(b) RETAIL TECHNICAL AND MARKETING ASSIST-
ANCE.—The Secretary of Energy shall enter into contracts 
with entities with demonstrated experience in assisting re-
tail fueling stations in installing refueling systems and 
marketing alternative fuels nationally, for the provision of 
technical and marketing assistance to recipients of grants 
under this section. Such assistance shall include— 
(1) technical advice for compliance with applica-
ble Federal and State environmental requirements; 
(2) help in identifying supply sources and se-
curing long-term contracts; and 
(3) provision of public outreach, education, and 
labeling materials. 
(c) ALLOCATION.—Grants under this section shall be 
made to applicants based upon criteria that will maximize 
the availability and use of the alternative fuel, and that 
will ensure that alternative fuels are available across the 
country, such as population, number of vehicles that can 
operate on E–85, number of diesel powered vehicles, num-
ber of retail fuel outlets, and saturation of vehicles capable 
of operating on the fuels described in subsection (a). The 
Secretary of Energy may also reserve funds appropriated 
for carrying out this section to support biofuels infrastruc-
ture development projects with a cost of greater than 
$1,000,000, that are of national significance. The Sec-
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retary shall reserve funds appropriated for the biofuels in-
frastructure development grant program for technical and 
marketing assistance described in subsection (b). Grants 
shall be prioritized based on criteria that include— 
(1) the public demand for each alternative fuel 
in a particular geographic area based on State reg-
istration records showing the number of automobiles 
that can be operated with alternative fuel; and 
(2) the opportunity to create or expand cor-
ridors of alternative fuel stations along interstate or 
State highways. 
(d) COMBINED APPLICATIONS.—States and local gov-
ernment entities and nonprofit entities may apply for as-
sistance under this section on behalf of a group of retailers 
within a certain geographic area, or to carry out regional 
or multistate deployment projects. Any such application 
shall certify the availability and details of a program to 
match the Federal grant as required under subsection (e) 
and list the retail locations that would receive the funds. 
(e) LIMITATIONS.—Assistance provided under this 
section shall not exceed— 
(1) 33 percent of the estimated cost of the in-
stallation, replacement, or conversion of motor fuel 
storage and dispensing infrastructure; or 
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(2) $180,000 for a combination of equipment at 
any one retail outlet. 
(f) OPERATION OF ALTERNATIVE FUEL STATIONS.— 
The Secretary shall establish rules that set forth require-
ments for grant recipients under this section that include 
providing to the public the alternative fuel, establishing 
a marketing plan that informs consumers of the price and 
availability of the alternative fuel, clearly labeling the dis-
pensers and related equipment, and providing periodic re-
ports on the status of the alternative fuel sales, the type 
and amount of the alternative fuel dispensed at each loca-
tion, and the average price of such fuel. 
(g) NOTIFICATION REQUIREMENTS.—Not later than 
the date on which each alternative fuel station begins to 
offer alternative fuel to the public, the grant recipient that 
used grant funds to construct or upgrade such station 
shall notify the Secretary of Energy of such opening. The 
Secretary of Energy shall add each new alternative fuel 
station to the alternative fuel station locator on its 
Website when it receives notification under this sub-
section. 
(h) INELIGIBILITY.—No person may receive assist-
ance under this section and receive a credit under section 
30C of the Internal Revenue Code of 1986. 
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(i) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy for carrying out this section $200,000,000 for each 
of the fiscal years 2007 through 2011, and such sums as 
may be necessary thereafter. 
TITLE IV—GOVERNMENT USE 
AND DIVERSITY OF SUPPLY 
SEC. 401. RENEWABLE FUEL REGULATIONS. 
The Secretary of Energy shall issue regulations under 
section 212 of the Clean Air Act (as added by section 1511 
of the Energy Policy Act of 2005) to provide for cellulosic 
ethanol production loan guarantees and issue a request for 
proposals under subsection (b) of such section 212 within 
90 days after the enactment of this Act. 
SEC. 402. GRANTS FOR CELLULOSIC ETHANOL PRODUC-
TION. 
Subsection (s) of section 211 of the Clean Air Act 
is redesignated as subsection (t) and subsection (r) of such 
section 211 (as added by section 1512 of the Energy Pol-
icy Act of 2005), relating to conversion assistance for cel-
lulosic biomass, waste-derived ethanol, and approved re-
newable fuels, is redesignated as subsection (s) and 
amended as follows: 
(1) By adding the following new subparagraphs 
at the end of paragraph (3): 
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‘‘(D) $500,000,000 for fiscal year 2009. 
‘‘(E) $500,000,000 for fiscal year 2010.’’. 
(2) By adding the following new paragraph at 
the end thereof: 
‘‘(5) GEOGRAPHICAL DISPERSION.—The grants 
under this subsection shall be made to recipients dis-
tributed regionally across the country in such man-
ner that an eligible production facility is constructed 
in each PADD (and each of the subpads in PADD 
1) throughout the country with each such facility 
using, to the extent possible, a different feedstock 
material.’’. 
SEC. 403. STANDARD SPECIFICATIONS FOR BIODIESEL. 
Section 211 of the Clean Air Act is amended by add-
ing the following new subsection at the end thereof: 
‘‘(u) STANDARD SPECIFICATIONS FOR BIODIESEL.— 
Not later than 180 days after the enactment of this sub-
section, the Administrator shall promulgate regulations es-
tablishing a series of uniform per gallon fuel standards 
for categories of biodiesel fuel and designate an identifica-
tion number for fuel meeting each the standard in each 
such category so that vehicle manufacturers are able to 
design engines to use biodiesel fuel meeting one or more 
of such standards.’’. 
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SEC. 404. REQUIREMENT FOR GREATER USE OF ALTER-
NATIVE FUELS IN FEDERAL FLEET. 
Section 400AA(a)(3)(E) of the Energy Policy and 
Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended 
by adding at the end the following new clauses: 
‘‘(iii) The report under clause (ii) also shall include 
an identification of the geographic areas where the alter-
native fuel required to be used in dual fueled vehicles ac-
quired pursuant to this section is not reasonably available, 
as certified under clause (i)(I), and a list of such areas 
where it would be most beneficial, in order of priority, to 
install a pump for dispensing a fuel known as E–85 or 
biodiesel fuel for such vehicles. 
‘‘(iv) The Secretary may not grant a waiver under 
clause (i) in any fiscal year following a fiscal year in which 
the report under clause (ii) is not filed. In the case of 
an agency that receives a waiver under clause (i) for 2 
successive fiscal years, the agency shall submit to the Sec-
retary and Congress recommendations for solving the 
problems causing the need for the waiver.’’. 
SEC. 405. REQUIREMENT FOR INSPECTOR GENERAL INVES-
TIGATIONS 
RELATING 
TO 
ALTERNATIVE 
FUEL USE AND SUPPLY IN FEDERAL AGEN-
CIES AND REGULATIONS. 
