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[House Report 114-30]
[From the U.S. Government Publishing Office]

114th Congress   }                                      {        Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                      {        114-30

======================================================================

 
            PASSENGER RAIL REFORM AND INVESTMENT ACT OF 2015

                                _______
                                

 February 26, 2015.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 749]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 749) to reauthorize Federal support 
for passenger rail programs, and for other purposes, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Legislative History and Consideration............................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Cost Estimate........................     5
Performance Goals and Objectives.................................     8
Advisory of Earmarks.............................................     9
Duplication of Federal Programs..................................     9
Disclosure of Directed Rule Makings..............................     9
Federal Mandate Statement........................................     9
Preemption Clarification.........................................     9
Advisory Committee Statement.....................................     9
Applicability of Legislative Branch..............................    10
Section-by-Section Analysis of Legislation.......................    10
Changes in Existing Law Made by the Bill, as Reported............    19

                         Purpose of Legislation

    H.R. 749 authorizes the nation's passenger rail programs, 
including the National Railroad Passenger Corporation (Amtrak), 
and Amtrak's Office of the Inspector General, and the Federal 
Railroad Administration's (FRA) loan and grant programs for 
rail investments. H.R. 749 fundamentally changes the 
authorization structure of Amtrak by providing funding by 
service, or ``lines of business'', rather than applying the 
previous structure which provided separate grants for operating 
and capital/debt service activities. It also reforms Amtrak's 
operations, budgeting, and planning processes, and allows for 
more private sector participation in stations, rights-of-way, 
and operations. H.R. 749 makes further changes to intercity 
passenger rail policy administered by FRA, including revisions 
to grant programs, loan programs, and the delivery process for 
projects, to ensure better oversight and accelerate 
infrastructure projects.

                  Background and Need for Legislation

    For nearly 100 years, America was the unquestioned global 
leader in passenger rail. During that time, trains were the 
primary, and in many cases, the only, mode of transportation 
available for medium- and long-distance travel. However, the 
advent of commercial aviation and the Interstate Highway System 
provided new transportation alternatives and changed the 
equation. In the face of this stiff competition, our Nation's 
passenger rail system faded into disuse and disrepair.
    Today, however, passenger rail presents one of the best 
hopes for relieving the country's congested highways and 
airspace. In 2006, the United States population reached 300 
million people, and by 2039 the country is expected to break 
the 400 million mark. The population concentration in the 
nation's urban areas is increasing, in particular on the 
eastern seaboard and the Northeast Corridor (NEC) between 
Washington, D.C., New York City, and Boston. Congestion costs 
also continue to rise. Crippling congestion and poor roads cost 
businesses and commuters almost $115 billion each year in 
wasted time and fuel--up from $24 billion in 1982. In addition, 
Americans spend more than 4 billion hours annually stuck in 
traffic.
    These statistics indicate that passenger rail must be part 
of the solution to the nation's transportation needs. H.R. 749, 
the Passenger Rail Reform and Investment Act of 2015 (PRRIA), 
reforms and improves the nation's intercity passenger rail 
system to meet the challenges of the nation's continued growth.
    Any reform of passenger rail must start with Amtrak, whose 
mission is to provide rail passenger service to the country. 
Since it began providing service in 1971, Amtrak has relied 
upon federal funds to remain solvent. While more efficient 
operations and reforms could help reduce reliance on federal 
funds, the full costs of operations and capital expenses will 
require federal funds for the foreseeable future.
    In addition to federal funding, Amtrak generates revenue 
from operation of its three functions, or lines of business: 
(1) the NEC; (2) state-supported routes; and (3) long-distance 
routes. The NEC is a line of railroad track owned by Amtrak and 
others that runs from Washington, D.C., to Boston, 
Massachusetts. Amtrak operates both its higher speed Acela 
trains and lower speed regional trains on the NEC, while also 
managing the infrastructure. The majority of trains on the NEC, 
however, are not Amtrak's, but commuter railroads' serving 
major cities and their suburbs in the Northeast. Indeed, of the 
2,000 daily trains on the NEC, only approximately 150 are 
Amtrak's. These statistics underscore the importance of the 
NEC, but also show a strong need for infrastructure 
improvements and involvement of the states. PRRIA makes several 
significant steps to increase infrastructure investment in the 
NEC and improve planning and coordination among all users of 
the NEC to ensure the asset is properly utilized and improved 
for better service.
    Amtrak also operates 21 state-supported routes in 19 
states, where states contribute funding to provide additional 
passenger rail services. These are corridors of less than 750 
miles, primarily located in the Northeast, Midwest, and Pacific 
Coast, and connect major metropolitan areas. State-supported 
corridor services carry nearly half of Amtrak's annual riders--
about 15.1 million riders. While states are required, by a 
previous authorization of Amtrak, to contribute funding for 
these corridors, PRRIA ensures that states are accurately 
billed for the services Amtrak provides. It also establishes a 
dispute resolution mechanism to help resolve disagreements on 
costs for the service.
    Finally, Amtrak operates 15 long distance routes that 
utilize a network of over 18,500 miles of privately owned 
freight rail track and carry more than 4.8 million passengers. 
These routes are primarily legacy routes taken over by Amtrak 
from the freight railroads when Amtrak was formed in 1971, and 
are the only Amtrak trains in 23 of the 46 states in the 
network. PRRIA ensures these routes are evaluated to enhance 
efficiency and reduce losses.
    PRRIA not only makes the above noted changes to the way 
each line of business is run, it also advances the lines-of-
business approach by authorizing Amtrak funding for operations 
and capital into two accounts, the NEC account and the National 
Network account, which includes state-supported and long-
distance routes. In addition, Amtrak's planning and grant 
requests must be divided by line of business, therefore, on the 
whole, PRRIA advances Amtrak's reorganization of the company 
into business lines, and prohibits cross-subsidization among 
accounts, except for specific transfer authority available 
after notification to the Amtrak Board of Directors. These 
reforms will enhance accountability and transparency, while 
improving the performance of each business line.
    Beyond Amtrak reforms, PRRIA also focuses on the 
development of the nation's rail system generally. The bill 
leverages infrastructure resources, creates more opportunities 
for non-Federal participation in passenger rail, streamlines 
FRA processes for project development, improves procedures for 
FRA's rail loan program, and enhances oversight of FRA-
administered grant programs. Overall, PRRIA makes reforms to 
passenger rail infrastructure programs that will help advance 
passenger rail as a solution for the nation's transportation 
needs.

                                Hearings

    No hearings were held on this legislation in the 114th 
Congress. However, several hearings and other Committee events 
were held on matters related to this legislation in the 113th 
Congress. On April 11, 2013, the Subcommittee on Railroads, 
Pipelines, and Hazardous Materials (Subcommittee) held a 
hearing on Amtrak's grant request for fiscal year 2014, and how 
it relates to Amtrak's on-going reorganization and the 
reauthorization of the Passenger Rail Investment and 
Improvement Act of 2008 (PRIIA 2008) (Public Law 110-432). On 
May 21, 2013, the Subcommittee held a hearing to discuss 
Amtrak's financial performance by service type and overall 
trends in costs, its spending of federal funds, and how it runs 
as a business. On June 6-7, 2013, the Subcommittee hosted a 
roundtable on an Amtrak train to New York, NY and a field 
hearing in New York, NY, respectively, to assess and discuss 
the importance of the NEC to the states it serves, the regional 
economy, and transportation network. On June 27, 2013, the 
Subcommittee hosted a listening session and heard from major 
stakeholders on developing the nation's rail policy for the 
next reauthorization. On July 9, 2013, the Subcommittee held a 
hearing on the role of innovative financing tools to advance 
intercity passenger rail projects.

                 Legislative History and Consideration

    On February 5, 2015, House Committee on Transportation and 
Infrastructure Chairman Bill Shuster and Ranking Member Peter 
DeFazio and Subcommittee on Railroads, Pipelines, and Hazardous 
Materials Chairman Jeff Denham and Ranking Member Michael 
Capuano introduced H.R. 749, the Passenger Rail Reform and 
Investment Act of 2015 (PRRIA). On February 12, 2015, the 
Committee on Transportation and Infrastructure met in open 
session and ordered the bill reported favorably to the House by 
voice vote with a quorum present. No amendments were offered.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against. There were no record votes taken in connection 
with consideration of H.R. 749.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 749 from the 
Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 25, 2015.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 749, the Passenger 
Rail Reform and Investment Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sarah Puro.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 749--Passenger Rail Reform and Investment Act of 2015

    Summary: CBO estimates that H.R. 749 would authorize 
appropriations totaling $7.2 billion over the 2016-2020 period 
for rail programs. That amount includes $5.3 billion for grants 
to Amtrak, $1.2 billion for grants to states for intercity rail 
projects, and $625 million to renegotiate and prepay a portion 
of Amtrak's nonfederal debt. Assuming appropriation of the 
amounts specified and estimated to be necessary, CBO estimates 
that implementing the legislation would cost $7.0 billion over 
the 2016-2020 period.
    Pay-as-you-go procedures do not apply to this legislation 
because it would not affect direct spending or revenues.
    H.R. 749 would impose intergovernmental and private-sector 
mandates, as defined in the Unfunded Mandates Reform Act 
(UMRA), by requiring some state and local governments and 
Amtrak to create plans and submit reports about the capital 
assets of intercity passenger rail systems. The bill also would 
place new administrative and operational requirements on 
Amtrak. CBO estimates that the cost to both public and private 
entities of complying with those mandates would be small and 
would fall below the annual thresholds established in UMRA for 
intergovernmental and private-sector mandates ($77 million and 
$154 million in 2015, respectively, adjusted annually for 
inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 749 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2016     2017     2018     2019     2020   2016-2020
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Capital and Operating Grants to Amtrak:
    Estimated Authorization Level.......................    1,287    1,313    1,340    1,370        0     5,310
    Estimated Outlays...................................    1,041    1,273    1,333    1,363      298     5,307
Cost to Renegotiate and Prepay Amtrak's Nonfederal Debt:
    Estimated Authorization Level.......................      125      125      125      125      125       625
    Estimated Outlays...................................      125      125      125      125      125       625
Grants to States for Rail Projects:
    Authorization Level.................................      300      300      300      300        0     1,200
    Estimated Outlays...................................       30      150      225      270      270       945
Amtrak Inspector General:
    Authorization Level.................................       23       24       24       25        0        96
    Estimated Outlays...................................       21       23       24       25        3        96
Other Provisions:
    Estimated Authorization Level.......................        2        2        1        0        0         5
    Estimated Outlays...................................        1        2        1        1        0         5
    Total Changes:
        Estimated Authorization Level...................    1,737    1,764    1,790    1,820      125     7,236
        Estimated Outlays...............................    1,217    1,573    1,708    1,784      696     6,978
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted by the end of fiscal year 2015 and that 
the amounts authorized and estimated to be necessary will be 
appropriated each year. Spending is based on historical 
patterns of spending for rail programs.

Capital and operating grants to Amtrak

    H.R. 749 would restructure the federal government's funding 
support for Amtrak and would authorize the appropriation of 
$5.8 billion for grants to Amtrak over the 2016-2019 period. 
That amount includes specified amounts for the rail network 
between Boston, Massachusetts, and Washington, DC, and for the 
rail network in other parts of the country. Amtrak received a 
grant of $1.4 billion for fiscal year 2015 for activities 
similar to those authorized in H.R. 749. As directed by the 
legislation, the specified authorization levels in H.R. 749 for 
this activity have been reduced by $500 million to account for 
the estimated cost to renegotiate and prepay a portion of 
Amtrak's debt over the 2016-2019 period (as discussed in the 
next section). Assuming appropriation of the remaining 
authorized amounts, CBO estimates those provisions would cost 
$5.3 billion over the 2016-2020 period.

Cost to renegotiate and prepay Amtrak's nonfederal debt

    Subject to the availability of appropriated funds, section 
209 would require the Secretary of the Treasury to negotiate 
with Amtrak's creditors to prepay Amtrak's debt with the goal 
of reducing Amtrak's debt-service costs. Under the assumption 
that the federal government will continue to provide Amtrak 
with grants to pay a portion of its debt-service costs--as it 
has since 2006--those prepayments also would reduce future 
discretionary costs to the federal government.
    According to Amtrak, it has about $1 billion in nonfederal 
debt--but, based on information from the Department of the 
Treasury, not all of that debt could be favorably renegotiated 
to result in savings to Amtrak. Much of Amtrak's nonfederal 
debt is for lease payments it makes for railcars and 
locomotives. In some of those leases, Amtrak has the option, at 
times specified in the lease contracts, to buy out the 
remainder of the lease term and take ownership of the rail 
equipment. In such cases, the Treasury would calculate the net 
present value of the stream of future lease payments compared 
to the cost to buy out the lease term to determine if savings 
would accrue from buying out the lease. Other debt includes a 
mortgage on New York's Penn Station and tax-exempt bonds that 
are not callable until fiscal year 2022. Based on information 
about the components of Amtrak's debt, CBO estimates that $625 
million would be authorized to be appropriated to prepay 
Amtrak's debt over the 2016-2020 period, leading to estimated 
costs of that amount.
    Under provisions of the bill, any amounts appropriated to 
Amtrak to renegotiate and prepay its debt would reduce the 
amounts authorized to be appropriated by the bill for Amtrak's 
Capital and Operating Grants. Although CBO estimates that $625 
million would be authorized to be appropriated to prepay 
Amtrak's debt over the 2016-2020 period, the amounts authorized 
to be appropriated for Capital and Operating Grants have been 
reduced by only $500 million because those grants would be 
authorized only through 2019 under H.R. 749.
    Over the next five years, CBO estimates that Amtrak's debt-
service costs would be reduced by about $20 million a year. 
However, over the next couple of decades, Amtrak's debt service 
would be reduced by more than $625 million. If the federal 
government continues to provide Capital and Operating Grants to 
Amtrak, those lower costs could be used to reduce the amount of 
grants to Amtrak in the future or could be used for other 
Amtrak priorities, including capital spending.

Grants to states for rail projects

    Over the 2016-2019 period, the bill would authorize the 
appropriation of $1.2 billion in grants to states for capital 
costs related to facilities, infrastructure, and equipment 
necessary for intercity passenger rail service. No amounts were 
appropriated for such grants in 2015. Assuming appropriation of 
the authorized amounts, CBO estimates that spending for those 
grants would total $945 million over the 2016-2020 period.

Amtrak Inspector General

    H.R. 749 would authorize the appropriation of $96 million 
for the operations of the Amtrak Inspector General over the 
2016-2019 period. Amtrak's Office of the Inspector General 
received appropriations of $23 million for fiscal year 2015 for 
activities similar to those authorized in H.R. 749. Assuming 
appropriation of the authorized amounts, CBO estimates that 
implementing these provisions would cost $96 million over the 
2016-2020 period.

Other provisions

    H.R. 749 would require the Federal Rail Administration 
(FRA) to establish a working group to assess the feasibility of 
restoring rail service between New Orleans, Louisiana, and 
Orlando, Florida. The bill also would require the FRA to 
complete a rulemaking to revise how federal reviews of planned 
freight and commuter rail projects are conducted in order to 
adjust how the agency complies with the Historic Preservation 
Act. Based on information from FRA, CBO estimates that 
implementing those provisions would cost $5 million over the 
2016-2020 period.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: H.R. 749 would 
impose intergovernmental and private-sector mandates as defined 
in UMRA by placing new requirements on public entities and 
Amtrak. CBO estimates that the cost for those entities to 
comply with the mandates would be small and would fall below 
the annual thresholds established in UMRA for intergovernmental 
and private-sector mandates ($77 million and $154 million in 
2015, respectively, adjusted annually for inflation).

Mandates that apply to public and private entities

    H.R. 749 would impose an intergovernmental and private-
sector mandate by requiring some state and local governments 
and Amtrak to create plans and submit reports about the capital 
assets of intercity passenger rail systems. CBO estimates the 
cost to both public and private entities of complying with the 
reporting requirement would be small.

