II

105TH CONGRESS

1ST SESSION S. 1103

To amend title 23, United States Code, to authorize Federal participation

in financing of projects to demonstrate the feasibility of deployment

of magnetic levitation transportation technology, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 31, 1997

Mr. MOYNIHAN (for himself, Mr. REID, Mrs. BOXER, Ms. MIKULSKI, and Mr.

ROBB) introduced the following bill; which was read twice and referred

to the Committee on Commerce, Science, and Transportation

A BILL

To amend title 23, United States Code, to authorize Federal

participation in financing of projects to demonstrate the

feasibility of deployment of magnetic levitation transportation technology, 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 ‘‘Magnetic Levitation

5 (MAGLEV) Transportation Technology Deployment Act

6 of 1997’’.

7 SEC. 2. FINDINGS AND POLICY.

8 (a) FINDINGS.—Congress finds that—
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1 (1)(A) new transportation technologies are

2 needed to develop new modes of transportation that

3 are environmentally sound and energy efficient;

4 (B) very high- and super-speed magnetic levita5 tion (referred to in this section as ‘‘MAGLEV’’) is

6 the technology that appears to best meet the needs

7 of the traveling public and high-value freight ship8 pers in the 40- to 600-mile distance corridors;

9 (C) MAGLEV is energy efficient, consuming

10 less energy per passenger mile at any given speed

11 than other forms of transportation and reducing de12 pendence on imported oil;

13 (D) since properly designed MAGLEV is vir14 tually impossible to derail, MAGLEV is safe and will

15 prevent accidents and loss of life, and will signifi16 cantly reduce costs attributable to accidents occur17 ring on highways, freight rail lines, intercity rail

18 passenger service lines, commuter rail lines, and

19 short haul airline routes of the United States;

20 (E) MAGLEV is virtually unaffected by weath21 er conditions, which annually result in delays in

22 other transportation modes employed by freight and

23 passenger carriers; and
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1 (F) MAGLEV makes extensive use of existing

2 highway rights-of-way and consumes less land for its

3 guideway infrastructure than a comparable roadway;

4 (2) the commercial feasibility study of high5 speed ground transportation conducted under section

6 1036 of the Intermodal Surface Transportation Effi7 ciency Act of 1991 (Public Law 102–240; 105 Stat.

8 1978)—

9 (A) demonstrates that MAGLEV systems

10 have the potential for a public and private part11 nership under which the private sector could op12 erate a system without operating subsidies and

13 the total benefits of the system would exceed

14 the total costs; and

15 (B) demonstrates that adding links or cor16 ridors to the basic MAGLEV system would en17 hance the basic system, leading to establish18 ment of high-volume high-speed ground trans19 portation networks; and

20 (3) the study required by section 359(d) of the

21 National Highway System Designation Act of 1995

22 (Public Law 104–59; 109 Stat. 627) further dem23 onstrates the potential for MAGLEV systems.

24 (b) POLICY.—It is the policy of the United States to

25 establish a MAGLEV transportation technology system
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1 operating along Federal-aid highway and other rights-of2 way as part of a national transportation system of the

3 United States.

4 SEC. 3. MAGNETIC LEVITATION TRANSPORTATION TECH5 NOLOGY DEPLOYMENT PROGRAM.

6 (a) IN GENERAL.—Chapter 3 of title 23, United

7 States Code, is amended by inserting after section 321 the

8 following:

9 ‘‘§ 322. Magnetic levitation transportation technology

10 deployment program

11 ‘‘(a) DEFINITIONS.—In this section:

12 ‘‘(1) ELIGIBLE PROJECT COSTS.—The term ‘eli13 gible project costs’ means the capital cost of the

14 fixed guideway infrastructure of a MAGLEV project,

15 including land, piers, guideways, propulsion equip16 ment and other components attached to guideways,

17 power distribution facilities (including substations),

18 control and communications facilities, access roads,

19 and storage, repair, and maintenance facilities, but

20 not including costs incurred for a new station.

21 ‘‘(2) FULL PROJECT COSTS.—The term ‘full

22 project costs’ means the total capital costs of a

23 MAGLEV project, including eligible project costs

24 and the costs of stations, vehicles, and equipment.
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1 ‘‘(3) MAGLEV.—The term ‘MAGLEV’ means

2 transportation systems employing magnetic levita3 tion that would be capable of safe use by the public

4 at a speed in excess of 240 miles per hour.

