I
107TH CONGRESS
1ST SESSION
H. R. 3166
To provide funding for infrastructure investment to restore the United States
economy and to enhance the security of transportation and environmental
facilities throughout the United States.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 24, 2001
Mr. BORSKI (for himself, Mr. COSTELLO, Mr. OBERSTAR, Mr. HOLDEN, Mr.
MCGOVERN, Ms. BERKLEY, Mr. RAHALL, Mr. LIPINSKI, Mr. FILNER,
Mr. DEFAZIO, Mr. NADLER, Mr. MASCARA, Mr. CLEMENT, Mr.
CUMMINGS, Mr. BARCIA, Ms. BROWN of Florida, Mr. LAMPSON, Mr.
BAIRD, Mr. BLUMENAUER, Ms. MILLENDER-MCDONALD, Mr. LARSEN of
Washington, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. BOSWELL,
Mr. PASCRELL, Mr. THOMPSON of California, Mr. INSLEE, Mr. MENEN-
DEZ, Mr. SANDLIN, Mr. BERRY, Mr. HONDA, Mr. CARSON of Oklahoma,
Mr. CAPUANO, and Ms. NORTON) introduced the following bill; which was
referred to the Committee on Transportation and Infrastructure, and in
addition to the Committees on Ways and Means, Energy and Commerce,
Armed Services, Financial Services, and Agriculture, 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 con-
cerned
A BILL
To provide funding for infrastructure investment to restore
the United States economy and to enhance the security
of transportation and environmental facilities throughout
the United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Rebuild America: Financing Infrastructure Renewal and
Security for Transportation Act of 2001’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I—RAIL INFRASTRUCTURE INVESTMENT
Subtitle A—Credit for Amtrak Bonds
Sec. 101. Credit to holders of qualified Amtrak bonds.
Subtitle B—High-Speed Rail Provisions
Sec. 111. Department of Transportation approval for qualified Amtrak
projects.
Sec. 112. Multiyear capital spending plan and oversight.
Sec. 113. Issuance of regulations.
Sec. 114. Sense of Congress regarding effect on Amtrak funding.
Sec. 115. Effective date.
Subtitle C—Amtrak Capital Investment
Sec. 121. Authorization of appropriations.
Subtitle D—Capital Investment for Railroad Rehabilitation
Sec. 131. Capital grants for railroad track.
Sec. 132. Regulatory procedure amendments.
TITLE II—ENVIRONMENTAL INFRASTRUCTURE INVESTMENT
Sec. 201. General authority for capitalization grants.
Sec. 202. Capitalization grants agreements.
Sec. 203. Water pollution control revolving funds.
Sec. 204. Authorization of appropriations for clean water State revolving funds.
Sec. 205. Wet weather.
Sec. 206. Safe drinking water State revolving funds.
TITLE III—HIGHWAY INFRASTRUCTURE INVESTMENT
Sec. 301. Federal-aid highway program obligation ceiling.
Sec. 302. Limitations on credit amounts.
TITLE IV—TRANSIT INFRASTRUCTURE INVESTMENT
Sec. 401. Additional authorizations for formula grants.
Sec. 402. Federal transit program obligation ceiling.
Sec. 403. Uniform dollar limitation for all types of transportation fringe bene-
fits.
TITLE V—AVIATION INFRASTRUCTURE INVESTMENT
Sec. 501. Increased funding for airport planning and development.
Sec. 502. Increased funding for airway facilities improvement.
TITLE VI—MARITIME INFRASTRUCTURE INVESTMENT
Sec. 601. Marine transportation system infrastructure.
TITLE VII—ECONOMIC DEVELOPMENT INFRASTRUCTURE
INVESTMENT
Sec. 701. Public works and economic development.
Sec. 702. Appalachian regional development.
Sec. 703. Delta regional development.
TITLE VIII—WATER RESOURCES INFRASTRUCTURE INVESTMENT
Sec. 801. Increased funding for Corps of Engineers projects.
TITLE IX—PUBLIC BUILDINGS INFRASTRUCTURE INVESTMENT
Sec. 901. Security enhancements for GSA properties.
Sec. 902. Security enhancements for John F. Kennedy Center.
Sec. 903. Security enhancements for Smithsonian Institution.
TITLE X—GENERAL PROVISIONS
Sec. 1001. Priority consideration for security projects.
Sec. 1002. Temporary waiver of non-Federal share.
Sec. 1003. Maintenance of effort.
Sec. 1004. Labor standards.
Sec. 1005. Buy America.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds the following:
(1) In 2001, the United States economy has
slowed considerably.
(2) The annual rate of growth of the gross do-
mestic product fell to 0.2 percent in the second
quarter of 2001.
(3) Gross private domestic investment declined
12.3 percent in the first two quarters of 2001 com-
pared to the same period in 2000.
(4) In September 2001, industrial production
declined for the twelfth consecutive month, the long-
est period of decline in the last 50 years.
(5) The unemployment rate has continued to
rise in 2001.
(6) In September 2001, payroll employment de-
creased by 199,000 jobs, including continued stag-
nant construction employment and significant job
losses (93,000) in manufacturing.
(7) In September 2001, factory jobs declined
for the fourteenth consecutive month.
(8) In that 14-month period, a total of
1,100,000 manufacturing jobs were lost.
(9) In each week of October 2001, almost
500,000 individuals filed first-time unemployment
claims, the highest number of claims since 1992.
(10) Transportation-related goods and services
contribute more than $980,000,000,000 annually to
the United States economy.
(11) The terrorist attacks on the United States
of September 11, 2001, have been particularly dev-
astating to transportation-related industries and
have accelerated the decline in the Nation’s econ-
omy.
(12) The airline industry alone has announced
more than 100,000 layoffs since the terrorist attacks
of September 11th.
(13) The terrorist attacks of September 11th
also highlighted the vulnerabilities of the United
States transportation system to terrorist attacks.
(14) Terrorists often target transportation sys-
tems for attack.
(15) According to the Department of State,
transportation and transportation infrastructure
were the target of 42 percent of all international ter-
rorist attacks in 1998.
(16) The United States transportation and en-
vironmental infrastructure systems remain vulner-
able to terrorist attacks and the Nation must invest
the necessary resources to enhance the security of
its systems.
(17) The Nation also continues to face enor-
mous non-security transportation and environmental
infrastructure needs.
(18) In 68 urban areas, highway congestion
alone costs travelers 4,500,000,000 hours of delay,
6,800,000,000 
gallons 
of 
wasted 
fuel, 
and
$78,000,000,000 in cost productivity and wasted
fuel (more than three times the $22,000,000,000
cost in 1982).
(19) Similarly, States estimate that 40 percent
of assessed waters, or 20,000 discrete areas of the
Nation’s lakes, rivers, streams, and coastal waters,
do not meet State water quality standards.
(20) States, cities, transit authorities, airport
authorities, and other entities have ready-to-go in-
frastructure projects, which will create long-term
capital assets for the United States and which can
help stimulate the Nation’s economy.
(21) Each $1,000,000,000 invested in infra-
structure construction creates approximately 42,000
jobs and $2,100,000,000 in economic activity.
(b) PURPOSES.—The purposes of this Act are as fol-
lows:
(1) To invest in the Nation’s infrastructure to
enhance the security of rail, environmental, highway,
transit, aviation, maritime, water resources, and
public buildings infrastructure.
(2) To create jobs and economic activity to put
people back to work and stimulate the Nation’s
economy.
(3) To create long-term capital assets for the
Nation that will help the United States address its
enormous infrastructure needs and improve its eco-
nomic productivity.
(4) To demonstrate the commitment of the
Federal Government to economic recovery, thereby
increasing the confidence of consumers and busi-
nesses.
TITLE I—RAIL
INFRASTRUCTURE INVESTMENT
Subtitle A—Credit for Amtrak
Bonds
SEC. 101. CREDIT TO HOLDERS OF QUALIFIED AMTRAK
BONDS.
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
credits against tax) is amended by adding at the end the
following new subpart:
‘‘Subpart H—Nonrefundable Credit for Holders of
Qualified Amtrak Bonds
‘‘Sec. 54. Credit to holders of qualified Amtrak bonds.
‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK
BONDS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified Amtrak bond on a credit al-
lowance date of such bond which occurs during the taxable
year, there shall be allowed as a credit against the tax
imposed by this chapter for such taxable year an amount
equal to the sum of the credits determined under sub-
section (b) with respect to credit allowance dates during
such year on which the taxpayer holds such bond.
‘‘(b) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—The amount of the credit
determined under this subsection with respect to any
credit allowance date for a qualified Amtrak bond is
25 percent of the annual credit determined with re-
spect to such bond.
