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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1961 Introduced in Senate (IS)]

108th CONGRESS
  1st Session
                                S. 1961

   To provide for the revitalization and enhancement of the American 
           passenger and freight rail transportation system.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 24, 2003

 Mr. Hollings (for himself, Ms. Collins, Mr. Carper, Mr. Specter, Mr. 
Jeffords, Mr. Lautenberg, and Mr. Biden) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
   To provide for the revitalization and enhancement of the American 
           passenger and freight rail transportation system.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Railroad 
Revitalization, Investment, and Enhancement Act of the 21st Century'' 
or the ``Arrive 21 Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Amendment of title 49, United States Code.
Sec. 3. Purposes.
                 TITLE I--RAIL TRANSPORTATION SECURITY

Sec. 101. Rail transportation security risk assessment.
Sec. 102. Certain personnel limitations not to apply.
                     TITLE II--FEDERAL RAIL POLICY

Sec. 201. Federal rail policy enhancement.
Sec. 202. Rail cooperative research program.
Sec. 203. State rail plans.
Sec. 204. Interstate railroad passenger high-speed transportation 
                            policy.
Sec. 205. High-speed rail corridor planning.
Sec. 206. Designated high-speed rail corridors.
Sec. 207. Rehabilitation, improvement, and security financing.
Sec. 208. Repayment of loan to National Railroad Passenger Corporation.
                      TITLE III--INTERMODAL POLICY

Sec. 301. 50-year intermodal blueprint.
Sec. 302. Intermodal transportation policy.
                    TITLE IV--AMTRAK AUTHORIZATIONS

Sec. 401. National Railroad Passenger Transportation system defined.
Sec. 402. Restructuring of long-term debt and capital leases.
Sec. 403. General Amtrak authorizations.
Sec. 404. Excess railroad retirement.
Sec. 405. Authorizations for environmental compliance and station 
                            improvements.
Sec. 406. Tunnel life safety.
Sec. 407. Authorization for capital and operating expenses.
Sec. 408. Establishment of grant process.
Sec. 409. State-supported routes.
Sec. 410. Re-establishment of Northeast Corridor Safety Committee.
Sec. 411. Amtrak board of directors.
Sec. 412. Establishment of financial accounting system for Amtrak 
                            operations by independent auditor.
Sec. 413. Development of 5-year financial plan.
Sec. 414. Independent auditor to establish methodologies for Amtrak 
                            route and service planning decisions.
Sec. 415. Metrics and standards.
Sec. 416. On-time performance.
            TITLE V--RAIL INFRASTRUCTURE FINANCE CORPORATION

Sec. 501. Establishment of corporation.
Sec. 502. Board of directors.
Sec. 503. Officers and employees.
Sec. 504. Nonprofit and nonpolitical nature of the corporation.
Sec. 505. Purpose and activities of corporation.
Sec. 506. Report to Congress.
Sec. 507. Administrative matters.
Sec. 508. Rail Infrastructure Finance Trust.
               TITLE VI--RAIL DEVELOPMENT GRANT PROGRAMS

Sec. 601. Intercity passenger rail development grant program.
Sec. 602. Freight rail infrastructure development grant program.
Sec. 603. High priority projects grant program.
Sec. 604. Grant program requirements and limitations.
Sec. 605. Standards and conditions.
Sec. 606. Grant program funding.
               TITLE VII--AUTHORIZATION OF APPROPRIATIONS

Sec. 701. Authorization of Appropriations.

SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or a 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of title 49, 
United States Code.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to ensure more adequate financing of infrastructure 
        projects for the national rail transportation system through--
                    (A) the establishment of the nonprofit Rail 
                Infrastructure Finance Corporation to provide financial 
                support for rail infrastructure improvement projects by 
                issuing qualified rail transportation bonds; and
                    (B) the provision of appropriate tax treatment of 
                qualified rail transportation bonds so issued;
            (2) to create a partnership between public and private 
        entities to promote freight and passenger rail infrastructure 
        development that benefits the public;
            (3) to provide resources to States and groups of States for 
        rail capital projects that result in a safe, secure, and 
        efficient rail transportation system;
            (4) to enhance Federal and State rail transportation policy 
        and planning;
            (5) to promote intermodal transportation investment, 
        planning, and coordination; and
            (6) to reauthorize the National Railroad Passenger 
        Corporation and reaffirm the Federal commitment to a national 
        system of intercity passenger rail transportation.

                 TITLE I--RAIL TRANSPORTATION SECURITY

SEC. 101. RAIL TRANSPORTATION SECURITY RISK ASSESSMENT.

    (a) In General.--
            (1) Assessment.--The Secretary of Homeland Security, in 
        consultation with the Secretary of Transportation, shall assess 
        the security risks associated with freight and intercity 
        passenger rail transportation and develop prioritized 
        recommendations for--
                    (A) improving the security of rail infrastructure 
                and facilities, terminals, tunnels, rail bridges, rail 
                switching areas, and other areas identified by the 
                Secretary as posing significant rail-related risks to 
                public safety and the movement of interstate commerce, 
                taking into account the impact that any proposed 
                security measure might have on the provision of rail 
                service;
                    (B) deploying chemical and biological weapon 
                detection equipment;
                    (C) training employees in terrorism response 
                activities; and
                    (D) identifying the immediate and long-term 
                economic impact of measures that may be required to 
                address those risks.
            (2) Existing private and public sector efforts.--The 
        assessment shall include a review of any actions already taken 
        or prospective actions necessary to address identified security 
        issues by both public and private entities.
    (b) Consultation; Use of Existing Resources.--In carrying out the 
assessment required by subsection (a), the Secretary shall consult with 
rail management, rail labor, facility owners and operators, and public 
safety officials (including officials responsible for responding to 
emergencies).
    (c) Report.--
            (1) Contents.--Within 180 days after the date of enactment 
        of this Act, the Secretary shall transmit to the Senate 
        Committee on Commerce, Science, and Transportation and the 
        House of Representatives Committee on Transportation and 
        Infrastructure a report, without compromising national 
        security, containing the assessment and prioritized 
        recommendations required by subsection (a).
            (2) Format.--The Secretary may submit the report in both 
        classified and redacted formats if the Secretary determines 
        that such action is appropriate or necessary.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $515,000,000 for fiscal year 2004 to 
carry out this section, implement the measures contained in the 
Secretary's prioritized recommendations, and award grants for purposes 
identified in the assessment in subsection (a), such sums to remain 
available until expended.

SEC. 102. CERTAIN PERSONNEL LIMITATIONS NOT TO APPLY.

    Any statutory limitation on the number of employees in the 
Transportation Security Administration of the Department of 
Transportation, before or after its transfer to the Department of 
Homeland Security, does not apply to the extent that any such employees 
are responsible for implementing the provisions of this Act.

                     TITLE II--FEDERAL RAIL POLICY

SEC. 201. FEDERAL RAIL POLICY ENHANCEMENT.

    Section 103 is amended to read as follows:
``Sec. 103. Federal Railroad Administration
    ``(a) In General.--The Federal Railroad Administration is an 
administration in the Department of Transportation.
    ``(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 of Transportation.
    ``(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.
    ``(d) Powers and Duties.--
            ``(1) In general.--The Administrator shall carry out--
                    ``(A) the duties and powers related to railroad 
                safety vested in the Secretary by section 20134(c) and 
                chapters 203 through 211 of this title, and chapter 213 
                of this title in carrying out chapters 203 through 211;
                    ``(B) the duties and powers related to railroad 
                policy and development under subsection (e); and
                    ``(C) any additional duties and powers prescribed 
                by the Secretary.
            ``(2) Transfers.--A duty or power specified by paragraph 
        (1)(A) of this subsection 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.
            ``(3) 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 paragraph shall be carried out by the 
        Administrator.
    ``(e) Additional Duties of the Administrator.--The Administrator 
shall--
            ``(1) provide assistance to States in developing State rail 
        plans prepared under section 22501 and review all State rail 
        plans submitted under such section 22501;
            ``(2) develop a long range national rail plan that is 
        consistent with approved State rail plans, the 50-year 
        Intermodal Blueprint developed under section 5503(e), 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 Arrive 21 Act;
            ``(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 under 
        section 205;
            ``(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.
    ``(f) 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 2005 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.''.

SEC. 202. RAIL COOPERATIVE RESEARCH PROGRAM.

    (a) Requirement for Program.--
            (1) Establishment and content.--Chapter 249 is amended by 
        adding at the end the following:
``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.''.
            (2) Clerical amendment.--The chapter analysis for chapter 
        249 is amended by adding at the end the following:

``24910. Rail cooperative research program''.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $5,000,000 for each of 
fiscal years 2004 through 2009 to carry out the rail cooperative 
research program under section 24910 of title 49, United States Code.

SEC. 203. STATE RAIL PLANS.

    (a) In General.--Part B of subtitle V is amended by adding at the 
end the following:

       ``CHAPTER 225--STATE RAIL PLANS AND HIGH PRIORITY PROJECTS

        ``Sec.
        ``22501. Authority
        ``22502. Purposes
        ``22503. Transparency; coordination; review
        ``22504. Content
        ``22505. Approval
        ``22506. High priority projects
        ``22507. Definitions
``Sec. 22501. Authority
    ``(a) In General.--Each State may prepare and maintain a State rail 
plan in accordance with the provisions of this chapter.
    ``(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 approval; and
            ``(4) revise and resubmit a State-approved plan no less 
        frequently than once every 5 years for reapproval by the 
        Secretary.
``Sec. 22502. 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 preserve, 
        enhance, or expand 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. 22503. 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.
    ``(c) Annual Reviews.--Each State shall transmit an annual report 
on its plan to the Secretary of Transportation. The report shall 
include, for the year preceding the year in which submitted, the 
following matters:
            ``(1) A review of progress made, and actions taken, under 
        the plan during the year, including an update on the budget, 
        schedule, and financing for each project on the freight or 
        passenger rail capital project list compiled under section 
        22504(a) of this title.
            ``(2) Any modifications made in the plan after approval of 
        the plan by the Secretary or after the submission of the most 
        recent annual report on the plan to the Secretary, including 
        any modifications made to the priority freight or passenger 
        rail capital list required by section 22504(b).
    ``(d) Approval of Modified Plans.--Modifications of a State rail 
plan that are determined substantive by the Secretary, including any 
modification to a priority freight or passenger rail capital project 
list required by section 22504(b), is subject to approval (for the 
purposes of this chapter) by the Secretary.
``Sec. 22504. Content
    ``(a) In General.--Each State rail plan shall contain the 
following:
            ``(1) An evaluation of the existing overall rail 
        transportation system and rail services and facilities within 
        the State, a prioritization of such services and facilities in 
        terms of their contributions to the State's rail and 
        transportation system.
            ``(2) A comprehensive review of all rail lines within the 
        State, including proposed high speed rail corridors and 
significant rail line segments not currently in service, containing an 
overview of the transportation services provided by those lines, their 
ownership, operating characteristics, and the general state of their 
infrastructure.
            ``(3) A statement of the State's freight and 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 service and investment program for 
        current and future freight and passenger services 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 capital and operating funding resources, public 
        subsidies, State taxation, and other financial policies 
        relating to rail service and rail infrastructure development.
            ``(7) A statement of rail service issues within the State, 
        such as congestion and capacity, and current system 
        deficiencies on a regional, intrastate, and interstate basis, 
        that reflects consultation with neighboring States and 
        describes any coordination of regional rail service.
            ``(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 description of new technology that relates to rail 
        transportation within the State, including logistics and 
        process improvements.
            ``(10) 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.
            ``(11) 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.
            ``(12) A compilation of studies and reports on high-speed 
        rail corridor development within the State not included in a 
        previous plan under this chapter, and a plan for funding any 
        recommended development of such corridors in the State.
            ``(13) 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 service and 
        investment program included in a State rail plan under 
        subsection (a)(5) shall include the following matters:
                    ``(A) Two ranked lists for rail capital projects, 1 
                for freight rail capital projects and 1 for intercity 
                passenger rail capital projects.
                    ``(B) A detailed funding plan for the projects.
            ``(2) Project list content.--The ranked list of freight and 
        intercity passenger 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 
        ranked list of freight and intercity passenger rail capital 
        projects, a State rail transportation authority shall 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) Competitive and service impacts for rail 
                carriers and shippers.
                    ``(G) Preservation of rail service.
                    ``(H) Economic and employment impacts.
                    ``(I) Projected ridership and other service 
                measures for passenger rail projects.
    ``(c) Waiver.--The Secretary may waive any requirement of 
subsection (a) upon application under circumstances that the Secretary 
determines appropriate.
``Sec. 22505. Approval
    ``(a) Criteria.--The Secretary may approve a State rail plan for 
the purposes of this chapter if--
            ``(1) the plan meets all of the requirements applicable to 
        State plans under this chapter;
            ``(2) for each ready-to-commence project listed on the 
        ranked list of freight and intercity passenger rail capital 
        projects under the plan--
                    ``(A) the project meets all safety and 
                environmental requirements including those prescribed 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4331 et seq.) that are applicable to the project 
                under law; and
                    ``(B) the State has entered into an agreement with 
                any owner of rail infrastructure or right of way 
                directly affected by the project that provides for the 
                State to proceed with the project; and
            ``(3) the content of the plan is coordinated with--
                    ``(A) State transportation plans developed pursuant 
                to the requirements of section 135 of title 23; and
                    ``(B) the national rail plan, the 50-year 
                intermodal blueprint develped under section 5503(e) of 
                this title, (if either is available) and any other 
transportation plan of the Federal Government that is required by law 
deemed relevant by the Secretary.
    ``(b) Procedures for State Rail Plan Submission and Approval.--The 
Secretary shall prescribe procedures for States to submit State rail 
plans for review under this title, including standardized format and 
data requirements and procedures for resubmittal if a State rail plan 
is disapproved. The procedures shall provide for the Secretary to 
review a State rail plan and issue a record of decision of approval or 
disapproval, with comment, on such plan within 180 days after the plan 
is submitted.
``Sec. 22506. High priority projects
    ``(a) Designation of Projects.--In reviewing State rail plans, the 
Secretary of Transportation may designate as a high priority project 
any project submitted by a State or group of States that meets both of 
the following criteria:
            ``(1) The project focuses on key rail congestion points 
        that are--
                    ``(A) selected by the Secretary on the basis of 
                national benefits to the rail transportation system; 
                and
                    ``(B) coordinated with the national rail plan, if 
                that plan is available.
            ``(2) The project is on a ranked list of priority freight 
        and passenger rail capital projects that is included in a State 
        rail plan under section 22504(a)(5) of title 49, United States 
        Code, unless this criterion is waived by the Secretary.
    ``(b) Preferred Projects.--The Secretary, in designating high 
priority projects, shall give preference to--
            ``(1) projects that have national significance for--
                    ``(A) improving the national rail network and the 
                Nation's transportation system;
                    ``(B) ensuring particularly high levels of safety;
                    ``(C) increasing intermodal connectivity by 
                providing or improving direct connections between rail 
                facilities and other modes of transportation;
                    ``(D) significantly improving highway, aviation, or 
                maritime capacity, congestion, or safety;
                    ``(E) improving intercity passenger rail service by 
                increasing ridership, reducing trip time, or other 
                significant enhancements;
                    ``(F) improving both intercity passenger rail and 
                freight rail services simultaneously;
                    ``(G) enhancing freight rail service for shippers;
                    ``(H) causing positive economic and employment 
                results;
                    ``(I) producing significant environmental or 
                community benefits;
                    ``(J) having received financial commitments and 
                other support from non-Federal entities such as States, 
                local governments, or private entities;
                    ``(K) enhancing international trade;
                    ``(L) enhancing national security; or
                    ``(M) employing positive train control 
                technologies; and
            ``(2) projects that are at the stage of preparation that 
        all pre-commencement compliance with environmental protection 
        requirements has been completed and the projects are ready to 
        commence.
    ``(c) Regional Balance and Compatibility.--The Secretary, in 
designating high priority projects, shall ensure that--
            ``(1) the geographic distribution of the designated high 
        priority projects is balanced among the geographic regions of 
        the United States and a disproportionate number of such 
        projects is not concentrated in a single State; and
            ``(2) all projects are--
                    ``(A) compatible with State transportation plans 
                developed pursuant to the requirements of section 135 
                of title 23; and
                    ``(B) carried out in conformance with the national 
                rail plan.
    ``(d) Additional Projects.--The Secretary may designate projects 
submitted to the Office by the National Railroad Passenger Corporation, 
either independently or in conjunction with a State or group of States, 
as a high priority project. Any such projects shall be subject to the 
same designation and selection criteria as apply under this section, 
except the criteria set forth in subsections (a)(2) and (c)(2) of this 
section.
``Sec. 22507. Definitions
    ``In this chapter:
            ``(1) Private benefit.--The term `private benefit' 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. The Secretary 
        may seek the advice of the states and rail carriers in further 
        defining this term.
            ``(2) Public benefit.--The term `public benefit' 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. The Secretary make 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.''.
    (b) Clerical Amendment.--The table of chapters for subtitle V is 
amended by inserting after the item relating to chapter 223 the 
following:

``225. STATE RAIL PLANS AND HIGH PRIORITY PROJECTS..........  22501.''.

SEC. 204. INTERSTATE RAILROAD PASSENGER HIGH-SPEED TRANSPORTATION 
              POLICY.

    (a) In General.--Chapter 261 is amended by inserting before section 
26101 the following:
``Sec. 26100. Policy.
    ``The Congress declares that it is the policy of the United States 
that designated high-speed railroad passenger transportation corridors 
are the building blocks of an interconnected National railroad 
passenger system.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 261 is 
amended by inserting before the item relating to section 26101 the 
following:

``26100. Policy''.

SEC. 205. HIGH-SPEED RAIL CORRIDOR PLANNING.

    (a) In General.--Section 26101(a) is amended to read as follows:
    ``(a) Planning.--
            ``(1) In general.--The Secretary of Transportation shall 
        provide planning assistance to States or group of States and 
        other public agencies promoting the development of high-speed 
        rail corridors designated by the Secretary under section 104(d) 
        of title 23. The Secretary shall establish an application and 
        qualification process for applicants eligible for assistance 
        under this section.
            ``(2) Secretary may provide direct or financial 
        assistance.--The Secretary may provide planning assistance 
        under paragraph (1) directly or by providing financial 
        assistance to a public agency or group of public agencies to 
        undertake planning activities approved by the Secretary. Twenty 
        percent of the publicly financed planning costs associated with 
        projects assisted under this chapter shall come from non-
        Federal sources. State matching contributions may not be 
        derived, directly or indirectly, from Federal funds.
    ``(b) Record of Decision.--Upon completion of planning activities 
funded under this section, the Secretary shall make a recommendation on 
the record of whether to proceed with the implementation of the 
corridor.''.
    (b) Conforming and Other Amendments to Section 26101.--Section 
26101 is further amended--
            (1) by striking subsection (c)(2) and inserting the 
        following:
            ``(2) the extent to which the proposed planning focuses on 
        high-speed rail systems, giving a priority to systems which 
        will achieve sustained speeds of 125 miles per hour or greater 
        and projects involving dedicated rail passenger rights-of-
        way;'';
            (2) by inserting ``and'' after the semicolon in subsection 
        (c)(12);
            (3) by striking ``completed; and'' in subsection (c)(13) 
        and inserting ``completed.''; and
            (4) by striking subsection (c)(14).
    (c) Conforming Amendment.--Section 26105(2)(A) is amended by 
striking ``more than 125 miles per hour;'' and inserting ``90 miles per 
hour or more;''.
    (d) Financial Assistance To Include Loans and Loan Guarantees.--
Section 26105(1) is amended by inserting ``loans, loan guarantees,'' 
after ``contracts,''.
    (e) Special Transportation Circumstances.--Section 26101 is amended 
by adding at the end the following:
    ``(d) Special Transportation Circumstances.--In carrying out this 
section, the Secretary shall allocate an appropriate portion of the 
amounts available for planning assistance to providing appropriate 
transportation-related assistance in any State in which the rail 
transportation system--
            ``(1) is not physically connected to rail systems in the 
        continental United States; and
            ``(2) may not otherwise qualify for high speed rail 
        implementation assistance due to the constraints imposed on the 
        railway infrastructure in that State due to the unique 
        characteristics of the geography of that State or other 
        relevant considerations, as determined by the Secretary.''.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $50,000,000 for each of 
fiscal years 2004 through 2009 to provide planning assistance under 
section 26101(a) of title 49, United States Code.

SEC. 206. DESIGNATED HIGH-SPEED RAIL CORRIDORS.

    (a) In General.--The Secretary of Transportation shall give 
priority in allocating funds authorized by section 26104 of title 49, 
United States Code, to designated high-speed rail corridors.
    (b) Designated High-Speed Rail Corridors.--For purposes of 
subsection (a), the following shall be considered to be designated 
high-speed rail corridors:
            (1) California Corridor connecting the San Francisco Bay 
        area and Sacramento to Los Angeles and San Diego.
            (2) Chicago Hub Corridor Network with the following spokes:
                    (A) Chicago to Detroit.
                    (B) Chicago to Minneapolis/St. Paul, Minnesota, via 
                Milwaukee, Wisconsin.
                    (C) Chicago to Kansas City, Missouri, via 
                Springfield, Illinois, and St. Louis, Missouri.
                    (D) Chicago to Louisville, Kentucky, via 
                Indianapolis, Indiana, and Cincinnati, Ohio.
                    (E) Chicago to Cleveland, Ohio, via Toledo, Ohio.
                    (F) Cleveland, Ohio, to Cincinnati, Ohio, via 
                Columbus, Ohio.
            (3) Empire State Corridor from New York City, New York, 
        through Albany, New York, to Buffalo, New York.
            (4) Florida High-Speed Rail Corridor from Tampa through 
        Orlando to Miami.
            (5) Gulf Coast Corridor from Houston Texas, through New 
        Orleans, Louisiana, to Mobile, Alabama, with a branch from New 
        Orleans, through Meridian, Mississippi, and Birmingham, 
        Alabama, to Atlanta, Georgia.
            (6) Keystone Corridor from Philadelphia, Pennsylvania, 
        through Harrisburg, Pennsylvania, to Pittsburgh, Pennsylvania.
            (7) Northeast Corridor from Washington, District of 
        Columbia, through New York City, New York, New Haven, 
Connecticut, and Providence, Rhode Island, to Boston, Massachusetts, 
with a branch from New Haven, Connecticut, to Springfield, 
Massachusetts.
            (8) New England Corridor from Boston, Massachusetts, to 
        Portland and Auburn, Maine, and from Boston, Massachusetts, 
        through Concord, New Hampshire, and Montpelier, Vermont, to 
        Montreal, Quebec.
            (9) Pacific Northwest Corridor from Eugene, Oregon, through 
        Portland, Oregon, and Seattle, Washington, to Vancouver, 
        British Columbia.
            (10) South Central Corridor from San Antonio, Texas, 
        through Dallas/Fort Worth to Little Rock, Arkansas, with a 
        branch from Dallas/Fort Worth through Oklahoma City, Oklahoma, 
        to Tulsa, Oklahoma.
            (11) Southeast Corridor from Washington, District of 
        Columbia, through Richmond, Virginia, Raleigh, North Carolina, 
        Columbia, South Carolina, Savannah, Georgia, and Jessup, 
        Georgia, to Jacksonville, Florida, with--
                    (A) a branch from Raleigh, North Carolina, through 
                Charlotte, North Carolina, and Greenville, South 
                Carolina, to Atlanta, Georgia; a branch from Richmond, 
                to Hampton Roads/Norfolk, Virginia;
                    (B) a branch from Charlotte, North Carolina, to 
                Columbia, South Carolina, to Charleston, South 
                Carolina;
                    (C) a connecting route from Atlanta, Georgia, to 
                Jessup, Georgia;
                    (D) a connecting route from Atlanta, Georgia, to 
                Charleston, South Carolina; and
                    (E) a branch from Raleigh, North Carolina, through 
                Florence, South Carolina, to Charleston, South 
                Carolina, and Savannah, Georgia, with a connecting 
                route from Florence, South Carolina, to Myrtle Beach, 
                South Carolina.
            (12) Southwest Corridor from Los Angeles, California, to 
        Las Vegas, Nevada.
    (c) Other High-Speed Rail Corridors.--For purposes of this section, 
subsection (b)--
            (1) does not limit the term ``designated high-speed rail 
        corridor'' to those corridors described in subsection (b); and
            (2) does not limit the Secretary of Transportation's 
        authority--
                    (A) to designate additional high-speed rail 
                corridors; or
                    (B) to terminate the designation of any high-speed 
                rail corridor.

