I

104TH CONGRESS

1ST SESSION H. R. 1437

To authorize appropriations for the National Railroad Passenger Corporation,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 6, 1995

Mr. LIPINSKI (for himself and Mr. MINETA) (both by request) introduced the

following bill; which was referred to the Committee on Transportation

and Infrastructure

A BILL

To authorize appropriations for the National Railroad

Passenger Corporation, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Amtrak Restructuring

5 Act of 1995’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—

8 (1) intercity rail passenger service is an essen9 tial component of the integrated national transpor10 tation system, and the National Railroad Passenger
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1 Corporation (Amtrak) must provide a quality trans2 portation product in the form of clean, comfortable,

3 and on-time service to achieve its full potential;

4 (2) Amtrak has been forced to significantly cut

5 back its basic system due to cash shortages, and fur6 ther cutback may be required unless Amtrak is able

7 to reduce its costs and increase its revenues;

8 (3) to ensure Amtrak’s long-term viability as a

9 provider of intercity rail passenger service, contribu10 tions from all of Amtrak’s stakeholders are needed

11 to reduce Amtrak’s costs and increase its revenues;

12 (4) Amtrak’s management and employees are

13 dedicated to providing the high-quality service that

14 Amtrak’s customers deserve but additional capital

15 investment is needed to acquire the modern equip16 ment and efficient facilities that are essential to sat17 isfy the demand for superior intercity rail passenger

18 service, and additional management flexibility is

19 needed to allow Amtrak to adjust quickly to meet

20 demand and changing customer needs;

21 (5) adequate levels of capital investment from

22 the Federal Government and State governments and

23 innovative partnerships with the private sector will

24 enable Amtrak to provide the world class service
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1 American rail passengers deserve and will help re2 duce operating costs in the long term;

3 (6) Amtrak’s management should be held ac4 countable to ensure that all capital investment by

5 the Federal Government and State governments is

6 used effectively to improve the quality of service and

7 the long-term financial health of Amtrak;

8 (7) the Secretary of Transportation, as an ex

9 officio member of Amtrak’s Board of Directors,

10 should use this position to evaluate Amtrak’s costs

11 and revenue elements to ensure that Amtrak pro12 vides excellent service to its customers and that Am13 trak uses its Federal investment wisely and effi14 ciently;

15 (8) States, local governments, and private par16 ties can and should play an increasingly significant

17 role in supporting cost-efficient intercity rail pas18 senger transportation and in addressing local trans19 portation needs and air quality control;

20 (9) mandatory payments reflecting funds paid

21 into the railroad retirement and railroad unemploy22 ment systems on Amtrak’s behalf in excess of the

23 funds needed to pay retirement and unemployment

24 benefits for Amtrak’s employees and their bene25 ficiaries shall not be considered a Federal operating
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1 subsidy of Amtrak but rather a subsidy of the rail2 road retirement and railroad unemployment systems

3 as a whole; and

4 (10) Federal financial assistance to cover oper5 ating losses incurred by Amtrak should be reduced

6 gradually between the years 1996 and 2001.

7 SEC. 3. FINDINGS, PURPOSE, AND GOALS.

8 Section 24101 of title 49, United States Code, is

9 amended—

10 (1) by revising subsection (a)(6) to read as

11 follows:

12 ‘‘(6) Amtrak should be available to operate

13 commuter rail passenger transportation under con14 tract with commuter authorities to the extent Am15 trak is fully reimbursed for the costs incurred in op16 erating such services, including a reasonable return

17 on Amtrak’s investment of time and resources.’’;

18 (2) by replacing the period at the end of sub19 section (c) with ‘‘, and’’; and

20 (3) by adding at the end of subsection (c) the

21 following:

22 ‘‘(12) manage capital investment in such a way

23 as to provide customers with world class service.’’.
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1 SEC. 4. DEFINITIONS.

2 Section 24102 of title 49, United States Code, is

3 amended—

4 (1) by repealing paragraphs (2), (3) and (11);

5 and

6 (2) by renumbering the remaining paragraphs

7 as appropriate.