Mandates that apply to private entities only

    The bill would impose several additional mandates on 
Amtrak. It would require the Amtrak Board of Directors to 
consider options to improve boarding procedures, to evaluate 
proposals for development projects around Amtrak stations, and 
to evaluate requests to use an Amtrak right-of-way for other 
business activities. The bill also would require Amtrak to 
establish certain financial controls and submit to the Congress 
various reports, including a report on options to enhance 
development around Amtrak stations Finally, the bill would 
modify Amtrak's role on certain rail advisory committees. CBO 
estimates that the aggregate cost of complying with those 
mandates would be small.

Other effects

    Other provisions of the bill would benefit states by 
authorizing grants to improve intercity rail passenger service. 
CBO estimates states would receive $945 million over the 2016-
2020 period, and any costs would be incurred voluntarily as a 
condition of federal assistance.
    Estimate prepared by: Federal costs: Sarah Puro; Impact on 
state, local, and tribal governments: Melissa Merrell; Impact 
on the private sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are to 
authorize passenger rail programs administered by the Federal 
Railroad Administration, including operating and capital 
funding for Amtrak and the intercity passenger rail grants, and 
reform Amtrak's operations, budgeting, and planning. The bill 
also allows for more private sector participation in stations, 
rights-of-way, and passenger rail operations. Finally, H.R. 749 
makes further changes to intercity passenger rail policy, 
improving the administration of the rail grant programs, rail 
loan programs, and the delivery process for rail projects.

                          Advisory of Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee is required to include a list 
of congressional earmarks, limited tax benefits, or limited 
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of 
rule XXI of the Rules of the House of Representatives. No 
provision in the bill includes an earmark, limited tax benefit, 
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of 
rule XXI.

                    Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee finds that no provision of H.R. 749 establishes 
or reauthorizes a program of the federal government known to be 
duplicative of another federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, 113th Cong. (2015), 
the Committee estimates that enacting H.R. 749 specifically 
directs the completion of a specific rule making within the 
meaning of section 551 of title 5, United States Code. Section 
205 of H.R. 749 requires the secretary of Transportation to 
carry out a rulemaking for an alternative pilot passenger rail 
program, and section 401 of H.R. 749 requires the Secretary of 
Transportation to carry out a rulemaking regarding 
environmental streamlining of railroad projects.

                       Federal Mandate Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 749 does not 
preempt any state, local, or tribal law. H.R. 749 preserves the 
rights and permitting authorities of states.

                      Advisory Committee Statement

    Section 203 of this legislation establishes an advisory 
committee, as defined by section 2 of the Federal Advisory 
Committee Act (5 U.S.C. app.). Pursuant to section 5 of the 
Federal Advisory Committee Act, the Committee determines that 
the functions of this advisory committee are not being carried 
out by existing agencies or advisory commissions. The Committee 
also determines that the advisory committee has a clearly 
defined purpose, fairly balanced membership, and meets all of 
the other requirements of section 5(b) of the Federal Advisory 
Committee Act.

                  Applicability of Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

               Section-by-Section Analysis of Legislation

                TITLE I--AUTHORIZATION OF APPROPRIATIONS

Section 101. Authorization for Amtrak system

    Fiscal responsibility is a top priority for the Committee. 
For decades authorization bills have included unrealistic 
funding levels. PRRIA breaks this cycle by authorizing Amtrak 
at fiscally responsible, recently appropriated funding levels. 
This section authorizes funds to be appropriated for fiscal 
years 2016 through 2019 to the Secretary of the Department of 
Transportation (Secretary) for the use of Amtrak for capital 
projects, operating grants, debt service payments, and other 
activities.
    However, instead of separate authorizations for capital and 
debt service and for operating grants, subsection 101(a) 
authorizes funding to be appropriated to a new Northeast 
Corridor Improvement Fund account, for capital projects and 
debt service payments related to the corridor, and subsection 
101(b) authorizes funding to be appropriated to a new National 
Network account for the capital and operating expenses of 
state-supported and long-distance routes, and for debt service 
payments related to those services. Subsection 101(c) allows 
the Secretary to withhold up to one half of one percent of the 
funds authorized in this section for oversight purposes. The 
authorization structure contained in this section will ensure 
transparency in the federal funding requirements for Amtrak.

Section 102. Authorization for Amtrak Office of Inspector General

    This section authorizes funds to be appropriated for fiscal 
years 2016 through 2019 to the Secretary for the Office of 
Inspector General of Amtrak to conduct oversight of Amtrak's 
operations and management.

Section 103. National infrastructure investments

    This section authorizes funds to be appropriated for fiscal 
years 2016 through 2019 to the Secretary for capital grants for 
intercity passenger rail projects under Chapter 244 of Title 
49, United States Code, and grade crossing improvement projects 
under section 20154 of Title 49, United States Code. Of the 
amounts authorized to be appropriated, 50 percent of funds 
shall be used for a Federal-State Partnership for Northeast 
Corridor Rehabilitation and Improvement program established 
under section 301 of this Act.

Section 104. Northeast Corridor

    This section clarifies, for the purposes of this title, 
that the NEC is defined as the main line between Boston, 
Massachusetts and Washington, District of Columbia, and the 
facilities and services necessary to operate and maintain that 
line.

                        TITLE II--AMTRAK REFORM

Section 201. Amtrak reform

    This section amends chapter 243 of title 49, United States 
Code, by adding at the end the following new sections:
            Section 24317. Costs and revenues
    With the move to a lines-of-business approach for 
authorizing federal support for Amtrak, all costs and revenues 
of the company must be allocated to the newly created accounts. 
This new section requires Amtrak to establish and maintain 
internal controls to ensure that all costs and revenues are 
allocated to either the NEC or National Network account.
            Section 24318. Grant process
    This new section lays out the procedures Amtrak shall 
follow when preparing and submitting to the Secretary and 
Congress a request for federal grants. It also sets forth the 
contents of such grant requests, including a detailed financial 
analysis by lines of business, a description of the work to be 
funded along with cost estimates and a timetable for completion 
of projects supported by the federal funds, and other 
information similar in nature to budget requests of executive 
agencies of the federal government. The Committee believes the 
grant process and contents need to better justify federal 
support and give the taxpayers and Congress a more transparent 
understanding of the federal funds being invested, so that 
informed decisions can be made on the amount of federal funding 
provided each year. This new section also outlines the review 
and approval process for grant requests and the payment 
schedule for the Secretary to obligate and outlay funds to 
Amtrak.
            Section 24319. Accounts
    Due to the shift to a lines-of-business approach to 
authorizations, this new section requires Amtrak to establish 
two accounts, the Northeast Corridor Improvement Fund account 
and the National Network account. It mandates that all federal 
grant funds, compensation received from states pursuant to 
sections209 and 212 of Division B of Public Law 110-432, and 
operating surpluses shall be allocated between the two accounts. The 
establishment of these two accounts eliminates the need to cross-
subsidize Amtrak's lines of business, though the section does include a 
transfer mechanism via notification to the Amtrak Board of Directors. 
Establishing these accounts ensures that profits generated on the NEC, 
and state access payments for use of the NEC, are reinvested on the 
corridor. Similarly, state payments, federal appropriations, and 
revenue generated on the National Network will go towards activities 
supported by that account.
    The Committee is concerned that Amtrak's current structure 
is not transparent or aligned by core services. Establishing 
separate accounts and only allowing funds to be transferred 
between the accounts following Amtrak notification and 
justification to the Amtrak Board of Directors will 
significantly increase transparency and accountability. 
Subsection (e) also requires the Secretary to issue letters of 
intent to obligate future year budget authority for major 
capital projects requiring multi-year funding to enhance 
certainty that the project will reach completion.
    Finally, the Committee is concerned about Amtrak's history 
with procurements, including problems with the Acela fleet 
procurement and lack of funding to complete an ongoing purchase 
of sleeping and baggage cars. While the company has made 
progress on planning, it has been inconsistent with carrying 
out business cases for major procurements, even when it relies 
upon federal funding to make such purchases. PRRIA addresses 
this problem by mandating that Amtrak conduct a business case 
prior to entering into any large capital acquisition. 
Specifically, Amtrak must submit a business case to the 
Secretary and Congress for rolling stock purchases in excess of 
$100,000,000 that sets forth the costs and benefits of the 
procurement, the total payments by fiscal year, the source of 
the funding, whether the purchase will increase the need for 
federal funding, and contingency plans if there is no funding 
available for the purchase. This subsection is intended to 
improve Amtrak's business planning while giving Congress and 
the public confidence that Amtrak is exercising effective 
stewardship of federal funds.
            Section 24911. Northeast Corridor planning
    The NEC is a valuable transportation asset to the region 
and nation as a whole. It is also one of the world's most 
complicated railroad corridors, with roughly 150 daily Amtrak 
trains and nearly 1,800 daily commuter and freight trains. The 
PRIIA 2008 created the Northeast Corridor Infrastructure and 
Operations Advisory Commission (NEC Commission) to act as the 
regional body to coordinate activities on the corridor, and 
also required states to start contributing funds to maintain 
the corridor. PRRIA significantly advances these efforts by 
empowering the NEC Commission to act as a true planner and 
convener of the states, commuter railroads, and Amtrak. This 
enhanced governance regime will allow states to have an equal 
voice in the management of the corridor, and will ensure that 
all investments are coordinated appropriately among the 
infrastructure owners and users.
    Specifically, this section charges the NEC Commission to 
work in conjunction with Amtrak, the FRA, and the states to 
develop and implement a five-year NEC Capital Investment Plan 
in order to identify, prioritize, and phase projects needed to 
improve the NEC. This plan then becomes the basis upon which 
investments in the NEC must be made by Amtrak. Also, for 
projects to be eligible for both the Federal-State Partnership 
for NEC Development and Improvement grants established in 
section 301 and for the NEC Fast Forward RRIF loan set-aside 
established in section 303, the project must be included in the 
NEC Capital Investment Plan.
    This section also requires Amtrak, states, and public 
transportation entities that own infrastructure or operate 
service on the NEC to develop and submit to the NEC Commission 
NEC Asset Management Plans within 12 months of the enactment of 
the Act. Once developed, these asset plans will be used to 
inform the development of the NEC Capital Investment Plan. 
Furthermore, recognizing that the FRA is currently conducting a 
Service Development Plan for the NEC as part of its NEC FUTURE 
study, the NEC Commission is required to update that NEC 
Service Development Plan every 10 years. This will allow for an 
evaluation of service goals as ridership, revenues, and service 
levels evolve over the years.

Section 202. Five-year capital and operating plan

    PRRIA requires greater transparency into Amtrak's 
accounting. Amtrak must provide detailed information to states 
on costs for their services. Furthermore, Amtrak is required to 
complete detailed five-year capital and financial plans, with 
annual explanations of how it met its prior year's goals. This 
will help Congress, states, and the taxpayers better understand 
and evaluate its return-on-investment in Amtrak.
    This section requires the Amtrak Board of Directors to 
prepare five-year capital and operating plans for the NEC and 
the National Network within 60 days of an Act appropriating 
funds to Amtrak. To ensure that the states are properly 
involved in Amtrak's decision-making regarding their services, 
the plan must be done in consultation with the NEC Commission 
for NEC planning and the states for National Network planning. 
Following the lines-of-business approach and to ensure that 
Congress is properly informed, this section identifies the 
specific information to be contained in the plans, including 
forecasts and projects, by each line of business. Also, this 
section requires Amtrak to plan based on real, constrained 
funding levels, not overly optimistic targets that will never 
materialize, by making the plans conform to authorized funding 
levels so that Congress is provided with realistic expectations 
of what can be achieved given the actual federal funds. 
Finally, this section requires that Amtrak update Congress on 
its progress monthly to maintain accountability throughout the 
year.

Section 203. State-supported routes

    State-supported routes account for nearly half of Amtrak's 
total ridership. While ridership has been successful, a 
patchwork of financial arrangements had developed between 
Amtrak and the states with varying levels of support. Given 
this inconsistent approach, Section 209 of PRIIA 2008 required 
Amtrak to work with the states to develop and implement a 
single, nationwide standardized methodology for establishing 
and allocating the costs of providing intercity rail service on 
state-supported routes. While most states have begun to pay for 
their state supported routes on an equal basis, states have 
raised concerns that Amtrak's financial data is not transparent 
enough to know exactly what the underlying costs are for. At 
the same time, the Committee is concerned that some states are 
not paying Amtrak for services as required under section 209 of 
PRIIA 2008, and urges such states to take action to pay for 
such services.
    Section 203 seeks to remedy these issues by requiring the 
Secretary to establish a State-Supported Route Advisory 
Committee made up of Amtrak, the Department of Transportation 
and the FRA, and seven states that sponsor state-supported 
routes, to promote cooperation and planning along the routes 
pursuant to section 209 of PRIIA 2008. Amtrak will also be 
required to regularly submit detailed financial and performance 
information to the states. This will help to enhance 
transparency and accountability toward the states paying for 
the service. Finally, this section creates an expedited dispute 
resolution process with the Surface Transportation Board 
functioning as the final arbiter.

Section 204. Route and service planning

    Amtrak operates 15 long-distance trains over an 18,500 mile 
network serving 39 states, utilizing privately-owned freight 
rail track. PRIIA 2008 included several provisions to try to 
improve performance and reduce operating losses on these 
routes; however, no action on these provisions has been taken 
by the FRA.
    To ensure action is taken, this section requires Amtrak, 
not the FRA, to contract with a third party entity to develop 
and recommend objective methodologies for Amtrak to use in 
evaluating what intercity passenger rail routes and services it 
will provide, including creation of new routes, elimination of 
existing routes, or other changes to improve service. 
Recommendations must be submitted to Congress, and the Amtrak 
Board of Directors is required to consider adoption of such 
recommendations and then explain to Congress its reasoning for 
adopting or not adopting those recommendations.

Section 205. Competition

    During both the 113th and 114th Congresses, with other 
modes becoming more congested, private providers of passenger 
rail have expressed interest in developing new services. 
Indeed, projects are underway where private companies will 
build and operate their own passenger rail lines in a couple of 
states. The Committee takes advantage of this rail renaissance 
and interest in passenger rail development, by establishing an 
alternative passenger rail pilot program to encourage 
competition along certain Amtrak routes. Within our free market 
economic construct, competition can generate better 
efficiencies and improved services for the customer. Under the 
pilot program established in section 205, rail carriers would 
submit bids to FRA, who would award the winning bidder the 
right and obligation to provide rail service over that route, 
as well as access to Amtrak's reservation system, stations, and 
facilities as long as the company maintains minimum FRA 
standards. In addition, the winning bidder would only be able 
to receive 90 percent or less of the prior year's Amtrak cost. 
This section grants FRA the authority to transfer a defined 
portion of Amtrak's appropriation for that specific route to 
operate the alternative service. It also requires, no later 
than 1 year after the enactment of the Act, the FRA to issue a 
rulemaking to develop the pilot program. Finally, not later 
than 1 year after the conclusion of the program, the FRA must 
submit the results of the pilot program to Congress.

Section 206. Food and beverage reform

    For decades Amtrak has operated its food and beverage 
service at a loss. PRRIA addresses this problem by requiring 
that Amtrak implement a series of reforms to eliminate food and 
beverage losses over the next five years, which may include 
improved product and supply chain efficiencies; strengthened 
training and accountability for staff; improved scheduling of 
food and beverage staff; and ticket revenue enhancements.
    This section requires that within five years of enactment 
of the Act, the operating loss associated with providing food 
and beverage service on board trains will be eliminated. The 
section also includes language protecting Amtrak's existing 
workforce, but also mandates that after the five year period, 
no federal funding may be utilized to cover food and beverage 
losses.

Section 207. Right-of-way leveraging

    Amtrak owns the majority of the NEC, which passes through 
some of the most densely populated areas of the country. The 
company also controls several other rail lines around the 
Nation. These railroad rights-of-way represent an untapped 
opportunity to partner with the private sector to generate 
additional non-passenger rail service revenue. Additional 
revenue would help reduce the need for federal funding and 
allow more private investment for passenger rail.
    This section requires Amtrak to issue a Request for 
Proposals seeking private sector entities to utilize Amtrak-
owned right-of-way for telecom systems, energy distribution 
systems, and other activities. The Amtrak Board of Directors is 
required to review each proposal, and no later than 18 months 
after the enactment of this Act submit to Congress a summary of 
each proposal received as well as any proposals accepted.

