[Senate Report 109-143]
[From the U.S. Government Publishing Office]
Calendar No. 235
109th Congress
1st Session SENATE Report
109-143
_______________________________________________________________________
PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2005
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 1516
DATE deg.October 18, 2005.--Ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
49-010 WASHINGTON : 2004
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred ninth congress
first session
TED STEVENS, Alaska, Chairman
DANIEL K. INOUYE, Hawaii, Co-Chairman
JOHN McCAIN, Arizona JOHN D. ROCKEFELLER IV, West
CONRAD BURNS, Montana Virginia
TRENT LOTT, Mississippi JOHN F. KERRY, Massachusetts
KAY BAILEY HUTCHISON, Texas BYRON L. DORGAN, North Dakota
OLYMPIA J. SNOWE, Maine BARBARA BOXER, California
GORDON H. SMITH, Oregon BILL NELSON, Florida
JOHN ENSIGN, Nevada MARIA CANTWELL, Washington
GEORGE ALLEN, Virginia FRANK LAUTENBERG, New Jersey
JOHN E. SUNUNU, New Hampshire E. BENJAMIN NELSON, Nebraska
JIM DEMINT, South Carolina MARK PRYOR, Arkansas
DAVID VITTER, Louisiana
Lisa Sutherland, Staff Director
Christine Drager Kurth, Deputy Staff Director
David Russell, Chief Counsel
Margaret Cummisky, Democratic Staff Director and Chief Counsel
Samuel Whitehorn, Democratic Deputy Staff Director and General Counsel
Calendar No. 235
109th Congress Report
SENATE
1st Session 109-143
======================================================================
PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2005
_______
October 18, 2005.--Ordered to be printed
_______
Mr. Stevens, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 1516]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill joint resolution deg. (S.
H.R. deg. 1516) TITLE deg. to reauthorize
Amtrak, and for other purposes, having considered the same,
reports favorably thereon without amendment deg.
with amendments deg. with an amendment (in the nature
of a substitute) and recommends that the bill joint
resolution deg. (as amended) do pass.
Purpose of the Bill
S. 1516, the Passenger Rail Investment and Improvement Act of
2005 (PRIIA) authorizes Federal funding for the operation and
development of intercity passenger rail service; makes
improvements to Federal passenger rail transportation policy
and activities; enhances passenger rail security; and
reauthorizes Amtrak for 6 years.
Background and Needs
The National Railroad Passenger Corporation, known as Amtrak,
was formed as a non-governmental corporation in 1971 through
the enactment of the Rail Passenger Service Act of 1970.
Creation of Amtrak relieved the then-financially beleaguered
private railroad sector of their statutory obligations to offer
intercity passenger transportation and to preserve and
reinvigorate intercity passenger rail service throughout the
nation. Amtrak was established as a for-profit corporation--a
goal the Corporation has never met--and was expected to operate
without Federal support beginning in 1973, despite inheriting
routes and services that were generally unprofitable when
operated by the private railroads immediately preceding
Amtrak's creation. Since its inception, Amtrak has received
more than $29 billion in operating and capital support from the
Federal government, mostly in the form of annual
appropriations.
While intercity passenger rail service patronage steadily
declined for decades in the United States following the second
World War, recent increases in highway and aviation congestion,
rising fuel costs, available rail capacity, and minimal
environmental impacts have all made intercity passenger rail
service a growing and increasingly important part of the
nation's multi-modal transportation system. Today, Amtrak
serves more than 500 stations in 46 States (Amtrak does not
offer rail service in Alaska, Hawaii, South Dakota, or Wyoming)
on over more than 22,000 route miles. Amtrak directly owns 730
route miles, primarily between Massachusetts and Washington,
D.C. on Amtrak's Northeast Corridor (NEC) and in the State of
Michigan, several station facilities including Pennsylvania
Station in New York, New York and Chicago Union Station in
Chicago, Illinois, and several major maintenance and repair
facilities. In addition to infrastructure, Amtrak owns or
leases 425 locomotives, 2,141 railroad cars, and numerous
pieces of maintenance of way equipment, vehicles, and other
associated assets. Outside of the NEC, Amtrak operates over
tracks owned by freight railroads through access rights
provided by law and either owns or contracts for the use of
station facilities.
Amtrak's services can be classified into 4 distinct
categories:
NEC Services.--Three classes of trains (regional,
metroliner, and high-speed Acela Express) offer service between
city pairs along the NEC, serving the densely populated and
congested Northeast. Ridership on these services accounted for
roughly 45 percent of Amtrak's total ridership in 2004;
Long-Distance Services.--Amtrak's long-distance
trains generally travel over 750 miles and connect different
regions of the country, serving both major cities and sparsely-
populated rural areas where other transportation options are
often limited. Ridership on these services accounted for
roughly 16 percent of Amtrak's total ridership in 2004;
Corridor Services.--Amtrak's corridor services
connect intra- or interstate city pairs within 750 miles of
each other. Amtrak generally receives some financial support
from the States for the operational and capital costs of these
services. Ridership on these services accounted for roughly 39
percent of Amtrak's total ridership in 2004;
Commuter Services.--Amtrak is also the nation's
largest provider of contract-commuter service for State and
regional authorities, operating rail commuter service in
California, Maryland, Connecticut, Washington, and Virginia,
and serving an additional 61.1 million people per year.
Since Amtrak's inception, Congress has provided Federal
funding for Amtrak's operational and capital needs, either
directly to Amtrak or through a Department of Transportation
(DOT) grant process, which is currently the case. Federal
funding is provided through the annual appropriations process
from discretionary funds, and can vary significantly from year
to year, depending on overall budget conditions and political
support, as shown below.
FEDERAL CAPITAL AND OPERATING FUNDS FOR AMTRAK:
FY 1997 $0.8 billion
FY 1998 $1.7 billion
FY 1999 $1.7 billion
FY 2000 $0.6 billion
FY 2001 $0.5 billion
FY 2002 $0.8 billion
FY 2003 $1.0 billion
FY 2004 $1.2 billion
FY 2005 $1.2 billion
Amtrak's most recent authorization, the Amtrak Reform and
Accountability Act of 1997 (Reform Act), reauthorized Amtrak
for 5 years totaling $5.3 billion for FYs 1998-2002 and
required Amtrak to achieve operational self-sufficiency
(``operational self-sufficiency'' was defined to mean that
Amtrak's operating costs, excluding depreciation, would not be
funded with Federal funds) by December 2002--a goal which the
Corporation did not meet. During these years, limited Federal
funding, failed Amtrak revenue initiatives, and an
unwillingness by the railroad to exit services perceived as
essential to their public mission led to the failure to
dramatically reduce the corporation's reliance on Federal
operating subsidies as called for by the Reform Act. Therefore,
in order to survive with the available revenues and Federal
monies, Amtrak curtailed or deferred many needed capital
investments and took on large amounts of private debt financing
to fund its basic system needs. Today, Amtrak has over $3
billion in debt, with associated servicing costs averaging $300
million annually. The lack of continuous capital investment in
both rolling stock and infrastructure created a serious problem
of deferred maintenance, primarily on the NEC, which currently
undermines Amtrak's train performance and reliability, and
therefore its revenue potential. During the time of the Reform
Act, Amtrak's subsidy per passenger declined from about $80 in
1998 to about $22 in 2001, but this was due in large part to
Amtrak's heavy borrowing and liquidation of assets to generate
cash, leaving it with a large debt service bill today. In 2002,
the final year of the Reform Act, Amtrak received a Federal
loan and an emergency appropriation to avoid bankruptcy and its
subsidy jumped to nearly $40 per passenger. Increases in the
per passenger subsidy were similarly observed over the next 2
years, reaching nearly $44 in 2003 and $48 in 2004.
Under current management, Amtrak has undertaken significant
efforts to reduce costs, restructure services, rebuild
equipment and return infrastructure to a state-of-good-repair.
Management reforms have led to reduced or stable operating
costs, the termination of unproductive business lines, and
increased ridership. Headcount at the Corporation has dropped
by 3,900 since 2002, while the number of daily trains has risen
from 265 in 2002 to 300 today. Amtrak's ridership grew 4.3
percent in 2004 to a record level of 25.1 million passengers.
Significant challenges and funding needs remain. Amtrak and the
DOT Inspector General (IG) identified roughly $5 billion in
deferred maintenance and capital backlog projects needed to
return the NEC to a state-of-good-repair. On-time performance
across Amtrak's system remains dismally low, and Amtrak's
flagship fleet of high-speed trains, the Acela Express, were
sidelined for several months due to brake problems. Acela
Express trains only recently returned to service. The
Corporation and its operating unions remain deadlocked in
longstanding contract negotiations. Additionally, the
Administration has proposed eliminating all funding for Amtrak,
except for limited funds to be available to continue commuter
rail services on the NEC should Amtrak enter bankruptcy.
Responding to calls for reforms and improved and expanded
service, Amtrak's Board of Directors developed strategic reform
initiatives (Board Plan) in April, 2005 to guide the future
actions of the Corporation. Accompanying this plan was a
request for $1.82 billion in Federal funding to support FY 06
capital investment programs and to support national operations.
The Board Plan sets forth several internal efforts to improve
the railroad while also calling upon Congress to adequately
fund the system and enact changes in statute to facilitate the
achievement of certain goals. The 4 fundamental objectives of
the Board Plan are:
Development of passenger rail corridors utilizing
a Federal/State matching approach common to all other modes
(generally 80/20). States, not Amtrak, would lead the
development of the corridors, a number of which have already
been federally designated, and Amtrak and others may
competitively bid to provide the service;
Return of the NEC infrastructure to a state-of-
good-repair and operational reliability, with phased-in
financial responsibility for capital and operating costs
assumed on a proportionate basis by all users, including
Amtrak, freight and commuter railroads;
Establishment of phased-in financial performance
thresholds for Amtrak's existing 15 long-distance trains and
any future similar proposed service; and
Creation of markets for competition, private
commercial participation and industrial reforms in various rail
functions. This includes competition among operators, including
Amtrak, for new corridor routes.
Summary of Provisions
To address the challenges facing Amtrak and to promote the
expansion and improvement of intercity passenger rail service,
the Passenger Rail Investment and Improvement Act of 2005
(PRIIA) authorizes stable and predictable funding for long-term
investments and improvements to intercity passenger rail
service and sets forth strict guidelines for improvements to
Amtrak's long-distance and corridor routes to reduce Amtrak's
operating subsidy. PRIIA incorporates features from the Board's
Strategic Plan, DOT's reauthorization proposal, recommendations
by the DOT IG, and previous Senate reauthorization proposals.
PRIIA is a 6-year reauthorization bill (FY 2006-2011)--the
same time frame as proposed in the Board Plan. The bill
authorizes funding for Amtrak's capital and operating needs to
maintain current operations, upgrade equipment, and return the
NEC to a state-of-good-repair. Over the life of the bill,
Amtrak's operating subsidy is reduced by 40 percent through
cost cutting, restructuring, and reform while capital funding
to Amtrak and the States for intercity passenger rail projects
is increased.
FUNDING SUMMARY
(dollars in millions)
----------------------------------------------------------------------------------------------------------------
Avg.
2006 2007 2008 2009 2010 2011 Total Annual
----------------------------------------------------------------------------------------------------------------
Amtrak 5-Year Plan Operating Subsidy 580 601 642 683 724 765 3,995 666
Request
----------------------------------------------------------------------------------------------------------------
PRIIA Operating Subsidy Authorizations 580 590 600 575 535 455 3,335 556
----------------------------------------------------------------------------------------------------------------
Capital 788 810 821 821 821 821 4,893 816
----------------------------------------------------------------------------------------------------------------
State Grants 25 100 250 300 350 400 1,425 238
----------------------------------------------------------------------------------------------------------------
Debt Repayment 278 282 289.8 207.8 270 297.3 1,725 287
----------------------------------------------------------------------------------------------------------------
Total 1,671 1,782 1,961 2,004 1,976 1,973 11,378 1,896
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
The authorization levels for PRIIA are based, in part, on
future operating and capital spending estimates developed by
Amtrak and the DOT IG. The DOT's own Amtrak reauthorization
proposal did not recommend specific funding amounts, but rather
recommended ``such sums as necessary'' for the Corporation and
related intercity passenger rail programs. Specifically, the
amounts for capital include authorizations for the NEC and
other corridors, long-distance trains, and Amtrak's system.
Through the operational reforms and flexibilities provided in
the bill, Amtrak is expected to achieve operational
efficiencies that will result in cost reductions and revenue
increases that will result in a forty percent reduction (in
real terms) in its Federal operating subsidy over the 6-year
term of the bill. This reduction is reflected in the authorized
funding levels. Sources of savings include: restructuring and
streamlining long-distance train service; increased
productivity; and, outsourcing and streamlining of food service
and station operations. Amtrak revenues should increase due to
increased State contributions for corridor service and
increased passenger revenue due to service enhancements.
AMTRAK REFORMS AND OPERATIONAL IMPROVEMENTS
PRIIA requires several major Amtrak reform initiatives
designed to increase financial and operation transparency and
accountability, reduce Federal operating subsidies, and improve
train performance and customer service.
The bill requires Amtrak to develop a new financial and cost
accounting system for Amtrak operations and a 5-year financial
plan that is consistent with the authorized funding levels in
the bill. Amtrak's current accounting system is limited by both
data quality and analysis depth, which hinders the development
of accurate business plans and service models. This requirement
will ensure increased transparency and better data inputs and
analysis on which to base sound business decisions.
To address the staggering debt-load facing Amtrak, which
currently consumes a significant portion of the Corporation's
revenues and Federal assistance, the bill directs the Secretary
of the Treasury, in consultation with the Secretary of
Transportation and Amtrak, to enter into negotiations to
restructure Amtrak's debt within 1 year after enactment. If
such a restructuring results in significant savings to Amtrak
or the Federal government, the Secretary of the Treasury may
assume the restructured debt, with the full faith and credit
backing of the United States. If no restructuring is possible,
Amtrak remains solely responsible for the debt without any
Federal guarantee, as is the case currently. This approach
provides an incentive for creditors to renegotiate and
restructure current agreements in a way favorable to Amtrak in
exchange for certainty of repayment. Reductions in principal
and interest costs to Amtrak achieved through such a
restructuring should lower Amtrak's need for Federal operating
assistance, thus saving the public money.
PRIIA expands the current Amtrak Board of Directors by adding
an additional member and the Amtrak President, bringing the
total number of members to 9. Further, the bill seeks to
establish a professional Board with the expertise to
effectively lead the Corporation by requiring members to have a
background in rail, transportation, or business. Additionally,
the bill modifies the procedure for congressional consultation
of member appointments and ensures that the Board has
bipartisan representation. These steps should help to hasten
the Senate confirmation process for Board members and ensure a
full Board.
To track and enhance customer service, train performance and
reliability, PRIIA requires the Federal Railroad Administration
(FRA) and Amtrak, in consultation with the Surface
Transportation Board (STB) and the freight railroads on whose
track Amtrak operates, to jointly develop metrics and standards
for measuring the performance and service quality of intercity
train operations. Such metrics and standards shall address
cost-recovery, on-time performance, ridership per train mile,
on-board and station services, and the connectivity of routes.
The bill further directs the Federal Railroad Administration to
collect metric data and publish quarterly reports on train
performance and service quality.
PRIIA also directs the FRA to retain an independent
consultant to develop and recommend objective methodologies for
route and service decisions. The methodologies shall give
consideration to cost recovery and on-time performance of
existing routes, connections with other routes, transportation
needs of communities not served by other public transportation,
and the methodologies used by rail service providers in other
countries. Amtrak shall consider adoption of the methodologies
recommended by the consultant. Amtrak often faces requests from
the public and its representatives to begin new service, alter
existing routes, or changes frequencies. This effort is
expected to provide Amtrak with new options to consider when
making decisions about when, where, and how often to run trains
and provide the public with a better understanding of the
considerations impacting such decisions.
States wishing to directly, or through another rail carrier,
operate intercity passenger rail corridor service may seek use
of Amtrak equipment, facilities, and reservation systems. If
Amtrak and a State fail to reach an agreement governing such
use, PRIIA directs the STB to determine reasonable terms of use
and allows STB to direct Amtrak to make such assets available
under such terms, so long as such use is essential to the
planned service and will not impair or degrade Amtrak's other
operations.
NORTHEAST CORRIDOR AND SHORT-DISTANCE ROUTES
The NEC is Amtrak's flagship asset. The Corporation operates
the majority of its passenger trains on this line and the NEC
provides Amtrak with the bulk of its patronage and revenue.
However, the NEC, as Amtrak's main capital asset, also has the
greatest capital needs and poses the largest set of future
challenges to the Corporation. The intensity of current
intercity and commuter operations coupled with years of
deferred maintenance and limited capital spending has
significantly impaired operations. While the on-time
performance on the NEC is significantly better than the
performance of some of Amtrak's long-distance trains, Amtrak's
ownership and dispatching control of the NEC should mean
reliable and on-time service, yet regular problems with
Corridor infrastructure, equipment, and trackage consistently
impacts train performance.