8 SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

9 (a) AUTHORIZATIONS.—Section 24104 of title 49,

10 United States Code, is amended to read as follows:

11 ‘‘§ 24104. Authorization of appropriations

12 ‘‘(a) OPERATING EXPENSES.—There are authorized

13 to be appropriated to the Secretary to make grants to Am14 trak $300,000,000 for fiscal year 1996 and $200,000,000

15 for fiscal year 1997, to be used for operating expenses.

16 ‘‘(b) CAPITAL INVESTMENT.—There are authorized

17 to be appropriated to the Secretary to make grants to Am18 trak $230,000,000 for fiscal year 1996 and $230,000,000

19 for fiscal year 1997, to be used for capital investment ex20 penditures.

21 ‘‘(c) INTERCITY RAIL PASSENGER STATION.—There

22 are authorized to be appropriated to the Secretary to make

23 grants to Amtrak $40,000,000 for fiscal year 1995 and

24 $50,000,000 for fiscal year 1996, to be used for engineer25 ing, design, and construction activities to enable the

26 James A. Farley Post Office in New York, New York, to
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1 be used as a train station and commercial center and for

2 necessary improvements and redevelopment of the existing

3 Pennsylvania Station and associated service building in

4 New York, New York. The Secretary is authorized to re5 tain from these funds such amounts as the Secretary shall

6 deem appropriate to undertake the environmental and his7 toric preservation analyses associated with the project.

8 ‘‘(d) TRANSITION COSTS.—There are authorized to

9 be appropriated to the Secretary to make grants to Am10 trak $100,000,000 for fiscal year 1996, to be used for

11 transition costs associated with a long-term restructuring

12 of the Corporation.

13 ‘‘(e) NORTHEAST CORRIDOR IMPROVEMENT PRO14 GRAM.—There are authorized to be appropriated to the

15 Secretary to make grants to Amtrak $235,000,000 for fis16 cal year 1996, and $200,000,000 for fiscal year 1997, to

17 be used for capital expenditures under section 24909 of

18 this title.

19 ‘‘(f) MANDATORY PAYMENTS.—(1) Not more than

20 $120,000,000 for the fiscal year ending September 30,

21 1996, and not more than $120,000,000 for the fiscal year

22 ending September 30, 1997, may be appropriated to the

23 Secretary to pay—

24 ‘‘(A) tax liabilities under section 3221 of the

25 Internal Revenue Code of 1986 due in such fiscal
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1 years in excess of amounts needed to fund benefits

2 for individuals who retire from Amtrak and for their

3 beneficiaries; and

4 ‘‘(B) obligations of Amtrak under section 8(a)

5 of the Railroad Unemployment Insurance Act (45

6 U.S.C. 358(a)) due in such fiscal years in excess of

7 its obligations calculated on an experience-rated

8 basis.

9 ‘‘(2) Amounts appropriated under this subsection

10 shall not be considered a United States Government sub11 sidy of Amtrak but rather a subsidy of the railroad retire12 ment system as a whole.

13 ‘‘(3) Notwithstanding the payment by the Secretary

14 of certain of Amtrak’s obligations under the Internal Rev15 enue Code and the Railroad Unemployment Insurance Act

16 under subsection (f)(1) above, Amtrak remains responsible

17 for meeting its financial obligations under applicable law

18 over and above the amounts paid by the Secretary to the

19 Internal Revenue Service and Railroad Retirement Board

20 on Amtrak’s behalf.

21 ‘‘(g) AVAILABILITY OF APPROPRIATIONS.—Amounts

22 appropriated under this section remain available until ex23 pended.

24 ‘‘(h) LIMITATIONS ON USE.—Amounts appropriated

25 under this section may not be used to subsidize operating
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1 losses of commuter rail passenger or rail freight transpor2 tation.’’.

3 (b) CONFORMING AMENDMENT.—Section 24304(d)

4 of title 49, United States Code, is amended by deleting

5 ‘‘24104(d)’’ and by inserting in lieu thereof ‘‘24104’’.

