I 

108TH CONGRESS 

1ST SESSION H. R. 1617

To establish and provide for funding for a National Rail Infrastructure 

Program. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 3, 2003

Mr. LIPINSKI (for himself, Mr. NADLER, Mr. BLUMENAUER, Mr. FILNER, Ms. 

NORTON, Ms. CORRINE BROWN of Florida, Ms. MILLENDER-MCDONALD, 

Mr. COSTELLO, Mr. DEFAZIO, Mr. GUTIERREZ, Mr. DAVIS of Illinois, 

Ms. SCHAKOWSKY, Mr. MANZULLO, Mr. EMANUEL, Mr. FARR, Mr. 

KUCINICH, Ms. CARSON of Indiana, Mr. RUSH, Mr. JACKSON of Illinois, 

Mr. HOLDEN, Mr. SANDERS, Mr. FRANK of Massachusetts, Ms. BERKLEY, Mr. EVANS, Mr. BAIRD, and Mr. CUMMINGS) introduced the following bill; which was referred to the Committee on Transportation and 

Infrastructure, and in addition to the Committee on Ways and Means, 

for a period to be subsequently determined by the Speaker, in each case 

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

A BILL

To establish and provide for funding for a National Rail 

Infrastructure Program.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘National Rail Infra5 structure Program Act’’. 
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1 TITLE I—NATIONAL RAIL 

2 INFRASTRUCTURE PROGRAM 

3 SEC. 101. ESTABLISHMENT. 

4 The Secretary of Transportation shall establish a Na5 tional Rail Infrastructure Program to provide grants for 

6 projects that address railroad infrastructure and systems 

7 deficiencies in order to provide substantial public benefits 

8 such as mitigating highway traffic congestion, reducing 

9 transportation emissions, reducing energy used in trans10 portation, or improving the overall efficiency of railroad 

11 operations. 

12 SEC. 102. ELIGIBLE PROJECTS. 

13 (a) IN GENERAL.—Projects eligible for funding under 

14 this title shall include projects to maintain and increase 

15 track and intermodal yard capacity, to acquire rights-of16 way for future expansion, to separate railroad and road 

17 crossings and make other railroad and road interface im18 provements, to separate rail-to-rail crossings, to integrate 

19 railroad systems, and to construct, repair, and rehabilitate 

20 track and related supporting structures. 

21 (b) NONELIGIBLE PURPOSES.—Funding shall not be 

22 provided under this title for operating expenses, acquisi23 tion of rolling stock, payment of debt, or construction or 

24 repair of maintenance facilities, passenger facilities at sta25 tions, or other ancillary railroad business structures. 
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1 SEC. 103. INCLUSION IN STATE PLANS. 

2 A project shall not be funded under this title unless 

3 it is included in—

4 (1) a long-range transportation plan prepared 

5 under section 134(g) of title 23, United States Code; 

6 (2) a State plan developed under section 135 of 

7 title 23, United States Code; or 

8 (3) a transportation improvement program 

9 under section 5304 of title 49, United States Code. 

10 SEC. 104. COST SHARING. 

11 At least 20 percent of the costs of a project for which 

12 funding is provided under this title shall be provided by 

13 State, local, and other non-Federal public sources. 

14 SEC. 105. ALLOCATION OF FUNDS. 

15 (a) FORMULA AMOUNTS.—

16 (1) PERCENTAGE.—The Secretary of Transpor17 tation shall provide 80 percent of the amount avail18 able for grants under this title for each fiscal year 

19 to States according to the formula described in para20 graph (2), in grants for eligible projects in the 

21 States. 

22 (2) FORMULA.—Amounts described in para23 graph (1) shall be distributed among the States ac24 cording to a formula designed by the Secretary of 

25 Transportation to weigh equally for each State—

26 (A) the number of rail miles in the State; 
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1 (B) the number of rail cars loaded in the 

2 State; 

3 (C) the number of rail cars unloaded in the 

4 State; and 

5 (D) the number of railroad and public road 

6 grade crossings in the State. 

7 (b) SECRETARY’S DISCRETIONARY AMOUNTS.—The 

8 Secretary of Transportation shall use 20 percent of the 

9 amount available for grants under this title for each fiscal 

10 year to directly make grants for eligible projects of na11 tional significance, with emphasis on projects with the 

12 greatest public benefit. 

13 SEC. 106. LABOR STANDARDS. 

14 The Secretary of Transportation shall ensure that la15 borers and mechanics employed by contractors and sub16 contractors in construction work on projects funded under 

17 this title will be paid wages not less than those prevailing 

18 on similar construction in the locality, as determined by 

19 the Secretary of Labor under the Act of March 3, 1931 

20 (known as the Davis-Bacon Act) (40 U.S.C. 276a–276a–

21 5). 

