108th CONGRESS
2d Session
S. 2306
To reauthorize, restructure, and reform the intercity passenger rail
service program.
IN THE SENATE OF THE UNITED STATES
April 8, 2004
Mr. MCCAIN (for himself and Mr. SUNUNU) introduced the following bill; which
was read twice and referred to the Committee on Commerce, Science, and Transportation
A BILL
To reauthorize, restructure, and reform the intercity passenger rail
service program.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Rail Passenger Service Restructuring, Reauthorization,
and Development Act'.
SEC. 2. TABLE OF CONTENTS; AMENDMENT OF TITLE 49, UNITED STATES CODE.
(a) TABLE OF CONTENTS- The table of contents for this Act is as follows:
Sec. 2. Table of contents; amendment of title 49, United States Code.
TITLE I--NETWORK RESTRUCTURING AND COST-SHARING
Subtitle A--Restructuring
Sec. 101. Findings, purpose, and goals.
Sec. 102. Passenger rail service restructuring.
Sec. 104. Operating grants for corridor routes.
Sec. 105. Operating grants for long distance routes.
Sec. 106. Long distance route restructuring commission.
Sec. 107. Criteria for restructuring.
Sec. 108. Implementation of restructuring plan.
Sec. 109. Redemption of common stock.
Sec. 110. Retirement of preferred stock; transfer of assets.
Sec. 111. Real estate and asset sales; other.
Subtitle B--Northeast Corridor
Sec. 131. Interstate compact for the Northeast Corridor.
Sec. 132. Shut-down of commuter or freight operations.
Sec. 133. Capital grants for the Northeast Corridor.
Subtitle C--Related Matters
Sec. 151. Fair and open competition.
Sec. 152. Access to other railroads.
Sec. 153. Limitations on rail passenger transportation liability.
Sec. 154. Train operations insurance pool.
Sec. 155. Collective bargaining arrangements.
TITLE II--RAIL DEVELOPMENT
Sec. 201. Capital assistance for intercity passenger rail service.
TITLE III--REFORMS
Sec. 301. Management of secured debt.
Sec. 302. Employee transition assistance.
Sec. 303. Termination of authority for GSA to provide services to Amtrak.
Sec. 304. Amtrak reform board of directors.
Sec. 305. Limitations on availability of grants.
Sec. 306. Repeal of obsolete and executed provisions of law.
Sec. 307. Establishment of financial accounting system.
Sec. 308. Restructuring of long-term debt and capital leases.
Sec. 309. Authorization of appropriations.
(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.
TITLE I--NETWORK RESTRUCTURING AND COST-SHARING
Subtitle A--Restructuring
SEC. 101. FINDINGS, PURPOSE, AND GOALS.
Section 24101 is amended to read as follows:
`Sec. 24101. Findings, purpose, and goals
`(1) It is in the public interest of the United States to encourage and
promote the development of various modes of transportation and transportation
infrastructure to efficiently maximize the mobility of passengers and goods.
`(2) Despite Federal subsidies of nearly $27 billion over the past 34 years,
intercity rail passenger service still accounts for less than 1 percent
of all intercity travel.
`(3) Intercity rail passenger service can be competitive with other modes
of transportation and achieve a significant share of the travel market in
short-distance corridors connecting metropolitan areas.
`(4) Rail passenger transportation can help alleviate overcrowding of airways
and airports, and can provide needed intermodal connections to airports,
bus terminals, and mass transit services.
`(5) Corridor routes account for approximately 85 percent of Amtrak's ridership
but only one-third of Amtrak's operating losses, excluding depreciation.
`(6) A number of Amtrak's long-distance routes may be more efficiently operated
and attract higher ridership as connected corridors.
`(7) Long-distance routes that cannot be restructured as connected corridors,
do not receive State financial support, cannot be operated on a for-profit
basis, or are not an essential link to the rest of the intercity passenger
rail network, should be consolidated or discontinued.
`(8) Some States with corridor services provide significant financial support
for such services, while other States with routes and all States with long-distance
routes contribute nothing for such services. More equitable cost-sharing
is needed to justify Federal investment in intercity rail passenger service.
`(9) The need to invest taxpayer dollars in intercity rail passenger service
demands that fair and open competition be permitted for the provision of
such services to ensure that service is provided in the most efficient manner
without jeopardizing the safety of such operations.
`(10) A greater degree of cooperation is necessary among intercity passenger
service operators, freight railroads, State, regional, and local governments,
the private sector, labor organizations, and suppliers of services and equipment
to achieve the performance sufficient to justify the expenditure of additional
public money on intercity rail passenger service.
`(11) Transportation services provided by the private freight railroads
are vital to the economy and national defense and should not be disadvantaged
by the operation of intercity passenger rail service over their rights-of-way.
`(12) The Northeast Corridor is a valuable resource of the United States
used by intercity and commuter rail passenger transportation and freight
transportation and should be restored to a state of good repair.
`(b) PURPOSE- The purpose of this part is to assist in the preservation and
development of conventional and high-speed intercity rail passenger services
where such services can play an important role in facilitating passenger mobility
in the United States.
`(c) GOALS- The goals of this part are--
`(1) to move toward a national network of interconnected short-distance
passenger rail corridor services;
`(2) to return the Northeast Corridor to a state of good repair;
`(3) to establish a framework for the development of new conventional and
high-speed rail services;
`(4) to allow for train services to be operated under contract to a State
or group of States, with the operator of the service selected by the State
or group of States;
`(5) to establish equitable cost-sharing for capital expenses and operating
losses with the States; and
`(6) to encourage greater participation in the provision of intercity rail
passenger services by the private sector.'.
SEC. 102. PASSENGER RAIL SERVICE RESTRUCTURING.
(a) IN GENERAL- Chapter 243 is amended by inserting before section 24301 the
following:
`Sec. 24300. Restructuring mandate
`(a) IN GENERAL- Within 6 months after the date of enactment of the Rail Passenger
Service Restructuring, Reauthorization, and Development Act, the Amtrak Reform
Board shall restructure Amtrak as 2 independent entities, as follows:
`(1) THE NATIONAL RAILROAD PASSENGER CORPORATION- One entity shall be the
National Railroad Passenger Corporation, otherwise known as Amtrak, that
shall provide overall supervision of the restructuring of the intercity
passenger rail program.
`(2) THE AMERICAN PASSENGER RAILWAY CORPORATION- The other entity shall
be a for profit corporation, to be known as the American Passenger Railway
Corporation, that shall be responsible for conducting the passenger operations,
infrastructure maintenance, and related services, including operation of
reservation centers and ownership and maintenance of rolling stock.
`(b) ARTICLES OF INCORPORATION AND OTHER DOCUMENTATION- Within 6 months after
the date of enactment of the Rail Passenger Service Restructuring, Reauthorization,
and Development Act, the Amtrak Reform Board shall--
`(1) file appropriate articles of incorporation under State law for the
American Passenger Railway Corporation; and
`(2) amend the articles of incorporation and bylaws of the National Railroad
Passenger Corporation to reflect its changed functions and responsibilities.
`(c) ROLES AND RESPONSIBILITIES OF THE AMERICAN PASSENGER RAILWAY CORPORATION-
`(1) RAILROAD ACTIVITIES- Consistent with the business corporation law of
the State of incorporation of the American Passenger Railway Corporation,
the Corporation shall be qualified to undertake railroad activities of an
operational or infrastructure nature.
`(2) RAIL OPERATIONS AND RELATED FUNCTIONS- The American Passenger Railway
Corporation--
`(A) shall have the exclusive right, until October 1, 2005, to continue
to provide the intercity passenger services provided by Amtrak on the
date of enactment of the Rail Passenger Service Restructuring, Reauthorization,
and Development Act;
`(B) shall, beginning October 1, 2005, operate intercity passenger service
only on a contractual basis under negotiated terms and conditions;
`(C) shall operate a national reservations system; and
`(D) subject to fulfillment of its contractual obligations, shall have
the exclusive right, until management of the mainline of the Northeast
Corridor between Boston, Massachusetts, and Washington, District of Columbia,
is transferred to the interstate compact created under section 131 or
to another entity, to provide the train operations, dispatching, maintenance,
and infrastructure services that are being provided by Amtrak on the date
of enactment of the Rail Passenger Service Restructuring, Reauthorization,
and Development Act, but may provide such services beginning October 1,
2005, only on a contractual basis with the National Railroad Passenger
Corporation under negotiated terms and conditions.
`(3) STATUS OF CORPORATION-
`(A) The American Passenger Railway Corporation--
`(i) is a railroad carrier under section 20102(2) and chapters 261 and
281 of this title;
`(ii) shall be operated and managed as a for-profit corporation; and
`(iii) is not a department, agency, or instrumentality of the United
States Government nor a Government corporation (as defined in section
103 of title 5).
`(B) Chapter 105 of this title does not apply to the American Passenger
Railway Corporation, except that laws and regulations governing safety,
employee representation for collective bargaining purposes, the handling
of disputes between carriers and employees, employee retirement, annuity,
and unemployment systems, and other dealings with employees apply to the
American Passenger Railway Corporation to the same extent as they applied
to Amtrak before the restructuring required by this section.
`(C) Subsections (c), (d), and (f) through (l) of section 24301 of this
title shall apply to the Corporation.
`(4) CHIEF EXECUTIVE OFFICER- Subject to further action by the board of
directors of the American Passenger Railway Corporation, the individual
who, on the date of enactment of the Rail Passenger Service Restructuring,
Reauthorization, and Development Act, is President of Amtrak shall be offered
the position of chief executive officer of the American Passenger Railway
Corporation as soon as practicable after the corporation is established.
`(5) ISSUANCE OF STOCK AND ASSUMPTION OF DEBT- The Corporation may not issue
stock or incur debt without the express approval of the Secretary of Transportation.
`Sec. 24300A. American Passenger Railway Corporation board of directors
`(1) MEMBERSHIP- The American Passenger Railway Corporation shall be governed
by a board of directors consisting of 7 members appointed by the President,
by and with the advice and consent of the Senate.
`(A) IN GENERAL- Members of the board shall be chosen from among individuals
who have technical qualifications, professional standing, and demonstrated
expertise in the field of transportation, corporate management, or financial
management.
`(B) FEDERAL EMPLOYEES DISQUALIFIED- No individual who is an officer or
employee of the United States may serve as a member of the board.
`(3) TERM OF OFFICE- Each member shall serve for a term of 5 years. An individual
may not serve for more than 2 terms.
`(4) QUORUM- A majority of the board members who have been lawfully appointed
and qualified at any moment shall constitute a quorum for the conduct of
business.
`(b) BYLAWS- The board of directors shall adopt bylaws governing the corporation
consistent with the provisions of this section and its articles of incorporation,
and may amend, repeal, and otherwise modify the bylaws from time to time as
necessary or appropriate.
`(c) TRANSITION BOARD MEMBERS- Individuals who are serving as members of the
Amtrak Reform Board on the day before the date on which the American Passenger
Railway Corporation is established, with the exception of the Secretary of
Transportation, shall serve as members of the board of directors of the American
Passenger Railway Corporation until 4 members of that board have been appointed
and qualified.
`Sec. 24300B. National Railroad Passenger Corporation board after restructuring
`(a) IN GENERAL- After the American Passenger Railway Corporation is established,
the Reform Board established under section 24302(a) shall be dissolved, and
the National Railroad Passenger Corporation shall be governed by a board of
directors consisting of--
`(1) the Secretary of Transportation;
`(2) the Federal Railroad Administrator or another officer of the United
States within the Department of Transportation compensated under the Executive
Schedule under title 5, United States Code, who is designated by the Secretary;
and
`(3) the Federal Transit Administrator or another officer of the United
States within the Department of Transportation compensated under the Executive
Schedule under title 5, who is designated by the Secretary.
