IB 

Union Calendar No. 206

108TH CONGRESS 

1ST SESSION H. R. 2571

[Report No. 108–278, Parts I and II] 

To provide for the financing of high-speed rail infrastructure, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2003

Mr. YOUNG of Alaska (for himself, Mr. OBERSTAR, Mr. QUINN, and Ms. 

CORRINE BROWN of Florida) 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 

SEPTEMBER 18, 2003

Reported from the Committee on Transportation and Infrastructure with an 

amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

SEPTEMBER 18, 2003

Referral to the Committee on Ways and Means extended for a period ending 

not later than October 3, 2003

OCTOBER 3, 2003

Referral to the Committee on Ways and Means extended for a period ending 

not later than October 31, 2003

OCTOBER 31, 2003

Referral to the Committee on Ways and Means extended for a period ending 

not later than November 7, 2003

NOVEMBER 6, 2003

Additional sponsors: Mr. HOUGHTON and Mr. SMITH of Michigan 
2

HR 2571 RH 

NOVEMBER 6, 2003

Reported from the Committee on Ways and Means with amendments, committed to the Committee of the Whole House on the State of the Union, 

and ordered to be printed 

[Omit the part struck through in boldface brackets and insert the part printed in boldface 

italic] 

A BILL

To provide for the financing of high-speed rail infrastructure, 

and for other purposes.

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 ‘‘Rail Infrastructure De5 velopment and Expansion Act for the 21st Century’’. 

6 øSEC. 2. HIGH-SPEED INTERCITY RAIL FACILITY BONDS. 

7 ø(a) AMENDMENT.—Chapter 261 of title 49, United 

8 States Code, is amended by adding at the end the fol9 lowing new section: 

10 ø‘‘§ 26106. High-speed rail infrastructure bonds 

11 ø‘‘(a) DESIGNATION.—The Secretary may designate 

12 bonds for purposes of subsection (f) or section 54 of the 

13 Internal Revenue Code of 1986 if—

14 ø‘‘(1) the bonds are to be issued by—

15 ø‘‘(A) a State, if the entire railroad pas16 senger transportation corridor containing the 
3

HR 2571 RH 

1 infrastructure project to be financed is within 

2 the State; 

3 ø‘‘(B) 1 or more of the States that have 

4 entered into an agreement or an interstate com5 pact consented to by Congress under section 

6 410(a) of Public Law 105–134 (49 U.S.C 

7 24101 nt); or 

8 ø‘‘(C) an agreement or an interstate com9 pact described in subparagraph (B); 

10 ø‘‘(2) the bonds are for the purpose of financ11 ing—

12 ø‘‘(A) projects that make a substantial 

13 contribution to providing the infrastructure and 

14 equipment required to complete a high-speed 

15 rail transportation corridor (including projects 

16 for the acquisition, financing, or refinancing of 

17 equipment and other capital improvements, in18 cluding the introduction of new high-speed tech19 nologies such as magnetic levitation systems, 

20 track or signal improvements, the elimination of 

21 grade crossings, development of intermodal fa22 cilities, improvement of train speeds or safety, 

23 or both, and station rehabilitation or construc24 tion), but only if the Secretary determines that 

25 the projects are part of a viable and comprehen-
4

HR 2571 RH 

1 sive high-speed rail transportation corridor de2 sign for intercity passenger service, including a 

3 design for minimally operable segments of a 

4 corridor designated under section 104(d)(2) of 

5 title 23, United States Code; or 

6 ø‘‘(B) projects for the Alaska Railroad; 

7 ø‘‘(3) for a railroad passenger transportation 

8 corridor design that includes the use of rights-of-way 

9 owned by a freight railroad, a written agreement ex10 ists between the applicant and the freight railroad 

11 regarding such use and ownership, including com12 pensation for such use and assurances regarding the 

13 adequacy of infrastructure capacity to accommodate 

14 both existing and future freight and passenger oper15 ations, and including an assurance by the freight 

16 railroad that collective bargaining agreements with 

17 the freight railroad’s employees (including terms 

18 regulating the contracting of work) shall remain in 

19 full force and effect according to their terms for 

20 work performed by the freight railroad on such rail21 road passenger transportation corridor; 

22 ø‘‘(4) the corridor design eliminates existing 

23 railway-highway grade crossings that the Secretary 

24 determines would impede high-speed rail operations; 

25 ø‘‘(5) the applicant agrees to comply with—
5

HR 2571 RH 

1 ø‘‘(A) the standards of section 24312, as 

2 in effect on September 1, 2002, with respect to 

3 the project in the same manner that the Na4 tional Railroad Passenger Corporation is re5 quired to comply with such standards for con6 struction work financed under an agreement 

7 made under section 24308(a); and 

8 ø‘‘(B) the protective arrangements estab9 lished under section 504 of the Railroad Revi10 talization and Regulatory Reform Act of 1976 

11 (45 U.S.C. 836) with respect to employees af12 fected by actions taken in connection with the 

13 project to be financed by the bond; and 

14 ø‘‘(6) the applicant agrees not to pay the prin15 cipal or interest on the bonds using funds derived di16 rectly or indirectly from the Highway Trust Fund, 

17 except as permitted by law as of the date of the en18 actment of this section. 

19 ø‘‘(b) BOND AMOUNT LIMITATION.—

20 ø‘‘(1) IN GENERAL.—The amount of bonds des21 ignated under this section may not exceed—

22 ø‘‘(A) in the case of subsection (f) bonds, 

23 $1,200,000,000 for each of the fiscal years 

24 2004 through 2013; and 
6

HR 2571 RH 

1 ø‘‘(B) in the case of section 54 bonds, 

2 $1,200,000,000 for each of the fiscal years 

3 2004 through 2013. 

4 ø‘‘(2) CARRYOVER OF UNUSED LIMITATION.—If 

5 for any fiscal year the limitation amount under sub6 paragraph (A) or (B) of paragraph (1) exceeds—

7 ø‘‘(A) with respect to subparagraph (A) of 

8 paragraph (1), the amount of subsection (f) 

9 bonds issued during such year; or 

10 ø‘‘(B) with respect to subparagraph (B) of 

11 paragraph (1), the amount of section 54 bonds 

12 issued during such year, 

13 the limitation amount under subparagraph (A) or 

14 (B) of paragraph (1), as the case may be, for the 

15 following fiscal year (through fiscal year 2017) shall 

16 be increased by the amount of such excess.

17 ø‘‘(c) PREFERENCE.—The Secretary shall give pref18 erence to the designation under this section of bonds for 

19 projects—

20 ø‘‘(1) to be funded through a combination of 

21 subsection (f) bonds and section 54 bonds; 

22 ø‘‘(2) which propose to link rail passenger serv23 ice with other modes of transportation; 

24 ø‘‘(3) expected to have a significant impact on 

25 air traffic congestion; 
7

HR 2571 RH 

1 ø‘‘(4) expected to also improve commuter rail 

2 operations; 

3 ø‘‘(5) where all environmental work has already 

4 been completed and the project is ready to com5 mence; or 

6 ø‘‘(6) that have received financial commitments 

7 and other support of State and local governments. 

8 ø‘‘(d) TIMELY DISPOSITION OF APPLICATION.—The 

9 Secretary shall grant or deny a requested designation 

10 within 9 months after receipt of an application. 

11 ø‘‘(e) ANNUAL REPORTS.—

12 ø‘‘(1) FROM ISSUER OF BONDS.—The issuer of 

13 bonds designated under subsection (a) shall report 

14 annually to the Secretary regarding the terms of 

15 outstanding designated bonds and the progress made 

16 with respect to the project financed by the bonds. 

17 ø‘‘(2) FROM SECRETARY.—The Secretary, in 

18 consultation with the Secretary of the Treasury, 

19 shall transmit to the Congress an annual report 

20 which includes—

21 ø‘‘(A) reports received under paragraph 

22 (1); and 

23 ø‘‘(B) an assessment of the progress made 

24 toward completion of high-speed rail transpor-
8

HR 2571 RH 

1 tation corridors resulting from projects financed 

2 by bonds designated under subsection (a). 

3 ø‘‘(f) TAX TREATMENT OF SUBSECTION (f) 

4 BONDS.—

5 ø‘‘(1) EXCLUSION FROM GROSS INCOME.—The 

6 interest on a bond designated by the Secretary 

7 under subsection (a) for purposes of this subsection 

8 shall be excluded from gross income under section 

9 103 of the Internal Revenue Code of 1986, notwith10 standing section 149(c) of such Code. 

11 ø‘‘(2) EXEMPTION FROM VOLUME CAP.—For 

12 purposes of section 146 of such Code, a bond des13 ignated by the Secretary under subsection (a) for 

14 purposes of this subsection shall be considered to be 

15 exempt from the volume cap of the issuing authority 

16 in the same manner as bonds listed in subsection (g) 

17 of such section 146. 

18 ø‘‘(g) REFINANCING RULES.—Bonds designated by 

19 the Secretary under subsection (a) may be issued for refi20 nancing projects only if the indebtedness being refinanced 

21 (including any obligation directly or indirectly refinanced 

22 by such indebtedness) was originally incurred by the 

23 issuer—

24 ø‘‘(1) after the date of the enactment of this 

25 section; 
9

HR 2571 RH 

1 ø‘‘(2) for a term of not more than 3 years; 

2 ø‘‘(3) to finance projects described in sub3 section (a)(2); and 

4 ø‘‘(4) in anticipation of being refinanced with 

5 proceeds of a bond designated under subsection (a). 