5 ‘‘(4) PARTNERSHIP POTENTIAL.—The term

6 ‘partnership potential’ has the meaning given the

7 term in the commercial feasibility study of high8 speed ground transportation conducted under section

9 1036 of the Intermodal Surface Transportation Effi10 ciency Act of 1991 (Public Law 102–240; 105 Stat.

11 1978).

12 ‘‘(5) RECOGNIZED PILOT PROJECT.—The term

13 ‘recognized pilot project’ means a project identified

14 in the report transmitted by the Secretary to Con15 gress on the near-term applications of magnetic levi16 tation ground transportation technology in the Unit17 ed States as required by section 359(d) of the Na18 tional Highway System Designation Act of 1995

19 (Public Law 104–59; 109 Stat. 627).

20 ‘‘(b) HIGH-SPEED GROUND TRANSPORTATION

21 OFFICE.—

22 ‘‘(1) IN GENERAL.—Not later than 90 days

23 after the date of enactment of the Magnetic Levita24 tion (MAGLEV) Transportation Technology Deploy25 ment Act of 1997, the Secretary shall establish a
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1 High-Speed Ground Transportation Office in the

2 Federal Railroad Administration to—

3 ‘‘(A) coordinate and administer all high4 speed rail and MAGLEV programs authorized

5 by this section and any other provision of this

6 title or title 49; and

7 ‘‘(B) make available financial assistance to

8 provide the Federal share of full project costs

9 of eligible projects selected under this section

10 and otherwise carry out this section.

11 ‘‘(2) FEDERAL SHARE.—The Federal share of

12 full project costs under paragraph (1)(B) shall be

not more than 2 13 ⁄3.

14 ‘‘(3) USE OF ASSISTANCE.—Financial assist15 ance provided under paragraph (1)(B) shall be used

16 only to pay eligible project costs of projects selected

17 under this section.

18 ‘‘(c) SOLICITATION OF APPLICATIONS FOR ASSIST19 ANCE.—Not later than 90 days after the establishment of

20 the High-Speed Ground Transportation Office, the Sec21 retary shall solicit applications from States, or authorities

22 designated by 1 or more States, for financial assistance

23 authorized by subsection (b)(1)(B) for planning, design,

24 and construction of eligible MAGLEV projects.
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1 ‘‘(d) PROJECT ELIGIBILITY.—To be eligible to re2 ceive financial assistance under subsection (b)(1)(B), a

3 project shall—

4 ‘‘(1) involve a segment or segments of a high5 speed ground transportation corridor that—

6 ‘‘(A) exhibits partnership potential; or

7 ‘‘(B) is a portion of a recognized pilot

8 project;

9 ‘‘(2) require an amount of Federal funds for

10 project financing that will not exceed—

11 ‘‘(A) the amounts made available under

12 subsection (j)(1)(A); and

13 ‘‘(B) the amounts made available by States

14 under subsection (j)(4);

15 ‘‘(3) result in an operating transportation facil16 ity that provides a revenue producing service;

17 ‘‘(4) be undertaken through a public and private partnership, with at least 1 18 ⁄3 of full project

19 costs paid using non-Federal funds;

20 ‘‘(5) to the maximum extent practicable (as de21 termined by the Secretary), satisfy applicable State22 wide and metropolitan planning requirements;

23 ‘‘(6) be approved by the Secretary based on an

24 application submitted to the Secretary by a State or

25 authority designated by 1 or more States;
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1 ‘‘(7) to the extent non-United States MAGLEV

2 technology is used within the United States, be car3 ried out as a technology transfer project; and

4 ‘‘(8) be carried out using materials at least 70

5 percent of which are manufactured in the United

6 States.

7 ‘‘(e) PROJECT SELECTION CRITERIA.—Prior to solic8 iting applications, the Secretary shall establish criteria for

9 selecting which eligible projects under subsection (d) will

10 receive financial assistance under subsection (b)(1)(B).

11 The criteria shall include the extent to which—

12 ‘‘(1) a project is nationally significant, includ13 ing the extent to which the project will demonstrate

14 the feasibility of deployment of MAGLEV technology

15 throughout the United States;

16 ‘‘(2) timely implementation of the project will

17 reduce congestion in other modes of transportation

18 and reduce the need for additional highway or air19 port construction;

20 ‘‘(3) States, regions, and localities financially

21 contribute to the project;

22 ‘‘(4) implementation of the project will create

23 new jobs in traditional and emerging industries;

24 ‘‘(5) the project will augment MAGLEV net25 works identified as having partnership potential;
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1 ‘‘(6) financial assistance would foster public

2 and private partnerships for infrastructure develop3 ment and attract private debt or equity investment;

4 ‘‘(7) financial assistance would foster the timely

5 implementation of a project; and

6 ‘‘(8) life-cycle costs in design and engineering

7 are considered and enhanced.

