SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Older Industrial Region Rail and 
Port Access and Modernization Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the growth of commerce in northern New England is 
        hampered by a decaying rail infrastructure;
            (2) during the 5-year period beginning on the date of 
        enactment of this Act, international trade shipping is 
        projected to increase by more than 20 percent;
            (3) in the shipping industry, there is a widespread 
        international trend for shippers to use only ports with double-
        stack rail access;
            (4) aging rail lines and constricted passage in older 
        industrial States are--
                    (A) limiting the movement of cargo and individuals 
                throughout that area; and
                    (B) restricting access to deepwater ports; and
            (5) improving rail lines and double-stack freight rail 
        passage to allow rail connections to and through other States 
        and provinces will enable the economy of the older industrial 
        region to grow and prosper by bringing new industry into the 
        region that will result in growth in high wage jobs.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Fund.--The term ``Fund'' means the Older Industrial 
        Rail Modernization and Port Access Fund established by section 
        4(g).
            (2) Older industrial region.--The term ``older industrial 
        region'' means the northeastern area of the United States.
            (3) Older industrial state.--The term ``older industrial 
        State'' means--
                    (A) Vermont;
                    (B) Maine; and
                    (C) New Hampshire.
            (4) Rail project.--The term ``rail project'' means a 
        project for the acquisition, rehabilitation, or improvement of 
        railroad facilities or equipment, as described in section 511 
        of the Railroad Revitalization and Regulatory Reform Act of 
        1976 (45 U.S.C. 831).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.

SEC. 4. DIRECT FEDERAL ASSISTANCE.

    (a) In General.--
            (1) Grants.--Subject to the availability of appropriations, 
        the Secretary shall make a grant under this section to each 
        older industrial State that submits an application to the 
        Secretary that demonstrates, to the satisfaction of the 
        Secretary, a need for assistance under this section in carrying 
        out 1 or more transportation projects described in 
subsection (b), (c), (d), or (e) that are necessary to improve rail 
transport in that State.
            (2) Grant agreement.--The Secretary shall enter into a 
        grant agreement with each older industrial State that receives 
        a grant under this section. At a minimum, the agreement shall 
        specify that the grant recipient will meet the applicable 
        requirements of this section, including the cost-sharing 
        requirement under subsection (f)(2).
    (b) Grants for Port Access.--The Secretary shall make grants under 
this section for the purposes of connecting all railroads to ports and 
ensuring that double-stack rail cars can travel freely throughout older 
industrial States.
    (c) Grants for Bridge and Tunnel Obstruction Repair and 
Replacement.--The Secretary shall make grants under this section for 
the purpose of enlarging tunnels and embankments, removing, repairing, 
or replacing bridges or other obstructions that inhibit the free 
movement of freight or passenger rail cars and the use of double-stack 
rail cars.
    (d) Grants for Repair of Railroad Beds.--The Secretary shall make 
grants under this section for the purposes of repairing, upgrading, and 
purchasing railbeds and tracks, including improving safety of all 
railroad tracks.
    (e) Grants for Development of Intermodal Facilities.--The Secretary 
shall make grants under this section for the purposes of constructing, 
operating, and maintaining train maintenance facilities and facilities 
for the transfer of goods and individuals between other transportation 
modes, including--
            (1) intermodal truck-train transfer facilities;
            (2) passenger rail stations; and
            (3) bulk fuel transfer facilities.
    (f) Funding Limitations on Expenditures of Funds.--
            (1) Funding.--The grants made under this section shall be 
        made with funds transferred from the Fund.
            (2) Cost-sharing.--
                    (A) In general.--A grant made under this section 
                shall be used to pay the Federal share of the cost of a 
                project conducted under a grant agreement.
                    (B) Federal share.--The Federal share of the cost 
                of a project referred to in subparagraph (A) shall be 
                80 percent of the cost of the project.
            (3) Allocation among states.--
                    (A) In general.--For each of fiscal years 1998 
                through 2001, the Secretary shall, in making grants 
                under this section, allocate available amounts in the 
                Fund among older industrial States in accordance with a 
                formula established by the Secretary in accordance with 
                subparagraph (B).
                    (B) Allocation formula.--In making grants under 
                this section, for each of the fiscal years specified in 
                subparagraph (A), the Secretary shall allocate an equal 
                amount of the amounts available from the Fund to each 
                of the older industrial States that submits 1 or more 
                grant applications that meet the requirements of this 
                section.
    (g) Older Industrial Rail Modernization and Port Access Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a trust fund, to be known as the ``Older 
        Industrial Rail Modernization and Port Access Fund''. The Fund 
        shall consist of--
                    (A) such amounts as are appropriated to the Fund; 
                and
                    (B) any interest earned on investment of amounts in 
                the Fund under paragraph (2).
            (2) Investment of fund.--
                    (A) In general.--The Secretary of the Treasury 
                shall invest such portion of the Fund as is not, in the 
                judgment of the Secretary, required to meet then 
                current withdrawals. Those investments may be made only 
                in interest-bearing obligations of the United States or 
                obligations guaranteed as to both principal and 
                interest by the United States. For that purpose, those 
                obligations may be acquired--
                            (i) on original issue at the issue price, 
                        or
                            (ii) by purchase of outstanding obligations 
                        at the market price.
                    (B) Sale of obligation.--Any obligation acquired by 
                the Fund (except special obligations issued exclusively 
                to the Fund) may be sold by the Secretary of the 
                Treasury at the market price. The special obligations 
                may be redeemed at par plus accrued interest.
                    (C) Credits to fund.--The interest on, and the 
                proceeds from, the sale or redemption of, any 
obligations held in the Fund shall be credited to and form a part of 
the Fund.
            (3) Transfers from fund.--The Secretary of the Treasury 
        shall, on the request of the Secretary of Transportation, 
        transfer from the Fund to the Secretary of Transportation, any 
        amounts that the Secretary of Transportation determines to be 
        necessary to carry out the grant program under this section.
            (4) Administrative expenses.--Not more than 1 percent of 
        the amounts in the Fund may be used by the Secretary of 
        Transportation to cover administrative expenses for carrying 
        out the grant program under this section.
    (h) Applicability of Title 23.--Except as otherwise provided in 
this section, funds made available to an older industrial State under 
this section shall be available for obligation in the manner provided 
for funds apportioned under chapter 1 of title 23, United States Code.
    (i) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Fund to carry out this section $65,000,000 for each of 
        fiscal years 1998 through 2001.
            (2) Availability of funds.--The amounts appropriated 
        pursuant to this subsection shall remain available for 
        obligation until the end of the third fiscal year following the 
        fiscal year for which the amounts are appropriated.

