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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3360 Introduced in Senate (IS)]

110th CONGRESS
  2d Session
                                S. 3360

  To increase the availability of domestically manufactured passenger 
   cars for intercity passenger rail service, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                July 29 (legislative day, July 28), 2008

Mr. Durbin (for himself and Mr. Carper) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To increase the availability of domestically manufactured passenger 
   cars for intercity passenger rail service, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Creating American Rolling Stock Act 
of 2008'' or the ``Train CARS Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Amtrak.--The term ``Amtrak'' means the National 
        Railroad Passenger Corporation.
            (2) Eligible applicant.--The term ``eligible applicant'' 
        means Amtrak, a State (including the District of Columbia), a 
        group of States, an interstate compact, or a regional 
        transportation authority established by 1 or more States and 
        having responsibility for providing intercity passenger rail 
        service.
            (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.
            (4) Rehabilitate.--The term ``rehabilitate'' means 
        extending the useful life or improving the effectiveness of 
        existing rolling stock, including--
                    (A) the correction of a deficiency;
                    (B) the modernization or replacement of equipment;
                    (C) the modernization of, or replacement of parts 
                for, rolling stock;
                    (D) the rehabilitation or remanufacture of rail 
                rolling stock and associated facilities used primarily 
                in intercity passenger rail service; and
                    (E) the use of nonstructural elements.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.

SEC. 3. GRANTS TO PURCHASE DOMESTICALLY MANUFACTURED ROLLING STOCK FOR 
              INTERCITY PASSENGER RAIL SERVICE.

    (a) Grant Authorized.--
            (1) In general.--The Secretary of Transportation may award 
        grants under this section to eligible applicants to purchase or 
        rehabilitate domestically manufactured rolling stock necessary 
        to provide or improve intercity passenger rail transportation.
            (2) Conditions.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary shall promulgate 
        regulations that establish procedures and schedules for the 
        awarding of grants under this section, including application 
        and qualification procedures and a record of decision on 
        applicant eligibility.
    (b) Project as Part of State Rail Plan.--
            (1) In general.--The Secretary may not award a grant for a 
        purchase of rolling stock under this section unless the 
        Secretary determines that--
                    (A) the project is part of a State rail plan 
                developed under chapter 225 of title 49, United States 
                Code; and
                    (B) the applicant or recipient has or will have the 
                legal, financial, and technical capacity to purchase, 
                install, and maintain the rolling stock.
            (2) Information.--An eligible applicant shall provide 
        sufficient information upon which the Secretary can make the 
        determination required under paragraph (1).
    (c) Selection Criteria.--In selecting grant recipients under 
subsection (a), the Secretary shall--
            (1) require that each rail car purchased with grant funds 
        meet all applicable safety and security requirements;
            (2) give preference to rail cars with high levels of 
        estimated ridership, increased on-time performance, reduced 
        trip time, additional service frequency to meet anticipated or 
        existing demand, or other significant service enhancements;
            (3) ensure that each rail car 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 available; and
            (4) give preference to purchases of rolling stock that--
                    (A) are expected to have a significant favorable 
                impact on air or highway traffic congestion, capacity, 
                or safety;
                    (B) will improve freight or commuter rail 
                operations;
                    (C) will have significant environmental benefits, 
                including the purchase of environmentally sensitive, 
                fuel-efficient, and cost-effective passenger rail 
                equipment;
                    (D) will have positive economic and employment 
                impacts;
                    (E) 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;
                    (F) involve donated property interests or services;
                    (G) 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) of title 49, United States Code;
                    (H) are designed to support intercity passenger 
                rail service;
                    (I) can be easily transferred to commuter service 
                or to another intercity passenger rail route; and
                    (J) are produced domestically.
    (d) Amtrak Eligibility.--To receive a grant under this section, 
Amtrak may enter into a cooperative agreement with 1 or more States to 
purchase or rehabilitate rolling stock for 1 or more projects on a 
State rail plan's ranked list of rail capital projects developed under 
section 22504(a)(5) of title 49, United States Code.
    (e) Federal Share of Net Project Cost.--A grant for the purchase of 
rolling stock under this section shall not exceed 80 percent of the 
total cost.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as are necessary to the Secretary for fiscal 
year 2009 and for each subsequent fiscal year for the grants to 
purchase domestically manufactured and rehabbed rolling stock under 
this section.

