To provide for the financing of high-speed rail infrastructure, and for other purposes.

Summary: Rail Infrastructure Development and Expansion Act for the 21st Century - Amends Federal rail transportation law to authorize the Secretary of Transportation to designate bonds if: (1) the bonds are issued by a State, or one or more of the States that have entered into an interstate compact under the Amtrak Reform and Accountability Act of 1997, or by such compact; (2) such bonds are for financing projects to provide a major portion of the infrastructure required to complete a railroad passenger transportation corridor for high-speed intercity rail passenger service, or for projects for the Alaska Railroad; (3) for a railroad passenger transportation corridor design that includes the use of freight railroad rights-of-way, a written agreement exists between the applicant and the freight railroad regarding such use and other conditions are met; (4) the corridor design eliminates all existing railroad grade crossings and requires no additional railroad grade crossings to be created; and (5) the applicant agrees to comply with certain labor standards with respect to such project. Excludes the interest on such bonds from an individual's gross income.Makes corridor development activities (including the acquisition of locomotives, rolling stock, track, and signal equipment) eligible for Federal assistance.Amends specified Federal law to change from discretionary to mandatory the Secretary's authority to provide direct loans and loan guarantees for rail rehabilitation and improvement projects to State and local governments, interstate compacts, government sponsored authorities and corporations, railroads, and joint ventures that include at least one railroad.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rail Infrastructure Development and 
Expansion Act for the 21st Century''.

SEC. 2. HIGH-SPEED INTERCITY RAIL FACILITY BONDS.

    (a) Amendment.--Chapter 261 of title 49, United States Code, is 
amended by adding at the end the following new section:
``Sec. 26106. High-speed rail infrastructure bonds
    ``(a) Designation.--The Secretary may designate bonds under this 
section 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 interstate compact under section 410 of the 
                Amtrak Reform and Accountability Act of 1997 (49 U.S.C 
                24101 nt); or
                    ``(C) an interstate compact described in 
                subparagraph (B);
            ``(2) the bonds are for the purpose of financing--
                    ``(A) projects to provide a major portion of the 
                infrastructure required to complete a railroad 
                passenger transportation corridor, for transportation 
                described in section 20102(1)(A)(ii), designed for 
                sustained cruising speeds of 125 miles per hour or 
                more, but only if the Secretary determines that the 
                projects are part of a viable and comprehensive 
                railroad passenger transportation corridor design for 
                high-speed intercity rail passenger service; or
                    ``(B) projects for the Alaska Railroad;
            ``(3) for a railroad passenger transportation corridor 
        design that includes the use of freight railroad rights-of-way, 
        a written agreement exists between the applicant and the 
        freight railroad regarding such use, including compensation for 
        such use and assurances regarding the adequacy of 
        infrastructure capacity to accommodate both existing and future 
        freight and passenger operations;
            ``(4) the corridor design eliminates all existing railroad 
        grade crossings and requires no additional railroad grade 
        crossings to be created; and
            ``(5) the applicant agrees to comply with the standards of 
        section 24312 of this title, as in effect on September 1, 2001, 
        with respect to the project.
    ``(b) Bond Amount Limitation.--The Secretary may designate bonds 
under this section in amounts not to exceed $3,600,000,000 for each of 
the fiscal years 2003 through 2012. Any amount of the limitation under 
this subsection not used for a fiscal year may be carried over and used 
as an additional limitation amount for any subsequent fiscal year.
    ``(c) Preference.--The Secretary shall give preference to the 
designation under this section of bonds for projects--
            ``(1) with respect to which the State or States will 
        provide State funds, for purposes other than paying the 
        principal or interest on the bonds, that are not derived, 
        directly or indirectly, from transfers from the Highway Trust 
        Fund under section 9503 of the Internal Revenue Code of 1986; 
        or
            ``(2) which propose to link rail passenger service with 
        other modes of transportation.
    ``(d) Timely Disposition of Application.--The Secretary shall grant 
or deny a requested designation within 9 months after receipt of an 
application.
    ``(e) Annual Report.--The issuer of bonds designated under this 
section shall report annually to the Secretary regarding the terms of 
outstanding designated bonds and the progress made with respect to the 
project financed by the bonds.
    ``(f) Tax Provisions.--
            ``(1) Exclusion from gross income.--The interest on a bond 
        designated by the Secretary under subsection (a) shall be 
        excluded from gross income under section 103 of the Internal 
        Revenue Code of 1986, notwithstanding section 149(c) of such 
        Code.
            ``(2) Exemption from volume cap.--For purposes of section 
        146 of such Code, a bond designated by the Secretary under 
        subsection (a) of this section shall be considered to be exempt 
        from the volume cap of the issuing authority in the same manner 
        as bonds listed in subsection (g) of such section 146.''.
    (b) Table of Sections Amendment.--The table of sections of chapter 
261 of title 49, United States Code, is amended by adding after the 
item relating to section 26105 the following new item:

``26106.  High-speed rail infrastructure bonds.''.