(a) REQUIREMENT.—The Inspector General of each 
department or agency shall conduct a comprehensive in-
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vestigation into alternative fuel use and supply within the 
department or agency to identify the reasons why alter-
native fuels are not being used in all dual fueled vehicles 
operated by the department or agency. 
(b) MATTERS COVERED.—At a minimum, the inves-
tigation required under subsection (a) shall cover the fol-
lowing: 
(1) The location of the dual fueled vehicles op-
erated by the department or agency and the location 
of the nearest alternative fuel pumps. 
(2) Whether dual fueled vehicles operated by 
the department or agency would make better use of 
alternative fuel if the vehicles were redeployed to 
other geographic areas. 
(3) The steps undertaken by the head of the de-
partment or agency to ensure that the dual fueled 
vehicles use alternative fuel, including— 
(A) whether such use is a priority for the 
department or agency; and 
(B) whether and how often waivers are 
sought 
and 
obtained 
under 
section 
400AA(a)(3)(E) of the Energy Policy and Con-
servation Act (42 U.S.C. 6374(a)(3)(E)). 
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(4) The manner in which use of alternative fuel 
is kept track of in vehicles leased by the department 
or agency. 
(c) REPORT.—The Inspector General of each depart-
ment or agency shall submit to Congress a report on the 
investigation conducted under subsection (a) not later 
than January 3, 2007. The report shall include the results 
of the investigation and recommendations by the Inspector 
General for increased use of alternative fuels in the dual 
fueled vehicles operated by the department or agency. 
SEC. 406. REPORT ON VEHICLES AND INFRASTRUCTURE 
FOR ALTERNATIVE FUEL USE. 
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to Congress a report that identifies, across the Armed 
Forces, the locations and concentrations of flex-fuel vehi-
cles in the current and planned inventory of the Depart-
ment of Defense, as well as the diesel engine vehicles and 
equipment, so as to prioritize the location and placement 
of new alternative fuel infrastructure to maximize the use 
of alternative fuels (such as E–85 and biodiesel) in vehi-
cles acquired under the requirements of the Energy Policy 
Act of 1992. The report shall also identify the locations 
that are currently served by contract or commercial avail-
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ability, and contain recommendations for future coordina-
tion and use of commercial outlets of alternative fuels. 
SEC. 407. FUNDS SET ASIDE FOR ALTERNATIVE FUEL IN-
FRASTRUCTURE. 
(a) PERCENTAGE REQUIRED.—Of the amounts ap-
propriated or otherwise made available for a fiscal year 
for activities of the Defense Energy Support Center of the 
Defense Logistics Agency for noncombat fuel infrastruc-
ture, not less than 5 percent shall be available only for 
alternative fuel (such as E–85 and biodiesel) infrastruc-
ture. 
(b) TERMINATION.—The requirement of subsection 
(a) terminates as of the date on which the Secretary of 
Defense submits to Congress the Secretary’s certification 
that the Department of Defense can run all noncombat 
flex-fuel vehicles in the inventory of the Department on 
alternative fuels (such as E–85 and biodiesel). 
SEC. 408. AUTHORITY FOR DEPARTMENT OF DEFENSE TO 
ENTER INTO LONG-TERM CONTRACTS TO 
PROCURE BIOBASED FUEL AND UNCONVEN-
TIONAL FUEL. 
Section 2398a of title 10, United States Code, is 
amended— 
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(1) in subsection (b), by inserting after ‘‘cov-
ered fuel’’ the following: ‘‘, biobased fuel, or coal-to- 
liquid fuel’’; 
(2) in subsection (d)— 
(A) by inserting after ‘‘covered fuel’’ the 
following: ‘‘, biobased fuel, or coal-to-liquid 
fuel’’; and 
(B) by striking ‘‘1 or more years’’ and in-
serting ‘‘up to 25 years’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘biobased fuel’ has the meaning 
provided in section 303(2) of the Biomass Research 
and Development Act of 2000 (7 U.S.C. 8101 
note)), including E–85 gasoline, biodiesel, or bio-
diesel blended fuel. 
‘‘(2) The term ‘coal-to-liquid fuel’ means a fuel 
produced from a coal-to-liquid process or technology 
in a coal-to-liquid facility. 
‘‘(3) The term ‘coal-to-liquid’ means— 
‘‘(A) with respect to a process or tech-
nology, the use of the coal resources of the 
United States, using the class of chemical reac-
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tions known as Fischer-Tropsch, to produce 
synthetic fuel suitable for transportation; and 
‘‘(B) with respect to a facility, the portion 
of a facility related to the Fischer-Tropsch 
process, or related to Fischer-Tropsch finished 
fuel production, that ensures the capture, trans-
portation, and sequestration of byproducts of 
the use of coal at the facility, including carbon 
emissions.’’. 
SEC. 409. FEDERAL SUPPORT FOR PLUG-IN HYBRID ELEC-
TRIC VEHICLES. 
(a) AMENDMENT.—Section 301 of the Energy Policy 
Act of 1992 (42 U.S.C. 13211) is amended— 
(1) in paragraph (8)— 
(A) by striking ‘‘or’’ at the end of subpara-
graph (A); 
(B) by inserting ‘‘or’’ at the end of sub-
paragraph (B); and 
(C) by adding after subparagraph (B) the 
following new subparagraph: 
‘‘(C) a hybrid electric vehicle;’’; 
(2) by redesignating paragraphs (11), (12), 
(13), and (14) as paragraphs (12), (13), (14), and 
(16) respectively; 
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(3) by inserting after paragraph (10) the fol-
lowing new paragraph: 
‘‘(11) the term ‘hybrid electric vehicle’ means a 
vehicle that— 
‘‘(A) can operate on either liquid combus-
tible fuel or electric power provided by an on-
board battery; and 
‘‘(B) utilizes regenerative power capture 
technology to recover energy expended in brak-
ing the vehicle for use in recharging the bat-
tery;’’; 
(4) in paragraph (14), as so redesignated by 
paragraph (2) of this subsection, by striking ‘‘and’’ 
at the end; and 
(5) by inserting after paragraph (14), as so re-
designated by paragraph (2) of this subsection, the 
following new paragraph: 
‘‘(15) the term ‘plug-in hybrid electric vehicle’ 
means a hybrid electric vehicle that can operate sole-
ly on electric power for a minimum of 20 miles 
under city driving conditions, and that is capable of 
recharging its battery from an offboard electricity 
source; and’’. 
(b) PLUG-IN HYBRID ELECTRIC VEHICLE MATCHING 
GRANTS.— 
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(1) ESTABLISHMENT.—The Secretary of En-
ergy shall establish a competitive grant program to 
provide not more than 25 grants annually to State 
governments, local governments, metropolitan trans-
portation authorities, or combinations thereof for the 
purposes of procuring and testing plug-in hybrid 
electric vehicles. 
