‘‘(7) The Commission may appoint and fix the 
pay of such personnel as it considers appropriate. 
‘‘(8) Upon request of the Commission, the head 
of any department or agency of the United States 
may detail, on a reimbursable basis, any of the per-
sonnel of that department or agency to the Commis-
sion to assist it in carrying out its duties under this 
section. 
‘‘(9) Upon the request of the Commission, the 
Administrator of General Services shall provide to 
the Commission, on a reimbursable basis, the admin-
istrative support services necessary for the Commis-
sion to carry out its responsibilities under this sec-
tion. 
‘‘(10) The commission shall consult with other 
entities as appropriate. 
‘‘(b) GENERAL RECOMMENDATIONS.—The Commis-
sion shall develop recommendations concerning Northeast 
Corridor rail infrastructure and operations including pro-
posals addressing, as appropriate— 
‘‘(1) short-term and long-term capital invest-
ment needs beyond the state-of-good-repair under 
section 208 of the Passenger Rail Investment and 
Improvement Act of 2008; 
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‘‘(2) future funding requirements for capital 
improvements and maintenance; 
‘‘(3) operational improvements of intercity pas-
senger rail, commuter rail, and freight rail services; 
‘‘(4) opportunities for additional non-rail uses 
of the Northeast Corridor; 
‘‘(5) scheduling and dispatching; 
‘‘(6) safety enhancements; 
‘‘(7) equipment design; 
‘‘(8) marketing of rail services; and 
‘‘(9) future capacity requirements. 
‘‘(c) ACCESS COSTS.— 
‘‘(1) DEVELOPMENT OF FORMULA.—Within 1 
year after verification of Amtrak’s new financial ac-
counting system pursuant to section 203(b) of the 
Passenger Rail Investment and Improvement Act of 
2008, the Commission shall— 
‘‘(A) develop a standardized formula for 
determining and allocating costs, revenues, and 
compensation for Northeast Corridor commuter 
rail passenger transportation, as defined in sec-
tion 24102 of this title, that use National Rail-
road Passenger Corporation facilities or services 
or that provide such facilities or services to the 
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National Railroad Passenger Corporation that 
ensure that— 
‘‘(i) there is no cross-subsidization of 
commuter rail passenger, intercity rail pas-
senger, or freight rail transportation; and 
‘‘(ii) each service is assigned the costs 
incurred only for the benefit of that serv-
ice, and a proportionate share, based upon 
factors that reasonably reflect relative use, 
of costs incurred for the common benefit of 
more than 1 service; 
‘‘(B) develop a proposed timetable for im-
plementing the formula before the end of the 
6th year following the date of enactment of that 
Act; 
‘‘(C) transmit the proposed timetable to 
the Surface Transportation Board; and 
‘‘(D) at the request of a Commission mem-
ber, petition the Surface Transportation Board 
to appoint a mediator to assist the Commission 
members through non-binding mediation to 
reach an agreement under this section. 
‘‘(2) IMPLEMENTATION.—The National Rail-
road Passenger Corporation and the commuter au-
thorities providing commuter rail passenger trans-
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portation on the Northeast Corridor shall implement 
new agreements for usage of facilities or services 
based on the formula proposed in paragraph (1) in 
accordance with the timetable established therein. If 
the entities fail to implement such new agreements 
in accordance with the timetable, the Commission 
shall petition the Surface Transportation Board to 
determine the appropriate compensation amounts for 
such services in accordance with section 24904(c) of 
this title. The Surface Transportation Board shall 
enforce its determination on the party or parties in-
volved. 
‘‘(d) TRANSMISSION OF RECOMMENDATIONS.—The 
commission shall annually transmit the recommendations 
developed under subsection (b) and the formula and time-
table developed under subsection (c)(1) to the Committee 
on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate.’’. 
(b) 
CONFORMING
AMENDMENTS.—Section 
24904(c)(2) is amended by— 
(1) inserting ‘‘commuter rail passenger and’’ 
after ‘‘between’’; and 
(2) striking ‘‘freight’’ in the second sentence. 
(c) ACELA SERVICE STUDY.— 
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(1) IN GENERAL.—Amtrak shall conduct a con-
duct a study to determine the infrastructure and 
equipment improvements necessary to provide reg-
ular Acela service— 
(A) between Washington, DC and New 
York City— 
(i) in 2 hours and 30 minutes; 
(ii) in 2 hours and 15 minutes; and 
(iii) in 2 hours; and 
(B) between New York City and Boston— 
(i) in 3 hours and 15 minutes; 
(ii) in 3 hours; and 
(iii) in 2 hours and 45 minutes. 
