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Secretary shall establish and publish criteria for project se-
lection, set a deadline for grant applications, and provide 
a schedule for project selection: Provided further, That the 
provisions of section 24312 of title 49, United States Code, 
shall apply to grantees assisted under this paragraph: Pro-
vided further, That to be eligible for this assistance, States 
must include intercity passenger rail service as an integral 
part of statewide transportation planning as required 
under section 135 of title 23, United States Code: Provided 
further, That the specific project must be on the Statewide 
Transportation Improvement Plan at the time of the appli-
cation to qualify: Provided further, That the Secretary give 
priority to applications for projects that improve the safety 
and reliability of intercity passenger trains, involve a com-
mitment by freight railroads to an enforceable on-time per-
formance of passenger trains of 80 percent or greater, in-
volve a commitment by freight railroads of financial re-
sources commensurate with the benefit expected to their op-
erations, improve or extend service on a route that requires 
little or no Federal assistance for its operations, involve a 
commitment by States or railroads of financial resources 
to improve the safety of highway/rail grade crossings over 
which the passenger service operates. 
RAILROAD REHABILITATION AND IMPROVEMENT PROGRAM 
The Secretary of Transportation is authorized to issue 
to the Secretary of the Treasury notes or other obligations 
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pursuant to section 512 of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (Public Law 94–210), as 
amended, in such amounts and at such times as may be 
necessary to pay any amounts required pursuant to the 
guarantee of the principal amount of obligations under sec-
tions 511 through 513 of such Act, such authority to exist 
as long as any such guaranteed obligation is outstanding: 
Provided, That pursuant to section 502 of such Act, as 
amended, no new direct loans or loan guarantee commit-
ments shall be made using Federal funds for the credit risk 
premium during fiscal year 2008. 
OPERATING GRANTS TO THE NATIONAL RAILROAD 
PASSENGER CORPORATION 
To enable the Secretary of Transportation to make 
quarterly grants to the National Railroad Passenger Cor-
poration for operation of intercity passenger rail, 
$485,000,000 to remain available until expended: Provided, 
That the Secretary of Transportation shall approve funding 
to cover operating losses for the Corporation only after re-
ceiving and reviewing a grant request for each specific train 
route: Provided further, That each such grant request shall 
be accompanied by a detailed financial analysis, revenue 
projection, and capital expenditure projection justifying the 
Federal support to the Secretary’s satisfaction: Provided 
further, That the Corporation is directed to achieve savings 
through operating efficiencies including, but not limited to, 
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modifications to food and beverage service and first class 
service: Provided further, That the Inspector General of the 
Department of Transportation shall report to the House 
and Senate Committees on Appropriations beginning three 
months after the date of the enactment of this Act and quar-
terly thereafter with estimates of the savings accrued as a 
result of all operational reforms instituted by the Corpora-
tion: Provided further, That not later than 120 days after 
enactment of this Act, the Corporation shall transmit to the 
House and Senate Committees on Appropriations the status 
of its plan to improve the financial performance of food 
and beverage service and its plan to improve the financial 
performance of first class service (including sleeping car 
service): Provided further, That the Corporation shall report 
quarterly to the House and Senate Committees on Appro-
priations on its progress against the milestones and target 
dates contained in the plan provided in fiscal year 2007 
and quantify savings realized to date on a monthly basis 
compared to those projected in the plan, identify any 
changes in the plan or delays in implementing these plans, 
and identify the causes of delay and proposed corrective 
measures: Provided further, That not later than 90 days 
after enactment of this Act, the Corporation shall transmit, 
in electronic format, to the Secretary, the House and Senate 
Committees on Appropriations, the House Committee on 
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Transportation and Infrastructure and the Senate Com-
mittee on Commerce, Science, and Transportation a com-
prehensive business plan approved by the Board of Direc-
tors for fiscal year 2008 under section 24104(a) of title 49, 
United States Code: Provided further, That the business 
plan shall include, as applicable, targets for ridership, reve-
nues, and capital and operating expenses: Provided further, 
That the plan shall also include a separate accounting of 
such targets for the Northeast Corridor; commuter service; 
long-distance Amtrak service; State-supported service; each 
intercity train route, including Autotrain; and commercial 
activities including contract operations: Provided further, 
That the business plan shall include a description of the 
work to be funded, along with cost estimates and an esti-
mated timetable for completion of the projects covered by 
this business plan: Provided further, That the Corporation 
shall continue to provide monthly reports in electronic for-
mat regarding the pending business plan, which shall de-
scribe the work completed to date, any changes to the busi-
ness plan, and the reasons for such changes, and shall iden-
tify all sole source contract awards which shall be accom-
panied by a justification as to why said contract was 
awarded on a sole source basis: Provided further, That the 
Corporation’s business plan and all subsequent supple-
mental plans shall be displayed on the Corporation’s 
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website within a reasonable timeframe following their sub-
mission to the appropriate entities: Provided further, That 
the leases and contracts entered into by the Corporation in 
any year that the Corporation receives a Federal subsidy 
after the date of enactment of the Act, regardless of the place 
the same may be executed, shall be governed by the laws 
of the District of Columbia: Provided further, That none 
of the funds under this heading may be obligated or ex-
pended until the Corporation agrees to continue abiding by 
the provisions of paragraphs 1, 2, 5, 9, and 11 of the sum-
mary of conditions for the direct loan agreement of June 
28, 2002, in the same manner as in effect on the date of 
enactment of this Act. 
CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL 
RAILROAD PASSENGER CORPORATION 
To enable the Secretary of Transportation to make 
quarterly grants to the National Railroad Passenger Cor-
poration for the maintenance and repair of capital infra-
structure owned by the Corporation, including railroad 
equipment, rolling stock, legal mandates and other services, 
$885,000,000, to remain available until expended, of which 
not to exceed $285,000,000 shall be for debt service obliga-
tions: Provided, That the Secretary may retain up to one- 
quarter of one percent of the funds under this heading to 
fund the oversight by the Federal Railroad Administration 
of the design and implementation of capital projects funded 
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