`(b) Roles and Responsibilities-
`(1) SUPERVISION AND MANAGEMENT- After the board of directors described
in subsection (a) takes office, the National Railroad Passenger Corporation
shall--
`(A) provide overall supervision of the restructuring of the intercity
passenger rail program;
`(B) manage residual Amtrak responsibilities; and
`(C) retain and manage Amtrak's legal rights, including its legal right
of access to other railroads, and ownership of Amtrak's real property,
until that property is transferred to the Secretary of Transportation
under section 110 of the Rail Passenger Service Restructuring, Reauthorization,
and Development Act.
`(2) CONTRACTS FOR SERVICE- The National Railroad Passenger Corporation
shall, by contract, permit an operator to provide intercity passenger rail
service over any route operated by Amtrak on the date prior to the date
the restructuring required by section 24300 becomes effective, at the frequencies
in effect on that date, on its behalf and to use its right of access to
any segment of rail line owned by another rail carrier needed for the operation
of that train. The operator may be the American Passenger Railway Corporation
or another operator, but there shall be no more than 1 intercity passenger
rail operator at a time over any segment of rail line owned by another rail
carrier, except in terminal areas as determined by the Secretary or as may
otherwise be provided by agreement among the National Railroad Passenger
Corporation, the operators, and the owner of the rail line.
`(A) IN GENERAL- The National Railroad Passenger Corporation shall retain
all legal rights pertaining to the name `Amtrak,' and may, at its option,
license or otherwise make the name `Amtrak' commercially available in
connection with intercity passenger rail and related services.
`(B) USE BY AMERICAN PASSENGER RAILWAY CORPORATION- Amtrak shall by contract,
permit the American Passenger Railway Corporation to market its services
under the Amtrak name.
`(4) AMTRAK PERSONNEL- All Amtrak employees shall become American Passenger
Railway Corporation employees unless retained by the National Railroad Passenger
Corporation. The American Passenger Railway Corporation shall succeed to
the collective bargaining agreements in effect between Amtrak and labor
organizations that are in
effect on the day before the date on which that Corporation is established.
An employee who elects employment with National Railroad Passenger Corporation
shall become an employee of that Corporation, with only such rights regarding
pay and benefits as that Corporation shall determine.
`(5) FREIGHT AND COMMUTER OPERATIONS- The National Railroad Passenger Corporation
shall ensure that the implementation of the restructuring required by section
24300 gives due consideration to the needs of freight and commuter operations
that, as of the date of enactment of the Rail Passenger Service Restructuring,
Reauthorization, and Development Act, operate on the Northeast Corridor
using Amtrak rights-of-way.
`(6) ROLLING STOCK- The National Railroad Passenger Corporation shall set
the terms under which the American Passenger Railway Corporation must make
available to any replacement operator the legacy equipment associated with
any intercity passenger rail service provided as of the date of the restructuring
required by section 24300.'.
(b) SPINNING-OFF OF RESERVATIONS SYSTEM- Not later than 2 years after the
date of enactment of the Rail Passenger Service Restructuring, Reauthorization,
and Development Act, the Inspector General of the Department of Transportation
shall submit to the Secretary of Transportation, the Senate Committee on Commerce,
Science, and Transportation, and the House of Representatives Committee on
Transportation and Infrastructure recommendations on the feasibility, advantages,
and disadvantages of spinning off the national reservations system as a private
for-profit entity.
(c) CONFORMING AMENDMENT- The chapter analysis for chapter 243 is amended
by inserting the following after the item relating to section 24309:
`24300. Restructuring mandate.
`24300A. American Passenger Railway Corporation board of directors.
`24300B. Amtrak board after restructuring.'.
SEC. 103. DEFINITIONS.
Section 24102 is amended--
(1) by striking paragraph (2) and redesignating paragraphs (3) through (9)
as paragraphs (2) through (8), respectively;
(2) by redesignating paragraphs (3) through (8), as redesignated, as paragraphs
(4) through (9), respectively, and inserting after paragraph (2) the following:
`(3) `corridor route' means--
`(A) a train route operated by Amtrak with a route length of 750 miles
or less as of January 1, 2004; or
`(B) a new conventional or high-speed route eligible for funding under
chapter 244 of this title.';
(3) by redesignating paragraphs (6) through (9), as redesignated, as paragraphs
(8) through (11), respectively, and inserting after paragraph (5) the following:
`(6) `long distance route' means a train route operated by Amtrak with a
route length greater than 750 miles as of January 1, 2004.
`(7) `legacy equipment' means the rolling stock required to provide intercity
passenger rail service owned or leased by Amtrak on the day prior to the
date on which the restructuring required by section 24300 is completed (as
such date is determined by the Secretary).'.
SEC. 104. OPERATING GRANTS FOR CORRIDOR ROUTES.
(a) IN GENERAL- Chapter 243 is amended by adding at the end the following:
`Sec. 24316. Operating grants for corridor routes
`(1) OPERATING GRANT AUTHORITY- Beginning on October 1, 2005, the Secretary
of Transportation may make grants to States for operating assistance under
the authority of this section, and not under any other provision of law,
to reimburse operators of the corridor routes operated by Amtrak on the
day before the date on which the restructuring required by section 24300
is completed (as determined by the Secretary) for a portion of the operating
subsidies required to operate those routes with the same train frequencies.
`(2) CONDITIONS- A grant under this section shall be subject to the terms,
conditions, requirements, and provisions the Secretary decides are necessary
or appropriate for the purposes of this section, including limitations on
what operating expenses are eligible for reimbursement.
`(b) Federal Share of Operating Losses-
`(1) REIMBURSABLE AMOUNT- A grant to a State under this section for any
fiscal year may not exceed an amount equal to the lower of--
`(A) the applicable percentage of the Federal operating subsidy for that
fiscal year; or
`(B) the percentage of the operating subsidy for a route not borne by
a State during the last fiscal year ending before the date of enactment
of the Rail Passenger Service Restructuring, Reauthorization, and Development
Act.
`(2) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the applicable
percentage of the operating subsidy for a fiscal year is--
`(A) 70 percent for fiscal year 2006;
`(B) 60 percent for fiscal year 2007;
`(C) 50 percent for fiscal year 2008;
`(D) 40 percent for fiscal year 2009; and
`(E) 30 percent for fiscal year 2010.
`(c) Determination of Expenses Eligible for Reimbursement-
`(1) ANNUAL DETERMINATION OF SUBSIDY- On an annual basis, the Inspector
General for the Department of Transportation shall analyze and advise the
Secretary of Transportation as to the operating subsidy required on each
corridor route operated by the American Passenger Railway Corporation under
contract with a State without competitive bid. The operating loss on such
routes shall--
`(A) reflect the fully allocated costs of operating the route, including
an appropriate share of overhead expenses, including general and administrative
expenses; and
`(B) exclude depreciation and interest expense on long-term debt.
`(2) AGGREGATION OF NORTHEAST CORRIDOR PROFITS AND LOSSES- Operating profits
and losses on corridor routes operated exclusively on the mainline of the
Northeast Corridor extending from Washington, D.C. to Boston, MA may be
aggregated for purposes of determining the operating subsidy required on
the routes.
`(3) DETERMINATION WITH COMPETITIVE BIDDING- Expenses eligible for Federal
support pursuant to paragraph (b)(2) for reimbursement for a corridor route
that has been competitively bid shall consist of the operating subsidy agreed
upon by the State, group of States, or other entity and the operator.
`(d) EXCEPTION TO DATE COST-SHARING REQUIRED- For any State whose legislature
has not convened in regular session after the date of enactment of the Rail
Passenger Service Restructuring, Reauthorization, and Development Act and
before October 1, 2005, the additional cost-sharing requirements of this section
shall become effective on October 1, 2006.
`(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the Secretary to carry out this section--
`(1) $125,000,000 for fiscal year 2006;
`(2) $100,000,000 for fiscal year 2007;
`(3) $90,000,000 for fiscal year 2008;
`(4) $75,000,000 for fiscal year 2009; and
`(5) $50,000,000 for fiscal year 2010.'.
(b) CONFORMING AMENDMENT- The chapter analysis for chapter 243 is amended
by adding at the end the following:
`24316. Operating grants for corridor routes.'.
SEC. 105. OPERATING GRANTS FOR LONG DISTANCE ROUTES.
(a) IN GENERAL- Chapter 243, as amended by section 104, is amended by adding
at the end the following:
`Sec. 24317. Operating grants for long distance routes
`(1) OPERATING GRANT AUTHORITY- Beginning on October 1, 2005, the Secretary
of Transportation may make grants to the American Passenger Railway Corporation
or to a State providing financial support for a long distance route for
operating assistance under the authority of this section, and not under
any other provision of law, to reimburse operators of the long distance
routes operated by Amtrak on the day before the date on which the restructuring
required by section 24300 is completed (as determined by the Secretary)
for a portion of the operating subsidies required to operate those routes
with the same train frequencies.
`(A) A grant under this section shall be subject to the terms, conditions,
requirements, and provisions the Secretary decides are necessary or appropriate
for the purposes of this section, including limitations on what operating
expenses are eligible for reimbursement.
`(B) The Secretary shall require the American Passenger Railway Corporation,
as a condition of a grant under this section, to systematically reduce
its route and system-wide overhead expenses by a minimum of 5 percent
annually through fiscal year 2010. A contract between the National Railroad
Passenger Corporation and the American Passenger Railway Corporation for
the operation of a long distance route or routes must provide for a reduction
in the annual operating subsidy to reflect the reduction in such expenses.
`(3) ANNUAL DETERMINATION OF SUBSIDY- On an annual basis, the Inspector
General for the Department of Transportation shall analyze and advise the
Secretary of Transportation as to the operating subsidy required on each
long distance route operated by the American Passenger Railway Corporation
without competitive bid and the portion of the subsidy attributable to route
and system-wide overhead expenses.
`(b) FEDERAL SHARE OF OPERATING LOSSES- Pending restructuring of the long
distance routes required by sections 106 through 108 of the Rail Passenger
Service Restructuring, Reauthorization, and Development Act, the Federal share
for an operating grant may be 100 percent of the qualifying operating subsidy
for the route.
`(c) COST-SHARING PROCESS FOR LONG DISTANCE ROUTES- Within 9 months after
the date of enactment of the Rail Passenger Service Restructuring, Reauthorization,
and Development Act, the Secretary shall develop a process to facilitate State
cost-sharing on long distance routes. The process shall--
`(1) provide States the option of either--
`(A) receiving Federal grants, managing the service, and selecting the
train operator; or
`(B) having the service managed by the Federal Government with a train
operator selected by the National Rail Passenger Corporation;
`(2) include a methodology to assist States interested in providing financial
support in equitably allocating the share of a route's required operating
subsidy among the affected States; and
`(3) be made available to the Long Distance Restructuring Commission established
under section 106 of the Rail Passenger Service Restructuring, Reauthorization,
and Development Act and the States to assist in the development of the restructuring
plan under that section.
`(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the Secretary of Transportation to carry out this section--
`(1) $550,000,000 for fiscal year 2006;
`(2) $425,000,000 for fiscal year 2007;
`(3) $375,000,000 for fiscal year 2008;
`(4) $325,000,000 for fiscal year 2009; and
`(5) $300,000,000 for fiscal year 2010.'.
(b) CONFORMING AMENDMENT- The chapter analysis for chapter 243, as amended
by section 104 of this Act, is amended by adding at the end the following:
`24317. Operating grants for long distance routes.
