To establish a national rail passenger transportation system, reauthorize Amtrak, improve security and service on Amtrak, and for other purposes.

January 7, 2003

Mr. HOLLINGS (for himself, MR. BAYH, Mr. BIDEN, Mrs. BOXER, Mr. BREAUX, Mr. Burns, Ms. CANTWELL, Mr. CARPER, Mrs. CLINTON, Ms. COLLINS, Mr. CORZINE, Mr. DODD, Mr. DORGAN, Mr. DURBIN, Mr. JEFFORDS, Mr. KENNEDY, Mr. LAUTENBERG, Mr. LEAHY, Ms. MIKULSKI, Mr. MILLER, Mr. REID, Mr. SARBANES, Mr. SCHUMER, Ms. SNOWE, Mr. Specter, and Mr. Stevens) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

To establish a national rail passenger transportation system, reauthorize Amtrak, improve security and service on Amtrak, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `National Defense Rail Act'.

(b) Amendment of Title 49- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 49, United States Code.

(c) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title; amendment of title 49; table of contents.

Sec. 2. Findings.

TITLE I--RAIL TRANSPORTATION SECURITY

Sec. 101. Rail transportation security risk assessment.

Sec. 102. Rail security.

Sec. 103. Study of foreign rail transport security programs.

Sec. 104. Passenger, baggage, and cargo screening.

Sec. 105. Certain personnel limitations not to apply.

Sec. 106. Authorization of appropriations.

TITLE II--INTERSTATE RAILROAD PASSENGER HIGH-SPEED TRANSPORTATION SYSTEM

Sec. 201. Interstate railroad passenger high-speed transportation policy.

Sec. 202. High-speed rail corridor planning.

Sec. 203. Implemenation assistance.

Sec. 204. Designated high-speed rail corridors.

Sec. 205. Labor standards.

Sec. 206. Railway-highway crossings in high-speed rail corridors.

Sec. 207. Authorization of appropriations.

TITLE III--NATIONAL RAILROAD PASSENGER CORPORATION

Sec. 301. National railroad passenger transportation system defined.

Sec. 302. Amtrak authorizations.

Sec. 303. Additional Amtrak authorizations.

Sec. 304. Northeast Corridor authorizations.

Sec. 305. Long distance trains.

Sec. 306. Short distance trains; State-supported routes.

Sec. 307. Re-establishment of Northeast Corridor Safety Committee.

Sec. 308. On-time performance.

Sec. 309. Amtrak board of directors.

Sec. 310. Establishment of financial accounting system for Amtrak operations by independent auditor.

Sec. 311. Development of 5-year financial plan.

Sec. 312. Revised reporting methodology required.

Sec. 313. Appropriated amounts to be spent proportionately.

Sec. 314. Independent auditor to establish criteria for Amtrak route and service planning decisions.

TITLE IV--MISCELLANEOUS

Sec. 401. Rehabilitation, improvement, and security financing.

Sec. 402. Rail passenger cooperative research program.

Sec. 403. Conforming amendments to title 49 reflecting ICC Termination Act.

Sec. 404. Applicability of reversion to Alaska Railroad right-of-way property.

SEC. 2. FINDINGS.

The Congress finds the following:

(1) Financial investment in passenger rail infrastructure is critical, and Federal leadership is required to address the needs of a reliable, safe, secure passenger rail network, just as has been used in establishing the interstate highway system and the Federal aviation network.

(2) Lack of investment and attention to the needs of passenger rail infrastructure has resulted in a weak passenger rail network, and has caused a strain on the capacity of other modes of transportation in many areas of the country. According to the Department of Transportation, in 1999 the cost of wasted time and extra fuel consumption due to delays on congested roads was estimated at $78 billion.

(3) Passenger rail is an integral part of the United States transportation system, and, as can be evidenced in the Northeast Corridor, relieves the pressures of congestion on highways and at airports, and creates a more balanced system of transportation alternatives.

(4) Passenger rail service has been a vital instrument in the transportation needs of our nation. For instance, during World War II, the privately owned, operated, and constructed railroad industry transported 90 percent of all defense freight, and 97 percent of all defense personnel transported to points of embarkation for theaters of action. By the end of the war, railroads accounted for three quarters of the share of the common carrier share of intercity traffic, with airplanes and buses sharing the remaining quarter of traffic.

(5) Significant attention and Federal funding were required to construct the Eisenhower System of Interstate and Defense Highways. The Federal Aid Highway Act of 1956 established a Highway Trust Fund based upon Federal user taxes in order to finance up to 90 percent of the costs of the $25 billion dollar highway construction plan.

(6) Federal policies with respect to investment in aviation resulted in a strengthened aviation industry and the rapid development of air passenger service, and by the late 1960's most rail companies were

petitioning the government to discontinue passenger services because of losses.

(7) Amtrak was established in 1971 by the Rail Passenger Service Act of 1970 to provide passenger rail services in the United States as a public service; at the time of Amtrak's formation, freight railroads were losing money on unprofitable passenger rail operations. Since 1971 Amtrak has received only $25 billion in public subsidies; during that period, the United States invested over $570 billion on highways and aviation.

(8) The Amtrak Reform and Accountability Act of 1997, and preceding statutes, resulted in creating conflicting missions for the National Railroad Passenger Corporation of both serving a public function by operating unprofitable long-distance routes while also attempting to operate at a profit. This policy has also restricted Amtrak's profit potential on the Northeast Corridor by limiting the capital expenditures to help defray other costs.

(9) Due to a lack of capital investment, the Northeast Corridor has accumulated a backlog of repair needs, including life safety and security needs. Investment in the capital needs of the Northeast Corridor would result in capacity improvements which would result in greater utilization of the existing infrastructure.

(10) The Department of Transportation Inspector General's 2001 Assessment of Amtrak's Financial Performance and Requirements (Report #CR-2002-075) found that Amtrak's lack of available capital has impeded its efforts to achieve financial goals.

(11) In order to attempt to meet the mandate of the Amtrak Reform and Accountability Act of 1997, Amtrak has been forced to delay capital improvement projects and other projects which would produce long-term benefits.

(12) The Department of Transportation Inspector General's 2001 Assessment of Amtrak's Financial Performance and Requirements (Report #CR-2002-075) found that Amtrak's most profitable operations are on the Northeast Corridor, where Federal investment in passenger rail infrastructure has been significantly higher than anywhere else in the country.

(13) Federal investments in capital projects to support passenger rail in areas other than the Northeast Corridor would result in improved service and increase profitability.

(14) The need for a balanced interstate and international transportation system that provides a viable alternative to travel by private automobile or commercial aircraft is particularly evident after the events of September 11, 2001.

(15) As a matter of national security, a strong passenger rail network would provide travelers an alternative to highway and air travel, which could lead to reduced United States reliance on foreign oil imports.

(16) In fiscal year 2001, the United States spent less than 1 percent of all transportation modal spending on intercity passenger rail, and since 1998 Amtrak has received only $2.8 billion of the $5.3 billion it has been authorized to receive by Congress.

(17) Passenger rail in the United States has no stable funding source, in contrast to highways, aviation, and transit.

(18) Per capita spending on passenger rail is much higher in other countries than the United States and, in fact, the United States ranks behind other countries including Canada, Japan, France, Great Britain, Italy, Spain, Austria, Switzerland, Belgium, Sweden, Luxembourg, Denmark, Ireland, Norway, the Czech Republic, Finland, Slovakia, Portugal, Poland, South Africa, Greece, and Estonia.

(19) The United States needs to engage in long-term planning to foster and address future passenger transportation growth and show forethought regarding transportation solutions rather than be forced to act due to an impending crisis.

(20) It is in the national interest to preserve passenger rail service in the United States and to maintain the solvency of the National Railroad Passenger Corporation.

(21) Long-term planning and support for passenger rail will help offset the emerging problems created by transportation congestion, and contribute to a cleaner and more environmentally-friendly transportation system.

(22) A comprehensive re-evaluation of our nation's rail passenger policy is required and a clearly defined role for Amtrak and a connected rail passenger network must be established.

(23) The Federal government must take the primary responsibility for developing national railroad passenger transportation infrastructure, and help ensure that it functions as an efficient network. Privatization of the rail passenger industry in Great Britain has been disastrous and passenger service has suffered overall.

(24) The nation should be afforded the opportunity to receive safe, efficient, and cost-effective rail passenger services, taking into account all benefits to the nation as a whole.