(2) ISSUES.—The study conducted under para-
graph (1) shall include— 
(A) an estimated time frame for achieving 
the trip time described in paragraph (1); 
(B) an analysis of any significant obstacles 
that would hinder such an achievement; and 
(C) a detailed description and cost esti-
mate of the specific infrastructure and equip-
ment improvements necessary for such an 
achievement. 
(3) REPORT.—Within 1 year after the date of 
enactment of this Act, Amtrak shall submit a writ-
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ten report containing the results of the study re-
quired under this subsection to— 
(A) the Committee on Transportation and 
Infrastructure of the House of Representatives; 
(B) the Committee on Appropriations of 
the House of Representatives; 
(C) the Committee on Commerce, Science, 
and Transportation of the Senate; 
(D) the Committee on Appropriations of 
the Senate; and 
(E) the Federal Railroad Administration. 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary of Transportation to enable Amtrak to con-
duct the study under this subsection $5,000,000. 
SEC. 210. RESTRUCTURING LONG-TERM DEBT AND CAP-
ITAL LEASES. 
(a) IN GENERAL.—The Secretary of the Treasury, in 
consultation with the Secretary of Transportation and 
Amtrak, may make agreements to restructure Amtrak’s 
indebtedness as of the date of enactment of this Act. This 
authorization expires 18 months after the date of enact-
ment of this Act. 
(b) DEBT RESTRUCTURING.—The Secretary of the 
Treasury, in consultation with the Secretary of Transpor-
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tation and Amtrak, shall enter into negotiations with the 
holders of Amtrak debt, including leases, outstanding on 
the date of enactment of this Act for the purpose of re-
structuring (including repayment) and repaying that debt. 
The Secretary of the Treasury may secure agreements for 
restructuring or repayment on such terms as the Secretary 
of the Treasury deems favorable to the interests of the 
Government. 
(c) CRITERIA.—In restructuring Amtrak’s indebted-
ness, the Secretary of the Treasury and Amtrak— 
(1) shall take into consideration repayment 
costs, the term of any loan or loans, and market 
conditions; and 
(2) shall ensure that the restructuring results 
in significant savings to Amtrak and the United 
States Government. 
(d) PAYMENT OF RENEGOTIATED DEBT.—If the cri-
teria under subsection (c) are met, the Secretary of the 
Treasury may assume or repay the restructured debt, as 
appropriate. 
(e) AMTRAK
PRINCIPAL
AND
INTEREST
PAY-
MENTS.— 
(1) PRINCIPAL ON DEBT SERVICE.—Unless the 
Secretary of the Treasury makes sufficient payments 
to creditors under subsection (d) so that Amtrak is 
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required to make no payments to creditors in a fis-
cal year, the Secretary of Transportation shall use 
funds authorized by section 102(a)(1) of this Act for 
the use of Amtrak for retirement of principal on 
loans for capital equipment, or capital leases. 
(2) INTEREST ON DEBT.—Unless the Secretary 
of the Treasury makes sufficient payments to credi-
tors under subsection (d) so that Amtrak is required 
to make no payments to creditors in a fiscal year, 
the Secretary of Transportation shall use funds au-
thorized by section 102(a)(1) of this Act for the use 
of Amtrak for the payment of interest on loans for 
capital equipment, or capital leases. 
(3) REDUCTIONS IN AUTHORIZATION LEVELS.— 
Whenever action taken by the Secretary of the 
Treasury under subsection (a) results in reductions 
in amounts of principal or interest that Amtrak 
must service on existing debt, the corresponding 
amounts authorized by section 102(a)(1) shall be re-
duced accordingly. 
(f) LEGAL EFFECT OF PAYMENTS UNDER THIS SEC-
TION.—The payment of principal and interest on secured 
debt, other than debt assumed under subsection (d), with 
the proceeds of grants under subsection (e) shall not— 
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(1) modify the extent or nature of any indebt-
edness of the National Railroad Passenger Corpora-
tion to the United States in existence of the date of 
enactment of this Act; 
(2) change the private nature of Amtrak’s or its 
successors’ liabilities; or 
(3) imply any Federal guarantee or commit-
ment to amortize Amtrak’s outstanding indebted-
ness. 