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified Amtrak bond
is the product of—
‘‘(A) the applicable credit rate, multiplied
by
‘‘(B) the outstanding face amount of the
bond.
‘‘(3) APPLICABLE CREDIT RATE.—For purposes
of paragraph (2), the applicable credit rate with re-
spect to an issue is the rate equal to an average
market yield (as of the day before the date of sale
of the issue) on outstanding long-term corporate
debt obligations (determined under regulations pre-
scribed by the Secretary).
‘‘(4) CREDIT ALLOWANCE DATE.—For purposes
of this section, the term ‘credit allowance date’
means—
‘‘(A) March 15,
‘‘(B) June 15,
‘‘(C) September 15, and
‘‘(D) December 15.
Such term includes the last day on which the bond
is outstanding.
‘‘(5) SPECIAL RULE FOR ISSUANCE AND RE-
DEMPTION.—In the case of a bond which is issued
during the 3-month period ending on a credit allow-
ance date, the amount of the credit determined
under this subsection with respect to such credit al-
lowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-
month period during which the bond is outstanding.
A similar rule shall apply when the bond is re-
deemed.
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—
‘‘(1) IN GENERAL.—The credit allowed under
subsection (a) for any taxable year shall not exceed
the excess of—
‘‘(2) the bond is issued by the National Rail-
road Passenger Corporation, is in registered form,
and meets the bond limitation requirements under
subsection (f),
‘‘(3) the issuer designates such bond for pur-
poses of this section,
‘‘(4) the issuer certifies that it meets the State
contribution requirement of subsection (k) with re-
spect to such project, as in effect on the date of the
enactment of this section,
‘‘(5) the issuer certifies that it has obtained the
written approval of the Secretary of Transportation
for such project in accordance with section 26301 of
title 49, United States Code, as in effect on the date
of the enactment of this section,
‘‘(6) the term of each bond which is part of
such issue does not exceed 20 years,
‘‘(7) the payment of principal with respect to
such bond is the obligation of the National Railroad
Passenger Corporation, and
‘‘(8) the issue meets the requirements of sub-
section (g) (relating to arbitrage).
‘‘(f) LIMITATIONS
ON AMOUNT
OF BONDS DES-
IGNATED.—
‘‘(1) IN GENERAL.—There is a qualified Am-
trak bond limitation for each fiscal year. Such limi-
tation is—
‘‘(A) $1,500,000,000 for each of the fiscal
years 2002 through 2011, and
‘‘(B) zero after fiscal year 2011.
‘‘(2) LIMITS ON BONDS FOR NORTHEAST RAIL
CORRIDOR AND INDIVIDUAL STATES.—
‘‘(A) NORTHEAST
RAIL
CORRIDOR.—Not
more than $3,000,000,000 of the limitation
under paragraph (1) may be designated for
qualified projects on the northeast rail corridor
between Washington, D.C., and Boston, Massa-
chusetts.
‘‘(B) 
INDIVIDUAL
STATES.—Not 
more
than $3,000,000,000 of the limitation under
paragraph (1) may be designated for any indi-
vidual State. The dollar limitation under this
subparagraph is in addition to the dollar limita-
tion for the qualified projects described in sub-
paragraph (A).
‘‘(3) 
LIMIT
ON
BONDS
FOR
OTHER
PROJECTS.—Not more than $100,000,000 of the
limitation under paragraph (1) for any fiscal year
may be designated for all qualified projects described
in subsection (j)(1)(C).
‘‘(4) CARRYOVER OF UNUSED LIMITATION.—If
for any fiscal year—
‘‘(A) the limitation amount under para-
graph (1), exceeds
‘‘(B) the amount of bonds issued during
such year which are designated under sub-
section (e)(3),
the limitation amount under paragraph (1) for the
following fiscal year (through fiscal year 2015) shall
be increased by the amount of such excess.
‘‘(g) SPECIAL RULES RELATING TO ARBITRAGE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
an issue shall be treated as meeting the require-
ments of this subsection if as of the date of
issuance, the issuer reasonably expects—
‘‘(A) to spend at least 95 percent of the
proceeds from the sale of the issue for 1 or
more qualified projects within the 3-year period
beginning on such date,
‘‘(B) to incur a binding commitment with
a third party to spend at least 10 percent of the
proceeds from the sale of the issue, or to com-
mence construction, with respect to such
projects within the 6-month period beginning on
such date, and
‘‘(C) to proceed with due diligence to com-
plete such projects and to spend the proceeds
from the sale of the issue.
‘‘(2) RULES REGARDING CONTINUING COMPLI-
ANCE AFTER 3-YEAR DETERMINATION.—If at least
95 percent of the proceeds from the sale of the issue
is not expended for 1 or more qualified projects
within the 3-year period beginning on the date of
issuance, but the requirements of paragraph (1) are
otherwise met, an issue shall be treated as con-
tinuing to meet the requirements of this subsection
if either—
‘‘(A) the issuer uses all unspent proceeds
from the sale of the issue to redeem bonds of
the issue within 90 days after the end of such
3-year period, or
‘‘(B) the following requirements are met:
‘‘(i) The issuer spends at least 75 per-
cent of the proceeds from the sale of the
issue for 1 or more qualified projects with-
in the 3-year period beginning on the date
of issuance.
‘‘(ii) Either—
‘‘(I) the issuer spends at least 95
percent of the proceeds from the sale
of the issue for 1 or more qualified
projects within the 4-year period be-
ginning on the date of issuance, or
‘‘(II) the issuer pays to the Fed-
eral Government any earnings on the
proceeds from the sale of the issue
that accrue after the end of the 3-year
period beginning on the date of
issuance and uses all unspent pro-
ceeds from the sale of the issue to re-
deem bonds of the issue within 90
days after the end of the 4-year pe-
riod 
beginning 
on 
the 
date 
of
issuance.
‘‘(h) RECAPTURE OF PORTION OF CREDIT WHERE
CESSATION OF COMPLIANCE.—
‘‘(1) IN GENERAL.—If any bond which when
issued purported to be a qualified Amtrak bond
ceases to be such a qualified bond, the issuer shall
pay to the United States (at the time required by
the Secretary) an amount equal to the sum of—
‘‘(A) the aggregate of the credits allowable
under this section with respect to such bond
(determined without regard to subsection (c))
for taxable years ending during the calendar
year in which such cessation occurs and the 2
preceding calendar years, and
‘‘(B) interest at the underpayment rate
under section 6621 on the amount determined
under subparagraph (A) for each calendar year
for the period beginning on the first day of
such calendar year.
‘‘(2) FAILURE TO PAY.—If the issuer fails to
timely pay the amount required by paragraph (1)
with respect to such bond, the tax imposed by this
chapter on each holder of any such bond which is
part of such issue shall be increased (for the taxable
year of the holder in which such cessation occurs) by
the aggregate decrease in the credits allowed under
this section to such holder for taxable years begin-
ning in such 3 calendar years which would have re-
sulted solely from denying any credit under this sec-
tion with respect to such issue for such taxable
years.
‘‘(3) SPECIAL RULES.—
‘‘(A) TAX
BENEFIT
RULE.—The tax for
the taxable year shall be increased under para-
graph (2) only with respect to credits allowed
by reason of this section which were used to re-
duce tax liability. In the case of credits not so
used to reduce tax liability, the carryforwards
and carrybacks under section 39 shall be appro-
priately adjusted.
‘‘(B) NO CREDITS AGAINST TAX.—Any in-
crease in tax under paragraph (2) shall not be
treated as a tax imposed by this chapter for
purposes of determining—
‘‘(i) the amount of any credit allow-
able under this part, or
‘‘(ii) the amount of the tax imposed
by section 55.
‘‘(i) TRUST ACCOUNT.—
‘‘(1) IN
GENERAL.—The following amounts
shall be held in a trust account by a trustee inde-
pendent of the National Railroad Passenger Cor-
poration:
‘‘(A) The proceeds from the sale of all
bonds designated for purposes of this section.
‘‘(B) The amount of any matching con-
tributions with respect to such bonds.
‘‘(C) The temporary period investment
earnings on proceeds from the sale of such
bonds.
‘‘(D) Any earnings on any amounts de-
scribed in subparagraph (A), (B), or (C).
‘‘(2) USE OF FUNDS.—Amounts in the trust ac-
count may be used only to pay costs of qualified
projects and redeem qualified Amtrak bonds, except
that amounts withdrawn from the trust account to
pay costs of qualified projects may not exceed the
aggregate proceeds from the sale of all qualified Am-
trak bonds issued under this section.
‘‘(3) USE OF REMAINING FUNDS IN TRUST AC-
COUNT.—Upon the redemption of all qualified Am-
trak bonds issued under this section, any remaining
amounts in the trust account described in paragraph
(1) shall be available to the issuer for any qualified
project.
