To establish and provide for funding for a National Rail Infrastructure Program.

Summary: National Rail Infrastructure Program Act - Directs the Secretary of Transportation to establish a National Rail Infrastructure Program to provide grants for projects addressing railroad infrastructure and systems deficiencies.

Makes eligible for such grants projects to: (1) maintain and increase track and intermodal yard capacity; (2) acquire rights-of-way for future expansion; (3) separate railroad and road crossings and make other railroad and road interface improvements; (4) separate rail-to-rail crossings; (5) integrate railroad systems; and (6) construct, repair, and rehabilitate track and related supporting structures. Prohibits the use of grant funds for operating expenses, acquisition of rolling stock, payment of debt, or construction or repair of maintenance facilities, passenger facilities at stations, or other ancillary railroad business structures.

Requires at least 20 percent of project costs to be provided by State, local, and other non-Federal public sources.

Amends the Internal Revenue Code to impose an excise tax of: (1) five percent on the sale of any specified railroad equipment by the manufacturer, producer, or importer; (2) five percent of the amount paid for taxable rail transportation of any person by commuter rail, and of ten percent in any other case; and (3) one percent of the amount paid inside or outside the United States for the taxable rail transportation of property.

Establishes in the Treasury a National Rail Infrastructure Program Trust Fund, consisting of amounts equivalent to: (1) specified excise taxes received with respect to fuel used in a train, and the excise tax under this Act on railroad locomotives and rolling stock; (2) ten percent of all customs duties received after September 30, 2003; and (3) ten percent of all royalties attributable to the removal of oil or gas from Federal lands. Makes amounts in the Trust Fund available only for grants under this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Rail Infrastructure Program 
Act''.

             TITLE I--NATIONAL RAIL INFRASTRUCTURE PROGRAM

SEC. 101. ESTABLISHMENT.

    The Secretary of Transportation shall establish a National Rail 
Infrastructure Program to provide grants for projects that address 
railroad infrastructure and systems deficiencies in order to provide 
substantial public benefits such as mitigating highway traffic 
congestion, reducing transportation emissions, reducing energy used in 
transportation, or improving the overall efficiency of railroad 
operations.

SEC. 102. ELIGIBLE PROJECTS.

    (a) In General.--Projects eligible for funding under this title 
shall include projects to maintain and increase track and intermodal 
yard capacity, to acquire rights-of-way for future expansion, to 
separate railroad and road crossings and make other railroad and road 
interface improvements, to separate rail-to-rail crossings, to 
integrate railroad systems, and to construct, repair, and rehabilitate 
track and related supporting structures.
    (b) Noneligible Purposes.--Funding shall not be provided under this 
title for operating expenses, acquisition of rolling stock, payment of 
debt, or construction or repair of maintenance facilities, passenger 
facilities at stations, or other ancillary railroad business 
structures.

SEC. 103. INCLUSION IN STATE PLANS.

    A project shall not be funded under this title unless it is 
included in--
            (1) a long-range transportation plan prepared under section 
        134(g) of title 23, United States Code;
            (2) a State plan developed under section 135 of title 23, 
        United States Code; or
            (3) a transportation improvement program under section 5304 
        of title 49, United States Code.

SEC. 104. COST SHARING.

    At least 20 percent of the costs of a project for which funding is 
provided under this title shall be provided by State, local, and other 
non-Federal public sources.

SEC. 105. ALLOCATION OF FUNDS.

    (a) Formula Amounts.--
            (1) Percentage.--The Secretary of Transportation shall 
        provide 80 percent of the amount available for grants under 
        this title for each fiscal year to States according to the 
        formula described in paragraph (2), in grants for eligible 
        projects in the States.
            (2) Formula.--Amounts described in paragraph (1) shall be 
        distributed among the States according to a formula designed by 
        the Secretary of Transportation to weigh equally for each 
        State--
                    (A) the number of rail miles in the State;
                    (B) the number of rail cars loaded in the State;
                    (C) the number of rail cars unloaded in the State; 
                and
                    (D) the number of railroad and public road grade 
                crossings in the State.
    (b) Secretary's Discretionary Amounts.--The Secretary of 
Transportation shall use 20 percent of the amount available for grants 
under this title for each fiscal year to directly make grants for 
eligible projects of national significance, with emphasis on projects 
with the greatest public benefit.

