I 
108TH CONGRESS 
1ST SESSION H. R. 1617
To establish and provide for funding for a National Rail Infrastructure 
Program. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 3, 2003
Mr. LIPINSKI (for himself, Mr. NADLER, Mr. BLUMENAUER, Mr. FILNER, Ms. 
NORTON, Ms. CORRINE BROWN of Florida, Ms. MILLENDER-MCDONALD, 
Mr. COSTELLO, Mr. DEFAZIO, Mr. GUTIERREZ, Mr. DAVIS of Illinois, 
Ms. SCHAKOWSKY, Mr. MANZULLO, Mr. EMANUEL, Mr. FARR, Mr. 
KUCINICH, Ms. CARSON of Indiana, Mr. RUSH, Mr. JACKSON of Illinois, 
Mr. HOLDEN, Mr. SANDERS, Mr. FRANK of Massachusetts, Ms. BERK-
LEY, Mr. EVANS, Mr. BAIRD, and Mr. CUMMINGS) introduced the fol-
lowing bill; which was referred to the Committee on Transportation and 
Infrastructure, and in addition to the Committee on Ways and Means, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To establish and provide for funding for a National Rail 
Infrastructure Program.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Rail Infra-
structure Program Act’’.
TITLE I—NATIONAL RAIL 
INFRASTRUCTURE PROGRAM 
SEC. 101. ESTABLISHMENT. 
The Secretary of Transportation shall establish a Na-
tional Rail Infrastructure Program to provide grants for 
projects that address railroad infrastructure and systems 
deficiencies in order to provide substantial public benefits 
such as mitigating highway traffic congestion, reducing 
transportation emissions, reducing energy used in trans-
portation, or improving the overall efficiency of railroad 
operations. 
SEC. 102. ELIGIBLE PROJECTS. 
(a) IN GENERAL.—Projects eligible for funding under 
this title shall include projects to maintain and increase 
track and intermodal yard capacity, to acquire rights-of-
way for future expansion, to separate railroad and road 
crossings and make other railroad and road interface im-
provements, to separate rail-to-rail crossings, to integrate 
railroad systems, and to construct, repair, and rehabilitate 
track and related supporting structures. 
(b) NONELIGIBLE PURPOSES.—Funding shall not be 
provided under this title for operating expenses, acquisi-
tion of rolling stock, payment of debt, or construction or 
repair of maintenance facilities, passenger facilities at sta-
tions, or other ancillary railroad business structures.
SEC. 103. INCLUSION IN STATE PLANS. 
A project shall not be funded under this title unless 
it is included in—
(1) a long-range transportation plan prepared 
under section 134(g) of title 23, United States Code; 
(2) a State plan developed under section 135 of 
title 23, United States Code; or 
(3) a transportation improvement program 
under section 5304 of title 49, United States Code. 
SEC. 104. COST SHARING. 
At least 20 percent of the costs of a project for which 
funding is provided under this title shall be provided by 
State, local, and other non-Federal public sources. 
SEC. 105. ALLOCATION OF FUNDS. 
(a) FORMULA AMOUNTS.—
(1) PERCENTAGE.—The Secretary of Transpor-
tation shall provide 80 percent of the amount avail-
able for grants under this title for each fiscal year 
to States according to the formula described in para-
graph (2), in grants for eligible projects in the 
States. 
(2) FORMULA.—Amounts described in para-
graph (1) shall be distributed among the States ac-
cording to a formula designed by the Secretary of 
Transportation to weigh equally for each State—
(A) the number of rail miles in the State;
(B) the number of rail cars loaded in the 
State; 
(C) the number of rail cars unloaded in the 
State; and 
(D) the number of railroad and public road 
grade crossings in the State. 
(b) SECRETARY’S DISCRETIONARY AMOUNTS.—The 
Secretary of Transportation shall use 20 percent of the 
amount available for grants under this title for each fiscal 
year to directly make grants for eligible projects of na-
tional significance, with emphasis on projects with the 
greatest public benefit. 
SEC. 106. LABOR STANDARDS. 
The Secretary of Transportation shall ensure that la-
borers and mechanics employed by contractors and sub-
contractors in construction work on projects funded under 
this title will be paid wages not less than those prevailing 
on similar construction in the locality, as determined by 
the Secretary of Labor under the Act of March 3, 1931 
(known as the Davis-Bacon Act) (40 U.S.C. 276a–276a–
5). 