‘‘(j) QUALIFIED PROJECT.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘qualified project’
means—
‘‘(A) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other
capital improvements (including the introduc-
tion of new high-speed technologies such as
magnetic levitation systems), including track or
signal improvements or the elimination of grade
crossings, for the northeast rail corridor be-
tween Washington, D.C., and Boston, Massa-
chusetts,
‘‘(B) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other
capital improvements (including the introduc-
tion of new high-speed technologies such as
magnetic levitation systems), including develop-
ment of intermodal facilities, track or signal im-
provements, or the elimination of grade cross-
ings, for the improvement of train speeds or
safety (or both) on the high-speed rail corridors
designated under section 104(d)(2) of title 23,
United States Code, as in effect on the date of
the enactment of this section, and
‘‘(C) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other
capital improvements, including station rehabili-
tation or construction, development of inter-
modal facilities, track or signal improvements,
or the elimination of grade crossings, for the
improvement of train speeds or safety (or both)
for other intercity passenger rail corridors and
for the Alaska Railroad.
‘‘(2) REFINANCING
RULES.—For purposes of
paragraph (1), a refinancing shall constitute a quali-
fied project only if the indebtedness being refinanced
(including any obligation directly or indirectly refi-
nanced by such indebtedness) was originally incurred
by the issuer—
‘‘(A) after the date of the enactment of
this section,
‘‘(B) for a term of not more than 3 years,
‘‘(C) to finance or acquire capital improve-
ments described in paragraph (1), and
‘‘(D) in anticipation of being refinanced
with proceeds of a qualified Amtrak bond.
‘‘(k) STATE CONTRIBUTION REQUIREMENTS.—
‘‘(1) IN GENERAL.—For purposes of subsection
(e)(4), the State contribution requirement of this
subsection is met with respect to any qualified
project if the National Railroad Passenger Corpora-
tion has received from 1 or more States, not later
than the date of issuance of the bond, matching con-
tributions of not less than 20 percent of the cost of
the qualified project.
‘‘(2) NO STATE CONTRIBUTION REQUIREMENT
FOR
CERTAIN
QUALIFIED
PROJECTS.—The State
contribution requirement of this subsection is zero
with respect to the following projects:
‘‘(A) Any qualified project for the acquisi-
tion and installation of platform facilities, per-
formance of railroad force account work nec-
essary to complete improvements below street
grade, and any other necessary improvements
related to construction at the railroad station at
the James A. Farley Post Office Building in
New York City, New York.
‘‘(B) Any project described in subsection
(j)(1)(C) for the Alaska Railroad.
‘‘(3) STATE
MATCHING
CONTRIBUTIONS
MAY
NOT INCLUDE FEDERAL FUNDS.—For purposes of
this subsection, State matching contributions shall
not be derived, directly or indirectly, from Federal
funds, including any transfers from the Highway
Trust Fund under section 9503.
‘‘(l) OTHER DEFINITIONS AND SPECIAL RULES.—
For purposes of this section—
‘‘(1) BOND.—The term ‘bond’ includes any ob-
ligation.
‘‘(2) TREATMENT OF CHANGES IN USE.—For
purposes of subsection (e)(1), the proceeds from the
sale of an issue shall not be treated as used for a
qualified project to the extent that the issuer takes
any action within its control which causes such pro-
ceeds not to be used for a qualified project. The Sec-
retary shall prescribe regulations specifying remedial
actions that may be taken (including conditions to
taking such remedial actions) to prevent an action
described in the preceding sentence from causing a
bond to fail to be a qualified Amtrak bond.
‘‘(3) PARTNERSHIP; 
S
CORPORATION; 
AND
OTHER
PASS-THRU
ENTITIES.—Under regulations
prescribed by the Secretary, in the case of a partner-
ship, trust, S corporation, or other pass-thru entity,
rules similar to the rules of section 41(g) shall apply
with respect to the credit allowable under subsection
(a).
‘‘(4) BONDS
HELD
BY
REGULATED
INVEST-
MENT COMPANIES.—If any qualified Amtrak bond is
held by a regulated investment company, the credit
determined under subsection (a) shall be allowed to
shareholders of such company under procedures pre-
scribed by the Secretary.
‘‘(5) REPORTING.—Issuers of qualified Amtrak
bonds shall submit reports similar to the reports re-
quired under section 149(e).’’.
(b) AMENDMENTS TO OTHER CODE SECTIONS.—
(1) REPORTING.—Subsection (d) of section
6049 of the Internal Revenue Code of 1986 (relating
to returns regarding payments of interest) is amend-
ed by adding at the end the following new para-
graph:
‘‘(8) REPORTING OF CREDIT ON QUALIFIED AM-
TRAK BONDS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts
includible in gross income under section 54(d)
and such amounts shall be treated as paid on
the credit allowance date (as defined in section
54(b)(4)).
‘‘(B) 
REPORTING
TO
CORPORATIONS,
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in
subparagraph (A), subsection (b)(4) shall be
applied without regard to subparagraphs (A),
(H), (I), (J), (K), and (L)(i) of such subsection.
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may prescribe such regulations as are
necessary or appropriate to carry out the pur-
poses of this paragraph, including regulations
which require more frequent or more detailed
reporting.’’.
(2) TREATMENT
FOR
ESTIMATED
TAX
PUR-
POSES.—
(A) INDIVIDUAL.—Section 6654 of such
Code (relating to failure by individual to pay es-
timated income tax) is amended by redesig-
nating subsection (m) as subsection (n) and by
inserting after subsection (l) the following new
subsection:
‘‘(m) SPECIAL RULE FOR HOLDERS OF QUALIFIED
AMTRAK BONDS.—For purposes of this section, the credit
allowed by section 54 to a taxpayer by reason of holding
a qualified Amtrak bond on a credit allowance date shall
be treated as if it were a payment of estimated tax made
by the taxpayer on such date.’’.
(B) CORPORATE.—Section 6655 of such
Code (relating to failure by corporation to pay
estimated income tax) is amended by adding at
the end of subsection (g) the following new
paragraph:
‘‘(5) SPECIAL RULE FOR HOLDERS OF QUALI-
FIED AMTRAK BONDS.—For purposes of this section,
the credit allowed by section 54 to a taxpayer by
reason of holding a qualified Amtrak bond on a
credit allowance date shall be treated as if it were
a payment of estimated tax made by the taxpayer
on such date.’’.
(3) EXCLUSION FROM GROSS INCOME OF CON-
TRIBUTIONS
BY AMTRAK
TO
OTHER
RAIL
CAR-
RIERS.—
(A) IN GENERAL.—Section 118 of the In-
ternal Revenue Code of 1986 (relating to con-
tributions to the capital of a corporation) is
amended by redesignating subsection (d) as
subsection (e) and by inserting after subsection
(c) the following new subsection:
‘‘(d) SPECIAL RULE FOR CONTRIBUTIONS BY AM-
TRAK TO OTHER RAIL CARRIERS.—For purposes of this
section, the term ‘contribution to the capital of the tax-
payer’ does not include any contribution by the National
Railroad Passenger Corporation of personal or real prop-
erty funded by the proceeds of qualified Amtrak bonds
under section 54.’’.
(B) 
CONFORMING
AMENDMENT.—Sub-
section (b) of such section 118 is amended by
striking ‘‘subsection (c)’’ and inserting ‘‘sub-
sections (c) and (d)’’.
(4) PROTECTION OF HIGHWAY TRUST FUND.—
Section 9503 of such Code (relating to Highway
Trust Fund) is amended by adding at the end the
following new subsection:
‘‘(g) SPECIAL RULE RELATING TO NATIONAL RAIL-
ROAD PASSENGER CORPORATION.—Except as provided in
subsection (c), as in effect on the date of the enactment
of this subsection, amounts in the Highway Trust Fund
may not be used to provide funds to the National Railroad
Passenger Corporation for any purpose, including issuance
of any qualified Amtrak bond pursuant to section 54. The
preceding sentence may not be waived by any provision
of law which is not contained or referenced in this title,
whether such provision of law is a subsequently enacted
provision or directly or indirectly seeks to waive the appli-
cation of such sentence.’’.
(c) CLERICAL AMENDMENTS.—
(1) The table of subparts for part IV of sub-
chapter A of chapter 1 is amended by adding at the
end the following new item:
‘‘Subpart H. Nonrefundable Credit for Holders of Qualified Am-
trak Bonds.’’.
(2) Section 6401(b)(1) is amended by striking
‘‘and G’’ and inserting ‘‘G, and H’’.
