# Public Law 110-432/Division B/Title III
## TITLE III—INTERCITY PASSENGER RAIL POLICY
### SEC. 301. CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL SERVICE.

    (a) In General—
       Part C of subtitle V is amended by inserting the following after chapter 243:
          ``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.
                   ``24406. Authorization of appropriations.
          ``§ 24401. Definitions
          ``In this chapter:
                ``(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 227 of this title for—
                   ``(A) acquiring, constructing, improving, or inspecting equipment, track and track structures, 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, 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 intercity rail passenger transportation, as defined in section 24102 of this title.
          ``§ 24402. Capital investment grants to support intercity passenger rail service
             ``(a) GENERAL AUTHORITY.—
                ``(1) The Secretary of Transportation may make grants under this section to an applicant to assist in financing the capital costs of facilities, infrastructure, and equipment necessary to provide or improve intercity passenger rail transportation.
                ``(2) Consistent with the requirements of this chapter, the Secretary shall require that a grant under this section be subject to the terms, conditions, requirements, and provisions the Secretary decides are necessary or appropriate for the purposes of this section, including requirements for the disposition of net increases in value of real property resulting from the project assisted under this section and shall prescribe procedures and schedules for the awarding of grants under this title, including application and qualification procedures and a record of decision on applicant eligibility. The Secretary shall issue a final rule establishing such procedures not later than 2 years after the date of enactment of the Passenger Rail Investment and Improvement Act of 2008. For the period prior to the earlier of the issuance of such a rule or 2 years after the date of enactment of such Act, the Secretary shall issue interim guidance to applicants covering such procedures, and administer the grant program authorized under this section pursuant to such guidance.
             ``(b) PROJECT AS PART OF STATE RAIL PLAN.—
                ``(1) The Secretary may not approve a grant for a project under this section unless the Secretary finds that the project is part of a State rail plan developed under chapter 227 of this title, or under the plan required by section 211 of the Passenger Rail Investment and Improvement Act of 2008, and that the applicant or recipient has or will have the legal, financial, and technical capacity to carry out the project, satisfactory continuing control over the use of the equipment or facilities, and the capability and willingness to maintain the equipment or facilities.
                ``(2) An applicant shall provide sufficient information upon which the Secretary can make the findings required by this subsection.
                ``(3) If an applicant has not selected the proposed operator of its service competitively, the applicant shall provide written justification to the Secretary showing why the proposed operator is the best, taking into account price and other factors, and that use of the proposed operator will not unnecessarily increase the cost of the project.
             ``(c) PROJECT SELECTION CRITERIA.—The Secretary, in selecting the recipients of financial assistance to be provided under subsection (a), shall—
                ``(1) require—
                   ``(A) that the project be part of a State rail plan developed under chapter 227 of this title, or under the plan required by section 211 of the Passenger Rail Investment and Improvement Act of 2008;
                   ``(B) that the applicant or recipient has or will have the legal, financial, and technical capacity to carry out the project, satisfactory continuing control over the use of the equipment or facilities, and the capability and willingness to maintain the equipment or facilities;
                   ``(C) that the applicant provides sufficient information upon which the Secretary can make the findings required by this subsection;
                   ``(D) that if an applicant has selected the proposed operator of its service competitively, that the applicant provide written justification to the Secretary showing why the proposed operator is the best, taking into account costs and other factors;
                   ``(E) that each proposed project meet all safety and security requirements that are applicable to the project under law; and
                   ``(F) that each project be compatible with, and operated in conformance with—
                      ``(i) plans developed pursuant to the requirements of section 135 of title 23, United States Code; and
                      ``(ii) the national rail plan (if it is available);
                ``(2) select projects—
                   ``(A) that are anticipated to result in significant improvements to intercity rail passenger service, including, but not limited to, consideration of—