To address these issues, PRIIA requires Amtrak to develop a
capital spending plan to return the NEC to a state-of-good-
repair by the end of 2011. Some of the capital funds authorized
in the bill are available to carry out the plan at a 100
percent Federal share. The bill also establishes an advisory
commission to provide advice and oversight of the NEC's
operations and infrastructure and to plan for the Corridor's
future needs. The commission membership would represent Amtrak,
the FRA, and the 13 States along the NEC. Additionally, to
address historical differences in the fees paid to Amtrak for
NEC access by various northeastern commuter authorities and to
ensure that Amtrak is charging adequate fees to cover the
associated costs, the commission is required to develop a
proposal for determining the proper cost allocations and access
fees for NEC passenger and commuter trains. If Amtrak and the
States fail to develop or implement a proposal for determining
such costs and assigning commiserate fees, PRIIA authorizes STB
to impose restructured fees for the users of the NEC.
For other short distance corridor's services, Amtrak and the
States, in consultation with FRA, must develop uniform cost
allocation methodology to assign costs and determine
compensation levels from States for the services Amtrak
provides. Currently, States pay widely varying amounts to
Amtrak to cover capital and operating costs associated with
these services. PRIIA requires Amtrak and all States in which
short distance trains are operated to settle on a cost
allocation formula that eliminates this discrepancy, allowing
all States to pay like amounts for like services. If Amtrak and
the States do not develop or implement the proposed formula,
the STB would be authorized to impose restructured compensation
rates.
LONG-DISTANCE TRAINS
Amtrak's 15 long-distance trains serve 41 States connecting
major regional population centers across the nation. These
trains serve several travel markets simultaneously, providing
basic public transportation in rural regions of the country
where other options are limited, serving leisure travelers and
tourists, and providing intercity corridor service between city
pairs along a given route. Long distance trains come in various
sizes and configurations, depending on the markets served, with
trains featuring a mix of first class services, sleeping
accommodations, coaches, dining cars, and baggage equipment.
All of the long-distance trains incur operating losses and
require significant Federal operating subsidies. The long-
distance services also routinely suffer significant delays en
route for a number of reasons, including delays caused by
freight train interference as they traverse freight railroad-
owned trackage, which reflect Amtrak's reliability and the
revenue potential for these services.
While some have called for the wholesale elimination of these
trains, PRIIA requires that significant steps be taken to try
to improve or restructure these services in order to reduce
costs and enhance service while continuing to provide basic
long-distance service to meet the mobility needs of rural
communities that may not have access to other transportation
alternatives where they can be justified. The bill requires
Amtrak to rate the performance of its long-distance routes and
establish performance improvement plans for all long-distance
trains, beginning with the 5 lowest ranked routes. As Amtrak
develops these plans, it must consider restructuring these
routes, improving on-board services, changing amenities such as
sleeper car service and food service, seeking revenue
contributions from States or other sources, and changing train
frequencies. Amtrak should also consider the feasibility of
restructuring long-distance trains into a series of
interconnected corridors. Such interconnected corridors may be
able to provide better frequencies and operate at times that
are more convenient to passengers on the route. Because
Amtrak's long-distance trains generally operate night and day,
a number of communities along the route receive service only at
inconvenient times such as late in the middle of the night. If
Amtrak fails to implement a plan for a specific route in
accordance with the timetable set in the bill or if the plan
does not lead to the achievement of the stated objectives, FRA
has the authority to withhold Federal operating support for
that route.
In an additional effort to improve service, the bill
establishes a competitive bid program, administered by the FRA,
allowing freight railroads to bid to operate a limited number
of long-distance trains over their current routes. This program
will introduce competition in an attempt to reduce operating
costs and improve service and will offer an opportunity to
observe passenger train performance over freight railroads when
the host railroad is entirely in charge of the provision of
service. Operating subsidies for any operators under this
program are capped at the amount provided in the previous year.
Any Amtrak employee adversely affected by the cessation of the
operation of a route will either be relocated to other
positions within Amtrak, provided financial incentives in
exchange for the voluntary termination of their employment, or
paid termination payments guaranteed under existing collective
bargaining agreements.
OTHER PROVISIONS
To address on-time performance and service issues impacting
intercity passenger trains operating over freight railroad
trackage, the bill directs the STB to issue a quarterly on-time
service report. If for a particular route, a passenger train's
on-time performance record falls below 80 percent for 2
consecutive quarters or fails to meet other requirements set by
the FRA, STB will investigate the causes and make
recommendations to Amtrak or a freight railroad how to reduce
delays. If the STB determines that delays to passenger trains
are the result of freight railroads not providing priority
access to Amtrak, as required under law, the Board may take
appropriate action to enforce Amtrak's priority access rights.
In an effort to encourage the development of new and improved
intercity passenger rail services, PRIIA creates a new State
Capital Grant program for intercity passenger rail capital
projects as proposed by the Administration and based on the New
Starts transit capital program administered by the Federal
Transit Administration (FTA). The program authorizes grants to
a State, or a group of States, to pay for the capital costs of
facilities and equipment necessary to provide new or improved
intercity passenger rail. The Federal match is 80 percent. The
Secretary of Transportation will award grants for projects
based on economic performance, expected ridership and other
factors.
Complementing the State Capital Grant program, PRIIA
authorizes States and Amtrak to issue Federal tax credit bonds
to finance intercity passenger rail capital projects, should
such bonds be enacted into law. The Senate Finance Committee
has jurisdiction over the creation of such bonds and the
Commerce Committee hopes that the Finance Committee will purse
their creation. The availability of tax credit bonds would
provide States and Amtrak with a multi-year, dedicated source
of capital funding, allowing for long-term development projects
and efficient construction practices. Under PRIIA, bond
proceeds would be available for projects that are contained in
a State's rail plan. For Amtrak, projects must be contained
within the Corporation's 5-year plan and Amtrak may not issue
bonds without the approval of the Secretary of Transportation.
PRIIA includes the Amtrak and passenger rail security and
tunnel life/safety provisions from the Rail Security Act of
2004. This bill was unanimously passed by the Senate in 2004
and reflects the Committee's long-standing interest in
enhancing rail security.
Legislative History
S. 1516 was introduced on July 27, 2005, by Senator Lott and
co-sponsored by Senators Lautenberg, Stevens, Inouye, Burns,
and Hutchison, and was referred to the Senate Committee on
Commerce, Science, and Transportation. A hearing on the
reauthorization of Amtrak was held by the Commerce Committee's
Subcommittee on Surface Transportation and Merchant Marine on
April 21, 2005. On July 28, 2005, the Committee met in open
executive session and ordered S.1516 reported favorably with an
amendment in the nature of a substitute.
Estimated Costs
In compliance with subsection (a)(3) of paragraph 11 of rule
XXVI of the Standing Rules of the Senate, the Committee states
that, in its opinion, it is necessary to dispense with the
requirements of paragraphs (1) and (2) of that subsection in
order to expedite the business of the Senate. deg.
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
September 30, 2005.
Hon. Ted Stevens,
Chairman, Committee on Commerce, Science and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1516, the Passenger
Rail Investment and Improvement Act of 2005.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Rachel
Milberg.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
S. 1516--Passenger Rail Investment and Improvement Act of 2005
Summary: S. 1516 authorizes the appropriation of about $9.2
billion over the 2006-2010 period, and another $1.5 billion in
2011, for grants to Amtrak to cover operating expenses, capital
projects, debt repayment, security improvements, and a study
required by the bill. The legislation also would authorize the
appropriation of about $1 billion over the 2006-2010 period,
and another $411 million in 2011, to the Secretary of
Transportation for a new grant program for state railroad
projects, a new research program, a new grant program for
Amtrak and participating states to share railroad equipment,
and a study on screening the baggage of Amtrak passengers.
Assuming appropriation of the specified amounts, CBO estimates
that implementing those provisions would cost $9.6 billion over
the 2006-2010 period, and another $2.6 billion after 2010.
In addition to those authorizations of appropriation, S.
1516 would increase the requirements of the Federal Railroad
Administration (FRA) and the Inspector General of the
Department of Transportation (DOT) to oversee Amtrak. Assuming
appropriation of the necessary amounts, CBO estimates that
those provisions would cost about $5 million each year
beginning in 2006.
S. 1516 would affect direct spending by authorizing the
Surface Transportation Board (STB) to charge penalties to
freight railroads for delaying Amtrak trains and provide those
penalties to Amtrak. The bill also would authorize the
Secretary of the Treasury to repay Amtrak debt if the Secretary
chooses to negotiate with Amtrak's creditors to restructure the
debt. CBO expects that the impact on direct spending would be
insignificant because STB would spend whatever it collects in
penalties and because we do not expect that the Treasury would
seek to restructure and repay Amtrak's debt. If, however, the
Treasury does repay Amtrak's debt, that provision would
increase direct spending by over $2 billion over the next
several years. Enacting S. 1516 would not affect revenues.
S. 1516 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA); any costs to State,
local, and tribal governments would result from participation
in a voluntary Federal program. Other provisions of the bill
would benefit States by authorizing about $1.5 billion in new
grants for States to improve intercity passenger rail service.
S. 1516 would impose various private-sector mandates, as
defined in UMRA, on Amtrak. CBO estimates that the direct costs
of those mandates would fall below the annual threshold
established by UMRA for private-sector mandates ($123 million
in 2005, adjusted annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1516 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------
2005 2006 2007 2008 2009 2010
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law for Amtrak:
Budget Authority \1\...................... 1,207 0 0 0 0 0
Estimated Outlays......................... 1,235 10 10 0 0 0
Proposed Changes:
Amtrak:
Authorization Level....................... 0 1,936 1,934 1,967 1,705 1,627
Estimated Outlays......................... 0 1,936 1,934 1,967 1,705 1,627
Grants to States for Rail Projects:
Authorization Level....................... 0 24 100 246 274 369
Estimated Outlays......................... 0 4 22 72 139 205
Rail Research:
Authorization Level....................... 0 5 5 5 5 5
Estimated Outlays......................... 0 3 5 5 5 5
Train Equipment Pool:
Authorization Level....................... 0 5 0 0 0 0
Estimated Outlays......................... 0 1 1 1 1 1
Study on Screening Amtrak Baggage:
Authorization Level....................... 0 1 0 0 0 0
Estimated Outlays......................... 0 1 0 0 0 0
DOT Oversight of Amtrak and State Rail Plans:
Estimated Authorization Level............. 0 5 5 5 5 5
Estimated Outlays......................... 0 5 5 5 5 5
Total Changes:
Estimated Authorization Level............. 0 1,976 2,044 2,223 1,989 2,006
Estimated Outlays......................... 0 1,950 1,967 2,050 1,855 1,843
Spending Under S. 1516:
Estimated Authorization Level \1\......... 1,207 1,976 2,044 2,223 1,989 2,006
Estimated Outlays......................... 1,235 1,960 1,977 2,050 1,855 1,843
----------------------------------------------------------------------------------------------------------------
\1\ The 2005 level is the amount appropriated for that year.
Basis of estimate: S. 1516 would authorize the
appropriation of $12.2 billion over the 2006-2011 period; CBO
assumes that the amounts specified in the bill would be
appropriated near the beginning of each fiscal year. S. 1516
also increases the responsibilities of FRA and the DOT
Inspector General for overseeing Amtrak. CBO assumes that the
amounts necessary to increase oversight--about $5 million a
year--would be appropriated. Estimates of outlays are based on
historical trends for Amtrak spending and other programs
similar to the ones that S. 1516 would authorize.
Spending subject to appropriation
Amtrak. S. 1516 would authorize the appropriation of $10.7
billion for grants to Amtrak over the 2006-2011 period. This
total includes $4.4 billion for operating expenses, $4.9
billion for capital projects, $1.7 billion for the repayment of
the principal and interest on its debt, $794 million for
security improvements, and $500,000 to develop a plan to
address the needs of families of passengers involved in a rail
accident. CBO expects that Amtrak spending under this bill
would be primarily for short-term capital projects and
operating expenses. Currently, the Secretary of Transportation
makes appropriations immediately available to Amtrak for such
expenses. Assuming appropriation of the amounts specified, CBO
estimates those grants to Amtrak would cost $9.2 billion over
the 2005-2010 period, and another $1.5 billion in 2011.
Grants to States for Rail Projects. S. 1516 would authorize
the Secretary of Transportation to make grants to states for
capital projects that would improve intercity rail service. For
those grants, the bill would authorize the appropriations of
$1.4 billion over the 2006-2011 period. Assuming appropriation
of the specified amounts, CBO estimates those grants would cost
about $1 billion over the 2006-2010 period and just over $400
million after 2010.
Rail Research. S. 1516 would authorize the appropriation of
$30 million over the 2006-2011 period to the Secretary of
Transportation to improve models for understanding railroad
transportation, and study ways in which railroad transportation
could be improved. Assuming appropriation of the specified
amounts, CBO estimates this research would cost $23 million
over the 2006-2010 period and another $7 million after 2010.
Train Equipment Pool. S. 1516 would direct FRA, Amtrak, and
interested states to form a committee that would develop
standards for rail corridor equipment. Under the bill, Amtrak
and participating states could also enter into agreements or
establish a corporation for acquiring such equipment. For these
activities, the bill would authorize the appropriation of $5
million to the Secretary of Transportation. Assuming
appropriation of the specified amount, CBO estimates this
program would cost $5 million over the 2006-2010 period.
Study on Screening Amtrak Baggage. S. 1516 would authorize
the appropriation of $1 million in 2006 to the Secretary of
Homeland Security for a study on screening the baggage and
cargo on Amtrak trains. Assuming appropriation of the
authorized amount, CBO estimates this study would cost $1
million in 2006.
DOT Oversight. S. 1516 would require the Federal Railroad
Administration to develop ways to measure Amtrak's performance,
organize two commissions to oversee Amtrak's Northeast
Corridor, review state rail plans, create a national rail plan,
and report on passenger rail security. The legislation would
also require DOT's Inspector General to review Amtrak's
financial statements and five-year plans. Assuming
appropriation of the necessary amounts, CBO estimates those
provisions would cost about $5 million each year beginning in
2006.
Direct spending
S. 1516 would authorize the Surface Transportation Board to
charge penalties to freight railroads, provide those penalties
to Amtrak, and the bill would authorize the Secretary of
Treasury to repay Amtrak debt. CBO, however, expects that the
impact on direct spending of those provisions would be
insignificant.
Freight Railroad Penalties. S. 1516 would direct the STB to
investigate Amtrak's failure to meet certain performance
measures, and determine when the performance failure is due to
a freight rail carrier's refusal to provide Amtrak preference
over its tracks. The bill would authorize the STB to charge
penalties to freight rail carriers for refusing to give Amtrak
such preference, and the bill would direct STB to provide those
penalties to Amtrak. Collecting the penalties and providing
them to Amtrak would affect direct spending, but CBO estimates
that the net impact on the federal deficit would be
insignificant. CBO estimates that such penalties would total
less than $500,000.
Repayment of Amtrak Debt. S. 1516 would authorize the
Secretary of the Treasury to negotiate with Amtrak's creditors
to restructure Amtrak's long-term debt with the goal of
reducing costs to Amtrak and the government. The Secretary's
authority to initiate such negotiations would expire on January
1, 2007. The bill also would direct the Secretary to repay
whatever debt the Secretary is able to restructure if the
government and Amtrak would realize savings. Based on
information from Amtrak, the Department of Transportation, and
the Treasury, CBO does not expect that the Secretary of the
Treasury would opt to negotiate with Amtrak's creditors, and as
a result, would not repay any of Amtrak's debt under this bill.
Thus, CBO does not estimate that this provision would affect
direct spending. Amtrak currently holds about $3.7 billion in
long-term debt. Of this total, almost $1 billion is held in an
escrow account for repayment, leaving $2.7 billion available
for restructuring under S. 1516. If the Treasury does
restructure and repay this debt, CBO estimates that the
repayment would increase direct spending by more than $2
billion over the next several years.
Estimated impact on state, local, and tribal governments:
S. 1516 contains no intergovernmental mandates as defined in
UMRA. Provisions of the bill would either benefit states or
impose costs on them as a result of their participation in a
voluntary federal program.
Title I of the bill would authorize about $1.5 billion over
the 2006-2011 period for grants to states to improve intercity
rail service. This provision would generally benefit
intergovernmental entities. Grants to states would require
matching funds from nonfederal sources, but such costs would be
incurred voluntarily.
Title II would require certain states with Amtrak routes to
agree on a formula for the distribution of capital and
operating costs. The federal govenrment--via Amtrak--currently
subsidizes these routes, so any requirements on states would be
a condition of receivingfederal assistance. The bill
effectively would increase the price of the federal service, and CBO
views these types of relationships as voluntary federal programs.
Estimated impact on the private sector: S. 1516 would
impose various private-sector mandates, as defined in UMRA, on
Amtrak. The bill includes reforms related to financial
reporting that would require Amtrak to submit an annual budget
and a five-year fiscal plan for Amtrak to the Secretary of
Transportation and DOT's Inspector General and implement a
modern financial accounting and reporting system, subject to
review by DOT. The bill also would require Amtrak to evaluate
the performance of each long-distance passenger rail route
annually and the improvements necessary to make all existing
stations readily accessible to and usable by persons with
disabilities. The bill would require that Amtrak:
Develop new or improve existing metrics and
minimum standards for measuring performance and service
quality of intercity train operations;
Develop and implement a plan to improve on-
board service within one year after those metrics and
minimum standards are established; and
Submit a plan to the Chairman of the National
Transportation Safety Board and the Secretary of
Transportation for addressing the needs of families of
passenger involved in fatal rail accidents involving
Amtrak intercity trains.