(2) APPLICATIONS.— 
(A) REQUIREMENTS.—The Secretary shall 
issue requirements for applying for grants 
under the program. The Secretary shall require 
that applications, at a minimum, include a de-
scription of how data will be— 
(i) collected on the— 
(I) performance of the vehicle or 
vehicles and the components, includ-
ing the battery, energy management, 
and charging systems, under various 
driving speeds, trip ranges, traffic, 
and other driving conditions; 
(II) costs of the vehicle or vehi-
cles, including acquisition, operating, 
and maintenance costs, and how the 
project or projects will be self-sus-
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taining after Federal assistance is 
completed; and 
(III) emissions of the vehicle or 
vehicles, including greenhouse gases, 
and the amount of petroleum dis-
placed as a result of the project or 
projects; and 
(ii) summarized for dissemination to 
the Department of Energy, other grantees, 
and the public. 
(B) PARTNERS.—An applicant under sub-
paragraph (A) may carry out a project or 
projects in partnership with one or more private 
entities. 
(C) RESTRICTIONS.—The Secretary shall 
award grants under this subsection with geo-
graphic diversity such that there is at least one 
recipient government partner in every PADD, 
and in every Sub-PADD in the case of PADD 
1. 
(c) REPORT.—The Secretary of Energy shall report 
to Congress on the potential for Federal Government pro-
curement and acquisition of plug-in electric hybrid vehi-
cles, including a proposed schedule for the acquisition of 
such vehicles, and including possible participation in com-
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mitment programs such as the National Plug-in Partners 
Campaign. 
SEC. 410. CONGRESSIONAL ALTERNATIVE FUEL USE IN VE-
HICLES. 
(a) FINDINGS.—The Congress finds that— 
(1) Members of Congress should follow their 
own example of setting forth legislation that encour-
ages the use of alternatively fueled vehicles; 
(2) in 2005, the total cost of automobile leases 
for Members of Congress surpassed $1,000,000, and 
a collective switch to alternative fuel vehicles, hybrid 
vehicles, or vehicles powered by biofuels could poten-
tially save American taxpayers thousands of dollars 
annually; and 
(3) the General Services Administration has al-
ready purchased over 68,000 alternative fueled vehi-
cles for the use of Federal customers, more than any 
other organization in the United States. 
(b) STUDY.—Not later than 6 months after the date 
of enactment of this Act, the Comptroller General shall 
transmit to the Congress the results of a study, along with 
recommendations, as to how best to enable Members of 
Congress to procure alternative fuel vehicles for official 
use. 
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(c) LEASING ADVICE.—The Chief Administrative Of-
ficer of the House of Representatives and the Secretary 
of the Senate shall advise Members of their respective bod-
ies as to the available options to lease alternative fuel vehi-
cles, including vehicles treated as alternative fuels vehicles 
by the Administrator of General Services under standards 
established by the Administrator, any other vehicles pow-
ered by alternative fuel or synthetic fuel, and any other 
vehicles powered in whole or in part by flexible-fuel oper-
ating systems, biofuel operating systems, electrical oper-
ating systems, or hybrid-electrical operating systems. 
TITLE V—TRANSIT PROMOTION 
AND RAIL INFRASTRUCTURE 
DEVELOPMENT 
Subtitle A—Transit 
SEC. 501. INCREASE AND EXPANSION OF EMPLOYER-PRO-
VIDED MASS TRANSIT FRINGE BENEFITS. 
(a) EQUALIZATION OF LIMITATION FOR EMPLOYER- 
PROVIDED MASS TRANSIT FRINGE BENEFIT WITH LIMI-
TATION
FOR EMPLOYER-PROVIDED PARKING FRINGE 
BENEFIT.— 
(1) IN GENERAL.—Subparagraph (A) of section 
132(f)(2) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$100’’ and inserting ‘‘$175’’. 
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(2) INFLATION
ADJUSTMENT.—Subparagraph 
(A) of section 132(f)(6) of such Code is amended by 
striking the last sentence thereof. 
(b) EXTENSION OF TRANSPORTATION FRINGE BEN-
EFIT TO BICYCLE COMMUTERS.— 
(1) IN
GENERAL.—Paragraph (1) of section 
132(f) of the Internal Revenue Code of 1986 (relat-
ing to general rule for qualified transportation 
fringe) is amended by adding at the end the fol-
lowing: 
‘‘(D) Bicycle commuting allowance.’’. 
(2) BICYCLE
COMMUTING
ALLOWANCE
DE-
FINED.—Paragraph (5) of section 132(f) of such 
Code (relating to definitions) is amended by adding 
at the end the following: 
‘‘(F) BICYCLE COMMUTING ALLOWANCE.— 
The term ‘bicycle commuting allowance’ means 
an amount provided to an employee for trans-
portation on a bicycle if such transportation is 
in connection with travel between the employ-
ee’s residence and place of employment.’’. 
(3) LIMITATION
ON
EXCLUSION.—Paragraph 
(2) of section 132(f) of such Code is amended by 
striking ‘‘subparagraphs (A) and (B)’’ and inserting 
‘‘subparagraphs (A), (B), and (D)’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 502. GRANTS TO IMPROVE PUBLIC TRANSPORTATION 
SERVICES. 
(a) AUTHORIZATIONS OF APPROPRIATIONS.— 
(1) URBANIZED AREA FORMULA GRANTS.—In 
addition to other amounts authorized or made avail-
able, there is authorized to be appropriated 
$2,000,000,000 for fiscal year 2007 to carry out 
section 5307 of title 49, United States Code. 
(2) FORMULA GRANTS FOR OTHER THAN UR-
BANIZED AREAS.—In addition to other amounts au-
thorized or made available, there is authorized to be 
appropriated $200,000,000 for fiscal year 2007 to 
carry out section 5311 of such title. 
(b) USE OF FUNDS.— 
(1) IN GENERAL.—Funds appropriated pursu-
ant to this section shall be used for projects that will 
expand or improve public transportation services 
provided by existing public transportation systems, 
as determined by the Secretary of Transportation. 
(2) PRIORITY.—In awarding grants using funds 
appropriated pursuant to subsection (a)(2), the Sec-
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retary shall give priority to projects involving vehi-
cles that use clean fuels or are powered by biofuels. 
(c) MATCHING SHARE.— 
(1) DEFERRAL.—In awarding a grant for a 
project using funds appropriated pursuant to sub-
section (a), the Secretary may permit the recipient 
of the grant to defer payment of the non-Federal 
share of cost of the project for a period not to ex-
ceed 2 fiscal years. 
(2) LIMITATION.—The Secretary may permit 
such a deferral only if the Secretary determines that 
the deferral will not result in a decrease in the ag-
gregate amount of funds provided by the recipient in 
a fiscal year for projects under section 5307 or 5311 
of such title, as appropriate, as compared to the pre-
ceding fiscal year. 
(d) AVAILABILITY OF FUNDS.—Funds appropriated 
pursuant to this section shall remain available until ex-
pended. 
SEC. 503. STUDY OF FUEL SAVINGS FROM INTELLIGENT 
TRANSPORTATION SYSTEMS. 
Not later than 2 years after the date of enactment 
of this Act, the Secretary of Energy shall, in consultation 
with the Secretary of Transportation, report to Congress 
on the potential fuel savings from intelligent transpor-
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tation systems that help businesses and consumers to plan 
their travel and avoid delays. These systems may include 
web-based real-time transit information systems, conges-
tion information systems, carpool information systems, 
parking information systems, freight route management, 
and traffic management systems. The report shall include 
analysis of fuel savings, analysis of system costs, assess-
ment of local, State, and regional differences in applica-
bility, and evaluation of case studies, best practices, and 
emerging technologies from both the private and public 
sector. 
Subtitle B—Secure Access for 
Commuter Rail 
SEC. 511. SHORT TITLE. 
This subtitle may be cited as the ‘‘Transit Rail Ac-
commodation Improvement and Needs Act’’. 
SEC. 512. FINDINGS. 
The Congress finds that— 
(1) modern and efficient fixed guideway trans-
portation is important to the viability and well-being 
of metropolitan areas and to the energy conservation 
and self-sufficiency goals of the United States; 
(2) public convenience and necessity require the 
development of fixed guideway transportation sys-
tems in metropolitan areas presently without such 
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service, and the expansion of existing systems in 
metropolitan areas already receiving such service; 
and 
(3) use of existing railroad trackage and rights- 
of-way in and around metropolitan areas provides a 
unique and valuable opportunity for the development 
and expansion of fixed guideway transportation fa-
cilities with a minimum of disruption to the environ-
ment and the surrounding community. 
SEC. 513. RAIL TRANSIT ACCESS. 
(a) AMENDMENT.—Part E of subtitle V of title 49, 
United States Code, is amended by adding at the end the 
following new chapter: 
‘‘CHAPTER 285—RAIL TRANSIT ACCESS 
‘‘Sec. 
‘‘28501. Definitions. 
‘‘28502. Shared use of rail carrier trackage by mass transportation authorities. 
‘‘28503. Shared use of rail rights-of-way by mass transportation authorities. 
‘‘28504. Applicability of other laws. 
‘‘28505. Standards for Board action. 
‘‘§ 28501. Definitions 
‘‘In this chapter— 
‘‘(1) the term ‘Board’ means the Surface 
Transportation Board; 
‘‘(2) the term ‘capital work’ means mainte-
nance, restoration, reconstruction, capacity enhance-
ment, or rehabilitation work on trackage that would 
be treated, in accordance with generally accepted ac-
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counting principles, as a capital item rather than an 
expense; 
‘‘(3) the term ‘fixed guideway transportation’ 
means mass transportation (as defined in section 
5302(a)(7)) provided on, by, or using a fixed guide-
way (as defined in section 5302(a)(4)); 
‘‘(4) the term ‘mass transportation authority’ 
means a local governmental authority (as defined in 
section 5302(a)(6)) established to provide, or make 
a contract providing for, fixed guideway transpor-
tation; 
‘‘(5) the term ‘rail carrier’ means a person, 
other than a governmental authority, providing com-
mon carrier railroad transportation for compensation 
subject to the jurisdiction of the Board under chap-
ter 105; 
‘‘(6) the term ‘segregated fixed guideway facil-
ity’ means a fixed guideway facility constructed 
within the railroad right-of-way of a rail carrier but 
physically separate from trackage, including relo-
cated trackage, within the right-of-way used by a 
rail carrier for freight transportation purposes; and 
‘‘(7) the term ‘trackage’ means a railroad line 
of a rail carrier, including a spur, industrial, team, 
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switching, side, yard, or station track, and a facility 
of a rail carrier. 
‘‘§ 28502. Shared use of rail carrier trackage by mass 
transportation authorities 
‘‘(a) AUTHORITY.—If, after a reasonable period of 
negotiation, a mass transportation authority cannot reach 
agreement with a rail carrier to use trackage of, and have 
related services provided by, the rail carrier for purposes 
of fixed guideway transportation, the Board shall, upon 
application of the mass transportation authority or the rail 
carrier, and if the Board finds it necessary or useful to 
carry out this chapter— 
‘‘(1) order that the trackage be made available 
and the related services be provided to the mass 
transportation authority; and 
‘‘(2) prescribe reasonable terms and compensa-
tion for use of the trackage and provision of the re-
lated services, including the performance of capital 
work if the mass transportation authority has dem-
onstrated that such capital work is required for effi-
cient and reliable passenger operations on the track-
age to be used. 
‘‘(b) STANDARD FOR COMPENSATION; QUALITY OF 
SERVICE.—When prescribing reasonable compensation 
under subsection (a)(2), the Board shall consider alter-
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native cost allocation principles, including incremental cost 
and fully allocated cost, under rules promulgated by the 
Board within 6 months after the date of the enactment 
of the Transit Rail Accommodation Improvement and 
Needs Act. The Board shall consider quality of service by 
the rail carrier as a major factor when determining com-
pensation for the use of the trackage and providing the 
related services. 
‘‘(c) TERMS OF OPERATION.—When prescribing rea-
sonable terms under subsection (a)(2), the Board may pre-
scribe the number of trains that may be operated by or 
for the mass transportation authority, the speeds at which 
such trains may be operated, and the trackage mainte-
nance levels to be provided by the rail carrier. 
‘‘(d) ADDITIONAL TRAINS.—When a rail carrier and 
a mass transportation authority cannot agree to terms for 
the operation of additional trains by or for a mass trans-
portation authority over a rail line of the carrier, the mass 
transportation authority or the rail carrier may apply to 
the Board for an order establishing such terms. If the 
Board finds it reasonable to carry out this chapter, the 
Board shall order the rail carrier to allow operation of the 
requested additional trains on such terms as the Board 
finds reasonable under the circumstances. 
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‘‘(e) TRACKAGE MAINTENANCE.—If a mass transpor-
tation authority believes that maintenance or related cap-
ital work of trackage operated by or for the mass transpor-
tation authority has fallen below a necessary level to main-
tain reliable service at speeds necessary to provide conven-
ient and efficient mass transportation service, the mass 
transportation authority may, after notice to the rail car-
rier and a sufficient period for maintenance or related cap-
ital work improvements, apply to the Board for an order 
requiring the rail carrier to provide increased or improved 
maintenance or related capital work on the trackage. If 
the Board finds it reasonable to carry out this part, the 
Board shall order the rail carrier to provide such increased 
or improved maintenance or related capital work as the 
Board finds reasonable under the circumstances. The rem-
edy available under this subsection shall be in addition to 
any contract rights that a mass transportation authority 
may possess with respect to trackage maintenance or re-
lated capital work. 
‘‘(f) ACCELERATED SPEEDS.—If a rail carrier re-
fuses to allow accelerated speeds for trains operated by 
or for a mass transportation authority, the mass transpor-
tation authority may apply to the Board for an order re-
quiring the rail carrier to allow the accelerated speeds and 
related capital work required to permit operation at the 
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accelerated speeds. The Board shall decide whether accel-
erated speeds are practicable and which capital work 
would be required to make accelerated speeds practicable. 
The Board shall establish the maximum allowable speeds 
for trains operated by or for a mass transportation author-
ity on terms the Board decides are reasonable. 
‘‘(g) PREFERENCE
OVER
FREIGHT
TRANSPOR-
TATION.—Except in an emergency, and consistent with 
subtitle E of title V of the PROGRESS Act and regula-
tions issued thereunder, fixed guideway transportation 
provided by or for a mass transportation authority pursu-
ant to an order issued under subsection (a) has preference 
over freight transportation in using a rail line, junction, 
or crossing unless the Board orders otherwise under this 
chapter. A rail carrier affected by this subsection may 
apply to the Board for relief. If the Board decides that 
preference for fixed guideway transportation materially 
will lessen the quality of freight transportation provided 
to shippers, the Board shall establish the rights of the rail 
carrier and the mass transportation authority on reason-
able terms. 
‘‘(h) FINAL
DETERMINATION.—The Board shall 
make a determination under this section not later than 
120 days after a mass transportation authority or a rail 
carrier submits an application to the Board. 
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‘‘§ 28503. Shared use of rail rights-of-way by mass 
transportation authorities 
‘‘(a) GENERAL AUTHORITY.—If, after a reasonable 
period of negotiation, a mass transportation authority can-
not reach agreement with a rail carrier to acquire an inter-
est in a railroad right-of-way for the construction and op-
eration of a segregated fixed guideway facility, the mass 
transportation authority may apply to the Board for an 
order requiring the rail carrier to convey an interest to 
the authority. The Board, not later than 120 days after 
receiving the application, shall order the interest conveyed 
if— 
‘‘(1) the mass transportation authority assumes 
a reasonable allocation of costs associated with any 
necessary relocation of a rail carrier’s trackage with-
in the right-of-way; and 
‘‘(2) the fixed guideway transportation purpose 
of the proposed segregated fixed guideway facility 
cannot be met adequately at a reasonable cost by ac-
quiring an interest in other property. 
‘‘(b) COMPENSATION AND TERMS.—A conveyance or-
dered by the Board under this section shall be subject to 
the payment of just compensation and to such other rea-
sonable terms as the Board may prescribe. 
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‘‘§ 28504. Applicability of other laws 
‘‘(a) BOARD REVIEW OR APPROVAL.—Operations or 
conveyances undertaken pursuant to an order issued 
under section 28502 or 28503 are not subject to Board 
review or approval under subtitle IV of this title unless 
the Board, on a case-by-case basis, has determined that 
the mass transportation authority has assumed rights or 
obligations under such order to provide transportation 
subject to the jurisdiction of the Board under chapter 105. 
‘‘(b) CONTRACTUAL OBLIGATIONS
FOR CLAIMS.— 
Nothing in this chapter shall be construed to limit a rail 
transportation provider’s right under section 28103(b) to 
enter into contracts that allocate financial responsibility 
for claims. 
‘‘§ 28505. Standards for Board action 
‘‘In proceedings under sections 28502 and 28503 the 
Board shall utilize, to the extent relevant and feasible, the 
principles, standards, and precedents utilized in pro-
ceedings under sections 24308 and 24311(c) involving the 
National Railroad Passenger Corporation.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) LIMITATIONS ON RAIL PASSENGER TRANS-
PORTATION
LIABILITY.—Section 28103(a) of title 
49, United States Code, is amended by inserting ‘‘or 
other fixed guideway transportation’’ after ‘‘com-
muter’’. 
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(2) TABLE OF CHAPTERS.—The table of chap-
ters of subtitle V of title 49, United States Code, is 
amended by adding after the item relating to chap-
ter 283 the following new item: 
‘‘285. RAIL TRANSIT ACCESS ............................................................ 28501’’. 
SEC. 514. RAIL TRANSPORTATION POLICY. 
Section 10101 of title 49, United States Code, is 
amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(14); 
(2) by striking the period at the end of para-
graph (15) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(16) to encourage and promote the operation 
of safe, efficient, and reliable commuter rail pas-
senger service and other fixed guideway transpor-
tation systems, including operations where the serv-
ice will share lines, corridors, or other facilities with 
freight railroads or with intercity rail passenger 
service.’’. 
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Subtitle C—Intercity Passenger 
Rail and Rail Bond Program 
SEC. 521. CAPITAL ASSISTANCE FOR INTERCITY PAS-
SENGER RAIL SERVICE; STATE RAIL PLANS. 
(a) IN GENERAL.—Part C of subtitle V of title 49, 
United States Code, is amended by inserting the following 
after chapter 243: 
‘‘CHAPTER 244—INTERCITY PASSENGER RAIL SERVICE CORRIDOR 
CAPITAL ASSISTANCE 
‘‘Sec. 
‘‘24401. Definitions. 
‘‘24402. Capital investment grants to support intercity passenger rail service. 
‘‘24403. Project management oversight. 
‘‘24404. Use of capital grants to finance first-dollar liability of grant project. 
‘‘24405. Grant conditions. 
‘‘24406. Authorization of appropriations. 
‘‘§ 24401. Definitions 
‘‘In this chapter: 
‘‘(1) APPLICANT.—The term ‘applicant’ means 
a State (including the District of Columbia), a group 
of States, an Interstate Compact, or a public agency 
established by one or more States and having re-
sponsibility for providing intercity passenger rail 
service. 
‘‘(2) CAPITAL
PROJECT.—The term ‘capital 
project’ means a project or program in a State rail 
plan developed under chapter 225 of this title for— 
‘‘(A) acquiring, constructing, improving, or 
inspecting equipment or a facility for use in or 
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for the primary benefit of intercity passenger 
rail service, expenses incidental to the acquisi-
tion or construction (including designing, engi-
neering, location surveying, mapping, environ-
mental studies, and acquiring rights-of-way), 
payments for the capital portions of rail track-
age rights agreements, highway-rail grade 
crossing improvements related to intercity pas-
senger rail service, security, mitigating environ-
mental impacts, communication and signaliza-
tion improvements, relocation assistance, ac-
quiring replacement housing sites, and acquir-
ing, constructing, relocating, and rehabilitating 
replacement housing; 
‘‘(B) rehabilitating, remanufacturing or 
overhauling rail rolling stock and facilities used 
primarily in intercity passenger rail service; 
‘‘(C) costs associated with developing State 
rail plans; and 
‘‘(D) the first-dollar liability costs for in-
surance related to the provision of intercity pas-
senger rail service under section 24404. 
‘‘(3) INTERCITY PASSENGER RAIL SERVICE.— 
The term ‘intercity passenger rail service’ means 
transportation services with the primary purpose of 
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passenger transportation between towns, cities and 
metropolitan areas by rail, including high-speed rail, 
as defined in section 24102. 
‘‘§ 24402. Capital investment grants to support inter-
city passenger rail service 
‘‘(a) GENERAL AUTHORITY.— 
‘‘(1) The Secretary of Transportation may 
make grants under this section to an applicant to 
assist in financing the capital costs of facilities and 
equipment necessary to provide or improve intercity 
passenger rail transportation. 
‘‘(2) The Secretary shall require that a grant 
under this section be subject to the terms, condi-
tions, requirements, and provisions the Secretary de-
cides are necessary or appropriate for the purposes 
of this section, including requirements for the dis-
position of net increases in value of real property re-
sulting from the project assisted under this section 
and shall prescribe procedures and schedules for the 
awarding of grants under this chapter, including ap-
plication and qualification procedures and a record 
of decision on applicant eligibility. The Secretary 
shall issue a final rule establishing such procedures 
not later than 90 days after the date of enactment 
of this chapter. 
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‘‘(b) PROJECT AS PART OF STATE RAIL PLAN.— 
‘‘(1) The Secretary may not approve a grant for 
a project under this section unless the Secretary 
finds that the project is part of a State rail plan de-
veloped under chapter 225 of this title and that the 
applicant or recipient has or will have the legal, fi-
nancial, and technical capacity to carry out the 
project, satisfactory continuing control over the use 
of the equipment or facilities, and the capability and 
willingness to maintain the equipment or facilities. 
‘‘(2) An applicant shall provide sufficient infor-
mation upon which the Secretary can make the find-
ings required by this subsection. 
‘‘(3) If an applicant has not selected the pro-
posed operator of its service competitively, the appli-
cant shall provide written justification to the Sec-
retary showing why the proposed operator is the 
best, taking into account price and other factors, 
and that use of the proposed operator will not un-
necessarily increase the cost of the project. 
‘‘(c) PROJECT
SELECTION
CRITERIA.—The Sec-
retary, in selecting the recipients of financial assistance 
to be provided under subsection (a), shall— 
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‘‘(1) require that each proposed project meet all 
safety and security requirements that are applicable 
to the project under law; 
‘‘(2) give preference to projects with high levels 
of estimated ridership, increased on-time perform-
ance, reduced trip time, additional service frequency, 
or other significant service enhancements; 
‘‘(3) encourage intermodal connectivity through 
projects that provide direct connections between 
train stations, airports, bus terminals, subway sta-
tions, ferry ports, and other modes of transpor-
tation; 
‘‘(4) ensure that each project is compatible 
with, and is operated in conformance with— 
‘‘(A) plans developed pursuant to the re-
quirements of section 135 of title 23, United 
States Code; and 
‘‘(B) the national rail plan (if it is avail-
able); and 
‘‘(5) favor the following kinds of projects: 
‘‘(A) Projects that are expected to have a 
significant favorable impact on air or highway 
traffic congestion, capacity, or safety. 
‘‘(B) Projects that also improve freight or 
commuter rail operations. 
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‘‘(C) Projects that have significant envi-
ronmental benefits. 
‘‘(D) Projects that are— 
‘‘(i) at a stage of preparation that all 
pre-commencement compliance with envi-
ronmental protection requirements has al-
ready been completed; and 
‘‘(ii) ready to be commenced. 
‘‘(E) Projects with positive economic and 
employment impacts. 
‘‘(F) Projects that encourage the use of 
positive train control technologies. 
‘‘(G) Projects that have commitments of 
funding from non-Federal Government sources 
in a total amount that exceeds the minimum 
amount of the non-Federal contribution re-
quired for the project. 
‘‘(H) Projects that involve donated prop-
erty interests or services. 
‘‘(I) Projects that are identified by the 
Surface Transportation Board as necessary to 
improve the on time performance and reliability 
of intercity passenger rail under section 
24308(f). 
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‘‘(d) AMTRAK ELIGIBILITY.—To receive a grant 
under this section, the National Railroad Passenger Cor-
poration may enter into a cooperative agreement with 1 
or more States to carry out 1 or more projects on a State 
rail plan’s ranked list of rail capital projects developed 
under section 22504(a)(5) of this title. 
‘‘(e) LETTERS OF INTENT, FULL FUNDING GRANT 
AGREEMENTS, AND EARLY SYSTEMS WORK AGREE-
MENTS.— 
‘‘(1) The Secretary may issue a letter of intent 
to an applicant announcing an intention to obligate, 
for a major capital project under this section, an 
amount from future available budget authority speci-
fied in law that is not more than the amount stipu-
lated as the financial participation of the Secretary 
in the project. 
‘‘(2) The Secretary may make a full funding 
grant agreement with an applicant. The agreement 
shall— 
‘‘(A) establish the terms of participation by 
the United States Government in a project 
under this section; 
‘‘(B) establish the maximum amount of 
Government financial assistance for the project; 
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‘‘(C) cover the period of time for com-
pleting the project, including a period extending 
beyond the period of an authorization; and 
‘‘(D) make timely and efficient manage-
ment of the project easier according to the law 
of the United States. 
‘‘(3) The total estimated amount of future obli-
gations of the Government and contingent commit-
ments 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 24406, 
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 agree-
ments may be not more than a limitation specified 
in law. 
‘‘(f) FEDERAL SHARE OF NET PROJECT COST.— 
‘‘(1)(A) Based on engineering studies, studies 
of economic feasibility, and information on the ex-
pected use of equipment or facilities, the Secretary 
shall estimate the net project cost. 
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‘‘(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 commit-
ments to incur obligations to grant requests seeking 
a lower Federal share of the project net capital cost. 
‘‘(2) 50 percent of the average amounts ex-
pended by a State or group of States (including the 
District of Columbia) for capital projects to benefit 
intercity passenger rail service in fiscal years 2005 
and 2006 shall be credited towards the matching re-
quirements for grants awarded under this section. 
The Secretary may require such information as nec-
essary to verify such expenditures. 
‘‘(3) 50 percent of the average amounts ex-
pended by a State or group of States (including the 
District of Columbia) in a fiscal year beginning in 
2007 for capital projects to benefit intercity pas-
senger rail service or for the operating costs of such 
service above the average of expenditures made for 
such service in fiscal years 2005 and 2006 shall be 
credited towards the matching requirements for 
grants awarded under this section. The Secretary 
may require such information as necessary to verify 
such expenditures. 
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‘‘(g) UNDERTAKING PROJECTS IN ADVANCE.— 
‘‘(1) The Secretary may pay the Federal share 
of the net capital project cost to an applicant that 
carries out any part of a project described in this 
section according to all applicable procedures and re-
quirements 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. 
‘‘(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. 
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‘‘(3) The Secretary shall consider changes in 
capital project cost indices when determining the es-
timated cost under paragraph (2) of this subsection. 
‘‘(h) 2-YEAR AVAILABILITY.—Funds appropriated 
under this section shall remain available until expended. 
If any amount provided as a grant under this section is 
not obligated or expended for the purposes described in 
subsection (a) within 2 years after the date on which the 
State received the grant, such sums shall be returned to 
the Secretary for other intercity passenger rail develop-
ment projects under this section at the discretion of the 
Secretary. 
‘‘(i) PUBLIC-PRIVATE PARTNERSHIPS.— 
‘‘(1) IN
GENERAL.—A metropolitan planning 
organization, State transportation department, or 
other project sponsor may enter into an agreement 
with any public, private, or nonprofit entity to coop-
eratively implement any project funded with a grant 
under this chapter. 
‘‘(2) FORMS OF PARTICIPATION.—Participation 
by an entity under paragraph (1) may consist of— 
‘‘(A) ownership or operation of any land, 
facility, locomotive, rail car, vehicle, or other 
physical asset associated with the project; 
‘‘(B) cost-sharing of any project expense; 
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‘‘(C) carrying out administration, construc-
tion management, project management, project 
operation, or any other management or oper-
ational duty associated with the project; and 
‘‘(D) any other form of participation ap-
proved by the Secretary. 
‘‘(3) SUBALLOCATION.—A State may allocate 
funds under this section to any entity described in 
paragraph (1). 
‘‘(j) SPECIAL TRANSPORTATION CIRCUMSTANCES.— 
In carrying out this section, the Secretary shall allocate 
an appropriate portion of the amounts available under this 
section to provide grants to States 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 pub-
lic benefits (as defined in chapter 225) as determined by 
the Secretary. 
‘‘§ 24403. Project management oversight 
‘‘(a) PROJECT
MANAGEMENT
PLAN
REQUIRE-
MENTS.—To receive Federal financial assistance for a 
major capital project under this chapter, an applicant 
must prepare and carry out a project management plan 
approved by the Secretary of Transportation. 
‘‘(b) SECRETARIAL OVERSIGHT.— 
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‘‘(1) The Secretary may use no more than 0.5 
percent of amounts made available in a fiscal year 
for capital projects under this chapter to enter into 
contracts to oversee the construction of such 
projects. 
‘‘(2) The Secretary may use amounts available 
under paragraph (1) of this subsection to make con-
tracts for safety, procurement, management, and fi-
nancial compliance reviews and audits of a recipient 
of amounts under paragraph (1). 
‘‘(3) The Federal Government shall pay the en-
tire cost of carrying out a contract under this sub-
section. 
‘‘(c) ACCESS TO SITES AND RECORDS.—Each recipi-
ent of assistance under this chapter shall provide the Sec-
retary and a contractor the Secretary chooses under sub-
section (b) of this section with access to the construction 
sites and records of the recipient when reasonably nec-
essary. 
‘‘§ 24404. Use of capital grants to finance first-dollar 
liability of grant project 
‘‘Notwithstanding the requirements of section 24402 
of this chapter, the Secretary of Transportation may ap-
prove the use of capital assistance under this chapter to 
fund self-insured retention of risk for the first tier of li-
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ability insurance coverage for rail passenger service associ-
ated with the capital assistance grant, but the coverage 
may 
not 
exceed 
$20,000,000 
per 
occurrence 
or 
$20,000,000 in aggregate per year. 
‘‘§ 24405. Grant conditions 
‘‘(a) DOMESTIC BUYING PREFERENCE.— 
‘‘(1) REQUIREMENT.— 
‘‘(A) IN
GENERAL.—In carrying out a 
project funded in whole or in part with a grant 
under this chapter, the grant recipient shall 
purchase only— 
‘‘(i) unmanufactured articles, mate-
rial, and supplies mined or produced in the 
United States; or 
‘‘(ii) manufactured articles, material, 
and supplies manufactured in the United 
States substantially from articles, material, 
and supplies mined, produced, or manufac-
tured in the United States. 
‘‘(B) DE
MINIMIS
AMOUNT.—Subpara-
graph (A) applies only to a purchase in an total 
amount that is not less than $1,000,000. 
‘‘(2) EXEMPTIONS.—On application of a recipi-
ent, the Secretary may exempt a recipient from the 
requirements of this subsection if the Secretary de-
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cides that, for particular articles, material, or sup-
plies— 
‘‘(A) such requirements are inconsistent 
with the public interest; 
‘‘(B) the cost of imposing the requirements 
is unreasonable; or 
‘‘(C) the articles, material, or supplies, or 
the articles, material, or supplies from which 
they are manufactured, are not mined, pro-
duced, or manufactured in the United States in 
sufficient and reasonably available commercial 
quantities and are not of a satisfactory quality. 
‘‘(3) UNITED STATES DEFINED.—In this sub-
section, the term ‘the United States’ means the 
States, territories, and possessions of the United 
States and the District of Columbia. 
‘‘(b) OPERATORS DEEMED RAIL CARRIERS AND EM-
PLOYERS FOR CERTAIN PURPOSES.—A person that con-
ducts rail operations over rail infrastructure constructed 
or improved with funding provided in whole or in part in 
a grant made under this chapter— 
‘‘(1) shall be considered an employer for pur-
poses of the Railroad Retirement Act of 1974 (45 
U.S.C. 231 et seq.); and 
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‘‘(2) shall be considered a carrier for purposes 
of the Railway Labor Act (43 U.S.C. 151 et seq.). 
‘‘(c) GRANT CONDITIONS.—The Secretary shall re-
quire as a condition of making any grant under this chap-
ter that includes the improvement or use of rights-of-way 
owned by a railroad that— 
‘‘(1) a written agreement exist between the ap-
plicant and the railroad regarding such use and 
ownership, including— 
‘‘(A) any compensation for such use; 
‘‘(B) assurances regarding the adequacy of 
infrastructure capacity to accommodate both 
existing and future freight and passenger oper-
ations; and 
‘‘(C) an assurance by the railroad that col-
lective bargaining agreements with the rail-
road’s employees (including terms regulating 
the contracting of work) will remain in full 
force and effect according to their terms for 
work performed by the railroad on the railroad 
transportation corridor; and 
‘‘(2) the applicant agrees to comply with— 
‘‘(A) the standards of section 24312 of this 
title, as such section was in effect on September 
1, 2003, with respect to the project in the same 
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manner that the National Railroad Passenger 
Corporation is required to comply with those 
standards for construction work financed under 
an agreement made under section 24308(a) of 
this title; and 
‘‘(B) the protective arrangements estab-
lished under section 504 of the Railroad Revi-
talization and Regulatory Reform Act of 1976 
(45 U.S.C. 836) with respect to employees af-
fected by actions taken in connection with the 
project to be financed in whole or in part by 
grants under this chapter. 
