‘‘(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 
minimum standards developed under section 207 of 
the Passenger Rail Investment and Improvement 
Act of 2008; 
‘‘(3) encourage intermodal connectivity through 
projects that provide direct connections between 
train stations, airports, bus terminals, subway sta-
tions, ferry ports, and other modes of transpor-
tation; 
‘‘(4) ensure that each project is compatible 
with, and is operated in conformance with— 
‘‘(A) plans developed pursuant to the re-
quirements of section 135 of title 23, United 
States Code; and 
‘‘(B) the national rail plan (if it is avail-
able); and 
‘‘(5) 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 improve freight or com-
muter rail operations. 
‘‘(C) Projects that have significant envi-
ronmental benefits, including projects that in-
volve the purchase of environmentally sensitive, 
fuel-efficient, and cost-effective passenger rail 
equipment. 
‘‘(D) Projects that are— 
‘‘(i) at a stage of preparation that all 
pre-commencement compliance with envi-
ronmental protection requirements has al-
ready been completed; and
‘‘(ii) ready to be commenced. 
‘‘(E) Projects with positive economic and 
employment impacts. 
‘‘(F) Projects that encourage the use of 
positive train control technologies. 
‘‘(G) 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 re-
quired for the project. 
‘‘(H) Projects that involve donated prop-
erty interests or services. 
‘‘(I) Projects that are identified by the 
Surface Transportation Board as necessary to 
improve the on time performance and reliability 
of intercity passenger rail under section 
24308(f). 
‘‘(J) 
Projects 
described 
in 
section 
5302(a)(1)(G) of this title that are designed to 
support intercity passenger rail service. 
‘‘(K) Projects that encourage intermodal 
connectivity, create significant opportunity for 
State and private contributions toward station 
development, are energy and environmentally 
efficient, and have economic benefits.
‘‘(d) AMTRAK ELIGIBILITY.—To receive a grant 
under this section, the National Railroad Passenger Cor-
poration may enter into a cooperative agreement with 1 
or more States to carry out 1 or more projects on a State 
rail plan’s ranked list of rail capital projects developed 
under section 22504(a)(5) of this title. 
‘‘(e) LETTERS OF INTENT, FULL FUNDING GRANT 
AGREEMENTS, AND EARLY SYSTEMS WORK AGREE-
MENTS.— 
‘‘(1)(A) The Secretary may issue a letter of in-
tent to an applicant announcing an intention to obli-
gate, for a major capital project under this section, 
an amount from future available budget authority 
specified in law that is not more than the amount 
stipulated as the financial participation of the Sec-
retary in the project. 
‘‘(B) At least 30 days before issuing a letter 
under subparagraph (A) of this paragraph or enter-
ing into a full funding grant agreement, the Sec-
retary shall notify in writing the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate and the 
House and Senate Committees on Appropriations of 
the proposed letter or agreement. The Secretary
shall include with the notification a copy of the pro-
posed letter or agreement as well as the evaluations 
and ratings for the project. 
‘‘(C) An obligation or administrative commit-
ment may be made only when amounts are appro-
priated. 
‘‘(2)(A) The Secretary may make a full funding 
grant agreement with an applicant. The agreement 
shall— 
‘‘(i) establish the terms of participation by 
the United States Government in a project 
under this section; 
‘‘(ii) establish the maximum amount of 
Government financial assistance for the project; 
‘‘(iii) cover the period of time for com-
pleting the project, including a period extending 
beyond the period of an authorization; and 
‘‘(iv) make timely and efficient manage-
ment of the project easier according to the law 
of the United States. 
‘‘(B) An agreement under this paragraph obli-
gates an amount of available budget authority speci-
fied in law and may include a commitment, contin-
gent on amounts to be specified in law in advance 
for commitments under this paragraph, to obligate
an additional amount from future available budget 
authority specified in law. The agreement shall state 
that the contingent commitment is not an obligation 
of the Government and is subject to the availability 
of appropriations made by Federal law and to Fed-
eral laws in force on or enacted after the date of the 
contingent commitment. Interest and other financing 
costs of efficiently carrying out a part of the project 
within a reasonable time are a cost of carrying out 
the project under a full funding grant agreement, 
except that eligible costs may not be more than the 
cost of the most favorable financing terms reason-
ably available for the project at the time of bor-
rowing. The applicant shall certify, in a way satis-
factory to the Secretary, that the applicant has 
shown reasonable diligence in seeking the most fa-
vorable financing terms. 
‘‘(3)(A) The Secretary may make an early sys-
tems work agreement with an applicant if a record 
of decision under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) has been 
issued on the project and the Secretary finds there 
is reason to believe— 
‘‘(i) a full funding grant agreement for the 
project will be made; and
‘‘(ii) the terms of the work agreement will 
promote ultimate completion of the project 
more rapidly and at less cost. 
‘‘(B) A work agreement under this paragraph 
obligates an amount of available budget authority 
specified in law and shall provide for reimbursement 
of preliminary costs of carrying out the project, in-
cluding land acquisition, timely procurement of sys-
tem elements for which specifications are decided, 
and other activities the Secretary decides are appro-
priate to make efficient, long-term project manage-
ment easier. A work agreement shall cover the pe-
riod of time the Secretary considers appropriate. 
The period may extend beyond the period of current 
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
interest terms reasonably available for the project at 
the time of borrowing. The applicant shall certify, in 
a manner satisfactory to the Secretary, that the ap-
plicant has shown reasonable diligence in seeking the 
most favorable financial terms. 
‘‘(3) The Secretary shall consider changes in 
capital project cost indices when determining the es-
timated cost under paragraph (2) of this subsection. 
‘‘(h) 2-YEAR AVAILABILITY.—Funds appropriated 
under this section shall remain available until expended. 
If any amount provided as a grant under this section is 
not obligated or expended for the purposes described in 
subsection (a) within 2 years after the date on which the 
State received the grant, such sums shall be returned to 
the Secretary for other intercity passenger rail develop-
ment projects under this section at the discretion of the 
Secretary. 