                      ``(i) the project’s levels of estimated ridership, increased on-time performance, reduced trip time, additional service frequency to meet anticipated or existing demand, or other significant service enhancements as measured against minimum standards developed under section 207 of the Passenger Rail Investment and Improvement Act of 2008;
                      ``(ii) the project’s anticipated favorable impact on air or highway traffic congestion, capacity, or safety; and
                      ``(iii) identification of the project by the Surface Transportation Board as necessary to improve the ontime performance and reliability of intercity passenger rail under section 24308(f);
                   ``(B) for which there is a high degree of confidence that the proposed project is feasible and will result in the anticipated benefits, as indicated by—
                      ``(i) the project’s precommencement compliance with environmental protection requirements;
                      ``(ii) the readiness of the project to be commenced;
                      ``(iii) the timing and amount of the project’s future noncommitted investments;
                      ``(iv) the commitment of any affected host rail carrier to ensure the realization of the anticipated benefits; and
                      ``(v) other relevant factors as determined by the Secretary; and
                   ``(C) for which the level of the anticipated benefits compares favorably to the amount of Federal funding requested under this chapter; and
                ``(3) give greater consideration to projects—
                   ``(A) that are anticipated to result in benefits to other modes transportation and to the public at large, including, but not limited to, consideration of the project’s—
                      ``(i) encouragement of intermodal connectivity through provision of direct connections between train stations, airports, bus terminals, subway stations, ferry ports, and other modes of transportation;
                      ``(ii) anticipated improvement of freight or commuter rail operations;
                      ``(iii) encouragement of the use of positive train control technologies;
                      ``(iv) environmental benefits, including projects that involve the purchase of environmentally sensitive, fuel-efficient, and cost-effective passenger rail equipment;
                      ``(v) anticipated positive economic and employment impacts;
                      ``(vi) encouragement of State and private contributions toward station development, energy and environmentally efficiency, and economic benefits; and
                      ``(vii) falling under the description in section 5302(a)(1)(G) of this title as defined to support intercity passenger rail service; and
                   ``(B) that incorporate equitable financial participation in the project’s financing, including, but not limited to, consideration of—
                      ``(i) donated property interests or services;
                      ``(ii) financial contributions by freight and commuter rail carriers commensurate with the benefit expected to their operations; and
                      ``(iii) financial commitments from host railroads, non-Federal governmental entities, nongovernmental entities, and others.
             ``(d) STATE RAIL PLANS.—State rail plans completed before the date of enactment of the Passenger Rail Investment and Improvement Act of 2008 that substantially meet the requirements of chapter 227 of this title, as determined by the Secretary pursuant to section 22506 of this title, shall be deemed by the Secretary to have met the requirements of subsection (c)(1)(A) of this section.
             ``(e) AMTRAK ELIGIBILITY.—To receive a grant under this section, Amtrak may enter into a cooperative agreement with 1 or more States to carry out 1 or more projects on a State rail plan’s ranked list of rail capital projects developed under section 22504(a)(5) of this title. For such a grant, Amtrak may not use Federal funds authorized under section 101(a) or (c) of the Passenger Rail Investment and Improvement Act of 2008 to fulfill the non-Federal share requirements under subsection (g) of this section.
             ``(f) LETTERS OF INTENT AND EARLY SYSTEMS WORK AGREEMENTS.—
                ``(1) The Secretary may issue a letter of intent to an applicant announcing an intention to obligate, for a major capital project under this section, an amount from future available budget authority specified in law that is not more than the amount stipulated as the financial participation of the Secretary in the project.
                ``(2) At least 30 days before issuing a letter under paragraph (1) of this subsection, the Secretary shall notify in writing the Committee on Transportation and Infrastructure of the House of Representatives, the Committee on Commerce, Science, and Transportation of the Senate, and the House and Senate Committees on Appropriations of the proposed letter or agreement. The Secretary shall include with the notification a copy of the proposed letter or agreement, the criteria used in subsection (c) for selecting the project for a grant award, and a description of how the project meets such criteria.
                ``(3) An obligation or administrative commitment may be made only when amounts are appropriated. The letter of intent shall state that the contingent commitment is not an obligation of the Federal Government, and is subject to the availability of appropriations under Federal law and to Federal laws in force or enacted after the date of the contingent commitment.