(g) SECRETARY APPROVAL.—Amtrak may not incur 
more debt after the date of enactment of this Act without 
the express advance approval of the Secretary of Trans-
portation. 
(h) REPORT.—The Secretary of the Treasury shall 
transmit a report to the Committee on Transportation and 
Infrastructure of the House of Representatives, the Com-
mittee on Appropriations of the House of Representatives, 
the Committee on Commerce, Science, and Transportation 
of the Senate, and the Committee on Appropriations of 
the Senate, by November 1, 2009— 
(1) describing in detail any agreements to re-
structure the Amtrak debt; and 
(2) providing an estimate of the savings to Am-
trak and the United States Government. 
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SEC. 211. STUDY OF COMPLIANCE REQUIREMENTS AT EX-
ISTING INTERCITY RAIL STATIONS. 
Amtrak, in consultation with station owners and 
other railroads operating service through the existing sta-
tions that it serves, shall evaluate the improvements nec-
essary to make these stations readily accessible to and us-
able by individuals with disabilities, as required by such 
section 242(e)(2) of the Americans with Disabilities Act 
of 1990, as amended (42 U.S.C. 12162(e)(2)). The eval-
uation shall include, for each applicable station, improve-
ments required to bring it into compliance with the appli-
cable parts of such section 242(e)(2), any potential bar-
riers to achieving compliance, the estimated cost of the 
improvements necessary, the identification of the respon-
sible 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. The evaluation shall also 
include an overall schedule for bringing all applicable sta-
tions into compliance with the applicable parts of section 
242(e)(2). Amtrak shall submit the evaluation to the Com-
mittee on Transportation and Infrastructure of the House 
of Representatives; the Committee on Commerce, Science, 
and Transportation of the Senate; the Department of 
Transportation; and the National Council on Disability by 
July 1, 2009, along with recommendations for funding the 
necessary improvements. Should the Department of 
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Transportation issue the Final Rule to its Notice of Pro-
posed Rulemaking of February 27, 2006, on ‘‘Transpor-
tation for Individuals with Disabilities,’’ after Amtrak sub-
mits its evaluation, Amtrak shall, not later than 120 days 
after the date the Final Rule is published, submit to the 
above parties a supplemental evaluation on the impact of 
those changes on its cost and schedule for achieving full 
compliance. 
SEC. 212. OVERSIGHT OF AMTRAK’S COMPLIANCE WITH AC-
CESSIBILITY REQUIREMENTS. 
Using the funds authorized by section 101(f) of this 
Act, the Federal Railroad Administration shall monitor 
and conduct periodic reviews of Amtrak’s compliance with 
applicable sections of the Americans with Disabilities Act 
of 1990 and the Rehabilitation Act of 1974 to ensure that 
Amtrak’s services and facilities are accessible to individ-
uals with disabilities to the extent required by law. 
SEC. 213. ACCESS TO AMTRAK EQUIPMENT AND SERVICES. 
If a State desires to select or selects an entity other 
than Amtrak to provide services required for the operation 
of an intercity passenger train route described in section 
24102(5)(D) or 24702 of title 49, United States Code, 
the State may make an agreement with Amtrak to use 
facilities and equipment of, or have services provided by, 
Amtrak under terms agreed to by the State and Amtrak 
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to enable the State to utilize an entity other than Amtrak 
to provide services required for operation of the route. If 
the parties cannot agree upon terms, and the Surface 
Transportation Board finds that access to Amtrak’s facili-
ties or equipment, or the provision of services by Amtrak, 
is necessary to carry out this provision and that the oper-
ation of Amtrak’s other services will not be impaired 
thereby, the Surface Transportation Board shall, within 
120 days after submission of the dispute, issue an order 
that the facilities and equipment be made available, and 
that services be provided, by Amtrak, and shall determine 
reasonable compensation, liability and other terms for use 
of the facilities and equipment and provision of the serv-
ices. Compensation shall be determined in accordance with 
the methodology established pursuant to section 206 of 
this Act. 
SEC. 214. GENERAL AMTRAK PROVISIONS. 