‘‘(d) REPLACEMENT OF EXISTING INTERCITY PAS-
SENGER RAIL SERVICE.— 
‘‘(1) COLLECTIVE
BARGAINING
AGREEMENT 
FOR INTERCITY PASSENGER RAIL PROJECTS.—Any 
entity providing intercity passenger railroad trans-
portation that begins operations after the date of en-
actment of this Act on a project funded in whole or 
in part by grants made under this chapter and re-
places intercity rail passenger service that was pro-
vided by Amtrak, unless such service was provided 
solely by Amtrak to another entity, as of such date 
shall enter into an agreement with the authorized 
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bargaining agent or agents for adversely affected 
employees of the predecessor provider that— 
‘‘(A) gives each such qualified employee of 
the predecessor provider priority in hiring ac-
cording to the employee’s seniority on the pred-
ecessor provider for each position with the re-
placing entity that is in the employee’s craft or 
class and is available within 3 years after the 
termination of the service being replaced; 
‘‘(B) establishes a procedure for notifying 
such an employee of such positions; 
‘‘(C) establishes a procedure for such an 
employee to apply for such positions; and 
‘‘(D) establishes rates of pay, rules, and 
working conditions. 
‘‘(2) IMMEDIATE REPLACEMENT SERVICE.— 
‘‘(A) NEGOTIATIONS.—If the replacement 
of preexisting intercity rail passenger service oc-
curs concurrent with or within a reasonable 
time before the commencement of the replacing 
entity’s rail passenger service, the replacing en-
tity shall give written notice of its plan to re-
place existing rail passenger service to the au-
thorized collective bargaining agent or agents 
for the potentially adversely affected employees 
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of the predecessor provider at least 90 days be-
fore the date on which it plans to commence 
service. Within 5 days after the date of receipt 
of such written notice, negotiations between the 
replacing entity and the collective bargaining 
agent or agents for the employees of the prede-
cessor provider shall commence for the purpose 
of reaching agreement with respect to all mat-
ters set forth in subparagraphs (A) through (D) 
of paragraph (1). The negotiations shall con-
tinue for 30 days or until an agreement is 
reached, whichever is sooner. If at the end of 
30 days the parties have not entered into an 
agreement with respect to all such matters, the 
unresolved issues shall be submitted for arbitra-
tion in accordance with the procedure set forth 
in subparagraph (B). 
‘‘(B) ARBITRATION.—If an agreement has 
not been entered into with respect to all mat-
ters set forth in subparagraphs (A) through (D) 
of paragraph (1) as described in subparagraph 
(A) of this paragraph, the parties shall select 
an arbitrator. If the parties are unable to agree 
upon the selection of such arbitrator within 5 
days, either or both parties shall notify the Na-
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tional Mediation Board, which shall provide a 
list of seven arbitrators with experience in arbi-
trating rail labor protection disputes. Within 5 
days after such notification, the parties shall al-
ternately strike names from the list until only 
1 name remains, and that person shall serve as 
the neutral arbitrator. Within 45 days after se-
lection of the arbitrator, the arbitrator shall 
conduct a hearing on the dispute and shall 
render a decision with respect to the unresolved 
issues among the matters set forth in subpara-
graphs (A) through (D) of paragraph (1). This 
decision shall be final, binding, and conclusive 
upon the parties. The salary and expenses of 
the arbitrator shall be borne equally by the par-
ties; all other expenses shall be paid by the 
party incurring them. 
‘‘(3) SERVICE
COMMENCEMENT.—A replacing 
entity under this subsection shall commence service 
only after an agreement is entered into with respect 
to the matters set forth in subparagraphs (A) 
through (D) of paragraph (1) or the decision of the 
arbitrator has been rendered. 
‘‘(4) SUBSEQUENT
REPLACEMENT
OF
SERV-
ICE.—If the replacement of existing rail passenger 
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service takes place within 3 years after the replacing 
entity commences intercity passenger rail service, 
the replacing entity and the collective bargaining 
agent or agents for the adversely affected employees 
of the predecessor provider shall enter into an agree-
ment with respect to the matters set forth in sub-
paragraphs (A) through (D) of paragraph (1). If the 
parties have not entered into an agreement with re-
spect to all such matters within 60 days after the 
date on which the replacing entity replaces the pred-
ecessor provider, the parties shall select an arbi-
trator using the procedures set forth in paragraph 
(2)(B), who shall, within 20 days after the com-
mencement of the arbitration, conduct a hearing and 
decide all unresolved issues. This decision shall be 
final, binding, and conclusive upon the parties. 
‘‘(e) INAPPLICABILITY
TO CERTAIN RAIL OPER-
ATIONS.—Nothing in this section applies to— 
‘‘(1) commuter rail passenger transportation 
(as defined in section 24102(4) of this title) oper-
ations of a State or local government authority (as 
those terms are defined in section 5302(11) and (6), 
respectively, of this title) eligible to receive financial 
assistance under section 5307 of this title, or to its 
contractor performing services in connection with 
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commuter rail passenger operations (as so defined); 
or 
‘‘(2) the National Railroad Passenger Corpora-
tion’s access rights to railroad rights of way and fa-
cilities under current law for projects funded under 
this chapter where train operating speeds do not ex-
ceed 79 miles per hour. 
‘‘§ 24406. Authorization of appropriations. 
‘‘There are authorized to be appropriated to the Sec-
retary of Transportation for carrying out this chapter 
$200,000,000 for each of the fiscal years 2007 through 
2011.’’. 
(b) CONFORMING AMENDMENTS.—The table of chap-
ters for subtitle V of title 49, United States Code, is 
amended by inserting the following after the item relating 
to chapter 243: 
‘‘244. INTERCITY PASSENGER RAIL SERVICE CAPITAL AS-
SISTANCE ................................................................... 24401’’. 
SEC. 522. STATE RAIL PLANS. 
(a) IN GENERAL.—Part B of subtitle V of title 49, 
United States Code, is amended by adding at the end the 
following: 
‘‘CHAPTER 225—STATE RAIL PLANS AND HIGH PRIORITY 
PROJECTS 
‘‘Sec. 
‘‘22501. Definitions. 
‘‘22502. Authority. 
‘‘22503. Purposes. 
‘‘22504. Transparency; coordination; review. 
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‘‘22505. Content. 
‘‘22506. Review. 
‘‘§ 22501. Definitions 
‘‘In this subchapter: 
‘‘(1) PRIVATE BENEFIT.— 
‘‘(A) IN
GENERAL.—The term ‘private 
benefit’— 
‘‘(i) means a benefit accrued to a per-
son or private entity, other than the Na-
tional Railroad Passenger Corporation, 
that directly improves the economic and 
competitive condition of that person or en-
tity through improved assets, cost reduc-
tions, service improvements, or any other 
means as defined by the Secretary; and 
‘‘(ii) shall be determined on a project- 
by-project basis, based upon an agreement 
between the parties. 
‘‘(B) CONSULTATION.—The Secretary may 
seek the advice of the States and rail carriers 
in further defining this term. 
‘‘(2) PUBLIC BENEFIT.— 
‘‘(A) IN GENERAL.—The term ‘public ben-
efit’— 
‘‘(i) means a benefit accrued to the 
public in the form of enhanced mobility of 
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