SEC. 106. LONG DISTANCE ROUTE RESTRUCTURING COMMISSION.
(a) ESTABLISHMENT- There is established an independent commission to be known
as the Long Distance Route Restructuring Commission.
(1) IN GENERAL- The Commission shall submit a plan to Congress for restructuring
long distance intercity passenger rail routes in a manner that will reduce
Federal operating subsidies on the routes by at least 50 percent by the
end of fiscal year 2010 (as compared to the operating subsidies for those
routes for fiscal year 2003) by--
(A) retaining routes that provide a unique service that can be contracted
out by the National Railroad Passenger Corporation on a for-profit basis;
(B) restructuring other routes as linked corridor routes between major
metropolitan areas; and
(C) consolidating or discontinuing service over remaining routes.
(2) PRESERVATION OF NATIONAL NETWORK- The restructuring plan submitted by
the Commission shall ensure that no corridor route is completely isolated
from the rest of the intercity passenger rail network.
(A) IN GENERAL- A route will be excluded from consideration for restructuring,
consolidation, or closure if a State or group of States commits, by contractual
arrangement with the American Passenger Railway Corporation or another
operator selected through a competitive process, to provide financial
operating support at a level sufficient to offset at least
(i) 30 percent of the operating subsidy for fiscal year 2007;
(ii) 40 percent of the operating subsidy for fiscal year 2008; and
(iii) 50 percent of the operating subsidy thereafter.
(B) FAILURE OF SUPPORT- If a State or group of States fails to provide
the financial support to which it committed under this paragraph, then
service over the route shall be discontinued.
(4) CONSULTATION REQUIRED- In carrying out its duties, the Commission shall
consult with the American Passenger Railway Corporation, State and local
officials, freight railroads, companies with expertise in intercity passenger
transportation, and other organizations with an interest in the restructuring
of the long distance train routes.
(1) The Commission shall be composed of 7 members appointed by the President
within 6 months after the date of enactment of this Act.
(2) The Commission members shall elect 1 member to serve as Chairman.
(d) TERMINATION- The Commission shall terminate 90 days after the Commission's
recommendations for consolidation and closure are submitted to Congress.
(e) VACANCIES- A vacancy on the Commission shall be filled in the same manner
as the original appointment.
(f) DETAILEES- Upon the request of the Chairman of the Commission, the head
of any Federal department or agency may detail personnel of that department
or agency to the Commission to assist the Commission in carrying out its duties.
(g) COMPENSATION; REIMBURSEMENT- Members of the Commission shall serve without
pay, but shall receive travel expenses, including per diem in lieu of subsistence,
in accordance with sections 5702 and 5703 of title 5, United States Code.
(1) The Commission may procure by contract, to the extent funds are available,
the temporary or intermittent services of experts or consultants pursuant
to section 3109 of title 5, United States Code.
(2) The Commission may lease space and acquire personal property to the
extent funds are available.
(i) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
for the use of the Commission in carrying out its responsibilities under this
section for each of fiscal years 2005 and 2006, $4,000,000, such sums to remain
available until expended.
SEC. 107. CRITERIA FOR RESTRUCTURING.
(a) RESTRUCTURING AS LINKED CORRIDORS-
(1) PREREQUISITE FOR RESTRUCTURING- A long distance route or portion thereof
may be recommended for restructuring as a linked corridor if--
(A) the origin-to-destination travel time of each corridor link in the
new route, at conventional train speeds, including all station stops,
will be competitive with other modes of transportation;
(B) each corridor link in the new route connects at least 2 major metropolitan
areas or provides a link between 2 or more existing corridor routes;
(C) the route as restructured can be reasonably expected to attract at
least 10 percent of the combined common carrier market in the markets
served;
(D) the projected cash operating loss of each of the restructured links
does not exceed 11 cents per passenger-mile on a fully allocated cost
basis; and
(E) by the end of fiscal year 2010 the Federal operating subsidy will
be reduced by at least 50 percent (as compared to the operating subsidy
for the route for fiscal year 2003), taking into account commitments by
the affected States to provide financial support for the route so that
no Federal operating subsidy is available for any portion of a route for
which there is no such State commitment.
(2) HOURS OF OPERATION- In addition to the eligibility criteria in paragraph
(1), any long distance routes recommended for restructuring as
linked corridors shall be designed to operate between the hours of 6:00 a.m.
and 11:00 p.m.
(3) MODIFICATION OF ROUTES- With the concurrence of the affected States
and the host railroad, the route and stations service by a restructured
long distance route may be modified to improve ridership and financial performance.
(4) NEW CAPITAL PLANS- As part of the restructuring plan for reconfigured
routes, the Commission shall develop a capital plan, if additional capital
is needed to reconfigure the route as linked corridors.
(b) CONTRACTING-OUT OF PROFITABLE LONG DISTANCE ROUTES AND SERVICES- The Commission
shall determine which long distance routes or services on such routes, including
auto-ferry transportation, food service, and sleeping accommodations, could
be contracted to a private operator on a for-profit basis. In making these
determinations, the Commission shall solicit expressions of interest from
the private sector in operating long distance routes or services, including
the conditions under which private companies may be interested in operating
such services.
(c) CONSOLIDATION AND CLOSURE- The Commission shall make recommendations to
Congress for consolidating and closing long distance train routes or portions
of routes that cannot be restructured under subsection (a) or contracted out
under subsection (b), to reduce the Federal operating subsidy required by
at least 50 percent by the end of fiscal year 2010 (as compared to the operating
subsidies for those routes for fiscal year 2003), taking into consideration--
(1) the operating loss on a fully allocated cost basis, including capital
costs, of the route or portion thereof;
(2) the extent to which train service is the only available public transportation
to the cities and towns along the route or portion thereof;
(3) whether an alternate route could significantly reduce operating losses
and capital requirements or increase ridership;
(4) available capacity on the rights-of-way of the host railroad or railroads;
and
(5) commitments by the affected States to provide financial support for
the route or portion thereof.
(d) COOPERATION OF AMERICAN PASSENGER RAILWAY CORPORATION-
(1) The American Passenger Railway Corporation shall cooperate and comply,
subject to the agreement of the Commission to protect the confidentiality
of proprietary information, with all requests for financial, marketing,
and other information about the routes under consideration by the Commission.
(2) The Secretary of Transportation may withhold all or part of an operating
or capital grant to the Corporation if the Secretary determines the American
Passenger Railway Corporation is not cooperating with the Commission as
required by this subsection.
(e) REPORT- The Commission shall submit its recommendations for restructuring
the long distance routes to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on Transportation
and Infrastructure within 18 months after the date of enactment of this Act.
The report shall include a description of--
(1) the analysis performed by the Commission to reach its conclusions;
(2) options considered in the development of a restructuring plan; and
(3) the impact of the restructuring on employees of the American Passenger
Railway Corporation for any long distance route restructured under this
section.
SEC. 108. IMPLEMENTATION OF RESTRUCTURING PLAN.
(a) IN GENERAL- The Secretary of Transportation shall implement the restructuring
plan submitted to Congress by the Long Distance Route Restructuring Commission
in its report pursuant to section 106 unless a joint resolution is enacted
by the Congress disapproving such recommendations of the Commission before
the earlier of--
(1) the end of the 60-day period beginning on the date the Commission submits
its report to Congress; or
(2) the adjournment of Congress sine die for the session during which such
report is submitted.
(b) CERTAIN DAYS DISREGARDED- For purposes of subsection (a), the days on
which either House of Congress is not in session because of an adjournment
of more than 4 days to a day certain shall be excluded in the computation
of a period.
(c) 1-Year Implementation Period- Unless disapproved under section (a), the
Secretary of Transportation shall fully implement the plan within 1 year after
the date on which the period described in subsection (a) expires.
SEC. 109. REDEMPTION OF COMMON STOCK.
(a) VALUATION- The Secretary of Transportation shall arrange, at the National
Railroad Passenger Corporation's expense, for a valuation of all Amtrak assets
and liabilities with an estimated value in excess of $1,000,000 as of the
date of enactment of this Act by the Secretary of the Treasury, or by a contractor
selected by the Secretary of the Treasury. The valuation shall be conducted
in accordance with the Uniform Standards of Professional Appraisal Practice
of the Appraisal Foundation's Appraisal Standards Board and shall be completed
within 1 year after the date of enactment of this Act.
(1) Prior to the transfer of assets to the Secretary directed by section
110 of this Act, and within 3 months after the completion of the valuation
under subsection (a), the National Railroad Passenger Corporation shall
redeem all common stock in Amtrak issued prior to the date of enactment
of this Act at the fair market value of such stock, based on the valuation
performed under subsection (a).
(2) No provision of this Act, or amendments made by this Act, provide to
the owners of the common stock a priority over holders of indebtedness or
other stock of Amtrak.
(c) ACQUISITION THROUGH EMINENT DOMAIN- In the event that the National Railroad
Passenger Corporation and the owners of the Amtrak common stock have not completed
the redemption of such stock within 3 months after the completion of the valuation
under subsection (a), the National Railroad Passenger Corporation shall exercise
its right of eminent domain under section 24311 of title 49, United States
Code, to acquire that stock. The value assigned to the common stock under
subsection (a) shall be deemed to constitute just compensation except to the
extent that the owners of the common stock demonstrate that the valuation
is less than the constitutional minimum value of the stock.
(d) Amendment of Section 24311- Section 24311(a)(1) is amended--
(1) by striking `or' at the end of subparagraph (A);
(2) by striking `Amtrak.' in subparagraph (B) and inserting `Amtrak; or';
and
(3) by adding at the end the following:
`(C) necessary to redeem Amtrak's common stock from any holder thereof,
including a rail carrier.'.
(e) CONVERSION OF PREFERRED STOCK TO COMMON-
(1) Subsequent to the redemption of the common stock in the corporation
issued prior to the date of enactment of this Act, the Secretary of Transportation
shall convert the one share of the preferred stock of the corporation retained
under section 110 of this Act for 10 shares of common stock in the National
Railroad Passenger Corporation.
(2) The National Railroad Passenger Corporation may not issue any other
common stock, and may not issue preferred stock, without the express written
consent of the Secretary.
(f) Termination of Section 24907 Note and Mortgage Authority- Section 24907
is amended by adding at the end the following:
`(d) TERMINATION OF AUTHORITY- The authority of the Secretary to obtain a
note of indebtedness from, and make a mortgage agreement with, the American
Passenger Railway Corporation under subsection (a) is terminated as of the
date of the transfer of assets under section 110 of the Rail Passenger Service
Restructuring, Reauthorization, and Development Act.'.
SEC. 110. RETIREMENT OF PREFERRED STOCK; TRANSFER OF ASSETS.
(a) TRANSFER- Not later than 30 days after the redemption or acquisition of
stock under section 109 of this Act, the National Railroad Passenger Corporation
shall, in return for the consideration specified in subsection (c), transfer
to the Secretary of Transportation title to--
(1) the portions of the Northeast Corridor currently owned or leased by
the Corporation as well as any improvements made to these assets, including
the rail right-of-way, stations, track, signal equipment, electric traction
facilities, bridges, tunnels, repair facilities, and all other improvements
owned by the Corporation between Boston, Massachusetts, and Washington,
District of Columbia (including the route through Springfield, Massachusetts,
and the routes to Harrisburg, Pennsylvania, and Albany, New York, from the
Northeast Corridor mainline);
(2) Chicago Union Station and rail-related assets in the Chicago Metropolitan
area; and
(3) all other track and right-of-way, stations, repair facilities, and other
real property owned or leased by the Corporation.