(a) REPEAL
OF
SELF-SUFFICIENCY
REQUIRE-
MENTS.— 
(1) PLAN
REQUIRED.—Section 24101(d) is 
amended— 
(A) by striking ‘‘plan to operate within the 
funding levels authorized by section 24104 of 
this chapter, including the budgetary goals for 
fiscal years 1998 through 2002.’’ and inserting 
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‘‘plan, consistent with section 204 of the Pas-
senger Rail Investment and Improvement Act of 
2008, including the budgetary goals for fiscal 
years 2009 through 2013.’’; and 
(B) by striking the last sentence and in-
serting ‘‘Amtrak and its Board of Directors 
shall adopt a long-term plan that minimizes the 
need for Federal operating subsidies.’’. 
(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. 
(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 2009 through 2013. 
(c) TRAVEL FACILITATION.—Using existing author-
ity or agreements, or upon reaching additional agreements 
with Canada, the Secretary of Transportation and other 
Federal agencies, as appropriate, are authorized to estab-
lish facilities and procedures to conduct preclearance of 
passengers traveling on Amtrak trains from Canada to the 
United States. The Secretary shall seek to establish such 
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facilities and procedures in areas determined appropriate 
by the Secretary. 
SEC. 215. AMTRAK MANAGEMENT ACCOUNTABILITY. 
(a) IN GENERAL.—Chapter 243 is amended by in-
serting after section 24309 the following: 
‘‘§ 24310. Management accountability 
‘‘(a) IN GENERAL.—Three years after the date of en-
actment of the Passenger Rail Investment and Improve-
ment Act of 2008, and two years thereafter, the Inspector 
General of the Department of Transportation shall com-
plete an overall assessment of the progress made by Am-
trak management and the Department of Transportation 
in implementing the provisions of that Act. 
‘‘(b) ASSESSMENT.—The management assessment 
undertaken by the Inspector General may include a review 
of— 
‘‘(1) effectiveness in improving annual financial 
planning; 
‘‘(2) effectiveness in implementing improved fi-
nancial accounting; 
‘‘(3) efforts to implement minimum train per-
formance standards; 
‘‘(4) progress maximizing revenues and mini-
mizing Federal subsidies and improving financial re-
sults; and 
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‘‘(5) any other aspect of Amtrak operations the 
Inspector General finds appropriate to review.’’. 
(b) CONFORMING AMENDMENT.—The chapter anal-
ysis for chapter 243 is amended by inserting after the item 
relating to section 24309 the following: 
‘‘24310. Management accountability.’’. 
SEC. 216. PASSENGER RAIL STUDY. 
(a) IN GENERAL.—The Comptroller General of the 
General Accountability Office shall conduct a study to de-
termine the potential cost and benefits of expanding pas-
senger rail service options in underserved communities. 
(b) SUBMISSION.—Not later than 1 year after the 
date of the enactment of this Act, the Comptroller General 
shall submit a report containing the results of the study 
conducted under this section to— 
(1) the Committee on Transportation and In-
frastructure of the House of Representatives; and 
(2) the Committee on Commerce, Science, and 
Transportation of the Senate. 
SEC. 217. CONGESTION GRANTS. 
(a) AUTHORITY.—The Secretary of Transportation 
may make grants to States, or to Amtrak in cooperation 
with States, for financing the capital costs of facilities, in-
frastructure, and equipment for high priority rail corridor 
projects necessary to reduce congestion or facilitate rider-
ship growth in intercity passenger rail transportation. 
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(b) ELIGIBLE
PROJECTS.—Projects eligible for 
grants under this section include projects— 
(1) to add a third track, crossovers, and Rich-
mond-area track improvements to bypass Acca Yard 
and access the downtown Main St. Station on track 
from Washington, DC, to Richmond, VA; 
(2) to add sections of second track, extend sid-
ings, and add crossovers for Virginia and North 
Carolina service between Richmond, VA, and Selma, 
NC; 
(3) to add a third track, crossovers, and sidings 
from Seattle, WA, to Portland, OR; 
(4) to add new signals, reconfigure the Porter 
rail junction, add new siding, and construct flyovers 
and a separate passenger line from Chicago, IL, to 
Porter, IN; and 
(5) designated by the Secretary as being suffi-
ciently advanced in development to be capable of 
serving the purposes described in subsection (a) on 
an expedited schedule. 
(c) COMPLIANCE WITH ENVIRONMENTAL LAWS.— 
The Secretary shall not make a grant under this section 
for a project without adequate assurances that the project 
will be completed in full compliance with all applicable 
Federal and State environmental laws and regulations. 