Most of the requirements in the bill are already being met
by Amtrak. For those requirements that may require additional
effort or changes to current efforts, the cost to make such
changes would be small. CBO estimates that the aggregate cost
of the private-sector mandates included in S. 1516 would fall
below the annual threshold established by UMRA for private-
sector mandates ($123 million in 2005, adjusted annually for
inflation).
Estimate prepared by: Federal Costs: Rachel Milberg; Impact
on State, Local, and Tribal Governments: Sarah Puro; Impact on
the Private Sector: Selena Caldera.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
For an analysis of the economic impact on the private sector,
see page 10 of the CBO estimate.
In compliance with subsection (b)(2) of paragraph 11 of rule
XXVI of the Standing Rules of the Senate, the Committee states
that, in its opinion, it is necessary to dispense with the
requirements of paragraph (1) of that subsection in order to
expedite the business of the Senate. deg.
Because S. ------ does not create any new programs, the
legislation will have no additional regulatory impact, and will
result in no additional reporting requirements. The legislation
will have no further effect on the number or types of
individuals and businesses regulated, the economic impact of
such regulation, the personal privacy of affected individuals,
or the paperwork required from such individuals and
businesses. deg.
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: deg.
NUMBER OF PERSONS COVERED deg.
ECONOMIC IMPACT deg.
PRIVACY deg.
PAPERWORK deg.
Section-by-Section Analysis
TITLE I--AUTHORIZATIONS
Section 101. Authorization for Amtrak Capital and Operating Expenses
and State Capital Grants.
This section authorizes capital and operating grants to
Amtrak for each of the fiscal years 2006 through 2011.
Operating grant authorizations are as follows:
FY 06: $580 million
FY 07: $590 million
FY 08: $600 million
FY 09: $575 million
FY 10: $535 million
FY 11: $455 million
This section authorizes capital grants for the national
railroad transportation system, for expenses to bring the
Northeast Corridor to a state-of-good-repair, and to make
grants directly to States for other intercity rail passenger
improvements under section 301. Capital grant authorizations
are as follows:
Amount authorized Percent available for States
FY 06: $813 million 3 percent
FY 07: $910 million 11 percent
FY 08: $1.071 billion 23 percent
FY 09: $1.096 billion 25 percent
FY 10: $1.191 billion 31 percent
FY 11: $1.231 billion 33 percent
One half of one percent of the available capital funds is
available to the Secretary of Transportation to perform project
management oversight for Amtrak and State capital projects
funded under this section.
Section 102. Authorization for the Federal Railroad Administration.
There are authorized to be appropriated to the Federal
Railroad Administration such funds as are necessary to
implement responsibilities authorized by this Act for fiscal
years 2006 through 2011.
Section 103. Repayment of long-term debt and capital leases.
Funds are authorized to be appropriated to pay interest and
principal on Amtrak's long-term debt for fiscal years 2006
through 2011. The average amount authorized per year for
interest and principal repayment is $287.5 million. Funds also
are authorized, to the extent necessary, to exercise early
buyout options if advantageous to Amtrak, and therefore the
taxpayers. These authorization amounts shall be reduced by the
amount of Amtrak's debt service costs reduced through debt
restructuring by the Secretary of the Treasury under section
215.
Section 104. Excess railroad retirement.
Such sums as are necessary are authorized to be appropriated
to the Secretary of Transportation for fiscal year 2006 to pay
into the Railroad Retirement Account the portion of Amtrak's
Railroad Retirement Tier II Tax which exceeds the Railroad
Retirement Tier II annuities paid to Amtrak retirees. The
authorization level for Amtrak's operations grant is to be
reduced by payments the Secretary makes under this section.
Section 105. Other authorizations.
Five million dollars is authorized for each of fiscal years
2006 through 2011 for the rail cooperative research program
required under section 305. Another $5 million is authorized
for fiscal year 2006 to Amtrak and States participating on the
Next Generation Corridor Train Equipment Pool Committee.
TITLE II--AMTRAK REFORM AND OPERATION IMPROVEMENTS
Section 201. National railroad passenger transportation system defined.
The definition of the basic Amtrak route system, which has
been obsolete since 1997, is repealed, and a new ``national
rail passenger transportation system'' is defined as: Amtrak's
Boston-Washington Northeast Corridor; high-speed corridors
designated by the Secretary of Transportation once they have
been improved for high-speed service; long-distance routes (of
greater than 750 miles) operated on the date of enactment; and
short-distance routes operated by Amtrak or a non-Amtrak
recipient of Federal capital assistance under section 301.
Amtrak and a State may agree on the operation of an intercity
route or service not included in the national rail
transportation system.
Subsection (b) clarifies that the 180-day notice period for
routes which Amtrak seeks to discontinue does not apply for
routes exclusively supported by non-Federal sources, including
States, local regional or local authorities, or other parties
that contract with Amtrak to provide intercity passenger rail
service. Nothing in this provision is meant to provide third
parties with direct statutory access to Amtrak or privately-
owned rail infrastructure. As is the case today, third parties
seeking to initiate intercity passenger rail service must
contract with Amtrak to operate such service if Amtrak's
statutory right of access to private rail infrastructure is to
be used.
Subsection (c) states that Amtrak's general powers to develop
and operate non-high-speed intercity service are unaffected by
this bill.
Subsection (d) states that the provision of law pertaining to
the discontinuance of Amtrak routes, 49 U.S.C. 24706, applies
to all routes operated by Amtrak regardless of a route's
inclusion in the National Railroad Passenger Transportation
System. This provision affirms that a route's inclusion in the
National Railroad Passenger Transportation System does not
protect that route from possible discontinuance. The Committee
does not intend for this provision to countervail the
amendments made by subsection (b).
Section 202. Amtrak board of directors.
Effective, January 1, 2006, the Amtrak Board is expanded to 9
members as follows: the Secretary of Transportation, the
President of Amtrak, and 7 individuals with experience in
business, finance, or activities related to passenger
transportation, who are appointed by the President of the
United States, by and with the advice and consent of the
Senate, for a term of 5 years or until their successors have
been appointed and qualified. The President must consult with
congressional leaders to ensure balanced representation of
regions served by Amtrak. Members of Amtrak's Board serving on
the date of enactment may continue to serve to the end of their
terms.
Section 203. Establishment of improved financial accounting system.
Section 203 directs Amtrak to implement a modern accounting
and reporting system that enables the railroad to: assign
revenues and expenses to each of its lines of business and
major activities, such as train operations, equipment
maintenance, ticketing and reservations; separate costs of
infrastructure and rail operations; allow analysis or ticketing
and reservation data on a real-time basis; and provide cost-
accounting data. Requires the DOT IG to review the accounting
system and ensure it accomplishes the specified purposes.
Without improved financial systems and controls, it will be
difficult for Amtrak to substantially improve its operations,
save money, and increase revenue.
Section 204. Development of 5-year financial plan.
Requires Amtrak to submit its annual budget for the next
fiscal year and a 5-year financial plan to DOT on the first day
of the fiscal year or 60 days after enactment of an
appropriation for such fiscal year. The budget should specify
how Amtrak plans to spend its Federal subsidy that it has
received in the appropriations act. This budget is distinct
from the budget request that Amtrak submits to the
Administration and Congress. The 5-year plan shall include
projected revenues, expenditures, ridership, capital funding
requirements, cash flow forecasts, and an assessment of
Amtrak's continuing financial stability. The Inspector General
of the Department of Transportation shall report to the
Congress on the annual budget and the 5-year plan prepared by
Amtrak. It is the Committee's expectation that the 5-year plan
conform to the authorization levels contained in this
legislation and that the out-year detail be sufficient for
Congress to be able to ascertain if Amtrak will be able to
achieve the operating subsidy reductions required by section
101.
Section 205. Establishment of grant process.
Section 205 requires the Secretary of Transportation to
establish substantive and procedural requirements for Amtrak
grant requests. It is the Committee's expectation that the
requirements developed by the Secretary provide sufficient
transparency and controls over Amtrak's use of the Federal
appropriation. The requirements should include controls that
ensure that Federal funds appropriated for capital projects are
not diverted to cover operating costs. After Amtrak submits a
complete grant request including a schedule for funding, the
Secretary must approve or disapprove it within 30 days. If the
request is denied, the Secretary must notify Amtrak of the
reasons, and Amtrak must submit a modified request within 15
days. If the Secretary denies the modified request, the
Secretary must, within 15 days of its receipt, notify the
appropriate House and Senate Committees of the reasons for such
disapproval and recommend a process for resolving the
outstanding issues. This grant process provides additional
Federal oversight ensuring that funds appropriated for the use
of Amtrak are used efficiently and for purposes consistent with
this Act. Additionally, the Committee believes that statutory
establishment of this process will provide both Amtrak and the
Secretary with clear timelines and expectations, which should
minimize disputes and result in the timely and predictable
transmittal of appropriated funds. The Committee does not
intend the grant process to be used by either party as a means
to pursue or require initiatives not included in this
reauthorization.
Section 206. State-supported routes.
Within 2 years after the date of enactment, Amtrak, in
consultation with the Secretary and the chief executive of each
State, must develop a standardized methodology for computing
and allocating operating and capital costs of short distance
routes of 750 miles or less. Within 5 years after the date of
enactment, the new methodology must be implemented and ensure
equal treatment to all States supporting short-distance
service. In the event of a failure to adopt and implement such
a methodology, the STB must develop and implement an allocation
methodology. Grants to a State described under section 301 may
be used to pay capital costs under this section. Currently
Federal financial participation for corridor routes varies
widely. In some cases the Federal Government supports the full
subsidy, in other cases the routes are supported exclusively by
State funds. The purpose of this provision is to standardize
Federal participation across all corridors.
Section 207. Independent auditor to establish methodologies for Amtrak
route and service planning decisions.
This section directs the FRA to retain a consultant to
develop and recommend objective methodologies for route and
service decisions including expansion or elimination of
services. Cost recovery and on-time performance of existing
routes, connections with other routes, transportation needs of
communities not served by other public transportation services,
and the methodologies used by rail service providers in other
countries must be considered. The Amtrak Board shall consider
adoption of the consultant's recommendations. It is the
Committee's expectation that the methodologies be based on
objective criteria and that the independent consultant shall
not have a financial interest or other such conflicts in the
outcome of Amtrak's routing decisions.
Section 208. Metrics and standards.
This section provides that in consultation with the STB and
the operating freight railroads, the FRA and Amtrak will
jointly develop metrics and standards for measuring the
performance and service quality of intercity train operations
within 180 days after the date of enactment. These metrics and
standards include cost-recovery; on-time performance; ridership
per train mile; on-board and station services; and the
connectivity of routes. This section requires the FRA to
publish a quarterly report on train performance and service
quality. It is the Committee's expectation that the freight
railroads be consulted in the development of the metrics and
that to the extent practicable, the metrics and standards
developed not be inconsistent with measures of on-time
performance included in the contracts between the freight
railroads and Amtrak.
Section 209. Passenger train performance.
Section 209 provides that if for any 2 consecutive quarters,
the on-time performance of any intercity passenger train
averages less than 80 percent, or the service quality fails to
meet the standards established under section 208, the STB will
investigate the extent to which such failure is due to causes
that could reasonably be addressed by the operating freight
railroad or by Amtrak. If the Board determines that the cause
is the failure of a freight railroad to provide preference to
Amtrak over freight trains, the Board shall enforce that
preference under applicable law. In addition, this section
requires the Board to publish a schedule of penalties for such
infractions. The section also amends existing law to allow
freight railroads to petition the STB for relief if the
railroad believes that the operation of a particular Amtrak
route is having a negative impact on its freight operations.
Under current law, the railroad may only petition the Secretary
of Transportation. The intent of this section is to provide a
forum for both Amtrak and the freight railroads for the
adjudication of service disputes. The Committee believes that
the STB will be able to consider disputes in an efficient and
evenhanded manner. Currently, the Committee understands that
the existing process is cumbersome and is almost never used,
and that the frustration of both the freight railroads and
Amtrak seems to be increasing.
Section 210. Long distance routes.
Using the metrics and standards developed under section 208,
Amtrak must annually evaluate each long-distance route.
Further, Amtrak must rank the routes, based upon their
performance in 2006, as the best-performing third of such
routes, the second-best performing third, and the worst-
performing third. Amtrak must develop a performance improvement
plan for its long-distance routes and implement it in fiscal
year 2007 with respect to the third-worst performing routes; in
FY 2008 for the second-worst performers; and in 2009 for the
best performing. The FRA monitors the development and
implementation of the long-distance route performance plan and
may withhold, following notice to Amtrak which has an
opportunity to be heard, appropriated funds for operating a
route on which reasonable progress in improving performance is
not being made. It is the Committee's expectation that the
performance improvement plans be the result of thorough
evaluations of the long-distance routes and that changes to
food service, sleeper service, and other on board amenities be
considered. It has been suggested that significant savings may
be realized if Amtrak restructured its contracts for food and
beverage service. Amtrak should also evaluate the long-distance
routes to see if they could be restructured to be a series of
inter-connected corridors. It has also been suggested that such
inter-connected corridors could provide more frequent service
at more convenient times offering the potential for increased
ridership.
Section 211. Alternate passenger rail service program.
Within 1 year after the date of enactment of this Act, the
FRA develops a program under which a rail carrier or carriers
that own a route over which Amtrak operates may petition the
FRA to become a passenger rail carrier for that route in lieu
of Amtrak. The rail carrier and Amtrak submit a bid to provide
service over the entire route and the FRA awards the right to
provide such service in accordance with standards it may
prescribe. In addition, the FRA provides the operating subsidy
not in excess of that which Amtrak received for the route prior
to the petition. The first deadline for submission of petitions
will be in fiscal year 2007 for alternate operations to
commence in fiscal year 2008. This section will not apply to
more than one Amtrak route in fiscal year 2008 and 2 routes
beginning in fiscal year 2009 and fiscal years thereafter. Any
contract awarded by the FRA under this section requires the
operator to meet the metrics and standards under section 208.
Section 212. Employee transition assistance.
For Amtrak employees adversely affected by the cessation of
Amtrak as the operator of a long-distance route under section
211, the Secretary shall develop a program to provide up to
$50,000 per employee in benefits in lieu of other termination-
related payments due from Amtrak. If the affected employees do
not accept the incentives offered under such program, the
Secretary shall make grants to Amtrak of funds otherwise
appropriated to the FRA to permit Amtrak to pay termination-
related benefits to such employees under existing contractual
agreements. Since there will be ample time to plan for the
transition on service from Amtrak to the winning bidder, it is
likely that Amtrak will be able to use the employees on the
affected line to back-fill positions elsewhere in its system
due to the attrition.
Section 213. Northeast Corridor state-of-good-repair plan.
Within 6 months after the date of enactment, Amtrak, in
consultation with the Secretary and the NEC, is required to
prepare a capital spending plan to return the NEC to a state-
of-good-repair by the end of fiscal year 2011. The Secretary
reviews the plan and annual updates for approval. The Secretary
makes capital grants of appropriated funds, as authorized by
section 101 of this Act, for up to 100 percent of the capital
investments contained in the spending plan. It is the
Committee's expectation that the Secretary shall use the grant
process established in section 205 to ensure that funds
appropriated for the NEC and made available to Amtrak are spent
on the Corridor and are spent in a manner consistent with the
improvement plan. The bill also allows the Secretary to
withhold up to one-half percent of funds appropriated for the
NEC to fund project management oversight (PMO). PMO is used in
other DOT programs to ensure that funds are effectively spent.
The Committee intends that no local or State match be required
for projects on the state-of-good-repair plan.
Section 214. Northeast Corridor infrastructure and operations
improvements.
Within 6 months after the date of enactment, the Secretary
must establish a Northeast Corridor Infrastructure and
Operations Advisory Commission which includes representatives
of Amtrak, the FRA, and each of the States in the NEC, with
none of these parties constituting a majority. The Commission
then will develop future funding requirement recommendations
for capital improvements, and scheduling and safety
enhancements. Further, within 1 year after the date of
enactment of PRIIA, the Commission will develop a proposal for
a standardized formula to determine costs and compensation to
be paid by the NEC commuter authorities for the use of
facilities or services provided to them by Amtrak. If Amtrak
and the commuter authorities do not implement the recommended
formula, they may go to arbitration or petition the STB for a
ruling. Lastly, this provision directs the Secretary to
establish a Northeast Corridor Safety and Security Committee.
Section 215. Restructuring long-term debt and capital leases.
Between the date of enactment and January 1, 2007, the
Secretary of the Treasury, in consultation with the Secretary
of Transportation and Amtrak, may make agreements to
restructure Amtrak's debt. The provision directs the Secretary
of the Treasury to enter into negotiations with the holders of
such debt for the purpose of restructuring and assuming, or
repaying, the debt on terms significantly more favorable to the
United States Government. To the extent Amtrak's principal and
interest payments are reduced as a result of this section,
authorizations for such payments under section 103 of this Act
are correspondingly reduced. Amtrak may incur no new debt
without advance approval of the Secretary of Transportation.
Section 216. Study of compliance requirements at existing intercity
rail stations.
