49–006 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–629 

PASSENGER RAIL REFORM AND INVESTMENT ACT OF 

2014 

DECEMBER 1, 2014.—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. 5449] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Transportation and Infrastructure, to whom 

was referred the bill (H.R. 5449) to reauthorize Federal support for 

passenger rail programs, and for other purposes, having considered 

the same, report favorably thereon with amendments and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Purpose of Legislation ............................................................................................. 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 4 

Legislative History and Consideration .................................................................. 4 

Committee Votes ...................................................................................................... 4 

Committee Oversight Findings ............................................................................... 4 

New Budget Authority and Tax Expenditures ...................................................... 5 

Congressional Budget Office Cost Estimate .......................................................... 5 

Performance Goals and Objectives ......................................................................... 9 

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 .............................................................................. 10 

Applicability of Legislative Branch ........................................................................ 10 

Section-by-Section Analysis of Legislation ............................................................ 10 

Changes in Existing Law Made by the Bill, as Reported ..................................... 19 

The amendments (stated in terms of the page and line numbers 

of the introduced bill) are as follows: 

Page 45, after line 14, insert the following: 


emcdonald on DSK67QTVN1PROD with HEARING
2 

(4) in subsection (b), by striking ‘‘The Secretary of 

the Treasury, in consultation’’ and inserting ‘‘To the 

extent amounts are provided in advance in appropriations Acts, the Secretary of the Treasury, in consultation’’; 

(5) in subsection (d), by inserting ‘‘, to the extent 

provided in advance in appropriations Acts’’ after ‘‘as 

appropriate’’; 

Page 45, line 15, strike ‘‘(4)’’ and insert ‘‘(6)’’. 

Page 45, line 17, strike ‘‘(5)’’ and insert ‘‘(7)’’. 

PURPOSE OF LEGISLATION

H.R. 5449 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. 5449 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. 5449 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, DC, 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. 5449, the Passenger Rail Reform and Investment Act of 2014 (PRRIA), reforms 


emcdonald on DSK67QTVN1PROD with HEARING
3 

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 the National Railroad Passenger Corporation (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 revenues from 

operations of its three functions, or lines of business: (1) 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 200 

are Amtrak’s. These statistics underlie 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. 


emcdonald on DSK67QTVN1PROD with HEARING
4 

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 and programs that will help advance passenger rail as a solution for the 

nation’s transportation needs. 

HEARINGS

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. 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 Northeast 

Corridor (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 September 11, 2014, House Committee on Transportation and 

Infrastructure Chairman Bill Shuster and Ranking Member Nick 

Rahall and Subcommittee on Railroads, Pipelines, and Hazardous 

Materials Chairman Jeff Denham and Ranking Member Corrine 

Brown introduced H.R. 5449, the Passenger Rail Reform and Investment Act (PRRIA). On September 17, 2014, 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. 5449. 

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. 


emcdonald on DSK67QTVN1PROD with HEARING
5 

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. 5449 from the Director of the Congressional Budget Office: 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, November 24, 2014. 

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. 5449, the Passenger Rail 

Reform and Investment Act of 2014. 

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. 5449—Passenger Rail Reform and Investment Act of 2014 

Summary: CBO estimates that H.R. 5449 would authorize the appropriation of $5.8 billion over the 2015–2019 period for rail programs administered by Amtrak, states, and the Department of 

Transportation (DOT). That amount includes $4.0 billion for grants 

to Amtrak, $1.2 billion for grants to states for intercity rail 

projects, and $500 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 $5.5 billion over the 2015–2019 

period. 

Pay-as-you-go procedures do not apply to this legislation because 

it would not affect direct spending or revenues. 

H.R. 5449 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 ($76 million and $152 million in 2014, respectively, adjusted annually for inflation). 


emcdonald on DSK67QTVN1PROD with HEARING
6 

Estimated cost to the Federal Government: The estimated budgetary effect of H.R. 5449 is shown in the following table. The cost 

of this legislation falls within budget function 400 (transportation). 