‘‘(i) SPECIAL TRANSPORTATION CIRCUMSTANCES.— 
In carrying out this section, the Secretary shall allocate 
an appropriate portion of the amounts available under this 
section to provide grants to States— 
‘‘(1) in which there is no intercity passenger 
rail service for the purpose of funding freight rail 
capital projects that are on a State rail plan devel-
oped under chapter 225 of this title that provide
public benefits (as defined in chapter 225) as deter-
mined by the Secretary; or 
‘‘(2) in which the rail transportation system is 
not physically connected to rail systems in the conti-
nental United States or may not otherwise qualify 
for a grant under this section due to the unique 
characteristics of the geography of that State or 
other relevant considerations, for the purpose of 
funding transportation-related capital projects. 
‘‘(j) SMALL CAPITAL PROJECTS.—The Secretary 
shall make available $10,000,000 annually from the 
amounts authorized under section 101(d) of the Passenger 
Rail Investment and Improvement Act of 2008 beginning 
in fiscal year 2009 for grants for capital projects eligible 
under this section not exceeding $2,000,000, including 
costs eligible under section 206(c) of that Act. The Sec-
retary may wave requirements of this section, including 
state rail plan requirements, as appropriate. 
‘‘(k) BICYCLE ACCESS.—Grants under this chapter 
may be used to provide bicycle access into rolling stock, 
and to provide bicycle racks in trains. 
‘‘§ 24403. Project management oversight 
‘‘(a) PROJECT
MANAGEMENT
PLAN
REQUIRE-
MENTS.—To receive Federal financial assistance for a 
major capital project under this chapter, an applicant
must prepare and carry out a project management plan 
approved by the Secretary of Transportation. The plan 
shall provide for— 
‘‘(1) adequate recipient staff organization with 
well-defined reporting relationships, statements of 
functional responsibilities, job descriptions, and job 
qualifications; 
‘‘(2) a budget covering the project management 
organization, appropriate consultants, property ac-
quisition, utility relocation, systems demonstration 
staff, audits, and miscellaneous payments the recipi-
ent may be prepared to justify; 
‘‘(3) a construction schedule for the project; 
‘‘(4) a document control procedure and record-
keeping system; 
‘‘(5) a change order procedure that includes a 
documented, systematic approach to handling the 
construction change orders; 
‘‘(6) organizational structures, management 
skills, and staffing levels required throughout the 
construction phase; 
‘‘(7) quality control and quality assurance func-
tions, procedures, and responsibilities for construc-
tion, system installation, and integration of system 
components;
‘‘(8) material testing policies and procedures; 
‘‘(9) internal plan implementation and reporting 
requirements; 
‘‘(10) criteria and procedures to be used for 
testing the operational system or its major compo-
nents; 
‘‘(11) periodic updates of the plan, especially 
related to project budget and project schedule, fi-
nancing, and ridership estimates; and 
‘‘(12) the recipient’s commitment to submit a 
project budget and project schedule to the Secretary 
each month. 
‘‘(b) SECRETARIAL OVERSIGHT.— 
‘‘(1) The Secretary may use no more than 0.5 
percent of amounts made available in a fiscal year 
for capital projects under this chapter to enter into 
contracts to oversee the construction of such 
projects. 
‘‘(2) The Secretary may use amounts available 
under paragraph (1) of this subsection to make con-
tracts for safety, procurement, management, and fi-
nancial compliance reviews and audits of a recipient 
of amounts under paragraph (1).
‘‘(3) The Federal Government shall pay the en-
tire cost of carrying out a contract under this sub-
section. 
‘‘(c) ACCESS TO SITES AND RECORDS.—Each recipi-
ent of assistance under this chapter shall provide the Sec-
retary and a contractor the Secretary chooses under sub-
section (c) of this section with access to the construction 
sites and records of the recipient when reasonably nec-
essary. 
‘‘§ 24404. Use of capital grants to finance first-dollar 
liability of grant project 
‘‘Notwithstanding the requirements of section 24402 
of this chapter, the Secretary of Transportation may ap-
prove the use of capital assistance under this chapter to 
fund self-insured retention of risk for the first tier of li-
ability insurance coverage for rail passenger service associ-
ated with the capital assistance grant, but the coverage 
may 
not 
exceed 
$20,000,000 
per 
occurrence 
or 
$20,000,000 in aggregate per year. 
‘‘§ 24405. Grant conditions 
‘‘(a) 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 pur-
chase only— 
‘‘(i) unmanufactured articles, mate-
rial, 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 manufac-
tured in the United States. 
‘‘(B) DE
MINIMIS
AMOUNT.—Subpara-
graph (A) applies only to a purchase in an total 
amount that is not less than $1,000,000. 
‘‘(2) EXEMPTIONS.—On application of a recipi-
ent, the Secretary may exempt a recipient from the 
requirements of this subsection if the Secretary de-
cides that, for particular articles, material, or sup-
plies— 
‘‘(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, pro-
duced, 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 sub-
section, the term ‘the United States’ means the 
States, territories, and possessions of the United 
States and the District of Columbia. 
‘‘(b) OPERATORS DEEMED RAIL CARRIERS AND EM-
PLOYERS FOR CERTAIN PURPOSES.—A person that con-
ducts rail operations over rail infrastructure constructed 
or improved with funding provided in whole or in part in 
a grant made under this title shall be considered a rail 
carrier as defined in section 10102(5) of this title for pur-
poses of this title and any other statute that adopts that 
definition or in which that definition applies, including— 
‘‘(1) the Railroad Retirement Act of 1974 (45 
U.S.C. 231 et seq.); 
‘‘(2) the Railway Labor Act (43 U.S.C. 151 et 
seq.); and 
‘‘(3) the Railroad Unemployment Insurance Act 
(45 U.S.C. 351 et seq.). 