(d) ANNUAL REPORT BY TREASURY ON AMTRAK
TRUST ACCOUNT.—The Secretary of the Treasury shall
annually report to Congress as to whether the amount de-
posited in the trust account established by the National
Railroad Passenger Corporation under section 54(i) of the
Internal Revenue Code of 1986, as added by this section,
is sufficient to fully repay at maturity the principal of any
outstanding qualified Amtrak bonds issued pursuant to
section 54 of such Code (as so added), together with
amounts expected to be deposited into such account, as
certified by the National Railroad Passenger Corporation
in accordance with procedures prescribed by the Secretary
of the Treasury.
(e) ISSUANCE OF REGULATIONS.—The Secretary of
the Treasury shall issue regulations required under section
54 of the Internal Revenue Code of 1986 (as added by
this section) not later than 90 days after the date of the
enactment of this Act.
(f) EFFECTIVE DATE.—The amendments made by
this section shall apply to obligations issued after the date
of enactment of this Act.
Subtitle B—High-Speed Rail
Provisions
SEC. 111. DEPARTMENT OF TRANSPORTATION APPROVAL
FOR QUALIFIED AMTRAK PROJECTS.
(a) AMENDMENT.—Part D of subtitle V of title 49,
United States Code, is amended by adding at the end the
following new chapter:
‘‘CHAPTER 263—HIGH-SPEED RAIL
INITIATIVES
‘‘Sec.
‘‘26301. Department of Transportation approval for qualified high-speed rail
projects.
‘‘26302. Qualified projects.
‘‘26303. State contribution requirements.’’.
‘‘§ 26301. Department of Transportation approval for
qualified high-speed rail projects
‘‘(a) IN GENERAL.—The written approval of a quali-
fied project by the Secretary of Transportation required
for purposes of subsection (e)(5) of section 54 of the Inter-
nal Revenue Code of 1986 (relating to credit to holders
of qualified Amtrak bonds) shall include—
‘‘(1) the finding by the Inspector General of the
Department of Transportation described in sub-
section (b);
‘‘(2) the certification by the Secretary of Trans-
portation described in subsection (c); and
‘‘(3) the agreement by the National Railroad
Passenger Corporation described in subsection (d).
‘‘(b) FINDING BY INSPECTOR GENERAL.—For pur-
poses of subsection (a), the finding described in this sub-
section is a finding by the Inspector General of the De-
partment of Transportation that there is a reasonable like-
lihood that the proposed project will result in a positive
financial contribution to the National Railroad Passenger
Corporation and that the investment evaluation process
includes consideration of a return on investment,
leveraging of funds (including State capital and operating
contributions), cost effectiveness, safety improvement, mo-
bility improvement, and feasibility.
‘‘(c) CERTIFICATION.—For purposes of subsection
(a), the certification described in this subsection is a cer-
tification by the Secretary of Transportation that the
issuer of the qualified Amtrak bond—
‘‘(1) except with respect to projects described in
section 54(j)(1)(C) of the Internal Revenue Code of
1986, has entered into a written agreement with the
owners of rail properties which are to be improved
by the project to be funded by the qualified Amtrak
bond, as to the scope and estimated cost of such
project and the impact on rail freight capacity; and
‘‘(2) has met the State contribution require-
ments described in section 26303.
The National Railroad Passenger Corporation shall not
exercise its rights under section 24308(a)(2) to resolve
disputes with respect to a project to be funded by a quali-
fied Amtrak bond, or with respect to the cost of such a
project, unless the project is intended to result in railroad
speeds of 79 miles per hour or less.
‘‘(d) AGREEMENT
BY AMTRAK TO ISSUE ADDI-
TIONAL BONDS FOR PROJECTS OF OTHER CARRIERS.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a), the agreement described in this subsection is an
agreement by the National Railroad Passenger Cor-
poration with the Secretary of Transportation to
issue bonds which meet the requirements of section
54 of the Internal Revenue Code of 1986 for use in
financing projects described in paragraph (2).
‘‘(2) PROJECTS
COVERED.—For purposes of
paragraph (1), the projects described in this para-
graph are any project described in subsection
(j)(1)(B) or (j)(1)(C) of section 54 of the Internal
Revenue Code of 1986 for an intercity rail passenger
carrier other than the National Railroad Passenger
Corporation or for the Alaska Railroad.
‘‘(3) 
ADDITIONAL
REQUIREMENTS.—Any
project financed by bonds referred to in paragraph
(1) shall be carried out by the intercity rail pas-
senger carrier other than the National Railroad Pas-
senger Corporation, through a contract entered into
by the National Railroad Passenger Corporation
with such carrier. Such other intercity rail passenger
carrier, in carrying out the project, shall be subject
to the provisions of this subtitle governing the Na-
tional Railroad Passenger Corporation.
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘intercity rail passenger carrier’
means any rail carrier (as such term is defined in
section 24102(7)) that is part of the interstate sys-
tem of rail transportation and that provides intercity
rail passenger transportation (as such term is de-
fined in section 24102(5)).
‘‘(e) ADDITIONAL SELECTION CRITERIA.—In deter-
mining projects to be approved under this section (other
than projects for the Alaska Railroad), or to be included
in an agreement under subsection (d), the Secretary of
Transportation shall give preference to—
‘‘(1) any project with a State matching con-
tribution rate exceeding 20 percent;
‘‘(2) projects expected to have a significant im-
pact on air traffic congestion;
‘‘(3) projects expected to also improve com-
muter rail operations;
‘‘(4) projects that anticipate fares designed to
recover costs and generate a return on investment;
and
‘‘(5) projects that promote regional balance in
infrastructure investment and the national interest
in ensuring the development of a nationwide high-
speed rail transportation network.
‘‘§ 26302. Qualified projects
‘‘For purposes of this chapter—
‘‘(1) IN GENERAL.—The term ‘qualified project’
means—
‘‘(A) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other
capital improvements (including the introduc-
tion of new high-speed technologies such as
magnetic levitation systems), including track or
signal improvements or the elimination of grade
crossings, for the northeast rail corridor be-
tween Washington, D.C., and Boston, Massa-
chusetts;
‘‘(B) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other
capital improvements (including the introduc-
tion of new high-speed technologies such as
magnetic levitation systems), including develop-
ment of intermodal facilities, track or signal im-
provements, or the elimination of grade cross-
ings, for the improvement of train speeds or
safety (or both) on the high-speed rail corridors
designated under section 104(d)(2) of title 23,
United States Code, as in effect on the date of
the enactment of this section; and
‘‘(C) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other
capital improvements, including station rehabili-
tation or construction, development of inter-
modal facilities, track or signal improvements,
or the elimination of grade crossings, for the
improvement of train speeds or safety (or both)
for other intercity passenger rail corridors and
for the Alaska Railroad.
‘‘(2) REFINANCING
RULES.—For purposes of
paragraph (1), a refinancing shall constitute a quali-
fied project only if the indebtedness being refinanced
(including any obligation directly or indirectly refi-
nanced by such indebtedness) was originally incurred
by the issuer—
‘‘(A) after the date of the enactment of
this section;
‘‘(B) for a term of not more than 3 years;
‘‘(C) to finance or acquire capital improve-
ments described in paragraph (1); and
‘‘(D) in anticipation of being refinanced
with proceeds of a qualified Amtrak bond.
‘‘§ 26303. State contribution requirements
‘‘(a) 
IN
GENERAL.—For 
purposes 
of 
section
26301(c)(2), the State contribution requirement of this
section is met with respect to any qualified project if the
National Railroad Passenger Corporation has received
from 1 or more States, not later than the date of issuance
of the bond, matching contributions of not less than 20
percent of the cost of the qualified project.
‘‘(b) NO STATE CONTRIBUTION REQUIREMENT FOR
CERTAIN QUALIFIED PROJECTS.—The State contribution
requirement of this section is zero with respect to the fol-
lowing projects:
‘‘(1) Any qualified project for the acquisition
and installation of platform facilities, performance of
railroad force account work necessary to complete
improvements below street grade, and any other nec-
essary improvements related to construction at the
railroad station at the James A. Farley Post Office
Building in New York City, New York.
‘‘(2) Any project described in subsection
(j)(1)(C) of section 54 of the Internal Revenue Code
of 1986 for the Alaska Railroad.
‘‘(c) STATE MATCHING CONTRIBUTIONS MAY NOT
INCLUDE FEDERAL FUNDS.—For purposes of this sec-
tion, State matching contributions shall not be derived, di-
rectly or indirectly, from Federal funds, including any
transfers from the Highway Trust Fund under section
9503 of the Internal Revenue Code of 1986.’’.
(b) TABLE OF CHAPTERS AMENDMENT.—The table
of chapters of subtitle V of title 49, United States Code,
is amended by inserting after the item relating to chapter
261 the following new item:
‘‘263. HIGH-SPEED RAIL INITIATIVES ........................................... 26301’’.
