modal transportation system for the United States, 
and directed the Department of Transportation to 
‘‘lead and coordinate Federal efforts in the research 
and development of high-speed ground transpor-
tation technologies in order to foster implementation 
of magnetic levitation and high-speed steel wheel on 
rail transportation systems as alternatives to exist-
ing transportation systems.’’. 
(2) The Department of Transportation has des-
ignated eleven high-speed rail corridors in the 
United States. 
(3) High-speed rail development will be a state- 
of-the-art transportation system that will have im-
pact on climate change. 
(4) High-speed rail is an efficient, practical, 
and less polluting transportation mode that can fill 
the gap between future demand and present capac-
ity. 
(5) High-speed rail will greatly reduce carbon 
dioxide emissions by reducing vehicle travel and 
make major contributes to efforts to reduce green-
houses gas emissions and combat global warming. 
(6) High-speed rail will drastically reduce the 
traffic congestion currently plaguing our Nation’s 
busiest highway systems. 
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(7) Most of the high-speed rail tracks will be at 
ground level, only needing a minimum path 50 feet 
wide, comparable to a new two-lane road with shoul-
ders, but providing 20 times the transportation ca-
pacity. 
(8) The future growth of the United States will 
require multimodal of transportation to ease travel 
across the country. 
(9) High-speed rail can provide a viable alter-
native to airspace capacity problems the Federal 
Aviation Administration admits it cannot solve in 
the Los Angeles to Bay Area air corridor. High- 
speed rail will have comparable and often shorter 
travel times when compared to air travel on trips 
200 to 500 miles in length, allowing it to signifi-
cantly reduce airspace congestion. 
(10) The only current fast train lines in the 
country only average a speed of 82.2 miles per hour. 
(11) Rail track will be fully grade-separated 
from road traffic with bridges or underpasses. 
(12) At peak travel times, trains can be ex-
panded to accommodate more passengers than the 
current congested highway system. 
(13) The Federal Government has traditionally 
participated in significant infrastructure improve-
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ments such as the Transcontinental Railroad, Inter-
state Highway System, and the Tennessee Valley 
Authority, as well as our Nation’s port and harbor 
systems. 
(14) The economic strength and development of 
our Nation has been led by advances in transpor-
tation projects, such as the Erie Canal, Trans-
continental Railroad, Interstate Highway System, 
and airports. 
(15) Improving the linkage of major metropoli-
tan areas across the country using rail systems can 
bring great economic growth. 
(16) Expanding the Nation’s highways and air-
ports is costly, and constrained by environmental re-
strictions. 
(17) High-speed rail construction will yield mil-
lions of jobs throughout the country. 
(18) Advances in rail technology have allowed 
high-speed rail systems in Europe and Japan to at-
tain speeds of up to 357 miles per hour and provide 
a much needed alternative for trips in the 200 to 
500-mile range. 
(19) The Shinkansen high-speed trains in 
Japan carry over 300,000,000 passengers a year, 
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and the system’s 1,540 miles of track continues to 
expand due to demand for travel. 
(20) High-speed rail will save up to tens of mil-
lions of barrels of oil per year. 
SEC. 3. PURPOSE. 
The purpose of this Act is to establish high-speed rail 
in the United States— 
(1) to further right-of-way purchases, designs, 
and construction of high-speed rail systems in the 
United States; 
(2) to create a 21st century intermodal trans-
portation system; 
(3) to alleviate the air and highway congestion 
plaguing our Nation; and 
(4) to develop an environmentally friendly and 
efficient mass transportation system to reduce 
greenhouse gas emissions. 
SEC. 4. CAPITAL ASSISTANCE FOR INTERCITY PASSENGER 
RAIL SERVICE. 
(a) IN GENERAL.—Part C of subtitle V of title 49, 
United States Code, is amended by inserting the following 
after chapter 243: 
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‘‘CHAPTER 
244—INTERCITY 
PASSENGER 
RAIL SERVICE CORRIDOR CAPITAL AS-
SISTANCE 
‘‘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. 
‘‘§ 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, a public agency 
established by one or more States, or a public-pri-
vate or private entity which is responsible for pro-
viding 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) design, right-of-way acquisition, and 
construction of high-speed rail in the United 
States; 
‘‘(B) acquiring, constructing, improving, or 
inspecting equipment, track, and track struc-
tures, or a facility for use in or for the primary 
benefit of intercity passenger rail service, ex-
penses incidental to the acquisition or construc-
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tion (including designing, engineering, location 
surveying, mapping, environmental studies, and 
acquiring rights-of-way), payments for the cap-
ital portions of rail trackage rights agreements, 
highway-rail grade crossing improvements re-
lated to intercity passenger rail service, secu-
rity, mitigating environmental impacts, commu-
nication and signalization improvements, reloca-
tion assistance, acquiring replacement housing 
sites, and acquiring, constructing, relocating, 
and rehabilitating replacement housing; 
‘‘(C) rehabilitating, remanufacturing, or 
overhauling rail rolling stock and facilities used 
primarily in intercity passenger rail service; 
‘‘(D) costs associated with developing State 
rail plans; and 
‘‘(E) 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 
passenger transportation between towns, cities, and 
metropolitan areas by rail, including high-speed rail, 
as defined in section 24102. 
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‘‘§ 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 high-speed right-of-way acquisition, 
design, and construction of capital projects, and the fi-
nancing of 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, conditions, require-
ments, and provisions the Secretary decides are necessary 
or appropriate for the purposes of this section, including 
requirements for the disposition of net increases in value 
of real property resulting from the project assisted under 
this section, and shall prescribe procedures and schedules 
for the awarding of grants under this chapter, including 
application 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. 
‘‘(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 developed under chapter 
225 of this title, and that the applicant or recipient has 
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or will have the legal, financial, 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 information 
upon which the Secretary can make the findings required 
by this subsection. 
‘‘(3) If an applicant has not selected the proposed op-
erator of its service competitively, the applicant shall pro-
vide written justification to the Secretary showing why the 
proposed operator is the best, taking into account price 
and other factors, and that use of the proposed operator 
will not unnecessarily 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— 
‘‘(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 
to meet anticipated or existing demand, or other sig-
nificant service enhancements; 
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‘‘(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); 
‘‘(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. 
‘‘(C) Projects that have significant envi-
ronmental benefits particularly through reduced 
carbon emissions resulting from the lower use 
of other competing modes in the same travel 
corridor. 
‘‘(D) Projects that are— 
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‘‘(i) at a stage of preparation that all 
precommencement 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). 
‘‘(J) 
Projects 
described 
in 
section 
5302(a)(1)(G) of this title that are designed to 
support intercity passenger rail service. 
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applicant, the applicant shall repay all Government pay-
ments made under the work agreement plus reasonable in-
terest and penalty charges the Secretary establishes in the 
agreement, unless the Secretary determines that comple-
tion of the project to date is sufficient to serve the national 
transportation interest. 
‘‘(4) The total estimated amount of future obligations 
of the Government and contingent commitments to incur 
obligations covered by all outstanding letters of intent, full 
funding grant agreements, and early systems work agree-
ments may be not more than the amount authorized by 
law for such purposes, less an amount the Secretary rea-
sonably estimates is necessary for grants under this sec-
tion 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 expected use of equip-
ment or facilities, the Secretary shall estimate the net 
project cost. 
‘‘(B) A grant for the project shall not exceed 80 per-
cent of the project net capital cost. 
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