6 SEC. 6. EXPANDING THE SCOPE OF COLLECTIVE BARGAIN7 ING ON CONTRACTING ACTIVITIES.

8 Section 24312(b) of title 49, United States Code, is

9 amended by adding at the end the following new para10 graph:

11 ‘‘(3) This subsection does not bar Amtrak and

12 a union representing Amtrak employees from nego13 tiating a collective bargaining agreement that per14 mits Amtrak greater flexibility in contracting out

15 work than permitted under paragraph (1). Para16 graph (1) shall not apply to any bargaining unit cov17 ered by a contract containing provisions that are in18 consistent with paragraph (1).’’.

19 SEC. 7. REPORTS AND AUDITS.

20 Section 24315 of title 49, United States Code, is

21 amended—

22 (1) in subsection (a)(1) redesignating subpara23 graphs (D), (E), (F), (G), and (H) as subpara24 graphs (E), (F), (G), (H), and (I), and by inserting

25 after paragraph (C) the following:
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1 ‘‘(D) the long-term profit or loss;’’; and

2 (2) in subsection (b) by redesignating para3 graph (2) as (3), and by inserting after paragraph

4 (1) the following:

5 ‘‘(2) Amtrak shall include in the report required

6 under paragraph (1) projections of the anticipated

7 benefits of the projects proposed for funding under

8 part C of subtitle V of title 49, United States Code,

9 and a report on the benefits actually realized from

10 all projects previously funded under part C begin11 ning with funds provided in fiscal year 1995. The

12 report shall include an identification of improve13 ments in the quality of service offered by Amtrak,

14 facility improvements that demonstrate a productiv15 ity gain, equipment improvements that lower operat16 ing costs, environmental benefits (including air qual17 ity and land use benefits), enhancements to local

18 transportation needs, enhancements to mobility of

19 physically and economically disadvantaged persons,

20 any improvement of the revenue-to-cost ratio, any

21 reduced dependence on Federal operating support,

22 and reductions in the need for alternative transpor23 tation investments. To the extent practicable, the

24 benefits addressed in each report shall also be ex25 pressed as return on invested capital.’’.
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1 SEC. 8. MISCELLANEOUS REPEALS AND TECHNICAL

2 AMENDMENTS IN CHAPTER 243.

3 (a) TECHNICAL AMENDMENT.—Section

4 24302(a)(1)(D) of title 49, United States Code, is amend5 ed to read as follows:

6 ‘‘(D) Two individuals selected by the Presi7 dent from a list of five names submitted by

8 commuter authorities providing service over rail

9 properties owned by Amtrak.’’.

10 (b) AUTHORITY.—Section 24305(c) of title 49,

11 United States Code, is amended—

12 (1) by deleting the word ‘‘and’’ at the end of

13 paragraph (5);

14 (2) by adding a new paragraph (6) as follows:

15 ‘‘(6) consult and cooperate, to the extent fea16 sible, on request of eligible applicants proposing a

17 technology demonstration authorized and financed

18 under a law of the United States, with those appli19 cants; and’’; and

20 (3) by renumbering existing paragraph (6) as

21 paragraph (7).

22 (c) LABOR STANDARDS.—Section 24312(a) of title

23 49, United States Code, is amended by deleting ‘‘,

24 24701(a) or 24704(b)(2)’’ and inserting in lieu thereof ‘‘or

25 24701(a)’’.
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1 (d) REPEALS.—Sections 24310 and 24314 of title

2 49, United States Code, are repealed.

3 (e) CONFORMING.—The remaining sections of chap4 ter 243 of title 49, United States Code, are renumbered

5 appropriately.

6 SEC. 9. ELIMINATION OF AMTRAK COMMUTER SERVICE

7 CORPORATION.

8 Chapter 245 of title 49, United States Code, and the

9 corresponding item in the analysis of subtitle V is repealed

10 except that section 24501(g) is transferred to section

11 24301 as new subsection (o) at the end thereof.