SEC. 112. MULTIYEAR CAPITAL SPENDING PLAN AND OVER-
SIGHT.
(a) AMENDMENT.—Chapter 243 of title 49, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 24316. Multiyear capital spending plan and over-
sight
‘‘(a) AMTRAK CAPITAL SPENDING PLAN.—
‘‘(1) IN
GENERAL.—The National Railroad
Passenger Corporation shall annually submit to the
President and Congress a multiyear capital spending
plan, as approved by the Board of Directors of the
Corporation.
‘‘(2) CONTENTS
OF
PLAN.—Such plan shall
identify the capital investment needs of the Corpora-
tion over a period of not less than 5 years and the
funding sources available to finance such needs and
shall prioritize such needs according to corporate
goals and strategies.
‘‘(3) INITIAL
SUBMISSION
DATE.—The first
plan shall be submitted before the issuance of any
qualified Amtrak bonds by the National Railroad
Passenger Corporation pursuant to section 54 of the
Internal Revenue Code of 1986.
‘‘(b) OVERSIGHT
OF QUALIFIED PROJECTS.—The
Secretary of Transportation shall contract for an annual
independent assessment of the costs and benefits of the
qualified projects financed by qualified Amtrak bonds pur-
suant to section 54 of the Internal Revenue Code of 1986,
including an assessment of the investment evaluation proc-
ess of the Corporation. The annual assessment shall be
included in the plan submitted under subsection (a).’’.
(b) TABLE OF SECTIONS AMENDMENT.—The table of
sections of chapter 243 of title 49, United States Code,
is amended by adding after the item relating to section
24315 the following new item:
‘‘24316. Multiyear capital spending plan and oversight.’’.
SEC. 113. ISSUANCE OF REGULATIONS.
The Secretary of Transportation shall issue regula-
tions for carrying out chapter 263 of title 49, United
States Code (as added by section 111 of this Act), not
later than 90 days after the date of the enactment of this
Act.
SEC. 114. SENSE OF CONGRESS REGARDING EFFECT ON
AMTRAK FUNDING.
It is the sense of the Congress that the proceeds of
qualified Amtrak bonds issued under section 54 of the In-
ternal Revenue Code of 1986 are intended to finance the
construction of qualified projects (as defined in section
26302 of title 49, United States Code, as added by section
111 of this Act) and are not intended to meet the regular,
ongoing capital funding needs of the National Railroad
Passenger Corporation.
SEC. 115. EFFECTIVE DATE.
The amendments made by this subtitle shall apply to
obligations issued after the date of the enactment of this
Act.
Subtitle C—Amtrak Capital
Investment
SEC. 121. AUTHORIZATION OF APPROPRIATIONS.
Section 24104(a) of title 49, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘IN GENERAL.—’’;
(2) by redesignating paragraphs (1) through
(5) as subparagraphs (A) through (E), respectively;
and
(3) by adding at the end the following new
paragraph:
‘‘(2) There are authorized to be appropriated to the
Secretary of Transportation $3,000,000,000 for fiscal
year 2002 for the benefit of Amtrak for capital expendi-
tures including—
‘‘(A) New York, Washington, D.C., and Balti-
more tunnel life safety projects;
‘‘(B) bridges, tracks, and other improvements
to increase the capacity and reliability of rail pas-
senger transportation; and
‘‘(C) 
equipment, 
including 
acquisition 
of
trainsets and rolling stock, for operation in federally
designated corridors.
At least 2⁄3 of amounts expended under subparagraph (C)
shall be for operations outside the Northeast Corridor.’’.
Subtitle D—Capital Investment for
Railroad Rehabilitation
SEC. 131. CAPITAL GRANTS FOR RAILROAD TRACK.
(a) AMENDMENT.—Chapter 223 of title 49, United
States Code, is amended to read as follows:
‘‘CHAPTER 223—CAPITAL GRANTS FOR
RAILROAD TRACK
‘‘Sec.
‘‘22301. Capital grants for railroad track.
‘‘§ 22301. Capital grants for railroad track
‘‘(a) ESTABLISHMENT OF PROGRAM.—
‘‘(1) 
ESTABLISHMENT.—The 
Secretary 
of
Transportation shall establish a program of capital
grants for the rehabilitation, preservation, or im-
provement of railroad track (including roadbed,
bridges, and related track structures) of class II and
class III railroads. Such grants shall be for rehabili-
tating, preserving, or improving track used primarily
for freight transportation to a standard ensuring
that the track can be operated safely and efficiently,
including grants for rehabilitating, preserving, or im-
proving track to handle 286,000 pound rail cars.
Grants may be provided under this chapter—
‘‘(A) directly to the class II or class III
railroad; or
‘‘(B) with the concurrence of the class II
or class III railroad, to a State or local govern-
ment.
‘‘(2) STATE COOPERATION.—Class II and class
III railroad applicants for a grant under this chap-
ter are encouraged to utilize the expertise and assist-
ance of State transportation agencies in applying for
and administering such grants. State transportation
agencies are encouraged to provide such expertise
and assistance to such railroads.
‘‘(3) INTERIM REGULATIONS.—Not later than
December 31, 2001, the Secretary shall issue tem-
porary regulations to implement the program under
this section. Subchapter II of chapter 5 of title 5
does not apply to a temporary regulation issued
under this paragraph or to an amendment to such
a temporary regulation.
‘‘(4) FINAL REGULATIONS.—Not later than Oc-
tober 1, 2002, the Secretary shall issue final regula-
tions to implement the program under this section.
‘‘(b) MAXIMUM FEDERAL SHARE.—The maximum
Federal share for carrying out a project under this section
shall be 80 percent of the project cost. The non-Federal
share may be provided by any non-Federal source in cash,
equipment, or supplies. Other in-kind contributions may
be approved by the Secretary on a case by case basis con-
sistent with this chapter.
‘‘(c) PROJECT ELIGIBILITY.—For a project to be eli-
gible for assistance under this section the track must have
been operated or owned by a class II or class III railroad
as of the date of the enactment of this section.
‘‘(d) USE OF FUNDS.—Grants provided under this
section shall be used to implement track capital projects
as soon as possible. In no event shall grant funds be con-
tractually obligated for a project later than the end of the
third Federal fiscal year following the year in which the
grant was awarded. Any funds not so obligated by the end
of such fiscal year shall be returned to the Secretary for
reallocation.
‘‘(e) ADDITIONAL PURPOSE.—In addition to making
grants for projects as provided in subsection (a), the Sec-
retary may also make grants to supplement direct loans
or loan guarantees made under title V of the Railroad Re-
vitalization and Regulatory Reform Act of 1976 (45
U.S.C. 822(d)), for projects described in the last sentence
of section 502(d) of such title. Grants made under this
subsection may be used, in whole or in part, for paying
credit risk premiums, lowering rates of interest, or pro-
viding for a holiday on principal payments. Credit risk
premiums funded under this section shall be exempt from
the non-Federal source requirement of section 502(f)(1)
of the Railroad Revitalization and Regulatory Reform Act
of 1976 (45 U.S.C. 822(f)(1)).
‘‘(f) EMPLOYEE PROTECTION.—The Secretary shall
require as a condition of any grant made under this sec-
tion that the recipient railroad provide a fair arrangement
at least as protective of the interests of employees who
are affected by the project to be funded with the grant
as the terms imposed under section 11326(a), as in effect
on the date of the enactment of this section.
‘‘(g) LABOR STANDARDS.—
‘‘(1) PREVAILING WAGES.—The Secretary shall
ensure that laborers and mechanics employed by
contractors and subcontractors in construction work
financed by a grant made under this section 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 et
seq.). The Secretary shall make a grant under this
section only after being assured that required labor
standards will be maintained on the construction
work.
‘‘(2) WAGE RATES.—Wage rates in a collective
bargaining agreement negotiated under the Railway
Labor Act (45 U.S.C. 151 et seq.) are deemed for
purposes of this subsection to comply with the Act
of March 3, 1931 (known as the Davis-Bacon Act;
40 U.S.C. 276a et seq.).
‘‘(h) STUDY.—The Secretary shall conduct a study
of the projects carried out with grant assistance under this
section to determine the public interest benefits associated
with the light density railroad networks in the States and
their contribution to a multimodal transportation system.
Not later than March 31, 2003, the Secretary shall report
to Congress any recommendations the Secretary considers
appropriate regarding the eligibility of light density rail
networks for Federal infrastructure financing.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of
Transportation $500,000,000 for fiscal year 2002 for car-
rying out this section.’’.
