the National Railroad Passenger Corporation (Am-
trak) must provide a quality transportation product
in the form of clean, comfortable, and on time serv-
ice;
(2) Amtrak’s management and employees are
dedicated to providing the high quality service that
Amtrak’s customers deserve; however, additional
capital investment is needed to acquire the modern
equipment and efficient facilities that are essential
to satisfy the demand for superior intercity rail pas-
senger service;
(3) significant levels of Federal capital invest-
ment will enable Amtrak to provide the world class
service American rail passengers deserve, and will
reduce operating costs in the long term;
(4) Amtrak’s management should be held ac-
countable to ensure that all capital investment by
the Federal Government is effectively used to im-
prove the quality of service and the long-term finan-
cial health of Amtrak;
(5) the Secretary of Transportation, as an ex
officio member of Amtrak’s board of directors,
should use this position to evaluate Amtrak’s costs
and revenue elements to ensure that Amtrak pro-
vides excellent service to its customers and that Am-
trak uses its Federal investment wisely and effi-
ciently; and
(6) States can play a significant role in provid-
ing cost efficient intercity rail passenger transpor-
tation and in addressing local transportation needs
and air quality control.
SEC. 3. WORLD CLASS SERVICE.
Section 102(3) of the Rail Passenger Service Act (45
U.S.C. 501a(3)) is amended to read as follows:
‘‘(3) Management of capital investment by the
Corporation in such a way as to provide its cus-
tomers with world class service.’’.
SEC. 4. RETURN ON INVESTMENT.
Section 308(b) of the Rail Passenger Service Act (45
U.S.C. 548(b)) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Corporation
shall transmit’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) The Corporation shall also include in the report
required under paragraph (1) projections of the antici-
pated benefits of the projects proposed for funding under
this Act and a report on the benefits actually realized from
all projects previously funded under this Act beginning
with funds provided in fiscal year 1994. Such report shall
include an identification of improvements in the quality
of service offered by Amtrak, facility improvements that
demonstrate a productivity gain, equipment improvements
that lower operating costs, environmental benefits (includ-
ing air quality and land use), enhancements to local trans-
portation needs, enhancements to mobility of physically
and economically disadvantaged persons, an improvement
to the revenue to cost ratio, reduced dependence on Fed-
eral operating support, and reductions in the need for al-
ternative transportation investments. To the extent prac-
ticable, the benefits addressed in each report shall also be
expressed as return on invested capital.’’.
SEC. 5. STATE REQUESTED RAIL PASSENGER SERVICE.
(a) Section 403(b) of the Rail Passenger Service Act
(45 U.S.C. 563(b)) is amended—
(1) in paragraph (1)(B) by amending clause
(iii) to read as follows:
‘‘(iii) a statement by such State, agency, or per-
son that it agrees to pay in each year of operation
of any such service at least—
‘‘(I) 45 percent in the first year of such
operation; and
‘‘(II) 65 percent in each year of operation
thereafter,
of the long-term avoidable losses of operating such
service and at least 50 percent of the associated cap-
ital costs.’’;
(2) by redesignating paragraphs (2) through
(6) as paragraphs (3) through (7), respectively;
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) The Corporation is authorized to contribute in
each year of operation of any service instituted or retained
pursuant to this subsection no more than—
‘‘(A) 55 percent in the first year of such oper-
ation; and
‘‘(B) 35 percent in each year of operation
thereafter,
of the long-term avoidable losses of operating such serv-
ice.’’;
(4) in paragraph (4)(A), as so redesignated by
paragraph (2) of this subsection, by striking ‘‘para-
graph (1)(B)’’ and inserting in lieu thereof ‘‘para-
graphs (1)(B) and (2)’’; and
(5) in paragraph (4)(B), as so redesignated by
paragraph (2) of this subsection, by adding at the
end the following new sentence: ‘‘Any such renewal
shall require the State, agency, or person to provide
a statement that such State, agency, or person
agrees to pay in each year of operation, beginning
with the first year of operation of service under such
renewed agreement, at least 65 percent of the long-
term avoidable losses of operating such service and
at least 50 percent of the associated capital costs.’’.