22 SEC. 107. DISADVANTAGED BUSINESS ENTERPRISES. 

23 (a) GENERAL RULE.—Except to the extent that the 

24 Secretary of Transportation determines otherwise, not less 

25 than 10 percent of the amounts made available under this 
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1 Act shall be expended with small business concerns owned

2 and controlled by socially and economically disadvantaged 

3 individuals. 

4 (b) DEFINITIONS.—The terms used in this section 

5 have the meaning given those terms in section 1101(b)(2) 

6 of the Transportation Equity Act For the 21st Century 

7 (23 U.S.C. 101 note). 

8 SEC. 108. DEFINITIONS. 

9 For purposes of this title—

10 (1) the term ‘‘rail miles’’ means route miles, 

11 not track miles; and 

12 (2) the term ‘‘railroad’’ means freight, intercity 

13 passenger, and commuter rail transportation oper14 ated as part of the general system of rail transpor15 tation.

16 TITLE II—FUNDING 

17 SEC. 201. EXCISE TAX ON SALE OF CERTAIN TRAIN EQUIP18 MENT. 

19 (a) IN GENERAL.—Chapter 32 of the Internal Rev20 enue Code of 1986 (relating to manufacturers excise 

21 taxes) is amended by inserting after subchapter D the fol22 lowing new subchapter: 

23 ‘‘Subchapter E—Railroad Locomotives and 

24 Rolling Stock

‘‘Sec. 4191. Imposition of tax.
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1 ‘‘SEC. 4191. IMPOSITION OF TAX. 

2 ‘‘(a) IN GENERAL.—There is hereby imposed on the 

3 sale of any specified railroad equipment by the manufac4 turer, producer, or importer a tax equal to 5 percent of 

5 the price for which so sold. 

6 ‘‘(b) SPECIFIED RAILROAD EQUIPMENT.—For pur7 poses of this section, the term ‘specified railroad equip8 ment’ means—

9 ‘‘(1) any railroad locomotive, and 

10 ‘‘(2) any other railroad rolling stock. 

11 ‘‘(c) SEPARATE PURCHASE OF PARTS AND ACCES12 SORIES.—Under regulations prescribed by the Secretary—

13 ‘‘(1) IN GENERAL.—If—

14 ‘‘(A) the owner, lessee, or operator of any 

15 specified railroad equipment installs (or causes 

16 to be installed) any part or accessory on such 

17 equipment, and 

18 ‘‘(B) such installation is not later than the 

19 date 6 months after the date such equipment 

20 was first placed in service, 

21 then there is hereby imposed on such installation a 

22 tax equal to 5 percent of the price of such part or 

23 accessory and its installation. 

24 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

25 apply if the part or accessory installed is a replace26 ment part or accessory. 
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1 ‘‘(3) INSTALLERS SECONDARILY LIABLE FOR

2 TAX.—The owners of the trade or business installing 

3 the parts or accessories shall be secondarily liable 

4 for the tax imposed by paragraph (1).’’

5 (b) CLERICAL AMENDMENT.—The table of sub6 chapters for chapter 32 of such Code is amended by in7 serting after the item relating to subchapter D the fol8 lowing new item:

‘‘Subchapter E. Railroad locomotives and rolling stock.’’

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall take effect on October 1, 2003. 

11 SEC. 202. TAX ON RAIL TRANSPORTATION OF PERSONS OR 

12 PROPERTY. 

13 (a) IN GENERAL.—Chapter 33 of the Internal Rev14 enue Code of 1986 is amended by inserting before sub15 chapter B the following new subchapter: 

16 ‘‘Subchapter A—Transportation by Rail

‘‘Sec. 4241. Transportation of persons. 

‘‘Sec. 4242. Transportation of property. 

‘‘Sec. 4243. Definitions and special rules.

17 ‘‘SEC. 4241. TRANSPORTATION OF PERSONS. 

18 ‘‘(a) IN GENERAL.—There is hereby imposed on the 

19 amount paid for taxable rail transportation of any person 

20 a tax equal to—
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1 ‘‘(1) 5 percent of the amount so paid in the 

2 case of taxable rail transportation by commuter rail, 

3 and 

4 ‘‘(2) 10 percent of the amount so paid in any 

5 other case. 

6 (b) BY WHOM PAID.—The tax imposed by this sec7 tion shall be paid by the person making the payment sub8 ject to the tax. 

9 ‘‘SEC. 4242. TRANSPORTATION OF PROPERTY. 

10 ‘‘(a) IN GENERAL.—there is hereby imposed upon the 

11 amount paid within or without the United States for the 

12 taxable rail transportation of property a tax equal to 1 

13 percent of the amount so paid for such transportation. 

14 The tax imposed by this subsection shall apply only to 

15 amounts paid to a person engaged in the business of 

16 transporting property by rail for hire. 