SEC. 106. LABOR STANDARDS.

    The Secretary of Transportation shall ensure that laborers and 
mechanics employed by contractors and subcontractors in construction 
work on projects funded under this title will be paid wages not less 
than those prevailing on similar construction in the locality, as 
determined by the Secretary of Labor under the Act of March 3, 1931 
(known as the Davis-Bacon Act) (40 U.S.C. 276a-276a-5).

SEC. 107. DISADVANTAGED BUSINESS ENTERPRISES.

    (a) General Rule.--Except to the extent that the Secretary of 
Transportation determines otherwise, not less than 10 percent of the 
amounts made available under this Act shall be expended with small 
business concerns owned and controlled by socially and economically 
disadvantaged individuals.
    (b) Definitions.--The terms used in this section have the meaning 
given those terms in section 1101(b)(2) of the Transportation Equity 
Act For the 21st Century (23 U.S.C. 101 note).

SEC. 108. DEFINITIONS.

    For purposes of this title--
            (1) the term ``rail miles'' means route miles, not track 
        miles; and
            (2) the term ``railroad'' means freight, intercity 
        passenger, and commuter rail transportation operated as part of 
        the general system of rail transportation.

                           TITLE II--FUNDING

SEC. 201. EXCISE TAX ON SALE OF CERTAIN TRAIN EQUIPMENT.

    (a) In General.--Chapter 32 of the Internal Revenue Code of 1986 
(relating to manufacturers excise taxes) is amended by inserting after 
subchapter D the following new subchapter:

         ``Subchapter E--Railroad Locomotives and Rolling Stock

                              ``Sec. 4191. Imposition of tax.

``SEC. 4191. IMPOSITION OF TAX.

    ``(a) In General.--There is hereby imposed on the sale of any 
specified railroad equipment by the manufacturer, producer, or importer 
a tax equal to 5 percent of the price for which so sold.
    ``(b) Specified Railroad Equipment.--For purposes of this section, 
the term `specified railroad equipment' means--
            ``(1) any railroad locomotive, and
            ``(2) any other railroad rolling stock.
    ``(c) Separate Purchase of Parts and Accessories.--Under 
regulations prescribed by the Secretary--
            ``(1) In general.--If--
                    ``(A) the owner, lessee, or operator of any 
                specified railroad equipment installs (or causes to be 
                installed) any part or accessory on such equipment, and
                    ``(B) such installation is not later than the date 
                6 months after the date such equipment was first placed 
                in service,
        then there is hereby imposed on such installation a tax equal 
        to 5 percent of the price of such part or accessory and its 
        installation.
            ``(2) Exception.--Paragraph (1) shall not apply if the part 
        or accessory installed is a replacement part or accessory.
            ``(3) Installers secondarily liable for tax.--The owners of 
        the trade or business installing the parts or accessories shall 
        be secondarily liable for the tax imposed by paragraph (1).''
    (b) Clerical Amendment.--The table of subchapters for chapter 32 of 
such Code is amended by inserting after the item relating to subchapter 
D the following new item:

                              ``Subchapter E. Railroad locomotives and 
                                        rolling stock.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2003.

SEC. 202. TAX ON RAIL TRANSPORTATION OF PERSONS OR PROPERTY.

    (a) In General.--Chapter 33 of the Internal Revenue Code of 1986 is 
amended by inserting before subchapter B the following new subchapter:

                 ``Subchapter A--Transportation by Rail

                              ``Sec. 4241. Transportation of persons.
                              ``Sec. 4242. Transportation of property.
                              ``Sec. 4243. Definitions and special 
                                        rules.

``SEC. 4241. TRANSPORTATION OF PERSONS.

    ``(a) In General.--There is hereby imposed on the amount paid for 
taxable rail transportation of any person a tax equal to--
            ``(1) 5 percent of the amount so paid in the case of 
        taxable rail transportation by commuter rail, and
            ``(2) 10 percent of the amount so paid in any other case.
    (b) By Whom Paid.--The tax imposed by this section shall be paid by 
the person making the payment subject to the tax.