6 ø‘‘(h) PROVISIONS REGARDING HIGH-SPEED RAIL

7 SERVICE.—

8 ø‘‘(1) STATUS AS EMPLOYER OR CARRIER.—

9 Any entity providing railroad transportation (within 

10 the meaning of section 20102) that begins oper11 ations after the date of enactment of this section 

12 and that uses property acquired pursuant to this 

13 section (except as provided in subsection (a)(2)(B)), 

14 shall be considered an employer for purposes of the 

15 Railroad Retirement Act of 1974 (45 U.S.C. 231 et 

16 seq.) and considered a carrier for purposes of the 

17 Railway Labor Act (45 U.S.C. 151 et seq.).

18 ø‘‘(2) COLLECTIVE BARGAINING AGREEMENT.—

19 Any entity providing high-speed intercity passenger 

20 railroad transportation (within the meaning of sec21 tion 20102) that begins operations after the date of 

22 enactment of this section on a project funded in 

23 whole or in part by bonds designated under sub24 section (a), and replaces intercity rail passenger 

25 service that was provided by another entity as of the 
10

HR 2571 RH 

1 date of enactment of this section, shall enter into an 

2 agreement with the authorized bargaining agent or 

3 agents for employees of the predecessor provider 

4 that—

5 ø‘‘(A) gives each employee of the prede6 cessor provider priority in hiring according to 

7 the employee’s seniority on the predecessor pro8 vider for each position with the replacing entity 

9 that is in the employee’s craft or class and is 

10 available within three years after the termi11 nation of the service being replaced; 

12 ø‘‘(B) establishes a procedure for notifying 

13 such an employee of such positions; 

14 ø‘‘(C) establishes a procedure for such an 

15 employee to apply for such positions; and 

16 ø‘‘(D) establishes rates of pay, rules, and 

17 working conditions. 

18 ø‘‘(3) IMMEDIATE REPLACEMENT OF EXISTING

19 RAIL PASSENGER SERVICE.—

20 ø(A) NEGOTIATIONS.—If the replacement 

21 of preexisting intercity rail passenger service oc22 curs concurrent with or within a reasonable 

23 amount of time before the commencement of 

24 the replacing entity’s high-speed rail passenger 

25 service, the replacing entity shall give written 
11

HR 2571 RH 

1 notice of its plan to replace existing rail pas2 senger service to the authorized collective bar3 gaining agent or agents for the employees of 

4 the predecessor provider at least 90 days prior 

5 to the date it plans to commence service. With6 in 5 days after the date of receipt of such writ7 ten notice, negotiations between the replacing 

8 entity and the collective bargaining agent or 

9 agents for the employees of the predecessor pro10 vider shall commence for the purpose of reach11 ing agreement with respect to all matters set 

12 forth in paragraph (2)(A)–(D). The negotia13 tions shall continue for 30 days or until an 

14 agreement is reached, whichever is sooner. If at 

15 the end of 30 days the parties have not entered 

16 into an agreement with respect to all such mat17 ters, the unresolved issues shall be submitted 

18 for arbitration in accordance with the procedure 

19 set forth in subparagraph (B). 

20 ø‘‘(B) ARBITRATION.—If an agreement 

21 has not been entered into with respect to all 

22 matters set forth in paragraph (2)(A)–(D) as 

23 provided in subparagraph (A) of this para24 graph, the parties shall select an arbitrator. If 

25 the parties are unable to agree upon the selec-
12

HR 2571 RH 

1 tion of such arbitrator within 5 days, either or 

2 both parties shall notify the National Mediation 

3 Board, which shall provide a list of seven arbi4 trators with experience in arbitrating rail labor 

5 protection disputes. Within 5 days after such 

6 notification, the parties shall alternately strike 

7 names from the list until only one name re8 mains, and that person shall serve as the neu9 tral arbitrator. Within 45 days after selection of 

10 the arbitrator, the arbitrator shall conduct a 

11 hearing on the dispute and shall render a deci12 sion with respect to the unresolved issues set 

13 forth in paragraph (2)(A)–(D). This decision 

14 shall be final, binding, and conclusive upon the 

15 parties. The salary and expenses of the arbi16 trator shall be borne equally by the parties; all 

17 other expenses shall be paid by the party incur18 ring them. 

19 ø‘‘(C) SERVICE COMMENCEMENT.—A re20 placing entity under this paragraph shall com21 mence service only after an agreement is en22 tered into with respect to the matters set forth 

23 in paragraph (2)(A)–(D) or the decision of the 

24 arbitrator has been rendered. 
13

HR 2571 RH 

1 ø‘‘(4) SUBSEQUENT REPLACEMENT OF EXIST2 ING RAIL PASSENGER SERVICE.—If the replacement 

3 of existing rail passenger service takes place within 

4 3 years after the replacing entity commences high5 speed rail passenger service, the replacing entity and 

6 the collective bargaining agent or agents for the em7 ployees of the predecessor provider shall enter into 

8 an agreement with respect to the matters set forth 

9 in paragraph (2)(A)–(D). If the parties have not en10 tered into an agreement with respect to all such 

11 matters within 60 days after the date on which the 

12 replacing entity replaces the predecessor provider, 

13 the parties shall select an arbitrator using the proce14 dures set forth in paragraph (3)(B), who shall, with15 in 20 days after the commencement of the arbitra16 tion, conduct a hearing and decide all unresolved 

17 issues. This decision shall be final, binding, and con18 clusive upon the parties. 

19 ø‘‘(i) ISSUANCE OF REGULATIONS.—Not later than 

20 6 months after the date of the enactment of this section, 

21 the Secretary shall issue regulations for carrying out this 

22 section. 

23 ø‘‘(j) DEFINITIONS.—For purposes of this section—

24 ø‘‘(1) SUBSECTION (f) BOND.—The term ‘sub25 section (f) bond’ means a bond designated by the 
14

HR 2571 RH 

1 Secretary under subsection (a) for purposes of sub2 section (f). 

3 ø‘‘(2) SECTION 54 BOND.—The term ‘section 54 

4 bond’ means a bond designated by the Secretary 

5 under subsection (a) for purposes of section 54 of 

6 the Internal Revenue Code of 1986 (relating to cred7 it to holders of qualified high-speed rail infrastruc8 ture bonds).’’. 

9 ø(b) TABLE OF SECTIONS AMENDMENT.—The table 

10 of sections of chapter 261 of title 49, United States Code, 

11 is amended by adding after the item relating to section 

12 26105 the following new item:

ø‘‘26106. High-speed rail infrastructure bonds.’’.

13 øSEC. 3. TAX CREDIT TO HOLDERS OF QUALIFIED HIGH14 SPEED RAIL INFRASTRUCTURE BONDS. 

15 ø(a) IN GENERAL.—Part IV of subchapter A of 

16 chapter 1 of the Internal Revenue Code of 1986 (relating 

17 to credits against tax) is amended by adding at the end 

18 the following new subpart: 

19 ø‘‘Subpart H—Nonrefundable Credit for Holders of 

20 Qualified High-Speed Rail Infrastructure Bonds

ø‘‘Sec. 54. Credit to holders of qualified high-speed rail infrastructure bonds.
15

HR 2571 RH 

1 ø‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED HIGH2 SPEED RAIL INFRASTRUCTURE BONDS. 

3 ø‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax4 payer who holds a qualified high-speed rail infrastructure 

5 bond on a credit allowance date of such bond which occurs 

6 during the taxable year, there shall be allowed as a credit 

7 against the tax imposed by this chapter for such taxable 

8 year an amount equal to the sum of the credits determined 

9 under subsection (b) with respect to credit allowance dates 

10 during such year on which the taxpayer holds such bond. 

11 ø‘‘(b) AMOUNT OF CREDIT.—

12 ø‘‘(1) IN GENERAL.—The amount of the credit 

13 determined under this subsection with respect to any 

14 credit allowance date for a qualified high-speed rail 

15 infrastructure bond is 25 percent of the annual cred16 it determined with respect to such bond. 

17 ø‘‘(2) ANNUAL CREDIT.—The annual credit de18 termined with respect to any qualified high-speed 

19 rail infrastructure bond is the product of—

20 ø‘‘(A) the applicable credit rate, multiplied 

21 by 

22 ø‘‘(B) the outstanding face amount of the 

23 bond. 

24 ø‘‘(3) APPLICABLE CREDIT RATE.—For pur25 poses of paragraph (2), the applicable credit rate 

26 with respect to an issue is the rate equal to an aver-
16

HR 2571 RH 

1 age market yield (as of the day before the date of 

2 sale of the issue) on outstanding long-term corporate 

3 debt obligations (determined under regulations pre4 scribed by the Secretary). 

5 ø‘‘(4) CREDIT ALLOWANCE DATE.—For pur6 poses of this section, the term ‘credit allowance date’ 

7 means—

8 ø‘‘(A) March 15, 

9 ø‘‘(B) June 15, 

10 ø‘‘(C) September 15, and 

11 ø‘‘(D) December 15. 

12 Such term includes the last day on which the bond 

13 is outstanding. 

14 ø‘‘(5) SPECIAL RULE FOR ISSUANCE AND RE15 DEMPTION.—In the case of a bond which is issued 

16 during the 3-month period ending on a credit allow17 ance date, the amount of the credit determined 

18 under this subsection with respect to such credit al19 lowance date shall be a ratable portion of the credit 

20 otherwise determined based on the portion of the 3-

21 month period during which the bond is outstanding. 

22 A similar rule shall apply when the bond is re23 deemed. 

24 ø‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—
17

HR 2571 RH 

1 ø‘‘(1) IN GENERAL.—The credit allowed under 

2 subsection (a) for any taxable year shall not exceed 

3 the excess of—

4 ø‘‘(A) the sum of the regular tax liability 

5 (as defined in section 26(b)) plus the tax im6 posed by section 55, over 

7 ø‘‘(B) the sum of the credits allowable 

8 under this part (other than this subpart and 

9 subpart C). 

