I
105TH CONGRESS
1ST SESSION
H. R. 2341
To amend title 23, United States Code, to authorize Federal participation
in financing of projects to demonstrate the feasibility of deployment
of magnetic levitation transportation technology, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 31, 1997
Mr. KIM (for himself, Mr. GILCHREST, Mr. GILMAN, and Mr. CARDIN) intro-
duced the following bill; which was referred to the Committee on Trans-
portation and Infrastructure, and in addition to the Committees on
Science and Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
A BILL
To amend title 23, United States Code, to authorize Federal
participation in financing of projects to demonstrate the
feasibility of deployment of magnetic levitation transpor-
tation technology, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Magnetic Levitation
(MAGLEV) Transportation Technology Deployment Act
of 1997’’.
SEC. 2. FINDINGS AND POLICY.
(a) FINDINGS.—Congress finds that—
(1)(A) new transportation technologies are
needed to develop new modes of transportation that
are environmentally sound and energy efficient;
(B) very high- and super-speed magnetic levita-
tion (referred to in this section as ‘‘MAGLEV’’) is
the technology that appears to best meet the needs
of the traveling public and high-value freight ship-
pers in the 40- to 600-mile distance corridors;
(C) MAGLEV is energy efficient, consuming
less energy per passenger mile at any given speed
than other forms of transportation and reducing de-
pendence on imported oil;
(D) since properly designed MAGLEV is vir-
tually impossible to derail, MAGLEV is safe and will
prevent accidents and loss of life, and will signifi-
cantly reduce costs attributable to accidents occur-
ring on highways, freight rail lines, intercity rail
passenger service lines, commuter rail lines, and
short haul airline routes of the United States;
(E) MAGLEV is virtually unaffected by weath-
er conditions, which annually result in delays in
other transportation modes employed by freight and
passenger carriers; and
(F) MAGLEV makes extensive use of existing
highway rights-of-way and consumes less land for its
guideway infrastructure than a comparable roadway;
(2) the commercial feasibility study of high-
speed ground transportation conducted under section
1036 of the Intermodal Surface Transportation Effi-
ciency Act of 1991 (Public Law 102–240; 105 Stat.
1978)—
(A) demonstrates that MAGLEV systems
have the potential for a public and private part-
nership under which the private sector could op-
erate a system without operating subsidies and
the total benefits of the system would exceed
the total costs; and
(B) demonstrates that adding links or cor-
ridors to the basic MAGLEV system would en-
hance the basic system, leading to establish-
ment of high-volume high-speed ground trans-
portation networks; and
(3) the study required by section 359(d) of the
National Highway System Designation Act of 1995
(Public Law 104–59; 109 Stat. 627) further dem-
onstrates the potential for MAGLEV systems.
(b) POLICY.—It is the policy of the United States to
establish a MAGLEV transportation technology system
operating along Federal-aid highway and other rights-of-
way as part of a national transportation system of the
United States.
SEC. 3. MAGNETIC LEVITATION TRANSPORTATION TECH-
NOLOGY DEPLOYMENT PROGRAM.
(a) IN GENERAL.—Chapter 3 of title 23, United
States Code, is amended by inserting after section 321 the
following:
‘‘§ 322. Magnetic levitation transportation technology
deployment program
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE PROJECT COSTS.—The term ‘eli-
gible project costs’ means the capital cost of the
fixed guideway infrastructure of a MAGLEV project,
including land, piers, guideways, propulsion equip-
ment and other components attached to guideways,
power distribution facilities (including substations),
control and communications facilities, access roads,
and storage, repair, and maintenance facilities, but
not including costs incurred for a new station.
‘‘(2) FULL
PROJECT
COSTS.—The term ‘full
project costs’ means the total capital costs of a
MAGLEV project, including eligible project costs
and the costs of stations, vehicles, and equipment.
‘‘(3) MAGLEV.—The term ‘MAGLEV’ means
transportation systems employing magnetic levita-
tion that would be capable of safe use by the public
at a speed in excess of 240 miles per hour.
‘‘(4) PARTNERSHIP
POTENTIAL.—The term
‘partnership potential’ has the meaning given the
term in the commercial feasibility study of high-
speed ground transportation conducted under section
1036 of the Intermodal Surface Transportation Effi-
ciency Act of 1991 (Public Law 102–240; 105 Stat.