``SEC. 4242. TRANSPORTATION OF PROPERTY.

    ``(a) In General.--there is hereby imposed upon the amount paid 
within or without the United States for the taxable rail transportation 
of property a tax equal to 1 percent of the amount so paid for such 
transportation. The tax imposed by this subsection shall apply only to 
amounts paid to a person engaged in the business of transporting 
property by rail for hire.
    ``(b) By Whom Paid.--
            ``(1) In general.--Except as provided by paragraph (2), the 
        tax imposed by subsection (a) shall be paid by the person 
        making the payment subject to tax.
            ``(2) Payments made outside the united states.--If a 
        payment subject to tax under subsection (a) is made outside the 
        United States and the person making such payment does not pay 
such tax, such tax--
                    ``(A) shall be paid by the person to whom the 
                property is delivered in the United States by the 
                person furnishing the last segment of the taxable 
                transportation in respect of which such tax is imposed, 
                and
                    ``(B) shall be collected by the person furnishing 
                the last segment of such taxable transportation.

``SEC. 4243. DEFINITIONS AND SPECIAL RULES.

    ``(a) Taxable Rail Transportation.--For purposes of this 
subchapter, the term `taxable rail transportation' means transportation 
by rail within the United States, other than by mass transit.
    ``(b) Transportation.--For purposes of this subchapter, the term 
`transportation' includes layover or waiting time and movement of the 
train in deadhead service.
    ``(c) Special Rules.--
            ``(1) Payments made outside the United States for prepaid 
        orders.--If the payment upon which tax is imposed by section 
        4241 is made outside the United States for a prepaid order, 
        exchange order, or similar order, the person furnishing the 
        initial transportation pursuant to such order shall collect the 
        amount of the tax.
            ``(2) Tax deducted upon refunds.--Every person who refunds 
        any amount with respect to a ticket or order which was 
        purchased without payment of the tax imposed by section 4241 
        shall deduct from the amount refundable, to the extent 
        available, any tax due under such section as a result of the 
        use of a portion of the transportation purchased in connection 
        with such ticket or order, and shall report to the Secretary 
        the amount of any such tax remaining uncollected.
            ``(3) Payment of tax.--Where any tax imposed by section 
        4241 is not paid at the time payment for transportation is 
        made, then, under regulations prescribed by the Secretary, to 
        the extent that such tax is not collected under any other 
        provision of this subchapter, such tax shall be paid by the 
        carrier providing the initial segment of such transportation in 
        the United States.''
    (b) Clerical Amendment.--The table of subchapters for chapter 33 of 
such Code is amended by inserting before the item relating to 
subchapter B the following new item:

                              ``Subchapter A. Transportation by rail.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2003.

SEC. 203. NATIONAL RAIL INFRASTRUCTURE PROGRAM TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to trust fund code) is amended by adding at the 
end the following new section:

``SEC. 9511. NATIONAL RAIL INFRASTRUCTURE PROGRAM TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `National Rail 
Infrastructure Program Trust Fund', consisting of such amounts as may 
be appropriated or credited to such Trust Fund as provided in this 
section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the National Rail Infrastructure Program Trust Fund amounts equivalent 
to--
            ``(1) the taxes received in the Treasury under section 4191 
        (relating to taxes on railroad locomotives and rolling stock),
            ``(2) 10 percent of all customs duties received in the 
        Treasury after September 30, 2003,
            ``(3) the taxes received in the Treasury under section 4041 
        or 4081 to the extent attributable to fuel used in a train, and
            ``(4) 10 percent of all royalties received by the United 
        States attributable to the removal of oil or gas from Federal 
        lands.
    ``(c) Expenditures.--Amounts in the National Rail Infrastructure 
Program Trust Fund shall be available, as provided in appropriation 
Acts, only for purposes of making expenditures to carry out title I of 
the National Rail Infrastructure Program Act.''
    (b) Clerical Amendment.--The table of sections for such subchapter 
is amended by adding at the end the following new item:

                              ``Sec. 9511. National Rail Infrastructure 
                                        Program Trust Fund.''