12 SEC. 10. OPERATION OF INTERCITY RAIL PASSENGER

13 SERVICE.

14 Chapter 247 of title 49, United States Code, is

15 amended—

16 (1) by revising the heading of section 24701 to

17 read as follows:

18 ‘‘§ 24701. Operation of intercity rail passenger serv19 ice’’;

20 (2) by amending section 24701(a) to read as

21 follows:

22 ‘‘(a) BY AMTRAK.—Amtrak is authorized to provide

23 cost-effective intercity rail passenger service on those

24 routes throughout the United States where it can serve

25 an important transportation function and it can, over the
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1 long term, cover the full operating costs associated with

2 providing the service either through fares or contributions

3 from State and local governments or other interested par4 ties. Amtrak’s decisions regarding the initiation, retention,

5 modification or elimination of intercity rail passenger serv6 ice shall be made on the basis of available financial re7 sources and any agreement Amtrak enters into with a

8 State or local government or private entity to support rail

9 passenger service should be made with the understanding

10 that Federal funding for operating expenses will decrease

11 over the fiscal years 1996 through 2001.’’; and

12 (3) by amending section 24702 to read as

13 follows:

14 ‘‘§ 24702. Route and Service Changes

15 ‘‘Amtrak shall adjust its route structure as it deems

16 appropriate applying sound business and transportation

17 principles. Prior to implementing a route discontinuance

18 that would remove all service on a route or cut service

19 by more than half, Amtrak shall provide affected States,

20 cities and other interested parties with advance notice of

21 at least ninety days in order to enable any of the affected

22 parties to provide financial support for the route that

23 would allow for continued operation. In an emergency,

24 Amtrak may implement a route discontinuance with less

25 than ninety days notice but shall in any event provide as
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1 much notice as possible. An emergency shall exist when

2 the Secretary of Transportation determines, on the basis

3 of information and data supplied by Amtrak, that funds

4 available to Amtrak for the fiscal year are not sufficient

5 to meet estimated operating costs and significant harm to

6 the Corporation would result if immediate action is not

7 taken to reduce costs through route reductions and service

8 eliminations.’’.

9 SEC. 11. EXPANDING THE SCOPE OF COLLECTIVE BARGAIN10 ING ON LABOR PROTECTIVE ARRANGE11 MENTS.

12 Section 24706 of title 49, United States Code, is

13 amended:

14 (1) by revising the heading of section 24706 to

15 read as follows:

16 ‘‘§ 24706. Employee Protective Arrangements’’;

17 (2) by repealing subsections (a) and (b);

18 (3) by deleting ‘‘(c) EMPLOYEE PROTECTIVE

19 ARRANGEMENTS.—’’ in subsection (c); and

20 (4) by deleting paragraph (6) and by inserting

21 in lieu thereof the following new paragraphs (6) and

22 (7):

23 ‘‘(6) For purposes of this section, employees of

24 Amtrak refers to employees occupying positions sub-
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1 ject to collective bargaining under the Railway

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

3 ‘‘(7) Notwithstanding the other provisions of

4 this section and the implementing protective ar5 rangement established for Amtrak employees (Ap6 pendix C–2 to Basic Agreement between Amtrak

7 and the freight railroads), Amtrak and unions rep8 resenting Amtrak employees may negotiate new em9 ployee protective arrangements for Amtrak employ10 ees that differ from the requirements of other por11 tions of this section and from the terms of Appendix

12 C–2. If a new protective arrangement is negotiated,

13 provisions of this section and the terms of Appendix

14 C–2 that are inconsistent with the new protective ar15 rangement shall cease to apply to the bargaining

16 unit covered by the new protective arrangement.’’.

17 SEC. 12. MISCELLANEOUS REPEALS IN CHAPTER 247.

18 (a) REPEALS.—Sections 24703, 24704, 24705,

19 24707, and 24708 of title 49, United States Code, are

20 repealed.

21 (b) CONFORMING.—The remaining sections of chap22 ter 247 of title 49, United States Code, are renumbered

23 appropriately.
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1 SEC. 13. BOSTON–NEW HAVEN ELECTRIFICATION PROJECT.