SEC. 207. REHABILITATION, IMPROVEMENT, AND SECURITY FINANCING.

    (a) Definitions.--Section 102(7) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 802(7)) is amended to read as 
follows:
            ``(7) `railroad' has the meaning given that term in section 
        20102 of title 49, United States Code; and''.
    (b) General Authority.--Section 502 of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 822) is amended--
            (1) by striking ``Secretary may provide direct loans and 
        loan guarantees to State and local governments,'' in subsection 
        (a) and inserting ``Secretary shall provide direct loans and 
        loan guarantees to State and local governments, interstate 
        compacts entered into under section 410 of the Amtrak Reform 
        and Accountability Act of 1997 (49 U.S.C 24101 note),'';
            (2) by striking ``or'' in subsection (b)(1)(B);
            (3) by redesignating subparagraph (C) of subsection (b)(1) 
        as subparagraph (D); and
            (4) by inserting after subparagraph (B) of subsection 
        (b)(1) the following:
                    ``(C) to acquire, improve, or rehabilitate rail 
                safety and security equipment and facilities; or''.
    (c) Extent of Authority.--Section 502(d) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(d)) is 
amended by adding at the end ``The Secretary shall not establish any 
limit on the proportion of the unused amount authorized under this 
subsection that may be used for a single loan or loan guarantee.''.
    (d) Cohorts of Loans.--Section 502(f) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(f)) is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``and'' at the end of subparagraph 
                (D);
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (C) by adding after subparagraph (D) the following 
                new subparagraph:
                    ``(E) the size and characteristics of the cohort of 
                which the loan or loan guarantee is a member; and''; 
                and
            (2) by adding at the end of paragraph (4) the following: 
        ``A cohort may include loans and loan guarantees. The Secretary 
        shall not establish any limit on the proportion of a cohort 
        that may be used for a single loan or loan guarantee.''.
    (e) Conditions of Assistance.--Section 502 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822) is 
amended--
            (1) by striking ``offered;'' in subsection (f)(2)(A) and 
        inserting ``offered, if any;'';
            (2) by inserting ``(1)'' before ``The Secretary'' in 
        subsection (h) and redesignating paragraphs (1), (2), and (3) 
        of that subsection as subparagraphs (A), (B), and (C); and
            (3) by adding at the end of subsection (h) the following:
            ``(2) The Secretary may not require an applicant for a 
        direct loan or loan guarantee under this section to provide 
        collateral.
            ``(3) The Secretary may not require that an applicant for a 
        direct loan or loan guarantee under this section have 
previously sought the financial assistance requested from another 
source.
            ``(4) The Secretary shall require recipients of direct 
        loans or loan guarantees under this section to apply the 
        standards of subsections (b) and (c) of section 22301 of title 
        49, United States Code, to their projects.
            ``(5) The Secretary shall require recipients of direct 
        loans or loan guarantees under this section to comply with--
                    ``(A) the standards of section 24312, as 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 such standards 
                for construction work financed under an agreement made 
                under section 24308(a); 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 by direct 
                loans or loan guarantees.''.
    (f) Time Limit for Approval or Disapproval.--Section 502 of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822) is amended by adding at the end the following:
    ``(i) Time Limit for Approval or Disapproval.--Not later than 180 
days after receiving a complete application for a direct loan or loan 
guarantee under this section, the Secretary shall approve or disapprove 
the application.''.
    (g) Fees and Charges.--Section 503 of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 823) is amended--
            (1) by adding at the end of subsection (k) the following: 
        ``Funds received by the Secretary under the preceding sentence 
        shall be credited to the appropriation from which the expenses 
        of making such appraisals, determinations, and findings were 
        incurred.''; and
            (2) by adding at the end the following new subsection:
    ``(m) Fees and Charges.--Except as provided in this title, the 
Secretary may not assess any fees, including user fees, or charges in 
connection with a direct loan or loan guarantee provided under section 
502.''.
    (h) Substantive Criteria and Standards.--Not later than 30 days 
after the date of the enactment of this Act, the Secretary of 
Transportation shall publish in the Federal Register and post on the 
Department of Transportation website the substantive criteria and 
standards used by the Secretary to determine whether to approve or 
disapprove applications submitted under section 502 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822).
    (i) Operators Deemed Rail Carriers; Loans and Loan Guarantees for 
Non-Railroad Entities.--Section 502 of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822), as amended by subsection 
(f), is amended by adding at the end the following:
    ``(j) Operators Deemed Rail Carriers.--Any entity providing 
railroad transportation (within the meaning of section 20102) that 
begins operations after the date of enactment of the Arrive 21 Act and 
that uses property acquired pursuant to this section shall be 
considered an employer for purposes of the Railroad Retirement Act of 
1974 (45 U.S.C. 231 et seq.) and considered a carrier for purposes of 
the Railway Labor Act (45 U.S.C. 151 et seq.).
    ``(k) Loan and Loan Guarantees for Non-Railroad Entities.--
Notwithstanding any other provision of law, entities other than rail 
companies shall be eligible for loans and loan guarantees under this 
section.''.

SEC. 208. REPAYMENT OF LOAN TO NATIONAL RAILROAD PASSENGER CORPORATION.

    The Secretary of Transportation may not collect any payments of 
principal or interest for the direct loan made to the National Railroad 
Passenger Corporation under section 502 of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 822). There are authorized 
to be appropriated to the Secretary for fiscal year 2004 $100,000,000 
for the purpose of repaying that loan to the Secretary of the Treasury.

                      TITLE III--INTERMODAL POLICY

SEC. 301. 50-YEAR INTERMODAL BLUEPRINT.

    (a) In General.--Section 5503 is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) 50-Year Intermodal Blueprint.--
            ``(1) In general.--The Secretary, in consultation with the 
        advisory board established under section 24910(c) of this 
        title, and other Federal, State, local, and private concerns, 
        shall create a document to be known as the `50-year Intermodal 
        Blueprint', which shall--
                    ``(A) set forth a plan to develop a national 
                intermodal transportation system, including all major 
                modes of transportation;
                    ``(B) describe emerging trends and opportunities to 
                fulfill the future passenger and freight transportation 
                needs of the United States;
                    ``(C) illustrate and estimate the potential results 
                of current policies, possible policy improvements, and 
                directives for achieving the goals set forth in the 
                document;
                    ``(D) forecast the impact of current and future 
                transportation policies on mobility, safety, energy 
                consumption, the environment, technology, international 
                trade, economic activity, and the quality of life in 
                the United States; and
                    ``(E) identify sources of funding to implement the 
                plan described in subparagraph (A).
            ``(2) Biennial progress reports.--The Director, working 
        with the Department of Transportation Inspector General, shall 
        issue a 50-year Intermodal Blueprint progress report every 2 
        years and transmit a copy to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Transportation and Infrastructure. In the report, the Director 
shall--
                    ``(A) disclose the results of an audit of the 
                progress made toward achieving the goals set forth in 
                the 50-year Intermodal Blueprint;
                    ``(B) describe successes, challenges, and obstacles 
                with respect to the 50-year Intermodal Blueprint;
                    ``(C) suggest any changes to the 50-year Intermodal 
                Blueprint that the Director deems necessary or 
                appropriate to reflect changed circumstances or new 
                developments;
                    ``(D) make recommendations on ways to increase 
                intermodal planning and cooperation throughout the 
                national transportation system and within the 
                Department of Transportation; and
                    ``(E) identify successful funding mechanisms and 
                make recommendations for new approaches to funding 
                intermodal transportation facilities and services.
            ``(3) Sexennial revisions.--The Secretary, in consultation 
        with Federal, State, local, and private concerns, shall revise 
        and republish the 50-year Intermodal Blueprint every 6 years.
    ``(f) Impact Measurement Methodology; Impact Review.--The 
Secretary, working with the Bureau of Transportation Statistics, and 
taking into account the work of the rail cooperative research program 
established under section 24910(a) of this title, shall--
            ``(1) formulate a methodology for measuring the impact of 
        intermodal transportation on--
                    ``(A) the environment;
                    ``(B) public health and welfare;
                    ``(C) energy consumption;
                    ``(D) the operation and efficiency of the 
                transportation system;
                    ``(E) congestion; and
                    ``(F) the economy and employment; and
            ``(2) undertake a comprehensive review of the impact of 
        international trade on intermodal transportation and existing 
        intermodal transportation infrastructure.''.
    (b) Retained Funds.--Section 5568 is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) 50-Year Intermodal Blueprint.--There are authorized to be 
appropriated to the Secretary $1,000,000 for each of fiscal years 2004 
through 2009 to carry out section 5503(e).''.

SEC. 302. INTERMODAL TRANSPORTATION POLICY.

    (a) Policy Standards.--Section 302(e) is amended by striking 
``system'' and inserting ``system, including freight and passenger rail 
service and maritime transportation, including such transportation via 
inland waterways,''.
    (b) State Transportation Improvement Programs.--Section 135(f)(4) 
of title 23, United States Code, is amended by inserting ``a State rail 
plan developed under chapter 225 of title 49,'' after ``134,''.

                    TITLE IV--AMTRAK AUTHORIZATIONS

SEC. 401. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM DEFINED.

    (a) In General.--Section 24102 is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (2), (3), and (4), respectively; and
            (3) by inserting after paragraph (4) as so redesignated the 
        following:
            ``(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, 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 Arrive 21 Act; and
                    ``(D) short-distance corridors or routes operated 
                by Amtrak.''.
    (b) Amtrak Routes With State Funding.--
            (1) In general.--Chapter 247 is amended by inserting after 
        section 24701 the following:
``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.''.
            (2) Conforming amendment.--The chapter analysis for chapter 
        247 is amended by inserting after the item relating to section 
        24701 the following:

``24702. Transportation requested by States, authorities, and other 
                            persons''.
    (c) Amtrak To Continue To Provide Non-High-speed Services.--Nothing 
in this Act is intended to preclude Amtrak from restoring, improving, 
or developing non-high-speed intercity passenger rail service.

SEC. 402. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.

    (a) In General.--The Secretary of the Treasury shall work with the 
Secretary of Transportation and Amtrak to restructure Amtrak's 
indebtedness as of the date of enactment of this Act.
    (b) New Debt Prohibition.--Except as approved by the Secretary of 
Transportation, Amtrak may not enter into any obligation secured by 
assets of the Corporation after the date of enactment of this Act. This 
section does not prohibit unsecured lines of credit used by Amtrak or 
any subsidiary for working capital purposes.
    (c) Debt Redemption.--The Secretary of Transportation, in 
consultation with the Secretary of the Treasury, shall enter into 
negotiations with the holders of Amtrak debt, including leases, that is 
outstanding on the date of enactment of this Act for the purpose of 
redeeming or restructuring that debt. The Secretary, in consultation 
with the Secretary of the Treasury, shall secure agreements for 
repayment on such terms as the Secretary deems favorable to the 
interests of the Government. Payments for such redemption may be made 
after October 1, 2004, in either a single payment or a series of 
payments, but in no case shall the repayment period extend beyond 
September 30, 2008.
    (d) Criteria.--In redeeming or restructuring Amtrak's indebtedness, 
the Secretaries and Amtrak--
            (1) shall ensure that the restructuring imposes the least 
        practicable burden on taxpayers; and
            (2) take into consideration repayment costs, the term of 
        any loan or loans, and market conditions.
    (e) Authorization.--There are authorized to be appropriated to the 
Secretary such sums as may be necessary for fiscal years 2005 through 
2008 to restructure or redeem Amtrak's secured debt.
    (f) Amtrak Principal and Interest Payments.--
            (1) Principal on debt service.--Unless the Secretary of 
        Transportation and the Secretary of the Treasury restructure or 
        redeem the debt, there are authorized to be appropriated to the 
        Secretary of Transportation for the use of Amtrak for 
        retirement of principal on loans for capital equipment, or 
        capital leases, not more than the following amounts:
                    (A) For fiscal year 2004, $116,900,000.
                    (B) For fiscal year 2005, $109,500,000.
                    (C) For fiscal year 2006, $114,700,000.
                    (D) For fiscal year 2007, $202,900,000.
                    (E) For fiscal year 2008, $164,300,000.
                    (F) For fiscal year 2009, $155,800,000.
            (2) Interest on debt.--Unless the Secretary of 
        Transportation and the Secretary of the Treasury restructure or 
        redeem the debt, there are authorized to be appropriated to the 
        Secretary of Transportation for the use of Amtrak for the 
        payment of interest on loans for capital equipment, or capital 
        leases, the following amounts:
                    (A) For fiscal year 2004, $162,600,000.
                    (B) For fiscal year 2005, $151,300,000.
                    (C) For fiscal year 2006, $146,300,000.
                    (D) For fiscal year 2007, $137,500,000.
                    (E) For fiscal year 2008, $125,300,000.
                    (F) For fiscal year 2009, $117,100,000.
            (3) Reductions in authorization levels.--Whenever action 
        taken by the Secretary of the Treasury under subsection (c) 
        results in reductions in amounts of principle and interest that 
        Amtrak must service on existing debt, Amtrak shall submit 
        revised recommendations to the Senate Committee on Commerce, 
        Science, and Transportation, the House of Representatives 
        Committee on Transportation and Infrastructure, the Senate 
        Committee on Appropriations, and House of Representatives 
        Committee on Appropriations revised requests for amounts 
        authorized by paragraphs (1) and (2) that reflect the such 
        reductions.