Section 208. Station development

    Rail stations are often located in desirable downtown 
locations and can become focal points for significant 
residential, commercial, and retail development, and enhance 
transportation options in communities. For example, Denver 
undertook a half a billion dollar project to develop a commuter 
and intercity rail terminal, a regional bus facility, new light 
rail platforms, and improved public spaces, surrounded by 
significant private real estate development. Amtrak owns many 
of these stations, but leveraging their potential for real 
estate and other development and enhancement has been a low 
priority. The Committee urges Amtrak, among other proposals, to 
form partnerships that provide bike sharing programs and 
dedicated bike parking areas with lighting and accessibility in 
its stations to help enhance seamless transportation 
connections and grow ridership.
    Section 208 requires Amtrak to transmit to Congress a 
report on options to enhance development around Amtrak stations 
not later than 180 days after enactment of this Act. 
Development proposals should strengthen multimodal connections, 
capture development-related revenue streams, and pursue 
opportunities to better leverage station assets. Doing so will 
generate more revenue to that line of business within Amtrak 
which can be used to improve infrastructure.

Section 209. Amtrak debt

    This section reauthorizes section 205 of PRIIA 2008 to 
restructure Amtrak's debt. Ten years ago, Amtrak's debt reached 
$3.7 billion. PRIIA 2008 provided authority for restructuring 
Amtrak's debt which reduced its debt to $1.4 billion in just 
six short years.

Section 210. Amtrak pilot program for passengers transporting 
        domesticated cats and dogs

    This section requires Amtrak to develop and implement a 
pilot program to allow domesticated cats and dogs to travel on 
a specifically designated railcar. The animal must be in a 
kennel sized in accordance to Amtrak's requirements for carry-
on baggage. The passenger will pay a fee that, in the 
aggregate, covers the full costs of the pilot program.

Section 211. Amtrak boarding procedures

    One of the benefits of intercity passenger rail is the 
ability to quickly board a train, from train stations centrally 
located in cities, as opposed to the airports, which are often 
located far from downtowns, and which require passengers to 
arrive much earlier before a departure time. However, Amtrak is 
not fully leveraging this competitive advantage and has 
seemingly cumbersome boarding procedures at some of its largest 
stations.
    This section requires the Amtrak Inspector General to 
conduct a study comparing Amtrak boarding procedures at its 10 
busiest stations to other rail boarding procedures, and make 
recommendations to the Amtrak Board of Directors to improve 
such procedures. Within six months of receiving the 
recommendations, the Board shall consider each recommendation 
for implementation.

               TITLE III--INTERCITY PASSENGER RAIL POLICY

Section 301. Federal-State partnership for NEC development and 
        improvement

    The NEC is an incredibly valuable asset to both the region 
and the Nation, and it should be treated as such. Capital 
improvements are necessary to bring the corridor into a state-
of-good-repair and increase service reliability. The NEC also 
acts as a valuable resource for states along the corridor. Of 
the nearly 2,000 trains that traverse the corridor daily, 
roughly 1,800 of them are commuter trains, not owned by Amtrak. 
This joint use highlights the need for greater reliability and 
efficiency, and presents opportunities for partnerships with 
states to improve this asset for all users.
    This section establishes a program under Chapter 244 of 
Title 49, United States Code, for issuing grants on a 
competitive basis for the purpose of financing capital projects 
included in the Northeast Corridor Priority Project List. The 
list is required to include projects to improve the state-of-
good repair of existing assets, and projects to improve 
intercity passenger rail performance through increased 
reliability, reduced trip times, and other improvements. 
Finally, states are required to equally match the funding 
provided by this Act, and the FRA is not authorized to obligate 
federal funds until the state match is guaranteed.

Section 302. RRIF process improvements

    The FRA administers the Railroad Rehabilitation and 
Improvement Financing (RRIF) program, which provides long-term, 
low-interest loans and loan guarantees for railroad-related 
improvements. While this program is authorized to provide up to 
$35 billion in lending, nearly all of it remains unused. This 
lack of uptake stems in part from FRA's slow, cumbersome 
approval process.
    This section makes several improvements to the RRIF loan 
program, including limiting the Office of Management and Budget 
review period for loan approval and setting a 45-day timeframe 
for determining application completion. States are allowed more 
flexibility in determining collateral offered to secure loans 
and adds Positive Train Control projects to the list of 
projects given preference in the approval process. The section 
also includes an annual report to Congress on RRIF program 
activities.

Section 303. NEC fast forward

    The RRIF program is one way the federal government can 
partner with the states and Amtrak to advance large 
infrastructure projects that are difficult to carry out with 
annual appropriations. In particular, the NEC, with its proven 
passenger rail and commuter rail ridership, is an ideal area to 
use the RRIF program to address needed improvements. PRRIA 
dedicates a significant portion of the RRIF program to the NEC 
to incentivize states and localities to come to the table and 
seek loans to advance projects of national and regional 
significance.
    This section directs the Secretary, as part of the RRIF 
program, to provide direct loans and loan guarantees to 
eligible entities for capital projects to improve the NEC. It 
also requires the Government Accountability Office to submit a 
report to Congress identifying potential revenue sources, 
projects, and service improvements that could be achieved by 
RRIF capital improvements programs.
    This section also increases the comment period on certain 
waiver determinations from 15 to 30 days and requires the 
Secretary to submit an annual report on such waivers to 
Congress. Finally, it allows provisions used in FRA grant 
programs to be applied to the RRIF loan program.

Section 304. Large capital project requirements

    This section prevents the Secretary from obligating a grant 
through the High-Speed and Intercity Passenger Rail Programs in 
excess of $1 billion unless the applicant is able to 
demonstrate to the Secretary that the non-federal share is 
committed, the project will result in a useable segment, and 
the applicant submits certain information to the Secretary on 
the project, including the project's anticipated benefits. 
These provisions will ensure that the federal funding for the 
project is being used efficiently and effectively to achieve 
the intended goals of the program. Furthermore, it requires the 
Secretary to ensure that the project is maintained to the level 
of utility that is necessary to support the benefits approved 
by the Secretary for a period of 20 years from the date the 
project is placed in service. If the project is not maintained 
for a period of time in excess of 12 months, then a pro-rata 
share of the federal contribution shall be refunded.

Section 305. Small business participation study

    This section requires the Secretary to conduct a nationwide 
disparity and availability study on the use of small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals in publicly funded intercity 
passenger rail projects administered by the FRA.

Section 306. Gulf Coast rail service working group

    This section requires the FRA to convene a working group to 
evaluate the restoration of intercity rail passenger service in 
the Gulf Coast Region between New Orleans, Louisiana and 
Orlando, Florida.

Section 307. Miscellaneous

    This section amends Title 49, United States Code in order 
to make technical corrections.

                       TITLE IV--PROJECT DELIVERY

Section 401. Project delivery rulemaking

    PRIIA 2008 and the American Recovery and Reinvestment Act 
of 2009 (ARRA) changed FRA's primary focus from being a safety 
agency to include being a major grant-maker. ARRA provided $8 
billion in federal funding for High Speed and Intercity 
Passenger Rail grants to states for various passenger rail 
projects. These projects require environmental reviews to 
comply with the National Environmental Policy Act (NEPA), yet 
the FRA still has no regulations on environmental review, only 
a Federal Register notice from May 1999 predating the addition 
of its substantial grant-making duties. However, prior 
transportation authorizations for other modal administrations 
within the DOT streamlined environmental review processes for 
the Federal Transit Administration (FTA), the Federal Highway 
Administration (FHWA), and the Federal Aviation Administration 
(FAA) leaving FRA's processes several iterations behind these 
agencies. States have expressed concerns with this lack of 
guidance and about the discrepancies in the environmental 
review processes of the separate intermodal agencies, 
particularly when a project crosses multiple jurisdictions.
    Because environmental reviews of rail projects can require 
participation by multiple agencies, if participation in the 
process is done sequentially, a delay at one agency can have 
cascading dilatory effects throughout the process. Further, 
without deadlines, environmental reviews can be delayed simply 
because no agency action was taken. The bill addresses these 
concerns by requiring the Secretary to issue a rulemaking to 
govern the environmental review, permitting, and approval or 
disapproval of freight railroad, intercity rail passenger, and 
certain commuter rail passenger infrastructure projects. The 
rulemaking is to include procedures for creating process 
efficiencies, such as conducting concurrent reviews, 
establishing deadlines for decisions, providing for improved 
agency coordination, and considering expanded categorical 
exclusions.

Section 402. Historic Preservation of Railroads

    PRIIA 2008 mandated that the FRA study ways to streamline 
compliance with section 106 of the National Historic 
Preservation Act and section 303 of Title 49 for rail 
infrastructure projects. Concerns have been raised regarding, 
among other things, the length of time added to project reviews 
as a result of compliance with those laws and the lack of 
uniformity in how historic preservation reviews were conducted 
by the requisite entities for rail projects. The FRA submitted 
its report to Congress in March 2013 outlining the 
administrative and legislative actions that could be taken to 
reduce timelines and improve reviews. This section builds upon 
that report and requires the Secretary to pursue administrative 
program alternatives to promote a consistent approach to the 
treatment of railroads for historic preservation purposes, and 
to consider, among other options, the development of 
programmatic agreements, program comments, exempted categories 
of undertakings, and guidance for historical reviews. Further, 
the Secretary must develop mechanisms for streamlining 
compliance with the requirements of section 303 reviews for 
railroad and rail-related properties and shall consider, among 
other options, the development of programmatic evaluations, de 
minimis impact determinations, and regulatory guidance.

                         TITLE V--MISCELLANEOUS

Section 501. Definitions

    This section amends Title 49 to insert several definitions 
to conform to changes made elsewhere in the Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *

SUBTITLE V--RAIL PROGRAMS

           *       *       *       *       *       *       *

PART B--ASSISTANCE

           *       *       *       *       *       *       *

CHAPTER 221--LOCAL RAIL FREIGHT ASSISTANCE

           *       *       *       *       *       *       *

Sec. 22106. Limitations on financial assistance

  (a) Grants and Loans.--A State shall use financial assistance 
for projects under this chapter to make a grant or lend money 
to the owner of rail property, or a rail carrier providing rail 
transportation, related to a project being assisted.
  (b) State Use of Repaid Funds and Contingent Interest 
Recoveries.--The State shall place the United States 
Government's share of money that is repaid and any contingent 
interest that is recovered in an interest-bearing account. The 
repaid money, contingent interest, and any [interest thereof] 
interest thereon shall be considered to be State funds. The 
State shall use such funds to make other grants and loans, 
consistent with the purposes for which financial assistance may 
be used under subsection (a), as the State considers to be 
appropriate.
  (c) Encouraging Participation.--To the maximum extent 
possible, the State shall encourage the participation of 
shippers, rail carriers, and local communities in paying the 
State share of assistance costs.

           *       *       *       *       *       *       *

PART C--PASSENGER TRANSPORTATION

           *       *       *       *       *       *       *

                          CHAPTER 241--GENERAL

Sec.
24101. Findings, mission, and goals.
     * * * * * * *
[24104. Authorization of appropriations.]

           *       *       *       *       *       *       *

Sec. 24101. Findings, mission, and goals

  (a) Findings.--(1) Public convenience and necessity require 
that Amtrak, to the extent its budget allows, provide modern, 
cost-efficient, and energy-efficient intercity rail passenger 
transportation between crowded urban areas and in other areas 
of the United States.
  (2) Rail passenger transportation can help alleviate 
overcrowding of airways and airports and on highways.
  (3) A traveler in the United States should have the greatest 
possible choice of transportation most convenient to the needs 
of the traveler.
  (4) A greater degree of cooperation is necessary among 
Amtrak, other rail carriers, State, regional, and local 
governments, the private sector, labor organizations, and 
suppliers of services and equipment to Amtrak to achieve a 
performance level sufficient to justify expending public money.
  (5) Modern and efficient commuter rail passenger 
transportation is important to the viability and well-being of 
major urban areas and to the energy conservation and self-
sufficiency goals of the United States.
  (6) As a rail passenger transportation entity, Amtrak should 
be available to operate commuter rail passenger transportation 
through its subsidiary, Amtrak Commuter, under contract with 
commuter authorities that do not provide the transportation 
themselves as part of the governmental function of the State.
  (7) The Northeast Corridor is a valuable resource of the 
United States used by intercity and commuter rail passenger 
transportation and freight transportation.
  (8) Greater coordination between intercity and commuter rail 
passenger transportation is required.
  (b) Mission.--The mission of Amtrak is to provide efficient 
and effective intercity passenger rail mobility consisting of 
high quality service that is trip-time competitive with other 
intercity travel options and that is consistent with the goals 
of [subsection (d)] subsection (c).
  (c) Goals.--Amtrak shall--
          (1) use its best business judgment in acting to 
        minimize United States Government subsidies, 
        including--
                  (A) increasing fares;
                  (B) increasing revenue from the 
                transportation of mail and express;
                  (C) reducing losses on food service;
                  (D) improving its contracts with operating 
                rail carriers;
                  (E) reducing management costs; and
                  (F) increasing employee productivity;
          (2) minimize Government subsidies by encouraging 
        State, regional, and local governments and the private 
        sector, separately or in combination, to share the cost 
        of providing rail passenger transportation, including 
        the cost of operating facilities;
          (3) carry out strategies to achieve immediately 
        maximum productivity and efficiency consistent with 
        safe and efficient transportation;
          (4) operate Amtrak trains, to the maximum extent 
        feasible, to all station stops within 15 minutes of the 
        time established in public timetables;
          (5) develop transportation on rail corridors 
        subsidized by States and private parties;
          (6) implement schedules based on a systemwide average 
        speed of at least 60 miles an hour that can be achieved 
        with a degree of reliability and passenger comfort;
          (7) encourage rail carriers to assist in improving 
        intercity rail passenger transportation;
          (8) improve generally the performance of Amtrak 
        through comprehensive and systematic operational 
        programs and employee incentives;
          (9) provide additional or complementary intercity 
        transportation service to ensure mobility in times of 
        national disaster or other instances where other travel 
        options are not adequately available;
          (10) carry out policies that ensure equitable access 
        to the Northeast Corridor by intercity and commuter 
        rail passenger transportation;
          (11) coordinate the uses of the Northeast Corridor, 
        particularly intercity and commuter rail passenger 
        transportation; and
          (12) maximize the use of its resources, including the 
        most cost-effective use of employees, facilities, and 
        real property.
  (d) Minimizing Government Subsidies.--To carry out subsection 
(c)(12) of this section, Amtrak is encouraged to make 
agreements with the private sector and undertake initiatives 
that are consistent with good business judgment and designed to 
maximize its revenues and minimize Government subsidies. Amtrak 
shall prepare a financial plan, consistent with section 204 of 
the Passenger Rail Investment and Improvement Act of 2008, 
including the budgetary goals for fiscal years 2009 through 
2013. Amtrak and its Board of Directors shall adopt a long-term 
plan that minimizes the need for Federal operating subsidies.

