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‘‘(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 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 as measured against 
minimum standards developed under section 207 of 
the Passenger Rail Investment and Improvement 
Act of 2008; 
‘‘(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 
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‘‘(B) the national rail plan (if it is avail-
able); and 
‘‘(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 improve freight or com-
muter rail operations. 
‘‘(C) Projects that have significant envi-
ronmental benefits, including projects that in-
volve the purchase of environmentally sensitive, 
fuel-efficient, and cost-effective passenger rail 
equipment. 
‘‘(D) Projects that are— 
‘‘(i) at a stage of preparation that all 
pre-commencement 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 
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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. 
‘‘(K) Projects that encourage intermodal 
connectivity, create significant opportunity for 
State and private contributions toward station 
development, are energy and environmentally 
efficient, and have economic benefits. 
‘‘(d) AMTRAK ELIGIBILITY.—To receive a grant 
under this section, the National Railroad Passenger Cor-
poration may enter into a cooperative agreement with 1 
or more States to carry out 1 or more projects on a State 
rail plan’s ranked list of rail capital projects developed 
under section 22504(a)(5) of this title. 
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‘‘(e) LETTERS OF INTENT, FULL FUNDING GRANT 
AGREEMENTS, AND EARLY SYSTEMS WORK AGREE-
MENTS.— 
‘‘(1)(A) The Secretary may issue a letter of in-
tent to an applicant announcing an intention to obli-
gate, for a major capital project under this section, 
an amount from future available budget authority 
specified in law that is not more than the amount 
stipulated as the financial participation of the Sec-
retary in the project. 
‘‘(B) At least 30 days before issuing a letter 
under subparagraph (A) of this paragraph or enter-
ing into a full funding grant agreement, the Sec-
retary shall notify in writing the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate and the 
House and Senate Committees on Appropriations of 
the proposed letter or agreement. The Secretary 
shall include with the notification a copy of the pro-
posed letter or agreement as well as the evaluations 
and ratings for the project. 
‘‘(C) An obligation or administrative commit-
ment may be made only when amounts are appro-
priated. 
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‘‘(2)(A) The Secretary may make a full funding 
grant agreement with an applicant. The agreement 
shall— 
‘‘(i) establish the terms of participation by 
the United States Government in a project 
under this section; 
‘‘(ii) establish the maximum amount of 
Government financial assistance for the project; 
‘‘(iii) cover the period of time for com-
pleting the project, including a period extending 
beyond the period of an authorization; and 
‘‘(iv) make timely and efficient manage-
ment of the project easier according to the law 
of the United States. 
‘‘(B) An agreement under this paragraph obli-
gates an amount of available budget authority speci-
fied in law and may include a commitment, contin-
gent on amounts to be specified in law in advance 
for commitments under this paragraph, to obligate 
an additional amount from future available budget 
authority specified in law. The agreement shall state 
that the contingent commitment is not an obligation 
of the Government and is subject to the availability 
of appropriations made by Federal law and to Fed-
eral laws in force on or enacted after the date of the 
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contingent commitment. Interest and other financing 
costs of efficiently carrying out a part of the project 
within a reasonable time are a cost of carrying out 
the project under a full funding grant agreement, 
except that eligible costs may not be more than the 
cost of the most favorable financing terms reason-
ably available for the project at the time of bor-
rowing. The applicant shall certify, in a way satis-
factory to the Secretary, that the applicant has 
shown reasonable diligence in seeking the most fa-
vorable financing terms. 
‘‘(3)(A) The Secretary may make an early sys-
tems work agreement with an applicant if a record 
of decision under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) has been 
issued on the project and the Secretary finds there 
is reason to believe— 
‘‘(i) a full funding grant agreement for the 
project will be made; and 
‘‘(ii) the terms of the work agreement will 
promote ultimate completion of the project 
more rapidly and at less cost. 
‘‘(B) A work agreement under this paragraph 
obligates an amount of available budget authority 
specified in law and shall provide for reimbursement 
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‘‘(3) The Secretary shall consider changes in 
capital project cost indices when determining the es-
timated cost under paragraph (2) of this subsection. 
‘‘(h) 2-YEAR AVAILABILITY.—Funds appropriated 
under this section shall remain available until expended. 