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(d) FEDERAL SHARE.—The Federal share of the cost 
of a project financed under this section shall not exceed 
80 percent. 
(e) EMPLOYEE PROTECTION.—The recipient of a 
grant under this section shall agree to comply with 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 fi-
nanced under an agreement made under section 24308(a) 
of such title. 
SEC. 218. PLAN FOR RESTORATION OF SERVICE. 
(a) IN GENERAL.—Not later than 9 months after the 
date of enactment of this Act, Amtrak shall transmit to 
the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate a plan 
for restoring passenger rail service between New Orleans, 
Louisiana, and Sanford, Florida. The plan shall include 
a projected timeline for restoring such service, the costs 
associated with restoring such service, and any proposals 
for legislation necessary to support such restoration of 
service. In developing the plan, Amtrak shall consult with 
representatives from the States of Louisiana, Alabama, 
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Mississippi, and Florida, railroad carriers whose tracks 
may be used for such service, rail passengers, rail labor, 
and other entities as appropriate. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of 
Transportation to enable Amtrak to conduct the study 
under this subsection $1,000,000. 
SEC. 219. LOCOMOTIVE BIOFUEL STUDY. 
(a) IN GENERAL.—The Administrator of the Federal 
Railroad Administration, in consultation with the Sec-
retary of Energy and the Administrator of the Environ-
mental Protection Agency, shall conduct a study to deter-
mine the extent to which freight and passenger rail opera-
tors could use biofuel blends to power its locomotive fleet 
and other vehicles that operate on rail tracks. 
(b) DEFINITION.—For purposes of this section, the 
term ‘‘biofuel’’ means a fuel that utilizes renewable re-
sources and is composed substantially of a renewable re-
source blended with ethanol, methanol, or other additive. 
(c) FACTORS.—In conducting the study, the Federal 
Railroad Administration shall consider— 
(1) the energy intensity of various biofuel 
blends compared to diesel fuel; 
(2) the emission benefits of using various 
biofuel blends compared to locomotive diesel fuel; 
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(3) the cost of purchasing biofuel blends; 
(4) the public benefits derived from the use of 
such fuels; and 
(5) the effect of biofuel use on relevant loco-
motive and other vehicle performance. 
(d) LOCOMOTIVE TESTING.—As part of the study, 
the Federal Railroad Administration shall test locomotive 
engine performance and emissions using blends of biofuel 
and diesel fuel in order to recommend a premium loco-
motive biofuel blend. 
(e) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Federal Railroad Adminis-
tration shall issue the results of this study to the Com-
mittee on Transportation and Infrastructure of the House 
of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of 
Transportation $1,000,000 to carry out this section, to 
remain available until expended. 
SEC. 220. STUDY OF THE USE OF BIOBASED LUBRICANTS. 
Not later than 180 days after the date of enactment 
of this Act, the Federal Railroad Administration shall 
transmit to the Committee on Transportation and Infra-
structure of the House of Representatives and the Com-
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mittee on Commerce, Science, and Transportation of the 
Senate a report containing the results of a study of the 
feasibility of using readily biodegradable lubricants by 
freight and passenger railroads. The Federal Railroad Ad-
ministration shall work with an agricultural-based lubri-
cant testing facility or facilities to complete this study. 
The study shall include— 
(1) an analysis of the potential use of soy-based 
grease and soy-based hydraulic fluids to perform ac-
cording to railroad industry standards; 
(2) an analysis of the potential use of other 
readily biodegradable lubricants to perform accord-
ing to railroad industry standards; 
(3) a comparison of the health and safety of pe-
troleum-based lubricants with biobased lubricants, 
which shall include an analysis of fire safety; and 
(4) a comparison of the environmental impact 
of petroleum-based lubricants with biobased lubri-
cants, which shall include rate and effects of 
biodegradability. 
SEC. 221. APPLICABILITY OF BUY AMERICAN ACT. 
Section 24305(f) of title 49, United States Code, is 
amended to read as follows: 
‘‘(f) APPLICABILITY OF BUY AMERICAN ACT.—Am-
trak shall be subject to the Buy American Act (41 U.S.C. 
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10a–d) and the regulations thereunder, for purchases of 
$100,000 or more.’’. 
SEC. 222. INTERCITY PASSENGER RAIL SERVICE PERFORM-
ANCE. 