TITLE I--RAIL TRANSPORTATION SECURITY

SEC. 101. RAIL TRANSPORTATION SECURITY RISK ASSESSMENT.

(a) In General-

(1) ASSESSMENT- The Secretary of Homeland Security, in consultation with the Secretary of Transportation, shall assess the security risks associated with freight and intercity passenger rail transportation and develop prioritized recommendations for--

(A) improving the security of rail infrastructure and facilities, terminals, tunnels, rail bridges, rail switching areas, and other areas identified by the Secretary as posing significant rail-related risks to public safety and the movement of interstate commerce, taking into account the impact that any proposed security

measure might have on the provision of rail service;

(B) deploying chemical and biological weapon detection equipment;

(C) training employees in terrorism response activities; and

(D) identifying the immediate and long-term economic impact of measures that may be required to address those risks.

(2) EXISTING PRIVATE AND PUBLIC SECTOR EFFORTS- The assessment shall include a review of any actions already taken or prospective actions necessary to address identified security issues by both public and private entities.

(3) RAILROAD CROSSING DELAYS- The Secretary shall include in the assessment an analysis of the risks to public safety and to the security of rail transportation that are associated with long delays in the movement of trains that have stopped on railroad grade crossings of highways, streets, and other roads for motor vehicle traffic, especially in major metropolitan areas. The Secretary shall include in the recommendations developed under paragraph (1) recommended actions for preventing such delays and reducing the risks identified in the analysis.

(b) CONSULTATION; USE OF EXISTING RESOURCES- In carrying out the assessment required by subsection (a), the Secretary shall consult with rail management, rail labor, facility owners and operators, and public safety officials (including officials responsible for responding to emergencies).

(c) Report-

(1) CONTENTS- Within 180 days after the date of enactment of this Act, the Secretary shall transmit to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure a report, without compromising national security, containing the assessment and prioritized recommendations required by subsection (a).

(2) FORMAT- The Secretary may submit the report in both classified and redacted formats if the Secretary determines that such action is appropriate or necessary.

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary $515,000,000 for fiscal year 2004 to carry out this section, implement the measures contained in the Secretary's prioritized recommendations, and award grants for purposes identified in the assessment in subsection (a), such sums to remain available until expended.

SEC. 102. RAIL SECURITY.

(a) RAIL POLICE OFFICERS- Section 28101 is amended by striking `the rail carrier' each place it appears and inserting `any rail carrier'.

(b) REVIEW OF RAIL REGULATIONS- Within 180 days after the date of enactment of this Act, the Secretary of Transportation, in consultation with the Department of Homeland Security, shall review existing rail regulations of the Department of Transportation for the purpose of identifying areas in which those regulations need to be revised to improve rail safety and security.

SEC. 103. STUDY OF FOREIGN RAIL TRANSPORT SECURITY PROGRAMS.

(a) REQUIREMENT FOR STUDY- Not later than December 1, 2004, the Comptroller General shall carry out a study of the rail passenger transportation security programs that are carried out for rail transportation systems in Japan, member nations of the European Union, and other foreign countries.

(b) PURPOSE- The purpose of the study shall be to identify effective rail transportation security measures that are in use in foreign rail transportation systems, including innovative measures and screening procedures determined effective.

(c) REPORT- The Comptroller General shall submit a report on the results of the study to Congress. The report shall include the Comptroller General's assessment regarding whether it is feasible to implement within the United States any of the same or similar security measures that are determined effective under the study.

SEC. 104. PASSENGER, BAGGAGE, AND CARGO SCREENING.

(a) REQUIREMENT FOR STUDY AND REPORT- The Secretary of Homeland Security shall--

(1) study the cost and feasibility of requiring security screening for all passengers, baggage, and mail, express, and other cargo on Amtrak trains; and

(2) report the results of the study, together with any recommendations that the Secretary may have for implementing a rail security screening program to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives one year after the date of enactment of this Act.

(b) PILOT PROGRAM- As part of the study under subsection (a), the Secretary shall conduct a pilot program of random security screening of passengers and baggage at 5 of the 10 busiest passenger rail stations served by Amtrak (measured by the average number of boardings of Amtrak passenger trains) and at up to five additional rail stations served by Amtrak that are selected by the Secretary. In selecting the additional train stations the Secretary shall attempt to achieve a distribution of participating stations in terms of geographic location and size.

SEC. 105. CERTAIN PERSONNEL LIMITATIONS NOT TO APPLY.

Any statutory limitation on the number of employees in the Transportation Security Administration of the Department of Transportation, before or after its transfer to the Department of Homeland Security, does not apply to the extent that any such employees are responsible for implementing the provisions of this title.

TITLE II--INTERSTATE RAILROAD PASSENGER HIGH-SPEED TRANSPORTATION SYSTEM

SEC. 201. INTERSTATE RAILROAD PASSENGER HIGH-SPEED TRANSPORTATION POLICY.

(a) IN GENERAL- Chapter 261 is amended by inserting before section 26101 the following:

`Sec. 26100. Policy.

`(a) IN GENERAL- The Congress declares that it is the policy of the United States that designated high-speed railroad passenger transportation corridors are the building blocks of an interconnected interstate railroad passenger system that serves the entire Nation.

`(b) SECRETARY REQUIRED TO ESTABLISH NATIONAL HIGH-SPEED GROUND TRANSPORTATION POLICY- The Secretary of Transportation shall establish the national high-speed ground transportation policy required by section 309(e)(1) of this title no later than December 31, 2003.'.

(b) Conforming Amendments-

(1) The chapter analysis for chapter 261 is amended by inserting before the item relating to section 26101 the following:

`26100. Policy'.

(2) Section 309(e)(1) is amended by striking `Within 12 months after the submission of the study required by subsection (d),' and inserting `No later than December 31, 2003,'.

SEC. 202. HIGH-SPEED RAIL CORRIDOR PLANNING.

(a) In General- Section 26101(a) is amended to read as follows:

`(a) PLANNING-

`(1) IN GENERAL- The Secretary of Transportation shall provide planning assistance to States or group of States and other public agencies promoting the development of high-speed rail corridors designated by the Secretary under section 104(d) of title 23.

`(2) SECRETARY MAY PROVIDE DIRECT OR FINANCIAL ASSISTANCE- The Secretary may provide planning assistance under paragraph (1) directly or by providing financial assistance to a public agency or group of public agencies to undertake planning activities approved by the Secretary.

`(3) 100 percent federal funding- The Secretary may permit, but may not require, a portion of the publicly financed costs associated with eligible activities to come from non-Federal sources.

`(4) PRIORITIES TO CHICAGO, ATLANTA, DALLAS/FORT WORTH, PORTLAND, AND ORLANDO- In determining projects to be undertaken pursuant to this paragraph, the Secretary shall give the highest priorities to undertaking planning in the vicinity of Union Station in Chicago, Illinois, in metropolitan Atlanta, Georgia, in the Dallas/Fort Worth, Texas, area, in the Portland, Oregon, area, and on the Orlando Corridor in Florida.'.

(b) Conforming and Other Amendments to Section 26101- Section 26101 is further amended--

(1) by striking subsection (c)(2) and inserting the following:

`(2) the extent to which the proposed planning focuses on high-speed rail systems, giving a priority to systems which will achieve sustained speeds of 125 miles per hour or greater and projects involving dedicated rail passenger rights-of-way;';

(2) by inserting `and' after the semicolon in subsection (c)(12);

(3) by striking `completed; and' in subsection (c)(13) and inserting `completed.'; and

(4) by striking subsection (c)(14).

(c) CONFORMING AMENDMENT- Section 26105(2)(A) is amended by striking `more than 125 miles per hour;' and inserting `90 miles per hour or more;'.

(d) FINANCIAL ASSISTANCE TO INCLUDE LOANS AND LOAN GUARANTEES- Section 26105(1) is amended by inserting `loans, loan guarantees,' after `contracts,'.

SEC. 203. IMPLEMENTATION ASSISTANCE.

(a) IN GENERAL- Chapter 261 is amended by inserting after section 26101 the following:

`Sec. 26101A. Implementation of corridor plans

`(a) IMPLEMENTATION ASSISTANCE-

`(1) IN GENERAL- The Secretary of Transportation shall provide implementation assistance to States or group of States and other public agencies promoting the development of high-speed rail corridors designated by the Secretary under section 104(d) of title 23. The Secretary shall establish an application and qualification process and, before providing assistance under this section, make a determination on the record that the applicant is qualified and eligible for assistance under this section.

