EFFICIENCY INCENTIVE GRANTS TO THE NATIONAL 
RAILROAD PASSENGER CORPORATION 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount to be made available to the 
Secretary for efficiency incentive grants to the National 
Railroad Passenger Corporation, $400,000,000 (increased 
by $85,000,000), to remain available until expended: Pro-
vided, That the Secretary may make grants to the Na-
tional Railroad Passenger Corporation for an additional 
sum for operating subsidies at any time during the fiscal 
year for the purpose of maintaining the operation of exist-
ing or new Amtrak routes: Provided further, That nothing 
in the previous proviso should be interpreted either to en-
courage or discourage the Corporation with respect to ad-
justing existing routes or frequencies: Provided further, 
That the Secretary of Transportation shall reserve 
$60,000,000 of the funds provided under this heading and 
is authorized to transfer such sums to the Surface Trans-
portation Board, upon request from said Board, to carry 
out directed service orders issued pursuant to section 
11123 of title 49, United States Code, to respond to the 
cessation of commuter rail operations by the National 
Railroad Passenger Corporation: Provided further, That 
the Secretary of Transportation shall make the reserved 
funds available to the National Railroad Passenger Cor-
poration through an appropriate grant instrument not ear-
lier than September 1, 2007 to the extent that no directed 
service orders have been issued by the Surface Transpor-
tation Board as of the date of transfer or there is a bal-
ance of reserved funds not needed by the Board to pay 
for any directed service order issued through September 
30, 2007: Provided further, That upon the receipt and ap-
proval of Amtrak’s fiscal year 2007 business plan and if 
the Secretary deems it in the best interests of the trans-
portation system, in his sole discretion, the Secretary may 
make grants to the Corporation at such times and in such 
amounts for intercity passenger rail, including coverage of 
operating losses of the Corporation: Provided further, That 
the Secretary shall approve funding to cover operating 
losses for the Corporation only after receiving and review-
ing a grant request for each specific train route: Provided 
further, That each such grant request shall be accom-
panied 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 the operating efficiencies including, but not lim-
ited to, modifications to food and beverage service and 
first class service and efficiencies in overhead: Provided 
further, That the Inspector General of the Department of
Transportation shall report to the House and Senate Com-
mittees on Appropriations beginning three months after 
the date of the enactment of this Act and quarterly there-
after with estimates of the savings accrued as a result of 
all operational reforms instituted by the Corporation: Pro-
vided further, That if the Inspector General cannot certify 
that the Corporation has achieved operational savings by 
July 1, 2007, none of the funds in this Act may be used 
after July 1, 2007, to subsidize the net losses of food and 
beverage service and sleeper car service on any Amtrak 
route: Provided further, That not later than 120 days after 
enactment of this Act, Amtrak shall transmit to the House 
and Senate Committees on Appropriations a detailed plan 
to improve the financial performance of food and beverage 
service and a detailed plan to improve the financial per-
formance of first class service (including sleeping car serv-
ice) so that these services are revenue neutral or better 
on a fully allocated cost basis no later than October 1, 
2008: Provided further, That these plans shall include 
milestones and target dates for implementation and pro-
jected cost savings in fiscal years 2007 and 2008 and that 
Amtrak shall report quarterly to the House and Senate 
Committees on Appropriations on its progress in imple-
menting these plans, quantify savings realized to date on 
a monthly basis compared to those projected in the plans,
identify any changes in the plans or delays in imple-
menting these plans, and identify the causes of delay and 
proposed corrective measures: Provided further, That not 
later than 120 days after enactment of this Act, Amtrak 
shall transmit to the House and Senate Committees on 
Appropriations a report on its overhead expenses as of Oc-
tober 1, 2006, identifying those that are directly associ-
ated with a specific route or group of routes or lines of 
business and those system overhead expenses not directly 
charged to specific trains, routes or other lines of business, 
and a plan to reduce system overhead expenses by 10 per-
cent annually through strategic investments, transfer of 
responsibilities to entities that request Amtrak provide 
specific services, and other measures: Provided further, 
That as part of its report and plan to reduce overhead 
expenses, Amtrak shall include a report on the expenses 
associated with intercity passenger rail reservations and 
ticketing, including a comparison of such expenses to 
those associated with domestic airlines and intercity bus 
service, and a plan, including milestones and target dates, 
for reducing the expenses associated with its reservations 
and ticketing including technology enhancements, the use 
of electronic ticketing, and such other measures that will 
result in expense savings, enhanced revenue, and assure 
accurate manifests of passengers on specific trains at all
times: Provided further, That not later than October 1, 
2008, Amtrak shall reduce its system overhead expenses 
by 10 percent from the level identified as existing on Octo-
ber 1, 2006, and in each subsequent fiscal year, reduce 
system overhead expenses by 10 percent of the level exist-
ing on October 1 of the immediate preceding year: Pro-
vided further, That if the Inspector General deems it nec-
essary for the continued development and implementation, 
not less than $5,000,000 of the funds provided under this 
section shall be expended for the managerial cost account-
ing system, which includes average and marginal unit cost 
capability: Provided further, That within 30 days of the 
development of the managerial cost accounting system, the 
Department of Transportation’s Inspector General shall 
review and comment to the Secretary and the House and 
Senate Committees on Appropriations upon the strengths 
and weaknesses of the system and how it best can be im-
plemented to improve decision making by the Board of Di-
rectors and management of the Corporation: Provided fur-