10 ø‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

11 credit allowable under subsection (a) exceeds the 

12 limitation imposed by paragraph (1) for such taxable 

13 year, such excess shall be carried to the succeeding 

14 taxable year and added to the credit allowable under 

15 subsection (a) for such taxable year. 

16 ø‘‘(d) CREDIT INCLUDED IN GROSS INCOME.—Gross 

17 income includes the amount of the credit allowed to the 

18 taxpayer under this section (determined without regard to 

19 subsection (c)) and the amount so included shall be treat20 ed as interest income. 

21 ø‘‘(e) QUALIFIED HIGH-SPEED RAIL INFRASTRUC22 TURE BOND.—For purposes of this part, the term ‘quali23 fied high-speed rail infrastructure bond’ means any bond 

24 issued as part of an issue if—
18

HR 2571 RH 

1 ø‘‘(1) the issuer certifies that the Secretary of 

2 Transportation has designated the bond for purposes 

3 of this section under section 26106(a) of title 49, 

4 United States Code, as in effect on the date of the 

5 enactment of this section, 

6 ø‘‘(2) 95 percent or more of the proceeds from 

7 the sale of such issue are to be used for expenditures 

8 incurred after the date of the enactment of this sec9 tion for any project described in section 26106(a)(2) 

10 of title 49, United States Code, 

11 ø‘‘(3) the term of each bond which is part of 

12 such issue does not exceed 20 years, 

13 ø‘‘(4) the payment of principal with respect to 

14 such bond is the obligation solely of the issuer, and 

15 ø‘‘(5) the issue meets the requirements of sub16 section (f) (relating to arbitrage). 

17 ø‘‘(f) SPECIAL RULES RELATING TO ARBITRAGE.—

18 ø‘‘(1) IN GENERAL.—Subject to paragraph (2), 

19 an issue shall be treated as meeting the require20 ments of this subsection if as of the date of 

21 issuance, the issuer reasonably expects—

22 ø‘‘(A) to spend at least 95 percent of the 

23 proceeds from the sale of the issue for 1 or 

24 more qualified projects within the 3-year period 

25 beginning on such date, 
19

HR 2571 RH 

1 ø‘‘(B) to incur a binding commitment with 

2 a third party to spend at least 10 percent of the 

3 proceeds from the sale of the issue, or to com4 mence construction, with respect to such 

5 projects within the 6-month period beginning on 

6 such date, and 

7 ø‘‘(C) to proceed with due diligence to 

8 complete such projects and to spend the pro9 ceeds from the sale of the issue. 

10 ø‘‘(2) RULES REGARDING CONTINUING COMPLI11 ANCE AFTER 3-YEAR DETERMINATION.—If at least 

12 95 percent of the proceeds from the sale of the issue 

13 is not expended for 1 or more qualified projects 

14 within the 3-year period beginning on the date of 

15 issuance, but the requirements of paragraph (1) are 

16 otherwise met, an issue shall be treated as con17 tinuing to meet the requirements of this subsection 

18 if either—

19 ø‘‘(A) the issuer uses all unspent proceeds 

20 from the sale of the issue to redeem bonds of 

21 the issue within 90 days after the end of such 

22 3-year period, or 

23 ø‘‘(B) the following requirements are met: 

24 ø‘‘(i) The issuer spends at least 75 

25 percent of the proceeds from the sale of 
20

HR 2571 RH 

1 the issue for 1 or more qualified projects 

2 within the 3-year period beginning on the 

3 date of issuance.

4 ø‘‘(ii) Either— 

5 ø‘‘(I) the issuer spends at least 

6 95 percent of the proceeds from the 

7 sale of the issue for 1 or more quali8 fied projects within the 4-year period 

9 beginning on the date of issuance, or 

10 ø‘‘(II) the issuer pays to the 

11 Federal Government any earnings on 

12 the proceeds from the sale of the issue 

13 that accrue after the end of the 3-year 

14 period beginning on the date of 

15 issuance and uses all unspent pro16 ceeds from the sale of the issue to re17 deem bonds of the issue within 90 

18 days after the end of the 4-year pe19 riod beginning on the date of 

20 issuance. 

21 ø‘‘(g) RECAPTURE OF PORTION OF CREDIT WHERE

22 CESSATION OF COMPLIANCE.—

23 ø‘‘(1) IN GENERAL.—If any bond which when 

24 issued purported to be a qualified high-speed rail in25 frastructure bond ceases to be such a qualified bond, 
21

HR 2571 RH 

1 the issuer shall pay to the United States (at the 

2 time required by the Secretary) an amount equal to 

3 the sum of—

4 ø‘‘(A) the aggregate of the credits allow5 able under this section with respect to such 

6 bond (determined without regard to subsection 

7 (c)) for taxable years ending during the cal8 endar year in which such cessation occurs and 

9 the 2 preceding calendar years, and 

10 ø‘‘(B) interest at the underpayment rate 

11 under section 6621 on the amount determined 

12 under subparagraph (A) for each calendar year 

13 for the period beginning on the first day of 

14 such calendar year. 

15 ø‘‘(2) FAILURE TO PAY.—If the issuer fails to 

16 timely pay the amount required by paragraph (1) 

17 with respect to such bond, the tax imposed by this 

18 chapter on each holder of any such bond which is 

19 part of such issue shall be increased (for the taxable 

20 year of the holder in which such cessation occurs) by 

21 the aggregate decrease in the credits allowed under 

22 this section to such holder for taxable years begin23 ning in such 3 calendar years which would have re24 sulted solely from denying any credit under this sec-
22

HR 2571 RH 

1 tion with respect to such issue for such taxable 

2 years. 

3 ø‘‘(3) SPECIAL RULES.—

4 ø‘‘(A) TAX BENEFIT RULE.—The tax for 

5 the taxable year shall be increased under para6 graph (2) only with respect to credits allowed 

7 by reason of this section which were used to re8 duce tax liability. In the case of credits not so 

9 used to reduce tax liability, the carryforwards 

10 and carrybacks under section 39 shall be appro11 priately adjusted. 

12 ø‘‘(B) NO CREDITS AGAINST TAX.—Any 

13 increase in tax under paragraph (2) shall not be 

14 treated as a tax imposed by this chapter for 

15 purposes of determining—

16 ø‘‘(i) the amount of any credit allow17 able under this part, or 

18 ø‘‘(ii) the amount of the tax imposed 

19 by section 55. 

20 ø‘‘(h) OTHER DEFINITIONS AND SPECIAL RULES.—

21 For purposes of this section—

22 ø‘‘(1) BOND.—The term ‘bond’ includes any 

23 obligation. 
23

HR 2571 RH 

1 ø‘‘(2) QUALIFIED PROJECT.—The term ‘quali2 fied project’ means any project described in section 

3 26106(a)(2) of title 49, United States Code. 

4 ø‘‘(3) TREATMENT OF CHANGES IN USE.—For 

5 purposes of subsection (e)(2), the proceeds from the 

6 sale of an issue shall not be treated as used for a 

7 qualified project to the extent that the issuer takes 

8 any action within its control which causes such pro9 ceeds not to be used for a qualified project. The Sec10 retary shall prescribe regulations specifying remedial 

11 actions that may be taken (including conditions to 

12 taking such remedial actions) to prevent an action 

13 described in the preceding sentence from causing a 

14 bond to fail to be a qualified high-speed rail infra15 structure bond. 

16 ø‘‘(4) PARTNERSHIP; S CORPORATION; AND

17 OTHER PASS-THRU ENTITIES.—Under regulations 

18 prescribed by the Secretary, in the case of a partner19 ship, trust, S corporation, or other pass-thru entity, 

20 rules similar to the rules of section 41(g) shall apply 

21 with respect to the credit allowable under subsection 

22 (a). 

23 ø‘‘(5) BONDS HELD BY REGULATED INVEST24 MENT COMPANIES.—If any qualified high-speed rail 

25 infrastructure bond is held by a regulated invest-
24

HR 2571 RH 

1 ment company, the credit determined under sub2 section (a) shall be allowed to shareholders of such 

3 company under procedures prescribed by the Sec4 retary. 

5 ø‘‘(6) REPORTING.—Issuers of qualified high6 speed rail infrastructure bonds shall submit reports 

7 similar to the reports required under section 

8 149(e).’’. 

9 ø(b) AMENDMENTS TO OTHER CODE SECTIONS.—

10 ø(1) REPORTING.—Subsection (d) of section 

11 6049 of the Internal Revenue Code of 1986 (relating 

12 to returns regarding payments of interest) is amend13 ed by adding at the end the following new para14 graph: 

15 ø‘‘(8) REPORTING OF CREDIT ON QUALIFIED

16 HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—

17 ø‘‘(A) IN GENERAL.—For purposes of sub18 section (a), the term ‘interest’ includes amounts 

19 includible in gross income under section 54(d) 

20 and such amounts shall be treated as paid on 

21 the credit allowance date (as defined in section 

22 54(b)(4)). 

23 ø‘‘(B) REPORTING TO CORPORATIONS, 

24 ETC.—Except as otherwise provided in regula25 tions, in the case of any interest described in 
25

HR 2571 RH 

1 subparagraph (A), subsection (b)(4) shall be 

2 applied without regard to subparagraphs (A), 

3 (H), (I), (J), (K), and (L)(i) of such subsection. 