Under this section, Amtrak evaluates the improvements
necessary to make all existing stations it serves readily
accessible as required under the Americans with Disabilities
Act of 1990. The evaluation includes the estimated cost of such
improvements and the earliest date they can be made. The
evaluation submitted by Amtrak goes to the House and Senate
authorizing Committees and the National Council on Disability
by September 30, 2006, along with recommendations for funding
such improvements.
Section 217. Incentive pay.
This section encourages Amtrak to develop an incentive pay
program for Amtrak employees. The Committee believes that
incentive pay could be an important tool to increase
productivity at Amtrak and allow the railroad to operate more
like a business.
Section 218. Access to Amtrak equipment and services.
Under this section, States wishing to use operators other
than Amtrak for the provision of State-supported services shall
have access to Amtrak equipment, facilities, and reservation
systems for the purpose of operating that particular route. If
Amtrak and a State fail to reach an agreement governing such
use, the STB shall determine reasonable terms of use in
accordance with section 206 of this Act and direct Amtrak to
make such assets available to the State, so long as such use is
essential to the planned service and will not impair or degrade
Amtrak's other operations.
Section 219. General Amtrak provisions.
The operating self-sufficiency requirement imposed on Amtrak
in 1997 is repealed, along with the 2002 ``sunset trigger'' for
failing to meet the requirement. This repeal is technical in
nature and is not meant to indicate that Amtrak should not
strive to reduce it dependency on Federal funds or improve the
efficiency of how it spends Federal funds. Also repealed is the
requirement to redeem Amtrak's outstanding common stock. In
addition, the provision authorizes Amtrak to continue leasing
vehicles from the General Services Administration.
Section 220. Private sector funding of passenger trains.
The provision prompts Amtrak to seek out business with
private-sector customers (i.e., charters, etc.) in order to
decrease its Federal operations grant amounts. The Committee
believes that Amtrak should explore such business arrangements
and that such partnerships have the potential of reducing costs
and improving the level of service.
Section 221. On-board service improvements.
Under this provision, Amtrak will develop and implement a
plan to improve on-board service based on the metrics and
standards developed under section 208. Amtrak is to provide a
report to Congress describing how it will improve on-board
service and provide a timeline for implementing such
improvements. Amtrak's on-board service has frequently been the
subject of criticism. The Committee believes major improvements
can be made to improve the experience of passengers.
TITLE III--INTERCITY PASSENGER RAIL POLICY
Section 301. Capital assistance for intercity passenger rail service.
This provision establishes that the Secretary of
Transportation may make capital grants to a State to fund
improvements to intercity passenger rail transportation from
the funds authorized for capital improvements under section
101. A grant may not exceed 80 percent of the capital cost, but
the remaining 20 percent may be funded from amounts
appropriated to a department of the Federal Government and
eligible to be expended on transportation. The Secretary shall
also allocate an appropriate portion of grants under this
section to States with no intercity rail passenger service
(Hawaii, South Dakota and Wyoming) and to the State of Alaska.
Conditions of the grants are: (1) compliance with laws
generally governing major Federal projects, (2) a written
agreement between the grantee and the owner of any railroad
facilities to be used or improved, and (3) a written agreement
between any new rail operator and Amtrak labor organizations to
protect the rights of Amtrak employees who would otherwise be
adversely affected (this does not apply to Amtrak's access to
railroad rights-of-way for projects where train speeds do not
exceed 79 miles per hour, or to the Alaska Railroad). Although
these grants are primarily established for States to fund
improvements to intercity passenger rail transportation, these
projects may benefit either infrastructure owners or other
users.
Section 302. State rail plans.
States may prepare and maintain a State rail plan in accord
with requirements listed in this section. A State rail plan
must designate an authority to approve and carry out the plan
and be reviewed by the Secretary. The section also provides
criteria for the purpose and content of the State rail plans,
including a long range service and investment program.
Section 303. Next-generation corridor train equipment pool.
Amtrak shall establish within 180 days of enactment of this
act, a committee, along with FRA and interested States, to
design and develop specifications for a joint procurement of
equipment (i.e., passenger cars, locomotives, etc.).
Section 304. Federal rail policy.
Under this section, the organization of the FRA is modified
and its responsibilities are expanded, including a requirement
to develop a national rail plan. The development of the
national rail plan shall not impede ongoing state rail
planning, project development, or funding.
Section 305. Rail cooperative research program.
The Secretary is directed to establish a research program to
examine issues relating to intercity, commuter, and freight
rail enhancements, including impacts on highway and airport
congestion, rail capacity constraints, and development of high-
speed rail services.
TITLE IV--PASSENGER RAIL SECURITY AND SAFETY
Section 401. Systemwide Amtrak security upgrades.
Section 401 authorizes the Secretary of Homeland Security to
make grants to Amtrak for security improvements, including the
tunnels in New York, Baltimore, and Washington, D.C. A total of
$123 million is authorized to be appropriated annually fiscal
years 2006 through 2008.
Section 402. Fire and life-safety improvements.
Section 402 authorizes the Secretary of Transportation to
make grants to Amtrak for fire and life-safety improvements to
tunnels in each of fiscal years 2006, 2007, and 2008, as
follows: New York, $190 million per year; Baltimore, $19
million per year; and Washington, D.C., $13 million per year.
The Secretary must first approve Amtrak's plans for the work
and must consider the feasibility of seeking a contribution
from other rail carriers that also use the referenced tunnels.
Section 403. Amtrak plan to assist families of passengers involved in
rail passenger accidents.
Six months after the date of enactment, Amtrak is required to
submit to the National Transportation Safety Board a plan for
providing a list of the names of passengers involved in train
accidents and notifying their families appropriately.
Section 404. Northern border passenger rail report.
Section 404 requires within 180 days after the date of
enactment, the Secretary of Transportation to study and report
to the Congress on the current system of screening passengers
and baggage traveling in passenger rail service between the
United States and Canada. The study shall address the
feasibility for expediting that screening through pre-clearance
procedures now used for airline passengers, or screening
passengers while on board Amtrak trains.
Section 405. Passenger, baggage, and cargo screening.
This section requires the Secretary of Homeland Security to
study the cost and feasibility of rail passenger and baggage
screening and report to the appropriate committees of Congress
1 year from the date of enactment.
TITLE V--RAIL BOND AUTHORITY
Section 501. Intercity rail facility bonds.
This section allows the Secretary to designate bonds to be
issued by a State, a group of States, or by Amtrak. These bonds
are for projects that make a substantial contribution to
providing the infrastructure and equipment to complete or
improve a rail transportation corridor. The amount of bonds
designated under this section for each of the fiscal years 2006
through 2015 shall not exceed $1.3 billion. It is important to
note that this section simply governs how the Secretary would
administer such a bond program. The legislative language
required to authorize the bonds, which is under the
jurisdiction of the Senate Finance Committee, is not included
here.
Rollcall Votes in Committee
By a rollcall vote of 17 yeas and 2 nays as follows, the bill
was ordered reported subject to amendment:
YEAS--17 NAYS--2
Mr. Burns Mr. McCain
Mr. Lott Mr. DeMint
Mrs. Hutchison
Ms. Snowe\1\
Mr. Smith
Mr. Allen
Mr. Inouye
Mr. Rockefeller\1\
Mr. Kerry\1\
Mr. Dorgan\1\
Mrs. Boxer\1\
Mr. Nelson of Florida
Ms. Cantwell
Mr. Lautenberg
Mr. Nelson of Nebraska
Mr. Pryor
Mr. Stevens
\1\By proxy
Senator McCain offered an amendment to eliminate the rail
bond authority granted under title V of the bill. By a rollcall
vote of 7 yeas and 15 nays as follows, the amendment was
defeated:
YEAS--7 NAYS--15
Mr. McCain Mr. Burns
Mr. Smith Mr. Lott
Mr. Ensign Mrs. Hutchison
Mr. Allen Ms. Snowe
Mr. Sununu\1\ Mr. Inouye
Mr. DeMint Mr. Rockefeller\1\
Mr. Vitter Mr. Kerry\1\
Mr. Dorgan\1\
Mrs. Boxer
Mr. Nelson of Florida
Ms. Cantwell
Mr. Lautenberg
Mr. Nelson of Nebraska\1\
Mr. Pryor
Mr. Stevens
\1\By proxy
Senator Lott offered an amendment in the nature of a
substitute. On a rollcall vote of 18 yeas and 4 nays as
follows, the amendment was adopted:
YEAS--18 NAYS--4
Mr. Burns Mr. McCain\1\
Mr. Lott Mr. Ensign\1\
Mrs. Hutchison Mr. Sununu\1\
Ms. Snowe Mr. DeMint\1\
Mr. Smith
Mr. Allen
Mr. Vitter
Mr. Inouye
Mr. Rockefeller\1\
Mr. Kerry\1\
Mr. Dorgan
Mrs. Boxer
Mr. Nelson of Florida
Ms. Cantwell
Mr. Lautenberg
Mr. Nelson of Nebraska\1\
Mr. Pryor
Mr. Stevens
\1\By proxy
Additional, Supplemental, or Minority Views deg.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new material is printed
in italic, existing law in which no change is proposed is shown
in roman):
AMTRAK REFORM AND ACCOUNTABILITY ACT OF 1997
[SEC. 204. SUNSET TRIGGER.
[49 U.S.C. 24304 note]
[(a) In general.--If at any time more than 2 years after the
date of enactment of this Act and implementation of the
financial plan referred to in section 24104(d) of title 49,
United States Code, as amended by section 201 of this Act, the
Amtrak Reform Council finds that--
[(1) Amtrak's business performance will prevent it
from meeting the financial goals set forth in section
24104(d) of title 49, United States Code, as amended by
section 201 of this Act; or
[(2) Amtrak will require operating grant funds after
the fifth anniversary of the date of enactment of this
Act, then the Council shall immediately notify the
President, the Committee on Commerce, Science, and
Transportation of the United States Senate, and the
Committee on Transportation and Infrastructure of the
United States House of Representatives.
[(b) Factors considered.--In making a finding under
subsection (a), the Council shall take into account--
[(1) Amtrak's performance;
[(2) the findings of the independent assessment
conducted under section 202;
[(3) the level of Federal funds made available for
carrying out the financial plan referred to in section
24104(d) of title 49, United States Code, as amended by
section 201 of this Act; and
[(4) Acts of God, national emergencies, and other
events beyond the reasonable control of Amtrak.
[(c) Action plan.--Within 90 days after the Council makes a
finding under subsection (a)--
[(1) it shall develop and submit to the Congress an
action plan for a restructured and rationalized
national intercity rail passenger system; and
[(2) Amtrak shall develop and submit to the Congress
an action plan for the complete liquidation of Amtrak,
after having the plan reviewed by the Inspector General
of the Department of Transportation and the General
Accounting Office for accuracy and reasonableness.
[SEC. 205. SENATE PROCEDURE FOR CONSIDERATION OF RESTRUCTURING AND
LIQUIDATION PLANS.
[49 U.S.C. 24101 note]
[(a) In general.--If, within 90 days (not counting any day on
which either House is not in session) after a restructuring
plan is submitted to the House of Representatives and the
Senate by the Amtrak Reform Council under section 204 of this
Act, an implementing Act with respect to a restructuring plan
(without regard to whether it is the plan submitted) has not
been passed by the Congress, then a liquidation disapproval
resolution shall be introduced in the Senate by the Majority
Leader of the Senate, for himself and the Minority Leader of
the Senate, or by Members of the Senate designated by the
Majority Leader and Minority Leader of the Senate. The
liquidation disapproval resolution shall be held at the desk at
the request of the Presiding Officer.
[(b) Consideration in the Senate.--
[(1) Referral and reporting.--A liquidation
disapproval resolution introduced in the Senate shall
be placed directly and immediately on the Calendar.
[(2) Implementing resolution from House.--When the
Senate receives from the House of Representatives a
liquidation disapproval resolution, the resolution
shall not be referred to committee and shall be placed
on the Calendar.
[(3) Consideration of single liquidation disapproval
resolution.--After the Senate has proceeded to the
consideration of a liquidation disapproval resolution
under this subsection, then no other liquidation
disapproval resolution originating in that same House
shall be subject to the procedures set forth in this
section.
[(4) Amendments.--No amendment to the resolution is
in order except an amendment that is relevant to
liquidation of Amtrak. Consideration of the resolution
for amendment shall not exceed one hour excluding time
for recorded votes and quorum calls. No amendment shall
be subject to further amendment, except for perfecting
amendments.
[(5) Motion nondebatable.--A motion to proceed to
consideration of a liquidation disapproval resolution
under this subsection shall not be debatable. It shall
not be in order to move to reconsider the vote by which
the motion to proceed was adopted or rejected, although
subsequent motions to proceed may be made under this
paragraph.
[(6) Limit on consideration.--
[(A) After no more than 20 hours of
consideration of a liquidation disapproval
resolution, the Senate shall proceed, without
intervening action or debate (except as
permitted under paragraph (9)), to vote on the
final disposition thereof to the exclusion of
all amendments not then pending and to the
exclusion of all motions, except a motion to
reconsider or table.
[(B) The time for debate on the liquidation
disapproval resolution shall be equally divided
between the Majority Leader and the Minority
Leader or their designees.
[(7) Debate of amendments.--Debate on any amendment
to a liquidation disapproval resolution shall be
limited to one hour, equally divided and controlled by
the Senator proposing the amendment and the majority
manager, unless the majority manager is in favor of the
amendment, in which case the minority manager shall be
in control of the time in opposition.
[(8) No motion to recommit.--A motion to recommit a
liquidation disapproval resolution shall not be in
order.
[(9) Disposition of Senate resolution.--If the Senate
has read for the third time a liquidation disapproval
resolution that originated in the Senate, then it shall
be in order at any time thereafter to move to proceed
to the consideration of a liquidation disapproval
resolution for the same special message received from
the House of Representatives and placed on the Calendar
pursuant to paragraph (2), strike all after the
enacting clause, substitute the text of the Senate
liquidation disapproval resolution, agree to the Senate
amendment, and vote on final disposition of the House
liquidation disapproval resolution, all without any
intervening action or debate.
[(10) Consideration of House message.--Consideration
in the Senate of all motions, amendments, or appeals
necessary to dispose of a message from the House of
Representatives on a liquidation disapproval resolution
shall be limited to not more than 4 hours. Debate on
each motion or amendment shall be limited to 30
minutes. Debate on any appeal or point of order that is
submitted in connection with the disposition of the
House message shall be limited to 20 minutes. Any time
for debate shall be equally divided and controlled by
the proponent and the majority manager, unless the
majority manager is a proponent of the motion,
amendment, appeal, or point of order, in which case the
minority manager shall be in control of the time in
opposition.
[(c) Consideration in conference.--
[(1) Convening of conference.--In the case of
disagreement between the two Houses of Congress with
respect to a liquidation disapproval resolution passed
by both Houses, conferees should be promptly appointed
and a conference promptly convened, if necessary.
[(2) Senate consideration.--Consideration in the
Senate of the conference report and any amendments in
disagreement on a liquidation disapproval resolution
shall be limited to not more than 4 hours equally
divided and controlled by the Majority Leader and the
Minority Leader or their designees. A motion to
recommit the conference report is not in order.
[(d) Definitions.--For purposes of this section--
[(1) Liquidation disapproval resolution.--The term
``liquidation disapproval resolution'' means only a
resolution of either House of Congress which is
introduced as provided in subsection (a) with respect
to the liquidation of Amtrak.
[(2) Restructuring plan.--The term ``restructuring
plan'' means a plan to provide for a restructured and
rationalized national intercity rail passenger
transportation system.
[(e) Rules of Senate.--This section is enacted by the
Congress--
[(1) as an exercise of the rulemaking power of the
Senate, and as such they are deemed a part of the rules
of the Senate, but applicable only with respect to the
procedure to be followed in the Senate in the case of a
liquidation disapproval resolution; and they supersede
other rules only to the extent that they are
inconsistent therewith; and
[(2) with full recognition of the constitutional
right of the Senate to change the rules (so far as
relating to the procedure of the Senate) at any time,
in the same manner and to the same extent as in the
case of any other rule of the Senate.]
* * * * * * *
SEC. 415. FINANCIAL POWERS.
[49 U.S.C. 24304 note]
(a) [Executed amendments]
[(b) Redemption of common stock.--Amtrak shall, before
October 1, 2002, redeem all common stock previously issued, for
the fair market value of such stock.]
(c) Elimination of liquidation preference and voting rights
of preferred stock.--
(1)(A) Preferred stock of Amtrak held by the
Secretary of Transportation shall confer no liquidation
preference.
(B) Subparagraph (A) shall take effect 90
days after the date of the enactment of this
Act.
(2)(A) Preferred stock of Amtrak held by the
Secretary of Transportation shall confer no voting
rights.
(B) Subparagraph (A) shall take effect 60
days after the date of the enactment of this
Act.
TITLE 49, UNITED STATES CODE
Subtitle I. Department of Transportation
CHAPTER 1. ORGANIZATION
Sec. 103. Federal Railroad Administration
(a) In General._The Federal Railroad Administration is an
administration in the Department of Transportation. [To carry
out all railroad safety laws of the United States, the
Administration is divided on a geographical basis into at least
8 safety offices. The Secretary of Transportation is
responsible for all acts taken under those laws and for
ensuring that the laws are uniformly administered and enforced
among the safety offices.]