(b) CONFORMING AMENDMENTS.—(1) The item re-
lating to chapter 223 in the table of chapters of subtitle
V of title 49, United States Code, is amended to read as
follows:
‘‘223. CAPITAL GRANTS FOR RAILROAD TRACK .......................... 22301’’.
(2) Section 502(d) of the Railroad Revitalization and
Regulatory Reform Act of 1976 (45 U.S.C. 822(d)) is
amended—
(A) by striking ‘‘$3,500,000,000’’ and in-
serting ‘‘$5,000,000,000’’; and
(B) by striking ‘‘$1,000,000,000’’ and in-
serting ‘‘$1,500,000,000’’.
SEC. 132. REGULATORY PROCEDURE AMENDMENTS.
(a) COHORTS OF LOANS.—Section 502(f) of the Rail-
road Revitalization and Regulatory Reform Act of 1976
(45 U.S.C. 822(f)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (D);
(B) by redesignating subparagraph (E) as
subparagraph (F); and
(C) by adding after subparagraph (D) the
following new subparagraph:
‘‘(E) the size and characteristics of the co-
hort of which the loan or loan guarantee is a
member; and’’; and
(2) by adding at the end of paragraph (4) the
following: ‘‘A cohort may include loans and loan
guarantees. The Secretary shall not establish any
limit on the proportion of a cohort that may be used
for 1 loan or loan guarantee.’’.
(b) CONDITIONS OF ASSISTANCE.—Section 502 of
the Railroad Revitalization and Regulatory Reform Act of
1976 (45 U.S.C. 822) is amended—
(1) in subsection (f)(2)(A), by inserting ‘‘, if
any’’ after ‘‘collateral offered’’; and
(2) by adding at the end of subsection (h) the
following:
‘‘The Secretary shall not require an applicant for a direct
loan or loan guarantee under this section to provide collat-
eral. The Secretary shall not require that an applicant for
a direct loan or loan guarantee under this section have
previously sought the financial assistance requested from
another source. The Secretary shall require recipients of
direct loans or loan guarantees under this section to apply
the standards of section 26106(a)(5) of title 49, United
States Code, to their projects, except for projects primarily
benefiting Class III freight railroads.’’.
(c) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—
Section 502 of the Railroad Revitalization and Regulatory
Reform Act of 1976 (45 U.S.C. 822) is amended by add-
ing at the end the following new subsection:
‘‘(i) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—
Not later than 180 days after receiving a complete appli-
cation for a direct loan or loan guarantee under this sec-
tion, the Secretary shall approve or disapprove the applica-
tion.’’.
(d) FEES AND CHARGES.—Section 503 of the Rail-
road Revitalization and Regulatory Reform Act of 1976
(45 U.S.C. 823) is amended by adding at the end the fol-
lowing new subsection:
‘‘(l) FEES AND CHARGES.—Except as provided in
this title, the Secretary may not assess any fees, including
user fees, or charges in connection with a direct loan or
loan guarantee provided under section 502.’’.
(e) SUBSTANTIVE CRITERIA AND STANDARDS.—Not
later than 30 days after the date of the enactment of this
Act, the Secretary of Transportation shall publish in the
Federal Register and post on the Department of Trans-
portation web site the substantive criteria and standards
used by the Secretary to determine whether to approve
or disapprove applications submitted under section 502 of
the Railroad Revitalization and Regulatory Reform Act of
1976 (45 U.S.C. 822).
TITLE II—ENVIRONMENTAL
INFRASTRUCTURE INVESTMENT
SEC. 201. GENERAL AUTHORITY FOR CAPITALIZATION
GRANTS.
Section 601(a) of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1381(a)) is amended by striking ‘‘(1)
for construction’’ and all that follows through the period
and inserting ‘‘to accomplish the objectives, goals, and
policies of this Act.’’.
SEC. 202. CAPITALIZATION GRANTS AGREEMENTS.
(a) REQUIREMENTS FOR CONSTRUCTION OF TREAT-
MENT WORKS.—Section 602(b)(6) of the Federal Water
Pollution Control Act (33 U.S.C. 1382(b)(6)) is
amended—
(1) by striking ‘‘treatment works’’ the first
place it appears and inserting ‘‘activities’’;
(2) by striking ‘‘before fiscal year 1995’’ and all
that follows through ‘‘grants under this title’’ and
inserting ‘‘with funds made available by capitaliza-
tion grants under this title (including repayments
thereof)’’; and
(3) by striking ‘‘201(b)’’ and all that follows
through ‘‘218’’ and inserting ‘‘204(b)(1), 211’’.
(b) GUIDANCE FOR SMALL SYSTEMS.—Section 602
of the Federal Water Pollution Control Act (33 U.S.C.
1382) is amended by adding at the end the following new
subsection:
‘‘(c) GUIDANCE FOR SMALL SYSTEMS.—
‘‘(1) SIMPLIFIED PROCEDURES.—Not later than
1 year after the date of the enactment of this sub-
section, the Administrator shall assist the States in
establishing simplified procedures for small systems
to obtain assistance under this title.
‘‘(2) PUBLICATION
OF
MANUAL.—Not later
than 1 year after the date of the enactment of this
subsection, and after providing notice and oppor-
tunity for public comment, the Administrator shall
publish a manual to assist small systems in obtain-
ing assistance under this title and publish in the
Federal Register notice of the availability of the
manual.
‘‘(3) SMALL SYSTEM DEFINED.—For purposes
of this title, the term ‘small system’ means a system
for which a municipality or intermunicipal, inter-
state, or State agency seeks assistance under this
title and which serves a population of 20,000 or
fewer.’’.
SEC. 
203. 
WATER 
POLLUTION 
CONTROL 
REVOLVING
FUNDS.
(a) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—Sec-
tion 603(c) of the Federal Water Pollution Control Act
(33 U.S.C. 1383(c)) is amended to read as follows:
‘‘(c) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—
‘‘(1) IN
GENERAL.—The amounts of funds
available to each State water pollution control re-
volving fund shall be used only for providing finan-
cial assistance to a municipality, intermunicipal
agency, interstate agency, State agency, or other
person for activities which have as a principal ben-
efit the improvement or protection of water quality.
Such activities may include the following:
‘‘(A) Construction of a publicly owned
treatment works (as defined in section 212 of
this Act).
‘‘(B) Implementation of lake protection
programs and projects under section 314.
‘‘(C) Implementation of a management
program established under section 319.
‘‘(D) Implementation of a conservation and
management plan established under section
320.
‘‘(E) Restoration or protection of publicly
or privately owned riparian areas, including ac-
quisition of property rights.
‘‘(F) Implementation of measures to im-
prove the efficiency of public water use.
‘‘(G) Development and implementation of
plans by a public recipient to prevent water pol-
lution.
‘‘(H) Acquisition of lands necessary to
meet any mitigation requirements related to
construction of a publicly owned treatment
works.
‘‘(2) FUND
AMOUNTS.—The water pollution
control revolving fund of a State shall be established,
maintained, and credited with repayments, and the
fund balance shall be available in perpetuity for pro-
viding financial assistance for activities described in
paragraph (1). Fees charged by a State to recipients
of such assistance may be deposited in the fund for
the sole purpose of financing the cost of administra-
tion of this title.’’.
(b) EXTENDED REPAYMENT PERIOD FOR FINAN-
CIALLY DISTRESSED COMMUNITIES.—Section 603(d)(1)
of the Federal Water Pollution Control Act (33 U.S.C.
1383(d)(1)) is amended—
(1) in subparagraph (A) by inserting after ‘‘20
years’’ the following: ‘‘or, in the case of a financially
distressed community, the lesser of 40 years or the
expected life of the project to be financed with the
proceeds of the loan’’; and
(2) in subparagraph (B) by striking ‘‘not later
than 20 years after project completion’’ and insert-
ing ‘‘upon the expiration of the term of the loan’’.
(c) ADMINISTRATIVE EXPENSES.—Section 603(d)(7)
of the Federal Water Pollution Control Act (33 U.S.C.
1383(d)(7)) is amended by inserting before the period at
the end the following: ‘‘or $400,000 per year or 1⁄2 percent
per year of the current valuation of such fund, whichever
is greatest, plus the amount of any fees collected by the
State for such purpose under subsection (c)(2)’’.
(d) TECHNICAL
AND PLANNING ASSISTANCE
FOR
SMALL SYSTEMS.—Section 603(d) of the Federal Water
Pollution Control Act (33 U.S.C. 1383(d)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(6);
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(8) to provide to small systems technical and
planning assistance and assistance in financial man-
agement, user fee analysis, budgeting, capital im-
provement planning, facility operation and mainte-
nance, repair schedules, and other activities to im-
prove wastewater treatment plant operations; except
that such amounts shall not exceed 2 percent of all
grant awards to such fund under this title.’’.