Sec. 24102. Definitions

   In this part--
          (1) ``auto-ferry transportation'' means intercity 
        rail passenger transportation--
                  (A) of automobiles or recreational vehicles 
                and their occupants; and
                  (B) when space is available, of used 
                unoccupied vehicles.
          (2) ``commuter authority'' means a State, local, or 
        regional entity established to provide, or make a 
        contract providing for, commuter rail passenger 
        transportation.
          (3) ``commuter rail passenger transportation'' means 
        short-haul rail passenger transportation in 
        metropolitan and suburban areas usually having reduced 
        fare, multiple-ride, and commuter tickets and morning 
        and evening peak period operations.
          (4) ``intercity rail passenger transportation'' means 
        rail passenger transportation, except commuter rail 
        passenger transportation.
          (5) ``long-distance route'' means a route described 
        in subparagraph (C) of paragraph (7).
          (6) ``National Network'' includes long-distance 
        routes and State-supported routes.
          [(5)] (7) ``national rail passenger transportation 
        system'' means--
                  (A) the segment of the continuous Northeast 
                Corridor railroad line between Boston, 
                Massachusetts, and Washington, District of 
                Columbia;
                  (B) rail corridors that have been designated 
                by the Secretary of Transportation as high-
                speed rail corridors (other than corridors 
                described in subparagraph (A)), but only after 
                regularly scheduled intercity service over a 
                corridor has been established;
                  (C) long-distance routes of more than 750 
                miles between endpoints operated by Amtrak as 
                of the date of enactment of the Passenger Rail 
                Investment and Improvement Act of 2008; and
                  (D) short-distance corridors, or routes of 
                not more than 750 miles between endpoints, 
                operated by--
                          (i) Amtrak; or
                          (ii) another rail carrier that 
                        receives funds under chapter 244.
          [(6)] (8) ``Northeast Corridor'' means Connecticut, 
        Delaware, the District of Columbia, Maryland, 
        Massachusetts, New Jersey, New York, Pennsylvania, and 
        Rhode Island.
          [(7)] (9) ``rail carrier'' means a person, including 
        a unit of State or local government, providing rail 
        transportation for compensation.
          [(8)] (10) ``rate'' means a rate, fare, or charge for 
        rail transportation.
          [(9)] (11) ``regional transportation authority'' 
        means an entity established to provide passenger 
        transportation in a region.
          (12) ``state-of-good-repair'' means a condition in 
        which physical assets, both individually and as a 
        system, are--
                  (A) performing at a level at least equal to 
                that called for in their as-built or as-
                modified design specification during any period 
                when the life cycle cost of maintaining the 
                assets is lower than the cost of replacing 
                them; and
                  (B) sustained through regular maintenance and 
                replacement programs.
          (13) ``State-supported route'' means a route 
        described in subparagraph (B) or (D) of paragraph (7), 
        or in section 24702, that is operated by Amtrak, 
        excluding those trains operated by Amtrak on the routes 
        described in paragraph (7)(A).

           *       *       *       *       *       *       *

[Sec. 24104. Authorization of appropriations

  [(a) In General.--There are authorized to be appropriated to 
the Secretary of Transportation--
          [(1) $1,138,000,000 for fiscal year 1998;
          [(2) $1,058,000,000 for fiscal year 1999;
          [(3) $1,023,000,000 for fiscal year 2000;
          [(4) $989,000,000 for fiscal year 2001; and
          [(5) $955,000,000 for fiscal year 2002,
for the benefit of Amtrak for capital expenditures under 
chapters 243, 247, and 249 of this title, operating expenses, 
and payments described in subsection (c)(1)(A) through (C). In 
fiscal years following the fifth anniversary of the enactment 
of the Amtrak Reform and Accountability Act of 1997 no funds 
authorized for Amtrak shall be used for operating expenses 
other than those prescribed for tax liabilities under section 
3221 of the Internal Revenue Code of 1986 that are more than 
the amount needed for benefits of individuals who retire from 
Amtrak and for their beneficiaries.
  [(b) Operating Expenses.--(1) Not more than $381,000,000 may 
be appropriated to the Secretary for each of the fiscal years 
ending September 30, 1993, and September 30, 1994, for the 
benefit of Amtrak for operating expenses. Not more than 5 
percent of the amounts appropriated for each fiscal year shall 
be used to pay operating expenses under section 24704 of this 
title for transportation in operation on September 30, 1992.
  [(2)(A) Not more than the following amounts may be 
appropriated to the Secretary for the benefit of Amtrak for 
operating losses under section 24704 of this title for 
transportation beginning after September 30, 1992:
          [(i) $7,500,000 for the fiscal year ending September 
        30, 1993.
          [(ii) $9,500,000 for the fiscal year ending September 
        30, 1994.
  [(B) The expenditure by Amtrak of an amount appropriated 
under subparagraph (A) of this paragraph is deemed not to be an 
operating expense when calculating the revenue-to-operating 
expense ratio of Amtrak.
  [(c) Mandatory Payments.--(1) Not more than $150,000,000 for 
the fiscal year ending September 30, 1993, and amounts that may 
be necessary for the fiscal year ending September 30, 1994, may 
be appropriated to the Secretary to pay--
          [(A) tax liabilities under section 3221 of the 
        Internal Revenue Code of 1986 (26 U.S.C. 3221) due in 
        those fiscal years that are more than the amount needed 
        for benefits for individuals who retire from Amtrak and 
        for their beneficiaries;
          [(B) obligations of Amtrak under section 8(a) of the 
        Railroad Unemployment Insurance Act (45 U.S.C. 358(a)) 
        due in those fiscal years that are more than 
        obligations of Amtrak calculated on an experience-
        related basis; and
          [(C) obligations of Amtrak due under section 3321 of 
        the Code (26 U.S.C. 3321).
  [(2) Amounts appropriated under this subsection are not a 
United States Government subsidy of Amtrak.
  [(d) Payment to Amtrak.--Amounts appropriated under this 
section shall be paid to Amtrak under the budget request of the 
Secretary as approved or modified by Congress when the amounts 
are appropriated. A payment may not be made more frequently 
than once every 90 days, unless Amtrak, for good cause, 
requests more frequent payment before a 90-day period ends. In 
each fiscal year in which amounts are authorized to be 
appropriated under this section, amounts appropriated shall be 
paid to Amtrak as follows:
          [(1) 50 percent on October 1.
          [(2) 25 percent on January 1.
          [(3) 25 percent on April 1.
  [(e) Availability of Amounts and Early Appropriations.--(1) 
Amounts appropriated under this section remain available until 
expended.
  [(2) Amounts for capital acquisitions and improvements may be 
appropriated in a fiscal year before the fiscal year in which 
the amounts will be obligated.
  [(f) Limitations on Use.--Amounts appropriated under this 
section may not be used to subsidize operating losses of 
commuter rail passenger or rail freight transportation.]

           *       *       *       *       *       *       *

                          CHAPTER 243--AMTRAK

Sec.
24301. Status and applicable laws.
     * * * * * * *
24316. [Plan to assist] Plans to address needs of families of passengers 
          involved in rail passenger accidents.
24317. Costs and revenues.
24318. Grant process.
24319. Accounts.
24320. 5-Year capital and operating plan.
24321. Food and beverage reform.

           *       *       *       *       *       *       *

Sec. 24317. Costs and revenues

  (a) In General.--Not later than 60 days after the date of 
enactment of the Passenger Rail Reform and Investment Act of 
2015, Amtrak shall establish and maintain internal controls to 
ensure Amtrak's costs and revenues are allocated to either the 
Northeast Corridor or the National Network, including 
proportional shares of common and fixed costs.
  (b) Definition.--For purposes of this chapter, the term 
``Northeast Corridor'' means the Northeast Corridor main line 
between Boston, Massachusetts, and the District of Columbia, 
and facilities and services used to operate and maintain that 
line.

Sec. 24318. Grant process

  (a) Procedures for Grant Requests.--Not later than 30 days 
after the date of enactment of the Passenger Rail Reform and 
Investment Act of 2015, the Secretary of Transportation shall 
establish and transmit to the Committee on Transportation and 
Infrastructure and the Committee on Appropriations of the House 
of Representatives and the Committee on Commerce, Science, and 
Transportation and the Committee on Appropriations of the 
Senate substantive and procedural requirements, including 
schedules, for grant requests under this section.
  (b) Grant Requests.--Amtrak shall transmit grant requests for 
Federal funds to be appropriated to the Secretary for the use 
of Amtrak to--
          (1) the Secretary; and
          (2) the Committee on Transportation and 
        Infrastructure and the Committee on Appropriations of 
        the House of Representatives and the Committee on 
        Commerce, Science, and Transportation and the Committee 
        on Appropriations of the Senate.
  (c) Contents.--A grant request under subsection (b) shall--
          (1) provide a detailed financial analysis for the 
        upcoming fiscal year for the Northeast Corridor, State-
        supported routes, and long-distance routes, including 
        projections for the items listed in 24320(c)(1), as 
        applicable, in comparison to prior fiscal year 
        projections;
          (2) include a description of the work to be funded, 
        along with cost estimates and an estimated timetable 
        for completion of the projects covered by the request;
          (3) include an assessment of the continuing financial 
        stability of Amtrak;
          (4) be displayed on Amtrak's website within a 
        reasonable timeframe following its submission to the 
        entities described in subsection (b); and
          (5) be in similar format and substance to those 
        submitted by executive agencies of the Federal 
        Government.
  (d) Review and Approval.--
          (1) 30-day approval process.--The Secretary shall 
        complete the review of a grant request and approve or 
        disapprove the request not later than 30 days after the 
        date on which Amtrak submits the grant request. If the 
        Secretary disapproves the request or determines that 
        the request is incomplete or deficient, the Secretary 
        shall include the reason for disapproval or the 
        incomplete items or deficiencies in a notice to Amtrak.
          (2) 15-day modification period.--Not later than 15 
        days after receiving notification from the Secretary 
        under paragraph (1), Amtrak shall submit a modified 
        request for the Secretary's review.
          (3) Revised requests.--Not later than 15 days after 
        receiving a modified request from Amtrak, the Secretary 
        shall either approve the modified request, or, if the 
        Secretary finds that the request is still incomplete or 
        deficient, the Secretary shall identify in writing to 
        the Committee on Transportation and Infrastructure and 
        the Committee on Appropriations of the House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation and the Committee on Appropriations 
        of the Senate the remaining deficiencies and recommend 
        a process for resolving the outstanding portions of the 
        request.
  (e) Payment to Amtrak.--
          (1) In general.--Except as provided in paragraph (2), 
        in each fiscal year for which amounts are authorized to 
        be appropriated, amounts appropriated shall be paid to 
        Amtrak as follows:
                  (A) 50 percent on October 1.
                  (B) 25 percent on January 1.
                  (C) 25 percent on April 1.
          (2) Exception.--The Secretary may make a payment to 
        Amtrak of appropriated funds more frequently than once 
        every 90 days if Amtrak, for good cause, requests more 
        frequent payment before a 90-day period ends.
  (f) Availability of Amounts and Early Appropriations.--
Amounts appropriated to the Secretary for the use of Amtrak 
shall remain available until expended. Amounts for capital 
acquisitions and improvements may be appropriated for a fiscal 
year before the fiscal year in which the amounts will be 
obligated.
  (g) Limitations on Use.--Amounts appropriated to the 
Secretary for the use of Amtrak may not be used to subsidize 
operating losses of commuter rail passenger or rail freight 
transportation.

Sec. 24319. Accounts

  (a) Establishment of Accounts.--Amtrak shall establish--
          (1) a Northeast Corridor Improvement Fund account; 
        and
          (2) a National Network account.
  (b) Northeast Corridor Improvement Fund Account.--
          (1) Deposits.--Amtrak shall deposit in the Northeast 
        Corridor Improvement Fund account established under 
        subsection (a)(1)--
                  (A) grant funds appropriated for the 
                Northeast Corridor Improvement Fund pursuant to 
                section 101(a) of the Passenger Rail Reform and 
                Investment Act of 2015 or any subsequent Act;
                  (B) compensation received from commuter rail 
                passenger transportation on the Northeast 
                Corridor provided to Amtrak pursuant to section 
                24905(c); and
                  (C) any operating surplus of the Northeast 
                Corridor, as allocated pursuant to section 
                24317.
          (2) Use of northeast corridor improvement fund 
        account.--Except as provided in subsection (d), amounts 
        deposited in the Northeast Corridor Improvement Fund 
        account shall be made available for the use of Amtrak 
        for--
                  (A) capital projects described in section 
                24401(2) (A) or (B) to bring the Northeast 
                Corridor to a state-of-good-repair, including 
                projects described in section 
                24911(a)(2)(E)(i)(I);
                  (B) capital projects intended to increase 
                corridor capacity, improve service reliability, 
                and reduce travel time for rail users on the 
                Northeast Corridor, including projects 
                described in subclauses (II) and (III) of 
                section 24911(a)(2)(E)(i), consistent with the 
                planning process established under section 
                24911; and
                  (C) retirement of principal and payment of 
                interest on loans for capital equipment, or 
                capital leases, attributable to the Northeast 
                Corridor.
  (c) National Network Account.--
          (1) Deposits.--Amtrak shall deposit in the account 
        established under subsection (a)(2)--
                  (A) grant funds appropriated for the National 
                Network pursuant to section 101(b) of the 
                Passenger Rail Reform and Investment Act of 
                2015, or any subsequent Act;
                  (B) compensation received from States 
                provided to Amtrak pursuant to section 209 of 
                the Passenger Rail Investment and Improvement 
                Act of 2008 (42 U.S.C. 24101 note); and
                  (C) any operating surplus from the National 
                Network, as allocated pursuant to section 
                24317.
          (2) Use of national network account.--Except as 
        provided in subsection (d), amounts deposited in the 
        National Network account shall be made available for 
        the use of Amtrak for capital expenses and operating 
        costs of the National Network and retirement of 
        principal and payment of interest on loans for capital 
        equipment, or capital leases, attributable to the 
        National Network.
  (d) Transfer Authority.--
          (1) Authority.--Amtrak may transfer any funds 
        appropriated pursuant to the Passenger Rail Reform and 
        Investment Act of 2015 or any other Act, or any surplus 
        generated by operations, between the Northeast Corridor 
        Improvement Fund and National Network accounts upon the 
        expiration of 60 days after Amtrak has notified the 
        Amtrak Board of Directors of such transfer.
          (2) Report.--Not later than 30 days after the Amtrak 
        Board of Directors receives notification from Amtrak 
        under paragraph (1), the Board shall transmit a report 
        to the Secretary, the Committee on Transportation and 
        Infrastructure and the Committee on Appropriations of 
        the House of Representatives, and the Committee on 
        Commerce, Science, and Transportation and the Committee 
        on Appropriations of the Senate, that includes--
                  (A) the amount of the transfer; and
                  (B) a detailed explanation of the reason for 
                the transfer, including effects on Amtrak 
                services if no transfer were made.
  (e) Letters of Intent.--
          (1) Requirement.--The Secretary shall issue a letter 
        of intent to Amtrak announcing an intention to 
        obligate, for a major capital project described in 
        subclauses (II) and (III) of section 24911(a)(2)(E)(i), 
        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) Notice to congress.--At least 30 days before 
        issuing a letter under paragraph (1), the Secretary 
        shall notify in writing the Committee on Transportation 
        and Infrastructure and the Committee on Appropriations 
        of the House of Representatives, and the Committee on 
        Commerce, Science, and Transportation and the Committee 
        on Appropriations of the Senate, of the proposed 
        letter. The Secretary shall include with the 
        notification a copy of the proposed letter, the 
        criteria used for selecting the project for a grant 
        award, and a description of how the project meets 
        criteria of this section.
          (3) Contingent nature of obligation or commitment.--
        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.
  (f) Rolling Stock Purchases.--Prior to entering into 
contracts in excess of $100,000,000 for rolling stock 
procurements, Amtrak shall submit a business case analysis to 
the Secretary, the Committee on Transportation and 
Infrastructure and the Committee on Appropriations of the House 
of Representatives, and the Committee on Commerce, Science, and 
Transportation and the Committee on Appropriations of the 
Senate, on the utility of such purchase. This analysis shall--
          (1) include a cost and benefit comparison that 
        describes the total lifecycle costs and the anticipated 
        benefits related to revenue, operational efficiency, 
        reliability, and other factors;
          (2) set forth the total payments by fiscal year;
          (3) identify the specific source and amounts of 
        funding for each payment, including Federal funds, 
        State funds, Amtrak profits, Federal, State, or private 
        loans or loan guarantees, and other funding;
          (4) include whether any payment under the contract 
        will increase Amtrak's grant request, as required under 
        section 24318, in that particular fiscal year; and
          (5) describe how Amtrak will adjust the procurement 
        if future funding is not available.