`(2) SECRETARY MAY PROVIDE DIRECT OR FINANCIAL ASSISTANCE- The Secretary may provide implementation assistance under paragraph (1) directly or by providing financial assistance to a public agency or group of public agencies to undertake implementation activities approved by the Secretary.

`(3) 100 percent federal share- The Secretary may permit, but may not require, a portion of the publicly financed costs associated with eligible activities to come from non-Federal sources.

`(4) CONTRIBUTION OF LAND- Notwithstanding paragraph (3), the Secretary may accept land contributed by a State for right-of-way, without regard to whether the State acquired the land directly or indirectly through the use of Federal funds, including transfers from the Highway Trust Fund under section 9503 of the Internal Revenue Code of 1986.

`(5) PRIORITIES TO CHICAGO, ATLANTA, DALLAS/FORT WORTH, PORTLAND, AND ORLANDO- In determining projects to be undertaken pursuant to this subsection, the Secretary shall give the highest priorities to undertaking implementation assistance in the vicinity of Union Station in Chicago, Illinois, in metropolitan Atlanta, Georgia, and in the Dallas/Fort Worth, Texas, area, in the Portland, Oregon, area, and on the Orlando Corridor in Florida.

`(6) SPECIAL TRANSPORTATION CIRCUMSTANCES- In carrying out this section, the Secretary shall allocate an appropriate portion of the amounts available for implementation assistance to providing appropriate related assistance in any State the rail transportation system of which--

`(A) is not physically connected to rail systems in the continental United States; and

`(B) may not otherwise qualify for high-speed rail implementation assistance due to the constraints imposed on the railway infrastructure in that State due to the unique characteristics of the geography of that State or other

relevant considerations, as determined by the Secretary.

`(b) ELIGIBLE IMPLEMENTATION ACTIVITIES- The following activities are eligible for implementation assistance under subsection (a):

`(1) Security planning and the acquisition of security and emergency response equipment.

`(2) Operating expenses.

`(3) Infrastructure acquisition and construction of track and facilities.

`(4) Highway-rail grade crossing eliminations and improvements.

`(5) Acquisition of rights-of-way, locomotives, rolling stock, track, and signal equipment.

`(c) CRITERIA FOR DETERMINING ASSISTANCE FOR IMPLEMENTATION ACTIVITIES- The Secretary, in selecting recipients of assistance under subsection (a), shall--

`(1) encourage the use of positive train control technologies;

`(2) require that any project meet any existing safety regulations, and give preference to any project determined by the Secretary to have particularly high levels of safety;

`(3) encourage intermodal connectivity by locating train stations in or near airports, bus terminals, subway stations, ferry ports, and other modes of transportation;

`(4) ensure a general regional balance in providing such assistance and avoid the concentration of a disproportionate dedication of available financial assistance resources to a single project or region of the country; and

`(5) ensure that any project is compatible with, and operated in conformance with, plans developed pursuant to the requirements of sections 134 and 135 of title 23, United States Code.

`(d) OPERATORS DEEMED RAIL CARRIERS- A person that conducts rail operations funded or otherwise receiving assistance under this section is deemed to be a rail carrier for purposes of part A of subtitle IV, when so operating or performing such services.

`(e) DOMESTIC BUYING PREFERENCES-

`(1) IN GENERAL- In carrying out a project assisted under this section, a recipient shall buy only--

`(A) unmanufactured articles, material, and supplies mined or produced in the United States; or

`(B) manufactured articles, material, and supplies manufactured in the United States substantially from articles, material, and supplies mined, produced, or manufactured in the United States.

`(2) DE MINIMIS AMOUNT- Paragraph (1) of this subsection applies only when the cost of those articles, material, or supplies bought is at least $1,000,000.

`(3) EXEMPTIONS- On application of a recipient, the Secretary of Transportation may exempt a recipient from the requirements of this subsection if the Secretary decides that, for particular articles, material, or supplies--

`(A) the requirements of paragraph (1) of this subsection are inconsistent with the public interest;

`(B) the cost of imposing those requirements is unreasonable; or

`(C) the articles, material, or supplies, or the articles, material, or supplies from which they are manufactured, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and are not of a satisfactory quality.

`(4) UNITED STATES DEFINED- In this subsection, the term `the United States' means the States, territories, and possessions of the United States and the District of Columbia.

`(f) SECTION DOES NOT APPLY TO CERTAIN RAIL OPERATIONS- Nothing in this section applies to--

`(1) commuter rail passenger transportation (as defined in section 24102(4)) operations of a State or local government authority (as those terms are defined in section 5302(11) and (6), respectively) eligible to receive financial assistance under section 5307, or to its contractor performing services in connection with commuter rail passenger operations (as so defined); or

`(2) the Alaska Railroad or its contractors.'.

(b) RULEMAKING REQUIRED- Within 90 days after the date of enactment of this Act, the Secretary of Transportation shall initiate a rulemaking to create an application and qualification procedure for providing high-speed rail corridor implementation assistance under section 26101A of title 49, United States Code.

(c) PROCEDURES FOR GRANT AWARD- Within 90 days after the date of enactment of this Act, the Secretary of Transportation shall initiate a rulemaking to create procedures for the awarding of implementation assistance under this section. The Procedures shall include the execution of a full funding grant agreement between the applicant and the government.

(d) COMPETITIVE BIDDING ON HIGH-SPEED RAIL ROUTES- The Secretary of Transportation shall determine that a State or group of States and other public agencies promoting a high-speed rail project under the provisions of section 26101A of title 49, United States Code, as a condition of receiving funding under such section, has provided for competitive bidding for the project in accordance with the Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (49 CFR section 18.36). Within 180 days after the date of enactment of this Act, the Secretary, in consultation with the States or groups of States and other public agencies, shall issue criteria for the services to which the competitive bidding by this section applies. A train operator selected under section 26101A of title 49, United States Code, is deemed to be a rail carrier for purposes of part A of subtitle 49, United States Code, when performing such services.

(e) CONFORMING AMENDMENT- The chapter analysis for chapter 261 is amended by inserting after the item relating to section 26101 the following:

`26101A. Implementation of corridor plans'.

SEC. 204. DESIGNATED HIGH-SPEED RAIL CORRIDORS.

(a) IN GENERAL- The Secretary of Transportation shall give priority in allocating funds authorized by section 26104 of title 49, United States Code, to designated high-speed rail corridors.

(b) DESIGNATED HIGH-SPEED RAIL CORRIDORS- For purposes of subsection (a), the following shall be considered to be designated high-speed rail corridors:

(1) California Corridor connecting the San Francisco Bay area and Sacramento to Los Angeles and San Diego.

(2) Chicago Hub Corridor Network with the following spokes:

(A) Chicago to Detroit.

(B) Chicago to Minneapolis/St. Paul, Minnesota, via Milwaukee, Wisconsin.

(C) Chicago to Kansas City, Missouri, via Springfield, Illinois, and St. Louis, Missouri.

(D) Chicago to Louisville, Kentucky, via Indianapolis, Indiana, and Cincinnati, Ohio.

(E) Chicago to Cleveland, Ohio, via Toledo, Ohio.

(F) Cleveland, Ohio, to Cincinnati, Ohio, via Columbus, Ohio.

(3) Empire State Corridor from New York City, New York, through Albany, New York, to Buffalo, New York.

(4) Florida High-Speed Rail Corridor from Tampa through Orlando to Miami.

(5) Gulf Coast Corridor from Houston, Texas, through New Orleans, Louisiana, to Mobile, Alabama, with a branch from New Orleans, through Meridian, Mississippi, and Birmingham, Alabama, to Atlanta, Georgia.

(6) Keystone Corridor from Philadelphia, Pennsylvania, through Harrisburg, Pennsylvania, to Pittsburgh, Pennsylvania.

(7) Northeast Corridor from Washington, District of Columbia, through New York City, New York, New Haven, Connecticut, and Providence, Rhode Island, to Boston, Massachusetts, with a branch from New Haven, Connecticut, to Springfield, Massachusetts.

(8) New England Corridor from Boston, Massachusetts, to Portland and Auburn, Maine, and from Boston, Massachusetts, through Concord, New Hampshire, and Montpelier, Vermont, to Montreal, Quebec.

(9) Pacific Northwest Corridor from Eugene, Oregon, through Portland, Oregon, and Seattle, Washington, to Vancouver, British Columbia.

(10) South Central Corridor from San Antonio, Texas, through Dallas/Fort Worth to Little Rock, Arkansas, with a branch from Dallas/Fort Worth through Oklahoma City, Oklahoma, to Tulsa, Oklahoma.