(b) EXISTING ENCUMBRANCES-
(1) ASSUMPTION BY FEDERAL GOVERNMENT- Any outstanding debt on the mainline
of the Northeast Corridor (other than debt associated with rolling stock)
shall become a debt obligation of the United States as of the date of transfer
of title under subsection (a)(1).
(2) RESTRUCTURING- Except as provided in paragraph (1), the obligation of
the American Passenger Railway Corporation or its successors or assigns
to repay in full any indebtedness to the United States incurred since January,
1990, is not affected by this Act or an amendment made by this Act.
(c) CONSIDERATION- In consideration for the assets transferred to the United
States under subsection (a), the Secretary shall--
(1) deliver to the National Passenger Railroad Corporation all but one share
of the preferred stock of the corporation held by the Secretary and forgive
the corporation's legal obligation to pay any dividends, including accrued
but unpaid dividends as of the date of transfer, evidenced by the preferred
stock certificates; and
(2) release the National Railroad Passenger Corporation from all mortgages
and liens held by the Secretary that were in existence on January 1, 1990.
(d) AGREEMENT- Prior to accepting title to the assets transferred under this
section, the Secretary shall enter into a contract with American Passenger
Railway Corporation under which American Passenger Railway Corporation will
exercise care, custody, maintenance, and operational control of the assets
to be transferred. The term of the contract shall be for 1 year, which shall
be renewed annually without action on the part of either party unless canceled
by either party with 90 days notice.
(1) The Secretary may, for appropriate consideration, transfer title to
all or part of Chicago Union Station and rail-related assets in the Chicago
metropolitan area acquired under this section to a regional public transportation
agency that has significant operations in Chicago Union Station on the date
of enactment of this Act.
(2) The Secretary may, for appropriate consideration, transfer to the underlying
States title to real estate properties owned by the Corporation between
Boston, Massachusetts, and Washington, District of Columbia, that constitute
the route through Springfield, Massachusetts, and the routes to Harrisburg,
Pennsylvania, and Albany, New York, from the Northeast Corridor mainline.
(3) The Secretary may, for appropriate consideration, transfer title to
all or part of the assets acquired under subsection (a)(3) to a State, a
public
agency, a railroad, or other entity deemed appropriate by the Secretary.
(f) USE OF PROCEEDS- Notwithstanding section 3302 of title 31, United States
Code, any proceeds from the transfer of the assets described subsection (e)
shall be credited as off-setting collections to the account that finances
debt and interest payments to the American Passenger Railway Corporation.
Funds available for corridor development under chapter 244 of title 49, United
States Code, shall be increased by an amount equal to the amounts credited
under the preceding sentence.
SEC. 111. REAL ESTATE AND ASSET SALES; OTHER.
(a) IN GENERAL- Within 3 years after the date of enactment of this Act, the
Secretary of Transportation shall transfer all stations, track, and other
fixed facilities outside the Northeast Corridor mainline to which the Secretary
has assumed title under section 110 of this Act, other than equipment repair
facilities, to States, municipalities, railroads, or other entities for maximum
consideration.
(b) USE OF PROCEEDS- Notwithstanding section 3302 of title 31, United States
Code, any proceeds from the transfer of assets under this section shall be
credited as off-setting collections to the account that finances debt and
interest payments to the American Passenger Railway Corporation. Funds available
for corridor development under chapter 244 of title 49, United States Code,
shall be increased by an amount equal to the amounts credited under the preceding
sentence.
Subtitle B--Northeast Corridor
SEC. 131. INTERSTATE COMPACT FOR THE NORTHEAST CORRIDOR.
(1) IN GENERAL- The States and the District of Columbia that constitute
the Northeast Corridor, as defined in section 24102 of title 49, United
States Code, may enter into a multistate compact, not in conflict with any
other law of the United States, to be known as the Northeast Corridor Compact,
to manage railroad operations and rail service and conduct related activities
on the Northeast Corridor mainline between Boston, Massachusetts, and Washington,
District of Columbia.
(2) CONGRESSIONAL APPROVAL REQUIRED- The Northeast Corridor Compact shall
be submitted to Congress for its consent. It is the sense of the Congress
that rapid consent to the Compact is a priority matter for the Congress.
(1) IN GENERAL- There is hereby established a commission to be known as
the Northeast Corridor Compact Commission. The Commission shall be composed
of--
(A) 2 members (or their designees), to be selected by the Secretary of
Transportation;
(B) 2 members (or their designees), to be selected by agreement of--
(i) the governors of Maryland, Delaware, Pennsylvania, New Jersey, New
York, Connecticut, Rhode Island, and Massachusetts (hereinafter referred
to as the `participating States'); and
(ii) the mayor of the District of Columbia; and
(C) 1 member to be selected by the 4 members selected under subparagraphs
(A) and (B).
(2) Administrative provisions-
(A) Members of the Commission shall be appointed for the life of the Commission.
(B) A vacancy in the Commission shall be filled in the manner in which
the original appointment was made.
(C) Members shall serve without pay but shall receive travel expenses,
including per diem in lieu of subsistence, in accordance with sections
5702 and 5703 of title 5, United States Code.
(D) The Chairman of the Commission shall be elected by the members.
(E) The Commission may appoint and fix the pay of such personnel as it
considers appropriate.
(F) Upon the request of the Commission, the head of any department or
agency of the United States may detail, on a reimbursable basis, any of
the personnel of that department or agency to the Commission to assist
it in carrying out its duties under this section.
(G) Upon the request of the Commission, the Administrator of General Services
shall provide to the Commission, on a reimbursable basis, the administrative
support services necessary for the Commission to carry out its responsibilities
under this section.
(c) FUNCTIONS- The Commission shall prepare for the consideration of and adoption
by participating States, the District of Columbia, and the Secretary of Transportation
an interstate compact that provides for--
(1) full authority for 99 years to succeed to the responsibilities of the
National Railroad Passenger Corporation as manager of the Northeast Corridor,
subject to the provisions of a lease from the Department of Transportation,
including responsibility for--
(A) Corridor maintenance and improvement;
(B) the operation of intercity passenger rail service;
(C) making arrangements for operation of freight railroad operations and
commuter operations;
(D) the use of the Corridor for non-rail purposes; and
(E) the Northeast Corridor financial operations;
(2) execution of a lease of the Northeast Corridor from the Department of
Transportation, for a period of 99 years, subject to appropriate provisions
protecting the lessor's interests, including reversion of all lease interests
to the lessor in the event the lessee fails to meet its financial obligations
or otherwise assume financial responsibility for Northeast Corridor functions;
and
(3) participation by the Department of Transportation, as the non-voting
representative of the United States.
(d) FINAL COMPACT PROPOSAL-
(1) The Commission shall submit a final compact proposal to participating
States, the District of Columbia, and the Federal Government not later than
18 months after the date of enactment of this Act.
(2) The Commission shall terminate on the 180th day following the date of
transmittal of the final compact proposal under this subsection.
(e) GOVERNANCE AND FUNDING REQUIREMENTS FOR COMPACT-
(1) The governance provisions of the compact shall provide a mechanism to
ensure voting representation for the participating States and the District
of Columbia and for non-voting representation for the Secretary of Transportation
and a freight railroad that conducts operations on the Northeast Corridor
as ex officio members participating in all Compact affairs.
(2) The provisions of the compact shall establish the financial obligations
of each compact member and shall provide for each member's management of
rail services in the Northeast Corridor.
(f) FEDERAL INTEREST REQUIREMENTS FOR COMPACT- The provisions of the Compact
shall hold the United States Government harmless as to the actions of the
Compact under the lease of rights to the Northeast Corridor by the United
States Government.
(g) COMPACT BORROWING AUTHORITY-
(1) The borrowing authority provisions of the Compact may authorize it to
issue bonds or other debt instruments from time to time at its discretion
for purposes that include paying any part of the cost of rail service improvements,
construction, and rehabilitation and the acquisition of real and personal
property, including operating equipment, except that debt issued by the
Compact may be secured only by revenues to the Compact and may not be a
debt of a participating State, the District of Columbia, or the Federal
Government.
(2) The debt authorized by this subsection shall under no circumstances
be backed by the full faith and credit of the United States, and a grant
made under the authority of this Act or under the authority of part C of
subtitle V of title 49, United States Code, shall include an express acknowledgement
by the grantee that the debt does not constitute an obligation of the United
States.
(h) ADOPTION OF COMPACT; TURNOVER-
(1) IN GENERAL- The participating States and the District of Columbia shall
adopt a final compact agreement within 5 years after the date of enactment
of this Act, and the Compact shall thereafter assume responsibility for
the Northeast Corridor operations on a date that is not later than 6 months
after adoption of the Compact.
(2) OPERATIONS- Upon leasing the Northeast Corridor to the Compact, the
Secretary shall assign to the Compact and the Compact shall assume the then-current
contract for operation of the Northeast Corridor. Upon the termination of
that contract, the Compact may make such arrangements for operation of the
Northeast Corridor as it sees fit consistent with its lease and this Act.
If the Compact chooses to use a contractor other than the American Passenger
Railway Corporation to operate trains on the Northeast Corridor, the contract
shall be awarded competitively.
(3) MAINTENANCE- Upon leasing the Northeast Corridor to the Compact, the
Secretary shall assign to the Compact and the Compact shall assume the then-current
contract for maintenance of the Northeast Corridor. Upon the termination
of that contract, the Compact may make such arrangements for maintenance
of the Northeast Corridor as it sees fit consistent with its lease and this
Act. If the Compact chooses to use a contractor other than the American
Passenger Railway Corporation to maintain the Northeast Corridor and provide
related services, the contract shall be awarded competitively.
(4) NON-COMPACT ALTERNATIVE- If the participating States and the District
of Columbia do not adopt the final compact agreement and make it operational
under the schedule set forth in this section, the Secretary of Transportation,
through a competitive bidding process, shall contract with another public
or private entity to manage the Northeast Corridor, with a goal of maximizing
the return to the Federal government from such operations.
(i) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the Secretary of Transportation to carry out this section--
(1) $3,000,000 for fiscal year 2005, and
(2) $2,000,000 for fiscal year 2006,
such sums to remain available until expended.
SEC. 132. SHUT-DOWN OF COMMUTER OR FREIGHT OPERATIONS.
(a) IN GENERAL- Section 11123 is amended by striking `National Railroad Passenger
Corporation' each place it appears and inserting `American Passenger Railway
Corporation'.
(b) AUTHORIZATION OF APPROPRIATIONS- From the funds made available for the
American Passenger Railway Corporation for fiscal years 2005 through 2010,
the Secretary of Transportation shall in each fiscal year hold in reserve
from the amounts authorized by section 24402(g) of title 49, United States
Code, such sums as may be necessary to carry out directed service orders issued
under section 1123 of title 49, United States Code, to respond to the shut-down
of commuter rail operations or freight operations due to a shut-down of operations
by the American Passenger Railway Corporation. The Secretary shall make the
reserved funds available through an appropriate grant instrument during the
fourth quarter of each fiscal year to the extent that no grant orders have
been issued by the Surface Transportation Board during that fiscal year prior
to the date of transfer of the reserved funds or there is a balance of reserved
funds not needed by the Board to pay for any directed service order in that
fiscal year.
(c) EFFECTIVE DATE FOR SUBSECTION (a)- The amendment made by subsection (a)
shall take effect on the date, determined by the Secretary of Transportation,
on which the restructuring required by sections 24300 of title 49, United
States Code, is completed.
SEC. 133. CAPITAL GRANTS FOR NORTHEAST CORRIDOR.
