the jurisdiction of the Board reached as part of a sale 
        or lease of a rail line for which the approval of the 
        Board is required under chapter 109 or 113 of this 
        part, which limits the incentive or the ability of the 
        purchaser or tenant rail carrier to interchange traffic 
        with a rail carrier other than the seller or lessor 
        rail carrier;
          [(4)] (5) ``person'', in addition to its meaning 
        under section 1 of title 1, includes a trustee, 
        receiver, assignee, or personal representative of a 
        person;
          [(5)] (6) ``rail carrier'' means a person providing 
        common carrier railroad transportation for 
        compensation, but does not include street, suburban, or 
        interurban electric railways not operated as part of 
        the general system of rail transportation;
          [(6)] (7) ``railroad'' includes--
                  (A) a bridge, car float, lighter, ferry, and 
                intermodal equipment used by or in connection 
                with a railroad;
                  (B) the road used by a rail carrier and owned 
                by it or operated under an agreement; and
                  (C) a switch, spur, track, terminal, terminal 
                facility, and a freight depot, yard, and 
                ground, used or necessary for transportation;
          [(7)] (8) ``rate'' means a rate or charge for 
        transportation;
          [(8)] (9) ``State'' means a State of the United 
        States and the District of Columbia;
          [(9)] (10) ``transportation'' includes--
                  (A) a locomotive, car, vehicle, vessel, 
                warehouse, wharf, pier, dock, yard, property, 
                facility, instrumentality, or equipment of any 
                kind related to the movement of passengers or 
                property, or both, by rail, regardless of 
                ownership or an agreement concerning use; and
                  (B) services related to that movement, 
                including receipt, delivery, elevation, 
                transfer in transit, refrigeration, icing, 
                ventilation, storage, handling, and interchange 
                of passengers and property; and
          [(10)] (11) ``United States'' means the States of the 
        United States and the District of Columbia.

                       CHAPTER 105--JURISDICTION

Sec. 10502. Authority to exempt rail carrier transportation

  (a) In a matter related to a rail carrier providing 
transportation subject to the jurisdiction of the Board under 
this part, [the Board, to the maximum extent consistent with 
this part, shall] the Board shall exempt a person, class of 
persons, or a transaction or service whenever the Board finds 
that the application in whole or in part of a provision of this 
part--
          (1) is not necessary to carry out the transportation 
        policy of section 10101 of this title; and
          (2) either--
                  (A) the transaction or service is of limited 
                scope; or
                  (B) the application in whole or in part of 
                the provision is not needed to protect shippers 
                from the abuse of market power.
  (b) The Board may, where appropriate, begin a proceeding 
under this section on its own initiative or on application by 
the Secretary of Transportation or an interested party. The 
Board shall, within 90 days after receipt of any such 
application, determine whether to begin an appropriate 
proceeding. If the Board decides not to begin a class exemption 
proceeding, the reasons for the decision shall be published in 
the Federal Register. Any proceeding begun as a result of an 
application under this subsection shall be completed within 9 
months after it is begun.
  (c) The Board may specify the period of time during which an 
exemption granted under this section is effective.
  (d) The Board may revoke an exemption, to the extent it 
specifies, when it finds that application in whole or in part 
of a provision of this part to the person, class, or 
transportation is necessary to carry out the transportation 
policy of section 10101 of this [title.] title or to protect 
shippers from the abuse of market power. The Board shall, 
within 90 days after receipt of a request for revocation under 
this subsection, determine whether to begin an appropriate 
proceeding. If the Board decides not to begin a proceeding to 
revoke a class exemption, the reasons for the decision shall be 
published in the Federal Register. Any proceeding begun as a 
result of a request under this subsection shall be completed 
within 9 months after it is begun.
  (e) No exemption order issued pursuant to this section shall 
operate to relieve any rail carrier from an obligation to 
provide contractual terms for liability and claims which are 
consistent with the provisions of section 11706 of this title. 
Nothing in this subsection or section 11706 of this title shall 
prevent rail carriers from offering alternative terms nor give 
the Board the authority to require any specific level of rates 
or services based upon the provisions of section 11706 of this 
title.
  (f) The Board may exercise its authority under this section 
to exempt transportation that is provided by a rail carrier as 
part of a continuous intermodal movement.
  (g) The Board may not exercise its authority under this 
section to relieve a rail carrier of its obligation to protect 
the interests of employees as required by this part.

                           CHAPTER 107--RATES

                    SUBCHAPTER I--GENERAL AUTHORITY

Sec. 10701. Standards for rates, classifications, through routes, 
                    rules, and practices

  (a) A through route established by a rail carrier must be 
reasonable. Divisions of joint rates by rail carriers must be 
made without unreasonable discrimination against a 
participating carrier and must be reasonable.
  (b) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part may not discriminate 
in its rates against a connecting line of another rail carrier 
providing transportation subject to the jurisdiction of the 
Board under this part or unreasonably discriminate against that 
line in the distribution of traffic that is not routed 
specifically by the shipper.
  (c) Except as provided in subsection (d) of this section and 
unless a rate is prohibited by a provision of this part, a rail 
carrier providing transportation subject to the jurisdiction of 
the Board under this part may establish any rate for 
transportation or other service provided by the rail carrier.
  (d)(1) If the Board determines, under section 10707 of this 
title, that a rail carrier has market dominance over the 
transportation to which a particular rate applies, the rate 
established by such carrier for such transportation must be 
reasonable.
  (2) In determining whether a rate established by a rail 
carrier is reasonable for purposes of this section, the Board 
shall give due consideration to--
          (A) the amount of traffic which is transported at 
        revenues which do not contribute to going concern value 
        and the efforts made to minimize such traffic;
          (B) the amount of traffic which contributes only 
        marginally to fixed costs and the extent to which, if 
        any, rates on such traffic can be changed to maximize 
        the revenues from such traffic; and
          (C) the carrier's mix of rail traffic to determine 
        whether one commodity is paying an unreasonable share 
        of the carrier's overall revenues,
recognizing the policy of this part that rail carriers shall 
earn adequate revenues, as established by the Board under 
section 10704(a)(2) of this title.
  [(3) The Board shall, within one year after January 1, 1996, 
complete the pending Interstate Commerce Commission non-coal 
rate guidelines proceeding to establish a simplified and 
expedited method for determining the reasonableness of 
challenged rail rates in those cases in which a full stand-
alone cost presentation is too costly, given the value of the 
case.]
  (3) The Board shall maintain a simplified and expedited 
method for determining the reasonableness of challenged rates 
in those cases in which a full stand-alone cost presentation is 
too costly, given the value of the case.

           *       *       *       *       *       *       *


Sec. 10704. Authority and criteria: rates, classifications, rules, and 
                    practices prescribed by Board

  (a)(1) When the Board, after a full hearing, decides that a 
rate charged or collected by a rail carrier for transportation 
subject to the jurisdiction of the Board under this part, or 
that a classification, rule, or practice of that carrier, does 
or will violate this part, the Board may prescribe the maximum 
rate, classification, rule, or practice to be followed. The 
Board may order the carrier to stop the violation. When a rate, 
classification, rule, or practice is prescribed under this 
subsection, the affected carrier may not publish, charge, or 
collect a different rate and shall adopt the classification and 
observe the rule or practice prescribed by the Board.
  (2) The Board shall maintain and revise as necessary 
standards and procedures for establishing revenue levels for 
rail carriers providing transportation subject to its 
jurisdiction under this part that are adequate, under honest, 
economical, and efficient management, to cover total operating 
expenses, including depreciation and obsolescence, plus a 
reasonable and economic profit or return (or both) on capital 
employed in the business. The Board shall make an adequate and 
continuing effort to assist those carriers in attaining revenue 
levels prescribed under this paragraph. Revenue levels 
established under this paragraph should--
          (A) provide a flow of net income plus depreciation 
        adequate to support prudent capital outlays, assure the 
        repayment of a reasonable level of debt, permit the 
        raising of needed equity capital, and cover the effects 
        of inflation; and
          (B) attract and retain capital in amounts adequate to 
        provide a sound transportation system in the United 
        States.
  (3) On the basis of the standards and procedures described in 
paragraph (2), the Board shall annually determine which rail 
carriers are earning adequate revenues.
  (b) [The Board may begin a proceeding under this section only 
on complaint.] The Board may begin a proceeding under 
subsection (a)(1) on its own initiative or upon complaint, 
except that a proceeding to determine the reasonableness of the 
level of a rate charged by a carrier may only be initiated upon 
complaint. A complaint under subsection (a) of this section 
must be made under section 11701 of this title, but the 
proceeding may also be in extension of a complaint pending 
before the Board.
  (c) In a proceeding to challenge the reasonableness of a 
rate, the Board shall make its determination as to the 
reasonableness of the challenged rate--
          (1) within 9 months after the close of the 
        administrative record if the determination is based 
        upon a stand-alone cost presentation; or
          (2) within 6 months after the close of the 
        administrative record if the determination is based 
        upon the methodology adopted by the Board pursuant to 
        section 10701(d)(3).
  (d) Within 9 months after January 1, 1996, the Board shall 
establish procedures to ensure expeditious handling of 
challenges to the reasonableness of railroad rates. The 
procedures shall include appropriate measures for avoiding 
delay in the discovery and evidentiary phases of such 
proceedings and exemption or revocation proceedings, including 
appropriate sanctions for such delay, and for ensuring prompt 
disposition of motions and interlocutory administrative 
appeals.

Sec. 10705. Authority: through routes, joint classifications, rates, 
                    and divisions prescribed by Board

  (a)(1) The Board may, and shall when it considers it 
desirable in the public interest, prescribe through routes, 
joint classifications, joint rates, the division of joint 
rates, and the conditions under which those routes must be 
operated, for a rail carrier providing transportation subject 
to the jurisdiction of the Board under this part.
  (2) The Board may require a rail carrier to include in a 
through route substantially less than the entire length of its 
railroad and any intermediate railroad operated with it under 
common management or control if that intermediate railroad lies 
between the terminals of the through route only when--
          (A) required under section 10710, 10741, 10742, or 
        11102 of this title;
          (B) inclusion of those lines would make the through 
        route unreasonably long when compared with a 
        practicable alternative through route that could be 
        established; or
          (C) the Board decides that the proposed through route 
        is needed to provide adequate, and more efficient or 
        economic, transportation.
The Board shall give reasonable preference, subject to this 
subsection, to the rail carrier originating the traffic when 
prescribing through routes.
  (b) The Board shall prescribe the division of joint rates to 
be received by a rail carrier providing transportation subject 
to its jurisdiction under this part when it decides that a 
division of joint rates established by the participating 
carriers under section 10703 of this title, or under a decision 
of the Board under subsection (a) of this section, does or will 
violate section 10701 of this title.
  (c) If a division of a joint rate prescribed under a decision 
of the Board is later found to violate section 10701 of this 
title, the Board may decide what division would have been 
reasonable and order adjustment to be made retroactive to the 
date the complaint was filed, the date the order for an 
investigation was made, or a later date that the Board decides 
is justified. The Board may make a decision under this 
subsection effective as part of its original decision.

[Sec. 10706. Rate agreements: exemption from antitrust laws

  [(a)(1) In this subsection--
          [(A) the term ``affiliate'' means a person 
        controlling, controlled by, or under common control or 
        ownership with another person and ``ownership'' refers 
        to equity holdings in a business entity of at least 5 
        percent;
          [(B) the term ``single-line rate'' refers to a rate 
        or allowance proposed by a single rail carrier that is 
        applicable only over its line and for which the 
        transportation (exclusive of terminal services by 
        switching, drayage or other terminal carriers or 
        agencies) can be provided by that carrier; and
          [(C) the term ``practicably participates in the 
        movement'' shall have such meaning as the Board shall 
        by regulation prescribe.
  [(2)(A) A rail carrier providing transportation subject to 
the jurisdiction of the Board under this part that is a party 
to an agreement of at least 2 rail carriers that relates to 
rates (including charges between rail carriers and compensation 
paid or received for the use of facilities and equipment), 
classifications, divisions, or rules related to them, or 
procedures for joint consideration, initiation, publication, or 
establishment of them, shall apply to the Board for approval of 
that agreement under this subsection. The Board shall approve 
the agreement only when it finds that the making and carrying 
out of the agreement will further the transportation policy of 
section 10101 of this title and may require compliance with 
conditions necessary to make the agreement further that policy 
as a condition of its approval. If the Board approves the 
agreement, it may be made and carried out under its terms and 
under the conditions required by the Board, and the Sherman Act 
(15 U.S.C. 1, et seq.), the Clayton Act (15 U.S.C. 12, et 
seq.), the Federal Trade Commission Act (15 U.S.C. 41, et 
seq.), sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 
and 9), and the Act of June 19, 1936 (15 U.S.C. 13, 13a, 13b, 
21a) do not apply to parties and other persons with respect to 
making or carrying out the agreement. However, the Board may 
not approve or continue approval of an agreement when the 
conditions required by it are not met or if it does not receive 
a verified statement under subparagraph (B) of this paragraph.
  [(B) The Board may approve an agreement under subparagraph 
(A) of this paragraph only when the rail carriers applying for 
approval file a verified statement with the Board. Each 
statement must specify for each rail carrier that is a party to 
the agreement--
          [(i) the name of the carrier;
          [(ii) the mailing address and telephone number of its 
        headquarter's office; and
          [(iii) the names of each of its affiliates and the 
        names, addresses, and affiliates of each of its 
        officers and directors and of each person, together 
        with an affiliate, owning or controlling any debt, 
        equity, or security interest in it having a value of at 
        least $1,000,000.
  [(3)(A) An organization established or continued under an 
agreement approved under this subsection shall make a final 
disposition of a rule or rate docketed with it by the 120th day 
after the proposal is docketed. Such an organization may not--
          [(i) permit a rail carrier to discuss, to participate 
        in agreements related to, or to vote on single-line 
        rates proposed by another rail carrier, except that for 
        purposes of general rate increases and broad changes in 
        rates, classifications, rules, and practices only, if 
        the Board finds at any time that the implementation of 
        this clause is not feasible, it may delay or suspend 
        such implementation in whole or in part;
          [(ii) permit a rail carrier to discuss, to 
        participate in agreements related to, or to vote on 
        rates related to a particular interline movement unless 
        that rail carrier practicably participates in the 
        movement; or
          [(iii) if there are interline movements over two or 
        more routes between the same end points, permit a 
        carrier to discuss, to participate in agreements 
        related to, or to vote on rates except with a carrier 
        which forms part of a particular single route. If the 
        Board finds at any time that the implementation of this 
        clause is not feasible, it may delay or suspend such 
        implementation in whole or in part.
  [(B)(i) In any proceeding in which a party alleges that a 
rail carrier voted or agreed on a rate or allowance in 
violation of this subsection, that party has the burden of 
showing that the vote or agreement occurred. A showing of 
parallel behavior does not satisfy that burden by itself.
  [(ii) In any proceeding in which it is alleged that a carrier 
was a party to an agreement, conspiracy, or combination in 
violation of a Federal law cited in subsection (a)(2)(A) of 
this section or of any similar State law, proof of an 
agreement, conspiracy, or combination may not be inferred from 
evidence that two or more rail carriers acted together with 
respect to an interline rate or related matter and that a party 
to such action took similar action with respect to a rate or 
related matter on another route or traffic. In any proceeding 
in which such a violation is alleged, evidence of a discussion 
or agreement between or among such rail carrier and one or more 
other rail carriers, or of any rate or other action resulting 
from such discussion or agreement, shall not be admissible if 
the discussion or agreement--
          [(I) was in accordance with an agreement approved 
        under paragraph (2) of this subsection; or
          [(II) concerned an interline movement of the rail 
        carrier, and the discussion or agreement would not, 
        considered by itself, violate the laws referred to in 
        the first sentence of this clause.
                In any proceeding before a jury, the court 
                shall determine whether the requirements of 
                subclause (I) or (II) are satisfied before 
                allowing the introduction of any such evidence.
  [(C) An organization described in subparagraph (A) of this 
paragraph shall provide that transcripts or sound recordings be 
made of all meetings, that records of votes be made, and that 
such transcripts or recordings and voting records be submitted 
to the Board and made available to other Federal agencies in 
connection with their statutory responsibilities over rate 
bureaus, except that such material shall be kept confidential 
and shall not be subject to disclosure under section 552 of 
title 5, United States Code.
  [(4) Notwithstanding any other provision of this subsection, 
one or more rail carriers may enter into an agreement, without 
obtaining prior Board approval, that provides solely for 
compilation, publication, and other distribution of rates in 
effect or to become effective. The Sherman Act (15 U.S.C. 1 et 
seq.), the Clayton Act (15 U.S.C. 12 et seq.), the Federal 
Trade Commission Act (15 U.S.C. 41 et seq.), sections 73 and 74 
of the Wilson Tariff Act (15 U.S.C. 8 and 9), and the Act of 
June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a) shall not apply to 
parties and other persons with respect to making or carrying 
out such agreement. However, the Board may, upon application or 
on its own initiative, investigate whether the parties to such 
an agreement have exceeded its scope, and upon a finding that 
they have, the Board may issue such orders as are necessary, 
including an order dissolving the agreement, to ensure that 
actions taken pursuant to the agreement are limited as provided 
in this paragraph.
  [(5)(A) Whenever two or more shippers enter into an agreement 
to discuss among themselves that relates to the amount of 
compensation such shippers propose to be paid by rail carriers 
providing transportation subject to the jurisdiction of the 
Board under this part, for use by such rail carriers of rolling 
stock owned or leased by such shippers, the shippers shall 
apply to the Board for approval of that agreement under this 
paragraph. The Board shall approve the agreement only when it 
finds that the making and carrying out of the agreement will 
further the transportation policy set forth in section 10101 of 
this title and may require compliance with conditions necessary 
to make the agreement further that policy as a condition of 
approval. If the Board approves the agreement, it may be made 
and carried out under its terms and under the terms required by 
the Board, and the antitrust laws set forth in paragraph (2) of 
this subsection do not apply to parties and other persons with 
respect to making or carrying out the agreement. The Board 
shall approve or disapprove an agreement under this paragraph 
within one year after the date application for approval of such 
agreement is made.
  [(B) If the Board approves an agreement described in 
subparagraph (A) of this paragraph and the shippers entering 
into such agreement and the rail carriers proposing to use 
rolling stock owned or leased by such shippers, under payment 
by such carriers or under a published allowance, are unable to 
agree upon the amount of compensation to be paid for the use of 
such rolling stock, any party directly involved in the 
negotiations may require that the matter be settled by 
submitting the issues in dispute to the Board. The Board shall 
render a binding decision, based upon a standard of 
reasonableness and after taking into consideration any past 
precedents on the subject matter of the negotiations, no later 
than 90 days after the date of the submission of the dispute to 
the Board.
  [(C) Nothing in this paragraph shall be construed to change 
the law in effect prior to October 1, 1980, with respect to the 
obligation of rail carriers to utilize rolling stock owned or 
leased by shippers.
  [(b) The Board may require an organization established or 
continued under an agreement approved under this section to 
maintain records and submit reports. The Board may inspect a 
record maintained under this section.
  [(c) The Board may review an agreement approved under 
subsection (a) of this section and shall change the conditions 
of approval or terminate it when necessary to comply with the 
public interest and subsection (a). The Board shall postpone 
the effective date of a change of an agreement under this 
subsection for whatever period it determines to be reasonably 
necessary to avoid unreasonable hardship.
  [(d) The Board may begin a proceeding under this section on 
its own initiative or on application. Action of the Board under 
this section--
          [(1) approving an agreement;
          [(2) denying, ending, or changing approval;
          [(3) prescribing the conditions on which approval is 
        granted; or
          [(4) changing those conditions,
has effect only as related to application of the antitrust laws 
referred to in subsection (a) of this section.
  [(e)(1) The Federal Trade Commission, in consultation with 
the Antitrust Division of the Department of Justice, shall 
prepare periodically an assessment of, and shall report to the 
Board on--
          [(A) possible anticompetitive features of--
                  [(i) agreements approved or submitted for 
                approval under subsection (a) of this section; 
                and
                  [(ii) an organization operating under those 
                agreements; and
          [(B) possible ways to alleviate or end an 
        anticompetitive feature, effect, or aspect in a manner 
        that will further the goals of this part and of the 
        transportation policy of section 10101 of this title.
  [(2) Reports received by the Board under this subsection 
shall be published and made available to the public under 
section 552(a) of title 5.]

10706. Rate agreements

  (a) In General.--In any proceeding in which it is alleged 
that a carrier was a party to an agreement, conspiracy, or 
combination in violation of the Sherman Act (15 U.S.C. 1 et 
seq.), the Clayton Act (15 U.S.C. 12 et seq.), sections 73 and 
74 of the Wilson Tariff Act (15 U.S.C. 8 and 9), or the Act of 
June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a) or of any similar 
State law, proof of an agreement, conspiracy, or combination 
may not be inferred from evidence that two or more rail 
carriers acted together with respect to an interline rate or 
related matter and that a party to such action took similar 
action with respect to a rate or related matter on another 
route or traffic.
  (b) Inadmissible Evidence.--In any proceeding in which such a 
violation is alleged, evidence of a discussion or agreement 
between or among such rail carrier and one or more other rail 
carriers, or of any rate or other action resulting from such 
discussion or agreement, shall not be admissible if the 
discussion or agreement concerned an interline movement of the 
rail carrier, and the discussion or agreement would not, 
considered by itself, violate the laws referred to in 
subsection (a).
  (c) Determination by Court.--In any such proceeding before a 
jury, the court shall determine whether the requirements of 
subsection (b) are satisfied before allowing the introduction 
of any such evidence.

           *       *       *       *       *       *       *


Sec. 10709. Contracts

  (a) One or more rail carriers providing transportation 
subject to the jurisdiction of the Board under this part may 
enter into a contract with one or more purchasers of rail 
services to provide specified services under specified rates 
and conditions.
  (b) A party to a contract entered into under this section 
shall have no duty in connection with services provided under 
such contract other than those duties specified by the terms of 
the contract.
  (c)(1) A contract that is authorized by this section, and 
transportation under such contract, shall not be subject to 
this part, and may not be subsequently challenged before the 
Board or in any court on the grounds that such contract 
violates a provision of this part.
  (2) The exclusive remedy for any alleged breach of a contract 
entered into under this section shall be an action in an 
appropriate State court or United States district court, unless 
the parties otherwise agree. This section does not confer 
original jurisdiction on the district courts of the United 
States based on section 1331 or 1337 of title 28, United States 
Code.
  (d)(1) A summary of each contract for the transportation of 
agricultural products (including grain, as defined in section 3 
of the United States Grain Standards Act (7 U.S.C. 75) and 
products thereof) entered into under this section shall be 
filed with the Board, containing such nonconfidential 
information as the Board prescribes. The Board shall publish 
special rules for such contracts in order to ensure that the 
essential terms of the contract are available to the general 
public.
  (2) Documents, papers, and records (and any copies thereof) 
relating to a contract described in subsection (a) shall not be 
subject to the mandatory disclosure requirements of section 552 
of title 5.
  (e) Any lawful contract between a rail carrier and one or 
more purchasers of rail service that was in effect on October 
1, 1980, shall be considered a contract authorized by this 
section.
  (f) A rail carrier that enters into a contract as authorized 
by this section remains subject to the common carrier 
obligation set forth in section 11101, with respect to rail 
transportation not provided under such a contract.
  (g)(1) No later than 30 days after the date of filing of a 
summary of a contract under this section, the Board may, on 
complaint, begin a proceeding to review such contract on the 
grounds described in this subsection.
  (2)(A) A complaint may be filed under this subsection--
          (i) by a shipper on the grounds that such shipper 
        individually will be harmed because the proposed 
        contract unduly impairs the ability of the contracting 
        rail carrier or carriers to meet their common carrier 
        obligations to the complainant under section 11101 of 
        this title; or
          (ii) by a port only on the grounds that such port 
        individually will be harmed because the proposed 
        contract will result in unreasonable discrimination 
        against such port.
  (B) In addition to the grounds for a complaint described in 
subparagraph (A) of this paragraph, a complaint may be filed by 
a shipper of agricultural commodities on the grounds that such 
shipper individually will be harmed because--
          (i) the rail carrier has unreasonably discriminated 
        by refusing to enter into a contract with such shipper 
        for rates and services for the transportation of the 
        same type of commodity under similar conditions to the 
        contract at issue, and that shipper was ready, willing, 
        and able to enter into such a contract at a time 
        essentially contemporaneous with the period during 
        which the contract at issue was offered; or
          (ii) the proposed contract constitutes a destructive 
        competitive practice under this part.
        In making a determination under clause (ii) of this 
        subparagraph, the Board shall consider the difference 
        between contract rates and published single car rates.
  (C) For purposes of this paragraph, the term ``unreasonable 
discrimination'' has the same meaning as such term has under 
section 10741 of this title.
  (3)(A) Within 30 days after the date a proceeding is 
commenced under paragraph (1) of this subsection, or within 
such shorter time period after such date as the Board may 
establish, the Board shall determine whether the contract that 
is the subject of such proceeding is in violation of this 
section.
  (B) If the Board determines, on the basis of a complaint 
filed under paragraph (2)(B)(i) of this subsection, that the 
grounds for a complaint described in such paragraph have been 
established with respect to a rail carrier, the Board shall, 
subject to the provisions of this section, order such rail 
carrier to provide rates and service substantially similar to 
the contract at issue with such differentials in terms and 
conditions as are justified by the evidence.
  [(h)(1) Any rail carrier may, in accordance with the terms of 
this section, enter into contracts for the transportation of 
agricultural commodities (including forest products, but not 
including wood pulp, wood chips, pulpwood or paper) involving 
the utilization of carrier owned or leased equipment not in 
excess of 40 percent of the capacity of such carrier's owned or 
leased equipment by major car type (plain boxcars, covered 
hopper cars, gondolas and open top hoppers, coal cars, bulkhead 
flatcars, pulpwood rackcars, and flatbed equipment, including 
TOFC/COFC).
  [(2) The Board may, on request of a rail carrier or other 
party or on its own initiative, grant such relief from the 
limitations of paragraph (1) of this subsection as the Board 
considers appropriate, if it appears that additional equipment 
may be made available without impairing the rail carrier's 
ability to meet its common carrier obligations under section 
11101 of this title.
  [(3)(A) This subsection shall cease to be effective after 
September 30, 1998.
  [(B) Before October 1, 1997, the National Grain Car Council 
and the Railroad-Shipper Transportation Advisory Council shall 
make recommendations to Congress on whether to extend the 
effectiveness of or otherwise modify this subsection.]