1978).
‘‘(5) RECOGNIZED PILOT PROJECT.—The term
‘recognized pilot project’ means a project identified
in the report transmitted by the Secretary to Con-
gress on the near-term applications of magnetic levi-
tation ground transportation technology in the Unit-
ed States as required by section 359(d) of the Na-
tional Highway System Designation Act of 1995
(Public Law 104–59; 109 Stat. 627).
‘‘(b) 
HIGH-SPEED
GROUND
TRANSPORTATION
OFFICE.—
‘‘(1) IN
GENERAL.—Not later than 90 days
after the date of enactment of the Magnetic Levita-
tion (MAGLEV) Transportation Technology Deploy-
ment Act of 1997, the Secretary shall establish a
High-Speed Ground Transportation Office in the
Federal Railroad Administration to—
‘‘(A) coordinate and administer all high-
speed rail and MAGLEV programs authorized
by this section and any other provision of this
title or title 49; and
‘‘(B) make available financial assistance to
provide the Federal share of full project costs
of eligible projects selected under this section
and otherwise carry out this section.
‘‘(2) FEDERAL SHARE.—The Federal share of
full project costs under paragraph (1)(B) shall be
not more than 2⁄3.
‘‘(3) USE
OF
ASSISTANCE.—Financial assist-
ance provided under paragraph (1)(B) shall be used
only to pay eligible project costs of projects selected
under this section.
‘‘(c) SOLICITATION OF APPLICATIONS FOR ASSIST-
ANCE.—Not later than 90 days after the establishment of
the High-Speed Ground Transportation Office, the Sec-
retary shall solicit applications from States, or authorities
designated by 1 or more States, for financial assistance
authorized by subsection (b)(1)(B) for planning, design,
and construction of eligible MAGLEV projects.
‘‘(d) PROJECT ELIGIBILITY.—To be eligible to re-
ceive financial assistance under subsection (b)(1)(B), a
project shall—
‘‘(1) involve a segment or segments of a high-
speed ground transportation corridor that—
‘‘(A) exhibits partnership potential; or
‘‘(B) is a portion of a recognized pilot
project;
‘‘(2) require an amount of Federal funds for
project financing that will not exceed—
‘‘(A) the amounts made available under
subsection (k)(1)(A); and
‘‘(B) the amounts made available by States
under subsection (k)(4);
‘‘(3) result in an operating transportation facil-
ity that provides a revenue producing service;
‘‘(4) be undertaken through a public and pri-
vate partnership, with at least 1⁄3 of full project
costs paid using non-Federal funds;
‘‘(5) to the maximum extent practicable (as de-
termined by the Secretary), satisfy applicable State-
wide and metropolitan planning requirements;
‘‘(6) be approved by the Secretary based on an
application submitted to the Secretary by a State or
authority designated by 1 or more States;
‘‘(7) to the extent non-United States MAGLEV
technology is used within the United States, be car-
ried out as a technology transfer project; and
‘‘(8) be carried out using materials at least 70
percent of which are manufactured in the United
States.
‘‘(e) PROJECT SELECTION CRITERIA.—Prior to solic-
iting applications, the Secretary shall establish criteria for
selecting which eligible projects under subsection (d) will
receive financial assistance under subsection (b)(1)(B).
The criteria shall include the extent to which—
‘‘(1) a project is nationally significant, includ-
ing the extent to which the project will demonstrate
the feasibility of deployment of MAGLEV technology
throughout the United States;
‘‘(2) timely implementation of the project will
reduce congestion in other modes of transportation
and reduce the need for additional highway or air-
port construction;
‘‘(3) States, regions, and localities financially
contribute to the project;
‘‘(4) implementation of the project will create
new jobs in traditional and emerging industries;
‘‘(5) the project will augment MAGLEV net-
works identified as having partnership potential;
‘‘(6) financial assistance would foster public
and private partnerships for infrastructure develop-
ment and attract private debt or equity investment;
‘‘(7) financial assistance would foster the timely
implementation of a project; and
‘‘(8) life-cycle costs in design and engineering
are considered and enhanced.
‘‘(f) PROJECT SELECTION.—Not later than 90 days
after a deadline established by the Secretary for the re-
ceipt of applications, the Secretary shall evaluate the eligi-
ble projects in accordance with the selection criteria and
select 1 or more eligible projects for financial assistance.