4 ø‘‘(C) REGULATORY AUTHORITY.—The 

5 Secretary may prescribe such regulations as are 

6 necessary or appropriate to carry out the pur7 poses of this paragraph, including regulations 

8 which require more frequent or more detailed 

9 reporting.’’. 

10 ø(2) TREATMENT FOR ESTIMATED TAX PUR11 POSES.—

12 ø(A) INDIVIDUAL.—Section 6654 of such 

13 Code (relating to failure by individual to pay es14 timated income tax) is amended by redesig15 nating subsection (m) as subsection (n) and by 

16 inserting after subsection (l) the following new 

17 subsection: 

18 ø‘‘(m) SPECIAL RULE FOR HOLDERS OF QUALIFIED

19 HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—For pur20 poses of this section, the credit allowed by section 54 to 

21 a taxpayer by reason of holding a qualified high-speed rail 

22 infrastructure bond on a credit allowance date shall be 

23 treated as if it were a payment of estimated tax made by 

24 the taxpayer on such date.’’. 
26

HR 2571 RH 

1 ø(B) CORPORATE.—Section 6655 of such 

2 Code (relating to failure by corporation to pay 

3 estimated income tax) is amended by adding at 

4 the end of subsection (g) the following new 

5 paragraph: 

6 ø‘‘(5) SPECIAL RULE FOR HOLDERS OF QUALI7 FIED HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—

8 For purposes of this section, the credit allowed by 

9 section 54 to a taxpayer by reason of holding a 

10 qualified high-speed rail infrastructure bond on a 

11 credit allowance date shall be treated as if it were 

12 a payment of estimated tax made by the taxpayer on 

13 such date.’’. 

14 ø(c) CLERICAL AMENDMENTS.—

15 ø(1) The table of subparts for part IV of sub16 chapter A of chapter 1 is amended by adding at the 

17 end the following new item:

ø‘‘Subpart H. Nonrefundable Credit for Holders of Qualified Amtrak Bonds.’’.

18 ø(2) Section 6401(b)(1) is amended by striking 

19 ‘‘and G’’ and inserting ‘‘G, and H’’. 

20 ø(d) ISSUANCE OF REGULATIONS.—Not later than 6 

21 months after the date of the enactment of this section, 

22 the Secretary of the Treasury shall issue regulations for 

23 carrying out this section and the amendments made by 

24 this section. 
27

HR 2571 RH 

1 ø(e) HIGH-SPEED INTERCITY RAIL FACILITIES.—

2 ø(1) REQUIREMENT TO MEET TITLE 49 RE3 QUIREMENTS.—Section 142(i) of the Internal Rev4 enue Code of 1986 is amended by adding at the end 

5 the following new paragraph: 

6 ø‘‘(4) ADDITIONAL REQUIREMENTS.—A bond 

7 issued as part of an issue described in subsection 

8 (a)(11) shall not be considered an exempt facility 

9 bond unless the requirements of paragraphs (1) 

10 through (6) of section 26106(a) of title 49, United 

11 States Code, are met.’’. 

12 ø(2) REVISION OF SPEED REQUIREMENT.—Sec13 tion 142(i)(1) of such Code is amended by striking 

14 ‘‘150 miles per hour’’ and inserting ‘‘110 miles per 

15 hour’’. 

16 ø(f) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to obligations issued after the date 

18 of enactment of this Act.¿

19 SEC. ø4.¿ 2. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT. 

20 (a) CORRIDOR DEVELOPMENT.—

21 (1) AMENDMENTS.—Section 26101 of title 49, 

22 United States Code, is amended—

23 (A) in the section heading, by striking 

24 ‘‘planning’’ and inserting ‘‘development’’; 
28

HR 2571 RH 

1 (B) in the heading of subsection (a), by 

2 striking ‘‘PLANNING’’ and inserting ‘‘DEVELOP3 MENT’’;

4 (C) by striking ‘‘corridor planning’’ each 

5 place it appears and inserting ‘‘corridor devel6 opment’’; 

7 (D) in subsection (b)(1)—

8 (i) by inserting ‘‘, or if it is an activity 

9 described in subparagraph (M)’’ after 

10 ‘‘high-speed rail improvements’’; 

11 (ii) by striking ‘‘and’’ at the end of 

12 subparagraph (K); 

13 (iii) by striking the period at the end 

14 of subparagraph (L) and inserting ‘‘; and’’; 

15 and 

16 (iv) by adding at the end the following 

17 new subparagraph: 

18 ‘‘(M) the acquisition of locomotives, rolling 

19 stock, track, and signal equipment.’’; and

20 (E) in subsection (c)(2), by striking ‘‘plan21 ning’’ and inserting ‘‘development’’. 

22 (2) CONFORMING AMENDMENT.—The item re23 lating to section 26101 in the table of sections of 

24 chapter 261 of title 49, United States Code, is 
29

HR 2571 RH 

1 amended by striking ‘‘planning’’ and inserting ‘‘de2 velopment’’. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

4 26104 of title 49, United States Code, is amended to read 

5 as follows: 

6 ‘‘§ 26104. Authorization of appropriations 

7 ‘‘(a) FISCAL YEARS 2004 THROUGH 2011.—There 

8 are authorized to be appropriated to the Secretary—

9 ‘‘(1) $70,000,000 for carrying out section 

10 26101; and 

11 ‘‘(2) $30,000,000 for carrying out section 

12 26102, 

13 for each of the fiscal years 2004 through 2011. 

14 ‘‘(b) FUNDS TO REMAIN AVAILABLE.—Funds made 

15 available under this section shall remain available until ex16 pended.’’.

17 SEC. ø5.¿ 3. REHABILITATION AND IMPROVEMENT FINANC18 ING.

19 (a) DEFINITIONS.—Section 102(7) of the Railroad 

20 Revitalization and Regulatory Reform Act of 1976 (45 

21 U.S.C. 802(7)) is amended to read as follows: 

22 ‘‘(7) ‘railroad’ has the meaning given that term 

23 in section 20102 of title 49, United States Code; 

24 and’’. 
30

HR 2571 RH 

1 (b) GENERAL AUTHORITY.—Section 502(a) of the 

2 Railroad Revitalization and Regulatory Reform Act of 

3 1976 (45 U.S.C. 822(a)) is amended by striking ‘‘Sec4 retary may provide direct loans and loan guarantees to 

5 State and local governments,’’ and inserting ‘‘Secretary 

6 shall provide direct loans and loan guarantees to State and 

7 local governments, agreements or interstate compacts con8 sented to by Congress under section 410(a) of Public Law 

9 105–134 (49 U.S.C 24101 nt),’’. 

10 (c) EXTENT OF AUTHORITY.—Section 502(d) of the 

11 Railroad Revitalization and Regulatory Reform Act of 

12 1976 (45 U.S.C. 822(d)) is amended—

13 (1) by striking ‘‘$3,500,000,000’’ and inserting 

14 ‘‘$35,000,000,000’’; 

15 (2) by striking ‘‘$1,000,000,000’’ and inserting 

16 ‘‘$7,000,000,000’’; and 

17 (3) by adding at the end the following new sen18 tence: ‘‘The Secretary shall not establish any limit 

19 on the proportion of the unused amount authorized 

20 under this subsection that may be used for 1 loan 

21 or loan guarantee.’’. 

22 (d) COHORTS OF LOANS.—Section 502(f) of the Rail23 road Revitalization and Regulatory Reform Act of 1976 

24 (45 U.S.C. 822(f)) is amended—

25 (1) in paragraph (2)—
31

HR 2571 RH 

1 (A) by striking ‘‘and’’ at the end of sub2 paragraph (D); 

3 (B) by redesignating subparagraph (E) as 

4 subparagraph (F); and 

5 (C) by adding after subparagraph (D) the 

6 following new subparagraph: 

7 ‘‘(E) the size and characteristics of the co8 hort of which the loan or loan guarantee is a 

9 member; and’’; and 

10 (2) by adding at the end of paragraph (4) the 

11 following: ‘‘A cohort may include loans and loan 

12 guarantees. The Secretary shall not establish any 

13 limit on the proportion of a cohort that may be used 

14 for 1 loan or loan guarantee.’’. 

15 (e) CONDITIONS OF ASSISTANCE.—Section 502 of the 

16 Railroad Revitalization and Regulatory Reform Act of 

17 1976 (45 U.S.C. 822) is amended—

18 (1) in subsection (f)(2)(A), by inserting ‘‘, if 

19 any’’ after ‘‘collateral offered’’; and 

20 (2) by adding at the end of subsection (h) the 

21 following: 

22 ‘‘The Secretary shall not require an applicant for a direct 

23 loan or loan guarantee under this section to provide collat24 eral. The Secretary shall not require that an applicant for 

25 a direct loan or loan guarantee under this section have 
32

HR 2571 RH 

1 previously sought the financial assistance requested from 

2 another source. The Secretary shall require recipients of 

3 direct loans or loan guarantees under this section to apply 

4 the standards of section 26106(a)(5) of title 49, United 

5 States Code, to their projects.’’. 

6 (f) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—

7 Section 502 of the Railroad Revitalization and Regulatory 

8 Reform Act of 1976 (45 U.S.C. 822) is amended by add9 ing at the end the following new subsection: 

10 ‘‘(i) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—

11 Not later than 90 days after receiving a complete applica12 tion for a direct loan or loan guarantee under this section, 

13 the Secretary shall approve or disapprove the applica14 tion.’’. 

15 (g) FEES AND CHARGES.—Section 503 of the Rail16 road Revitalization and Regulatory Reform Act of 1976 

17 (45 U.S.C. 823) is amended by adding at the end the fol18 lowing new subsection: 

19 ‘‘(l) FEES AND CHARGES.—Except as provided in 

20 this title, the Secretary may not assess any fees, including 

21 user fees, or charges in connection with a direct loan or 

22 loan guarantee provided under section 502.’’. 