SEC. 4. BUY AMERICAN CONDITIONS.

    (a) Domestic Buying Preference.--
            (1) Requirement.--
                    (A) In general.--In using grant funds or bond 
                proceeds made available under this Act or an amendment 
                made by this Act for purchasing rolling stock, a grant 
                or bond proceeds recipient may only purchase--
                            (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 (A) shall only 
                apply to purchases totaling at least $1,000,000.
            (2) Exemptions.--The Secretary of Transportation may exempt 
        a grant or bond proceeds recipient from the requirements of 
        this subsection if the Secretary, after receiving an 
        application for such exemption, determines 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.
    (b) Operators Deemed Rail Carriers and Employers for Certain 
Purposes.--Any entity that conducts rail operations using rolling stock 
that has been manufactured or rehabilitated with funding provided in 
whole or in part by a grant or bond proceeds made available under this 
Act or an amendment made by this Act shall be considered a rail carrier 
(as defined in section 10102(5) of title 49, United States Code) for 
purposes of this Act and any other law that adopts that definition or 
in which that definition applies, including--
            (1) the Railroad Retirement Act of 1974 (45 U.S.C. 231 et 
        seq.);
            (2) the Railway Labor Act (43 U.S.C. 151 et seq.); and
            (3) the Railroad Unemployment Insurance Act (45 U.S.C. 351 
        et seq.).
    (c) Prevailing Wage Requirement.--Any entity that purchases or 
rehabilitates rolling stock which has been financed in whole or in part 
by grants or bond proceeds made available under this Act or an 
amendment made by this Act shall comply with subchapter IV of chapter 
31 of title 40, United States Code, commonly referred to as the 
``Davis-Bacon Act''.

SEC. 5. NEXT GENERATION CORRIDOR TRAIN EQUIPMENT POOL.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, Amtrak shall establish a Next Generation 
Corridor Equipment Pool Committee (referred to in this section as the 
``Committee''), which shall be comprised of representatives of Amtrak, 
the Federal Railroad Administration, host freight railroad companies, 
passenger railroad equipment manufacturers, commuter rail agencies, 
railroad labor unions, other passenger railroad operators, as 
appropriate, and interested States.
    (b) Purpose.--The purpose of the Committee shall be to design, 
develop specifications for, and procure standardized next-generation 
corridor equipment, including rolling stock that is easily transferred 
from commuter rail service to new intercity passenger rail service.
    (c) Functions.--The Committee may--
            (1) determine the number of different types of equipment 
        required, taking into account variations in operational needs 
        and corridor infrastructure;
            (2) establish a pool of equipment to be used on corridor 
        routes funded by participating States;
            (3) subject to agreements between Amtrak and States, 
        utilize services provided by Amtrak to design, maintain, and 
        rehabilitate equipment; and
            (4) explore the benefits of creating a public or private 
        entity that would--
                    (A) purchase and own domestically produced rolling 
                stock; and
                    (B) lease such rolling stock to States or Amtrak 
                for passenger rail service.
    (d) Cooperative Agreements.--Amtrak and States participating in the 
Committee may--
            (1) enter into agreements for the funding, procurement, 
        rehabilitation, ownership, management, or leasing of corridor 
        equipment, including equipment currently owned or leased by 
        Amtrak and next generation corridor equipment acquired as a 
        result of the Committee's actions; and
            (2) establish a corporation, which may be owned or jointly 
        owned by Amtrak, participating States or other entities, to 
        perform these functions.

