```

[Senate Report 109-143]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 235

109th Congress 
 1st Session                     SENATE                          Report
                                                                109-143
_______________________________________________________________________

         PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2005

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                       S. 1516

DATE deg.October 18, 2005.--Ordered to be printed

                       

                      U.S. GOVERNMENT PRINTING OFFICE

49-010                       WASHINGTON : 2004

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred ninth congress
                             first session

                     TED STEVENS, Alaska, Chairman
                 DANIEL K. INOUYE, Hawaii, Co-Chairman
JOHN McCAIN, Arizona                 JOHN D. ROCKEFELLER IV, West 
CONRAD BURNS, Montana                    Virginia
TRENT LOTT, Mississippi              JOHN F. KERRY, Massachusetts
KAY BAILEY HUTCHISON, Texas          BYRON L. DORGAN, North Dakota
OLYMPIA J. SNOWE, Maine              BARBARA BOXER, California
GORDON H. SMITH, Oregon              BILL NELSON, Florida
JOHN ENSIGN, Nevada                  MARIA CANTWELL, Washington
GEORGE ALLEN, Virginia               FRANK LAUTENBERG, New Jersey
JOHN E. SUNUNU, New Hampshire        E. BENJAMIN NELSON, Nebraska
JIM DEMINT, South Carolina           MARK PRYOR, Arkansas
DAVID VITTER, Louisiana
                    Lisa Sutherland, Staff Director
             Christine Drager Kurth, Deputy Staff Director
                      David Russell, Chief Counsel
     Margaret Cummisky, Democratic Staff Director and Chief Counsel
 Samuel Whitehorn, Democratic Deputy Staff Director and General Counsel

                                                       Calendar No. 235
109th Congress                                                   Report
                                 SENATE
 1st Session                                                    109-143

======================================================================
 
         PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2005

                                _______
                                

                October 18, 2005.--Ordered to be printed

                                _______
                                

       Mr. Stevens, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1516]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill joint resolution deg. (S. 
H.R. deg. 1516) TITLE deg. to reauthorize 
Amtrak, and for other purposes, having considered the same, 
reports favorably thereon without amendment deg. 
with amendments deg. with an amendment (in the nature 
of a substitute) and recommends that the bill joint 
resolution deg. (as amended) do pass.

                          Purpose of the Bill

  S. 1516, the Passenger Rail Investment and Improvement Act of 
2005 (PRIIA) authorizes Federal funding for the operation and 
development of intercity passenger rail service; makes 
improvements to Federal passenger rail transportation policy 
and activities; enhances passenger rail security; and 
reauthorizes Amtrak for 6 years.

                          Background and Needs

  The National Railroad Passenger Corporation, known as Amtrak, 
was formed as a non-governmental corporation in 1971 through 
the enactment of the Rail Passenger Service Act of 1970. 
Creation of Amtrak relieved the then-financially beleaguered 
private railroad sector of their statutory obligations to offer 
intercity passenger transportation and to preserve and 
reinvigorate intercity passenger rail service throughout the 
nation. Amtrak was established as a for-profit corporation--a 
goal the Corporation has never met--and was expected to operate 
without Federal support beginning in 1973, despite inheriting 
routes and services that were generally unprofitable when 
operated by the private railroads immediately preceding 
Amtrak's creation. Since its inception, Amtrak has received 
more than $29 billion in operating and capital support from the 
Federal government, mostly in the form of annual 
appropriations.
  While intercity passenger rail service patronage steadily 
declined for decades in the United States following the second 
World War, recent increases in highway and aviation congestion, 
rising fuel costs, available rail capacity, and minimal 
environmental impacts have all made intercity passenger rail 
service a growing and increasingly important part of the 
nation's multi-modal transportation system. Today, Amtrak 
serves more than 500 stations in 46 States (Amtrak does not 
offer rail service in Alaska, Hawaii, South Dakota, or Wyoming) 
on over more than 22,000 route miles. Amtrak directly owns 730 
route miles, primarily between Massachusetts and Washington, 
D.C. on Amtrak's Northeast Corridor (NEC) and in the State of 
Michigan, several station facilities including Pennsylvania 
Station in New York, New York and Chicago Union Station in 
Chicago, Illinois, and several major maintenance and repair 
facilities. In addition to infrastructure, Amtrak owns or 
leases 425 locomotives, 2,141 railroad cars, and numerous 
pieces of maintenance of way equipment, vehicles, and other 
associated assets. Outside of the NEC, Amtrak operates over 
tracks owned by freight railroads through access rights 
provided by law and either owns or contracts for the use of 
station facilities.
  Amtrak's services can be classified into 4 distinct 
categories:
     NEC Services.--Three classes of trains (regional, 
metroliner, and high-speed Acela Express) offer service between 
city pairs along the NEC, serving the densely populated and 
congested Northeast. Ridership on these services accounted for 
roughly 45 percent of Amtrak's total ridership in 2004;
     Long-Distance Services.--Amtrak's long-distance 
trains generally travel over 750 miles and connect different 
regions of the country, serving both major cities and sparsely-
populated rural areas where other transportation options are 
often limited. Ridership on these services accounted for 
roughly 16 percent of Amtrak's total ridership in 2004;
     Corridor Services.--Amtrak's corridor services 
connect intra- or interstate city pairs within 750 miles of 
each other. Amtrak generally receives some financial support 
from the States for the operational and capital costs of these 
services. Ridership on these services accounted for roughly 39 
percent of Amtrak's total ridership in 2004;
     Commuter Services.--Amtrak is also the nation's 
largest provider of contract-commuter service for State and 
regional authorities, operating rail commuter service in 
California, Maryland, Connecticut, Washington, and Virginia, 
and serving an additional 61.1 million people per year.
  Since Amtrak's inception, Congress has provided Federal 
funding for Amtrak's operational and capital needs, either 
directly to Amtrak or through a Department of Transportation 
(DOT) grant process, which is currently the case. Federal 
funding is provided through the annual appropriations process 
from discretionary funds, and can vary significantly from year 
to year, depending on overall budget conditions and political 
support, as shown below.

            FEDERAL CAPITAL AND OPERATING FUNDS FOR AMTRAK:

        FY 1997                     $0.8 billion
        FY 1998                     $1.7 billion
        FY 1999                     $1.7 billion
        FY 2000                     $0.6 billion
        FY 2001                     $0.5 billion
        FY 2002                     $0.8 billion
        FY 2003                     $1.0 billion
        FY 2004                     $1.2 billion
        FY 2005                     $1.2 billion
  Amtrak's most recent authorization, the Amtrak Reform and 
Accountability Act of 1997 (Reform Act), reauthorized Amtrak 
for 5 years totaling $5.3 billion for FYs 1998-2002 and 
required Amtrak to achieve operational self-sufficiency 
(``operational self-sufficiency'' was defined to mean that 
Amtrak's operating costs, excluding depreciation, would not be 
funded with Federal funds) by December 2002--a goal which the 
Corporation did not meet. During these years, limited Federal 
funding, failed Amtrak revenue initiatives, and an 
unwillingness by the railroad to exit services perceived as 
essential to their public mission led to the failure to 
dramatically reduce the corporation's reliance on Federal 
operating subsidies as called for by the Reform Act. Therefore, 
in order to survive with the available revenues and Federal 
monies, Amtrak curtailed or deferred many needed capital 
investments and took on large amounts of private debt financing 
to fund its basic system needs. Today, Amtrak has over $3 
billion in debt, with associated servicing costs averaging $300 
million annually. The lack of continuous capital investment in 
both rolling stock and infrastructure created a serious problem 
of deferred maintenance, primarily on the NEC, which currently 
undermines Amtrak's train performance and reliability, and 
therefore its revenue potential. During the time of the Reform 
Act, Amtrak's subsidy per passenger declined from about $80 in 
1998 to about $22 in 2001, but this was due in large part to 
Amtrak's heavy borrowing and liquidation of assets to generate 
cash, leaving it with a large debt service bill today. In 2002, 
the final year of the Reform Act, Amtrak received a Federal 
loan and an emergency appropriation to avoid bankruptcy and its 
subsidy jumped to nearly $40 per passenger. Increases in the 
per passenger subsidy were similarly observed over the next 2 
years, reaching nearly $44 in 2003 and $48 in 2004.
  Under current management, Amtrak has undertaken significant 
efforts to reduce costs, restructure services, rebuild 
equipment and return infrastructure to a state-of-good-repair. 
Management reforms have led to reduced or stable operating 
costs, the termination of unproductive business lines, and 
increased ridership. Headcount at the Corporation has dropped 
by 3,900 since 2002, while the number of daily trains has risen 
from 265 in 2002 to 300 today. Amtrak's ridership grew 4.3 
percent in 2004 to a record level of 25.1 million passengers. 
Significant challenges and funding needs remain. Amtrak and the 
DOT Inspector General (IG) identified roughly $5 billion in 
deferred maintenance and capital backlog projects needed to 
return the NEC to a state-of-good-repair. On-time performance 
across Amtrak's system remains dismally low, and Amtrak's 
flagship fleet of high-speed trains, the Acela Express, were 
sidelined for several months due to brake problems. Acela 
Express trains only recently returned to service. The 
Corporation and its operating unions remain deadlocked in 
longstanding contract negotiations. Additionally, the 
Administration has proposed eliminating all funding for Amtrak, 
except for limited funds to be available to continue commuter 
rail services on the NEC should Amtrak enter bankruptcy.
  Responding to calls for reforms and improved and expanded 
service, Amtrak's Board of Directors developed strategic reform 
initiatives (Board Plan) in April, 2005 to guide the future 
actions of the Corporation. Accompanying this plan was a 
request for $1.82 billion in Federal funding to support FY 06 
capital investment programs and to support national operations.
  The Board Plan sets forth several internal efforts to improve 
the railroad while also calling upon Congress to adequately 
fund the system and enact changes in statute to facilitate the 
achievement of certain goals. The 4 fundamental objectives of 
the Board Plan are:
     Development of passenger rail corridors utilizing 
a Federal/State matching approach common to all other modes 
(generally 80/20). States, not Amtrak, would lead the 
development of the corridors, a number of which have already 
been federally designated, and Amtrak and others may 
competitively bid to provide the service;
     Return of the NEC infrastructure to a state-of-
good-repair and operational reliability, with phased-in 
financial responsibility for capital and operating costs 
assumed on a proportionate basis by all users, including 
Amtrak, freight and commuter railroads;
     Establishment of phased-in financial performance 
thresholds for Amtrak's existing 15 long-distance trains and 
any future similar proposed service; and
     Creation of markets for competition, private 
commercial participation and industrial reforms in various rail 
functions. This includes competition among operators, including 
Amtrak, for new corridor routes.

                         Summary of Provisions

  To address the challenges facing Amtrak and to promote the 
expansion and improvement of intercity passenger rail service, 
the Passenger Rail Investment and Improvement Act of 2005 
(PRIIA) authorizes stable and predictable funding for long-term 
investments and improvements to intercity passenger rail 
service and sets forth strict guidelines for improvements to 
Amtrak's long-distance and corridor routes to reduce Amtrak's 
operating subsidy. PRIIA incorporates features from the Board's 
Strategic Plan, DOT's reauthorization proposal, recommendations 
by the DOT IG, and previous Senate reauthorization proposals.
  PRIIA is a 6-year reauthorization bill (FY 2006-2011)--the 
same time frame as proposed in the Board Plan. The bill 
authorizes funding for Amtrak's capital and operating needs to 
maintain current operations, upgrade equipment, and return the 
NEC to a state-of-good-repair. Over the life of the bill, 
Amtrak's operating subsidy is reduced by 40 percent through 
cost cutting, restructuring, and reform while capital funding 
to Amtrak and the States for intercity passenger rail projects 
is increased.

                                                 FUNDING SUMMARY
                                              (dollars in millions)
----------------------------------------------------------------------------------------------------------------
                                                                                                           Avg.
                                            2006     2007     2008     2009     2010     2011    Total    Annual
----------------------------------------------------------------------------------------------------------------
Amtrak 5-Year Plan Operating Subsidy         580      601      642      683      724      765    3,995      666
 Request
----------------------------------------------------------------------------------------------------------------
PRIIA Operating Subsidy Authorizations       580      590      600      575      535      455    3,335      556
----------------------------------------------------------------------------------------------------------------
Capital                                      788      810      821      821      821      821    4,893      816
----------------------------------------------------------------------------------------------------------------
State Grants                                  25      100      250      300      350      400    1,425      238
----------------------------------------------------------------------------------------------------------------
Debt Repayment                               278      282    289.8    207.8      270    297.3    1,725      287
----------------------------------------------------------------------------------------------------------------
Total                                      1,671    1,782    1,961    2,004    1,976    1,973   11,378    1,896
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------

  The authorization levels for PRIIA are based, in part, on 
future operating and capital spending estimates developed by 
Amtrak and the DOT IG. The DOT's own Amtrak reauthorization 
proposal did not recommend specific funding amounts, but rather 
recommended ``such sums as necessary'' for the Corporation and 
related intercity passenger rail programs. Specifically, the 
amounts for capital include authorizations for the NEC and 
other corridors, long-distance trains, and Amtrak's system.
  Through the operational reforms and flexibilities provided in 
the bill, Amtrak is expected to achieve operational 
efficiencies that will result in cost reductions and revenue 
increases that will result in a forty percent reduction (in 
real terms) in its Federal operating subsidy over the 6-year 
term of the bill. This reduction is reflected in the authorized 
funding levels. Sources of savings include: restructuring and 
streamlining long-distance train service; increased 
productivity; and, outsourcing and streamlining of food service 
and station operations. Amtrak revenues should increase due to 
increased State contributions for corridor service and 
increased passenger revenue due to service enhancements.

AMTRAK REFORMS AND OPERATIONAL IMPROVEMENTS

  PRIIA requires several major Amtrak reform initiatives 
designed to increase financial and operation transparency and 
accountability, reduce Federal operating subsidies, and improve 
train performance and customer service.
  The bill requires Amtrak to develop a new financial and cost 
accounting system for Amtrak operations and a 5-year financial 
plan that is consistent with the authorized funding levels in 
the bill. Amtrak's current accounting system is limited by both 
data quality and analysis depth, which hinders the development 
of accurate business plans and service models. This requirement 
will ensure increased transparency and better data inputs and 
analysis on which to base sound business decisions.
  To address the staggering debt-load facing Amtrak, which 
currently consumes a significant portion of the Corporation's 
revenues and Federal assistance, the bill directs the Secretary 
of the Treasury, in consultation with the Secretary of 
Transportation and Amtrak, to enter into negotiations to 
restructure Amtrak's debt within 1 year after enactment. If 
such a restructuring results in significant savings to Amtrak 
or the Federal government, the Secretary of the Treasury may 
assume the restructured debt, with the full faith and credit 
backing of the United States. If no restructuring is possible, 
Amtrak remains solely responsible for the debt without any 
Federal guarantee, as is the case currently. This approach 
provides an incentive for creditors to renegotiate and 
restructure current agreements in a way favorable to Amtrak in 
exchange for certainty of repayment. Reductions in principal 
and interest costs to Amtrak achieved through such a 
restructuring should lower Amtrak's need for Federal operating 
assistance, thus saving the public money.
  PRIIA expands the current Amtrak Board of Directors by adding 
an additional member and the Amtrak President, bringing the 
total number of members to 9. Further, the bill seeks to 
establish a professional Board with the expertise to 
effectively lead the Corporation by requiring members to have a 
background in rail, transportation, or business. Additionally, 
the bill modifies the procedure for congressional consultation 
of member appointments and ensures that the Board has 
bipartisan representation. These steps should help to hasten 
the Senate confirmation process for Board members and ensure a 
full Board.
  To track and enhance customer service, train performance and 
reliability, PRIIA requires the Federal Railroad Administration 
(FRA) and Amtrak, in consultation with the Surface 
Transportation Board (STB) and the freight railroads on whose 
track Amtrak operates, to jointly develop metrics and standards 
for measuring the performance and service quality of intercity 
train operations. Such metrics and standards shall address 
cost-recovery, on-time performance, ridership per train mile, 
on-board and station services, and the connectivity of routes. 
The bill further directs the Federal Railroad Administration to 
collect metric data and publish quarterly reports on train 
performance and service quality.
  PRIIA also directs the FRA to retain an independent 
consultant to develop and recommend objective methodologies for 
route and service decisions. The methodologies shall give 
consideration to cost recovery and on-time performance of 
existing routes, connections with other routes, transportation 
needs of communities not served by other public transportation, 
and the methodologies used by rail service providers in other 
countries. Amtrak shall consider adoption of the methodologies 
recommended by the consultant. Amtrak often faces requests from 
the public and its representatives to begin new service, alter 
existing routes, or changes frequencies. This effort is 
expected to provide Amtrak with new options to consider when 
making decisions about when, where, and how often to run trains 
and provide the public with a better understanding of the 
considerations impacting such decisions.
  States wishing to directly, or through another rail carrier, 
operate intercity passenger rail corridor service may seek use 
of Amtrak equipment, facilities, and reservation systems. If 
Amtrak and a State fail to reach an agreement governing such 
use, PRIIA directs the STB to determine reasonable terms of use 
and allows STB to direct Amtrak to make such assets available 
under such terms, so long as such use is essential to the 
planned service and will not impair or degrade Amtrak's other 
operations.

NORTHEAST CORRIDOR AND SHORT-DISTANCE ROUTES

  The NEC is Amtrak's flagship asset. The Corporation operates 
the majority of its passenger trains on this line and the NEC 
provides Amtrak with the bulk of its patronage and revenue. 
However, the NEC, as Amtrak's main capital asset, also has the 
greatest capital needs and poses the largest set of future 
challenges to the Corporation. The intensity of current 
intercity and commuter operations coupled with years of 
deferred maintenance and limited capital spending has 
significantly impaired operations. While the on-time 
performance on the NEC is significantly better than the 
performance of some of Amtrak's long-distance trains, Amtrak's 
ownership and dispatching control of the NEC should mean 
reliable and on-time service, yet regular problems with 
Corridor infrastructure, equipment, and trackage consistently 
impacts train performance.
  To address these issues, PRIIA requires Amtrak to develop a 
capital spending plan to return the NEC to a state-of-good-
repair by the end of 2011. Some of the capital funds authorized 
in the bill are available to carry out the plan at a 100 
percent Federal share. The bill also establishes an advisory 
commission to provide advice and oversight of the NEC's 
operations and infrastructure and to plan for the Corridor's 
future needs. The commission membership would represent Amtrak, 
the FRA, and the 13 States along the NEC. Additionally, to 
address historical differences in the fees paid to Amtrak for 
NEC access by various northeastern commuter authorities and to 
ensure that Amtrak is charging adequate fees to cover the 
associated costs, the commission is required to develop a 
proposal for determining the proper cost allocations and access 
fees for NEC passenger and commuter trains. If Amtrak and the 
States fail to develop or implement a proposal for determining 
such costs and assigning commiserate fees, PRIIA authorizes STB 
to impose restructured fees for the users of the NEC.
  For other short distance corridor's services, Amtrak and the 
States, in consultation with FRA, must develop uniform cost 
allocation methodology to assign costs and determine 
compensation levels from States for the services Amtrak 
provides. Currently, States pay widely varying amounts to 
Amtrak to cover capital and operating costs associated with 
these services. PRIIA requires Amtrak and all States in which 
short distance trains are operated to settle on a cost 
allocation formula that eliminates this discrepancy, allowing 
all States to pay like amounts for like services. If Amtrak and 
the States do not develop or implement the proposed formula, 
the STB would be authorized to impose restructured compensation 
rates.

LONG-DISTANCE TRAINS

  Amtrak's 15 long-distance trains serve 41 States connecting 
major regional population centers across the nation. These 
trains serve several travel markets simultaneously, providing 
basic public transportation in rural regions of the country 
where other options are limited, serving leisure travelers and 
tourists, and providing intercity corridor service between city 
pairs along a given route. Long distance trains come in various 
sizes and configurations, depending on the markets served, with 
trains featuring a mix of first class services, sleeping 
accommodations, coaches, dining cars, and baggage equipment. 
All of the long-distance trains incur operating losses and 
require significant Federal operating subsidies. The long-
distance services also routinely suffer significant delays en 
route for a number of reasons, including delays caused by 
freight train interference as they traverse freight railroad-
owned trackage, which reflect Amtrak's reliability and the 
revenue potential for these services.
  While some have called for the wholesale elimination of these 
trains, PRIIA requires that significant steps be taken to try 
to improve or restructure these services in order to reduce 
costs and enhance service while continuing to provide basic 
long-distance service to meet the mobility needs of rural 
communities that may not have access to other transportation 
alternatives where they can be justified. The bill requires 
Amtrak to rate the performance of its long-distance routes and 
establish performance improvement plans for all long-distance 
trains, beginning with the 5 lowest ranked routes. As Amtrak 
develops these plans, it must consider restructuring these 
routes, improving on-board services, changing amenities such as 
sleeper car service and food service, seeking revenue 
contributions from States or other sources, and changing train 
frequencies. Amtrak should also consider the feasibility of 
restructuring long-distance trains into a series of 
interconnected corridors. Such interconnected corridors may be 
able to provide better frequencies and operate at times that 
are more convenient to passengers on the route. Because 
Amtrak's long-distance trains generally operate night and day, 
a number of communities along the route receive service only at 
inconvenient times such as late in the middle of the night. If 
Amtrak fails to implement a plan for a specific route in 
accordance with the timetable set in the bill or if the plan 
does not lead to the achievement of the stated objectives, FRA 
has the authority to withhold Federal operating support for 
that route.
  In an additional effort to improve service, the bill 
establishes a competitive bid program, administered by the FRA, 
allowing freight railroads to bid to operate a limited number 
of long-distance trains over their current routes. This program 
will introduce competition in an attempt to reduce operating 
costs and improve service and will offer an opportunity to 
observe passenger train performance over freight railroads when 
the host railroad is entirely in charge of the provision of 
service. Operating subsidies for any operators under this 
program are capped at the amount provided in the previous year. 
Any Amtrak employee adversely affected by the cessation of the 
operation of a route will either be relocated to other 
positions within Amtrak, provided financial incentives in 
exchange for the voluntary termination of their employment, or 
paid termination payments guaranteed under existing collective 
bargaining agreements.

OTHER PROVISIONS

  To address on-time performance and service issues impacting 
intercity passenger trains operating over freight railroad 
trackage, the bill directs the STB to issue a quarterly on-time 
service report. If for a particular route, a passenger train's 
on-time performance record falls below 80 percent for 2 
consecutive quarters or fails to meet other requirements set by 
the FRA, STB will investigate the causes and make 
recommendations to Amtrak or a freight railroad how to reduce 
delays. If the STB determines that delays to passenger trains 
are the result of freight railroads not providing priority 
access to Amtrak, as required under law, the Board may take 
appropriate action to enforce Amtrak's priority access rights.
  In an effort to encourage the development of new and improved 
intercity passenger rail services, PRIIA creates a new State 
Capital Grant program for intercity passenger rail capital 
projects as proposed by the Administration and based on the New 
Starts transit capital program administered by the Federal 
Transit Administration (FTA). The program authorizes grants to 
a State, or a group of States, to pay for the capital costs of 
facilities and equipment necessary to provide new or improved 
intercity passenger rail. The Federal match is 80 percent. The 
Secretary of Transportation will award grants for projects 
based on economic performance, expected ridership and other 
factors.
  Complementing the State Capital Grant program, PRIIA 
authorizes States and Amtrak to issue Federal tax credit bonds 
to finance intercity passenger rail capital projects, should 
such bonds be enacted into law. The Senate Finance Committee 
has jurisdiction over the creation of such bonds and the 
Commerce Committee hopes that the Finance Committee will purse 
their creation. The availability of tax credit bonds would 
provide States and Amtrak with a multi-year, dedicated source 
of capital funding, allowing for long-term development projects 
and efficient construction practices. Under PRIIA, bond 
proceeds would be available for projects that are contained in 
a State's rail plan. For Amtrak, projects must be contained 
within the Corporation's 5-year plan and Amtrak may not issue 
bonds without the approval of the Secretary of Transportation.
  PRIIA includes the Amtrak and passenger rail security and 
tunnel life/safety provisions from the Rail Security Act of 
2004. This bill was unanimously passed by the Senate in 2004 
and reflects the Committee's long-standing interest in 
enhancing rail security.

                          Legislative History

  S. 1516 was introduced on July 27, 2005, by Senator Lott and 
co-sponsored by Senators Lautenberg, Stevens, Inouye, Burns, 
and Hutchison, and was referred to the Senate Committee on 
Commerce, Science, and Transportation. A hearing on the 
reauthorization of Amtrak was held by the Commerce Committee's 
Subcommittee on Surface Transportation and Merchant Marine on 
April 21, 2005. On July 28, 2005, the Committee met in open 
executive session and ordered S.1516 reported favorably with an 
amendment in the nature of a substitute.

                        Estimated Costs

  In compliance with subsection (a)(3) of paragraph 11 of rule 
XXVI of the Standing Rules of the Senate, the Committee states 
that, in its opinion, it is necessary to dispense with the 
requirements of paragraphs (1) and (2) of that subsection in 
order to expedite the business of the Senate. deg.
  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                                September 30, 2005.
Hon. Ted Stevens,
Chairman, Committee on Commerce, Science and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1516, the Passenger 
Rail Investment and Improvement Act of 2005.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Milberg.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 1516--Passenger Rail Investment and Improvement Act of 2005

    Summary: S. 1516 authorizes the appropriation of about $9.2 
billion over the 2006-2010 period, and another $1.5 billion in 
2011, for grants to Amtrak to cover operating expenses, capital 
projects, debt repayment, security improvements, and a study 
required by the bill. The legislation also would authorize the 
appropriation of about $1 billion over the 2006-2010 period, 
and another $411 million in 2011, to the Secretary of 
Transportation for a new grant program for state railroad 
projects, a new research program, a new grant program for 
Amtrak and participating states to share railroad equipment, 
and a study on screening the baggage of Amtrak passengers. 
Assuming appropriation of the specified amounts, CBO estimates 
that implementing those provisions would cost $9.6 billion over 
the 2006-2010 period, and another $2.6 billion after 2010.
    In addition to those authorizations of appropriation, S. 
1516 would increase the requirements of the Federal Railroad 
Administration (FRA) and the Inspector General of the 
Department of Transportation (DOT) to oversee Amtrak. Assuming 
appropriation of the necessary amounts, CBO estimates that 
those provisions would cost about $5 million each year 
beginning in 2006.
     S. 1516 would affect direct spending by authorizing the 
Surface Transportation Board (STB) to charge penalties to 
freight railroads for delaying Amtrak trains and provide those 
penalties to Amtrak. The bill also would authorize the 
Secretary of the Treasury to repay Amtrak debt if the Secretary 
chooses to negotiate with Amtrak's creditors to restructure the 
debt. CBO expects that the impact on direct spending would be 
insignificant because STB would spend whatever it collects in 
penalties and because we do not expect that the Treasury would 
seek to restructure and repay Amtrak's debt. If, however, the 
Treasury does repay Amtrak's debt, that provision would 
increase direct spending by over $2 billion over the next 
several years. Enacting S. 1516 would not affect revenues.
    S. 1516 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA); any costs to State, 
local, and tribal governments would result from participation 
in a voluntary Federal program. Other provisions of the bill 
would benefit States by authorizing about $1.5 billion in new 
grants for States to improve intercity passenger rail service.
    S. 1516 would impose various private-sector mandates, as 
defined in UMRA, on Amtrak. CBO estimates that the direct costs 
of those mandates would fall below the annual threshold 
established by UMRA for private-sector mandates ($123 million 
in 2005, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1516 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                               -----------------------------------------------------------------
                                                   2005       2006       2007       2008       2009       2010
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for Amtrak:
    Budget Authority \1\......................      1,207          0          0          0          0          0
    Estimated Outlays.........................      1,235         10         10          0          0          0
Proposed Changes:
Amtrak:
    Authorization Level.......................          0      1,936      1,934      1,967      1,705      1,627
    Estimated Outlays.........................          0      1,936      1,934      1,967      1,705      1,627
Grants to States for Rail Projects:
    Authorization Level.......................          0         24        100        246        274        369
    Estimated Outlays.........................          0          4         22         72        139        205
Rail Research:
    Authorization Level.......................          0          5          5          5          5          5
    Estimated Outlays.........................          0          3          5          5          5          5
Train Equipment Pool:
    Authorization Level.......................          0          5          0          0          0          0
    Estimated Outlays.........................          0          1          1          1          1          1
Study on Screening Amtrak Baggage:
    Authorization Level.......................          0          1          0          0          0          0
    Estimated Outlays.........................          0          1          0          0          0          0
DOT Oversight of Amtrak and State Rail Plans:
    Estimated Authorization Level.............          0          5          5          5          5          5
    Estimated Outlays.........................          0          5          5          5          5          5
Total Changes:
    Estimated Authorization Level.............          0      1,976      2,044      2,223      1,989      2,006
    Estimated Outlays.........................          0      1,950      1,967      2,050      1,855      1,843
Spending Under S. 1516:
    Estimated Authorization Level \1\.........      1,207      1,976      2,044      2,223      1,989      2,006
    Estimated Outlays.........................      1,235      1,960      1,977      2,050      1,855      1,843
----------------------------------------------------------------------------------------------------------------
\1\ The 2005 level is the amount appropriated for that year.

    Basis of estimate: S. 1516 would authorize the 
appropriation of $12.2 billion over the 2006-2011 period; CBO 
assumes that the amounts specified in the bill would be 
appropriated near the beginning of each fiscal year. S. 1516 
also increases the responsibilities of FRA and the DOT 
Inspector General for overseeing Amtrak. CBO assumes that the 
amounts necessary to increase oversight--about $5 million a 
year--would be appropriated. Estimates of outlays are based on 
historical trends for Amtrak spending and other programs 
similar to the ones that S. 1516 would authorize.

Spending subject to appropriation

    Amtrak. S. 1516 would authorize the appropriation of $10.7 
billion for grants to Amtrak over the 2006-2011 period. This 
total includes $4.4 billion for operating expenses, $4.9 
billion for capital projects, $1.7 billion for the repayment of 
the principal and interest on its debt, $794 million for 
security improvements, and $500,000 to develop a plan to 
address the needs of families of passengers involved in a rail 
accident. CBO expects that Amtrak spending under this bill 
would be primarily for short-term capital projects and 
operating expenses. Currently, the Secretary of Transportation 
makes appropriations immediately available to Amtrak for such 
expenses. Assuming appropriation of the amounts specified, CBO 
estimates those grants to Amtrak would cost $9.2 billion over 
the 2005-2010 period, and another $1.5 billion in 2011.
    Grants to States for Rail Projects. S. 1516 would authorize 
the Secretary of Transportation to make grants to states for 
capital projects that would improve intercity rail service. For 
those grants, the bill would authorize the appropriations of 
$1.4 billion over the 2006-2011 period. Assuming appropriation 
of the specified amounts, CBO estimates those grants would cost 
about $1 billion over the 2006-2010 period and just over $400 
million after 2010.
    Rail Research. S. 1516 would authorize the appropriation of 
$30 million over the 2006-2011 period to the Secretary of 
Transportation to improve models for understanding railroad 
transportation, and study ways in which railroad transportation 
could be improved. Assuming appropriation of the specified 
amounts, CBO estimates this research would cost $23 million 
over the 2006-2010 period and another $7 million after 2010.
    Train Equipment Pool. S. 1516 would direct FRA, Amtrak, and 
interested states to form a committee that would develop 
standards for rail corridor equipment. Under the bill, Amtrak 
and participating states could also enter into agreements or 
establish a corporation for acquiring such equipment. For these 
activities, the bill would authorize the appropriation of $5 
million to the Secretary of Transportation. Assuming 
appropriation of the specified amount, CBO estimates this 
program would cost $5 million over the 2006-2010 period.
    Study on Screening Amtrak Baggage. S. 1516 would authorize 
the appropriation of $1 million in 2006 to the Secretary of 
Homeland Security for a study on screening the baggage and 
cargo on Amtrak trains. Assuming appropriation of the 
authorized amount, CBO estimates this study would cost $1 
million in 2006.
    DOT Oversight. S. 1516 would require the Federal Railroad 
Administration to develop ways to measure Amtrak's performance, 
organize two commissions to oversee Amtrak's Northeast 
Corridor, review state rail plans, create a national rail plan, 
and report on passenger rail security. The legislation would 
also require DOT's Inspector General to review Amtrak's 
financial statements and five-year plans. Assuming 
appropriation of the necessary amounts, CBO estimates those 
provisions would cost about $5 million each year beginning in 
2006.

Direct spending

    S. 1516 would authorize the Surface Transportation Board to 
charge penalties to freight railroads, provide those penalties 
to Amtrak, and the bill would authorize the Secretary of 
Treasury to repay Amtrak debt. CBO, however, expects that the 
impact on direct spending of those provisions would be 
insignificant.
    Freight Railroad Penalties. S. 1516 would direct the STB to 
investigate Amtrak's failure to meet certain performance 
measures, and determine when the performance failure is due to 
a freight rail carrier's refusal to provide Amtrak preference 
over its tracks. The bill would authorize the STB to charge 
penalties to freight rail carriers for refusing to give Amtrak 
such preference, and the bill would direct STB to provide those 
penalties to Amtrak. Collecting the penalties and providing 
them to Amtrak would affect direct spending, but CBO estimates 
that the net impact on the federal deficit would be 
insignificant. CBO estimates that such penalties would total 
less than $500,000.
    Repayment of Amtrak Debt. S. 1516 would authorize the 
Secretary of the Treasury to negotiate with Amtrak's creditors 
to restructure Amtrak's long-term debt with the goal of 
reducing costs to Amtrak and the government. The Secretary's 
authority to initiate such negotiations would expire on January 
1, 2007. The bill also would direct the Secretary to repay 
whatever debt the Secretary is able to restructure if the 
government and Amtrak would realize savings. Based on 
information from Amtrak, the Department of Transportation, and 
the Treasury, CBO does not expect that the Secretary of the 
Treasury would opt to negotiate with Amtrak's creditors, and as 
a result, would not repay any of Amtrak's debt under this bill. 
Thus, CBO does not estimate that this provision would affect 
direct spending. Amtrak currently holds about $3.7 billion in 
long-term debt. Of this total, almost $1 billion is held in an 
escrow account for repayment, leaving $2.7 billion available 
for restructuring under S. 1516. If the Treasury does 
restructure and repay this debt, CBO estimates that the 
repayment would increase direct spending by more than $2 
billion over the next several years.
    Estimated impact on state, local, and tribal governments: 
S. 1516 contains no intergovernmental mandates as defined in 
UMRA. Provisions of the bill would either benefit states or 
impose costs on them as a result of their participation in a 
voluntary federal program.
    Title I of the bill would authorize about $1.5 billion over 
the 2006-2011 period for grants to states to improve intercity 
rail service. This provision would generally benefit 
intergovernmental entities. Grants to states would require 
matching funds from nonfederal sources, but such costs would be 
incurred voluntarily.
    Title II would require certain states with Amtrak routes to 
agree on a formula for the distribution of capital and 
operating costs. The federal govenrment--via Amtrak--currently 
subsidizes these routes, so any requirements on states would be 
a condition of receivingfederal assistance. The bill 
effectively would increase the price of the federal service, and CBO 
views these types of relationships as voluntary federal programs.
    Estimated impact on the private sector: S. 1516 would 
impose various private-sector mandates, as defined in UMRA, on 
Amtrak. The bill includes reforms related to financial 
reporting that would require Amtrak to submit an annual budget 
and a five-year fiscal plan for Amtrak to the Secretary of 
Transportation and DOT's Inspector General and implement a 
modern financial accounting and reporting system, subject to 
review by DOT. The bill also would require Amtrak to evaluate 
the performance of each long-distance passenger rail route 
annually and the improvements necessary to make all existing 
stations readily accessible to and usable by persons with 
disabilities. The bill would require that Amtrak:
          Develop new or improve existing metrics and 
        minimum standards for measuring performance and service 
        quality of intercity train operations;
          Develop and implement a plan to improve on-
        board service within one year after those metrics and 
        minimum standards are established; and
          Submit a plan to the Chairman of the National 
        Transportation Safety Board and the Secretary of 
        Transportation for addressing the needs of families of 
        passenger involved in fatal rail accidents involving 
        Amtrak intercity trains.
    Most of the requirements in the bill are already being met 
by Amtrak. For those requirements that may require additional 
effort or changes to current efforts, the cost to make such 
changes would be small. CBO estimates that the aggregate cost 
of the private-sector mandates included in S. 1516 would fall 
below the annual threshold established by UMRA for private-
sector mandates ($123 million in 2005, adjusted annually for 
inflation).
    Estimate prepared by: Federal Costs: Rachel Milberg; Impact 
on State, Local, and Tribal Governments: Sarah Puro; Impact on 
the Private Sector: Selena Caldera.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  For an analysis of the economic impact on the private sector, 
see page 10 of the CBO estimate.
  In compliance with subsection (b)(2) of paragraph 11 of rule 
XXVI of the Standing Rules of the Senate, the Committee states 
that, in its opinion, it is necessary to dispense with the 
requirements of paragraph (1) of that subsection in order to 
expedite the business of the Senate. deg.
  Because S. ------ does not create any new programs, the 
legislation will have no additional regulatory impact, and will 
result in no additional reporting requirements. The legislation 
will have no further effect on the number or types of 
individuals and businesses regulated, the economic impact of 
such regulation, the personal privacy of affected individuals, 
or the paperwork required from such individuals and 
businesses. deg.
  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:  deg.

                NUMBER OF PERSONS COVERED  deg.

                     ECONOMIC IMPACT deg.

                         PRIVACY deg.

                             PAPERWORK deg.

                      Section-by-Section Analysis

                        TITLE I--AUTHORIZATIONS

Section 101. Authorization for Amtrak Capital and Operating Expenses 
        and State Capital Grants.

  This section authorizes capital and operating grants to 
Amtrak for each of the fiscal years 2006 through 2011. 
Operating grant authorizations are as follows:

          FY 06: $580 million
          FY 07: $590 million
          FY 08: $600 million
          FY 09: $575 million
          FY 10: $535 million
          FY 11: $455 million

  This section authorizes capital grants for the national 
railroad transportation system, for expenses to bring the 
Northeast Corridor to a state-of-good-repair, and to make 
grants directly to States for other intercity rail passenger 
improvements under section 301. Capital grant authorizations 
are as follows:

        Amount authorized             Percent available for States
    FY 06: $813 million                 3 percent
    FY 07: $910 million                 11 percent
    FY 08: $1.071 billion               23 percent
    FY 09: $1.096 billion               25 percent
    FY 10: $1.191 billion               31 percent
    FY 11: $1.231 billion               33 percent

  One half of one percent of the available capital funds is 
available to the Secretary of Transportation to perform project 
management oversight for Amtrak and State capital projects 
funded under this section.

Section 102. Authorization for the Federal Railroad Administration.

  There are authorized to be appropriated to the Federal 
Railroad Administration such funds as are necessary to 
implement responsibilities authorized by this Act for fiscal 
years 2006 through 2011.

Section 103. Repayment of long-term debt and capital leases.

  Funds are authorized to be appropriated to pay interest and 
principal on Amtrak's long-term debt for fiscal years 2006 
through 2011. The average amount authorized per year for 
interest and principal repayment is $287.5 million. Funds also 
are authorized, to the extent necessary, to exercise early 
buyout options if advantageous to Amtrak, and therefore the 
taxpayers. These authorization amounts shall be reduced by the 
amount of Amtrak's debt service costs reduced through debt 
restructuring by the Secretary of the Treasury under section 
215.

Section 104. Excess railroad retirement.

  Such sums as are necessary are authorized to be appropriated 
to the Secretary of Transportation for fiscal year 2006 to pay 
into the Railroad Retirement Account the portion of Amtrak's 
Railroad Retirement Tier II Tax which exceeds the Railroad 
Retirement Tier II annuities paid to Amtrak retirees. The 
authorization level for Amtrak's operations grant is to be 
reduced by payments the Secretary makes under this section.

Section 105. Other authorizations.

  Five million dollars is authorized for each of fiscal years 
2006 through 2011 for the rail cooperative research program 
required under section 305. Another $5 million is authorized 
for fiscal year 2006 to Amtrak and States participating on the 
Next Generation Corridor Train Equipment Pool Committee.

           TITLE II--AMTRAK REFORM AND OPERATION IMPROVEMENTS

Section 201. National railroad passenger transportation system defined.

  The definition of the basic Amtrak route system, which has 
been obsolete since 1997, is repealed, and a new ``national 
rail passenger transportation system'' is defined as: Amtrak's 
Boston-Washington Northeast Corridor; high-speed corridors 
designated by the Secretary of Transportation once they have 
been improved for high-speed service; long-distance routes (of 
greater than 750 miles) operated on the date of enactment; and 
short-distance routes operated by Amtrak or a non-Amtrak 
recipient of Federal capital assistance under section 301. 
Amtrak and a State may agree on the operation of an intercity 
route or service not included in the national rail 
transportation system.
  Subsection (b) clarifies that the 180-day notice period for 
routes which Amtrak seeks to discontinue does not apply for 
routes exclusively supported by non-Federal sources, including 
States, local regional or local authorities, or other parties 
that contract with Amtrak to provide intercity passenger rail 
service. Nothing in this provision is meant to provide third 
parties with direct statutory access to Amtrak or privately-
owned rail infrastructure. As is the case today, third parties 
seeking to initiate intercity passenger rail service must 
contract with Amtrak to operate such service if Amtrak's 
statutory right of access to private rail infrastructure is to 
be used.
  Subsection (c) states that Amtrak's general powers to develop 
and operate non-high-speed intercity service are unaffected by 
this bill.
  Subsection (d) states that the provision of law pertaining to 
the discontinuance of Amtrak routes, 49 U.S.C. 24706, applies 
to all routes operated by Amtrak regardless of a route's 
inclusion in the National Railroad Passenger Transportation 
System. This provision affirms that a route's inclusion in the 
National Railroad Passenger Transportation System does not 
protect that route from possible discontinuance. The Committee 
does not intend for this provision to countervail the 
amendments made by subsection (b).

Section 202. Amtrak board of directors.

  Effective, January 1, 2006, the Amtrak Board is expanded to 9 
members as follows: the Secretary of Transportation, the 
President of Amtrak, and 7 individuals with experience in 
business, finance, or activities related to passenger 
transportation, who are appointed by the President of the 
United States, by and with the advice and consent of the 
Senate, for a term of 5 years or until their successors have 
been appointed and qualified. The President must consult with 
congressional leaders to ensure balanced representation of 
regions served by Amtrak. Members of Amtrak's Board serving on 
the date of enactment may continue to serve to the end of their 
terms.

Section 203. Establishment of improved financial accounting system.

  Section 203 directs Amtrak to implement a modern accounting 
and reporting system that enables the railroad to: assign 
revenues and expenses to each of its lines of business and 
major activities, such as train operations, equipment 
maintenance, ticketing and reservations; separate costs of 
infrastructure and rail operations; allow analysis or ticketing 
and reservation data on a real-time basis; and provide cost-
accounting data. Requires the DOT IG to review the accounting 
system and ensure it accomplishes the specified purposes. 
Without improved financial systems and controls, it will be 
difficult for Amtrak to substantially improve its operations, 
save money, and increase revenue.

Section 204. Development of 5-year financial plan.

  Requires Amtrak to submit its annual budget for the next 
fiscal year and a 5-year financial plan to DOT on the first day 
of the fiscal year or 60 days after enactment of an 
appropriation for such fiscal year. The budget should specify 
how Amtrak plans to spend its Federal subsidy that it has 
received in the appropriations act. This budget is distinct 
from the budget request that Amtrak submits to the 
Administration and Congress. The 5-year plan shall include 
projected revenues, expenditures, ridership, capital funding 
requirements, cash flow forecasts, and an assessment of 
Amtrak's continuing financial stability. The Inspector General 
of the Department of Transportation shall report to the 
Congress on the annual budget and the 5-year plan prepared by 
Amtrak. It is the Committee's expectation that the 5-year plan 
conform to the authorization levels contained in this 
legislation and that the out-year detail be sufficient for 
Congress to be able to ascertain if Amtrak will be able to 
achieve the operating subsidy reductions required by section 
101.

Section 205. Establishment of grant process.

  Section 205 requires the Secretary of Transportation to 
establish substantive and procedural requirements for Amtrak 
grant requests. It is the Committee's expectation that the 
requirements developed by the Secretary provide sufficient 
transparency and controls over Amtrak's use of the Federal 
appropriation. The requirements should include controls that 
ensure that Federal funds appropriated for capital projects are 
not diverted to cover operating costs. After Amtrak submits a 
complete grant request including a schedule for funding, the 
Secretary must approve or disapprove it within 30 days. If the 
request is denied, the Secretary must notify Amtrak of the 
reasons, and Amtrak must submit a modified request within 15 
days. If the Secretary denies the modified request, the 
Secretary must, within 15 days of its receipt, notify the 
appropriate House and Senate Committees of the reasons for such 
disapproval and recommend a process for resolving the 
outstanding issues. This grant process provides additional 
Federal oversight ensuring that funds appropriated for the use 
of Amtrak are used efficiently and for purposes consistent with 
this Act. Additionally, the Committee believes that statutory 
establishment of this process will provide both Amtrak and the 
Secretary with clear timelines and expectations, which should 
minimize disputes and result in the timely and predictable 
transmittal of appropriated funds. The Committee does not 
intend the grant process to be used by either party as a means 
to pursue or require initiatives not included in this 
reauthorization.

Section 206. State-supported routes.

  Within 2 years after the date of enactment, Amtrak, in 
consultation with the Secretary and the chief executive of each 
State, must develop a standardized methodology for computing 
and allocating operating and capital costs of short distance 
routes of 750 miles or less. Within 5 years after the date of 
enactment, the new methodology must be implemented and ensure 
equal treatment to all States supporting short-distance 
service. In the event of a failure to adopt and implement such 
a methodology, the STB must develop and implement an allocation 
methodology. Grants to a State described under section 301 may 
be used to pay capital costs under this section. Currently 
Federal financial participation for corridor routes varies 
widely. In some cases the Federal Government supports the full 
subsidy, in other cases the routes are supported exclusively by 
State funds. The purpose of this provision is to standardize 
Federal participation across all corridors.

Section 207. Independent auditor to establish methodologies for Amtrak 
        route and service planning decisions.

  This section directs the FRA to retain a consultant to 
develop and recommend objective methodologies for route and 
service decisions including expansion or elimination of 
services. Cost recovery and on-time performance of existing 
routes, connections with other routes, transportation needs of 
communities not served by other public transportation services, 
and the methodologies used by rail service providers in other 
countries must be considered. The Amtrak Board shall consider 
adoption of the consultant's recommendations. It is the 
Committee's expectation that the methodologies be based on 
objective criteria and that the independent consultant shall 
not have a financial interest or other such conflicts in the 
outcome of Amtrak's routing decisions.

Section 208. Metrics and standards.

  This section provides that in consultation with the STB and 
the operating freight railroads, the FRA and Amtrak will 
jointly develop metrics and standards for measuring the 
performance and service quality of intercity train operations 
within 180 days after the date of enactment. These metrics and 
standards include cost-recovery; on-time performance; ridership 
per train mile; on-board and station services; and the 
connectivity of routes. This section requires the FRA to 
publish a quarterly report on train performance and service 
quality. It is the Committee's expectation that the freight 
railroads be consulted in the development of the metrics and 
that to the extent practicable, the metrics and standards 
developed not be inconsistent with measures of on-time 
performance included in the contracts between the freight 
railroads and Amtrak.

Section 209. Passenger train performance.

  Section 209 provides that if for any 2 consecutive quarters, 
the on-time performance of any intercity passenger train 
averages less than 80 percent, or the service quality fails to 
meet the standards established under section 208, the STB will 
investigate the extent to which such failure is due to causes 
that could reasonably be addressed by the operating freight 
railroad or by Amtrak. If the Board determines that the cause 
is the failure of a freight railroad to provide preference to 
Amtrak over freight trains, the Board shall enforce that 
preference under applicable law. In addition, this section 
requires the Board to publish a schedule of penalties for such 
infractions. The section also amends existing law to allow 
freight railroads to petition the STB for relief if the 
railroad believes that the operation of a particular Amtrak 
route is having a negative impact on its freight operations. 
Under current law, the railroad may only petition the Secretary 
of Transportation. The intent of this section is to provide a 
forum for both Amtrak and the freight railroads for the 
adjudication of service disputes. The Committee believes that 
the STB will be able to consider disputes in an efficient and 
evenhanded manner. Currently, the Committee understands that 
the existing process is cumbersome and is almost never used, 
and that the frustration of both the freight railroads and 
Amtrak seems to be increasing.

Section 210. Long distance routes.

  Using the metrics and standards developed under section 208, 
Amtrak must annually evaluate each long-distance route. 
Further, Amtrak must rank the routes, based upon their 
performance in 2006, as the best-performing third of such 
routes, the second-best performing third, and the worst-
performing third. Amtrak must develop a performance improvement 
plan for its long-distance routes and implement it in fiscal 
year 2007 with respect to the third-worst performing routes; in 
FY 2008 for the second-worst performers; and in 2009 for the 
best performing. The FRA monitors the development and 
implementation of the long-distance route performance plan and 
may withhold, following notice to Amtrak which has an 
opportunity to be heard, appropriated funds for operating a 
route on which reasonable progress in improving performance is 
not being made. It is the Committee's expectation that the 
performance improvement plans be the result of thorough 
evaluations of the long-distance routes and that changes to 
food service, sleeper service, and other on board amenities be 
considered. It has been suggested that significant savings may 
be realized if Amtrak restructured its contracts for food and 
beverage service. Amtrak should also evaluate the long-distance 
routes to see if they could be restructured to be a series of 
inter-connected corridors. It has also been suggested that such 
inter-connected corridors could provide more frequent service 
at more convenient times offering the potential for increased 
ridership.

Section 211. Alternate passenger rail service program.

  Within 1 year after the date of enactment of this Act, the 
FRA develops a program under which a rail carrier or carriers 
that own a route over which Amtrak operates may petition the 
FRA to become a passenger rail carrier for that route in lieu 
of Amtrak. The rail carrier and Amtrak submit a bid to provide 
service over the entire route and the FRA awards the right to 
provide such service in accordance with standards it may 
prescribe. In addition, the FRA provides the operating subsidy 
not in excess of that which Amtrak received for the route prior 
to the petition. The first deadline for submission of petitions 
will be in fiscal year 2007 for alternate operations to 
commence in fiscal year 2008. This section will not apply to 
more than one Amtrak route in fiscal year 2008 and 2 routes 
beginning in fiscal year 2009 and fiscal years thereafter. Any 
contract awarded by the FRA under this section requires the 
operator to meet the metrics and standards under section 208.

Section 212. Employee transition assistance.

  For Amtrak employees adversely affected by the cessation of 
Amtrak as the operator of a long-distance route under section 
211, the Secretary shall develop a program to provide up to 
$50,000 per employee in benefits in lieu of other termination-
related payments due from Amtrak. If the affected employees do 
not accept the incentives offered under such program, the 
Secretary shall make grants to Amtrak of funds otherwise 
appropriated to the FRA to permit Amtrak to pay termination-
related benefits to such employees under existing contractual 
agreements. Since there will be ample time to plan for the 
transition on service from Amtrak to the winning bidder, it is 
likely that Amtrak will be able to use the employees on the 
affected line to back-fill positions elsewhere in its system 
due to the attrition.

Section 213. Northeast Corridor state-of-good-repair plan.

  Within 6 months after the date of enactment, Amtrak, in 
consultation with the Secretary and the NEC, is required to 
prepare a capital spending plan to return the NEC to a state-
of-good-repair by the end of fiscal year 2011. The Secretary 
reviews the plan and annual updates for approval. The Secretary 
makes capital grants of appropriated funds, as authorized by 
section 101 of this Act, for up to 100 percent of the capital 
investments contained in the spending plan. It is the 
Committee's expectation that the Secretary shall use the grant 
process established in section 205 to ensure that funds 
appropriated for the NEC and made available to Amtrak are spent 
on the Corridor and are spent in a manner consistent with the 
improvement plan. The bill also allows the Secretary to 
withhold up to one-half percent of funds appropriated for the 
NEC to fund project management oversight (PMO). PMO is used in 
other DOT programs to ensure that funds are effectively spent. 
The Committee intends that no local or State match be required 
for projects on the state-of-good-repair plan.

Section 214. Northeast Corridor infrastructure and operations 
        improvements.

  Within 6 months after the date of enactment, the Secretary 
must establish a Northeast Corridor Infrastructure and 
Operations Advisory Commission which includes representatives 
of Amtrak, the FRA, and each of the States in the NEC, with 
none of these parties constituting a majority. The Commission 
then will develop future funding requirement recommendations 
for capital improvements, and scheduling and safety 
enhancements. Further, within 1 year after the date of 
enactment of PRIIA, the Commission will develop a proposal for 
a standardized formula to determine costs and compensation to 
be paid by the NEC commuter authorities for the use of 
facilities or services provided to them by Amtrak. If Amtrak 
and the commuter authorities do not implement the recommended 
formula, they may go to arbitration or petition the STB for a 
ruling. Lastly, this provision directs the Secretary to 
establish a Northeast Corridor Safety and Security Committee.

Section 215. Restructuring long-term debt and capital leases.

  Between the date of enactment and January 1, 2007, the 
Secretary of the Treasury, in consultation with the Secretary 
of Transportation and Amtrak, may make agreements to 
restructure Amtrak's debt. The provision directs the Secretary 
of the Treasury to enter into negotiations with the holders of 
such debt for the purpose of restructuring and assuming, or 
repaying, the debt on terms significantly more favorable to the 
United States Government. To the extent Amtrak's principal and 
interest payments are reduced as a result of this section, 
authorizations for such payments under section 103 of this Act 
are correspondingly reduced. Amtrak may incur no new debt 
without advance approval of the Secretary of Transportation.

Section 216. Study of compliance requirements at existing intercity 
        rail stations.

  Under this section, Amtrak evaluates the improvements 
necessary to make all existing stations it serves readily 
accessible as required under the Americans with Disabilities 
Act of 1990. The evaluation includes the estimated cost of such 
improvements and the earliest date they can be made. The 
evaluation submitted by Amtrak goes to the House and Senate 
authorizing Committees and the National Council on Disability 
by September 30, 2006, along with recommendations for funding 
such improvements.

Section 217. Incentive pay.

  This section encourages Amtrak to develop an incentive pay 
program for Amtrak employees. The Committee believes that 
incentive pay could be an important tool to increase 
productivity at Amtrak and allow the railroad to operate more 
like a business.

Section 218. Access to Amtrak equipment and services.

  Under this section, States wishing to use operators other 
than Amtrak for the provision of State-supported services shall 
have access to Amtrak equipment, facilities, and reservation 
systems for the purpose of operating that particular route. If 
Amtrak and a State fail to reach an agreement governing such 
use, the STB shall determine reasonable terms of use in 
accordance with section 206 of this Act and direct Amtrak to 
make such assets available to the State, so long as such use is 
essential to the planned service and will not impair or degrade 
Amtrak's other operations.

Section 219. General Amtrak provisions.

  The operating self-sufficiency requirement imposed on Amtrak 
in 1997 is repealed, along with the 2002 ``sunset trigger'' for 
failing to meet the requirement. This repeal is technical in 
nature and is not meant to indicate that Amtrak should not 
strive to reduce it dependency on Federal funds or improve the 
efficiency of how it spends Federal funds. Also repealed is the 
requirement to redeem Amtrak's outstanding common stock. In 
addition, the provision authorizes Amtrak to continue leasing 
vehicles from the General Services Administration.

Section 220. Private sector funding of passenger trains.

  The provision prompts Amtrak to seek out business with 
private-sector customers (i.e., charters, etc.) in order to 
decrease its Federal operations grant amounts. The Committee 
believes that Amtrak should explore such business arrangements 
and that such partnerships have the potential of reducing costs 
and improving the level of service.

Section 221. On-board service improvements.

  Under this provision, Amtrak will develop and implement a 
plan to improve on-board service based on the metrics and 
standards developed under section 208. Amtrak is to provide a 
report to Congress describing how it will improve on-board 
service and provide a timeline for implementing such 
improvements. Amtrak's on-board service has frequently been the 
subject of criticism. The Committee believes major improvements 
can be made to improve the experience of passengers.

               TITLE III--INTERCITY PASSENGER RAIL POLICY

Section 301. Capital assistance for intercity passenger rail service.

  This provision establishes that the Secretary of 
Transportation may make capital grants to a State to fund 
improvements to intercity passenger rail transportation from 
the funds authorized for capital improvements under section 
101. A grant may not exceed 80 percent of the capital cost, but 
the remaining 20 percent may be funded from amounts 
appropriated to a department of the Federal Government and 
eligible to be expended on transportation. The Secretary shall 
also allocate an appropriate portion of grants under this 
section to States with no intercity rail passenger service 
(Hawaii, South Dakota and Wyoming) and to the State of Alaska. 
Conditions of the grants are: (1) compliance with laws 
generally governing major Federal projects, (2) a written 
agreement between the grantee and the owner of any railroad 
facilities to be used or improved, and (3) a written agreement 
between any new rail operator and Amtrak labor organizations to 
protect the rights of Amtrak employees who would otherwise be 
adversely affected (this does not apply to Amtrak's access to 
railroad rights-of-way for projects where train speeds do not 
exceed 79 miles per hour, or to the Alaska Railroad). Although 
these grants are primarily established for States to fund 
improvements to intercity passenger rail transportation, these 
projects may benefit either infrastructure owners or other 
users.

Section 302. State rail plans.

  States may prepare and maintain a State rail plan in accord 
with requirements listed in this section. A State rail plan 
must designate an authority to approve and carry out the plan 
and be reviewed by the Secretary. The section also provides 
criteria for the purpose and content of the State rail plans, 
including a long range service and investment program.

Section 303. Next-generation corridor train equipment pool.

  Amtrak shall establish within 180 days of enactment of this 
act, a committee, along with FRA and interested States, to 
design and develop specifications for a joint procurement of 
equipment (i.e., passenger cars, locomotives, etc.).

Section 304. Federal rail policy.

  Under this section, the organization of the FRA is modified 
and its responsibilities are expanded, including a requirement 
to develop a national rail plan. The development of the 
national rail plan shall not impede ongoing state rail 
planning, project development, or funding.

Section 305. Rail cooperative research program.

  The Secretary is directed to establish a research program to 
examine issues relating to intercity, commuter, and freight 
rail enhancements, including impacts on highway and airport 
congestion, rail capacity constraints, and development of high-
speed rail services.

              TITLE IV--PASSENGER RAIL SECURITY AND SAFETY

Section 401. Systemwide Amtrak security upgrades.

  Section 401 authorizes the Secretary of Homeland Security to 
make grants to Amtrak for security improvements, including the 
tunnels in New York, Baltimore, and Washington, D.C. A total of 
$123 million is authorized to be appropriated annually fiscal 
years 2006 through 2008.

Section 402. Fire and life-safety improvements.

  Section 402 authorizes the Secretary of Transportation to 
make grants to Amtrak for fire and life-safety improvements to 
tunnels in each of fiscal years 2006, 2007, and 2008, as 
follows: New York, $190 million per year; Baltimore, $19 
million per year; and Washington, D.C., $13 million per year. 
The Secretary must first approve Amtrak's plans for the work 
and must consider the feasibility of seeking a contribution 
from other rail carriers that also use the referenced tunnels.

Section 403. Amtrak plan to assist families of passengers involved in 
        rail passenger accidents.

  Six months after the date of enactment, Amtrak is required to 
submit to the National Transportation Safety Board a plan for 
providing a list of the names of passengers involved in train 
accidents and notifying their families appropriately.

Section 404. Northern border passenger rail report.

  Section 404 requires within 180 days after the date of 
enactment, the Secretary of Transportation to study and report 
to the Congress on the current system of screening passengers 
and baggage traveling in passenger rail service between the 
United States and Canada. The study shall address the 
feasibility for expediting that screening through pre-clearance 
procedures now used for airline passengers, or screening 
passengers while on board Amtrak trains.

Section 405. Passenger, baggage, and cargo screening.

  This section requires the Secretary of Homeland Security to 
study the cost and feasibility of rail passenger and baggage 
screening and report to the appropriate committees of Congress 
1 year from the date of enactment.

                      TITLE V--RAIL BOND AUTHORITY

Section 501. Intercity rail facility bonds.

  This section allows the Secretary to designate bonds to be 
issued by a State, a group of States, or by Amtrak. These bonds 
are for projects that make a substantial contribution to 
providing the infrastructure and equipment to complete or 
improve a rail transportation corridor. The amount of bonds 
designated under this section for each of the fiscal years 2006 
through 2015 shall not exceed $1.3 billion. It is important to 
note that this section simply governs how the Secretary would 
administer such a bond program. The legislative language 
required to authorize the bonds, which is under the 
jurisdiction of the Senate Finance Committee, is not included 
here.

                      Rollcall Votes in Committee

  By a rollcall vote of 17 yeas and 2 nays as follows, the bill 
was ordered reported subject to amendment:
        YEAS--17                      NAYS--2
Mr. Burns                           Mr. McCain
Mr. Lott                            Mr. DeMint
Mrs. Hutchison
Ms. Snowe\1\
Mr. Smith
Mr. Allen
Mr. Inouye
Mr. Rockefeller\1\
Mr. Kerry\1\
Mr. Dorgan\1\
Mrs. Boxer\1\
Mr. Nelson of Florida
Ms. Cantwell
Mr. Lautenberg
Mr. Nelson of Nebraska
Mr. Pryor
Mr. Stevens

    \1\By proxy

    Senator McCain offered an amendment to eliminate the rail 
bond authority granted under title V of the bill. By a rollcall 
vote of 7 yeas and 15 nays as follows, the amendment was 
defeated:
        YEAS--7                       NAYS--15
Mr. McCain                          Mr. Burns
Mr. Smith                           Mr. Lott
Mr. Ensign                          Mrs. Hutchison
Mr. Allen                           Ms. Snowe
Mr. Sununu\1\                       Mr. Inouye
Mr. DeMint                          Mr. Rockefeller\1\
Mr. Vitter                          Mr. Kerry\1\
                                    Mr. Dorgan\1\
                                    Mrs. Boxer
                                    Mr. Nelson of Florida
                                    Ms. Cantwell
                                    Mr. Lautenberg
                                    Mr. Nelson of Nebraska\1\
                                    Mr. Pryor
                                    Mr. Stevens

    \1\By proxy
    Senator Lott offered an amendment in the nature of a 
substitute. On a rollcall vote of 18 yeas and 4 nays as 
follows, the amendment was adopted:
        YEAS--18                      NAYS--4
Mr. Burns                           Mr. McCain\1\
Mr. Lott                            Mr. Ensign\1\
Mrs. Hutchison                      Mr. Sununu\1\
Ms. Snowe                           Mr. DeMint\1\
Mr. Smith
Mr. Allen
Mr. Vitter
Mr. Inouye
Mr. Rockefeller\1\
Mr. Kerry\1\
Mr. Dorgan
Mrs. Boxer
Mr. Nelson of Florida
Ms. Cantwell
Mr. Lautenberg
Mr. Nelson of Nebraska\1\
Mr. Pryor
Mr. Stevens

    \1\By proxy

       Additional, Supplemental, or Minority Views deg.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

              AMTRAK REFORM AND ACCOUNTABILITY ACT OF 1997

[SEC. 204. SUNSET TRIGGER.

                         [49 U.S.C. 24304 note]

  [(a) In general.--If at any time more than 2 years after the 
date of enactment of this Act and implementation of the 
financial plan referred to in section 24104(d) of title 49, 
United States Code, as amended by section 201 of this Act, the 
Amtrak Reform Council finds that--
          [(1) Amtrak's business performance will prevent it 
        from meeting the financial goals set forth in section 
        24104(d) of title 49, United States Code, as amended by 
        section 201 of this Act; or
          [(2) Amtrak will require operating grant funds after 
        the fifth anniversary of the date of enactment of this 
        Act, then the Council shall immediately notify the 
        President, the Committee on Commerce, Science, and 
        Transportation of the United States Senate, and the 
        Committee on Transportation and Infrastructure of the 
        United States House of Representatives.
  [(b) Factors considered.--In making a finding under 
subsection (a), the Council shall take into account--
          [(1) Amtrak's performance;
          [(2) the findings of the independent assessment 
        conducted under section 202;
          [(3) the level of Federal funds made available for 
        carrying out the financial plan referred to in section 
        24104(d) of title 49, United States Code, as amended by 
        section 201 of this Act; and
          [(4) Acts of God, national emergencies, and other 
        events beyond the reasonable control of Amtrak.
  [(c) Action plan.--Within 90 days after the Council makes a 
finding under subsection (a)--
          [(1) it shall develop and submit to the Congress an 
        action plan for a restructured and rationalized 
        national intercity rail passenger system; and
          [(2) Amtrak shall develop and submit to the Congress 
        an action plan for the complete liquidation of Amtrak, 
        after having the plan reviewed by the Inspector General 
        of the Department of Transportation and the General 
        Accounting Office for accuracy and reasonableness.

[SEC. 205. SENATE PROCEDURE FOR CONSIDERATION OF RESTRUCTURING AND 
                    LIQUIDATION PLANS.

                         [49 U.S.C. 24101 note]

  [(a) In general.--If, within 90 days (not counting any day on 
which either House is not in session) after a restructuring 
plan is submitted to the House of Representatives and the 
Senate by the Amtrak Reform Council under section 204 of this 
Act, an implementing Act with respect to a restructuring plan 
(without regard to whether it is the plan submitted) has not 
been passed by the Congress, then a liquidation disapproval 
resolution shall be introduced in the Senate by the Majority 
Leader of the Senate, for himself and the Minority Leader of 
the Senate, or by Members of the Senate designated by the 
Majority Leader and Minority Leader of the Senate. The 
liquidation disapproval resolution shall be held at the desk at 
the request of the Presiding Officer.
  [(b) Consideration in the Senate.--
          [(1) Referral and reporting.--A liquidation 
        disapproval resolution introduced in the Senate shall 
        be placed directly and immediately on the Calendar.
          [(2) Implementing resolution from House.--When the 
        Senate receives from the House of Representatives a 
        liquidation disapproval resolution, the resolution 
        shall not be referred to committee and shall be placed 
        on the Calendar.
          [(3) Consideration of single liquidation disapproval 
        resolution.--After the Senate has proceeded to the 
        consideration of a liquidation disapproval resolution 
        under this subsection, then no other liquidation 
        disapproval resolution originating in that same House 
        shall be subject to the procedures set forth in this 
        section.
          [(4) Amendments.--No amendment to the resolution is 
        in order except an amendment that is relevant to 
        liquidation of Amtrak. Consideration of the resolution 
        for amendment shall not exceed one hour excluding time 
        for recorded votes and quorum calls. No amendment shall 
        be subject to further amendment, except for perfecting 
        amendments.
          [(5) Motion nondebatable.--A motion to proceed to 
        consideration of a liquidation disapproval resolution 
        under this subsection shall not be debatable. It shall 
        not be in order to move to reconsider the vote by which 
        the motion to proceed was adopted or rejected, although 
        subsequent motions to proceed may be made under this 
        paragraph.
          [(6) Limit on consideration.--
                  [(A) After no more than 20 hours of 
                consideration of a liquidation disapproval 
                resolution, the Senate shall proceed, without 
                intervening action or debate (except as 
                permitted under paragraph (9)), to vote on the 
                final disposition thereof to the exclusion of 
                all amendments not then pending and to the 
                exclusion of all motions, except a motion to 
                reconsider or table.
                  [(B) The time for debate on the liquidation 
                disapproval resolution shall be equally divided 
                between the Majority Leader and the Minority 
                Leader or their designees.
          [(7) Debate of amendments.--Debate on any amendment 
        to a liquidation disapproval resolution shall be 
        limited to one hour, equally divided and controlled by 
        the Senator proposing the amendment and the majority 
        manager, unless the majority manager is in favor of the 
        amendment, in which case the minority manager shall be 
        in control of the time in opposition.
          [(8) No motion to recommit.--A motion to recommit a 
        liquidation disapproval resolution shall not be in 
        order.
          [(9) Disposition of Senate resolution.--If the Senate 
        has read for the third time a liquidation disapproval 
        resolution that originated in the Senate, then it shall 
        be in order at any time thereafter to move to proceed 
        to the consideration of a liquidation disapproval 
        resolution for the same special message received from 
        the House of Representatives and placed on the Calendar 
        pursuant to paragraph (2), strike all after the 
        enacting clause, substitute the text of the Senate 
        liquidation disapproval resolution, agree to the Senate 
        amendment, and vote on final disposition of the House 
        liquidation disapproval resolution, all without any 
        intervening action or debate.
          [(10) Consideration of House message.--Consideration 
        in the Senate of all motions, amendments, or appeals 
        necessary to dispose of a message from the House of 
        Representatives on a liquidation disapproval resolution 
        shall be limited to not more than 4 hours. Debate on 
        each motion or amendment shall be limited to 30 
        minutes. Debate on any appeal or point of order that is 
        submitted in connection with the disposition of the 
        House message shall be limited to 20 minutes. Any time 
        for debate shall be equally divided and controlled by 
        the proponent and the majority manager, unless the 
        majority manager is a proponent of the motion, 
        amendment, appeal, or point of order, in which case the 
        minority manager shall be in control of the time in 
        opposition.
  [(c) Consideration in conference.--
          [(1) Convening of conference.--In the case of 
        disagreement between the two Houses of Congress with 
        respect to a liquidation disapproval resolution passed 
        by both Houses, conferees should be promptly appointed 
        and a conference promptly convened, if necessary.
          [(2) Senate consideration.--Consideration in the 
        Senate of the conference report and any amendments in 
        disagreement on a liquidation disapproval resolution 
        shall be limited to not more than 4 hours equally 
        divided and controlled by the Majority Leader and the 
        Minority Leader or their designees. A motion to 
        recommit the conference report is not in order.
  [(d) Definitions.--For purposes of this section--
          [(1) Liquidation disapproval resolution.--The term 
        ``liquidation disapproval resolution'' means only a 
        resolution of either House of Congress which is 
        introduced as provided in subsection (a) with respect 
        to the liquidation of Amtrak.
          [(2) Restructuring plan.--The term ``restructuring 
        plan'' means a plan to provide for a restructured and 
        rationalized national intercity rail passenger 
        transportation system.
  [(e) Rules of Senate.--This section is enacted by the 
Congress--
          [(1) as an exercise of the rulemaking power of the 
        Senate, and as such they are deemed a part of the rules 
        of the Senate, but applicable only with respect to the 
        procedure to be followed in the Senate in the case of a 
        liquidation disapproval resolution; and they supersede 
        other rules only to the extent that they are 
        inconsistent therewith; and
          [(2) with full recognition of the constitutional 
        right of the Senate to change the rules (so far as 
        relating to the procedure of the Senate) at any time, 
        in the same manner and to the same extent as in the 
        case of any other rule of the Senate.]

           *       *       *       *       *       *       *

SEC. 415. FINANCIAL POWERS.

                         [49 U.S.C. 24304 note]

  (a) [Executed amendments]
  [(b) Redemption of common stock.--Amtrak shall, before 
October 1, 2002, redeem all common stock previously issued, for 
the fair market value of such stock.]
  (c) Elimination of liquidation preference and voting rights 
of preferred stock.--
          (1)(A) Preferred stock of Amtrak held by the 
        Secretary of Transportation shall confer no liquidation 
        preference.
                  (B) Subparagraph (A) shall take effect 90 
                days after the date of the enactment of this 
                Act.
          (2)(A) Preferred stock of Amtrak held by the 
        Secretary of Transportation shall confer no voting 
        rights.
                  (B) Subparagraph (A) shall take effect 60 
                days after the date of the enactment of this 
                Act.

                      TITLE 49, UNITED STATES CODE

                Subtitle I. Department of Transportation

                        CHAPTER 1. ORGANIZATION

Sec. 103. Federal Railroad Administration

  (a) In General._The Federal Railroad Administration is an 
administration in the Department of Transportation. [To carry 
out all railroad safety laws of the United States, the 
Administration is divided on a geographical basis into at least 
8 safety offices. The Secretary of Transportation is 
responsible for all acts taken under those laws and for 
ensuring that the laws are uniformly administered and enforced 
among the safety offices.]
  (b) Administrator._The head of the Administration is the 
Administrator who is appointed by the President, by and with 
the advice and consent of the Senate. The Administrator reports 
directly to the Secretary.
  (c) Safety.--To carry out all railroad safety laws of the 
United States, the Administration is divided on a geographical 
basis into at least 8 safety offices. The Secretary of 
Transportation is responsible for all acts taken under those 
laws and for ensuring that the laws are uniformly administered 
and enforced among the safety offices.
  [(c)] (d) Powers and Duties._The Administrator shall carry 
out--
          (1) duties and powers related to railroad safety 
        vested in the Secretary by section 20134(c) and 
        chapters 203-211 of this title, and chapter 213 of this 
        title in carrying out chapters 203-211; [and]
          (2) the duties and powers related to railroad policy 
        and development under subsection (e); and
          [(2)] (3) additional duties and powers prescribed by 
        the Secretary.
  [(d)] (e) Transfers of Duty._A duty or power specified by 
subsection (c)(1) of this section may be transferred to another 
part of the Department only when specifically provided by law 
or a reorganization plan submitted under chapter 9 of title 5. 
A decision of the Administrator in carrying out those duties or 
powers and involving notice and hearing required by law is 
administratively final.
  [(e)] (f) Contracts, grants, leases, cooperative agreements, 
and similar transactions._ Subject to the provisions of 
subtitle I of title 40 and title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et 
seq.), the Secretary of Transportation may make, enter into, 
and perform such contracts, grants, leases, cooperative 
agreements, and other similar transactions with Federal or 
other public agencies (including State and local governments) 
and private organizations and persons, and make such payments, 
by way of advance or reimbursement, as the Secretary may 
determine to be necessary or appropriate to carry out functions 
of the Federal Railroad Administration. [The authority of the 
Secretary granted by this subsection shall be carried out by 
the Administrator. Notwithstanding any other provision of this 
chapter, no authority to enter into contracts or to make 
payments under this subsection shall be effective, except as 
provided for in appropriations Acts.]
  (g) Additional Duties of the Administrator.--The 
Administrator shall--
          (1) provide assistance to States in developing State 
        rail plans prepared under chapter 225 and review all 
        State rail plans submitted under that section;
          (2) develop a long range national rail plan that is 
        consistent with approved State rail plans and the rail 
        needs of the Nation, as determined by the Secretary in 
        order to promote an integrated, cohesive, efficient, 
        and optimized national rail system for the movement of 
        goods and people;
          (3) develop a preliminary national rail plan within a 
        year after the date of enactment of the Passenger Rail 
        Investment and Improvement Act of 2005;
          (4) develop and enhance partnerships with the freight 
        and passenger railroad industry, States, and the public 
        concerning rail development;
          (5) support rail intermodal development and high-
        speed rail development, including high speed rail 
        planning;
          (6) ensure that programs and initiatives developed 
        under this section benefit the public and work toward 
        achieving regional and national transportation goals; 
        and
          (7) facilitate and coordinate efforts to assist 
        freight and passenger rail carriers, transit agencies 
        and authorities, municipalities, and States in 
        passenger-freight service integration on shared rights 
        of way by providing neutral assistance at the joint 
        request of affected rail service providers and 
        infrastructure owners relating to operations and 
        capacity analysis, capital requirements, operating 
        costs, and other research and planning related to 
        corridors shared by passenger or commuter rail service 
        and freight rail operations.
  (h) Performance Goals and Reports.--
          (1) Performance goals.--In conjunction with the 
        objectives established and activities undertaken under 
        section 103(e) of this title, the Administrator shall 
        develop a schedule for achieving specific, measurable 
        performance goals.
          (2) Resource needs.--The strategy and annual plans 
        shall include estimates of the funds and staff 
        resources needed to accomplish each goal and the 
        additional duties required under section 103(e).
          (3) Submission with president's budget.--Beginning 
        with fiscal year 2007 and each fiscal year thereafter, 
        the Secretary shall submit to Congress, at the same 
        time as the President's budget submission, the 
        Administration's performance goals and schedule 
        developed under paragraph (1), including an assessment 
        of the progress of the Administration toward achieving 
        its performance goals.

                       Subtitle V. Rail Programs

                           Part B--Assistance

        CHAPTER 225. STATE RAIL PLANS AND HIGH PRIORITY PROJECTS

    Sec.
    22501. Definitions
    22502. Authority
    22503. Purposes
    22504. Transparency; coordination; review
    22505. Content
    22506. Review

Sec. 22501. Definitions

  In this subchapter:
          (1) Private benefit.--
                  (A) In general.--The term ``private 
                benefit''--
                          (i) means a benefit accrued to a 
                        person or private entity, other than 
                        the National Railroad Passenger 
                        Corporation, 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; and
                          (ii) shall be determined on a 
                        project-by-project basis, based upon an 
                        agreement between the parties.
                  (B) Consultation.--The Secretary may seek the 
                advice of the States and rail carriers in 
                further defining this term.
          (2) Public benefit.--
                  (A) In general.--The term ``public 
                benefit''--
                          (i) 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; and
                          (ii) shall be determined on a 
                        project-by-project basis, based upon an 
                        agreement between the parties.
                  (B) Consultation.--The Secretary may 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.''.

Sec. 22502. Authority

  (a) In General.--Each State may prepare and maintain a State 
rail plan in accordance with the provisions of this subchapter.
  (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 review; and
          (4) revise and resubmit a State-approved plan no less 
        frequently than once every 5 years for reapproval by 
        the Secretary.

Sec. 22503. 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 enhance 
        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. 22504. 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.

Sec. 22505. Content

  (a) In General.--Each State rail plan shall contain the 
following:
          (1) An inventory of the existing overall rail 
        transportation system and rail services and facilities 
        within the State and an analysis of the role of rail 
        transportation within the State's surface 
        transportation system.
          (2) A review of all rail lines within the State, 
        including proposed high speed rail corridors and 
        significant rail line segments not currently in 
        service.
          (3) A statement of the State's 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 investment program for current 
        and future freight and passenger infrastructure 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 public capital and operating 
        funding resources, public subsidies, State taxation, 
        and other financial policies relating to rail 
        infrastructure development.
          (7) An identification of rail infrastructure issues 
        within the State that reflects consultation with all 
        relevant stake holders.
          (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 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.
          (10) 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.
          (11) A compilation of studies and reports on high-
        speed rail corridor development within the State not 
        included in a previous plan under this subchapter, and 
        a plan for funding any recommended development of such 
        corridors in the State.
          (12) 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 investment 
        program included in a State rail plan under subsection 
        (a)(5) shall include the following matters:
                  (A) A list of any rail capital projects 
                expected to be undertaken or supported in whole 
                or in part by the State.
                  (B) A detailed funding plan for those 
                projects.
          (2) Project list content.--The list of 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 list of freight and intercity passenger rail 
        capital projects, a State rail transportation authority 
        should 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) Economic and employment impacts.
                  (G) Projected ridership and other service 
                measures for passenger rail projects.

Sec. 22506. Review

  The Secretary shall prescribe procedures for States to submit 
State rail plans for review under this title, including 
standardized format and data requirements.

                    Part C--Passenger Transportation

                          CHAPTER 241. GENERAL

Sec. 24102. Definitions

  In this part--
          (1) ``auto-ferry transportation'' means intercity 
        rail passenger transportation--
                  (A) of automobiles or recreational vehicles 
                and their occupants; and
                  (B) when space is available, of used 
                unoccupied vehicles.
          [(2) ``basic system'' means the system of intercity 
        rail passenger transportation designated by the 
        Secretary of Transportation under section 4 of the 
        Amtrak Improvement Act of 1978 and approved by 
        Congress, and transportation required to be provided 
        under section 24705(a) of this title and section 4(g) 
        of the Act, including changes in the system or 
        transportation that Amtrak makes using the route and 
        service criteria.]
          [(3)] (2) ``commuter authority'' means a State, 
        local, or regional entity established to provide, or 
        make a contract providing for, commuter rail passenger 
        transportation.
          [(4)] (3) ``commuter rail passenger transportation'' 
        means short-haul rail passenger transportation in 
        metropolitan and suburban areas usually having reduced 
        fare, multiple-ride, and commuter tickets and morning 
        and evening peak period operations.
          [(5)] (4) ``intercity rail passenger transportation'' 
        means rail passenger transportation, except commuter 
        rail passenger transportation.
          (5) ``national rail passenger transportation system'' 
        means--
                  (A) the segment of the Northeast Corridor 
                between Boston, Massachusetts and Washington, 
                D.C.;
                  (B) rail corridors that have been designated 
                by the Secretary of Transportation as high-
                speed corridors (other than corridors described 
                in subparagraph (A)), but only after they have 
                been improved to permit operation of high-speed 
                service;
                  (C) long-distance routes of more than 750 
                miles between endpoints operated by Amtrak as 
                of the date of enactment of the Passenger Rail 
                Investment and Improvement Act of 2005; and
                  (D) short-distance corridors, or routes of 
                not more than 750 miles between endpoints, 
                operated by--
                          (i) Amtrak; or
                          (ii) another rail carrier that 
                        receives funds under chapter 244.
          (6) ``Northeast Corridor'' means Connecticut, 
        Delaware, the District of Columbia, Maryland, 
        Massachusetts, New Jersey, New York, Pennsylvania, and 
        Rhode Island.
          (7) ``rail carrier'' means a person, including a unit 
        of State or local government, providing rail 
        transportation for compensation.
          (8) ``rate'' means a rate, fare, or charge for rail 
        transportation.
          (9) ``regional transportation authority'' means an 
        entity established to provide passenger transportation 
        in a region.

                          CHAPTER 243. AMTRAK

[Sec. 24302. Board of directors

  [(a) Reform Board.--
          [(1) Establishment and duties.--The Reform Board 
        described in paragraph (2) shall assume the 
        responsibilities of the Board of Directors of Amtrak by 
        March 31, 1998, or as soon thereafter as at least 4 
        members have been appointed and qualified. The Board 
        appointed under prior law shall be abolished when the 
        Reform Board assumes such responsibilities.
          [(2) Membership.--
                  [(A)(i) The Reform Board shall consist of 7 
                voting members appointed by the President, by 
                and with the advice and consent of the Senate, 
                for a term of 5 years.
                          [(ii) Notwithstanding clause (i), if 
                        the Secretary of Transportation is 
                        appointed to the Reform Board, such 
                        appointment shall not be subject to the 
                        advice and consent of the Senate. If 
                        appointed, the Secretary may be 
                        represented at Board meetings by his 
                        designee.
                  [(B) In selecting the individuals described 
                in subparagraph (A) for nominations for 
                appointments to the Reform Board, the President 
                should consult with the Speaker of the House of 
                Representatives, the Minority Leader of the 
                House of Representatives, the Majority Leader 
                of the Senate, and the Minority Leader of the 
                Senate.
                  [(C) Appointments under subparagraph (A) 
                shall be made from among individuals who--
                          [(i) have technical qualifications, 
                        professional standing, and demonstrated 
                        expertise in the fields of 
                        transportation or corporate or 
                        financial management;
                          [(ii) are not representatives of rail 
                        labor or rail management; and
                          [(iii) in the case of 6 of the 7 
                        individuals selected, are not employees 
                        of Amtrak or of the United States.
                  [(D) The President of Amtrak shall serve as 
                an ex officio, nonvoting member of the Reform 
                Board.
          [(3) Confirmation procedure in Senate.--
                  [(A) This paragraph is enacted by the 
                Congress--
                          [(i) as an exercise of the rulemaking 
                        power of the Senate, and as such it is 
                        deemed a part of the rules of the 
                        Senate, but applicable only with 
                        respect to the procedure to be followed 
                        in the Senate in the case of a motion 
                        to discharge; and it supersedes other 
                        rules only to the extent that it is 
                        inconsistent therewith; and
                          [(ii) with full recognition of the 
                        constitutional right of the Senate to 
                        change the rules (so far as relating to 
                        the procedure of the Senate) at any 
                        time, in the same manner and to the 
                        same extent as in the case of any other 
                        rule of the Senate.
                  [(B) If, by the first day of June on which 
                the Senate is in session after a nomination is 
                submitted to the Senate under this section, the 
                committee to which the nomination was referred 
                has not reported the nomination, then it shall 
                be discharged from further consideration of the 
                nomination and the nomination shall be placed 
                on the Executive Calendar.
                  [(C) It shall be in order at any time 
                thereafter to move to proceed to the 
                consideration of the nomination without any 
                intervening action or debate.
                  [(D) After no more than 10 hours of debate on 
                the nomination, which shall be evenly divided 
                between, and controlled by, the Majority Leader 
                and the Minority Leader, the Senate shall 
                proceed without intervening action to vote on 
                the nomination.
  [(b) Board of Directors.--Five years after the establishment 
of the Reform Board under subsection (a), a Board of Directors 
shall be selected--
          [(1) if Amtrak has, during the then current fiscal 
        year, received Federal assistance, in accordance with 
        the procedures set forth in subsection (a)(2); or
          [(2) if Amtrak has not, during the then current 
        fiscal year, received Federal assistance, pursuant to 
        bylaws adopted by the Reform Board (which shall provide 
        for employee representation), and the Reform Board 
        shall be dissolved.
  [(c) Authority to recommend plan.--The Reform Board shall 
have the authority to recommend to the Congress a plan to 
implement the recommendations of the 1997 Working Group on 
Inter- City Rail regarding the transfer of Amtrak's 
infrastructure assets and responsibilities to a new separately 
governed corporation.]

Sec. 24302. Board of directors

  (a) Composition and Terms.--
          (1) The Board of Directors of Amtrak is composed of 
        the following 9 directors, each of whom must be a 
        citizen of the United States:
                  (A) The Secretary of Transportation.
                  (B) The President of Amtrak.
                  (C) 7 individuals appointed by the President 
                of the United States, by and with the advice 
                and consent of the Senate, with general 
                business and financial experience, experience 
                or qualifications in transportation, freight 
                and passenger rail transportation, travel, 
                hospitality, cruise line, and passenger air 
                transportation businesses, or representatives 
                of users of passenger rail transportation or 
                State government.
          (2) In selecting individuals described in paragraph 
        (1) for nominations for appointments to the Board, the 
        President shall consult with the Speaker of the House 
        of Representatives, the Minority Leader of the House of 
        Representatives, the Majority Leader of the Senate, and 
        the Minority Leader of the Senate and try to provide 
        adequate and balanced representation of the major 
        geographic regions of the United States served by 
        Amtrak.
          (3) An individual appointed under paragraph (1)(C) of 
        this subsection serves for 5 years or until the 
        individual's successor is appointed and qualified. Not 
        more than 4 individuals appointed under paragraph 
        (1)(C) may be members of the same political party.
          (4) The Board shall elect a chairman and a vice 
        chairman from among its membership. The vice chairman 
        shall serve as chairman in the absence of the chairman.
          (5) The Secretary may be represented at board 
        meetings by the Secretary's designee.
  (b) Pay and Expenses.--Each director not employed by the 
United States Government is entitled to $300 a day when 
performing Board duties. Each Director is entitled to 
reimbursement for necessary travel, reasonable secretarial and 
professional staff support, and subsistence expenses incurred 
in attending Board meetings.
  (c) Vacancies.--A vacancy on the Board is filled in the same 
way as the original selection, except that an individual 
appointed by the President of the United States under 
subsection (a)(1)(C) of this section to fill a vacancy 
occurring before the end of the term for which the predecessor 
of that individual was appointed is appointed for the remainder 
of that term. A vacancy required to be filled by appointment 
under subsection (a)(1)(C) must be filled not later than 120 
days after the vacancy occurs.
  (d) Quorum.--A majority of the members serving shall 
constitute a quorum for doing business.
  (e) Bylaws.--The Board may adopt and amend bylaws governing 
the operation of Amtrak. The bylaws shall be consistent with 
this part and the articles of incorporation.

           *       *       *       *       *       *       *

Sec. 24308. Use of facilities and providing services to Amtrak

  (a) General authority.--
          (1) Amtrak may make an agreement with a rail carrier 
        or regional transportation authority to use facilities 
        of, and have services provided by, the carrier or 
        authority under terms on which the parties agree. The 
        terms shall include a penalty for untimely performance.
          (2)(A) If the parties cannot agree and if the 
        [Interstate Commerce Commission] Surface Transportation 
        Board finds it necessary to carry out this part, the 
        [Commission] Board shall--
                          (i) order that the facilities be made 
                        available and the services provided to 
                        Amtrak; and
                          (ii) prescribe reasonable terms and 
                        compensation for using the facilities 
                        and providing the services.
                  (B) When prescribing reasonable compensation 
                under subparagraph (A) of this paragraph, the 
                [Commission] Board shall consider quality of 
                service as a major factor when determining 
                whether, and the extent to which, the amount of 
                compensation shall be greater than the 
                incremental costs of using the facilities and 
                providing the services.
                  (C) The [Commission] Board shall decide the 
                dispute not later than 90 days after Amtrak 
                submits the dispute to the [Commission] Board.
          (3) Amtrak's right to use the facilities or have the 
        services provided is conditioned on payment of the 
        compensation. If the compensation is not paid promptly, 
        the rail carrier or authority entitled to it may bring 
        an action against Amtrak to recover the amount owed.
          (4) Amtrak shall seek immediate and appropriate legal 
        remedies to enforce its contract rights when track 
        maintenance on a route over which Amtrak operates falls 
        below the contractual standard.
  (b) Operating during emergencies.--To facilitate operation by 
Amtrak during an emergency, the [Commission] Board, on 
application by Amtrak, shall require a rail carrier to provide 
facilities immediately during the emergency. The [Commission] 
Board then shall promptly prescribe reasonable terms, including 
indemnification of the carrier by Amtrak against personal 
injury risk to which the carrier may be exposed. The rail 
carrier shall provide the facilities for the duration of the 
emergency.
  (c) Preference over freight transportation.--Except in an 
emergency, intercity and commuter rail passenger transportation 
provided by or for Amtrak has preference over freight 
transportation in using a rail line, junction, or crossing 
unless the Secretary of Transportation orders otherwise under 
this subsection. A rail carrier affected by this subsection may 
apply to the [Secretary] Board for relief. If the [Secretary,] 
Board, after an opportunity for a hearing under section 553 of 
title 5, decides that preference for intercity and commuter 
rail passenger transportation materially will lessen the 
quality of freight transportation provided to shippers, the 
[Secretary] Board shall establish the rights of the carrier and 
Amtrak on reasonable terms.
  (d) Accelerated speeds.--If a rail carrier refuses to allow 
accelerated speeds on trains operated by or for Amtrak, Amtrak 
may apply to the Secretary for an order requiring the carrier 
to allow the accelerated speeds. The Secretary shall decide 
whether accelerated speeds are unsafe or impracticable and 
which improvements would be required to make accelerated speeds 
safe and practicable. After an opportunity for a hearing, the 
Secretary shall establish the maximum allowable speeds of 
Amtrak trains on terms the Secretary decides are reasonable.
  (e) Additional trains.--
          (1) When a rail carrier does not agree to provide, or 
        allow Amtrak to provide, for the operation of 
        additional trains over a rail line of the carrier, 
        Amtrak may apply to the Secretary for an order 
        requiring the carrier to provide or allow for the 
        operation of the requested trains. After a hearing on 
        the record, the Secretary may order the carrier, within 
        60 days, to provide or allow for the operation of the 
        requested trains on a schedule based on legally 
        permissible operating times. However, if the Secretary 
        decides not to hold a hearing, the Secretary, not later 
        than 30 days after receiving the application, shall 
        publish in the Federal Register the reasons for the 
        decision not to hold the hearing.
          (2) The Secretary shall consider--
                  (A) when conducting a hearing, whether an 
                order would impair unreasonably freight 
                transportation of the rail carrier, with the 
                carrier having the burden of demonstrating that 
                the additional trains will impair the freight 
                transportation; and
                  (B) when establishing scheduled running 
                times, the statutory goal of Amtrak to 
                implement schedules that attain a system-wide 
                average speed of at least 60 miles an hour that 
                can be adhered to with a high degree of 
                reliability and passenger comfort.
          (3) Unless the parties have an agreement that 
        establishes the compensation Amtrak will pay the 
        carrier for additional trains provided under an order 
        under this subsection, the [Commission] Board shall 
        decide the dispute under subsection (a) of this 
        section.
  (f) Passenger Train Performance and Other Standards.--
          (1) Investigation of substandard performance.--If the 
        on-time performance of any intercity passenger train 
        averages less than 80 percent for any 2 consecutive 
        calendar quarters, or the service quality of intercity 
        train operations for which minimum standards are 
        established under section 208 of the Passenger Rail 
        Investment and Improvement Act of 2005 fails to meet 
        those standards for 2 consecutive calendar quarters, 
        the Surface Transportation Board shall investigate 
        whether, and to what extent, delays or failure to 
        achieve minimum standards are due to causes that could 
        reasonably be addressed by a rail carrier over the 
        tracks of which the intercity passenger train operates 
        or reasonably addressed by the intercity passenger rail 
        operator. In carrying out such an investigation, the 
        Board shall obtain information from all parties 
        involved and make recommendations regarding reasonable 
        measures to improve the service, quality, and on-time 
        performance of the train.
          (2) Problems caused by host rail carrier.--If the 
        Board determines that delays or failures to achieve 
        minimum standards investigated under paragraph (1) are 
        attributable to a rail carrier's failure to provide 
        preference to Amtrak over freight transportation under 
        subsection (c), then the Board shall enforce its 
        recommendations for relief under this section.
          (3) Penalties.--
                  (A) In general.--The Board shall publish a 
                schedule of penalties which will--
                  (A) fairly reflect the extent to which Amtrak 
                suffers financial loss as a result of host rail 
                carrier delays or failure to achieve minimum 
                standards; and
                  (B) will adequately deter future actions 
                which may reasonably be expected to be likely 
                to result in delays to Amtrak.
                  (B) Assessment.--The Board may assess these 
                penalties upon a host rail carrier.
                  (C) Use.--The Board shall make any amounts 
                received as penalties under this paragraph 
                available to Amtrak.

           *       *       *       *       *       *       *

Sec. 24316. Plans to address needs of families of passengers involved 
                    in rail passenger accidents

  (a) Submission of Plan.--Not later than 6 months after the 
date of the enactment of the Passenger Rail Investment and 
Improvement Act of 2005, Amtrak shall submit to the Chairman of 
the National Transportation Safety Board and the Secretary of 
Transportation a plan for addressing the needs of the families 
of passengers involved in any rail passenger accident involving 
an Amtrak intercity train and resulting in a loss of life.
  (b) Contents of Plans.--The plan to be submitted by Amtrak 
under subsection (a) shall include, at a minimum, the 
following:
          (1) A process by which Amtrak will maintain and 
        provide to the National Transportation Safety Board and 
        the Secretary of Transportation, immediately upon 
        request, a list (which is based on the best available 
        information at the time of the request) of the names of 
        the passengers aboard the train (whether or not such 
        names have been verified), and will periodically update 
        the list. The plan shall include a procedure, with 
        respect to unreserved trains and passengers not holding 
        reservations on other trains, for Amtrak to use 
        reasonable efforts to ascertain the number and names of 
        passengers aboard a train involved in an accident.
          (2) A plan for creating and publicizing a reliable, 
        toll-free telephone number within 4 hours after such an 
        accident occurs, and for providing staff, to handle 
        calls from the families of the passengers.
          (3) A process for notifying the families of the 
        passengers, before providing any public notice of the 
        names of the passengers, by suitably trained 
        individuals.
          (4) A process for providing the notice described in 
        paragraph (2) to the family of a passenger as soon as 
        Amtrak has verified that the passenger was aboard the 
        train (whether or not the names of all of the 
        passengers have been verified).
          (5) A process by which the family of each passenger 
        will be consulted about the disposition of all remains 
        and personal effects of the passenger within Amtrak's 
        control; that any possession of the passenger within 
        Amtrak's control will be returned to the family unless 
        the possession is needed for the accident investigation 
        or any criminal investigation; and that any unclaimed 
        possession of a passenger within Amtrak's control will 
        be retained by the rail passenger carrier for at least 
        18 months.
          (6) A process by which the treatment of the families 
        of nonrevenue passengers will be the same as the 
        treatment of the families of revenue passengers.
          (7) An assurance that Amtrak will provide adequate 
        training to its employees and agents to meet the needs 
        of survivors and family members following an accident.
  (c) Use of Information.--The National Transportation Safety 
Board, the Secretary of Transportation, and Amtrak may not 
release to any person information on a list obtained under 
subsection (b)(1) but may provide information on the list about 
a passenger to the family of the passenger to the extent that 
the Board or Amtrak considers appropriate.
  (d) Limitation on Liability.--Amtrak shall not be liable for 
damages in any action brought in a Federal or State court 
arising out of the performance of Amtrak in preparing or 
providing a passenger list, or in providing information 
concerning a train reservation, pursuant to a plan submitted by 
Amtrak under subsection (b), unless such liability was caused 
by Amtrak's conduct.
  (e) Limitation on Statutory Construction.--Nothing in this 
section may be construed as limiting the actions that Amtrak 
may take, or the obligations that Amtrak may have, in providing 
assistance to the families of passengers involved in a rail 
passenger accident.
  (f) Funding.--There are authorized to be appropriated to the 
Secretary of Transportation for the use of Amtrak $500,000 for 
fiscal year 2006 to carry out this section. Amounts made 
available pursuant to this subsection shall remain available 
until expended.

     CHAPTER 244--INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL 
                               ASSISTANCE

Sec.
24401. Definitions.
24402. Capital investment grants to support intercity passenger rail 
          service.
24403. Project management oversight.
24404. Use of capital grants to finance first-dollar liability of grant 
          project.
24405. Grant conditions.

Sec. 24401. Definitions

  In this subchapter:
          (1) Applicant.--The term ``applicant'' means a State 
        (including the District of Columbia), a group of 
        States, an Interstate Compact, or a public agency 
        established by one or more States and having 
        responsibility for providing intercity passenger rail 
        service.
          (2) Capital project.--The term ``capital project'' 
        means a project or program in a State rail plan 
        developed under chapter 225 of this title for--
                  (A) acquiring, constructing, improving, or 
                inspecting equipment or a facility for use in 
                or for the primary benefit of intercity 
                passenger rail service, expenses incidental to 
                the acquisition or construction (including 
                designing, engineering, location surveying, 
                mapping, environmental studies, and acquiring 
                rights-of-way), payments for the capital 
                portions of rail trackage rights agreements, 
                highway-rail grade crossing improvements 
                related to intercity passenger rail service, 
                security, mitigating environmental impacts, 
                communication and signalization improvements, 
                relocation assistance, acquiring replacement 
                housing sites, and acquiring, constructing, 
                relocating, and rehabilitating replacement 
                housing;
                  (B) rehabilitating, remanufacturing or 
                overhauling rail rolling stock and facilities 
                used primarily in intercity passenger rail 
                service;
                  (C) costs associated with developing State 
                rail plans; and
                  (D) the first-dollar liability costs for 
                insurance related to the provision of intercity 
                passenger rail service under section 24404.
          (3) Intercity passenger rail service.--The term 
        ``intercity passenger rail service'' means 
        transportation services with the primary purpose of 
        passenger transportation between towns, cities and 
        metropolitan areas by rail, including high-speed rail, 
        as defined in section 24102 of title 49, United States 
        Code.

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

  (a) General Authority.--
          (1) The Secretary of Transportation may make grants 
        under this section to an applicant to assist in 
        financing the capital costs of facilities and equipment 
        necessary to provide or improve intercity passenger 
        rail transportation.
          (2) The Secretary shall require that a grant under 
        this section be subject to the terms, conditions, 
        requirements, and provisions the Secretary decides are 
        necessary or appropriate for the purposes of this 
        section, including requirements for the disposition of 
        net increases in value of real property resulting from 
        the project assisted under this section and shall 
        prescribe procedures and schedules for the awarding of 
        grants under this title, including application and 
        qualification procedures and a record of decision on 
        applicant eligibility. The Secretary shall issue a 
        final rule establishing such procedures not later than 
        90 days after the date of enactment of the Passenger 
        Rail Investment and Improvement Act of 2005.
  (b) Project as Part of State Rail Plan.--
          (1) The Secretary may not approve a grant for a 
        project under this section unless the Secretary finds 
        that the project is part of a State rail plan developed 
        under chapter 225 of this title and that the applicant 
        or recipient has or will have the legal, financial, and 
        technical capacity to carry out the project, 
        satisfactory continuing control over the use of the 
        equipment or facilities, and the capability and 
        willingness to maintain the equipment or facilities.
          (2) An applicant shall provide sufficient information 
        upon which the Secretary can make the findings required 
        by this subsection.
          (3) If an applicant has not selected the proposed 
        operator of its service competitively, the applicant 
        shall provide written justification to the Secretary 
        showing why the proposed operator is the best, taking 
        into account price and other factors, and that use of 
        the proposed operator will not unnecessarily increase 
        the cost of the project.
  (c) Project Selection Criteria.--The Secretary, in selecting 
the recipients of financial assistance to be provided under 
subsection (a), shall--
          (1) require that each proposed project meet all 
        safety and security requirements that are applicable to 
        the project under law;
          (2) give preference to projects with high levels of 
        estimated ridership, increased on-time performance, 
        reduced trip time, additional service frequency, or 
        other significant service enhancements as measured 
        against minimum standards developed under section 208 
        of the Passenger Rail Investment and Improvement Act of 
        2005;
          (3) encourage intermodal connectivity through 
        projects that provide direct connections between train 
        stations, airports, bus terminals, subway stations, 
        ferry ports, and other modes of transportation;
          (4) ensure that each project is compatible with, and 
        is operated in conformance with--
                  (A) plans developed pursuant to the 
                requirements of section 135 of title 23, United 
                States Code; and
                  (B) the national rail plan (if it is 
                available); and
          (5) favor the following kinds of projects:
                  (A) Projects that are expected to have a 
                significant favorable impact on air or highway 
                traffic congestion, capacity, or safety.
                  (B) Projects that also improve freight or 
                commuter rail operations.
                  (C) Projects that have significant 
                environmental benefits.
                  (D) Projects that are--
                          (i) at a stage of preparation that 
                        all pre-commencement compliance with 
                        environmental protection requirements 
                        has already been completed; and
                          (ii) ready to be commenced.
                  (E) Projects with positive economic and 
                employment impacts.
                  (F) Projects that encourage the use of 
                positive train control technologies.
                  (G) Projects that have commitments of funding 
                from non-Federal Government sources in a total 
                amount that exceeds the minimum amount of the 
                non-Federal contribution required for the 
                project.
                  (H) Projects that involve donated property 
                interests or services.
                  (I) Projects that are identified by the 
                Surface Transportation Board as necessary to 
                improve the on time performance and reliability 
                of intercity passenger rail under section 
                24308(f).
  (d) Amtrak Eligibility.--To receive a grant under this 
section, the National Railroad Passenger Corporation may enter 
into a cooperative agreement with 1 or more States to carry out 
1 or more projects on a State rail plan's ranked list of rail 
capital projects developed under section 22504(a)(5) of this 
title.
  (e) Letters of Intent, Full Funding Grant Agreements, and 
Early Systems Work Agreements.--
          (1)(A) The Secretary may issue a letter of intent to 
        an applicant announcing an intention to obligate, for a 
        major capital project under this section, an amount 
        from future available budget authority specified in law 
        that is not more than the amount stipulated as the 
        financial participation of the Secretary in the 
        project.
                  (B) At least 30 days before issuing a letter 
                under subparagraph (A) of this paragraph or 
                entering into a full funding grant agreement, 
                the Secretary shall notify in writing the 
                Committee on Transportation and Infrastructure 
                of the House of Representatives and the 
                Committee on Commerce, Science, and 
                Transportation of the Senate and the House and 
                Senate Committees on Appropriations of the 
                proposed letter or agreement. The Secretary 
                shall include with the notification a copy of 
                the proposed letter or agreement as well as the 
                evaluations and ratings for the project.
                  (C) An obligation or administrative 
                commitment may be made only when amounts are 
                appropriated.
          (2)(A) The Secretary may make a full funding grant 
        agreement with an applicant. The agreement shall--
                          (i) establish the terms of 
                        participation by the United States 
                        Government in a project under this 
                        section;
                          (ii) establish the maximum amount of 
                        Government financial assistance for the 
                        project;
                          (iii) cover the period of time for 
                        completing the project, including a 
                        period extending beyond the period of 
                        an authorization; and
                          (iv) make timely and efficient 
                        management of the project easier 
                        according to the law of the United 
                        States.
                  ``(B) An agreement under this paragraph 
                obligates an amount of available budget 
                authority specified in law and may include a 
                commitment, contingent on amounts to be 
                specified in law in advance for commitments 
                under this paragraph, to obligate an additional 
                amount from future available budget authority 
                specified in law. The agreement shall state 
                that the contingent commitment is not an 
                obligation of the Government and is subject to 
                the availability of appropriations made by 
                Federal law and to Federal laws in force on or 
                enacted after the date of the contingent 
                commitment. Interest and other financing costs 
                of efficiently carrying out a part of the 
                project within a reasonable time are a cost of 
                carrying out the project under a full funding 
                grant agreement, except that eligible costs may 
                not be more than the cost of the most favorable 
                financing terms reasonably available for the 
                project at the time of borrowing. The applicant 
                shall certify, in a way satisfactory to the 
                Secretary, that the applicant has shown 
                reasonable diligence in seeking the most 
                favorable financing terms.
          (3)(A) The Secretary may make an early systems work 
        agreement with an applicant if a record of decision 
        under the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.) has been issued on the project and 
        the Secretary finds there is reason to believe--
                          (i) a full funding grant agreement 
                        for the project will be made; and
                          (ii) the terms of the work agreement 
                        will promote ultimate completion of the 
                        project more rapidly and at less cost.
                  (B) A work agreement under this paragraph 
                obligates an amount of available budget 
                authority specified in law and shall provide 
                for reimbursement of preliminary costs of 
                carrying out the project, including land 
                acquisition, timely procurement of system 
                elements for which specifications are decided, 
                and other activities the Secretary decides are 
                appropriate to make efficient, long-term 
                project management easier. A work agreement 
                shall cover the period of time the Secretary 
                considers appropriate. The period may extend 
                beyond the period of current authorization. 
                Interest and other financing costs of 
                efficiently carrying out the work agreement 
                within a reasonable time are a cost of carrying 
                out the agreement, except that eligible costs 
                may not be more than the cost of the most 
                favorable financing terms reasonably available 
                for the project at the time of borrowing. The 
                applicant shall certify, in a way satisfactory 
                to the Secretary, that the applicant has shown 
                reasonable diligence in seeking the most 
                favorable financing terms. If an applicant does 
                not carry out the project for reasons within 
                the control of the applicant, the applicant 
                shall repay all Government payments made under 
                the work agreement plus reasonable interest and 
                penalty charges the Secretary establishes in 
                the agreement.
          (4) The total estimated amount of future obligations 
        of the Government and contingent commitments to incur 
        obligations covered by all outstanding letters of 
        intent, full funding grant agreements, and early 
        systems work agreements may be not more than the amount 
        authorized under section 101(c) of Passenger Rail 
        Investment and Improvement Act of 2005, less an amount 
        the Secretary reasonably estimates is necessary for 
        grants under this section not covered by a letter. The 
        total amount covered by new letters and contingent 
        commitments included in full funding grant agreements 
        and early systems work agreements may be not more than 
        a limitation specified in law.
  (f) Federal Share of Net Project Cost.--
          (1)(A) Based on engineering studies, studies of 
        economic feasibility, and information on the expected 
        use of equipment or facilities, the Secretary shall 
        estimate the net project cost.
                  (B) A grant for the project shall not exceed 
                80 percent of the project net capital cost.
                  (C) The Secretary shall give priority in 
                allocating future obligations and contingent 
                commitments to incur obligations to grant 
                requests seeking a lower Federal share of the 
                project net capital cost.
          (2) Up to an additional 20 percent of the required 
        non-Federal funds may be funded from amounts 
        appropriated to or made available to a department or 
        agency of the Federal Government that are eligible to 
        be expended for transportation.
          (3) 50 percent of the average amounts expended by a 
        State or group of States (including the District of 
        Columbia) for capital projects to benefit intercity 
        passenger rail service in fiscal years 2004 and 2005 
        shall be credited towards the matching requirements for 
        grants awarded under this section. The Secretary may 
        require such information as necessary to verify such 
        expenditures.
          (4) 50 percent of the average amounts expended by a 
        State or group of States (including the District of 
        Columbia) in a fiscal year beginning in 2006 for 
        capital projects to benefit intercity passenger rail 
        service or for the operating costs of such service 
        above the average of expenditures made for such service 
        in fiscal years 2004 and 2005 shall be credited towards 
        the matching requirements for grants awarded under this 
        section. The Secretary may require such information as 
        necessary to verify such expenditures.
  (g) Undertaking Projects in Advance.--
          (1) The Secretary may pay the Federal share of the 
        net capital project cost to an applicant that carries 
        out any part of a project described in this section 
        according to all applicable procedures and requirements 
        if--
                  (A) the applicant applies for the payment;
                  (B) the Secretary approves the payment; and
                  (C) before carrying out the part of the 
                project, the Secretary approves the plans and 
                specifications for the part in the same way as 
                other projects under this section.
          (2) The cost of carrying out part of a project 
        includes the amount of interest earned and payable on 
        bonds issued by the applicant to the extent proceeds of 
        the bonds are expended in carrying out the part. 
        However, the amount of interest under this paragraph 
        may not be more than the most favorable interest terms 
        reasonably available for the project at the time of 
        borrowing. The applicant shall certify, in a manner 
        satisfactory to the Secretary, that the applicant has 
        shown reasonable diligence in seeking the most 
        favorable financial terms.
          (3) The Secretary shall consider changes in capital 
        project cost indices when determining the estimated 
        cost under paragraph (2) of this subsection.
  (h) 2-Year Availability.--Funds appropriated under this 
section shall remain available until expended. If any amount 
provided as a grant under this section is not obligated or 
expended for the purposes described in subsection (a) within 2 
years after the date on which the State received the grant, 
such sums shall be returned to the Secretary for other 
intercity passenger rail development projects under this 
section at the discretion of the Secretary.
  (i) Public-Private Partnerships.--
          (1) In general.--A metropolitan planning 
        organization, State transportation department, or other 
        project sponsor may enter into an agreement with any 
        public, private, or nonprofit entity to cooperatively 
        implement any project funded with a grant under this 
        title.
          (2) Forms of participation.--Participation by an 
        entity under paragraph (1) may consist of--
                  (A) ownership or operation of any land, 
                facility, locomotive, rail car, vehicle, or 
                other physical asset associated with the 
                project;
                  (B) cost-sharing of any project expense;
                  (C) carrying out administration, construction 
                management, project management, project 
                operation, or any other management or 
                operational duty associated with the project; 
                and
                  (D) any other form of participation approved 
                by the Secretary.
          (3) Sub-allocation.--A State may allocate funds under 
        this section to any entity described in paragraph (1).
  (j) Special Transportation Circumstances.--In carrying out 
this section, the Secretary shall allocate an appropriate 
portion of the amounts available under this section to provide 
grants to States--
          (1) in which there is no intercity passenger rail 
        service for the purpose of funding freight rail capital 
        projects that are on a State rail plan developed under 
        chapter 225 of this title that provide public benefits 
        (as defined in chapter 225) as determined by the 
        Secretary; or
          (2) in which the rail transportation system is not 
        physically connected to rail systems in the continental 
        United States or may not otherwise qualify for a grant 
        under this section due to the unique characteristics of 
        the geography of that State or other relevant 
        considerations, for the purpose of funding 
        transportation-related capital projects.

Sec. 24403. Project management oversight

  (a) Project Management Plan Requirements.--To receive Federal 
financial assistance for a major capital project under this 
subchapter, an applicant must prepare and carry out a project 
management plan approved by the Secretary of Transportation. 
The plan shall provide for--
          (1) adequate recipient staff organization with well-
        defined reporting relationships, statements of 
        functional responsibilities, job descriptions, and job 
        qualifications;
          (2) a budget covering the project management 
        organization, appropriate consultants, property 
        acquisition, utility relocation, systems demonstration 
        staff, audits, and miscellaneous payments the recipient 
        may be prepared to justify;
          (3) a construction schedule for the project;
          (4) a document control procedure and recordkeeping 
        system;
          (5) a change order procedure that includes a 
        documented, systematic approach to handling the 
        construction change orders;
          (6) organizational structures, management skills, and 
        staffing levels required throughout the construction 
        phase;
          (7) quality control and quality assurance functions, 
        procedures, and responsibilities for construction, 
        system installation, and integration of system 
        components;
          (8) material testing policies and procedures;
          (9) internal plan implementation and reporting 
        requirements;
          (10) criteria and procedures to be used for testing 
        the operational system or its major components;
          (11) periodic updates of the plan, especially related 
        to project budget and project schedule, financing, and 
        ridership estimates; and
          (12) the recipient's commitment to submit a project 
        budget and project schedule to the Secretary each 
        month.
  (b) Secretarial Oversight.--
          (1) The Secretary may use no more than 0.5 percent of 
        amounts made available in a fiscal year for capital 
        projects under this subchapter to enter into contracts 
        to oversee the construction of such projects.
          (2) The Secretary may use amounts available under 
        paragraph (1) of this subsection to make contracts for 
        safety, procurement, management, and financial 
        compliance reviews and audits of a recipient of amounts 
        under paragraph (1).
          (3) The Federal Government shall pay the entire cost 
        of carrying out a contract under this subsection.
  (c) Access to Sites and Records.--Each recipient of 
assistance under this subchapter shall provide the Secretary 
and a contractor the Secretary chooses under subsection (c) of 
this section with access to the construction sites and records 
of the recipient when reasonably necessary.

Sec. 24404. Use of capital grants to finance first-dollar liability of 
                    grant project

  Notwithstanding the requirements of section 24402 of this 
subchapter, the Secretary of Transportation may approve the use 
of capital assistance under this subchapter to fund self-
insured retention of risk for the first tier of liability 
insurance coverage for rail passenger service associated with 
the capital assistance grant, but the coverage may not exceed 
$20,000,000 per occurrence or $20,000,000 in aggregate per 
year.

Sec. 24405. Grant conditions

  (a) Domestic Buying Preference.--
          (1) Requirement.--
                  (A) In general.--In carrying out a project 
                funded in whole or in part with a grant under 
                this title, the grant recipient shall purchase 
                only--
                          (i) unmanufactured articles, 
                        material, and supplies mined or 
                        produced in the United States; or
                          (ii) manufactured articles, material, 
                        and supplies manufactured in the United 
                        States substantially from articles, 
                        material, and supplies mined, produced, 
                        or manufactured in the United States.
                  (B) De minimis amount.--Subparagraph (1) 
                applies only to a purchase in an total amount 
                that is not less than $1,000,000.
          (2) Exemptions.--On application of a recipient, the 
        Secretary may exempt a recipient from the requirements 
        of this subsection if the Secretary decides that, for 
        particular articles, material, or supplies--
                  (A) such requirements are inconsistent with 
                the public interest;
                  (B) the cost of imposing the requirements is 
                unreasonable; or
                  (C) the articles, material, or supplies, or 
                the articles, material, or supplies from which 
                they are manufactured, are not mined, produced, 
                or manufactured in the United States in 
                sufficient and reasonably available commercial 
                quantities and are not of a satisfactory 
                quality.
          (3) United States defined.--In this subsection, the 
        term ``the United States'' means the States, 
        territories, and possessions of the United States and 
        the District of Columbia.
  (b) Operators Deemed Rail Carriers and Employers for Certain 
Purposes.--A person that conducts rail operations over rail 
infrastructure constructed or improved with funding provided in 
whole or in part in a grant made under this title--
          (1) shall be considered a rail carrier as defined in 
        section 10102(5) of this title for purposes of this 
        title and any other statute that adopts the that 
        definition or in which that definition applies;
          (2) shall be considered an employer for purposes of 
        the Railroad Retirement Act of 1974 (45 U.S.C. 231 et 
        seq.); and
          (3) shall be considered a carrier for purposes of the 
        Railway Labor Act (43 U.S.C. 151 et seq.).
  (c) Grant Conditions.--The Secretary shall require as a 
condition of making any grant under this title that includes 
the improvement or use of rights-of-way owned by a railroad 
that--
          (1) a written agreement exist between the applicant 
        and the railroad regarding such use and ownership, 
        including--
                  (A) any compensation for such use;
                  (B) assurances regarding the adequacy of 
                infrastructure capacity to accommodate both 
                existing and future freight and passenger 
                operations; and
                  (C) an assurance by the railroad that 
                collective bargaining agreements with the 
                railroad's employees (including terms 
                regulating the contracting of work) will remain 
                in full force and effect according to their 
                terms for work performed by the railroad on the 
                railroad transportation corridor; and
          (2) the applicant agrees to comply with--
                  (A) the standards of section 24312 of this 
                title, as such section was in effect on 
                September 1, 2003, with respect to the project 
                in the same manner that the National Railroad 
                Passenger Corporation is required to comply 
                with those standards for construction work 
                financed under an agreement made under section 
                24308(a) of this title; and
                  (B) the protective arrangements established 
                under section 504 of the Railroad 
                Revitalization and Regulatory Reform Act of 
                1976 (45 U.S.C. 836) with respect to employees 
                affected by actions taken in connection with 
                the project to be financed in whole or in part 
                by grants under this subchapter.
  (d) Replacement of Existing Intercity Passenger Rail 
Service.--
          (1) Collective bargaining agreement for intercity 
        passenger rail projects.--Any entity providing 
        intercity passenger railroad transportation that begins 
        operations after the date of enactment of this Act on a 
        project funded in whole or in part by grants made under 
        this title and replaces intercity rail passenger 
        service that was provided by Amtrak, unless such 
        service was provided solely by Amtrak to another 
        entity, as of such date shall enter into an agreement 
        with the authorized bargaining agent or agents for 
        adversely affected employees of the predecessor 
        provider that--
                  (A) gives each such qualified employee of the 
                predecessor provider priority in hiring 
                according to the employee's seniority on the 
                predecessor provider for each position with the 
                replacing entity that is in the employee's 
                craft or class and is available within 3 years 
                after the termination of the service being 
                replaced;
                  (B) establishes a procedure for notifying 
                such an employee of such positions;
                  (C) establishes a procedure for such an 
                employee to apply for such positions; and
                  (D) establishes rates of pay, rules, and 
                working conditions.
          (2) Immediate replacement service.--
                  (A) Negotiations.--If the replacement of 
                preexisting intercity rail passenger service 
                occurs concurrent with or within a reasonable 
                time before the commencement of the replacing 
                entity's rail passenger service, the replacing 
                entity shall give written notice of its plan to 
                replace existing rail passenger service to the 
                authorized collective bargaining agent or 
                agents for the potentially adversely affected 
                employees of the predecessor provider at least 
                90 days before the date on which it plans to 
                commence service. Within 5 days after the date 
                of receipt of such written notice, negotiations 
                between the replacing entity and the collective 
                bargaining agent or agents for the employees of 
                the predecessor provider shall commence for the 
                purpose of reaching agreement with respect to 
                all matters set forth in subparagraphs (A) 
                through (D) of paragraph (1). The negotiations 
                shall continue for 30 days or until an 
                agreement is reached, whichever is sooner. If 
                at the end of 30 days the parties have not 
                entered into an agreement with respect to all 
                such matters, the unresolved issues shall be 
                submitted for arbitration in accordance with 
                the procedure set forth in subparagraph (B).
                  (B) Arbitration.--If an agreement has not 
                been entered into with respect to all matters 
                set forth in subparagraphs (A) through (D) of 
                paragraph (1) as described in subparagraph (A) 
                of this paragraph, the parties shall select an 
                arbitrator. If the parties are unable to agree 
                upon the selection of such arbitrator within 5 
                days, either or both parties shall notify the 
                National Mediation Board, which shall provide a 
                list of seven arbitrators with experience in 
                arbitrating rail labor protection disputes. 
                Within 5 days after such notification, the 
                parties shall alternately strike names from the 
                list until only 1 name remains, and that person 
                shall serve as the neutral arbitrator. Within 
                45 days after selection of the arbitrator, the 
                arbitrator shall conduct a hearing on the 
                dispute and shall render a decision with 
                respect to the unresolved issues among the 
                matters set forth in subparagraphs (A) through 
                (D) of paragraph (1). This decision shall be 
                final, binding, and conclusive upon the 
                parties. The salary and expenses of the 
                arbitrator shall be borne equally by the 
                parties; all other expenses shall be paid by 
                the party incurring them.
          (3) Service commencement.--A replacing entity under 
        this subsection shall commence service only after an 
        agreement is entered into with respect to the matters 
        set forth in subparagraphs (A) through (D) of paragraph 
        (1) or the decision of the arbitrator has been 
        rendered.
          (4) Subsequent replacement of service.--If the 
        replacement of existing rail passenger service takes 
        place within 3 years after the replacing entity 
        commences intercity passenger rail service, the 
        replacing entity and the collective bargaining agent or 
        agents for the adversely affected employees of the 
        predecessor provider shall enter into an agreement with 
        respect to the matters set forth in subparagraphs (A) 
        through (D) of paragraph (1). If the parties have not 
        entered into an agreement with respect to all such 
        matters within 60 days after the date on which the 
        replacing entity replaces the predecessor provider, the 
        parties shall select an arbitrator using the procedures 
        set forth in paragraph (2)(B), who shall, within 20 
        days after the commencement of the arbitration, conduct 
        a hearing and decide all unresolved issues. This 
        decision shall be final, binding, and conclusive upon 
        the parties.
  (e) Inapplicability to Certain Rail Operations.-- Nothing in 
this section applies to--
          (1) commuter rail passenger transportation (as 
        defined in section 24102(4) of this title) operations 
        of a State or local government authority (as those 
        terms are defined in section 5302(11) and (6), 
        respectively, of this title) eligible to receive 
        financial assistance under section 5307 of this title, 
        or to its contractor performing services in connection 
        with commuter rail passenger operations (as so 
        defined);
          (2) the Alaska Railroad or its contractors; or
          (3) the National Railroad Passenger Corporation's 
        access rights to railroad rights of way and facilities 
        under current law for projects funded under this title 
        where train operating speeds do not exceed 79 miles per 
        hour.

           *       *       *       *       *       *       *

                    CHAPTER 247. AMTRAK ROUTE SYSTEM

Sec. 24701. National rail passenger transportation system

                           [49 U.S.C. 24701]

  Amtrak shall operate a national rail passenger transportation 
system which ties together existing and emergent regional rail 
passenger service and other intermodal passenger service.

Sec. 24702. Transportation requested by States, authorities, and other 
                    persons

  (a) Contracts for Transportation.--Amtrak and a State, a 
regional or local authority, or another person may enter into a 
contract for Amtrak to operate an intercity rail service or 
route not included in the national rail passenger 
transportation system upon such terms as the parties thereto 
may agree.
  (b) Discontinuance.--Upon termination of a contract entered 
into under this section, or the cessation of financial support 
under such a contract by either party, Amtrak may discontinue 
such service or route, notwithstanding any other provision of 
law.

           *       *       *       *       *       *       *

Sec. 24706. Discontinuance

  (a) Notice of discontinuance.--
          (1) Except as provided in subsection (b) of this 
        section, at least 180 days before a discontinuance 
        under section 24704 or discontinuing service over a 
        route, Amtrak shall give notice of the discontinuance 
        in the way Amtrak decides will give a State, a regional 
        or local authority, or another person the opportunity 
        to agree to share or assume the cost of any part of the 
        train, route, or service to be discontinued.
          (2) Notice of the discontinuance under section 24704 
        or paragraph (1) shall be posted in all stations served 
        by the train to be discontinued at least 14 days before 
        the discontinuance.
  (b) Discontinuance for lack of appropriations.--
          (1) Amtrak may discontinue service under section 
        24704 or subsection (a)(1) during--
                  (A) the first month of a fiscal year if the 
                authorization of appropriations and the 
                appropriations for Amtrak are not enacted at 
                least 90 days before the beginning of the 
                fiscal year; and
                  (B) the 30 days following enactment of an 
                appropriation for Amtrak or a rescission of an 
                appropriation.
          (2) Amtrak shall notify each affected State or 
        regional or local transportation authority of a 
        discontinuance under this subsection as soon as 
        possible after Amtrak decides to discontinue the 
        service.
  (c) Applicability.--This section applies to all service over 
routes provided by Amtrak, notwithstanding any provision of 
section 24701 of this title or any other provision of this 
title.

Sec. 24710. Long distance routes

  (a) Annual Evaluation.--Using the financial and performance 
metrics developed under section 208 of the Passenger Rail 
Investment and Improvement Act of 2005, Amtrak shall--
          (1) evaluate annually the performance of each long-
        distance passenger rail route operated by Amtrak; and
          (2) rank the overall performance of such routes for 
        2006 and identify each long-distance passenger rail 
        route operated by Amtrak in 2006 according to its 
        overall performance as belonging to the best performing 
        third of such routes, the second best performing third 
        of such routes, or the worst performing third of such 
        routes.
  (b) Performance Improvement Plan.--Amtrak shall develop a 
performance improvement plan for its long-distance passenger 
rail routes based on the data collected through the application 
of the financial and performance metrics developed under 
section 208 of that Act. The plan shall address--
          (1) on-time performance;
          (2) scheduling, frequency, routes, and stops;
          (3) the feasibility of restructuring service into 
        connected corridor service;
          (4) performance-related equipment changes and capital 
        improvements;
          (5) on-board amenities and service, including food, 
        first class, and sleeping car service;
          (6) State or other non-Federal financial 
        contributions; and
          (7) other aspects of Amtrak's long-distance passenger 
        rail routes that affect the financial, competitive, and 
        functional performance of service on Amtrak's long-
        distance passenger rail routes.
  (c) Implementation.--Amtrak shall implement the performance 
improvement plan developed under subsection (b)--
          (1) beginning in fiscal year 2007 for those routes 
        identified as being in the worst performing third under 
        subsection (a)(3);
          (2) beginning in fiscal year 2008 for those routes 
        identified as being in the second best performing third 
        under subsection (a)(3); and
          (3) beginning in fiscal year 2009 for those routes 
        identified as being in the best performing third under 
        subsection (a)(3).
  (d) Enforcement.--The Federal Railroad Administration shall 
monitor the development, implementation, and outcome of 
improvement plans under this section. If, for any year, it 
determines that Amtrak is not making reasonable progress in 
implementing its performance improvement plan or in achieving 
the expected outcome of the plan for any calendar year, the 
Federal Railroad Administration--
          (1) shall notify Amtrak of its determination under 
        this subsection;
          (2) shall provide an opportunity for a hearing with 
        respect to that determination; and
          (3) may withhold any appropriated funds otherwise 
        available to Amtrak for the operation of a route or 
        routes on which it is not making progress, other than 
        funds made available for passenger safety or security 
        measures.

Sec. 24711. Alternate passenger rail service program

  (a) In General.--Within 1 year after the date of enactment of 
the Passenger Rail Investment and Improvement Act of 2005, the 
Federal Railroad Administration shall initiate a rulemaking 
proceeding to develop a program under which--
          (1) a rail carrier or rail carriers that own 
        infrastructure over which Amtrak operates a passenger 
        rail service route described in subparagraph (B), (C), 
        or (D) of section 24102(5) or in section 24702 of title 
        49, United States Code may petition the Federal 
        Railroad Administration to be considered as a passenger 
        rail service provider over that route in lieu of 
        Amtrak;
          (2) the Administration would notify Amtrak within 30 
        days after receiving a petition under paragraph (1) and 
        establish a deadline by which both the petitioner and 
        Amtrak would be required to submit a bid to provide 
        passenger rail service over the route to which the 
        petition relates;
          (3) the Administration would make a decision within a 
        specified, limited time after that deadline awarding to 
        the winning bidder--
                  (A) the right and obligation to provide 
                passenger rail service over that route subject 
                to such performance standards as the 
                Administration may require; and
                  (B) an operating subsidy will be provided--
                          (i) for the first year at a level not 
                        in excess of the level in effect during 
                        the fiscal year preceding the fiscal 
                        year in which the petition was 
                        received, adjusted for inflation; and
                          (ii) for any subsequent years at such 
                        level, adjusted for inflation.
  (b) Implementation.--
          (1) Initial petitions.--Pursuant to any rules or 
        regulations promulgated under subsection (A), the 
        Administration shall establish a deadline for the 
        submission of a petition under subsection (a)--
                  (A) during fiscal year 2007 for operations 
                commencing in fiscal year 2008; and
                  (B) during the immediately preceding fiscal 
                year for operations commencing in subsequent 
                fiscal years.
          (2) Route limitations.--The Administration may not 
        make the program available with respect to more than 1 
        Amtrak passenger rail routes for operations beginning 
        in fiscal year 2008 nor to more than 2 such routes for 
        operations beginning in fiscal year 2010 and subsequent 
        fiscal years.
  (c) Performance Standards; Access to Facilities; Employees.--
If the Administration awards the right and obligation to 
provide passenger rail service over a route under the program 
to a rail carrier or rail carriers--
          (1) it shall execute a contract with the rail carrier 
        or rail carriers for rail passenger operations on that 
        route that conditions the operating and subsidy rights 
        upon--
                  (A) the service provider continuing to 
                provide passenger rail service on the route 
                that is no less frequent, nor over a shorter 
                distance, than Amtrak provided on that route 
                before the award; and
                  (B) the service provider's compliance with 
                the minimum standards established under section 
                208 of the Passenger Rail Investment and 
                Improvement Act of 2005 and such additional 
                performance standards as the Administration may 
                establish;
          (2) it shall, if the award is made to a rail carrier 
        other than Amtrak, require Amtrak to provide access to 
        its reservation system, stations, and facilities to any 
        rail carrier or rail carriers awarded a contract under 
        this section, in accordance with section 218 of that 
        Act, necessary to carry our the purposes of this 
        section; and
          (3) any person used by a rail carrier or rail 
        carriers (as defined in section 10102(5) of this title) 
        to operate a route under this section shall be 
        considered an employee of that carrier or carriers and 
        subject to the applicable Federal laws and regulations 
        governing similar crafts or classes of employees of 
        Amtrak, including provisions under section 121 of the 
        Amtrak Reform and Accountability Act of 1997 relating 
        to employees that provide food and beverage service.
  (d) Cessation of Service.--If a rail carrier or rail carriers 
awarded a route under this section cease to operate the service 
or fail to fulfill their obligations under the contract 
required under subsection (c), the Administrator, in 
collaboration with the Surface Transportation Board when 
applicable, shall take any necessary action consistent with 
this title to enforce the contract and ensure the continued 
provision of service, including the installment of an interim 
service provider and re-bidding the contract to operate the 
service.
  (e) Adequate Resources.--Before taking any action allowed 
under this section, the Secretary shall certify that the 
Administrator has sufficient resources that are adequate to 
undertake the program established under this section.

          CHAPTER 249. NORTHEAST CORRIDOR IMPROVEMENT PROGRAM

Sec. 24905. Coordination board and safety committee

  (a) Northeast Corridor Coordination Board.--(1) The Northeast 
Corridor Coordination Board is composed of the following 
members:
          (A) one individual from each commuter authority (as 
        defined in section 1135(a) of the Omnibus Budget 
        Reconciliation Act of 1981 (45 U.S.C. 1104)) that 
        provides or makes a contract to provide commuter rail 
        passenger transportation over the main line of the 
        Northeast Corridor.
          (B) 2 individuals selected by Amtrak.
          (C) one individual selected by the Consolidated Rail 
        Corporation.
  (2) The Board shall recommend to Amtrak--
          (A) policies that ensure equitable access to the 
        Northeast Corridor, considering the need for equitable 
        access by commuter and intercity rail passenger 
        transportation and the requirements of section 24308(c) 
        of this title; and
          (B) equitable policies for the Northeast Corridor 
        related to--
                  (i) dispatching;
                  (ii) public information;
                  (iii) maintaining equipment and facilities;
                  (iv) major capital facility investments; and
                  (v) harmonizing equipment acquisitions, 
                rates, and schedules.
  (3) The Board may recommend to the board of directors and 
President of Amtrak action necessary to resolve differences on 
providing transportation, except for facilities and 
transportation matters under section 24308(a) or 24904(a)(5) 
and (c) of this title.
  (b) Northeast Corridor Safety Committee.--(1) The Northeast 
Corridor Safety Committee is composed of members appointed by 
the Secretary of Transportation. The members shall be 
representatives of--
          (A) the Secretary;
          (B) Amtrak;
          (C) freight carriers operating more than 150,000 
        train miles a year on the main line of the Northeast 
        Corridor;
          (D) commuter agencies;
          (E) rail passengers;
          (F) rail labor; and
          (G) other individuals and organizations the Secretary 
        decides have a significant interest in rail safety.
  (2) The Secretary shall consult with the Committee about 
safety improvements on the Northeast Corridor main line. The 
Committee shall meet at least once every 2 years to consider 
safety matters on the main line.
  (3) At the beginning of the first session of each Congress, 
the Secretary shall submit a report to Congress on the status 
of efforts to improve safety on the Northeast Corridor main 
line. The report shall include the safety recommendations of 
the Committee and the comments of the Secretary on those 
recommendations.
  (4) The Committee shall cease to exist on January 1, 1999, or 
on another date the Secretary decides is appropriate. The 
Secretary shall notify Congress in writing of a decision to 
terminate the Committee on another date.

Sec. 24905. Northeast Corridor Infrastructure and Operations Advisory 
                    Commission; Safety and Security Committee.

  (a) Northeast Corridor Infrastructure and Operations Advisory 
Commission.--
          (1) Within 180 days after the date of enactment of 
        the Passenger Rail Investment and Improvement Act of 
        2005, the Secretary of Transportation shall establish a 
        Northeast Corridor Infrastructure and Operations 
        Advisory Commission (hereinafter referred to in this 
        section as the Commission'') to promote mutual 
        cooperation and planning pertaining to the rail 
        operations and related activities of the Northeast 
        Corridor. The Commission shall be made up of--
                  (A) members representing the National 
                Railroad Passenger Corporation;
                  (B) members representing the Federal Railroad 
                Administration; and
                  (C) 1 member from each of the States 
                (including the District of Columbia) that 
                constitute the Northeast Corridor as defined in 
                section 24102, designated by the chief 
                executive officer thereof.
          (2) The Secretary shall ensure that the membership 
        belonging to any of the groups enumerated under 
        subparagraph (1) shall not constitute a majority of the 
        Commission's memberships.
          (3) The Commission shall establish a schedule and 
        location for convening meetings, but shall meet no less 
        than four times per fiscal year, and the Commission 
        shall develop rules and procedures to govern the 
        Commission's proceedings.
          (4) A vacancy in the Commission shall be filled in 
        the manner in which the original appointment was made.
          (5) Members shall serve without pay but shall receive 
        travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 
        of title 5, United States Code.
          (6) The Chairman of the Commission shall be elected 
        by the members.
          (7) The Commission may appoint and fix the pay of 
        such personnel as it considers appropriate.
          (8) Upon request of the Commission, the head of any 
        department or agency of the United States may detail, 
        on a reimbursable basis, any of the personnel of that 
        department or agency to the Commission to assist it in 
        carrying out its duties under this section.
          (9) Upon the request of the Commission, the 
        Administrator of General Services shall provide to the 
        Commission, on a reimbursable basis, the administrative 
        support services necessary for the Commission to carry 
        out its responsibilities under this section.
          (10) The Commission shall consult with freight 
        railroads users of the Northeast Corridor and other 
        entities as appropriate.
  (b) General Recommendations.--The Commission shall develop 
recommendations concerning northeast corridor rail 
infrastructure and operations including proposals addressing, 
as appropriate--
          (1) short-term and long-term capital investment needs 
        beyond the stat-of-good-repair under section 213;
          (2) future funding requirements for capital 
        improvements and maintenance;
          (3) operational improvements of intercity passenger 
        rail, commuter rail, and freight rail services;
          (4) opportunities for additional non-rail uses of the 
        Northeast Corridor;
          (5) scheduling and dispatching;
          (6) safety and security enhancements;
          (7) equipment design;
          (8) marketing of rail services; and
          (9) future capacity requirements.
  (c) Access Costs.--
          (1) Development of formula.--Within 1 year after 
        verification of Amtrak's new financial accounting 
        system pursuant to section 203(b) of the Passenger Rail 
        Investment and Improvement Act of 2005, the Commission 
        shall--
                  (A) develop a standardized formula for 
                determining and allocating costs, revenues, and 
                compensation for northeast corridor commuter 
                rail passenger transportation, as defined in 
                section 24102 of this title, that use National 
                Railroad Passenger Corporation facilities or 
                services or that provide such facilities or 
                services to the National Railroad Passenger 
                Corporation that ensure that--
                          (i) there is no cross-subsidization 
                        of commuter rail passenger, intercity 
                        rail passenger, or freight rail 
                        transportation; and
                          (ii) each service is assigned the 
                        costs incurred only for the benefit of 
                        that service, and a proportionate 
                        share, based upon factors that 
                        reasonably reflect relative use, of 
                        costs incurred for the common benefit 
                        of more than 1 service;
                  (B) develop a proposed timetable for 
                implementing the formula before the end of the 
                6th year following the date of enactment of 
                that Act; and
                  (C) transmit the proposed timetable to the 
                Surface Transportation Board.
          (2) Implementation.--The National Railroad Passenger 
        Corporation and the commuter authorities providing 
        commuter rail passenger transportation on the northeast 
        corridor shall implement new agreements for usage of 
        facilities or services based on the formula proposed in 
        paragraph (1) in accordance with the timetable 
        established therein. If the parties fail to implement 
        such new agreements in accordance with the timetable, 
        the parties shall--
                  (A) submit any dispute regarding such 
                implementation to binding arbitration conducted 
                by a mutually agreed upon arbitrator and comply 
                with the decision of that arbitrator; or
                  (B) petition the Surface Transportation Board 
                to determine the appropriate compensation 
                amounts for such services in accordance with 
                section 24904(c) of this title.
  (d) Transmission of Recommendations.--The Commission shall 
annually transmit the recommendations developed under 
subsection (b) and the formula and timetable developed under 
subsection (c)(1) to the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Committee 
on Transportation and Infrastructure.
  (e) Northeast Corridor Safety Committee.--
          (1) In general.--The Secretary shall establish a 
        Northeast Corridor Safety and Security Committee 
        composed of members appointed by the Secretary. The 
        members shall be representatives of--
                  (A) the Secretary;
                  (B) Amtrak;
                  (C) freight carriers operating more than 
                150,000 train miles a year on the main line of 
                the Northeast Corridor;
                  (D) commuter agencies;
                  (E) rail passengers;
                  (F) rail labor;
                  (G) the Transportation Security 
                Administration; and
                  (H) other individuals and organizations the 
                Secretary decides have a significant interest 
                in rail safety.
          (2) Function; meetings.--The Secretary shall consult 
        with the Committee about safety and security 
        improvements on the Northeast Corridor main line. The 
        Committee shall meet at least once every 2 years to 
        consider safety matters on the main line.
          (3) Report.--At the beginning of the first session of 
        each Congress, the Secretary shall submit a report to 
        the Commission and to Congress on the status of efforts 
        to improve safety and security on the Northeast 
        Corridor main line. The report shall include the safety 
        recommendations of the Committee and the comments of 
        the Secretary on those recommendations.
          (4) Termination.--The Committee shall cease to exist 
        on January 1, 2009, or on another date the Secretary 
        decides is appropriate. The Secretary shall notify 
        Congress in writing of a decision to terminate the 
        Committee on another date.

           *       *       *       *       *       *       *

``Sec. 24910. Rail cooperative research program

  (a) In General.--The Secretary shall establish and carry out 
a rail cooperative research program. The program shall--
          (1) address, among other matters, intercity rail 
        passenger and freight rail services, including existing 
        rail passenger and freight technologies and speeds, 
        incrementally enhanced rail systems and infrastructure, 
        and new high-speed wheel-on-rail systems and rail 
        security;
          (2) address ways to expand the transportation of 
        international trade traffic by rail, enhance the 
        efficiency of intermodal interchange at ports and other 
        intermodal terminals, and increase capacity and 
        availability of rail service for seasonal freight 
        needs;
          (3) consider research on the interconnectedness of 
        commuter rail, passenger rail, freight rail, and other 
        rail networks; and
          (4) give consideration to regional concerns regarding 
        rail passenger and freight transportation, including 
        meeting research needs common to designated high-speed 
        corridors, long-distance rail services, and regional 
        intercity rail corridors, projects, and entities.
  (b) Content.--The program to be carried out under this 
section shall include research designed--
          (1) to identify the unique aspects and attributes of 
        rail passenger and freight service;
          (2) to develop more accurate models for evaluating 
        the impact of rail passenger and freight service, 
        including the effects on highway and airport and airway 
        congestion, environmental quality, and energy 
        consumption;
          (3) to develop a better understanding of modal choice 
        as it affects rail passenger and freight 
        transportation, including development of better models 
        to predict utilization;
          (4) to recommend priorities for technology 
        demonstration and development;
          (5) to meet additional priorities as determined by 
        the advisory board established under subsection (c), 
        including any recommendations made by the National 
        Research Council;
          (6) to explore improvements in management, financing, 
        and institutional structures;
          (7) to address rail capacity constraints that affect 
        passenger and freight rail service through a wide 
        variety of options, ranging from operating improvements 
        to dedicated new infrastructure, taking into account 
        the impact of such options on operations;
          (8) to improve maintenance, operations, customer 
        service, or other aspects of intercity rail passenger 
        and freight service;
          (9) to recommend objective methodologies for 
        determining intercity passenger rail routes and 
        services, including the establishment of new routes, 
        the elimination of existing routes, and the contraction 
        or expansion of services or frequencies over such 
        routes;
          (10) to review the impact of equipment and 
        operational safety standards on the further development 
        of high speed passenger rail operations connected to or 
        integrated with non-high speed freight or passenger 
        rail operations; and
          (11) to recommend any legislative or regulatory 
        changes necessary to foster further development and 
        implementation of high speed passenger rail operations 
        while ensuring the safety of such operations that are 
        connected to or integrated with non-high speed freight 
        or passenger rail operations.
  (c) Advisory Board.--
          (1) Establishment.--In consultation with the heads of 
        appropriate Federal departments and agencies, the 
        Secretary shall establish an advisory board to 
        recommend research, technology, and technology transfer 
        activities related to rail passenger and freight 
        transportation.
          (2) Membership.--The advisory board shall include--
                  (A) representatives of State transportation 
                agencies;
                  (B) transportation and environmental 
                economists, scientists, and engineers; and
                  (C) representatives of Amtrak, the Alaska 
                Railroad, freight railroads, transit operating 
                agencies, intercity rail passenger agencies, 
                railway labor organizations, and environmental 
                organizations.
  (d) National Academy of Sciences.-- The Secretary may make 
grants to, and enter into cooperative agreements with, the 
National Academy of Sciences to carry out such activities 
relating to the research, technology, and technology transfer 
activities described in subsection (b) as the Secretary deems 
appropriate.

                        Part D--High-Speed Rail

CHAPTER 261. HIGH-SPEED RAIL ASSISTANCE

           *       *       *       *       *       *       *

Sec. 26106. Rail infrastructure bonds

  (a) Designation.--The Secretary may designate bonds for 
purposes of section 54 of the Internal Revenue Code of 1986 
if--
          (1) the bonds are to be issued by--
                  (A) a State, if the entire railroad passenger 
                transportation corridor containing the 
                infrastructure project to be financed is within 
                the State;
                  (B) 1 or more of the States that have entered 
                into an agreement or an interstate compact 
                consented to by Congress under section 410(a) 
                of Public Law 105-134 (49 U.S.C. 24101 note);
                  (C) an agreement or an interstate compact 
                described in subparagraph (B); or
                  (D) Amtrak, for capital projects under its 5-
                year plan;
          (2) the bonds are for the purpose of financing 
        projects that make a substantial contribution to 
        providing the infrastructure and equipment required to 
        complete or improve a rail transportation corridor 
        (including projects for the acquisition, financing, or 
        refinancing of equipment and other capital 
        improvements, including the introduction of new high-
        speed technologies such as magnetic levitation systems, 
        track or signal improvements, the elimination of grade 
        crossings, development of intermodal facilities, 
        improvement of train speeds or safety, or both, and 
        station rehabilitation or construction), but only if 
        the Secretary determines that the projects are part of 
        a viable and comprehensive rail transportation corridor 
        design for intercity passenger service included in a 
        State rail plan under chapter 225 (except for bonds 
        issued under paragraph (1)(D)); and
          (3) for a railroad passenger transportation corridor 
        not operated by Amtrak that includes the use of rights-
        of-way owned by a freight railroad, a written agreement 
        exists between the applicant and the freight railroad 
        regarding such use and ownership, including 
        compensation for such use and assurances regarding the 
        adequacy of infrastructure capacity to accommodate both 
        existing and future freight and passenger operations, 
        and including an assurance by the freight railroad that 
        collective bargaining agreements with the freight 
        railroad's employees (including terms regulating the 
        contracting of work) shall remain in full force and 
        effect according to their terms for work performed by 
        the freight railroad on such railroad passenger 
        transportation corridor.
  (b) Bond Amount Limitation.--
          (1) In general.--The amount of bonds designated under 
        this section may not exceed in the case of section 54 
        bonds, $1,300,000,000 for each of the fiscal years 2006 
        through 2015.
          (2) Carryover of unused limitation.--If for any 
        fiscal year the limitation amount under paragraph (1) 
        exceeds the amount of section 54 bonds issued during 
        such year, the limitation amount under paragraph (1) 
        for the following fiscal year (through fiscal year 
        2019) shall be increased by the amount of such excess.
  (c) Project Selection Criteria.--The Secretary shall give 
preference to the designation under this section of bonds for 
projects selected using the criteria in chapter 244.
  (d) Timely Disposition of Application.--The Secretary shall 
grant or deny a requested designation within 9 months after 
receipt of an application.
  (e) Refinancing Rules.--Bonds designated by the Secretary 
under subsection (a) may be issued for refinancing projects 
only if the indebtedness being refinanced (including any 
obligation directly or indirectly refinanced by such 
indebtedness) was originally incurred by the issuer--
          (1) after the date of the enactment of this section;
          (2) for a term of not more than 3 years;
          (3) to finance projects described in subsection 
        (a)(2); and
          (4) in anticipation of being refinanced with proceeds 
        of a bond designated under subsection (a).
  (f) Application of Conditions.--Any entity providing railroad 
transportation (within the meaning of section 20102) that 
begins operations after the date of the enactment of this 
section and that uses property acquired pursuant to this 
section (except as provided in subsection (a)(2)(B)), shall be 
subject to the conditions under section 24405.
  (g) Issuance of Regulations.--Not later than 6 months after 
the date of the enactment of the Passenger Rail Investment and 
Improvement Act of 2005, the Secretary shall issue regulations 
for carrying out this section.
  (h) Section 54 Bond Defined.--In this section, the term 
`section 54 bond' means a bond designated by the Secretary 
under subsection (a) for purposes of section 54 of the Internal 
Revenue Code of 1986 (relating to credit to holders of 
qualified rail infrastructure bonds).

                                  

```