(b) Administrator._The head of the Administration is the
Administrator who is appointed by the President, by and with
the advice and consent of the Senate. The Administrator reports
directly to the Secretary.
(c) Safety.--To carry out all railroad safety laws of the
United States, the Administration is divided on a geographical
basis into at least 8 safety offices. The Secretary of
Transportation is responsible for all acts taken under those
laws and for ensuring that the laws are uniformly administered
and enforced among the safety offices.
[(c)] (d) Powers and Duties._The Administrator shall carry
out--
(1) duties and powers related to railroad safety
vested in the Secretary by section 20134(c) and
chapters 203-211 of this title, and chapter 213 of this
title in carrying out chapters 203-211; [and]
(2) the duties and powers related to railroad policy
and development under subsection (e); and
[(2)] (3) additional duties and powers prescribed by
the Secretary.
[(d)] (e) Transfers of Duty._A duty or power specified by
subsection (c)(1) of this section may be transferred to another
part of the Department only when specifically provided by law
or a reorganization plan submitted under chapter 9 of title 5.
A decision of the Administrator in carrying out those duties or
powers and involving notice and hearing required by law is
administratively final.
[(e)] (f) Contracts, grants, leases, cooperative agreements,
and similar transactions._ Subject to the provisions of
subtitle I of title 40 and title III of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 251 et
seq.), the Secretary of Transportation may make, enter into,
and perform such contracts, grants, leases, cooperative
agreements, and other similar transactions with Federal or
other public agencies (including State and local governments)
and private organizations and persons, and make such payments,
by way of advance or reimbursement, as the Secretary may
determine to be necessary or appropriate to carry out functions
of the Federal Railroad Administration. [The authority of the
Secretary granted by this subsection shall be carried out by
the Administrator. Notwithstanding any other provision of this
chapter, no authority to enter into contracts or to make
payments under this subsection shall be effective, except as
provided for in appropriations Acts.]
(g) Additional Duties of the Administrator.--The
Administrator shall--
(1) provide assistance to States in developing State
rail plans prepared under chapter 225 and review all
State rail plans submitted under that section;
(2) develop a long range national rail plan that is
consistent with approved State rail plans and the rail
needs of the Nation, as determined by the Secretary in
order to promote an integrated, cohesive, efficient,
and optimized national rail system for the movement of
goods and people;
(3) develop a preliminary national rail plan within a
year after the date of enactment of the Passenger Rail
Investment and Improvement Act of 2005;
(4) develop and enhance partnerships with the freight
and passenger railroad industry, States, and the public
concerning rail development;
(5) support rail intermodal development and high-
speed rail development, including high speed rail
planning;
(6) ensure that programs and initiatives developed
under this section benefit the public and work toward
achieving regional and national transportation goals;
and
(7) facilitate and coordinate efforts to assist
freight and passenger rail carriers, transit agencies
and authorities, municipalities, and States in
passenger-freight service integration on shared rights
of way by providing neutral assistance at the joint
request of affected rail service providers and
infrastructure owners relating to operations and
capacity analysis, capital requirements, operating
costs, and other research and planning related to
corridors shared by passenger or commuter rail service
and freight rail operations.
(h) Performance Goals and Reports.--
(1) Performance goals.--In conjunction with the
objectives established and activities undertaken under
section 103(e) of this title, the Administrator shall
develop a schedule for achieving specific, measurable
performance goals.
(2) Resource needs.--The strategy and annual plans
shall include estimates of the funds and staff
resources needed to accomplish each goal and the
additional duties required under section 103(e).
(3) Submission with president's budget.--Beginning
with fiscal year 2007 and each fiscal year thereafter,
the Secretary shall submit to Congress, at the same
time as the President's budget submission, the
Administration's performance goals and schedule
developed under paragraph (1), including an assessment
of the progress of the Administration toward achieving
its performance goals.
Subtitle V. Rail Programs
Part B--Assistance
CHAPTER 225. STATE RAIL PLANS AND HIGH PRIORITY PROJECTS
Sec.
22501. Definitions
22502. Authority
22503. Purposes
22504. Transparency; coordination; review
22505. Content
22506. Review
Sec. 22501. Definitions
In this subchapter:
(1) Private benefit.--
(A) In general.--The term ``private
benefit''--
(i) means a benefit accrued to a
person or private entity, other than
the National Railroad Passenger
Corporation, that directly improves the
economic and competitive condition of
that person or entity through improved
assets, cost reductions, service
improvements, or any other means as
defined by the Secretary; and
(ii) shall be determined on a
project-by-project basis, based upon an
agreement between the parties.
(B) Consultation.--The Secretary may seek the
advice of the States and rail carriers in
further defining this term.
(2) Public benefit.--
(A) In general.--The term ``public
benefit''--
(i) means a benefit accrued to the
public in the form of enhanced mobility
of people or goods, environmental
protection or enhancement, congestion
mitigation, enhanced trade and economic
development, improved air quality or
land use, more efficient energy use,
enhanced public safety or security,
reduction of public expenditures due to
improved transportation efficiency or
infrastructure preservation, and any
other positive community effects as
defined by the Secretary; and
(ii) shall be determined on a
project-by-project basis, based upon an
agreement between the parties.
(B) Consultation.--The Secretary may seek the
advice of the States and rail carriers in
further defining this term.
(3) State.--The term ``State'' means any of the 50
States and the District of Columbia.
(4) State rail transportation authority.--The term
``State rail transportation authority'' means the State
agency or official responsible under the direction of
the Governor of the State or a State law for
preparation, maintenance, coordination, and
administration of the State rail plan.''.
Sec. 22502. Authority
(a) In General.--Each State may prepare and maintain a State
rail plan in accordance with the provisions of this subchapter.
(b) Requirements.--For the preparation and periodic revision
of a State rail plan, a State shall--
(1) establish or designate a State rail
transportation authority to prepare, maintain,
coordinate, and administer the plan;
(2) establish or designate a State rail plan approval
authority to approve the plan;
(3) submit the State's approved plan to the Secretary
of Transportation for review; and
(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for reapproval by
the Secretary.
Sec. 22503. Purposes
(a) Purposes.--The purposes of a State rail plan are as
follows:
(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
(2) To establish the period covered by the State rail
plan.
(3) To present priorities and strategies to enhance
rail service in the State that benefits the public.
(4) To serve as the basis for Federal and State rail
investments within the State.
(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs and
set forth rail transportation's role within the State
transportation system.
Sec. 22504. Transparency; coordination; review
(a) Preparation.--A State shall provide adequate and
reasonable notice and opportunity for comment and other input
to the public, rail carriers, commuter and transit authorities
operating in, or affected by rail operations within the State,
units of local government, and other interested parties in the
preparation and review of its State rail plan.
(b) Intergovernmental Coordination.--A State shall review the
freight and passenger rail service activities and initiatives
by regional planning agencies, regional transportation
authorities, and municipalities within the State, or in the
region in which the State is located, while preparing the plan,
and shall include any recommendations made by such agencies,
authorities, and municipalities as deemed appropriate by the
State.
Sec. 22505. Content
(a) In General.--Each State rail plan shall contain the
following:
(1) An inventory of the existing overall rail
transportation system and rail services and facilities
within the State and an analysis of the role of rail
transportation within the State's surface
transportation system.
(2) A review of all rail lines within the State,
including proposed high speed rail corridors and
significant rail line segments not currently in
service.
(3) A statement of the State's passenger rail service
objectives, including minimum service levels, for rail
transportation routes in the State.
(4) A general analysis of rail's transportation,
economic, and environmental impacts in the State,
including congestion mitigation, trade and economic
development, air quality, land-use, energy-use, and
community impacts.
(5) A long-range rail investment program for current
and future freight and passenger infrastructure in the
State that meets the requirements of subsection (b).
(6) A statement of public financing issues for rail
projects and service in the State, including a list of
current and prospective public capital and operating
funding resources, public subsidies, State taxation,
and other financial policies relating to rail
infrastructure development.
(7) An identification of rail infrastructure issues
within the State that reflects consultation with all
relevant stake holders.
(8) A review of major passenger and freight
intermodal rail connections and facilities within the
State, including seaports, and prioritized options to
maximize service integration and efficiency between
rail and other modes of transportation within the
State.
(9) A review of publicly funded projects within the
State to improve rail transportation safety and
security, including all major projects funded under
section 130 of title 23.
(10) A performance evaluation of passenger rail
services operating in the State, including possible
improvements in those services, and a description of
strategies to achieve those improvements.
(11) A compilation of studies and reports on high-
speed rail corridor development within the State not
included in a previous plan under this subchapter, and
a plan for funding any recommended development of such
corridors in the State.
(12) A statement that the State is in compliance with
the requirements of section 22102.
(b) Long-Range Service and Investment Program.--
(1) Program content.--A long-range rail investment
program included in a State rail plan under subsection
(a)(5) shall include the following matters:
(A) A list of any rail capital projects
expected to be undertaken or supported in whole
or in part by the State.
(B) A detailed funding plan for those
projects.
(2) Project list content.--The list of rail capital
projects shall contain--
(A) a description of the anticipated public
and private benefits of each such project; and
(B) a statement of the correlation between--
(i) public funding contributions for
the projects; and
(ii) the public benefits.
(3) Considerations for project list.--In preparing
the list of freight and intercity passenger rail
capital projects, a State rail transportation authority
should take into consideration the following matters:
(A) Contributions made by non-Federal and
non-State sources through user fees, matching
funds, or other private capital involvement.
(B) Rail capacity and congestion effects.
(C) Effects to highway, aviation, and
maritime capacity, congestion, or safety.
(D) Regional balance.
(E) Environmental impact.
(F) Economic and employment impacts.
(G) Projected ridership and other service
measures for passenger rail projects.
Sec. 22506. Review
The Secretary shall prescribe procedures for States to submit
State rail plans for review under this title, including
standardized format and data requirements.
Part C--Passenger Transportation
CHAPTER 241. GENERAL
Sec. 24102. Definitions
In this part--
(1) ``auto-ferry transportation'' means intercity
rail passenger transportation--
(A) of automobiles or recreational vehicles
and their occupants; and
(B) when space is available, of used
unoccupied vehicles.
[(2) ``basic system'' means the system of intercity
rail passenger transportation designated by the
Secretary of Transportation under section 4 of the
Amtrak Improvement Act of 1978 and approved by
Congress, and transportation required to be provided
under section 24705(a) of this title and section 4(g)
of the Act, including changes in the system or
transportation that Amtrak makes using the route and
service criteria.]
[(3)] (2) ``commuter authority'' means a State,
local, or regional entity established to provide, or
make a contract providing for, commuter rail passenger
transportation.
[(4)] (3) ``commuter rail passenger transportation''
means short-haul rail passenger transportation in
metropolitan and suburban areas usually having reduced
fare, multiple-ride, and commuter tickets and morning
and evening peak period operations.
[(5)] (4) ``intercity rail passenger transportation''
means rail passenger transportation, except commuter
rail passenger transportation.
(5) ``national rail passenger transportation system''
means--
(A) the segment of the Northeast Corridor
between Boston, Massachusetts and Washington,
D.C.;
(B) rail corridors that have been designated
by the Secretary of Transportation as high-
speed corridors (other than corridors described
in subparagraph (A)), but only after they have
been improved to permit operation of high-speed
service;
(C) long-distance routes of more than 750
miles between endpoints operated by Amtrak as
of the date of enactment of the Passenger Rail
Investment and Improvement Act of 2005; and
(D) short-distance corridors, or routes of
not more than 750 miles between endpoints,
operated by--
(i) Amtrak; or
(ii) another rail carrier that
receives funds under chapter 244.
(6) ``Northeast Corridor'' means Connecticut,
Delaware, the District of Columbia, Maryland,
Massachusetts, New Jersey, New York, Pennsylvania, and
Rhode Island.
(7) ``rail carrier'' means a person, including a unit
of State or local government, providing rail
transportation for compensation.
(8) ``rate'' means a rate, fare, or charge for rail
transportation.
(9) ``regional transportation authority'' means an
entity established to provide passenger transportation
in a region.
CHAPTER 243. AMTRAK
[Sec. 24302. Board of directors
[(a) Reform Board.--
[(1) Establishment and duties.--The Reform Board
described in paragraph (2) shall assume the
responsibilities of the Board of Directors of Amtrak by
March 31, 1998, or as soon thereafter as at least 4
members have been appointed and qualified. The Board
appointed under prior law shall be abolished when the
Reform Board assumes such responsibilities.
[(2) Membership.--
[(A)(i) The Reform Board shall consist of 7
voting members appointed by the President, by
and with the advice and consent of the Senate,
for a term of 5 years.
[(ii) Notwithstanding clause (i), if
the Secretary of Transportation is
appointed to the Reform Board, such
appointment shall not be subject to the
advice and consent of the Senate. If
appointed, the Secretary may be
represented at Board meetings by his
designee.
[(B) In selecting the individuals described
in subparagraph (A) for nominations for
appointments to the Reform Board, the President
should consult with the Speaker of the House of
Representatives, the Minority Leader of the
House of Representatives, the Majority Leader
of the Senate, and the Minority Leader of the
Senate.
[(C) Appointments under subparagraph (A)
shall be made from among individuals who--
[(i) have technical qualifications,
professional standing, and demonstrated
expertise in the fields of
transportation or corporate or
financial management;
[(ii) are not representatives of rail
labor or rail management; and
[(iii) in the case of 6 of the 7
individuals selected, are not employees
of Amtrak or of the United States.
[(D) The President of Amtrak shall serve as
an ex officio, nonvoting member of the Reform
Board.
[(3) Confirmation procedure in Senate.--
[(A) This paragraph is enacted by the
Congress--
[(i) as an exercise of the rulemaking
power of the Senate, and as such it is
deemed a part of the rules of the
Senate, but applicable only with
respect to the procedure to be followed
in the Senate in the case of a motion
to discharge; and it supersedes other
rules only to the extent that it is
inconsistent therewith; and
[(ii) with full recognition of the
constitutional right of the Senate to
change the rules (so far as relating to
the procedure of the Senate) at any
time, in the same manner and to the
same extent as in the case of any other
rule of the Senate.
[(B) If, by the first day of June on which
the Senate is in session after a nomination is
submitted to the Senate under this section, the
committee to which the nomination was referred
has not reported the nomination, then it shall
be discharged from further consideration of the
nomination and the nomination shall be placed
on the Executive Calendar.
[(C) It shall be in order at any time
thereafter to move to proceed to the
consideration of the nomination without any
intervening action or debate.
[(D) After no more than 10 hours of debate on
the nomination, which shall be evenly divided
between, and controlled by, the Majority Leader
and the Minority Leader, the Senate shall
proceed without intervening action to vote on
the nomination.
[(b) Board of Directors.--Five years after the establishment
of the Reform Board under subsection (a), a Board of Directors
shall be selected--
[(1) if Amtrak has, during the then current fiscal
year, received Federal assistance, in accordance with
the procedures set forth in subsection (a)(2); or
[(2) if Amtrak has not, during the then current
fiscal year, received Federal assistance, pursuant to
bylaws adopted by the Reform Board (which shall provide
for employee representation), and the Reform Board
shall be dissolved.
[(c) Authority to recommend plan.--The Reform Board shall
have the authority to recommend to the Congress a plan to
implement the recommendations of the 1997 Working Group on
Inter- City Rail regarding the transfer of Amtrak's
infrastructure assets and responsibilities to a new separately
governed corporation.]
Sec. 24302. Board of directors
(a) Composition and Terms.--
(1) The Board of Directors of Amtrak is composed of
the following 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, and passenger air
transportation businesses, or representatives
of users of passenger rail transportation or
State government.
(2) In selecting individuals described in paragraph
(1) for nominations for appointments to the Board, the
President shall consult with the Speaker of the House
of Representatives, the Minority Leader of the House of
Representatives, the Majority Leader of the Senate, and
the Minority Leader of the Senate and try to provide
adequate and balanced representation of the major
geographic regions of the United States served by
Amtrak.
(3) An individual appointed under paragraph (1)(C) of
this subsection serves for 5 years or until the
individual's successor is appointed and qualified. Not
more than 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 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 is entitled to $300 a day when
performing Board duties. Each Director is entitled to
reimbursement for necessary travel, reasonable secretarial and
professional staff support, and subsistence expenses incurred
in attending Board meetings.
(c) Vacancies.--A vacancy on the Board is filled in the same
way as the original selection, except that an individual
appointed by the President of the United States under
subsection (a)(1)(C) of this section to fill a vacancy
occurring before the end of the term for which the predecessor
of that individual was appointed is appointed for the remainder
of that term. A vacancy required to be filled by appointment
under subsection (a)(1)(C) must be filled not later than 120
days after the vacancy occurs.
(d) Quorum.--A majority of the members serving shall
constitute a quorum for doing business.
(e) Bylaws.--The Board may adopt and amend bylaws governing
the operation of Amtrak. The bylaws shall be consistent with
this part and the articles of incorporation.
* * * * * * *
Sec. 24308. Use of facilities and providing services to Amtrak
(a) General authority.--
(1) Amtrak may make an agreement with a rail carrier
or regional transportation authority to use facilities
of, and have services provided by, the carrier or
authority under terms on which the parties agree. The
terms shall include a penalty for untimely performance.