(11) Southeast Corridor from Washington, District of Columbia, through Richmond, Virginia, Raleigh, North Carolina, Columbia, South Carolina, Savannah, Georgia, and Jessup, Georgia, to Jacksonville, Florida, with--

(A) a branch from Raleigh, North Carolina, through Charlotte, North Carolina, and Greenville, South Carolina, to Atlanta, Georgia; a branch from Richmond, to Hampton Roads/Norfolk, Virginia;

(B) a branch from Charlotte, North Carolina, to Columbia, South Carolina, to Charleston, South Carolina;

(C) a connecting route from Atlanta, Georgia, to Jessup, Georgia;

(D) a connecting route from Atlanta, Georgia, to Charleston, South Carolina; and

(E) a branch from Raleigh, North Carolina, through Florence, South Carolina, to Charleston, South Carolina, and Savannah, Georgia, with a connecting route from Florence, South Carolina, to Myrtle Beach, South Carolina.

(12) Southwest Corridor from Los Angeles, California, to Las Vegas, Nevada.

(c) OTHER HIGH-SPEED RAIL CORRIDORS- For purposes of this section, subsection (b)--

(1) does not limit the term `designated high-speed rail corridor' to those corridors described in subsection (b); and

(2) does not limit the Secretary of Transportation's authority--

(A) to designate additional high-speed rail corridors; or

(B) to terminate the designation of any high-speed rail corridor.

SEC. 205. LABOR STANDARDS.

(a) CURRENT EMPLOYEE PROTECTIONS- Nothing in this Act, or in any amendment made by this Act, shall affect the level of protection provided to freight railroad employees, employees of the National Passenger Railroad Corporation, and mass transportation employees as it existed on the day before the date of enactment of this Act.

(b) LABOR STANDARDS-

(1) PREVAILING WAGES- The Secretary of Transportation--

(A) shall ensure that laborers and mechanics employed by contractors and subcontractors in construction work financed in whole or in part by funds authorized by this Act will be paid wages not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor under the Act of March 3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et seq.); and

(B) may make such funds available with respect to construction work only after being assured that required labor standards will be maintained on the construction work.

(2) WAGE RATES- Wage rates in a collective bargaining agreement negotiated under the Railway Labor Act (45 U.S.C. 151 et seq.) are deemed for purposes of this subsection to comply with the Act of March 3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et seq.).

(3) EMPLOYEE PROTECTION- The Secretary of Transportation shall require as a condition of any project financed in whole or in part by funds authorized by this title that the project be conducted in a manner that provides a fair arrangement at least as protective of the interests of employees who are affected by the project so funded as the terms imposed under arrangements reached under section 141 of the Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24706 note).

SEC. 206. RAILWAY-HIGHWAY CROSSINGS IN HIGH-SPEED RAIL CORRIDORS.

(a) IN GENERAL- The entire cost of construction of projects for the elimination of hazards of railway-highway crossings in designated high-speed rail corridors, including the separation or protection of grades at crossings, the reconstruction of existing railroad grade crossing structures, and the relocation of highways to eliminate grade crossings, may be paid from sums authorized by subsection (k). In any case when the elimination of the hazards of a railway-highway crossing can be effected by the relocation of a portion of a railway at a cost estimated by the Secretary of Transportation to be less than the cost of such elimination by one of the methods mentioned in the first sentence of this section, then the entire cost of such relocation project may be paid from sums authorized by subsection (k).

(b) CLASSIFICATION OF PROJECTS- The Secretary may classify the various types of projects involved in the elimination of hazards of high-speed rail corridor railway-highway crossings, and may set for each such classification a percentage of the costs of construction which shall be deemed to represent the net benefit to the railroad or railroads for the purpose of determining the railroad's share of the cost of construction. The percentage so determined shall in no case exceed 10 per cent of such costs. The Secretary shall determine the appropriate classification of each project.

(c) LIABILITY OF RAILROAD- Any railroad involved in a project for the elimination of hazards of railway-highway crossings paid for in whole or in part from sums made available under this section shall be liable to the United States for the net benefit to the railroad determined under the classification of such project made under subsection (b). That liability to the United States may be discharged by direct payment to the State transportation department of the State in which the project is located, in which case such payment shall be credited to the cost of the project. The payment may consist in whole or in part of materials and labor furnished by the railroad in connection with the construction of the project. If any such railroad fails to discharge such liability within a 6-month period after completion of the project, it shall be liable to the United States for its share of the cost, and the Secretary shall request the Attorney General to institute proceedings against such railroad for the recovery of the amount for which it is liable under this subsection. The Attorney General is authorized to bring such proceedings on behalf of the United States, in the appropriate district court of the United States, and the United States shall be entitled in such proceedings to recover such sums as it is considered and adjudged by the court that such railroad is liable for in the premises. Any amounts recovered by the United States under this subsection shall be credited to miscellaneous receipts.

(d) SURVEY AND SCHEDULE OF PROJECTS- For purposes of this section, each State shall utilize the survey it is required to conduct and maintain under section 130 of title 23, United States Code, to identify those high-speed rail corridor railway-highway crossings that may require separation, relocation, or protective devices.

(e) FUNDS FOR PROTECTIVE DEVICES- The Secretary shall give priority under this section to the elimination of high-speed rail corridor railway-highway grade crossings, but shall make funds authorized for obligation or expenditure under this section available for the installation of protective devices at high-speed rail corridor railway-highway crossings where appropriate.

(f) ANNUAL REPORT- The Secretary shall report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure not later than December 30 of each year on the progress being made to implement the railway-highway crossings program authorized by this section and the effectiveness of such improvements. Each report shall contain an assessment of the costs of the various treatments employed and subsequent accident experience at improved locations. The report shall include--

(1) the number of projects undertaken, their distribution by cost range, road system, nature of treatment, and subsequent accident experience at improved locations;

(2) an analysis and evaluation of the program activities in each State, including identification of any State found not to be in compliance with the schedule of improvements required by subsection (d); and

(3) recommendations for future implementation of the railway-highway crossings program under this section and section 130 of title 23, United States Code.

(g) USE OF FUNDS FOR MATCHING- Funds authorized to be appropriated to carry out this section may be used to provide a local government with funds to be used on a matching basis when State funds are available which may only be spent when the local government produces matching funds for the improvement of railway-highway crossings.

(h) INCENTIVE PAYMENTS FOR AT-GRADE CROSSING CLOSURES-

(1) IN GENERAL- Notwithstanding any other provision of this section and subject to paragraphs (2) and (3), the Secretary may make incentive payments to a local government upon the permanent closure by such government of public at-grade high-speed rail corridor railway-highway crossings under its jurisdiction.

(2) INCENTIVE PAYMENTS BY RAILROADS- The Secretary may not make an incentive payment under paragraph (1) to a local government with respect to the closure of a crossing unless the railroad owning or operating the tracks on which the crossing is located makes an incentive payment to the government with respect to the closure.

(3) AMOUNT OF FEDERAL INCENTIVE PAYMENT- The amount of the incentive payment payable to a local government under paragraph (1) with respect to a crossing may not exceed the lesser of--

(A) the amount of the incentive payment paid to the government with respect to the crossing by the railroad concerned under paragraph (2); or

(B) $ 7,500.

(i) Coordination With Title 23 Program- In carrying out this section, the Secretary shall--

(1) implement this section in accordance with the classification of projects and railroad share of the cost as provided in section 646.210 of title 23, Code of Federal Regulations; and

(2) coordinate the administration of this section with the program established by section 130 of title 23, United States Code, in order to avoid duplication of effort and to ensure the effectiveness of both programs.

(j) FUNDING- Not less than 10 percent of the amounts appropriated for each fiscal year to carry out section 26101A shall be obligated or expended to carry out this section.

SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

Section 26104 is amended to read as follows:

`Sec. 26104. Authorization of appropriations

`(a) Fiscal Years 2004 Through 2008- There are authorized to be appropriated to the Secretary for each of fiscal years 2004 through 2008--

`(1) $25,000,000 for carrying out section 26101;

`(2) $1,500,000,000 for carrying out section 26101A, including amounts set aside under section 206(k) of the National Defense Rail Act to carry out section 206 of that Act; and

`(3) $25,000,000 for carrying out section 26102.

`(b) FUNDS TO REMAIN AVAILABLE- Funds made available under this section shall remain available until expended.

