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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2992 Introduced in House (IH)]

109th CONGRESS
  1st Session
                                H. R. 2992

   To provide for the continued operation of Amtrak, to establish a 
 program for support of certain rail infrastructure projects, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 2005

      Mr. Menendez (for himself, Mr. Nadler, and Ms. Schwartz of 
Pennsylvania) 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 provide for the continued operation of Amtrak, to establish a 
 program for support of certain rail infrastructure projects, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``True Reinvestment 
for Amtrak Infrastructure in the 21st Century Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                            TITLE I--AMTRAK

Sec. 101. Findings amendments.
Sec. 102. Authorization of appropriations.
Sec. 103. Labor standards.
Sec. 104. Board of Directors.
Sec. 105. Redemption of common stock.
Sec. 106. Repeal of Amtrak Reform Council.
Sec. 107. Revolving credit.
                    TITLE II--RAIL SERVICE CORRIDORS

Sec. 201. Enhanced Rail Service Corridor Pilot Program.
Sec. 202. Additional projects.
Sec. 203. State rail plans.
Sec. 204. Additional high-speed rail corridors.
Sec. 205. High-speed rail corridor development.
           TITLE III--RAIL INFRASTRUCTURE FINANCE CORPORATION

Sec. 301. Establishment of Corporation.
Sec. 302. Board of Directors.
Sec. 303. Officers and employees.
Sec. 304. Nonprofit and nonpolitical nature of the Corporation.
Sec. 305. Purpose and activities of Corporation.
Sec. 306. Report to Congress.
Sec. 307. Administrative matters.
Sec. 308. Rail Infrastructure Finance Trust.
             TITLE IV--RAIL INFRASTRUCTURE TAX CREDIT BONDS

Sec. 401. Credit to holders of qualified rail infrastructure bonds.
Sec. 402. Issuance of regulations.
Sec. 403. Effective date.

                            TITLE I--AMTRAK

SEC. 101. FINDINGS AMENDMENTS.

    Section 24101(a) of title 49, United States Code, is amended--
            (1) by redesignating paragraph (8) as paragraph (10); and
            (2) by inserting after paragraph (7) the following new 
        paragraphs:
    ``(8) Where Amtrak currently owns the rights-of-way over which it 
operates, the cost complexities and risk inherent in separating 
operations from infrastructure outweigh the benefits.
    ``(9) The Federal Government, through Amtrak, is responsible for 
providing funding for capital and maintenance support for the valuable 
interstate transportation asset that the Northeast Corridor 
represents.''.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

    Section 24104 of title 49, United States Code, is amended to read 
as follows:
``Sec. 24104. Authorization of appropriations
    ``(a) In General.--There are authorized to be appropriated to the 
Secretary of Transportation $2,000,000,000 for each of the fiscal years 
2006 through 2011, for the benefit of Amtrak for capital expenditures 
under chapters 243, 247, and 249 of this title, operating expenses, and 
payments described in subsection (b).
    ``(b) Mandatory Payments.--
            ``(1) In general.--Funds authorized under subsection (a) 
        shall include--
                    ``(A) an amount equal to the amount Amtrak is 
                required to pay under section 3221 of the Internal 
                Revenue Code of 1986 (26 U.S.C. 3221) that is more than 
                the amount needed for anticipated benefits for 
                individuals who retire from Amtrak and for their 
                beneficiaries; and
                    ``(B) amounts necessary to pay--
                            ``(i) 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
                            ``(ii) obligations of Amtrak due under 
                        section 3321 of the Internal Revenue Code of 
                        1986 (26 U.S.C. 3321).
            ``(2) Request for transfer of funds.--The Secretary shall 
        make payments to the Treasury of amounts authorized under 
        paragraph (1) only after the Secretary has received from Amtrak 
        a request for the transfer of such funds, which shall include 
        materials supporting, to the satisfaction of the Secretary, the 
        amount of the request.
    ``(c) Contractual Obligations.--From amounts appropriated pursuant 
to this section, the Secretary and the Amtrak Board of Directors shall 
ensure that sufficient funds are reserved to satisfy Amtrak's 
contractual obligations for commuter and State-supported passenger rail 
service.
    ``(d) Annual Business Plan and Supplemental Reports.--
            ``(1) Business plan.--Not later than September 15 of each 
        of 2005, 2006, 2007, 2008, 2009, and 2010, Amtrak shall 
        transmit to the Secretary and the Congress a comprehensive 
        business plan for the subsequent fiscal year, including, as 
        applicable, targets for ridership, revenues, and capital and 
        operating expenses. The plan shall include the following:
                    ``(A) A separate accounting of such targets for 
                each of the following:
                            ``(i) Northeast Corridor.
                            ``(ii) Commuter service.
                            ``(iii) Long-distance Amtrak service.
                            ``(iv) State-supported service.
                            ``(v) Commercial activities (including 
                        contract operations and mail and express).
                The plan shall also include targets for each intercity 
                train route, including Autotrain.
                    ``(B) With respect to capital projects, a 
                description of the work to be funded, a work timetable, 
                cost estimates, and a list of other funding sources if 
                the project is not entirely funded by the Federal 
                Government.
            ``(2) Supplemental reports.--Not later than October 1, 
        2005, and once each alternate month thereafter, Amtrak shall 
        transmit to the Secretary and the Congress a supplemental 
        report regarding the business plan transmitted under paragraph 
        (1), which shall describe the work completed to date, any 
        changes to the business plan, and the reasons for such changes.
    ``(e) Availability of Amounts and Early Appropriations.--(1) 
Amounts appropriated under this section remain available until 
expended.
    ``(2) Amounts for capital acquisitions and improvements may be 
appropriated in a fiscal year before the fiscal year in which the 
amounts will be obligated.
    ``(f) Limitations on Use.--Amounts appropriated under this section 
may not be used to subsidize operating losses of commuter rail 
passenger or rail freight transportation.''.

SEC. 103. LABOR STANDARDS.

    (a) Current Employee Protections.--Nothing in this Act, or in any 
amendment made by this Act, shall affect the level of protection 
provided to freight railroad employees, employees of the National 
Passenger Railroad Corporation, and mass transportation employees as it 
existed on the day before the date of enactment of this Act.
    (b) Labor Standards.--
            (1) Prevailing wages.--The Secretary of Transportation--
                    (A) shall ensure that laborers and mechanics 
                employed by contractors and subcontractors in 
                construction work financed in whole or in part by funds 
                authorized by this Act or by any amendment made by this 
                Act will be paid wages not less than those prevailing 
                on similar construction in the locality, as determined 
                by the Secretary of Labor under the Act of March 3, 
                1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 
                seq.); and
                    (B) may make such funds available with respect to 
                construction work only after being assured that 
                required labor standards will be maintained on the 
                construction work.
            (2) Wage rates.--Wage rates in a collective bargaining 
        agreement negotiated under the Railway Labor Act (45 U.S.C. 151 
        et seq.) are deemed for purposes of this subsection to comply 
        with the Act of March 3, 1931 (known as the Davis-Bacon Act; 40 
        U.S.C. 276a et seq.).
            (3) Employee protection.--The Secretary of Transportation 
        shall require as a condition of any project financed in whole 
        or in part by funds authorized by this Act that the project be 
        conducted in a manner that provides a fair arrangement at least 
        as protective of the interests of employees who are affected by 
        the project so funded as the terms imposed under arrangements 
        reached under section 141 of the Amtrak Reform and 
        Accountability Act of 1997 (49 U.S.C. 24706 note).

SEC. 104. BOARD OF DIRECTORS.

    Section 24302 of title 49, United States Code, is amended--
            (1) in subsection (a)(2)(A)--
                    (A) by striking ``(A)(i)'' and inserting ``(A)'';
                    (B) by inserting ``, 6 of whom shall be'' after ``7 
                voting members'';
                    (C) by inserting ``or until their successors are 
                appointed, and the President of Amtrak, ex officio'' 
                after ``term of 5 years''; and
                    (D) by striking clause (ii);
            (2) in subsection (a)(2)(C)(iii), by striking ``6 of the 
        7'' and inserting ``5 of the 6''; and
            (3) by amending subparagraph (D) of subsection (a)(2) to 
        read as follows:
            ``(D) The President of Amtrak may appoint 2 additional 
        nonvoting members who are not current employees of Amtrak.''.

SEC. 105. REDEMPTION OF COMMON STOCK.