SEC. 6. INTERCITY PASSENGER RAIL ROLLING STOCK ACCOUNT.

    (a) Establishment of Account.--Section 9503 of the Internal Revenue 
Code of 1986 (relating to Highway Trust Fund) is amended by adding at 
the end the following new subsection:
    ``(g) Intercity Passenger Rail Rolling Stock Account.--
            ``(1) Creation of account.--There is established in the 
        Highway Trust Fund a separate account to be known as the 
        `Intercity Passenger Rail Rolling Stock Account', consisting of 
        such amounts as may be transferred or credited to the Intercity 
        Passenger Rail Rolling Stock Account as provided in this 
        subsection or section 9602(b).
            ``(2) Transfer to account of amounts equivalent to certain 
        taxes.--The Secretary of the Treasury shall transfer to the 
        Intercity Passenger Rail Rolling Stock Trust Fund the intercity 
        passenger rail rolling stock portion of the amounts 
        appropriated to the Highway Trust Fund under subsection (b) 
        which are attributable to taxes under section 4041 or 4081 
        imposed after September 30, 2009, and before October 1, 2012. 
        For purposes of the preceding sentence, the term `intercity 
        passenger rail rolling stock portion' means for any fuel with 
        respect to which tax was imposed under section 4041 or 4081 and 
        otherwise deposited into the Highway Trust Fund, the determined 
        at the rate of .25 cent per gallon.
            ``(3) Expenditures from account.--
                    ``(A) In general.--Amounts in the Intercity 
                Passenger Rail Rolling Stock Account shall be available 
                without fiscal year limitation to--
                            ``(i) eligible applicants (as defined in 
                        section 2 of the Train CARS Act) to finance the 
                        purchase and rehabilitation of rolling stock, 
                        and
                            ``(ii) each non-Amtrak State, to the extent 
                        determined under subparagraph (B), for 
                        transportation-related expenditures.
                    ``(B) Maximum amount of funds to non-amtrak 
                states.--Except as provided under subparagraph (C), 
                each non-Amtrak State shall receive under this 
                paragraph an amount equal to the lesser of--
                            ``(i) the State's qualified expenses for 
                        the fiscal year, or
                            ``(ii) the product of the number of months 
                        such State is a non-Amtrak State in such fiscal 
                        year and \1/12\ of 1 percent of the lesser of--
                                    ``(I) the aggregate amounts 
                                transferred and credited to the 
                                Intercity Passenger Rail Account under 
                                paragraph (1) for such fiscal year, or
                                    ``(II) the aggregate amounts 
                                appropriated from the Intercity 
                                Passenger Rail Account for such fiscal 
                                year.
                    ``(C) Adjustment.--If the amount determined under 
                subparagraph (B)(ii) exceeds the amount under 
                subparagraph (B)(i) for any fiscal year, the amount 
                under subparagraph (B)(ii) for the following fiscal 
                year shall be increased by the amount of such excess.
            ``(4) Definitions.--For purposes of this subsection--
                    ``(A) Qualified expenses.--The term `qualified 
                expenses' means expenses incurred, with respect to 
                obligations made, after September 30, 2009, and before 
                October 1, 2012--
                            ``(i) for--
                                    ``(I) in the case of the National 
                                Railroad Passenger Corporation, the 
                                acquisition of equipment and rolling 
                                stock, the upgrading of rolling stock 
                                maintenance facilities, and the 
                                maintenance of existing equipment in 
                                intercity passenger rail service, and 
                                the payment of interest and principal 
                                on obligations incurred for such 
                                acquisition, upgrading, and 
                                maintenance, and
                                    ``(II) in the case of a non-Amtrak 
                                State, transportation-related expenses, 
                                and
                            ``(ii) certified by the Secretary of 
                        Transportation on October 1 as meeting the 
                        requirements of clause (i) and as qualified for 
                        payment under paragraph (5) for the fiscal year 
                        beginning on such date.
                    ``(B) Non-amtrak state.--The term `non-Amtrak 
                State' means any State which does not receive intercity 
                passenger rail service from the National Railroad 
                Passenger Corporation.
            ``(5) Contract authority.--Notwithstanding any other 
        provision of law, the Secretary of Transportation shall certify 
        expenses as qualified for a fiscal year on October 1 of such 
        year, in an amount not to exceed the amount of receipts 
        estimated by the Secretary of the Treasury to be transferred to 
        the Intercity Passenger Rail Rolling Stock Account for such 
        fiscal year. Such certification shall result in a contractual 
        obligation of the United States for the payment of such 
        expenses.
            ``(6) Tax treatment of trust fund expenditures.--With 
        respect to any payment of qualified expenses from the Intercity 
        Passenger Rail Rolling Stock Account during any taxable year to 
        a taxpayer--
                    ``(A) such payment shall not be included in the 
                gross income of the taxpayer for such taxable year,
                    ``(B) no deduction shall be allowed to the taxpayer 
                with respect to any amount paid or incurred which is 
                attributable to such payment, and
                    ``(C) the basis of any property shall be reduced by 
                the portion of the cost of such property which is 
                attributable to such payment.
            ``(7) Termination.--The Secretary shall determine and 
        retain, not later than October 1, 2012, the amount in the 
        Intercity Passenger Rail Rolling Stock Account necessary to pay 
        any outstanding qualified expenses, and shall transfer any 
        amount not so retained to the Highway Trust Fund.''.
    (b) Conforming Amendment.--Section 9503 of the Internal Revenue 
Code of 1986 is amended by striking paragraph (5) of subsection (e) and 
by adding at the end the following new subsection:
    ``(h) Portion of Certain Transfers To Be Made From Accounts.--
            ``(1) In general.--Transfers under paragraphs (2), (3), and 
        (4) of subsection (c) shall be borne by the Highway Account, 
        the Mass Transit Account, and the Intercity Passenger Rail 
        Rolling Stock Account in proportion to the respective revenues 
        transferred under this section to the Highway Account (after 
        the application of subsections (e)(2) and (g)(2)) and the Mass 
        Transit Account and the Intercity Passenger Rail Rolling Stock 
        Account.
            ``(2) Highway account.--For purposes of paragraph (1), the 
        term `Highway Account' means the portion of the Highway Trust 
        Fund which is not the Mass Transit Account or the Intercity 
        Passenger Rail Rolling Stock Account.''.
    (c) Capacity Improvement Charge Matching Program.--Any eligible 
applicant that subsidizes intercity passenger rail service and imposes 
a capital investment fee on each ticket sold for such service is 
eligible to receive $1 from the Intercity Passenger Rail Rolling Stock 
Account (as established in section 9503(g) of the Internal Revenue Code 
of 1986) for every $1 of such fee that is used to purchase domestically 
manufactured rolling stock.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to taxes imposed after September 30, 2009.