(a) IN GENERAL- Chapter 243, as amended by section 105, is amended by adding
at the end the following:
`Sec. 24318. Capital authorizations for the Northeast Corridor
`(a) IN GENERAL- The Secretary of Transportation, in consultation with the
American Passenger Railway Corporation, shall develop and implement a capital
program to restore the mainline of the Northeast Corridor between Boston,
Massachusetts, and Washington, District of Columbia, to a state of good repair,
as defined by the Secretary.
`(b) AUTHORIZATION OF APPROPRIATIONS FOR CAPITAL PROJECTS ON THE NORTHEAST
CORRIDOR- There are authorized to be appropriated to the Secretary of Transportation
to make capital grants under this section $200,000,000 for fiscal year 2005
and $300,000,000 for each of fiscal years 2006 through 2010.
`(c) ACHIEVEMENT OF STATE-OF-GOOD-REPAIR ON NORTHEAST CORRIDOR-
`(1) USE OF FUNDS- Sums authorized for the Northeast Corridor under subsection
(b) may be used solely for the purpose of funding deferred maintenance and
safety projects, including the negotiated Federal share for life-safety
improvements in the New York Penn Station tunnels.
`(2) STATE OF GOOD REPAIR- The Northeast Corridor shall be considered to
be in a state of good repair upon the completion of the capital program
developed under subsection (a).'.
(b) CONFORMING AMENDMENT- The chapter analysis for chapter 243, as amended
by section 105, is amended by adding at the end thereof the following:
`24318. Capital authorizations for the Northeast Corridor.'.
Subtitle C--Related Matters
SEC. 151. FAIR AND OPEN COMPETITION.
(a) IN GENERAL- The Secretary of Transportation shall consult with States
that competitively bid intercity passenger rail services to ensure their bidding
practices provide for fair and open competition for all bidders, including
the American Passenger Railway Corporation. The Secretary may withhold all
or a portion of a grant under this Act if the Secretary determines that the
State's bidding processes do not treat all competitors fairly.
(b) USE OF FEDERAL OR STATE FUNDS- The Secretary shall ensure that the American
Passenger Railway Corporation may not use Federal or State financial support
for a passenger rail route to subsidize a competitive bid to operate intercity
passenger rail service on another route.
SEC. 152. ACCESS TO OTHER RAILROADS.
(a) Terms and Conditions for Access to Other Railroads-
(1) Existing routes and frequencies-
(A) IN GENERAL- The National Railroad Passenger Corporation shall be responsible
for negotiating the terms and conditions under which--
(i) the American Passenger Railway Corporation, a State, or other entity
may access the property of a rail carrier to provide intercity passenger
rail service over routes operated by Amtrak on the day before the date,
determined by the Secretary of Transportation, on which the restructuring
required by sections 24300 of title 49, United States Code, is completed
at the frequencies in effect on that day; and
(ii) the American Passenger Railway Corporation, freight railroads,
commuter authorities, and other entities may obtain access to property
owned by the United States Government to provide intercity, commuter,
freight rail and other services, except that the National Railroad Passenger
Corporation shall delegate its authority under this clause to the interstate
compact authorized by section 131 after that compact has been adopted.
(B) PRESERVATION OF RAILROAD BENEFITS- The access and liability terms
and conditions of the contracts between the National Railroad Passenger
Corporation and other rail carriers following the restructuring required
by section 24300 of title 49, United States Code, shall be no less favorable
to the railroads than the access and liability terms and conditions under
contracts in effect on the day before the date, as so determined by the
Secretary, on which the restructuring is completed.
(C) INCENTIVE PAYMENTS; PENALTIES- The National Railroad Passenger Corporation
shall retain a system of incentive payments and performance penalties
in negotiating compensation payments to other rail carriers under subparagraph
(A) that encourages on-time performance.
(3) Conditions for new routes and train frequencies-
(A) IN GENERAL- The terms and conditions for the operation of a new intercity
passenger rail route or frequency added after the date of enactment of
this Act shall, except for the rental charge compensation to another rail
carrier, be determined by negotiation and mutual agreement between the
host railroad and the operator or sponsor of the route or frequency to
be added.
(B) STANDARD OF COMPENSATION- The standard of compensation for the rental
change shall be fully allocated costs, excluding capital investments associated
with an added route or frequency, when the on-time performance of the
new route or train frequency meets or exceeds 95 percent of the goal set
by the parties, net of delays not within the host railroad's control.
(C) FAILURE OF NEGOTIATION- If the parties cannot agree on the terms of
the rental charge, either party may petition the Surface Transportation
Board to prescribe the terms under section 24308 of title 49, United States
Code.
(b) Fitness Qualifications for Passenger Rail-
(1) IN GENERAL- No person may operate intercity passenger rail service unless
that person demonstrates to the satisfaction of the Secretary of Transportation
that--
(A) its intercity passenger rail operations will meet all applicable Federal
safety rules and regulations;
(B) it will operate the service on a sound financial basis; and
(C) it has the technical expertise to operate intercity passenger rail
service.
(2) MINIMUM STANDARDS- Within 6 months after the date of enactment of this
Act, the Secretary of Transportation shall by regulation establish minimum
safety and financial qualifications for operators of intercity passenger
rail service.
SEC. 153. LIMITATIONS ON RAIL PASSENGER TRANSPORTATION LIABILITY.
Section 28103 is amended by striking `Amtrak shall maintain a total' in subsection
(c) and inserting `each operator of intercity passenger rail service shall
maintain'.
SEC. 154. TRAIN OPERATIONS INSURANCE POOL.
(a) IN GENERAL- Chapter 281 is amended by adding at the end the following:
`Sec. 28104. Train operations insurance pool
`(a) IN GENERAL- The Secretary of Transportation is authorized to encourage
and otherwise assist insurance companies and other insurers that meet the
requirements prescribed under subsection (b) of this section to form, associate,
or otherwise join together in a pool--
`(1) to provide the insurance coverage required by section 28103; and
`(2) for the purpose of assuming, on such terms and conditions as may be
agreed upon, such financial responsibility as will enable such companies
and other insurers to assume a reasonable proportion of responsibility for
the adjustment and payment of claims under section 28103.
`(b) REGULATIONS TO ESTABLISH INSURER QUALIFICATION REQUIREMENTS- In order
to promote the effective administration of the intercity rail passenger program,
and to assure that the objectives of this chapter are furthered, the Secretary
is authorized to prescribe requirements for insurance companies and other
insurers participating in an insurance pool under subsection (a), including
minimum requirements for capital or surplus or assets.
`(c) AUTHORITY TO COLLECT AND PAY PREMIUMS AND OTHER COSTS- In order to provide
adequate insurance coverage at affordable cost to operators of intercity passenger
rail service at no cost to the United States, the Secretary is authorized
to divide the insurance premiums and all other costs of forming and operating
the insurance pool created pursuant to this section, including the costs of
any contractors or consultants the Secretary may hire, among all the operators
of intercity passenger rail service (including the American Passenger Railway
Corporation) and collect from each operator of intercity passenger rail service
the insurance premiums and other costs the Secretary has allocated to it.
Notwithstanding any other provision of law, the Secretary may receive funds
collected under this section directly from each operator of intercity passenger
rail service, credit the appropriation charged for the insurance premiums
and other costs of forming and operating the insurance pool, and use those
funds to pay insurance premiums and other costs of forming and operating the
insurance pool, including the costs of any contractors or consultants the
Secretary may hire. The Secretary may advance such sums as may be necessary
to pay insurance premiums and other costs of forming and operating the insurance
pool from unobligated balances available to the Federal Railroad Administration
for intercity passenger rail service, to be reimbursed from payments received
from operators of intercity passenger rail service. Where the Secretary is
making a grant of operating funds for a route, the Secretary may collect the
insurance premiums and other costs the Secretary has allocated to it by withholding
those funds from the grant and crediting them to the appropriation charged
for the insurance premiums and other costs of forming and operating the insurance
pool.
`Sec. 28105. Use of insurance pool, companies, or other private organizations
for certain payments
`(a) AUTHORIZATION TO ENTER INTO CONTRACTS FOR CERTAIN RESPONSIBILITIES- The
Secretary of Transportation may enter into contracts with the pool formed
or otherwise created under section 28104, or any insurance company or other
private organizations, for the purpose of securing performance by such pool,
company, or organization of any or all of the following responsibilities:
`(1) Estimating and later determining any amounts of payments to be made
from the pool.
`(2) Receiving from the Secretary, disbursing, and accounting for payments
of insurance premiums.
`(3) Making such audits of the records of any insurance company or other
insurer, insurance agent or broker, or insurance adjustment organization
as may be necessary to assure that proper payments are made.
`(4) Otherwise assisting in such manner as the contract may provide to further
the purposes of this chapter.
`(b) TERMS AND CONDITIONS OF CONTRACT- Any contract with the pool or an insurance
company or other private organization under this section may contain such
terms and conditions as the Secretary finds necessary or appropriate for carrying
out responsibilities under subsection (a) of this section, and may provide
for payment of any costs which the Secretary determines are incidental to
carrying out such responsibilities which are covered by the contract.
`(c) COMPETITIVE BIDDING- Any contract entered into under subsection (a) of
this section may be entered into without regard to section 5 of title 41 or
any other provision of law requiring competitive bidding.
`(d) FINDINGS OF SECRETARY- No contract may be entered into under this section
unless the Secretary finds that the pool, company, or organization will perform
its obligations under the contract efficiently and effectively, and will meet
such requirements as to financial responsibility, legal authority, and other
matters as the Secretary finds pertinent.
`(e) TERM OF CONTRACT; RENEWALS; TERMINATION- Any contract entered into under
this section shall be for a term of 1 year, and may be made automatically
renewable from term to term in the absence of notice by either party of an
intention to terminate at the end of the current term; except that the Secretary
may terminate any such contract at any time (after reasonable notice to the
pool, company, or organization involved) if the Secretary finds that the pool,
company, or organization has failed substantially to carry out the contract,
or is carrying out the contract in a manner inconsistent with the efficient
and effective administration of the intercity rail passenger program.'.
(b) CONFORMING AMENDMENTS-
(1) Chapter 281 is amended by striking `LAW ENFORCEMENT' in the chapter
heading and inserting `LAW ENFORCEMENT; LIABILITY; INSURANCE'.
(2) The part analysis of subtitle V is amended by striking the item relating
to chapter 281 and inserting the following:
`281. Law enforcement; liability; insurance
--28101'.
(3) The table of contents of the title is amended by striking the item relating
to chapter 281 and inserting the following:
`281. Law enforcement; liability; insurance
--28101'.
(4) The chapter analysis for chapter 281 is amended by adding at the end
the following:
`28104. Train operations insurance pool.
`28105. Use of insurance pool, companies, or other private organizations
for certain payments.'.
SEC. 155. COLLECTIVE BARGAINING ARRANGEMENTS.
(a) Status as Employer or Carrier-
(1) IN GENERAL- Any entity providing intercity passenger railroad transportation
(within the meaning of section 20102 of title 49, United States Code) that
begins operations after the date of enactment of this Act shall be considered
an employer for purposes of the Railroad Retirement Act of 1974 (45 U.S.C.
231 et seq.) and considered a carrier for purposes of the Railway Labor
Act (45 U.S.C. 151 et seq.).
(2) COLLECTIVE BARGAINING AGREEMENT- Any entity providing intercity passenger
railroad transportation (within the meaning of section 20102 of title 49,
United States Code) that begins operations after the date of enactment of
this Act and replaces intercity rail passenger service that was provided
by another entity as of the date of enactment of this Act, shall enter into
an agreement with the authorized bargaining agent or agents for employees
of the predecessor provider that--
(A) gives each employee of the predecessor provider priority in hiring
according to the employee's seniority on the predecessor provider for
each position with the replacing entity that is in the employee's craft
or class and is available within three years after the termination of
the service being replaced;
(B) establishes a procedure for notifying such an employee of such positions;
(C) establishes a procedure for such an employee to apply for such positions;
and
(D) establishes rates of pay, rules, and working conditions.