    (a) General Authority.--Section 24311(a)(1) of title 49, United 
States Code, is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(C) necessary to redeem its common stock outstanding as 
        of the date of enactment of this subparagraph.''.
    (b) Employee Stock Option Plans.--Section 24304 of title 49, United 
States Code, is amended by adding at the end the following: ``Amtrak 
may transfer to any such plan the stock redeemed from its common 
stockholders. Employees participating in such plans may elect one 
nonvoting member to Amtrak's Board of Directors.''.

SEC. 106. REPEAL OF AMTRAK REFORM COUNCIL.

    Sections 203, 204, and 205 of the Amtrak Reform and Accountability 
Act of 1997 (42 U.S.C. 24101 note), and the items relating thereto in 
the table of contents of that Act, are repealed.

SEC. 107. REVOLVING CREDIT.

    Amtrak is authorized to issue and sell up to $250,000,000 of 
obligations in the form of revolving loans and letters of credit to the 
Federal Financing Bank. The Secretary of Transportation shall guarantee 
100 percent of the principal and interest of such obligations. Such 
obligations shall--
            (1) have a final maturity date no later than 10 years after 
        the date of commitment;
            (2) with respect to revolving loans, shall be repaid by 
        Amtrak on an annual basis; and
            (3) with respect to letters of credit, shall be repaid on 
        commercially reasonable terms that are acceptable to the 
        Secretary of Transportation.

                    TITLE II--RAIL SERVICE CORRIDORS

SEC. 201. ENHANCED RAIL SERVICE CORRIDOR PILOT PROGRAM.

    (a) Establishment.--The Secretary of Transportation shall establish 
an Enhanced Rail Service Corridor Pilot Program to support rail 
infrastructure projects undertaken by States or multi-State compacts, 
using funding provided through the Rail Infrastructure Finance 
Corporation under title III.
    (b) Purposes.--The program established under subsection (a) shall 
be for the purpose of improving rail service along the rail corridors 
described in subsection (c), with respect to the following performance 
metrics:
            (1) Increasing the frequency of trains along a corridor.
            (2) Decreasing the travel time along a corridor.
            (3) Increasing overall ridership.
            (4) Increasing the overall amount of passenger-miles.
            (5) Increasing the ratio of operating revenue to operating 
        expenses.
    (c) Eligible Corridors.--Projects on the following 4 corridors are 
eligible under the pilot program established under this section:
            (1) Southeast Corridor--From the District of Columbia to 
        Jacksonville, Florida, via Richmond, Virginia, Raleigh, North 
        Carolina, Columbia, South Carolina, and Savannah, Georgia, with 
        branches from Raleigh, North Carolina, to Atlanta, Georgia, via 
        Charlotte, North Carolina, and Greenville, South Carolina, and 
        from Charlotte, North Carolina, to Charleston, South Carolina, 
        via Columbia, South Carolina.
            (2) Midwest Corridor--From Chicago, Illinois, to Detroit, 
        Michigan; Chicago, Illinois, to Minneapolis/St. Paul, 
        Minnesota, via Milwaukee, Wisconsin, and Madison, Wisconsin; 
        and Chicago, Illinois, to Kansas City, Missouri, via St. Louis, 
        Missouri.
            (3) California Corridor--From the San Francisco Bay Area to 
        San Diego via Santa Barbara and Los Angeles; from San Jose to 
        Auburn via Oakland and Sacramento; and from Oakland to 
        Bakersfield via Stockton.
            (4) Pacific Northwest Corridor--From Eugene, Oregon, to 
        Vancouver, British Columbia, via Portland, Oregon, and Seattle, 
        Washington.
    (d) Eligible Projects.--Only the following projects are eligible 
under the pilot program established under this section:
            (1) Planning, including activities described in section 
        26101(b)(1) of title 49, United States Code, and environmental 
        impact studies.
            (2) New rail line development, including right of way and 
        infrastructure acquisition and construction of track and 
        facilities.
            (3) Track upgrades and restoration.
            (4) Highway-rail grade crossing improvement or elimination.
            (5) Track, infrastructure, and facility relocation.
            (6) Acquisition, financing, or refinancing of locomotives 
        and rolling stock.
            (7) Intermodal and station facilities.
            (8) Tunnel and bridge repair or replacement.
            (9) Communications and signaling improvements.
            (10) Environmental impact mitigation.
            (11) Security improvements.
    (e) Approved Projects.--A project described in this section may 
receive assistance from the Rail Infrastructure Finance Corporation 
under title III only if the Secretary of Transportation has approved it 
under this subsection. The Secretary shall approve projects under this 
subsection only if all of the following conditions are met:
            (1) The Secretary has approved under section 22505 of title 
        49, United States Code, a State rail plan for the corridor.
            (2) A near-term (6-year) service plan is provided that 
        includes both a market/revenue forecast and an operating 
        expense forecast.
            (3) A near-term (6-year) investment plan is provided for 
        both infrastructure and equipment.
            (4) A signed agreement, with any owner of rail 
        infrastructure or right of way over which service under the 
        project will be operated, is provided that authorizes the State 
        or multi-State compact to proceed with the project.
            (5) Existence is established of firm funding commitments to 
        provide the 20 percent match for the Federal grant required 
        under section 305(a)(4).
            (6) The project meets all safety and environmental 
        requirements, including applicable requirements under the 
        National Environmental Policy Act of 1969.
            (7) Amtrak will be the sole operator of intercity passenger 
        rail service on the corridor.

SEC. 202. ADDITIONAL PROJECTS.

    (a) Authority.--The Secretary of Transportation, using funding 
provided through the Rail Infrastructure Finance Corporation under 
title III, shall, pursuant to the allocation percentages under section 
305(a)(5)(A), support additional rail infrastructure improvement 
projects--
            (1) on high-speed corridors identified under section 104(d) 
        of title 23, United States Code;
            (2) sponsored by States or multi-State compacts not at the 
        time of the award of assistance served by Amtrak;
            (3) sponsored by States or multi-State compacts served by 
        Amtrak but not eligible for assistance under section 201 of 
        this Act; and
            (4) on the Alaska Railroad.
    (b) Eligible Projects.--Only projects that are described in section 
201(d)(1) through (11) are eligible to receive support under this 
section.
    (c) Approved Projects.--A project described in this section may 
receive assistance from the Rail Infrastructure Finance Corporation 
under title III only if the Secretary of Transportation has approved it 
under this subsection. The Secretary shall approve projects under this 
subsection only if all of the following conditions are met:
            (1) With respect to projects under subsection (a)(1) or 
        (3)--
                    (A) a signed agreement, with any owner of rail 
                infrastructure or right of way over which service under 
                the project will be operated, is provided that 
                authorizes the State or multi-State compact to proceed 
                with the project;
                    (B) existence is established of firm funding 
                commitments to provide the 20 percent match for the 
                Federal grant required under section 305(a)(4);
                    (C) the project meets all safety and environmental 
                requirements, including applicable requirements under 
                the National Environmental Policy Act of 1969; and
                    (D) Amtrak will be the sole operator of intercity 
                passenger rail service on the corridor.
            (2) With respect to projects under subsection (a)(2) or 
        (4)--
                    (A) a signed agreement, with any owner of rail 
                infrastructure or right of way over which service under 
                the project will be operated, is provided that 
                authorizes the State or multi-State compact to proceed 
                with the project;
                    (B) existence is established of firm funding 
                commitments to provide the 20 percent match for the 
                Federal grant required under section 305(a)(4); and
                    (C) the project meets all safety and environmental 
                requirements, including applicable requirements under 
                the National Environmental Policy Act of 1969.

SEC. 203. STATE RAIL PLANS.