(2)(A) If the parties cannot agree and if the
[Interstate Commerce Commission] Surface Transportation
Board finds it necessary to carry out this part, the
[Commission] Board shall--
(i) order that the facilities be made
available and the services provided to
Amtrak; and
(ii) prescribe reasonable terms and
compensation for using the facilities
and providing the services.
(B) When prescribing reasonable compensation
under subparagraph (A) of this paragraph, the
[Commission] Board shall consider quality of
service as a major factor when determining
whether, and the extent to which, the amount of
compensation shall be greater than the
incremental costs of using the facilities and
providing the services.
(C) The [Commission] Board shall decide the
dispute not later than 90 days after Amtrak
submits the dispute to the [Commission] Board.
(3) Amtrak's right to use the facilities or have the
services provided is conditioned on payment of the
compensation. If the compensation is not paid promptly,
the rail carrier or authority entitled to it may bring
an action against Amtrak to recover the amount owed.
(4) Amtrak shall seek immediate and appropriate legal
remedies to enforce its contract rights when track
maintenance on a route over which Amtrak operates falls
below the contractual standard.
(b) Operating during emergencies.--To facilitate operation by
Amtrak during an emergency, the [Commission] Board, on
application by Amtrak, shall require a rail carrier to provide
facilities immediately during the emergency. The [Commission]
Board then shall promptly prescribe reasonable terms, including
indemnification of the carrier by Amtrak against personal
injury risk to which the carrier may be exposed. The rail
carrier shall provide the facilities for the duration of the
emergency.
(c) Preference over freight transportation.--Except in an
emergency, intercity and commuter rail passenger transportation
provided by or for Amtrak has preference over freight
transportation in using a rail line, junction, or crossing
unless the Secretary of Transportation orders otherwise under
this subsection. A rail carrier affected by this subsection may
apply to the [Secretary] Board for relief. If the [Secretary,]
Board, after an opportunity for a hearing under section 553 of
title 5, decides that preference for intercity and commuter
rail passenger transportation materially will lessen the
quality of freight transportation provided to shippers, the
[Secretary] Board shall establish the rights of the carrier and
Amtrak on reasonable terms.
(d) Accelerated speeds.--If a rail carrier refuses to allow
accelerated speeds on trains operated by or for Amtrak, Amtrak
may apply to the Secretary for an order requiring the carrier
to allow the accelerated speeds. The Secretary shall decide
whether accelerated speeds are unsafe or impracticable and
which improvements would be required to make accelerated speeds
safe and practicable. After an opportunity for a hearing, the
Secretary shall establish the maximum allowable speeds of
Amtrak trains on terms the Secretary decides are reasonable.
(e) Additional trains.--
(1) When a rail carrier does not agree to provide, or
allow Amtrak to provide, for the operation of
additional trains over a rail line of the carrier,
Amtrak may apply to the Secretary for an order
requiring the carrier to provide or allow for the
operation of the requested trains. After a hearing on
the record, the Secretary may order the carrier, within
60 days, to provide or allow for the operation of the
requested trains on a schedule based on legally
permissible operating times. However, if the Secretary
decides not to hold a hearing, the Secretary, not later
than 30 days after receiving the application, shall
publish in the Federal Register the reasons for the
decision not to hold the hearing.
(2) The Secretary shall consider--
(A) when conducting a hearing, whether an
order would impair unreasonably freight
transportation of the rail carrier, with the
carrier having the burden of demonstrating that
the additional trains will impair the freight
transportation; and
(B) when establishing scheduled running
times, the statutory goal of Amtrak to
implement schedules that attain a system-wide
average speed of at least 60 miles an hour that
can be adhered to with a high degree of
reliability and passenger comfort.
(3) Unless the parties have an agreement that
establishes the compensation Amtrak will pay the
carrier for additional trains provided under an order
under this subsection, the [Commission] Board shall
decide the dispute under subsection (a) of this
section.
(f) Passenger Train Performance and Other Standards.--
(1) Investigation of substandard performance.--If the
on-time performance of any intercity passenger train
averages less than 80 percent for any 2 consecutive
calendar quarters, or the service quality of intercity
train operations for which minimum standards are
established under section 208 of the Passenger Rail
Investment and Improvement Act of 2005 fails to meet
those standards for 2 consecutive calendar quarters,
the Surface Transportation Board shall investigate
whether, and to what extent, delays or failure to
achieve minimum standards are due to causes that could
reasonably be addressed by a rail carrier over the
tracks of which the intercity passenger train operates
or reasonably addressed by the intercity passenger rail
operator. In carrying out such an investigation, the
Board shall obtain information from all parties
involved and make recommendations regarding reasonable
measures to improve the service, quality, and on-time
performance of the train.
(2) Problems caused by host rail carrier.--If the
Board determines that delays or failures to achieve
minimum standards investigated under paragraph (1) are
attributable to a rail carrier's failure to provide
preference to Amtrak over freight transportation under
subsection (c), then the Board shall enforce its
recommendations for relief under this section.
(3) Penalties.--
(A) In general.--The Board shall publish a
schedule of penalties which will--
(A) fairly reflect the extent to which Amtrak
suffers financial loss as a result of host rail
carrier delays or failure to achieve minimum
standards; and
(B) will adequately deter future actions
which may reasonably be expected to be likely
to result in delays to Amtrak.
(B) Assessment.--The Board may assess these
penalties upon a host rail carrier.
(C) Use.--The Board shall make any amounts
received as penalties under this paragraph
available to Amtrak.
* * * * * * *
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 Passenger Rail Investment and
Improvement Act of 2005, Amtrak shall submit to the Chairman of
the National Transportation Safety Board and the Secretary of
Transportation a plan for addressing the needs of the families
of passengers involved in any rail passenger accident involving
an Amtrak intercity train and resulting in a loss of life.
(b) Contents of Plans.--The plan to be submitted by Amtrak
under subsection (a) shall include, at a minimum, the
following:
(1) A process by which Amtrak will maintain and
provide to the National Transportation Safety Board and
the Secretary of Transportation, immediately upon
request, a list (which is based on the best available
information at the time of the request) of the names of
the passengers aboard the train (whether or not such
names have been verified), and will periodically update
the list. The plan shall include a procedure, with
respect to unreserved trains and passengers not holding
reservations on other trains, for Amtrak to use
reasonable efforts to ascertain the number and names of
passengers aboard a train involved in an accident.
(2) A plan for creating and publicizing a reliable,
toll-free telephone number within 4 hours after such an
accident occurs, and for providing staff, to handle
calls from the families of the passengers.
(3) A process for notifying the families of the
passengers, before providing any public notice of the
names of the passengers, by suitably trained
individuals.
(4) A process for providing the notice described in
paragraph (2) to the family of a passenger as soon as
Amtrak has verified that the passenger was aboard the
train (whether or not the names of all of the
passengers have been verified).
(5) A process by which the family of each passenger
will be consulted about the disposition of all remains
and personal effects of the passenger within Amtrak's
control; that any possession of the passenger within
Amtrak's control will be returned to the family unless
the possession is needed for the accident investigation
or any criminal investigation; and that any unclaimed
possession of a passenger within Amtrak's control will
be retained by the rail passenger carrier for at least
18 months.
(6) A process by which the treatment of the families
of nonrevenue passengers will be the same as the
treatment of the families of revenue passengers.
(7) An assurance that Amtrak will provide adequate
training to its employees and agents to meet the needs
of survivors and family members following an accident.
(c) Use of Information.--The National Transportation Safety
Board, the Secretary of Transportation, and Amtrak may not
release to any person information on a list obtained under
subsection (b)(1) but may provide information on the list about
a passenger to the family of the passenger to the extent that
the Board or Amtrak considers appropriate.
(d) Limitation on Liability.--Amtrak shall not be liable for
damages in any action brought in a Federal or State court
arising out of the performance of Amtrak in preparing or
providing a passenger list, or in providing information
concerning a train reservation, pursuant to a plan submitted by
Amtrak under subsection (b), unless such liability was caused
by Amtrak's conduct.
(e) Limitation on Statutory Construction.--Nothing in this
section may be construed as limiting the actions that Amtrak
may take, or the obligations that Amtrak may have, in providing
assistance to the families of passengers involved in a rail
passenger accident.
(f) Funding.--There are authorized to be appropriated to the
Secretary of Transportation for the use of Amtrak $500,000 for
fiscal year 2006 to carry out this section. Amounts made
available pursuant to this subsection shall remain available
until expended.
CHAPTER 244--INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL
ASSISTANCE
Sec.
24401. Definitions.
24402. Capital investment grants to support intercity passenger rail
service.
24403. Project management oversight.
24404. Use of capital grants to finance first-dollar liability of grant
project.
24405. Grant conditions.
Sec. 24401. Definitions
In this subchapter:
(1) Applicant.--The term ``applicant'' means a State
(including the District of Columbia), a group of
States, an Interstate Compact, or a public agency
established by one or more States and having
responsibility for providing intercity passenger rail
service.
(2) Capital project.--The term ``capital project''
means a project or program in a State rail plan
developed under chapter 225 of this title for--
(A) acquiring, constructing, improving, or
inspecting equipment or a facility for use in
or for the primary benefit of intercity
passenger rail service, expenses incidental to
the acquisition or construction (including
designing, engineering, location surveying,
mapping, environmental studies, and acquiring
rights-of-way), payments for the capital
portions of rail trackage rights agreements,
highway-rail grade crossing improvements
related to intercity passenger rail service,
security, mitigating environmental impacts,
communication and signalization improvements,
relocation assistance, acquiring replacement
housing sites, and acquiring, constructing,
relocating, and rehabilitating replacement
housing;
(B) rehabilitating, remanufacturing or
overhauling rail rolling stock and facilities
used primarily in intercity passenger rail
service;
(C) costs associated with developing State
rail plans; and
(D) the first-dollar liability costs for
insurance related to the provision of intercity
passenger rail service under section 24404.
(3) Intercity passenger rail service.--The term
``intercity passenger rail service'' means
transportation services with the primary purpose of
passenger transportation between towns, cities and
metropolitan areas by rail, including high-speed rail,
as defined in section 24102 of title 49, United States
Code.
Sec. 24402. Capital investment grants to support intercity passenger
rail service
(a) General Authority.--
(1) The Secretary of Transportation may make grants
under this section to an applicant to assist in
financing the capital costs of facilities and equipment
necessary to provide or improve intercity passenger
rail transportation.
(2) The Secretary shall require that a grant under
this section be subject to the terms, conditions,
requirements, and provisions the Secretary decides are
necessary or appropriate for the purposes of this
section, including requirements for the disposition of
net increases in value of real property resulting from
the project assisted under this section and shall
prescribe procedures and schedules for the awarding of
grants under this title, including application and
qualification procedures and a record of decision on
applicant eligibility. The Secretary shall issue a
final rule establishing such procedures not later than
90 days after the date of enactment of the Passenger
Rail Investment and Improvement Act of 2005.
(b) Project as Part of State Rail Plan.--
(1) The Secretary may not approve a grant for a
project under this section unless the Secretary finds
that the project is part of a State rail plan developed
under chapter 225 of this title and that the applicant
or recipient has or will have the legal, financial, and
technical capacity to carry out the project,
satisfactory continuing control over the use of the
equipment or facilities, and the capability and
willingness to maintain the equipment or facilities.
(2) An applicant shall provide sufficient information
upon which the Secretary can make the findings required
by this subsection.
(3) If an applicant has not selected the proposed
operator of its service competitively, the applicant
shall provide written justification to the Secretary
showing why the proposed operator is the best, taking
into account price and other factors, and that use of
the proposed operator will not unnecessarily increase
the cost of the project.
(c) Project Selection Criteria.--The Secretary, in selecting
the recipients of financial assistance to be provided under
subsection (a), shall--
(1) require that each proposed project meet all
safety and security requirements that are applicable to
the project under law;
(2) give preference to projects with high levels of
estimated ridership, increased on-time performance,
reduced trip time, additional service frequency, or
other significant service enhancements as measured
against minimum standards developed under section 208
of the Passenger Rail Investment and Improvement Act of
2005;
(3) encourage intermodal connectivity through
projects that provide direct connections between train
stations, airports, bus terminals, subway stations,
ferry ports, and other modes of transportation;
(4) ensure that each project is compatible with, and
is operated in conformance with--
(A) plans developed pursuant to the
requirements of section 135 of title 23, United
States Code; and
(B) the national rail plan (if it is
available); and
(5) favor the following kinds of projects:
(A) Projects that are expected to have a
significant favorable impact on air or highway
traffic congestion, capacity, or safety.
(B) Projects that also improve freight or
commuter rail operations.
(C) Projects that have significant
environmental benefits.
(D) Projects that are--
(i) at a stage of preparation that
all pre-commencement compliance with
environmental protection requirements
has already been completed; and
(ii) ready to be commenced.
(E) Projects with positive economic and
employment impacts.
(F) Projects that encourage the use of
positive train control technologies.
(G) Projects that have commitments of funding
from non-Federal Government sources in a total
amount that exceeds the minimum amount of the
non-Federal contribution required for the
project.
(H) Projects that involve donated property
interests or services.
(I) Projects that are identified by the
Surface Transportation Board as necessary to
improve the on time performance and reliability
of intercity passenger rail under section
24308(f).
(d) Amtrak Eligibility.--To receive a grant under this
section, the National Railroad Passenger Corporation may enter
into a cooperative agreement with 1 or more States to carry out
1 or more projects on a State rail plan's ranked list of rail
capital projects developed under section 22504(a)(5) of this
title.
(e) Letters of Intent, Full Funding Grant Agreements, and
Early Systems Work Agreements.--
(1)(A) The Secretary may issue a letter of intent to
an applicant announcing an intention to obligate, for a
major capital project under this section, an amount
from future available budget authority specified in law
that is not more than the amount stipulated as the
financial participation of the Secretary in the
project.
(B) At least 30 days before issuing a letter
under subparagraph (A) of this paragraph or
entering into a full funding grant agreement,
the Secretary shall notify in writing the
Committee on Transportation and Infrastructure
of the House of Representatives and the
Committee on Commerce, Science, and
Transportation of the Senate and the House and
Senate Committees on Appropriations of the
proposed letter or agreement. The Secretary
shall include with the notification a copy of
the proposed letter or agreement as well as the
evaluations and ratings for the project.
(C) An obligation or administrative
commitment may be made only when amounts are
appropriated.
(2)(A) The Secretary may make a full funding grant
agreement with an applicant. The agreement shall--
(i) establish the terms of
participation by the United States
Government in a project under this
section;
(ii) establish the maximum amount of
Government financial assistance for the
project;
(iii) cover the period of time for
completing the project, including a
period extending beyond the period of
an authorization; and
(iv) make timely and efficient
management of the project easier
according to the law of the United
States.
``(B) An agreement under this paragraph
obligates an amount of available budget
authority specified in law and may include a
commitment, contingent on amounts to be
specified in law in advance for commitments
under this paragraph, to obligate an additional
amount from future available budget authority
specified in law. The agreement shall state
that the contingent commitment is not an
obligation of the Government and is subject to
the availability of appropriations made by
Federal law and to Federal laws in force on or
enacted after the date of the contingent
commitment. Interest and other financing costs
of efficiently carrying out a part of the
project within a reasonable time are a cost of
carrying out the project under a full funding
grant agreement, except that eligible costs may
not be more than the cost of the most favorable
financing terms reasonably available for the
project at the time of borrowing. The applicant
shall certify, in a way satisfactory to the
Secretary, that the applicant has shown
reasonable diligence in seeking the most
favorable financing terms.
(3)(A) The Secretary may make an early systems work
agreement with an applicant if a record of decision
under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) has been issued on the project and
the Secretary finds there is reason to believe--
(i) a full funding grant agreement
for the project will be made; and
(ii) the terms of the work agreement
will promote ultimate completion of the
project more rapidly and at less cost.
(B) A work agreement under this paragraph
obligates an amount of available budget
authority specified in law and shall provide
for reimbursement of preliminary costs of
carrying out the project, including land
acquisition, timely procurement of system
elements for which specifications are decided,
and other activities the Secretary decides are
appropriate to make efficient, long-term
project management easier. A work agreement
shall cover the period of time the Secretary
considers appropriate. The period may extend
beyond the period of current authorization.
Interest and other financing costs of
efficiently carrying out the work agreement
within a reasonable time are a cost of carrying
out the agreement, except that eligible costs
may not be more than the cost of the most
favorable financing terms reasonably available
for the project at the time of borrowing. The
applicant shall certify, in a way satisfactory
to the Secretary, that the applicant has shown
reasonable diligence in seeking the most
favorable financing terms. If an applicant does
not carry out the project for reasons within
the control of the applicant, the applicant
shall repay all Government payments made under
the work agreement plus reasonable interest and
penalty charges the Secretary establishes in
the agreement.
(4) The total estimated amount of future obligations
of the Government and contingent commitments to incur
obligations covered by all outstanding letters of
intent, full funding grant agreements, and early
systems work agreements may be not more than the amount
authorized under section 101(c) of Passenger Rail
Investment and Improvement Act of 2005, less an amount
the Secretary reasonably estimates is necessary for
grants under this section not covered by a letter. The
total amount covered by new letters and contingent
commitments included in full funding grant agreements
and early systems work agreements may be not more than
a limitation specified in law.
