‘‘(9) internal plan implementation and reporting 
requirements; 
‘‘(10) criteria and procedures to be used for 
testing the operational system or its major compo-
nents; 
‘‘(11) periodic updates of the plan, especially 
related to project budget and project schedule, fi-
nancing, and ridership estimates; and 
‘‘(12) the recipient’s commitment to submit a 
project budget and project schedule to the Secretary 
each month. 
‘‘(b) SECRETARIAL OVERSIGHT.—(1) The Secretary 
may use no more than 0.5 percent of amounts made avail-
able 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 contracts for 
safety, procurement, management, and financial compli-
ance reviews and audits of a recipient of amounts under 
paragraph (1). 
‘‘(3) The Federal Government shall pay the entire 
cost of carrying out a contract under this subsection. 
‘‘(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 (c) of this section with access to the construction 
sites and records of the recipient when reasonably nec-
essary. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
regulations necessary to carry out this section. The regula-
tions shall include— 
‘‘(1) a definition of ‘major capital project’ for 
this section; 
‘‘(2) a requirement that oversight begin during 
the preliminary engineering stage of a project, un-
less the Secretary finds it more appropriate to begin 
oversight during another stage of a project, to maxi-
mize the transportation benefits and cost savings as-
sociated with project management oversight; 
‘‘(3) a deadline by which all grant applications 
for a fiscal year must be submitted that is early 
enough to permit the Secretary to evaluate all timely 
applications thoroughly before making grants; 
‘‘(4) a formula based on population, track miles 
of railroad, and passenger miles traveled in the prior 
fiscal year by which one-half of the funds appro-
priated for capital grants for each fiscal year are to 
be allocated among the States;
‘‘(5) a requirement that, if a State does not 
timely apply for its share of formula grant funds 
under paragraph (4) of this subsection, those funds 
will be made available to other States under para-
graph (6) of this subsection; and 
‘‘(6) criteria by which the Secretary will allocate 
one-half of the funds appropriated for capital grants 
for each fiscal year, including at least projected rid-
ership, passenger rail and intermodal connections, 
congestion and air quality mitigation, underserved 
communities, and the effect of the grant on whether 
existing service will continue. 
‘‘§ 24404. Use of capital grants to finance first-dollar 
liability of grant project 
‘‘Notwithstanding the requirements of section 24402 
of this title, the Secretary of Transportation may approve 
the use of capital assistance under this chapter to fund 
self-insured retention of risk for the first tier of liability 
insurance coverage for rail passenger service associated 
with the capital assistance grant, but the coverage may 
not exceed $20 million per occurrence or $20 million in 
aggregate per year. 
‘‘§ 24405. Authorization of appropriations 
‘‘There are authorized to be appropriated to make 
capital financial assistance grants under this chapter, in-
cluding the Secretary’s expenses related thereto, the fol-
lowing amounts: 
‘‘(1) Such sums as may be necessary in Year 
Two. 
‘‘(2) Such sums as may be necessary in Year 
Three. 
‘‘(3) Such sums as may be necessary in Year 
Four. 
‘‘(4) Such sums as may be necessary in Year 
Five. 
‘‘(5) Such sums as may be necessary in Year 
Six.’’. 
(b) CONFORMING AMENDMENTS.—(1) The table of 
chapters for title 49, United States Code, is amended by 
inserting the following after the item relating to chapter 
243: 
‘‘244. Intercity Passenger Rail Service Capital Assistance 
24401’’. 
(2) The chapter analysis 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 Assistance 
24401’’. 
SEC. 302. FINAL REGULATIONS ON APPLICATIONS BY 
STATES FOR DEVELOPMENT GRANTS. 
Not later than June 1 of Year One, the Adminis-
trator of the Federal Railroad Administration shall issue 
final regulations setting forth procedures for application
and minimum requirements for the award of grants on 
and after the first day of Year Two, under chapter 244 
of title 49, United States Code. 
SEC. 303. AUTHORITY FOR INTERSTATE COMPACTS FOR 
CORRIDOR DEVELOPMENT. 
(a) CONSENT
TO COMPACTS.—(1) Two or more 
States with an interest in a specific form, route, or cor-
ridor of intercity passenger rail service (including high 
speed rail service) may enter into interstate compacts to 
implement the service, including— 
(A) retaining an existing service or commencing 
a new service; 
(B) assembling rights-of-way; and 
(C) performing capital improvements, includ-
ing— 
(i) the construction and rehabilitation of 
maintenance facilities; 
(ii) the purchase of rolling stock; and 
(iii) operational improvements, including 
communications, signals, and other systems. 
(2) A compact entered into under the authority of 
this section shall be submitted to Congress for its consent, 
and it is the sense of Congress that rapid consent to the 
Compact shall be a priority of Congress.
(b) FINANCING.—(1) An interstate compact estab-
lished by States under subsection (a) may provide that, 
in order to carry out the compact, the States may— 
(A) accept contributions from a unit of State or 
local government or a person; 
(B) use any Federal or State funds made avail-
able for intercity passenger rail service (except funds 
made available for Amtrak); 
(C) on such terms and conditions as the States 
consider advisable— 
(i) borrow money on a short-term basis 
and issue notes for the borrowing; and 
(ii) issue bonds; and 
(D) obtain financing by other means permitted 
under Federal or State law. 
(2) Bonds and other indebtedness incurred under the 
authority of this subsection shall under no circumstances 
be backed by the full faith and credit of the United States. 
Æ