`(c) SPECIAL RULE- Except as specifically provided in section 26101, 26101A, or 26102, no amount authorized by subsection (a) may be used for obligation or expenditure on the Boston-to-Washington segment of the Northeast Corridor while that segment is receiving Federal funds for capital or operating expenses.'.

TITLE III--NATIONAL RAILROAD PASSENGER CORPORATION

SEC. 301. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM DEFINED.

(a) IN GENERAL- Section 24102 is amended--

(1) by striking paragraph (2);

(2) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively; and

(3) by inserting after paragraph (4) as so redesignated the following:

`(5) `national rail passenger transportation system' means--

`(A) the segment of the Northeast Corridor between Boston, Massachusetts and Washington, D.C.;

`(B) rail corridors that have been designated by the Secretary of Transportation as high-speed corridors, but only after they have been improved to permit operation of high-speed service;

`(C) long-distance routes of more than 750 miles between endpoints operated by Amtrak as of the date of enactment of the National Defense Rail Act; and

`(D) short-distance corridors or routes operated as of the date of enactment of the National Defense Rail Act, unless discontinued by Amtrak.'.

(b) AMTRAK ROUTES WITH STATE FUNDING-

(1) IN GENERAL- Chapter 247 is amended by inserting after section 27101 the following:

`Sec. 24702. Transportation requested by States, authorities, and other persons

`(a) CONTRACTS FOR TRANSPORTATION- Amtrak and a State, a regional or local authority, or another person may enter into a contract for Amtrak to operate an intercity rail service or route not included in the national rail passenger transportation system upon such terms as the parties thereto may agree.

`(b) DISCONTINUANCE- Upon termination of a contract entered into under this section, or the cessation of financial support under such a contract, Amtrak may discontinue such service or route, notwithstanding any other provision of law.'.

(2) CONFORMING AMENDMENT- The chapter analysis for chapter 247 is amended by inserting after the item relating to section 24701 the following:

`24702. Transportation requested by States, authorities, and other persons'.

(c) AMTRAK TO CONTINUE TO PROVIDE NON HIGH-SPEED SERVICES- Nothing in this Act is intended to preclude Amtrak from restoring, improving, or developing non-high-speed intercity passenger rail service.

SEC. 302. AMTRAK AUTHORIZATIONS.

(a) Repeal of Self-sufficiency Requirements.

(1) TITLE 49 AMENDMENTS- Chapter 241 is amended--

(A) by striking the last sentence of section 24101(d); and

(B) by striking the last sentence of section 24104(a).

(2) AMTRAK REFORM AND ACCOUNTABILITY ACT AMENDMENTS- Title II of the Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24101 nt) is amended by striking sections 204 and 205.

(3) COMMON STOCK REDEMPTION DATE- Section 415 of the Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304 nt) is amended by striking subsection (b).

(b) LEASE ARRANGEMENTS- Amtrak may obtain services from the Administrator of General Services, and the Administrator may provide services to Amtrak, under section 201(b) and 211(b) of the Federal Property and Administrative Service Act of 1949 (40 U.S.C. 481(b) and 491(b)) for each of fiscal years 2004 through 2008.

(c) FINANCIAL POWERS- Section 415(d) of the Amtrak Reform and Accountability Act of 1997 by adding at the end the following:

`(3) This section does not affect the applicability of section 3729 of title 31, United States Code, to claims made against Amtrak.'.

SEC. 303. ADDITIONAL AMTRAK AUTHORIZATIONS.

(a) EXCESS RRTA- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for each of fiscal years 2004 through 2008, an amount equal to the amount Amtrak must pay under section 3221 of the Internal Revenue Code of 1986 in fiscal years that is more than the amount needed for benefits for individuals who retire from Amtrak and for their beneficiaries.

(b) PRINCIPAL AND INTEREST PAYMENTS-

(1) PRINCIPAL ON DEBT SERVICE- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for retirement of principal on loans for capital equipment, or capital leases, the following amounts:

(A) For fiscal year 2004, $116,400,000.

(B) For fiscal year 2005, $109,400,000.

(C) For fiscal year 2006, $114,400,000.

(D) For fiscal year 2007, $202,800,000.

(E) For fiscal year 2008, $164,500,000.

(2) INTEREST ON DEBT- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for the payment of interest on loans for capital equipment, or capital leases, the following amounts:

(A) For fiscal year 2004, $163,300,000.

(B) For fiscal year 2005, $153,000,000.

(C) For fiscal year 2006, $148,400,000.

(D) For fiscal year 2007, $139,000,000.

(E) For fiscal year 2008, $130,000,000.

(c) ENVIRONMENTAL COMPLIANCE- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for each of fiscal years 2004 through 2008, $30,000,000, of which one-third shall be obligated or expended on the Northeast Corridor and two-thirds shall be obligated or expended outside the Northeast Corridor, in order to comply with environmental regulations.

(d) ACCESSIBILITY FOR ELDERLY AND PERSONS WITH DISABILITIES-

(1) IN GENERAL- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak, for each of fiscal years 2004 through 2008, $43,000,000 to assist in improving accessibility for the elderly and people with disabilities in Amtrak facilities and stations, including an initial assessment of the full set of accessibility needs across the national rail passenger transportation system, of which--

(A) $10,000,000 shall be obligated or expended on the Northeast Corridor; and

(B) $33,000,000 shall be obligated or expended outside the Northeast Corridor.

(2) STUDY OF COMPLIANCE REQUIREMENTS AT EXISTING INTERCITY RAIL STATIONS- Amtrak shall evaluate the improvements necessary to make all existing stations it serves readily accessible to and usable by individuals with disabilities, as required by section 242(e)(2) of the Americans with Disabilities Act of 1990 (42 U.S.C. 12162(e)(2)). The evaluation shall include the estimated cost of the improvements necessary, the identification of the responsible person (as defined in section 241(5) of that Act (42 U.S.C. 12161(5))), and the earliest practicable date when such improvements can be made. Amtrak shall submit the survey to the Senate Committee on Commerce, Science, and Transportation, the House of Representatives Committee on Transportation and Infrastructure, and the National Council on Disability by September 30, 2005, along with recommendations for funding the necessary improvements.

(e) REINVESTMENT OF NET REVENUES FROM NON-PASSENGER OPERATIONS- Amtrak shall apply any net revenues from non-passenger operations to the railroad's working capital for use in satisfying systemwide current liabilities. When Amtrak's working capital has improved to the point at which Amtrak's liquid assets are sufficient to satisfy projected short-term liabilities, Amtrak shall invest any excess net non-passenger revenues in high priority capital projects.

SEC. 304. NORTHEAST CORRIDOR AUTHORIZATIONS.

(a) IN GENERAL- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for each of fiscal years 2004 through 2008, the following amounts:

(1) $370,000,000 for capital backlog on infrastructure on the Northeast Corridor to bring infrastructure up to state-of-good-repair, including renewal of the South End electric traction system, improvements on bridges and tunnels, and interlocking and signal system renewal.

(2) $60,000,000 for capital backlog on fleet to bring existing fleet to a state-of-good-repair, including equipment replacement and upgrades necessary to meet current service commitments.

(3) $40,000,000 for capital backlog on stations and facilities, including improvements to the facility and platform at the existing Penn Station, and bringing maintenance-of-way facilities up to state-of-good-repair.

(4) $350,000,000 for ongoing capital infrastructure--

(A) to replace assets on a life-cycle basis;

(B) to ensure that a state-of-good-repair is maintained in order to meet safety and reliability standards; and

(C) to meet current service commitments.

(5) $40,000,000 for ongoing capital fleet investment to sustain regularly scheduled maintenance, including a 120-day cycle of preventive maintenance, and heavy overhauls on a 4-year schedule, with interior enhancements as needed.

(6) $30,000,000 for ongoing capital improvements to stations and facilities to provide for regular upgrades to stations to meet current service needs, and regular improvements to maintenance-of-equipment and maintenance-of-way facilities.

(7) $20,000,000 for ongoing technology upgrades of reservation, distribution, financial, and operations systems, including hardware, software, infrastructure, and communications.

(b) LIFE SAFETY NEEDS- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for fiscal year 2004:

(1) $677,000,000 for the 6 New York tunnels built in 1910 to provide ventilation, electrical, and fire safety technology upgrades, emergency communication and lighting systems, and emergency access and egress for passengers.

(2) $57,000,000 for the Baltimore & Potomac tunnel built in 1872 to provide adequate drainage, ventilation, communication, lighting, and passenger egress upgrades.