‘‘(c) GRANT CONDITIONS.—The Secretary shall re-
quire as a condition of making any grant under this title 
for a project that uses rights-of-way owned by a railroad 
that—
‘‘(1) a written agreement exist between the ap-
plicant 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 oper-
ations; 
‘‘(C) an assurance by the railroad that col-
lective bargaining agreements with the rail-
road’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 
‘‘(D) an assurance that an applicant com-
plies with liability requirements consistent with 
section 28103 of this title; and 
‘‘(2) the applicant agrees to comply with— 
‘‘(A) the standards of section 24312 of this 
title, 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 
this title; and 
‘‘(B) the protective arrangements estab-
lished under section 504 of the Railroad Revi-
talization and Regulatory Reform Act of 1976 
(45 U.S.C. 836) with respect to employees af-
fected by actions taken in connection with the 
project to be financed in whole or in part by 
grants under this chapter. 
‘‘(d) REPLACEMENT OF EXISTING INTERCITY PAS-
SENGER RAIL SERVICE.— 
‘‘(1) COLLECTIVE
BARGAINING
AGREEMENT 
FOR INTERCITY PASSENGER RAIL PROJECTS.—Any 
entity providing intercity passenger railroad trans-
portation that begins operations after the date of en-
actment 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 
Amtrak, unless such service was provided solely by 
Amtrak to another entity, as of such date shall enter 
into an agreement with the authorized bargaining 
agent or agents for adversely affected employees of 
the predecessor provider that— 
‘‘(A) gives each such qualified employee of 
the predecessor provider priority in hiring ac-
cording to the employee’s seniority on the pred-
ecessor provider for each position with the re-
placing 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 oc-
curs concurrent with or within a reasonable 
time before the commencement of the replacing 
entity’s rail passenger service, the replacing en-
tity shall give written notice of its plan to re-
place existing rail passenger service to the au-
thorized collective bargaining agent or agents 
for the potentially adversely affected employees 
of the predecessor provider at least 90 days be-
fore 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 prede-
cessor provider shall commence for the purpose 
of reaching agreement with respect to all mat-
ters set forth in subparagraphs (A) through (D) 
of paragraph (1). The negotiations shall con-
tinue 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 arbitra-
tion in accordance with the procedure set forth 
in subparagraph (B). 
‘‘(B) ARBITRATION.—If an agreement has 
not been entered into with respect to all mat-
ters 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 Na-
tional Mediation Board, which shall provide a 
list of seven arbitrators with experience in arbi-
trating rail labor protection disputes. Within 5 
days after such notification, the parties shall al-
ternately strike names from the list until only 
1 name remains, and that person shall serve as 
the neutral arbitrator. Within 45 days after se-
lection 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 subpara-
graphs (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 par-
ties; 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
SERV-
ICE.—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 adversely affected employees
of the predecessor provider shall enter into an agree-
ment with respect to the matters set forth in sub-
paragraphs (A) through (D) of paragraph (1). If the 
parties have not entered into an agreement with re-
spect to all such matters within 60 days after the 
date on which the replacing entity replaces the pred-
ecessor provider, the parties shall select an arbi-
trator using the procedures set forth in paragraph 
(2)(B), who shall, within 20 days after the com-
mencement of the arbitration, conduct a hearing and 
decide all unresolved issues. This decision shall be 
final, binding, and conclusive upon the parties. 
‘‘(e) INAPPLICABILITY
TO CERTAIN RAIL OPER-
ATIONS.—Nothing in this section applies to— 
‘‘(1) the Alaska Railroad or its contractors; or 
‘‘(2) the National Railroad Passenger Corpora-
tion’s access rights to railroad rights of way and fa-
cilities under current law.’’. 
(b) CONFORMING AMENDMENT.—The chapter anal-
ysis for subtitle V is amended by inserting the following 
after the item relating to chapter 243: 
‘‘244. INTERCITY PASSENGER RAIL SERVICE CORRIDOR 
CAPITAL ASSISTANCE ............................................ 24401’’. 
SEC. 302. 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. Definitions. 
‘‘22502. Authority. 
‘‘22503. Purposes. 
‘‘22504. Transparency; coordination; review. 
‘‘22505. Content. 
‘‘22506. Review. 
‘‘§ 22501. Definitions 
‘‘In this chapter: 
‘‘(1) PRIVATE BENEFIT.— 
‘‘(A) IN
GENERAL.—The term ‘private 
benefit’— 
‘‘(i) means a benefit accrued to a per-
son or private entity, other than the Na-
tional Railroad Passenger Corporation, 
that directly improves the economic and 
competitive condition of that person or en-
tity through improved assets, cost reduc-
tions, service improvements, or any other 
means as defined by the Secretary; and 
‘‘(ii) shall be determined on a project- 
by-project basis, based upon an agreement 
between the parties. 
‘‘(B) CONSULTATION.—The Secretary may 
seek the advice of the States and rail carriers 
in further defining this term. 
‘‘(2) PUBLIC BENEFIT.—
‘‘(A) IN GENERAL.—The term ‘public ben-
efit’— 
‘‘(i) means a benefit accrued to the 
public in the form of enhanced mobility of 
people or goods, environmental protection 
or enhancement, congestion mitigation, en-
hanced trade and economic development, 
improved air quality or land use, more effi-
cient energy use, enhanced public safety, 
reduction of public expenditures due to im-
proved transportation efficiency or infra-
structure preservation, and any other posi-
tive community effects as defined by the 
Secretary; and 
‘‘(ii) shall be determined on a project- 
by-project basis, based upon an agreement 
between the parties. 
‘‘(B) CONSULTATION.—The Secretary may 
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
AUTHOR-
ITY.—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. 
‘‘§ 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.
‘‘(2) To establish the period covered by the 
State rail plan. 
‘‘(3) To present priorities and strategies to en-
hance rail service in the State that benefits the pub-
lic. 
‘‘(4) To serve as the basis for Federal and 
State rail investments within the State. 
‘‘(b) COORDINATION.—A State rail plan shall be co-
ordinated with other State transportation planning goals 
and programs and set forth rail transportation’s role with-
in the State transportation system. 