23 (h) SUBSTANTIVE CRITERIA AND STANDARDS.—Not 

24 later than 30 days after the date of the enactment of this 

25 Act, the Secretary of Transportation shall publish in the 
33

HR 2571 RH 

1 Federal Register and post on the Department of Trans2 portation web site the substantive criteria and standards 

3 used by the Secretary to determine whether to approve 

4 or disapprove applications submitted under section 502 of 

5 the Railroad Revitalization and Regulatory Reform Act of 

6 1976 (45 U.S.C. 822).

7 SECTION 1. SHORT TITLE. 

8 This Act may be cited as the ‘‘Rail Infrastructure De9 velopment and Expansion Act for the 21st Century’’. 

10 SEC. 2. HIGH-SPEED INTERCITY RAIL FACILITY BONDS. 

11 (a) AMENDMENT.—Chapter 261 of title 49, United 

12 States Code, is amended by adding at the end the following 

13 new section: 

14 ‘‘§ 26106. High-speed rail infrastructure bonds 

15 ‘‘(a) DESIGNATION.—The Secretary may designate 

16 bonds for purposes of subsection (f) or section 54 of the In17 ternal Revenue Code of 1986 if—

18 ‘‘(1) the bonds are to be issued by—

19 ‘‘(A) a State, if the entire railroad pas20 senger transportation corridor containing the in21 frastructure project to be financed is within the 

22 State; 

23 ‘‘(B) 1 or more of the States that have en24 tered into an agreement or an interstate compact 
34

HR 2571 RH 

1 consented to by Congress under section 410(a) of 

2 Public Law 105–134 (49 U.S.C 24101 nt); or 

3 ‘‘(C) an agreement or an interstate compact 

4 described in subparagraph (B); 

5 ‘‘(2) the bonds are for the purpose of financing—

6 ‘‘(A) projects that make a substantial con7 tribution to providing the infrastructure and 

8 equipment required to complete a high-speed rail 

9 transportation corridor (including projects for 

10 the acquisition, financing, or refinancing of 

11 equipment and other capital improvements, in12 cluding the introduction of new high-speed tech13 nologies such as magnetic levitation systems, 

14 track or signal improvements, the elimination of 

15 grade crossings, development of intermodal fa16 cilities, improvement of train speeds or safety, or 

17 both, and station rehabilitation or construction), 

18 but only if the Secretary determines that the 

19 projects are part of a viable and comprehensive 

20 high-speed rail transportation corridor design for 

21 intercity passenger service, including a design 

22 for minimally operable segments of a corridor 

23 designated under section 104(d)(2) of title 23, 

24 United States Code; or 

25 ‘‘(B) projects for the Alaska Railroad; 
35

HR 2571 RH 

1 ‘‘(3) for a railroad passenger transportation cor2 ridor design that includes the use of rights-of-way 

3 owned by a freight railroad, a written agreement ex4 ists between the applicant and the freight railroad re5 garding such use and ownership, including compensa6 tion for such use and assurances regarding the ade7 quacy of infrastructure capacity to accommodate both 

8 existing and future freight and passenger operations, 

9 and including an assurance by the freight railroad 

10 that collective bargaining agreements with the freight 

11 railroad’s employees (including terms regulating the 

12 contracting of work) shall remain in full force and ef13 fect according to their terms for work performed by 

14 the freight railroad on such railroad passenger trans15 portation corridor; 

16 ‘‘(4) the corridor design eliminates existing rail17 way-highway grade crossings that the Secretary deter18 mines would impede high-speed rail operations; 

19 ‘‘(5) the applicant agrees to comply with—

20 ‘‘(A) the standards of section 24312, as in 

21 effect on September 1, 2002, with respect to the 

22 project in the same manner that the National 

23 Railroad Passenger Corporation is required to 

24 comply with such standards for construction 
36

HR 2571 RH 

1 work financed under an agreement made under 

2 section 24308(a); and 

3 ‘‘(B) the protective arrangements established 

4 under section 504 of the Railroad Revitalization 

5 and Regulatory Reform Act of 1976 (45 U.S.C. 

6 836) with respect to employees affected by ac7 tions taken in connection with the project to be 

8 financed by the bond; and

9 ‘‘(6) the applicant agrees not to pay the prin10 cipal or interest on the bonds using funds derived di11 rectly or indirectly from the Highway Trust Fund, 

12 except as permitted by law as of the date of the enact13 ment of this section. 

14 ‘‘(b) BOND AMOUNT LIMITATION.—

15 ‘‘(1) IN GENERAL.—The amount of bonds des16 ignated under this section may not exceed—

17 ‘‘(A) in the case of subsection (f) bonds, 

18 $1,200,000,000 for each of the fiscal years 2004 

19 through 2013; and 

20 ‘‘(B) in the case of section 54 bonds, 

21 $1,200,000,000 for each of the fiscal years 2004 

22 through 2013. 

23 ‘‘(2) CARRYOVER OF UNUSED LIMITATION.—If 

24 for any fiscal year the limitation amount under sub25 paragraph (A) or (B) of paragraph (1) exceeds—
37

HR 2571 RH 

1 ‘‘(A) with respect to subparagraph (A) of 

2 paragraph (1), the amount of subsection (f) 

3 bonds issued during such year; or 

4 ‘‘(B) with respect to subparagraph (B) of 

5 paragraph (1), the amount of section 54 bonds 

6 issued during such year, 

7 the limitation amount under subparagraph (A) or 

8 (B) of paragraph (1), as the case may be, for the fol9 lowing fiscal year (through fiscal year 2017) shall be 

10 increased by the amount of such excess. 

11 ‘‘(c) PREFERENCE.—The Secretary shall give pref12 erence to the designation under this section of bonds for 

13 projects—

14 ‘‘(1) to be funded through a combination of sub15 section (f) bonds and section 54 bonds; 

16 ‘‘(2) which propose to link rail passenger service 

17 with other modes of transportation; 

18 ‘‘(3) expected to have a significant impact on air 

19 traffic congestion; 

20 ‘‘(4) expected to also improve commuter rail op21 erations; 

22 ‘‘(5) where all environmental work has already 

23 been completed and the project is ready to commence; 

24 or 
38

HR 2571 RH 

1 ‘‘(6) that have received financial commitments 

2 and other support of State and local governments. 

3 ‘‘(d) TIMELY DISPOSITION OF APPLICATION.—The 

4 Secretary shall grant or deny a requested designation with5 in 9 months after receipt of an application. 

6 ‘‘(e) ANNUAL REPORTS.—

7 ‘‘(1) FROM ISSUER OF BONDS.—The issuer of 

8 bonds designated under subsection (a) shall report an9 nually to the Secretary regarding the terms of out10 standing designated bonds and the progress made 

11 with respect to the project financed by the bonds. 

12 ‘‘(2) FROM SECRETARY.—The Secretary, in con13 sultation with the Secretary of the Treasury, shall 

14 transmit to the Congress an annual report which in15 cludes—

16 ‘‘(A) reports received under paragraph (1); 

17 and 

18 ‘‘(B) an assessment of the progress made to19 ward completion of high-speed rail transpor20 tation corridors resulting from projects financed 

21 by bonds designated under subsection (a). 

22 ‘‘(f) TAX TREATMENT OF SUBSECTION (f) BONDS.—

23 ‘‘(1) EXCLUSION FROM GROSS INCOME.—The in24 terest on a bond designated by the Secretary under 

25 subsection (a) for purposes of this subsection shall be 
39

HR 2571 RH 

1 excluded from gross income under section 103 of the 

2 Internal Revenue Code of 1986, notwithstanding sec3 tion 149(c) of such Code. 

4 ‘‘(2) EXEMPTION FROM VOLUME CAP.—For pur5 poses of section 146 of such Code, a bond designated 

6 by the Secretary under subsection (a) for purposes of 

7 this subsection shall be considered to be exempt from 

8 the volume cap of the issuing authority in the same 

9 manner as bonds listed in subsection (g) of such sec10 tion 146. 

11 ‘‘(g) REFINANCING RULES.—Bonds designated by the 

12 Secretary under subsection (a) may be issued for refi13 nancing projects only if the indebtedness being refinanced 

14 (including any obligation directly or indirectly refinanced 

15 by such indebtedness) was originally incurred by the 

16 issuer—

17 ‘‘(1) after the date of the enactment of this sec18 tion; 

19 ‘‘(2) for a term of not more than 3 years; 

20 ‘‘(3) to finance projects described in subsection 

21 (a)(2); and 

22 ‘‘(4) in anticipation of being refinanced with 

23 proceeds of a bond designated under subsection (a). 