(3) $40,000,000 for the Washington, D.C. Union Station tunnels built in 1904 under the Supreme Court and House and Senate Office Buildings to improve ventilation, communication, lighting, and passenger egress upgrades.

(c) INFRASTRUCTURE UPGRADES- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for fiscal year 2004, $3,000,000 for the preliminary design of options for a new tunnel on a different alignment to augment the capacity of the existing Baltimore tunnels, such funds to remain available until expended.

(d) CORRIDOR GROWTH INVESTMENT- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for corridor growth investments in the Northeast Corridor--

(1) For fiscal year 2004, $200,000,000.

(2) For fiscal year 2005, $300,000,000.

(3) For fiscal year 2006, $400,000,000.

(4) For fiscal year 2007, $500,000,000.

(5) For fiscal year 2008, $600,000,000.

(e) FINANCIAL CONTRIBUTION FROM OTHER TUNNEL USERS- The Secretary shall, taking into account the need for the timely completion of all life safety portions of the tunnel projects described in subsection (b)--

(1) consider the extent to which rail carriers other than Amtrak use the tunnels;

(2) consider the feasibility of seeking a financial contribution from those other rail carriers toward the costs of the projects; and

(3) obtain financial contributions or commitments from such other rail carriers if feasible.

(f) AVAILABILITY OF FUNDS- Amounts appropriated pursuant to this section shall remain available until expended.

(g) REINVESTMENT OF NORTHEAST CORRIDOR NET OPERATING REVENUES- Amtrak shall invest any net revenue generated from core passenger operations in the Northeast Corridor in capital needs of the corridor until the backlog of capital improvements is completed under Amtrak's 20-year capital plan.

SEC. 305. LONG DISTANCE TRAINS.

(a) IN GENERAL- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for each of fiscal years 2004 through 2008, $360,000,000 for operating costs associated with long distance trains.

(b) CAPITAL BACKLOG AND UPGRADES- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for each of fiscal years 2004 through 2008, $70,000,000 to reduce the capital backlog and to bring its existing fleet to a state-of-good-repair, including equipment replacement and upgrades necessary to meet current service commitments.

(c) ONGOING CAPITAL INFRASTRUCTURE INVESTMENTS- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for each of fiscal years 2004 through 2008, $80,000,000 for ongoing capital infrastructure--

(1) to replace assets on a life-cycle basis;

(2) to ensure that a state-of-good-repair is maintained in order to meet safety and reliability standards;

(3) to meet current service commitments; and

(4) to provide funds for investment in partner railroads to operate passenger service at currently committed levels.

(d) CAPITAL FLEET NEEDS- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for each of fiscal years 2004 through 2008, $50,000,000 for ongoing capital fleet needs to sustain regularly scheduled maintenance, including a 120-day cycle of preventive maintenance, and heavy overhauls on a 4-year schedule, with interior enhancements as needed.

(e) CAPITAL STATIONS AND FACILITIES- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for each of fiscal years 2004 through 2008, $10,000,000 for ongoing capital stations and facilities needs to provide regular upgrades to stations to meet current service needs, and regular improvements to maintenance-of-way equipment and maintenance-of-way facilities.

(f) TECHNOLOGY NEEDS- There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for each of fiscal years 2004 through 2008, $10,000,000 for ongoing technology needs to upgrade reservation, distribution, financial, and operations systems, including hardware, software, infrastructure, and communications.

SEC. 306. SHORT DISTANCE TRAINS; STATE-SUPPORTED ROUTES.

There are authorized to be appropriated to the Secretary of Transportation for the use of Amtrak for each of fiscal years 2004 through 2008, for obligation and expenditure on routes outside the Northeast Corridor--

(1) $20,000,000 for capital backlog on infrastructure to bring infrastructure up to a state-of-good-repair, including improvements on bridges and tunnels that are approaching the end of their useful life and interlocking and signal system renewal;

(2) $10,000,000 for capital backlog on its fleet to bring Amtrak's existing fleet as of the date of enactment of this Act to a state-of-good-repair, including equipment replacement and upgrades necessary to meet current service commitments;

(3) $170,000,000 for ongoing capital infrastructure to replace assets on a life-cycle basis to ensure a state-of-good-repair is maintained in order to meet safety and reliability standards needed to deliver current service commitments, including investment in partner railroads to operate passenger service at currently committed levels;

(4) $40,000,000 for ongoing capital fleet needs to sustain regularly scheduled maintenance, including a 120-day cycle preventive maintenance schedule, and heavy overhauls on a 4-year schedule, with interior enhancements as needed;

(5) $10,000,000 for ongoing capital stations and facilities needs to provide regular upgrades to stations to meet current service needs, and regular improvements to maintenance-of-way equipment and maintenance-of-way facilities; and

(6) $20,000,000 for ongoing technology needs to upgrade of reservation, distribution, financial, and operations systems, including hardware, software, infrastructure and communications.

SEC. 307. RE-ESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY COMMITTEE.

(a) RE-ESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY COMMITTEE- The Secretary of Transportation shall re-establish the Northeast Corridor Safety Committee authorized by section 24905(b) of title 49, United States Code.

(b) TERMINATION DATE- Section 24905(b)(4) is amended by striking `January 1, 1999,' and inserting `January 1, 2008,'.

SEC. 308. ON-TIME PERFORMANCE.

Section 24308 is amended by adding at the end the following:

`(f) ON-TIME PERFORMANCE- If the on-time performance of any intercity passenger train averages less than 80 percent for any consecutive 3-month period, Amtrak may petition the Surface Transportation Board to investigate whether, and to what extent, delays are due to causes that could reasonably be addressed by a rail carrier over the tracks of which the intercity passenger train operates, or by a regional authority providing commuter service, if any. In carrying out such an investigation, the Surface Transportation Board shall obtain information from all parties involved and make recommendations regarding reasonable measures to improve the on-time performance of the train.'.

SEC. 309. AMTRAK BOARD OF DIRECTORS.

(a) IN GENERAL- Section 24302 is amended to read as follows:

`Sec. 24302. Board of directors

`(a) Composition and Terms-

`(1) The board of directors of Amtrak is composed of the following 9 directors, each of whom must be a citizen of the United States:

`(A) The President of Amtrak.

`(B) The Secretary of Transportation.

`(C) 7 individuals appointed by the President of the United States, by and with the advice and consent of the Senate, with an interest, experience, and qualifications in or directly related to rail transportation, including representatives of freight and passenger rail transportation, travel, hospitality, cruise line, and passenger air transportation businesses, consumers of passenger rail transportation, and State government.

`(2) An individual appointed under paragraph (1)(C) of this subsection serves for 5 years or until the individual's successor is appointed and qualified. Not more than 4 individuals appointed under paragraph (1)(C) may be members of the same political party.

`(3) The board shall elect a chairman and a vice chairman from among its membership. The vice chairman shall serve as chairman in the absence of the chairman.

`(4) The Secretary may be represented at board meetings by the Secretary's designee.

`(b) PAY AND EXPENSES- Each director not employed by the United States Government is entitled to $300 a day when performing board duties and powers. Each director is entitled to reimbursement for necessary travel, reasonable secretarial and professional staff support, and subsistence expenses incurred in attending board meetings.

`(c) VACANCIES- A vacancy on the board is filled in the same way as the original selection, except that an individual appointed by the President of the United States under subsection (a)(1)(C) of this section to fill a vacancy occurring before the end of the term for which the predecessor of that individual was appointed is appointed for the remainder of that term. A vacancy required to be filled by appointment under subsection (a)(1)(C) must be filled not later than 120 days after the vacancy occurs.

`(d) BYLAWS- The board may adopt and amend bylaws governing the operation of Amtrak. The bylaws shall be consistent with this part and the articles of incorporation.

`(e) CONFLICTS OF INTEREST- Subparts D, E, and F of part 2635 of title 5, Code of Federal Regulations, shall apply to members of the board of directors during their term of office in the same manner as if they were employees of an executive agency (as defined in section 105 of title 5, United States Code).'.

(b) CONFORMING AMENDMENT TO APPLY SAME STANDARD TO OFFICERS- Section 24303(c) is amended to read as follows:

`(c) CONFLICTS OF INTEREST- Subparts D, E, and F of part 2635 of title 5, Code of Federal Regulations, shall apply to officers when employed by Amtrak in the same manner as if they were employees of an executive agency (as defined in section 105 of title 5, United States Code).'.