8 ‘‘(f) PROJECT SELECTION.—Not later than 90 days

9 after a deadline established by the Secretary for the re10 ceipt of applications, the Secretary shall evaluate the eligi11 ble projects in accordance with the selection criteria and

12 select 1 or more eligible projects for financial assistance.

13 ‘‘(g) JOINT VENTURES.—A project undertaken by a

14 joint venture of United States and non-United States per15 sons (including a project involving the deployment of non16 United States MAGLEV technology in the United States)

17 shall be eligible for financial assistance under this section

18 if the project is eligible under subsection (d) and selected

19 under subsection (f).

20 ‘‘(h) RESEARCH GRANTS AND CONTRACTS.—The

21 Secretary shall conduct research that shall include provid22 ing grants to, and entering into contracts with, colleges,

23 universities, research institutes, Federal laboratories, and

24 private entities for research related to—
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1 ‘‘(1) the quantification of benefits derived from

2 the implementation of MAGLEV technology;

3 ‘‘(2) MAGLEV safety;

4 ‘‘(3) the development of domestic MAGLEV

5 technologies, including electromagnetic and super6 conducting technology; and

7 ‘‘(4) the development of technologies associated

8 with MAGLEV infrastructure.

9 ‘‘(i) REPORT.—Not later than 180 days after the

10 date of enactment of the Magnetic Levitation (MAGLEV)

11 Transportation Technology Deployment Act of 1997, the

12 Secretary shall submit a report to the Committee on Envi13 ronment and Public Works of the Senate and the Commit14 tee on Transportation and Infrastructure of the House of

15 Representatives on progress in implementing this section

16 that includes a report on—

17 ‘‘(1) the establishment of the High-Speed

18 Ground Transportation Office under subsection (b);

19 ‘‘(2) applications for assistance under this sec20 tion; and

21 ‘‘(3) the establishment of public and private

22 partnerships to carry out this section.

23 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—
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1 ‘‘(1) IN GENERAL.—There are authorized to be

2 appropriated from the Highway Trust Fund (other

3 than the Mass Transit Account) to—

4 ‘‘(A) carry out this section (other than

5 subsection (h)), $10,000,000 for fiscal year

6 1998, $20,000,000 for fiscal year 1999,

7 $200,000,000 for each of fiscal years 2000 and

8 2001, and $250,000,000 for each of fiscal years

9 2002 and 2003; and

10 ‘‘(B) provide research grants and contracts

11 under subsection (h), $10,000,000 for each of

12 fiscal years 1998 through 2003.

13 ‘‘(2) AVAILABILITY OF FUNDS.—Funds made

14 available under paragraph (1) shall remain available

15 until expended.

16 ‘‘(3) CONTRACT AUTHORITY.—Approval by the

17 Secretary of an eligible project selected under this

18 section shall be considered to be a contractual obli19 gation of the United States for payment of the Fed20 eral share of the full project costs of the project.

21 ‘‘(4) OTHER FEDERAL FUNDS.—Notwithstand22 ing any other provision of law, funds made available

23 to a State to carry out the surface transportation

24 program under section 133 and the congestion miti25 gation and air quality improvement program under
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1 section 149 may be used by the State to pay a por2 tion of the full project costs of an eligible project se3 lected under this section, without requirement for

4 non-Federal funds.

5 ‘‘(5) OTHER ASSISTANCE.—Notwithstanding

6 any other provision of law, an eligible project se7 lected under this section shall be eligible for the

8 loans, loan guarantees, lines of credit, development

9 cost and political risk insurance, credit enhance10 ment, and risk insurance that are authorized for a

11 highway project under this title.

12 ‘‘(6) TAX-EXEMPT BOND FINANCING.—For the

13 purpose of obtaining tax-exempt bond financing

14 under the Internal Revenue Code of 1986, a

15 MAGLEV facility shall be considered to be a high16 speed intercity rail facility with an average speed

17 greater than 150 miles per hour under section

18 142(a)(11) of that Code.’’.

19 (b) CONFORMING AMENDMENT.—The analysis for

20 chapter 3 of title 23, United States Code, is amended by

21 inserting after the item relating to section 321 the

22 following:

‘‘322. Magnetic levitation transportation technology deployment program.’’.

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