             ``(g) FEDERAL SHARE OF NET PROJECT COST.—
                ``(1)(A) Based on engineering studies, studies of economic feasibility, and information on the expected use of equipment or facilities, the Secretary shall estimate the net project cost.
                   ``(B) A grant for the project shall not exceed 80 percent of the project net capital cost.
                   ``(C) The Secretary shall give priority in allocating future obligations and contingent commitments to incur obligations to grant requests seeking a lower Federal share of the project net capital cost.
                ``(2) Up to an additional 20 percent of the required non-Federal funds may be funded from amounts appropriated to or made available to a department or agency of the Federal Government that are eligible to be expended for transportation.
                ``(3) The following amounts, not to exceed $15,000,000 per fiscal year, shall be available to each applicant as a credit toward an applicant’s matching requirement for a grant awarded under this section—
                   ``(A) in each of fiscal years 2009, 2010, and 2011—
                      ``(i) 50 percent of the average of amounts expended in fiscal years 2002 through 2008 by an applicant for capital projects related to intercity passenger rail service; and
                      ``(ii) 50 percent of the average of amounts expended in fiscal years 2002 through 2008 by an applicant for operating costs of such service; and
                   ``(B) in each of fiscal years 2010, 2011 and 2012, 50 percent of the amount by which the amounts expended for capital projects and operating costs related to intercity passenger rail service by an applicant in the prior fiscal year exceed the average capital and operating expenditures made for such service in fiscal years 2006, 2007, and 2008. The Secretary may require such information as necessary to verify such expenditures. Credits made available to an applicant in a fiscal year under this paragraph may only be applied towards grants awarded in that fiscal year.
                ``(4) The Federal share of expenditures for capital improvements under this chapter may not exceed 100 percent.
             ``(h) 2-YEAR AVAILABILITY.—Funds appropriated under this section shall remain available until expended. If any amount provided as a grant under this section is not obligated or expended for the purposes described in subsection (a) within 2 years after the date on which the State received the grant, such sums shall be returned to the Secretary for other intercity passenger rail development projects under this section at the discretion of the Secretary.
             ``(i) COOPERATIVE AGREEMENTS.—
                ``(1) IN GENERAL.—A metropolitan planning organization, State transportation department, or other project sponsor may enter into an agreement with any public, private, or nonprofit entity to cooperatively implement any project funded with a grant under this chapter.
                ``(2) FORMS OF PARTICIPATION.—Participation by an entity under paragraph (1) may consist of—
                   ``(A) ownership or operation of any land, facility, locomotive, rail car, vehicle, or other physical asset associated with the project;
                   ``(B) cost-sharing of any project expense;
                   ``(C) carrying out administration, construction management, project management, project operation, or any other management or operational duty associated with the project; and
                   ``(D) any other form of participation approved by the Secretary.
                ``(3) SUBALLOCATION.—A State may allocate funds under this section to any entity described in paragraph (1).
             ``(j) SPECIAL TRANSPORTATION CIRCUMSTANCES.—In carrying out this section, the Secretary shall allocate an appropriate portion of the amounts available under this section to provide grants to States—
                ``(1) in which there is no intercity passenger rail service for the purpose of funding freight rail capital projects that are on a State rail plan developed under chapter 227 of this title that provide public benefits (as defined in chapter 227) as determined by the Secretary; or
                ``(2) in which the rail transportation system is not physically connected to rail systems in the continental United States or may not otherwise qualify for a grant under this section due to the unique characteristics of the geography of that State or other relevant considerations, for the purpose of funding transportation-related capital projects.
             ``(k) SMALL CAPITAL PROJECTS.—The Secretary shall make not less than 5 percent annually available from the amounts authorized under section 101(c) of the Passenger Rail Investment and Improvement Act of 2008 beginning in fiscal year 2009 for grants for capital projects eligible under this section not exceeding $2,000,000, including costs eligible under section 209(d) of that Act. For grants awarded under this subsection, the Secretary may waive requirements of this section, including state rail plan requirements, as appropriate.