(c) EFFECTIVE DATE FOR DIRECTORS' PROVISION- The amendment made by subsection (a) shall take effect on October 1, 2003. The members of the Amtrak Reform Board may continue to serve until 3 directors appointed by the President under section 24302(a) of title 49, United States Code, as amended by subsection (a), have qualified for office.

SEC. 310. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR AMTRAK OPERATIONS BY INDEPENDENT AUDITOR.

(a) IN GENERAL- The Inspector General of the Department of Transportation shall employ an independent financial consultant--

(1) to assess Amtrak's financial accounting and reporting system and practices;

(2) to design and assist Amtrak in implementing a modern financial accounting and reporting system, on the basis of the assessment, that will produce accurate and timely financial information in sufficient detail--

(A) to enable Amtrak to assign revenues and expenses appropriately to each of its lines of business and to each major activity within each line of business activity, including train operations, equipment maintenance, ticketing, and reservations;

(B) to aggregate expenses and revenues related to infrastructure and distinguish them from expenses and revenues related to rail operations; and

(C) to provide ticketing and reservation information on a real-time basis.

(b) VERIFICATION OF SYSTEM; REPORT- The Inspector General of the Department of Transportation shall review the accounting system designed and implemented under subsection (a) to ensure that it accomplishes the purposes for which it is intended. The Inspector General shall report his findings and conclusions, together with any recommendations, to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure.

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Transportation $2,500,000 for fiscal year 2004 to carry out subsection (a), such sums to remain available until expended.

SEC. 311. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

(a) Development of 5-Year Financial Plan- The Amtrak board of directors shall submit an annual budget for Amtrak, and a 5-year financial plan for the fiscal year to which that budget relates and the subsequent 4 years, prepared in accordance with this section, to the Secretary of Transportation and the Inspector General of the Department of Transportation no later than--

(1) the first day of each fiscal year beginning after the date of enactment of this Act; or

(2) the date that is 60 days after the date of enactment of an appropriation Act for the fiscal year, if later.

(b) Contents of 5-Year Financial Plan- The 5-year financial plan for Amtrak shall include, at a minimum--

(1) all projected revenues and expenditures for Amtrak, including governmental funding sources;

(2) projected ridership levels for all Amtrak passenger operations;

(3) revenue and expenditure forecasts for non-passenger operations;

(4) capital funding requirements and expenditures necessary to maintain passenger service which will accommodate predicted ridership levels and predicted sources of capital funding;

(5) operational funding needs, if any, to maintain current and projected levels of passenger service, including state-supported routes and predicted funding sources;

(6) projected capital and operating requirements, ridership, and revenue for any new passenger service operations or service expansions;

(7) an assessment of the continuing financial stability of Amtrak, as indicated by factors such as: the ability of the federal government to adequately meet capital and operating requirements, Amtrak's access to long-term and short-term capital markets, Amtrak's ability to efficiently manage its workforce, and Amtrak's ability to effectively provide passenger train service;

(8) lump sum expenditures of $10 million or more and sources of funding;

(9) estimates of long-term and short-term debt and associated principle and interest payments (both current and anticipated);

(10) annual cash flow forecasts; and

(11) a statement describing methods of estimation and significant assumptions.

(c) STANDARDS TO PROMOTE FINANCIAL STABILITY- In meeting the requirements of subsection (b) with respect to a 5-year financial plan, Amtrak shall--

(1) apply sound budgetary practices, including reducing costs and other expenditures, improving productivity, increasing revenues, or combinations of such practices; and

(2) use the categories specified in the financial accounting and reporting system developed under section 310 when preparing its 5-year financial plan.

(d) ASSESSMENT BY DOT INSPECTOR GENERAL-

(1) IN GENERAL- The Inspector General of the Department of Transportation shall assess the 5-year financial plans prepared by Amtrak under this section to determine whether they meet the requirements of subsection (b), and may suggest revisions to any components thereof that do not meet those requirements.

(2) ASSESSMENT TO BE FURNISHED TO THE CONGRESS- The Inspector General shall furnish to the House of Representatives Committee on Appropriations, the Senate Committee on Appropriations, the House Committee on Transportation and Infrastructure, and the Senate Committee on Commerce, Science, and Transportation--

(A) an assessment of the annual budget within 90 days after receiving it from Amtrak; and

(B) an assessment of the remaining 4 years of the 5-year financial plan within 180 days after receiving it from Amtrak.

SEC. 312. REVISED REPORTING METHODOLOGY REQUIRED.

Within 90 days after the date of enactment of this Act, Amtrak, in consultation with the Comptroller General, shall develop a revised methodology to be used in preparing the annual operations report required by section 24315(a) of title 49, United States Code, beginning with the report on operations for fiscal year 2002. The new report methodology shall specifically exclude non-core profits in calculating the performance of Amtrak's trains.

SEC. 313. APPROPRIATED AMOUNTS TO BE SPENT PROPORTIONATELY.

If for any fiscal year the sum of the amounts appropriated to the Secretary of Transportation for the use of Amtrak is less than the sum of the amounts authorized by this title for that fiscal year, then Amtrak shall--

(1) first obligate amounts appropriated pursuant to the authorization in section 303(a); and

(2) then allocate its obligation and expenditure of the remainder of the amounts appropriated for that fiscal year pursuant to this title (except amounts authorized by section 304(b), (c), and (d)) among the segments of the system in the same proportion as the authorizations were allocated among those segments by this title.

SEC. 314. INDEPENDENT AUDITOR TO ESTABLISH CRITERIA FOR AMTRAK ROUTE AND SERVICE PLANNING DECISIONS.

(a) INSPECTOR GENERAL TO HIRE CONSULTANT- The Inspector General of the Department of Transportation shall--

(1) execute a contract to obtain the services of an independent auditor or consultant to define and list past Amtrak criteria for Amtrak service changes, and to establish objective criteria for Amtrak service changes, including the establishment of new routes, the elimination of existing routes, and the contraction or expansion of existing services;

(2) review the criteria developed under the contract; and

(3) if the Inspector General approves the criteria, transmit them to the Amtrak board of directors.

(b) INCORPORATION OF CRITERIA BY AMTRAK- The Amtrak board of directors shall incorporate the criteria in--

(1) its route and service planning and decision-making process; and

(2) its capital plans and budgets developed in compliance with section 311 of this Act.

(c) NOTIFICATION OF CONGRESS WHERE NOT COMPLYING WITH CRITERIA- The Amtrak board of directors shall--

(1) notify the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure not less than 30 days before the implementation date of any decision to establish a new route, terminate an existing route, or effect any other major change in service that is inconsistent with the criteria incorporated under subsection (b); and

(2) explain its decision not to follow the criteria.

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be made available to the Inspector General, out of any amounts appropriated to Amtrak pursuant to the authority of this Act and not otherwise obligated or expended, such sums as may be necessary to carry out this section.

TITLE IV--MISCELLANEOUS

SEC. 401. REHABILITATION, IMPROVEMENT, AND SECURITY FINANCING.

(a) DEFINITIONS- Section 102(7) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 802(7)) is amended to read as follows:

`(7) `railroad' has the meaning given that term in section 20102 of title 49, United States Code; and'.

(b) GENERAL AUTHORITY- Section 502 of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822) is amended--

(1) by striking `Secretary may provide direct loans and loan guarantees to State and local governments,' in subsection (a) and inserting `Secretary shall provide direct loans and loan guarantees to State and local governments, interstate compacts entered into under section 410 of the Amtrak Reform and Accountability Act of 1997 (49 U.S.C 24101 nt),';

(2) by striking `or' in subsection (b)(1)(B);

(3) by redesignating subparagraph (C) of subsection (b)(1) as subparagraph (D); and

(4) by inserting after subparagraph (B) of subsection (b)(1) the following:

`(C) to acquire, improve, or rehabilitate rail safety and security equipment and facilities; or'.

(c) EXTENT OF AUTHORITY- Section 502(d) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(d)) is amended--

(1) by striking `$3,500,000,000' and inserting `$35,000,000,000';

(2) by striking `$1,000,000,000' and inserting `$7,000,000,000'; and

(3) by adding at the end the following new sentence: `The Secretary shall not establish any limit on the proportion of the unused amount authorized under this subsection that may be used for 1 loan or loan guarantee.'.

