II

103D CONGRESS

2D SESSION S. 2002

To authorize appropriations for the National Railroad Passenger Corporation,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 25 (legislative day, FEBRUARY 22), 1994

Mr. EXON introduced the following bill; which was read twice and referred to

the Committee on Commerce, Science, and Transportation

A BILL

To authorize appropriations for the National Railroad

Passenger Corporation, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

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

5 Act of 1994’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—

8 (1) intercity rail passenger service is an essen9 tial component of the integrated national transpor10 tation system; however, to achieve its full potential
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1 the National Railroad Passenger Corporation (Am2 trak) must provide a quality transportation product

3 in the form of clean, comfortable, and on-time serv4 ice;

5 (2) Amtrak’s management and employees are

6 dedicated to providing the high quality service that

7 Amtrak’s customers deserve; however, additional

8 capital investment is needed to acquire the modern

9 equipment and efficient facilities that are essential

10 to satisfy the demand for superior intercity rail pas11 senger service;

12 (3) significant levels of Federal capital invest13 ment will enable Amtrak to provide the world class

14 service American rail passengers deserve, and will

15 reduce operating costs in the long term;

16 (4) Amtrak’s management should be held ac17 countable to ensure that all capital investment by

18 the Federal Government is effectively used to im19 prove the quality of service and the long-term finan20 cial health of Amtrak;

21 (5) the Secretary of Transportation, as an ex

22 officio member of Amtrak’s board of directors,

23 should use this position to evaluate Amtrak’s costs

24 and revenue elements to ensure that Amtrak pro25 vides excellent service to its customers and that Am-
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1 trak uses its Federal investment wisely and effi2 ciently; and

3 (6) States can play a significant role in provid4 ing cost efficient intercity rail passenger transpor5 tation and in addressing local transportation needs

6 and air quality control.

7 SEC. 3. WORLD CLASS SERVICE.

8 Section 102(3) of the Rail Passenger Service Act (45

9 U.S.C. 501a(3)) is amended to read as follows:

10 ‘‘(3) Management of capital investment by the

11 Corporation in such a way as to provide its cus12 tomers with world class service.’’.

13 SEC. 4. RETURN ON INVESTMENT.

14 Section 308(b) of the Rail Passenger Service Act (45

15 U.S.C. 548(b)) is amended—

16 (1) by inserting ‘‘(1)’’ before ‘‘The Corporation

17 shall transmit’’; and

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

19 paragraph:

20 ‘‘(2) The Corporation shall also include in the report

21 required under paragraph (1) projections of the antici22 pated benefits of the projects proposed for funding under

23 this Act and a report on the benefits actually realized from

24 all projects previously funded under this Act beginning

25 with funds provided in fiscal year 1994. Such report shall
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1 include an identification of improvements in the quality

2 of service offered by Amtrak, facility improvements that

3 demonstrate a productivity gain, equipment improvements

4 that lower operating costs, environmental benefits (includ5 ing air quality and land use), enhancements to local trans6 portation needs, enhancements to mobility of physically

7 and economically disadvantaged persons, an improvement

8 to the revenue to cost ratio, reduced dependence on Fed9 eral operating support, and reductions in the need for al10 ternative transportation investments. To the extent prac11 ticable, the benefits addressed in each report shall also be

12 expressed as return on invested capital.’’.

13 SEC. 5. STATE REQUESTED RAIL PASSENGER SERVICE.

14 (a) Section 403(b) of the Rail Passenger Service Act

15 (45 U.S.C. 563(b)) is amended—

16 (1) in paragraph (1)(B) by amending clause

17 (iii) to read as follows:

18 ‘‘(iii) a statement by such State, agency, or per19 son that it agrees to pay in each year of operation

20 of any such service at least—

21 ‘‘(I) 45 percent in the first year of such

22 operation; and

23 ‘‘(II) 65 percent in each year of operation

24 thereafter,
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1 of the long-term avoidable losses of operating such

2 service and at least 50 percent of the associated cap3 ital costs.’’;

4 (2) by redesignating paragraphs (2) through

5 (6) as paragraphs (3) through (7), respectively;

6 (3) by inserting after paragraph (1) the follow7 ing new paragraph:

8 ‘‘(2) The Corporation is authorized to contribute in

9 each year of operation of any service instituted or retained

10 pursuant to this subsection no more than—

11 ‘‘(A) 55 percent in the first year of such oper12 ation; and

13 ‘‘(B) 35 percent in each year of operation

14 thereafter,

15 of the long-term avoidable losses of operating such serv16 ice.’’;

17 (4) in paragraph (4)(A), as so redesignated by

18 paragraph (2) of this subsection, by striking ‘‘para19 graph (1)(B)’’ and inserting in lieu thereof ‘‘para20 graphs (1)(B) and (2)’’; and

21 (5) in paragraph (4)(B), as so redesignated by

22 paragraph (2) of this subsection, by adding at the

23 end the following new sentence: ‘‘Any such renewal

24 shall require the State, agency, or person to provide

25 a statement that such State, agency, or person
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1 agrees to pay in each year of operation, beginning

2 with the first year of operation of service under such

3 renewed agreement, at least 65 percent of the long4 term avoidable losses of operating such service and

5 at least 50 percent of the associated capital costs.’’.

6 (b) Within 2 years after the date of enactment of this

7 Act, the Secretary of Transportation shall conduct a com8 prehensive review of the program of state-assisted rail pas9 senger services operated by the National Railroad Pas10 senger Corporation under section 403(b) of the Rail Pas11 senger Service Act (45 U.S.C. 563(b)) and shall submit

12 a report to the Congress detailing the Secretary’s findings

13 and conclusions, including any recommendations the Sec14 retary may have for revising section 403(b). The Sec15 retary’s report shall address, among other things, whether

16 and at what point services originated under section 403(b)

17 should become a part of the basic system of intercity rail

18 passenger services and shall identify any other avenues for

19 initiating and implementing new rail passenger services.