    (a) In General.--Part B of subtitle V of title 49, United States 
Code, is amended by adding at the end the following:

                    ``CHAPTER 225--STATE RAIL PLANS

``Sec.
``22501. Authority.
``22502. Purposes.
``22503. Transparency; coordination; review.
``22504. Content.
``22505. Approval.
``22506. Definitions.
``Sec. 22501. Authority
    ``(a) In General.--Each State may prepare and maintain a State rail 
plan in accordance with the provisions of this chapter.
    ``(b) Requirements.--For the preparation and periodic revision of a 
State rail plan, a State shall--
            ``(1) establish or designate a State rail transportation 
        authority to prepare, maintain, coordinate, and administer the 
        plan;
            ``(2) establish or designate a State rail plan approval 
        authority to approve the plan;
            ``(3) submit the State's approved plan to the Secretary of 
        Transportation for approval; and
            ``(4) revise and resubmit a State-approved plan no less 
        frequently than once every 5 years for reapproval by the 
        Secretary.
``Sec. 22502. Purposes
    ``(a) Purposes.--The purposes of a State rail plan are as follows:
            ``(1) To set forth State policy involving freight and 
        passenger rail transportation, including commuter rail 
        operations, in the State.
            ``(2) To establish the period covered by the State rail 
        plan.
            ``(3) To present priorities and strategies to preserve, 
        enhance, or expand rail service in the State that benefits the 
        public.
            ``(4) To serve as the basis for Federal and State rail 
        investments within the State.
    ``(b) Coordination.--A State rail plan shall be coordinated with 
other State transportation planning goals and programs and set forth 
rail transportation's role within the State transportation system.
``Sec. 22503. Transparency; coordination; review
    ``(a) Preparation.--A State shall provide adequate and reasonable 
notice and opportunity for comment and other input to the public, rail 
carriers, commuter and transit authorities operating in, or affected by 
rail operations within the State, units of local government, and other 
interested parties in the preparation and review of its State rail 
plan.
    ``(b) Intergovernmental Coordination.--A State shall review the 
freight and passenger rail service activities and initiatives by 
regional planning agencies, regional transportation authorities, and 
municipalities within the State, or in the region in which the State is 
located, while preparing the plan, and shall include any 
recommendations made by such agencies, authorities, and municipalities 
as deemed appropriate by the State.
    ``(c) Annual Reviews.--Each State shall transmit an annual report 
on its plan to the Secretary of Transportation. The report shall 
include, for the year preceding the year in which submitted, the 
following matters:
            ``(1) A review of progress made, and actions taken, under 
        the plan during the year, including an update on the budget, 
        schedule, and financing for each project on the freight or 
        passenger rail capital project list compiled under section 
        22504(a).
            ``(2) Any modifications made in the plan after approval of 
        the plan by the Secretary or after the submission of the most 
        recent annual report on the plan to the Secretary, including 
        any modifications made to the priority freight or passenger 
        rail capital list required by section 22504(b).
    ``(d) Approval of Modified Plans.--Modifications of a State rail 
plan that are determined substantive by the Secretary, including any 
modification to a priority freight or passenger rail capital project 
list required by section 22504(b), is subject to approval (for the 
purposes of this chapter) by the Secretary.
``Sec. 22504. Content
    ``(a) In General.--Each State rail plan shall contain the 
following:
            ``(1) An evaluation of the existing overall rail 
        transportation system and rail services and facilities within 
        the State, a prioritization of such services and facilities in 
        terms of their contributions to the State's rail and 
        transportation system.
            ``(2) A comprehensive review of all rail lines within the 
        State, including proposed high speed rail corridors and 
        significant rail line segments not currently in service, 
        containing an overview of the transportation services provided 
        by those lines, their ownership, operating characteristics, and 
        the general state of their infrastructure.
            ``(3) A statement of the State's freight and passenger rail 
        service objectives, including minimum service levels, for rail 
        transportation routes in the State.
            ``(4) A general analysis of rail's transportation, 
        economic, and environmental impacts in the State, including 
        congestion mitigation, trade and economic development, air 
        quality, land-use, energy-use, and community impacts.
            ``(5) A long-range rail service and investment program for 
        current and future freight and passenger services in the State 
        that meets the requirements of subsection (b).
            ``(6) A statement of public financing issues for rail 
        projects and service in the State, including a list of current 
        and prospective capital and operating funding resources, public 
        subsidies, State taxation, and other financial policies 
        relating to rail service and rail infrastructure development.
            ``(7) A statement of rail service issues within the State, 
        such as congestion and capacity, and current system 
        deficiencies on a regional, intrastate, and interstate basis, 
        that reflects consultation with neighboring States and 
        describes any coordination of regional rail service.
            ``(8) A review of major passenger and freight intermodal 
        rail connections and facilities within the State, including 
        seaports, and prioritized options to maximize service 
        integration and efficiency between rail and other modes of 
        transportation within the State.
            ``(9) A description of new technology that relates to rail 
        transportation within the State, including logistics and 
        process improvements.
            ``(10) A review of publicly funded projects within the 
        State to improve rail transportation safety and security, 
        including all major projects funded under section 130 of title 
        23.
            ``(11) A performance evaluation of passenger rail services 
        operating in the State, including possible improvements in 
        those services, and a description of strategies to achieve 
        those improvements.
            ``(12) A compilation of studies and reports on high-speed 
        rail corridor development within the State not included in a 
        previous plan under this chapter, and a plan for funding any 
        recommended development of such corridors in the State.
            ``(13) A statement that the State is in compliance with the 
        requirements of section 22102.
    ``(b) Long-Range Service and Investment Program.--
            ``(1) Program content.--A long-range rail service and 
        investment program included in a State rail plan under 
        subsection (a)(5) shall include the following matters:
                    ``(A) Two ranked lists for rail capital projects, 1 
                for freight rail capital projects and 1 for intercity 
                passenger rail capital projects.
                    ``(B) A detailed funding plan for the projects.
            ``(2) Project list content.--The ranked list of freight and 
        intercity passenger rail capital projects shall contain--
                    ``(A) a description of the anticipated public and 
                private benefits of each such project; and
                    ``(B) a statement of the correlation between--
                            ``(i) public funding contributions for the 
                        projects; and
                            ``(ii) the public benefits.
            ``(3) Considerations for project list.--In preparing the 
        ranked list of freight and intercity passenger rail capital 
        projects, a State rail transportation authority shall take into 
        consideration the following matters:
                    ``(A) Contributions made by non-Federal and non-
                State sources through user fees, matching funds, or 
                other private capital involvement.
                    ``(B) Rail capacity and congestion effects.
                    ``(C) Effects to highway, aviation, and maritime 
                capacity, congestion, or safety.
                    ``(D) Regional balance.
                    ``(E) Environmental impact.
                    ``(F) Competitive and service impacts for rail 
                carriers and shippers.
                    ``(G) Preservation of rail service.
                    ``(H) Economic and employment impacts.
                    ``(I) Projected ridership and other service 
                measures for passenger rail projects.
    ``(c) Waiver.--The Secretary may waive any requirement of 
subsection (a) upon application under circumstances that the Secretary 
determines appropriate.
``Sec. 22505. Approval
    ``(a) Criteria.--The Secretary may approve a State rail plan for 
the purposes of this chapter if--
            ``(1) the plan meets all of the requirements applicable to 
        State plans under this chapter;
            ``(2) for each ready-to-commence project listed on the 
        ranked list of freight and intercity passenger rail capital 
        projects under the plan--
                    ``(A) the project meets all safety and 
                environmental requirements including those prescribed 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4331 et seq.) that are applicable to the project 
                under law; and
                    ``(B) the State has entered into an agreement with 
                any owner of rail infrastructure or right of way over 
                which service under the project will be operated that 
                authorizes the State to proceed with the project; and
            ``(3) the content of the plan is coordinated with--
                    ``(A) State transportation plans developed pursuant 
                to section 135 of title 23; and
                    ``(B) the national rail plan, the 50-year 
                intermodal blueprint developed under section 5503(e) of 
                this title (if either is available), and any other 
                transportation plan of the Federal Government that is 
                required by law and that the Secretary considers 
                relevant.
    ``(b) Procedures for State Rail Plan Submission and Approval.--The 
Secretary shall prescribe procedures for States to submit State rail 
plans for review under this chapter, including standardized format and 
data requirements and procedures for resubmittal if a State rail plan 
is disapproved. The procedures shall provide for the Secretary to 
review a State rail plan and issue a record of decision of approval or 
disapproval, with comment, on such plan within 180 days after the plan 
is submitted.
``Sec. 22506. Definitions
    ``In this chapter:
            ``(1) Private benefit.--The term `private benefit' means a 
        benefit accrued to a person or private entity, other than 
        Amtrak, that directly improves the economic and competitive 
        condition of that person or entity through improved assets, 
        cost reductions, service improvements, or any other means as 
        defined by the Secretary of Transportation. The Secretary may 
        seek the advice of the States and rail carriers in further 
        defining this term.
            ``(2) Public benefit.--The term `public benefit' means a 
        benefit accrued to the public in the form of enhanced mobility 
        of people or goods, environmental protection or enhancement, 
        congestion mitigation, enhanced trade and economic development, 
        improved air quality or land use, more efficient energy use, 
        enhanced public safety or security, reduction of public 
        expenditures due to improved transportation efficiency or 
        infrastructure preservation, and any other positive community 
        effects as defined by the Secretary. The Secretary make seek 
        the advice of the States and rail carriers in further defining 
        this term.
            ``(3) State.--The term `State' means any of the 50 States 
        and the District of Columbia.
            ``(4) State rail transportation authority.--The term `State 
        rail transportation authority' means the State agency or 
        official responsible under the direction of the Governor of the 
        State or a State law for preparation, maintenance, 
        coordination, and administration of the State rail plan.''.
    (b) Clerical Amendment.--The table of chapters for subtitle V of 
title 49, United States Code, is amended by inserting after the item 
relating to chapter 223 the following:

``225. STATE RAIL PLANS.....................................   22501''.