By fiscal year, in millions of dollars— 

2015 2016 2017 2018 2019 2015– 

2019 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Capital and Operating Grants to Amtrak: 

Estimated Authorization Level ................................. 0 1,313 1,340 1,370 0 4,023 

Estimated Outlays ................................................... 0 1,086 1,263 1,363 273 3,985 

Cost to Renegotiate and Prepay Amtrak’s Nonfederal 

Debt: 

Estimated Authorization Level ................................. 0 125 125 125 125 500 

Estimated Outlays ................................................... 0 125 125 125 125 500 

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 .................................................. 0 24 24 25 0 73 

Estimated Outlays ................................................... 0 22 24 25 2 73 

Other Provisions: 

Estimated Authorization Level ................................. 0 2 2 1 0 5 

Estimated Outlays ................................................... 0 1 2 1 1 5 

Total Changes: 

Estimated Authorization Level ................................. 300 1,764 1,791 1,821 125 5,801 

Estimated Outlays ................................................... 30 1,384 1,639 1,784 671 5,508 

Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted by the end of calendar year 2014 and that the 

amounts authorized and estimated to be necessary will be appropriated each year. Spending is based on historical patterns of 

spending on rail programs. 

CAPITAL AND OPERATING GRANTS TO AMTRAK

H.R. 5449 would restructure the federal government’s funding 

support for Amtrak and would authorize the appropriation of about 

$4.0 billion for grants to Amtrak over the 2015–2018 period, CBO 

estimates. 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 2014 and (on an annualized 

basis as part of the Continuing Appropriations Resolution, 2015) 

for fiscal year 2015, for activities similar to those authorized in 

H.R. 5449. Assuming appropriation of the authorized amounts, 

CBO estimates enacting those provisions would cost $4.0 billion 

over the 2015–2019 period. As directed by the legislation, the specified authorization levels in H.R. 5449 for this activity have been reduced by $375 million to account for the cost to renegotiate and 

prepay a portion of Amtrak’s debt over the 2016–2018 period. 

RENEGOTIATION AND PREPAYMENT OF 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 


emcdonald on DSK67QTVN1PROD with HEARING
7 

portion of its debt-service costs—as it has since 2006—those prepayments would also reduce future costs to the federal government. Based on information from Amtrak, it has about $1 billion in 

nonfederal debt. However, based on information from the Department of the Treasury, not all of that debt could be favorably renegotiated to result in savings to both Amtrak and the federal government. 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 to both the federal government and to Amtrak. 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 implementing this provision would cost $500 million over the 

2015–2019 period. 

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 

Debt Service Grants. CBO estimates that $500 million would be 

authorized to be appropriated to prepay Amtrak’s debt over the 

2015–2019 period. The amounts authorized to be appropriated for 

Amtrak’s Capital and Debt Service Grants have been reduced by 

only $375 million, however, because those grants are authorized for 

three years under H.R. 5449. 

Over the next five years, CBO estimates that Amtrak’s debt-serv- ice 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 $500 million. If the federal government continues to support Amtrak’s Capital and Debt Service Grants, 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 2015–2018 period, the bill would authorize the appro- priation of about $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 the Continuing Appropriations Resolution, 2015. 

CBO estimates that spending for those grants would total $945 

million over the 2015–2019 period. 

AMTRAK INSPECTOR GENERAL

H.R. 5449 would authorize the appropriation of $96 million for 

the operations of the Amtrak Inspector General over the 2015–2018 

period. However, that office received an appropriation of $23 million (on an annualized basis) in the Continuing Appropriations Resolution, 2015, the same amount authorized for 2015 by H.R. 5449. 

Therefore, CBO estimates that implementing those provisions 

would have no effect in 2015 and would cost $73 million over the 

2016–2019 period. 


emcdonald on DSK67QTVN1PROD with HEARING
8 

OTHER PROVISIONS

H.R. 5449 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 2015–2019 period. 

Pay-As-You-Go considerations: None. 

Intergovernmental and private-sector impact: H.R. 5449 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 ($76 million and $152 million in 2014, respectively, adjusted annually for inflation). 

MANDATES THAT APPLY TO PUBLIC AND PRIVATE ENTITIES

H.R. 5449 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 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 about $945 million over the 2015–2019 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. 


emcdonald on DSK67QTVN1PROD with HEARING
9 

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 the 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. 5449 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(j) of H. Res. 5, 113th Cong. (2013), the 

Committee finds that no provision of H.R. 5449 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(k) of H. Res. 5, 113th Cong. (2013), the 

Committee estimates that enacting H.R. 5449 specifically directs 

the completion of a specific rule making within the meaning of section 551 of title 5, United States Code. Section 401 of H.R. 5449 

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 


emcdonald on DSK67QTVN1PROD with HEARING
10 

that H.R. 5449 does not preempt any state, local, or tribal law. 