SEC. 3. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT.

    (a) Corridor Development.--
            (1) Amendments.--Section 26101 of title 49, United States 
        Code, is amended--
                    (A) in the section heading, by striking 
                ``planning'' and inserting ``development'';
                    (B) in the heading of subsection (a), by striking 
                ``Planning'' and inserting ``Development'';
                    (C) by striking ``corridor planning'' each place it 
                appears and inserting ``corridor development'';
                    (D) in subsection (b)(1)--
                            (i) by inserting ``, or if it is an 
                        activity described in subparagraph (M)'' after 
                        ``high-speed rail improvements'';
                            (ii) by striking ``and'' at the end of 
                        subparagraph (K);
                            (iii) by striking the period at the end of 
                        subparagraph (L) and inserting ``; and''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
            ``(M) the acquisition of locomotives, rolling stock, track, 
        and signal equipment.''; and
                    (E) in subsection (c)(2), by striking ``planning'' 
                and inserting ``development''.
            (2) Conforming amendment.--The item relating to section 
        26101 in the table of sections of chapter 261 of title 49, 
        United States Code, is amended by striking ``planning'' and 
        inserting ``development''.
    (b) Authorization of Appropriations.--Section 26104 of title 49, 
United States Code, is amended to read as follows:
``Sec. 26104. Authorization of appropriations
    ``(a) Fiscal Years 2002 Through 2009.--There are authorized to be 
appropriated to the Secretary--
            ``(1) $25,000,000 for carrying out section 26101; and
            ``(2) $10,000,000 for carrying out section 26102,
for each of the fiscal years 2002 through 2009.
    ``(b) Funds To Remain Available.--Funds made available under this 
section shall remain available until expended.''.

SEC. 4. REHABILITATION AND IMPROVEMENT FINANCING.

    (a) Definitions.--Section 102(7) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 802(7)) is amended to read as 
follows:
            ``(7) `railroad' has the meaning given that term in section 
        20102 of title 49, United States Code; and''.
    (b) General Authority.--Section 502(a) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(a)) is 
amended by striking ``Secretary may provide direct loans and loan 
guarantees to State and local governments,'' and inserting ``Secretary 
shall provide direct loans and loan guarantees to State and local 
governments, interstate compacts entered into under section 410 of the 
Amtrak Reform and Accountability Act of 1997 (49 U.S.C 24101 nt),''.
    (c) Extent of Authority.--Section 502(d) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(d)) is 
amended--
            (1) by striking ``$3,500,000,000'' and inserting 
        ``$35,000,000,000'';
            (2) by striking ``$1,000,000,000'' and inserting 
        ``$7,000,000,000''; and
            (3) by adding at the end the following new sentence: ``The 
        Secretary shall not establish any limit on the proportion of 
        the unused amount authorized under this subsection that may be 
        used for 1 loan or loan guarantee.''.
    (d) Cohorts of Loans.--Section 502(f) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(f)) is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``and'' at the end of subparagraph 
                (D);
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (C) by adding after subparagraph (D) the following 
                new subparagraph:
                    ``(E) the size and characteristics of the cohort of 
                which the loan or loan guarantee is a member; and''; 
                and
            (2) by adding at the end of paragraph (4) the following: 
        ``A cohort may include loans and loan guarantees. The Secretary 
        shall not establish any limit on the proportion of a cohort 
        that may be used for 1 loan or loan guarantee.''.
    (e) Conditions of Assistance.--Section 502 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822) is 
amended--
            (1) in subsection (f)(2)(A), by inserting ``, if any'' 
        after ``collateral offered''; and
            (2) by adding at the end of subsection (h) the following:
``The Secretary shall not require an applicant for a direct loan or 
loan guarantee under this section to provide collateral. The Secretary 
shall not require that an applicant for a direct loan or loan guarantee 
under this section have previously sought the financial assistance 
requested from another source. The Secretary shall require recipients 
of direct loans or loan guarantees under this section to apply the 
standards of section 26106(a)(5) of title 49, United States Code, to 
their projects, except for projects primarily benefiting Class III 
freight railroads.''.
    (f) Time Limit for Approval or Disapproval.--Section 502 of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822) is amended by adding at the end the following new subsection:
    ``(i) Time Limit for Approval or Disapproval.--Not later than 180 
days after receiving a complete application for a direct loan or loan 
guarantee under this section, the Secretary shall approve or disapprove 
the application.''.
    (g) Fees and Charges.--Section 503 of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 823) is amended by adding 
at the end the following new subsection:
    ``(l) Fees and Charges.--Except as provided in this title, the 
Secretary may not assess any fees, including user fees, or charges in 
connection with a direct loan or loan guarantee provided under section 
502.''.
    (h) Substantive Criteria and Standards.--Not later than 30 days 
after the date of the enactment of this Act, the Secretary of 
Transportation shall publish in the Federal Register and post on the 
Department of Transportation web site the substantive criteria and 
standards used by the Secretary to determine whether to approve or 
disapprove applications submitted under section 502 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822).