Sec. 24320. 5-Year capital and operating plan

  (a) Plan.--Not later than 60 days after the date of enactment 
of an Act appropriating funds pursuant to section 101 of the 
Passenger Rail Reform and Investment Act of 2015, or any 
subsequent authorization of appropriations for the same 
purposes, the Amtrak Board of Directors shall prepare and 
transmit to the Committee on Transportation and Infrastructure 
and the Committee on Appropriations of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation and the Committee on Appropriations of the 
Senate a 5-year capital and operating plan for the Northeast 
Corridor and National Network.
  (b) Consultation.--Each such plan shall be prepared in 
consultation with--
          (1) the Federal Railroad Administration;
          (2) the Northeast Corridor Infrastructure and 
        Operations Advisory Commission, with respect to the 
        Northeast Corridor; and
          (3) the requisite States, with respect to the 
        National Network.
  (c) Contents.--A plan prepared under this section shall--
          (1) for each of the Northeast Corridor and the 
        National Network, include--
                  (A) projected revenues and expenditures for 
                the Northeast Corridor, State-supported routes, 
                long-distance routes, and corporate 
                development, including Federal and non-Federal 
                funding sources;
                  (B) projected ridership levels for the 
                Northeast Corridor, State-supported routes, and 
                long-distance routes;
                  (C) projected capital and operational funding 
                requirements necessary to maintain passenger 
                service in order to accommodate predicted 
                ridership levels and predicted sources of 
                Federal and non-Federal funding;
                  (D) projected capital and operating 
                requirements, ridership, revenue, and 
                expenditures for new passenger service 
                operations or service expansions;
                  (E) an assessment of the continuing financial 
                stability of Amtrak, as indicated by factors 
                including anticipated Federal funding of 
                capital and operating costs, Amtrak's ability 
                to efficiently recruit, retain, and manage its 
                workforce, and Amtrak's ability to effectively 
                provide passenger rail service;
                  (F) estimates of long-term and short-term 
                debt and associated principal and interest 
                payments (both current and anticipated);
                  (G) annual cash flow forecasts;
                  (H) a statement describing methods of 
                estimation and significant assumptions;
                  (I) specific measures that demonstrate 
                measurable improvement year over year in the 
                financial results of Amtrak's operations;
                  (J) prior fiscal year and projected--
                          (i) operating ratio, cash operating 
                        loss, and cash operating loss per 
                        passenger on a route, business line, 
                        and corporate basis;
                          (ii) specific costs and savings 
                        estimates resulting from reform 
                        initiatives;
                          (iii) productivity statistics on a 
                        route, business line, and corporate 
                        basis; and
                          (iv) equipment reliability 
                        statistics;
                  (K) capital and operating expenditures for 
                anticipated security needs; and
                  (L) a prioritization of capital expenditures 
                by business line; and
          (2) reflect the Northeast Corridor planning, as 
        applicable, and grant processes established under 
        sections 24911 and 24318.
  (d) Conformance to Authorized Funding Levels.--
          (1) In general.--Except as provided in paragraph (2), 
        any financial projection for a fiscal year that is 
        included in a plan prepared under this section shall be 
        based on the amount of dedicated funding for such 
        fiscal year.
          (2) Absence of appropriation.--In the absence of an 
        appropriation of funds for such fiscal year, the 
        projection shall be based on the amount of funds 
        authorized by law to be appropriated for that fiscal 
        year, plus other dedicated funding.
          (3) Dedicated funding defined.--In this subsection, 
        the term ``dedicated funding'' means any amounts 
        appropriated for a fiscal year and any other funding 
        sources, including revenues and other ancillary funding 
        streams, for the Northeast Corridor or the National 
        Network.
  (e) Standards to Promote Financial Stability.--In preparing a 
plan under this section, the Board shall apply sound budgetary 
practices, including reducing costs and other expenditures, 
improving productivity, increasing revenues, or combinations of 
such practices.
  (f) Updates.--Amtrak shall provide monthly reports for the 
current fiscal year in electronic format to the Secretary and 
the Committee on Transportation and Infrastructure and the 
Committee on Appropriations of the House of Representatives and 
the Committee on Commerce, Science, and Transportation and the 
Committee on Appropriations of the Senate regarding the items 
described in subsection (c)(1), which shall include a 
description of the work completed to date, any differences from 
projections, and the reasons for such differences.

Sec. 24321. Food and beverage reform

  (a) Plan.--Not later than 90 days after the date of enactment 
of the Passenger Rail Reform and Investment Act of 2015, Amtrak 
shall develop and begin implementing a plan to eliminate, 
within 5 years of such date of enactment, the operating loss 
associated with providing food and beverage service on board 
Amtrak trains.
  (b) Considerations.--In developing and implementing the plan, 
Amtrak shall consider a combination of cost management and 
revenue generation initiatives, including--
          (1) scheduling optimization;
          (2) on-board logistics;
          (3) product development and supply chain efficiency;
          (4) training, awards, and accountability;
          (5) technology enhancements and process improvements; 
        and
          (6) ticket revenue allocation.
  (c) Savings Clause.--Amtrak shall ensure that no Amtrak 
employee holding a position as of the date of enactment of the 
Passenger Rail Reform and Investment Act of 2015 is 
involuntarily separated because of--
          (1) the development and implementation of the plan 
        required under subsection (a); or
          (2) any other action taken by Amtrak to implement 
        this section.
  (d) No Federal Funding for Operating Losses.--Beginning on 
the date that is 5 years after the date of enactment of the 
Passenger Rail Reform and Investment Act of 2015, no Federal 
funds may be used to cover any operating loss associated with 
providing food and beverage service on a route operated by 
Amtrak or an alternative passenger rail service provider that 
operates a route in lieu of Amtrak pursuant to section 24711.
  (e) Report.--Not later than 120 days after the date of 
enactment of the Passenger Rail Reform and Investment Act of 
2015, and annually thereafter for 5 years, Amtrak shall 
transmit 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 containing 
the plan developed pursuant to subsection (a) and a description 
of progress in the implementation of the plan.

           *       *       *       *       *       *       *

    CHAPTER 244--INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL 
                               ASSISTANCE

Sec.
24401. Definitions.
     * * * * * * *
24407. Federal-State partnership for Northeast Corridor rehabilitation 
          and improvement.

           *       *       *       *       *       *       *

Sec. 24402. Capital investment grants to support intercity passenger 
                    rail service

  (a) General Authority.--
          (1) The Secretary of Transportation may make grants 
        under this section to an applicant to assist in 
        financing the capital costs of facilities, 
        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 on-time 
                        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.
  (m) Large Capital Project Requirements.--
          (1) In general.--For a grant awarded under this 
        chapter for an amount in excess of $1,000,000,000, the 
        following conditions shall apply:
                  (A) The Secretary of Transportation shall not 
                obligate any funding unless the applicant 
                demonstrates to the satisfaction of the 
                Secretary that it has committed and will be 
                able to fulfill the non-Federal share required 
                for the grant within the applicant's proposed 
                project completion timetable.
                  (B) The Secretary shall not obligate any 
                funding for work activities that occur after 
                the completion of final design unless--
                          (i) the applicant transmits to the 
                        Secretary a financial plan that 
                        generally identifies the sources of the 
                        non-Federal funding required for any 
                        subsequent segments or phases of the 
                        corridor service development program 
                        covering the project for which the 
                        grant is made;
                          (ii) the grant will result in a 
                        useable segment, a transportation 
                        facility, or equipment, that has 
                        operational independence; and
                          (iii) the intercity passenger rail 
                        benefits anticipated to result from the 
                        grant, such as increased speed, 
                        improved on-time performance, reduced 
                        trip time, increased frequencies, new 
                        service, safety improvements, improved 
                        accessibility, or other significant 
                        enhancements are detailed by the 
                        grantee and approved by the Secretary.
                  (C) The Secretary shall ensure that the 
                project is maintained to the level of utility 
                that is necessary to support the benefits 
                approved under subparagraph (B)(iii) for a 
                period of 20 years from the date the useable 
                segment, transportation facility, or equipment 
                described in subparagraph (B)(ii) is placed in 
                service. If the project property is not 
                maintained as required by this subparagraph for 
                a period of time in excess of 12 months, then a 
                pro-rata share of the Federal contribution, 
                based upon the percentage remaining of the 20-
                year period that commenced when the project 
                property was placed in service, shall be 
                refunded.
          (2) Early work.--The Secretary may allow a grantee 
        subject to this subsection to engage in at-risk work 
        activities subsequent to the conclusion of final design 
        where the Secretary determines that such work 
        activities are reasonable and necessary.

           *       *       *       *       *       *       *

Sec. 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] 30 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.
  (12) Not later than 1 year after the date of enactment of the 
Passenger Rail Reform and Investment Act of 2015, and annually 
thereafter, the Secretary shall transmit to the Committee on 
Commerce, Science, and Transportation of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives a report listing any waiver issued under this 
section during the preceding year.
  (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.

           *       *       *       *       *       *       *

Sec. 24407. Federal-State partnership for Northeast Corridor 
                    rehabilitation and improvement

  (a) In General.--The Secretary of Transportation shall 
develop and implement a program for issuing grants to 
applicants, on a competitive basis, for the purpose of 
financing the capital projects included in the Northeast 
Corridor Priority Project List developed under subsection (c).
  (b) Definitions.--In this section, the following definitions 
apply:
          (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 or 
        commuter rail service.
          (2) Major state-of-good-repair project.--The term 
        ``major state-of-good-repair project'' means a capital 
        project primarily intended to replace, rehabilitate or 
        repair major Northeast Corridor infrastructure assets 
        utilized for providing intercity rail passenger 
        transportation, including tunnels, bridges, stations, 
        and other assets as determined by the Secretary.
          (3) Improvement project.--The term ``improvement 
        project'' means a capital project primarily intended to 
        improve intercity passenger rail performance on the 
        Northeast Corridor, including reduced trip times, 
        increased train frequencies, higher operating speeds, 
        and other improvements as determined by the Secretary.
  (c) Northeast Corridor Priority Project List.--The Northeast 
Corridor Infrastructure and Operations Advisory Commission, 
established under section 24905, shall develop and approve a 
Northeast Corridor Priority Project List that shall include--
          (1) a list of prioritized individual major state-of-
        good-repair projects and improvement projects along the 
        Northeast Corridor that--
                  (A) can be completed based on--
                          (i) the funding authorized under 
                        section 103(b) of the Passenger Rail 
                        Reform and Investment Act of 2015;
                          (ii) any subsequent applicable 
                        authorization in effect;
                          (iii) in the absence of such an 
                        authorization, a 5-year funding amount 
                        based on the most recent appropriation; 
                        or
                          (iv) the requirements of subsection 
                        (d); and
                  (B) are consistent with the Northeast 
                Corridor capital investment plan required under 
                section 24911(a);
          (2) an identification of the applicant for each 
        individual project;
          (3) an identification of the sources of non-Federal 
        matching funds for each project; and
          (4) a description of the benefits each project will 
        bring to intercity rail passenger services.
  (d) Use of Funds.--The Federal grants authorized under this 
section shall be for no more than 50 percent of the net project 
cost of the project involved.
  (e) Applicability of Capital Grant Requirements.--Except as 
specifically provided in this section, the use of any amounts 
appropriated for grants under this section shall be subject to 
the requirements of this chapter.
  (f) Match Requirements.--No grants may be obligated to an 
applicant under this section unless the applicant has 
transmitted to the Secretary of Transportation a binding 
written commitment to provide all amounts necessary for the 
purpose of matching Federal contributions as required by this 
section.
  (g) Updates to List.--The Northeast Corridor Infrastructure 
and Operations Advisory Commission shall revise the NEC 
Priority Project List as necessary to reflect--
          (1) any differences in the availability of Federal 
        funding from the levels assumed for purposes of 
        subsection (c)(1)(A) (i) and (ii);
          (2) any elimination or addition of projects; and
          (3) any reduction or increase in benefits to be 
        derived from a project.
  (h) Availability.--Amounts appropriated for carrying out this 
section shall remain available until expended.
  (i) Savings Clause.--Nothing in this section shall supplant 
the requirement of applicants to compensate Amtrak for the use 
of Amtrak facilities or services pursuant to section 24905(c).
  (j) Definition.--For purposes of this section, the term 
``Northeast Corridor'' means the Northeast Corridor main line 
between Boston, Massachusetts, and the District of Columbia, 
and the Northeast Corridor branch lines connecting to 
Harrisburg, Pennsylvania, Springfield, Massachusetts, and 
Spuyten Duyvil, New York, and facilities and services used to 
operate and maintain those lines.

           *       *       *       *       *       *       *

                    CHAPTER 247--AMTRAK ROUTE SYSTEM

Sec.
24701. National rail passenger transportation system.
     * * * * * * *
24712. State-supported routes.

           *       *       *       *       *       *       *

Sec. 24706. Discontinuance

  (a) Notice of Discontinuance.--(1) Except as provided in 
subsection (b) of this section, at least 180 days before [a 
discontinuance under section 24704 or or] discontinuing service 
over a route, Amtrak shall give notice of the discontinuance in 
the way Amtrak decides will give a State, a regional or local 
authority, or another person the opportunity to agree to share 
or assume the cost of any part of the train, route, or service 
to be discontinued.
  (2) Notice of the discontinuance under [section 24704 or] 
paragraph (1) shall be posted in all stations served by the 
train to be discontinued at least 14 days before the 
discontinuance.
  (b) Discontinuance for Lack of Appropriations.--(1) Amtrak 
may discontinue service under [section 24704 or] subsection 
(a)(1) during--
          (A) the first month of a fiscal year if the 
        authorization of appropriations and the appropriations 
        for Amtrak are not enacted at least 90 days before the 
        beginning of the fiscal year; and
          (B) the 30 days following enactment of an 
        appropriation for Amtrak or a rescission of an 
        appropriation.
  (2) Amtrak shall notify each affected State or regional or 
local transportation authority of a discontinuance under this 
subsection as soon as possible after Amtrak decides to 
discontinue the service.
  (c) Applicability.--This section applies to all service over 
routes provided by Amtrak, notwithstanding any provision of 
section 24701 of this title or any other provision of this 
title except section 24702(b).