             ``(l) NONMOTORIZED TRANSPORTATION ACCESS AND STORAGE.—Grants under this chapter may be used to provide access to rolling stock for nonmotorized transportation, including bicycles, and recreational equipment, and to provide storage capacity in trains for such transportation, equipment, and other luggage, to ensure passenger safety.
          ``§ 24403. Project management oversight
             ``(a) PROJECT MANAGEMENT PLAN REQUIREMENTS.—To receive Federal financial assistance for a major capital project under this chapter, an applicant must prepare and carry out a project management plan approved by the Secretary of Transportation. The plan shall provide for—
                ``(1) adequate recipient staff organization with well-defined reporting relationships, statements of functional responsibilities, job descriptions, and job qualifications;
                ``(2) a budget covering the project management organization, appropriate consultants, property acquisition, utility relocation, systems demonstration staff, audits, and miscellaneous payments the recipient may be prepared to justify;
                ``(3) a construction schedule for the project;
                ``(4) a document control procedure and recordkeeping system;
                ``(5) a change order procedure that includes a documented, systematic approach to handling the construction change orders;
                ``(6) organizational structures, management skills, and staffing levels required throughout the construction phase;
                ``(7) quality control and quality assurance functions, procedures, and responsibilities for construction, system installation, and integration of system components;
                ``(8) material testing policies and procedures;
                ``(9) internal plan implementation and reporting requirements;
                ``(10) criteria and procedures to be used for testing the operational system or its major components;
                ``(11) periodic updates of the plan, especially related to project budget and project schedule, financing, and ridership estimates; and
                ``(12) the recipient’s commitment to submit periodically a project budget and project schedule to the Secretary.
             ``(b) SECRETARIAL OVERSIGHT.—
                ``(1) The Secretary may use no more than 1 percent of amounts made available in a fiscal year for capital projects under this chapter to enter into contracts to oversee the construction of such projects.
                ``(2) The Secretary may use amounts available under paragraph (1) of this subsection to make contracts for safety, procurement, management, and financial compliance reviews and audits of a recipient of amounts under paragraph (1).
                ``(3) The Federal Government shall pay the entire cost of carrying out a contract under this subsection.
             ``(c) ACCESS TO SITES AND RECORDS.—Each recipient of assistance under this chapter shall provide the Secretary and a contractor the Secretary chooses under subsection (b) of this section with access to the construction sites and records of the recipient when reasonably necessary.
          ``§ 24404. Use of capital grants to finance first-dollar liability of grant project
          ``Notwithstanding the requirements of section 24402 of this chapter, the Secretary of Transportation may approve the use of a capital assistance grant under this chapter to fund self-insured retention of risk for the first tier of liability insurance coverage for rail passenger service associated with the grant, but the coverage may not exceed $20,000,000 per occurrence or $20,000,000 in aggregate per year.
          ``§ 24405. Grant conditions
             ``(a) BUY AMERICA.—(1) The Secretary of Transportation may obligate an amount that may be appropriated to carry out this chapter for a project only if the steel, iron, and manufactured goods used in the project are produced in the United States.
                ``(2) The Secretary of Transportation may waive paragraph (1) of this subsection if the Secretary finds that—
                   ``(A) applying paragraph (1) would be inconsistent with the public interest;
                   ``(B) the steel, iron, and goods produced in the United States are not produced in a sufficient and reasonably available amount or are not of a satisfactory quality;
                   ``(C) rolling stock or power train equipment cannot be bought and delivered in the United States within a reasonable time; or
                   ``(D) including domestic material will increase the cost of the overall project by more than 25 percent.
                ``(3) For purposes of this subsection, in calculating the components’ costs, labor costs involved in final assembly shall not be included in the calculation.
                ``(4) If the Secretary determines that it is necessary to waive the application of paragraph (1) based on a finding under paragraph (2), the Secretary shall, before the date on which such finding takes effect—
                   ``(A) publish in the Federal Register a detailed written justification as to why the waiver is needed; and
                   ``(B) provide notice of such finding and an opportunity for public comment on such finding for a reasonable period of time not to exceed 15 days.
                ``(5) Not later than December 31, 2012, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on any waivers granted under paragraph (2).