H.R. 5449 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 2015 through 2018 to the 

Secretary of the Department of Transportation (Secretary) for the 

use of the National Railroad Passenger Corporation (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 

2015 through 2018 to the Secretary for the Office of Inspector General of Amtrak to conduct oversight of Amtrak’s operations and 

management. 


emcdonald on DSK67QTVN1PROD with HEARING
11 

Section 103. National Infrastructure Investments 

This section authorizes funds to be appropriated for fiscal years 

2015 through 2018 to the Secretary for capital grants for intercity 

passenger rail projects as authorized under Chapter 244 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 

Northeast Corridor 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 sections 209 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 


emcdonald on DSK67QTVN1PROD with HEARING
12 

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 24906. 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 200 daily Amtrak trains and nearly 

1,800 daily commuter and freight trains. The last rail reauthorization created the Northeast Corridor Infrastructure and Operations 

Advisory Commission (NEC Commission) to act as the regional 

body to coordinate activities, and also required states to start contributing funds to keep maintaining 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 


emcdonald on DSK67QTVN1PROD with HEARING
13 

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 taxpayer better understand and evaluate its returnon-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 the Passenger Rail Investment and Improvement Act of 2008 (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 


emcdonald on DSK67QTVN1PROD with HEARING
14 

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, and urges such states to take action to pay for such services. 

The section 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 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 

Throughout the 113th Congress, with other modes becoming 

more congested, private providers of passenger rail have expressed 

interest in developing new services. Indeed, several projects are underway for private companies to 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 provision, 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 here, 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 may only 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 concluVerDate Sep 11 2014 03:33 Dec 03, 2014 Jkt 049006 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\HR629.XXX HR629

emcdonald on DSK67QTVN1PROD with HEARING
15 

sion 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 

in 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 of 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 

must 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. 

This section 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 developmentrelated revenue streams, and pursue opportunities to better leverVerDate Sep 11 2014 03:33 Dec 03, 2014 Jkt 049006 PO 00000 Frm 00015 Fmt 6659 Sfmt 6602 E:\HR\OC\HR629.XXX HR629

emcdonald on DSK67QTVN1PROD with HEARING
16 

age 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. 

The Committee made technical changes to the bill that was ordered 

reported to address concerns raised by the Congressional Budget 

Office. These revisions were made pursuant to the unanimous consent agreement offered by the Chairman and agreed to by the Committee at the markup to permit the Chairman, after consultation 

with the Ranking Member, to strike or revise any provisions of any 

of the bills ordered reported that would cause the bill to be subject 

to a Budget Act or Rule 21 Cut-Go point of order. 

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. 


emcdonald on DSK67QTVN1PROD with HEARING
17 

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 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 Northeast Corridor, 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 


emcdonald on DSK67QTVN1PROD with HEARING
18 

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 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 


emcdonald on DSK67QTVN1PROD with HEARING
19 

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 

* * * * * * * 


emcdonald on DSK67QTVN1PROD with HEARING
20 

CHAPTER 221—LOCAL RAIL FREIGHT ASSISTANCE 

* * * * * * * 

§ 22106. Limitations on financial assistance 

(a) * * * 

(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 øinterest 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. 

* * * * * * * 

PART C—PASSENGER TRANSPORTATION 

* * * * * * * 

CHAPTER 241—GENERAL 

§ 24101. Findings, mission, and goals 

(a) * * * 

(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 øsubsection (d)¿ subsection (c). 

* * * * * * * 

§ 24102. Definitions 

In this part— 

(1) * * * 

* * * * * * * 

(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. 

ø(5)¿ (7) ‘‘national rail passenger transportation system’’ 

means— 

(A) * * * 

* * * * * * * 

ø(6)¿ (8) ‘‘Northeast Corridor’’ means Connecticut, Delaware, 

the District of Columbia, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, and Rhode Island. 

ø(7)¿ (9) ‘‘rail carrier’’ means a person, including a unit of 

State or local government, providing rail transportation for 

compensation. 

ø(8)¿ (10) ‘‘rate’’ means a rate, fare, or charge for rail transportation. 


emcdonald on DSK67QTVN1PROD with HEARING
21 

ø(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). 