10710. Bottleneck and terminal switching rates

  (a) A Class I rail carrier, or other rail carrier as deemed 
appropriate by the Board, that provides a rate for 
transportation between an origin and destination either as a 
single line movement or as part of an interline movement and 
over which the carrier has market dominance pursuant to section 
10707 shall, upon the reasonable request of a rail customer, 
establish a bottleneck rate for the purpose of providing 
transportation over a bottleneck segment located between such 
an origin and destination pursuant to this section. If the rail 
carrier contends that the transportation is not subject to 
market dominance under that section, the rail carrier shall 
seek an expedited determination of that issue from the Board.
  (b) Such a carrier shall establish such a rate and provide 
service upon such request without regard to whether the shipper 
has made arrangements for transportation for any other part of 
that movement.
  (c)(1) If the Board determines, under section 10707 of this 
title, that such a rail carrier has market dominance between 
the origin and destination, the bottleneck rate established for 
transportation pursuant to this section must be reasonable.
  (2)(A) Not later than one year after the date of enactment of 
the Surface Transportation Board Reauthorization Act of 2009, 
the Board shall establish and maintain standards for 
determining whether a bottleneck rate established by a rail 
carrier is reasonable for purposes of this section and 
establish a simplified and expedited method for determining the 
reasonableness of challenged bottleneck rates. In developing 
those standards the Board shall consider rail carriers' need to 
earn adequate revenues to provide and sustain consistent, 
efficient, and reliable transportation services and to maintain 
the national rail system.
  (B) In developing the standards, the Board shall include, as 
part of a reasonable rate--
          (i) operating costs, including any additional labor 
        costs, of providing the requested transportation 
        service over the bottleneck segment;
          (ii) maintenance costs associated with providing the 
        requested transportation service;
          (iii) additional capital and investment costs 
        required to perform the requested transportation 
        service over the bottleneck segment;
          (iv) a reasonable return on embedded capital used for 
        the requested transportation service over the 
        bottleneck segment sufficient to meet the rail 
        carrier's cost of capital or, if such cost is not 
        available, the rail industry cost of capital;
          (v) a reasonable contribution, to the extent 
        appropriate, to that carrier's network infrastructure 
        costs of the non-bottleneck segment of the route 
        offered by the incumbent rail carrier that is 
        sufficient, along with other traffic on the segment, to 
        maintain the non-bottleneck segment; and
          (vi) any other contributing factors appropriate to 
        meet the consideration in subparagraph (A).
  (d) In any proceeding in which a rail customer challenges a 
bottleneck rate established under this section as unreasonable, 
the burden of proof that the rate is reasonable shall be on the 
rail carrier.
  (e) In this section:
          (1) The term ``bottleneck rate'' means a rate for 
        transportation over a bottleneck segment.
          (2) The term ``bottleneck segment'' means the rail 
        facilities, including rail facilities located entirely 
        in terminal areas, between an origin on the carrier's 
        system and an interchange or between a destination on 
        the carrier's system and an interchange.
          (3) The term ``interchange'' means an interchange on 
        such a rail carrier's system that exists on the date of 
        the shipper's request for a rate covered by this 
        section that--
                  (A) is practicable and would not 
                significantly adversely affect such rail 
                carrier's network efficiency; and
                  (B) would not significantly impair service to 
                other customers of such rail carrier.

                         CHAPTER 109--LICENSING

Sec. 10901. Authorizing construction and operation of railroad lines

  (a) A person may--
          (1) construct an extension to any of its railroad 
        lines;
          (2) construct an additional railroad line;
          (3) provide transportation over, or by means of, an 
        extended or additional railroad line; or
          (4) in the case of a person other than a rail 
        carrier, acquire a railroad line or acquire or operate 
        an extended or additional railroad line,
only if the Board issues a certificate authorizing such 
activity under subsection (c).
  (b) A proceeding to grant authority under subsection (a) of 
this section begins when an application is filed. On receiving 
the application, the Board shall give reasonable public notice, 
including notice to the Governor of any affected State, of the 
beginning of such proceeding.
  (c) The Board shall issue a certificate authorizing 
activities for which such authority is requested in an 
application filed under subsection (b) unless the Board finds 
that such activities are inconsistent with the public 
convenience and necessity. Such certificate may approve the 
application as filed, or with modifications, and may require 
compliance with conditions (other than labor protection 
conditions) the Board finds necessary in the public interest. 
The Board may not issue a certificate authorizing an 
acquisition or operation transaction under subsection (a)(4) 
that includes interchange commitments or other mechanisms 
restricting the purchaser's or tenant's ability to interchange 
with any other carrier unless such commitments or mechanisms 
are reasonable and in the public interest.
  (d)(1) When a certificate has been issued by the Board under 
this section authorizing the construction or extension of a 
railroad line, no other rail carrier may block any construction 
or extension authorized by such certificate by refusing to 
permit the carrier to cross its property if--
          (A) the construction does not unreasonably interfere 
        with the operation of the crossed line;
          (B) the operation does not materially interfere with 
        the operation of the crossed line; and
          (C) the owner of the crossing line compensates the 
        owner of the crossed line.
  (2) If the parties are unable to agree on the terms of 
operation or the amount of payment for purposes of paragraph 
(1) of this subsection, either party may submit the matters in 
dispute to the Board for determination. The Board shall make a 
determination under this paragraph within 120 days after the 
dispute is submitted for determination.

Sec. 10902. Short line purchases by Class II and Class III rail 
                    carriers

  (a) A Class II or Class III rail carrier providing 
transportation subject to the jurisdiction of the Board under 
this part may acquire or operate an extended or additional rail 
line under this section only if the Board issues a certificate 
authorizing such activity under subsection (c).
  (b) A proceeding to grant authority under subsection (a) of 
this section begins when an application is filed. On receiving 
the application, the Board shall give reasonable public notice 
of the beginning of such proceeding.
  (c) The Board shall issue a certificate authorizing 
activities for which such authority is requested in an 
application filed under subsection (b) unless the Board finds 
that such activities are inconsistent with the public 
convenience and necessity. Such certificate may approve the 
application as filed, or with modifications, and may require 
compliance with conditions (other than labor protection 
conditions) the Board finds necessary in the public interest. 
The Board may not issue a certificate authorizing an 
acquisition or operation transaction under subsection (a)(4) 
that includes interchange commitments or other mechanisms 
restricting the purchaser's or tenant's ability to interchange 
with any other carrier unless such commitments or mechanisms 
are reasonable and in the public interest.
  (d) The Board shall require any Class II rail carrier which 
receives a certificate under subsection (c) of this section to 
provide a fair and equitable arrangement for the protection of 
the interests of employees who may be affected thereby. The 
arrangement shall consist exclusively of one year of severance 
pay, which shall not exceed the amount of earnings from 
railroad employment of the employee during the 12-month period 
immediately preceding the date on which the application for 
such certificate is filed with the Board. The amount of such 
severance pay shall be reduced by the amount of earnings from 
railroad employment of the employee with the acquiring carrier 
during the 12-month period immediately following the effective 
date of the transaction to which the certificate applies. The 
parties may agree to terms other than as provided in this 
subsection. The Board shall not require such an arrangement 
from a Class III rail carrier which receives a certificate 
under subsection (c) of this section.

Sec. 10903. Filing and procedure for application to abandon or 
                    discontinue

  [(a)(1) A rail carrier providing transportation subject to 
the jurisdiction of the Board under this part who intends to--
          (A) abandon any part of its railroad lines; or
          (B) discontinue the operation of all rail 
        transportation over any part of its railroad lines,
must file an application relating thereto with the Board. An 
abandonment or discontinuance may be carried out only as 
authorized under this chapter.]
  (a)(1) An application relating to the abandonment of or 
discontinuance of operation of all rail transportation over any 
part of a railroad line shall be filed with the Board. An 
abandonment or discontinuance may be carried out only as 
authorized under this chapter.
  (2) [When a rail carrier providing transportation subject to 
the jurisdiction of the Board under this part files an 
application, the application] An application filed under this 
section shall include--
          (A) an accurate and understandable summary of the 
        [rail carrier's] reasons for the proposed abandonment 
        or discontinuance;
          (B) a statement indicating that each interested 
        person is entitled to make recommendations to the Board 
        on the future of the rail line; and
          [(C)(i)] (C) if filed by a rail carrier, (i) a 
        statement that the line is available for subsidy or 
        sale in accordance with section 10904 of this title, 
        (ii) a statement that the rail carrier will promptly 
        provide to each interested party an estimate of the 
        annual subsidy and minimum purchase price, calculated 
        in accordance with section 10904 of this title, and 
        (iii) the name and business address of the person who 
        is authorized to discuss the subsidy or sale terms for 
        the rail carrier.
  (3) [The rail carrier shall--] The applicant shall--
          (A) send by certified mail notice of the application 
        to the chief executive officer of each State that would 
        be directly affected by the proposed abandonment or 
        discontinuance;
          (B) post a copy of the notice in each terminal and 
        station on each portion of a railroad line proposed to 
        be abandoned or over which all transportation is to be 
        discontinued;
          (C) publish a copy of the notice for 3 consecutive 
        weeks in a newspaper of general circulation in each 
        county in which each such portion is located;
          (D) mail a copy of the notice, to the extent 
        practicable, to all shippers that have made significant 
        use (as designated by the Board) of the railroad line 
        during the 12 months preceding the filing of the 
        application; and
          (E) attach to the application filed with the Board an 
        affidavit certifying the manner in which subparagraphs 
        (A) through (D) of this paragraph have been satisfied, 
        and certifying that subparagraphs (A) through (D) have 
        been satisfied within the most recent 30 days prior to 
        the date the application is filed.
  (b)(1) Except as provided in subsection (d), abandonment and 
discontinuance may occur as provided in section 10904.
  (2) The Board shall require as a condition of any abandonment 
or discontinuance under this section provisions to protect the 
interests of employees. The provisions shall be at least as 
beneficial to those interests as the provisions established 
under sections 11326(a) and 24706(c) of this title.
  (c)(1) In this subsection, the term ``potentially subject to 
abandonment'' has the meaning given the term in regulations of 
the Board. The regulations may include standards that vary by 
region of the United States and by railroad or group of 
railroads.
  (2) Each rail carrier shall maintain a complete diagram of 
the transportation system operated, directly or indirectly, by 
the rail carrier. The rail carrier shall submit to the Board 
and publish amendments to its diagram that are necessary to 
maintain the accuracy of the diagram. The diagram shall--
          (A) include a detailed description of each of its 
        railroad lines potentially subject to abandonment; and
          (B) identify each railroad line for which the rail 
        carrier plans to file an application to abandon or 
        discontinue under subsection (a) of this section.
  (d) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part may--
          (1) abandon any part of its railroad lines; or
          (2) discontinue the operation of all rail 
        transportation over any part of its railroad lines;
only if the Board finds that the present or future public 
convenience and necessity require or permit the abandonment or 
discontinuance. In making the finding, the Board shall consider 
whether the abandonment or discontinuance will have a serious, 
adverse impact on rural and community development.
  (e) Subject to this section and sections 10904 and 10905 of 
this title, if the Board--
          (1) finds public convenience and necessity, it 
        shall--
                  (A) approve the application as filed; or
                  (B) approve the application with 
                modifications and require compliance with 
                conditions that the Board finds are required by 
                public convenience and necessity; or
          (2) fails to find public convenience and necessity, 
        it shall deny the application.

Sec. 10904. Offers of financial assistance to avoid abandonment and 
                    discontinuance

  (a) In this section--
          (1) the term ``avoidable cost'' means all expenses 
        that would be incurred by a rail carrier in providing 
        transportation that would not be incurred if the 
        railroad line over which the transportation was 
        provided were abandoned or if the transportation were 
        discontinued. Expenses include cash inflows foregone 
        and cash outflows incurred by the rail carrier as a 
        result of not abandoning or discontinuing the 
        transportation. Cash inflows foregone and cash outflows 
        incurred include--
                  (A) working capital and required capital 
                expenditure;
                  (B) expenditures to eliminate deferred 
                maintenance;
                  (C) the current cost of freight cars, 
                locomotives, and other equipment; and
                  (D) the foregone tax benefits from not 
                retiring properties from rail service and other 
                effects of applicable Federal and State income 
                taxes; and
          (2) the term ``reasonable return'' means--
                  (A) if a rail carrier is not in 
                reorganization, the cost of capital to the rail 
                carrier, as determined by the Board; and
                  (B) if a rail carrier is in reorganization, 
                the mean cost of capital of rail carriers not 
                in reorganization, as determined by the Board.
  (b) Any rail carrier which has filed an application for 
abandonment or discontinuance shall provide promptly to a party 
considering an offer of financial assistance and shall provide 
concurrently to the Board--
          (1) an estimate of the annual subsidy and minimum 
        purchase price required to keep the line or a portion 
        of the line in operation;
          (2) its most recent reports on the physical condition 
        of that part of the railroad line involved in the 
        proposed abandonment or discontinuance;
          (3) traffic, revenue, and other data necessary to 
        determine the amount of annual financial assistance 
        which would be required to continue rail transportation 
        over that part of the railroad line; and
          (4) any other information that the Board considers 
        necessary to allow a potential offeror to calculate an 
        adequate subsidy or purchase offer.
  (c) Within 4 months after an application is filed under 
section 10903, any person may offer to subsidize or purchase 
the railroad line that is the subject of such application. Such 
offer shall be filed concurrently with the Board. If the offer 
to subsidize or purchase is less than the carrier's estimate 
stated pursuant to subsection (b)(1), the offer shall explain 
the basis of the disparity, and the manner in which the offer 
is calculated.
  [(d)(1) Unless the Board, within 15 days after the expiration 
of the 4-month period described in subsection (c), finds that 
one or more financially responsible persons (including a 
governmental authority) have offered financial assistance 
regarding that part of the railroad line to be abandoned or 
over which all rail transportation is to be discontinued, 
abandonment or discontinuance may be carried out in accordance 
with section 10903.]
  (d)(1) Unless the Board, within 15 days after the expiration 
of the 4-month period described in subsection (c), finds that 
one or more financially responsible persons (including a 
governmental authority) have offered financial assistance and 
established a reasonable likelihood of freight rail service, 
public transportation, or intercity rail passenger 
transportation over that part of the railroad line to be 
abandoned or over which all rail transportation is to be 
discontinued, abandonment or discontinuance may be carried out 
in accordance with section 10903.
  (2) If the Board finds that such an offer or offers of 
financial assistance has been made within such period, 
abandonment or discontinuance shall be postponed until--
          (A) the carrier and a financially responsible person 
        have reached agreement on a transaction for subsidy or 
        sale of the line; or
          (B) the conditions and amount of compensation are 
        established under subsection (f).
  (e) Except as provided in subsection (f)(3), if the rail 
carrier and a financially responsible person (including a 
governmental authority) fail to agree on the amount or terms of 
the subsidy or purchase, either party may, within 30 days after 
the offer is made, request that the Board establish the 
conditions and amount of compensation.
  (f)(1) Whenever the Board is requested to establish the 
conditions and amount of compensation under this section--
          (A) the Board shall render its decision within [30 
        days;] 60 days;
          (B) for proposed sales, the Board shall determine the 
        price and other terms of sale, except that in no case 
        shall the Board set a price which is below the fair 
        market value of the line (including, unless otherwise 
        mutually agreed, all facilities on the line or portion 
        necessary to provide effective transportation 
        services); and
          (C) for proposed subsidies, the Board shall establish 
        the compensation as the difference between the revenues 
        attributable to that part of the railroad line and the 
        avoidable cost of providing rail freight transportation 
        on the line, plus a reasonable return on the value of 
        the line.
  (2) The decision of the Board shall be binding on both 
parties, except that the person who has offered to subsidize or 
purchase the line may withdraw his offer within 10 days of the 
Board's decision. In such a case, the abandonment or 
discontinuance may be carried out immediately, unless other 
offers are being considered pursuant to paragraph (3) of this 
subsection.
  (3) If a rail carrier receives more than one offer to 
subsidize or purchase, it shall select the offeror with whom it 
wishes to transact business, and complete the subsidy or sale 
agreement, or request that the Board establish the conditions 
and amount of compensation before the 40th day after the 
expiration of the 4-month period described in subsection (c). 
If no agreement on subsidy or sale is reached within such 40-
day period and the Board has not been requested to establish 
the conditions and amount of compensation, any other offeror 
whose offer was made within the 4-month period described in 
subsection (c) may request that the Board establish the 
conditions and amount of compensation. If the Board has 
established the conditions and amount of compensation, and the 
original offer has been withdrawn, any other offeror whose 
offer was made within the 4-month period described in 
subsection (c) may accept the Board's decision within 20 days 
after such decision, and the Board shall require the carrier to 
enter into a subsidy or sale agreement with such offeror, if 
such subsidy or sale agreement incorporates the Board's 
decision.
  (4)(A) No purchaser of a line or portion of line sold under 
this section may transfer or discontinue service on such line 
prior to the end of the second year after consummation of the 
sale, nor may such purchaser transfer such line, except to the 
rail carrier from whom it was purchased, prior to the end of 
the fifth year after consummation of the sale.
  (B) No subsidy arrangement approved under this section shall 
remain in effect for more than one year, unless otherwise 
mutually agreed by the parties.
  (g) Upon abandonment of a railroad line under this chapter, 
the obligation of the rail carrier abandoning the line to 
provide transportation on that line, as required by section 
11101(a), is extinguished.

Sec. 10905. Offering abandoned rail properties for sale for public 
                    purposes

  When the Board approves an application to abandon or 
discontinue under section 10903, the Board shall find whether 
the rail properties that are involved in the proposed 
abandonment or discontinuance are appropriate for use for 
public purposes, including highways, [other forms of mass 
transportation,] public transportation, conservation, energy 
production or transmission, or recreation. If the Board finds 
that the rail properties proposed to be abandoned are 
appropriate for public purposes and not required for continued 
rail operations, [the properties may be sold,] the Board may 
require that the properties be sold, leased, exchanged, or 
otherwise disposed of [only under conditions] pursuant to 
conditions, including the amount of compensation, provided in 
the order of the Board. [The conditions may include a 
prohibition on any such disposal] At a minimum, the Board shall 
prohibit any disposal of such properties for a period of not 
more than 180 days after the effective date of the order, 
unless the properties have first been offered, on reasonable 
terms, for sale for public purposes.

           *       *       *       *       *       *       *


Sec. 10907. Railroad development

  (a) In this section, the term ``financially responsible 
person'' means a person who--
          (1) is capable of paying the constitutional minimum 
        value of the railroad line proposed to be acquired; and
          (2) is able to assure that adequate transportation 
        will be provided over such line for a period of not 
        less than 3 years.
Such term includes a governmental authority but does not 
include a Class I or Class II rail carrier.
  (b)(1) When the Board finds that--
          (A)(i) the public convenience and necessity require 
        or permit the sale of a particular railroad line under 
        this section; or
          (ii) a railroad line is on a system diagram map as 
        required under section 10903 of this title, but the 
        rail carrier owning such line has not filed an 
        application to abandon such line under section 10903 of 
        this title before an application to purchase such line, 
        or any required preliminary filing with respect to such 
        application, is filed under this section; and
          (B) an application to purchase such line has been 
        filed by a financially responsible person,
the Board shall require the rail carrier owning the railroad 
line to sell such line to such financially responsible person 
at a price not less than the constitutional minimum value.
  (2) For purposes of this subsection, the constitutional 
minimum value of a particular railroad line shall be presumed 
to be not less than the net liquidation value of such line or 
the going concern value of such line, whichever is greater.
  (c)(1) For purposes of this section, the Board may determine 
that the public convenience and necessity require or permit the 
sale of a railroad line if the Board determines, after a 
hearing on the record, that--
          (A) the rail carrier operating such line refuses 
        within a reasonable time to make the necessary efforts 
        to provide adequate service to shippers who transport 
        traffic over such line;
          (B) the transportation over such line is inadequate 
        for the majority of shippers who transport traffic over 
        such line;
          (C) the sale of such line will not have a 
        significantly adverse financial effect on the rail 
        carrier operating such line;
          (D) the sale of such line will not have an adverse 
        effect on the overall operational performance of the 
        rail carrier operating such line; and
          (E) the sale of such line will be likely to result in 
        improved railroad transportation for shippers that 
        transport traffic over such line.
  (2) In a proceeding under this subsection, the burden of 
proving that the public convenience and necessity require or 
permit the sale of a particular railroad line is on the person 
filing the application to acquire such line. If the Board finds 
under this subsection that the public convenience and necessity 
require or permit the sale of a particular railroad line, the 
Board shall concurrently notify the parties of such finding and 
publish such finding in the Federal Register.
  (d) In the case of any railroad line subject to sale under 
subsection (a) of this section, the Board shall, upon the 
request of the acquiring carrier, require the selling carrier 
to provide to the acquiring carrier trackage rights to allow a 
reasonable interchange with the selling carrier or to move 
power equipment or empty rolling stock between noncontiguous 
feeder lines operated by the acquiring carrier. The Board shall 
require the acquiring carrier to provide the selling carrier 
reasonable compensation for any such trackage rights.
  (e) The Board shall require, to the maximum extent 
practicable, the use of the employees who would normally have 
performed work in connection with a railroad line subject to a 
sale under this section.
  (f) In the case of a railroad line which carried less than 
3,000,000 gross ton miles of traffic per mile in the preceding 
calendar year, whenever a purchasing carrier under this section 
petitions the Board for joint rates applicable to traffic 
moving over through routes in which the purchasing carrier may 
practicably participate, the Board shall, within 30 days after 
the date such petition is filed and pursuant to section 
10705(a) of this title, require the establishment of reasonable 
joint rates and divisions over such route.
  (g)(1) Any person operating a railroad line acquired under 
this section may elect to be exempt from any of the provisions 
of this part, except that such a person may not be exempt from 
the provisions of chapter 107 of this title with respect to 
transportation under a joint rate.
  (2) The provisions of paragraph (1) of this subsection shall 
apply to any line of railroad which was abandoned during the 
18-month period immediately prior to October 1, 1980, and was 
subsequently purchased by a financially responsible person.
  [(h) If a purchasing carrier under this section proposes to 
sell or abandon all or any portion of a purchased railroad 
line, such purchasing carrier shall offer the right of first 
refusal with respect to such line or portion thereof to the 
carrier which sold such line under this section. Such offer 
shall be made at a price equal to the sum of the price paid by 
such purchasing carrier to such selling carrier for such line 
or portion thereof and the fair market value (less 
deterioration) of any improvements made, as adjusted to reflect 
inflation.]
  (h) If a purchasing carrier under this section proposes to 
sell or abandon all or any portion of a purchased railroad line 
within 5 years after the date of sale under this section, such 
purchasing carrier shall offer the right of first refusal with 
respect to such line or portion thereof to the carrier which 
sold such line under this section. The offer shall be made at a 
price equal to the sum of the price paid by such purchasing 
carrier to such selling carrier for such line or portion 
thereof and the fair market value (less deterioration) of any 
improvements made, as adjusted to reflect inflation.
  (i) Any person operating a railroad line acquired under this 
section may determine preconditions, such as payment of a 
subsidy, which must be met by shippers in order to obtain 
service over such lines, but such operator must notify the 
shippers on the line of its intention to impose such 
preconditions.