(b) Within 2 years after the date of enactment of this
Act, the Secretary of Transportation shall conduct a com-
prehensive review of the program of state-assisted rail pas-
senger services operated by the National Railroad Pas-
senger Corporation under section 403(b) of the Rail Pas-
senger Service Act (45 U.S.C. 563(b)) and shall submit
a report to the Congress detailing the Secretary’s findings
and conclusions, including any recommendations the Sec-
retary may have for revising section 403(b). The Sec-
retary’s report shall address, among other things, whether
and at what point services originated under section 403(b)
should become a part of the basic system of intercity rail
passenger services and shall identify any other avenues for
initiating and implementing new rail passenger services.
SEC. 6. NORTHEAST CORRIDOR IMPROVEMENT PROJECT.
Section 704 of the Railroad Revitalization and Regu-
latory Reform Act of 1976 (45 U.S.C. 854) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(A) $363,000,000 for fiscal year 1995;
and
‘‘(B) $353,000,000 for fiscal year 1996.
‘‘(2) STATE REQUESTED SERVICE.—There are
authorized to be appropriated to the Secretary for
the benefit of the Corporation for meeting its obliga-
tions under section 403(b) of this Act—
‘‘(A) $17,000,000 for fiscal year 1995; and
‘‘(B) $17,000,000 for fiscal year 1996.
‘‘(b) CAPITAL INVESTMENT.—
‘‘(1) There are authorized to be appropriated to
the Secretary for the benefit of the Corporation for
capital investment expenditures—
‘‘(A) $252,000,000 for fiscal year 1995, of
which not more than $149,000,000 shall be
available for rolling stock, not more than
$53,000,000 shall be available for fixed facili-
ties, not more than $41,000,000 shall be avail-
able to satisfy other capital investment statu-
tory and regulatory requirements, and not more
than $9,000,000 shall be available for other
capital projects; and
‘‘(B) $355,000,000 for fiscal year 1996, of
which not more than $240,000,000 shall be
available for rolling stock, not more than
$65,000,000 shall be available for fixed facili-
ties, not more than $35,000,000 shall be avail-
able to satisfy other capital investment statu-
tory and regulatory requirements, and not more
than $15,000,000 shall be available for other
capital projects.
‘‘(c) INTERCITY RAIL PASSENGER STATION.—There
are authorized to be appropriated to the Secretary for the
benefit of the Corporation $90,000,000 for fiscal year
1995 to be used for engineering, design, and construction
activities to enable the James A. Farley Post Office in
New York, New York, to be used as a train station and
commercial center and for necessary improvements and re-
development of the existing Pennsylvania Station and as-
sociated service building in New York, New York.
‘‘(d) 
NORTHEAST
CORRIDOR
IMPROVEMENT
PROJECT.—There are authorized to be appropriated to
the Secretary for the benefit of the Corporation for mak-
ing capital expenditures under section 704(a) of the Rail-
road Revitalization and Regulatory Reform Act of 1976
(45 U.S.C. 854(a)) such sums as may be necessary.
‘‘(e) MANDATORY PAYMENTS.—There are authorized
to be appropriated to the Secretary $156,000,000 for fis-
cal year 1995 and $165,000,000 for fiscal year 1996 for
the payment of—
‘‘(1) tax liabilities under section 3221 of the In-
ternal Revenue Code of 1986 due in such fiscal
years in excess of amounts needed to fund benefits
for individuals who retire from the Corporation and
for their beneficiaries;
‘‘(2) obligations of the Corporation under sec-
tion 8(a) of the Railroad Unemployment Insurance
Act (45 U.S.C. 358(a)) due in such fiscal years in
excess of its obligations calculated on an experience-
rated basis; and
‘‘(3) obligations of the Corporation due under
section 3321 of the Internal Revenue Code of 1986.
‘‘(f) ADMINISTRATION OF APPROPRIATIONS.—Funds
appropriated pursuant to this section shall be available to
the Secretary during the fiscal year for which appro-
priated, except that appropriations for capital investments
may be made in an appropriations Act for a fiscal year
preceding the fiscal year in which the appropriation is to
be available for obligation. Funds appropriated are au-
thorized to remain available until expended. Appropriated
funds shall be paid by the Secretary to the Corporation
for expenditure in accordance with the Secretary’s budget
request as approved or modified by Congress at the time
of appropriation. Payments by the Secretary to the Cor-
poration of appropriated funds shall be made no more fre-
quently than every 90 days, unless the Corporation, for
good cause, requests more frequent payment before expi-
ration of any 90-day period.’’.
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