* * * * * * * 

ø§ 24104. Authorization of appropriations 

ø(a) IN GENERAL.—There are authorized to be appropriated to 

the Secretary of Transportation— 

ø(1) $1,138,000,000 for fiscal year 1998; 

ø(2) $1,058,000,000 for fiscal year 1999; 

ø(3) $1,023,000,000 for fiscal year 2000; 

ø(4) $989,000,000 for fiscal year 2001; and 

ø(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. 

ø(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. 

ø(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: 

ø(i) $7,500,000 for the fiscal year ending September 30, 1993. 

ø(ii) $9,500,000 for the fiscal year ending September 30, 

1994. 

ø(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. 

ø(c) MANDATORY PAYMENTS.—(1) Not more than $150,000,000 for 

the fiscal year ending September 30, 1993, and amounts that may 


emcdonald on DSK67QTVN1PROD with HEARING
22 

be necessary for the fiscal year ending September 30, 1994, may be 

appropriated to the Secretary to pay— 

ø(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; 

ø(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 

ø(C) obligations of Amtrak due under section 3321 of the 

Code (26 U.S.C. 3321). 

ø(2) Amounts appropriated under this subsection are not a 

United States Government subsidy of Amtrak. 

ø(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: 

ø(1) 50 percent on October 1. 

ø(2) 25 percent on January 1. 

ø(3) 25 percent on April 1. 

ø(e) AVAILABILITY OF AMOUNTS AND EARLY APPROPRIATIONS.—(1) 

Amounts appropriated under this section remain available until expended. 

ø(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. 

ø(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. øPlan 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 budget and business plan. 

24321. Food and beverage reform. 

* * * * * * * 

§ 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 2014, Amtrak shall establish and maintain internal controls to ensure Amtrak’s costs and revenues are allocated to either the Northeast CorVerDate Sep 11 2014 03:33 Dec 03, 2014 Jkt 049006 PO 00000 Frm 00022 Fmt 6659 Sfmt 6603 E:\HR\OC\HR629.XXX HR629

emcdonald on DSK67QTVN1PROD with HEARING
23 

ridor 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. 

§ 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 2014, 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 


emcdonald on DSK67QTVN1PROD with HEARING
24 

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. 

§ 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 2014 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 

24906(a)(2)(E)(i)(I); 


emcdonald on DSK67QTVN1PROD with HEARING
25 

(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 

24906(a)(2)(E)(i), consistent with the planning process established under section 24906; 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 2014, 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 2014 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 

24906(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. 


emcdonald on DSK67QTVN1PROD with HEARING
26 

(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. 

§ 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 2014, 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 


emcdonald on DSK67QTVN1PROD with HEARING
27 

(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 24906 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 


emcdonald on DSK67QTVN1PROD with HEARING
28 

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. 

§ 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 2014, 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 2014 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 2014, 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 2014, and annually thereafter for 5 years, Amtrak shall transmit to the ComVerDate Sep 11 2014 03:33 Dec 03, 2014 Jkt 049006 PO 00000 Frm 00028 Fmt 6659 Sfmt 6603 E:\HR\OC\HR629.XXX HR629

emcdonald on DSK67QTVN1PROD with HEARING
29 

mittee 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. 

* * * * * * * 

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

(a) * * * 

* * * * * * * 

(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, transporVerDate Sep 11 2014 03:33 Dec 03, 2014 Jkt 049006 PO 00000 Frm 00029 Fmt 6659 Sfmt 6603 E:\HR\OC\HR629.XXX HR629

emcdonald on DSK67QTVN1PROD with HEARING
30 

tation 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. 

* * * * * * * 

§ 24405. Grant conditions 

(a) BUY AMERICA.—(1) * * * 

* * * * * * * 

(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) * * * 

(B) provide notice of such finding and an opportunity for 

public comment on such finding for a reasonable period of time 

not to exceed ø15 days¿ 30 days. 

* * * * * * * 

(12) Not later than 1 year after the date of enactment of the Passenger Rail Reform and Investment Act of 2014, 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. 

* * * * * * * 

§ 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. 


emcdonald on DSK67QTVN1PROD with HEARING
31 

(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 2014; 

(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 24906(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). 


emcdonald on DSK67QTVN1PROD with HEARING
32 

(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. 