           *       *       *       *       *       *       *

[Sec. 24711. Alternate passenger rail service pilot program

  [(a) In General.--Within 1 year after the date of enactment 
of the Passenger Rail Investment and Improvement Act of 2008, 
the Federal Railroad Administration shall complete a rulemaking 
proceeding to develop a pilot program that--
          [(1) permits a rail carrier or rail carriers that own 
        infrastructure over which Amtrak operates a passenger 
        rail service route described in subparagraph (B), (C), 
        or (D) of section 24102(5) or in section 24702 to 
        petition the Administration to be considered as a 
        passenger rail service provider over that route in lieu 
        of Amtrak for a period not to exceed 5 years after the 
        date of enactment of the Passenger Rail Investment and 
        Improvement Act of 2008;
          [(2) requires the Administration to notify Amtrak 
        within 30 days after receiving a petition under 
        paragraph (1) and establish a deadline by which both 
        the petitioner and Amtrak would be required to submit a 
        bid to provide passenger rail service over the route to 
        which the petition relates;
          [(3) requires that each bid describe how the bidder 
        would operate the route, what Amtrak passenger 
        equipment would be needed, if any, what sources of non-
        Federal funding the bidder would use, including any 
        State subsidy, among other things;
          [(4) requires the Administration to select winning 
        bidders by evaluating the bids against the financial 
        and performance metrics developed under section 207 of 
        the Passenger Rail Investment and Improvement Act of 
        2008 and to give preference in awarding contracts to 
        bidders seeking to operate routes that have been 
        identified as one of the five worst performing Amtrak 
        routes under section 24710;
          [(5) requires the Administration to execute a 
        contract within a specified, limited time after the 
        deadline established under paragraph (2) and award to 
        the winning bidder--
                  [(A) the right and obligation to provide 
                passenger rail service over that route subject 
                to such performance standards as the 
                Administration may require, consistent with the 
                standards developed under section 207 of the 
                Passenger Rail Investment and Improvement Act 
                of 2008; and
                  [(B) an operating subsidy--
                          [(i) for the first year at a level 
                        not in excess of the level in effect 
                        during the fiscal year preceding the 
                        fiscal year in which the petition was 
                        received, adjusted for inflation;
                          [(ii) for any subsequent years at 
                        such level, adjusted for inflation; and
          [(6) requires that each bid contain a staffing plan 
        describing the number of employees needed to operate 
        the service, the job assignments and requirements, and 
        the terms of work for prospective and current employees 
        of the bidder for the service outlined in the bid, and 
        such staffing plan be made available by the winning 
        bidder to the public after the bid award.
  [(b) Route Limitations.--The Administration may not make the 
program available with respect to more than 2 Amtrak intercity 
passenger rail routes.
  [(c) Performance Standards; Access to Facilities; 
Employees.--If the Administration awards the right and 
obligation to provide passenger rail service over a route under 
the program to a rail carrier or rail carriers--
          [(1) it shall execute a contract with the rail 
        carrier or rail carriers for rail passenger operations 
        on that route that conditions the operating and subsidy 
        rights upon--
                  [(A) the service provider continuing to 
                provide passenger rail service on the route 
                that is no less frequent, nor over a shorter 
                distance, than Amtrak provided on that route 
                before the award; and
                  [(B) the service provider's compliance with 
                the minimum standards established under section 
                207 of the Passenger Rail Investment and 
                Improvement Act of 2008 and such additional 
                performance standards as the Administration may 
                establish;
          [(2) it shall, if the award is made to a rail carrier 
        other than Amtrak, require Amtrak to provide access to 
        its reservation system, stations, and facilities 
        directly related to operations to any rail carrier or 
        rail carriers awarded a contract under this section, in 
        accordance with section 217 of that Act, necessary to 
        carry out the purposes of this section;
          [(3) the employees of any person used by a rail 
        carrier or rail carriers (as defined in section 
        10102(5) of this title) in the operation of a route 
        under this section shall be considered an employee of 
        that carrier or carriers and subject to the applicable 
        Federal laws and regulations governing similar crafts 
        or classes of employees of Amtrak, including provisions 
        under section 121 of the Amtrak Reform and 
        Accountability Act of 1997 relating to employees that 
        provide food and beverage service; and
          [(4) the winning bidder shall provide hiring 
        preference to qualified Amtrak employees displaced by 
        the award of the bid, consistent with the staffing plan 
        submitted by the bidder and shall be subject to the 
        grant conditions under section 24405 of this title.
  [(d) Cessation of Service.--If a rail carrier or rail 
carriers awarded a route under this section cease to operate 
the service or fail to fulfill their obligations under the 
contract required under subsection (c), the Administrator, in 
collaboration with the Surface Transportation Board, shall take 
any necessary action consistent with this title to enforce the 
contract and ensure the continued provision of service, 
including the installment of an interim service provider and 
re-bidding the contract to operate the service. The entity 
providing service shall either be Amtrak or a rail carrier 
defined in subsection (a)(1).
  [(e) Adequate Resources.--Before taking any action allowed 
under this section, the Secretary shall certify that the 
Administrator has sufficient resources that are adequate to 
undertake the program established under this section.]

Sec. 24711. Alternate passenger rail service pilot program

  (a) In General.--Not later than 1 year after the date of 
enactment of the Passenger Rail Reform and Investment Act of 
2015, the Federal Railroad Administration shall complete a 
rulemaking proceeding to develop a pilot program that--
          (1) permits a rail carrier or rail carriers that own 
        infrastructure over which Amtrak operates a passenger 
        rail service route described in subparagraph (B), (C), 
        or (D) of section 24102(7) or in section 24702(a) to 
        petition the Federal Railroad Administration to be 
        considered as a passenger rail service provider over 
        that route in lieu of Amtrak for an operations period 
        of 5 years;
          (2) requires the Federal Railroad Administration to 
        notify Amtrak within 30 days after receiving a petition 
        under paragraph (1) and establish a deadline by which 
        both the petitioner and Amtrak would be required to 
        submit a bid to provide passenger rail service over the 
        route to which the petition relates;
          (3) requires that each bid describe how the bidder 
        would operate the route, what Amtrak passenger 
        equipment would be needed, if any, and what sources of 
        non-Federal funding the bidder would use, including any 
        State subsidy, among other things;
          (4) requires the Federal Railroad Administration to 
        execute a contract within a specified, limited time 
        after the deadline established under paragraph (2) and 
        award to the winning bidder--
                  (A) the right and obligation to provide 
                passenger rail service over that route subject 
                to such performance standards as the Federal 
                Railroad Administration may require; and
                  (B) an operating subsidy--
                          (i) for the first year at a level not 
                        in excess of 90 percent of the level in 
                        effect for that specific route during 
                        the fiscal year preceding the fiscal 
                        year in which the petition was 
                        received, adjusted for inflation; and
                          (ii) for any subsequent years at the 
                        level calculated under clause (i), 
                        adjusted for inflation; and
          (5) requires that each bid contain a staffing plan 
        describing the number of employees needed to operate 
        the service, the job assignments and requirements, and 
        the terms of work for prospective and current employees 
        of the bidder for the service outlined in the bid, and 
        that such staffing plan be made available by the 
        winning bidder to the public after the bid award.
  (b) Route Limitations.--The Federal Railroad Administration 
may not make the program available with respect to more than 2 
Amtrak intercity passenger rail routes.
  (c) Performance Standards; Access to Facilities; Employees.--
If the Federal Railroad Administration awards the right and 
obligation to provide passenger rail service over a route under 
this section to a rail carrier or rail carriers--
          (1) it shall execute a contract with the rail carrier 
        or rail carriers for rail passenger operations on that 
        route that conditions the operating and subsidy rights 
        on--
                  (A) the service provider continuing to 
                provide passenger rail service on the route 
                that is no less frequent, nor over a shorter 
                distance, than Amtrak provided on that route 
                before the award; and
                  (B) the service provider's compliance with 
                the standards established under subsection 
                (a)(4)(A), and such additional performance 
                standards as the Administration may establish;
          (2) it shall, if the award is made to a rail carrier 
        other than Amtrak, require Amtrak to provide access to 
        its reservation system, stations, and facilities 
        directly related to operations to any rail carrier or 
        rail carriers awarded a contract under this section, in 
        accordance with subsection (d), necessary to carry out 
        the purposes of this section;
          (3) an employee of any person used by such rail 
        carrier or rail carriers in the operation of a route 
        under this section shall be considered an employee of 
        that carrier or carriers and subject to the applicable 
        Federal laws and regulations governing similar crafts 
        or classes of employees of Amtrak, including provisions 
        under section 121 of the Amtrak Reform and 
        Accountability Act of 1997 (49 U.S.C. 4312 note) 
        relating to employees that provide food and beverage 
        service; and
          (4) the winning bidder shall provide hiring 
        preference to qualified Amtrak employees displaced by 
        the award of the bid, consistent with the staffing plan 
        submitted by the bidder, and shall be subject to the 
        grant conditions under section 24405 of this title.
  (d) Disputes.--If Amtrak and the rail carrier or rail 
carriers awarded a route under this section cannot agree upon 
terms to carry out subsection (c)(2), and the Surface 
Transportation Board finds that access to Amtrak's facilities 
or equipment, or the provision of services by Amtrak, is 
necessary to carry out subsection (c)(2) and that the operation 
of Amtrak's other services will not be impaired thereby, the 
Surface Transportation Board shall, within 120 days after 
submission of the dispute, issue an order that the facilities 
and equipment be made available, and that services be provided, 
by Amtrak, and shall determine reasonable compensation, 
liability, and other terms for use of the facilities and 
equipment and provision of the services.
  (e) Cessation of Service.--If a rail carrier or rail carriers 
awarded a route under this section cease to operate the service 
or fail to fulfill their obligations under the contract 
required under subsection (c), the Federal Railroad 
Administration, in collaboration with the Surface 
Transportation Board, shall take any necessary action 
consistent with this title to enforce the contract and ensure 
the continued provision of service, including the installment 
of an interim service provider and rebidding the contract to 
operate the service. The entity providing service shall either 
be Amtrak or a rail carrier defined in subsection (a)(1).
  (f) Adequate Resources.--Before taking any action allowed 
under this section, the Secretary shall certify that the 
Federal Railroad Administration has sufficient resources 
appropriated under section 101(b) of Passenger Rail Reform and 
Investment Act of 2015, or any subsequent appropriation, for 
that purpose that are adequate to undertake the program 
established under this section.
  (g) Budget Authority.--The Secretary of Transportation may 
provide to a winning bidder selected under this section 
appropriations authorized under sections 101(b) of the 
Passenger Rail Reform and Investment Act of 2015, or any 
subsequent appropriation for the same purposes, necessary to 
cover the operating subsidy described in subsection (a)(4)(B).

Sec. 24712. State-supported routes

  (a) State-Supported Route Advisory Committee.--
          (1) Establishment.--Not later than 90 days after the 
        date of enactment of the Passenger Rail Reform and 
        Investment Act of 2015, the Secretary of Transportation 
        shall establish a State-Supported Route Advisory 
        Committee to promote mutual cooperation and planning 
        pertaining to the rail operations and related 
        activities of trains operated on State-supported routes 
        and to further implement section 209 of the Passenger 
        Rail Investment and Improvement Act of 2008 (49 U.S.C. 
        24101 note).
          (2) Membership.--The Committee shall consist of 
        representatives of--
                  (A) Amtrak;
                  (B) the Department of Transportation, 
                including the Federal Railroad Administration; 
                and
                  (C) 7 States that sponsor State-supported 
                routes, selected by the Administrator of the 
                Federal Railroad Administration on the basis of 
                appropriate expertise and geographic balance, 
                and in a manner that ensures that all 
                appropriate States are represented periodically 
                on the Committee.
          (3) Distribution of membership.--The membership 
        belonging to any of the groups described in each 
        individual subparagraph of paragraph (2) shall not 
        constitute a majority of the Committee's memberships.
          (4) Meetings; rules and procedures.--The Committee 
        shall establish a schedule and location for convening 
        meetings, but shall meet no less than 2 times every 
        fiscal year. The Committee shall develop rules and 
        procedures to govern the Committee's proceedings.
  (b) Cost, Service, and Ridership Forecasts.--
          (1) In general.--Not later than January 31, 2016, and 
        annually thereafter, Amtrak shall transmit to each 
        State that sponsors a State-supported route, and to the 
        Committee on Transportation and Infrastructure and the 
        Committee on Appropriations of the House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation and the Committee on Appropriations 
        of the Senate--
                  (A) a final statement of costs, revenues, 
                ridership, and other information determined 
                appropriate by the Committee established under 
                subsection (a), pertaining to each such route 
                for the prior fiscal year; and
                  (B) a cost, service, and ridership forecast 
                for each such route for the upcoming fiscal 
                year, developed pursuant to the methodology 
                established under section 209 of the Passenger 
                Rail Investment and Improvement Act of 2008 (49 
                U.S.C. 24101 note).
          (2) Exception.--The Committee may establish a 
        different deadline than is required under paragraph (1) 
        for submission of final financial statements and cost, 
        service, and ridership forecasts.
          (3) Quarterly updates.--Beginning in 2016, and each 
        year thereafter, Amtrak shall transmit to each State 
        that sponsors a State-supported route quarterly updates 
        of the cost, service, and ridership forecast described 
        in paragraph (1)(B) to enable States to pace costs 
        against State budgets, plan effectively, and address 
        unexpected changes in costs in a timely manner, on the 
        following dates:
                  (A) April 30, for the period encompassing 
                January through March of such year.
                  (B) July 31, for the period encompassing 
                April through June of such year.
                  (C) October 31, for the period encompassing 
                July through September of such year.
  (c) Invoices.--Not later than February 15, 2016, and monthly 
thereafter, Amtrak shall provide to each State that sponsors a 
State-supported route a monthly invoice of the cost of 
operating such route, including fixed costs and third-party 
costs.
  (d) Dispute Resolution.--
          (1) Request for expedited resolution.--If a dispute 
        arises with respect to a forecast developed under 
        subsection (b), an invoice developed under subsection 
        (c), or the terms of a contract for operation of a 
        State-supported route negotiated between Amtrak and a 
        State that sponsors the route, either Amtrak or the 
        State may request that the Surface Transportation Board 
        conduct expedited dispute resolution under this 
        subsection.
          (2) Procedures.--The Surface Transportation Board 
        shall establish procedures for expedited resolution of 
        disputes brought before it under this subsection.
          (3) Binding effect.--The decision of the Surface 
        Transportation Board under this subsection shall be 
        binding on the parties to the dispute.
  (e) FRA Assistance.--The Federal Railroad Administration may 
provide assistance to the parties in the course of negotiations 
for a contract for operation of a State-supported route.
  (f) Performance Metrics.--In negotiating a contract for 
operation of a State-supported route, Amtrak and the State or 
States that sponsor the route shall consider including 
provisions that provide penalties and incentives for 
performance based on metrics that take into account only those 
factors within the control of Amtrak or the State or States.
  (g) Definition of State.--In this section, the term ``State'' 
means each of the 50 States and the District of Columbia.

           *       *       *       *       *       *       *

          CHAPTER 249--NORTHEAST CORRIDOR IMPROVEMENT PROGRAM

Sec.
24901. Definitions.
     * * * * * * *
24911. Northeast Corridor planning.

           *       *       *       *       *       *       *

Sec. 24911. Northeast Corridor planning

  (a) Northeast Corridor Capital Investment Plan.--
          (1) Requirement.--Not later than 12 months after the 
        date of enactment of the Passenger Rail Reform and 
        Investment Act of 2015, and annually thereafter, the 
        Northeast Corridor Infrastructure and Operations 
        Advisory Commission established under section 24905 
        (referred to in this section as the ``Commission'') 
        shall develop a capital investment plan for the 
        Northeast Corridor main line between Boston, 
        Massachusetts, and the District of Columbia, and the 
        Northeast Corridor branch lines connecting to 
        Harrisburg, Pennsylvania, Springfield, Massachusetts, 
        and Spuyten Duyvil, New York, and facilities and 
        services used to operate and maintain those lines.
          (2) Contents.--Each such plan shall--
                  (A) be developed to establish a coordinated 
                approach to capital spending on the Northeast 
                Corridor;
                  (B) cover a period of 5 fiscal years, 
                beginning with the first fiscal year after the 
                date of the plan;
                  (C) notwithstanding section 24902(b), 
                prioritize projects and investments along the 
                Northeast Corridor based on--
                          (i) the anticipated benefits and 
                        costs of projects;
                          (ii) the anticipated Federal and non-
                        Federal funding available; and
                          (iii) the information contained in 
                        the Northeast Corridor asset management 
                        plans required under subsection (b), 
                        once available;
                  (D) ensure coordination and optimization 
                across the entire Northeast Corridor and among 
                the various owners and users;
                  (E) include a financial plan for the 
                investment period that--
                          (i) categorizes each capital project 
                        as being primarily associated with--
                                  (I) normalized capital 
                                replacement;
                                  (II) replacement, 
                                rehabilitation, or repair of 
                                Northeast Corridor 
                                infrastructure assets, 
                                including tunnels, bridges, 
                                stations, and other assets; or
                                  (III) improvement of train 
                                performance on the Northeast 
                                Corridor, including reduced 
                                trip times, increased train 
                                frequencies, higher operating 
                                speeds, and other improvements;
                          (ii) identifies the anticipated 
                        funding source and financing method for 
                        each capital project described in 
                        subclauses (II) and (III) of clause 
                        (i);
                          (iii) describes the anticipated 
                        outcomes of each project, including--
                                  (I) an assessment of the 
                                potential effect on passenger 
                                accessibility, operations, 
                                safety, reliability, and 
                                resiliency, and on the ability 
                                of infrastructure owners and 
                                operators to meet regulatory 
                                requirements should the project 
                                not be funded; and
                                  (II) an assessment of the 
                                benefits and costs;
                          (iv) identifies the extent to which 
                        the capital assets are or will be 
                        jointly used by intercity passenger 
                        rail service and other users, and the 
                        proportionate share of that joint 
                        usage; and
                          (v) for projects that are expected to 
                        be fully or partially funded through 
                        Federal financial assistance, 
                        identifies the most appropriate public 
                        agency or entity to receive those funds 
                        and implement each capital project.
          (3) Additional contents.--Any plan developed under 
        paragraph (1) after the publication by the Secretary of 
        Transportation of the Northeast Corridor service 
        development plan shall also--
                  (A) be developed to identify, prioritize, and 
                phase the implementation of projects necessary 
                to achieve the goals and findings contained in 
                such Northeast Corridor service development 
                plan;
                  (B) allow for flexibility to change 
                prioritization and programs based upon the 
                availability of Federal and non-Federal 
                funding;
                  (C) inform the Secretary in developing 
                recommendations for Congress on Federal funding 
                needs for the Northeast Corridor and any 
                corresponding Federal investments in the 
                respective capital programs for Northeast 
                Corridor infrastructure owners and users; and
                  (D) capture the network-level anticipated 
                outcomes associated with plan implementation, 
                including the anticipated effect on passenger 
                accessibility, operations, safety, reliability, 
                and resiliency.
  (b) Northeast Corridor Asset Management Plans.--
          (1) Contents.--Amtrak, and States and public 
        transportation entities that own infrastructure that 
        supports or provides for intercity rail passenger 
        transportation on the Northeast Corridor, shall develop 
        and update as necessary Northeast Corridor asset 
        management plans for the Northeast Corridor main line 
        between Boston, Massachusetts, and the District of 
        Columbia, and the Northeast Corridor branch lines 
        connecting to Harrisburg, Pennsylvania, Springfield, 
        Massachusetts, and Spuyten Duyvil, New York, and 
        facilities and services used to operate and maintain 
        those lines, that--
                  (A) are consistent with the Federal Transit 
                Administration process, as authorized under 
                section 5326, when implemented; and
                  (B) include, at a minimum--
                          (i) an inventory of all capital 
                        assets owned by the developer of the 
                        plan;
                          (ii) an assessment of the condition 
                        of each of those assets;
                          (iii) a description of how the 
                        condition of each asset has changed 
                        since the previous iteration of the 
                        plan; and
                          (iv) a description of the necessary 
                        resources and processes for bringing or 
                        maintaining those assets in a state-of-
                        good repair, including decision support 
                        tools and investment prioritization 
                        methodologies.
          (2) Transmittal to commission.--Not later than 12 
        months after the date of enactment of the Passenger 
        Rail Reform and Investment Act of 2015, each entity 
        described in paragraph (1) shall transmit to the 
        Commission a plan developed under paragraph (1). Any 
        updates to such plan shall also be transmitted to the 
        Commission.
  (c) Northeast Corridor Service Development Plan Updates.--The 
Commission shall, at least once every 10 years, update the 
Northeast Corridor service development plan.