                ``(6) The Secretary of Transportation may not make a waiver under paragraph (2) of this subsection for goods produced in a foreign country if the Secretary, in consultation with the United States Trade Representative, decides that the government of that foreign country—
                   ``(A) has an agreement with the United States Government under which the Secretary has waived the requirement of this subsection; and
                   ``(B) has violated the agreement by discriminating against goods to which this subsection applies that are produced in the United States and to which the agreement applies.
                ``(7) A person is ineligible to receive a contract or subcontract made with amounts authorized under this chapter if a court or department, agency, or instrumentality of the Government decides the person intentionally—
                   ``(A) affixed a ‘Made in America’ label, or a label with an inscription having the same meaning, to goods sold in or shipped to the United States that are used in a project to which this subsection applies but not produced in the United States; or
                   ``(B) represented that goods described in subparagraph (A) of this paragraph were produced in the United States.
                ``(8) The Secretary may not impose any limitation on assistance provided under this chapter that restricts a State from imposing more stringent requirements than this subsection on the use of articles, materials, and supplies mined, produced, or manufactured in foreign countries in projects carried out with that assistance or restricts a recipient of that assistance from complying with those State-imposed requirements.
                ``(9) The Secretary may allow a manufacturer or supplier of steel, iron, or manufactured goods to correct after bid opening any certification of noncompliance or failure to properly complete the certification (but not including failure to sign the certification) under this subsection if such manufacturer or supplier attests under penalty of perjury that such manufacturer or supplier submitted an incorrect certification as a result of an inadvertent or clerical error. The burden of establishing inadvertent or clerical error is on the manufacturer or supplier.
                ``(10) A party adversely affected by an agency action under this subsection shall have the right to seek review under section 702 of title 5.
                ``(11) The requirements of this subsection shall only apply to projects for which the costs exceed $100,000.
             ``(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 chapter 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 that definition or in which that definition applies, including—
                ``(1) the Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.);
                ``(2) the Railway Labor Act (43 U.S.C. 151 et seq.); and
                ``(3) the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.).
             ``(c) GRANT CONDITIONS.—The Secretary shall require as a condition of making any grant under this chapter for a project that uses 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;
                   ``(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
                   ``(D) an assurance that an applicant complies with liability requirements consistent with section 28103 of this title; 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 Amtrak 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 chapter.
             ``(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 chapter 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). The arbitrator shall be guided by prevailing national standard rates of pay, benefits, and working conditions for comparable work. 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) Amtrak’s access rights to railroad rights of way and facilities under current law.
             ``(f) LIMITATION.—No grants shall be provided under this chapter for commuter rail passenger transportation, as defined in section 24102(4) of this title.
          ``§ 24406. Authorization of appropriations
          ``There are authorized to be appropriated to the Secretary of Transportation for capital grants under this chapter the following amounts:
                ``(1) For fiscal year 2009, $100,000,000.
                ``(2) For fiscal year 2010, $300,000,000.
                ``(3) For fiscal year 2011, $400,000,000.
                ``(4) For fiscal year 2012, $500,000,000.
                ``(5) For fiscal year 2013, $600,000,000.´´.
    (b) CONFORMING AMENDMENT.—
       The chapter analysis for subtitle V is amended by inserting the following after the item relating to chapter 243:
          ``244. INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL ASSISTANCE.....24401´´.
    (c) ASSISTANCE.—
       In implementing section 24405(a) of title 49, United States Code, the Federal Highway Administration shall, upon request by the Federal Railroad Administration, assist the Federal Railroad Administration in developing a process for posting on its website or distributing via email notices of waiver requests received pursuant to such subsection and soliciting public comments on the intent to issue a waiver. The Federal Railroad Administration’s development of such a process does not relieve the Federal Railroad Administration of the requirements under paragraph (4) of such subsection.