‘‘(g) SPECIAL RULE.—
‘‘(1) IN GENERAL.—In the case of a State that
has in effect, on the date of the enactment of this
section, a State law that meets the requirements of
paragraph (2), the Secretary may provide funding
for a project under subsection (b)(1)(B) even if
high-speed rail technologies in addition to MAGLEV
are still being evaluated for the project.
‘‘(2) REQUIREMENTS.—A State law meets the
requirements of this paragraph if the State law—
‘‘(A) directs an entity of the State to pre-
pare a plan to construct and operate a high-
speed rail system; and—
‘‘(B) authorizes the entity to evaluate al-
ternative high-speed rail technologies in prepar-
ing of such plan.
‘‘(3) LIMITATION.—The Secretary may not pro-
vide funding under this subsection for any activity
that is inconsistent with the implementation of
MAGLEV.
‘‘(h) JOINT VENTURES.—A project undertaken by a
joint venture of United States and non-United States per-
sons (including a project involving the deployment of non-
United States MAGLEV technology in the United States)
shall be eligible for financial assistance under this section
if the project is eligible under subsection (d) and selected
under subsection (f).
‘‘(i) RESEARCH GRANTS AND CONTRACTS.—The Sec-
retary shall conduct research that shall include providing
grants to, and entering into contracts with, colleges, uni-
versities, research institutes, Federal laboratories, and pri-
vate entities for research related to—
‘‘(1) the quantification of benefits derived from
the implementation of MAGLEV technology;
‘‘(2) MAGLEV safety;
‘‘(3) the development of domestic MAGLEV
technologies, including electromagnetic and super-
conducting technology; and
‘‘(4) the development of technologies associated
with MAGLEV infrastructure.
‘‘(j) REPORT.—Not later than 180 days after the
date of enactment of the Magnetic Levitation (MAGLEV)
Transportation Technology Deployment Act of 1997, the
Secretary shall submit a report to the Committee on Envi-
ronment and Public Works of the Senate and the Commit-
tee on Transportation and Infrastructure of the House of
Representatives on progress in implementing this section
that includes a report on—
‘‘(1) the establishment of the High-Speed
Ground Transportation Office under subsection (b);
‘‘(2) applications for assistance under this sec-
tion; and
‘‘(3) the establishment of public and private
partnerships to carry out this section.
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated from the Highway Trust Fund (other
than the Mass Transit Account) to—
‘‘(A) carry out this section (other than
subsection (i)), $10,000,000 for fiscal year
1998, $20,000,000 for fiscal year 1999,
$200,000,000 for each of fiscal years 2000 and
2001, and $250,000,000 for each of fiscal years
2002 and 2003; and
‘‘(B) provide research grants and contracts
under subsection (i), $10,000,000 for each of
fiscal years 1998 through 2003.
‘‘(2) AVAILABILITY
OF
FUNDS.—Funds made
available under paragraph (1) shall remain available
until expended.
‘‘(3) CONTRACT AUTHORITY.—Approval by the
Secretary of an eligible project selected under this
section shall be considered to be a contractual obli-
gation of the United States for payment of the Fed-
eral share of the full project costs of the project.
‘‘(4) OTHER FEDERAL FUNDS.—Notwithstand-
ing any other provision of law, funds made available
to a State to carry out the surface transportation
program under section 133 and the congestion miti-
gation and air quality improvement program under
section 149 may be used by the State to pay a por-
tion of the full project costs of an eligible project se-
lected under this section, without requirement for
non-Federal funds.
‘‘(5) 
OTHER
ASSISTANCE.—Notwithstanding
any other provision of law, an eligible project se-
lected under this section shall be eligible for the
loans, loan guarantees, lines of credit, development
cost and political risk insurance, credit enhance-
ment, and risk insurance that are authorized for a
highway project under this title.
‘‘(6) TAX-EXEMPT BOND FINANCING.—For the
purpose of obtaining tax-exempt bond financing
under the Internal Revenue Code of 1986, a
MAGLEV facility shall be considered to be a high-
speed intercity rail facility with an average speed
greater than 150 miles per hour under section
142(a)(11) of that Code.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 3 of title 23, United States Code, is amended by
inserting after the item relating to section 321 the
following:
‘‘322. Magnetic levitation transportation technology deployment program.’’.
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