SEC. 403. GENERAL AMTRAK AUTHORIZATIONS.

    (a) Repeal of Self-Sufficiency Requirements.
            (1) Title 49 amendments.--Chapter 241 is amended--
                    (A) by striking the last sentence of section 
                24101(d); and
                    (B) by striking the last sentence of section 
                24104(a).
            (2) Amtrak reform and accountability act amendments.--Title 
        II of the Amtrak Reform and Accountability Act of 1997 (49 
        U.S.C. 24101 nt) is amended by striking sections 204 and 205.
            (3) Common stock redemption date.--Section 415 of the 
        Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304 
        nt) is amended by striking subsection (b).
    (b) Lease Arrangements.--Amtrak may obtain services from the 
Administrator of General Services, and the Administrator may provide 
services to Amtrak, under section 201(b) and 211(b) of the Federal 
Property and Administrative Service Act of 1949 (40 U.S.C. 481(b) and 
491(b)) for each of fiscal years 2004 through 2008.
    (c) Financial Powers.--Section 415(d) of the Amtrak Reform and 
Accountability Act of 1997 by adding at the end the following:
            ``(3) This section does not affect the applicability of 
        section 3729 of title 31, United States Code, to claims made 
        against Amtrak.''.

SEC. 404. EXCESS RAILROAD RETIREMENT.

    Beginning in fiscal year 2004, the Secretary of the Treasury each 
year shall pay to the Railroad Retirement Account an amount equal to 
the amount Amtrak must pay under section 3221 of the Internal Revenue 
Code of 1986 in fiscal years that is more than the amount needed for 
benefits for individuals who retire from Amtrak and for their 
beneficiaries. There are authorized to be appropriated such sums as may 
be necessary in each fiscal year beginning after fiscal year 2004 for 
these payments.

SEC. 405. AUTHORIZATIONS FOR ENVIRONMENTAL COMPLIANCE AND STATION 
              IMPROVEMENTS.

    (a) Environmental Compliance.--There are authorized to be 
appropriated to the Secretary of Transportation for the use of Amtrak 
in order to comply with environmental regulations the following 
amounts:
            (1) For fiscal year 2004, $18,800,000.
            (2) For fiscal year 2005, $21,700,000.
            (3) For fiscal year 2006, $22,300,000.
            (4) For fiscal year 2007, $15,100,000.
            (5) For fiscal year 2008, $15,900,000.
            (6) For fiscal year 2009, $16,000,000.
    (b) Capital Improvements to Stations.--
            (1) In general.--There are authorized to be appropriated to 
        the Secretary of Transportation for the use of Amtrak for 
        capital improvements to stations, including an initial 
        assessment of the full set of accessibility needs across the 
        national rail passenger transportation system and improved 
        accessibility for the elderly and people with disabilities and 
        in Amtrak facilities and stations, the following amounts:
                    (A) For fiscal year 2004, $17,100,000.
                    (B) For fiscal year 2005, $19,800,000.
                    (C) For fiscal year 2006, $19,800,000.
                    (D) For fiscal year 2007, $19,000,000.
                    (E) For fiscal year 2008, $19,000,000.
                    (F) For fiscal year 2009, $19,000,000.
            (2) Study of compliance requirements at existing intercity 
        rail stations.--Amtrak shall evaluate the improvements 
        necessary to make all existing stations it serves readily 
        accessible to and usable by individuals with disabilities, as 
        required by section 242(e)(2) of the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12162(e)(2)). The 
        evaluation shall include the estimated cost of the improvements 
        necessary, the identification of the responsible person (as 
        defined in section 241(5) of that Act (42 U.S.C. 12161(5))), 
        and the earliest practicable date when such improvements can be 
        made. Amtrak shall submit the survey to the Senate Committee on 
        Commerce, Science, and Transportation, the House of 
        Representatives Committee on Transportation and Infrastructure, 
and the National Council on Disability by September 30, 2005, along 
with recommendations for funding the necessary improvements.

SEC. 406. TUNNEL LIFE SAFETY.

    (a) Life Safety Needs.--There are authorized to be appropriated to 
the Secretary of Transportation for the use of Amtrak for fiscal year 
2004:
            (1) $677,000,000 for the 6 New York tunnels built in 1910 
        to provide ventilation, electrical, and fire safety technology 
        upgrades, emergency communication and lighting systems, and 
        emergency access and egress for passengers.
            (2) $57,000,000 for the Baltimore & Potomac tunnel built in 
        1872 to provide adequate drainage, ventilation, communication, 
        lighting, and passenger egress upgrades.
            (3) $40,000,000 for the Washington, D.C., Union Station 
        tunnels built in 1904 under the Supreme Court and House and 
        Senate Office Buildings to improve ventilation, communication, 
        lighting, and passenger egress upgrades.
    (b) Infrastructure Upgrades.--There are authorized to be 
appropriated to the Secretary of Transportation for the use of Amtrak 
$3,000,000 for fiscal year 2004 for the preliminary design of options 
for a new tunnel on a different alignment to augment the capacity of 
the existing Baltimore tunnels.
    (c) Financial Contribution From Other Tunnel Users.--The Secretary 
shall, taking into account the need for the timely completion of all 
life safety portions of the tunnel projects described in subsection 
(a)--
            (1) consider the extent to which rail carriers other than 
        Amtrak use the tunnels;
            (2) consider the feasibility of seeking a financial 
        contribution from those other rail carriers toward the costs of 
        the projects; and
            (3) obtain financial contributions or commitments from such 
        other rail carriers if feasible.
    (d) Availability of Funds.--Amounts appropriated pursuant to this 
section shall remain available until expended.

SEC. 407. AUTHORIZATION FOR CAPITAL AND OPERATING EXPENSES.

    (a) Operating Expenses.--There are authorized to be appropriated to 
the Secretary of Transportation for the use of Amtrak for operating 
costs the following amounts:
            (1) For fiscal year 2004, $581,000,000.
            (2) For fiscal year 2005, $567,000,000.
            (3) For fiscal year 2006, $558,000,000.
            (4) For fiscal year 2007, $529,000,000.
            (5) For fiscal year 2008, $522,000,000.
            (6) For fiscal year 2009, $522,000,000.
    (b) Capital Backlog and Upgrades.--There are authorized to be 
appropriated to the Secretary of Transportation for the use of Amtrak 
for capital expenses, the following amounts:
            (1) For fiscal year 2004, $674,000,000.
            (2) For fiscal year 2005, $765,000,000.
            (3) For fiscal year 2006, $733,000,000.
            (4) For fiscal year 2007, $604,000,000.
            (5) For fiscal year 2008, $560,000,000.
            (6) For fiscal year 2009, $565,000,000.
    (c) Reductions.--Amounts authorized under subsection (b) shall be 
reduced by amounts equal to grants provided by the Rail Infrastructure 
Finance Corporation under title VI of this Act upon receipt to Amtrak 
for capital requirements and expenditures listed in the annual budget 
and 5 Year Financial Plan required under section 413.

SEC. 408. ESTABLISHMENT OF GRANT PROCESS.

    (a) Grant Requests.--Amtrak shall submit grant requests to the 
Secretary of Transportation for funds authorized to be appropriated to 
the Secretary for the use of Amtrak under sections 405, 406, and 407.
    (b) Procedures for Grant Requests.--The Secretary shall establish 
substantive and procedural requirements, including schedules, for grant 
requests under this section not later than 30 days after the date of 
enactment of this Act and shall transmit copies to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure.
    (c) Review and Approval.--
            (1) 30-day process.--The Secretary shall complete the 
        review of a grant request and approve or disapprove the request 
        within 30 days after the date on which Amtrak submits the grant 
        request.
            (2) Incomplete or deficient requests.--If the Secretary 
        disapproves the request or determines that the request is 
        incomplete or deficient, the Secretary shall immediately notify 
        Amtrak of the reason for disapproval or the incomplete items or 
        deficiencies. Within 15 days after receiving notification from 
        the Secretary under the preceding sentence, Amtrak shall submit 
        a modified request for the Secretary's review.
            (3) Revised requests.--Within 15 days after receiving a 
        modified request from Amtrak, the Secretary shall either 
        approve the modified request, or, if the Secretary finds that 
the request is still incomplete or deficient, the Secretary shall 
identify in writing to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure the remaining deficiencies and 
recommend a process for resolving the outstanding portions of the 
request.

SEC. 409. STATE-SUPPORTED ROUTES.

    The Board of Directors of Amtrak, in consultation with the 
Secretary of Transportation and the chief executive officer of each 
State and the District of Columbia, shall develop a formula for funding 
the operating costs of trains operating on routes not in excess of 750 
miles in length that--
            (1) is equitable and fair; and
            (2) ensures, within 5 years after the date of enactment of 
        this Act, equal treatment of all States (and the District of 
        Columbia) and groups of States (including the District of 
        Columbia).

SEC. 410. RE-ESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY COMMITTEE.

    (a) Re-Establishment of Northeast Corridor Safety Committee.--The 
Secretary of Transportation shall re-establish the Northeast Corridor 
Safety Committee authorized by section 24905(b) of title 49, United 
States Code.
    (b) Termination Date.--Section 24905(b)(4) is amended by striking 
``January 1, 1999,'' and inserting ``January 1, 2009,''.

SEC. 411. AMTRAK BOARD OF DIRECTORS.

    (a) In General.--Section 24302 is amended to read as follows:
``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 President of Amtrak.
                    ``(B) The Secretary of Transportation.
                    ``(C) 7 individuals appointed by the President of 
                the United States, by and with the advice and consent 
                of the Senate, with experience and qualifications in or 
                directly related to rail transportation, including 
                representatives of freight and passenger rail 
                transportation, travel, hospitality, cruise line, and 
                passenger air transportation businesses, consumers of 
                passenger rail transportation, and 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 should ensure adequate and balanced representation 
        of the major geographic regions of the United States.
            ``(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 and powers. 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) 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.''.
    (b) Effective Date for Directors' Provision.--The amendment made by 
subsection (a) shall take effect on October 1, 2003. The members of the 
Amtrak Reform Board may continue to serve until 3 directors appointed 
by the President under section 24302(a) of title 49, United States 
Code, as amended by subsection (a), have qualified for office.

SEC. 412. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR AMTRAK 
              OPERATIONS BY INDEPENDENT AUDITOR.

    (a) In General.--The Inspector General of the Department of 
Transportation shall employ an independent financial consultant with 
experience in railroad accounting--
            (1) to assess Amtrak's financial accounting and reporting 
        system and practices;
            (2) to design and assist Amtrak in implementing a modern 
        financial accounting and reporting system, on the basis of the 
        assessment, that will produce accurate and timely financial 
        information in sufficient detail--
                    (A) to enable Amtrak to assign revenues and 
                expenses appropriately to each of its lines of business 
                and to each major activity within each line of business 
                activity, including train operations, equipment 
                maintenance, ticketing, and reservations;
                    (B) to aggregate expenses and revenues related to 
                infrastructure and distinguish them from expenses and 
                revenues related to rail operations; and
                    (C) to provide ticketing and reservation 
                information on a real-time basis.
    (b) Verification of System; Report.--The Inspector General of the 
Department of Transportation shall review the accounting system 
designed and implemented under subsection (a) to ensure that it 
accomplishes the purposes for which it is intended. The Inspector 
General shall report his findings and conclusions, together with any 
recommendations, to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $2,500,000 for fiscal 
year 2004 to carry out subsection (a), such sums to remain available 
until expended.

SEC. 413. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

    (a) Development of 5-Year Financial Plan.--The Amtrak board of 
directors shall submit an annual budget for Amtrak, and a 5-year 
financial plan for the fiscal year to which that budget relates and the 
subsequent 4 years, prepared in accordance with this section, to the 
Secretary of Transportation and the Inspector General of the Department 
of Transportation no later than--
            (1) the first day of each fiscal year beginning after the 
        date of enactment of this Act; or
            (2) the date that is 60 days after the date of enactment of 
        an appropriation Act for the fiscal year, if later.
    (b) Contents of 5-Year Financial Plan.--The 5-year financial plan 
for Amtrak shall include, at a minimum--
            (1) all projected revenues and expenditures for Amtrak, 
        including governmental funding sources;
            (2) projected ridership levels for all Amtrak passenger 
        operations;
            (3) revenue and expenditure forecasts for non-passenger 
        operations;
            (4) capital funding requirements and expenditures necessary 
        to maintain passenger service which will accommodate predicted 
        ridership levels and predicted sources of capital funding;
            (5) operational funding needs, if any, to maintain current 
        and projected levels of passenger service, including state-
        supported routes and predicted funding sources;
            (6) projected capital and operating requirements, 
        ridership, and revenue for any new passenger service operations 
        or service expansions;
            (7) an assessment of the continuing financial stability of 
        Amtrak, as indicated by factors such as: the ability of the 
        federal government to adequately meet capital and operating 
        requirements, Amtrak's access to long-term and short-term 
        capital markets, Amtrak's ability to efficiently manage its 
        workforce, and Amtrak's ability to effectively provide 
        passenger train service.
            (8) lump sum expenditures of $10,000,000 or more and 
        sources of funding.
            (9) estimates of long-term and short-term debt and 
        associated principle and interest payments (both current and 
        anticipated);
            (10) annual cash flow forecasts; and
            (11) a statement describing methods of estimation and 
        significant assumptions.
    (c) Standards To Promote Financial Stability.--In meeting the 
requirements of subsection (b) with respect to a 5-year financial plan, 
Amtrak shall--
            (1) apply sound budgetary practices, including reducing 
        costs and other expenditures, improving productivity, 
        increasing revenues, or combinations of such practices; and
            (2) use the categories specified in the financial 
        accounting and reporting system developed under section 412 
        when preparing its 5-year financial plan.
    (d) Assessment by DOT Inspector General.--
            (1) In general.--The Inspector General of the Department of 
        Transportation shall assess the 5-year financial plans prepared 
        by Amtrak under this section to determine whether they meet the 
        requirements of subsection (b), and may suggest revisions to 
        any components thereof that do not meet those requirements.
            (2) Assessment to be furnished to the congress.--The 
        Inspector General shall furnish to the House of Representatives 
        Committee on Appropriations, the Senate Committee on 
        Appropriations, the House of Representatives Committee on 
        Transportation and Infrastructure, and the Senate Committee on 
        Commerce, Science, and Transportation--
                    (A) an assessment of the annual budget within 90 
                days after receiving it from Amtrak; and
                    (B) an assessment of the remaining 4 years of the 
                5-year financial plan within 180 days after receiving 
                it from Amtrak.

SEC. 414. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR AMTRAK 
              ROUTE AND SERVICE PLANNING DECISIONS.

    (a) Review.--The Secretary of Transportation shall, in consultation 
with the Federal Railroad Administration, execute a contract to obtain 
the services of an independent auditor or consultant to research and 
define Amtrak's past and current methodologies for determining 
intercity passenger rail routes and services.
    (b) Recommendations.--The independent auditor or consultant shall 
recommend objective methodologies for determining such 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.
    (c) Submittal to Congress.--The Secretary shall submit 
recommendations received under subsection (b) to Amtrak, the House of 
Representatives Committee on Transportation and Infrastructure, and the 
Senate Committee on Commerce, Science, and Transportation
    (d) Authorization of Appropriations.--There are authorized to be 
made available to the Secretary of Transportation, out of any amounts 
authorized by this Act to be appropriated for the benefit of Amtrak and 
not otherwise obligated or expended, such sums as may be necessary to 
carry out this section.

SEC. 415. METRICS AND STANDARDS.

    The Administrator of the Federal Railroad Administration shall, in 
consultation with Amtrak and host railroads, develop new or improve 
existing metrics and minimum standards for measuring the service 
quality of intercity train operations, including on-time performance, 
on-board services, stations, facilities, equipment, and other services.

SEC. 416. ON-TIME PERFORMANCE.

    Section 24308 is amended by adding at the end the following:
    ``(f) On-Time Performance and Other Standards.--If the on-time 
performance of any intercity passenger train averages less than 80 
percent for any consecutive 6-month period, or the service quality of 
intercity train operations for which minimum standards are established 
under section 415 of the Arrive 21 Act fails to meet those standards, 
Amtrak may petition the Surface Transportation Board to 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 by a regional authority providing commuter service, if 
any. In carrying out such an investigation, the Surface Transportation 
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.''.

            TITLE V--RAIL INFRASTRUCTURE FINANCE CORPORATION

SEC. 501. ESTABLISHMENT OF CORPORATION.

    There is established a nonprofit corporation, to be known as the 
``Rail Infrastructure Finance Corporation''. The Rail Infrastructure 
Finance Corporation is not an agency or establishment of the United 
States Government. The Corporation shall be subject to the provisions 
of this title and title VI, and, to the extent consistent with this 
section, to the laws of the State of Delaware applicable to 
corporations not for profit.

SEC. 502. BOARD OF DIRECTORS.

    (a) Appointment.--The Rail Infrastructure Finance Corporation shall 
have a Board of Directors consisting of 9 members appointed by the 
President, by and with the advice and consent of the Senate. The 
President shall submit all nominations for the initial Board not less 
than 180 days after the date of enactment of this Act. Not more than 5 
members of the Board may be members of the same political party.
    (b) Membership Qualifications.--
            (1) In general.--The 9 members of the Board shall be 
        appointed from among citizens of the United States (not regular 
        full-time employees of the United States) who are eminent in 
        the fields of rail transportation, rail financing, and 
        intermodal transportation planning, and the financing and 
        management of large-scale, long-term public-private cooperative 
        projects.
            (2) Representation of specific interests.--Of the 9 members 
        of the Board, 8 of the members shall be selected as follows:
                    (A) 1 member from among individuals who represent 
                the interests of freight rail transportation.
                    (B) 1 member from among individuals who represent 
                the interests of intermodal transportation.
                    (C) 1 member from among individuals who represent 
                the interests of passenger rail transportation.
                    (D) 1 member from among individuals who represent 
                the interests of the States.
                    (E) 1 member from among individuals who represent 
                the interests of intercity passenger rail users.
                    (F) 1 member from among individuals who represent 
                the interests of organized rail labor.
                    (G) 2 members from among persons who are involved 
                in finance.
    (c) Incorporation.--The members initially appointed to the Board of 
Directors shall serve as incorporators and, upon the establishment of a 
quorum, shall take whatever actions are necessary to establish the 
Corporation under the laws of Delaware.
    (d) Terms of Office.--Members of the Board shall be appointed for 
terms of 6 years. No member of the Board shall be eligible to serve in 
excess of 2 consecutive full terms.
    (e) Vacancies.--A member of the Board appointed to fill a vacancy 
occurring prior to the expiration of the term for which the member's 
predecessor was appointed shall be appointed for the remainder of such 
term. Upon the expiration of a member's term, the member shall continue 
to serve until a successor is appointed.
    (f) Attendance Required.--Members of the Board shall attend not 
less than 50 percent of all duly convened meetings of the Board in any 
calendar year. A member who fails to meet the requirement of the 
preceding sentence shall forfeit membership and the President shall 
appoint a new member to fill the resulting vacancy not later than 90 
days after such vacancy is determined by the Chairman of the Board.
    (g) Election of Chairman and Vice Chairman.--Members of the Board 
shall annually elect 1 of their members to be Chairman and elect 1 or 
more of their members as a Vice Chairman or Vice Chairmen.
    (h) Compensation.--The members of the Board shall not, by reason of 
such membership, be considered to be officers or employees of the 
United States. They shall, while attending meetings of the Board or 
while engaged in duties related to such meetings or other activities of 
the Board pursuant to this Act, be entitled to receive compensation at 
the rate of $300 per day, including traveltime. No Board member shall 
receive compensation of more than $10,000 in any fiscal year. While 
away from their homes or regular places of business, Board members 
shall be allowed travel and actual, reasonable, and necessary expenses.
    (i) Meetings Open to Public.--All meetings of the Board of 
Directors of the Corporation, including any committee of the Board, 
shall be open to the public under such terms, conditions, and 
exceptions as the Board may establish.
    (j) Quorum and Proceedings.--Five members of the Board shall 
constitute a quorum for the Board to conduct business. All decisions of 
the Board shall be entered upon the records of the Board.

SEC. 503. OFFICERS AND EMPLOYEES.

    (a) In General.--The Rail Infrastructure Finance Corporation shall 
have a President, and such other officers as may be named and appointed 
by the Board for terms and at rates of compensation fixed by the Board. 
No individual other than a citizen of the United States may be an 
officer of the Corporation. No officer of the Corporation may receive 
any salary or other compensation (except for compensation for services 
on boards of directors of other organizations that do not receive funds 
from the Corporation, on committees of such boards, and in similar 
activities for such organizations) from any sources other than the 
Corporation for services rendered during the period of his or her 
employment by the Corporation. Service by any officer on boards of 
directors of other organizations, on committees of such boards, and in 
similar activities for such organizations shall be subject to annual 
advance approval by the Board and subject to the provisions of the 
Corporation's Statement of Ethical Conduct. All officers shall serve at 
the pleasure of the Board. An officer of the corporation shall not be 
considered to be an officer or employee of the United States by virtue 
of such office.
    (b) Nonpartisan Nature of Appointments.--No political test or 
qualification shall be used in selecting, appointing, promoting, or 
taking other personnel actions with respect to officers, agents, or 
employees of the Corporation.

SEC. 504. NONPROFIT AND NONPOLITICAL NATURE OF THE CORPORATION.

    (a) Stock.--The Rail Infrastructure Finance Corporation shall have 
no power to issue any shares of stock, or to declare or pay any 
dividends.
    (b) No Private Benefit.--No part of the income or assets of the 
Corporation shall inure to the benefit of any director, officer, 
employee, or any other individual except as salary or reasonable 
compensation for services.
    (c) Political Activity Prohibited.--The Corporation may not 
contribute to or otherwise support any political party or candidate for 
elective public office.
    (d) Conflicts of Interest.--No director, officer, or employee of 
the Corporation shall in any manner, directly or indirectly, 
participate in the deliberation upon or the determination of any 
question affecting his or her personal interests or the interests of 
any corporation, partnership, or organization in which he or she has a 
direct or indirect financial interest. Board members shall recuse 
themselves from Board decisions that directly affect either them or 
entities they represent regarding grants and other financial assistance 
provided to States by the Board.

SEC. 505. PURPOSE AND ACTIVITIES OF CORPORATION.

    (a) Purpose.--The Rail Infrastructure Finance Corporation shall, 
through the issuance of qualified rail infrastructure bonds in 
accordance with section 54 of the Internal Revenue Code of 1986 and 
this title, provide financial support for rail transportation capital 
projects under title VI of this Act.
    (b) Bond Issuance Authority.--
            (1) In general.--In order to carry out its purposes, the 
        Corporation is authorized to issue qualified rail 
        infrastructure bonds (as defined in section 54(e) of the 
        Internal Revenue Code of 1986) during the 6-year period 
        beginning on the day after the date of enactment of this Act.
            (2) Limitation.--The total face amount of the bonds 
        outstanding under paragraph (1) at any time may not exceed 
        $30,000,000,000.
            (3) No federal guarantee.--
                    (A) Obligations insured by the corporation.--No 
                obligation that is insured, guaranteed, or otherwise 
                backed by the Corporation shall be deemed to be an 
                obligation that is guaranteed by the full faith and 
                credit of the United States.
                    (B) Special rule.--This paragraph shall not affect 
                the determination of whether such obligation is 
                guaranteed for purposes of Federal income taxes.
                    (C) Securities offered by the corporation.--No debt 
                or equity securities of the Corporation shall be deemed 
                to be guaranteed by the full faith and credit of the 
                United States.
            (4) Authority.--To carry out the foregoing purposes and 
        engage in the foregoing activities, the Corporation shall have 
        the usual powers conferred upon a nonprofit corporation under 
        the laws of the State of Delaware.
    (c) Federal Assistance.--The Corporation shall be eligible to 
receive discretionary grants, contracts, gifts, contributions, or 
technical assistance from any department or agency of the Federal 
Government, but only to the extent permitted by law and to the extent 
necessary to carry out the purpose set forth in subsection (a) and the 
activities described in subsection (b).
    (d) Status Under Federal Securities Laws.--
            (1) In general.--For purposes of the Securities Act of 
        1933, the Securities Exchange Act of 1934 or the Trust 
        Indenture Act of 1939, the Rail Infrastructure Finance 
        Corporation shall not be considered an agency or 
        instrumentality of the United States or any State or Territory 
        thereof nor an entity described in section 3(a)(4) of the 
        Securities Act of 1933 and shall not be entitled to rely on any 
        exemption from those laws. Any security offered or sold or 
        guaranteed by the Rail Infrastructure Finance Corporation may 
        not be offered or sold in reliance on any exemption from 
        registration under the Securities Act of 1933, unless exempted 
        by rule or regulation of the Securities and Exchange 
        Commission. For so long as the Rail Infrastructure Finance 
        Corporation has any securities outstanding, it may not rely on 
        the rules promulgated under the Securities Exchange Act of 1934 
        to voluntarily terminate or suspend the Rail Infrastructure 
        Finance Corporation's obligations to comply with the reporting 
        requirements of the Securities Exchange Act of 1934 with regard 
        to any of its outstanding securities and the provisions of 
        section 15(d)(6) of the Securities Exchange Act of 1934 shall 
        not apply to the Rail Infrastructure Finance Corporation, 
        unless exempted by rule, regulation, or order of the Securities 
        and Exchange Commission.
            (2) Relationship to federal securities laws.--Except as 
        provided in paragraph (1), no provision of this section or any 
        regulation issued by any other Federal agency shall supercede 
        or otherwise affect the application of the Federal securities 
        laws (as such term is defined in section 2(a)(47) of the 
        Securities Exchange Act of 1934) or the rules, regulations, or 
        orders of the Securities and Exchange Commission promulgated 
        under those laws.

SEC. 506. REPORT TO CONGRESS.

    (a) In General.--On or before May 15 of each year, the Rail 
Infrastructure Finance Corporation shall submit an annual report for 
the fiscal year ending on September 30 of the preceding year to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure. The 
report shall include a comprehensive and detailed report of the 
Corporation's operations, activities, financial condition, and 
accomplishments under this title and such recommendations as the 
Corporation deems appropriate.
    (b) Availability for Testimony.--The officers and directors of the 
Corporation shall be available to testify before those committees with 
respect to such report or any other matter which such committees may 
determine.

SEC. 507. ADMINISTRATIVE MATTERS.

    (a) Budget.--The Rail Infrastructure Finance Corporation shall 
establish an annual budget for the Corporation, including the Rail 
Infrastructure Investment Account under subsection (c).
    (b) Implementation Plan.--
            (1) Requirement for plan.--The Corporation shall conduct a 
        study and prepare a plan on how the Corporation can best 
        achieve the purposes and fulfill the requirements of this 
        title.
            (2) Consultation.--In preparing the plan, the Corporation 
        may consult with representatives of State and local 
        governments, railroads, and other similar entities.
            (3) Other requirements.--The plan, which shall be based on 
        the conclusions resulting from the study conducted under 
        paragraph (1), shall be submitted by the Corporation to the 
        Senate Committee on Commerce, Science, and Transportation and 
        the House of Representatives Committee on Transportation and 
        Infrastructure not later than 180 days after the date on which 
        the Corporation is incorporated. Unless directed otherwise by 
        law, the Corporation shall implement the plan during the first 
        fiscal year beginning after the fiscal year in which the plan 
        is submitted to Congress.
    (c) Rail Infrastructure Investment Account.--
            (1) Establishment.--The Board of Directors for the 
        Corporation shall establish an account to be known as the Rail 
        Infrastructure Investment Account.
            (2) Deposit of bond proceeds.--The Corporation shall 
        deposit the proceeds of sales of any bonds issued under section 
        54 of the Internal Revenue Code of 1986 into the Account.
            (3) Deposit of non-federal contributions.--The Board shall 
        deposit all non-Federal contributions received into the 
        Account.
            (4) Disbursements.--The Board may make available and may 
        disburse, during the first fiscal year beginning after the date 
        of enactment of this Act and during each succeeding fiscal year 
        thereafter, such funds as may be available for obligation and 
        expenditure from the Account.
            (5) Use of account funds.--Funds in the Account--
                    (A) shall be used by the Corporation for investment 
                purposes through the trust established under section 
                508 to generate an amount sufficient--
                            (i) to repay the principal of the bonds at 
                        their maturity; and
                            (ii) to pay the administrative costs of the 
                        Corporation and the Rail Infrastructure Finance 
                        Trust under section 508; and
                    (B) shall, to the extent of the net spendable 
                proceeds in the account, be held in the Rail 
                Infrastructure Finance Trust established under section 
                508 and be available for distribution as grants of 
                financial assistance under title VI of this Act.
            (6) Net spendable proceeds defined.--In this subsection, 
        the term ``net spendable proceeds'', with respect to the Rail 
        Infrastructure Investment Account, means the amount, determined 
        by the Board of Trustees of the Rail Infrastructure Finance 
        Trust, equal to the excess of--
                    (A) the total amount in such Account, over
                    (B) the amount in such Account that is needed for 
                uses under paragraph (5)(A).
    (d) Records and Audit.--
            (1) In general.--The account of the Corporation shall be 
        audited annually in accordance with generally accepted auditing 
        standards by independent certified public accountants or 
        independent licensed public accountants certified or licensed 
        by a regulatory authority of a State or other political 
        subdivision of the United States. The audits shall be conducted 
        at the place or places where the accounts of the Corporation 
        are normally kept. All books, accounts, financial records, 
        reports, files, and all other papers, things, or property 
        belonging to or in use by the Corporation and necessary to 
        facilitate the audits shall be made available to the person or 
        persons conducting the audits; and full facilities for 
        verifying transactions with the balances or securities held by 
        depositories, fiscal agents and custodians shall be afforded to 
        such person or persons.
            (2) Audit report.--The report of each such independent 
        audit shall be included in the annual report required by 
        section 506. The audit report shall set forth the scope of the 
        audit and include such statements as are necessary to present 
        fairly the Corporation's assets and liabilities, surplus or 
        deficit, with an analysis of the changes therein during the 
        year, supplemented in reasonable detail by a statement of the 
        Corporation's income and expenses during the year, and a 
        statement of the sources and application of funds, together 
        with the independent auditor's opinion of those statements.
            (3) Accounting principles.--Not later than 1 year after the 
        date of the enactment of this Act, the Corporation shall 
        develop accounting principles which shall be used uniformly by 
        all entities receiving funds under this Act, taking into 
        account organizational differences among various categories of 
        such entities. Such principles shall be designed to account 
        fully for all funds received and expended for purposes of this 
        Act by such entities.
            (4) Requirements for recipients.--Each entity receiving 
        funds under this Act shall--
                    (A) keep its books, records, and accounts in such 
                form as may be required by the Corporation;
                    (B) either--
                            (i) undergo an annual audit by independent 
                        certified public accountants or independent 
                        licensed public accountants certified or 
                        licensed by a regulatory authority of a State, 
                        which audit shall be in accordance with 
                        auditing standards developed by the 
                        Corporation; or
                            (ii) submit a financial statement in lieu 
                        of the audit required by subparagraph (A) if 
                        the Corporation determines that the cost burden 
of such audit on such entity is excessive in light of the financial 
condition of such entity; and
                    (C) furnish biennially to the Corporation a copy of 
                the audit report required pursuant to the subparagraph 
                (B), as well as such other information regarding 
                finances (including an annual financial report) as the 
                Corporation may require.
            (5) Additional recordkeeping.--Any recipient of assistance 
        by grant or contract under this section, other than a fixed 
        price contract awarded pursuant to competitive bidding 
        procedures, shall keep such records as may be reasonably 
        necessary to disclose fully the amount and the disposition by 
        such recipient of such assistance, that total cost of the 
        project or undertaking in connection with which such assistance 
        is given or used, and the amount and nature of that portion of 
        the cost of the projects or undertaking supplied by other 
        sources, and such other records as will facilitate an effective 
        audit.
            (6) Access to records.--The Corporation or any of its duly 
        authorized representatives shall have access to any books, 
        documents, papers, and records of any recipient of assistance 
        for the purpose of auditing and examining all funds received 
        from the Corporation.
            (7) Public inspection.--The Corporation shall maintain the 
        information described in paragraphs (4), (5), and (6) at its 
        offices for public inspection and copying for at least 3 years, 
        according to such reasonable guidelines as the Corporation may 
        issue. This public file shall be updated regularly.

SEC. 508. RAIL INFRASTRUCTURE FINANCE TRUST.

    (a) Establishment.--The Board of Directors of the Rail 
Infrastructure Finance Corporation shall establish the Rail 
Infrastructure Finance Trust (hereafter in this section referred to as 
the ``Trust'') as a trust domiciled in the State of Delaware before the 
issuance of bonds under section 505(b). The Trust shall, to the extent 
not inconsistent with this Act, be subject to the laws of the State of 
Delaware that are applicable to trusts. The Trust shall manage and 
invest the assets of the Rail Infrastructure Account described in 
section 507(c) that are transferred to it by the Board in the manner 
set forth in this section.
    (b) Not a Federal Agency or Instrumentality.--The Trust is not a 
department, agency, or other instrumentality of the Government of the 
United States and shall not be subject to title 31, United States Code.
    (c) Board of Trustees.--
            (1) Establishment.--The Trust shall have a Board of 
        Trustees.
            (2) Composition.--
                    (A) Appointment.--The Board of Trustees shall 
                consist of 5 members (hereafter in this title referred 
                to as ``Trustees'') 3 of whom shall be appointed by a 
                unanimous vote of the Board of Directors of the Rail 
                Infrastructure Finance Corporation.
                    (B) Representation of particular interests.--The 3 
                members of the Board of Trustees shall be selected as 
                follows:
                            (i) 1 from among persons who represent the 
                        interests of the States.
                            (ii) 1 from among persons who represent the 
                        interests of freight and passenger railroads.
                            (iii) 1 from among persons who represent 
                        the interests of holders of qualified rail 
                        infrastructure bonds issued by the Rail 
                        Infrastructure Corporation.
                    (C) The 2 Trustees not appointed under subparagraph 
                (A) shall be elected directly by holders of qualified 
                rail infrastructure bonds issued by the Rail 
                Infrastructure Corporation through procedures 
                established by the Board of Trustees to represent the 
                interests of such bond holders. The election shall be 
                held, and both members elected under this subparagraph 
                shall take office as Trustees, within 1 year after the 
                initial issuance of bonds under section 505(b).
            (3) Members not united states officials.--The members of 
        the Board of Trustees may not be considered officers or 
        employees of the Government of the United States.
            (4) Qualifications.--The Trustees shall be appointed only 
        from among persons who have experience and expertise in the 
        management of financial investments. No member of the Board of 
        Directors of the Rail Infrastructure Finance Corporation is 
        eligible to be a Trustee.
            (5) Terms.--Each member of the Board of Trustees shall be 
        appointed for a 3-year term. Any member whose term has expired 
        may serve until such member's successor has taken office, or 
        until the end of the calendar year in which such member's term 
        has expired, whichever is earlier. A vacancy in the Board of 
        Trustees shall not affect the powers of the Board of Trustees 
        and shall be filled in the same manner as the member whose 
        departure caused the vacancy. Any member appointed to fill a 
        vacancy occurring prior to the expiration of the term for which 
        the member's predecessor was appointed shall be appointed for 
        the remainder of such term.
    (d) Powers.--The Board of Trustees shall--
            (1) establish investment policies, including guidelines, 
        and retain independent advisers to assist in the formulation 
        and adoption of the investment guidelines;
            (2) retain independent investment managers to invest the 
        assets of the Trust in a manner consistent with such investment 
        guidelines;
            (3) invest assets in the Trust, pursuant to the policies 
        adopted in paragraph (1);
            (4) pay administrative expenses of the Trust from the 
        assets in the Trust;
            (5) transfer money to the Rail Infrastructure Investment 
        Account, upon request of the Board of Directors of the Rail 
        Infrastructure Finance Corporation, for bond repayment and 
        administrative expenses;
            (6) develop a formula, subject to approval by the Board of 
        Directors before the issuance of bonds under section 505(b), 
        for determining when there is a sufficient trust income stream 
        for purposes of paragraph (7); and
            (7) transfer net spendable proceeds to the Board of 
        Directors to be used for grants under title VI of this Act 
        after determining that adequate trust funds are available, or 
        that there is a trust income stream sufficient, to allow the 
        Board of Trustees to meet its obligations under paragraphs (4) 
        and (5).
    (e) Reporting Requirements and Fiduciary Standards.--The following 
reporting requirements and fiduciary standards shall apply with respect 
to the Trust:
            (1) Duties of the board of trustees.--The Trust and each 
        member of the Board of Trustees shall discharge the duties of 
        the Trust and the duties of the Trustee, respectively 
        (including the voting of proxies), with respect to the assets 
        of the Trust solely in the interests of the Rail Infrastructure 
        Finance Corporation and the programs funded under this title--
                    (A) for the exclusive purposes of--
                            (i) providing sufficient funds to repay 
                        qualified rail infrastructure bonds issued by 
                        the Rail Infrastructure Finance Corporation,
                            (ii) funding the administrative costs of 
                        the Rail Infrastructure Finance Corporation;
                            (iii) defraying reasonable expenses of 
                        administering the Trust; and
                            (iv) providing grants for rail capital 
                        projects under title VI of this Act; and
                    (B) with the care, skill, prudence, and diligence 
                under the circumstances then prevailing that a prudent 
                person acting in a like capacity and familiar with such 
                matters would use in the conduct of an enterprise of a 
                like character and with like aims;
                    (C) by diversifying investments so as to minimize 
                the risk of large losses and to avoid disproportionate 
                influence over a particular industry or firm, unless 
                under the circumstances it is clearly prudent not to do 
                so; and
                    (D) in accordance with Trust governing documents 
                and instruments insofar as such documents and 
                instruments are consistent with this title.
            (2) Prohibitions with respect to members of the board of 
        trustees.--A member of the Board of Trustees may not--
                    (A) deal with the assets of the Trust in the 
                Trustee's own interest or for the Trustee's own 
                account;
                    (B) act in an individual or in any other capacity, 
                in any transaction involving the assets of the Trust on 
                behalf of a party (or represent a party) whose 
                interests are adverse to the interests of the Trust and 
                the Rail Infrastructure Finance Corporation; or
                    (C) receive any consideration for the Trustee's own 
                personal account from any party dealing with the assets 
                of the Trust.
            (3) Exculpatory provisions and insurance.--Any provision in 
        an agreement or instrument that purports to relieve a Trustee 
        from responsibility or liability for any responsibility, 
        obligation, or duty under this Act shall be void. Nothing in 
        this paragraph shall be construed to preclude--
                    (A) the Trust from purchasing insurance for its 
                Trustees or for itself to cover liability or losses 
                occurring by reason of the act or omission of a 
                Trustee, if such insurance permits recourse by the 
                insurer against the Trustee in the case of a breach of 
                a fiduciary obligation by such Trustee;
                    (B) a Trustee from purchasing insurance to cover 
                liability under this section from and for his own 
                account; or
                    (C) an employer or an employee organization from 
                purchasing insurance to cover potential liability of 1 
                or more Trustees with respect to their fiduciary 
                responsibilities, obligations, and duties under this 
                section.
            (4) Trustees, bonds.--
                    (A) Requirement.--Each Trustee and every person who 
                handles funds or other property of the Trust (hereafter 
                in this section referred to as ``Trust official'') 
                shall be bonded. The bond shall provide protection to 
                the Trust against loss by reason of acts of fraud or 
                dishonesty on the part of any Trust official, directly 
                or through the connivance of others.
                    (B) Amount.--The amount of a bond for a Trustee 
                under this paragraph shall be fixed at the beginning of 
                each fiscal year of the Trust by the Board of Directors 
                of the Rail Infrastructure Finance Corporation. The 
                amount may not be less than 10 percent of the amount of 
the funds administered by the Trust.
                    (C) Unlawful conduct.--It shall be unlawful for--
                            (i) any Trust official to receive, handle, 
                        disburse, or otherwise exercise custody or 
                        control of any of the funds or other property 
                        of the Trust without being bonded as required 
                        by this subsection;
                            (ii) any Trust official, or any other 
                        person having authority to direct the 
                        performance of such functions, to permit such 
                        functions, or any of them, to be performed by 
                        any Trust official, with respect to whom the 
                        requirements of this subsection have not been 
                        met; and
                            (iii) any person to procure any bond 
                        required by this subsection from any surety or 
                        other company or through any agent or broker in 
                        whose business operations such person has any 
                        control or significant financial interest, 
                        direct or indirect.
    (f) Administrative Matters.--
            (1) Authority.--The Board of Trustees shall have the 
        authority to make rules to govern its operations, employ 
        professional staff, and contract with outside advisors 
        (including the Rail Infrastructure Finance Corporation) to 
        provide legal, accounting, investment advisory, or other 
        services necessary for the proper administration of this 
        section. In the case of a contract for investment advisory 
        services, compensation for such services may be provided on a 
        fixed fee basis or on such other terms and conditions as are 
        customary for such services.
            (2) Quorum and proceedings.--Three members of the Board of 
        Trustees shall constitute a quorum for the Board to conduct 
        business. Investment guidelines shall be adopted by a unanimous 
        vote of the entire Board of Trustees. All other decisions of 
        the Board of Trustees shall be decided by a majority vote of 
        the quorum present. All decisions of the Board of Trustees 
        shall be entered upon the records of the Board of Trustees.
            (3) Compensation of trustees and employees.--The salaries 
        of the Trustees are subject to the limitations in section 
        502(h).
            (4) Compensation arrangements.--The Board of Trustees may 
        compensate investment advisory service providers and employees 
        of the Trust on a fixed contract fee basis or on such other 
        terms and conditions as are customary for such services.
            (5) Funding.--The expenses of the Trust and the Board of 
        Trustees that are incurred under this section shall be paid 
        from the Trust.
    (g) Audit and Report.--
            (1) Requirement for annual audit.--The Trust shall annually 
        engage an independent qualified public accountant to audit the 
        financial statements of the Trust.
            (2) Annual management report.--The Trust shall submit an 
        annual management report to be included in the annual report of 
        the Corporation required under section 506. The management 
        report under this paragraph shall include the following 
        matters:
                    (A) A statement of financial position.
                    (B) A statement of operations.
                    (C) A statement of cash flows.
                    (D) A statement on internal accounting and 
                administrative control systems.
                    (E) The report resulting from an audit of the 
                financial statements of the Trust conducted under 
                paragraph (1).
                    (F) Any other comments and information necessary to 
                inform Congress about the operations and financial 
                condition of the Trust.
    (h) Enforcement.--The Rail Infrastructure Finance Corporation may 
commence a civil action--
            (1) to enjoin any act or practice by the Trust, its Board 
        of Trustees, or its employees or agents that violates any 
        provision of this title; or
            (2) to obtain other appropriate relief to redress such 
        violations, or to enforce any provisions of this title.
    (i) Exemption From Tax for Rail Infrastructure Finance Trust.--
Subsection (c) of section 501 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph:
            ``(29) The Rail Infrastructure Finance Trust established 
        under section 408 of the Arrive 21 Act.''.

               TITLE VI--RAIL DEVELOPMENT GRANT PROGRAMS

SEC. 601. INTERCITY PASSENGER RAIL DEVELOPMENT GRANT PROGRAM.

    (a) Grants to States.--The Board of Directors of the Rail 
Infrastructure Finance Corporation may, by grant, provide financial 
assistance to a State, a group of States, or the National Railroad 
Passenger Corporation for, or in connection with, 1 or more intercity 
passenger rail capital projects that--
            (1) in accordance with section 22504(a)(5) of title 49, 
        United States Code, are listed in a State rail plan approved 
        for such State under chapter 225 of such title; and
            (2) as determined by the Board, would primarily benefit 
        intercity passenger rail infrastructure or services or the 
        development of passenger rail corridors (including high-speed 
        rail corridors designated by the Secretary under section 104(d) 
        of title 23, United States Code) and provide significant public 
        benefits.
    (b) Purposes Eligible for Grant Funding.--The purposes for which 
grants may be made under subsection (a) for, or in connection with, an 
intercity passenger rail capital project described in that subsection 
are as follows:
            (1) Planning, including activities described in section 
        26101(b)(1) of title 49, United States Code, and environmental 
        impact studies.
            (2) New rail line development, including right of way and 
        infrastructure acquisition and construction of track and 
        facilities.
            (3) Track upgrades and restoration.
            (4) Highway-rail grade crossing improvement or elimination.
            (5) Track, infrastructure, and facility relocation.
            (6) Acquisition, financing, or refinancing of locomotives 
        and rolling stock.
            (7) Intermodal and station facilities.
            (8) Tunnel and bridge repair or replacement.
            (9) Communications and signaling improvements.
            (10) Environmental impact mitigation.
            (11) Security improvements.
            (12) Supplemental funding for direct loans or loan 
        guarantees made under title V of the Railroad Revitalization 
        and Regulatory Reform Act of 1976 (45 U.S.C. 821 et seq.).
            (13) Payment of credit risk premiums, to lower rates of 
        interest, or to provide for a holiday on principal payments on 
        loan or financing directly associated with rail capital 
        projects described in paragraphs (1) through (11).
    (c) Project Selection Criteria.--The Board, in selecting the 
recipients of financial assistance to be provided under subsection (a), 
shall--
            (1) require that each proposed project meet all safety 
        requirements that are applicable to the project under law, and 
        give a preference to any project determined by the Board as 
        having provided for particularly high levels of safety;
            (2) give preference to projects with high levels of 
        estimated ridership, increased ontime performance, reduced trip 
        time, additional service frequency, or other significant 
        service enhancements as measured against minimum standards 
        developed under section 415 of this Act;
            (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 a general balance across geographic regions of 
        the United States in providing such assistance and avoid a 
        concentration of a disproportionate amount of such financial 
        assistance in a single project, State, or region of the 
        country;
            (5) encourage projects that also improve freight or 
        commuter rail operations;
            (6) 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;
                    (B) State rail plans under chapter 225 of title 49, 
                United States Code; and
                    (C) the national rail plan (if it is available); 
                and
            (7) 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 have significant environmental 
                benefits.
                    (C) 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.
                    (D) Projects with positive economic and employment 
                impacts.
                    (E) Projects that encourage the use of positive 
                train control technologies.
                    (F) 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.
                    (G) Projects that involve donated property 
                interests or services.
                    (H) Projects that enhance national security.
    (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 an 
approved State rail plan's ranked list of priority freight and 
passenger rail capital projects developed under section 22504(a)(5) of 
title 49, United States Code, or may submit an independent application 
for a grant for any eligible project under this section. Any such 
independent grant request shall be subject to the same selection 
criteria as apply under subsection (b) to projects of States, except 
the criteria set forth in subsection (a)(1) and subparagraphs (A) and 
(B) of subsection (b)(12).
    (e) Limitations.--
            (1) 2-year availability.--If any amount provided as a grant 
        to a State or the National Railroad Passenger Corporation under 
        this section is not obligated or expended for the purposes 
        described in subsection (a) or (b) within 2 years after the 
        date on which the State or Corporation received the grant, such 
        sums shall be returned to the Board for other intercity 
        passenger rail development projects under this section at the 
        discretion of the Board.
            (2) Single project amount.--In awarding grants to States or 
        the National Railroad Passenger Corporation for eligible 
        projects under this section, the Board shall limit the amount 
        of any grant made for a particular project in a fiscal year to 
        not more than 30 percent of the total amount of the funds 
        available for grants under this section for that fiscal year.
            (3) Amtrak.--The total amount of grants made under this 
        section solely to the National Railroad Passenger Corporation 
        in a fiscal year may not exceed 50 percent of the total amount 
        available under this section for all grants in that fiscal 
        year.
    (f) Funding.--Amounts reserved for grants for a fiscal year under 
section 606(b)(1) shall be available for grants under this section.
    (g) Public Benefit.--The term ``public benefit'' 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.

SEC. 602. FREIGHT RAIL INFRASTRUCTURE DEVELOPMENT GRANT PROGRAM.

    (a) Grants to States.--The Board of Directors of the Rail 
Infrastructure Finance Corporation shall, by grant, provide financial 
assistance to a State or group of States--
            (1) for, or in connection with, 1 or more freight rail 
        capital projects that--
                    (A) in accordance with section 22504(a)(5) of title 
                49, United States Code, are listed in a State rail plan 
                approved for such State under chapter 225 of such 
                title; and
                    (B) as determined by the Board, would primarily 
                benefit freight rail transportation infrastructure or 
                services, but also would provide significant public 
                benefits; or
            (2) for the payment of staff expenses associated with the 
        management of State rail programs and the development and 
        updating of State rail plans under chapter 225 of title 49, 
        United States Code.
    (b) Purposes Eligible for Grant Funding.--The purposes for which 
grants may be made under subsection (a)(1) for, or in connection with, 
a freight rail capital project are as follows:
            (1) Planning, including activities described in section 
        26101(b)(1) of title 49, United States Code, and environmental 
        impact studies.
            (2) New rail line development, including infrastructure 
        acquisition and construction of track and facilities.
            (3) Track upgrades and restoration.
            (4) Highway-rail grade crossing improvement or elimination.
            (5) Track, infrastructure, and facility relocation.
            (6) Intermodal facilities.
            (7) Tunnel and bridge repair or replacement.
            (8) Communications and signaling improvements.
            (9) Environmental impact mitigation.
            (10) Security improvements.
            (11) Supplemental funding for direct loans or loan 
        guarantees made under title V of the Railroad Revitalization 
        and Regulatory Reform Act of 1976 (45 U.S.C. 821 et seq.) for 
        projects described in the last sentence of section 502(d) of 
        that Act (45 U.S.C. 822(d)).
            (12) Payment of credit risk premiums, to lower rates of 
        interest, or to provide for a holiday on principal payments on 
        loan or financing directly associated with capital projects 
        described in paragraphs (1) through (9).
    (c) State Grant Funding Formula.--Of the total amount reserved for 
a grant program under section 606(b)(2) for a fiscal year, there shall 
be reserved for each State (to fund grants made to such State under 
this section) the amount determined for such State in accordance with a 
formula prescribed by the Board to weigh equally for each State--
            (1) the number of rail miles in active use in the State;
            (2) the number of rail cars loaded in the State;
            (3) the number of rail cars unloaded in the State; and
            (4) the number of railroad and public road grade crossings 
        in the State.
    (d) Period of Availability for Grants.--
            (1) Three-year reservation.--The amount reserved for grant 
        to a State under section (c) in a fiscal year shall be 
        available for grant to such State in such fiscal year and the 2 
        successive fiscal years.
            (2) Cancellation at end of period.--At the end of the third 
        of the 3 successive fiscal years, the reservation of any part 
        of the amount for a State that has not been awarded in a grant 
        to such State shall be canceled, and the amount of the canceled 
        reservation--
                    (A) shall be merged with the funds reserved for the 
                grant program under section 606(b)(2) for the next 
                fiscal year; and
                    (B) shall be reserved for each State in accordance 
                with the formula provided under this section.
    (e) Two-Year Availability.--If any amount provided as a grant to a 
State under this section is not obligated or expended for the purposes 
described in subsection (a) or (b) within 2 years after the date on 
which the State received the grant, such sums shall be returned to the 
Board for other freight rail capital projects under this section at the 
discretion of the Board.

SEC. 603. HIGH PRIORITY PROJECTS GRANT PROGRAM.

    (a) Grants to States.--The Board of Directors of the Rail 
Infrastructure Finance Corporation may, by grant, provide financial 
assistance to a State, a group of States, or the National Railroad 
Passenger Corporation for intercity passenger rail and freight rail 
infrastructure development projects that are designated as high 
priority projects under section 22505 of title 49, United States Code.
    (b) Purposes.--The purposes for which a grant may be made under 
this section are--
            (1) in the case of an intercity passenger rail corridor 
        development project, the same purposes as are provided under 
        section 601; and
            (2) in the case of a freight rail infrastructure 
        development project, the same purposes as are provided under 
        section 602.
    (c) Preferred Projects.--In selecting the projects to receive 
financial assistance under this section, the Board shall give 
preference to a project that--
            (1) provides for use of positive train control 
        technologies;
            (2) provides for particularly high levels of safety;
            (3) increases intermodal connectivity by providing or 
        improving direct connections between rail facilities and other 
        modes of transportation;
            (4) assists the Board--
                    (A) to achieve a general balance across geographic 
                regions of the United States in the awarding of grants 
                under this section; and
                    (B) to avoid a concentration of a disproportionate 
                amount of such financial assistance in a single 
                project, State, or region of the country;
            (5) has a significant favorable impact on highway, 
        aviation, or maritime capacity, congestion, or safety;
            (6) improves the national intercity passenger rail system 
        through higher levels of estimated ridership, reduced trip 
        time, increased ontime performance, additional service 
        frequency, or other significant service enhancements as 
        measured against minimum standards developed under section 415 
        of this Act;
            (7) has positive economic and employment impacts;
            (8) has significant environmental benefits;
            (9) is--
                    (A) at the stage of preparation that all pre-
                commencement compliance with environmental protection 
                requirements has been completed; and
                    (B) ready to be commenced;
            (10) has received financial commitments and other support 
        from non-Federal entities such as States, local governments, 
        and private entities;
            (11) has commitments of funding from non-Federal Government 
        sources in a total amount that exceeds the minimum amount of 
        the non-Federal contribution required; and
            (12) involves donated property interests or services.
    (d) Amtrak Eligibility.--To receive a grant under this section, the 
National Railroad Passenger Corporation may submit an independent 
application or may enter into a cooperative agreement with 1 or more 
States to carry out 1 or more high priority projects designated under 
section 22506 of title 49, United States Code. Any such independent 
grant request shall be subject to the same conditions as apply under 
this section to projects of States.
    (e) Limitations.--
            (1) Two-year availability.--If any amount provided as a 
        grant to a State or the National Railroad Passenger Corporation 
        under this section is not obligated or expended for the 
        purposes for which the grant is made within 2 years after the 
        date on which the State or the National Railroad Passenger 
        Corporation received the grant, such sums shall be returned to 
        the Board for other high priority projects under this section 
        at the discretion of the Board.
            (2) Single project amount.--In awarding grants to States 
        for eligible projects under this section, the Board shall limit 
        the amount of any grant made for a particular project in a 
        fiscal year to not more than 30 percent of the total amount of 
        the funds available for grants under this section for that 
        fiscal year.
    (f) Funding.--Amounts reserved for grants for a fiscal year under 
section 606(b)(3) shall be available for grants under this section.

SEC. 604. GRANT PROGRAM REQUIREMENTS AND LIMITATIONS.

    (a) Authorized Uses.--The proceeds of a grant made for a project 
under this title may be used to defray the costs of the project or to 
reimburse the recipient for costs of the project paid by the recipient.
    (b) Non-Federal Contribution.--The proceeds of a grant under this 
title may be released upon receipt by the Board of Directors of the 
Rail Infrastructure Finance Corporation of cash payment by a non-
Federal Government source, or 1 or more such sources jointly, in an 
amount not less than the amount equal to 20 percent of the amount of 
the grant disbursed. The cash payment may not be derived, directly or 
indirectly, from Federal funds. Amounts received under this subsection 
shall be credited to the Rail Infrastructure Investment Account 
established under section 507(c).
    (c) Preference Involving Donated Property Interests and Services.--
In selecting projects for grant funding under this title, the Board may 
give preference to projects that involve donated right-of-way, 
property, or in-kind services by a public sector or private sector 
entity. The value of a donation under this subsection may not be 
counted toward satisfaction of the requirement in subsection (b).
    (d) Flexibility.--Notwithstanding any other provision of this 
title, amounts made available under section 506 may be combined and 
used for projects that significantly benefit either freight rail 
service, intercity passenger rail service, or both.
    (e) Suballocation; 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 
                Board.
            (3) Sub-allocation.--A State may allocate funds under this 
        section to any entity described in paragraph (1).
    (f) Special Transportation Circumstances.--In carrying out this 
section, the Board shall allocate an appropriate portion of the amounts 
available under section 601 or 602 to provide appropriate 
transportation-related assistance in any State in which the rail 
transportation system--
            ``(1) is not physically connected to rail systems in the 
        continental United States; and
            ``(2) may not otherwise qualify for assistance under 
        section 601 or 602 due to the constraints imposed on the 
        railway infrastructure in that State due to the unique 
        characteristics of the geography of that State or other 
        relevant considerations, as determined by the Board.
    (g) Applications.--To seek a grant under this title, a State or, in 
the case of a grant under section 601 or 603, the National Railroad 
Passenger Corporation shall submit an application for the grant to the 
Board. The application shall be submitted at such time and contain such 
information as the Board requires.
    (h) Procedures for Grant Award.--The Board 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 procedures shall include the 
execution of a grant agreement between the applicant and the Board. The 
Board shall issue a final rule establishing the procedures not later 
than 90 days after the date on which a sufficient number of the members 
of Board to constitute a quorum has taken office.
    (i) 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 Board 
        may exempt a recipient from the requirements of this subsection 
        if the Board 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.

SEC. 605. STANDARDS AND CONDITIONS.

    (a) 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 an employer for purposes of the 
        Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
            (2) shall be considered a carrier for purposes of the 
        Railway Labor Act (43 U.S.C. 151 et seq.).
    (b) Grant Conditions.--The Board of Directors of the Rail 
Infrastructure Finance Corporation 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 title 49, 
                United States Code, 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 that 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 the Rail Infrastructure Finance Corporation.
    (c) 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 another entity as 
        of such date shall enter into an agreement with the authorized 
        bargaining agent or agents for employees of the predecessor 
        provider that--
                    (A) gives each 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 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 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.
    (d) Inapplicability to Certain Rail Operations.--Nothing in this 
section applies to--
            (1) commuter rail passenger transportation (as defined in 
        section 24102(4) of title 49, United States Code) operations of 
        a State or local government authority (as those terms are 
        defined in section 5302(11) and (6), respectively, of that 
        title) eligible to receive financial assistance under section 
        5307 of that title, or to its contractor performing services in 
        connection with commuter rail passenger operations (as so 
        defined); or
            (2) the Alaska Railroad or its contractors.
            (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.

SEC. 606. GRANT PROGRAM FUNDING.

    (a) Annual Reservation of Funds.--Each fiscal year, the Board of 
directors of the Rail Infrastructure Finance Corporation Board shall 
reserve for grants under each of the grant programs authorized under 
sections 501, 502, and 503 the amount determined by multiplying the 
percent applicable to the program under subsection (b) times the amount 
of the net spendable proceeds (as defined under section 507(c)(7)) that 
is available for such fiscal year.
    (b) Applicable Percent.--The percent applicable to a grant program 
under subsection (a) is as follows:
            (1) Intercity passenger rail development grant program.--
        For the intercity passenger rail development grant program 
        under section 601, 40 percent.
            (2) Freight infrastructure development grant program.--For 
        the freight infrastructure development grant program under 
        section 602, 40 percent.
            (4) High priority projects grant program.--For the high 
        priority projects grant program under section 603, 20 percent.

               TITLE VII--AUTHORIZATION OF APPROPRIATIONS

SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $5,000,000 for fiscal year 
2004 for the establishment and payment of initial administrative costs 
of the Rail Infrastructure Finance Corporation, including the Rail 
Infrastructure Finance Trust.
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