(a) DEVELOPMENT OF EVALUATION METRICS.—Not 
later than 6 months after the date of enactment of this 
Act, the Inspector General of the Department of Trans-
portation shall, using the financial and performance 
metrics developed under section 207, develop metrics for 
the evaluation of the performance and service quality of 
intercity passenger rail services including cost recovery, 
on-time performance and minutes of delay, ridership, on-
board services, maintenance of facilities and equipment, 
and other services. 
(b) 
IDENTIFICATION
OF
WORST
PERFORMING 
ROUTES.—On the basis of these metrics, the Inspector 
General shall identify the five worst performing Amtrak 
routes. 
(c) ALTERNATIVE ROUTES.—The Inspector General 
shall also establish criteria for evaluating routes not cur-
rently served by Amtrak which might be able to support 
passenger rail service at a reasonable cost. 
(d) REPORT TO CONGRESS.—The Inspector General 
shall submit a report to the Committee on Transportation 
and Infrastructure of the House of Representatives and 
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the Committee on Commerce, Science, and Transportation 
of the Senate recommending a process for the Department 
of Transportation to consider proposals by Amtrak and 
others to serve underperforming routes, and routes not 
currently served by Amtrak. The proposals shall require 
that applicants follow grant requirements of section 504. 
The Inspector General shall recommend one route not cur-
rently served by Amtrak and two routes (from among the 
five worst routes identified under subsection (b)) currently 
served by Amtrak, for the Department of Transportation 
to consider under the selection process. 
(e) IMPLEMENTATION.—The Secretary shall not im-
plement the selection process recommended by the Inspec-
tor General under subsection (d) until legislation has been 
enacted authorizing the Secretary to take such action. 
TITLE III—INTERCITY 
PASSENGER RAIL POLICY 
SEC. 301. CAPITAL ASSISTANCE FOR INTERCITY PAS-
SENGER RAIL SERVICE; STATE RAIL PLANS. 
(a) IN GENERAL.—Part C of subtitle V is amended 
by inserting the following after chapter 243: 
‘‘CHAPTER 
244—INTERCITY 
PASSENGER 
RAIL SERVICE CORRIDOR CAPITAL AS-
SISTANCE 
‘‘Sec. 24401. Definitions. 
‘‘Sec. 24402. Capital investment grants to support intercity passenger rail serv-
ice. 
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‘‘Sec. 24403. Project management oversight. 
‘‘Sec. 24404. Use of capital grants to finance first-dollar liability of grant 
project. 
‘‘Sec. 24405. Grant conditions. 
‘‘§ 24401. Definitions 
‘‘In this chapter: 
‘‘(1) APPLICANT.—The term ‘applicant’ means 
a State (including the District of Columbia), a group 
of States, an Interstate Compact, or a public agency 
established by one or more States and having re-
sponsibility for providing intercity passenger rail 
service. 
‘‘(2) CAPITAL
PROJECT.—The term ‘capital 
project’ means a project or program in a State rail 
plan developed under chapter 225 of this title for— 
‘‘(A) acquiring, constructing, improving, or 
inspecting equipment, track and track struc-
tures, or a facility for use in or for the primary 
benefit of intercity passenger rail service, ex-
penses incidental to the acquisition or construc-
tion (including designing, engineering, location 
surveying, mapping, environmental studies, and 
acquiring rights-of-way), payments for the cap-
ital portions of rail trackage rights agreements, 
highway-rail grade crossing improvements re-
lated to intercity passenger rail service, miti-
gating environmental impacts, communication 
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and signalization improvements, relocation as-
sistance, acquiring replacement housing sites, 
and acquiring, constructing, relocating, and re-
habilitating replacement housing; 
‘‘(B) rehabilitating, remanufacturing or 
overhauling rail rolling stock and facilities used 
primarily in intercity passenger rail service; 
‘‘(C) costs associated with developing State 
rail plans; and 
‘‘(D) the first-dollar liability costs for in-
surance related to the provision of intercity pas-
senger rail service under section 24404. 
‘‘(3) INTERCITY PASSENGER RAIL SERVICE.— 
The term ‘intercity passenger rail service’ means 
transportation services with the primary purpose of 
passenger transportation between towns, cities and 
metropolitan areas by rail, including high-speed rail, 
as defined in section 24102 of this title. 