‘‘§ 22504. 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 tran-
sit authorities operating in, or affected by rail operations 
within the State, units of local government, and other in-
terested 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, re-
gional transportation authorities, and municipalities with-
in the State, or in the region in which the State is located, 
while preparing the plan, and shall include any rec-
ommendations made by such agencies, authorities, and 
municipalities as deemed appropriate by the State. 
‘‘§ 22505. Content 
‘‘(a) IN GENERAL.—Each State rail plan shall con-
tain the following: 
‘‘(1) An inventory of the existing overall rail 
transportation system and rail services and facilities 
within the State and an analysis of the role of rail 
transportation within the State’s surface transpor-
tation system. 
‘‘(2) A review of all rail lines within the State, 
including proposed high-speed rail corridors and sig-
nificant rail line segments not currently in service. 
‘‘(3) A statement of the State’s 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 investment program for 
current and future freight and passenger infrastruc-
ture 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 public capital and oper-
ating funding resources, public subsidies, State tax-
ation, and other financial policies relating to rail in-
frastructure development. 
‘‘(7) An identification of rail infrastructure 
issues within the State that reflects consultation 
with all relevant stake holders. 
‘‘(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 review of publicly funded projects within 
the State to improve rail transportation safety, in-
cluding all major projects funded under section 130 
of title 23. 
‘‘(10) A performance evaluation of passenger 
rail services operating in the State, including pos-
sible improvements in those services, and a descrip-
tion of strategies to achieve those improvements. 
‘‘(11) 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. 
‘‘(12) A statement that the State is in compli-
ance with the requirements of section 22102. 
‘‘(b) LONG-RANGE SERVICE AND INVESTMENT PRO-
GRAM.— 
‘‘(1) PROGRAM
CONTENT.—A long-range rail 
investment program included in a State rail plan 
under subsection (a)(5) shall include the following 
matters: 
‘‘(A) A list of any rail capital projects ex-
pected to be undertaken or supported in whole 
or in part by the State. 
‘‘(B) A detailed funding plan for those 
projects. 
‘‘(2) PROJECT LIST CONTENT.—The list of 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 be-
tween— 
‘‘(i) public funding contributions for 
the projects; and 
‘‘(ii) the public benefits.
‘‘(3) CONSIDERATIONS FOR PROJECT LIST.—In 
preparing the list of freight and intercity passenger 
rail capital projects, a State rail transportation au-
thority should 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 involve-
ment. 
‘‘(B) Rail capacity and congestion effects. 
‘‘(C) Effects on highway, aviation, and 
maritime capacity, congestion, or safety. 
‘‘(D) Regional balance. 
‘‘(E) Environmental impact. 
‘‘(F) Economic and employment impacts. 
‘‘(G) Projected ridership and other service 
measures for passenger rail projects. 
‘‘§ 22506. Review 
‘‘The Secretary shall prescribe procedures for States 
to submit State rail plans for review under this title, in-
cluding standardized format and data requirements. State 
rail plans completed before the date of enactment of the 
Passenger Rail Investment and Improvement Act of 2008 
that substantially meet the requirements of this chapter,
as determined by the Secretary, shall be deemed by the 
Secretary to have met the requirements of this chapter.’’. 
(b) CONFORMING AMENDMENT.—The chapter anal-
ysis for subtitle V is amended by inserting the following 
after the item relating to chapter 223: 
‘‘225. STATE RAIL PLANS AND HIGH PRIORITY PROJECTS ..... 22501’’. 
SEC. 303. NEXT GENERATION CORRIDOR TRAIN EQUIP-
MENT POOL. 
(a) IN GENERAL.—Within 180 days after the date 
of enactment of this Act, Amtrak shall establish a Next 
Generation Corridor Equipment Pool Committee, com-
prised of representatives of Amtrak, the Federal Railroad 
Administration, host freight railroad companies, passenger 
railroad equipment manufacturers, and other passenger 
railroad operators as appropriate and interested States. 
The purpose of the Committee shall be to design, develop 
specifications for, and procure standardized next-genera-
tion corridor equipment. 
(b) FUNCTIONS.—The Committee may— 
(1) determine the number of different types of 
equipment required, taking into account variations 
in operational needs and corridor infrastructure; 
(2) establish a pool of equipment to be used on 
corridor routes funded by participating States; and
(3) subject to agreements between Amtrak and 
States, utilize services provided by Amtrak to design, 
maintain and remanufacture equipment. 
(c) 
COOPERATIVE
AGREEMENTS.—Amtrak 
and 
States participating in the Committee may enter into 
agreements for the funding, procurement, remanufacture, 
ownership and management of corridor equipment, includ-
ing equipment currently owned or leased by Amtrak and 
next-generation corridor equipment acquired as a result 
of the Committee’s actions, and may establish a corpora-
tion, which may be owned or jointly owned by Amtrak, 
participating States or other entities, to perform these 
functions. 
(d) FUNDING.—In addition to the authorization pro-
vided in section 103(2) of this Act, capital projects to 
carry out the purposes of this section shall be eligible for 
grants made pursuant to chapter 244 of title 49, United 
States Code. 
SEC. 304. RAIL COOPERATIVE RESEARCH PROGRAM. 
(a) ESTABLISHMENT AND CONTENT.—Chapter 249 
is amended by adding at the end the following: 
‘‘§ 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 ex-
isting rail passenger and freight technologies and 
speeds, incrementally enhanced rail systems and in-
frastructure, and new high-speed wheel-on-rail sys-
tems; 
‘‘(2) address ways to expand the transportation 
of international trade traffic by rail, enhance the ef-
ficiency 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 interconnected-
ness of commuter rail, passenger rail, freight rail, 
and other rail networks; and 
‘‘(4) give consideration to regional concerns re-
garding rail passenger and freight transportation, 
including meeting research needs common to des-
ignated high-speed corridors, long-distance rail serv-
ices, 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 at-
tributes of rail passenger and freight service;
100 
‘‘(2) to develop more accurate models for evalu-
ating the impact of rail passenger and freight serv-
ice, 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 trans-
portation, 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 Na-
tional 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 im-
provements to dedicated new infrastructure, taking 
into account the impact of such options on oper-
ations;
101 
‘‘(8) to improve maintenance, operations, cus-
tomer service, or other aspects of intercity rail pas-
senger and freight service; 
‘‘(9) to recommend objective methodologies for 
determining intercity passenger rail routes and serv-
ices, 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 develop-
ment of high-speed passenger rail operations con-
nected to or integrated with non-high-speed freight 
or passenger rail operations; 
‘‘(11) to recommend any legislative or regu-
latory changes necessary to foster further develop-
ment and implementation of high-speed passenger 
rail operations while ensuring the safety of such op-
erations that are connected to or integrated with 
non-high-speed freight or passenger rail operations; 
‘‘(12) to review rail crossing safety improve-
ments, including improvements using new safety 
technology; and 
‘‘(13) the development and use of train horn 
technology, including, but not limited to, broadband
102 
horns, with an emphasis on reducing train horn 
noise and its effect on communities. 
‘‘(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 tech-
nology transfer activities related to rail passenger 
and freight transportation. 
‘‘(2) MEMBERSHIP.—The advisory board shall 
include— 
‘‘(A) representatives of State transpor-
tation 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, rail-
way labor organizations, and environmental or-
ganizations. 
‘‘(d) NATIONAL ACADEMY OF SCIENCES.—The Sec-
retary may make grants to, and enter into cooperative 
agreements with, the National Academy of Sciences to 
carry out such activities relating to the research, tech-
103 
nology, and technology transfer activities described in sub-
section (b) as the Secretary deems appropriate.’’. 
(b) CLERICAL AMENDMENT.—The chapter analysis 
for chapter 249 is amended by adding at the end the fol-
lowing: 
‘‘24910. Rail cooperative research program.’’. 
SEC. 305. PASSENGER RAIL SYSTEM COMPARISON STUDY. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, the Comptroller General 
of the United States shall complete a study that compares 
the passenger rail system in the United States with the 
passenger rail systems in Canada, Germany, Great Brit-
ain, France, China, Spain, and Japan. 
(b) ISSUES TO BE STUDIED.—The study conducted 
under subsection (a) shall include a country-by-country 
comparison of— 
(1) the development of high-speed rail; 
(2) passenger rail operating costs; 
(3) the amount and payment source of rail line 
construction and maintenance costs; 
(4) the amount and payment source of station 
construction and maintenance costs; 
(5) passenger rail debt service costs; 
(6) passenger rail labor agreements and associ-
ated costs;
104 
(7) the net profit realized by the major pas-
senger rail service providers in each of the 4 most 
recent quarters; 
(8) the percentage of the passenger rail sys-
tem’s costs that are paid from general government 
revenues; and 
(9) the method used by the government to pro-
vide the subsidies described in paragraph (8). 
(c) REPORT.—Not later than 180 days after the com-
pletion of the study under subsection (a), the Comptroller 
General shall submit a report containing the findings of 
such study 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. 
TITLE IV—COMMUTER RAIL 
TRANSIT ENHANCEMENT 
SEC. 401. COMMUTER RAIL TRANSIT ENHANCEMENT. 
(a) AMENDMENT.—Part E of subtitle V is amended 
by adding at the end the following: 
‘‘CHAPTER 285—COMMUTER RAIL 
TRANSIT ENHANCEMENT 
‘‘Sec. 
‘‘28501. Definitions 
‘‘28502. Surface Transportation Board mediation of trackage use requests. 
‘‘28503. Surface Transportation Board mediation of rights-of-way use requests.
105 
‘‘28504. Applicability of other laws. 
‘‘28505. Rules and regulations. 
‘‘§ 28501. Definitions 
‘‘In this chapter— 
‘‘(1) the term ‘Board’ means the Surface 
Transportation Board; 
‘‘(2) the term ‘capital work’ means mainte-
nance, restoration, reconstruction, capacity enhance-
ment, or rehabilitation work on trackage that would 
be treated, in accordance with generally accepted ac-
counting principles, as a capital item rather than an 
expense; 
‘‘(3) the term ‘fixed guideway transportation’ 
means public transportation (as defined in section 
5302(a)(10)) provided on, by, or using a fixed guide-
way (as defined in section 5302(a)(4)); 
‘‘(4) the term ‘public transportation authority’ 
means a local governmental authority (as defined in 
section 5302(a)(6)) established to provide, or make 
a contract providing for, fixed guideway transpor-
tation; 
‘‘(5) the term ‘rail carrier’ means a person, 
other than a governmental authority, providing com-
mon carrier railroad transportation for compensation 
subject to the jurisdiction of the Board under chap-
ter 105;
106 
‘‘(6) the term ‘segregated fixed guideway facil-
ity’ means a fixed guideway facility constructed 
within the railroad right-of-way of a rail carrier but 
physically separate from trackage, including relo-
cated trackage, within the right-of-way used by a 
rail carrier for freight transportation purposes; and 
‘‘(7) the term ‘trackage’ means a railroad line 
of a rail carrier, including a spur, industrial, team, 
switching, side, yard, or station track, and a facility 
of a rail carrier. 
‘‘§ 28502. Surface Transportation Board mediation of 
trackage use requests 
‘‘If, after a reasonable period of negotiation, a public 
transportation authority cannot reach agreement with a 
rail carrier to use trackage of, and have related services 
provided by, the rail carrier for purposes of fixed guideway 
transportation, the public transportation authority or the 
rail carrier may apply to the Board for nonbinding medi-
ation. The Board shall conduct the nonbinding mediation 
in accordance with the mediation process of section 1109.4 
of title 49, Code of Federal Regulations, as in effect on 
the date of enactment of this section.
107 
‘‘§ 28503. Surface Transportation Board mediation of 
rights-of-way use requests 
‘‘If, after a reasonable period of negotiation, a public 
transportation authority cannot reach agreement with a 
rail carrier to acquire an interest in a railroad right-of- 
way for the construction and operation of a segregated 
fixed guideway facility, the public transportation authority 
or the rail carrier may apply to the Board for nonbinding 
mediation. The Board shall conduct the nonbinding medi-
ation in accordance with the mediation process of section 
1109.4 of title 49, Code of Federal Regulations, as in ef-
fect on the date of enactment of this section. 