SEC. 204. ADDITIONAL HIGH-SPEED RAIL CORRIDORS.

    Section 104(d)(2)(B) of title 23, United States Code, is amended--
            (1) by striking ``and'' at the end of clause (iv);
            (2) by striking the period at the end of clause (v) and 
        inserting a semicolon; and
            (3) by adding at the end the following new clauses:
                            ``(vi) a Gulf of Mexico high-speed corridor 
                        from Mobile, Alabama, to San Antonio, Texas, 
                        via New Orleans, Louisiana, and Houston, Texas;
                            ``(vii) a Mississippi River high-speed 
                        corridor from New Orleans, Louisiana, to 
                        Memphis, Tennessee, via Jackson, Mississippi; 
                        and
                            ``(viii) a Las Vegas high-speed corridor 
                        from Los Angeles, California, to Las Vegas, 
                        Nevada.''.

SEC. 205. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT.

    (a) Corridor Development.--
            (1) Amendments.--Section 26101 of title 49, United States 
        Code, is amended--
                    (A) in the section heading, by striking 
                ``planning'' and inserting ``development'';
                    (B) in the heading of subsection (a), by striking 
                ``Planning'' and inserting ``Development'';
                    (C) by striking ``corridor planning'' each place it 
                appears and inserting ``corridor development'';
                    (D) in subsection (b)(1)--
                            (i) by inserting ``, or if it is an 
                        activity described in subparagraph (M)'' after 
                        ``high-speed rail improvements'';
                            (ii) by striking ``and'' at the end of 
                        subparagraph (K);
                            (iii) by striking the period at the end of 
                        subparagraph (L) and inserting ``; and''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
            ``(M) the acquisition of locomotives, rolling stock, track, 
        and signal equipment.''; and
                    (E) in subsection (c)(2), by striking ``planning'' 
                and inserting ``development''.
            (2) Conforming amendment.--The item relating to section 
        26101 in the table of sections of chapter 261 of title 49, 
        United States Code, is amended by striking ``planning'' and 
        inserting ``development''.
    (b) Authorization of Appropriations.--Section 26104 of title 49, 
United States Code, is amended to read as follows:
``Sec. 26104. Authorization of appropriations
    ``(a) Fiscal Years 2006 Through 2013.--There are authorized to be 
appropriated to the Secretary--
            ``(1) $70,000,000 for carrying out section 26101; and
            ``(2) $30,000,000 for carrying out section 26102,
for each of the fiscal years 2006 through 2013.
    ``(b) Funds to Remain Available.--Funds made available under this 
section shall remain available until expended.''.

           TITLE III--RAIL INFRASTRUCTURE FINANCE CORPORATION

SEC. 301. ESTABLISHMENT OF CORPORATION.

    There is established a nonprofit corporation, to be known as the 
``Rail Infrastructure Finance Corporation''. The Rail Infrastructure 
Finance Corporation is not an agency or establishment of the United 
States Government for purposes of any Federal law, including the 
Securities Act of 1933, the Securities Exchange Act of 1934, and the 
Trust Indenture Act of 1939. The Corporation shall be subject to the 
provisions of this title and, to the extent consistent with this 
section, to the laws of the State of Delaware applicable to 
corporations not for profit.

SEC. 302. BOARD OF DIRECTORS.

    (a) Appointment.--The Rail Infrastructure Finance Corporation shall 
have a Board of Directors consisting of 9 voting members appointed by 
the President, by and with the advice and consent of the Senate. The 
President shall submit all nominations for the initial Board not less 
than 180 days after the date of enactment of this Act. Not more than 5 
voting members of the Board may be members of the same political party.
    (b) Membership Qualifications.--
            (1) In general.--The 9 voting members of the Board shall be 
        appointed from among citizens of the United States (not regular 
        full-time employees of the United States) who are eminent in 
        the fields of rail transportation, rail financing, intermodal 
        transportation planning, and the financing and management of 
        large-scale, long-term public-private cooperative projects.
            (2) Representation of specific interests.--Of the 9 voting 
        members of the Board, 8 shall be selected as follows:
                    (A) 1 member from among individuals who represent 
                the interests of freight rail transportation.
                    (B) 1 member from among individuals who represent 
                the interests of intermodal transportation.
                    (C) 1 member from among individuals who represent 
                the interests of passenger rail transportation.
                    (D) 1 member from among individuals who represent 
                the interests of the States.
                    (E) 1 member from among individuals who represent 
                the interests of intercity passenger rail users.
                    (F) 1 member from among individuals who represent 
                the interests of organized rail labor.
                    (G) 2 members from among persons who are involved 
                in finance.
    (c) Incorporation.--The voting members initially appointed to the 
Board of Directors shall serve as incorporators and, upon the 
establishment of a quorum, shall take whatever actions are necessary to 
establish the Corporation under the laws of Delaware.
    (d) Terms of Office.--Voting members of the Board shall be 
appointed for terms of 6 years. No voting member of the Board shall be 
eligible to serve in excess of 2 consecutive full terms.
    (e) Vacancies.--A voting member of the Board appointed to fill a 
vacancy occurring prior to the expiration of the term for which the 
member's predecessor was appointed shall be appointed for the remainder 
of such term. Except as provided in subsection (f), upon the expiration 
of a voting member's term, the member shall continue to serve until a 
successor is appointed.
    (f) Attendance Required.--Voting members of the Board shall attend 
not less than 50 percent of all duly convened meetings of the Board in 
any calendar year. A voting member who fails to meet the requirement of 
the preceding sentence shall forfeit membership and the President shall 
appoint a new member to fill the resulting vacancy not later than 90 
days after such vacancy is determined by the Chairman of the Board.
    (g) President of Amtrak.--The President of Amtrak shall serve as an 
ex officio, nonvoting member of the Board of Directors.
    (h) Election of Chairman and Vice Chairman.--Voting members of the 
Board shall annually elect 1 of their voting members to be Chairman and 
elect 1 or more of their voting members as a Vice Chairman or Vice 
Chairmen.
    (i) Compensation.--The voting members of the Board shall not, by 
reason of such membership, be considered to be officers or employees of 
the United States. Those voting members shall, while attending meetings 
of the Board or while engaged in duties related to such meetings or 
other activities of the Board pursuant to this Act, be entitled to 
receive compensation at the rate of $300 per day, including traveltime. 
No Board voting member shall receive compensation for service on the 
Board of more than $10,000 in any fiscal year. While away from their 
homes or regular places of business, all Board members shall be allowed 
travel and actual, reasonable, and necessary expenses.
    (j) Meetings Open to Public.--All meetings of the Board of 
Directors of the Corporation, including any committee of the Board, 
shall be open to the public under such terms, conditions, and 
exceptions as the Board may establish.
    (k) Quorum and Proceedings.--Five voting members of the Board shall 
constitute a quorum for the Board to conduct business. All decisions of 
the Board shall be entered upon the records of the Board.

SEC. 303. OFFICERS AND EMPLOYEES.

    (a) In General.--The Rail Infrastructure Finance Corporation shall 
have a President, and such other officers as may be named and appointed 
by the Board for terms and at rates of compensation fixed by the Board. 
No individual other than a citizen of the United States may be an 
officer of the Corporation. No officer of the Corporation may receive 
any salary or other compensation (except for compensation for services 
on boards of directors of other organizations that do not receive funds 
from the Corporation, on committees of such boards, and in similar 
activities for such organizations) from any sources other than the 
Corporation for services rendered during the period of his or her 
employment by the Corporation. Service by any officer on boards of 
directors of other organizations, on committees of such boards, and in 
similar activities for such organizations shall be subject to annual 
advance approval by the Board and subject to the provisions of a 
Statement of Ethical Conduct adopted by the Corporation. All officers 
shall serve at the pleasure of the Board. An officer of the corporation 
shall not be considered to be an officer or employee of the United 
States by virtue of such office.
    (b) Nonpartisan Nature of Appointments.--No political test or 
qualification shall be used in selecting, appointing, promoting, or 
taking other personnel actions with respect to officers, agents, or 
employees of the Corporation.

SEC. 304. NONPROFIT AND NONPOLITICAL NATURE OF THE CORPORATION.