‘‘§ 24402. Capital investment grants to support inter-
city passenger rail service 
‘‘(a) GENERAL AUTHORITY.— 
‘‘(1) The Secretary of Transportation may 
make grants under this section to an applicant to 
assist in financing the capital costs of facilities, in-
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frastructure, and equipment necessary to provide or 
improve intercity passenger rail transportation. 
‘‘(2) The Secretary shall require that a grant 
under this section be subject to the terms, condi-
tions, requirements, and provisions the Secretary de-
cides are necessary or appropriate for the purposes 
of this section, including requirements for the dis-
position of net increases in value of real property re-
sulting from the project assisted under this section 
and shall prescribe procedures and schedules for the 
awarding of grants under this title, including appli-
cation and qualification procedures and a record of 
decision on applicant eligibility. The Secretary shall 
issue a final rule establishing such procedures not 
later than 90 days after the date of enactment of 
the Passenger Rail Investment and Improvement 
Act of 2008. 
‘‘(b) PROJECT AS PART OF STATE RAIL PLAN.— 
‘‘(1) The Secretary may not approve a grant for 
a project under this section unless the Secretary 
finds that the project is part of a State rail plan de-
veloped under chapter 225 of this title, or under the 
plan required by section 302 of the Passenger Rail 
Investment and Improvement Act of 2008, and that 
the applicant or recipient has or will have the legal, 
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financial, and technical capacity to carry out the 
project, satisfactory continuing control over the use 
of the equipment or facilities, and the capability and 
willingness to maintain the equipment or facilities. 
‘‘(2) An applicant shall provide sufficient infor-
mation upon which the Secretary can make the find-
ings required by this subsection. 
‘‘(3) If an applicant has not selected the pro-
posed operator of its service competitively, the appli-
cant shall provide written justification to the Sec-
retary showing why the proposed operator is the 
best, taking into account price and other factors, 
and that use of the proposed operator will not un-
necessarily increase the cost of the project. 
‘‘(c) PROJECT
SELECTION
CRITERIA.—The Sec-
retary, 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; 
‘‘(2) give preference to projects with high levels 
of estimated ridership, increased on-time perform-
ance, reduced trip time, additional service frequency 
to meet anticipated or existing demand, or other sig-
nificant service enhancements as measured against 
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authorization. Interest and other financing costs of 
efficiently carrying out the work agreement within a 
reasonable time are a cost of carrying out the agree-
ment, except that eligible costs may not be more 
than the cost of the most favorable financing terms 
reasonably available for the project at the time of 
borrowing. The applicant shall certify, in a way sat-
isfactory to the Secretary, that the applicant has 
shown reasonable diligence in seeking the most fa-
vorable financing terms. If an applicant does not 
carry out the project for reasons within the control 
of the applicant, the applicant shall repay all Gov-
ernment payments made under the work agreement 
plus reasonable interest and penalty charges the 
Secretary establishes in the agreement. 
‘‘(4) The total estimated amount of future obli-
gations of the Government and contingent commit-
ments to incur obligations covered by all outstanding 
letters of intent, full funding grant agreements, and 
early systems work agreements may be not more 
than the amount authorized under section 101(d) of 
the Passenger Rail Investment and Improvement 
Act of 2008, less an amount the Secretary reason-
ably estimates is necessary for grants under this sec-
tion not covered by a letter. The total amount cov-
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the direction of the Governor of the State or a State 
law for preparation, maintenance, coordination, and 
administration of the State rail plan. 
‘‘§ 22502. Authority 
‘‘(a) IN GENERAL.—Each State may prepare and 
maintain a State rail plan in accordance with the provi-
sions of this chapter. 
‘‘(b) REQUIREMENTS.—For the preparation and peri-
odic revision of a State rail plan, a State shall— 
‘‘(1) establish or designate a State rail trans-
portation authority to prepare, maintain, coordinate, 
and administer the plan; 
‘‘(2) establish or designate a State rail plan ap-
proval authority to approve the plan; 
‘‘(3) submit the State’s approved plan to the 
Secretary of Transportation for review; and 
‘‘(4) revise and resubmit a State-approved plan 
no less frequently than once every 5 years for re-
approval by the Secretary. 
‘‘§ 22503. Purposes 
‘‘(a) PURPOSES.—The purposes of a State rail plan 
are as follows: 
‘‘(1) To set forth State policy involving freight 
and passenger rail transportation, including com-
muter rail operations, in the State. 
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