17 ‘‘(b) BY WHOM PAID.—

18 ‘‘(1) IN GENERAL.—Except as provided by 

19 paragraph (2), the tax imposed by subsection (a) 

20 shall be paid by the person making the payment sub21 ject to tax. 

22 ‘‘(2) PAYMENTS MADE OUTSIDE THE UNITED

23 STATES.—If a payment subject to tax under sub24 section (a) is made outside the United States and
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1 the person making such payment does not pay such 

2 tax, such tax—

3 ‘‘(A) shall be paid by the person to whom 

4 the property is delivered in the United States 

5 by the person furnishing the last segment of the 

6 taxable transportation in respect of which such 

7 tax is imposed, and 

8 ‘‘(B) shall be collected by the person fur9 nishing the last segment of such taxable trans10 portation. 

11 ‘‘SEC. 4243. DEFINITIONS AND SPECIAL RULES. 

12 ‘‘(a) TAXABLE RAIL TRANSPORTATION.—For pur13 poses of this subchapter, the term ‘taxable rail transpor14 tation’ means transportation by rail within the United 

15 States, other than by mass transit. 

16 ‘‘(b) TRANSPORTATION.—For purposes of this sub17 chapter, the term ‘transportation’ includes layover or wait18 ing time and movement of the train in deadhead service. 

19 ‘‘(c) SPECIAL RULES.—

20 ‘‘(1) PAYMENTS MADE OUTSIDE THE UNITED

21 STATES FOR PREPAID ORDERS.—If the payment 

22 upon which tax is imposed by section 4241 is made 

23 outside the United States for a prepaid order, ex24 change order, or similar order, the person furnishing 
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1 the initial transportation pursuant to such order 

2 shall collect the amount of the tax. 

3 ‘‘(2) TAX DEDUCTED UPON REFUNDS.—Every 

4 person who refunds any amount with respect to a 

5 ticket or order which was purchased without pay6 ment of the tax imposed by section 4241 shall de7 duct from the amount refundable, to the extent 

8 available, any tax due under such section as a result 

9 of the use of a portion of the transportation pur10 chased in connection with such ticket or order, and 

11 shall report to the Secretary the amount of any such 

12 tax remaining uncollected. 

13 ‘‘(3) PAYMENT OF TAX.—Where any tax im14 posed by section 4241 is not paid at the time pay15 ment for transportation is made, then, under regula16 tions prescribed by the Secretary, to the extent that 

17 such tax is not collected under any other provision 

18 of this subchapter, such tax shall be paid by the car19 rier providing the initial segment of such transpor20 tation in the United States.’’

21 (b) CLERICAL AMENDMENT.—The table of sub22 chapters for chapter 33 of such Code is amended by in23 serting before the item relating to subchapter B the fol24 lowing new item:

‘‘Subchapter A. Transportation by rail.’’
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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on October 1, 2003. 

3 SEC. 203. NATIONAL RAIL INFRASTRUCTURE PROGRAM 

4 TRUST FUND. 

5 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

6 Internal Revenue Code of 1986 (relating to trust fund 

7 code) is amended by adding at the end the following new 

8 section: 

9 ‘‘SEC. 9511. NATIONAL RAIL INFRASTRUCTURE PROGRAM 

10 TRUST FUND. 

11 ‘‘(a) CREATION OF TRUST FUND.—There is estab12 lished in the Treasury of the United States a trust fund 

13 to be known as the ‘National Rail Infrastructure Program 

14 Trust Fund’, consisting of such amounts as may be appro15 priated or credited to such Trust Fund as provided in this 

16 section or section 9602(b). 

17 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here18 by appropriated to the National Rail Infrastructure Pro19 gram Trust Fund amounts equivalent to—

20 ‘‘(1) the taxes received in the Treasury under 

21 section 4191 (relating to taxes on railroad loco22 motives and rolling stock), 

23 ‘‘(2) 10 percent of all customs duties received 

24 in the Treasury after September 30, 2003, 
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1 ‘‘(3) the taxes received in the Treasury under 

2 section 4041 or 4081 to the extent attributable to 

3 fuel used in a train, and 

4 ‘‘(4) 10 percent of all royalties received by the 

5 United States attributable to the removal of oil or 

6 gas from Federal lands. 

7 ‘‘(c) EXPENDITURES.—Amounts in the National Rail 

8 Infrastructure Program Trust Fund shall be available, as 

9 provided in appropriation Acts, only for purposes of mak10 ing expenditures to carry out title I of the National Rail 

11 Infrastructure Program Act.’’

12 (b) CLERICAL AMENDMENT.—The table of sections 

13 for such subchapter is amended by adding at the end the 

14 following new item:

‘‘Sec. 9511. National Rail Infrastructure Program Trust Fund.’’

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