    (a) Stock.--The Rail Infrastructure Finance Corporation shall have 
no power to issue any shares of stock, or to declare or pay any 
dividends.
    (b) No Private Benefit.--No part of the income or assets of the 
Corporation shall inure to the benefit of any director, officer, 
employee, or any other individual except as salary or reasonable 
compensation for services.
    (c) Political Activity Prohibited.--The Corporation may not 
contribute to or otherwise support any political party or candidate for 
elective public office.
    (d) Conflicts of Interest.--No director, officer, or employee of 
the Corporation shall in any manner, directly or indirectly, 
participate in the deliberation upon or the determination of any 
question affecting his or her personal interests or the interests of 
any corporation, partnership, or organization in which he or she has a 
direct or indirect financial interest. Board members shall recuse 
themselves from Board decisions that directly affect either them or any 
company or organization that they represent or in which they have a 
financial interest regarding grants and other financial assistance 
provided to States by the Board.

SEC. 305. PURPOSE AND ACTIVITIES OF CORPORATION.

    (a) Purpose.--
            (1) In general.--The Rail Infrastructure Finance 
        Corporation shall, through the issuance of qualified rail 
        infrastructure bonds in accordance with section 54 of the 
        Internal Revenue Code of 1986 and this title, provide financial 
        support for projects approved under sections 201 and 202.
            (2) Selection of projects.--The Board of Directors may 
        award grants for projects that have been approved by the 
        Secretary of Transportation under sections 201 and 202. In 
        selecting projects for such awards, the Board shall--
                    (A) give preference to projects with high levels of 
                estimated ridership, increased on-time performance, 
                reduced trip time, and additional service frequency;
                    (B) give preference to projects that encourage 
                intermodal connectivity through direct connections 
                between train stations, airports, bus terminals, subway 
                stations, ferry ports, and other modes of 
                transportation;
                    (C) ensure a general balance of grant funding 
                across geographic regions of the United States, and 
                avoid a disproportionate concentration of funding in 
                any single Corridor;
                    (D) favor projects that also improve freight or 
                commuter rail operations;
                    (E) favor projects that are expected to have a 
                significant favorable impact on air or highway traffic 
                congestion, capacity, or safety;
                    (F) favor projects that have significant 
                environmental benefits;
                    (G) favor projects that have positive economic and 
                employment impacts;
                    (H) favor projects that encourage the use of 
                positive train control technology;
                    (I) favor projects that enhance national security; 
                and
                    (J) favor projects that have commitments of non-
                Federal funding in a total amount that exceeds the 
                minimum amount required.
            (3) Contract authority.--The Board shall not award contract 
        authority under this title in an aggregate amount greater than 
        $500,000,000 for any fiscal year. Awards shall be available for 
        expenditure over a 6-year period.
            (4) Non-federal matching requirement.--Recipients of awards 
        under this title shall provide from non-Federal sources at 
        least 20 percent of the costs of the project for which the 
        award is made.
            (5) Distribution of awards.--
                    (A) In general.--Of the amounts awarded under this 
                title for any fiscal year--
                            (i) 75 percent shall be for projects 
                        described in section 201;
                            (ii) 10 percent shall be for projects 
                        described in section 202(a)(1);
                            (iii) 5 percent shall be for projects 
                        described in section 202(a)(2);
                            (iv) 5 percent shall be for projects 
                        described in section 202(a)(3); and
                            (v) 5 percent shall be for projects 
                        described in section 202(a)(4).
                    (B) Carryover.--If sufficient viable applications 
                are not available to distribute the entire amount under 
                subparagraph (A)(i), (ii), (iii), (iv), or (v) for a 
                fiscal year, the remainder of amounts unspent shall be 
                available for additional awards within the same 
                category for subsequent fiscal years.
    (b) Bond Issuance Authority.--
            (1) In general.--In order to carry out its purposes, the 
        Corporation is authorized to issue qualified rail 
        infrastructure bonds (as defined in section 54(e) of the 
        Internal Revenue Code of 1986) during the 6-year period 
        beginning on the day after the date of enactment of this Act.
            (2) Limitation.--The total face amount of the bonds 
        outstanding under paragraph (1) at any time may not exceed 
        $30,000,000,000.
            (3) No federal guarantee.--
                    (A) Obligations insured by the corporation.--No 
                obligation that is insured, guaranteed, or otherwise 
                backed by the Corporation shall be deemed to be an 
                obligation that is guaranteed by the full faith and 
                credit of the United States.
                    (B) Special rule.--This paragraph shall not affect 
                the determination of whether such obligation is 
                guaranteed for purposes of Federal income taxes.
                    (C) Securities offered by the corporation.--No debt 
                or equity securities of the Corporation shall be deemed 
                to be guaranteed by the full faith and credit of the 
                United States.
            (4) Authority.--To carry out the purpose set forth in 
        subsection (a) and engage in the activities described in 
        subsection (b), the Corporation shall have the usual powers 
        conferred upon a nonprofit corporation under the laws of the 
        State of Delaware.
    (c) Federal Assistance.--The Corporation shall be eligible to 
receive discretionary grants, contracts, gifts, contributions, or 
technical assistance from any department or agency of the Federal 
Government, but only to the extent permitted by law and to the extent 
necessary to carry out the purpose set forth in subsection (a) and the 
activities described in subsection (b).

SEC. 306. REPORT TO CONGRESS.

    (a) In General.--Not later than May 15 of each year, the Rail 
Infrastructure Finance Corporation shall submit an annual report for 
the fiscal year ending on September 30 of the preceding year to the 
Committee on Commerce, Science, and Transportation of the Senate and 
the Committee on Transportation and Infrastructure of the House of 
Representatives. The report shall include a comprehensive and detailed 
report of the Corporation's operations, activities, financial 
condition, and accomplishments under this title and such 
recommendations as the Corporation considers appropriate.
    (b) Availability for Testimony.--The officers and directors of the 
Corporation shall be available to testify before those committees with 
respect to such report or any other matter which such committees may 
determine.

SEC. 307. ADMINISTRATIVE MATTERS.