SEC. 7. RAIL INFRASTRUCTURE INVESTMENT.

    (a) Credit to Holders of Qualified Amtrak Bonds.--Subpart I of part 
IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 
(relating to credits against tax) is amended by adding at the end the 
following new section:

``SEC. 54C. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

    ``(a) Qualified Amtrak Bond.--For purposes of this subpart, the 
term `qualified Amtrak bond' means any bond issued as part of an issue 
if--
            ``(1) 100 percent or more of the available project proceeds 
        of such issue are to be used for expenditures incurred after 
        the date of the enactment of this section for any qualified 
        project,
            ``(2) the bond is issued by the National Railroad Passenger 
        Corporation, is in registered form, and meets the bond 
        limitation requirements under subsection (b),
            ``(3) the issuer designates such bond for purposes of this 
        section,
            ``(4) the issuer certifies that it meets the State 
        contribution requirement of subsection (h) with respect to such 
        project, as in effect on the date of the enactment of this 
        section,
            ``(5) the issuer certifies that it has obtained the written 
        approval of the Secretary of Transportation for such project in 
        accordance with section 26301 of title 49, United States Code, 
        as in effect on the date of the enactment of this section,
            ``(6) the payment of principal with respect to such bond is 
        the obligation of the National Railroad Passenger Corporation, 
        and
            ``(7) in lieu of the requirements of section 54A(d)(2), the 
        issue meets the requirements of subsection (d).
    ``(b) Limitations on Amount of Bonds Designated.--
            ``(1) In general.--There is a qualified Amtrak bond 
        limitation for each fiscal year. Such limitation is--
                    ``(A) $700,000,000 for each of the fiscal years 
                2009 through 2012, and
                    ``(B) except as provided in paragraph (4), $0 after 
                fiscal year 2012.
            ``(2) Limits on bonds for individual states.--Not more than 
        $300,000,000 of the limitation under paragraph (1) may be 
        designated for any individual State.
            ``(3) Limit on bonds for other projects.--Not more than 
        $100,000,000 of the limitation under paragraph (1) for any 
        fiscal year may be designated for all qualified projects 
        described in subsection (g)(1)(C).
            ``(4) Carryover of unused limitation.--If for any fiscal 
        year--
                    ``(A) the limitation amount under paragraph (1), 
                exceeds
                    ``(B) the amount of bonds issued during such year 
                which are designated under subsection (a)(3),
        the limitation amount under paragraph (1) for the following 
        fiscal year (through fiscal year 2016) shall be increased by 
        the amount of such excess.
    ``(c) Maturity Limitations.--In lieu of section 54A(d)(5), a bond 
shall not be treated as a qualified Amtrak bond if the maturity of such 
bond exceeds 20 years.
    ``(d) Special Rules Relating to Expenditures.--
            ``(1) In general.--Subject to paragraph (2), an issue shall 
        be treated as meeting the requirements of this subsection if as 
        of the date of issuance, the issuer reasonably expects--
                    ``(A) to spend 100 percent or more of the available 
                project proceeds of the issue for 1 or more qualified 
                projects within the 3-year period beginning on such 
                date,
                    ``(B) to incur a binding commitment with a third 
                party to spend at least 10 percent of the proceeds from 
                the sale of the issue, or to commence construction, 
                with respect to such projects within the 6-month period 
                beginning on such date, and
                    ``(C) to proceed with due diligence to complete 
                such projects and to spend the proceeds from the sale 
                of the issue.
            ``(2) Rules regarding continuing compliance after 3-year 
        determination.--If at least 100 percent of the available 
        project proceeds of the issue is not expended for 1 or more 
        qualified projects within the 3-year period beginning on the 
        date of issuance, but the requirements of paragraph (1) are 
        otherwise met, an issue shall be treated as continuing to meet 
        the requirements of this subsection if either--
                    ``(A) the issuer uses all unspent proceeds of the 
                issue to redeem bonds of the issue within 90 days after 