If any amount provided as a grant under this section is 
not obligated or expended for the purposes described in 
subsection (a) within 2 years after the date on which the 
State received the grant, such sums shall be returned to 
the Secretary for other intercity passenger rail develop-
ment projects under this section at the discretion of the 
Secretary. 
‘‘(i) SPECIAL TRANSPORTATION CIRCUMSTANCES.— 
In carrying out this section, the Secretary shall allocate 
an appropriate portion of the amounts available under this 
section to provide grants to States— 
‘‘(1) in which there is no intercity passenger 
rail service for the purpose of funding freight rail 
capital projects that are on a State rail plan devel-
oped under chapter 225 of this title that provide 
public benefits (as defined in chapter 225) as deter-
mined by the Secretary; or 
‘‘(2) in which the rail transportation system is 
not physically connected to rail systems in the conti-
nental United States or may not otherwise qualify 
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for a grant under this section due to the unique 
characteristics of the geography of that State or 
other relevant considerations, for the purpose of 
funding transportation-related capital projects. 
‘‘(j) SMALL CAPITAL PROJECTS.—The Secretary 
shall make available $10,000,000 annually from the 
amounts authorized under section 101(d) of the Passenger 
Rail Investment and Improvement Act of 2008 beginning 
in fiscal year 2009 for grants for capital projects eligible 
under this section not exceeding $2,000,000, including 
costs eligible under section 206(c) of that Act. The Sec-
retary may wave requirements of this section, including 
state rail plan requirements, as appropriate. 
‘‘(k) BICYCLE ACCESS.—Grants under this chapter 
may be used to provide bicycle access into rolling stock, 
and to provide bicycle racks in trains. 
‘‘§ 24403. Project management oversight 
‘‘(a) PROJECT
MANAGEMENT
PLAN
REQUIRE-
MENTS.—To receive Federal financial assistance for a 
major capital project under this chapter, an applicant 
must prepare and carry out a project management plan 
approved by the Secretary of Transportation. The plan 
shall provide for— 
‘‘(1) adequate recipient staff organization with 
well-defined reporting relationships, statements of 
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functional responsibilities, job descriptions, and job 
qualifications; 
‘‘(2) a budget covering the project management 
organization, appropriate consultants, property ac-
quisition, utility relocation, systems demonstration 
staff, audits, and miscellaneous payments the recipi-
ent may be prepared to justify; 
‘‘(3) a construction schedule for the project; 
‘‘(4) a document control procedure and record-
keeping system; 
‘‘(5) a change order procedure that includes a 
documented, systematic approach to handling the 
construction change orders; 
‘‘(6) organizational structures, management 
skills, and staffing levels required throughout the 
construction phase; 
‘‘(7) quality control and quality assurance func-
tions, procedures, and responsibilities for construc-
tion, system installation, and integration of system 
components; 
‘‘(8) material testing policies and procedures; 
‘‘(9) internal plan implementation and reporting 
requirements; 
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‘‘(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 available 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 con-
tracts for safety, procurement, management, and fi-
nancial compliance reviews and audits of a recipient 
of amounts under paragraph (1). 
‘‘(3) The Federal Government shall pay the en-
tire cost of carrying out a contract under this sub-
section. 
‘‘(c) ACCESS TO SITES AND RECORDS.—Each recipi-
ent of assistance under this chapter shall provide the Sec-
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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. 
‘‘§ 24404. Use of capital grants to finance first-dollar 
liability of grant project 
‘‘Notwithstanding the requirements of section 24402 
of this chapter, the Secretary of Transportation may ap-
prove the use of capital assistance under this chapter to 
fund self-insured retention of risk for the first tier of li-
ability insurance coverage for rail passenger service associ-
ated with the capital assistance grant, but the coverage 
may 
not 
exceed 
$20,000,000 
per 
occurrence 
or 
$20,000,000 in aggregate per year. 
‘‘§ 24405. Grant conditions 
‘‘(a) DOMESTIC BUYING PREFERENCE.— 
‘‘(1) REQUIREMENT.— 
‘‘(A) IN
GENERAL.—In carrying out a 
project funded in whole or in part with a grant 
under this title, the grant recipient shall pur-
chase only— 
‘‘(i) unmanufactured articles, mate-
rial, and supplies mined or produced in the 
United States; or 
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