20 SEC. 6. NORTHEAST CORRIDOR IMPROVEMENT PROJECT.

21 Section 704 of the Railroad Revitalization and Regu22 latory Reform Act of 1976 (45 U.S.C. 854) is amended—

23 (1) by amending subsection (a) to read as fol24 lows:
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1 ‘‘(a) CAPITAL IMPROVEMENTS.—The National Rail2 road Passenger Corporation shall make capital improve3 ments for the Northeast Corridor improvement project

4 under this title as necessary to operate reliable, high-speed

5 rail passenger service, to enhance capacity for intercity

6 and commuter passenger service, and as otherwise may

7 be necessary to ensure continued reliable high-speed serv8 ice. Such Corporation shall also acquire train equipment

9 to be used on the Northeast Corridor, mitigate environ10 mental impacts related to the Northeast Corridor improve11 ment project, and provide adequate parking at and im12 prove Northeast Corridor rail stations.’’; and

13 (2) in subsection (b)—

14 (A) by striking ‘‘(1)’’ before ‘‘No funds ap15 propriated’’; and

16 (B) by striking paragraph (2).

17 SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

18 Section 601 of the Rail Passenger Service Act (45

19 U.S.C. 601) is amended to read as follows:

20 ‘‘SEC. 601. AUTHORIZATION OF APPROPRIATIONS.

21 ‘‘(a) OPERATING EXPENSES.—

22 ‘‘(1) CORE SYSTEM.—There are authorized to

23 be appropriated to the Secretary for the benefit of

24 the Corporation for operating expenses—
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1 ‘‘(A) $363,000,000 for fiscal year 1995;

2 and

3 ‘‘(B) $353,000,000 for fiscal year 1996.

4 ‘‘(2) STATE REQUESTED SERVICE.—There are

5 authorized to be appropriated to the Secretary for

6 the benefit of the Corporation for meeting its obliga7 tions under section 403(b) of this Act—

8 ‘‘(A) $17,000,000 for fiscal year 1995; and

9 ‘‘(B) $17,000,000 for fiscal year 1996.

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

11 to be appropriated to the Secretary for the benefit of the

12 Corporation for capital investment expenditures—

13 ‘‘(1) $252,000,000 for fiscal year 1995, of

14 which not more than $149,000,000 shall be available

15 for rolling stock, not more than $53,000,000 shall

16 be available for fixed facilities, not more than

17 $41,000,000 shall be available to satisfy other cap18 ital investment statutory and regulatory require19 ments, and not more than $9,000,000 shall be avail20 able for other capital projects; and

21 ‘‘(2) $355,000,000 for fiscal year 1996, of

22 which not more than $240,000,000 shall be available

23 for rolling stock, not more than $65,000,000 shall

24 be available for fixed facilities, not more than

25 $35,000,000 shall be available to satisfy other cap-
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1 ital investment statutory and regulatory require2 ments, and not more than $15,000,000 shall be

3 available for other capital projects.

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

5 are authorized to be appropriated to the Secretary for the

6 benefit of the Corporation $90,000,000 for fiscal year

7 1995 to be used for engineering, design, and construction

8 activities to enable the James A. Farley Post Office in

9 New York, New York, to be used as a train station and

10 commercial center and for necessary improvements and re11 development of the existing Pennsylvania Station and as12 sociated service building in New York, New York.

13 ‘‘(d) NORTHEAST CORRIDOR IMPROVEMENT

14 PROJECT.—There are authorized to be appropriated to

15 the Secretary for the benefit of the Corporation for mak16 ing capital expenditures under section 704(a) of the Rail17 road Revitalization and Regulatory Reform Act of 1976

18 (45 U.S.C. 854(a)) such sums as may be necessary.

19 ‘‘(e) MANDATORY PAYMENTS.—There are authorized

20 to be appropriated to the Secretary $156,000,000 for fis21 cal year 1995 and $165,000,000 for fiscal year 1996 for

22 the payment of—

23 ‘‘(1) tax liabilities under section 3221 of the In24 ternal Revenue Code of 1986 due in such fiscal

25 years in excess of amounts needed to fund benefits
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1 for individuals who retire from the Corporation and

2 for their beneficiaries;

3 ‘‘(2) obligations of the Corporation under sec4 tion 8(a) of the Railroad Unemployment Insurance

5 Act (45 U.S.C. 358(a)) due in such fiscal years in

6 excess of its obligations calculated on an experience7 rated basis; and

8 ‘‘(3) obligations of the Corporation due under

9 section 3321 of the Internal Revenue Code of 1986.

10 ‘‘(f) ADMINISTRATION OF APPROPRIATIONS.—Funds

11 appropriated pursuant to this section shall be available to

12 the Secretary during the fiscal year for which appro13 priated, except that appropriations for capital investments

14 may be made in an appropriations Act for a fiscal year

15 preceding the fiscal year in which the appropriation is to

16 be available for obligation. Funds appropriated are au17 thorized to remain available until expended. Appropriated

18 funds shall be paid by the Secretary to the Corporation

19 for expenditure in accordance with the Secretary’s budget

20 request as approved or modified by Congress at the time

21 of appropriation. Payments by the Secretary to the Cor22 poration of appropriated funds shall be made no more fre23 quently than every 90 days, unless the Corporation, for

24 good cause, requests more frequent payment before expi25 ration of any 90-day period.’’.
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