### SEC. 302. CONGESTION GRANTS.

    (a) AMENDMENT.—
       Chapter 241 of title 49, United States Code, is amended by adding at the end the following new section:
          ``§ 24105. Congestion grants
             ``(a) AUTHORITY.—The Secretary of Transportation may make grants to States, or to Amtrak in cooperation with States, for financing the capital costs of facilities, infrastructure, and equipment for high priority rail corridor projects necessary to reduce congestion or facilitate ridership growth in intercity rail passenger transportation.
             ``(b) ELIGIBLE PROJECTS.—Projects eligible for grants under this section include projects—
                ``(1) identified by Amtrak as necessary to reduce congestion or facilitate ridership growth in intercity rail passenger transportation along heavily traveled rail corridors;
                ``(2) identified by the Surface Transportation Board as necessary to improve the on time performance and reliability of intercity rail passenger transportation under section 24308(f); and
                ``(3) designated by the Secretary as being sufficiently advanced in development to be capable of serving the purposes described in subsection (a) on an expedited schedule.
             ``(c) FEDERAL SHARE.—The Federal share of the cost of a project financed under this section shall not exceed 80 percent.
             ``(d) GRANT CONDITIONS.—The Secretary of Transportation shall require each recipient of a grant under this section to comply with the grant requirements of section 24405 of this title.
             ``(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated, from amounts made available under section 301 of the Passenger Rail Investment and Improvement Act of 2008, to the Secretary to carry out this section—
                ``(1) $50,000,000 for fiscal year 2010;
                ``(2) $75,000,000 for fiscal year 2011;
                ``(3) $100,000,000 for fiscal year 2012; and
                ``(4) $100,000,000 for fiscal year 2013.´´.
    (b) TABLE OF SECTIONS AMENDMENT.—
       The table of sections for such chapter 241 is amended by adding at the end the following new item:
          ``24105. Congestion grants.´´.

### SEC. 303. STATE RAIL PLANS.

    (a) IN GENERAL.—
       Part B of subtitle V is amended by adding at the end the following:
          ``CHAPTER 227—STATE RAIL PLANS
                   ``Sec.
                   ``22701. Definitions.
                   ``22702. Authority.
                   ``22703. Purposes.
                   ``22704. Transparency; coordination; review.
                   ``22705. Content.
                   ``22706. Review.
          ``§ 22701. 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 Amtrak, 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, including Amtrak, 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.
          ``§ 22702. Authority
             ``(a) IN GENERAL.—Each State may prepare and maintain a State rail plan in accordance with the provisions of this chapter.
             ``(b) REQUIREMENTS.—The Secretary shall establish the minimum requirements for the preparation and periodic revision of a State rail plan, including that 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.
          ``§ 22703. 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, including the plan required under section 135 of title 23, and set forth rail transportation’s role within the State transportation system.
          ``§ 22704. 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.
          ``§ 22705. Content
             ``(a) IN GENERAL.—Each State rail plan shall, at a minimum, 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, landuse, 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 stakeholders.
                ``(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, at a minimum, 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 on 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.
          ``§ 22706. Review
          ``The Secretary shall prescribe procedures for States to submit State rail plans for review under this title, including standardized format and data requirements. State rail plans completed before the date of enactment of the Passenger Rail Investment and Improvement Act of 2008 that substantially meet the requirements of this chapter, as determined by the Secretary, shall be deemed by the Secretary to have met the requirements of this chapter.´´.
    (b) CONFORMING AMENDMENT.—
       The chapter analysis for subtitle V is amended by inserting the following after the item relating to chapter 223:
          ``227. State rail plans.....22701´´.

### SEC. 304. TUNNEL PROJECT.

    (a) NEW TUNNEL ALIGNMENT AND ENVIRONMENTAL REVIEW.—
       Not later than September 30, 2013, the Federal Railroad Administration, working with Amtrak, the Surface Transportation Board, the City of Baltimore, the State of Maryland, and rail operators described in subsection (b), as appropriate, shall—
       (1) select and approve, as applicable, a new rail tunnel alignment in Baltimore that will permit an increase in train speed and service reliability; and
       (2) ensure completion of the related environmental review process.
    (b) AFFECTED RAIL OPERATORS.—
       Rail operators other than Amtrak may participate in activities described in subsection (a) to the extent that they can demonstrate the intention and ability to contribute to the construction of the new tunnel.
    (c) AUTHORIZATION OF APPROPRIATIONS.—
       There are authorized to be appropriated to the Secretary for carrying out this section $60,000,000 for the period encompassing fiscal years 2009 through 2013.