(3) REPLACEMENT OF EXISTING RAIL PASSENGER SERVICE-
(A) NEGOTIATIONS- An entity providing replacement intercity rail passenger
service under paragraph (2) shall give written notice of its plan to replace
existing rail passenger service to the authorized collective bargaining
agent or agents for the employees of the predecessor provider at least
90 days prior to the date it plans to commence service. Within 5 days
after the date of receipt of such written notice, negotiations between
the replacing entity and the collective bargaining agent or agents for
the employees of the predecessor provider shall commence for the purpose
of reaching agreement with respect to all matters set forth in subparagraphs
(A) through (D) of paragraph (2). The negotiations shall continue for
30 days or until an agreement is reached, whichever is sooner. If at the
end of 30 days the parties have not entered into an agreement with respect
to all such matters, the unresolved issues shall be submitted for arbitration
in accordance with the procedure set forth in subparagraph (B).
(B) ARBITRATION- If an agreement has not been entered into with respect
to all matters set forth in subparagraphs (A) through (D) of paragraph
(2) as provided in subparagraph (A) of this paragraph, the parties shall
select an arbitrator. If the parties are unable to agree upon the selection
of such arbitrator within 5 days, either or both parties shall notify
the National Mediation Board, which shall provide a list of 7 arbitrators
with experience in arbitrating rail labor protection disputes. Within
5 days after such notification, the parties shall alternately strike names
from the list until only one name remains, and that person shall serve
as the neutral arbitrator. Within 45 days after selection of the arbitrator,
the arbitrator shall conduct a hearing on the dispute and shall render
a decision with respect to the unresolved issues set forth in subparagraphs
(A) through (D) of paragraph (2). This decision shall be final, binding,
and conclusive upon the parties. The salary and expenses of the arbitrator
shall be borne equally by the parties, but all other expenses shall be
paid by the party incurring them.
(C) SERVICE COMMENCEMENT- An entity providing replacement intercity rail
passenger service under paragraph (2) shall commence service only after
an agreement is entered into with respect to the matters set forth in
subparagraphs (A) through (D) of paragraph (2) or the decision of the
arbitrator has been rendered.
(b) REGULATIONS- Not later than 6 months after the date of the enactment of
this Act, the Secretary of Transportation shall issue regulations for carrying
out this section.
TITLE II--RAIL DEVELOPMENT
SEC. 201. CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL SERVICE.
(a) IN GENERAL- Part C of subtitle V is amended by inserting after chapter
243 the following:
`CHAPTER 244--INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL ASSISTANCE
`24402. Capital investment grants to support intercity passenger rail service.
`24403. Project management oversight.
`24404. Inclusion of projects in Budget.
`24405. Local share and maintenance of effort.
`24406. Grants for maintenance and modernization.
`Sec. 24401. Definitions
`(1) APPLICANT- The term `applicant' means a State, a group of States, including
an interstate compact formed under section 410 of the Amtrak Reform and
Accountability Act of 1997 (49 U.S.C. 24101 note) or section 131 of the
Rail Passenger Service Restructuring, Reauthorization, and Development Act,
or a public corporation, board, commission, or agency established by one
or more States designated as the lead agency of a State for providing intercity
passenger rail service.
`(2) CAPITAL PROJECT- The term `capital project' means a project for--
`(A) acquiring or constructing equipment or a facility for use in intercity
passenger rail service, expenses incidental to the acquisition or construction
(including designing, inspecting, supervising, engineering, location surveying,
mapping, environmental studies, and acquiring rights-of-way), alternatives
analysis related to the development of such train services, capacity improvements
on the property over which the service will be conducted, passenger rail-related
intelligent transportation systems, highway-rail grade crossing improvements
or closures on routes used for intercity passenger rail service, relocation
assistance, acquiring replacement housing sites, and acquiring, constructing,
relocating, and rehabilitating replacement housing;
`(B) rehabilitating or remanufacturing rail rolling stock and associated
facilities used primarily in intercity passenger rail service;
`(C) leasing equipment or a facility for use in intercity passenger rail
service, subject to regulations (to be prescribed by the Secretary of
Transportation) limiting such leasing arrangements to arrangements that
are more cost-effective than purchase or construction;
`(D) modernizing existing intercity passenger rail service facilities
and information systems;
`(E) the introduction of new technology, through innovative and improved
products, other than magnetic levitation; or
`(F) defraying, with respect to new service established under section
24402, the cost of rental charges to freight railroads.
`(3) INTERCITY CORRIDOR PASSENGER RAIL SERVICE- The term `intercity corridor
passenger rail service' means the transportation of passengers between major
metropolitan areas by rail, including high-speed rail (as defined in section
26105(2) of this title), at multiple daily frequencies in corridors of 300
miles or less in length or with trip times of 4 hours or less.
`(4) NET PROJECT COST- The term `net project cost' means that portion of
the cost of a project than cannot be financed from revenues reasonably expected
to be generated by the project.
`Sec. 24402. Capital investment grants to support new intercity passenger
rail service
`(1) GRANTS- The Secretary of Transportation may make grants under this
section to an applicant to assist in financing capital investments to establish
or add additional train frequencies for new intercity corridor passenger
rail service.
`(2) TERMS AND CONDITIONS- The Secretary shall require that a grant under
this section be subject to the terms, conditions, requirements, and provisions
the Secretary decides are necessary or appropriate for the purposes of this
section, including requirements for the disposition of net increases in
value of real property resulting from the project assisted under this section.
`(3) APPLICATION WITH CHAPTER 53- A grant under this section may not be
made for a project or program of projects that qualifies for financial assistance
under chapter 53 of this title.
`(b) PROJECT AS PART OF APPROVED PROGRAM-
`(1) IN GENERAL- The Secretary may not approve a grant for a project under
this section unless the Secretary finds that the project is part of an approved
corridor plan and program developed under section 135 of title 23 and that
the applicant or recipient has or will have the legal, financial, and technical
capacity to carry out the project (including safety and security aspects
of the project), satisfactory continuing control over the use of the equipment
or facilities, and the capability and willingness to maintain the equipment
or facilities.
`(2) ELIGIBILITY INFORMATION- An applicant shall provide sufficient information
upon which the Secretary can make the findings required by this subsection.
`(3) PROPOSED OPERATOR JUSTIFICATION- If an applicant has not selected the
proposed operator of its service competitively, the applicant shall provide
written justification to the Secretary showing why the proposed operator
is preferred, taking into account price and other factors, and that use
of the proposed operator will not increase the capital cost of the project.
`(4) RAIL AGREEMENT- The Secretary of Transportation may not approve a grant
under this section unless the applicant demonstrates that the railroad over
which the intercity passenger rail service will operate concurs with the
applicant's operating plans and infrastructure improvement requirements.
`(c) Criteria for Grants for Intercity Corridor Passenger Rail Projects-
`(1) IN GENERAL- The Secretary may approve a grant under this section for
a capital project only if the Secretary determines that the proposed project
is--
`(A) justified, based on--
`(i) the results of an alternatives analysis and preliminary engineering;
and
`(ii) a comprehensive review of its mobility improvements, environmental
benefits, cost effectiveness, and operating efficiencies; and
`(B) supported by an acceptable degree of State and local financial commitment,
including evidence of stable and dependable financing sources to construct,
maintain, and operate the system or extension.
`(2) ALTERNATIVES ANALYSIS AND PRELIMINARY ENGINEERING- In evaluating a
project under paragraph (1)(A), the Secretary shall analyze and consider
the results of the alternatives analysis and preliminary engineering for
the project.
`(3) PROJECT JUSTIFICATION- In evaluating a project under paragraph (1)(B),
the Secretary shall consider--
`(A) the direct and indirect benefits and costs of relevant alternatives;
`(B) the ability of the service to compete with other modes of transportation;
`(C) the extent to which the project fills an unmet transportation need;
`(D) the ability of the service to fund its operating expenses from fare
revenues;
`(E) population density in the corridor;
`(F) the technical capability of the grant recipient to construct the
project;
`(G) factors such as congestion relief, improved mobility, air pollution,
noise pollution, energy consumption, and all associated ancillary
and mitigating cost increases necessary to carry out each alternative analyzed;
`(H) the level of private sector financial participation and risk sharing
in the project;
`(I) differences in local land, construction, and operating costs in evaluating
project justification; and
`(J) other factors that the Secretary determines appropriate to carry
out this chapter.
`(4) Local financial commitment-
`(A) EVALUATION OF PROJECT- In evaluating a project under paragraph (1)(C),
the Secretary shall require that--
`(i) the proposed project plan provides for the availability of contingency
amounts that the Secretary determines to be reasonable to cover unanticipated
cost increases;
`(ii) each proposed State or local source of capital and operating financing
is stable, reliable, and available within the proposed project timetable;
and
`(iii) State or local resources are available to operate the proposed
service.
`(B) CONSIDERATIONS- In assessing the stability, reliability, and availability
of proposed sources of local financing under subparagraph (A), the Secretary
shall consider--
`(i) existing grant commitments;
`(ii) the degree to which financing sources are dedicated to the purposes
proposed;
`(iii) any debt obligation that exists or is proposed by the applicant
for the proposed project or other intercity passenger rail service purpose;
and
`(iv) the extent to which the project has a local financial commitment
that exceeds the required non-Federal share of the cost of the project.
`(5) PROJECT EVALUATION AND RATING- A proposed project may advance from
alternatives analysis to preliminary engineering, and may advance from preliminary
engineering to final design and construction, only if the Secretary finds
that the project meets the requirements of this section and there is a reasonable
likelihood that the project will continue to meet such requirements. In
making such findings, the Secretary shall evaluate and rate the project
as `highly recommended', `recommended', or `not recommended', based on the
results of alternatives analysis, the project justification criteria, and
the degree of local financial commitment, as required under this subsection.
In rating the projects, the Secretary shall provide, in addition to the
overall project rating, individual ratings for each of the criteria established
under the regulations issued under paragraph (5).
`(6) FULL FUNDING GRANT AGREEMENT- A project financed under this subsection
shall be carried out through a full funding grant agreement. The Secretary
shall enter into a full funding grant agreement based on the evaluations
and ratings required under this subsection. The Secretary shall not enter
into a full funding grant agreement for a project unless that project is
authorized for final design and construction.
`(d) LETTERS OF INTENT, FULL FUNDING GRANT AGREEMENTS, AND EARLY SYSTEMS WORK
AGREEMENTS-
`(A) The Secretary may issue a letter of intent to an applicant announcing
an intention to obligate, for a 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 Secretary
in the project.
`(B) At least 60 days before issuing a letter under subparagraph (A) of
this paragraph or entering into a full funding grant agreement, the Secretary
shall notify in writing the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on Transportation
and Infrastructure, and the House of Representatives and Senate Committees
on Appropriations of the proposed letter or agreement. The Secretary shall
include with the notification a copy of the proposed letter or agreement
as well as the evaluations and ratings for the project.
`(C) The issuance of a letter is deemed not to be an obligation under
sections 1108(c) and (d), 1501, and 1502(a) of title 31, or an administrative
commitment.
`(D) An obligation or administrative commitment may be made only when
amounts are appropriated.