    (a) Budget.--The Rail Infrastructure Finance Corporation shall 
establish an annual budget for the Corporation, including the Rail 
Infrastructure Investment Account under subsection (c).
    (b) Implementation Plan.--
            (1) Requirement for plan.--The Corporation shall conduct a 
        study and prepare a plan on how the Corporation can best 
        achieve the purposes and fulfill the requirements of this 
        title.
            (2) Consultation.--In preparing the plan, the Corporation 
        may consult with representatives of State and local 
        governments, railroads, and other similar entities.
            (3) Other requirements.--The plan, which shall be based on 
        the conclusions resulting from the study conducted under 
        paragraph (1), shall be submitted by the Corporation to the 
        Committee on Commerce, Science, and Transportation of the 
        Senate and the Committee on Transportation and Infrastructure 
        of the House of Representatives not later than 180 days after 
        the date on which the Corporation is incorporated. Unless 
        directed otherwise by law, the Corporation shall implement the 
        plan during the first fiscal year beginning after the fiscal 
        year in which the plan is submitted to Congress.
    (c) Rail Infrastructure Investment Account.--
            (1) Establishment.--The Board of Directors for the 
        Corporation shall establish an account to be known as the Rail 
        Infrastructure Investment Account (in this section referred to 
        as the ``Account'').
            (2) Deposit of bond proceeds.--The Corporation shall 
        deposit the proceeds of sales of any bonds issued under section 
        54 of the Internal Revenue Code of 1986 into the Account.
            (3) Deposit of non-federal contributions.--The Board shall 
        deposit all non-Federal contributions received into the 
        Account.
            (4) Disbursements.--The Board may make available and may 
        disburse, during the first fiscal year beginning after the date 
        of enactment of this Act and during each succeeding fiscal year 
        thereafter, such funds as may be available for obligation and 
        expenditure from the Account.
            (5) Use of account funds.--Funds in the Account--
                    (A) shall be used by the Corporation for investment 
                purposes through the Rail Infrastructure Finance Trust 
                established under section 308 to generate an amount 
                sufficient--
                            (i) to repay the principal of the bonds at 
                        their maturity; and
                            (ii) to pay the administrative costs of the 
                        Corporation and the Rail Infrastructure Finance 
                        Trust; and
                    (B) shall, to the extent of the net spendable 
                proceeds in the account, be held in the Rail 
                Infrastructure Finance Trust established under section 
                308 and be available for distribution as grants of 
                financial assistance for projects approved under 
                sections 201 and 202.
            (6) Net spendable proceeds defined.--In this subsection, 
        the term ``net spendable proceeds'', with respect to the Rail 
        Infrastructure Investment Account, means the amount, determined 
        by the Board of Trustees of the Rail Infrastructure Finance 
        Trust, equal to the excess of--
                    (A) the total amount in such Account, over
                    (B) the amount in such Account that is needed for 
                uses under paragraph (5)(A).
    (d) Records and Audit.--
            (1) In general.--The Account and the Corporation shall be 
        audited annually in accordance with generally accepted auditing 
        standards by independent certified public accountants or 
        independent licensed public accountants certified or licensed 
        by a regulatory authority of a State or other political 
        subdivision of the United States. The audits shall be conducted 
        at the place or places where the accounts of the Corporation 
        are normally kept. All books, accounts, financial records, 
        reports, files, and all other papers, things, or property 
        belonging to or in use by the Corporation and necessary to 
        facilitate the audits shall be made available to the person or 
        persons conducting the audits; and full facilities for 
        verifying transactions with the balances or securities held by 
        depositories, fiscal agents and custodians shall be afforded to 
        such person or persons.
            (2) Audit report.--The report of each such independent 
        audit shall be included in the annual report required by 
        section 306. The audit report shall set forth the scope of the 
        audit and include such statements as are necessary to present 
        fairly the Corporation's assets and liabilities, surplus or 
        deficit, with an analysis of the changes therein during the 
        year, supplemented in reasonable detail by a statement of the 
        Corporation's income and expenses during the year, and a 
        statement of the sources and application of funds, together 
        with the independent auditor's opinion of those statements.
            (3) Accounting principles.--Not later than 1 year after the 
        date of enactment of this Act, the Corporation shall develop 
        accounting principles which shall be used uniformly by all 
        entities receiving funds under this title, taking into account 
        organizational differences among various categories of such 
        entities. Such principles shall be designed to account fully 
        for all funds received and expended for purposes of this title 
        by such entities.
            (4) Requirements for recipients.--Each entity receiving 
        funds under this title shall--
                    (A) keep its books, records, and accounts in such 
                form as may be required by the Corporation;
                    (B) either--
                            (i) undergo an annual audit by independent 
                        certified public accountants or independent 
                        licensed public accountants certified or 
                        licensed by a regulatory authority of a State, 
                        which audit shall be in accordance with 
                        auditing standards developed by the 
                        Corporation; or
                            (ii) submit a financial statement in lieu 
                        of the audit described in clause (i) if the 
                        Corporation determines that the cost burden of 
                        such audit on such entity is excessive in light 
                        of the financial condition of such entity; and
                    (C) furnish biennially to the Corporation a copy of 
                the audit report or financial statement required 
                pursuant to the subparagraph (B), as well as such other 
                information regarding finances (including an annual 
                financial report) as the Corporation may require.
            (5) Additional recordkeeping.--Any recipient of assistance 
        by grant or contract under this title, other than a fixed price 
        contract awarded pursuant to competitive bidding procedures, 
        shall keep such records as may be reasonably necessary to 
        disclose fully the amount and the disposition by such recipient 
        of such assistance, the total cost of the project or 
        undertaking in connection with which such assistance is given 
        or used, and the amount and nature of that portion of the cost 
        of the projects or undertaking supplied by other sources, and 
        such other records as will facilitate an effective audit.
            (6) Access to records.--The Corporation or any of its duly 
        authorized representatives shall have access to any books, 
        documents, papers, and records of any recipient of assistance 
        for the purpose of auditing and examining all funds received 
        from the Corporation.
            (7) Public inspection.--The Corporation shall maintain the 
        information described in paragraphs (4), (5), and (6) at its 
        offices for public inspection and copying for at least 3 years, 
        according to such reasonable guidelines as the Corporation may 
        issue. This public file shall be updated regularly.

SEC. 308. RAIL INFRASTRUCTURE FINANCE TRUST.

    (a) Establishment.--The Board of Directors of the Rail 
Infrastructure Finance Corporation shall establish the Rail 
Infrastructure Finance Trust (in this section referred to as the 
``Trust'') as a trust domiciled in the State of Delaware before the 
issuance of bonds under section 305(b). The Trust shall, to the extent 
not inconsistent with this title, be subject to the laws of the State 
of Delaware that are applicable to trusts. The Trust shall manage and 
invest the assets of the Rail Infrastructure Investment Account 
established under section 307(c) that are transferred to it by the 
Board of Directors in the manner set forth in this section.
    (b) Not a Federal Agency or Instrumentality.--The Trust is not a 
department, agency, or other instrumentality of the Government of the 
United States and shall not be subject to title 31, United States Code.
    (c) Board of Trustees.--
            (1) Establishment.--The Trust shall have a Board of 
        Trustees.
            (2) Composition.--
                    (A) Appointment.--The Board of Trustees shall 
                consist of 5 members (in this title referred to as 
                ``Trustees''), 3 of whom shall be appointed by a 
                unanimous vote of the Board of Directors of the Rail 
                Infrastructure Finance Corporation.
                    (B) Representation of particular interests.--The 3 
                members of the Board of Trustees whose unanimous 
                appointment is required under subparagraph (A) shall be 
                selected as follows:
                            (i) 1 from among persons who represent the 
                        interests of the States.
                            (ii) 1 from among persons who represent the 
                        interests of freight and passenger railroads.
                            (iii) 1 from among persons who represent 
                        the interests of classes of investors who would 
                        be reasonably expected to become holders of 
                        qualified rail infrastructure bonds issued by 
                        the Rail Infrastructure Finance Corporation.
                    (C) Elected trustees.--The 2 Trustees not appointed 
                under subparagraph (A) shall be elected directly by 
                holders of qualified rail infrastructure bonds issued 
                by the Rail Infrastructure Finance Corporation through 
                procedures established by the Board of Trustees to 
                represent the interests of such bond holders. The 
                election shall be held, and both members elected under 
                this subparagraph shall take office as Trustees, within 
                1 year after the initial issuance of bonds under 
                section 305(b).
            (3) Members not united states officials.--The members of 
        the Board of Trustees may not be considered officers or 
        employees of the Government of the United States.
            (4) Qualifications.--The Trustees shall be appointed only 
        from among persons who have experience and expertise in the 
        management of financial investments. No member of the Board of 
        Directors of the Rail Infrastructure Finance Corporation is 
        eligible to be a Trustee.
            (5) Terms.--Each member of the Board of Trustees shall be 
        appointed for a 3-year term. Any member whose term has expired 
        may serve until such member's successor has taken office, or 
        until the end of the calendar year in which such member's term 
        has expired, whichever is earlier. A vacancy in the Board of 
        Trustees shall not affect the powers of the Board of Trustees 
        and shall be filled in the same manner as the member whose 
        departure caused the vacancy. Any member appointed to fill a 
        vacancy occurring prior to the expiration of the term for which 
        the member's predecessor was appointed shall be appointed for 
        the remainder of such term.
    (d) Powers.--The Board of Trustees shall--
            (1) establish investment policies, including guidelines, 
        and retain independent advisers to assist in the formulation 
        and adoption of the investment guidelines;
            (2) retain independent investment managers to invest the 
        assets of the Trust in a manner consistent with such investment 
        guidelines;
            (3) invest assets in the Trust, pursuant to the policies 
        adopted under paragraph (1);
            (4) pay administrative expenses of the Trust from the 
        assets in the Trust;
            (5) transfer money to the Rail Infrastructure Investment 
        Account, upon request of the Board of Directors of the Rail 
        Infrastructure Finance Corporation, for bond repayment and 
        administrative expenses of the Corporation;
            (6) develop a formula, subject to approval by the Board of 
        Directors before the issuance of bonds under section 305(b), 
        for determining when there is a sufficient trust income stream 
        for purposes of paragraph (7); and
            (7) transfer net spendable proceeds (within the meaning of 
        section 507(c)(6)) to the Board of Directors to be used for 
        grants under title II after determining that adequate trust 
        funds are available, or that there is a trust income stream 
        sufficient, to allow the Board of Trustees to meet its 
        obligations under paragraphs (4) and (5).
    (e) Reporting Requirements and Fiduciary Standards.--The following 
reporting requirements and fiduciary standards shall apply with respect 
to the Trust:
            (1) Duties of the board of trustees.--The Trust and each 
        member of the Board of Trustees shall discharge the duties of 
        the Trust and the duties of the Trustee, respectively 
        (including the voting of proxies), with respect to the assets 
        of the Trust solely in the interests of the Rail Infrastructure 
        Finance Corporation and the programs funded under this title--
                    (A) for the exclusive purposes of--
                            (i) providing sufficient funds to repay 
                        qualified rail infrastructure bonds issued by 
                        the Rail Infrastructure Finance Corporation;
                            (ii) funding the administrative costs of 
                        the Rail Infrastructure Finance Corporation;
                            (iii) defraying reasonable expenses of 
                        administering the Trust; and
                            (iv) providing grants for projects under 
                        title II; and
                    (B) with the care, skill, prudence, and diligence 
                under the circumstances then prevailing that a prudent 
                person acting in a like capacity and familiar with such 
                matters would use in the conduct of an enterprise of a 
                like character and with like aims;
                    (C) by diversifying investments so as to minimize 
                the risk of large losses and to avoid disproportionate 
                influence over a particular industry or firm, unless 
                under the circumstances it is clearly prudent not to do 
                so; and
                    (D) in accordance with Trust governing documents 
                and instruments insofar as such documents and 
                instruments are consistent with this title.
            (2) Prohibitions with respect to members of the board of 
        trustees.--A member of the Board of Trustees may not--
                    (A) deal with the assets of the Trust in the 
                Trustee's own interest or for the Trustee's own 
                account;
                    (B) act in an individual or in any other capacity, 
                in any transaction involving the assets of the Trust on 
                behalf of a party (or represent a party) whose 
                interests are adverse to the interests of the Trust and 
                the Rail Infrastructure Finance Corporation; or
                    (C) receive any consideration for the Trustee's own 
                personal account from any party dealing with the assets 
                of the Trust.
            (3) Exculpatory provisions and insurance.--Any provision in 
        an agreement or instrument that purports to relieve a Trustee 
        from responsibility or liability for any responsibility, 
        obligation, or duty under this title shall be void. Nothing in 
        this paragraph shall be construed to preclude--
                    (A) the Trust from purchasing insurance for its 
                Trustees or for itself to cover liability or losses 
                occurring by reason of the act or omission of a 
                Trustee, if such insurance permits recourse by the 
                insurer against the Trustee in the case of a breach of 
                a fiduciary obligation by such Trustee;
                    (B) a Trustee from purchasing insurance to cover 
                liability under this section from and for his own 
                account; or
                    (C) an employer or an employee organization from 
                purchasing insurance to cover potential liability of 1 
                or more Trustees with respect to their fiduciary 
                responsibilities, obligations, and duties under this 
                section.
            (4) Trustees, bonds.--
                    (A) Requirement.--Each Trustee and every person who 
                handles funds or other property of the Trust (in this 
                section referred to as ``Trust official'') shall be 
                bonded. The bond shall provide protection to the Trust 
                against loss by reason of acts of fraud or dishonesty 
                on the part of any Trust official, directly or through 
                the connivance of others.
                    (B) Amount.--The amount of a bond for a Trustee 
                under this paragraph shall be fixed at the beginning of 
                each fiscal year of the Trust by the Board of Directors 
                of the Rail Infrastructure Finance Corporation. The 
                amount may not be less than 10 percent of the amount of 
                the funds administered by the Trust.
                    (C) Unlawful conduct.--It shall be unlawful for--
                            (i) any Trust official to receive, handle, 
                        disburse, or otherwise exercise custody or 
                        control of any of the funds or other property 
                        of the Trust without being bonded as required 
                        by this subsection;
                            (ii) any Trust official, or any other 
                        person having authority to direct the 
                        performance of such functions, to permit such 
                        functions, or any of them, to be performed by 
                        any Trust official, with respect to whom the 
                        requirements of this subsection have not been 
                        met; and
                            (iii) any person to procure any bond 
                        required by this subsection from any surety or 
                        other company or through any agent or broker in 
                        whose business operations such person has any 
                        control or significant financial interest, 
                        direct or indirect.
    (f) Administrative Matters.--
            (1) Authority.--The Board of Trustees shall have the 
        authority to make rules to govern its operations, employ 
        professional staff, and contract with outside advisors 
        (including the Rail Infrastructure Finance Corporation) to 
        provide legal, accounting, investment advisory, or other 
        services necessary for the proper administration of this 
        section. In the case of a contract for investment advisory 
        services, compensation for such services may be provided on a 
        fixed fee basis or on such other terms and conditions as are 
        customary for such services.
            (2) Quorum and proceedings.--Three members of the Board of 
        Trustees shall constitute a quorum for the Board to conduct 
        business. Investment guidelines shall be adopted by a unanimous 
        vote of the entire Board of Trustees. All other decisions of 
        the Board of Trustees shall be decided by a majority vote of 
        the quorum present. All decisions of the Board of Trustees 
        shall be entered upon the records of the Board of Trustees.
            (3) Compensation of trustees and employees.--The salaries 
        of the Trustees are subject to the limitations in section 
        302(i).
            (4) Compensation arrangements.--The Board of Trustees may 
        compensate investment advisory service providers and employees 
        of the Trust on a fixed contract fee basis or on such other 
        terms and conditions as are customary for such services.
            (5) Funding.--The expenses of the Trust and the Board of 
        Trustees that are incurred under this section shall be paid 
        from the Trust.
    (g) Audit and Report.--
            (1) Requirement for annual audit.--The Trust shall annually 
        engage an independent qualified public accountant to audit the 
        financial statements of the Trust.
            (2) Annual management report.--The Trust shall submit an 
        annual management report to be included in the annual report of 
        the Corporation required under section 306. The management 
        report under this paragraph shall include the following 
        matters:
                    (A) A statement of financial position.
                    (B) A statement of operations.
                    (C) A statement of cash flows.
                    (D) A statement on internal accounting and 
                administrative control systems.
                    (E) The report resulting from an audit of the 
                financial statements of the Trust conducted under 
                paragraph (1).
                    (F) Any other comments and information necessary to 
                inform Congress about the operations and financial 
                condition of the Trust.
    (h) Enforcement.--The Rail Infrastructure Finance Corporation may 
commence a civil action--
            (1) to enjoin any act or practice by the Trust, its Board 
        of Trustees, or its employees or agents that violates any 
        provision of this title; or
            (2) to obtain other appropriate relief to redress such 
        violations, or to enforce any provisions of this title.
    (i) Exemption From Tax for Rail Infrastructure Finance Trust.--
Subsection (c) of section 501 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph:
            ``(29) The Rail Infrastructure Finance Trust established 
        under section 308 of the True Reinvestment for Amtrak 
        Infrastructure in the 21st Century Act.''.

             TITLE IV--RAIL INFRASTRUCTURE TAX CREDIT BONDS

SEC. 401. CREDIT TO HOLDERS OF QUALIFIED RAIL INFRASTRUCTURE BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to credits against tax) is 
amended by adding at the end the following new subpart:

    ``Subpart H--Nonrefundable Credit for Holders of Qualified Rail 
                          Infrastructure Bonds

``Sec. 54. Credit to holders of qualified rail infrastructure bonds.

``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED RAIL INFRASTRUCTURE BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
qualified rail infrastructure bond on a credit allowance date of such 
bond which occurs during the taxable year, there shall be allowed as a 
credit against the tax imposed by this chapter for such taxable year an 
amount equal to the sum of the credits determined under subsection (b) 
with respect to credit allowance dates during such year on which the 
taxpayer holds such bond.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified rail infrastructure bond is 25 percent of the 
        annual credit determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified rail infrastructure bond is the 
        product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (2), the applicable credit rate with respect to an issue is the 
        rate equal to an average market yield (as of the day before the 
        date of sale of the issue) on outstanding long-term corporate 
        debt obligations (determined under regulations prescribed by 
        the Secretary).
            ``(4) Credit allowance date.--For purposes of this section, 
        the term `credit allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(5) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed.
    ``(c) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under this part 
        (other than this subpart and subpart C).
    ``(d) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(e) Qualified Rail Infrastructure Bond.--For purposes of this 
part, the term `qualified rail infrastructure bond' means any bond 
issued as part of an issue if--
            ``(1) the bond is issued by the Rail Infrastructure Finance 
        Corporation and is in registered form,
            ``(2) the term of each bond which is part of such issue 
        does not exceed 20 years,
            ``(3) the payment of principal with respect to such bond is 
        the obligation of the Rail Infrastructure Finance Corporation 
        and not an obligation of the United States,
            ``(4) all proceeds from the sale of the issue are used for 
        the purposes set forth in section 307(c)(5) of the True 
        Reinvestment for Amtrak Infrastructure in the 21st Century Act, 
        and
            ``(5) 95 percent or more of the net spendable proceeds from 
        the sale of such issue are to be used for expenditures incurred 
        after the date of enactment of this section for any qualified 
        project described in section 201 or 202 of the True 
        Reinvestment for Amtrak Infrastructure in the 21st Century Act 
        subject to the limitations established by that Act.
    ``(f) Special Rules Relating to Net Spendable Proceeds.--
            ``(1) In general.--Subject to paragraph (2), an issue shall 
        be treated as meeting the requirements of this subsection if, 
        as of 6 years after the date of issuance, the issuer reasonably 
        expects--
                    ``(A) to award grants under section 305(a) of the 
                True Reinvestment for Amtrak Infrastructure in the 21st 
                Century Act in a total amount that is at least 95 
                percent of the net spendable proceeds of the issue for 
                1 or more qualified projects within the 6-year period 
                beginning on such date,
                    ``(B) to incur a binding commitment with a third 
                party--
                            ``(i) to spend at least 10 percent of the 
                        net spendable proceeds of the issue, or to 
                        commence construction, with respect to such 
                        projects within the 12-month period beginning 
                        on such date, and
                            ``(ii) to proceed with due diligence to 
                        complete such projects, and
                    ``(C) to expend the total amount of the net 
                spendable proceeds of the issue.
            ``(2) Rules regarding continuing compliance after 6-year 
        determination.--If at least 95 percent of the net spendable 
        proceeds of the issue is not awarded as grants to be expended 
        for 1 or more qualified projects within the 6-year period 
        beginning 6 years after the date of issuance, but the 
        requirements of paragraph (1) are otherwise met, an issue shall 
        be treated as continuing to meet the requirements of paragraph 
        (1) if either the requirement under subparagraph (A) or the 
        requirements under subparagraph (B) are met, as follows:
                    ``(A) The issuer uses all unspent proceeds from the 
                sale of the issue to redeem bonds of the issue within 
                90 days after the end of such 6-year period and 
                disburses any remaining net spendable proceeds to the 
                Secretary of Treasury within 30 days after the end of 
                such 6-year period.
                    ``(B) The issuer--
                            ``(i) awards in grants under section 305(a) 
                        of the True Reinvestment for Amtrak 
                        Infrastructure in the 21st Century Act at least 
                        75 percent of the net spendable proceeds of the 
                        issue for 1 or more qualified projects within 
                        the 6-year period beginning 6 years after the 
                        date of issuance, and
                            ``(ii) awards in grants under section 
                        305(a) of the True Reinvestment for Amtrak 
                        Infrastructure in the 21st Century Act at least 
                        95 percent of the net spendable proceeds of the 
                        issue for 1 or more qualified projects within 
                        the 7-year period beginning 6 years after the 
                        date of issuance.
    ``(g) Recapture of Portion of Credit Where Cessation of 
Compliance.--
            ``(1) In general.--If any bond which when issued purported 
        to be a qualified rail infrastructure bond ceases to be such a 
        qualified bond, the issuer shall pay to the United States (at 
        the time required by the Secretary) an amount equal to the sum 
        of--
                    ``(A) the aggregate of the credits allowable under 
                this section with respect to such bond (determined 
                without regard to subsection (c)) for taxable years 
                ending during the calendar year in which such cessation 
                occurs and the 2 preceding calendar years, and
                    ``(B) interest at the underpayment rate under 
                section 6621 on the amount determined under 
                subparagraph (A) for each calendar year for the period 
                beginning on the first day of such calendar year.
            ``(2) Nonculpable disqualifications.--If a qualified rail 
        infrastructure bond ceases to qualify as such a bond due to 
        action taken by the recipient of a grant made under section 
        305(a) of the True Reinvestment for Amtrak Infrastructure in 
        the 21st Century Act, the issuer may seek compensation under 
        paragraph (1) of this subsection.
    ``(h) Rail Infrastructure Finance Trust.--
            ``(1) In general.--The following amounts shall be held in a 
        trust account by the Rail Infrastructure Finance Corporation:
                    ``(A) An amount of the proceeds from the sale of 
                all bonds designated for purposes of this section that, 
                when combined with amounts described in subparagraphs 
                (B), (C), and (D), is sufficient--
                            ``(i) to ensure the Corporation's ability 
                        to redeem all bonds upon maturity; and
                            ``(ii) to pay the administrative expenses 
                        of the Corporation and the Rail Infrastructure 
                        Finance Trust.
                    ``(B) The amount of any non-Federal contributions 
                required under section 305(a)(4) of the True 
                Reinvestment for Amtrak Infrastructure in the 21st 
                Century Act.
                    ``(C) The temporary period investment earnings on 
                proceeds from the sale of such bonds.
                    ``(D) Any earnings on any amounts described in 
                subparagraph (A), (B), or (C).
            ``(2) Use of funds.--Amounts in the trust account may be 
        used only for investment purposes to generate sufficient funds 
        to redeem qualified rail infrastructure bonds at maturity and 
        pay the administrative expenses of the Corporation and the 
        Trust.
            ``(3) Use of remaining funds on trust account.--If the 
        Corporation determines that the amount in the trusts account 
        exceeds the amount required to comply with paragraph (2), the 
        Corporation may transfer the excess to the Rail Infrastructure 
        Investment account to be available for awarding grants as 
        provided for in section 307(c)(5)(B) of the True Reinvestment 
        for Amtrak Infrastructure in the 21st Century Act.
            ``(4) Reversion of remaining proceeds.--Upon retirement of 
        all bonds issued by the Corporation, any remaining proceeds 
        from the sale of such bonds shall be covered into the general 
        fund of the Treasury of the United States as miscellaneous 
        receipts.
    ``(i) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Net spendable proceeds.--The term `net spendable 
        proceeds' has the meaning given such term in section 307(c)(6) 
        of the True Reinvestment for Amtrak Infrastructure in the 21st 
        Century Act.
            ``(3) Qualified project.--The term `qualified project' 
        means any project that is eligible for grant funding under 
        section 201 or 202 of the True Reinvestment for Amtrak 
        Infrastructure in the 21st Century Act.
            ``(4) Partnership; s corporation; and other pass-thru 
        entities.--Under regulations prescribed by the Secretary, in 
        the case of a partnership, trust, S corporation, or other pass-
        thru entity, rules similar to the rules of section 41(g) shall 
        apply with respect to the credit allowable under subsection 
        (a).
            ``(5) Bonds held by regulated investment companies.--If any 
        qualified rail infrastructure bond is held by a regulated 
        investment company, the credit determined under subsection (a) 
        shall be allowed to shareholders of such company under 
        procedures prescribed by the Secretary.
            ``(6) Reporting.--Issuers of qualified rail infrastructure 
        bonds shall submit reports similar to the reports required 
        under section 149(e).''.
    (b) Amendments to Other Code Sections.--
            (1) Reporting.--Subsection (d) of section 6049 of the 
        Internal Revenue Code of 1986 (relating to returns regarding 
        payments of interest) is amended by adding at the end the 
        following new paragraph:
            ``(8) Reporting of credit on qualified rail infrastructure 
        bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54(d) and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54(b)(4)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A), subsection 
                (b)(4) shall be applied without regard to subparagraphs 
                (A), (H), (I), (J), (K), and (L)(i) of such subsection.
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
            (2) Treatment for estimated tax purposes.--
                    (A) Individual.--Section 6654 of such Code 
                (relating to failure by individual to pay estimated 
                income tax) is amended by redesignating subsection (m) 
                as subsection (n) and by inserting after subsection (l) 
                the following new subsection:
    ``(m) Special Rule for Holders of Qualified Rail Infrastructure 
Bonds.--For purposes of this section, the credit allowed by section 54 
to a taxpayer by reason of holding a qualified rail infrastructure bond 
on a credit allowance date shall be treated as if it were a payment of 
estimated tax made by the taxpayer on such date.''.
                    (B) Corporate.--Section 6655 of such Code (relating 
                to failure by corporation to pay estimated income tax) 
                is amended by adding at the end of subsection (g) the 
                following new paragraph:
            ``(5) Special rule for holders of qualified rail 
        infrastructure bonds.--For purposes of this section, the credit 
        allowed by section 54 to a taxpayer by reason of holding a 
        qualified rail infrastructure bond on a credit allowance date 
        shall be treated as if it were a payment of estimated tax made 
        by the taxpayer on such date.''.
    (c) Clerical Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new item:
    ``subpart h--nonrefundable credit for holders of qualified rail 
                        infrastructure bonds''.
            (2) Section 6401(b)(1) of such Code is amended by striking 
        ``and G'' and inserting ``G, and H''.

SEC. 402. ISSUANCE OF REGULATIONS.

    The Secretary of the Treasury shall issue regulations required 
under section 54 of the Internal Revenue Code of 1986 not later than 90 
days after the date of the enactment of this Act.

SEC. 403. EFFECTIVE DATE.

    The amendments made by section 401 shall apply to obligations 
issued after the date of enactment of this Act.
                                 <all>
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