SEC. 5. RAILROAD LOAN AND ASSISTANCE PROGRAM.

    (a) Purpose.--The purpose of this section is to provide assistance 
for rail projects in older industrial States.
    (b) Issuance of Obligations.--The Secretary shall issue to the 
Secretary of the Treasury notes or other obligations pursuant to 
section 512 of the Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 832), in such amounts, and at such times, as may be 
necessary, during the period that the guaranteed obligation is 
outstanding, to--
            (1) pay any amounts required pursuant to the guarantee of 
        the principal amount of an obligation under section 511 of that 
        Act (45 U.S.C. 831) for any eligible rail project described in 
        subsection (c); and
            (2) meet the applicable requirements of this section and 
        sections 511 and 513 of that Act (45 U.S.C. 832 and 833).
    (c) Eligibility.--A rail project that is eligible for assistance 
under this section is a rail project--
            (1) for a railroad that is located in an older industrial 
        State; and
            (2) that promotes the mobility of goods and individuals.
    (d) Limitation.--Notwithstanding any other provision of law, the 
aggregate unpaid principal amounts of obligations that may be 
guaranteed by the Secretary under this section may not exceed 
$50,000,000 during any of fiscal years 1998 through 2001.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Transportation, to be used by the 
Secretary to make guarantees under this section, $5,000,000 for each of 
fiscal years 1998 through 2001.

SEC. 6. REPORT.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Secretary shall submit to Congress and the 
Governor of each older industrial State a report concerning the 
rehabilitation of the rail infrastructure of older industrial States.
Older Industrial Region Rail and Port Access and Modernization Act - Establishes a program of grants by the Secretary of Transportation to applicant older industrial States (Vermont, Maine, and New Hampshire) for assistance in carrying out one or more transportation projects for:  (1) connecting all railroads to ports and ensuring that double-stack rail cars can travel freely throughout such States; (2) enlarging tunnels and embankments and removing, repairing, or replacing bridges or other obstructions that inhibit the free movement of freight or passenger rail cars and the use of double-stack rail cars; (3) repairing, upgrading, and purchasing railbeds and tracks, including improving track safety; and (4) constructing, operating, and maintaining train maintenance facilities and facilities for the transfer of goods and individuals between other transportation modes, including intermodal truck-train transfer facilities, passenger rail stations, and bulk fuel transfer facilities. 
Sets the Federal share of such projects, which the grants represent, at 80 percent. 
Establishes in the Treasury the Older Industrial Rail Modernization and Port Access Fund to carry out this Act.  Authorizes appropriations. 
Directs the Secretary to issue obligations to the Secretary of the Treasury to pay guaranteed loans for rail projects in an older industrial State.  Limits the aggregate unpaid principal amount of such obligations at $50 million for any fiscal year.  Authorizes appropriations.
Older Industrial Region Rail and Port Access and Modernization Act