`(2) Full funding agreement-
`(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, which, with respect to a high-speed rail project, shall
be sufficient to complete at least an operable segment;
`(iii) cover the period of time for completing the project, including
a period extending beyond the period of an authorization; and
`(iv) make timely and efficient management of the project easier according
to the law of the United States.
`(B) An agreement under this paragraph obligates an amount of available
budget authority specified in law and may include a commitment, contingent
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 Federal Government and is subject
to the availability of appropriations made by Federal law and to Federal
laws in force on or enacted after the date of the 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 reasonably
available for the project at the time of borrowing. The applicant shall
certify, in a way satisfactory to the Secretary, that the applicant has
shown reasonable diligence in seeking the most favorable financing terms.
`(3) Early systems work agreement-
`(A) The Secretary may make an early systems 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
of preliminary costs of carrying out the project, including land acquisition,
timely procurement of system elements for which specifications are decided,
and other activities the Secretary decides are appropriate to make efficient,
long-term project management easier. A work agreement shall cover the
period of time the Secretary considers appropriate. The period may extend
beyond the period of current authorization. Interest and other financing
costs of efficiently carrying out the work agreement within a reasonable
time are a cost of carrying out the agreement, except that eligible costs
may not be more than the cost of the most favorable financing terms reasonably
available for the project at the time of borrowing. The applicant shall
certify, in a way satisfactory to the Secretary, that the applicant has
shown reasonable diligence in seeking the most favorable financing terms.
If an applicant does not carry out the project for reasons within the
control of the applicant, the applicant shall repay all Government payments
made under the work agreement plus reasonable interest and penalty charges
the Secretary establishes in the agreement.
`(4) LIMIT ON TOTAL OBLIGATIONS AND COMMITMENTS- The total estimated amount
of future obligations of the Government and contingent commitments to incur
obligations covered by all outstanding letters of intent, full funding grant
agreements, and early systems work agreements under this section, when combined
with obligations under section 5309 of this title, may be not more than
the amount authorized under section 5338(b) of this title, less an amount
the Secretary reasonably estimates is necessary for grants under this section
not covered by a letter. The total amount covered by new letters and contingent
commitments included in full funding grant agreements and early systems
work agreements may be not more than a limitation specified in law.
`(e) FEDERAL SHARE OF NET PROJECT COST-
`(A) Based on engineering studies, studies of economic feasibility, and
information on the expected use of equipment or facilities, the Secretary
shall estimate the net project cost.
`(B) A grant for the project may be for up to 50 percent of the net project
cost. The remainder shall be provided in cash from non-Federal sources.
`(f) UNDERTAKING PROJECTS IN ADVANCE-
`(1) IN GENERAL- The Secretary may pay the Federal share of the net capital
project cost to an applicant that carries out any part of a project described
in this section according to all applicable procedures and requirements
if--
`(A) the applicant applies for the payment;
`(B) the Secretary approves the payment; and
`(C) before carrying out a part of the project, the Secretary approves
the plans and specifications for the part in the same way as other projects
under this section.
`(2) INTEREST COSTS- The cost of carrying out part of a project includes
the amount of interest earned and payable on bonds issued by the applicant
to the extent proceeds of the bonds are expended in carrying out the part.
The amount of interest includable as cost under this paragraph may not be
more than the most favorable interest terms reasonably available for the
project at the time of borrowing. The applicant shall certify, in a manner
satisfactory to the Secretary, that the applicant has shown reasonable diligence
in seeking the most favorable financial terms.
`(3) USE OF COST INDICES- The Secretary shall consider changes in capital
project cost indices when determining the estimated cost under paragraph
(2) of this subsection.
`(g) FUNDING- There are authorized to be appropriated to the Secretary of
Transportation for purposes of this section--
`(1) $525,000,000 for fiscal year 2006,
`(2) $525,000,000 for fiscal year 2007,
`(3) $650,000,000 for fiscal year 2008,
`(4) $750,000,000 for fiscal year 2009, and
`(5) $800,000,000 for fiscal year 2010,
such sums to remain available until expended.
`Sec. 24403. Project management oversight
`(a) PROJECT MANAGEMENT PLAN REQUIREMENTS- To receive Federal financial assistance
for a major capital project under this chapter, an applicant shall 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 functional responsibilities, job descriptions, and job qualifications;
`(2) a budget for the project, including the project management organization,
appropriate consultants, property acquisition, utility relocation, systems
demonstration staff, audits, and miscellaneous payments the recipient may
be prepared to justify;
`(3) a construction schedule for the project;
`(4) a document control procedure and recordkeeping 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 functions, procedures, and responsibilities
for construction, system installation, and integration of system components;
`(8) material testing policies and procedures;
`(9) internal plan implementation and reporting requirements;
`(10) criteria and procedures to be used for testing the operational system
or its major components;
`(11) annual updates of the plan, especially related to project budget and
project schedule, financing, and ridership estimates; and
`(12) the recipient's commitment to submit a project budget and project
schedule to the Secretary each month.
`(1) 60-day decision- The Secretary shall approve or disapprove a plan not
later than 60 days after it is submitted. If the approval process cannot
be completed within 60 days, the Secretary shall notify the recipient, explain
the reasons for the delay, and estimate the additional time that will be
required.
`(2) EXPLANATION OF DISAPPROVAL- If the Secretary disapproves a plan, the
Secretary shall inform the applicant of the reasons for disapproval of the
plan.
`(c) SECRETARIAL OVERSIGHT-
`(1) IN GENERAL- 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) USE OF FUNDS- The Secretary may use amounts available under paragraph
(1) of this subsection to make contracts for safety, procurement, management,
and financial compliance reviews and audits of a recipient of amounts under
paragraph (1).
`(3) FEDERAL SHARE- The Federal Government may pay the entire cost of carrying
out a contract under this subsection.
`(d) ACCESS TO SITES AND RECORDS- Each recipient of assistance under this
chapter shall provide the Secretary and a contractor the Secretary chooses
under subsection (b) of this section with access to the construction sites
and records of the recipient when reasonably necessary.
`Sec. 24404. Inclusion of projects in Budget
`Beginning with fiscal year 2005, the Secretary of Transportation shall transmit
to the Office of Management and Budget for inclusion in the President's budget
submission for the fiscal year a list of projects recommended for funding
under section 24402 for the fiscal year.
`Sec. 24405. Local share and maintenance of effort
`(a) IN GENERAL- Notwithstanding any other provision of law, a recipient of
assistance under section 24402 may use, as part of the local matching funds
for a capital project, the proceeds from the issuance of revenue bonds.
`(b) MAINTENANCE OF EFFORT- The Secretary of Transportation shall approve
the use of proceeds from the issuance of revenue bonds for the non-Federal
share of the net project cost only if the aggregate amount of financial support
for intercity passenger rail service from the State is not less than the average
annual amount provided by the State during the preceding 3 years.
`Sec. 24406. Grants for maintenance and modernization
`(a) IN GENERAL- The Secretary of Transportation may make capital grants for
renewal and modernization of intercity passenger rail services to--
`(1) the American Passenger Railway Corporation for services it operates
under contract with the Secretary of Transportation; or
`(2) to States for intercity passenger rail services operated under a contract
with the American Passenger Railway Corporation or another train operator.
`(b) USE OF FUNDS- Grants under this section may be used--
`(1) to purchase, lease, rehabilitate, or remanufacture rolling stock and
associated facilities used primarily in intercity passenger rail service;
`(2) to modernize existing intercity passenger rail service facilities and
information systems; or
`(3) to defray the cost of rental charges to freight railroads for the addition
of train frequencies.
`(c) FEDERAL SHARE- For fiscal years 2005 through 2010, the Federal share
for a capital grant under this section may be 100 percent, except that the
Federal share for a grant made under subsection (b)(3) may not exceed 50 percent.
After fiscal year 2010, the Federal share for a capital grant under this section
may not exceed 80 percent.
`(d) ALLOCATION FORMULA- Funds made available by this section shall be allocated
equitably among the States based on a formula to be determined by the Secretary.
`(e) SLEEPING AND DINING CARS- Pending the restructuring of long distance
routes under sections 106 through 108 of the Rail Passenger Service Restructuring,
Reauthorization, and Development Act, capital grants may be made to the American
Passenger Railway Corporation for sleeping and dining cars only to the extent
necessary to maintain the equipment in working order and not for the purpose
of refurbishing, rebuilding, or renewing such equipment to extend the equipment's
useful life.
`(f) LONG DISTANCE RESTRUCTURING PLAN- Unless the restructuring plan submitted
by the Long Distance Route Restructuring Commission under section 106 of the
Rail Passenger Service Restructuring, Reauthorization, and Development Act
is disapproved by Congress, from the sums authorized for capital projects
outside of the Northeast Corridor, the Secretary may reserve up to $20,000,000
in each of fiscal years 2007 through 2010 to assist in the restructuring of
long distance routes as linked corridors, and the Federal share of such assistance
shall be 100 percent.
`(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the Secretary of Transportation $200,000,000 for each of fiscal years 2005
through 2010 to carry out this section.'.
SEC. 202. REGULATIONS IMPLEMENTING CHAPTER 244.
(a) IN GENERAL- Not later than 1 year after the date of enactment of this
Act, the Secretary of Transportation shall issue final regulations under chapter
244 of title 49, United States Code.
(b) SPECIFIC REQUIREMENTS- The regulations under chapter 244 of title 49,
United States Code, shall include--
(1) the manner in which the Secretary will evaluate and rate projects based
on the results of alternatives analysis, project justification, and the
degree of local financial commitment, as required by section 24402 of that
title;
(2) a definition of `major capital project' for purposes of section 24403;
(3) a requirement that project oversight begin during the preliminary engineering
stage of a project, unless the Secretary finds it more appropriate to begin
oversight during another stage of a project, to maximize the transportation
benefits and cost savings associated with project management oversight;
(4) a deadline by which all grant applications for a fiscal year shall be
submitted that is early enough to permit the Secretary to evaluate all timely
applications thoroughly before making grants;
(5) a formula based on infrastructure ownership, boardings, and passenger-miles
traveled in the prior fiscal year by which the funds authorized for modernization
of existing services will be allocated among the States; and
(6) a requirement that, if a State does not apply for its share of formula
grant funds under paragraph (5) of this subsection in a timely manner, those
funds will be made available to other States.
TITLE III--REFORMS
SEC. 301. MANAGEMENT OF SECURED DEBT.
Except as approved by the Secretary of Transportation to refinance existing
secured debt, Amtrak (until the American Passenger Railway Corporation is
established) and the American Passenger Railway Corporation thereafter, may
not enter into any obligation secured by assets after the date of enactment
of this Act. This section does not prohibit unsecured lines of credit used
for working capital purposes.
SEC. 302. EMPLOYEE ASSISTANCE.
(a) TRANSITION FINANCIAL INCENTIVES-
(1) IN GENERAL- To reduce operating expenses in preparation for competition
from other rail carriers, the American Passenger Railway Corporation may
institute a program under which it may, at its discretion, provide financial
incentives to employees who voluntarily terminate their employment with
the Corporation and relinquish any legal rights to receive termination-related
payments under any contractual agreement with the Corporation.
(2) CONDITIONS FOR FINANCIAL INCENTIVES- As a condition for receiving financial
assistance grants under this section, the American Passenger Railway Corporation
shall certify to the Secretary of Transportation that--
(A) the financial assistance results in a net reduction in the total number
of employees equal to the number receiving financial incentives;
(B) the financial assistance results in a net reduction in total employment
expense equivalent to the total employment expenses associated with the
employees receiving financial incentives; and
(C) the total number of employees eligible for termination-related payments
will not be increased without the express written consent of the Secretary.