* * * * * * * 

§ 24706. Discontinuance 

(a) NOTICE OF DISCONTINUANCE.—(1) Except as provided in subsection (b) of this section, at least 180 days before øa 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 øsection 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 øsection 24704 or¿ subsection (a)(1) 

during— 

(A) * * * 

* * * * * * * 

ø§ 24711. Alternate passenger rail service pilot program 

ø(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— 

ø(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; 

ø(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; 

ø(3) requires that each bid describe how the bidder would operate the route, what Amtrak passenger equipment would be 


emcdonald on DSK67QTVN1PROD with HEARING
33 

needed, if any, what sources of non-Federal funding the bidder 

would use, including any State subsidy, among other things; 

ø(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; 

ø(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— 

ø(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 

ø(B) an operating subsidy— 

ø(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; 

ø(ii) for any subsequent years at such level, adjusted 

for inflation; and 

ø(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. 

ø(b) ROUTE LIMITATIONS.—The Administration may not make the 

program available with respect to more than 2 Amtrak intercity 

passenger rail routes. 

ø(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— 

ø(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— 

ø(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 

ø(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; 

ø(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; 


emcdonald on DSK67QTVN1PROD with HEARING
34 

ø(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 

ø(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. 

ø(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). 

ø(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.¿ 

§ 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 2014, 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(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— 


emcdonald on DSK67QTVN1PROD with HEARING
35 

(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. 


emcdonald on DSK67QTVN1PROD with HEARING
36 

(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 2014, 

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 2014, or any subsequent appropriation for the 

same purposes, necessary to cover the operating subsidy described in 

subsection (a)(4)(B). 

§ 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 

2014, the Secretary of Transportation shall establish a StateSupported 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. 


emcdonald on DSK67QTVN1PROD with HEARING
37 

(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, 2015, 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 2015, 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, 2015, and monthly 

thereafter, Amtrak shall provide to each State that sponsors a Statesupported 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. 


emcdonald on DSK67QTVN1PROD with HEARING
38 

(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. 

* * * * * * * 

24906. Northeast Corridor planning. 

* * * * * * * 

§ 24906. 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 2014, 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; 


emcdonald on DSK67QTVN1PROD with HEARING
39 

(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. 


emcdonald on DSK67QTVN1PROD with HEARING
40 

(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; 

(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 2014, 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 

* * * * * * * 

TITLE II—AMTRAK REFORM AND 

OPERATIONAL IMPROVEMENTS 

* * * * * * * 


emcdonald on DSK67QTVN1PROD with HEARING
41 

øSEC. 204. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN. 

ø(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— 

ø(1) the first day of each fiscal year beginning after the date 

of enactment of this Act; or 

ø(2) the date that is 60 days after the date of enactment of 

an appropriations Act for the fiscal year, if later. 

ø(b) CONTENTS OF 5-YEAR FINANCIAL PLAN.—The 5-year financial 

plan for Amtrak shall include, at a minimum— 

ø(1) all projected revenues and expenditures for Amtrak, including governmental funding sources; 

ø(2) projected ridership levels for all Amtrak passenger operations; 

ø(3) revenue and expenditure forecasts for non-passenger operations; 

ø(4) capital funding requirements and expenditures necessary to maintain passenger service in order to accommodate 

predicted ridership levels and predicted sources of capital funding; 

ø(5) operational funding needs, if any, to maintain current 

and projected levels of passenger service, including State-supported routes and predicted funding sources; 

ø(6) projected capital and operating requirements, ridership, 

and revenue for any new passenger service operations or service expansions; 

ø(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; 

ø(8) estimates of long-term and short-term debt and associated principal and interest payments (both current and anticipated); 

ø(9) annual cash flow forecasts; 

ø(10) a statement describing methods of estimation and significant assumptions; 

ø(11) specific measures that demonstrate measurable improvement year over year in the financial results of Amtrak’s 

operations; 

ø(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; 

ø(13) prior fiscal year and projected specific costs and savings estimates resulting from reform initiatives; 

ø(14) prior fiscal year and projected labor productivity statistics on a route, business line, and corporate basis; 

ø(15) prior fiscal year and projected equipment reliability 

statistics; and 

ø(16) capital and operating expenditures for anticipated security needs. 


emcdonald on DSK67QTVN1PROD with HEARING
42 

ø(c) STANDARDS TO PROMOTE FINANCIAL STABILITY.—In meeting 

the requirements of subsection (b), Amtrak shall— 

ø(1) apply sound budgetary practices, including reducing 

costs and other expenditures, improving productivity, increasing revenues, or combinations of such practices; 

ø(2) use the categories specified in the financial accounting 

and reporting system developed under section 203 when preparing its 5-year financial plan; and 

ø(3) ensure that the plan is consistent with the authorizations of appropriations under title I of this division. 