                the end of such 3-year period, or
                    ``(B) the following requirements are met:
                            ``(i) The issuer spends at least 75 percent 
                        of the available project proceeds of the issue 
                        for 1 or more qualified projects within the 3-
                        year period beginning on the date of issuance.
                            ``(ii) Either--
                                    ``(I) the issuer spends at least 
                                100 percent of the available project 
                                proceeds of the issue for 1 or more 
                                qualified projects within the 4-year 
                                period beginning on the date of 
                                issuance, or
                                    ``(II) the issuer pays to the 
                                Federal Government any earnings on the 
                                proceeds of the issue that accrue after 
                                the end of the 3-year period beginning 
                                on the date of issuance and uses all 
                                unspent proceeds of the issue to redeem 
                                bonds of the issue within 90 days after 
                                the end of the 4-year period beginning 
                                on the date of issuance.
        For purposes of this paragraph, the amount of the nonqualified 
        bonds required to be redeemed shall be determined in the same 
        manner as under section 142.
    ``(e) Recapture of Portion of Credit Where Cessation of 
Compliance.--
            ``(1) In general.--If any bond which when issued purported 
        to be a qualified Amtrak bond ceases to be such a qualified 
        bond, the issuer shall pay to the United States (at the time 
        required by the Secretary) an amount equal to the sum of--
                    ``(A) the aggregate of the credits allowable under 
                section 54A with respect to such bond (determined 
                without regard to section 54A(c)) for taxable years 
                ending during the calendar year in which such cessation 
                occurs and the 2 preceding calendar years, and
                    ``(B) interest at the underpayment rate under 
                section 6621 on the amount determined under 
                subparagraph (A) for each calendar year for the period 
                beginning on the first day of such calendar year.
            ``(2) Failure to pay.--If the issuer fails to timely pay 
        the amount required by paragraph (1) with respect to such bond, 
        the tax imposed by this chapter on each holder of any such bond 
        which is part of such issue shall be increased (for the taxable 
        year of the holder in which such cessation occurs) by the 
        aggregate decrease in the credits allowed under section 54A to 
        such holder for taxable years beginning in such 3 calendar 
        years which would have resulted solely from denying any credit 
        under section 54A with respect to such issue for such taxable 
        years.
            ``(3) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (2) only with 
                respect to credits allowed by reason of section 54A 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under paragraph (2) shall not be treated as a tax 
                imposed by this chapter for purposes of determining--
                            ``(i) the amount of any credit allowable 
                        under this part, or
                            ``(ii) the amount of the tax imposed by 
                        section 55.
            ``(4) Treatment of changes in use.--For purposes of 
        paragraph (1), the proceeds from the sale of an issue shall not 
        be treated as used for a qualified project to the extent that 
        the issuer takes any action within its control which causes 
        such proceeds not to be used for a qualified project. The 
        Secretary shall prescribe regulations specifying remedial 
        actions that may be taken (including conditions to taking such 
        remedial actions) to prevent an action described in the 
        preceding sentence from causing a bond to fail to be a 
        qualified Amtrak bond.
    ``(f) Trust Account.--
            ``(1) In general.--The following amounts shall be held in a 
        trust account by a trustee independent of the National Railroad 
        Passenger Corporation:
                    ``(A) The proceeds from the sale of all bonds 
                designated for purposes of this section.
                    ``(B) The amount of any matching contributions with 