(3) AMOUNT OF FINANCIAL INCENTIVES- The financial incentives authorized
under this section may not exceed 1 year's base pay.
(4) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the Secretary of Transportation $25,000,000 for each of fiscal years
2005, 2006, and 2007 to make grants to the American Passenger Railway Corporation
to fund financial incentive payments to employees under this subsection.
(b) Labor Protection for Employees of the American Passenger Railway Corporation-
(1) IN GENERAL- The American Passenger Railway Corporation shall be responsible
for obligations imposed by law or collective bargaining agreement for compensation
and benefits payable to its employees terminated in connection with the
restructuring of passenger rail service under this Act and the amendments
made by this Act. The responsibility of the American Passenger Railway Corporation
under the preceding sentence, and the obligations for which it is responsible
under that sentence, may not be transferred to any other entity in connection
with such restructuring by contract or otherwise.
(2) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the Secretary of Transportation for the use of the American Passenger
Railway Corporation in meeting its responsibility under paragraph (1) $75,000,000
for each of fiscal years 2007 through 2010.
(3) NOT AN OBLIGATION OF THE UNITED STATES- Notwithstanding paragraph (2),
nothing in paragraph (1) shall be construed to mean that any labor protection
obligation of the American Passenger Railway Corporation under that paragraph
is an obligation of the United States Government.
SEC. 303. TERMINATION OF AUTHORITY FOR GSA TO PROVIDE SERVICES TO AMTRAK.
Section 1110 of division A of H.R. 5666 (114 Stat. 2763A-202), as enacted
by section 1(a)(4) of the Consolidated Appropriations Act, 2001, is repealed.
SEC. 304. AMTRAK REFORM BOARD OF DIRECTORS.
Section 24302 is amended by adding at the end the following:
`(d) ASSET TRANSITION COMMITTEE-
`(1) IN GENERAL- The Reform Board shall form an asset transition committee
comprised of the Secretary or the Secretary's designee, and 2 other members,
or 1 other member if 2 other members are not lawfully appointed.
`(2) POWERS AND DUTIES- In addition to other powers and duties assigned
by the board, the Asset Transition Committee has the duty to ensure that
the public interest is served in board decisions and Amtrak management actions
that change the use of or status of--
`(A) the contractual right of access of Amtrak to rail lines of other
railroads;
`(B) Amtrak's secured debt;
`(C) Northeast Corridor real property and assets; and
`(3) APPROVAL REQUIRED- The board may not take an action with regard to
the assets or secured debt specified in paragraph (2), or permit Amtrak
management action with regard to those assets, that is not approved by the
asset transition committee.'.
SEC. 305. LIMITATIONS ON AVAILABILITY OF GRANTS.
(a) IN GENERAL- Chapter 243, as amended by section 136 of this Act is amended
by inserting after section 24318 the following:
`Sec. 24319. Limitations on availability of grants
`(a) IN GENERAL- In addition to any other requirement imposed under this title,
grants under this subtitle are subject to the following conditions:
`(1) The Secretary of Transportation may approve funding to cover operating
losses or operating expenses (including advance purchase orders) only after
receiving and approving a grant request for each specific train route to
which the grant relates.
`(2) Each such grant request shall be accompanied by a detailed financial
analysis, revenue projection, and capital expenditure program justifying
the Federal support to the Secretary's satisfaction.
`(3) Not later than December 31st prior to each fiscal year in which a grant
under this subtitle is to be made, the grant recipient shall transmit a
business plan for operating and capital improvements to be funded in the
fiscal year under section 24104(a) to the Secretary of Transportation, the
Committee on Commerce, Science, and Transportation of the Senate, the Committee
on Transportation and Infrastructure of the House of Representatives, and
the House of Representatives and Senate Committees on Appropriations.
`(4) The business plan shall include--
`(A) targets, as applicable, for ridership, revenues, and capital and
operating expenses;
`(B) a separate accounting for such targets--
`(i) on the Northeast Corridor;
`(ii) each intercity train route;
`(iii) as a group for long distance trains and corridor services; and
`(iv) commercial activities, including contract operations and mail
and express; and
`(C) a description of the work to be funded, along with cost estimates
and an estimated timetable for completion of the projects covered by the
business plan.
`(5) Each month of each fiscal year in which grants are made under this
subtitle, the grant recipient shall submit a supplemental report in electronic
format regarding the business plan, which shall describe the work completed
to date, any changes to the business plan, and the reasons for such changes,
to the Secretary of Transportation, the Committee on Commerce, Science,
and Transportation of the Senate, the Committee on Transportation and Infrastructure
of the House of Representatives, and the House of Representatives and Senate
Committees on Appropriations.
`(6) None of the funds authorized by this subtitle or the Rail Passenger
Service Restructuring, Reauthorization, and Development Act may be disbursed
for operating expenses, including advance purchase orders and capital projects
not approved by the Secretary nor in the business plan submitted by the
grant recipient under paragraph (3).
`(7) The grant recipient shall display the business plan required by paragraph
(3) and all subsequent supplemental plans required by paragraph (5) on its
website within a reasonable time after they are submitted to the Secretary
and the Congress under this section.
`(8) The Secretary may not make any grant under this subtitle, until the
grant recipient agrees to continue abiding by the provisions of paragraphs
(1), (2), (5), (9), and (11) of the summary of conditions on the direct
loan agreement of June 28, 2002, until the loan is repaid.
`(9) With respect to any route on which intercity passenger rail service
is provided on the day before the date on which the restructuring required
by section 24300 is completed (as determined by the Secretary), the American
Passenger Railway Corporation shall make available to any replacement operator
the legacy equipment that is associated with the service on the route. The
equipment shall be made available on such terms as the National Railroad
Passenger Corporation determines are fair, reasonable, and in the public
interest.
`(10) The American Passenger Railway Corporation shall provide interline
reservations services to any other provider of intercity passenger rail
transportation on the same basis and at the same rates as those services
were provided to the operating entities that provide passenger rail service
within Amtrak as of the date of enactment of the Rail Passenger Service
Restructuring, Reauthorization, and Development Act.
`(b) GRANT RECIPIENT- In this section, the term `grant recipient' means--
`(1) Amtrak, until the date on which the American Passenger Railway Corporation
is established; and
`(2) the American Passenger Railway Corporation, after it is established.'.
(b) CONFORMING AMENDMENT- The chapter analysis for chapter 243 is amended
by inserting after the item relating to section 24318 the following:
`24319. Limitations on availability of grants.'.
SEC. 306. REPEAL OF OBSOLETE AND EXECUTED PROVISIONS OF LAW.
(a) IN GENERAL- The following sections are repealed:
(b) Amendment of Section 24305- Section 24305 is amended--
(1) by striking paragraph (2) of subsection (a) and redesignating paragraph
(3) as paragraph (2); and
(2) by inserting `With regard to items acquired with funds provided by the
Federal Government,' before `Amtrak' in subsection (f)(2).
(c) CONFORMING AMENDMENTS- The chapter analyses for chapters 243, 247, and
249 are amended, as appropriate, by striking the items relating to sections
24307,
24701, 24706, 24901, 24902, 24904, 24906, 24908, and 24909.
SEC. 307. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM.
(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
as of the date of enactment of this Act;
(2) to design and assist the American Passenger Railway Corporation 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 the American Passenger Railway Corporation 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) SEPARATE FINANCIAL STATEMENTS FOR NORTHEAST CORRIDOR INFRASTRUCTURE- Beginning
with fiscal year 2006, the American Passenger Railway Corporation shall issue
separate financial statements for activities related to the infrastructure
of the Northeast Corridor.
(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the Secretary of Transportation $2,500,000 for fiscal year 2005 to carry
out subsection (a), such sums to remain available until expended.
SEC. 308. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.
(a) IN GENERAL- The Secretary of the Treasury, in consultation with the Secretary
of Transportation and Amtrak, shall restructure Amtrak's indebtedness as of
the date of enactment of this Act.
(b) DEBT REDEMPTION- The Secretary of Transportation, in consultation with
the Secretary of the Treasury, shall enter into negotiations with the holders
of Amtrak debt, including leases, that is outstanding on the date of enactment
of this Act for the purpose of restructuring that debt. The Secretary, in
consultation with the Secretary of the Treasury, shall secure agreements for
repayment on such terms as the Secretary deems favorable to the interests
of the Government.
(c) CRITERIA- In redeeming or restructuring Amtrak's indebtedness, the Secretaries
and Amtrak--
(1) shall ensure that the restructuring imposes the least practicable burden
on taxpayers; and
(2) take into consideration repayment costs, the term of any loan or loans,
and market conditions.
(d) EARLY REDEMPTION PLAN- Within 1 year after the date of enactment of this
Act, the Secretary of Transportation and the Secretary of the Treasury shall
transmit to the Congress--
(1) a plan for the early redemption of Amtrak debt; and
(2) a proposal for covering the costs associated with the early redemption.
(e) AMTRAK PRINCIPAL AND INTEREST PAYMENTS-
(1) PRINCIPAL ON DEBT SERVICE- Unless the Secretary of Transportation and
the Secretary of the Treasury restructure or redeem the debt, there are
authorized to be appropriated to the Secretary of Transportation for the
use of Amtrak (before the date, determined by the Secretary of Transportation,
on which the restructuring required by section 24300 of title 49, United
States Code, is completed) and the American Passenger Railway Corporation
(after that date) for retirement of principal on loans for capital equipment,
or capital leases, not more than the following amounts:
(A) For fiscal year 2005, $110,000,000.
(B) For fiscal year 2006, $115,000,000.
(C) For fiscal year 2007, $205,000,000.
(D) For fiscal year 2008, $165,000,000.
(E) For fiscal year 2009, $155,000,000.
(F) For fiscal year 2010, $150,000,000.
(2) INTEREST ON DEBT- Unless the Secretary of Transportation and the Secretary
of the Treasury restructure or redeem the debt, there are authorized to
be appropriated to the Secretary of Transportation for the use of Amtrak
(before the date, determined by the Secretary of Transportation, on which
the restructuring required by section 24300 of title 49, United States Code,
is completed) and the American Passenger Railway Corporation (after that
date) for the payment of interest on loans for capital equipment, or capital
leases, the following amounts:
(A) For fiscal year 2005, $155,000,000.
(B) For fiscal year 2006, $150,000,000.
(C) For fiscal year 2007, $140,000,000.
(D) For fiscal year 2008, $130,000,000.
(E) For fiscal year 2009, $125,000,000.
(F) For fiscal year 2010, $115,000,000.
(3) REDUCTIONS IN AUTHORIZATION LEVELS- Whenever action taken by the Secretary
of the Treasury under subsection (c) results in reductions in amounts of
principle and interest that Amtrak must service on existing debt, Amtrak
shall submit to the Senate Committee on Commerce, Science and Transportation,
the House of Representatives Committee on Transportation and Infrastructure,
the Senate Committee on Appropriations, and House of Representatives Committee
on Appropriations revised requests for amounts authorized by paragraphs
(1) and (2) that reflect such reductions.
(f) LEGAL EFFECT OF PAYMENTS UNDER THIS SECTION- The payment of principal
and interest secured debt with the proceeds of grants under subsection (f)
shall not--
(1) modify the extent or nature of any indebtedness of the National Railroad
Passenger Corporation to the United States in existence of the date of enactment
of this Act;
(2) change the private nature of Amtrak's or its successors' liabilities;
or
(3) imply any Federal guarantee or commitment to amortize Amtrak's outstanding
indebtedness.
SEC. 309. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary of Transportation
for the benefit of Amtrak for fiscal year 2005 $750,000,000 for operating
expenses.
END