           *       *       *       *       *       *       *


Sec. 10909. Solid waste rail transfer facility land-use exemption

  (a) Authority.--The Board may issue a land-use exemption for 
a solid waste rail transfer facility that is or is proposed to 
be operated by or on behalf of a rail carrier if--
          (1) the Board finds that a State, local, or municipal 
        law, regulation, order, or other requirement affecting 
        the siting of such facility unreasonably burdens the 
        interstate transportation of solid waste by railroad, 
        discriminates against the railroad transportation of 
        solid waste and a solid waste rail transfer facility, 
        or a rail carrier that owns or operates such a facility 
        petitions the Board for such an exemption; or
          (2) the Governor of a State in which a facility that 
        is operating as of the date of enactment of the Clean 
        Railroads Act of 2008 is located, or his or her 
        designee, petitions the Board to initiate a permit 
        proceeding for that particular facility.
  (b) Land-Use Exemption Procedures.--Not later than 90 days 
after the date of enactment of the Clean [Railroad] Railroads 
Act of 2008, the Board shall publish procedures governing the 
submission and review of applications for solid waste rail 
transfer facility land-use exemptions. At a minimum, the 
procedures shall address--
          (1) the information that each application should 
        contain to explain how the solid waste rail transfer 
        facility will not pose an unreasonable risk to public 
        health, safety, or the environment;
          (2) the opportunity for public notice and comment 
        including notification of the municipality, the State, 
        and any relevant Federal or State regional planning 
        entity in the jurisdiction of which the solid waste 
        rail transfer facility is proposed to be located;
          (3) the timeline for Board review, including a 
        requirement that the Board approve or deny an exemption 
        within 90 days after the full record for the 
        application is developed;
          (4) the expedited review timelines for petitions for 
        modifications, amendments, or revocations of granted 
        exemptions;
          (5) the process for a State to petition the Board to 
        require a solid waste transfer facility or a rail 
        carrier that owns or operates such a facility to apply 
        for a siting permit; and
          (6) the process for a solid waste transfer facility 
        or a rail carrier that owns or operates such a facility 
        to petition the Board for a land-use exemption.
  (c) Standard for Review.--
          (1) The Board may only issue a land-use exemption if 
        it determines that the facility at the existing or 
        proposed location does not pose an unreasonable risk to 
        public health, safety, or the environment. In deciding 
        whether a solid waste rail transfer facility that is or 
        proposed to be constructed or operated by or on behalf 
        of a rail carrier poses an unreasonable risk to public 
        health, safety, or the environment, the Board shall 
        weigh the particular facility's potential benefits to 
        and the adverse impacts on public health, public 
        safety, the environment, interstate commerce, and 
        transportation of solid waste by rail.
          (2) The Board may not grant a land-use exemption for 
        a solid waste rail transfer facility proposed to be 
        located on land within any unit of or land affiliated 
        with the National Park System, the National Wildlife 
        Refuge System, the National Wilderness Preservation 
        System, the National Trails System, the National Wild 
        and Scenic Rivers System, a National Reserve, a 
        National Monument, or lands referenced in Public Law 
        108-421 for which a State has implemented a 
        conservation management plan, if operation of the 
        facility would be inconsistent with restrictions placed 
        on such land.
  (d) Considerations.--When evaluating an application under 
this section, the Board shall consider and give due weight to 
the following, as applicable:
          (1) the land-use, zoning, and siting regulations or 
        solid waste planning requirements of the State or State 
        subdivision in which the facility is or will be located 
        that are applicable to solid waste transfer facilities, 
        including those that are not owned or operated by or on 
        behalf of a rail carrier;
          (2) the land-use, zoning, and siting regulations or 
        solid waste planning requirements applicable to the 
        property where the solid waste rail transfer facility 
        is proposed to be located;
          (3) regional transportation planning requirements 
        developed pursuant to Federal and State law;
          (4) regional solid waste disposal plans developed 
        pursuant to State or Federal law;
          (5) any Federal and State environmental protection 
        laws or regulations applicable to the site;
          (6) any unreasonable burdens imposed on the 
        interstate transportation of solid waste by railroad, 
        or the potential for discrimination against the 
        railroad transportation of solid waste, a solid waste 
        rail transfer facility, or a rail carrier that owns or 
        operates such a facility; and
          (7) any other relevant factors, as determined by the 
        Board.
  (e) Existing Facilities.--Upon the granting of petition from 
the State in which a solid waste rail transfer facility is 
operating as of the date of enactment of the Clean Railroads 
Act of 2008 by the Board, the facility shall submit a complete 
application for a siting permit to the Board pursuant to the 
procedures issued pursuant to subsection (b). No State may 
enforce a law, regulation, order, or other requirement 
affecting the siting of a facility that is operating as of the 
date of enactment of the Clean Railroads Act of 2008 until the 
Board has approved or denied a permit pursuant to subsection 
(c).
  (f) Effect of Land-Use Exemption.--If the Board grants a 
land-use exemption to a solid waste rail transfer facility, all 
State laws, regulations, orders, or other requirements 
affecting the siting of a facility are preempted with regard to 
that facility. An exemption may require compliance with such 
State laws, regulations, orders, or other requirements.
  (g) Injunctive Relief.--Nothing in this section precludes a 
person from seeking an injunction to enjoin a solid waste rail 
transfer facility from being constructed or operated by or on 
behalf of a rail carrier if that facility has materially 
violated, or will materially violate, its land-use exemption or 
if it failed to receive a valid land-use exemption under this 
section.
  (h) Fees.--The Board may charge permit applicants reasonable 
fees to implement this section, including the costs of third-
party consultants.
  (i) Definitions.--In this section the terms ``solid waste'', 
``solid waste rail transfer facility'', and ``State 
requirements'' have the meaning given such terms in section 
10908(e).

           *       *       *       *       *       *       *


                        CHAPTER 111--OPERATIONS

                   SUBCHAPTER I--GENERAL REQUIREMENTS

Sec. 11101. Common carrier transportation, service, and rates

  (a) A rail carrier providing transportation or service 
subject to the jurisdiction of the Board under this part shall 
provide the transportation or service on reasonable request. A 
rail carrier shall not be found to have violated this section 
because it fulfills its reasonable commitments under contracts 
authorized under section 10709 of this title before responding 
to reasonable requests for service. Commitments which deprive a 
carrier of its ability to respond to reasonable requests for 
common carrier service are not reasonable.
  (b) A rail carrier shall also provide to any person, on 
request, the carrier's rates and other service terms. The 
response by a rail carrier to a request for the carrier's rates 
and other service terms shall be--
          (1) in writing and forwarded to the requesting person 
        promptly after receipt of the request; or
          (2) promptly made available in electronic form.
  (c) A rail carrier may not increase any common carrier rates 
or change any common carrier service terms unless 20 days have 
expired after written or electronic notice is provided to any 
person who, within the previous 12 months--
          (1) has requested such rates or terms under 
        subsection (b); or
          (2) has made arrangements with the carrier for a 
        shipment that would be subject to such increased rates 
        or changed terms.
  (d) With respect to transportation of agricultural products, 
in addition to the requirements of subsections (a), (b), and 
(c), a rail carrier shall publish, make available, and retain 
for public inspection its common carrier rates, schedules of 
rates, and other service terms, and any proposed and actual 
changes to such rates and service terms. For purposes of this 
subsection, agricultural products shall include grain as 
defined in section 3 of the United States Grain Standards Act 
(7 U.S.C. 75) and all products thereof, and fertilizer.
  (e) A rail carrier shall provide transportation or service in 
accordance with the rates and service terms, and any changes 
thereto, as published or otherwise made available under 
subsection (b), (c), or (d).
  (f) The Board shall, by regulation, require rail carriers to 
publish reasonable common carrier service expectation ranges. 
These may include ranges for normal car cycle times, transit 
times, switching frequency, and other service components as 
determined by the Board to be appropriate.
  [(f)] (g) The Board shall, by regulation, establish rules to 
implement this section. The regulations shall provide for 
immediate disclosure and dissemination of rates and service 
terms, including classifications, rules, and practices, and 
their effective dates. Final regulations shall be adopted by 
the Board not later than 180 days after January 1, 1996.

[Sec. 11102. Use of terminal facilities

  [(a) The Board may require terminal facilities, including 
main-line tracks for a reasonable distance outside of a 
terminal, owned by a rail carrier providing transportation 
subject to the jurisdiction of the Board under this part, to be 
used by another rail carrier if the Board finds that use to be 
practicable and in the public interest without substantially 
impairing the ability of the rail carrier owning the facilities 
or entitled to use the facilities to handle its own business. 
The rail carriers are responsible for establishing the 
conditions and compensation for use of the facilities. However, 
if the rail carriers cannot agree, the Board may establish 
conditions and compensation for use of the facilities under the 
principle controlling compensation in condemnation proceedings. 
The compensation shall be paid or adequately secured before a 
rail carrier may begin to use the facilities of another rail 
carrier under this section.
  [(b) A rail carrier whose terminal facilities are required to 
be used by another rail carrier under this section is entitled 
to recover damages from the other rail carrier for injuries 
sustained as the result of compliance with the requirement or 
for compensation for the use, or both as appropriate, in a 
civil action, if it is not satisfied with the conditions for 
use of the facilities or if the amount of the compensation is 
not paid promptly.
  [(c)(1) The Board may require rail carriers to enter into 
reciprocal switching agreements, where it finds such agreements 
to be practicable and in the public interest, or where such 
agreements are necessary to provide competitive rail service. 
The rail carriers entering into such an agreement shall 
establish the conditions and compensation applicable to such 
agreement, but, if the rail carriers cannot agree upon such 
conditions and compensation within a reasonable period of time, 
the Board may establish such conditions and compensation.
  [(2) The Board may require reciprocal switching agreements 
entered into by rail carriers pursuant to this subsection to 
contain provisions for the protection of the interests of 
employees affected thereby.
  [(d) The Board shall complete any proceeding under subsection 
(a) or (b) within 180 days after the filing of the request for 
relief.]

11102. Use of terminal facilities

  (a) For a Class I rail carrier, or other rail carrier as 
deemed appropriate by the Board, providing transportation over 
which the rail carrier has market dominance pursuant to section 
10707 in a terminal area, the Board may require the rail 
carrier to make its terminal facilities, including mainline 
tracks for a reasonable distance outside of that terminal, 
available for use by another rail carrier for such 
transporation.
  (b) The Board may only require that a rail carrier take such 
action under subsection (a) if the Board finds that such 
action--
          (1) would be practicable and would not significantly 
        adversely affect the operations of the terminal or 
        facility owned by such rail carrier or rail carriers 
        otherwise entitled to use the terminal or facilities;
          (2) would not significantly adversely affect the 
        network efficiency of such rail carrier or rail 
        carriers otherwise entitled to use the terminal or 
        facilities;
          (3) would not significantly impair service to other 
        customers of such rail carrier or other rail carriers 
        entitled to use the terminal or facilities;
          (4) is necessary to promote the efficient operation 
        of the railroad system and improve rail service; and
          (5) is in the public interest.
  (c) The rail carriers required to make facilities available 
or provide service pursuant to subsection (a) are responsible 
for establishing reasonable conditions and compensation for the 
use of the facilities. The compensation shall be paid or 
adequately secured before a rail carrier may begin to use the 
facilities of another rail carrier.
  (d)(1) Not later than one year after the date of enactment of 
the Surface Transportation Board Reauthorization Act of 2009, 
the Board shall establish and maintain standards for 
determining whether compensation is reasonable for purposes of 
this section and establish a simplified and expedited method 
for determining the reasonableness of challenged compensation 
rates.
  (2) In developing such standards, the Board shall consider 
rail carriers' need to earn adequate revenues to provide and 
sustain consistent, efficient, and reliable transportation 
services and to maintain the national rail system.
  (e) In developing the standards required by subsection (d), 
the Board shall include, as part of a reasonable compensation--
          (1) operating costs, including any additional labor 
        costs, of providing the requested usage;
          (2) maintenance costs associated with providing the 
        requested usage;
          (3) additional capital and investment costs required 
        to perform the requested usage;
          (4) a reasonable return on embedded capital employed 
        for the requested usage of terminal facilities 
        sufficient to meet the rail carrier's cost of capital 
        or, if such cost is not available, the rail industry 
        cost of capital;
          (5) a reasonable contribution, to the extent 
        appropriate, to that carrier's network infrastructure 
        costs of the route beyond the terminal facilities and 
        main line tracks made available for the requested 
        usage, that is sufficient, along with other traffic on 
        the route and mainline track, to maintain the route 
        beyond the terminal facilities and mainline tracks made 
        available for the requested usage; and
          (6) any other contributing factors appropriate to 
        meet the considerations in subsection (d)(2).
  (g) A rail carrier whose terminal facilities are required to 
be used by another rail carrier under this section is entitled 
to recover compensation from the other rail carrier for damages 
sustained as the result of compliance with the requirement in a 
civil action.
  (h) In any proceeding in which a rail carrier challenges a 
compensation rate established under this section as 
unreasonable, the burden of proof that the rate is reasonable 
shall be on the rail carrier whose terminal facilities are 
required to be used by the other rail carrier.
  (i) If the Board requires that a rail carrier take such an 
action under subsection (a), the Board shall provide for the 
protection of the interests of employees affected thereby, 
consistent with the level of protection under section 10902 of 
this title.
  (j) The Board shall complete any proceeding under this 
section within 180 days after the closing of the evidentiary 
record. The Board may extend the deadline in incremental 30-day 
periods if it issues a decision demonstrating why such an 
extension is necessary.

           *       *       *       *       *       *       *


                       SUBCHAPTER II--CAR SERVICE

Sec. 11123. Situations requiring immediate action to serve the public

  (a) When the Board determines that shortage of equipment, 
congestion of traffic, unauthorized cessation of operations, 
failure of existing commuter rail passenger transportation 
operations caused by a cessation of service by the National 
Railroad Passenger Corporation, or other failure of traffic 
movement exists which creates an emergency situation of such 
magnitude as to have substantial adverse effects on shippers, 
or on rail service in a region of the United States, or that a 
rail carrier providing transportation subject to the 
jurisdiction of the Board under this part cannot transport the 
traffic offered to it in a manner that properly serves the 
public, the Board may, to promote commerce and service to the 
public, for a period not to exceed 30 days--
          (1) direct the handling, routing, and movement of the 
        traffic of a rail carrier and its distribution over its 
        own or other railroad lines;
          (2) require joint or common use of railroad 
        facilities;
          (3) prescribe temporary through routes;
          (4) give directions for--
                  (A) preference or priority in transportation;
                  (B) embargoes; or
                  (C) movement of traffic under permits; or
          (5) in the case of a failure of existing freight or 
        commuter rail passenger transportation operations 
        caused by a cessation of service by the National 
        Railroad Passenger Corporation, direct the continuation 
        of the operations and dispatching, maintenance, and 
        other necessary infrastructure functions related to the 
        operations.
  (b)(1) Except with respect to proceedings under paragraph (2) 
of this subsection, the Board may act under this section on its 
own initiative or on application without regard to subchapter 
II of chapter 5 of title 5.
  (2) Rail carriers may establish between themselves the terms 
of compensation for operations, and use of facilities and 
equipment, required under this section. When rail carriers do 
not agree on the terms of compensation under this section, the 
Board may establish the terms for them. The Board may act under 
subsection (a) before conducting a proceeding under this 
paragraph.
  (3)(A) Except as provided in subparagraph (B), when a rail 
carrier is directed under this section to operate the lines of 
another rail carrier due to that carrier's cessation of 
operations, compensation for the directed operations shall 
derive only from revenues generated by the directed operations.
  (B) In the case of a failure of existing freight or commuter 
rail passenger transportation operations caused by a cessation 
of service by the National Railroad Passenger Corporation, the 
Board shall provide funding to fully reimburse the directed 
service provider for its costs associated with the activities 
directed under subsection (a), including the payment of 
increased insurance premiums. The Board shall order complete 
indemnification against any and all claims associated with the 
provision of service to which the directed rail carrier may be 
exposed.
  (c)(1) The Board may extend any action taken under subsection 
(a) of this section beyond 30 days if the Board finds that a 
transportation emergency described in subsection (a) continues 
to exist. [Action by the Board under subsection (a) of this 
section may not remain in effect for more than 240 days beyond 
the initial 30-day period.] Action by the Board under 
subsection (a) of this section may be extended in 90-day 
increments until the Board finds that the emergency has ended.
  (2) The Board may not take action under this section that 
would--
          (A) cause a rail carrier to operate in violation of 
        this part; or
          (B) impair substantially the ability of a rail 
        carrier to serve its own customers adequately, or to 
        fulfill its common carrier obligations.
  (3) A rail carrier directed by the Board to take action under 
this section is not responsible, as a result of that action, 
for debts of any other rail carrier.
  (4) In the case of a failure of existing freight or commuter 
rail passenger transportation operations caused by cessation of 
service by the National Railroad Passenger Corporation, the 
Board may not direct a rail carrier to undertake activities 
under subsection (a) to continue such operations unless--
          (A) the Board first affirmatively finds that the rail 
        carrier is operationally capable of conducting the 
        directed service in a safe and efficient manner; and
          (B) the funding for such directed service required by 
        subparagraph (B) of subsection (b)(3) is provided in 
        advance in appropriations Acts.
  (d) In carrying out this section, the Board shall require, to 
the maximum extent practicable, the use of employees who would 
normally have performed work in connection with the traffic 
subject to the action of the Board.
  (e) For purposes of this section, the National Railroad 
Passenger Corporation and any entity providing commuter rail 
passenger transportation shall be considered rail carriers 
subject to the Board's jurisdiction.
  (f) For purposes of this section, the term ``commuter rail 
passenger transportation'' has the meaning given that term in 
section 24102(4).

           *       *       *       *       *       *       *


                          CHAPTER 113--FINANCE

                      SUBCHAPTER II--COMBINATIONS

Sec. 11323. Consolidation, merger, and acquisition of control

  (a) The following transactions involving rail carriers 
providing transportation subject to the jurisdiction of the 
Board under this part may be carried out only with the approval 
and authorization of the Board:
          (1) Consolidation or merger of the properties or 
        franchises of at least 2 rail carriers into one 
        corporation for the ownership, management, and 
        operation of the previously separately owned 
        properties.
          (2) A purchase, lease, or contract to operate 
        property of another rail carrier by any number of rail 
        carriers.
          (3) Acquisition of control of a rail carrier by any 
        number of rail carriers.
          (4) Acquisition of control of at least 2 rail 
        carriers by a person that is not a rail carrier.
          (5) Acquisition of control of a rail carrier by a 
        person that is not a rail carrier but that controls any 
        number of rail carriers.
          (6) Acquisition by a rail carrier of trackage rights 
        over, or joint ownership in or joint use of, a railroad 
        line (and terminals incidental to it) owned or operated 
        by another rail carrier.
  (b) A person may carry out a transaction referred to in 
subsection (a) of this section or participate in achieving the 
control or management, including the power to exercise control 
or management, in a common interest of more than one of those 
rail carriers, regardless of how that result is reached, only 
with the approval and authorization of the Board under this 
subchapter. In addition to other transactions, each of the 
following transactions are considered achievements of control 
or management:
          (1) A transaction by a rail carrier that has the 
        effect of putting that rail carrier and person 
        affiliated with it, taken together, in control of 
        another rail carrier.
          (2) A transaction by a person affiliated with a rail 
        carrier that has the effect of putting that rail 
        carrier and persons affiliated with it, taken together, 
        in control of another rail carrier.
          (3) A transaction by at least 2 persons acting 
        together (one of whom is a rail carrier or is 
        affiliated with a rail carrier) that has the effect of 
        putting those persons and rail carriers and persons 
        affiliated with any of them, or with any of those 
        affiliated rail carriers, taken together, in control of 
        another rail carrier.
  (c) A person is affiliated with a rail carrier under this 
subchapter if, because of the relationship between that person 
and a rail carrier, it is reasonable to believe that the 
affairs of another rail carrier, control of which may be 
acquired by that person, will be managed in the interest of the 
other rail carrier.
  (d) The Board may not authorize an acquisition or operation 
transaction under this section that includes interchange 
commitments or other mechanisms restricting the purchaser's or 
tenant's ability to interchange with any other carrier unless 
such commitments or mechanisms are reasonable and in the public 
interest.

Sec. 11324. Consolidation, merger, and acquisition of control: 
                    conditions of approval

  (a) The Board may begin a proceeding to approve and authorize 
a transaction referred to in section 11323 of this title on 
application of the person seeking that authority. When an 
application is filed with the Board, the Board shall notify the 
chief executive officer of each State in which property of the 
rail carriers involved in the proposed transaction is located 
and shall notify those rail carriers. The Board shall hold a 
public hearing unless the Board determines that a public 
hearing is not necessary in the public interest.
  (b) In a proceeding under this section which involves the 
merger or control of at least two Class I railroads, as defined 
by the Board, the Board shall consider at least--
          (1) the effect of the proposed transaction on the 
        adequacy of transportation to the public;
          (2) the effect on the public interest of including, 
        or failing to include, other rail carriers in the area 
        involved in the proposed transaction;
          (3) the total fixed charges that result from the 
        proposed transaction;
          (4) the interest of rail carrier employees affected 
        by the proposed transaction; and
          [(5) whether the proposed transaction would have an 
        adverse effect on competition among rail carriers in 
        the affected region or in the national rail system.]
          (5) the effect of the proposed transaction on 
        competition among rail carriers in the affected region 
        or in the national rail system.
  (c) The Board shall approve and authorize a transaction under 
this section when it finds the transaction is consistent with 
the public interest. The Board may impose conditions governing 
the transaction, including the divestiture of parallel tracks 
or requiring the granting of trackage rights and access to 
other facilities. Any trackage rights and related conditions 
imposed to alleviate anticompetitive effects of the transaction 
shall provide for operating terms and compensation levels to 
ensure that such effects are alleviated. When the transaction 
contemplates a guaranty or assumption of payment of dividends 
or of fixed charges or will result in an increase of total 
fixed charges, the Board may approve and authorize the 
transaction only if it finds that the guaranty, assumption, or 
increase is consistent with the public interest. The Board may 
require inclusion of other rail carriers located in the area 
involved in the transaction if they apply for inclusion and the 
Board finds their inclusion to be consistent with the public 
interest.
  (d) In a proceeding under this section which does not involve 
the merger or control of at least two Class I railroads, as 
defined by the [Board,] Board, subject to subsection (e) the 
Board shall approve such an application unless it finds that--
          (1) as a result of the transaction, there is likely 
        to be substantial lessening of competition, creation of 
        a monopoly, or restraint of trade in freight surface 
        transportation in any region of the United States; and
          (2) the anticompetitive effects of the transaction 
        outweigh the public interest in meeting significant 
        transportation needs.
In making such findings, the Board shall, with respect to any 
application that is part of a plan or proposal developed under 
section 333(a)-(d) of this title, accord substantial weight to 
any recommendations of the Attorney General.
  (e) In considering whether to approve, deny, or approve with 
conditions a transaction covered under subsections (b) or (d) 
of this section, the Board may take into account any 
potentially significant effects of the transaction on--
          (1) public health, safety, and the environment; and
          (2) intercity rail passenger transportation and 
        commuter rail passenger transportation, as defined by 
        section 24102 of this title.
  [(e)] (f) No transaction described in section 11326(b) may 
have the effect of avoiding a collective bargaining agreement 
or shifting work from a rail carrier with a collective 
bargaining agreement to a rail carrier without a collective 
bargaining agreement.
  [(f)(1)] (g)(1) To the extent provided in this subsection, a 
proceeding under this subchapter relating to a transaction 
involving at least one Class I rail carrier shall not be 
considered an adjudication required by statute to be determined 
on the record after opportunity for an agency hearing, for the 
purposes of subchapter II of chapter 5 of title 5, United 
States Code.
  (2) Ex parte communications, as defined in section 551(14) of 
title 5, United States Code, shall be permitted in proceedings 
described in paragraph (1) of this subsection, subject to the 
requirements of paragraph (3) of this subsection.
  (3)(A) Any member or employee of the Board who makes or 
receives a written ex parte communication concerning the merits 
of a proceeding described in paragraph (1) shall promptly place 
the communication in the public docket of the proceeding.
  (B) Any member or employee of the Board who makes or receives 
an oral ex parte communication concerning the merits of a 
proceeding described in paragraph (1) shall promptly place a 
written summary of the oral communication in the public docket 
of the proceeding.
  (4) Nothing in this subsection shall be construed to require 
the Board or any of its members or employees to engage in any 
ex parte communication with any person. Nothing in this 
subsection or any other law shall be construed to limit the 
authority of the members or employees of the Board, in their 
discretion, to note in the docket or otherwise publicly the 
occurrence and substance of an ex parte communication.