(f) Federal Share of Net Project Cost.--
(1)(A) Based on engineering studies, studies of
economic feasibility, and information on the expected
use of equipment or facilities, the Secretary shall
estimate the net project cost.
(B) A grant for the project shall not exceed
80 percent of the project net capital cost.
(C) The Secretary shall give priority in
allocating future obligations and contingent
commitments to incur obligations to grant
requests seeking a lower Federal share of the
project net capital cost.
(2) Up to an additional 20 percent of the required
non-Federal funds may be funded from amounts
appropriated to or made available to a department or
agency of the Federal Government that are eligible to
be expended for transportation.
(3) 50 percent of the average amounts expended by a
State or group of States (including the District of
Columbia) for capital projects to benefit intercity
passenger rail service in fiscal years 2004 and 2005
shall be credited towards the matching requirements for
grants awarded under this section. The Secretary may
require such information as necessary to verify such
expenditures.
(4) 50 percent of the average amounts expended by a
State or group of States (including the District of
Columbia) in a fiscal year beginning in 2006 for
capital projects to benefit intercity passenger rail
service or for the operating costs of such service
above the average of expenditures made for such service
in fiscal years 2004 and 2005 shall be credited towards
the matching requirements for grants awarded under this
section. The Secretary may require such information as
necessary to verify such expenditures.
(g) Undertaking Projects in Advance.--
(1) The Secretary may pay the Federal share of the
net capital project cost to an applicant that carries
out any part of a project described in this section
according to all applicable procedures and requirements
if--
(A) the applicant applies for the payment;
(B) the Secretary approves the payment; and
(C) before carrying out the part of the
project, the Secretary approves the plans and
specifications for the part in the same way as
other projects under this section.
(2) The cost of carrying out part of a project
includes the amount of interest earned and payable on
bonds issued by the applicant to the extent proceeds of
the bonds are expended in carrying out the part.
However, the amount of interest under this paragraph
may not be more than the most favorable interest terms
reasonably available for the project at the time of
borrowing. The applicant shall certify, in a manner
satisfactory to the Secretary, that the applicant has
shown reasonable diligence in seeking the most
favorable financial terms.
(3) The Secretary shall consider changes in capital
project cost indices when determining the estimated
cost under paragraph (2) of this subsection.
(h) 2-Year Availability.--Funds appropriated under this
section shall remain available until expended. If any amount
provided as a grant under this section is not obligated or
expended for the purposes described in subsection (a) within 2
years after the date on which the State received the grant,
such sums shall be returned to the Secretary for other
intercity passenger rail development projects under this
section at the discretion of the Secretary.
(i) Public-Private Partnerships.--
(1) In general.--A metropolitan planning
organization, State transportation department, or other
project sponsor may enter into an agreement with any
public, private, or nonprofit entity to cooperatively
implement any project funded with a grant under this
title.
(2) Forms of participation.--Participation by an
entity under paragraph (1) may consist of--
(A) ownership or operation of any land,
facility, locomotive, rail car, vehicle, or
other physical asset associated with the
project;
(B) cost-sharing of any project expense;
(C) carrying out administration, construction
management, project management, project
operation, or any other management or
operational duty associated with the project;
and
(D) any other form of participation approved
by the Secretary.
(3) Sub-allocation.--A State may allocate funds under
this section to any entity described in paragraph (1).
(j) Special Transportation Circumstances.--In carrying out
this section, the Secretary shall allocate an appropriate
portion of the amounts available under this section to provide
grants to States--
(1) in which there is no intercity passenger rail
service for the purpose of funding freight rail capital
projects that are on a State rail plan developed under
chapter 225 of this title that provide public benefits
(as defined in chapter 225) as determined by the
Secretary; or
(2) in which the rail transportation system is not
physically connected to rail systems in the continental
United States or may not otherwise qualify for a grant
under this section due to the unique characteristics of
the geography of that State or other relevant
considerations, for the purpose of funding
transportation-related capital projects.
Sec. 24403. Project management oversight
(a) Project Management Plan Requirements.--To receive Federal
financial assistance for a major capital project under this
subchapter, an applicant must prepare and carry out a project
management plan approved by the Secretary of Transportation.
The plan shall provide for--
(1) adequate recipient staff organization with well-
defined reporting relationships, statements of
functional responsibilities, job descriptions, and job
qualifications;
(2) a budget covering the project management
organization, appropriate consultants, property
acquisition, utility relocation, systems demonstration
staff, audits, and miscellaneous payments the recipient
may be prepared to justify;
(3) a construction schedule for the project;
(4) a document control procedure and recordkeeping
system;
(5) a change order procedure that includes a
documented, systematic approach to handling the
construction change orders;
(6) organizational structures, management skills, and
staffing levels required throughout the construction
phase;
(7) quality control and quality assurance functions,
procedures, and responsibilities for construction,
system installation, and integration of system
components;
(8) material testing policies and procedures;
(9) internal plan implementation and reporting
requirements;
(10) criteria and procedures to be used for testing
the operational system or its major components;
(11) periodic updates of the plan, especially related
to project budget and project schedule, financing, and
ridership estimates; and
(12) the recipient's commitment to submit a project
budget and project schedule to the Secretary each
month.
(b) Secretarial Oversight.--
(1) The Secretary may use no more than 0.5 percent of
amounts made available in a fiscal year for capital
projects under this subchapter to enter into contracts
to oversee the construction of such projects.
(2) The Secretary may use amounts available under
paragraph (1) of this subsection to make contracts for
safety, procurement, management, and financial
compliance reviews and audits of a recipient of amounts
under paragraph (1).
(3) The Federal Government shall pay the entire cost
of carrying out a contract under this subsection.
(c) Access to Sites and Records.--Each recipient of
assistance under this subchapter shall provide the Secretary
and a contractor the Secretary chooses under subsection (c) of
this section with access to the construction sites and records
of the recipient when reasonably necessary.
Sec. 24404. Use of capital grants to finance first-dollar liability of
grant project
Notwithstanding the requirements of section 24402 of this
subchapter, the Secretary of Transportation may approve the use
of capital assistance under this subchapter to fund self-
insured retention of risk for the first tier of liability
insurance coverage for rail passenger service associated with
the capital assistance grant, but the coverage may not exceed
$20,000,000 per occurrence or $20,000,000 in aggregate per
year.
Sec. 24405. Grant conditions
(a) Domestic Buying Preference.--
(1) Requirement.--
(A) In general.--In carrying out a project
funded in whole or in part with a grant under
this title, the grant recipient shall purchase
only--
(i) unmanufactured articles,
material, and supplies mined or
produced in the United States; or
(ii) manufactured articles, material,
and supplies manufactured in the United
States substantially from articles,
material, and supplies mined, produced,
or manufactured in the United States.
(B) De minimis amount.--Subparagraph (1)
applies only to a purchase in an total amount
that is not less than $1,000,000.
(2) Exemptions.--On application of a recipient, the
Secretary may exempt a recipient from the requirements
of this subsection if the Secretary decides that, for
particular articles, material, or supplies--
(A) such requirements are inconsistent with
the public interest;
(B) the cost of imposing the requirements is
unreasonable; or
(C) the articles, material, or supplies, or
the articles, material, or supplies from which
they are manufactured, are not mined, produced,
or manufactured in the United States in
sufficient and reasonably available commercial
quantities and are not of a satisfactory
quality.
(3) United States defined.--In this subsection, the
term ``the United States'' means the States,
territories, and possessions of the United States and
the District of Columbia.
(b) Operators Deemed Rail Carriers and Employers for Certain
Purposes.--A person that conducts rail operations over rail
infrastructure constructed or improved with funding provided in
whole or in part in a grant made under this title--
(1) shall be considered a rail carrier as defined in
section 10102(5) of this title for purposes of this
title and any other statute that adopts the that
definition or in which that definition applies;
(2) shall be considered an employer for purposes of
the Railroad Retirement Act of 1974 (45 U.S.C. 231 et
seq.); and
(3) shall be considered a carrier for purposes of the
Railway Labor Act (43 U.S.C. 151 et seq.).
(c) Grant Conditions.--The Secretary shall require as a
condition of making any grant under this title that includes
the improvement or use of rights-of-way owned by a railroad
that--
(1) a written agreement exist between the applicant
and the railroad regarding such use and ownership,
including--
(A) any compensation for such use;
(B) assurances regarding the adequacy of
infrastructure capacity to accommodate both
existing and future freight and passenger
operations; and
(C) an assurance by the railroad that
collective bargaining agreements with the
railroad's employees (including terms
regulating the contracting of work) will remain
in full force and effect according to their
terms for work performed by the railroad on the
railroad transportation corridor; and
(2) the applicant agrees to comply with--
(A) the standards of section 24312 of this
title, as such section was in effect on
September 1, 2003, with respect to the project
in the same manner that the National Railroad
Passenger Corporation is required to comply
with those standards for construction work
financed under an agreement made under section
24308(a) of this title; and
(B) the protective arrangements established
under section 504 of the Railroad
Revitalization and Regulatory Reform Act of
1976 (45 U.S.C. 836) with respect to employees
affected by actions taken in connection with
the project to be financed in whole or in part
by grants under this subchapter.
(d) Replacement of Existing Intercity Passenger Rail
Service.--
(1) Collective bargaining agreement for intercity
passenger rail projects.--Any entity providing
intercity passenger railroad transportation that begins
operations after the date of enactment of this Act on a
project funded in whole or in part by grants made under
this title and replaces intercity rail passenger
service that was provided by Amtrak, unless such
service was provided solely by Amtrak to another
entity, as of such date shall enter into an agreement
with the authorized bargaining agent or agents for
adversely affected employees of the predecessor
provider that--
(A) gives each such qualified employee of the
predecessor provider priority in hiring
according to the employee's seniority on the
predecessor provider for each position with the
replacing entity that is in the employee's
craft or class and is available within 3 years
after the termination of the service being
replaced;
(B) establishes a procedure for notifying
such an employee of such positions;
(C) establishes a procedure for such an
employee to apply for such positions; and
(D) establishes rates of pay, rules, and
working conditions.
(2) Immediate replacement service.--
(A) Negotiations.--If the replacement of
preexisting intercity rail passenger service
occurs concurrent with or within a reasonable
time before the commencement of the replacing
entity's rail passenger service, the replacing
entity shall give written notice of its plan to
replace existing rail passenger service to the
authorized collective bargaining agent or
agents for the potentially adversely affected
employees of the predecessor provider at least
90 days before the date on which it plans to
commence service. Within 5 days after the date
of receipt of such written notice, negotiations
between the replacing entity and the collective
bargaining agent or agents for the employees of
the predecessor provider shall commence for the
purpose of reaching agreement with respect to
all matters set forth in subparagraphs (A)
through (D) of paragraph (1). The negotiations
shall continue for 30 days or until an
agreement is reached, whichever is sooner. If
at the end of 30 days the parties have not
entered into an agreement with respect to all
such matters, the unresolved issues shall be
submitted for arbitration in accordance with
the procedure set forth in subparagraph (B).
(B) Arbitration.--If an agreement has not
been entered into with respect to all matters
set forth in subparagraphs (A) through (D) of
paragraph (1) as described in subparagraph (A)
of this paragraph, the parties shall select an
arbitrator. If the parties are unable to agree
upon the selection of such arbitrator within 5
days, either or both parties shall notify the
National Mediation Board, which shall provide a
list of seven arbitrators with experience in
arbitrating rail labor protection disputes.
Within 5 days after such notification, the
parties shall alternately strike names from the
list until only 1 name remains, and that person
shall serve as the neutral arbitrator. Within
45 days after selection of the arbitrator, the
arbitrator shall conduct a hearing on the
dispute and shall render a decision with
respect to the unresolved issues among the
matters set forth in subparagraphs (A) through
(D) of paragraph (1). This decision shall be
final, binding, and conclusive upon the
parties. The salary and expenses of the
arbitrator shall be borne equally by the
parties; all other expenses shall be paid by
the party incurring them.
(3) Service commencement.--A replacing entity under
this subsection shall commence service only after an
agreement is entered into with respect to the matters
set forth in subparagraphs (A) through (D) of paragraph
(1) or the decision of the arbitrator has been
rendered.
(4) Subsequent replacement of service.--If the
replacement of existing rail passenger service takes
place within 3 years after the replacing entity
commences intercity passenger rail service, the
replacing entity and the collective bargaining agent or
agents for the adversely affected employees of the
predecessor provider shall enter into an agreement with
respect to the matters set forth in subparagraphs (A)
through (D) of paragraph (1). If the parties have not
entered into an agreement with respect to all such
matters within 60 days after the date on which the
replacing entity replaces the predecessor provider, the
parties shall select an arbitrator using the procedures
set forth in paragraph (2)(B), who shall, within 20
days after the commencement of the arbitration, conduct
a hearing and decide all unresolved issues. This
decision shall be final, binding, and conclusive upon
the parties.
(e) Inapplicability to Certain Rail Operations.-- Nothing in
this section applies to--
(1) commuter rail passenger transportation (as
defined in section 24102(4) of this title) operations
of a State or local government authority (as those
terms are defined in section 5302(11) and (6),
respectively, of this title) eligible to receive
financial assistance under section 5307 of this title,
or to its contractor performing services in connection
with commuter rail passenger operations (as so
defined);
(2) the Alaska Railroad or its contractors; or
(3) the National Railroad Passenger Corporation's
access rights to railroad rights of way and facilities
under current law for projects funded under this title
where train operating speeds do not exceed 79 miles per
hour.
* * * * * * *
CHAPTER 247. AMTRAK ROUTE SYSTEM
Sec. 24701. National rail passenger transportation system
[49 U.S.C. 24701]
Amtrak shall operate a national rail passenger transportation
system which ties together existing and emergent regional rail
passenger service and other intermodal passenger service.
Sec. 24702. Transportation requested by States, authorities, and other
persons
(a) Contracts for Transportation.--Amtrak and a State, a
regional or local authority, or another person may enter into a
contract 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.
Sec. 24710. Long distance routes
(a) Annual Evaluation.--Using the financial and performance
metrics developed under section 208 of the Passenger Rail
Investment and Improvement Act of 2005, Amtrak shall--
(1) evaluate annually the performance of each long-
distance passenger rail route operated by Amtrak; and
(2) rank the overall performance of such routes for
2006 and identify each long-distance passenger rail
route operated by Amtrak in 2006 according to its
overall performance as belonging to the best performing
third of such routes, the second best performing third
of such routes, or the worst performing third of such
routes.
(b) Performance Improvement Plan.--Amtrak shall develop a
performance improvement plan for its long-distance passenger
rail routes based on the data collected through the application
of the financial and performance metrics developed under
section 208 of that Act. The plan shall address--
(1) on-time performance;
(2) scheduling, frequency, routes, and stops;
(3) the feasibility of restructuring service into
connected corridor service;
(4) performance-related equipment changes and capital
improvements;
(5) on-board amenities and service, including food,
first class, and sleeping car service;
(6) State or other non-Federal financial
contributions; and
(7) other aspects of Amtrak's long-distance passenger
rail routes that affect the financial, competitive, and
functional performance of service on Amtrak's long-
distance passenger rail routes.
(c) Implementation.--Amtrak shall implement the performance
improvement plan developed under subsection (b)--
(1) beginning in fiscal year 2007 for those routes
identified as being in the worst performing third under
subsection (a)(3);
(2) beginning in fiscal year 2008 for those routes
identified as being in the second best performing third
under subsection (a)(3); and
(3) beginning in fiscal year 2009 for those routes
identified as being in the best performing third under
subsection (a)(3).
(d) Enforcement.--The Federal Railroad Administration shall
monitor the development, implementation, and outcome of
improvement plans under this section. If, for any year, it
determines that Amtrak is not making reasonable progress in
implementing its performance improvement plan or in achieving
the expected outcome of the plan for any calendar year, the
Federal Railroad Administration--
(1) shall notify Amtrak of its determination under
this subsection;
(2) shall provide an opportunity for a hearing with
respect to that determination; and
(3) may withhold any appropriated funds otherwise
available to Amtrak for the operation of a route or
routes on which it is not making progress, other than
funds made available for passenger safety or security
measures.
Sec. 24711. Alternate passenger rail service program
(a) In General.--Within 1 year after the date of enactment of
the Passenger Rail Investment and Improvement Act of 2005, the
Federal Railroad Administration shall initiate a rulemaking
proceeding to develop a program under which--
(1) a rail carrier or rail carriers that own
infrastructure over which Amtrak operates a passenger
rail service route described in subparagraph (B), (C),
or (D) of section 24102(5) or in section 24702 of title
49, United States Code may petition the Federal
Railroad Administration to be considered as a passenger
rail service provider over that route in lieu of
Amtrak;
(2) the Administration would notify Amtrak within 30
days after receiving a petition under paragraph (1) and
establish a deadline by which both the petitioner and
Amtrak would be required to submit a bid to provide
passenger rail service over the route to which the
petition relates;
(3) the Administration would make a decision within a
specified, limited time after that deadline awarding to
the winning bidder--
(A) the right and obligation to provide
passenger rail service over that route subject
to such performance standards as the
Administration may require; and
(B) an operating subsidy will be provided--
(i) for the first year at a level not
in excess of the level in effect during
the fiscal year preceding the fiscal
year in which the petition was
received, adjusted for inflation; and
(ii) for any subsequent years at such
level, adjusted for inflation.