(d) COHORTS OF LOANS- Section 502(f) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(f)) is amended--

(1) in paragraph (2)--

(A) by striking `and' at the end of subparagraph (D);

(B) by redesignating subparagraph (E) as subparagraph (F); and

(C) by adding after subparagraph (D) the following new subparagraph:

`(E) the size and characteristics of the cohort of which the loan or loan guarantee is a member; and'; and

(2) by adding at the end of paragraph (4) the following: `A cohort may include loans and loan guarantees. The Secretary shall not establish any limit on the proportion of a cohort that may be used for 1 loan or loan guarantee.'.

(e) CONDITIONS OF ASSISTANCE- Section 502 of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822) is amended--

(1) by striking `offered;' in subsection (f)(2)(A) and inserting `offered, if any;';

(2) by inserting `(1)' before `The Secretary' in subsection (h) and redesignating paragraphs (1), (2), and (3) of that subsection as subparagraphs (A), (B), and (C); and

(3) by adding at the end of subsection (h) the following:

`(2) The Secretary shall not require an applicant for a direct loan or loan guarantee under this section to provide collateral.

`(3) The Secretary shall not require that an applicant for a direct loan or loan guarantee under this section have previously sought the financial assistance requested from another source.

`(4) The Secretary shall require recipients of direct loans or loan guarantees under this section to apply the standards of section 22301(b) and (c) of title 49, United States Code, to their projects.'.

(f) TIME LIMIT FOR APPROVAL OR DISAPPROVAL- Section 502 of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822) is amended by adding at the end the following:

`(i) TIME LIMIT FOR APPROVAL OR DISAPPROVAL- Not later than 180 days after receiving a complete application for a direct loan or loan guarantee under this section, the Secretary shall approve or disapprove the application.'.

(g) FEES AND CHARGES- Section 503 of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 823) is amended--

(1) by adding at the end of subsection (k) the following: `Funds received by the Secretary under the preceding sentence shall be credited to the appropriation from which the expenses of making such appraisals, determinations, and findings were incurred.'; and

(2) by adding at the end the following new subsection:

`(m) FEES AND CHARGES- Except as provided in this title, the Secretary may not assess any fees, including user fees, or charges in connection with a direct loan or loan guarantee provided under section 502.'.

(h) SUBSTANTIVE CRITERIA AND STANDARDS- Not later than 30 days after the date of the enactment of this Act, the Secretary of Transportation shall publish in the Federal Register and post on the Department of Transportation website the substantive criteria and standards used by the Secretary to determine whether to approve or disapprove applications submitted under section 502 of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822).

(i) OPERATORS DEEMED RAIL CARRIERS; LOANS AND LOAN GUARANTEES FOR NON-RAILROAD ENTITIES- Section 502 of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822), as amended by subsection (f), is amended by adding at the end the following:

`(j) OPERATORS DEEMED RAIL CARRIERS- A person that conducts rail operations funded or otherwise receiving assistance under this section is deemed to be a rail carrier for purposes of part A of subtitle IV of title 49, United States Code, when so operating or performing such services.

`(k) LOAN AND LOAN GUARANTEES FOR NON-RAILROAD ENTITIES- Nothwithstanding any other provision of law, entities other than rail companies shall be eligible for loans and loan guarantees under this section.'.

SEC. 402. RAIL PASSENGER COOPERATIVE RESEARCH PROGRAM.

(a) IN GENERAL- Chapter 249 is amended by adding at the end the following:

`Sec. 24910. Passenger rail cooperative research program

`(a) IN GENERAL- The Secretary shall establish and carry out a rail passenger cooperative research program. The program shall--

`(1) address, among other matters, intercity rail passenger services, including existing rail passenger technologies and speeds, incrementally enhanced rail systems and infrastructure, and new high-speed wheel-on-rail systems;

`(2) give consideration to research on commuter rail, regional rail, freight rail, and other modes of rail transportation that may affect rail passenger transportation due to the interconnectedness of the rail passenger network with other rail transportation services; and

`(3) give consideration to regional concerns regarding rail passenger transportation, including meeting research needs common to designated high-speed corridors, long-distance rail services, and regional intercity rail corridors, projects, and entities.

`(b) CONTENTS- The program to be carried out under this section shall include research designed--

`(1) to identify the unique aspects and attributes of rail passenger service;

`(2) to develop more accurate models for evaluating the indirect effects of rail passenger service, including the effects on highway and airport and airway congestion, environmental quality, and energy consumption;

`(3) to develop a better understanding of modal choice as it affects rail passenger transportation, including development of better models to predict ridership;

`(4) to recommend priorities for technology demonstration and development;

`(5) to meet additional priorities as determined by the advisory board established under subsection (c), including any recommendations made by the National Research Council;

`(6) to explore improvements in management, financing, and institutional structures;

`(7) to address rail capacity constraints that affect passenger rail service through a wide variety of options, ranging from operating improvements to dedicated new infrastructure, taking into account the impact of such options on freight and commuter rail operations; and

`(8) to improve maintenance, operations, customer service, or other aspects of existing intercity rail passenger service existing in 2003.

`(c) ADVISORY BOARD-

`(1) ESTABLISHMENT- In consultation with the heads of appropriate Federal departments and agencies, the Secretary shall establish an advisory board to recommend research, technology, and technology transfer activities related to rail passenger transportation.

`(2) MEMBERSHIP- The advisory board shall include--

`(A) representatives of State transportation agencies;

`(B) transportation and environmental economists, scientists, and engineers; and

`(C) representatives of Amtrak, the Alaska Railroad, transit operating agencies, intercity rail passenger agencies, railway labor organizations, and environmental organizations.

`(d) NATIONAL ACADEMY OF SCIENCES- The Secretary may make grants to, and enter into cooperative agreements with, the National Academy of Sciences to carry out such activities relating to the research, technology, and technology transfer activities described in subsection (b) as the Secretary deems appropriate.'.

(b) CONFORMING AMENDMENT- The chapter analysis for chapter 249 is amended by adding at the end the following:

`24910. Passenger rail cooperative research program'.

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Transportation $5,000,000 for each of fiscal years 2004 through 2008, to carry out section 24910(d) of title 49, United States Code.

SEC. 403. CONFORMING AMENDMENTS TO TITLE 49 REFLECTING ICC TERMINATION ACT.

(a) Section 333- Section 333 is amended--

(1) by striking `Interstate Commerce Commission' each place it appears and inserting `Surface Transportation Board'; and

(2) by striking `Commission' in subsection (e) and inserting `Board'.

(b) Section 24307- Section 24307(b)(3) is amended by striking `Interstate Commerce Commission' and inserting `Surface Transportation Board'.

(c) Section 24308- Section 24308 is amended--

(1) by striking `Interstate Commerce Commission' in subsection (a)(2)(A) and inserting `Surface Transportation Board'; and

(2) by striking `Commission' each place it appears in subsections (a), (b), and (e) and inserting `Board'.

(d) Section 24311- Section 24311 is amended--

(1) by striking `Interstate Commerce Commission' in subsection (c)(1) and inserting `Surface Transportation Board'; and

(2) by striking `Commission' each place it appears in subsection (c) and inserting `Board'.

(e) Section 24902- Section 24902 is amended--

(1) by striking `Interstate Commerce Commission' in subsections (g)(2) and (g)(3) and inserting `Surface Transportation Board'; and

(2) by striking `Commission' each place it appears in subsections (g)(2) and (g)(3) and inserting `Board'.

(f) Section 24904- Section 24904 is amended--

(1) by striking `Interstate Commerce Commission' in subsection (c)(2) and inserting `Surface Transportation Board'; and

(2) by striking `Commission' each place it appears in subsection (c) and inserting `Board'.

SEC. 404. APPLICABILITY OF REVERSION TO ALASKA RAILROAD RIGHT-OF-WAY PROPERTY.

Section 610(b) of the Alaska Railroad Transfer Act of 1982 (45 U.S.C. 1209(b)) is amended--

(1) by inserting `(1)' after `DISCONTINUANCE- ';

(2) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; and

(3) by adding at the end the following new paragraph:

`(2)(A) The State-owned railroad may convey all right, title, and interest of the State in any land within the right-of-way to a third party in exchange for other land that, in substitution for the land conveyed, is to be utilized as part of the right-of-way if the continuity of the right-of-way corridor for transportation, communications, and transmission purposes is provided by such use of the substituted land.

`(B) The provisions of this section that require reversion shall apply to the substituted land, as of the effective date of the exchange of that land in a transaction authorized by subparagraph (A), as fully as if the substituted land had been rail properties of the Alaska Railroad as of January 13, 1983.

`(C) Upon the conveyance of land in a transaction authorized by subparagraph (A), any reversionary interest in the land under this section shall terminate.'.

END