ther, That no later than 120 days after enactment of this 
Act, Amtrak shall transmit to the House and Senate Com-
mittees on Appropriations a detailed plan, including mile-
stones, target dates and cost estimates, to improve its 
management cost accounting system and integrate such 
system with the Corporation’s other processes including
budgeting, financial forecasting and modeling, and ac-
counting, to permit more informed decisions by manage-
ment and the Board of Directors as to the financial rami-
fications of proposed changes to routes and services: Pro-
vided further, That, as part of the plan to improve its man-
agement cost accounting system, Amtrak shall include a 
plan to improve or replace the Corporation’s Route Profit-
ability System (RPS) to provide more current, accurate, 
and clear information on revenues and expenses on all of 
the Corporation’s routes and services, including the alloca-
tion of expenses not directly charged to specific trains, 
routes, or other business lines: Provided further, That not 
later than 60 days after the enactment of this Act, the 
Corporation shall transmit, in electronic format, to the 
Secretary, the House and Senate Committees on Appro-
priations, the House Committee on Transportation and 
Infrastructure, and Senate Committee on Commerce, 
Science, and Transportation a comprehensive business 
plan approved by the Board of Directors for fiscal year 
2007 under 49 U.S.C. 24104(a): Provided further, That 
the business plan shall include, as applicable, targets for 
ridership, revenues, and capital and operating expenses: 
Provided further, That the plan shall also include a sepa-
rate accounting of such targets for the Northeast Cor-
ridor; commuter service; long-distance Amtrak service;
State-supported service; each intercity train route, includ-
ing Autotrain; and commercial activities including con-
tract operations: Provided further, That the business plan 
shall include a description of the work to be funded, along 
with cost estimates and an estimated timetable for comple-
tion of the projects covered by the business plan: Provided 
further, That the Corporation shall continue to provide 
monthly reports in electronic format regarding the pend-
ing business plan, which shall describe the work completed 
to date, any changes to the business plan, and the reasons 
for such changes, and shall identify all sole source contract 
awards which shall be accompanied by a justification as 
to why said contract was awarded on a sole source basis: 
Provided further, That none of the funds in this Act may 
be used for operating expenses, including advance pur-
chase orders, not approved by the Secretary and in the 
Corporation’s fiscal year 2007 business plan: Provided fur-
ther, That the Corporation shall display the business plan 
and all subsequent supplemental plans on the Corpora-
tion’s website within a reasonable timeframe following 
their submission to the appropriate entities: Provided fur-
ther, That none of the funds under this heading may be 
obligated or expended until the Corporation agrees to con-
tinue to abide by the provisions of paragraphs 1, 2, 3, 
5, and 11 of the summary 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: Provided fur-
ther, That the Secretary may, at his discretion, condition 
the award of efficiency incentive grant funds on reform 
requirements for the Corporation and his assessment of 
progress towards such reform requirements: Provided fur-
ther, That none of the funds provided in this Act may be 
used after March 1, 2006, to support any route on which 
Amtrak offers a discounted fare of more than 50 percent 
off the normal, peak fare. 
ADMINISTRATIVE PROVISIONS—FEDERAL RAILROAD 
ADMINISTRATION 
SEC. 150. The Secretary may purchase promotional 
items of nominal value for use in public outreach activities 
to accomplish the purposes of 49 U.S.C. 20134: Provided, 
That the Secretary shall prescribe guidelines for the ad-
ministration of such purchases and use. 
FEDERAL TRANSIT ADMINISTRATION 
ADMINISTRATIVE EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For necessary administrative expenses of the Federal 
Transit Administration’s programs authorized by chapter 
53 of title 49, United States Code, $85,000,000: Provided, 
That of the funds available under this heading, not to ex-
ceed $1,063,000 shall be available for the Office of the
Administrator; not to exceed $7,654,000 shall be available 
for the Office of Administration; not to exceed $4,273,000 
shall be available for the Office of the Chief Counsel; not 
to exceed $1,394,000 shall be available for the Office of 
Communication and Congressional Affairs; not to exceed 
$8,403,000 shall be available for the Office of Program 
Management; not to exceed $9,259,000 shall be available 
for the Office of Budget and Policy; not to exceed 
$4,876,000 shall be available for the Office of Demonstra-
tion and Innovation; not to exceed $3,272,000 shall be 
available for the Office of Civil Rights; not to exceed 
$4,718,000 shall be available for the Office of Planning; 
not to exceed $22,420,000 shall be available for regional 
offices; and not to exceed $17,668,000 shall be available 
for the central account: Provided further, That the Admin-
istrator is authorized to transfer funds appropriated for 
an office of the Federal Transit Administration: Provided 
further, That no appropriation for an office shall be in-
creased or decreased by more than a total of 5 percent 
during the fiscal year by all such transfers: Provided fur-
ther, That any change in funding greater than 5 percent 
shall be submitted for approval to the House and Senate 
Committees on Appropriations: Provided further, That any 
funding transferred from the central account shall be sub-
mitted for approval to the House and Senate Committees
on Appropriations: Provided further, That none of the 
funds provided or limited in this Act may be used to create 
a permanent office of transit security under this heading: 
Provided further, That of the funds in this Act available 
for the execution of contracts under section 5327(c) of 
title 49, United States Code, $2,000,000 shall be reim-
bursed to the Department of Transportation’s Office of 
Inspector General for costs associated with audits and in-
vestigations of transit-related issues, including reviews of 
new fixed guideway systems: Provided further, That upon 
submission to the Congress of the fiscal year 2008 Presi-
dent’s budget, the Secretary of Transportation shall trans-
mit to Congress the annual report on new starts, including 
proposed allocations of funds for fiscal year 2008. 
FORMULA AND BUS GRANTS 
(LIQUIDATION OF CONTRACT AUTHORITY) 
(LIMITATION ON OBLIGATIONS) 
(INCLUDING RESCISSION) 
For payment of obligations incurred in carrying out 
the provisions of 49 U.S.C. 5305, 5307, 5308, 5309, 
5310, 5311, 5316, 5317, 5320, 5335, 5339, and 5340 and 
section 3038 of Public Law 105–178, as amended, 
$3,925,000,000, to be derived from the Mass Transit Ac-
count of the Highway Trust Fund and to remain available 
until expended: Provided, That funds available for the im-
plementation or execution of programs authorized under
49 U.S.C. 5305, 5307, 5308, 5309, 5310, 5311, 5316, 
5317, 5320, 5335, 5339, and 5340 and section 3038 of 
Public Law 105–178, as amended, shall not exceed total 
obligations of $7,262,775,000 in fiscal year 2007: Pro-
vided further, That $28,660,920 in unobligated balances 
are cancelled. 
RESEARCH AND UNIVERSITY RESEARCH CENTERS 
For necessary expenses to carry out 49 U.S.C. 5306, 
5312–5315, 5322, and 5506, $65,000,000, to remain 
available until expended: Provided, That $9,300,000 is 
available to carry out the transit cooperative research pro-
gram under section 5313 of title 49, United States Code, 
$4,300,000 is available for the National Transit Institute 
under section 5315 of title 49, United States Code, 
$7,000,000 is available for university transportation cen-
ters program under section 5506 of title 49, United States 
Code: Provided further, That $49,400,000 is available to 
carry out national research programs under sections 5312, 
5313, 5314, and 5322 of title 49, United States Code. 
CAPITAL INVESTMENT GRANTS 
(INCLUDING RESCISSION) 
For necessary expenses to carry out section 5309 of 
title 49, United States Code, $1,566,000,000, to remain 
available until expended: Provided, That $17,760,000 in 
unobligated balances are cancelled.
ADMINISTRATIVE PROVISIONS—FEDERAL TRANSIT 
ADMINISTRATION 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 160. The limitations on obligations for the pro-
grams of the Federal Transit Administration shall not 
apply to any authority under 49 U.S.C. 5338, previously 
made available for obligation, or to any other authority 
previously made available for obligation. 
SEC. 161. Notwithstanding any other provision of 
law, funds made available by this Act under ‘‘Federal 
Transit Administration, Capital investment grants’’ and 
bus and bus facilities under ‘‘Federal Transit Administra-
tion, Formula and Bus Grants’’ for projects specified in 
this Act or identified in reports accompanying this Act not 
obligated by September 30, 2009, and other recoveries, 
shall be made available for other projects under 49 U.S.C. 
5309. 
SEC. 162. Notwithstanding any other provision of 
law, any funds appropriated before October 1, 2006, under 
any section of chapter 53 of title 49, United States Code, 
that remain available for expenditure may be transferred 
to and administered under the most recent appropriation 
heading for any such section. 
SEC. 163. During fiscal years 2007 and 2008, each 
Federal Transit Administration grant for a project that
involves the acquisition of rehabilitation of a bus to be 
used in public transportation shall be for 100 percent of 
the net capital costs of a factory-installed or retrofitted 
hybrid electric propulsion system and any equipment re-
lated to such a system: Provided, That the Secretary shall 
have the discretion to determine, through practicable ad-
ministrative procedures, the costs attributable to the sys-
tem and related-equipment. 
SEC. 164. Notwithstanding any other provision of 
law, unobligated funds made available for a new fixed 
guideway systems projects under the heading ‘‘Federal 
Transit Administration, Capital Investment Grants’’ in 
any appropriations Act prior to this Act may be used dur-
ing this fiscal year to satisfy expenses incurred for such 
projects for activities eligible in the year the funds were 
appropriated. 
SEC. 165. Hereinafter, the non-Federal share of the 
net project cost of the San Gabriel Valley Metro Gold Line 
connecting Los Angeles, South Pasadena and Pasadena 
shall be counted toward satisfying the Federal matching 
requirements under 49 U.S.C. 5309 on any phase of the 
San Gabriel Valley Gold Line Foothill Extension con-
tinuing from Pasadena to Montclair.