(b) Implementation.--
(1) Initial petitions.--Pursuant to any rules or
regulations promulgated under subsection (A), the
Administration shall establish a deadline for the
submission of a petition under subsection (a)--
(A) during fiscal year 2007 for operations
commencing in fiscal year 2008; and
(B) during the immediately preceding fiscal
year for operations commencing in subsequent
fiscal years.
(2) Route limitations.--The Administration may not
make the program available with respect to more than 1
Amtrak passenger rail routes for operations beginning
in fiscal year 2008 nor to more than 2 such routes for
operations beginning in fiscal year 2010 and subsequent
fiscal years.
(c) Performance Standards; Access to Facilities; Employees.--
If the Administration awards the right and obligation to
provide passenger rail service over a route under the program
to a rail carrier or rail carriers--
(1) it shall execute a contract with the rail carrier
or rail carriers for rail passenger operations on that
route that conditions the operating and subsidy rights
upon--
(A) the service provider continuing to
provide passenger rail service on the route
that is no less frequent, nor over a shorter
distance, than Amtrak provided on that route
before the award; and
(B) the service provider's compliance with
the minimum standards established under section
208 of the Passenger Rail Investment and
Improvement Act of 2005 and such additional
performance standards as the Administration may
establish;
(2) it shall, if the award is made to a rail carrier
other than Amtrak, require Amtrak to provide access to
its reservation system, stations, and facilities to any
rail carrier or rail carriers awarded a contract under
this section, in accordance with section 218 of that
Act, necessary to carry our the purposes of this
section; and
(3) any person used by a rail carrier or rail
carriers (as defined in section 10102(5) of this title)
to operate a route under this section shall be
considered an employee of that carrier or carriers and
subject to the applicable Federal laws and regulations
governing similar crafts or classes of employees of
Amtrak, including provisions under section 121 of the
Amtrak Reform and Accountability Act of 1997 relating
to employees that provide food and beverage service.
(d) Cessation of Service.--If a rail carrier or rail carriers
awarded a route under this section cease to operate the service
or fail to fulfill their obligations under the contract
required under subsection (c), the Administrator, in
collaboration with the Surface Transportation Board when
applicable, shall take any necessary action consistent with
this title to enforce the contract and ensure the continued
provision of service, including the installment of an interim
service provider and re-bidding the contract to operate the
service.
(e) Adequate Resources.--Before taking any action allowed
under this section, the Secretary shall certify that the
Administrator has sufficient resources that are adequate to
undertake the program established under this section.
CHAPTER 249. NORTHEAST CORRIDOR IMPROVEMENT PROGRAM
Sec. 24905. Coordination board and safety committee
(a) Northeast Corridor Coordination Board.--(1) The Northeast
Corridor Coordination Board is composed of the following
members:
(A) one individual from each commuter authority (as
defined in section 1135(a) of the Omnibus Budget
Reconciliation Act of 1981 (45 U.S.C. 1104)) that
provides or makes a contract to provide commuter rail
passenger transportation over the main line of the
Northeast Corridor.
(B) 2 individuals selected by Amtrak.
(C) one individual selected by the Consolidated Rail
Corporation.
(2) The Board shall recommend to Amtrak--
(A) policies that ensure equitable access to the
Northeast Corridor, considering the need for equitable
access by commuter and intercity rail passenger
transportation and the requirements of section 24308(c)
of this title; and
(B) equitable policies for the Northeast Corridor
related to--
(i) dispatching;
(ii) public information;
(iii) maintaining equipment and facilities;
(iv) major capital facility investments; and
(v) harmonizing equipment acquisitions,
rates, and schedules.
(3) The Board may recommend to the board of directors and
President of Amtrak action necessary to resolve differences on
providing transportation, except for facilities and
transportation matters under section 24308(a) or 24904(a)(5)
and (c) of this title.
(b) Northeast Corridor Safety Committee.--(1) The Northeast
Corridor Safety Committee is composed of members appointed by
the Secretary of Transportation. The members shall be
representatives of--
(A) the Secretary;
(B) Amtrak;
(C) freight carriers operating more than 150,000
train miles a year on the main line of the Northeast
Corridor;
(D) commuter agencies;
(E) rail passengers;
(F) rail labor; and
(G) other individuals and organizations the Secretary
decides have a significant interest in rail safety.
(2) The Secretary shall consult with the Committee about
safety improvements on the Northeast Corridor main line. The
Committee shall meet at least once every 2 years to consider
safety matters on the main line.
(3) At the beginning of the first session of each Congress,
the Secretary shall submit a report to Congress on the status
of efforts to improve safety on the Northeast Corridor main
line. The report shall include the safety recommendations of
the Committee and the comments of the Secretary on those
recommendations.
(4) The Committee shall cease to exist on January 1, 1999, or
on another date the Secretary decides is appropriate. The
Secretary shall notify Congress in writing of a decision to
terminate the Committee on another date.
Sec. 24905. Northeast Corridor Infrastructure and Operations Advisory
Commission; Safety and Security Committee.
(a) Northeast Corridor Infrastructure and Operations Advisory
Commission.--
(1) Within 180 days after the date of enactment of
the Passenger Rail Investment and Improvement Act of
2005, the Secretary of Transportation shall establish a
Northeast Corridor Infrastructure and Operations
Advisory Commission (hereinafter referred to in this
section as the Commission'') to promote mutual
cooperation and planning pertaining to the rail
operations and related activities of the Northeast
Corridor. The Commission shall be made up of--
(A) members representing the National
Railroad Passenger Corporation;
(B) members representing the Federal Railroad
Administration; and
(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 the chief
executive officer thereof.
(2) The Secretary shall ensure that the membership
belonging to any of the groups enumerated under
subparagraph (1) shall not constitute a majority of the
Commission's memberships.
(3) The Commission shall establish a schedule and
location for convening meetings, but shall meet no less
than four times per fiscal year, and the Commission
shall develop rules and procedures to govern the
Commission's proceedings.
(4) A vacancy in the Commission shall be filled in
the manner in which the original appointment was made.
(5) Members shall serve without pay but shall receive
travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703
of title 5, United States Code.
(6) The Chairman of the Commission shall be elected
by the members.
(7) The Commission may appoint and fix the pay of
such personnel as it considers appropriate.
(8) Upon request of the Commission, the head of any
department or agency of the United States may detail,
on a reimbursable basis, any of the personnel of that
department or agency to the Commission to assist it in
carrying out its duties under this section.
(9) Upon the request of the Commission, the
Administrator of General Services shall provide to the
Commission, on a reimbursable basis, the administrative
support services necessary for the Commission to carry
out its responsibilities under this section.
(10) The Commission shall consult with freight
railroads users of the Northeast Corridor and other
entities as appropriate.
(b) General Recommendations.--The Commission shall develop
recommendations concerning northeast corridor rail
infrastructure and operations including proposals addressing,
as appropriate--
(1) short-term and long-term capital investment needs
beyond the stat-of-good-repair under section 213;
(2) future funding requirements for capital
improvements and maintenance;
(3) operational improvements of intercity passenger
rail, commuter rail, and freight rail services;
(4) opportunities for additional non-rail uses of the
Northeast Corridor;
(5) scheduling and dispatching;
(6) safety and security enhancements;
(7) equipment design;
(8) marketing of rail services; and
(9) future capacity requirements.
(c) Access Costs.--
(1) Development of formula.--Within 1 year after
verification of Amtrak's new financial accounting
system pursuant to section 203(b) of the Passenger Rail
Investment and Improvement Act of 2005, the Commission
shall--
(A) develop a standardized formula for
determining and allocating costs, revenues, and
compensation for northeast corridor commuter
rail passenger transportation, as defined in
section 24102 of this title, that use National
Railroad Passenger Corporation facilities or
services or that provide such facilities or
services to the National Railroad Passenger
Corporation that ensure that--
(i) there is no cross-subsidization
of commuter rail passenger, intercity
rail passenger, or freight rail
transportation; and
(ii) each service is assigned the
costs incurred only for the benefit of
that service, and a proportionate
share, based upon factors that
reasonably reflect relative use, of
costs incurred for the common benefit
of more than 1 service;
(B) develop a proposed timetable for
implementing the formula before the end of the
6th year following the date of enactment of
that Act; and
(C) transmit the proposed timetable to the
Surface Transportation Board.
(2) Implementation.--The National Railroad Passenger
Corporation and the commuter authorities providing
commuter rail passenger transportation on the northeast
corridor shall implement new agreements for usage of
facilities or services based on the formula proposed in
paragraph (1) in accordance with the timetable
established therein. If the parties fail to implement
such new agreements in accordance with the timetable,
the parties shall--
(A) submit any dispute regarding such
implementation to binding arbitration conducted
by a mutually agreed upon arbitrator and comply
with the decision of that arbitrator; or
(B) petition the Surface Transportation Board
to determine the appropriate compensation
amounts for such services in accordance with
section 24904(c) of this title.
(d) Transmission of Recommendations.--The Commission shall
annually transmit the recommendations developed under
subsection (b) and the formula and timetable developed under
subsection (c)(1) to the Senate Committee on Commerce, Science,
and Transportation and the House of Representatives Committee
on Transportation and Infrastructure.
(e) Northeast Corridor Safety Committee.--
(1) In general.--The Secretary shall establish a
Northeast Corridor Safety and Security Committee
composed of members appointed by the Secretary. The
members shall be representatives of--
(A) the Secretary;
(B) Amtrak;
(C) freight carriers operating more than
150,000 train miles a year on the main line of
the Northeast Corridor;
(D) commuter agencies;
(E) rail passengers;
(F) rail labor;
(G) the Transportation Security
Administration; and
(H) other individuals and organizations the
Secretary decides have a significant interest
in rail safety.
(2) Function; meetings.--The Secretary shall consult
with the Committee about safety and security
improvements on the Northeast Corridor main line. The
Committee shall meet at least once every 2 years to
consider safety matters on the main line.
(3) Report.--At the beginning of the first session of
each Congress, the Secretary shall submit a report to
the Commission and to Congress on the status of efforts
to improve safety and security on the Northeast
Corridor main line. The report shall include the safety
recommendations of the Committee and the comments of
the Secretary on those recommendations.
(4) Termination.--The Committee shall cease to exist
on January 1, 2009, or on another date the Secretary
decides is appropriate. The Secretary shall notify
Congress in writing of a decision to terminate the
Committee on another date.
* * * * * * *
``Sec. 24910. Rail cooperative research program
(a) In General.--The Secretary shall establish and carry out
a rail cooperative research program. The program shall--
(1) address, among other matters, intercity rail
passenger and freight rail services, including existing
rail passenger and freight technologies and speeds,
incrementally enhanced rail systems and infrastructure,
and new high-speed wheel-on-rail systems and rail
security;
(2) address ways to expand the transportation of
international trade traffic by rail, enhance the
efficiency of intermodal interchange at ports and other
intermodal terminals, and increase capacity and
availability of rail service for seasonal freight
needs;
(3) consider research on the interconnectedness of
commuter rail, passenger rail, freight rail, and other
rail networks; and
(4) give consideration to regional concerns regarding
rail passenger and freight transportation, including
meeting research needs common to designated high-speed
corridors, long-distance rail services, and regional
intercity rail corridors, projects, and entities.
(b) Content.--The program to be carried out under this
section shall include research designed--
(1) to identify the unique aspects and attributes of
rail passenger and freight service;
(2) to develop more accurate models for evaluating
the impact of rail passenger and freight service,
including the effects on highway and airport and airway
congestion, environmental quality, and energy
consumption;
(3) to develop a better understanding of modal choice
as it affects rail passenger and freight
transportation, including development of better models
to predict utilization;
(4) to recommend priorities for technology
demonstration and development;
(5) to meet additional priorities as determined by
the advisory board established under subsection (c),
including any recommendations made by the National
Research Council;
(6) to explore improvements in management, financing,
and institutional structures;
(7) to address rail capacity constraints that affect
passenger and freight rail service through a wide
variety of options, ranging from operating improvements
to dedicated new infrastructure, taking into account
the impact of such options on operations;
(8) to improve maintenance, operations, customer
service, or other aspects of intercity rail passenger
and freight service;
(9) to recommend objective methodologies for
determining intercity passenger rail routes and
services, including the establishment of new routes,
the elimination of existing routes, and the contraction
or expansion of services or frequencies over such
routes;
(10) to review the impact of equipment and
operational safety standards on the further development
of high speed passenger rail operations connected to or
integrated with non-high speed freight or passenger
rail operations; and
(11) to recommend any legislative or regulatory
changes necessary to foster further development and
implementation of high speed passenger rail operations
while ensuring the safety of such operations that are
connected to or integrated with non-high speed freight
or passenger rail operations.
(c) Advisory Board.--
(1) Establishment.--In consultation with the heads of
appropriate Federal departments and agencies, the
Secretary shall establish an advisory board to
recommend research, technology, and technology transfer
activities related to rail passenger and freight
transportation.
(2) Membership.--The advisory board shall include--
(A) representatives of State transportation
agencies;
(B) transportation and environmental
economists, scientists, and engineers; and
(C) representatives of Amtrak, the Alaska
Railroad, freight railroads, transit operating
agencies, intercity rail passenger agencies,
railway labor organizations, and environmental
organizations.
(d) National Academy of Sciences.-- The Secretary may make
grants to, and enter into cooperative agreements with, the
National Academy of Sciences to carry out such activities
relating to the research, technology, and technology transfer
activities described in subsection (b) as the Secretary deems
appropriate.
Part D--High-Speed Rail
CHAPTER 261. HIGH-SPEED RAIL ASSISTANCE
* * * * * * *
Sec. 26106. Rail infrastructure bonds
(a) Designation.--The Secretary may designate bonds for
purposes of section 54 of the Internal Revenue Code of 1986
if--
(1) the bonds are to be issued by--
(A) a State, if the entire railroad passenger
transportation corridor containing the
infrastructure project to be financed is within
the State;
(B) 1 or more of the States that have entered
into an agreement or an interstate compact
consented to by Congress under section 410(a)
of Public Law 105-134 (49 U.S.C. 24101 note);
(C) an agreement or an interstate compact
described in subparagraph (B); or
(D) Amtrak, for capital projects under its 5-
year plan;
(2) the bonds are for the purpose of financing
projects that make a substantial contribution to
providing the infrastructure and equipment required to
complete or improve a rail transportation corridor
(including projects for the acquisition, financing, or
refinancing of equipment and other capital
improvements, including the introduction of new high-
speed technologies such as magnetic levitation systems,
track or signal improvements, the elimination of grade
crossings, development of intermodal facilities,
improvement of train speeds or safety, or both, and
station rehabilitation or construction), but only if
the Secretary determines that the projects are part of
a viable and comprehensive rail transportation corridor
design for intercity passenger service included in a
State rail plan under chapter 225 (except for bonds
issued under paragraph (1)(D)); and
(3) for a railroad passenger transportation corridor
not operated by Amtrak that includes the use of rights-
of-way owned by a freight railroad, a written agreement
exists between the applicant and the freight railroad
regarding such use and ownership, including
compensation for such use and assurances regarding the
adequacy of infrastructure capacity to accommodate both
existing and future freight and passenger operations,
and including an assurance by the freight railroad that
collective bargaining agreements with the freight
railroad's employees (including terms regulating the
contracting of work) shall remain in full force and
effect according to their terms for work performed by
the freight railroad on such railroad passenger
transportation corridor.
(b) Bond Amount Limitation.--
(1) In general.--The amount of bonds designated under
this section may not exceed in the case of section 54
bonds, $1,300,000,000 for each of the fiscal years 2006
through 2015.
(2) Carryover of unused limitation.--If for any
fiscal year the limitation amount under paragraph (1)
exceeds the amount of section 54 bonds issued during
such year, the limitation amount under paragraph (1)
for the following fiscal year (through fiscal year
2019) shall be increased by the amount of such excess.
(c) Project Selection Criteria.--The Secretary shall give
preference to the designation under this section of bonds for
projects selected using the criteria in chapter 244.
(d) Timely Disposition of Application.--The Secretary shall
grant or deny a requested designation within 9 months after
receipt of an application.
(e) Refinancing Rules.--Bonds designated by the Secretary
under subsection (a) may be issued for refinancing projects
only if the indebtedness being refinanced (including any
obligation directly or indirectly refinanced by such
indebtedness) was originally incurred by the issuer--
(1) after the date of the enactment of this section;
(2) for a term of not more than 3 years;
(3) to finance projects described in subsection
(a)(2); and
(4) in anticipation of being refinanced with proceeds
of a bond designated under subsection (a).
(f) Application of Conditions.--Any entity providing railroad
transportation (within the meaning of section 20102) that
begins operations after the date of the enactment of this
section and that uses property acquired pursuant to this
section (except as provided in subsection (a)(2)(B)), shall be
subject to the conditions under section 24405.
(g) Issuance of Regulations.--Not later than 6 months after
the date of the enactment of the Passenger Rail Investment and
Improvement Act of 2005, the Secretary shall issue regulations
for carrying out this section.
(h) Section 54 Bond Defined.--In this section, the term
`section 54 bond' means a bond designated by the Secretary
under subsection (a) for purposes of section 54 of the Internal
Revenue Code of 1986 (relating to credit to holders of
qualified rail infrastructure bonds).