24 ‘‘(h) PROVISIONS REGARDING HIGH-SPEED RAIL

25 SERVICE.—
40

HR 2571 RH 

1 ‘‘(1) STATUS AS EMPLOYER OR CARRIER.—Any 

2 entity providing railroad transportation (within the 

3 meaning of section 20102) that begins operations 

4 after the date of enactment of this section and that 

5 uses property acquired pursuant to this section (ex6 cept as provided in subsection (a)(2)(B)), shall be 

7 considered an employer for purposes of the Railroad 

8 Retirement Act of 1974 (45 U.S.C. 231 et seq.) and 

9 considered a carrier for purposes of the Railway 

10 Labor Act (45 U.S.C. 151 et seq.).

11 ‘‘(2) COLLECTIVE BARGAINING AGREEMENT.—

12 Any entity providing high-speed intercity passenger 

13 railroad transportation (within the meaning of sec14 tion 20102) that begins operations after the date of 

15 enactment of this section on a project funded in whole 

16 or in part by bonds designated under subsection (a), 

17 and replaces intercity rail passenger service that was 

18 provided by another entity as of the date of enactment 

19 of this section, shall enter into an agreement with the 

20 authorized bargaining agent or agents for employees 

21 of the predecessor provider that—

22 ‘‘(A) gives each employee of the predecessor 

23 provider priority in hiring according to the em24 ployee’s seniority on the predecessor provider for 

25 each position with the replacing entity that is in 
41

HR 2571 RH 

1 the employee’s craft or class and is available 

2 within three years after the termination of the 

3 service being replaced; 

4 ‘‘(B) establishes a procedure for notifying 

5 such an employee of such positions; 

6 ‘‘(C) establishes a procedure for such an em7 ployee to apply for such positions; and

8 ‘‘(D) establishes rates of pay, rules, and 

9 working conditions. 

10 ‘‘(3) IMMEDIATE REPLACEMENT OF EXISTING

11 RAIL PASSENGER SERVICE.—

12 ‘‘(A) NEGOTIATIONS.—If the replacement of 

13 preexisting intercity rail passenger service occurs 

14 concurrent with or within a reasonable amount 

15 of time before the commencement of the replacing 

16 entity’s high-speed rail passenger service, the re17 placing entity shall give written notice of its 

18 plan to replace existing rail passenger service to 

19 the authorized collective bargaining agent or 

20 agents for the employees of the predecessor pro21 vider at least 90 days prior to the date it plans 

22 to commence service. Within 5 days after the 

23 date of receipt of such written notice, negotia24 tions between the replacing entity and the collec25 tive bargaining agent or agents for the employees 
42

HR 2571 RH 

1 of the predecessor provider shall commence for 

2 the purpose of reaching agreement with respect 

3 to all matters set forth in paragraph (2)(A)–(D). 

4 The negotiations shall continue for 30 days or 

5 until an agreement is reached, whichever is soon6 er. If at the end of 30 days the parties have not 

7 entered into an agreement with respect to all 

8 such matters, the unresolved issues shall be sub9 mitted for arbitration in accordance with the 

10 procedure set forth in subparagraph (B). 

11 ‘‘(B) ARBITRATION.—If an agreement has 

12 not been entered into with respect to all matters 

13 set forth in paragraph (2)(A)–(D) as provided in 

14 subparagraph (A) of this paragraph, the parties 

15 shall select an arbitrator. If the parties are un16 able to agree upon the selection of such arbitrator 

17 within 5 days, either or both parties shall notify 

18 the National Mediation Board, which shall pro19 vide a list of seven arbitrators with experience in 

20 arbitrating rail labor protection disputes. Within 

21 5 days after such notification, the parties shall 

22 alternately strike names from the list until only 

23 one name remains, and that person shall serve as 

24 the neutral arbitrator. Within 45 days after se25 lection of the arbitrator, the arbitrator shall con-
43

HR 2571 RH 

1 duct a hearing on the dispute and shall render 

2 a decision with respect to the unresolved issues 

3 set forth in paragraph (2)(A)–(D). This decision 

4 shall be final, binding, and conclusive upon the 

5 parties. The salary and expenses of the arbi6 trator shall be borne equally by the parties; all 

7 other expenses shall be paid by the party incur8 ring them. 

9 ‘‘(C) SERVICE COMMENCEMENT.—A replac10 ing entity under this paragraph shall commence 

11 service only after an agreement is entered into 

12 with respect to the matters set forth in para13 graph (2)(A)–(D) or the decision of the arbi14 trator has been rendered. 

15 ‘‘(4) SUBSEQUENT REPLACEMENT OF EXISTING

16 RAIL PASSENGER SERVICE.—If the replacement of ex17 isting rail passenger service takes place within 3 

18 years after the replacing entity commences high-speed 

19 rail passenger service, the replacing entity and the 

20 collective bargaining agent or agents for the employees 

21 of the predecessor provider shall enter into an agree22 ment with respect to the matters set forth in para23 graph (2)(A)–(D). If the parties have not entered into 

24 an agreement with respect to all such matters within 

25 60 days after the date on which the replacing entity 
44

HR 2571 RH 

1 replaces the predecessor provider, the parties shall se2 lect an arbitrator using the procedures set forth in 

3 paragraph (3)(B), who shall, within 20 days after the 

4 commencement of the arbitration, conduct a hearing 

5 and decide all unresolved issues. This decision shall be 

6 final, binding, and conclusive upon the parties. 

7 ‘‘(i) ISSUANCE OF REGULATIONS.—Not later than 6 

8 months after the date of the enactment of this section, the 

9 Secretary shall issue regulations for carrying out this sec10 tion. 

11 ‘‘(j) DEFINITIONS.—For purposes of this section—

12 ‘‘(1) SUBSECTION (f) BOND.—The term ‘sub13 section (f) bond’ means a bond designated by the Sec14 retary under subsection (a) for purposes of subsection 

15 (f). 

16 ‘‘(2) SECTION 54 BOND.—The term ‘section 54 

17 bond’ means a bond designated by the Secretary 

18 under subsection (a) for purposes of section 54 of the 

19 Internal Revenue Code of 1986 (relating to credit to 

20 holders of qualified high-speed rail infrastructure 

21 bonds).’’. 

22 (b) TABLE OF SECTIONS AMENDMENT.—The table of 

23 sections of chapter 261 of title 49, United States Code, is 

24 amended by adding after the item relating to section 26105 

25 the following new item:

‘‘26106. High-speed rail infrastructure bonds.’’.
45

HR 2571 RH 

1 SEC. 3. TAX CREDIT TO HOLDERS OF QUALIFIED HIGH2 SPEED RAIL INFRASTRUCTURE BONDS. 

3 (a) IN GENERAL.—Part IV of subchapter A of chapter 

4 1 of the Internal Revenue Code of 1986 (relating to credits 

5 against tax) is amended by adding at the end the following 

6 new subpart: 

7 ‘‘Subpart H—Nonrefundable Credit for Holders of 

8 Qualified High-Speed Rail Infrastructure Bonds

‘‘Sec. 54. Credit to holders of qualified high-speed rail infrastructure bonds.

9 ‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED HIGH-SPEED 

10 RAIL INFRASTRUCTURE BONDS. 

11 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax12 payer who holds a qualified high-speed rail infrastructure 

13 bond on a credit allowance date of such bond which occurs 

14 during the taxable year, there shall be allowed as a credit 

15 against the tax imposed by this chapter for such taxable 

16 year an amount equal to the sum of the credits determined 

17 under subsection (b) with respect to credit allowance dates 

18 during such year on which the taxpayer holds such bond. 

19 ‘‘(b) AMOUNT OF CREDIT.—

20 ‘‘(1) IN GENERAL.—The amount of the credit de21 termined under this subsection with respect to any 

22 credit allowance date for a qualified high-speed rail 

23 infrastructure bond is 25 percent of the annual credit 

24 determined with respect to such bond. 
46

HR 2571 RH 

1 ‘‘(2) ANNUAL CREDIT.—The annual credit deter2 mined with respect to any qualified high-speed rail 

3 infrastructure bond is the product of—

4 ‘‘(A) the applicable credit rate, multiplied 

5 by

6 ‘‘(B) the outstanding face amount of the 

7 bond. 

8 ‘‘(3) APPLICABLE CREDIT RATE.—For purposes 

9 of paragraph (2), the applicable credit rate with re10 spect to an issue is the rate equal to an average mar11 ket yield (as of the day before the date of sale of the 

12 issue) on outstanding long-term corporate debt obliga13 tions (determined under regulations prescribed by the 

14 Secretary). 

15 ‘‘(4) CREDIT ALLOWANCE DATE.—For purposes 

16 of this section, the term ‘credit allowance date’ 

17 means—

18 ‘‘(A) March 15, 

19 ‘‘(B) June 15, 

20 ‘‘(C) September 15, and 

21 ‘‘(D) December 15. 

22 Such term includes the last day on which the bond is 

23 outstanding. 

24 ‘‘(5) SPECIAL RULE FOR ISSUANCE AND REDEMP25 TION.—In the case of a bond which is issued during 
47

HR 2571 RH 

1 the 3-month period ending on a credit allowance date, 

2 the amount of the credit determined under this sub3 section with respect to such credit allowance date 

4 shall be a ratable portion of the credit otherwise deter5 mined based on the portion of the 3-month period 

6 during which the bond is outstanding. A similar rule 

7 shall apply when the bond is redeemed. 

8 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—

9 ‘‘(1) IN GENERAL.—The credit allowed under 

10 subsection (a) for any taxable year shall not exceed 

11 the excess of—

12 ‘‘(A) the sum of the regular tax liability (as 

13 defined in section 26(b)) plus the tax imposed by 

14 section 55, over 

15 ‘‘(B) the sum of the credits allowable under 

16 this part (other than this subpart and subpart 

17 C). 

18 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

19 credit allowable under subsection (a) exceeds the limi20 tation imposed by paragraph (1) for such taxable 

21 year, such excess shall be carried to the succeeding 

22 taxable year and added to the credit allowable under 

23 subsection (a) for such taxable year. 

24 ‘‘(d) CREDIT INCLUDED IN GROSS INCOME.—Gross in25 come includes the amount of the credit allowed to the tax-
48

HR 2571 RH 

1 payer under this section (determined without regard to sub2 section (c)) and the amount so included shall be treated as 

3 interest income. 

