‘‘(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 ef-
ficient, and have economic benefits. 
‘‘(d) AMTRAK ELIGIBILITY.—To receive a grant under 
this section, the National Railroad Passenger Corporation 
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. 
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‘‘(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 Secretary 
shall notify in writing the Committee on Transpor-
tation and Infrastructure of the House of Representa-
tives and the Committee on Commerce, Science, and 
Transportation of the Senate and the House and Sen-
ate Committees on Appropriations of the proposed let-
ter or agreement. The Secretary shall include with the 
notification a copy of the proposed 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 
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‘‘(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 au-
thority 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, ex-
cept 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 satisfactory to the 
Secretary, that the applicant has shown reasonable 
diligence in seeking the most favorable financing 
terms. 
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‘‘(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 ob-
ligates an amount of available budget authority speci-
fied in law and shall provide for reimbursement of 
preliminary costs of carrying out the project, includ-
ing land acquisition, timely procurement of system 
elements for which specifications are decided, and 
other activities the Secretary decides are appropriate 
to make efficient, long-term project management easi-
er. A work agreement shall cover the period of time 
the Secretary considers appropriate. The period may 
extend beyond the period of current authorization. In-
terest and other financing costs of efficiently carrying 
out the work agreement within a reasonable time are 
a cost of carrying out the agreement, except that eligi-
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ble 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 satisfactory to the Secretary, that 
the applicant has shown reasonable diligence in seek-
ing the most favorable financing terms. If an appli-
cant does not carry out the project for reasons within 
the control of the applicant, the applicant shall repay 
all Government payments made under the work agree-
ment plus reasonable interest and penalty charges the 
Secretary establishes in the agreement. 
‘‘(4) The total estimated amount of future obliga-
tions of the Government and contingent commitments 
to incur obligations covered by all outstanding letters 
of intent, full funding grant agreements, and early 
systems work agreements may be not more than the 
amount authorized under section 101(d) of the Pas-
senger Rail Investment and Improvement Act of 2008, 
less an amount the Secretary reasonably estimates is 
necessary for grants under this section not covered by 
a letter. The total amount covered by new letters and 
contingent commitments included in full funding 
grant agreements and early systems work agreements 
may be not more than a limitation specified in law. 
‘‘(f) FEDERAL SHARE OF NET PROJECT COST.— 
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‘‘(1)(A) Based on engineering studies, studies of 
economic feasibility, and information on the expected 
use of equipment or facilities, the Secretary shall esti-
mate the net project cost. 
‘‘(B) A grant for the project shall not exceed 80 
percent of the project net capital cost. 
‘‘(C) The Secretary shall give priority in allo-
cating future obligations and contingent commitments 
to incur obligations to grant requests seeking a lower 
Federal share of the project net capital cost. 
‘‘(2) Up to an additional 20 percent of the re-
quired non-Federal funds may be funded from 
amounts appropriated to or made available to a de-
partment or agency of the Federal Government that 
are eligible to be expended for transportation. 
‘‘(3) 50 percent of the average amounts expended 
by a State or group of States (including the District 
of Columbia) for capital projects to benefit intercity 
passenger rail service and operating costs in fiscal 
years 2002, 2003, 2004, 2005, 2006, 2007, and 2008 
shall be credited towards the matching requirements 
for grants awarded in fiscal years 2009, 2010, and 
2011 under this section. The Secretary may require 
such information as necessary to verify such expendi-
tures. 
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‘‘(4) 50 percent of the average amounts expended 
by a State or group of States (including the District 
of Columbia) in a fiscal year, beginning in fiscal year 
2007, for capital projects to benefit intercity pas-
senger rail service or for the operating costs of such 
service above the average capital and operating ex-
penditures made for such service in fiscal years 2004, 
2005, 2006, 2007, and 2008 shall be credited towards 
the matching requirements for grants awarded under 
this section. The Secretary may require such informa-
tion as necessary to verify such expenditures. 
‘‘(g) UNDERTAKING PROJECTS IN ADVANCE.— 
‘‘(1) The Secretary may pay the Federal share of 
the net capital project cost to an applicant that car-
ries out any part of a project described in this section 
according to all applicable procedures and require-
ments if— 
‘‘(A) the applicant applies for the payment; 
‘‘(B) the Secretary approves the payment; 
and 
‘‘(C) before carrying out the part of the 
project, the Secretary approves the plans and 
specifications for the part in the same way as 
other projects under this section. 
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‘‘(2) The cost of carrying out part of a project 
includes the amount of interest earned and payable 
on bonds issued by the applicant to the extent pro-
ceeds of the bonds are expended in carrying out the 
part. However, the amount of interest under this 
paragraph may not be more than the most favorable 
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 esti-
mated 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 sub-
section (a) within 2 years after the date on which the State 
received the grant, such sums shall be returned to the Sec-
retary for other intercity passenger rail development 
projects under this section at the discretion of the Secretary. 
‘‘(i) SPECIAL TRANSPORTATION CIRCUMSTANCES.—In 
carrying out this section, the Secretary shall allocate an 
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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 developed under 
chapter 225 of this title that provide public benefits 
(as defined in chapter 225) as determined by the Sec-
retary; 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 charac-
teristics of the geography of that State or other rel-
evant 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 au-
thorized under section 101(d) of the Passenger Rail Invest-
ment and Improvement Act of 2008 beginning in fiscal year 
2009 for grants for capital projects eligible under this sec-
tion not exceeding $2,000,000, including costs eligible under 
section 206(c) of that Act. The Secretary may wave require-
ments of this section, including state rail plan require-
ments, as appropriate. 
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‘‘§ 24403. Project management oversight 
‘‘(a) PROJECT MANAGEMENT PLAN REQUIREMENTS.— 
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 Sec-
retary 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 con-
struction change orders; 
‘‘(6) 
organizational 
structures, 
management 
skills, and staffing levels required throughout the con-
struction phase; 
‘‘(7) quality control and quality assurance func-
tions, procedures, and responsibilities for construc-
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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 test-
ing the operational system or its major components; 
‘‘(11) periodic updates of the plan, especially re-
lated to project budget and project schedule, financ-
ing, 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). 
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