SEC. 107. DISADVANTAGED BUSINESS ENTERPRISES. 
(a) GENERAL RULE.—Except to the extent that the 
Secretary of Transportation determines otherwise, not less 
than 10 percent of the amounts made available under this
Act shall be expended with small business concerns owned
and controlled by socially and economically disadvantaged 
individuals. 
(b) DEFINITIONS.—The terms used in this section 
have the meaning given those terms in section 1101(b)(2) 
of the Transportation Equity Act For the 21st Century 
(23 U.S.C. 101 note). 
SEC. 108. DEFINITIONS. 
For purposes of this title—
(1) the term ‘‘rail miles’’ means route miles, 
not track miles; and 
(2) the term ‘‘railroad’’ means freight, intercity 
passenger, and commuter rail transportation oper-
ated as part of the general system of rail transpor-
tation.
TITLE II—FUNDING 
SEC. 201. EXCISE TAX ON SALE OF CERTAIN TRAIN EQUIP-
MENT. 
(a) IN GENERAL.—Chapter 32 of the Internal Rev-
enue Code of 1986 (relating to manufacturers excise 
taxes) is amended by inserting after subchapter D the fol-
lowing new subchapter: 
‘‘Subchapter E—Railroad Locomotives and 
Rolling Stock
‘‘Sec. 4191. Imposition of tax.
‘‘SEC. 4191. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—There is hereby imposed on the 
sale of any specified railroad equipment by the manufac-
turer, producer, or importer a tax equal to 5 percent of 
the price for which so sold. 
‘‘(b) SPECIFIED RAILROAD EQUIPMENT.—For pur-
poses of this section, the term ‘specified railroad equip-
ment’ means—
‘‘(1) any railroad locomotive, and 
‘‘(2) any other railroad rolling stock. 
‘‘(c) SEPARATE PURCHASE OF PARTS AND ACCES-
SORIES.—Under regulations prescribed by the Secretary—
‘‘(1) IN GENERAL.—If—
‘‘(A) the owner, lessee, or operator of any 
specified railroad equipment installs (or causes 
to be installed) any part or accessory on such 
equipment, and 
‘‘(B) such installation is not later than the 
date 6 months after the date such equipment 
was first placed in service, 
then there is hereby imposed on such installation a 
tax equal to 5 percent of the price of such part or 
accessory and its installation. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply if the part or accessory installed is a replace-
ment part or accessory.
‘‘(3) INSTALLERS
SECONDARILY
LIABLE
FOR 
TAX.—The owners of the trade or business installing 
the parts or accessories shall be secondarily liable 
for the tax imposed by paragraph (1).’’
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 32 of such Code is amended by in-
serting after the item relating to subchapter D the fol-
lowing new item:
‘‘Subchapter E. Railroad locomotives and rolling stock.’’
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2003. 
SEC. 202. TAX ON RAIL TRANSPORTATION OF PERSONS OR 
PROPERTY. 
(a) IN GENERAL.—Chapter 33 of the Internal Rev-
enue Code of 1986 is amended by inserting before sub-
chapter B the following new subchapter: 
‘‘Subchapter A—Transportation by Rail
‘‘Sec. 4241. Transportation of persons. 
‘‘Sec. 4242. Transportation of property. 
‘‘Sec. 4243. Definitions and special rules.
‘‘SEC. 4241. TRANSPORTATION OF PERSONS. 
‘‘(a) IN GENERAL.—There is hereby imposed on the 
amount paid for taxable rail transportation of any person 
a tax equal to—
‘‘(1) 5 percent of the amount so paid in the 
case of taxable rail transportation by commuter rail, 
and 
‘‘(2) 10 percent of the amount so paid in any 
other case. 
(b) BY WHOM PAID.—The tax imposed by this sec-
tion shall be paid by the person making the payment sub-
ject to the tax. 
‘‘SEC. 4242. TRANSPORTATION OF PROPERTY. 
‘‘(a) IN GENERAL.—there is hereby imposed upon the 
amount paid within or without the United States for the 
taxable rail transportation of property a tax equal to 1 
percent of the amount so paid for such transportation. 