2 (a) ELECTRIFICATION SYSTEM.—Section 24902(f) of

3 title 49, United States Code, is amended—

4 (1) by inserting ‘‘(1)’’ before ‘‘Improvements

5 under’’; and

6 (2) by adding at the end the following new

7 paragraph:

8 ‘‘(2) Amtrak shall design and construct an elec9 trification system between Boston, Massachusetts,

10 and New Haven, Connecticut. The electrification

11 system shall be designed and constructed to accom12 modate the installation of a third mainline track be13 tween Davisville and Central Falls, Rhode Island, to

14 be used for double-stack freight service to and from

15 the Port of Davisville. Wherever practicable, Amtrak

16 shall use portal structures and realign existing

17 tracks on undergrade and overgrade bridges to mini18 mize the width of the right-of-way required to add

19 the third track. Amtrak shall take such other steps

20 as may be required to coordinate and facilitate de21 sign and construction work.’’.

22 (b) AMTRAK REPORT.—Amtrak shall, not later than

23 six months after the date of enactment of this Act, trans24 mit to the Congress a report detailing its electrification

25 design between Davisville and Central Falls, Rhode Island,
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1 and describing efforts to comply with section 24902(f)(2)

2 of title 49, United States Code.

3 SEC. 14. COMPENSATION FOR TRANSPORTATION OVER THE

4 NORTHEAST CORRIDOR.

5 (a) COMPENSATION FOR TRANSPORTATION OVER

6 CERTAIN RIGHTS OF WAY AND FACILITIES.—Section

7 24904(c)(2) of title 49, United States Code, is amended—

8 (1) by adding after the words ‘‘rail freight

9 transportation’’ in the first sentence ‘‘or between

10 intercity rail passenger and commuter rail passenger

11 transportation’’;

12 (2) by adding after the words ‘‘rail freight car13 rier’’ in the second sentence ‘‘or a commuter author14 ity’’; and

15 (3) by adding at the end of the second sentence

16 ‘‘or commuter authority.’’.

17 (b) NORTHEAST CORRIDOR COST DISPUTE.—Section

18 1163 of the Northeast Rail Service Act of 1981 (45 U.S.C.

19 1111) is repealed.

20 SEC. 15. NORTHEAST CORRIDOR IMPROVEMENT PROJECT.

21 Section 24909 of title 49, United States Code, is

22 amended—

23 (1) by revising subsection (a) to read as follows:

24 ‘‘(a) CAPITAL IMPROVEMENTS.—Amtrak shall make

25 capital improvements for the Northeast Corridor improve-
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1 ment project under this title as necessary to operate reli2 able, high-speed rail passenger service, to enhance capac3 ity for intercity and commuter passenger service, and as

4 otherwise may be necessary to ensure continued reliable

5 high-speed service. Amtrak shall also acquire train equip6 ment to be used on the Northeast Corridor, mitigate envi7 ronmental impacts related to the Northeast Corridor im8 provement project, and provide adequate parking at, and

9 improve Northeast Corridor rail stations.’’;

10 (2) by revising subsection (b) to read as follows:

11 ‘‘(b) RHODE ISLAND THIRD TRACK.—(1) There are

12 authorized to be appropriated to the Secretary to make

13 grants to the State of Rhode Island, $10,000,000 for the

14 fiscal year ending September 30, 1996, and $10,000,000

15 for the fiscal year ending September 30, 1997, to be used

16 to design and construct a third track on the Northeast

17 Corridor between Davisville and Central Falls, Rhode

18 Island.

19 ‘‘(2) The third track shall be designed and con20 structed with sufficient clearance to accommodate double

21 stack freight cars.

22 ‘‘(3) The funds provided by the Secretary to the State

23 of Rhode Island to design and construct the third track

24 shall be matched by the State of Rhode Island or its des25 ignee on a dollar for dollar basis. Notwithstanding other
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1 provisions of law, the State of Rhode Island is authorized

2 to use other Federal transportation funds available to the

3 State as the required matching funds.’’;

4 (3) by revising subsection (c) to read as follows:

5 ‘‘(c) AVAILABILITY OF AMOUNTS.—Amounts appro6 priated under this section remain available until ex7 pended.’’; and

8 (4) by striking subsections (d), (e), (f), and (g).

9 SEC. 16. EFFECTIVE DATE.

10 Except as otherwise provided, this Act is effective on

11 the date of enactment.

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