                respect to such bonds.
                    ``(C) The temporary period investment earnings on 
                proceeds from the sale of such bonds.
                    ``(D) Any earnings on any amounts described in 
                subparagraph (A), (B), or (C).
            ``(2) Use of funds.--Amounts in the trust account may be 
        used only to pay costs of qualified projects and redeem 
        qualified Amtrak bonds, except that amounts withdrawn from the 
        trust account to pay costs of qualified projects may not exceed 
        the aggregate proceeds from the sale of all qualified Amtrak 
        bonds issued under this section.
            ``(3) Use of remaining funds in trust account.--Upon the 
        redemption of all qualified Amtrak bonds issued under this 
        section, any remaining amounts in the trust account described 
        in paragraph (1) shall be available to the issuer for any 
        qualified project.
    ``(g) Qualified Project.--For purposes of this section, the term 
`qualified project' has the meaning given the term `qualified expenses' 
in section 9503(g) of the Internal Revenue Code of 1986.
    ``(h) State Contribution Requirements.--
            ``(1) In general.--For purposes of subsection (a)(4), the 
        State contribution requirement of this subsection is met with 
        respect to any qualified project if the National Railroad 
        Passenger Corporation has received from 1 or more States, not 
        later than the date of issuance of the bond, matching 
        contributions of not less than 20 percent of the cost of the 
        qualified project.
            ``(2) State matching contributions may not include federal 
        funds.--For purposes of this subsection, State matching 
        contributions shall not be derived, directly or indirectly, 
        from Federal funds, including any transfers from the Highway 
        Trust Fund under section 9503.''.
    (b) Exclusion From Gross Income of Contributions by Amtrak to Other 
Rail Carriers.--
            (1) In general.--Section 118 of the Internal Revenue Code 
        of 1986 (relating to contributions to the capital of a 
        corporation) is amended by redesignating subsections (d) and 
        (e) as subsections (e) and (f), respectively, and by inserting 
        after subsection (c) the following new subsection:
    ``(d) Special Rule for Contributions by Amtrak to Other Rail 
Carriers.--For purposes of this section, the term `contribution to the 
capital of the taxpayer' does not include any contribution by the 
National Railroad Passenger Corporation of personal or real property 
funded by the proceeds of qualified Amtrak bonds under section 54C.''.
            (2) Conforming amendment.--Subsection (b) of such section 
        118 is amended by striking ``subsection (c)'' and inserting 
        ``subsections (c) and (d)''.
    (c) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) of the Internal Revenue 
        Code of 1986 is amended to read as follows:
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means--
                    ``(A) a qualified forestry conservation bond, or
                    ``(B) a qualified Amtrak bond,
        which is part of an issue that meets requirements of paragraphs 
        (2), (3), (4), (5), and (6).''.
            (2) Subparagraph (C) of section 54A(d)(2) of such Code is 
        amended to read as follows:
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means--
                            ``(i) in the case of a qualified forestry 
                        conservation bond, a purpose specified in 
                        section 54B(e), and
                            ``(ii) in the case of a qualified Amtrak 
                        bond, a purpose specified in section 54C(g).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 54C. Qualified Amtrak bonds.''.
    (d) Annual Report by Treasury on Amtrak Trust Account.--The 
Secretary of the Treasury shall annually report to Congress as to 
whether the amount deposited in the trust account established by Amtrak 
under section 54C(f) of the Internal Revenue Code of 1986, as added by 
this section, is sufficient to fully repay at maturity the principal of 
any outstanding qualified Amtrak bonds issued pursuant to section 54C 
of such Code (as so added), together with amounts expected to be 
deposited into such account, as certified by Amtrak in accordance with 
procedures prescribed by the Secretary of the Treasury.
    (e) Issuance of Regulations.--The Secretary of the Treasury shall 
issue regulations required under section 54C of the Internal Revenue 
Code of 1986 (as added by this section) not later than 90 days after 
the date of the enactment of this Act.
    (f) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of enactment of this Act.