### SEC. 305. NEXT GENERATION CORRIDOR TRAIN EQUIPMENT POOL.

    (a) IN GENERAL.—
       Within 180 days after the date of enactment of this Act, Amtrak shall establish a Next Generation Corridor Equipment Pool Committee, comprised of representatives of Amtrak, the Federal Railroad Administration, host freight railroad companies, passenger railroad equipment manufacturers, interested States, and, as appropriate, other passenger railroad operators. The purpose of the Committee shall be to design, develop specifications for, and procure standardized next-generation corridor equipment.
    (b) FUNCTIONS.—
       The Committee may—
       (1) determine the number of different types of equipment required, taking into account variations in operational needs and corridor infrastructure;
       (2) establish a pool of equipment to be used on corridor routes funded by participating States; and
       (3) subject to agreements between Amtrak and States, utilize services provided by Amtrak to design, maintain and remanufacture equipment.
    (c) COOPERATIVE AGREEMENTS.—
       Amtrak and States participating in the Committee may enter into agreements for the funding, procurement, remanufacture, ownership, and management of corridor equipment, including equipment currently owned or leased by Amtrak and next-generation corridor equipment acquired as a result of the Committee’s actions, and may establish a corporation, which may be owned or jointly-owned by Amtrak, participating States, or other entities, to perform these functions.
    (d) FUNDING.—
       In addition to the authorizations provided in this section, capital projects to carry out the purposes of this section shall be eligible for grants made pursuant to chapter 244 of title 49, United States Code.
    (e) AUTHORIZATION OF APPROPRIATIONS.—
       There are authorized to be appropriated to the Secretary $5,000,000 for fiscal year 2010, to remain available until expended, for grants to Amtrak and States participating in the Next Generation Corridor Train Equipment Pool Committee established under this section for the purpose of designing, developing specifications for, and initiating the procurement of an initial order of 1 or more types of standardized nextgeneration corridor train equipment and establishing a jointly-owned corporation to manage that equipment.

### SEC. 306. RAIL COOPERATIVE RESEARCH PROGRAM.

    (a) ESTABLISHMENT AND CONTENT.—
       Chapter 249 is amended by adding at the end the following:
          ``§ 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;
                ``(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;
                ``(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;
                ``(12) to review rail crossing safety improvements, including improvements using new safety technology; and
                ``(13) to review and develop technology designed to reduce train horn noise and its effect on communities, including broadband horn technology.
             ``(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.
             ``(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary of Transportation $5,000,000 for each of fiscal years 2010 through 2013 for carrying out this section.´´.
    (b) CLERICAL AMENDMENT.—
       The chapter analysis for chapter 249 is amended by adding at the end the following:
          ``24910. Rail cooperative research program.´´.

### SEC. 307. FEDERAL RAIL POLICY.

    Section 103 is amended—
       (1) by inserting ``IN GENERAL.—´´ before ``The Federal´´ in subsection (a);
       (2) by striking the second and third sentences of subsection (a);
       (3) by inserting after subsection (a) the following:
             ``(b) 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.´´; and
       (4) by adding at the end the following:
             ``(j) ADDITIONAL DUTIES OF THE ADMINISTRATOR.—The Administrator shall—
                ``(1) provide assistance to States in developing State rail plans prepared under chapter 227 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 2008;
                ``(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.
             ``(k) PERFORMANCE GOALS AND REPORTS.—
                ``(1) PERFORMANCE GOALS.—In conjunction with the objectives established and activities undertaken under subsection (j) of this section, 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 subsection (j).
                ``(3) SUBMISSION WITH PRESIDENT’S BUDGET.—Beginning with fiscal year 2010 and each fiscal year thereafter, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, 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.´´.