(e) PRINCIPAL SUBSIDIZATION.—Section 603 of the
Federal Water Pollution Control Act is amended by add-
ing at the end the following:
‘‘(i) PRINCIPAL SUBSIDIZATION.—In any case in
which a State makes a loan pursuant to subsection (d)(1)
to a financially distressed community, the State may pro-
vide additional subsidization, including forgiveness of prin-
cipal. The total amount of loan subsidies made by a State
under this subsection in a fiscal year may not exceed 30
percent of the amount of the capitalization grant received
by the State in such fiscal year.
‘‘(j) FINANCIALLY DISTRESSED COMMUNITY DE-
FINED.—In this section, the term ‘financially distressed
community’ means any community that meets afford-
ability criteria established by the State in which the treat-
ment works is located, if such criteria are developed after
public review and comment.
‘‘(k) INFORMATION TO ASSIST STATES.—The Ad-
ministrator may publish information to assist States in es-
tablishing affordability criteria under subsection (j).
‘‘(l) PRIORITY.—A State may give priority to a finan-
cially distressed community in making loans from its
water pollution control revolving fund.’’.
SEC. 
204. 
AUTHORIZATION 
OF 
APPROPRIATIONS 
FOR
CLEAN WATER STATE REVOLVING FUNDS.
Section 607 of the Federal Water Pollution Control
Act (33 U.S.C. 1387) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(4);
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(6) $5,000,000,000 as an additional amount
for fiscal year 2002.’’.
SEC. 205. WET WEATHER.
Section 221(f) of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1301(f)) is amended by inserting after
the first sentence the following: ‘‘In addition, there is au-
thorized to be appropriated to carry out this section an
additional $1,500,000,000 for fiscal year 2002.’’.
SEC. 206. SAFE DRINKING WATER STATE REVOLVING
FUNDS.
Section 1452(m) of title XIV of the Public Health
Service Act (commonly known as the ‘‘Safe Drinking
Water Act’’) (42 U.S.C. 300j–12(m)) is amended by in-
serting after the first sentence the following: ‘‘In addition,
there is authorized to be appropriated to carry out this
section an additional $1,500,000,000 for fiscal year
2002.’’.
TITLE III—HIGHWAY
INFRASTRUCTURE INVESTMENT
SEC. 301. FEDERAL-AID HIGHWAY PROGRAM OBLIGATION
CEILING.
Section 1102 of the Transportation Equity Act for
the 21st Century (112 Stat. 115) is amended by adding
at the end the following:
‘‘(j) INCREASE IN OBLIGATION LIMIT FOR FISCAL
YEAR 2002.—Notwithstanding any other provision of law,
limitations on obligations imposed by subsection (a) for
fiscal year 2002 shall be increased by $5,000,000,000.
Such sum shall be distributed in accordance with this sec-
tion, except that a program subject to a reduction in funds
under subsection (f) shall receive an amount of obligation
authority equal to the amount of contract authority avail-
able for such program in such fiscal year.’’.
SEC. 302. LIMITATIONS ON CREDIT AMOUNTS.
Section 188(c) of title 23, United States Code, is
amended—
(1) by striking ‘‘For each of’’ and inserting the
following:
‘‘(1) IN GENERAL.—For each of’’;
(2) by adding at the end the following:
‘‘(2) SPECIAL
RULE.—Notwithstanding any
other provision of law, principal amounts of Federal
credit instruments authorized under this subsection
for fiscal years 1999, 2000, and 2001 that have not
been made available shall be available in fiscal years
2002 and 2003, in addition to amounts authorized
for such fiscal years.’’; and
(3) by aligning the remainder of the text of
paragraph (1) (as designated by paragraph (1) of
this section) preceding the table with paragraph (2)
(as added by paragraph (2) of this section).
TITLE IV—TRANSIT
INFRASTRUCTURE INVESTMENT
SEC. 401. ADDITIONAL AUTHORIZATIONS FOR FORMULA
GRANTS.
(a) 
FROM
THE
TRUST
FUND.—Section
5338(a)(2)(A)(iv) of title 49, United States Code, is
amended by striking ‘‘$2,873,600,000’’ and inserting
‘‘$5,273,600,000’’.
(b) 
FROM
THE
GENERAL
FUND.—Section
5338(a)(2)(B)(iv) of title 49, United States Code, is
amended by striking ‘‘$718,400,000’’ and inserting
‘‘$1,318,400,000’’.
(c) AVAILABILITY OF AMOUNTS.—Notwithstanding
sections 5307(k)(2) and section 5336(i), any increase in
the amounts apportioned to a recipient attributable to the
amendments made by subsections (a) and (b) of this sec-
tion may be obligated by the recipient for 1 year after
the last day of the fiscal year in which the amount is ap-
portioned. Not later than 30 days after the end of the
1-year period, an amount that is not obligated at the end
of that period shall be added to the amount that may be
apportioned under the urbanized area formula program of
section 5336 of title 49, United States Code.
SEC. 402. FEDERAL TRANSIT PROGRAM OBLIGATION CEIL-
ING.
Section 3040(4) of the Transportation Equity Act for
the 21st Century (112 Stat. 338) is amended by striking
‘‘$6,747,000,000’’ and inserting ‘‘$9,747,000,000’’.
SEC. 403. UNIFORM DOLLAR LIMITATION FOR ALL TYPES
OF TRANSPORTATION FRINGE BENEFITS.
(a) IN GENERAL.—Subparagraph (A) of section
132(f)(2) of the Internal Revenue Code of 1986 (relating
to limitation on exclusion) is amended by striking ‘‘$100’’
and inserting ‘‘$175’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2001.
TITLE V—AVIATION
INFRASTRUCTURE INVESTMENT
SEC. 501. INCREASED FUNDING FOR AIRPORT PLANNING
AND DEVELOPMENT.
(a) IN GENERAL.—Section 48103(4) of title 49,
United 
States 
Code, 
is 
amended 
by 
striking
‘‘$3,300,000,000’’ and inserting ‘‘$5,355,000,000.’’.
(b) DISCRETIONARY FUND.—Section 47115 of title
49, United States Code, is amended by adding at the end
the following:
‘‘(i) ADDITIONAL AMOUNT TO BE CREDITED
TO
FUND FOR FISCAL YEAR 2002.—
‘‘(1) IN
GENERAL.—In addition to other
amounts credited to the fund under this section,
there shall be credited to the fund $2,055,000,000
out of amounts made available to the Secretary for
fiscal year 2002 under section 48103(4).
‘‘(2) APPORTIONMENT
CATEGORIES
DO
NOT
APPLY.—Section 
47117(e) 
does 
not 
apply 
to
amounts credited to the fund under this sub-
section.’’.
(c) CONFORMING AMENDMENT.—Section 47114 of
title 49, United States Code, is amended by adding at the
end the following:
‘‘(g) SPECIAL RULE FOR FISCAL YEAR 2002.—Of
the funds made available by section 48103(4), the amount
subject to apportionment under this section shall be re-
duced by the amount credited to the discretionary fund
under section 47115(i).’’.
SEC. 502. INCREASED FUNDING FOR AIRWAY FACILITIES
IMPROVEMENT.
Section 48101(a)(4) of title 49, United States Code,
is amended by striking ‘‘$2,914,000,000’’ and inserting
‘‘$3,859,000,000’’.
TITLE VI—MARITIME
INFRASTRUCTURE INVESTMENT
SEC. 601. MARINE TRANSPORTATION SYSTEM INFRASTRUC-
TURE.
(a) MARITIME LOAN GUARANTEES.—For expenses
under the loan guarantee program authorized by title XI
of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271
et seq.) there is authorized to be appropriated, in addition
to any other amounts authorized for such expenses,
$100,000,000 for fiscal years 2002 and 2003, of which—
(1) $87,000,000 is for the cost (as defined in
section 502(5) of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a(5))) of loan guarantees under
the program, including the costs of modifying such
loans, of which $5,000,000 shall be used to guar-
antee loans for ferries using a streamlined process;
and
(2) $13,000,000 is for administrative expenses
related to loan guarantee commitments under the
program.
(b) MARINE TRANSPORTATION SYSTEM IMPROVE-
MENT GRANTS.—
(1) GRANTS
AUTHORITY.—The Secretary of
Transportation may make a grant to the operator of
any port or maritime cargo terminal in the United
States to acquire the best available technology,
equipment, or infrastructure to expedite the trans-
portation of cargo through the port or terminal, re-
spectively.
(2) QUALIFIED PROJECTS.—A project shall not
qualify for a grant under this section unless it pro-
vides technology, equipment, or infrastructure that
will significantly increase the actual throughput of
cargo through a port or terminal facility.
(3) COST SHARING.—The Federal share of the
cost of a project carried out with a grant under this
subsection shall not exceed 50 percent.
(4) REGULATIONS.—The Secretary shall, before
July 1, 2002, prescribe final regulations for issuing
grants under this subsection.
(5) AUTHORIZATION OF APPROPRIATIONS.—For
grants under this subsection there is authorized to
be appropriated to the Secretary $500,000,000 for
fiscal years 2002 and 2003.
TITLE 
VII—ECONOMIC 
DEVEL-
OPMENT 
INFRASTRUCTURE
INVESTMENT
SEC. 701. PUBLIC WORKS AND ECONOMIC DEVELOPMENT.
Section 701 of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3231) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘There are authorized’’; and
(2) by adding at the end the following:
‘‘(b) ADDITIONAL AUTHORIZATION.—In addition to
amounts authorized by subsection (a), there are author-
ized to be appropriated to carry out this Act $900,000,000
for fiscal year 2002. Such sums shall remain available
until September 30, 2003.’’.
SEC. 702. APPALACHIAN REGIONAL DEVELOPMENT.
Section 401 of the Appalachian Regional Develop-
ment Act of 1965 (40 U.S.C. App.) is amended by adding
at the end the following:
‘‘(c) ADDITIONAL AUTHORIZATION.—In addition to
amounts authorized by subsection (a), there are author-
ized to be appropriated to the Commission to carry out
this Act $200,000,000 for fiscal year 2002. Such sums
shall remain available until September 30, 2003.’’.
SEC. 703. DELTA REGIONAL DEVELOPMENT.
Section 382M of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009aa–12) is amended—
(1) by redesignating subsection (b) as sub-
section (c);
(2) by inserting after subsection (a) the fol-
lowing:
‘‘(b) ADDITIONAL AUTHORIZATION.—In addition to
amounts authorized by subsection (a), there are author-
ized to be appropriated to the Authority to carry out this
subtitle $200,000,000 for fiscal year 2002. Such sums
shall remain available until September 30, 2003.’’; and
(3) in subsection (c) (as so redesignated) by
striking ‘‘subsection (a)’’ and inserting ‘‘subsections
(a) and (b)’’.
TITLE VIII—WATER RESOURCES
INFRASTRUCTURE INVESTMENT
SEC. 801. INCREASED FUNDING FOR CORPS OF ENGINEERS
PROJECTS.
(a) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to other amounts authorized to be appropriated, there
are authorized to be appropriated to the Secretary of the
Army $1,200,000,000 for fiscal year 2002 to carry out
construction, operation, and maintenance activities for au-
thorized civil functions under the supervision of the Chief
of Engineers. Such sums shall remain available until Sep-
tember 30, 2003.
(b) ALLOCATION OF AMOUNTS FOR SECURITY PUR-
POSES.—Of the amounts appropriated pursuant to sub-
section (a), not less than $263,000,000 shall be available
for security purposes at critical infrastructure, as identi-
fied by the Secretary of the Army.
TITLE IX—PUBLIC BUILDINGS
INFRASTRUCTURE INVESTMENT
SEC. 901. SECURITY ENHANCEMENTS FOR GSA PROP-
ERTIES.
(a) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to other amounts credited to the Federal Buildings
Fund established pursuant to section 210(f) of the Fed-
eral Property and Administrative Services Act of 1949 (40
U.S.C. 490(f)), there is authorized to be appropriated
$500,000,000 for fiscal year 2002 to be credited to the
Fund. Such sums shall remain available until September
30, 2003.
(b) USE OF FUNDS.—Amounts credited to the Fund
under this section shall be available to the Administrator
of General Services to carry out projects and activities for
enhancing the security of properties under the control of
the General Services Administration, including general
purpose office space, courthouses, and border crossing sta-
tions, and for other repair and alteration purposes.
SEC. 902. SECURITY ENHANCEMENTS FOR JOHN F. KEN-
NEDY CENTER.
Section 12 of the John F. Kennedy Center Act (20
U.S.C. 76r) is amended by adding at the end the fol-
lowing:
‘‘(d) ADDITIONAL AUTHORIZATION.—In addition to
the amounts authorized under subsections (a) and (b),
there is authorized to be appropriated to the Board
$50,000,000 for fiscal year 2002 to carry out projects and
activities for enhancing the security of the building and
site of the John F. Kennedy Center for the Performing
Arts and other projects and activities under subpara-
graphs (F), (G), and (H) of section 4(a)(1).’’.
SEC. 903. SECURITY ENHANCEMENTS FOR SMITHSONIAN
INSTITUTION.
In addition to other amounts authorized to be appro-
priated, there is authorized to be appropriated to the
Smithsonian Institution $50,000,000 for fiscal year 2002
to carry out projects and activities for enhancing the secu-
rity of the buildings and grounds of the Smithsonian Insti-
tution and for other capital improvement or repair and
alteration purposes.
TITLE X—GENERAL PROVISIONS
SEC. 1001. PRIORITY CONSIDERATION FOR SECURITY
PROJECTS.
The head of a Federal department or agency may
provide financial assistance with any increase in funds au-
thorized or made available by, or with any increase in obli-
gation authority made available by, this Act (including the
amendments made by this Act) only if the recipient of
such assistance certifies to the head of such department
or agency that the recipient will give priority consideration
to programs or projects that enhance security, to the ex-
tent that such programs or projects are immediately ready
to be implemented.
SEC. 1002. TEMPORARY WAIVER OF NON-FEDERAL SHARE.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and subject to subsection (b), in providing fi-
nancial assistance for a program or project with any in-
crease in funds authorized or made available by, or with
any increase in obligation authority made available by, this
Act (including the amendments made by this Act (other
than subtitle A of title I of this Act)), the head of a Fed-
eral department or agency, upon request of the recipient
of such assistance, may increase the Federal share of the
cost of the program or project to not to exceed 100 percent
of such cost.
(b) REPAYMENTS.—Before increasing the Federal
share of the cost of a program or project under subsection
(a), the head of a Federal department or agency shall
enter into a legally binding agreement with the recipient
of financial assistance for the program or project under
which the recipient agrees to repay the United States for
the increased Federal share of the program or project on
or before September 30, 2003.
SEC. 1003. MAINTENANCE OF EFFORT.
The head of a Federal department or agency may
provide financial assistance for a program or project with
any increase in funds authorized or made available by, or
with any increase in obligation authority made available
by, this Act (including the amendments made by this Act)
for a fiscal year only if the recipient of such assistance
certifies to the head of such department or agency that
the aggregate expenditure of funds of the recipient, exclu-
sive of Federal funds, for such program or project will be
maintained at a level that does not fall below the average
level of such expenditure for the preceding 2 fiscal years
of the recipient.
SEC. 1004. LABOR STANDARDS.
(a) PREVAILING WAGES.—The head of a Federal de-
partment or agency providing financial assistance with
any increase in funds authorized or made available by, or
with any increase in obligation authority made available
by, this Act (including the amendments made by this Act)
shall ensure that laborers and mechanics employed by con-
tractors and subcontractors in construction work financed
by such financial assistance will be paid wages not less
than those prevailing on similar construction in the local-
ity, 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 et seq.). The head of the department or
agency shall provide such financial assistance only after
being assured that required labor standards will be main-
tained on the construction work.
(b) WAGE RATES.—Wage rates in a collective bar-
gaining agreement negotiated under the Railway Labor
Act (45 U.S.C. 151 et seq.) are deemed for purposes of
this section to comply with the Act of March 3, 1931
(known as the Davis-Bacon Act; 40 U.S.C. 276a et seq.).
SEC. 1005. BUY AMERICA.
(a) PREFERENCE.—The head of a Federal depart-
ment or agency may provide financial assistance for a
project with any increase in funds authorized or made
available by, or with any increase in obligation authority
made available by, this Act (including the amendments
made by this Act) only if steel and manufactured goods
used in the project are produced in the United States.
(b) WAIVER.—The head of a Federal department or
agency may waive subsection (a) if the head of the Federal
department or agency finds that—
(1) applying subsection (a) would be incon-
sistent with the public interest;
(2) the steel and goods produced in the United
States are not produced in a sufficient and reason-
ably available amount or are not of a satisfactory
quality;
(3) when procuring a facility or equipment with
any increase in funds or obligation authority de-
scribed in subsection (a)—
(A) the cost of components and subcompo-
nents produced in the United States is more
than 60 percent of the cost of all components
of the facility or equipment; and
(B) final assembly of the facility or equip-
ment has occurred in the United States; or
(4) including domestic material will increase the
cost of the overall project by more than 25 percent.
(c) LABOR COSTS.—In this section, labor costs in-
volved in final assembly are not included in calculating the
cost of components.
Æ