‘‘§ 28504. Applicability of other laws 
‘‘Nothing in this chapter shall be construed to limit 
a rail transportation provider’s right under section 
28103(b) to enter into contracts that allocate financial re-
sponsibility for claims. 
‘‘§ 28505. Rules and regulations 
‘‘Not later than 180 days after the date of enactment 
of this section, the Board shall issue such rules and regu-
lations as may be necessary to carry out this chapter.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
of such subtitle is amended by adding after the item relat-
ing to chapter 283 the following: 
‘‘285. COMMUTER RAIL TRANSIT ENHANCEMENT ..................... 28501’’.
108 
SEC. 402. ROUTING EFFICIENCY DISCUSSIONS WITH AM-
TRAK. 
Amtrak shall engage in good faith discussions, with 
commuter rail entities and regional and State public 
transportation authorities operating on the same trackage 
owned by a rail carrier as Amtrak, with respect to the 
routing and timing of trains to most efficiently move a 
maximal number of commuter, intercity, and regional rail 
passengers, particularly during the peak times of com-
muter usage at the morning and evening hours marking 
the start and end of a typical work day, and with respect 
to the expansion and enhancement of commuter rail and 
regional rail public transportation service. 
TITLE V—HIGH-SPEED RAIL 
SEC. 501. HIGH-SPEED RAIL CORRIDOR PROGRAM. 
(a) IN GENERAL.—Chapter 261 is amended by add-
ing at the end thereof the following: 
‘‘§ 26106. High-speed rail corridor program 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
shall establish and implement a high-speed rail corridor 
program. 
‘‘(b) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) APPLICANT.—The term ‘applicant’ means 
a State, a group of States, an Interstate Compact, 
a public agency established by one or more States
109 
and having responsibility for providing high-speed 
rail service, or Amtrak. 
‘‘(2) CORRIDOR.—The term ‘corridor’ means a 
corridor designated by the Secretary pursuant to 
section 104(d)(2) of title 23. 
‘‘(3) CAPITAL
PROJECT.—The term ‘capital 
project’ means a project or program in a State rail 
plan developed under chapter 225 of this title for ac-
quiring, constructing, improving, or inspecting 
equipment, track, and track structures, or a facility 
of use in or for the primary benefit of high-speed 
rail service, expenses incidental to the acquisition or 
construction (including designing, engineering, loca-
tion surveying, mapping, environmental studies, and 
acquiring rights-of-way), payments for the capital 
portions of rail trackage rights agreements, highway- 
rail grade crossing improvements related to high- 
speed rail service, mitigating environmental impacts, 
communication and signalization improvements, relo-
cation assistance, acquiring replacement housing 
sites, and acquiring, constructing, relocating, and re-
habilitating replacement housing. 
‘‘(4) HIGH-SPEED RAIL.—The term ‘high-speed 
rail’ means intercity passenger rail service that is
110 
reasonably expected to reach speeds of at least 110 
miles per hour. 
‘‘(5) 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. 
‘‘(6) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Transportation. 
‘‘(7) STATE.—The term ‘State’ means any of 
the 50 States or the District of Columbia. 
‘‘(c) GENERAL AUTHORITY.—The Secretary may 
make grants under this section to an applicant to finance 
capital projects in high-speed rail corridors. 
‘‘(d) APPLICATIONS.—Each applicant seeking to re-
ceive a grant under this section to develop a high-speed 
rail corridor shall submit to the Secretary an application 
in such form and in accordance with such requirements 
as the Secretary shall establish. 
‘‘(e) COMPETITIVE GRANT SELECTION
AND CRI-
TERIA FOR GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary shall—
111 
‘‘(A) establish criteria for selecting among 
projects that meet the criteria specified in para-
graph (2); 
‘‘(B) conduct a national solicitation for ap-
plications; and 
‘‘(C) award grants on a competitive basis. 
‘‘(2) GRANT CRITERIA.—The Secretary may ap-
prove a grant under this section for a project only 
if the Secretary determines that the project— 
‘‘(A) is part of a State rail plan developed 
under chapter 225 of this title, or under the 
plan required by section 302 of the Passenger 
Rail Investment and Improvement Act of 2008; 
‘‘(B) is based on the results of preliminary 
engineering; 
‘‘(C) has the legal, financial, and technical 
capacity to carry out the project; and 
‘‘(D) is justified based on the ability of the 
project— 
‘‘(i) to generate national economic 
benefits, including creating jobs, expanding 
business opportunities, and impacting the 
gross domestic product; 
‘‘(ii) to increase mobility of United 
States citizens and reduce congestion, in-
112 
cluding impacts in the State, region, and 
Nation; and 
‘‘(iii) to otherwise enhance the na-
tional transportation system. 
‘‘(3) PROJECT
SELECTION
CRITERIA.—In se-
lecting a project under this section, the Secretary 
shall consider the extent to which the project— 
‘‘(A) makes a substantial contribution to 
providing the infrastructure and equipment re-
quired to complete a high-speed rail corridor; 
‘‘(B) leverages Federal investment by en-
couraging non-Federal financial commitments, 
including evidence of stable and dependable fi-
nancing sources to construct, maintain, and op-
erate the high-speed rail corridor and service; 
and 
‘‘(C) helps protect the environment. 
‘‘(f) FEDERAL SHARE.—The Federal share of the 
cost of a project financed under this section shall not ex-
ceed 80 percent of the project net capital cost. 
‘‘(g) ISSUANCE OF REGULATIONS.—Not later than 1 
year after the date of enactment of this section, the Sec-
retary shall issue regulations for carrying out this section. 
‘‘(h) AUTHORIZATION.—There are authorized to be 
appropriated to the Secretary to carry out this section
113 
$350,000,000 for each of fiscal years 2009 through 
2013.’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections for chapter 261 is amended by adding after the 
item relating to section 26105 the following new item: 
‘‘26106. High-speed rail corridor program.’’. 
SEC. 502. ADDITIONAL HIGH-SPEED PROJECTS. 
(a) SOLICITATION OF PROPOSALS.— 
(1) IN GENERAL.— 
(A) NORTHEAST
CORRIDOR.—Not later 
than 60 days after the date of enactment of 
this Act, the Secretary of Transportation shall 
issue a request for proposals for projects for the 
financing, design, construction, and operation 
of an initial high-speed rail system operating 
between Washington, DC, and New York City. 
Such proposals shall be submitted to the Sec-
retary not later than 150 days after the publi-
cation of such request for proposals. 
(B) OTHER PROJECTS.—After a report is 
transmitted under subsection (e) with respect to 
projects described in subparagraph (A), the 
Secretary of Transportation may issue a re-
quest for proposals for additional projects for 
the financing, design, construction, and oper-
ation of a high-speed rail system operating on
114 
any other corridor in the United States. Such 
proposals shall be submitted to the Secretary 
not later than 150 days after the publication of 
such request for proposals. 
(2) CONTENTS.—A proposal submitted under 
paragraph (1) shall include— 
(A) the names and qualifications of the 
persons submitting the proposal; 
(B) a detailed description of the proposed 
route and its engineering characteristics and of 
all infrastructure improvements required to 
achieve the planned operating speeds and trip 
times; 
(C) how the project would comply with 
Federal rail safety regulations which govern the 
track and equipment safety requirements for 
high-speed rail operations; 
(D) the peak and average operating speeds 
to be attained; 
(E) the type of equipment to be used, in-
cluding any technologies for— 
(i) maintaining an operating speed the 
Secretary determines appropriate; or 
(ii) in the case of a proposal sub-
mitted under paragraph (1)(A), achieving
115 
less than 2-hour express service between 
Washington, DC, and New York City; 
(F) the locations of proposed stations, 
identifying, in the case of a proposal submitted 
under paragraph (1) (A), a plan allowing for 
station stops at or in close proximity to the 
busiest Amtrak stations; 
(G) a detailed description of any proposed 
legislation needed to facilitate the project; 
(H) a financing plan identifying— 
(i) sources of revenue; 
(ii) the amount of any proposed public 
contribution toward capital costs or oper-
ations; 
(iii) ridership projections; 
(iv) the amount of private investment; 
(v) projected revenue; 
(vi) annual operating and capital 
costs; 
(vii) the amount of projected capital 
investments required (both initially and in 
subsequent years to maintain a state of 
good repair); and 
(viii) the sources of the private invest-
ment required, including the identity of
116 
any person or entity that has made or is 
expected to make a commitment to provide 
or secure funding and the amount of such 
commitment; 
(I) a description of how the project would 
contribute to the development of a national 
high-speed rail system, and an intermodal plan 
describing how the system will connect with 
other transportation links; 
(J) labor protections that would comply 
with the requirements of section 504; 
(K) provisions to ensure that the proposal 
will be designed to operate in harmony with ex-
isting and projected future intercity, commuter, 
and freight service; 
(L) provisions for full fair market com-
pensation for any asset, property right or inter-
est, or service acquired from, owned, or held by 
a private person or non-Federal entity that 
would be acquired, impaired, or diminished in 
value as a result of a project, except as other-
wise agreed to by the private person or entity; 
and
117 
(M) a detailed description of the environ-
mental impacts of the project, and how any ad-
verse impacts would be mitigated. 
(3) DOCUMENTS.—Documents submitted or de-
veloped pursuant to this subsection shall not be sub-
ject to section 552 of title 5, United States Code. 
(b) DETERMINATION OF COST EFFECTIVENESS AND 
ESTABLISHMENT OF COMMISSIONS.—Not later than 60 
days after receipt of a proposal under subsection (a), the 
Secretary of Transportation shall— 
(1) make a determination as to whether the 
proposal is cost effective; and 
(2) for each corridor for which one or more cost 
effective proposals are received, establish a commis-
sion under subsection (c). 
(c) COMMISSIONS.— 
(1) MEMBERS.—The commission referred to in 
subsection (b)(2) shall consist of— 
(A) the governor of the affected State or 
States, or their respective designees; 
(B) a rail labor representative, a represent-
ative from a rail freight carrier using the rel-
evant corridor, and a commuter authority using 
the relevant corridor, appointed by the Sec-
retary of Transportation, in consultation with
118 
the chairman and ranking minority member of 
the Committee on Transportation and Infra-
structure of the House of Representatives and 
the Committee on Commerce, Science, and 
Transportation of the Senate; 
(C) the Secretary of Transportation or his 
designee; 
(D) the president of Amtrak or his des-
ignee; and 
(E) the mayors of the three largest munici-
palities serviced by the proposed high-speed rail 
corridor. 
(2) CHAIRPERSON AND VICE-CHAIRPERSON SE-
LECTION.—The Chairperson and Vice Chairperson 
shall be elected from among members of the Com-
mission. 
(3) QUORUM AND VACANCY.— 
(A) QUORUM.—A majority of the members 
of the Commission shall constitute a quorum. 
(B) VACANCY.—Any vacancy in the Com-
mission shall not affect its powers and shall be 
filled in the same manner in which the original 
appointment was made. 
(d) COMMISSION CONSIDERATION.—
119 
(1) IN GENERAL.—Each commission established 
under subsection (b)(2) shall be responsible for re-
viewing the proposal or proposals with respect to 
which the commission was established, and not later 
than 90 days after the establishment of the commis-
sion, shall transmit to the Secretary, and to the 
chairman and ranking minority member of the Com-
mittee on Transportation and Infrastructure of the 
House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Sen-
ate, a report which includes— 
(A) a summary of each proposal received; 
(B) a ranking of the order of the proposals 
according to cost effectiveness, advantages over 
existing services, projected revenue, and cost 
and benefit to the public and private parties; 
(C) an indication of which proposal or pro-
posals are recommended by the commission; 
and 
(D) an identification of any proposed legis-
lative provisions which would facilitate imple-
mentation of the recommended project. 