ø(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 øas of the date of enactment of this 

Act. This authorization expires 2 years after the date of enactment 

of this Act.¿, to the extent provided in advance in appropriations 

Acts. 

(b) DEBT RESTRUCTURING.—øThe 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 øas 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. 

* * * * * * * 

(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 øby 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 


emcdonald on DSK67QTVN1PROD with HEARING
43 

amounts authorized øby 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 øas of the date of enactment of this Act¿; 

* * * * * * * 

øSEC. 206. ESTABLISHMENT OF GRANT PROCESS. 

ø(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. 

ø(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: 

ø(1) The Amtrak Operating account. 

ø(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. 

ø(c) REVIEW AND APPROVAL.— 

ø(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. 

ø(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. 

ø(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 


emcdonald on DSK67QTVN1PROD with HEARING
44 

remaining deficiencies and recommend a process for resolving 

the outstanding portions of the request.¿ 

* * * * * * * 

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

ø(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— 

ø(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; 

ø(2) connectivity of a route with other routes; 

ø(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; 

ø(4) Amtrak’s and other major intercity passenger rail service providers in other countries’ methodologies for determining 

intercity passenger rail routes and services; and 

ø(5) the views of the States and other interested parties. 

ø(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. 

ø(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 2014, 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— 


emcdonald on DSK67QTVN1PROD with HEARING
45 

(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 

2014, 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. 

* * * * * * * 

øSEC. 211. NORTHEAST CORRIDOR STATE-OF-GOOD-REPAIR PLAN. 

ø(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-goodrepair by the end of fiscal year 2018, consistent with the funding 

levels authorized in this division, and shall submit the plan to the 

Secretary. 

ø(b) REVIEW AND APPROVAL BY THE SECRETARY.— 

ø(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. 


emcdonald on DSK67QTVN1PROD with HEARING
46 

ø(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. 

ø(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. 

ø(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). 

ø(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. 

ø(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. 

ø(f) ELIGIBILITY OF EXPENDITURES.—The Federal share of expenditures for capital improvements under this section may not exceed 100 percent.¿ 

* * * * * * * 

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 ø24102(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. 

* * * * * * * 


emcdonald on DSK67QTVN1PROD with HEARING
47 

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. 

* * * * * * * 

(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 actionsø, and may establish a corporation, 

which may be owned or jointly-owned by Amtrak, participating 

States, or other entities, to perform these functions¿. 

* * * * * * * 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary $5,000,000 for fiscal year 2010, to 

remain available until expended, for grants to Amtrak and States 

participating in the Next Generation Corridor Train Equipment 

Pool Committee established under this section for the purpose of 

designing, developing specifications for, and initiating the procurement of an initial order of 1 or more types of standardized nextgeneration corridor train equipment øand establishing a jointlyowned 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) * * * 

* * * * * * * 

(c) PRIORITY PROJECTS.—In granting applications for direct loans 

or guaranteed loans under this section, the Secretary shall give priority to projects that— 


emcdonald on DSK67QTVN1PROD with HEARING
48 

(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; 

* * * * * * * 

(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. 

* * * * * * * 

(h) CONDITIONS OF ASSISTANCE.—(1) * * * 

ø(2) The Secretary¿ (2) 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. (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; øand¿ 

(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 guaranteeø.¿; and 

(C) the requirements of section 24405(a) of title 49, United 

States Code. 

(i) TIME LIMIT FOR APPROVAL OR øDISAPPROVAL.—¿ øNot later 

than 90 days after receiving¿ DISAPPROVAL.— 

(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 


emcdonald on DSK67QTVN1PROD with HEARING
49 

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. 

* * * * * * * 

(k) REPORT TO CONGRESS.—Not later than 1 year after the date 

of enactment of the Passenger Rail Reform and Investment Act of 

2014, 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 24906 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 


emcdonald on DSK67QTVN1PROD with HEARING
50 

‘‘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 24906(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. 

* * * * * * * 

Æ 


emcdonald on DSK67QTVN1PROD with HEARING