The tax imposed by this subsection shall apply only to 
amounts paid to a person engaged in the business of 
transporting property by rail for hire. 
‘‘(b) BY WHOM PAID.—
‘‘(1) IN
GENERAL.—Except as provided by 
paragraph (2), the tax imposed by subsection (a) 
shall be paid by the person making the payment sub-
ject to tax. 
‘‘(2) PAYMENTS MADE OUTSIDE THE UNITED 
STATES.—If a payment subject to tax under sub-
section (a) is made outside the United States and
the person making such payment does not pay such 
tax, such tax—
‘‘(A) shall be paid by the person to whom 
the property is delivered in the United States 
by the person furnishing the last segment of the 
taxable transportation in respect of which such 
tax is imposed, and 
‘‘(B) shall be collected by the person fur-
nishing the last segment of such taxable trans-
portation. 
‘‘SEC. 4243. DEFINITIONS AND SPECIAL RULES. 
‘‘(a) TAXABLE RAIL TRANSPORTATION.—For pur-
poses of this subchapter, the term ‘taxable rail transpor-
tation’ means transportation by rail within the United 
States, other than by mass transit. 
‘‘(b) TRANSPORTATION.—For purposes of this sub-
chapter, the term ‘transportation’ includes layover or wait-
ing time and movement of the train in deadhead service. 
‘‘(c) SPECIAL RULES.—
‘‘(1) PAYMENTS MADE OUTSIDE THE UNITED 
STATES
FOR
PREPAID
ORDERS.—If the payment 
upon which tax is imposed by section 4241 is made 
outside the United States for a prepaid order, ex-
change order, or similar order, the person furnishing
the initial transportation pursuant to such order 
shall collect the amount of the tax. 
‘‘(2) TAX DEDUCTED UPON REFUNDS.—Every 
person who refunds any amount with respect to a 
ticket or order which was purchased without pay-
ment of the tax imposed by section 4241 shall de-
duct from the amount refundable, to the extent 
available, any tax due under such section as a result 
of the use of a portion of the transportation pur-
chased in connection with such ticket or order, and 
shall report to the Secretary the amount of any such 
tax remaining uncollected. 
‘‘(3) PAYMENT OF TAX.—Where any tax im-
posed by section 4241 is not paid at the time pay-
ment for transportation is made, then, under regula-
tions prescribed by the Secretary, to the extent that 
such tax is not collected under any other provision 
of this subchapter, such tax shall be paid by the car-
rier providing the initial segment of such transpor-
tation in the United States.’’
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 33 of such Code is amended by in-
serting before the item relating to subchapter B the fol-
lowing new item:
‘‘Subchapter A. Transportation by rail.’’
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2003. 
SEC. 203. NATIONAL RAIL INFRASTRUCTURE PROGRAM 
TRUST FUND. 
(a) IN GENERAL.—Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 (relating to trust fund 
code) is amended by adding at the end the following new 
section: 
‘‘SEC. 9511. NATIONAL RAIL INFRASTRUCTURE PROGRAM 
TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘National Rail Infrastructure Program 
Trust Fund’, consisting of such amounts as may be appro-
priated or credited to such Trust Fund as provided in this 
section or section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the National Rail Infrastructure Pro-
gram Trust Fund amounts equivalent to—
‘‘(1) the taxes received in the Treasury under 
section 4191 (relating to taxes on railroad loco-
motives and rolling stock), 
‘‘(2) 10 percent of all customs duties received 
in the Treasury after September 30, 2003,
‘‘(3) the taxes received in the Treasury under 
section 4041 or 4081 to the extent attributable to 
fuel used in a train, and 
‘‘(4) 10 percent of all royalties received by the 
United States attributable to the removal of oil or 
gas from Federal lands. 
‘‘(c) EXPENDITURES.—Amounts in the National Rail 
Infrastructure Program Trust Fund shall be available, as 
provided in appropriation Acts, only for purposes of mak-
ing expenditures to carry out title I of the National Rail 
Infrastructure Program Act.’’
(b) CLERICAL AMENDMENT.—The table of sections 
for such subchapter is amended by adding at the end the 
following new item:
‘‘Sec. 9511. National Rail Infrastructure Program Trust Fund.’’
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