(2) VERBAL
PRESENTATION.—Proposers shall 
be given an opportunity to make a verbal presen-
tation to the commission to explain their proposals.
120 
(e) SELECTION BY SECRETARY.—Not later than 60 
days after receiving a report from a commission under 
subsection (d)(1), the Secretary of Transportation shall 
transmit to the Congress a report that ranks all of the 
recommended proposals according to cost effectiveness, 
advantages over existing services, projected revenue, and 
cost and benefit to the public and private parties. 
(f) NORTHEAST CORRIDOR ECONOMIC DEVELOP-
MENT STUDY.—Not later than 9 months after the date 
of enactment of this Act, the Secretary of Transportation 
shall transmit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of 
the Senate the results of an economic development study 
of Amtrak’s Northeast Corridor service between Wash-
ington, DC, and New York City. Such study shall examine 
how to achieve maximum utilization of the Northeast Cor-
ridor as a transportation asset, including— 
(1) maximizing the assets of the Northeast Cor-
ridor for potential economic development purposes; 
(2) real estate improvement and financial re-
turn; 
(3) improved intercity, commuter, and freight 
services;
121 
(4) optimum utility utilization in conjunction 
with potential separated high-speed rail passenger 
services; and 
(5) any other means of maximizing the eco-
nomic potential of the Northeast Corridor. 
SEC. 503. HIGH-SPEED RAIL STUDY. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary of Transportation shall con-
duct— 
(1) an alternatives analysis of the Secretary’s 
December 1, 1998, extension of the designation of 
the Southeast High-Speed Rail Corridor as author-
ized under section 104(d)(2) of title 23, United 
States Code; 
(2) a feasibility analysis regarding the expan-
sion of the South Central High-Speed Rail Corridor 
to the Port of Houston, Texas; 
(3) a feasibility analysis regarding the expan-
sion of the South Central High-Speed Rail Corridor 
to Memphis, Tennessee; and 
(4) a feasibility analysis regarding the expan-
sion of the South Central High-Speed Rail Corridor 
south of San Antonio to a location in far south 
Texas to be chosen at the discretion of the Sec-
retary.
122 
These analyses shall consider changes that have occurred 
in the region’s population, anticipated patterns of popu-
lation growth, connectivity with other modes of transpor-
tation, ability of the designation to reduce regional traffic 
congestion, and the ability of current and proposed 
routings to meet the needs of tourists. The Secretary shall 
submit recommendations to the Committee on Transpor-
tation and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Transpor-
tation of the Senate and conduct a redesignation of one 
or both corridors if necessary. 
SEC. 504. GRANT CONDITIONS. 
(a) 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, or the amendments made by 
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,
123 
and supplies mined, produced, or manufac-
tured in the United States. 
(B) DE MINIMIS AMOUNT.—Subparagraph 
(A) applies only to a purchase in an total 
amount that is not less than $1,000,000. 
(2) EXEMPTIONS.—On application of a recipi-
ent, the Secretary may exempt a recipient from the 
requirements of this subsection if the Secretary de-
cides that, for particular articles, material, or sup-
plies— 
(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, pro-
duced, 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 sub-
section, the term ‘‘the United States’’ means the 
States, territories, and possessions of the United 
States and the District of Columbia.
124 
(b) OPERATORS DEEMED RAIL CARRIERS AND EM-
PLOYERS FOR CERTAIN PURPOSES.—A person that con-
ducts rail operations over rail infrastructure constructed 
or improved with funding provided in whole or in part in 
a grant made under this title, or the amendments made 
by this title, shall be considered a rail carrier as defined 
in section 10102(5) of title 49, United States Code, for 
purposes of this title and any other statute that adopts 
that definition or in which that definition applies, includ-
ing— 
(1) the Railroad Retirement Act of 1974 (45 
U.S.C. 231 et seq.); 
(2) the Railway Labor Act (43 U.S.C. 151 et 
seq.); and 
(3) the Railroad Unemployment Insurance Act 
(45 U.S.C. 351 et seq.). 
(c) GRANT CONDITIONS.—The Secretary shall re-
quire as a condition of making any grant under this title, 
or the amendments made by this title, for a project that 
uses rights-of-way owned by a railroad that— 
(1) a written agreement exist between the appli-
cant and the railroad regarding such use and owner-
ship, including— 
(A) any compensation for such use;
125 
(B) assurances regarding the adequacy of 
infrastructure capacity to accommodate both 
existing and future freight and passenger oper-
ations; 
(C) an assurance by the railroad that col-
lective bargaining agreements with the rail-
road’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 
(D) an assurance that an applicant com-
plies with liability requirements consistent with 
section 28103 of title 49, United States Code; 
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 Na-
tional Railroad Passenger Corporation is re-
quired to comply with those standards for con-
struction work financed under an agreement 
made under section 24308(a) of title 49, United 
States Code; and
126 
(B) the protective arrangements estab-
lished under section 504 of the Railroad Revi-
talization and Regulatory Reform Act of 1976 
(45 U.S.C. 836) with respect to employees af-
fected by actions taken in connection with the 
project to be financed in whole or in part by 
grants under this chapter. 
(d) REPLACEMENT OF EXISTING INTERCITY PAS-
SENGER 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, or the amendments 
made by this title, and replaces intercity rail pas-
senger service that was provided by Amtrak, unless 
such service was provided solely by Amtrak to an-
other entity, as of such date shall enter into an 
agreement with the authorized bargaining agent or 
agents for adversely affected employees of the prede-
cessor provider that— 
(A) gives each such qualified employee of 
the predecessor provider priority in hiring ac-
cording to the employee’s seniority on the pred-
127 
ecessor provider for each position with the re-
placing 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 oc-
curs concurrent with or within a reasonable 
time before the commencement of the replacing 
entity’s rail passenger service, the replacing en-
tity shall give written notice of its plan to re-
place existing rail passenger service to the au-
thorized collective bargaining agent or agents 
for the potentially adversely affected employees 
of the predecessor provider at least 90 days be-
fore 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