4 ‘‘(e) QUALIFIED HIGH-SPEED RAIL INFRASTRUCTURE

5 BOND.—For purposes of this part, the term ‘qualified high6 speed rail infrastructure bond’ means any bond issued as 

7 part of an issue if—

8 ‘‘(1) the issuer certifies that the Secretary of 

9 Transportation has designated the bond for purposes 

10 of this section under section 26106(a) of title 49, 

11 United States Code, as in effect on the date of the en12 actment of this section, 

13 ‘‘(2) 95 percent or more of the proceeds from the 

14 sale of such issue are to be used for expenditures in15 curred after the date of the enactment of this section 

16 for any project described in section 26106(a)(2) of 

17 title 49, United States Code, 

18 ‘‘(3) the term of each bond which is part of such 

19 issue does not exceed 20 years, 

20 ‘‘(4) the payment of principal with respect to 

21 such bond is the obligation solely of the issuer, and 

22 ‘‘(5) the issue meets the requirements of sub23 section (f) (relating to arbitrage). 

24 ‘‘(f) SPECIAL RULES RELATING TO ARBITRAGE.—
49

HR 2571 RH 

1 ‘‘(1) IN GENERAL.—Subject to paragraph (2), an 

2 issue shall be treated as meeting the requirements of 

3 this subsection if as of the date of issuance, the issuer 

4 reasonably expects—

5 ‘‘(A) to spend at least 95 percent of the pro6 ceeds from the sale of the issue for 1 or more 

7 qualified projects within the 3-year period begin8 ning on such date, 

9 ‘‘(B) to incur a binding commitment with 

10 a third party to spend at least 10 percent of the 

11 proceeds from the sale of the issue, or to com12 mence construction, with respect to such projects 

13 within the 6-month period beginning on such 

14 date, and 

15 ‘‘(C) to proceed with due diligence to com16 plete such projects and to spend the proceeds 

17 from the sale of the issue. 

18 ‘‘(2) RULES REGARDING CONTINUING COMPLI19 ANCE AFTER 3-YEAR DETERMINATION.—If at least 95 

20 percent of the proceeds from the sale of the issue is not 

21 expended for 1 or more qualified projects within the 

22 3-year period beginning on the date of issuance, but 

23 the requirements of paragraph (1) are otherwise met, 

24 an issue shall be treated as continuing to meet the re25 quirements of this subsection if either—
50

HR 2571 RH 

1 ‘‘(A) the issuer uses all unspent proceeds 

2 from the sale of the issue to redeem bonds of the 

3 issue within 90 days after the end of such 3-year 

4 period, or 

5 ‘‘(B) the following requirements are met:

6 ‘‘(i) The issuer spends at least 75 per7 cent of the proceeds from the sale of the 

8 issue for 1 or more qualified projects within 

9 the 3-year period beginning on the date of 

10 issuance.

11 ‘‘(ii) Either— 

12 ‘‘(I) the issuer spends at least 95 

13 percent of the proceeds from the sale of 

14 the issue for 1 or more qualified 

15 projects within the 4-year period be16 ginning on the date of issuance, or 

17 ‘‘(II) the issuer pays to the Fed18 eral Government any earnings on the 

19 proceeds from the sale of the issue that 

20 accrue after the end of the 3-year pe21 riod beginning on the date of issuance 

22 and uses all unspent proceeds from the 

23 sale of the issue to redeem bonds of the 

24 issue within 90 days after the end of 
51

HR 2571 RH 

1 the 4-year period beginning on the date 

2 of issuance. 

3 ‘‘(g) RECAPTURE OF PORTION OF CREDIT WHERE

4 CESSATION OF COMPLIANCE.—

5 ‘‘(1) IN GENERAL.—If any bond which when 

6 issued purported to be a qualified high-speed rail in7 frastructure bond ceases to be such a qualified bond, 

8 the issuer shall pay to the United States (at the time 

9 required by the Secretary) an amount equal to the 

10 sum of—

11 ‘‘(A) the aggregate of the credits allowable 

12 under this section with respect to such bond (de13 termined without regard to subsection (c)) for 

14 taxable years ending during the calendar year in 

15 which such cessation occurs and the 2 preceding 

16 calendar years, and 

17 ‘‘(B) interest at the underpayment rate 

18 under section 6621 on the amount determined 

19 under subparagraph (A) for each calendar year 

20 for the period beginning on the first day of such 

21 calendar year. 

22 ‘‘(2) FAILURE TO PAY.—If the issuer fails to 

23 timely pay the amount required by paragraph (1) 

24 with respect to such bond, the tax imposed by this 

25 chapter on each holder of any such bond which is part 
52

HR 2571 RH 

1 of such issue shall be increased (for the taxable year 

2 of the holder in which such cessation occurs) by the 

3 aggregate decrease in the credits allowed under this 

4 section to such holder for taxable years beginning in 

5 such 3 calendar years which would have resulted sole6 ly from denying any credit under this section with re7 spect to such issue for such taxable years. 

8 ‘‘(3) SPECIAL RULES.—

9 ‘‘(A) TAX BENEFIT RULE.—The tax for the 

10 taxable year shall be increased under paragraph 

11 (2) only with respect to credits allowed by reason 

12 of this section which were used to reduce tax li13 ability. In the case of credits not so used to re14 duce tax liability, the carryforwards and 

15 carrybacks under section 39 shall be appro16 priately adjusted. 

17 ‘‘(B) NO CREDITS AGAINST TAX.—Any in18 crease in tax under paragraph (2) shall not be 

19 treated as a tax imposed by this chapter for pur20 poses of determining—

21 ‘‘(i) the amount of any credit allowable 

22 under this part, or 

23 ‘‘(ii) the amount of the tax imposed by 

24 section 55. 
53

HR 2571 RH 

1 ‘‘(h) OTHER DEFINITIONS AND SPECIAL RULES.—For 

2 purposes of this section—

3 ‘‘(1) BOND.—The term ‘bond’ includes any obli4 gation. 

5 ‘‘(2) QUALIFIED PROJECT.—The term ‘qualified 

6 project’ means any project described in section 

7 26106(a)(2) of title 49, United States Code. 

8 ‘‘(3) TREATMENT OF CHANGES IN USE.—For 

9 purposes of subsection (e)(2), the proceeds from the 

10 sale of an issue shall not be treated as used for a 

11 qualified project to the extent that the issuer takes 

12 any action within its control which causes such pro13 ceeds not to be used for a qualified project. The Sec14 retary shall prescribe regulations specifying remedial 

15 actions that may be taken (including conditions to 

16 taking such remedial actions) to prevent an action de17 scribed in the preceding sentence from causing a bond 

18 to fail to be a qualified high-speed rail infrastructure 

19 bond. 

20 ‘‘(4) PARTNERSHIP; S CORPORATION; AND OTHER

21 PASS-THRU ENTITIES.—Under regulations prescribed 

22 by the Secretary, in the case of a partnership, trust, 

23 S corporation, or other pass-thru entity, rules similar 

24 to the rules of section 41(g) shall apply with respect 

25 to the credit allowable under subsection (a). 
54

HR 2571 RH 

1 ‘‘(5) BONDS HELD BY REGULATED INVESTMENT

2 COMPANIES.—If any qualified high-speed rail infra3 structure bond is held by a regulated investment com4 pany, the credit determined under subsection (a) shall 

5 be allowed to shareholders of such company under 

6 procedures prescribed by the Secretary. 

7 ‘‘(6) REPORTING.—Issuers of qualified high8 speed rail infrastructure bonds shall submit reports 

9 similar to the reports required under section 149(e).’’. 

10 (b) AMENDMENTS TO OTHER CODE SECTIONS.—

11 (1) REPORTING.—Subsection (d) of section 6049 

12 of the Internal Revenue Code of 1986 (relating to re13 turns regarding payments of interest) is amended by 

14 adding at the end the following new paragraph: 

15 ‘‘(8) REPORTING OF CREDIT ON QUALIFIED

16 HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—

17 ‘‘(A) IN GENERAL.—For purposes of sub18 section (a), the term ‘interest’ includes amounts 

19 includible in gross income under section 54(d) 

20 and such amounts shall be treated as paid on the 

21 credit allowance date (as defined in section 

22 54(b)(4)). 

23 ‘‘(B) REPORTING TO CORPORATIONS, ETC.—

24 Except as otherwise provided in regulations, in 

25 the case of any interest described in subpara-
55

HR 2571 RH 

1 graph (A), subsection (b)(4) shall be applied 

2 without regard to subparagraphs (A), (H), (I), 

3 (J), (K), and (L)(i) of such subsection.

4 ‘‘(C) REGULATORY AUTHORITY.—The Sec5 retary may prescribe such regulations as are nec6 essary or appropriate to carry out the purposes 

7 of this paragraph, including regulations which 

8 require more frequent or more detailed report9 ing.’’. 

10 (2) TREATMENT FOR ESTIMATED TAX PUR11 POSES.—

12 (A) INDIVIDUAL.—Section 6654 of such 

13 Code (relating to failure by individual to pay es14 timated income tax) is amended by redesig15 nating subsection (m) as subsection (n) and by 

16 inserting after subsection (l) the following new 

17 subsection: 

18 ‘‘(m) SPECIAL RULE FOR HOLDERS OF QUALIFIED

19 HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—For pur20 poses of this section, the credit allowed by section 54 to a 

21 taxpayer by reason of holding a qualified high-speed rail 

22 infrastructure bond on a credit allowance date shall be 

23 treated as if it were a payment of estimated tax made by 

24 the taxpayer on such date.’’. 
56

HR 2571 RH 

1 (B) CORPORATE.—Section 6655 of such 

2 Code (relating to failure by corporation to pay 

3 estimated income tax) is amended by adding at 

4 the end of subsection (g) the following new para5 graph: 

6 ‘‘(5) SPECIAL RULE FOR HOLDERS OF QUALIFIED

7 HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—For 

8 purposes of this section, the credit allowed by section 

9 54 to a taxpayer by reason of holding a qualified 

10 high-speed rail infrastructure bond on a credit allow11 ance date shall be treated as if it were a payment of 

12 estimated tax made by the taxpayer on such date.’’. 