Sec. 11325. Consolidation, merger, and acquisition of control: 
                    procedure

  (a)(1) The Board shall publish notice of the application 
under section 11324 in the Federal Register by the end of the 
30th day after the application is filed with the Board. 
However, if the application is incomplete, the Board shall 
reject it by the end of that period. The order of rejection is 
a final action of the Board. The published notice shall 
indicate whether the application involves--
          [(1)] (A) the merger or control of at least two Class 
        I railroads, as defined by the Board, to be decided 
        within the time limits specified in subsection (b) of 
        this section;
          [(2)] (B) transactions of regional or national 
        transportation significance, to be decided within the 
        time limits specified in subsection (c) of this 
        section; or
          [(3)] (C) any other transaction covered by this 
        section, to be decided within the time limits specified 
        in subsection (d) of this section.
  (2) The Board may extend the time limits specified in 
subsections (b), (c), and (d) of this section when more time is 
necessary to complete the environmental review process.
  (b) If the application involves the merger or control of two 
or more Class I railroads, as defined by the Board, the 
following conditions apply:
          (1) Written comments about an application may be 
        filed with the Board within 45 days after notice of the 
        application is published under subsection (a) of this 
        section. Copies of such comments shall be served on the 
        Attorney General and the Secretary of Transportation, 
        who may decide to intervene as a party to the 
        proceeding. That decision must be made by the 15th day 
        after the date of receipt of the written comments, and 
        if the decision is to intervene, preliminary comments 
        about the application must be sent to the Board by the 
        end of the 15th day after the date of receipt of the 
        written comments.
          (2) The Board shall require that applications 
        inconsistent with an application, notice of which was 
        published under subsection (a) of this section, and 
        applications for inclusion in the transaction, be filed 
        with it by the 90th day after publication of notice 
        under that subsection.
          (3) The Board must conclude evidentiary proceedings 
        by the end of 1 year after the date of publication of 
        notice under subsection (a) of this section. The Board 
        must issue a final decision by the 90th day after the 
        date on which it concludes the evidentiary proceedings.
  (c) If the application involves [a transaction other than the 
merger or control of at least two Class I railroads, as defined 
by the Board, which the Board has determined to be of regional 
or national transportation significance,] the merger or control 
of one Class I railroad and at least one Class II railroad, as 
defined by the Board, or if it involves a merger or control 
transaction, other than a transaction subject to subsection 
(b), which the Board has determined to be of regional or 
national transportation significance, the following conditions 
apply:
          (1) Written comments about an application, including 
        comments of the Attorney General and the Secretary of 
        Transportation, may be filed with the Board within 30 
        days after notice of the application is published under 
        subsection (a) of this section.
          (2) The Board shall require that applications 
        inconsistent with an application, notice of which was 
        published under subsection (a) of this section, and 
        applications for inclusion in the transaction, be filed 
        with it by the 60th day after publication of notice 
        under that subsection.
          (3) The Board must conclude any evidentiary 
        proceedings by the 180th day after the date of 
        publication of notice under subsection (a) of this 
        section. The Board must issue a final decision by the 
        90th day after the date on which it concludes the 
        evidentiary proceedings.
  (d) For all applications under this section other than those 
specified in subsections (b) and (c) of this section, the 
following conditions apply:
          (1) Written comments about an application, including 
        comments of the Attorney General and the Secretary of 
        Transportation, may be filed with the Board within 30 
        days after notice of the application is published under 
        subsection (a) of this section.
          (2) The Board must conclude any evidentiary 
        proceedings by the 105th day after the date of 
        publication of notice under subsection (a) of this 
        section. The Board must issue a final decision by the 
        45th day after the date on which it concludes the 
        evidentiary proceedings.

           *       *       *       *       *       *       *


     CHAPTER 117--ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES

Sec. 11701. General authority

  (a) Except as otherwise provided in this part, the Board may 
begin an investigation under this part [only on complaint.] on 
the Board's own initiative or on complaint. If the Board finds 
that a rail carrier is violating this part, the Board shall 
take appropriate action to compel compliance with this part.
  (b) A person, including a governmental authority, may file 
with the Board a complaint about a violation of this part by a 
rail carrier providing transportation or service subject to the 
jurisdiction of the Board under this part. The complaint must 
state the facts that are the subject of the violation. The 
Board may dismiss a complaint it determines does not state 
reasonable grounds for investigation and action. However, the 
Board may not dismiss a complaint made against a rail carrier 
providing transportation subject to the jurisdiction of the 
Board under this part because of the absence of direct damage 
to the complainant.
  (c) A formal investigative proceeding begun by the Board 
under subsection (a) of this section is dismissed automatically 
unless it is concluded by the Board with administrative 
finality by the end of the third year after the date on which 
it was begun.

           *       *       *       *       *       *       *


11708. Interchange commitments: rights and remedies

  (a) In General.--The Board shall maintain a process to allow 
affected persons to challenge existing interchange commitments 
as contrary to other provisions of this part. The Attorney 
General and the Secretary of Transportation may participate in 
such proceedings.
  (b) Access to Interchange Commitments.--After the filing of a 
complaint or petition, the Board shall provide affected persons 
access, upon request, to existing and proposed interchange 
commitments, subject to conditions protecting the 
confidentiality of those agreements.
  (c) Redress Authority.--The Board shall take appropriate 
action to address any conflict between an interchange 
commitment and the provisions of this part.
  (d) Purchase Authority.--
          (1) In general.--Except as provided in paragraph (5), 
        if the Board finds that--
                  (A) an interchange commitment is found to be 
                in violation of this part, and
                  (B) the purchaser or tenant rail carrier and 
                the seller or lessor rail carrier cannot bring 
                the interchange commitment into compliance with 
                this part within a reasonable period of time,
        the Board may require, upon application by the 
        purchaser or tenant rail carrier, the elimination of 
        the interchange commitment at a price paid by the 
        purchaser or tenant rail carrier not less than the 
        terms established under paragraph (2).
          (2) Terms.--In the case of an interchange commitment 
        subject to elimination under paragraph (1), the Board 
        shall determine the fair market value of an interchange 
        commitment by considering--
                   (A) any credits, payments, expenses, or 
                other income paid and due from the interchange 
                commitment to the seller or lessor rail 
                carrier;
                  (B) reasonable financial hardships of the 
                purchaser or tenant rail carrier due to 
                unreasonable terms, if any, of the interchange 
                agreement; and
                   (C) other relevant factors as determined by 
                the Board.
          (3) Employee protection.--The Board shall require 
        protections consistent with the requirements of section 
        11326(a) for rail labor employees who are affected by 
        an action under this subsection.
          (4) Purchaser preconditions.--Any purchaser or tenant 
        rail carrier that buys out an interchange commitment 
        under this subsection may determine preconditions, such 
        as payment of a subsidy, which must be met by shippers 
        in order to obtain service over such lines, but such 
        rail carrier must notify the shippers on the line of 
        its intention to impose such preconditions.
          (5) Exception.--If the Board requires the elimination 
        of an interchange commitment under paragraph (1), and 
        the purchaser or tenant rail carrier or the seller or 
        lessor rail carrier demonstrates that the sale or lease 
        agreement containing the interchange commitment 
        contains a provision governing the manner in which the 
        agreement may be terminated, the Board shall permit the 
        agreement to be terminated in accordance with that 
        provision.
          (6) Definitions.--In this subsection:
                  (A) Purchaser or tenant rail carrier.--The 
                term ``purchaser or tenant rail carrier'' means 
                a Class II or Class III rail carrier that 
                purchases or leases a rail line that is subject 
                to terms of an interchange commitment.
                  (B) Seller or lessor rail carrier.--The term 
                ``seller or lessor rail carrier'' means a Class 
                I rail carrier that leased or sold a rail line 
                subject to terms of an interchange commitment.
  (e) Deadline for completion of proceeding.--The Board shall 
complete any proceeding under this section within 180 days 
after the close of the administrative record.

11709. Arbitration of certain rail rate, practice, and common carrier 
                    service disputes

  (a) In General.--Not later than one year after enactment of 
the Surface Transportation Board Reauthorization Act of 2009, 
the Board shall promulgate regulations to establish a binding 
arbitration process to resolve rail rate, practice, and common 
carrier service expectation complaints subject to the 
jurisdiction of the Board.
  (b) Covered Disputes.--The binding arbitration process--
          (1) shall apply to disputes involving rates, 
        practices, and common carrier service expectations 
        subject to the jurisdiction of the Board;
          (2) shall not apply to disputes to obtain the grant, 
        denial, stay or revocation of any license, 
        authorization or exemption, to prescribe for the future 
        any conduct, rules, or results of general, industry-
        wide applicability, or to enforce labor protective 
        conditions; and
          (3) shall not apply to disputes solely between 2 or 
        more rail carriers.
  (c) Arbitration Procedures.--
          (1) The Board--
                  (A) may make the binding arbitration process 
                available only to the relevant parties--
                          (i) after the filing of a formal 
                        complaint; or
                          (ii) upon petition by a party at the 
                        conclusion of any informal dispute 
                        resolution process provided by the 
                        Board for a complaint subject to this 
                        section;
                  (B) with respect to rate disputes, may make 
                the binding arbitration process available only 
                to the relevant parties if the rail carrier has 
                market dominance, as determined under section 
                10707 of this title; and
                  (C) shall determine whether to pursue the 
                binding arbitration process no later than 30 
                days after the filing of a petition or formal 
                complaint.
          (2) Initiation of the binding arbitration process 
        shall preclude the Board from separately reviewing a 
        complaint or dispute related to the same rate, 
        practice, or common carrier service expectation in a 
        covered dispute involving the same parties.
          (3) In resolving disputes involving the 
        reasonableness of a rail carrier's rates, the 
        arbitrator shall consider the Board's methodologies for 
        setting maximum lawful rates, giving due consideration 
        to the need for differential pricing to permit a rail 
        carrier to collect adequate revenues within the meaning 
        of section 10704(a)(2) of this title.
          (4) In resolving disputes involving common carrier 
        service expectations, the arbitrator shall consider 
        service expectations as published pursuant to section 
        11101(f).
  (d) Arbitration Decisions.--Any decision reached in an 
arbitration process under this section shall--
          (1) be consistent with subtitle IV of this title;
          (2) be in writing and shall contain findings of fact 
        and conclusions;
          (3) have no precedential effect in any other or 
        subsequent arbitration dispute; and
          (4) be binding upon the parties.
  (e) Timelines.--
          (1) The arbitrator shall be selected within 14 days 
        after the Board's decision to initiate arbitration.
          (2) The evidentiary process of the arbitration 
        process shall be completed within 90 days after the 
        date of initiation of the arbitration process, unless a 
        party requests an extension and the arbitrator grants 
        it.
          (3) The arbitrator shall issue a decision within 30 
        days after the close of the evidentiary record.
          (4) The Board may extend any of the timelines in this 
        subsection upon the agreement of all parties in the 
        dispute.
  (f) Arbitrators.--Arbitration under this section shall be 
conducted by an arbitrator selected from a roster, maintained 
by the Board, of persons with transportation, economic 
regulation, professional or business experience, including 
agriculture, in the private sector. If the parties cannot 
mutually agree on an arbitrator, the parties shall select an 
arbitrator from the roster by alternately striking names from 
the roster until only 1 name remains. The parties shall share 
the costs of the arbitration equally.
  (g) Relief.--
          (1) Limitation.--A decision under this section may 
        award the payment of damages or rate prescriptive 
        relief, but the value of the award may not exceed 
        $250,000 per year and the award may not cover a total 
        time period of more than 2 years.
          (2) Review.--The board shall periodically review the 
        amount in paragraph (1) and adjust it as necessary to 
        reflect inflation.
  (h) Board Review.--If a party appeals an arbitrator's 
decision to the Board, the Board may review the decision under 
this section to determine if--
          (1) the decision is consistent with subtitle IV of 
        this title as applied by the Board; or
          (2) if the award limitation in subsection (g).

                       PART C--PIPELINE CARRIERS

                       CHAPTER 153--JURISDICTION

Sec. 15301. General pipeline jurisdiction

  (a) In General.--The Board has jurisdiction over 
transportation by pipeline, or by pipeline and railroad or 
water, when transporting a commodity other than water, [gas, or 
oil.] oil, or natural or artificial gases that are used 
primarily as a fuel or for other energy purposes. Jurisdiction 
under this subsection applies only to transportation in the 
United States between a place in--
          (1) a State and a place in another State;
          (2) the District of Columbia and another place in the 
        District of Columbia;
          (3) a State and a place in a territory or possession 
        of the United States;
          (4) a territory or possession of the United States 
        and a place in another such territory or possession;
          (5) a territory or possession of the United States 
        and another place in the same territory or possession;
          (6) the United States and another place in the United 
        States through a foreign country; or
          (7) the United States and a place in a foreign 
        country.
  (b) No Jurisdiction Over Intrastate Transportation.--The 
Board does not have jurisdiction under subsection (a) over the 
transportation of property, or the receipt, delivery, storage, 
or handling of property, entirely in a State (other than the 
District of Columbia) and not transported between a place in 
the United States and a place in a foreign country except as 
otherwise provided in this part.
  (c) Protection of States Powers.--This part does not affect 
the power of a State, in exercising its police power, to 
require reasonable intrastate transportation by carriers 
providing transportation subject to the jurisdiction of the 
Board under this chapter unless the State requirement is 
inconsistent with an order of the Board issued under this part 
or is prohibited under this part.

           *       *       *       *       *       *       *


     CHAPTER 159--ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES

Sec. 15901. General authority

  (a) Investigation; Compliance Order.--Except as otherwise 
provided in this part, the Board may begin an investigation 
under this part [only on complaint.] on the Board's own 
initiative or on complaint. If the Board finds that a pipeline 
carrier is violating this part, the Board shall take 
appropriate action to compel compliance with this part. The 
Board shall provide the carrier notice of the investigation and 
an opportunity for a proceeding.
  (b) Complaint.--A person, including a governmental authority, 
may file with the Board a complaint about a violation of this 
part by a pipeline carrier providing transportation or service 
subject to this part. The complaint must state the facts that 
are the subject of the violation. The Board may dismiss a 
complaint it determines does not state reasonable grounds for 
investigation and action. However, the Board may not dismiss a 
complaint made against a pipeline carrier providing 
transportation subject to this part because of the absence of 
direct damage to the complainant.
  (c) Automatic Dismissal.--A formal investigative proceeding 
begun by the Board under subsection (a) is dismissed 
automatically unless it is concluded by the Board with 
administrative finality by the end of the 3d year after the 
date on which it was begun.

           *       *       *       *       *       *       *


                       SUBTITLE V--RAIL PROGRAMS

                             PART A--SAFETY

                          CHAPTER 201--GENERAL

                         SUBCHAPTER I--GENERAL

Sec. 20109. Employee protections

  (a) In General.--A railroad carrier engaged in interstate or 
foreign commerce, a contractor or a subcontractor of such a 
railroad carrier, or an officer or employee of such a railroad 
carrier, may not discharge, demote, suspend, reprimand, or in 
any other way discriminate against an employee if such 
discrimination is due, in whole or in part, to the employee's 
lawful, good faith act done, or perceived by the employer to 
have been done or about to be done--
          (1) to provide information, directly cause 
        information to be provided, or otherwise directly 
        assist in any investigation regarding any conduct which 
        the employee reasonably believes constitutes a 
        violation of any Federal law, rule, or regulation 
        relating to railroad safety or security, or gross 
        fraud, waste, or abuse of Federal grants or other 
        public funds intended to be used for railroad safety or 
        security, if the information or assistance is provided 
        to or an investigation stemming from the provided 
        information is conducted by--
                  (A) a Federal, State, or local regulatory or 
                law enforcement agency (including an office of 
                the Inspector General under the Inspector 
                General Act of 1978 (5 U.S.C. App.; Public Law 
                95-452);
                  (B) any Member of Congress, any committee of 
                Congress, or the Government Accountability 
                Office; or
                  (C) a person with supervisory authority over 
                the employee or such other person who has the 
                authority to investigate, discover, or 
                terminate the misconduct;
          (2) to refuse to violate or assist in the violation 
        of any Federal law, rule, or regulation relating to 
        railroad safety or security;
          (3) to file a complaint, or directly cause to be 
        brought a proceeding related to the enforcement of this 
        part or, as applicable to railroad safety or security, 
        chapter 51 or 57 of this title, or to testify in that 
        proceeding;
          (4) to notify, or attempt to notify, the railroad 
        carrier or the Secretary of Transportation of a work-
        related personal injury or work-related illness of an 
        employee;
          (5) to cooperate with a safety or security 
        investigation by the Secretary of Transportation, the 
        Secretary of Homeland Security, or the National 
        Transportation Safety Board;
          (6) to furnish information to the Secretary of 
        Transportation, the Secretary of Homeland Security, the 
        National Transportation Safety Board, or any Federal, 
        State, or local regulatory or law enforcement agency as 
        to the facts relating to any accident or incident 
        resulting in injury or death to an individual or damage 
        to property occurring in connection with railroad 
        transportation; or
          (7) to accurately report hours on duty pursuant to 
        chapter 211.
  (b) Hazardous Safety or Security Conditions.--(1) A railroad 
carrier engaged in interstate or foreign commerce, or an 
officer or employee of such a railroad carrier, shall not 
discharge, demote, suspend, reprimand, or in any other way 
discriminate against an employee for--
          (A) reporting, in good faith, a hazardous safety or 
        security condition;
          (B) refusing to work when confronted by a hazardous 
        safety or security condition related to the performance 
        of the employee's duties, if the conditions described 
        in paragraph (2) exist; or
          (C) refusing to authorize the use of any safety-
        related equipment, track, or structures, if the 
        employee is responsible for the inspection or repair of 
        the equipment, track, or structures, when the employee 
        believes that the equipment, track, or structures are 
        in a hazardous safety or security condition, if the 
        conditions described in paragraph (2) exist.
  (2) A refusal is protected under paragraph (1)(B) and (C) 
if--
          (A) the refusal is made in good faith and no 
        reasonable alternative to the refusal is available to 
        the employee;
          (B) a reasonable individual in the circumstances then 
        confronting the employee would conclude that--
                  (i) the hazardous condition presents an 
                imminent danger of death or serious injury; and
                  (ii) the urgency of the situation does not 
                allow sufficient time to eliminate the danger 
                without such refusal; and
          (C) the employee, where possible, has notified the 
        railroad carrier of the existence of the hazardous 
        condition and the intention not to perform further 
        work, or not to authorize the use of the hazardous 
        equipment, track, or structures, unless the condition 
        is corrected immediately or the equipment, track, or 
        structures are repaired properly or replaced.
  (3) In this subsection, only paragraph (1)(A) shall apply to 
security personnel employed by a railroad carrier to protect 
individuals and property transported by railroad.
  (c) Prompt Medical Attention.--
          (1) Prohibition.--A railroad carrier or person 
        covered under this section may not deny, delay, or 
        interfere with the medical or first aid treatment of an 
        employee who is injured during the course of 
        employment. If transportation to a hospital is 
        requested by an employee who is injured during the 
        course of employment, [the railroad shall promptly 
        arrange] the railroad carrier shall promptly arrange to 
        have the injured employee transported to the nearest 
        hospital where the employee can receive safe and 
        appropriate medical care.
          (2) Discipline.--A railroad carrier or person covered 
        under this section may not discipline, or threaten 
        discipline to, an employee for requesting medical or 
        first aid treatment, or for following orders or a 
        treatment plan of a treating physician, except that a 
        railroad carrier's refusal to permit an employee to 
        return to work following medical treatment shall not be 
        considered a violation of this section if the refusal 
        is pursuant to Federal Railroad Administration medical 
        standards for fitness of duty or, if there are no 
        pertinent Federal Railroad Administration standards, a 
        carrier's medical standards for fitness for duty. For 
        purposes of this paragraph, the term ``discipline'' 
        means to bring charges against a person in a 
        disciplinary proceeding, suspend, terminate, place on 
        probation, or make note of reprimand on an employee's 
        record.
  (d) Enforcement Action.--
          (1) In general.--An employee who alleges discharge, 
        discipline, or other discrimination in violation of 
        subsection (a), (b), or (c) of this section, may seek 
        relief in accordance with the provisions of this 
        section, with any petition or other request for relief 
        under this section to be initiated by filing a 
        complaint with the Secretary of Labor.
          (2) Procedure.--
                  (A) In general.--Any action under paragraph 
                (1) shall be governed under the rules and 
                procedures set forth in section 42121(b), 
                including:
                          (i) Burdens of proof.--Any action 
                        brought under subsection (d)(1) shall 
                        be governed by the legal burdens of 
                        proof set forth in section 42121(b).
                          (ii) Statute of limitations.--An 
                        action under paragraph (1) shall be 
                        commenced not later than 180 days after 
                        the date on which the alleged violation 
                        of subsection (a), (b), or (c) of this 
                        section occurs.
                          (iii) Civil actions to enforce.--If a 
                        person fails to comply with an order 
                        issued by the Secretary of Labor 
                        pursuant to the procedures in section 
                        42121(b), the Secretary of Labor may 
                        bring a civil action to enforce the 
                        order in the district court of the 
                        United States for the judicial district 
                        in which the violation occurred, as set 
                        forth in section 42121.
                  (B) Exception.--Notification made under 
                section 42121(b)(1) shall be made to the person 
                named in the complaint and the person's 
                employer.
          (3) De novo review.--With respect to a complaint 
        under paragraph (1), if the Secretary of Labor has not 
        issued a final decision within 210 days after the 
        filing of the complaint and if the delay is not due to 
        the bad faith of the employee, the employee may bring 
        an original action at law or equity for de novo review 
        in the appropriate district court of the United States, 
        which shall have jurisdiction over such an action 
        without regard to the amount in controversy, and which 
        action shall, at the request of either party to such 
        action, be tried by the court with a jury.
          (4) Appeals.--Any person adversely affected or 
        aggrieved by an order issued pursuant to the procedures 
        in section 42121(b),\5\ may obtain review of the order 
        in the United States court of appeals for the circuit 
        in which the violation, with respect to which the order 
        was issued, allegedly occurred or the circuit in which 
        the complainant resided on the date of such violation. 
        The petition for review must be filed not later than 60 
        days after the date of the issuance of the final order 
        of the Secretary of Labor. The review shall conform to 
        chapter 7 of title 5. The commencement of proceedings 
        under this paragraph shall not, unless ordered by the 
        court, operate as a stay of the order.
---------------------------------------------------------------------------
    \5\So in original. The comma probably should not appear.
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  (e) Remedies.--
          (1) In general.--An employee prevailing in any action 
        under subsection (d) shall be entitled to all relief 
        necessary to make the employee whole.
          (2) Damages.--Relief in an action under subsection 
        (d) (including an action described in subsection 
        (d)(3)) shall include--
                  (A) reinstatement with the same seniority 
                status that the employee would have had, but 
                for the discrimination;
                  (B) any backpay, with interest; and
                  (C) compensatory damages, including 
                compensation for any special damages sustained 
                as a result of the discrimination, including 
                litigation costs, expert witness fees, and 
                reasonable attorney fees.
          (3) Possible relief.--Relief in any action under 
        subsection (d) may include punitive damages in an 
        amount not to exceed $250,000.
  (f) Election of Remedies.--An employee may not seek 
protection under both this section and another provision of law 
for the same allegedly unlawful act of the railroad carrier.
  (g) No Preemption.--Nothing in this section preempts or 
diminishes any other safeguards against discrimination, 
demotion, discharge, suspension, threats, harassment, 
reprimand, retaliation, or any other manner of discrimination 
provided by Federal or State law.
  (h) Rights Retained by Employee.--Nothing in this section 
shall be deemed to diminish the rights, privileges, or remedies 
of any employee under any Federal or State law or under any 
collective bargaining agreement. The rights and remedies in 
this section may not be waived by any agreement, policy, form, 
or condition of employment.
  (i) 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 the 
        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 
        part or, as applicable to railroad safety or security, 
        chapter 51 or 57 of this title, or a regulation 
        prescribed or order issued under any of those 
        provisions.
          (2) The Secretary of Transportation or the Secretary 
        of Homeland Security shall disclose to the Attorney 
        General the name of an employee described in paragraph 
        (1) if the matter is referred to the Attorney General 
        for enforcement. The Secretary making such disclosures 
        shall provide reasonable advance notice to the affected 
        employee if disclosure of that person's identity or 
        identifying information is to occur.
  (j) Process for Reporting Security Problems to the Department 
of Homeland Security.--
          (1) Establishment of process.--The Secretary of 
        Homeland Security shall establish through regulations, 
        after an opportunity for notice and comment, a process 
        by which any person may report to the Secretary of 
        Homeland Security regarding railroad security problems, 
        deficiencies, or vulnerabilities.
          (2) Acknowledgment of receipt.--If a report submitted 
        under paragraph (1) identifies the person making the 
        report, the Secretary of Homeland Security shall 
        respond promptly to such person and acknowledge receipt 
        of the report.
          (3) Steps to address problem.--The Secretary of 
        Homeland Security shall review and consider the 
        information provided in any report submitted under 
        paragraph (1) and shall take appropriate steps to 
        address any problems or deficiencies identified.

           *       *       *       *       *       *       *


Sec. 20120. Enforcement report

  (a) In General.--Beginning not later than December 31, 2009, 
the Secretary of Transportation shall make available to the 
public and publish on its public website an annual report 
that--
          (1) provides a summary of railroad safety and 
        hazardous materials compliance inspections and audits 
        that Federal or State inspectors conducted in the prior 
        fiscal year organized by type of alleged violation, 
        including track, motive power and equipment, signal, 
        grade crossing, operating practices, accident and 
        incidence reporting, and hazardous materials;
          (2) provides a summary of all enforcement actions 
        taken by the Secretary or the Federal Railroad 
        Administration during the prior fiscal year, 
        including--
                  (A) the number of civil penalties assessed;
                  (B) the initial amount of civil penalties 
                assessed;
                  (C) the number of civil penalty cases 
                settled;
                  (D) the final amount of civil penalties 
                assessed;
                  (E) the difference between the initial and 
                final amounts of civil penalties assessed;
                  (F) the number of administrative hearings 
                requested and completed related to hazardous 
                materials transportation law violations or 
                enforcement actions against individuals;
                  (G) the number of cases referred to the 
                Attorney General for civil or criminal 
                prosecution; and
                  (H) the number and subject matter of all 
                compliance orders, emergency orders, or 
                precursor agreements;
          (3) analyzes the effect of the number of inspections 
        conducted and enforcement actions taken on the number 
        and rate of reported accidents and incidents and 
        railroad safety;
          (4) provide the information required by paragraphs 
        (2) and (3)--
                  (A) for each Class I railroad individually; 
                and
                  (B) in the aggregate for--
                          (i) Class II railroads;
                          (ii) Class III railroads;
                          (iii) hazardous materials shippers; 
                        and
                          (iv) individuals;
          (5) identifies the number of locomotive engineer 
        certification denial or revocation cases appealed to 
        and the average length of time it took to be decided 
        by--
                  (A) the Locomotive Engineer Review Board;
                  (B) an [Administrative Hearing Officer or 
                Administrative Law Judge;] administrative 
                hearing officer or administrative law judge; or
                  (C) the Administrator of the Federal Railroad 
                Administration;
          (6) provides an explanation regarding any changes in 
        the Secretary's or the Federal Railroad 
        Administration's enforcement programs or policies that 
        may substantially affect the information reported; and
          (7) includes any additional information that the 
        Secretary determines is useful to improve the 
        transparency of its enforcement program.

SUBCHAPTER II--PARTICULAR ASPECTS OF SAFETY

           *       *       *       *       *       *       *


Sec. 20151. Railroad trespassing, vandalism, and highway-rail grade 
                    crossing warning sign violation prevention strategy

  (a) Evaluation of Existing Laws.--In consultation with 
affected parties, the Secretary of Transportation shall 
evaluate and review current local, State, and Federal laws 
regarding trespassing on railroad property, vandalism affecting 
railroad safety, and violations of highway-rail grade crossing 
signs, signals, markings, or other warning devices and develop 
model prevention strategies and enforcement laws to be used for 
the consideration of State and local legislatures and 
governmental entities. The first such evaluation and review 
shall be completed within 1 year after the date of enactment of 
the Rail Safety Improvement Act of 2008. The Secretary shall 
revise the model prevention strategies and enforcement codes 
periodically.
  (b) Outreach Program for Trespassing and Vandalism 
Prevention.--The Secretary shall develop and maintain a 
comprehensive outreach program to improve communications among 
Federal railroad safety inspectors, State inspectors certified 
by the Federal Railroad Administration, railroad police, and 
State and local law enforcement officers, for the purpose of 
addressing trespassing and vandalism problems on railroad 
property, and strengthening relevant enforcement strategies. 
This program shall be designed to increase public and police 
awareness of the illegality of, dangers inherent in, and the 
extent of, trespassing on railroad rights-of-way, to develop 
strategies to improve the prevention of trespassing and 
vandalism, and to improve the enforcement of laws relating to 
railroad trespass, vandalism, and safety.
  (c) Model Legislation.--(1) Within 18 months after November 
2, 1994, the Secretary, after consultation with State and local 
governments and railroad carriers, shall develop and make 
available to State and local governments model State 
legislation providing for--
          (A) civil or criminal penalties, or both, for 
        vandalism of railroad equipment or property which could 
        affect the safety of the public or of railroad 
        employees; and
          (B) civil or criminal penalties, or both, for 
        trespassing on a railroad owned or leased right-of-way.
  (2) Not later than 18 months after the date of enactment of 
the Rail Safety Improvement Act of 2008, the Secretary, after 
consultation with State and local governments and railroad 
carriers, shall develop and make available to State and local 
governments model State legislation providing for civil or 
criminal penalties, or both, for violations of highway-rail 
grade crossing signs, signals, markings, or other warning 
devices.
  (d) Definition.--In this section, the term ``violation of 
highway-rail grade crossing signs, signals, markings, or other 
warning devices'' includes any action by a motorist, unless 
directed by an authorized safety officer--
          (1) [to drive around a grade crossing gate] to drive 
        through, around, or under a grade crossing gate  in a 
        position intended to block passage over railroad 
        tracks;
          (2) to drive through a flashing grade crossing 
        signal;
          (3) to drive through a grade crossing with passive 
        warning signs without ensuring that the grade crossing 
        could be safely crossed before any train arrived; and
          (4) in the vicinity of a grade crossing, who creates 
        a hazard of an accident involving injury or property 
        damage at the grade crossing.

Sec. 20152. Notification of grade crossing problems

  (a) In General.--Not later than 18 months after the date of 
enactment of the Rail Safety Improvement Act of 2008, the 
Secretary of Transportation shall require each railroad carrier 
to--
          (1) establish and maintain a toll-free telephone 
        service for rights-of-way over which it dispatches 
        trains, to directly receive calls reporting--
                  (A) malfunctions of signals, crossing gates, 
                and other devices to promote safety at the 
                grade crossing of railroad tracks on those 
                rights-of-way and public or private roads;
                  (B) disabled vehicles blocking railroad 
                tracks at such grade crossings;
                  (C) obstructions to the view of a pedestrian 
                or a vehicle operator for a reasonable distance 
                in either direction of a train's approach; or
                  (D) other safety information involving such 
                grade crossings;
          (2) upon receiving a report pursuant to paragraph 
        (1)(A) or (B), immediately contact trains operating 
        near the grade crossing to warn them of the malfunction 
        or disabled vehicle;
          (3) upon receiving a report pursuant to paragraph 
        (1)(A) or (B), and after contacting trains pursuant to 
        paragraph (2), contact, as necessary, appropriate 
        public safety officials having jurisdiction over the 
        grade crossing to provide them with the information 
        necessary for them to direct traffic, assist in the 
        removal of the disabled vehicle, or carry out other 
        activities as appropriate;
          (4) upon receiving a report pursuant to paragraph 
        (1)(C) or (D), timely investigate the report, remove 
        the obstruction if possible, or correct the unsafe 
        circumstance; and
          (5) ensure the placement at each grade crossing on 
        rights-of-way that it owns of appropriately located 
        signs, on which shall appear, at a minimum--
                  (A) a toll-free telephone number to be used 
                for placing calls described in paragraph (1) to 
                the railroad carrier dispatching trains on that 
                right-of-way;
                  (B) an explanation of the purpose of that 
                toll-free telephone number; and
                  (C) the grade crossing number assigned for 
                that crossing by the National Highway-Rail 
                Crossing Inventory established by the 
                Department of Transportation.
  (b) Waiver.--The Secretary may waive the requirement that the 
telephone service be toll-free for Class II and Class III [rail 
carriers] railroad carriers if the Secretary determines that 
toll-free service would be cost prohibitive or unnecessary.

           *       *       *       *       *       *       *


Sec. 20156. Railroad safety risk reduction program

  (a) In General.--
          (1) Program requirement.--Not later than 4 years 
        after the date of enactment of the Rail Safety 
        Improvement Act of 2008, the Secretary of 
        Transportation, by regulation, shall require each 
        railroad carrier that is a Class I railroad, a railroad 
        carrier that has inadequate safety performance (as 
        determined by the Secretary), or a railroad carrier 
        that provides intercity rail passenger or commuter rail 
        passenger transportation--
                  (A) to develop a railroad safety risk 
                reduction program under subsection (d) that 
                systematically evaluates railroad safety risks 
                on its system and manages those risks in order 
                to reduce the numbers and rates of railroad 
                accidents, incidents, injuries, and fatalities;
                  (B) to submit its program, including any 
                required plans, to the Secretary for review and 
                approval; and
                  (C) to implement the program and plans 
                approved by the Secretary.
          (2) Reliance on pilot program.--The Secretary may 
        conduct behavior-based safety and other research, 
        including pilot programs, before promulgating 
        regulations under this subsection and thereafter. The 
        Secretary shall use any information and experience 
        gathered through such research and pilot programs under 
        this subsection in developing regulations under this 
        section.
          (3) Review and approval.--The Secretary shall review 
        and approve or disapprove railroad safety risk 
        reduction program plans within a reasonable period of 
        time. If the proposed plan is not approved, the 
        Secretary shall notify the affected railroad carrier as 
        to the specific areas in which the proposed plan is 
        deficient, and the railroad carrier shall correct all 
        deficiencies within a reasonable period of time 
        following receipt of written notice from the Secretary. 
        The Secretary shall annually conduct a review to ensure 
        that the railroad carriers are complying with their 
        plans.
          (4) Voluntary compliance.--A railroad carrier that is 
        not required to submit a railroad safety risk reduction 
        program under this section may voluntarily submit a 
        program that meets the requirements of this section to 
        the Secretary. The Secretary shall approve or 
        disapprove any program submitted under this paragraph.
  (b) Certification.--The chief official responsible for safety 
of each railroad carrier required to submit a railroad safety 
risk reduction program under subsection (a) shall certify that 
the contents of the program are accurate and that the railroad 
carrier will implement the contents of the program as approved 
by the Secretary.
  (c) Risk Analysis.--In developing its railroad safety risk 
reduction [program] program, each railroad carrier required to 
submit such a program pursuant to subsection (a) shall identify 
and analyze the aspects of its railroad, including operating 
rules and practices, infrastructure, equipment, employee levels 
and schedules, safety culture, management structure, employee 
training, and other matters, including those not covered by 
railroad safety regulations or other Federal regulations, that 
impact railroad safety.
  (d) Program Elements.--
          (1) In general.--Each railroad carrier required to 
        submit a railroad safety risk reduction program under 
        subsection (a) shall develop a comprehensive safety 
        risk reduction program to improve safety by reducing 
        the number and rates of accidents, incidents, injuries, 
        and fatalities that is based on the risk analysis 
        required by subsection (c) through--
                  (A) the mitigation of aspects that increase 
                risks to railroad safety; and
                  (B) the enhancement of aspects that decrease 
                risks to railroad safety.
          (2) Required components.--Each railroad carrier's 
        safety risk reduction program shall include a risk 
        mitigation plan in accordance with this section, a 
        technology implementation plan that meets the 
        requirements of subsection (e), and a fatigue 
        management plan that meets the requirements of 
        subsection (f).
  (e) Technology Implementation Plan.--
          (1) In general.--As part of its railroad safety risk 
        reduction program, a railroad carrier required to 
        submit a railroad safety risk reduction program under 
        subsection (a) shall develop, and periodically update 
        as necessary, a 10-year technology implementation plan 
        that describes the railroad carrier's plan for 
        development, adoption, implementation, maintenance, and 
        use of current, new, or novel technologies on its 
        system over a 10-year period to reduce safety risks 
        identified under the railroad safety risk reduction 
        program. Any updates to the plan are subject to review 
        and approval by the Secretary.
          (2) Technology analysis.--A railroad carrier's 
        technology implementation plan shall include an 
        analysis of the safety impact, feasibility, and cost 
        and benefits of implementing technologies, including 
        processor-based technologies, positive train control 
        systems (as defined in section 20157(i)), 
        electronically controlled pneumatic brakes, rail 
        integrity inspection systems, rail integrity warning 
        systems, switch position monitors and indicators, 
        trespasser prevention technology, highway-rail grade 
        crossing technology, and other new or novel railroad 
        safety technology, as appropriate, that may mitigate 
        risks to railroad safety identified in the risk 
        analysis required by subsection (c).
          (3) Implementation schedule.--A railroad carrier's 
        technology implementation plan shall contain a 
        prioritized implementation schedule for the 
        development, adoption, implementation, and use of 
        current, new, or novel technologies on its system to 
        reduce safety risks identified under the railroad 
        safety risk reduction program.
          (4) Positive train control.--Except as required by 
        section 20157 (relating to the requirements for 
        implementation of positive train control systems), the 
        Secretary shall ensure that--
                  (A) each railroad carrier's technology 
                implementation plan required under paragraph 
                (1) that includes a schedule for implementation 
                of a positive train control system complies 
                with that schedule; and
                  (B) each railroad carrier required to submit 
                such a plan implements a positive train control 
                system pursuant to such plan by December 31, 
                2018.
  (f) Fatigue Management Plan.--
          (1) In general.--As part of its railroad safety risk 
        reduction program, a railroad carrier required to 
        submit a railroad safety risk reduction program under 
        subsection (a) shall develop and update at least once 
        every 2 years a fatigue management plan that is 
        designed to reduce the fatigue experienced by safety-
        related railroad employees and to reduce the likelihood 
        of accidents, incidents, injuries, and fatalities 
        caused by fatigue. Any such update shall be subject to 
        review and approval by the Secretary.
          (2) Targeted fatigue countermeasures.--A railroad 
        carrier's fatigue management plan shall take into 
        account the varying circumstances of operations by the 
        railroad on different parts of its system, and shall 
        prescribe appropriate fatigue countermeasures to 
        address those varying circumstances.
          (3) Additional elements.--A railroad shall consider 
        the need to include in its fatigue management plan 
        elements addressing each of the following items, as 
        applicable:
                  (A) Employee education and training on the 
                physiological and human factors that affect 
                fatigue, as well as strategies to reduce or 
                mitigate the effects of fatigue, based on the 
                most current scientific and medical research 
                and literature.
                  (B) Opportunities for identification, 
                diagnosis, and treatment of any medical 
                condition that may affect alertness or fatigue, 
                including sleep disorders.
                  (C) Effects on employee fatigue of an 
                employee's short-term or sustained response to 
                emergency situations, such as derailments and 
                natural disasters, or engagement in other 
                intensive working conditions.
                  (D) Scheduling practices for employees, 
                including innovative scheduling practices, on-
                duty call practices, work and rest cycles, 
                increased consecutive days off for employees, 
                changes in shift patterns, appropriate 
                scheduling practices for varying types of work, 
                and other aspects of employee scheduling that 
                would reduce employee fatigue and cumulative 
                sleep loss.
                  (E) Methods to minimize accidents and 
                incidents that occur as a result of working at 
                times when scientific and medical research have 
                shown increased fatigue disrupts employees' 
                circadian rhythm.
                  (F) Alertness strategies, such as policies on 
                napping, to address acute drowsiness and 
                fatigue while an employee is on duty.
                  (G) Opportunities to obtain restful sleep at 
                lodging facilities, including employee sleeping 
                quarters provided by the railroad carrier.
                  (H) The increase of the number of consecutive 
                hours of off-duty rest, during which an 
                employee receives no communication from the 
                employing railroad carrier or its managers, 
                supervisors, officers, or agents.
                  (I) Avoidance of abrupt changes in rest 
                cycles for employees.
                  (J) Additional elements that the Secretary 
                considers appropriate.
  (g) Consensus.--
          (1) In general.--Each railroad carrier required to 
        submit a railroad safety risk reduction program under 
        subsection (a) shall consult with, employ good faith 
        and use its best efforts to reach agreement with, all 
        of its directly affected employees, including any [non-
        profit] nonprofit employee labor organization 
        representing a class or craft of directly affected 
        employees of the railroad carrier, on the contents of 
        the safety risk reduction program.
          (2) Statement.--If the railroad carrier and its 
        directly affected employees, including any nonprofit 
        employee labor organization representing a class or 
        craft of directly affected employees of the railroad 
        carrier, cannot reach consensus on the proposed 
        contents of the plan, then directly affected employees 
        and such organization may file a statement with the 
        Secretary explaining their views on the plan on which 
        consensus was not reached. The Secretary shall consider 
        such views during review and approval of the program.
  (h) Enforcement.--The Secretary shall have the authority to 
assess civil penalties pursuant to chapter 213 for a violation 
of this section, including the failure to submit, certify, or 
comply with a safety risk reduction program, risk mitigation 
plan, technology implementation plan, or fatigue management 
plan.

Sec. 20157. Implementation of positive train control systems

  (a) In General.--
          (1) Plan required.--Not later than 18 months after 
        the date of enactment of the Rail Safety Improvement 
        Act of 2008, each Class I [railroad carrier] railroad 
        and each entity providing regularly scheduled intercity 
        or commuter rail passenger transportation shall develop 
        and submit to the Secretary of Transportation a plan 
        for implementing a positive train control system by 
        December 31, 2015, governing operations on--
                  (A) its main line over which intercity rail 
                passenger transportation or commuter rail 
                passenger transportation, as defined in section 
                24102, is regularly provided;
                  (B) its main line over which poison-or toxic-
                by-inhalation hazardous materials, as defined 
                in [parts] sections 171.8, 173.115, and 173.132 
                of title 49, Code of Federal Regulations, are 
                transported; and
                  (C) such other tracks as the Secretary may 
                prescribe by regulation or order.
          (2) Implementation.--The plan shall describe how it 
        will provide for interoperability of the system with 
        movements of trains of other railroad carriers over its 
        lines and shall, to the extent practical, implement the 
        system in a manner that addresses areas of greater risk 
        before areas of lesser risk. The railroad carrier shall 
        implement a positive train control system in accordance 
        with the plan.
  (b) Technical Assistance.--The Secretary may provide 
technical assistance and guidance to railroad carriers in 
developing the plans required under subsection (a).
  (c) Review and Approval.--Not later than 90 days after the 
Secretary receives a plan, the Secretary shall review and 
approve or disapprove it. If the proposed plan is not approved, 
the Secretary shall notify the affected railroad carrier or 
other entity as to the specific areas in which the proposed 
plan is deficient, and the railroad carrier or other entity 
shall correct all deficiencies within 30 days following receipt 
of written notice from the Secretary. The Secretary shall 
annually conduct a review to ensure that the railroad carriers 
are complying with their plans.
  (d) Report.--Not later than December 31, 2012, the Secretary 
shall transmit a report to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate on the progress of the railroad carriers in implementing 
such positive train control systems.
  (e) Enforcement.--The Secretary is authorized to assess civil 
penalties pursuant to chapter 213 for a violation of this 
section, including the failure to submit or comply with a plan 
for implementing positive train control under subsection (a).
  (f) Other Railroad Carriers.--Nothing in this section 
restricts the discretion of the Secretary to require railroad 
carriers other than those specified in subsection (a) to 
implement a positive train control system pursuant to this 
section or section 20156, or to specify the period by which 
implementation shall occur that does not exceed the time limits 
established in this section or section 20156. In exercising 
such discretion, the Secretary shall, at a minimum, consider 
the risk to railroad employees and the public associated with 
the operations of the railroad carrier.
  (g) Regulations.--The Secretary shall prescribe regulations 
or issue orders necessary to implement this section, including 
regulations specifying in appropriate technical detail the 
essential functionalities of positive train control systems, 
and the means by which those systems will be qualified.
  (h) Certification.--The Secretary shall not permit the 
installation of any positive train control system or component 
in revenue service unless the Secretary has certified that any 
such system or component has been approved through the approval 
process set forth in part 236 of title 49, Code of Federal 
Regulations, and complies with the requirements of that part.
  (i) Definitions.--In this section:
          (1) Interoperability.--The term ``interoperability'' 
        means the ability to control locomotives of the host 
        railroad and tenant railroad to communicate with and 
        respond to the positive train control system, including 
        uninterrupted movements over property boundaries.
          (2) Main line.--The term ``main line'' means a 
        segment or route of railroad tracks over which 
        5,000,000 or more gross tons of railroad traffic is 
        transported annually, except that--
                  (A) the Secretary may, through regulations 
                under subsection (g), designate additional 
                tracks as main line as appropriate for this 
                section; and
                  (B) for intercity rail passenger 
                transportation or commuter rail passenger 
                transportation routes or segments over which 
                limited or no freight railroad operations 
                occur, the Secretary shall define the term 
                ``main line'' by regulation.
          (3) Positive train control system.--The term 
        ``positive train control system'' means a system 
        designed to prevent train-to-train collisions, over-
        speed derailments, incursions into established work 
        zone limits, and the movement of a train through a 
        switch left in the wrong position.

           *       *       *       *       *       *       *


Sec. 20158. Railroad safety technology grants

  (a) Grant Program.--The Secretary of Transportation shall 
establish a grant program for the deployment of train control 
technologies, train control component technologies, processor-
based technologies, electronically controlled pneumatic brakes, 
rail integrity inspection systems, rail integrity warning 
systems, switch position indicators and monitors, remote 
control power switch technologies, track integrity circuit 
technologies, and other new or novel railroad safety 
technology.
  (b) Grant Criteria.--
          (1) Eligibility.--Grants shall be made under this 
        section to eligible passenger and freight railroad 
        carriers, railroad suppliers, and State and local 
        governments for projects described in subsection (a) 
        that have a public benefit of improved safety and 
        network efficiency.
          (2) Considerations.--Priority shall be given to 
        projects that--
                  (A) focus on making technologies 
                interoperable between railroad systems, such as 
                train control technologies;
                  (B) accelerate train control technology 
                deployment on high-risk corridors, such as 
                those that have high volumes of hazardous 
                materials shipments or over which commuter or 
                passenger trains operate; or
                  (C) benefit both passenger and freight safety 
                and efficiency.
          (3) Implementation plans.--Grants may not be awarded 
        under this section to entities that fail to develop and 
        submit to the Secretary the plans required by sections 
        [20156(e)(2)] 20156(e) and 20157.
          (4) Matching requirements.--Federal funds for any 
        eligible project under this section shall not exceed 80 
        percent of the total cost of such project.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of Transportation $50,000,000 
for each of fiscal years 2009 through 2013 to carry out this 
section. Amounts appropriated pursuant to this section shall 
remain available until expended.

Sec. 20159. Roadway user sight distance at highway-rail grade crossings

  Not later than 18 months after the date of enactment of the 
Rail Safety Improvement Act of 2008, the Secretary of 
Transportation, after consultation with the Federal Railroad 
Administration, the Federal Highway Administration, and States, 
shall develop and make available to States model legislation 
providing for improving safety by addressing sight 
obstructions, including vegetation growth, topographic 
features, structures, and standing railroad equipment, at 
highway-rail grade crossings that are equipped solely with 
passive warnings, as recommended by the Inspector General of 
the Department of Transportation in Report No. MH-2007-044.

Sec. 20160. National crossing inventory

  (a) Initial Reporting of Information About Previously 
Unreported Crossings.--Not later than 1 year after the date of 
enactment of the Rail Safety Improvement Act of 2008 or 6 
months after a new crossing becomes operational, whichever 
occurs later, each railroad carrier shall--
          (1) report to the Secretary of Transportation current 
        information, including information about warning 
        devices and signage, as specified by the Secretary, 
        concerning each previously unreported crossing through 
        which it operates [or] with respect to the trackage 
        over which it operates; or
          (2) ensure that the information has been reported to 
        the Secretary by another railroad carrier that operates 
        through the crossing.
  (b) Updating of Crossing Information.--
          (1) On a periodic basis beginning not later than 2 
        years after the date of enactment of the Rail Safety 
        Improvement Act of 2008 and on or before September 30 
        of every year thereafter, or as otherwise specified by 
        the Secretary, each railroad carrier shall--
                  (A) report to the Secretary current 
                information, including information about 
                warning devices and signage, as specified by 
                the Secretary, concerning each crossing through 
                which it operates [or] with respect to the 
                trackage over which it operates; or
                  (B) ensure that the information has been 
                reported to the Secretary by another railroad 
                carrier that operates through the crossing.
          (2) A railroad carrier that sells a crossing or any 
        part of a crossing on or after the date of enactment of 
        the Rail Safety Improvement Act of 2008 shall, not 
        later than the date that is 18 months after the date of 
        enactment of that Act or 3 months after the sale, 
        whichever occurs later, or as otherwise specified by 
        the Secretary, report to the Secretary current 
        information, as specified by the Secretary, concerning 
        the change in ownership of the crossing or part of the 
        crossing.
  (c) Rulemaking Authority.--The Secretary shall prescribe the 
regulations necessary to implement this section. The Secretary 
may enforce each provision of the Department of 
Transportation's statement of the national highway-rail 
crossing inventory policy, procedures, and instruction for 
States and railroads that is in effect on the date of enactment 
of the Rail Safety Improvement Act of 2008, until such 
provision is superseded by a regulation issued under this 
section.
  (d) Definitions.--In this section:
          (1) Crossing.--The term ``crossing'' means a location 
        within a State, other than a location where one or more 
        railroad tracks cross one or more railroad tracks 
        either at grade or grade-separated, where--
                  (A) a public highway, road, or street, or a 
                private roadway, including associated sidewalks 
                and pathways, crosses one or more railroad 
                tracks either at grade or grade-separated; or
                  (B) a pathway explicitly authorized by a 
                public authority or a railroad carrier that is 
                dedicated for the use of nonvehicular traffic, 
                including pedestrians, bicyclists, and others, 
                that is not associated with a public highway, 
                road, or street, or a private roadway, crosses 
                one or more railroad tracks either at grade or 
                grade-separated.
          (2) State.--The term ``State'' means a State of the 
        United States, the District of Columbia, or the 
        Commonwealth of Puerto Rico.

           *       *       *       *       *       *       *


Sec. 20162. Minimum training standards and plans

  (a) In General.--The Secretary of Transportation shall, not 
later than 1 year after the date of enactment of the Rail 
Safety Improvement Act of 2008, establish--
          (1) minimum training standards for each class and 
        craft of safety-related railroad employee (as defined 
        in section 20102) and equivalent railroad carrier 
        contractor and subcontractor employees, which shall 
        require railroad carriers, contractors, and 
        subcontractors to qualify or otherwise document the 
        proficiency of such employees in each such class and 
        craft regarding their knowledge of, and ability to 
        comply with, Federal railroad safety laws and 
        regulations and railroad carrier rules and procedures 
        promulgated to implement those Federal railroad safety 
        laws and regulations;
          (2) a requirement that railroad carriers, 
        contractors, and subcontractors develop and submit 
        training and qualification plans to the Secretary for 
        approval, including training programs and information 
        deemed necessary by the Secretary to ensure that all 
        safety-related railroad employees receive appropriate 
        training in a timely manner; and
          (3) a minimum training curriculum, and ongoing 
        training criteria, testing, and skills evaluation 
        measures to ensure that safety-related railroad 
        employees, and contractor and subcontractor employees, 
        charged with the inspection of track or railroad 
        equipment are qualified to assess railroad carrier 
        compliance with Federal standards to identify defective 
        conditions and initiate immediate remedial action to 
        correct critical safety defects that are known to 
        contribute to derailments, accidents, incidents, or 
        injuries, and, in implementing the requirements of this 
        paragraph, take into consideration existing training 
        programs of railroad carriers.
  (b) Approval.--The Secretary shall review and approve the 
plans required under subsection (a)(2) utilizing an approval 
process required for programs to certify the qualification of 
locomotive engineers pursuant to part 240 of title 49, Code of 
Federal Regulations.
  (c) Exemption.--The Secretary may exempt railroad carriers 
and railroad carrier contractors and subcontractors from 
submitting training plans for which the Secretary has issued 
training regulations before the date of enactment of the Rail 
Safety Improvement Act of 2008.

           *       *       *       *       *       *       *


Sec. 20164. Development and use of rail safety technology

  (a) In General.--Not later than 1 year after enactment of the 
[Railroad Safety Enhancement Act of 2008,] Rail Safety 
Improvement Act of 2008, the Secretary of Transportation shall 
prescribe standards, guidance, regulations, or orders governing 
the development, use, and implementation of rail safety 
technology in dark territory, in arrangements not defined in 
section 20501 or otherwise not covered by Federal standards, 
guidance, regulations, or orders that ensure the safe operation 
of such technology, such as--
          (1) switch position monitoring devices or indicators;
          (2) radio, remote control, or other power-assisted 
        switches;
          (3) hot box, high water, or earthquake detectors;
          (4) remote control locomotive zone limiting devices;
          (5) slide fences;
          (6) grade crossing video monitors;
          (7) track integrity warning systems; or
          (8) other similar rail safety technologies, as 
        determined by the Secretary.
  (b) Dark Territory Defined.--In this section, the term ``dark 
territory'' means any territory in a railroad system that does 
not have a signal or train control system installed or 
operational.

20168. Interchange commitment relief grants

  (a) In General.--Upon application, the Secretary of 
Transportation, in consultation with the Surface Transportation 
Board, may make grants available to assist any Class III rail 
carrier providing transportation subject to the jurisdiction of 
the Surface Transportation Board with the credit risk premium 
of a direct loan or loan guarantee made for the purposes of 
section 502(b)(1)(D) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822(b)(1)(D)).
  (b) Limitations.--The Secretary of Transportation--
          (1) shall award grants only to applicants with 
        financial need; and
          (2) may approve a grant under this section only as 
        part of an application for a Railroad Rehabilitation 
        and Improvement Financing loan or loan guarantee.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of Transportation for grants 
under this section $7,500,000 for fiscal years 2010 through 
2014.

           *       *       *       *       *       *       *


CHAPTER 211--HOURS OF SERVICE

           *       *       *       *       *       *       *


Sec. 21102. Nonapplication, exemption, and alternate hours of service 
                    regime

  (a) General.--This chapter does not apply to a situation 
involving any of the following:
          (1) a casualty.
          (2) an unavoidable accident.
          (3) an act of God.
          (4) a delay resulting from a cause unknown and 
        unforeseeable to a railroad carrier or its officer or 
        agent in charge of the employee when the employee left 
        a terminal.
  (b) Exemption.--The Secretary of Transportation may exempt a 
railroad carrier having not more than 15 employees covered by 
this chapter from the limitations imposed by this chapter. The 
Secretary may allow the exemption after a full hearing, for 
good cause shown, and on deciding that the exemption is in the 
public interest and will not affect safety adversely. The 
exemption shall be for a specific period of time and is subject 
to review at least annually. The exemption may not authorize a 
carrier to require or allow its employees to be on duty more 
than a total of 16 hours in a 24-hour period.
  (c) Application of Hours of Service Regime to Commuter and 
Intercity Passenger Railroad Train Employees.--
          (1) When providing commuter rail passenger 
        transportation or intercity rail passenger 
        transportation, the limitations on duty hours for train 
        employees of railroad carriers, including public 
        authorities operating passenger service, shall be 
        solely governed by old section 21103 until the earlier 
        of--
                  (A) the effective date of regulations 
                prescribed by the Secretary under section 
                21109(b) of this chapter; or
                  (B) the date that is 3 years following the 
                date of enactment of the Rail Safety 
                Improvement Act of 2008.
          (2) After the date on which old section 21103 ceases 
        to apply, pursuant to paragraph (1), to the limitations 
        on duty hours for train employees of railroad carriers 
        with respect to the provision of commuter rail 
        passenger transportation or intercity rail passenger 
        transportation, the limitations on duty hours for train 
        employees of such railroad carriers shall be governed 
        by new section 21103, except as provided in paragraph 
        (3).
          (3) After the effective date of the regulations 
        prescribed by the Secretary under section 21109(b) of 
        this title, such carriers shall--
                  (A) comply with the limitations on duty hours 
                for train employees with respect to the 
                provision of commuter rail passenger 
                transportation or intercity rail passenger 
                transportation as prescribed by such 
                regulations; and
                  (B) be exempt from complying with the 
                provisions of old section 21103 and new section 
                21103 for such employees.
          (4) In this subsection:
                  (A) The terms ``commuter rail passenger 
                transportation'' and ``intercity rail passenger 
                transportation'' have the meaning given those 
                terms in section 24102 of this title.
                  [(C)] (B) The term ``new section 21103'' 
                means section 21103 of this chapter as amended 
                by the Rail Safety Improvement Act of 2008.
                  [(D)] (C) The term ``old section 21103'' 
                means section 21103 of this chapter as it was 
                in effect on the day before the enactment of 
                that Act.

           *       *       *       *       *       *       *


                           PART B. ASSISTANCE

               CHAPTER 221. LOCAL RAIL FREIGHT ASSISTANCE

22106. Limitations on financial assistance

  (a) Grants and Loans.--A State shall use financial assistance 
for projects under this chapter to make a grant or lend money 
to the owner of rail property, or a rail carrier providing rail 
transportation, related to a project being assisted.
  (b) State Use of Repaid Funds and Contingent Interest 
Recoveries.--The State shall place the United States 
Government's share of money that is repaid and any contingent 
interest that is recovered in an interest-bearing account. The 
repaid money, contingent interest, and any interest [thereof] 
thereon shall be considered to be State funds. The State shall 
use such funds to make other grants and loans, consistent with 
the purposes for which financial assistance may be used under 
subsection (a), as the State considers to be appropriate.
  (c) Encouraging Participation.--To the maximum extent 
possible, the State shall encourage the participation of 
shippers, rail carriers, and local communities in paying the 
State share of assistance costs.

           *       *       *       *       *       *       *


                    PART C--PASSENGER TRANSPORTATION

CHAPTER 241--GENERAL

           *       *       *       *       *       *       *


Sec. 24105. Congestion grants

  (a) Authority.--The Secretary of Transportation may make 
grants to States, or to Amtrak in cooperation with States, for 
financing the capital costs of facilities, infrastructure, and 
equipment for high priority rail corridor projects necessary to 
reduce congestion or facilitate ridership growth in intercity 
rail passenger transportation.
  (b) Eligible Projects.--Projects eligible for grants under 
this section include projects--
          (1) identified by Amtrak as necessary to reduce 
        congestion or facilitate ridership growth in intercity 
        rail passenger transportation along heavily traveled 
        rail corridors;
          (2) identified by the Surface Transportation Board as 
        necessary to improve the on time performance and 
        reliability of intercity rail passenger transportation 
        under section 24308(f); and
          (3) designated by the Secretary as being sufficiently 
        advanced in development to be capable of serving the 
        purposes described in subsection (a) on an expedited 
        schedule.
  (c) Federal Share.--The Federal share of the cost of a 
project financed under this section shall not exceed 80 
percent.
  (d) Grant Conditions.--The Secretary of Transportation shall 
require each recipient of a grant under this section to comply 
with the grant requirements of section 24405 of this title.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated, from amounts made available under [section 301 
of the Passenger Rail Investment and Improvement Act of 2008,] 
section 24406, to the Secretary to carry out this section--
          (1) $50,000,000 for fiscal year 2010;
          (2) $75,000,000 for fiscal year 2011;
          (3) $100,000,000 for fiscal year 2012; and
          (4) $100,000,000 for fiscal year 2013.

           *       *       *       *       *       *       *


CHAPTER 243--AMTRAK

           *       *       *       *       *       *       *


Sec. 24302. Board of Directors

  (a) Composition and Terms.--
          (1) The Amtrak Board of Directors (referred to in 
        this section as the ``Board'') is composed of the 
        following 9 directors, each of whom must be a citizen 
        of the United States:
                  (A) The Secretary of Transportation.
                  (B) The President of Amtrak.
                  (C) 7 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, or 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 shall be appointed for a term of 5 
        years. Such term may be extended until the individual's 
        successor is appointed and qualified. Not more than [5 
        individuals] 4 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, other than the President of Amtrak, 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.
  (b) Pay and Expenses.--Each director not employed by the 
United States Government or Amtrak is entitled to reasonable 
pay when performing Board duties. Each director not employed by 
the United States Government is entitled to reimbursement from 
Amtrak for necessary travel, reasonable secretarial and 
professional staff support, and subsistence expenses incurred 
in attending Board meetings.
  (c) Travel.--(1) Each director not employed by the United 
States Government shall be subject to the same travel and 
reimbursable business travel expense policies and guidelines 
that apply to Amtrak's executive management when performing 
Board duties.
  (2) Not later than 60 days after the end of each fiscal year, 
the Board shall submit a report describing all travel and 
reimbursable business travel expenses paid to each director 
when performing Board duties to the Committee on Transportation 
and Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate.
  (3) The report submitted under paragraph (2) shall include a 
detailed justification for any travel or reimbursable business 
travel expense that deviates from Amtrak's travel and 
reimbursable business travel expense policies and guidelines.
  (d) 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.
  (e) Quorum.--A majority of the members serving shall 
constitute a quorum for doing business.
  (f) 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. 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 Rail Safety Improvement Act of 
2008, a rail passenger carrier 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 a rail passenger 
carrier intercity train and resulting in a major loss of life.
  (b) Contents of Plans.--A plan to be submitted by a rail 
passenger carrier under subsection (a) shall include, at a 
minimum, the following:
          (1) A process by which a rail passenger carrier will 
        maintain and provide to the National Transportation 
        Safety Board, the Secretary of Transportation, and the 
        Secretary of Homeland Security 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 the rail passenger 
        carrier to use reasonable efforts to ascertain the 
        names of passengers aboard a train involved in an 
        accident.
          (2) A process for notifying the families of the 
        passengers, before providing any public notice of the 
        names of the passengers, either by utilizing the 
        services of the organization designated for the 
        accident under section 1139(a)(2) of this title or the 
        services of other suitably trained individuals.
          (3) 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.
          (4) A process for providing the notice described in 
        paragraph (2) to the family of a passenger as soon as 
        the rail passenger carrier has verified that the 
        passenger was aboard the train (whether or not the 
        names of all of the passengers have been verified).
          (5) An assurance that, upon request of the family of 
        a passenger, the rail passenger carrier will inform the 
        family of whether the passenger's name appeared on any 
        preliminary passenger manifest for the train involved 
        in the accident.
          (6) 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 the 
        control of the rail passenger carrier and by which any 
        possession of the passenger within the control of the 
        rail passenger carrier (regardless of its condition)--
                  (A) will be retained by the rail passenger 
                carrier for at least 18 months; and
                  (B) will be returned to the family unless the 
                possession is needed for the accident 
                investigation or any criminal investigation.
          (7) 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.
          (8) An assurance that the rail passenger carrier will 
        provide adequate training to the employees and agents 
        of the carrier to meet the needs of survivors and 
        family members following an accident.
          (9) An assurance that the family of each passenger or 
        other person killed in the accident will be consulted 
        about construction by the rail passenger carrier of any 
        monument to the passengers, including any inscription 
        on the monument.
          (10) An assurance that the rail passenger carrier 
        will work with any organization designated under 
        section 1139(a)(2) of this title on an ongoing basis to 
        ensure that families of passengers receive an 
        appropriate level of services and assistance following 
        each accident.
          (11) An assurance that the rail passenger carrier 
        will provide reasonable compensation to any 
        organization designated under section 1139(a)(2) of 
        this title for services provided by the organization.
  (c) Use of Information.--Neither the National Transportation 
Safety Board, the Secretary of Transportation, the Secretary of 
Homeland Security, nor a rail passenger carrier may release to 
the public any personal information on a list obtained under 
subsection (b)(1), but may provide information on the list 
about a passenger to the passenger's family members to the 
extent that the Board or a rail passenger carrier considers 
appropriate.
  (d) Limitation on Statutory Construction.--
          (1) Rail passenger carriers.--Nothing in this section 
        may be construed as limiting the actions that a rail 
        passenger carrier may take, or the obligations that a 
        rail passenger carrier may have, in providing 
        assistance to the families of passengers involved in a 
        rail passenger accident.
          (2) Investigational authority of board and 
        secretary.--Nothing in this section shall be construed 
        to abridge the authority of the Board or the Secretary 
        of Transportation to investigate the causes or 
        circumstances of any rail accident, including the 
        development of information regarding the nature of 
        injuries sustained and the manner in which they were 
        sustained, for the purpose of determining compliance 
        with existing laws and regulations or identifying means 
        of preventing similar injuries in the future.
  (e) Limitation on Liability.--A rail passenger carrier shall 
not be liable for damages in any action brought in a Federal or 
State court arising out of the performance of the rail 
passenger carrier in preparing or providing a passenger list, 
or in providing information concerning a train reservation, 
pursuant to a plan submitted by the rail passenger carrier 
under subsection (b), unless such liability was caused by 
conduct of the rail passenger carrier which was grossly 
negligent or which constituted intentional misconduct.
  (f) Definitions.--In this section, the terms ``passenger'' 
and ``rail passenger accident'' have the meaning given those 
terms by section 1139 of this title.
  [(g) Funding.--Out of funds appropriated pursuant to section 
20117(a)(1)(A), there shall be made available to the Secretary 
of Transportation $500,000 for fiscal year 2010 to carry out 
this section. Amounts made available pursuant to this 
subsection shall remain available until expended.]

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    CHAPTER 244--INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL 
ASSISTANCE

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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, 
        infrastructure, and equipment necessary to provide or 
        improve intercity passenger rail transportation.
          (2) Consistent with the requirements of this chapter, 
        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 
        2 years after the date of enactment of the Passenger 
        Rail Investment and Improvement Act of 2008. For the 
        period prior to the earlier of the issuance of such a 
        rule or 2 years after the date of enactment of such 
        Act, the Secretary shall issue interim guidance to 
        applicants covering such procedures, and administer the 
        grant program authorized under this section pursuant to 
        such guidance.
  (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 227 of this title, or under the plan 
        required by section 211 of the Passenger Rail 
        Investment and Improvement Act of 2008, 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--
                  (A) that the project be part of a State rail 
                plan developed under chapter 227 of this title, 
                or under the plan required by section 211 of 
                the Passenger Rail Investment and Improvement 
                Act of 2008;
                  (B) 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;
                  (C) that the applicant provides sufficient 
                information upon which the Secretary can make 
                the findings required by this subsection;
                  (D) that if an applicant has selected the 
                proposed operator of its service competitively, 
                that the applicant provide written 
                justification to the Secretary showing why the 
                proposed operator is the best, taking into 
                account costs and other factors;
                  (E) that each proposed project meet all 
                safety and security requirements that are 
                applicable to the project under law; and
                  (F) that each project be compatible with, and 
                operated in conformance with--
                          (i) plans developed pursuant to the 
                        requirements of section 135 of title 
                        23, United States Code; and
                          (ii) the national rail plan (if it is 
                        available);
          (2) select projects--
                  (A) that are anticipated to result in 
                significant improvements to intercity rail 
                passenger service, including, but not limited 
                to, consideration of--
                          (i) the project's 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 207 of the 
                        Passenger Rail Investment and 
                        Improvement Act of 2008;
                          (ii) the project's anticipated 
                        favorable impact on air or highway 
                        traffic congestion, capacity, or 
                        safety; and
                          (iii) identification of the project 
                        by the Surface Transportation Board as 
                        necessary to improve the on-time 
                        performance and reliability of 
                        intercity passenger rail under section 
                        24308(f);
                  (B) for which there is a high degree of 
                confidence that the proposed project is 
                feasible and will result in the anticipated 
                benefits, as indicated by--
                          (i) the project's precommencement 
                        compliance with environmental 
                        protection requirements;
                          (ii) the readiness of the project to 
                        be commenced;
                          (iii) the timing and amount of the 
                        project's future noncommitted 
                        investments;
                          (iv) the commitment of any affected 
                        host rail carrier to ensure the 
                        realization of the anticipated 
                        benefits; and
                          (v) other relevant factors as 
                        determined by the Secretary; and
                  (C) for which the level of the anticipated 
                benefits compares favorably to the amount of 
                Federal funding requested under this chapter; 
                and
          (3) give greater consideration to projects--
                  (A) that are anticipated to result in 
                benefits to other modes transportation and to 
                the public at large, including, but not limited 
                to, consideration of the project's--
                          (i) encouragement of intermodal 
                        connectivity through provision of 
                        direct connections between train 
                        stations, airports, bus terminals, 
                        subway stations, ferry ports, and other 
                        modes of transportation;
                          (ii) anticipated improvement of 
                        freight or commuter rail operations;
                          (iii) encouragement of the use of 
                        positive train control technologies;
                          (iv) environmental benefits, 
                        including projects that involve the 
                        purchase of environmentally sensitive, 
                        fuel-efficient, and cost-effective 
                        passenger rail equipment;
                          (v) anticipated positive economic and 
                        employment impacts;
                          (vi) encouragement of State and 
                        private contributions toward station 
                        development, energy and environmentally 
                        efficiency, and economic benefits; and
                          (vii) falling under the description 
                        in section 5302(a)(1)(G) of this title 
                        as defined to support intercity 
                        passenger rail service; and
                  (B) that incorporate equitable financial 
                participation in the project's financing, 
                including, but not limited to, consideration 
                of--
                          (i) donated property interests or 
                        services;
                          (ii) financial contributions by 
                        freight and commuter rail carriers 
                        commensurate with the benefit expected 
                        to their operations; and
                          (iii) financial commitments from host 
                        railroads, non-Federal governmental 
                        entities, nongovernmental entities, and 
                        others.
  (d) State Rail Plans.--State rail plans completed before the 
date of enactment of the Passenger Rail Investment and 
Improvement Act of 2008 that substantially meet the 
requirements of chapter 227 of this title, as determined by the 
Secretary pursuant to section [22506] 22706 of this title, 
shall be deemed by the Secretary to have met the requirements 
of subsection (c)(1)(A) of this section.
  [(e) Amtrak Eligibility.--To receive a grant under this 
section, Amtrak 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. For such a grant, Amtrak may 
not use Federal funds authorized under section 101(a) or (c) of 
the Passenger Rail Investment and Improvement Act of 2008 to 
fulfill the non-Federal share requirements under subsection (g) 
of this section.]
  (e) Amtrak Eligibility.--Amtrak may be the recipient of a 
grant under this section if Amtrak has entered into a 
cooperative agreement with 1 or more applicants to carry out 1 
or more projects on a State rail plan's list of rail capital 
projects developed under section 22705(a)(5) of this title. For 
such a grant, Amtrak may not use Federal funds authorized under 
section 101(a) or (c) of the Passenger Rail Investment and 
Improvement Act of 2008 to fulfill the non-Federal share 
requirements under subsection (g) of this section.
  (f) Letters of Intent [and Early Systems Work Agreements].--
          (1) 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.
          (2) At least 30 days before issuing a letter under 
        paragraph (1) of this subsection, the Secretary shall 
        notify in writing the Committee on Transportation and 
        Infrastructure of the House of Representatives, 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, the criteria used in 
        subsection (c) for selecting the project for a grant 
        award, and a description of how the project meets such 
        criteria.
          (3) An obligation or administrative commitment may be 
        made only when amounts are appropriated. The letter of 
        intent shall state that the contingent commitment is 
        not an obligation of the Federal Government, and is 
        subject to the availability of appropriations under 
        Federal law and to Federal laws in force or enacted 
        after the date of the contingent commitment.
  (g) 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) The following amounts, not to exceed $15,000,000 
        per fiscal year, shall be available to each applicant 
        as a credit toward an applicant's matching requirement 
        for a grant awarded under this section--
                  (A) in each of fiscal years 2009, 2010, and 
                2011--
                          (i) 50 percent of the average of 
                        amounts expended in fiscal years 2002 
                        through 2008 by an applicant for 
                        capital projects related to intercity 
                        passenger rail service; and
                          (ii) 50 percent of the average of 
                        amounts expended in fiscal years 2002 
                        through 2008 by an applicant for 
                        operating costs of such service; and
                  (B) in each of fiscal years 2010, 2011 and 
                2012, 50 percent of the amount by which the 
                amounts expended for capital projects and 
                operating costs related to intercity passenger 
                rail service by an applicant in the prior 
                fiscal year exceed the average capital and 
                operating expenditures made for such service in 
                fiscal years 2006, 2007, and 2008.
        The Secretary may require such information as necessary 
        to verify such expenditures. Credits made available to 
        an applicant in a fiscal year under this paragraph may 
        only be applied towards grants awarded in that fiscal 
        year.
          (4) The Federal share of expenditures for capital 
        improvements under this chapter may not exceed 100 
        percent.
  (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) Cooperative Agreements.--
          (1) In general.--[A metropolitan planning 
        organization, State transportation department, or other 
        project sponsor]An applicant may enter into an 
        agreement with any public, private, or nonprofit entity 
        to cooperatively implement any project funded with a 
        grant under this chapter.
          (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) Suballocation.--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 227 of this title that provide public benefits 
        (as defined in chapter 227) 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 not 
less than 5 percent annually available from the amounts 
authorized under section 101(c) of the Passenger Rail 
Investment and Improvement Act of 2008 beginning in fiscal year 
2009 for grants for capital projects eligible under this 
section not exceeding $2,000,000, including costs eligible 
under section 209(d) of that Act. For grants awarded under this 
subsection, the Secretary may waive requirements of this 
section, including state rail plan requirements, as 
appropriate.]
  (k) Small Capital Projects.--The Secretary shall make not 
less than 5 percent annually available from the amounts 
appropriated under section 24406 beginning in fiscal year 2009 
for grants for capital projects eligible under this section not 
exceeding $2,000,000, including costs eligible under section 
209(d) of the Passenger Rail Investment and Improvement Act of 
2008. For grants awarded under this subsection, the Secretary 
may waive requirements of this section, including State rail 
plan requirements, as appropriate.
  (l) Nonmotorized Transportation Access and Storage.--Grants 
under this chapter may be used to provide access to rolling 
stock for nonmotorized transportation, including bicycles, and 
recreational equipment, and to provide storage capacity in 
trains for such transportation, equipment, and other luggage, 
to ensure passenger safety.

Sec. 24403. Project management oversight

  (a) Project Management Plan Requirements.--To receive Federal 
financial assistance for a major capital project under this 
chapter, 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 
        periodically a project budget and project schedule to 
        the Secretary.
  (b) Secretarial Oversight.--
          (1) The Secretary may use no more than 1 percent of 
        amounts made available in a fiscal year for capital 
        projects under this chapter to enter into contracts [to 
        oversee the construction of such projects.] for 
        activities to award and oversee the implementation 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 chapter shall provide the Secretary and a 
contractor the Secretary chooses under subsection (b) of this 
section with access to the construction sites and records of 
the recipient when reasonably necessary.

           *       *       *       *       *       *       *


CHAPTER 247--AMTRAK ROUTE SYSTEM

           *       *       *       *       *       *       *


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. 24709. International transportation

  Amtrak may develop and operate international intercity rail 
passenger transportation between the United States and Canada 
and between the United States and Mexico. [The Secretary of the 
Treasury and the Attorney General,] The Secretary of Homeland 
Security, in cooperation with Amtrak, shall maintain, 
consistent with the effective enforcement of the immigration 
and customs laws, en route customs inspection and immigration 
procedures for international intercity rail passenger 
transportation that will--
          (1) be convenient for passengers; and
          (2) result in the quickest possible international 
        intercity rail passenger transportation.

           *       *       *       *       *       *       *


CHAPTER 249. NORTHEAST CORRIDOR IMPROVEMENT PROGRAM

           *       *       *       *       *       *       *


24905. Northeast Corridor Infrastructure and Operations Advisory 
                    Commission; Safety 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 
        2008, the Secretary of Transportation shall establish a 
        Northeast Corridor Infrastructure and Operations 
        Advisory Commission (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 Amtrak;
                  (B) members representing the Department of 
                Transportation, including 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 
        paragraph (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.
          (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) Statement of Goals and Recommendations.--
          (1) Statement of goals.--The Commission shall develop 
        a statement of goals concerning the future of Northeast 
        Corridor rail infrastructure and operations based on 
        achieving expanded and improved intercity, commuter, 
        and freight rail services operating with greater safety 
        and reliability, reduced travel times, increased 
        frequencies and enhanced intermodal connections 
        designed to address airport and highway congestion, 
        reduce transportation energy consumption, improve air 
        quality, and increase economic development of the 
        Northeast Corridor region.
          (2) Recommendations.--The Commission shall develop 
        recommendations based on the statement developed under 
        this section addressing, as appropriate--
                  (A) short-term and long-term capital 
                investment needs beyond those specified in the 
                state-of-good-repair plan under section 211 of 
                the Passenger Rail Investment and Improvement 
                Act of 2008;
                  (B) future funding requirements for capital 
                improvements and maintenance;
                  (C) operational improvements of intercity 
                passenger rail, commuter rail, and freight rail 
                services;
                  (D) opportunities for additional non-rail 
                uses of the Northeast Corridor;
                  (E) scheduling and dispatching;
                  (F) safety and security enhancements;
                  (G) equipment design;
                  (H) marketing of rail services;
                  (I) future capacity requirements; and
                  (J) potential funding and financing 
                mechanisms for projects of corridor-wide 
                significance.
  (c) Access Costs.--
          (1) Development of formula.--Within 2 years after the 
        date of enactment of the Passenger Rail Investment and 
        Improvement Act of 2008, 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, on the Northeast 
                Corridor main line between Boston, 
                Massachusetts, and Washington, District of 
                Columbia, and the Northeast Corridor branch 
                lines connecting to Harrisburg, Pennsylvania, 
                Springfield, Massachusetts, and Spuyten Duyvil, 
                New York, that use Amtrak facilities or 
                services or that provide such facilities or 
                services to Amtrak that ensures that--
                          (i) there is no cross-subsidization 
                        of commuter rail passenger, intercity 
                        rail passenger, or freight rail 
                        transportation;
                          (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; and
                          (iii) all financial contributions 
                        made by an operator of a service that 
                        benefit an infrastructure owner other 
                        than the operator are considered, 
                        including but not limited to, any 
                        capital infrastructure investments and 
                        in-kind services;
                  (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.--Amtrak and public 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.
          (3) Revisions.--The Commission may make necessary 
        revisions to the formula developed under paragraph (1), 
        including revisions based on Amtrak's financial 
        accounting system developed pursuant to section 203 of 
        the Passenger Rail Investment and Improvement Act of 
        2008.
  (d) Transmission of Statement of Goals and Recommendations.--
The Commission shall transmit to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives--
          (1) the statement of goals developed under subsection 
        (b) within 1 year after the date of enactment of the 
        Passenger Rail Investment and Improvement Act of 2008; 
        and
          (2) the recommendations developed under subsection 
        (b) and the formula and timetable developed under 
        subsection (c)(1) annually.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated to the Commission such sums as may be necessary 
for the period encompassing fiscal years 2009 through 2013 to 
carry out this section.
  (f) Northeast Corridor Safety Committee.--
          (1) In general.--The Secretary shall establish a 
        Northeast Corridor Safety Committee composed of members 
        appointed by the Secretary. The members shall be 
        representatives of--
                  (A) the Department of Transportation, 
                including the Federal Railroad Administration;
                  (B) Amtrak;
                  (C) [freight carriers] freight railroad 
                carriers operating more than 150,000 train 
                miles a year on the main line of the Northeast 
                Corridor;
                  (D) commuter rail agencies;
                  (E) rail passengers;
                  (F) [rail labor;] representatives of 
                nonprofit employee labor organizations 
                reqpresenting railroad employees; and
                  (G) 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 two times per year to 
        consider safety and security 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 the Committee on Transportation 
        and Infrastructure of the House of Representatives and 
        the Committee on Commerce, Science, and Transportation 
        of the Senate on the status of efforts to improve 
        safety and security on the Northeast Corridor main 
        line. The report shall include the safety and security 
        recommendations of the Committee and the comments of 
        the Secretary on those recommendations.

           *       *       *       *       *       *       *


                        PART D--HIGH-SPEED RAIL

CHAPTER 261--HIGH-SPEED RAIL ASSISTANCE

           *       *       *       *       *       *       *


Sec. 26106. High-speed rail corridor development

  (a) In General.--The Secretary of Transportation shall 
establish and implement a high-speed rail corridor development 
program.
  (b) Definitions.--In this section, the following definitions 
apply:
          (1) Applicant.--The term ``applicant'' means a State, 
        a group of States, an Interstate Compact, a public 
        agency established by one or more States and having 
        responsibility for providing high-speed rail service, 
        or Amtrak.
          (2) Corridor.--The term ``corridor'' means a corridor 
        designated by the Secretary pursuant to section 
        104(d)(2) of title 23.
          (3) Capital project.--The term ``capital project'' 
        means a project or program in a State rail plan 
        developed under chapter 227 of this title for 
        acquiring, constructing, improving, or inspecting 
        equipment, track, and track structures, or a facility 
        of use in or for the primary benefit of high-speed 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 high-speed 
        rail service, mitigating environmental impacts, 
        communication and signalization improvements, 
        relocation assistance, acquiring replacement housing 
        sites, and acquiring, constructing, relocating, and 
        rehabilitating replacement housing.
          (4) High-speed rail.--The term ``high-speed rail'' 
        means intercity passenger rail service that is 
        reasonably expected to reach speeds of at least 110 
        miles per hour.
          (5) Intercity passenger rail service.--The term 
        ``intercity passenger rail service'' has the meaning 
        given the term ``intercity rail passenger 
        transportation'' in section 24102 of this title.
          (6) State.--The term ``State'' means any of the 50 
        States or the District of Columbia.
  (c) General Authority.--The Secretary may make grants under 
this section to an applicant to finance capital projects in 
high-speed rail corridors.
  (d) Applications.--Each applicant seeking to receive a grant 
under this section to develop a high-speed rail corridor shall 
submit to the Secretary an application in such form and in 
accordance with such requirements as the Secretary shall 
establish.
  (e) Competitive Grant Selection and Criteria for Grants.--
          (1) In general.--The Secretary shall--
                  (A) establish criteria for selecting among 
                projects that meet the criteria specified in 
                paragraph (2);
                  (B) conduct a national solicitation for 
                applications; and
                  (C) award grants on a competitive basis.
          (2) Grant criteria.--The Secretary, in selecting the 
        recipients of high-speed rail development grants to be 
        provided under subsection (c), shall--
                  (A) require--
                          (i) that the project be part of a 
                        State rail plan developed under chapter 
                        227 of this title, or under the plan 
                        required by section 211 of the 
                        Passenger Rail Investment and 
                        Improvement Act of 2008;
                          (ii) 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;
                          (iii) that the project be based on 
                        the results of preliminary engineering 
                        studies or other planning, including 
                        corridor planning activities funded 
                        under section 26101 of this title;
                          (iv) that the applicant provides 
                        sufficient information upon which the 
                        Secretary can make the findings 
                        required by this subsection;
                          (v) that if an applicant has selected 
                        the proposed operator of its service, 
                        that the applicant provide written 
                        justification to the Secretary showing 
                        why the proposed operator is the best, 
                        taking into account costs and other 
                        factors;
                          (vi) that each proposed project meet 
                        all safety and security requirements 
                        that are applicable to the project 
                        under law; and
                          (vii) that each project be compatible 
                        with, and operated in conformance 
                        with--
                                  (I) plans developed pursuant 
                                to the requirements of section 
                                135 of title 23; and
                                  (II) the national rail plan 
                                (if it is available);
                  (B) select high-speed rail projects--
                          (i) that are anticipated to result in 
                        significant improvements to intercity 
                        rail passenger service, including, but 
                        not limited to, consideration of the 
                        project's--
                                  (I) 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 207 of the Passenger 
                                Rail Investment and Improvement 
                                Act of 2008;
                                  (II) anticipated favorable 
                                impact on air or highway 
                                traffic congestion, capacity, 
                                or safety; and
                          (ii) for which there is a high degree 
                        of confidence that the proposed project 
                        is feasible and will result in the 
                        anticipated benefits, as indicated by--
                                  (I) the project's 
                                precommencement compliance with 
                                environmental protection 
                                requirements;
                                  (II) the readiness of the 
                                project to be commenced;
                                  (III) the commitment of any 
                                affected host rail carrier to 
                                ensure the realization of the 
                                anticipated benefits; and
                                  (IV) other relevant factors 
                                as determined by the Secretary;
                          (iii) for which the level of the 
                        anticipated benefits compares favorably 
                        to the amount of Federal funding 
                        requested under this section; and
                  (C) give greater consideration to projects--
                          (i) that are anticipated to result in 
                        benefits to other modes of 
                        transportation and to the public at 
                        large, including, but not limited to, 
                        consideration of the project's--
                                  (I) encouragement of 
                                intermodal connectivity through 
                                provision of direct connections 
                                between train stations, 
                                airports, bus terminals, subway 
                                stations, ferry ports, and 
                                other modes of transportation;
                                  (II) anticipated improvement 
                                of conventional intercity 
                                passenger, freight, or commuter 
                                rail operations;
                                  (III) use of positive train 
                                control technologies;
                                  (IV) environmental benefits, 
                                including projects that involve 
                                the purchase of environmentally 
                                sensitive, fuel-efficient, and 
                                cost-effective passenger rail 
                                equipment;
                                  (V) anticipated positive 
                                economic and employment 
                                impacts;
                                  (VI) encouragement of State 
                                and private contributions 
                                toward station development, 
                                energy and environmental 
                                efficiency, and economic 
                                benefits; and
                                  (VII) falling under the 
                                description in section 
                                5302(a)(1)(G) of this title as 
                                defined to support intercity 
                                passenger rail service; and
                          (ii) that incorporate equitable 
                        financial participation in the 
                        project's financing, including, but not 
                        limited to, consideration of--
                                  (I) donated property 
                                interests or services;
                                  (II) financial contributions 
                                by intercity passenger, 
                                freight, and commuter rail 
                                carriers commensurate with the 
                                benefit expected to their 
                                operations; and
                                  (III) financial commitments 
                                from host railroads, non-
                                Federal governmental entities, 
                                non-governmental entities, and 
                                others.
          (3) Grant conditions.--The Secretary shall require 
        each recipient of a grant under this chapter to comply 
        with the grant requirements of section 24405 of this 
        title.
          (4) State rail plans.--State rail plans completed 
        before the date of enactment of the Passenger Rail 
        Investment and Improvement Act of 2008 that 
        substantially meet the requirements of chapter 227 of 
        this title, as determined by the Secretary pursuant to 
        section [22506] 22706 of this title, shall be deemed by 
        the Secretary to have met the requirements of paragraph 
        (2)(A)(i) of this subsection.
  (f) Federal Share.--The Federal share of the cost of a 
project financed under this section shall not exceed 80 percent 
of the project net capital cost.
  (g) Issuance of Regulations.--Within 1 year after the date of 
enactment of this section, the Secretary shall issue 
regulations to carry out this section.
  (h) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary to carry out this section--
          (1) $150,000,000 for fiscal year 2009;
          (2) $300,000,000 for fiscal year 2010;
          (3) $350,000,000 for fiscal year 2011;
          (4) $350,000,000 for fiscal year 2012; and
          (5) $350,000,000 for fiscal year 2013.

       RAILROAD REVITALIZATION AND REGULATORY REFORM ACT OF 1976

SEC. 502. DIRECT LOANS AND LOAN GUARANTEES

                            [45 U.S.C. 822]

  (a) General Authority.--The Secretary shall provide direct 
loans and loan guarantees to--
          (1) State and local governments;
          (2) interstate compacts consented to by Congress 
        under section 410(a) of the Amtrak Reform and 
        Accountability Act of 1997 (49 U.S.C. 24101 note);
          (3) government sponsored authorities and 
        corporations;
          (4) railroads;
          (5) joint ventures that include at least one 
        railroad; and
          (6) solely for the purpose of constructing a rail 
        connection between a plant or facility and a second 
        rail carrier, limited option rail freight shippers that 
        own or operate a plant or other facility that is served 
        by no more than a single railroad.
  (b) Eligible Purposes.--
          (1) In general.--Direct loans and loan guarantees 
        under this section shall be used to--
                  (A) acquire, improve, or rehabilitate 
                intermodal or rail equipment or facilities, 
                including track, components of track, bridges, 
                yards, buildings, and shops;
                  (B) refinance outstanding debt incurred for 
                the purposes described in subparagraph (A); 
                [or]
                  (C) develop or establish new intermodal or 
                railroad [facilities.] facilities; or
                  (D) provide financial assistance to purchase 
                or lease a rail line subject to terms 
                established by the Surface Transportation Board 
                under section 11708(d) of title 49, United 
                States Code.
          (2) Operating expenses not eligible.--Direct loans 
        and loan guarantees under this section shall not be 
        used for railroad operating expenses.
  (c) Priority Projects.--In granting applications for direct 
loans or guaranteed loans under this section, the Secretary 
shall give priority to projects that--
          (1) enhance public safety;
          (2) enhance the environment;
          (3) promote economic development;
          (4) enable United States companies to be more 
        competitive in international markets;
          (5) are endorsed by the plans prepared under section 
        135 of title 23, United States Code, by the State or 
        States in which they are located;
          (6) preserve or enhance rail or intermodal service to 
        small communities or rural areas;
          (7) enhance service and capacity in the national rail 
        system; or
          (8) would materially alleviate rail capacity problems 
        which degrade the provision of service to shippers and 
        would fulfill a need in the national transportation 
        system.
  (d) Extent of Authority.--The aggregate unpaid principal 
amounts of obligations under direct loans and loan guarantees 
made under this section shall not exceed $35,000,000,000 at any 
one time. Of this amount, not less than $7,000,000,000 shall be 
available solely for projects primarily benefiting freight 
railroads other than Class I carriers. The Secretary shall not 
establish any limit on the proportion of the unused amount 
authorized under this subsection that may be used for 1 loan or 
loan guarantee.
  (e) Rates of Interest.--
          (1) Direct loans.--The Secretary shall require 
        interest to be paid on a direct loan made under this 
        section at a rate not less than that necessary to 
        recover the cost of making the loan.
          (2) Loan guarantees.--The Secretary shall not make a 
        loan guarantee under this section if the interest rate 
        for the loan exceeds that which the Secretary 
        determines to be reasonable, taking into consideration 
        the prevailing interest rates and customary fees 
        incurred under similar obligations in the private 
        capital market.
          (3) Interest rate reduction.--Subject to the 
        availability of funds authorized by subsection (k), the 
        Secretary may reduce the interest to be paid on direct 
        loans provided to a Class II or Class III rail carrier 
        for the purpose of subsection (b)(1)(D).
  (f) Infrastructure Partners.--
          (1) Authority of Secretary.--In lieu of or in 
        combination with appropriations of budget authority to 
        cover the costs of direct loans and loan guarantees as 
        required under section 504(b)(1) of the Federal Credit 
        Reform Act of 1990, the Secretary may accept on behalf 
        of an applicant for assistance under this section a 
        commitment from a non-Federal source to fund in whole 
        or in part credit risk or private insurance, including 
        bond insurance, premiums with respect to the loan that 
        is the subject of the application. In no event shall 
        the aggregate of appropriations of budget authority and 
        credit risk or insurance, including bond insurance, 
        premiums described in this paragraph with respect to a 
        direct loan or loan guarantee be less than the cost of 
        that direct loan or loan guarantee.
          (2) Credit risk premium amount.--The Secretary shall 
        determine the amount required for credit risk premiums 
        under this subsection on the basis of--
                  (A) the circumstances of the applicant, 
                including the amount of collateral offered, if 
                any;
                  (B) the proposed schedule of loan 
                disbursements;
                  (C) historical data on the repayment history 
                of similar borrowers;
                  (D) consultation with the Congressional 
                Budget Office;
                  (E) the size and characteristics of the 
                cohort of which the loan or loan guarantee is a 
                member; and
                  (F) any other factors the Secretary considers 
                relevant.
          (3) Payment of premiums.--Credit risk premiums under 
        this subsection shall be paid to the Secretary before 
        the disbursement of loan [amounts.] amounts or, at the 
        discretion of the Secretary, in a series of payments 
        over the term of the loan. If insurance, including bond 
        insurance, is used, the policy premium shall be paid 
        before the loan is disbursed.
          (4) Cohorts of loans.--In order to maintain 
        sufficient balances of credit risk premiums to 
        adequately protect the Federal Government from risk of 
        default, while minimizing the length of time the 
        Government retains possession of those balances, the 
        Secretary shall establish cohorts of loans. When all 
        obligations attached to a cohort of loans have been 
        satisfied, credit risk premiums paid for the cohort, 
        and interest accrued thereon, which were not used to 
        mitigate losses shall be returned to the original 
        source on a pro rata basis. A cohort may include loans 
        and loan guarantees. The Secretary shall not establish 
        any limit on the proportion of a cohort that may be 
        used for 1 loan or loan guarantee.
  (g) Prerequisites for Assistance.--The Secretary shall not 
make a direct loan or loan guarantee under this section unless 
the Secretary has made a finding in writing that--
          (1) repayment of the obligation is required to be 
        made within a term of not more than 35 years from the 
        date of its execution;
          (2) the direct loan or loan guarantee is justified by 
        the present and probable future demand for rail 
        services or intermodal facilities;
          (3) the applicant has given reasonable assurances 
        that the facilities or equipment to be acquired, 
        rehabilitated, improved, developed, or established with 
        the proceeds of the obligation will be economically and 
        efficiently utilized;
          (4) the obligation can reasonably be repaid, using an 
        appropriate combination of credit risk premiums and 
        collateral offered by the applicant to protect the 
        Federal Government; and
          (5) the purposes of the direct loan or loan guarantee 
        are consistent with subsection (b).
  (h) Conditions of Assistance.--
          (1) The Secretary shall, before granting assistance 
        under this section, require the applicant to agree to 
        such terms and conditions as are sufficient, in the 
        judgment of the Secretary, to ensure that, as long as 
        any principal or interest is due and payable on such 
        obligation, the applicant, and any railroad or railroad 
        partner for whose benefit the assistance is intended--
                  (A) will not use any funds or assets from 
                railroad or intermodal operations for purposes 
                not related to such operations, if such use 
                would impair the ability of the applicant, 
                railroad, or railroad partner to provide rail 
                or intermodal services in an efficient and 
                economic manner, or would adversely affect the 
                ability of the applicant, railroad, or railroad 
                partner to perform any obligation entered into 
                by the applicant under this section;
                  (B) will, consistent with its capital 
                resources, maintain its capital program, 
                equipment, facilities, and operations on a 
                continuing basis; and
                  (C) will not make any discretionary dividend 
                payments that unreasonably conflict with the 
                purposes stated in subsection (b).
          (2) The Secretary shall not require an applicant for 
        a direct loan or loan guarantee under this section to 
        provide collateral. Any collateral provided or 
        thereafter enhanced shall be valued as a going concern 
        after giving effect to the present value of 
        improvements contemplated by the completion and 
        operation of the project. The Secretary shall not 
        require that an applicant for a direct loan or loan 
        guarantee under this section have previously sought the 
        financial assistance requested from another source.
          (3) The Secretary shall require recipients of direct 
        loans or loan guarantees under this section to comply 
        with--
                  (A) the standards of section 24312 of title 
                49, United States Code, as in effect on 
                September 1, 2002, with respect to the project 
                in the same manner that the National Railroad 
                Passenger Corporation is required to comply 
                with such standards for construction work 
                financed under an agreement made under section 
                24308(a) of that title; and
                  (B) the protective arrangements established 
                under section 504 of this Act, with respect to 
                employees affected by actions taken in 
                connection with the project to be financed by 
                the loan or loan guarantee.
  (i) Time Limit for Approval or Disapproval.--Not later than 
90 days after receiving a complete application for a direct 
loan or loan guarantee under this section, the Secretary shall 
approve or disapprove the application.
  (j) Repayment Schedules.--
          (1) In general.--The Secretary shall establish a 
        repayment schedule requiring payments to commence not 
        later than the sixth anniversary date of the original 
        loan disbursement.
          (2) Accrual.--Interest shall accrue as of the date of 
        disbursement, and shall be amortized over the remaining 
        term of the loan beginning at the time the payments 
        begin.
  (k) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary for purposes of carrying out 
subsection (e)(3) such funds as may be necessary for fiscal 
years 2010 through 2014.

                  RAIL SAFETY IMPROVEMENT ACT OF 2008

SEC. 2. DEFINITIONS.

                         [49 U.S.C. 20102 note]

  (a) In General.--In this division:
          (1) Crossing.--The term ``crossing'' means a location 
        within a State, other than a location where one or more 
        railroad tracks cross one or more railroad tracks at 
        [grade] grade, where--
                  (A) a public highway, road, or street, or a 
                private roadway, including associated sidewalks 
                and pathways, crosses one or more railroad 
                tracks either at grade or grade-separated; or
                  (B) a pathway explicitly authorized by a 
                public authority or a railroad carrier that is 
                dedicated for the use of nonvehicular traffic, 
                including pedestrians, bicyclists, and others, 
                that is not associated with a public highway, 
                road, or street, or a private roadway, crosses 
                one or more railroad tracks either at grade or 
                grade-separated.
          (2) Department.--The term ``Department'' means the 
        Department of Transportation.
          (3) Railroad.--The term ``railroad'' has the meaning 
        given that term by section 20102 of title 49, United 
        States Code.
          (4) Railroad carrier.--The term ``railroad carrier'' 
        has the meaning given that term by section 20102 of 
        title 49, United States Code.
          (5) Secretary.--The term ``Secretary'' means the 
        Secretary of Transportation.
          (6) State.--The term ``State'' means a State of the 
        United States, the District of Columbia, or the 
        Commonwealth of Puerto Rico.
  (b) [Executed]

SEC. 102. RAILROAD SAFETY STRATEGY.

                         [49 U.S.C. 20101 note]

  (a) Safety Goals.--In conjunction with existing federally-
required and voluntary strategic planning efforts ongoing at 
the Department and the Federal Railroad Administration as of 
the date of enactment of this Act, the Secretary shall develop 
a long-term strategy for improving railroad safety to cover a 
period of not less than 5 years. The strategy shall include an 
annual plan and schedule for achieving, at a minimum, the 
following goals:
          (1) Reducing the number and rates of accidents, 
        incidents, injuries, and fatalities involving railroads 
        including train collisions, derailments, and human 
        factors.
          (2) Improving the consistency and effectiveness of 
        enforcement and compliance programs.
          (3) Improving the identification of high-risk 
        highway-rail grade crossings and strengthening 
        enforcement and other methods to increase grade 
        crossing safety.
          (4) Improving research efforts to enhance and promote 
        railroad safety and performance.
          (5) Preventing railroad trespasser accidents, 
        incidents, injuries, and fatalities.
          [(6) Improving the safety of railroad bridges, 
        tunnels, and related infrastructure to prevent 
        accidents, incidents, injuries, and fatalities caused 
        by catastrophic failures and other bridge and tunnel 
        failures.]
          (6) Improving the safety of railroad bridges, 
        tunnels, and related infrastructure to prevent 
        accidents, incidents, injuries, and fatalities caused 
        by catastrophic and other failures of such 
        infrastructure.''.
  (b) Resource Needs.--The strategy and annual plan shall 
include estimates of the funds and staff resources needed to 
accomplish the goals established by subsection (a). Such 
estimates shall also include the staff skills and training 
required for timely and effective accomplishment of each such 
goal.
  (c) Submission With the President's Budget.--The Secretary 
shall submit the strategy and annual plan to the Senate 
Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Transportation and 
Infrastructure at the same time as the President's budget 
submission.
  (d) Achievement of Goals.--
          (1) Progress assessment.--Not less frequently than 
        annually, the Secretary shall assess the progress of 
        the Department toward achieving the strategic goals 
        described in subsection (a). The Secretary shall 
        identify any deficiencies in achieving the goals within 
        the strategy and develop and institute measures to 
        remediate such deficiencies. The Secretary and the 
        Administrator shall convey their assessment to the 
        employees of the Federal Railroad Administration and 
        shall identify any deficiencies that should be 
        remediated before the next progress assessment.
          (2) Report to congress.--Beginning in 2009, not later 
        than November 1 of each year, the Secretary shall 
        transmit a report to the Senate Committee on Commerce, 
        Science, and Transportation and the House of 
        Representatives Committee on Transportation and 
        Infrastructure on the performance of the Federal 
        Railroad Administration containing the progress 
        assessment required by paragraph (1) toward achieving 
        the goals of the railroad safety strategy and annual 
        plans under subsection (a).

SEC. 108. HOURS-OF-SERVICE REFORM.

                         [49 U.S.C. 21101 note]

  (a) Change in Defintiion of Signal Employee.--[Executed]
  (b) Limitation on Duty Hours of Train Employees.--[Executed]
  (c) Limitation on Duty Hours of Signal Employees.--[Executed]
  (d) Alternate Hours of Service Regime.--[Executed]
  (e) Regulatory Authority.--[Executed]
  (f) Record Keeping and Reporting.--
          (1) Regulations.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall 
        prescribe a regulation revising the [requirements for 
        recordkeeping and reporting for Hours of Service of 
        Railroad Employees] requirements for record keeping and 
        reporting for hours of service of railroad employees 
        contained in part 228 of title 49, Code of Federal 
        Regulations--
                  (A) to adjust record keeping and reporting 
                requirements to support compliance with chapter 
                211 of title 49, United States Code, as amended 
                by this Act;
                  (B) to authorize electronic record keeping, 
                and reporting of excess service, consistent 
                with appropriate considerations for user 
                interface; and
                  (C) to require training of affected employees 
                and supervisors, including training of 
                employees in the entry of hours of service 
                data.
          (2) Procedure.--In lieu of issuing a notice of 
        proposed rulemaking as contemplated by section 553 of 
        title 5, United States Code, the Secretary may utilize 
        the Railroad Safety Advisory Committee to assist in 
        development of the regulation. The Secretary may 
        propose and adopt amendments to the revised regulations 
        thereafter as may be necessary in light of experience 
        under the revised requirements.
  (g) Delay.--Delay in Implementation of Duty Hours Limitation 
Changes.--The amendments made by subsections (a), (b), and (c) 
shall take effect 9 months after the date of enactment of this 
Act.

[SEC. 201. PEDESTRIAN CROSSING SAFETY.]

SEC. 201. PEDESTRIAN SAFETY AT OR NEAR RAILROAD PASSENGER STATIONS.

                         [49 U.S.C. 20134 note]

  Not later than 1 year after the date of enactment of this 
Act, the Secretary shall provide guidance to railroads on 
[strategies and methods to prevent pedestrian accidents, 
incidents, injuries, and fatalities at or near passenger 
stations, including--] strategies and methods to prevent train-
related accidents, incidents, injuries, and fatalities that 
involve a pedestrian at or near a railroad passenger station, 
including--
          (1) providing audible warning of approaching trains 
        to the pedestrians [at railroad passenger stations];
          (2) using signs, signals, or other visual devices to 
        warn pedestrians of approaching trains;
          (3) installing infrastructure at pedestrian crossings 
        to improve the safety of pedestrians crossing railroad 
        tracks;
          (4) installing fences to prohibit access to railroad 
        tracks; and
          (5) other strategies or methods as determined by the 
        Secretary.

SEC. 206. OPERATION LIFESAVER.

                         [49 U.S.C. 22501 note]

  (a) Grant.--The Federal Railroad Administration shall make a 
grant or grants to Operation Lifesaver to carry out a public 
information and education program to help prevent and reduce 
pedestrian, motor vehicle, and other accidents, incidents, 
injuries, and fatalities, and to improve awareness along 
railroad rights-of-way and at highway-rail grade crossings. The 
program shall include, as appropriate, development, placement, 
and dissemination of [Public Service Announcements] public 
service announcements in newspaper, radio, television, and 
other media. The program shall also include, as appropriate, 
school presentations, brochures and materials, support for 
public awareness campaigns, and related support for the 
activities of Operation Lifesaver's member organizations. As 
part of an educational program funded by grants awarded under 
this section, Operation Lifesaver shall provide information to 
the public on how to identify and report to the appropriate 
authorities unsafe or malfunctioning highway-rail grade 
crossings.
  (b) Pilot Program.--The Secretary may allow funds provided 
under subsection (a) also to be used by Operation Lifesaver to 
implement a pilot program, to be known as the Railroad Safety 
Public Awareness Program, that addresses the need for targeted 
and sustained community outreach on the subjects described in 
subsection (a). Such a pilot program shall be established in 1 
or more States identified under section 202 of this division. 
In carrying out such a pilot program Operation Lifesaver shall 
work with the State, community leaders, school districts, and 
public and private partners to identify the communities at 
greatest risk, to develop appropriate measures to reduce such 
risks, and shall coordinate the pilot program with the State 
grade crossing action plan.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to the Federal Railroad Administration for 
carrying out this section--
          (1) $2,000,000 for each of fiscal years 2010 and 
        2011; and
          (2) $1,500,000 for each of fiscal years 2012 and 
        2013.

[SEC. 403. TRACK INSPECTION TIME STUDY.]

SEC. 403. STUDY AND RULEMAKING ON TRACK INSPECTION TIME; RULEMAKING ON 
                    CONCRETE CROSSTIES.

                         [49 U.S.C. 20142 note]

  (a) Study.--Not later that 2 years after the date of 
enactment of this Act, the Secretary shall transmit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report containing the results of 
a study to determine whether--
          (1) the required intervals of track inspections for 
        each class of track should be amended;
          (2) track remedial action requirements should be 
        amended;
          (3) different track inspection and repair priorities 
        or methods should be required; and
          (4) the speed at which railroad track inspection 
        vehicles operate and the scope of the territory they 
        generally cover allow for proper inspection of the 
        track and whether such speed and appropriate scope 
        should be regulated by the Secretary.
  (b) Considerations.--In conducting the study the Secretary 
shall consider--
          (1) the most current rail flaw, rail defect growth, 
        rail fatigue, and other relevant track- or rail-related 
        research and studies;
          (2) the availability and feasibility of developing 
        and implementing new or novel rail inspection 
        technology for routine track inspections;
          (3) information from National Transportation Safety 
        Board or Federal Railroad Administration accident 
        investigations where track defects were the cause or a 
        contributing cause; and
          (4) other relevant information, as determined by the 
        Secretary.
  (c) Update of Regulations.--Not later than 2 years after the 
completion of the study required by subsection (a), the 
Secretary shall prescribe regulations based on the results of 
the study conducted under subsection (a).
  (d) Concrete [Cross Ties] Crossties._Not later than 18 months 
after the date of enactment of this Act, the Secretary shall 
promulgate regulations for concrete [cross ties.] crossties. In 
developing the regulations for class 1 through 5 track, the 
Secretary may address, as appropriate--
          (1) limits for rail seat abrasion;
          (2) concrete [cross tie] crosstie pad wear limits;
          (3) missing or broken rail fasteners;
          (4) loss of appropriate toeload pressure;
          (5) improper fastener configurations; and
          (6) excessive lateral rail movement.

SEC. 405. LOCOMOTIVE CAB STUDIES.

                         [49 U.S.C. 20103 note]

  (a) In General.--Not later than 1 year after the date of 
enactment of this Act, the Secretary, through the Railroad 
Safety Advisory Committee if the Secretary makes such a 
request, shall complete a study on the safety impact of the use 
of personal electronic devices, including [cell phones,] 
cellular telephones, video games, and other distracting 
devices, by safety-related railroad employees (as defined in 
section 20102(4) of title 49, United States Code), during the 
performance of such employees' duties. The study shall consider 
the prevalence of the use of such devices.
  (b) Locomotive Cab Environment.--The Secretary may also study 
other elements of the locomotive cab environment and their 
effect on an employee's health and safety.
  (c) Report.--Not later than 6 months after the completion of 
any study under this section, the Secretary shall issue a 
report on the study to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure.
  (d) Authority.--Based on the conclusions of the study 
required under (a), the Secretary [of Transportation] may 
prohibit the use of personal electronic devices, such as cell 
phones, video games, or other electronic devices that may 
distract employees from safely performing their duties, unless 
those devices are being used according to railroad operating 
rules or for other work purposes. Based on the conclusions of 
other studies conducted under subsection (b), the Secretary may 
prescribe regulations to improve elements of the cab 
environment to protect an employee's health and safety.

SEC. 411. RAILROAD CARRIER EMPLOYEE EXPOSURE TO RADIATION STUDY.

                         [49 U.S.C. 5103 note]

  (a) Study.--The Secretary of Transportation shall, in 
consultation with the Secretary of Energy, the Secretary of 
Labor, the Administrator of the Environmental Protection 
Agency, and the Chairman of the Nuclear Regulatory Commission, 
as appropriate, conduct a study of the potential hazards to 
which employees of railroad carriers and railroad contractors 
or subcontractors are exposed during the transportation of 
high-level radioactive waste and spent nuclear fuel (as defined 
in section [5101(a)] 5105(a) of title 49, United States Code), 
supplementing the report submitted under section [5101(b)] 
5105(b) of that title, which may include--
          (1) an analysis of the potential application of ``as 
        low as reasonably achievable'' principles for exposure 
        to radiation to such employees with an emphasis on the 
        need for special protection from radiation exposure for 
        such employees during the first trimester of pregnancy 
        or who are undergoing or have recently undergone 
        radiation therapy;
          (2) the feasibility of requiring real-time dosimetry 
        monitoring for such employees;
          (3) the feasibility of requiring routine radiation 
        exposure monitoring in fixed railroad locations, such 
        as yards and repair facilities; and
          (4) a review of the effectiveness of the Department's 
        packaging requirements for radioactive materials.
  (b) Report.--Not later than 18 months after the date of 
enactment of this Act, the Secretary of Transportation shall 
transmit a report on the results of the study required by 
subsection (a) and any recommendations to further protect 
employees of a railroad carrier or of a contractor or 
subcontractor to a railroad carrier from unsafe exposure to 
radiation during the transportation of high-level radioactive 
waste and spent nuclear fuel to the Senate Committee on 
Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure.
  (c) Regulatory Authority.--The Secretary of Transportation 
may issue regulations that the Secretary determines 
appropriate, pursuant to the report required by subsection (b), 
to protect railroad employees from unsafe exposure to radiation 
during the transportation of radioactive materials.

SEC. 412. ALCOHOL AND CONTROLLED SUBSTANCE TESTING FOR MAINTENANCE-OF-
                    WAY EMPLOYEES.

                         [49 U.S.C. 20140 note]

  Not later than 2 years following the date of enactment of 
this Act, the Secretary [of Transportation] shall complete a 
rulemaking proceeding to revise the regulations prescribed 
under section 20140 of title 49, United States Code, to cover 
all employees of railroad carriers and contractors or 
subcontractors to railroad carriers who perform maintenance-of-
way activities.

SEC. 414. TUNNEL INFORMATION.

                         [49 U.S.C. 20103 note]

  Not later than 120 days after the date of enactment of this 
Act, each railroad carrier shall, with respect to each of its 
tunnels which--
          (1) are longer than 1000 feet and located under a 
        city with a population of 400,000 or greater; or
          (2) carry 5 or more scheduled passenger trains per 
        day, or 500 or more carloads of poison- or toxic-by-
        inhalation hazardous materials (as defined in [parts] 
        171.8, 173.115, sections 171.8, 173.115, and 173.132 of 
        title 49, Code of Federal Regulations) per year,
maintain, for at least two years, historical documentation of 
structural inspection and maintenance activities for such 
tunnels, including information on the methods of ingress and 
egress into and out of the tunnel, the types of cargos 
typically transported through the tunnel, and schematics or 
blueprints for the tunnel, when available. Upon request, a 
railroad carrier shall provide periodic briefings on such 
information to the governments of the local jurisdiction in 
which the tunnel is located, including updates whenever a 
repair or rehabilitation project substantially alters the 
methods of ingress and egress. Such governments shall use 
appropriate means to protect and restrict the distribution of 
any security sensitive information (as defined in [part 1520.5] 
section 1520.5 of title 49, Code of Federal Regulations) 
provided by the railroad carrier under this section, consistent 
with national security interests.

SEC. 416. SAFETY INSPECTIONS IN MEXICO.

                         [49 U.S.C. 20107 note]

  Mechanical and brake inspections of rail cars performed in 
Mexico shall not be treated as satisfying United States rail 
safety laws or regulations unless the Secretary [of 
Transportation] certifies that--
          (1) such inspections are being performed under 
        regulations and standards equivalent to those 
        applicable in the United States;
          (2) the inspections are being performed by employees 
        that have received training similar to the training 
        received by similar railroad employees in the United 
        States;
          (3) inspection records that are required to be 
        available to the crewmembers on board the train, 
        including air slips and blue cards, are maintained in 
        both English and Spanish, and such records are 
        available to the [Federal Railroad Administration] 
        Secretary for review; and
          (4) the [Federal Railroad Administration] Secretary 
        is permitted to perform onsite inspections for the 
        purpose of ensuring compliance with the requirements of 
        this subsection.

SEC. 417. RAILROAD BRIDGE SAFETY ASSURANCE.

                         [49 U.S.C. 20103 note]

  (a) In General.--Not later than 12 months after the date of 
enactment of this Act, the Secretary shall promulgate a 
regulation requiring owners of track carried on one or more 
railroad bridges to adopt a bridge safety management program to 
prevent the deterioration of railroad bridges and reduce the 
risk of human casualties, environmental damage, and disruption 
to the Nation's railroad transportation system that would 
result from a catastrophic bridge failure.
  (b) Requirements.--The regulations shall, at a minimum, 
require each track owner to--
          (1) to develop and maintain an accurate inventory of 
        its railroad bridges, which shall identify the location 
        of each bridge, its configuration, type of 
        construction, number of spans, span lengths, and all 
        other information necessary to provide for the safe 
        management of the bridges;
          (2) to ensure that a professional engineer competent 
        in the field of railroad bridge engineering, or a 
        qualified person under the supervision of the track 
        owner, determines bridge capacity;
          (3) to maintain, and update as appropriate, a record 
        of the safe capacity of each bridge which carries its 
        track and, if available, maintain the original design 
        documents of each bridge and a documentation of all 
        repairs, modifications, and inspections of the bridge;
          (4) to develop, maintain, and enforce a written 
        procedure that will ensure that its bridges are not 
        loaded beyond their capacities;
          (5) to conduct regular comprehensive inspections of 
        each bridge, at least once every year, and maintain 
        records of those inspections that include the date on 
        which the inspection was performed, the precise 
        identification of the bridge inspected, the items 
        inspected, an accurate description of the condition of 
        those items, and a narrative of any inspection item 
        that is found by the inspector to be a potential 
        problem;
          (6) to ensure that the level of detail and the 
        inspection procedures are appropriate to the 
        configuration of the bridge, conditions found during 
        previous inspections, and the nature of the railroad 
        traffic moved over the bridge, including car weights, 
        train frequency and length, levels of passenger and 
        hazardous materials traffic, and vulnerability of the 
        bridge to damage;
          (7) to ensure that an engineer who is competent in 
        the field of railroad bridge engineering--
                  (A) is responsible for the development of all 
                inspection procedures;
                  (B) reviews all inspection reports; and
                  (C) determines whether bridges are being 
                inspected according to the applicable 
                procedures and frequency, and reviews any items 
                noted by an inspector as exceptions; and
          (8) to designate qualified bridge inspectors or 
        maintenance personnel to authorize the operation of 
        trains on bridges following repairs, damage, or 
        indications of potential structural problems.
  (c) Use of Bridge Management Programs Required.--The 
Secretary shall instruct bridge experts to obtain copies of the 
most recent bridge management programs of [each railroad] each 
railroad carrier within the expert's areas of responsibility, 
and require that experts use those programs when conducting 
bridge observations.
  (d) Review of Data.--The Secretary shall establish a program 
to periodically review bridge inspection and maintenance data 
from railroad carrier bridge inspectors and Federal Railroad 
Administration bridge experts.

SEC. 503. ESTABLISHMENT OF TASK FORCE.

                         [49 U.S.C. 1139 note]

  (a) Establishment.--The Secretary, in cooperation with the 
National Transportation Safety Board, organizations potentially 
designated under section 1139(a)(2) of title 49, United States 
Code, rail passenger carriers (as defined in section 1139(h)(2) 
of title 49, United States Code), and families which have been 
involved in [rail accidents,] rail passenger accidents, shall 
establish a task force consisting of representatives of such 
entities and families, representatives of rail passenger 
carrier employees, and representatives of such other entities 
as the Secretary considers appropriate.
  (b) Model Plan and Recommendations.--The task force 
established pursuant to subsection (a) shall develop--
          (1) a model plan to assist rail passenger carriers in 
        responding to passenger rail accidents;
          (2) recommendations on methods to improve the 
        timeliness of the notification provided by passenger 
        rail carriers to the families of passengers involved in 
        a passenger rail accident;
          (3) recommendations on methods to ensure that the 
        families of passengers involved in a passenger rail 
        accident who are not citizens of the United States 
        receive appropriate assistance; and
          (4) recommendations on methods to ensure that 
        emergency services personnel have as immediate and 
        accurate a count of the number of passengers onboard 
        the train as possible.
  (c) Report.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary shall transmit a report to 
the House of Representatives Committee on Transportation and 
Infrastructure and the Senate Committee on Commerce, Science, 
and Transportation containing the model plan and 
recommendations developed by the task force under subsection 
(b).
  (d) Definitions.--In this section, the terms ``passenger'', 
``rail passenger accident'', and ``rail passenger carrier'' 
have the meaning given those terms by section 1139 of title 49, 
United States Code.
  (e) Funding.--Out of funds appropriated pursuant to section 
20117(a)(1)(A) of title 49, United States Code, there shall be 
made available to the Secretary of Transportation $500,000 for 
fiscal year 2009 to carry out this section. Amounts made 
available pursuant to this subsection shall remain available 
until expended.

         PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2008

SEC. 206. ESTABLISHMENT OF GRANT PROCESS.

                         [49 U.S.C. 24101 note]

  (a) Grant Requests.--Amtrak shall submit grant requests 
(including a schedule for the disbursement of funds), 
consistent with the requirements of this division, to the 
Secretary for funds authorized to be appropriated to the 
Secretary for the use of Amtrak under sections 101(a), (b), and 
(c), 102, 219(b), and 302 of this division.
  (b) Procedures for Grant Requests.--The Secretary shall 
establish substantive and procedural requirements, including 
schedules, for grant requests under this section not later than 
30 days after the date of enactment of this Act and shall 
transmit copies of such requirements and schedules to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate. As part of those requirements, 
the Secretary shall require, at a minimum, that Amtrak deposit 
grant funds, consistent with the appropriated amounts for each 
area of expenditure in a given fiscal year, in the following 2 
accounts:
          (1) The Amtrak Operating account.
          (2) The Amtrak General Capital account.
Amtrak may not transfer such funds to another account or expend 
such funds for any purpose other than the purposes covered by 
the account in which the funds are deposited without approval 
by the Secretary.
  (c) Review and Approval.--
          (1) 30-day approval process.--The Secretary shall 
        complete the review of a grant request (including the 
        disbursement schedule) and approve or disapprove the 
        request within 30 days after the date on which Amtrak 
        submits the grant request. If the Secretary disapproves 
        the request or determines that the request is 
        incomplete or deficient, the Secretary shall include 
        the reason for disapproval or the incomplete items or 
        deficiencies in a notice to Amtrak.
          (2) 15-day modification period.--Within 15 days after 
        receiving notification from the Secretary under the 
        preceding sentence, Amtrak shall submit a modified 
        request for the Secretary's review.
          (3) Revised requests.--Within 15 days after receiving 
        a modified request from Amtrak, the Secretary shall 
        either approve the modified request, or, if the 
        Secretary finds that the request is still incomplete or 
        deficient, the Secretary shall identify in writing to 
        the Committee on Transportation and Infrastructure of 
        the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate the 
        remaining deficiencies and recommend a process for 
        resolving the outstanding portions of the request.

SEC. 211. NORTHEAST CORRIDOR STATE-OF-GOOD-REPAIR PLAN.

                         [49 U.S.C. 24902 note]

  (a) In General.--Within 6 months after the date of enactment 
of this Act, Amtrak, in consultation with the Secretary and the 
States (including the District of Columbia) that make up the 
Northeast Corridor (as defined in section 24102 of title 49, 
United States Code), shall prepare a capital spending plan for 
capital projects required to return the railroad right-of-way 
(including track, signals, and auxiliary structures), 
facilities, stations, and equipment, of the Northeast Corridor 
main line to a state-of-good-repair by the end of fiscal year 
2018, consistent with the funding levels authorized in this 
division, and shall submit the plan to the Secretary.
  (b) Review and Approval by the Secretary.--
          (1) 60-day approval process.--The Secretary shall 
        complete the review of the capital spending plan and 
        approve or disapprove the plan within 60 days after the 
        date on which Amtrak submits the plan. During review, 
        the Secretary may seek comments from the Commission 
        established under section 24905 of title 49, United 
        States Code, and other Northeast Corridor users 
        regarding the plan. If the Secretary disapproves the 
        plan or determines that the plan is incomplete or 
        deficient, the Secretary shall include the reason for 
        disapproval or the incomplete items or deficiencies in 
        a notice to Amtrak.
          (2) 15-day modification period.--Within 15 days after 
        receiving notification from the Secretary under 
        paragraph (1), Amtrak shall submit a modified plan for 
        the Secretary's review.
          (3) Revised requests.--Within 15 days after receiving 
        a modified plan from Amtrak, the Secretary shall either 
        approve the modified plan, or, if the Secretary finds 
        that the plan is still incomplete or deficient, the 
        Secretary shall identify in writing to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation of the Senate the remaining 
        deficiencies and recommend a process for resolving the 
        outstanding portions of the plan.
  (c) Plan Updates.--The plan shall be updated at least 
annually and the Secretary shall review and approve such 
updates, in accordance with the procedures described in 
subsection (b).
  (d) Grants.--The Secretary shall make grants to Amtrak with 
funds authorized by section 101(c) of this division for 
Northeast Corridor capital investments contained within the 
capital spending plan prepared by Amtrak and approved by the 
Secretary.
  (e) Oversight.--Using the funds authorized by section 101(d) 
of this division, the Secretary shall review Amtrak's capital 
expenditures funded by this section to ensure that such 
expenditures are consistent with the capital spending plan and 
that Amtrak is providing adequate project management oversight 
and fiscal controls.
  (f) Eligibility of Expenditures.--The Federal share of 
expenditures for capital improvements under this section may 
not exceed 100 percent.

                                  
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