SEC. 8. NATIONAL PASSENGER RAIL ELECTRIFICATION SYSTEM STUDY.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall conduct a study to determine the potential costs, benefits, and 
economic impact of providing intercity passenger rail along a national 
railway electrification system.
    (b) Components of Study.--The study conducted under subsection (a) 
shall analyze the infrastructure needed to operate reliable, high-speed 
rail intercity passenger service along a national railway 
electrification system, including an analysis of--
            (1) the equipment costs to achieve such service;
            (2) the environmental impacts related to transitioning to 
        an electrified system;
            (3) safety issues;
            (4) national security issues;
            (5) the high-speed benefits of an electrified system;
            (6) the need for any improvements to existing tunnels, 
        bridges, and other railroad facilities, or the need for the 
        construction of new facilities; and
            (7) the impacts to freight rail traffic.

SEC. 9. REPORT REQUIRED.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Labor shall submit a report to Congress that 
describes--
            (1) existing Federal programs, policies, and initiatives 
        that could assist in the training of workers from the 
        automotive, aviation, and manufacturing industries to 
        transition such workers to the railcar manufacturing and 
        maintenance industry; and
            (2) recommendations for specific legislative and 
        administrative changes that would assist and encourage workers 
        who have been displaced by cutbacks in the aviation, 
        automotive, and manufacturing industries into transitioning to 
        the rail industry.
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