           *       *       *       *       *       *       *

                              ----------                              

PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2008

           *       *       *       *       *       *       *

                           DIVISION B--AMTRAK

SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This division may be cited as the 
``Passenger Rail Investment and Improvement Act of 2008''.
  (b) Table of Contents.--The table of contents for this 
division is as follows:

     * * * * * * *

          TITLE II--AMTRAK REFORM AND OPERATIONAL IMPROVEMENTS

Sec. 201. National railroad passenger transportation system defined.
     * * * * * * *
[Sec. 204. Development of 5-year financial plan.]
     * * * * * * *
[Sec. 206. Establishment of grant process.]
     * * * * * * *
[Sec. 211. Northeast Corridor state-of-good-repair plan.]

           *       *       *       *       *       *       *

TITLE II--AMTRAK REFORM AND OPERATIONAL IMPROVEMENTS

           *       *       *       *       *       *       *

[SEC. 204. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

  [(a) Development of 5-Year Financial Plan.--The Amtrak Board 
of Directors shall submit an annual budget and business plan 
for Amtrak, and a 5-year financial plan for the fiscal year to 
which that budget and business plan relate and the subsequent 4 
years, prepared in accordance with this section, to the 
Secretary and the Inspector General of the Department of 
Transportation no later than--
          [(1) the first day of each fiscal year beginning 
        after the date of enactment of this Act; or
          [(2) the date that is 60 days after the date of 
        enactment of an appropriations Act for the fiscal year, 
        if later.
  [(b) Contents of 5-Year Financial Plan.--The 5-year financial 
plan for Amtrak shall include, at a minimum--
          [(1) all projected revenues and expenditures for 
        Amtrak, including governmental funding sources;
          [(2) projected ridership levels for all Amtrak 
        passenger operations;
          [(3) revenue and expenditure forecasts for non-
        passenger operations;
          [(4) capital funding requirements and expenditures 
        necessary to maintain passenger service in order to 
        accommodate predicted ridership levels and predicted 
        sources of capital funding;
          [(5) operational funding needs, if any, to maintain 
        current and projected levels of passenger service, 
        including State-supported routes and predicted funding 
        sources;
          [(6) projected capital and operating requirements, 
        ridership, and revenue for any new passenger service 
        operations or service expansions;
          [(7) an assessment of the continuing financial 
        stability of Amtrak, as indicated by factors such as 
        anticipated Federal funding of capital and operating 
        costs, Amtrak's ability to efficiently recruit, retain, 
        and manage its workforce, and Amtrak's ability to 
        effectively provide passenger rail service;
          [(8) estimates of long-term and short-term debt and 
        associated principal and interest payments (both 
        current and anticipated);
          [(9) annual cash flow forecasts;
          [(10) a statement describing methods of estimation 
        and significant assumptions;
          [(11) specific measures that demonstrate measurable 
        improvement year over year in the financial results of 
        Amtrak's operations;
          [(12) prior fiscal year and projected operating 
        ratio, cash operating loss, and cash operating loss per 
        passenger on a route, business line, and corporate 
        basis;
          [(13) prior fiscal year and projected specific costs 
        and savings estimates resulting from reform 
        initiatives;
          [(14) prior fiscal year and projected labor 
        productivity statistics on a route, business line, and 
        corporate basis;
          [(15) prior fiscal year and projected equipment 
        reliability statistics; and
          [(16) capital and operating expenditures for 
        anticipated security needs.
  [(c) Standards To Promote Financial Stability.--In meeting 
the requirements of subsection (b), Amtrak shall--
          [(1) apply sound budgetary practices, including 
        reducing costs and other expenditures, improving 
        productivity, increasing revenues, or combinations of 
        such practices;
          [(2) use the categories specified in the financial 
        accounting and reporting system developed under section 
        203 when preparing its 5-year financial plan; and
          [(3) ensure that the plan is consistent with the 
        authorizations of appropriations under title I of this 
        division.
  [(d) Review by DOT Inspector General.--Within 60 days after 
their submission by Amtrak, the Inspector General of the 
Department of Transportation shall review the annual budget and 
the 5-year financial plans prepared by Amtrak under this 
section to determine whether they meet the requirements of 
subsection (b) and shall furnish any relevant findings to the 
Committee on Transportation and Infrastructure of the House of 
Representatives, the Committee on Appropriations of the House 
of Representatives, the Committee on Commerce, Science, and 
Transportation of the Senate, and the Committee on 
Appropriations of the Senate.]

SEC. 205. RESTRUCTURING LONG-TERM DEBT AND CAPITAL LEASES.

  (a) In General.--The Secretary of the Treasury, in 
consultation with the Secretary and Amtrak, may make agreements 
to restructure Amtrak's indebtedness [as of the date of 
enactment of this Act], to the extent provided in advance in 
appropriations Acts. [This authorization expires 2 years after 
the date of enactment of this Act.]
  (b) Debt Restructuring.--[The Secretary of the Treasury, in 
consultation] To the extent amounts are provided in advance in 
appropriations Acts, the Secretary of the Treasury, in 
consultation with the Secretary and Amtrak, shall enter into 
negotiations with the holders of Amtrak debt, including leases, 
outstanding [as of the date of enactment of this Act] for the 
purpose of restructuring (including repayment) and repaying 
that debt. The Secretary of the Treasury may secure agreements 
for restructuring or repayment on such terms as the Secretary 
of the Treasury deems favorable to the interests of the United 
States Government.
  (c) Criteria.--In restructuring Amtrak's indebtedness, the 
Secretary of the Treasury and Amtrak--
          (1) shall take into consideration repayment costs, 
        the term of any loan or loans, and market conditions; 
        and
          (2) shall ensure that the restructuring results in 
        significant savings to Amtrak and the United States 
        Government.
  (d) Payment of Renegotiated Debt.--If the criteria under 
subsection (c) are met, the Secretary of the Treasury may 
assume or repay the restructured debt, as appropriate, to the 
extent provided in advance in appropriations Acts.
  (e) Amtrak Principal and Interest Payments.--
          (1) Principal on debt service.--Unless the Secretary 
        of the Treasury makes sufficient payments to creditors 
        under subsection (d) so that Amtrak is required to make 
        no payments to creditors in a fiscal year, the 
        Secretary shall use funds authorized [by section 102 of 
        this division] for the use of Amtrak for retirement of 
        principal or payment of interest on loans for capital 
        equipment, or capital leases.
          (2) Reductions in authorization levels.--Whenever 
        action taken by the Secretary of the Treasury under 
        subsection (a) results in reductions in amounts of 
        principal or interest that Amtrak must service on 
        existing debt, the corresponding amounts authorized [by 
        section 102] for Amtrak shall be reduced accordingly.
  (f) Legal Effect of Payments Under This Section.--The payment 
of principal and interest on secured debt, other than debt 
assumed under subsection (d), with the proceeds of grants under 
subsection (e) shall not--
          (1) modify the extent or nature of any indebtedness 
        of Amtrak to the United States in existence [as of the 
        date of enactment of this Act];
          (2) change the private nature of Amtrak's or its 
        successors' liabilities; or
          (3) imply any Federal guarantee or commitment to 
        amortize Amtrak's outstanding indebtedness.
  (g) Secretary Approval.--Amtrak may not incur more debt after 
the date of enactment of this Act without the express advance 
approval of the Secretary.
  (h) Report.--The Secretary of the Treasury shall transmit a 
report to the Committee on Transportation and Infrastructure of 
the House of Representatives, the Committee on Appropriations 
of the House of Representatives, the Committee on Commerce, 
Science, and Transportation of the Senate, and the Committee on 
Appropriations of the Senate, by June 1, 2010--
          (1) describing in detail any agreements to 
        restructure the Amtrak debt; and
          (2) providing an estimate of the savings to Amtrak 
        and the United States Government.

[SEC. 206. ESTABLISHMENT OF GRANT PROCESS.

  [(a) Grant Requests.--Amtrak shall submit grant requests 
(including a schedule for the disbursement of funds), 
consistent with the requirements of this division, to the 
Secretary for funds authorized to be appropriated to the 
Secretary for the use of Amtrak under sections 101(a), (b), and 
(c), 102, 219(b), and 302.
  [(b) Procedures for Grant Requests.--The Secretary shall 
establish substantive and procedural requirements, including 
schedules, for grant requests under this section not later than 
30 days after the date of enactment of this Act and shall 
transmit copies of such requirements and schedules to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate. As part of those requirements, 
the Secretary shall require, at a minimum, that Amtrak deposit 
grant funds, consistent with the appropriated amounts for each 
area of expenditure in a given fiscal year, in the following 2 
accounts:
          [(1) The Amtrak Operating account.
          [(2) The Amtrak General Capital account.
Amtrak may not transfer such funds to another account or expend 
such funds for any purpose other than the purposes covered by 
the account in which the funds are deposited without approval 
by the Secretary.
  [(c) Review and Approval.--
          [(1) 30-day approval process The Secretary shall 
        complete the review of a grant request (including the 
        disbursement schedule) and approve or disapprove the 
        request within 30 days after the date on which Amtrak 
        submits the grant request. If the Secretary disapproves 
        the request or determines that the request is 
        incomplete or deficient, the Secretary shall include 
        the reason for disapproval or the incomplete items or 
        deficiencies in a notice to Amtrak.
          [(2) 15-day modification period Within 15 days after 
        receiving notification from the Secretary under the 
        preceding sentence, Amtrak shall submit a modified 
        request for the Secretary's review.
          [(3) Revised requests Within 15 days after receiving 
        a modified request from Amtrak, the Secretary shall 
        either approve the modified request, or, if the 
        Secretary finds that the request is still incomplete or 
        deficient, the Secretary shall identify in writing to 
        the Committee on Transportation and Infrastructure of 
        the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate the 
        remaining deficiencies and recommend a process for 
        resolving the outstanding portions of the request.]

           *       *       *       *       *       *       *

[SEC. 208. METHODOLOGIES FOR AMTRAK ROUTE AND SERVICE PLANNING 
                    DECISIONS.

  [(a) Methodology Development.--Within 180 days after the date 
of enactment of this Act, the Federal Railroad Administration 
shall obtain the services of a qualified independent entity to 
develop and recommend objective methodologies for Amtrak to use 
in determining what intercity passenger routes and services it 
will provide, including the establishment of new routes, the 
elimination of existing routes, and the contraction or 
expansion of services or frequencies over such routes. In 
developing such methodologies, the entity shall consider--
          [(1) the current or expected performance and service 
        quality of intercity passenger train operations, 
        including cost recovery, on-time performance and 
        minutes of delay, ridership, on-board services, 
        stations, facilities, equipment, and other services;
          [(2) connectivity of a route with other routes;
          [(3) the transportation needs of communities and 
        populations that are not well served by intercity 
        passenger rail service or by other forms of intercity 
        transportation;
          [(4) Amtrak's and other major intercity passenger 
        rail service providers in other countries' 
        methodologies for determining intercity passenger rail 
        routes and services; and
          [(5) the views of the States and other interested 
        parties.
  [(b) Submittal to Congress.--Within 1 year after the date of 
enactment of this Act, the entity shall submit recommendations 
developed under subsection (a) to Amtrak, the Committee on 
Transportation and Infrastructure of the House of 
Representatives, and the Committee on Commerce, Science, and 
Transportation of the Senate.
  [(c) Consideration of Recommendations.--Within 90 days after 
receiving the recommendations developed under subsection (a) by 
the entity, the Amtrak Board of Directors shall consider the 
adoption of those recommendations. The Board shall transmit a 
report to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate explaining its 
reasons for adopting or not adopting the recommendations.]

SEC. 208. METHODOLOGIES FOR AMTRAK ROUTE AND SERVICE PLANNING 
                    DECISIONS.

  (a) Methodology Development.--Not later than 180 days after 
the date of enactment of the Passenger Rail Reform and 
Investment Act of 2015, as a condition of receiving a grant 
under section 101 of such Act, Amtrak shall obtain the services 
of an independent entity to develop and recommend objective 
methodologies for Amtrak to use in determining what intercity 
rail passenger transportation routes and services it should 
provide, including the establishment of new routes, the 
elimination of existing routes, and the contraction or 
expansion of services or frequencies over such routes.
  (b) Considerations.--Amtrak shall require the entity, in 
developing the methodologies described in subsection (a), to 
consider--
          (1) the current and expected performance and service 
        quality of intercity rail passenger transportation 
        operations, including cost recovery, on-time 
        performance, ridership, on-board services, stations, 
        facilities, equipment, and other services;
          (2) connectivity of a route with other routes;
          (3) the transportation needs of communities and 
        populations that are not well served by intercity rail 
        passenger transportation service or by other forms of 
        intercity transportation;
          (4) the methodologies of Amtrak and major intercity 
        rail passenger transportation service providers in 
        other countries for determining intercity passenger 
        rail routes and services;
          (5) the views of States, rail carriers that own 
        infrastructure over which Amtrak operates, Amtrak 
        employee representatives, and other interested parties; 
        and
          (6) the funding levels that will be available under 
        authorization levels that have been enacted into law.
  (c) Recommendations.--Not later than 1 year after the date of 
enactment of the Passenger Rail Reform and Investment Act of 
2015, Amtrak shall transmit to the Committee on Transportation 
and Infrastructure of the House of Representatives, and the 
Committee on Commerce, Science, and Transportation of the 
Senate the recommendations developed by the entity pursuant to 
subsection (a).
  (d) Consideration of Recommendations.--Not later than 90 days 
after transmitting the recommendations pursuant to subsection 
(c), the Amtrak Board of Directors shall consider the adoption 
of the recommendations and transmit 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 containing an explanation 
of any reasons for adopting or not adopting the 
recommendations.

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[SEC. 211. NORTHEAST CORRIDOR STATE-OF-GOOD-REPAIR PLAN.

  [(a) In General.--Within 6 months after the date of enactment 
of this Act, Amtrak, in consultation with the Secretary and the 
States (including the District of Columbia) that make up the 
Northeast Corridor (as defined in section 24102 of title 49, 
United States Code), shall prepare a capital spending plan for 
capital projects required to return the railroad right-of-way 
(including track, signals, and auxiliary structures), 
facilities, stations, and equipment, of the Northeast Corridor 
main line to a state-of-good-repair by the end of fiscal year 
2018, consistent with the funding levels authorized in this 
division, and shall submit the plan to the Secretary.
  [(b) Review and Approval by the Secretary.--
          [(1) 60-day approval process.--The Secretary shall 
        complete the review of the capital spending plan and 
        approve or disapprove the plan within 60 days after the 
        date on which Amtrak submits the plan. During review, 
        the Secretary may seek comments from the Commission 
        established under section 24905 of title 49, United 
        States Code, and other Northeast Corridor users 
        regarding the plan. If the Secretary disapproves the 
        plan or determines that the plan is incomplete or 
        deficient, the Secretary shall include the reason for 
        disapproval or the incomplete items or deficiencies in 
        a notice to Amtrak.
          [(2) 15-day modification period.--Within 15 days 
        after receiving notification from the Secretary under 
        paragraph (1), Amtrak shall submit a modified plan for 
        the Secretary's review.
          [(3) Revised requests.--Within 15 days after 
        receiving a modified plan from Amtrak, the Secretary 
        shall either approve the modified plan, or, if the 
        Secretary finds that the plan is still incomplete or 
        deficient, the Secretary shall identify in writing to 
        the Committee on Transportation and Infrastructure of 
        the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate the 
        remaining deficiencies and recommend a process for 
        resolving the outstanding portions of the plan.
  [(c) Plan Updates.--The plan shall be updated at least 
annually and the Secretary shall review and approve such 
updates, in accordance with the procedures described in 
subsection (b).
  [(d) Grants.--The Secretary shall make grants to Amtrak with 
funds authorized by section 101(c) for Northeast Corridor 
capital investments contained within the capital spending plan 
prepared by Amtrak and approved by the Secretary.
  [(e) Oversight.--Using the funds authorized by section 
101(d), the Secretary shall review Amtrak's capital 
expenditures funded by this section to ensure that such 
expenditures are consistent with the capital spending plan and 
that Amtrak is providing adequate project management oversight 
and fiscal controls.
  [(f) Eligibility of Expenditures.--The Federal share of 
expenditures for capital improvements under this section may 
not exceed 100 percent.]

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SEC. 217. ACCESS TO AMTRAK EQUIPMENT AND SERVICES.

  If a State desires to select or selects an entity other than 
Amtrak to provide services required for the operation of an 
intercity passenger train route described in section 
[24102(5)(D)] 24102(7)(D) or 24702 of title 49, United States 
Code, the State may make an agreement with Amtrak to use 
facilities and equipment of, or have services provided by, 
Amtrak under terms agreed to by the State and Amtrak to enable 
the State to utilize an entity other than Amtrak to provide 
services required for operation of the route. If the parties 
cannot agree upon terms, and the Surface Transportation Board 
finds that access to Amtrak's facilities or equipment, or the 
provision of services by Amtrak, is necessary to carry out this 
provision and that the operation of Amtrak's other services 
will not be impaired thereby, the Surface Transportation Board 
shall, within 120 days after submission of the dispute, issue 
an order that the facilities and equipment be made available, 
and that services be provided, by Amtrak, and shall determine 
reasonable compensation, liability, and other terms for use of 
the facilities and equipment and provision of the services. 
Compensation shall be determined, as appropriate, in accordance 
with the methodology established pursuant to section 209 of 
this division, if available.

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TITLE III--INTERCITY PASSENGER RAIL POLICY

           *       *       *       *       *       *       *

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, 
nonprofit organizations representing employees who perform 
overhaul and maintenance of passenger railroad equipment, 
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 next-generation corridor train equipment 
[and establishing a jointly-owned corporation to manage that 
equipment].

           *       *       *       *       *       *       *

                              ----------                              

RAILROAD REVITALIZATION AND REGULATORY REFORM ACT OF 1976

           *       *       *       *       *       *       *

TITLE V--RAILROAD REHABILITATION AND IMPROVEMENT FINANCING

           *       *       *       *       *       *       *

SEC. 502. DIRECT LOANS AND LOAN GUARANTEES.

  (a) General Authority.--The Secretary shall provide direct 
loans and loan guarantees to--
          (1) State and local governments;
          (2) interstate compacts consented to by Congress 
        under section 410(a) of the Amtrak Reform and 
        Accountability Act of 1997 (49 U.S.C. 24101 note);
          (3) government sponsored authorities and 
        corporations;
          (4) railroads;
          (5) joint ventures that include at least one 
        railroad; and
          (6) solely for the purpose of constructing a rail 
        connection between a plant or facility and a second 
        rail carrier, limited option rail freight shippers that 
        own or operate a plant or other facility that is served 
        by no more than a single railroad.
  (b) Eligible Purposes.--
          (1) In general.--Direct loans and loan guarantees 
        under this section shall be used to--
                  (A) acquire, improve, or rehabilitate 
                intermodal or rail equipment or facilities, 
                including track, components of track, bridges, 
                yards, buildings, and shops;
                  (B) refinance outstanding debt incurred for 
                the purposes described in subparagraph (A); or
                  (C) develop or establish new intermodal or 
                railroad facilities.
          (2) Operating expenses not eligible.--Direct loans 
        and loan guarantees under this section shall not be 
        used for railroad operating expenses.
  (c) Priority Projects.--In granting applications for direct 
loans or guaranteed loans under this section, the Secretary 
shall give priority to projects that--
          (1) enhance public safety, including projects for the 
        installation of a positive train control (as defined in 
        section 20157(i) of title 49, United States Code) 
        system;
          (2) enhance the environment;
          (3) promote economic development;
          (4) enable United States companies to be more 
        competitive in international markets;
          (5) are endorsed by the plans prepared under section 
        135 of title 23, United States Code, by the State or 
        States in which they are located;
          (6) preserve or enhance rail or intermodal service to 
        small communities or rural areas;
          (7) enhance service and capacity in the national rail 
        system; or
          (8) would materially alleviate rail capacity problems 
        which degrade the provision of service to shippers and 
        would fulfill a need in the national transportation 
        system.
  (d) Extent of Authority.--The aggregate unpaid principal 
amounts of obligations under direct loans and loan guarantees 
made under this section shall not exceed $35,000,000,000 at any 
one time. Of this amount, 40 percent shall be available solely 
for projects described in subsection (l)(1), and not less than 
$7,000,000,000 shall be available solely for projects primarily 
benefiting freight railroads other than Class I carriers. 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.
  (e) Rates of Interest.--
          (1) Direct loans.--The Secretary shall require 
        interest to be paid on a direct loan made under this 
        section at a rate not less than that necessary to 
        recover the cost of making the loan.
          (2) Loan guarantees.--The Secretary shall not make a 
        loan guarantee under this section if the interest rate 
        for the loan exceeds that which the Secretary 
        determines to be reasonable, taking into consideration 
        the prevailing interest rates and customary fees 
        incurred under similar obligations in the private 
        capital market.
  (f) Infrastructure Partners.--
          (1) Authority of secretary.--In lieu of or in 
        combination with appropriations of budget authority to 
        cover the costs of direct loans and loan guarantees as 
        required under section 504(b)(1) of the Federal Credit 
        Reform Act of 1990, the Secretary may accept on behalf 
        of an applicant for assistance under this section a 
        commitment from a non-Federal source to fund in whole 
        or in part credit risk premiums with respect to the 
        loan that is the subject of the application. In no 
        event shall the aggregate of appropriations of budget 
        authority and credit risk premiums described in this 
        paragraph with respect to a direct loan or loan 
        guarantee be less than the cost of that direct loan or 
        loan guarantee.
          (2) Credit risk premium amount.--The Secretary shall 
        determine the amount required for credit risk premiums 
        under this subsection on the basis of--
                  (A) the circumstances of the applicant, 
                including the amount of collateral offered, if 
                any;
                  (B) the proposed schedule of loan 
                disbursements;
                  (C) historical data on the repayment history 
                of similar borrowers;
                  (D) consultation with the Congressional 
                Budget Office;
                  (E) the size and characteristics of the 
                cohort of which the loan or loan guarantee is a 
                member; and
                  (F) any other factors the Secretary considers 
                relevant.
          (3) Payment of premiums.--Credit risk premiums under 
        this subsection shall be paid to the Secretary before 
        the disbursement of loan amounts.
          (4) Cohorts of loans.--In order to maintain 
        sufficient balances of credit risk premiums to 
        adequately protect the Federal Government from risk of 
        default, while minimizing the length of time the 
        Government retains possession of those balances, the 
        Secretary shall establish cohorts of loans. When all 
        obligations attached to a cohort of loans have been 
        satisfied, credit risk premiums paid for the cohort, 
        and interest accrued thereon, which were not used to 
        mitigate losses shall be returned to the original 
        source on a pro rata basis. 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.
  (g) Prerequisites for Assistance.--The Secretary shall not 
make a direct loan or loan guarantee under this section unless 
the Secretary has made a finding in writing that--
          (1) repayment of the obligation is required to be 
        made within a term of not more than 35 years from the 
        date of its execution;
          (2) the direct loan or loan guarantee is justified by 
        the present and probable future demand for rail 
        services or intermodal facilities;
          (3) the applicant has given reasonable assurances 
        that the facilities or equipment to be acquired, 
        rehabilitated, improved, developed, or established with 
        the proceeds of the obligation will be economically and 
        efficiently utilized;
          (4) the obligation can reasonably be repaid, using an 
        appropriate combination of credit risk premiums and 
        collateral offered by the applicant to protect the 
        Federal Government; and
          (5) the purposes of the direct loan or loan guarantee 
        are consistent with subsection (b).
  (h) Conditions of Assistance.--(1) The Secretary shall, 
before granting assistance under this section, require the 
applicant to agree to such terms and conditions as are 
sufficient, in the judgment of the Secretary, to ensure that, 
as long as any principal or interest is due and payable on such 
obligation, the applicant, and any railroad or railroad partner 
for whose benefit the assistance is intended--
          (A) will not use any funds or assets from railroad or 
        intermodal operations for purposes not related to such 
        operations, if such use would impair the ability of the 
        applicant, railroad, or railroad partner to provide 
        rail or intermodal services in an efficient and 
        economic manner, or would adversely affect the ability 
        of the applicant, railroad, or railroad partner to 
        perform any obligation entered into by the applicant 
        under this section;
          (B) will, consistent with its capital resources, 
        maintain its capital program, equipment, facilities, 
        and operations on a continuing basis; and
          (C) will not make any discretionary dividend payments 
        that unreasonably conflict with the purposes stated in 
        subsection (b).
  [(2)] (2)(A) The Secretary shall not require an applicant for 
a direct loan or loan guarantee under this section to provide 
collateral. Any collateral provided or thereafter enhanced 
shall be valued as a going concern after giving effect to the 
present value of improvements contemplated by the completion 
and operation of the project. 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 may subordinate 
rights of the Secretary under any provision of title 49 or 
title 23 of the United States Code, to the rights of the 
Secretary under this section and section 503.
  (B) The Secretary shall, for purposes of making a finding 
under subsection (g)(4), accept the net present value on a 
future stream of State or local subsidy income or dedicated 
revenue as collateral offered to secure the loan.
  (3) The Secretary shall require recipients of direct loans or 
loan guarantees under this section to comply with--
          (A) the standards of section 24312 of title 49, 
        United States Code, as in effect on September 1, 2002, 
        with respect to the project in the same manner that the 
        National Railroad Passenger Corporation is required to 
        comply with such standards for construction work 
        financed under an agreement made under section 24308(a) 
        of that title; [and]
          (B) the protective arrangements established under 
        section 504 of this Act, with respect to employees 
        affected by actions taken in connection with the 
        project to be financed by the loan or loan 
        guarantee[.]; and
          (C) the requirements of section 24405(a) of title 49, 
        United States Code.
  (i) Time Limit for Approval or Disapproval.--[Not later than 
90 days after receiving]
          (1) In general._Not later than 90 days after an 
        application is determined pursuant to paragraph (2) to 
        be a complete application for a direct loan or loan 
        guarantee under this section, the Secretary shall 
        approve or disapprove the application. In order to 
        enable compliance with such time limit, the Office of 
        Management and Budget shall take any actions required 
        with respect to the application within such 90-day 
        period.
          (2) Completion of application.--The Secretary shall 
        establish procedures for making a determination, not 
        later than 45 days after submission of an application 
        under this section, whether the application is 
        complete. Such procedures shall--
                  (A) provide for a checklist of the required 
                components of a complete application;
                  (B) require the Secretary to provide to the 
                applicant a description of the specific 
                components of the application that remain 
                incomplete if an application is determined to 
                be incomplete; and
                  (C) permit reapplication without prejudice 
                for applications determined to be incomplete.
          (3) Independent financial analyst.--The Secretary 
        shall assign an independent financial analyst within 45 
        days of submittal of a complete application.
  (j) Repayment Schedules.--
          (1) In general.--The Secretary shall establish a 
        repayment schedule requiring payments to commence not 
        later than the sixth anniversary date of the original 
        loan disbursement.
          (2) Accrual.--Interest shall accrue as of the date of 
        disbursement, and shall be amortized over the remaining 
        term of the loan beginning at the time the payments 
        begin.
  (k) Report to Congress.--Not later than 1 year after the date 
of enactment of the Passenger Rail Reform and Investment Act of 
2015, and annually thereafter, the Secretary shall transmit to 
Congress a report on the program under this section that 
provides information on loans approved and disapproved by the 
Secretary during the previous year. Such report shall not 
disclose the identity of direct loan or loan guarantee 
recipients. The report shall describe--
          (1) the number of pre-application meetings with 
        potential applicants;
          (2) the number of applications received and 
        determined complete under subsection (i)(2), including 
        the requested loan amounts;
          (3) the dates of receipt of applications;
          (4) the dates applications were determined complete 
        under subsection (i)(2);
          (5) the number of applications determined incomplete 
        under subsection (i)(2);
          (6) the final decision dates for both approvals and 
        disapprovals of applications;
          (7) the number of applications withdrawn from 
        consideration; and
          (8) the annual loan portfolio asset quality.
  (l) Northeast Corridor Fast Forward.--
          (1) Purpose.--The Secretary, as part of the Railroad 
        Rehabilitation and Improvement Financing program, shall 
        provide direct loans and loan guarantees to eligible 
        entities described in subsection (a) for capital 
        projects to improve the Northeast Corridor (as used in 
        section 24911 of title 49, United States Code).
          (2) Collateral.--Loans made or guaranteed under this 
        subsection shall require collateral equal to the loan 
        amount requested.
          (3) Investment grade rating.--A direct loan or loan 
        guarantee shall be made under this subsection only if a 
        rating agency has assigned an investment grade rating 
        of BBB minus, Baa3, bbb minus, BBB (low), (or 
        equivalent) or higher to the project obligation. For 
        purposes of this paragraph, the term ``rating agency'' 
        means a credit rating agency registered with the 
        Securities and Exchange Commission as a nationally 
        recognized statistical rating organization (as that 
        term is defined in section 3(a) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78c(a))).
          (4) Inclusion in nec planning.--Loans and loan 
        guarantees made under this subsection shall be for 
        projects that are included in the most recent 5-year 
        budget and business plan prepared pursuant to section 
        24911(a) of title 49, United States Code.
          (5) Refinancing.--Loans made or guaranteed under this 
        subsection shall not be used for the refinancing of 
        outstanding debt incurred.
          (6) Cohort of loans.--Subsection (f)(4) shall not 
        apply to loans made or guaranteed under this 
        subsection.

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