13 (c) CLERICAL AMENDMENTS.—

14 (1) The table of subparts for part IV of sub15 chapter A of chapter 1 is amended by adding at the 

16 end the following new item:

‘‘Subpart H. Nonrefundable Credit for Holders of Qualified HighSpeed Rail Infrastructure Bonds.’’.

17 (2) Section 6401(b)(1) of such Code is amended 

18 by striking ‘‘and G’’ and inserting ‘‘G, and H’’. 

19 (d) ISSUANCE OF REGULATIONS.—Not later than 6 

20 months after the date of the enactment of this section, the 

21 Secretary of the Treasury shall issue regulations for car22 rying out this section and the amendments made by this 

23 section. 

24 (e) HIGH-SPEED INTERCITY RAIL FACILITIES.—
57

HR 2571 RH 

1 (1) REQUIREMENT TO MEET TITLE 49 REQUIRE2 MENTS.—Section 142(i) of the Internal Revenue Code 

3 of 1986 is amended by adding at the end the fol4 lowing new paragraph: 

5 ‘‘(4) ADDITIONAL REQUIREMENTS.—A bond 

6 issued as part of an issue described in subsection 

7 (a)(11) shall not be considered an exempt facility 

8 bond unless the requirements of paragraphs (1) 

9 through (6) of section 26106(a) of title 49, United 

10 States Code, are met.’’. 

11 (2) REVISION OF SPEED REQUIREMENT.—Sec12 tion 142(i)(1) of such Code is amended by striking 

13 ‘‘150 miles per hour’’ and inserting ‘‘110 miles per 

14 hour’’. 

15 (f) EFFECTIVE DATE.—The amendments made by this 

16 section shall apply to obligations issued after the date of 

17 enactment of this Act. 

18 SEC. 4. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT. 

19 (a) CORRIDOR DEVELOPMENT.—

20 (1) AMENDMENTS.—Section 26101 of title 49, 

21 United States Code, is amended—

22 (A) in the section heading, by striking 

23 ‘‘planning’’ and inserting ‘‘development’’; 
58

HR 2571 RH 

1 (B) in the heading of subsection (a), by 

2 striking ‘‘PLANNING’’ and inserting ‘‘DEVELOP3 MENT’’;

4 (C) by striking ‘‘corridor planning’’ each 

5 place it appears and inserting ‘‘corridor develop6 ment’’; 

7 (D) in subsection (b)(1)—

8 (i) by inserting ‘‘, or if it is an activ9 ity described in subparagraph (M)’’ after 

10 ‘‘high-speed rail improvements’’; 

11 (ii) by striking ‘‘and’’ at the end of 

12 subparagraph (K); 

13 (iii) by striking the period at the end 

14 of subparagraph (L) and inserting ‘‘; and’’; 

15 and 

16 (iv) by adding at the end the following 

17 new subparagraph: 

18 ‘‘(M) the acquisition of locomotives, rolling stock, 

19 track, and signal equipment.’’; and 

20 (E) in subsection (c)(2), by striking ‘‘plan21 ning’’ and inserting ‘‘development’’. 

22 (2) CONFORMING AMENDMENT.—The item relat23 ing to section 26101 in the table of sections of chapter 

24 261 of title 49, United States Code, is amended by 

25 striking ‘‘planning’’ and inserting ‘‘development’’. 
59

HR 2571 RH 

1 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

2 26104 of title 49, United States Code, is amended to read 

3 as follows: 

4 ‘‘§ 26104. Authorization of appropriations 

5 ‘‘(a) FISCAL YEARS 2004 THROUGH 2011.—There are 

6 authorized to be appropriated to the Secretary—

7 ‘‘(1) $70,000,000 for carrying out section 26101; 

8 and 

9 ‘‘(2) $30,000,000 for carrying out section 26102, 

10 for each of the fiscal years 2004 through 2011. 

11 ‘‘(b) FUNDS TO REMAIN AVAILABLE.—Funds made 

12 available under this section shall remain available until ex13 pended.’’. 

14 SEC. 5. REHABILITATION AND IMPROVEMENT FINANCING. 

15 (a) DEFINITIONS.—Section 102(7) of the Railroad Re16 vitalization and Regulatory Reform Act of 1976 (45 U.S.C. 

17 802(7)) is amended to read as follows: 

18 ‘‘(7) ‘railroad’ has the meaning given that term 

19 in section 20102 of title 49, United States Code; 

20 and’’. 

21 (b) GENERAL AUTHORITY.—Section 502(a) of the 

22 Railroad Revitalization and Regulatory Reform Act of 

23 1976 (45 U.S.C. 822(a)) is amended by striking ‘‘Secretary 

24 may provide direct loans and loan guarantees to State and 

25 local governments,’’ and inserting ‘‘Secretary shall provide 
60

HR 2571 RH 

1 direct loans and loan guarantees to State and local govern2 ments, agreements or interstate compacts consented to by 

3 Congress under section 410(a) of Public Law 105–134 (49 

4 U.S.C 24101 nt),’’.

5 (c) EXTENT OF AUTHORITY.—Section 502(d) of the 

6 Railroad Revitalization and Regulatory Reform Act of 

7 1976 (45 U.S.C. 822(d)) is amended—

8 (1) by striking ‘‘$3,500,000,000’’ and inserting 

9 ‘‘$35,000,000,000’’; 

10 (2) by striking ‘‘$1,000,000,000’’ and inserting 

11 ‘‘$7,000,000,000’’; and 

12 (3) by adding at the end the following new sen13 tence: ‘‘The Secretary shall not establish any limit on 

14 the proportion of the unused amount authorized 

15 under this subsection that may be used for 1 loan or 

16 loan guarantee.’’. 

17 (d) COHORTS OF LOANS.—Section 502(f) of the Rail18 road Revitalization and Regulatory Reform Act of 1976 (45 

19 U.S.C. 822(f)) is amended—

20 (1) in paragraph (2)—

21 (A) by striking ‘‘and’’ at the end of sub22 paragraph (D); 

23 (B) by redesignating subparagraph (E) as 

24 subparagraph (F); and 
61

HR 2571 RH 

1 (C) by adding after subparagraph (D) the 

2 following new subparagraph: 

3 ‘‘(E) the size and characteristics of the co4 hort of which the loan or loan guarantee is a 

5 member; and’’; and 

6 (2) by adding at the end of paragraph (4) the 

7 following: ‘‘A cohort may include loans and loan 

8 guarantees. The Secretary shall not establish any 

9 limit on the proportion of a cohort that may be used 

10 for 1 loan or loan guarantee.’’. 

11 (e) CONDITIONS OF ASSISTANCE.—Section 502 of the 

12 Railroad Revitalization and Regulatory Reform Act of 

13 1976 (45 U.S.C. 822) is amended—

14 (1) in subsection (f)(2)(A), by inserting ‘‘, if 

15 any’’ after ‘‘collateral offered’’; and 

16 (2) by adding at the end of subsection (h) the fol17 lowing: 

18 ‘‘The Secretary shall not require an applicant for a direct 

19 loan or loan guarantee under this section to provide collat20 eral. The Secretary shall not require that an applicant for 

21 a direct loan or loan guarantee under this section have pre22 viously sought the financial assistance requested from an23 other source. The Secretary shall require recipients of direct 

24 loans or loan guarantees under this section to apply the 
62

HR 2571 RH 

1 standards of section 26106(a)(5) of title 49, United States 

2 Code, to their projects.’’. 

3 (f) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—

4 Section 502 of the Railroad Revitalization and Regulatory 

5 Reform Act of 1976 (45 U.S.C. 822) is amended by adding 

6 at the end the following new subsection: 

7 ‘‘(i) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—

8 Not later than 90 days after receiving a complete applica9 tion for a direct loan or loan guarantee under this section, 

10 the Secretary shall approve or disapprove the application.’’. 

11 (g) FEES AND CHARGES.—Section 503 of the Railroad 

12 Revitalization and Regulatory Reform Act of 1976 (45 

13 U.S.C. 823) is amended by adding at the end the following 

14 new subsection: 

15 ‘‘(l) FEES AND CHARGES.—Except as provided in this 

16 title, the Secretary may not assess any fees, including user 

17 fees, or charges in connection with a direct loan or loan 

18 guarantee provided under section 502.’’. 

19 (h) SUBSTANTIVE CRITERIA AND STANDARDS.—Not 

20 later than 30 days after the date of the enactment of this 

21 Act, the Secretary of Transportation shall publish in the 

22 Federal Register and post on the Department of Transpor23 tation web site the substantive criteria and standards used 

24 by the Secretary to determine whether to approve or dis25 approve applications submitted under section 502 of the 
63

HR 2571 RH 

1 Railroad Revitalization and Regulatory Reform Act of 

2 1976 (45 U.S.C. 822).
Union Calendar No. 206

108TH CONGRESS 

1ST SESSION H. R. 2571

[Report No. 108–278, Parts I and II] 

A BILL

To provide for the financing of high-speed rail 

infrastructure, and for other purposes. 

NOVEMBER 6, 2003

Reported from the Committee on Ways and Means with 

amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed