[House Report 114-30]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 114-30
======================================================================
PASSENGER RAIL REFORM AND INVESTMENT ACT OF 2015
_______
February 26, 2015.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 749]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 749) to reauthorize Federal support
for passenger rail programs, and for other purposes, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
CONTENTS
Page
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Legislative History and Consideration............................ 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
New Budget Authority and Tax Expenditures........................ 4
Congressional Budget Office Cost Estimate........................ 5
Performance Goals and Objectives................................. 8
Advisory of Earmarks............................................. 9
Duplication of Federal Programs.................................. 9
Disclosure of Directed Rule Makings.............................. 9
Federal Mandate Statement........................................ 9
Preemption Clarification......................................... 9
Advisory Committee Statement..................................... 9
Applicability of Legislative Branch.............................. 10
Section-by-Section Analysis of Legislation....................... 10
Changes in Existing Law Made by the Bill, as Reported............ 19
Purpose of Legislation
H.R. 749 authorizes the nation's passenger rail programs,
including the National Railroad Passenger Corporation (Amtrak),
and Amtrak's Office of the Inspector General, and the Federal
Railroad Administration's (FRA) loan and grant programs for
rail investments. H.R. 749 fundamentally changes the
authorization structure of Amtrak by providing funding by
service, or ``lines of business'', rather than applying the
previous structure which provided separate grants for operating
and capital/debt service activities. It also reforms Amtrak's
operations, budgeting, and planning processes, and allows for
more private sector participation in stations, rights-of-way,
and operations. H.R. 749 makes further changes to intercity
passenger rail policy administered by FRA, including revisions
to grant programs, loan programs, and the delivery process for
projects, to ensure better oversight and accelerate
infrastructure projects.
Background and Need for Legislation
For nearly 100 years, America was the unquestioned global
leader in passenger rail. During that time, trains were the
primary, and in many cases, the only, mode of transportation
available for medium- and long-distance travel. However, the
advent of commercial aviation and the Interstate Highway System
provided new transportation alternatives and changed the
equation. In the face of this stiff competition, our Nation's
passenger rail system faded into disuse and disrepair.
Today, however, passenger rail presents one of the best
hopes for relieving the country's congested highways and
airspace. In 2006, the United States population reached 300
million people, and by 2039 the country is expected to break
the 400 million mark. The population concentration in the
nation's urban areas is increasing, in particular on the
eastern seaboard and the Northeast Corridor (NEC) between
Washington, D.C., New York City, and Boston. Congestion costs
also continue to rise. Crippling congestion and poor roads cost
businesses and commuters almost $115 billion each year in
wasted time and fuel--up from $24 billion in 1982. In addition,
Americans spend more than 4 billion hours annually stuck in
traffic.
These statistics indicate that passenger rail must be part
of the solution to the nation's transportation needs. H.R. 749,
the Passenger Rail Reform and Investment Act of 2015 (PRRIA),
reforms and improves the nation's intercity passenger rail
system to meet the challenges of the nation's continued growth.
Any reform of passenger rail must start with Amtrak, whose
mission is to provide rail passenger service to the country.
Since it began providing service in 1971, Amtrak has relied
upon federal funds to remain solvent. While more efficient
operations and reforms could help reduce reliance on federal
funds, the full costs of operations and capital expenses will
require federal funds for the foreseeable future.
In addition to federal funding, Amtrak generates revenue
from operation of its three functions, or lines of business:
(1) the NEC; (2) state-supported routes; and (3) long-distance
routes. The NEC is a line of railroad track owned by Amtrak and
others that runs from Washington, D.C., to Boston,
Massachusetts. Amtrak operates both its higher speed Acela
trains and lower speed regional trains on the NEC, while also
managing the infrastructure. The majority of trains on the NEC,
however, are not Amtrak's, but commuter railroads' serving
major cities and their suburbs in the Northeast. Indeed, of the
2,000 daily trains on the NEC, only approximately 150 are
Amtrak's. These statistics underscore the importance of the
NEC, but also show a strong need for infrastructure
improvements and involvement of the states. PRRIA makes several
significant steps to increase infrastructure investment in the
NEC and improve planning and coordination among all users of
the NEC to ensure the asset is properly utilized and improved
for better service.
Amtrak also operates 21 state-supported routes in 19
states, where states contribute funding to provide additional
passenger rail services. These are corridors of less than 750
miles, primarily located in the Northeast, Midwest, and Pacific
Coast, and connect major metropolitan areas. State-supported
corridor services carry nearly half of Amtrak's annual riders--
about 15.1 million riders. While states are required, by a
previous authorization of Amtrak, to contribute funding for
these corridors, PRRIA ensures that states are accurately
billed for the services Amtrak provides. It also establishes a
dispute resolution mechanism to help resolve disagreements on
costs for the service.
Finally, Amtrak operates 15 long distance routes that
utilize a network of over 18,500 miles of privately owned
freight rail track and carry more than 4.8 million passengers.
These routes are primarily legacy routes taken over by Amtrak
from the freight railroads when Amtrak was formed in 1971, and
are the only Amtrak trains in 23 of the 46 states in the
network. PRRIA ensures these routes are evaluated to enhance
efficiency and reduce losses.
PRRIA not only makes the above noted changes to the way
each line of business is run, it also advances the lines-of-
business approach by authorizing Amtrak funding for operations
and capital into two accounts, the NEC account and the National
Network account, which includes state-supported and long-
distance routes. In addition, Amtrak's planning and grant
requests must be divided by line of business, therefore, on the
whole, PRRIA advances Amtrak's reorganization of the company
into business lines, and prohibits cross-subsidization among
accounts, except for specific transfer authority available
after notification to the Amtrak Board of Directors. These
reforms will enhance accountability and transparency, while
improving the performance of each business line.
Beyond Amtrak reforms, PRRIA also focuses on the
development of the nation's rail system generally. The bill
leverages infrastructure resources, creates more opportunities
for non-Federal participation in passenger rail, streamlines
FRA processes for project development, improves procedures for
FRA's rail loan program, and enhances oversight of FRA-
administered grant programs. Overall, PRRIA makes reforms to
passenger rail infrastructure programs that will help advance
passenger rail as a solution for the nation's transportation
needs.
Hearings
No hearings were held on this legislation in the 114th
Congress. However, several hearings and other Committee events
were held on matters related to this legislation in the 113th
Congress. On April 11, 2013, the Subcommittee on Railroads,
Pipelines, and Hazardous Materials (Subcommittee) held a
hearing on Amtrak's grant request for fiscal year 2014, and how
it relates to Amtrak's on-going reorganization and the
reauthorization of the Passenger Rail Investment and
Improvement Act of 2008 (PRIIA 2008) (Public Law 110-432). On
May 21, 2013, the Subcommittee held a hearing to discuss
Amtrak's financial performance by service type and overall
trends in costs, its spending of federal funds, and how it runs
as a business. On June 6-7, 2013, the Subcommittee hosted a
roundtable on an Amtrak train to New York, NY and a field
hearing in New York, NY, respectively, to assess and discuss
the importance of the NEC to the states it serves, the regional
economy, and transportation network. On June 27, 2013, the
Subcommittee hosted a listening session and heard from major
stakeholders on developing the nation's rail policy for the
next reauthorization. On July 9, 2013, the Subcommittee held a
hearing on the role of innovative financing tools to advance
intercity passenger rail projects.
Legislative History and Consideration
On February 5, 2015, House Committee on Transportation and
Infrastructure Chairman Bill Shuster and Ranking Member Peter
DeFazio and Subcommittee on Railroads, Pipelines, and Hazardous
Materials Chairman Jeff Denham and Ranking Member Michael
Capuano introduced H.R. 749, the Passenger Rail Reform and
Investment Act of 2015 (PRRIA). On February 12, 2015, the
Committee on Transportation and Infrastructure met in open
session and ordered the bill reported favorably to the House by
voice vote with a quorum present. No amendments were offered.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no record votes taken in connection
with consideration of H.R. 749.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Congressional Budget Office Cost Estimate
With respect to the requirement of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 749 from the
Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 25, 2015.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 749, the Passenger
Rail Reform and Investment Act of 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sarah Puro.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 749--Passenger Rail Reform and Investment Act of 2015
Summary: CBO estimates that H.R. 749 would authorize
appropriations totaling $7.2 billion over the 2016-2020 period
for rail programs. That amount includes $5.3 billion for grants
to Amtrak, $1.2 billion for grants to states for intercity rail
projects, and $625 million to renegotiate and prepay a portion
of Amtrak's nonfederal debt. Assuming appropriation of the
amounts specified and estimated to be necessary, CBO estimates
that implementing the legislation would cost $7.0 billion over
the 2016-2020 period.
Pay-as-you-go procedures do not apply to this legislation
because it would not affect direct spending or revenues.
H.R. 749 would impose intergovernmental and private-sector
mandates, as defined in the Unfunded Mandates Reform Act
(UMRA), by requiring some state and local governments and
Amtrak to create plans and submit reports about the capital
assets of intercity passenger rail systems. The bill also would
place new administrative and operational requirements on
Amtrak. CBO estimates that the cost to both public and private
entities of complying with those mandates would be small and
would fall below the annual thresholds established in UMRA for
intergovernmental and private-sector mandates ($77 million and
$154 million in 2015, respectively, adjusted annually for
inflation).
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 749 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2016 2017 2018 2019 2020 2016-2020
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Capital and Operating Grants to Amtrak:
Estimated Authorization Level....................... 1,287 1,313 1,340 1,370 0 5,310
Estimated Outlays................................... 1,041 1,273 1,333 1,363 298 5,307
Cost to Renegotiate and Prepay Amtrak's Nonfederal Debt:
Estimated Authorization Level....................... 125 125 125 125 125 625
Estimated Outlays................................... 125 125 125 125 125 625
Grants to States for Rail Projects:
Authorization Level................................. 300 300 300 300 0 1,200
Estimated Outlays................................... 30 150 225 270 270 945
Amtrak Inspector General:
Authorization Level................................. 23 24 24 25 0 96
Estimated Outlays................................... 21 23 24 25 3 96
Other Provisions:
Estimated Authorization Level....................... 2 2 1 0 0 5
Estimated Outlays................................... 1 2 1 1 0 5
Total Changes:
Estimated Authorization Level................... 1,737 1,764 1,790 1,820 125 7,236
Estimated Outlays............................... 1,217 1,573 1,708 1,784 696 6,978
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted by the end of fiscal year 2015 and that
the amounts authorized and estimated to be necessary will be
appropriated each year. Spending is based on historical
patterns of spending for rail programs.
Capital and operating grants to Amtrak
H.R. 749 would restructure the federal government's funding
support for Amtrak and would authorize the appropriation of
$5.8 billion for grants to Amtrak over the 2016-2019 period.
That amount includes specified amounts for the rail network
between Boston, Massachusetts, and Washington, DC, and for the
rail network in other parts of the country. Amtrak received a
grant of $1.4 billion for fiscal year 2015 for activities
similar to those authorized in H.R. 749. As directed by the
legislation, the specified authorization levels in H.R. 749 for
this activity have been reduced by $500 million to account for
the estimated cost to renegotiate and prepay a portion of
Amtrak's debt over the 2016-2019 period (as discussed in the
next section). Assuming appropriation of the remaining
authorized amounts, CBO estimates those provisions would cost
$5.3 billion over the 2016-2020 period.
Cost to renegotiate and prepay Amtrak's nonfederal debt
Subject to the availability of appropriated funds, section
209 would require the Secretary of the Treasury to negotiate
with Amtrak's creditors to prepay Amtrak's debt with the goal
of reducing Amtrak's debt-service costs. Under the assumption
that the federal government will continue to provide Amtrak
with grants to pay a portion of its debt-service costs--as it
has since 2006--those prepayments also would reduce future
discretionary costs to the federal government.
According to Amtrak, it has about $1 billion in nonfederal
debt--but, based on information from the Department of the
Treasury, not all of that debt could be favorably renegotiated
to result in savings to Amtrak. Much of Amtrak's nonfederal
debt is for lease payments it makes for railcars and
locomotives. In some of those leases, Amtrak has the option, at
times specified in the lease contracts, to buy out the
remainder of the lease term and take ownership of the rail
equipment. In such cases, the Treasury would calculate the net
present value of the stream of future lease payments compared
to the cost to buy out the lease term to determine if savings
would accrue from buying out the lease. Other debt includes a
mortgage on New York's Penn Station and tax-exempt bonds that
are not callable until fiscal year 2022. Based on information
about the components of Amtrak's debt, CBO estimates that $625
million would be authorized to be appropriated to prepay
Amtrak's debt over the 2016-2020 period, leading to estimated
costs of that amount.
Under provisions of the bill, any amounts appropriated to
Amtrak to renegotiate and prepay its debt would reduce the
amounts authorized to be appropriated by the bill for Amtrak's
Capital and Operating Grants. Although CBO estimates that $625
million would be authorized to be appropriated to prepay
Amtrak's debt over the 2016-2020 period, the amounts authorized
to be appropriated for Capital and Operating Grants have been
reduced by only $500 million because those grants would be
authorized only through 2019 under H.R. 749.
Over the next five years, CBO estimates that Amtrak's debt-
service costs would be reduced by about $20 million a year.
However, over the next couple of decades, Amtrak's debt service
would be reduced by more than $625 million. If the federal
government continues to provide Capital and Operating Grants to
Amtrak, those lower costs could be used to reduce the amount of
grants to Amtrak in the future or could be used for other
Amtrak priorities, including capital spending.
Grants to states for rail projects
Over the 2016-2019 period, the bill would authorize the
appropriation of $1.2 billion in grants to states for capital
costs related to facilities, infrastructure, and equipment
necessary for intercity passenger rail service. No amounts were
appropriated for such grants in 2015. Assuming appropriation of
the authorized amounts, CBO estimates that spending for those
grants would total $945 million over the 2016-2020 period.
Amtrak Inspector General
H.R. 749 would authorize the appropriation of $96 million
for the operations of the Amtrak Inspector General over the
2016-2019 period. Amtrak's Office of the Inspector General
received appropriations of $23 million for fiscal year 2015 for
activities similar to those authorized in H.R. 749. Assuming
appropriation of the authorized amounts, CBO estimates that
implementing these provisions would cost $96 million over the
2016-2020 period.
Other provisions
H.R. 749 would require the Federal Rail Administration
(FRA) to establish a working group to assess the feasibility of
restoring rail service between New Orleans, Louisiana, and
Orlando, Florida. The bill also would require the FRA to
complete a rulemaking to revise how federal reviews of planned
freight and commuter rail projects are conducted in order to
adjust how the agency complies with the Historic Preservation
Act. Based on information from FRA, CBO estimates that
implementing those provisions would cost $5 million over the
2016-2020 period.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: H.R. 749 would
impose intergovernmental and private-sector mandates as defined
in UMRA by placing new requirements on public entities and
Amtrak. CBO estimates that the cost for those entities to
comply with the mandates would be small and would fall below
the annual thresholds established in UMRA for intergovernmental
and private-sector mandates ($77 million and $154 million in
2015, respectively, adjusted annually for inflation).
Mandates that apply to public and private entities
H.R. 749 would impose an intergovernmental and private-
sector mandate by requiring some state and local governments
and Amtrak to create plans and submit reports about the capital
assets of intercity passenger rail systems. CBO estimates the
cost to both public and private entities of complying with the
reporting requirement would be small.
Mandates that apply to private entities only
The bill would impose several additional mandates on
Amtrak. It would require the Amtrak Board of Directors to
consider options to improve boarding procedures, to evaluate
proposals for development projects around Amtrak stations, and
to evaluate requests to use an Amtrak right-of-way for other
business activities. The bill also would require Amtrak to
establish certain financial controls and submit to the Congress
various reports, including a report on options to enhance
development around Amtrak stations Finally, the bill would
modify Amtrak's role on certain rail advisory committees. CBO
estimates that the aggregate cost of complying with those
mandates would be small.
Other effects
Other provisions of the bill would benefit states by
authorizing grants to improve intercity rail passenger service.
CBO estimates states would receive $945 million over the 2016-
2020 period, and any costs would be incurred voluntarily as a
condition of federal assistance.
Estimate prepared by: Federal costs: Sarah Puro; Impact on
state, local, and tribal governments: Melissa Merrell; Impact
on the private sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
authorize passenger rail programs administered by the Federal
Railroad Administration, including operating and capital
funding for Amtrak and the intercity passenger rail grants, and
reform Amtrak's operations, budgeting, and planning. The bill
also allows for more private sector participation in stations,
rights-of-way, and passenger rail operations. Finally, H.R. 749
makes further changes to intercity passenger rail policy,
improving the administration of the rail grant programs, rail
loan programs, and the delivery process for rail projects.
Advisory of Earmarks
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. No
provision in the bill includes an earmark, limited tax benefit,
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of
rule XXI.
Duplication of Federal Programs
Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015),
the Committee finds that no provision of H.R. 749 establishes
or reauthorizes a program of the federal government known to be
duplicative of another federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Disclosure of Directed Rule Makings
Pursuant to section 3(i) of H. Res. 5, 113th Cong. (2015),
the Committee estimates that enacting H.R. 749 specifically
directs the completion of a specific rule making within the
meaning of section 551 of title 5, United States Code. Section
205 of H.R. 749 requires the secretary of Transportation to
carry out a rulemaking for an alternative pilot passenger rail
program, and section 401 of H.R. 749 requires the Secretary of
Transportation to carry out a rulemaking regarding
environmental streamlining of railroad projects.
Federal Mandate Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 749 does not
preempt any state, local, or tribal law. H.R. 749 preserves the
rights and permitting authorities of states.
Advisory Committee Statement
Section 203 of this legislation establishes an advisory
committee, as defined by section 2 of the Federal Advisory
Committee Act (5 U.S.C. app.). Pursuant to section 5 of the
Federal Advisory Committee Act, the Committee determines that
the functions of this advisory committee are not being carried
out by existing agencies or advisory commissions. The Committee
also determines that the advisory committee has a clearly
defined purpose, fairly balanced membership, and meets all of
the other requirements of section 5(b) of the Federal Advisory
Committee Act.
Applicability of Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Section-by-Section Analysis of Legislation
TITLE I--AUTHORIZATION OF APPROPRIATIONS
Section 101. Authorization for Amtrak system
Fiscal responsibility is a top priority for the Committee.
For decades authorization bills have included unrealistic
funding levels. PRRIA breaks this cycle by authorizing Amtrak
at fiscally responsible, recently appropriated funding levels.
This section authorizes funds to be appropriated for fiscal
years 2016 through 2019 to the Secretary of the Department of
Transportation (Secretary) for the use of Amtrak for capital
projects, operating grants, debt service payments, and other
activities.
However, instead of separate authorizations for capital and
debt service and for operating grants, subsection 101(a)
authorizes funding to be appropriated to a new Northeast
Corridor Improvement Fund account, for capital projects and
debt service payments related to the corridor, and subsection
101(b) authorizes funding to be appropriated to a new National
Network account for the capital and operating expenses of
state-supported and long-distance routes, and for debt service
payments related to those services. Subsection 101(c) allows
the Secretary to withhold up to one half of one percent of the
funds authorized in this section for oversight purposes. The
authorization structure contained in this section will ensure
transparency in the federal funding requirements for Amtrak.
Section 102. Authorization for Amtrak Office of Inspector General
This section authorizes funds to be appropriated for fiscal
years 2016 through 2019 to the Secretary for the Office of
Inspector General of Amtrak to conduct oversight of Amtrak's
operations and management.
Section 103. National infrastructure investments
This section authorizes funds to be appropriated for fiscal
years 2016 through 2019 to the Secretary for capital grants for
intercity passenger rail projects under Chapter 244 of Title
49, United States Code, and grade crossing improvement projects
under section 20154 of Title 49, United States Code. Of the
amounts authorized to be appropriated, 50 percent of funds
shall be used for a Federal-State Partnership for Northeast
Corridor Rehabilitation and Improvement program established
under section 301 of this Act.
Section 104. Northeast Corridor
This section clarifies, for the purposes of this title,
that the NEC is defined as the main line between Boston,
Massachusetts and Washington, District of Columbia, and the
facilities and services necessary to operate and maintain that
line.
TITLE II--AMTRAK REFORM
Section 201. Amtrak reform
This section amends chapter 243 of title 49, United States
Code, by adding at the end the following new sections:
Section 24317. Costs and revenues
With the move to a lines-of-business approach for
authorizing federal support for Amtrak, all costs and revenues
of the company must be allocated to the newly created accounts.
This new section requires Amtrak to establish and maintain
internal controls to ensure that all costs and revenues are
allocated to either the NEC or National Network account.
Section 24318. Grant process
This new section lays out the procedures Amtrak shall
follow when preparing and submitting to the Secretary and
Congress a request for federal grants. It also sets forth the
contents of such grant requests, including a detailed financial
analysis by lines of business, a description of the work to be
funded along with cost estimates and a timetable for completion
of projects supported by the federal funds, and other
information similar in nature to budget requests of executive
agencies of the federal government. The Committee believes the
grant process and contents need to better justify federal
support and give the taxpayers and Congress a more transparent
understanding of the federal funds being invested, so that
informed decisions can be made on the amount of federal funding
provided each year. This new section also outlines the review
and approval process for grant requests and the payment
schedule for the Secretary to obligate and outlay funds to
Amtrak.
Section 24319. Accounts
Due to the shift to a lines-of-business approach to
authorizations, this new section requires Amtrak to establish
two accounts, the Northeast Corridor Improvement Fund account
and the National Network account. It mandates that all federal
grant funds, compensation received from states pursuant to
sections209 and 212 of Division B of Public Law 110-432, and
operating surpluses shall be allocated between the two accounts. The
establishment of these two accounts eliminates the need to cross-
subsidize Amtrak's lines of business, though the section does include a
transfer mechanism via notification to the Amtrak Board of Directors.
Establishing these accounts ensures that profits generated on the NEC,
and state access payments for use of the NEC, are reinvested on the
corridor. Similarly, state payments, federal appropriations, and
revenue generated on the National Network will go towards activities
supported by that account.
The Committee is concerned that Amtrak's current structure
is not transparent or aligned by core services. Establishing
separate accounts and only allowing funds to be transferred
between the accounts following Amtrak notification and
justification to the Amtrak Board of Directors will
significantly increase transparency and accountability.
Subsection (e) also requires the Secretary to issue letters of
intent to obligate future year budget authority for major
capital projects requiring multi-year funding to enhance
certainty that the project will reach completion.
Finally, the Committee is concerned about Amtrak's history
with procurements, including problems with the Acela fleet
procurement and lack of funding to complete an ongoing purchase
of sleeping and baggage cars. While the company has made
progress on planning, it has been inconsistent with carrying
out business cases for major procurements, even when it relies
upon federal funding to make such purchases. PRRIA addresses
this problem by mandating that Amtrak conduct a business case
prior to entering into any large capital acquisition.
Specifically, Amtrak must submit a business case to the
Secretary and Congress for rolling stock purchases in excess of
$100,000,000 that sets forth the costs and benefits of the
procurement, the total payments by fiscal year, the source of
the funding, whether the purchase will increase the need for
federal funding, and contingency plans if there is no funding
available for the purchase. This subsection is intended to
improve Amtrak's business planning while giving Congress and
the public confidence that Amtrak is exercising effective
stewardship of federal funds.
Section 24911. Northeast Corridor planning
The NEC is a valuable transportation asset to the region
and nation as a whole. It is also one of the world's most
complicated railroad corridors, with roughly 150 daily Amtrak
trains and nearly 1,800 daily commuter and freight trains. The
PRIIA 2008 created the Northeast Corridor Infrastructure and
Operations Advisory Commission (NEC Commission) to act as the
regional body to coordinate activities on the corridor, and
also required states to start contributing funds to maintain
the corridor. PRRIA significantly advances these efforts by
empowering the NEC Commission to act as a true planner and
convener of the states, commuter railroads, and Amtrak. This
enhanced governance regime will allow states to have an equal
voice in the management of the corridor, and will ensure that
all investments are coordinated appropriately among the
infrastructure owners and users.
Specifically, this section charges the NEC Commission to
work in conjunction with Amtrak, the FRA, and the states to
develop and implement a five-year NEC Capital Investment Plan
in order to identify, prioritize, and phase projects needed to
improve the NEC. This plan then becomes the basis upon which
investments in the NEC must be made by Amtrak. Also, for
projects to be eligible for both the Federal-State Partnership
for NEC Development and Improvement grants established in
section 301 and for the NEC Fast Forward RRIF loan set-aside
established in section 303, the project must be included in the
NEC Capital Investment Plan.
This section also requires Amtrak, states, and public
transportation entities that own infrastructure or operate
service on the NEC to develop and submit to the NEC Commission
NEC Asset Management Plans within 12 months of the enactment of
the Act. Once developed, these asset plans will be used to
inform the development of the NEC Capital Investment Plan.
Furthermore, recognizing that the FRA is currently conducting a
Service Development Plan for the NEC as part of its NEC FUTURE
study, the NEC Commission is required to update that NEC
Service Development Plan every 10 years. This will allow for an
evaluation of service goals as ridership, revenues, and service
levels evolve over the years.
Section 202. Five-year capital and operating plan
PRRIA requires greater transparency into Amtrak's
accounting. Amtrak must provide detailed information to states
on costs for their services. Furthermore, Amtrak is required to
complete detailed five-year capital and financial plans, with
annual explanations of how it met its prior year's goals. This
will help Congress, states, and the taxpayers better understand
and evaluate its return-on-investment in Amtrak.
This section requires the Amtrak Board of Directors to
prepare five-year capital and operating plans for the NEC and
the National Network within 60 days of an Act appropriating
funds to Amtrak. To ensure that the states are properly
involved in Amtrak's decision-making regarding their services,
the plan must be done in consultation with the NEC Commission
for NEC planning and the states for National Network planning.
Following the lines-of-business approach and to ensure that
Congress is properly informed, this section identifies the
specific information to be contained in the plans, including
forecasts and projects, by each line of business. Also, this
section requires Amtrak to plan based on real, constrained
funding levels, not overly optimistic targets that will never
materialize, by making the plans conform to authorized funding
levels so that Congress is provided with realistic expectations
of what can be achieved given the actual federal funds.
Finally, this section requires that Amtrak update Congress on
its progress monthly to maintain accountability throughout the
year.
Section 203. State-supported routes
State-supported routes account for nearly half of Amtrak's
total ridership. While ridership has been successful, a
patchwork of financial arrangements had developed between
Amtrak and the states with varying levels of support. Given
this inconsistent approach, Section 209 of PRIIA 2008 required
Amtrak to work with the states to develop and implement a
single, nationwide standardized methodology for establishing
and allocating the costs of providing intercity rail service on
state-supported routes. While most states have begun to pay for
their state supported routes on an equal basis, states have
raised concerns that Amtrak's financial data is not transparent
enough to know exactly what the underlying costs are for. At
the same time, the Committee is concerned that some states are
not paying Amtrak for services as required under section 209 of
PRIIA 2008, and urges such states to take action to pay for
such services.
Section 203 seeks to remedy these issues by requiring the
Secretary to establish a State-Supported Route Advisory
Committee made up of Amtrak, the Department of Transportation
and the FRA, and seven states that sponsor state-supported
routes, to promote cooperation and planning along the routes
pursuant to section 209 of PRIIA 2008. Amtrak will also be
required to regularly submit detailed financial and performance
information to the states. This will help to enhance
transparency and accountability toward the states paying for
the service. Finally, this section creates an expedited dispute
resolution process with the Surface Transportation Board
functioning as the final arbiter.
Section 204. Route and service planning
Amtrak operates 15 long-distance trains over an 18,500 mile
network serving 39 states, utilizing privately-owned freight
rail track. PRIIA 2008 included several provisions to try to
improve performance and reduce operating losses on these
routes; however, no action on these provisions has been taken
by the FRA.
To ensure action is taken, this section requires Amtrak,
not the FRA, to contract with a third party entity to develop
and recommend objective methodologies for Amtrak to use in
evaluating what intercity passenger rail routes and services it
will provide, including creation of new routes, elimination of
existing routes, or other changes to improve service.
Recommendations must be submitted to Congress, and the Amtrak
Board of Directors is required to consider adoption of such
recommendations and then explain to Congress its reasoning for
adopting or not adopting those recommendations.
Section 205. Competition
During both the 113th and 114th Congresses, with other
modes becoming more congested, private providers of passenger
rail have expressed interest in developing new services.
Indeed, projects are underway where private companies will
build and operate their own passenger rail lines in a couple of
states. The Committee takes advantage of this rail renaissance
and interest in passenger rail development, by establishing an
alternative passenger rail pilot program to encourage
competition along certain Amtrak routes. Within our free market
economic construct, competition can generate better
efficiencies and improved services for the customer. Under the
pilot program established in section 205, rail carriers would
submit bids to FRA, who would award the winning bidder the
right and obligation to provide rail service over that route,
as well as access to Amtrak's reservation system, stations, and
facilities as long as the company maintains minimum FRA
standards. In addition, the winning bidder would only be able
to receive 90 percent or less of the prior year's Amtrak cost.
This section grants FRA the authority to transfer a defined
portion of Amtrak's appropriation for that specific route to
operate the alternative service. It also requires, no later
than 1 year after the enactment of the Act, the FRA to issue a
rulemaking to develop the pilot program. Finally, not later
than 1 year after the conclusion of the program, the FRA must
submit the results of the pilot program to Congress.
Section 206. Food and beverage reform
For decades Amtrak has operated its food and beverage
service at a loss. PRRIA addresses this problem by requiring
that Amtrak implement a series of reforms to eliminate food and
beverage losses over the next five years, which may include
improved product and supply chain efficiencies; strengthened
training and accountability for staff; improved scheduling of
food and beverage staff; and ticket revenue enhancements.
This section requires that within five years of enactment
of the Act, the operating loss associated with providing food
and beverage service on board trains will be eliminated. The
section also includes language protecting Amtrak's existing
workforce, but also mandates that after the five year period,
no federal funding may be utilized to cover food and beverage
losses.
Section 207. Right-of-way leveraging
Amtrak owns the majority of the NEC, which passes through
some of the most densely populated areas of the country. The
company also controls several other rail lines around the
Nation. These railroad rights-of-way represent an untapped
opportunity to partner with the private sector to generate
additional non-passenger rail service revenue. Additional
revenue would help reduce the need for federal funding and
allow more private investment for passenger rail.
This section requires Amtrak to issue a Request for
Proposals seeking private sector entities to utilize Amtrak-
owned right-of-way for telecom systems, energy distribution
systems, and other activities. The Amtrak Board of Directors is
required to review each proposal, and no later than 18 months
after the enactment of this Act submit to Congress a summary of
each proposal received as well as any proposals accepted.
Section 208. Station development
Rail stations are often located in desirable downtown
locations and can become focal points for significant
residential, commercial, and retail development, and enhance
transportation options in communities. For example, Denver
undertook a half a billion dollar project to develop a commuter
and intercity rail terminal, a regional bus facility, new light
rail platforms, and improved public spaces, surrounded by
significant private real estate development. Amtrak owns many
of these stations, but leveraging their potential for real
estate and other development and enhancement has been a low
priority. The Committee urges Amtrak, among other proposals, to
form partnerships that provide bike sharing programs and
dedicated bike parking areas with lighting and accessibility in
its stations to help enhance seamless transportation
connections and grow ridership.
Section 208 requires Amtrak to transmit to Congress a
report on options to enhance development around Amtrak stations
not later than 180 days after enactment of this Act.
Development proposals should strengthen multimodal connections,
capture development-related revenue streams, and pursue
opportunities to better leverage station assets. Doing so will
generate more revenue to that line of business within Amtrak
which can be used to improve infrastructure.
Section 209. Amtrak debt
This section reauthorizes section 205 of PRIIA 2008 to
restructure Amtrak's debt. Ten years ago, Amtrak's debt reached
$3.7 billion. PRIIA 2008 provided authority for restructuring
Amtrak's debt which reduced its debt to $1.4 billion in just
six short years.
Section 210. Amtrak pilot program for passengers transporting
domesticated cats and dogs
This section requires Amtrak to develop and implement a
pilot program to allow domesticated cats and dogs to travel on
a specifically designated railcar. The animal must be in a
kennel sized in accordance to Amtrak's requirements for carry-
on baggage. The passenger will pay a fee that, in the
aggregate, covers the full costs of the pilot program.
Section 211. Amtrak boarding procedures
One of the benefits of intercity passenger rail is the
ability to quickly board a train, from train stations centrally
located in cities, as opposed to the airports, which are often
located far from downtowns, and which require passengers to
arrive much earlier before a departure time. However, Amtrak is
not fully leveraging this competitive advantage and has
seemingly cumbersome boarding procedures at some of its largest
stations.
This section requires the Amtrak Inspector General to
conduct a study comparing Amtrak boarding procedures at its 10
busiest stations to other rail boarding procedures, and make
recommendations to the Amtrak Board of Directors to improve
such procedures. Within six months of receiving the
recommendations, the Board shall consider each recommendation
for implementation.
TITLE III--INTERCITY PASSENGER RAIL POLICY
Section 301. Federal-State partnership for NEC development and
improvement
The NEC is an incredibly valuable asset to both the region
and the Nation, and it should be treated as such. Capital
improvements are necessary to bring the corridor into a state-
of-good-repair and increase service reliability. The NEC also
acts as a valuable resource for states along the corridor. Of
the nearly 2,000 trains that traverse the corridor daily,
roughly 1,800 of them are commuter trains, not owned by Amtrak.
This joint use highlights the need for greater reliability and
efficiency, and presents opportunities for partnerships with
states to improve this asset for all users.
This section establishes a program under Chapter 244 of
Title 49, United States Code, for issuing grants on a
competitive basis for the purpose of financing capital projects
included in the Northeast Corridor Priority Project List. The
list is required to include projects to improve the state-of-
good repair of existing assets, and projects to improve
intercity passenger rail performance through increased
reliability, reduced trip times, and other improvements.
Finally, states are required to equally match the funding
provided by this Act, and the FRA is not authorized to obligate
federal funds until the state match is guaranteed.
Section 302. RRIF process improvements
The FRA administers the Railroad Rehabilitation and
Improvement Financing (RRIF) program, which provides long-term,
low-interest loans and loan guarantees for railroad-related
improvements. While this program is authorized to provide up to
$35 billion in lending, nearly all of it remains unused. This
lack of uptake stems in part from FRA's slow, cumbersome
approval process.
This section makes several improvements to the RRIF loan
program, including limiting the Office of Management and Budget
review period for loan approval and setting a 45-day timeframe
for determining application completion. States are allowed more
flexibility in determining collateral offered to secure loans
and adds Positive Train Control projects to the list of
projects given preference in the approval process. The section
also includes an annual report to Congress on RRIF program
activities.
Section 303. NEC fast forward
The RRIF program is one way the federal government can
partner with the states and Amtrak to advance large
infrastructure projects that are difficult to carry out with
annual appropriations. In particular, the NEC, with its proven
passenger rail and commuter rail ridership, is an ideal area to
use the RRIF program to address needed improvements. PRRIA
dedicates a significant portion of the RRIF program to the NEC
to incentivize states and localities to come to the table and
seek loans to advance projects of national and regional
significance.
This section directs the Secretary, as part of the RRIF
program, to provide direct loans and loan guarantees to
eligible entities for capital projects to improve the NEC. It
also requires the Government Accountability Office to submit a
report to Congress identifying potential revenue sources,
projects, and service improvements that could be achieved by
RRIF capital improvements programs.
This section also increases the comment period on certain
waiver determinations from 15 to 30 days and requires the
Secretary to submit an annual report on such waivers to
Congress. Finally, it allows provisions used in FRA grant
programs to be applied to the RRIF loan program.
Section 304. Large capital project requirements
This section prevents the Secretary from obligating a grant
through the High-Speed and Intercity Passenger Rail Programs in
excess of $1 billion unless the applicant is able to
demonstrate to the Secretary that the non-federal share is
committed, the project will result in a useable segment, and
the applicant submits certain information to the Secretary on
the project, including the project's anticipated benefits.
These provisions will ensure that the federal funding for the
project is being used efficiently and effectively to achieve
the intended goals of the program. Furthermore, it requires the
Secretary to ensure that the project is maintained to the level
of utility that is necessary to support the benefits approved
by the Secretary for a period of 20 years from the date the
project is placed in service. If the project is not maintained
for a period of time in excess of 12 months, then a pro-rata
share of the federal contribution shall be refunded.
Section 305. Small business participation study
This section requires the Secretary to conduct a nationwide
disparity and availability study on the use of small business
concerns owned and controlled by socially and economically
disadvantaged individuals in publicly funded intercity
passenger rail projects administered by the FRA.
Section 306. Gulf Coast rail service working group
This section requires the FRA to convene a working group to
evaluate the restoration of intercity rail passenger service in
the Gulf Coast Region between New Orleans, Louisiana and
Orlando, Florida.
Section 307. Miscellaneous
This section amends Title 49, United States Code in order
to make technical corrections.
TITLE IV--PROJECT DELIVERY
Section 401. Project delivery rulemaking
PRIIA 2008 and the American Recovery and Reinvestment Act
of 2009 (ARRA) changed FRA's primary focus from being a safety
agency to include being a major grant-maker. ARRA provided $8
billion in federal funding for High Speed and Intercity
Passenger Rail grants to states for various passenger rail
projects. These projects require environmental reviews to
comply with the National Environmental Policy Act (NEPA), yet
the FRA still has no regulations on environmental review, only
a Federal Register notice from May 1999 predating the addition
of its substantial grant-making duties. However, prior
transportation authorizations for other modal administrations
within the DOT streamlined environmental review processes for
the Federal Transit Administration (FTA), the Federal Highway
Administration (FHWA), and the Federal Aviation Administration
(FAA) leaving FRA's processes several iterations behind these
agencies. States have expressed concerns with this lack of
guidance and about the discrepancies in the environmental
review processes of the separate intermodal agencies,
particularly when a project crosses multiple jurisdictions.
Because environmental reviews of rail projects can require
participation by multiple agencies, if participation in the
process is done sequentially, a delay at one agency can have
cascading dilatory effects throughout the process. Further,
without deadlines, environmental reviews can be delayed simply
because no agency action was taken. The bill addresses these
concerns by requiring the Secretary to issue a rulemaking to
govern the environmental review, permitting, and approval or
disapproval of freight railroad, intercity rail passenger, and
certain commuter rail passenger infrastructure projects. The
rulemaking is to include procedures for creating process
efficiencies, such as conducting concurrent reviews,
establishing deadlines for decisions, providing for improved
agency coordination, and considering expanded categorical
exclusions.
Section 402. Historic Preservation of Railroads
PRIIA 2008 mandated that the FRA study ways to streamline
compliance with section 106 of the National Historic
Preservation Act and section 303 of Title 49 for rail
infrastructure projects. Concerns have been raised regarding,
among other things, the length of time added to project reviews
as a result of compliance with those laws and the lack of
uniformity in how historic preservation reviews were conducted
by the requisite entities for rail projects. The FRA submitted
its report to Congress in March 2013 outlining the
administrative and legislative actions that could be taken to
reduce timelines and improve reviews. This section builds upon
that report and requires the Secretary to pursue administrative
program alternatives to promote a consistent approach to the
treatment of railroads for historic preservation purposes, and
to consider, among other options, the development of
programmatic agreements, program comments, exempted categories
of undertakings, and guidance for historical reviews. Further,
the Secretary must develop mechanisms for streamlining
compliance with the requirements of section 303 reviews for
railroad and rail-related properties and shall consider, among
other options, the development of programmatic evaluations, de
minimis impact determinations, and regulatory guidance.
TITLE V--MISCELLANEOUS
Section 501. Definitions
This section amends Title 49 to insert several definitions
to conform to changes made elsewhere in the Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 49, UNITED STATES CODE
* * * * * * *
SUBTITLE V--RAIL PROGRAMS
* * * * * * *
PART B--ASSISTANCE
* * * * * * *
CHAPTER 221--LOCAL RAIL FREIGHT ASSISTANCE
* * * * * * *
Sec. 22106. Limitations on financial assistance
(a) Grants and Loans.--A State shall use financial assistance
for projects under this chapter to make a grant or lend money
to the owner of rail property, or a rail carrier providing rail
transportation, related to a project being assisted.
(b) State Use of Repaid Funds and Contingent Interest
Recoveries.--The State shall place the United States
Government's share of money that is repaid and any contingent
interest that is recovered in an interest-bearing account. The
repaid money, contingent interest, and any [interest thereof]
interest thereon shall be considered to be State funds. The
State shall use such funds to make other grants and loans,
consistent with the purposes for which financial assistance may
be used under subsection (a), as the State considers to be
appropriate.
(c) Encouraging Participation.--To the maximum extent
possible, the State shall encourage the participation of
shippers, rail carriers, and local communities in paying the
State share of assistance costs.
* * * * * * *
PART C--PASSENGER TRANSPORTATION
* * * * * * *
CHAPTER 241--GENERAL
Sec.
24101. Findings, mission, and goals.
* * * * * * *
[24104. Authorization of appropriations.]
* * * * * * *
Sec. 24101. Findings, mission, and goals
(a) Findings.--(1) Public convenience and necessity require
that Amtrak, to the extent its budget allows, provide modern,
cost-efficient, and energy-efficient intercity rail passenger
transportation between crowded urban areas and in other areas
of the United States.
(2) Rail passenger transportation can help alleviate
overcrowding of airways and airports and on highways.
(3) A traveler in the United States should have the greatest
possible choice of transportation most convenient to the needs
of the traveler.
(4) A greater degree of cooperation is necessary among
Amtrak, other rail carriers, State, regional, and local
governments, the private sector, labor organizations, and
suppliers of services and equipment to Amtrak to achieve a
performance level sufficient to justify expending public money.
(5) Modern and efficient commuter rail passenger
transportation is important to the viability and well-being of
major urban areas and to the energy conservation and self-
sufficiency goals of the United States.
(6) As a rail passenger transportation entity, Amtrak should
be available to operate commuter rail passenger transportation
through its subsidiary, Amtrak Commuter, under contract with
commuter authorities that do not provide the transportation
themselves as part of the governmental function of the State.
(7) The Northeast Corridor is a valuable resource of the
United States used by intercity and commuter rail passenger
transportation and freight transportation.
(8) Greater coordination between intercity and commuter rail
passenger transportation is required.
(b) Mission.--The mission of Amtrak is to provide efficient
and effective intercity passenger rail mobility consisting of
high quality service that is trip-time competitive with other
intercity travel options and that is consistent with the goals
of [subsection (d)] subsection (c).
(c) Goals.--Amtrak shall--
(1) use its best business judgment in acting to
minimize United States Government subsidies,
including--
(A) increasing fares;
(B) increasing revenue from the
transportation of mail and express;
(C) reducing losses on food service;
(D) improving its contracts with operating
rail carriers;
(E) reducing management costs; and
(F) increasing employee productivity;
(2) minimize Government subsidies by encouraging
State, regional, and local governments and the private
sector, separately or in combination, to share the cost
of providing rail passenger transportation, including
the cost of operating facilities;
(3) carry out strategies to achieve immediately
maximum productivity and efficiency consistent with
safe and efficient transportation;
(4) operate Amtrak trains, to the maximum extent
feasible, to all station stops within 15 minutes of the
time established in public timetables;
(5) develop transportation on rail corridors
subsidized by States and private parties;
(6) implement schedules based on a systemwide average
speed of at least 60 miles an hour that can be achieved
with a degree of reliability and passenger comfort;
(7) encourage rail carriers to assist in improving
intercity rail passenger transportation;
(8) improve generally the performance of Amtrak
through comprehensive and systematic operational
programs and employee incentives;
(9) provide additional or complementary intercity
transportation service to ensure mobility in times of
national disaster or other instances where other travel
options are not adequately available;
(10) carry out policies that ensure equitable access
to the Northeast Corridor by intercity and commuter
rail passenger transportation;
(11) coordinate the uses of the Northeast Corridor,
particularly intercity and commuter rail passenger
transportation; and
(12) maximize the use of its resources, including the
most cost-effective use of employees, facilities, and
real property.
(d) Minimizing Government Subsidies.--To carry out subsection
(c)(12) of this section, Amtrak is encouraged to make
agreements with the private sector and undertake initiatives
that are consistent with good business judgment and designed to
maximize its revenues and minimize Government subsidies. Amtrak
shall prepare a financial plan, consistent with section 204 of
the Passenger Rail Investment and Improvement Act of 2008,
including the budgetary goals for fiscal years 2009 through
2013. Amtrak and its Board of Directors shall adopt a long-term
plan that minimizes the need for Federal operating subsidies.
Sec. 24102. Definitions
In this part--
(1) ``auto-ferry transportation'' means intercity
rail passenger transportation--
(A) of automobiles or recreational vehicles
and their occupants; and
(B) when space is available, of used
unoccupied vehicles.
(2) ``commuter authority'' means a State, local, or
regional entity established to provide, or make a
contract providing for, commuter rail passenger
transportation.
(3) ``commuter rail passenger transportation'' means
short-haul rail passenger transportation in
metropolitan and suburban areas usually having reduced
fare, multiple-ride, and commuter tickets and morning
and evening peak period operations.
(4) ``intercity rail passenger transportation'' means
rail passenger transportation, except commuter rail
passenger transportation.
(5) ``long-distance route'' means a route described
in subparagraph (C) of paragraph (7).
(6) ``National Network'' includes long-distance
routes and State-supported routes.
[(5)] (7) ``national rail passenger transportation
system'' means--
(A) the segment of the continuous Northeast
Corridor railroad line between Boston,
Massachusetts, and Washington, District of
Columbia;
(B) rail corridors that have been designated
by the Secretary of Transportation as high-
speed rail corridors (other than corridors
described in subparagraph (A)), but only after
regularly scheduled intercity service over a
corridor has been established;
(C) long-distance routes of more than 750
miles between endpoints operated by Amtrak as
of the date of enactment of the Passenger Rail
Investment and Improvement Act of 2008; and
(D) short-distance corridors, or routes of
not more than 750 miles between endpoints,
operated by--
(i) Amtrak; or
(ii) another rail carrier that
receives funds under chapter 244.
[(6)] (8) ``Northeast Corridor'' means Connecticut,
Delaware, the District of Columbia, Maryland,
Massachusetts, New Jersey, New York, Pennsylvania, and
Rhode Island.
[(7)] (9) ``rail carrier'' means a person, including
a unit of State or local government, providing rail
transportation for compensation.
[(8)] (10) ``rate'' means a rate, fare, or charge for
rail transportation.
[(9)] (11) ``regional transportation authority''
means an entity established to provide passenger
transportation in a region.
(12) ``state-of-good-repair'' means a condition in
which physical assets, both individually and as a
system, are--
(A) performing at a level at least equal to
that called for in their as-built or as-
modified design specification during any period
when the life cycle cost of maintaining the
assets is lower than the cost of replacing
them; and
(B) sustained through regular maintenance and
replacement programs.
(13) ``State-supported route'' means a route
described in subparagraph (B) or (D) of paragraph (7),
or in section 24702, that is operated by Amtrak,
excluding those trains operated by Amtrak on the routes
described in paragraph (7)(A).
* * * * * * *
[Sec. 24104. Authorization of appropriations
[(a) In General.--There are authorized to be appropriated to
the Secretary of Transportation--
[(1) $1,138,000,000 for fiscal year 1998;
[(2) $1,058,000,000 for fiscal year 1999;
[(3) $1,023,000,000 for fiscal year 2000;
[(4) $989,000,000 for fiscal year 2001; and
[(5) $955,000,000 for fiscal year 2002,
for the benefit of Amtrak for capital expenditures under
chapters 243, 247, and 249 of this title, operating expenses,
and payments described in subsection (c)(1)(A) through (C). In
fiscal years following the fifth anniversary of the enactment
of the Amtrak Reform and Accountability Act of 1997 no funds
authorized for Amtrak shall be used for operating expenses
other than those prescribed for tax liabilities under section
3221 of the Internal Revenue Code of 1986 that are more than
the amount needed for benefits of individuals who retire from
Amtrak and for their beneficiaries.
[(b) Operating Expenses.--(1) Not more than $381,000,000 may
be appropriated to the Secretary for each of the fiscal years
ending September 30, 1993, and September 30, 1994, for the
benefit of Amtrak for operating expenses. Not more than 5
percent of the amounts appropriated for each fiscal year shall
be used to pay operating expenses under section 24704 of this
title for transportation in operation on September 30, 1992.
[(2)(A) Not more than the following amounts may be
appropriated to the Secretary for the benefit of Amtrak for
operating losses under section 24704 of this title for
transportation beginning after September 30, 1992:
[(i) $7,500,000 for the fiscal year ending September
30, 1993.
[(ii) $9,500,000 for the fiscal year ending September
30, 1994.
[(B) The expenditure by Amtrak of an amount appropriated
under subparagraph (A) of this paragraph is deemed not to be an
operating expense when calculating the revenue-to-operating
expense ratio of Amtrak.
[(c) Mandatory Payments.--(1) Not more than $150,000,000 for
the fiscal year ending September 30, 1993, and amounts that may
be necessary for the fiscal year ending September 30, 1994, may
be appropriated to the Secretary to pay--
[(A) tax liabilities under section 3221 of the
Internal Revenue Code of 1986 (26 U.S.C. 3221) due in
those fiscal years that are more than the amount needed
for benefits for individuals who retire from Amtrak and
for their beneficiaries;
[(B) obligations of Amtrak under section 8(a) of the
Railroad Unemployment Insurance Act (45 U.S.C. 358(a))
due in those fiscal years that are more than
obligations of Amtrak calculated on an experience-
related basis; and
[(C) obligations of Amtrak due under section 3321 of
the Code (26 U.S.C. 3321).
[(2) Amounts appropriated under this subsection are not a
United States Government subsidy of Amtrak.
[(d) Payment to Amtrak.--Amounts appropriated under this
section shall be paid to Amtrak under the budget request of the
Secretary as approved or modified by Congress when the amounts
are appropriated. A payment may not be made more frequently
than once every 90 days, unless Amtrak, for good cause,
requests more frequent payment before a 90-day period ends. In
each fiscal year in which amounts are authorized to be
appropriated under this section, amounts appropriated shall be
paid to Amtrak as follows:
[(1) 50 percent on October 1.
[(2) 25 percent on January 1.
[(3) 25 percent on April 1.
[(e) Availability of Amounts and Early Appropriations.--(1)
Amounts appropriated under this section remain available until
expended.
[(2) Amounts for capital acquisitions and improvements may be
appropriated in a fiscal year before the fiscal year in which
the amounts will be obligated.
[(f) Limitations on Use.--Amounts appropriated under this
section may not be used to subsidize operating losses of
commuter rail passenger or rail freight transportation.]
* * * * * * *
CHAPTER 243--AMTRAK
Sec.
24301. Status and applicable laws.
* * * * * * *
24316. [Plan to assist] Plans to address needs of families of passengers
involved in rail passenger accidents.
24317. Costs and revenues.
24318. Grant process.
24319. Accounts.
24320. 5-Year capital and operating plan.
24321. Food and beverage reform.
* * * * * * *
Sec. 24317. Costs and revenues
(a) In General.--Not later than 60 days after the date of
enactment of the Passenger Rail Reform and Investment Act of
2015, Amtrak shall establish and maintain internal controls to
ensure Amtrak's costs and revenues are allocated to either the
Northeast Corridor or the National Network, including
proportional shares of common and fixed costs.
(b) Definition.--For purposes of this chapter, the term
``Northeast Corridor'' means the Northeast Corridor main line
between Boston, Massachusetts, and the District of Columbia,
and facilities and services used to operate and maintain that
line.
Sec. 24318. Grant process
(a) Procedures for Grant Requests.--Not later than 30 days
after the date of enactment of the Passenger Rail Reform and
Investment Act of 2015, the Secretary of Transportation shall
establish and transmit to the Committee on Transportation and
Infrastructure and the Committee on Appropriations of the House
of Representatives and the Committee on Commerce, Science, and
Transportation and the Committee on Appropriations of the
Senate substantive and procedural requirements, including
schedules, for grant requests under this section.
(b) Grant Requests.--Amtrak shall transmit grant requests for
Federal funds to be appropriated to the Secretary for the use
of Amtrak to--
(1) the Secretary; and
(2) the Committee on Transportation and
Infrastructure and the Committee on Appropriations of
the House of Representatives and the Committee on
Commerce, Science, and Transportation and the Committee
on Appropriations of the Senate.
(c) Contents.--A grant request under subsection (b) shall--
(1) provide a detailed financial analysis for the
upcoming fiscal year for the Northeast Corridor, State-
supported routes, and long-distance routes, including
projections for the items listed in 24320(c)(1), as
applicable, in comparison to prior fiscal year
projections;
(2) include a description of the work to be funded,
along with cost estimates and an estimated timetable
for completion of the projects covered by the request;
(3) include an assessment of the continuing financial
stability of Amtrak;
(4) be displayed on Amtrak's website within a
reasonable timeframe following its submission to the
entities described in subsection (b); and
(5) be in similar format and substance to those
submitted by executive agencies of the Federal
Government.
(d) Review and Approval.--
(1) 30-day approval process.--The Secretary shall
complete the review of a grant request and approve or
disapprove the request not later than 30 days after the
date on which Amtrak submits the grant request. If the
Secretary disapproves the request or determines that
the request is incomplete or deficient, the Secretary
shall include the reason for disapproval or the
incomplete items or deficiencies in a notice to Amtrak.
(2) 15-day modification period.--Not later than 15
days after receiving notification from the Secretary
under paragraph (1), Amtrak shall submit a modified
request for the Secretary's review.
(3) Revised requests.--Not later than 15 days after
receiving a modified request from Amtrak, the Secretary
shall either approve the modified request, or, if the
Secretary finds that the request is still incomplete or
deficient, the Secretary shall identify in writing to
the Committee on Transportation and Infrastructure and
the Committee on Appropriations of the House of
Representatives and the Committee on Commerce, Science,
and Transportation and the Committee on Appropriations
of the Senate the remaining deficiencies and recommend
a process for resolving the outstanding portions of the
request.
(e) Payment to Amtrak.--
(1) In general.--Except as provided in paragraph (2),
in each fiscal year for which amounts are authorized to
be appropriated, amounts appropriated shall be paid to
Amtrak as follows:
(A) 50 percent on October 1.
(B) 25 percent on January 1.
(C) 25 percent on April 1.
(2) Exception.--The Secretary may make a payment to
Amtrak of appropriated funds more frequently than once
every 90 days if Amtrak, for good cause, requests more
frequent payment before a 90-day period ends.
(f) Availability of Amounts and Early Appropriations.--
Amounts appropriated to the Secretary for the use of Amtrak
shall remain available until expended. Amounts for capital
acquisitions and improvements may be appropriated for a fiscal
year before the fiscal year in which the amounts will be
obligated.
(g) Limitations on Use.--Amounts appropriated to the
Secretary for the use of Amtrak may not be used to subsidize
operating losses of commuter rail passenger or rail freight
transportation.
Sec. 24319. Accounts
(a) Establishment of Accounts.--Amtrak shall establish--
(1) a Northeast Corridor Improvement Fund account;
and
(2) a National Network account.
(b) Northeast Corridor Improvement Fund Account.--
(1) Deposits.--Amtrak shall deposit in the Northeast
Corridor Improvement Fund account established under
subsection (a)(1)--
(A) grant funds appropriated for the
Northeast Corridor Improvement Fund pursuant to
section 101(a) of the Passenger Rail Reform and
Investment Act of 2015 or any subsequent Act;
(B) compensation received from commuter rail
passenger transportation on the Northeast
Corridor provided to Amtrak pursuant to section
24905(c); and
(C) any operating surplus of the Northeast
Corridor, as allocated pursuant to section
24317.
(2) Use of northeast corridor improvement fund
account.--Except as provided in subsection (d), amounts
deposited in the Northeast Corridor Improvement Fund
account shall be made available for the use of Amtrak
for--
(A) capital projects described in section
24401(2) (A) or (B) to bring the Northeast
Corridor to a state-of-good-repair, including
projects described in section
24911(a)(2)(E)(i)(I);
(B) capital projects intended to increase
corridor capacity, improve service reliability,
and reduce travel time for rail users on the
Northeast Corridor, including projects
described in subclauses (II) and (III) of
section 24911(a)(2)(E)(i), consistent with the
planning process established under section
24911; and
(C) retirement of principal and payment of
interest on loans for capital equipment, or
capital leases, attributable to the Northeast
Corridor.
(c) National Network Account.--
(1) Deposits.--Amtrak shall deposit in the account
established under subsection (a)(2)--
(A) grant funds appropriated for the National
Network pursuant to section 101(b) of the
Passenger Rail Reform and Investment Act of
2015, or any subsequent Act;
(B) compensation received from States
provided to Amtrak pursuant to section 209 of
the Passenger Rail Investment and Improvement
Act of 2008 (42 U.S.C. 24101 note); and
(C) any operating surplus from the National
Network, as allocated pursuant to section
24317.
(2) Use of national network account.--Except as
provided in subsection (d), amounts deposited in the
National Network account shall be made available for
the use of Amtrak for capital expenses and operating
costs of the National Network and retirement of
principal and payment of interest on loans for capital
equipment, or capital leases, attributable to the
National Network.
(d) Transfer Authority.--
(1) Authority.--Amtrak may transfer any funds
appropriated pursuant to the Passenger Rail Reform and
Investment Act of 2015 or any other Act, or any surplus
generated by operations, between the Northeast Corridor
Improvement Fund and National Network accounts upon the
expiration of 60 days after Amtrak has notified the
Amtrak Board of Directors of such transfer.
(2) Report.--Not later than 30 days after the Amtrak
Board of Directors receives notification from Amtrak
under paragraph (1), the Board shall transmit a report
to the Secretary, the Committee on Transportation and
Infrastructure and the Committee on Appropriations of
the House of Representatives, and the Committee on
Commerce, Science, and Transportation and the Committee
on Appropriations of the Senate, that includes--
(A) the amount of the transfer; and
(B) a detailed explanation of the reason for
the transfer, including effects on Amtrak
services if no transfer were made.
(e) Letters of Intent.--
(1) Requirement.--The Secretary shall issue a letter
of intent to Amtrak announcing an intention to
obligate, for a major capital project described in
subclauses (II) and (III) of section 24911(a)(2)(E)(i),
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.
(2) Notice to congress.--At least 30 days before
issuing a letter under paragraph (1), the Secretary
shall notify in writing the Committee on Transportation
and Infrastructure and the Committee on Appropriations
of the House of Representatives, and the Committee on
Commerce, Science, and Transportation and the Committee
on Appropriations of the Senate, of the proposed
letter. The Secretary shall include with the
notification a copy of the proposed letter, the
criteria used for selecting the project for a grant
award, and a description of how the project meets
criteria of this section.
(3) Contingent nature of obligation or commitment.--
An obligation or administrative commitment may be made
only when amounts are appropriated. The letter of
intent shall state that the contingent commitment is
not an obligation of the Federal Government, and is
subject to the availability of appropriations under
Federal law and to Federal laws in force or enacted
after the date of the contingent commitment.
(f) Rolling Stock Purchases.--Prior to entering into
contracts in excess of $100,000,000 for rolling stock
procurements, Amtrak shall submit a business case analysis to
the Secretary, the Committee on Transportation and
Infrastructure and the Committee on Appropriations of the House
of Representatives, and the Committee on Commerce, Science, and
Transportation and the Committee on Appropriations of the
Senate, on the utility of such purchase. This analysis shall--
(1) include a cost and benefit comparison that
describes the total lifecycle costs and the anticipated
benefits related to revenue, operational efficiency,
reliability, and other factors;
(2) set forth the total payments by fiscal year;
(3) identify the specific source and amounts of
funding for each payment, including Federal funds,
State funds, Amtrak profits, Federal, State, or private
loans or loan guarantees, and other funding;
(4) include whether any payment under the contract
will increase Amtrak's grant request, as required under
section 24318, in that particular fiscal year; and
(5) describe how Amtrak will adjust the procurement
if future funding is not available.
Sec. 24320. 5-Year capital and operating plan
(a) Plan.--Not later than 60 days after the date of enactment
of an Act appropriating funds pursuant to section 101 of the
Passenger Rail Reform and Investment Act of 2015, or any
subsequent authorization of appropriations for the same
purposes, the Amtrak Board of Directors shall prepare and
transmit to the Committee on Transportation and Infrastructure
and the Committee on Appropriations of the House of
Representatives and the Committee on Commerce, Science, and
Transportation and the Committee on Appropriations of the
Senate a 5-year capital and operating plan for the Northeast
Corridor and National Network.
(b) Consultation.--Each such plan shall be prepared in
consultation with--
(1) the Federal Railroad Administration;
(2) the Northeast Corridor Infrastructure and
Operations Advisory Commission, with respect to the
Northeast Corridor; and
(3) the requisite States, with respect to the
National Network.
(c) Contents.--A plan prepared under this section shall--
(1) for each of the Northeast Corridor and the
National Network, include--
(A) projected revenues and expenditures for
the Northeast Corridor, State-supported routes,
long-distance routes, and corporate
development, including Federal and non-Federal
funding sources;
(B) projected ridership levels for the
Northeast Corridor, State-supported routes, and
long-distance routes;
(C) projected capital and operational funding
requirements necessary to maintain passenger
service in order to accommodate predicted
ridership levels and predicted sources of
Federal and non-Federal funding;
(D) projected capital and operating
requirements, ridership, revenue, and
expenditures for new passenger service
operations or service expansions;
(E) an assessment of the continuing financial
stability of Amtrak, as indicated by factors
including anticipated Federal funding of
capital and operating costs, Amtrak's ability
to efficiently recruit, retain, and manage its
workforce, and Amtrak's ability to effectively
provide passenger rail service;
(F) estimates of long-term and short-term
debt and associated principal and interest
payments (both current and anticipated);
(G) annual cash flow forecasts;
(H) a statement describing methods of
estimation and significant assumptions;
(I) specific measures that demonstrate
measurable improvement year over year in the
financial results of Amtrak's operations;
(J) prior fiscal year and projected--
(i) operating ratio, cash operating
loss, and cash operating loss per
passenger on a route, business line,
and corporate basis;
(ii) specific costs and savings
estimates resulting from reform
initiatives;
(iii) productivity statistics on a
route, business line, and corporate
basis; and
(iv) equipment reliability
statistics;
(K) capital and operating expenditures for
anticipated security needs; and
(L) a prioritization of capital expenditures
by business line; and
(2) reflect the Northeast Corridor planning, as
applicable, and grant processes established under
sections 24911 and 24318.
(d) Conformance to Authorized Funding Levels.--
(1) In general.--Except as provided in paragraph (2),
any financial projection for a fiscal year that is
included in a plan prepared under this section shall be
based on the amount of dedicated funding for such
fiscal year.
(2) Absence of appropriation.--In the absence of an
appropriation of funds for such fiscal year, the
projection shall be based on the amount of funds
authorized by law to be appropriated for that fiscal
year, plus other dedicated funding.
(3) Dedicated funding defined.--In this subsection,
the term ``dedicated funding'' means any amounts
appropriated for a fiscal year and any other funding
sources, including revenues and other ancillary funding
streams, for the Northeast Corridor or the National
Network.
(e) Standards to Promote Financial Stability.--In preparing a
plan under this section, the Board shall apply sound budgetary
practices, including reducing costs and other expenditures,
improving productivity, increasing revenues, or combinations of
such practices.
(f) Updates.--Amtrak shall provide monthly reports for the
current fiscal year in electronic format to the Secretary and
the Committee on Transportation and Infrastructure and the
Committee on Appropriations of the House of Representatives and
the Committee on Commerce, Science, and Transportation and the
Committee on Appropriations of the Senate regarding the items
described in subsection (c)(1), which shall include a
description of the work completed to date, any differences from
projections, and the reasons for such differences.
Sec. 24321. Food and beverage reform
(a) Plan.--Not later than 90 days after the date of enactment
of the Passenger Rail Reform and Investment Act of 2015, Amtrak
shall develop and begin implementing a plan to eliminate,
within 5 years of such date of enactment, the operating loss
associated with providing food and beverage service on board
Amtrak trains.
(b) Considerations.--In developing and implementing the plan,
Amtrak shall consider a combination of cost management and
revenue generation initiatives, including--
(1) scheduling optimization;
(2) on-board logistics;
(3) product development and supply chain efficiency;
(4) training, awards, and accountability;
(5) technology enhancements and process improvements;
and
(6) ticket revenue allocation.
(c) Savings Clause.--Amtrak shall ensure that no Amtrak
employee holding a position as of the date of enactment of the
Passenger Rail Reform and Investment Act of 2015 is
involuntarily separated because of--
(1) the development and implementation of the plan
required under subsection (a); or
(2) any other action taken by Amtrak to implement
this section.
(d) No Federal Funding for Operating Losses.--Beginning on
the date that is 5 years after the date of enactment of the
Passenger Rail Reform and Investment Act of 2015, no Federal
funds may be used to cover any operating loss associated with
providing food and beverage service on a route operated by
Amtrak or an alternative passenger rail service provider that
operates a route in lieu of Amtrak pursuant to section 24711.
(e) Report.--Not later than 120 days after the date of
enactment of the Passenger Rail Reform and Investment Act of
2015, and annually thereafter for 5 years, Amtrak shall
transmit to the Committee on Transportation and Infrastructure
of the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report containing
the plan developed pursuant to subsection (a) and a description
of progress in the implementation of the plan.
* * * * * * *
CHAPTER 244--INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL
ASSISTANCE
Sec.
24401. Definitions.
* * * * * * *
24407. Federal-State partnership for Northeast Corridor rehabilitation
and improvement.
* * * * * * *
Sec. 24402. Capital investment grants to support intercity passenger
rail service
(a) General Authority.--
(1) The Secretary of Transportation may make grants
under this section to an applicant to assist in
financing the capital costs of facilities,
infrastructure, and equipment necessary to provide or
improve intercity passenger rail transportation.
(2) Consistent with the requirements of this chapter,
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 and shall
prescribe procedures and schedules for the awarding of
grants under this title, including application and
qualification procedures and a record of decision on
applicant eligibility. The Secretary shall issue a
final rule establishing such procedures not later than
2 years after the date of enactment of the Passenger
Rail Investment and Improvement Act of 2008. For the
period prior to the earlier of the issuance of such a
rule or 2 years after the date of enactment of such
Act, the Secretary shall issue interim guidance to
applicants covering such procedures, and administer the
grant program authorized under this section pursuant to
such guidance.
(b) Project as Part of State Rail Plan.--
(1) The Secretary may not approve a grant for a
project under this section unless the Secretary finds
that the project is part of a State rail plan developed
under chapter 227 of this title, or under the plan
required by section 211 of the Passenger Rail
Investment and Improvement Act of 2008, and that the
applicant or recipient has or will have the legal,
financial, and technical capacity to carry out the
project, satisfactory continuing control over the use
of the equipment or facilities, and the capability and
willingness to maintain the equipment or facilities.
(2) An applicant shall provide sufficient information
upon which the Secretary can make the findings required
by this subsection.
(3) If an applicant has not selected the proposed
operator of its service competitively, the applicant
shall provide written justification to the Secretary
showing why the proposed operator is the best, taking
into account price and other factors, and that use of
the proposed operator will not unnecessarily increase
the cost of the project.
(c) Project Selection Criteria.--The Secretary, in selecting
the recipients of financial assistance to be provided under
subsection (a), shall--
(1) require--
(A) that the project be part of a State rail
plan developed under chapter 227 of this title,
or under the plan required by section 211 of
the Passenger Rail Investment and Improvement
Act of 2008;
(B) that the applicant or recipient has or
will have the legal, financial, and technical
capacity to carry out the project, satisfactory
continuing control over the use of the
equipment or facilities, and the capability and
willingness to maintain the equipment or
facilities;
(C) that the applicant provides sufficient
information upon which the Secretary can make
the findings required by this subsection;
(D) that if an applicant has selected the
proposed operator of its service competitively,
that the applicant provide written
justification to the Secretary showing why the
proposed operator is the best, taking into
account costs and other factors;
(E) that each proposed project meet all
safety and security requirements that are
applicable to the project under law; and
(F) that each project be compatible with, and
operated in conformance with--
(i) plans developed pursuant to the
requirements of section 135 of title
23, United States Code; and
(ii) the national rail plan (if it is
available);
(2) select projects--
(A) that are anticipated to result in
significant improvements to intercity rail
passenger service, including, but not limited
to, consideration of--
(i) the project's levels of estimated
ridership, increased on-time
performance, reduced trip time,
additional service frequency to meet
anticipated or existing demand, or
other significant service enhancements
as measured against minimum standards
developed under section 207 of the
Passenger Rail Investment and
Improvement Act of 2008;
(ii) the project's anticipated
favorable impact on air or highway
traffic congestion, capacity, or
safety; and
(iii) identification of the project
by the Surface Transportation Board as
necessary to improve the on-time
performance and reliability of
intercity passenger rail under section
24308(f);
(B) for which there is a high degree of
confidence that the proposed project is
feasible and will result in the anticipated
benefits, as indicated by--
(i) the project's precommencement
compliance with environmental
protection requirements;
(ii) the readiness of the project to
be commenced;
(iii) the timing and amount of the
project's future noncommitted
investments;
(iv) the commitment of any affected
host rail carrier to ensure the
realization of the anticipated
benefits; and
(v) other relevant factors as
determined by the Secretary; and
(C) for which the level of the anticipated
benefits compares favorably to the amount of
Federal funding requested under this chapter;
and
(3) give greater consideration to projects--
(A) that are anticipated to result in
benefits to other modes transportation and to
the public at large, including, but not limited
to, consideration of the project's--
(i) encouragement of intermodal
connectivity through provision of
direct connections between train
stations, airports, bus terminals,
subway stations, ferry ports, and other
modes of transportation;
(ii) anticipated improvement of
freight or commuter rail operations;
(iii) encouragement of the use of
positive train control technologies;
(iv) environmental benefits,
including projects that involve the
purchase of environmentally sensitive,
fuel- efficient, and cost-effective
passenger rail equipment;
(v) anticipated positive economic and
employment impacts;
(vi) encouragement of State and
private contributions toward station
development, energy and environmentally
efficiency, and economic benefits; and
(vii) falling under the description
in section 5302(a)(1)(G) of this title
as defined to support intercity
passenger rail service; and
(B) that incorporate equitable financial
participation in the project's financing,
including, but not limited to, consideration
of--
(i) donated property interests or
services;
(ii) financial contributions by
freight and commuter rail carriers
commensurate with the benefit expected
to their operations; and
(iii) financial commitments from host
railroads, non-Federal governmental
entities, nongovernmental entities, and
others.
(d) State Rail Plans.--State rail plans completed before the
date of enactment of the Passenger Rail Investment and
Improvement Act of 2008 that substantially meet the
requirements of chapter 227 of this title, as determined by the
Secretary pursuant to section 22506 of this title, shall be
deemed by the Secretary to have met the requirements of
subsection (c)(1)(A) of this section.
(e) Amtrak Eligibility.--To receive a grant under this
section, Amtrak may enter into a cooperative agreement with 1
or more States to carry out 1 or more projects on a State rail
plan's ranked list of rail capital projects developed under
section 22504(a)(5) of this title. For such a grant, Amtrak may
not use Federal funds authorized under section 101(a) or (c) of
the Passenger Rail Investment and Improvement Act of 2008 to
fulfill the non-Federal share requirements under subsection (g)
of this section.
(f) Letters of Intent and Early Systems Work Agreements.--
(1) The Secretary may issue a letter of intent to an
applicant announcing an intention to obligate, for a
major capital project under this section, an amount
from future available budget authority specified in law
that is not more than the amount stipulated as the
financial participation of the Secretary in the
project.
(2) At least 30 days before issuing a letter under
paragraph (1) of this subsection, the Secretary shall
notify in writing the Committee on Transportation and
Infrastructure of the House of Representatives, the
Committee on Commerce, Science, and Transportation of
the Senate, and the House and Senate Committees on
Appropriations of the proposed letter or agreement. The
Secretary shall include with the notification a copy of
the proposed letter or agreement, the criteria used in
subsection (c) for selecting the project for a grant
award, and a description of how the project meets such
criteria.
(3) An obligation or administrative commitment may be
made only when amounts are appropriated. The letter of
intent shall state that the contingent commitment is
not an obligation of the Federal Government, and is
subject to the availability of appropriations under
Federal law and to Federal laws in force or enacted
after the date of the contingent commitment.
(g) Federal Share of Net Project Cost.--
(1)(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 shall not exceed 80
percent of the project net capital cost.
(C) The Secretary shall give priority in allocating
future obligations and contingent commitments to incur
obligations to grant requests seeking a lower Federal
share of the project net capital cost.
(2) Up to an additional 20 percent of the required
non- Federal funds may be funded from amounts
appropriated to or made available to a department or
agency of the Federal Government that are eligible to
be expended for transportation.
(3) The following amounts, not to exceed $15,000,000
per fiscal year, shall be available to each applicant
as a credit toward an applicant's matching requirement
for a grant awarded under this section--
(A) in each of fiscal years 2009, 2010, and
2011--
(i) 50 percent of the average of
amounts expended in fiscal years 2002
through 2008 by an applicant for
capital projects related to intercity
passenger rail service; and
(ii) 50 percent of the average of
amounts expended in fiscal years 2002
through 2008 by an applicant for
operating costs of such service; and
(B) in each of fiscal years 2010, 2011 and
2012, 50 percent of the amount by which the
amounts expended for capital projects and
operating costs related to intercity passenger
rail service by an applicant in the prior
fiscal year exceed the average capital and
operating expenditures made for such service in
fiscal years 2006, 2007, and 2008.
The Secretary may require such information as necessary
to verify such expenditures. Credits made available to
an applicant in a fiscal year under this paragraph may
only be applied towards grants awarded in that fiscal
year.
(4) The Federal share of expenditures for capital
improvements under this chapter may not exceed 100
percent.
(h) 2-Year Availability.--Funds appropriated under this
section shall remain available until expended. If any amount
provided as a grant under this section is not obligated or
expended for the purposes described in subsection (a) within 2
years after the date on which the State received the grant,
such sums shall be returned to the Secretary for other
intercity passenger rail development projects under this
section at the discretion of the Secretary.
(i) Cooperative Agreements.--
(1) In general.--A metropolitan planning
organization, State transportation department, or other
project sponsor may enter into an agreement with any
public, private, or nonprofit entity to cooperatively
implement any project funded with a grant under this
chapter.
(2) Forms of participation.--Participation by an
entity under paragraph (1) may consist of--
(A) ownership or operation of any land,
facility, locomotive, rail car, vehicle, or
other physical asset associated with the
project;
(B) cost-sharing of any project expense;
(C) carrying out administration, construction
management, project management, project
operation, or any other management or
operational duty associated with the project;
and
(D) any other form of participation approved
by the Secretary.
(3) Suballocation.--A State may allocate funds under
this section to any entity described in paragraph (1).
(j) Special Transportation Circumstances.--In carrying out
this section, the Secretary shall allocate an appropriate
portion of the amounts available under this section to provide
grants to States--
(1) in which there is no intercity passenger rail
service for the purpose of funding freight rail capital
projects that are on a State rail plan developed under
chapter 227 of this title that provide public benefits
(as defined in chapter 227) as determined by the
Secretary; or
(2) in which the rail transportation system is not
physically connected to rail systems in the continental
United States or may not otherwise qualify for a grant
under this section due to the unique characteristics of
the geography of that State or other relevant
considerations, for the purpose of funding
transportation- related capital projects.
(k) Small Capital Projects.--The Secretary shall make not
less than 5 percent annually available from the amounts
authorized under section 101(c) of the Passenger Rail
Investment and Improvement Act of 2008 beginning in fiscal year
2009 for grants for capital projects eligible under this
section not exceeding $2,000,000, including costs eligible
under section 209(d) of that Act. For grants awarded under this
subsection, the Secretary may waive requirements of this
section, including state rail plan requirements, as
appropriate.
(l) Nonmotorized Transportation Access and Storage.--Grants
under this chapter may be used to provide access to rolling
stock for nonmotorized transportation, including bicycles, and
recreational equipment, and to provide storage capacity in
trains for such transportation, equipment, and other luggage,
to ensure passenger safety.
(m) Large Capital Project Requirements.--
(1) In general.--For a grant awarded under this
chapter for an amount in excess of $1,000,000,000, the
following conditions shall apply:
(A) The Secretary of Transportation shall not
obligate any funding unless the applicant
demonstrates to the satisfaction of the
Secretary that it has committed and will be
able to fulfill the non-Federal share required
for the grant within the applicant's proposed
project completion timetable.
(B) The Secretary shall not obligate any
funding for work activities that occur after
the completion of final design unless--
(i) the applicant transmits to the
Secretary a financial plan that
generally identifies the sources of the
non-Federal funding required for any
subsequent segments or phases of the
corridor service development program
covering the project for which the
grant is made;
(ii) the grant will result in a
useable segment, a transportation
facility, or equipment, that has
operational independence; and
(iii) the intercity passenger rail
benefits anticipated to result from the
grant, such as increased speed,
improved on-time performance, reduced
trip time, increased frequencies, new
service, safety improvements, improved
accessibility, or other significant
enhancements are detailed by the
grantee and approved by the Secretary.
(C) The Secretary shall ensure that the
project is maintained to the level of utility
that is necessary to support the benefits
approved under subparagraph (B)(iii) for a
period of 20 years from the date the useable
segment, transportation facility, or equipment
described in subparagraph (B)(ii) is placed in
service. If the project property is not
maintained as required by this subparagraph for
a period of time in excess of 12 months, then a
pro-rata share of the Federal contribution,
based upon the percentage remaining of the 20-
year period that commenced when the project
property was placed in service, shall be
refunded.
(2) Early work.--The Secretary may allow a grantee
subject to this subsection to engage in at-risk work
activities subsequent to the conclusion of final design
where the Secretary determines that such work
activities are reasonable and necessary.
* * * * * * *
Sec. 24405. Grant conditions
(a) Buy America.--(1) The Secretary of Transportation may
obligate an amount that may be appropriated to carry out this
chapter for a project only if the steel, iron, and manufactured
goods used in the project are produced in the United States.
(2) The Secretary of Transportation may waive paragraph (1)
of this subsection if the Secretary finds that--
(A) applying paragraph (1) would be inconsistent with
the public interest;
(B) the steel, iron, and goods produced in the United
States are not produced in a sufficient and reasonably
available amount or are not of a satisfactory quality;
(C) rolling stock or power train equipment cannot be
bought and delivered in the United States within a
reasonable time; or
(D) including domestic material will increase the
cost of the overall project by more than 25 percent.
(3) For purposes of this subsection, in calculating the
components' costs, labor costs involved in final assembly shall
not be included in the calculation.
(4) If the Secretary determines that it is necessary to waive
the application of paragraph (1) based on a finding under
paragraph (2), the Secretary shall, before the date on which
such finding takes effect--
(A) publish in the Federal Register a detailed
written justification as to why the waiver is needed;
and
(B) provide notice of such finding and an opportunity
for public comment on such finding for a reasonable
period of time not to exceed [15 days] 30 days.
(5) Not later than December 31, 2012, the Secretary shall
submit to the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report on any
waivers granted under paragraph (2).
(6) The Secretary of Transportation may not make a waiver
under paragraph (2) of this subsection for goods produced in a
foreign country if the Secretary, in consultation with the
United States Trade Representative, decides that the government
of that foreign country--
(A) has an agreement with the United States
Government under which the Secretary has waived the
requirement of this subsection; and
(B) has violated the agreement by discriminating
against goods to which this subsection applies that are
produced in the United States and to which the
agreement applies.
(7) A person is ineligible to receive a contract or
subcontract made with amounts authorized under this chapter if
a court or department, agency, or instrumentality of the
Government decides the person intentionally--
(A) affixed a `Made in America' label, or a label
with an inscription having the same meaning, to goods
sold in or shipped to the United States that are used
in a project to which this subsection applies but not
produced in the United States; or
(B) represented that goods described in subparagraph
(A) of this paragraph were produced in the United
States.
(8) The Secretary may not impose any limitation on assistance
provided under this chapter that restricts a State from
imposing more stringent requirements than this subsection on
the use of articles, materials, and supplies mined, produced,
or manufactured in foreign countries in projects carried out
with that assistance or restricts a recipient of that
assistance from complying with those State-imposed
requirements.
(9) The Secretary may allow a manufacturer or supplier of
steel, iron, or manufactured goods to correct after bid opening
any certification of noncompliance or failure to properly
complete the certification (but not including failure to sign
the certification) under this subsection if such manufacturer
or supplier attests under penalty of perjury that such
manufacturer or supplier submitted an incorrect certification
as a result of an inadvertent or clerical error. The burden of
establishing inadvertent or clerical error is on the
manufacturer or supplier.
(10) A party adversely affected by an agency action under
this subsection shall have the right to seek review under
section 702 of title 5.
(11) The requirements of this subsection shall only apply to
projects for which the costs exceed $100,000.
(12) Not later than 1 year after the date of enactment of the
Passenger Rail Reform and Investment Act of 2015, and annually
thereafter, the Secretary shall transmit to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House of
Representatives a report listing any waiver issued under this
section during the preceding year.
(b) Operators Deemed Rail Carriers and Employers for Certain
Purposes.--A person that conducts rail operations over rail
infrastructure constructed or improved with funding provided in
whole or in part in a grant made under this chapter shall be
considered a rail carrier as defined in section 10102(5) of
this title for purposes of this title and any other statute
that adopts that definition or in which that definition
applies, including--
(1) the Railroad Retirement Act of 1974 (45 U.S.C.
231 et seq.);
(2) the Railway Labor Act (43 U.S.C. 151 et seq.);
and
(3) the Railroad Unemployment Insurance Act (45
U.S.C. 351 et seq.).
(c) Grant Conditions.--The Secretary shall require as a
condition of making any grant under this chapter for a project
that uses rights- of-way owned by a railroad that--
(1) a written agreement exist between the applicant
and the railroad regarding such use and ownership,
including--
(A) any compensation for such use;
(B) assurances regarding the adequacy of
infrastructure capacity to accommodate both
existing and future freight and passenger
operations;
(C) an assurance by the railroad that
collective bargaining agreements with the
railroad's employees (including terms
regulating the contracting of work) will remain
in full force and effect according to their
terms for work performed by the railroad on the
railroad transportation corridor; and
(D) an assurance that an applicant complies
with liability requirements consistent with
section 28103 of this title; and
(2) the applicant agrees to comply with--
(A) the standards of section 24312 of this
title, as such section was in effect on
September 1, 2003, with respect to the project
in the same manner that Amtrak is required to
comply with those standards for construction
work financed under an agreement made under
section 24308(a) of this title; and
(B) the protective arrangements established
under section 504 of the Railroad
Revitalization and Regulatory Reform Act of
1976 (45 U.S.C. 836) with respect to employees
affected by actions taken in connection with
the project to be financed in whole or in part
by grants under this chapter.
(d) Replacement of Existing Intercity Passenger Rail
Service.--
(1) Collective bargaining agreement for intercity
passenger rail projects.--Any entity providing
intercity passenger railroad transportation that begins
operations after the date of enactment of this Act on a
project funded in whole or in part by grants made under
this chapter and replaces intercity rail passenger
service that was provided by Amtrak, unless such
service was provided solely by Amtrak to another
entity, as of such date shall enter into an agreement
with the authorized bargaining agent or agents for
adversely affected employees of the predecessor
provider that--
(A) gives each such qualified 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 3 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.
(2) Immediate replacement service.--
(A) Negotiations.--If the replacement of
preexisting intercity rail passenger service
occurs concurrent with or within a reasonable
time before the commencement of the replacing
entity's rail passenger service, the replacing
entity shall give written notice of its plan to
replace existing rail passenger service to the
authorized collective bargaining agent or
agents for the potentially adversely affected
employees of the predecessor provider at least
90 days before the date on which 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 (1). 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 (1) as described 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 seven 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 1 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 among the
matters set forth in subparagraphs (A) through
(D) of paragraph (1). The arbitrator shall be
guided by prevailing national standard rates of
pay, benefits, and working conditions for
comparable work. 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; all other
expenses shall be paid by the party incurring
them.
(3) Service commencement.--A replacing entity under
this subsection shall commence service only after an
agreement is entered into with respect to the matters
set forth in subparagraphs (A) through (D) of paragraph
(1) or the decision of the arbitrator has been
rendered.
(4) Subsequent replacement of service.--If the
replacement of existing rail passenger service takes
place within 3 years after the replacing entity
commences intercity passenger rail service, the
replacing entity and the collective bargaining agent or
agents for the adversely affected employees of the
predecessor provider shall enter into an agreement with
respect to the matters set forth in subparagraphs (A)
through (D) of paragraph (1). If the parties have not
entered into an agreement with respect to all such
matters within 60 days after the date on which the
replacing entity replaces the predecessor provider, the
parties shall select an arbitrator using the procedures
set forth in paragraph (2)(B), who shall, within 20
days after the commencement of the arbitration, conduct
a hearing and decide all unresolved issues. This
decision shall be final, binding, and conclusive upon
the parties.
(e) Inapplicability to Certain Rail Operations.--Nothing in
this section applies to--
(1) commuter rail passenger transportation (as
defined in section 24102(4) of this title) operations
of a State or local government authority (as those
terms are defined in section 5302(11) and (6),
respectively, of this title) eligible to receive
financial assistance under section 5307 of this title,
or to its contractor performing services in connection
with commuter rail passenger operations (as so
defined);
(2) the Alaska Railroad or its contractors; or
(3) Amtrak's access rights to railroad rights of way
and facilities under current law.
(f) Limitation.--No grants shall be provided under this
chapter for commuter rail passenger transportation, as defined
in section 24102(4) of this title.
* * * * * * *
Sec. 24407. Federal-State partnership for Northeast Corridor
rehabilitation and improvement
(a) In General.--The Secretary of Transportation shall
develop and implement a program for issuing grants to
applicants, on a competitive basis, for the purpose of
financing the capital projects included in the Northeast
Corridor Priority Project List developed under subsection (c).
(b) Definitions.--In this section, the following definitions
apply:
(1) Applicant.--The term ``applicant'' means a State
(including the District of Columbia), a group of
States, an Interstate Compact, or a public agency
established by one or more States and having
responsibility for providing intercity passenger or
commuter rail service.
(2) Major state-of-good-repair project.--The term
``major state-of-good-repair project'' means a capital
project primarily intended to replace, rehabilitate or
repair major Northeast Corridor infrastructure assets
utilized for providing intercity rail passenger
transportation, including tunnels, bridges, stations,
and other assets as determined by the Secretary.
(3) Improvement project.--The term ``improvement
project'' means a capital project primarily intended to
improve intercity passenger rail performance on the
Northeast Corridor, including reduced trip times,
increased train frequencies, higher operating speeds,
and other improvements as determined by the Secretary.
(c) Northeast Corridor Priority Project List.--The Northeast
Corridor Infrastructure and Operations Advisory Commission,
established under section 24905, shall develop and approve a
Northeast Corridor Priority Project List that shall include--
(1) a list of prioritized individual major state-of-
good-repair projects and improvement projects along the
Northeast Corridor that--
(A) can be completed based on--
(i) the funding authorized under
section 103(b) of the Passenger Rail
Reform and Investment Act of 2015;
(ii) any subsequent applicable
authorization in effect;
(iii) in the absence of such an
authorization, a 5-year funding amount
based on the most recent appropriation;
or
(iv) the requirements of subsection
(d); and
(B) are consistent with the Northeast
Corridor capital investment plan required under
section 24911(a);
(2) an identification of the applicant for each
individual project;
(3) an identification of the sources of non-Federal
matching funds for each project; and
(4) a description of the benefits each project will
bring to intercity rail passenger services.
(d) Use of Funds.--The Federal grants authorized under this
section shall be for no more than 50 percent of the net project
cost of the project involved.
(e) Applicability of Capital Grant Requirements.--Except as
specifically provided in this section, the use of any amounts
appropriated for grants under this section shall be subject to
the requirements of this chapter.
(f) Match Requirements.--No grants may be obligated to an
applicant under this section unless the applicant has
transmitted to the Secretary of Transportation a binding
written commitment to provide all amounts necessary for the
purpose of matching Federal contributions as required by this
section.
(g) Updates to List.--The Northeast Corridor Infrastructure
and Operations Advisory Commission shall revise the NEC
Priority Project List as necessary to reflect--
(1) any differences in the availability of Federal
funding from the levels assumed for purposes of
subsection (c)(1)(A) (i) and (ii);
(2) any elimination or addition of projects; and
(3) any reduction or increase in benefits to be
derived from a project.
(h) Availability.--Amounts appropriated for carrying out this
section shall remain available until expended.
(i) Savings Clause.--Nothing in this section shall supplant
the requirement of applicants to compensate Amtrak for the use
of Amtrak facilities or services pursuant to section 24905(c).
(j) Definition.--For purposes of this section, the term
``Northeast Corridor'' means the Northeast Corridor main line
between Boston, Massachusetts, and the District of Columbia,
and the Northeast Corridor branch lines connecting to
Harrisburg, Pennsylvania, Springfield, Massachusetts, and
Spuyten Duyvil, New York, and facilities and services used to
operate and maintain those lines.
* * * * * * *
CHAPTER 247--AMTRAK ROUTE SYSTEM
Sec.
24701. National rail passenger transportation system.
* * * * * * *
24712. State-supported routes.
* * * * * * *
Sec. 24706. Discontinuance
(a) Notice of Discontinuance.--(1) Except as provided in
subsection (b) of this section, at least 180 days before [a
discontinuance under section 24704 or or] discontinuing service
over a route, Amtrak shall give notice of the discontinuance in
the way Amtrak decides will give a State, a regional or local
authority, or another person the opportunity to agree to share
or assume the cost of any part of the train, route, or service
to be discontinued.
(2) Notice of the discontinuance under [section 24704 or]
paragraph (1) shall be posted in all stations served by the
train to be discontinued at least 14 days before the
discontinuance.
(b) Discontinuance for Lack of Appropriations.--(1) Amtrak
may discontinue service under [section 24704 or] subsection
(a)(1) during--
(A) the first month of a fiscal year if the
authorization of appropriations and the appropriations
for Amtrak are not enacted at least 90 days before the
beginning of the fiscal year; and
(B) the 30 days following enactment of an
appropriation for Amtrak or a rescission of an
appropriation.
(2) Amtrak shall notify each affected State or regional or
local transportation authority of a discontinuance under this
subsection as soon as possible after Amtrak decides to
discontinue the service.
(c) Applicability.--This section applies to all service over
routes provided by Amtrak, notwithstanding any provision of
section 24701 of this title or any other provision of this
title except section 24702(b).
* * * * * * *
[Sec. 24711. Alternate passenger rail service pilot program
[(a) In General.--Within 1 year after the date of enactment
of the Passenger Rail Investment and Improvement Act of 2008,
the Federal Railroad Administration shall complete a rulemaking
proceeding to develop a pilot program that--
[(1) permits a rail carrier or rail carriers that own
infrastructure over which Amtrak operates a passenger
rail service route described in subparagraph (B), (C),
or (D) of section 24102(5) or in section 24702 to
petition the Administration to be considered as a
passenger rail service provider over that route in lieu
of Amtrak for a period not to exceed 5 years after the
date of enactment of the Passenger Rail Investment and
Improvement Act of 2008;
[(2) requires the Administration to notify Amtrak
within 30 days after receiving a petition under
paragraph (1) and establish a deadline by which both
the petitioner and Amtrak would be required to submit a
bid to provide passenger rail service over the route to
which the petition relates;
[(3) requires that each bid describe how the bidder
would operate the route, what Amtrak passenger
equipment would be needed, if any, what sources of non-
Federal funding the bidder would use, including any
State subsidy, among other things;
[(4) requires the Administration to select winning
bidders by evaluating the bids against the financial
and performance metrics developed under section 207 of
the Passenger Rail Investment and Improvement Act of
2008 and to give preference in awarding contracts to
bidders seeking to operate routes that have been
identified as one of the five worst performing Amtrak
routes under section 24710;
[(5) requires the Administration to execute a
contract within a specified, limited time after the
deadline established under paragraph (2) and award to
the winning bidder--
[(A) the right and obligation to provide
passenger rail service over that route subject
to such performance standards as the
Administration may require, consistent with the
standards developed under section 207 of the
Passenger Rail Investment and Improvement Act
of 2008; and
[(B) an operating subsidy--
[(i) for the first year at a level
not in excess of the level in effect
during the fiscal year preceding the
fiscal year in which the petition was
received, adjusted for inflation;
[(ii) for any subsequent years at
such level, adjusted for inflation; and
[(6) requires that each bid contain a staffing plan
describing the number of employees needed to operate
the service, the job assignments and requirements, and
the terms of work for prospective and current employees
of the bidder for the service outlined in the bid, and
such staffing plan be made available by the winning
bidder to the public after the bid award.
[(b) Route Limitations.--The Administration may not make the
program available with respect to more than 2 Amtrak intercity
passenger rail routes.
[(c) Performance Standards; Access to Facilities;
Employees.--If the Administration awards the right and
obligation to provide passenger rail service over a route under
the program to a rail carrier or rail carriers--
[(1) it shall execute a contract with the rail
carrier or rail carriers for rail passenger operations
on that route that conditions the operating and subsidy
rights upon--
[(A) the service provider continuing to
provide passenger rail service on the route
that is no less frequent, nor over a shorter
distance, than Amtrak provided on that route
before the award; and
[(B) the service provider's compliance with
the minimum standards established under section
207 of the Passenger Rail Investment and
Improvement Act of 2008 and such additional
performance standards as the Administration may
establish;
[(2) it shall, if the award is made to a rail carrier
other than Amtrak, require Amtrak to provide access to
its reservation system, stations, and facilities
directly related to operations to any rail carrier or
rail carriers awarded a contract under this section, in
accordance with section 217 of that Act, necessary to
carry out the purposes of this section;
[(3) the employees of any person used by a rail
carrier or rail carriers (as defined in section
10102(5) of this title) in the operation of a route
under this section shall be considered an employee of
that carrier or carriers and subject to the applicable
Federal laws and regulations governing similar crafts
or classes of employees of Amtrak, including provisions
under section 121 of the Amtrak Reform and
Accountability Act of 1997 relating to employees that
provide food and beverage service; and
[(4) the winning bidder shall provide hiring
preference to qualified Amtrak employees displaced by
the award of the bid, consistent with the staffing plan
submitted by the bidder and shall be subject to the
grant conditions under section 24405 of this title.
[(d) Cessation of Service.--If a rail carrier or rail
carriers awarded a route under this section cease to operate
the service or fail to fulfill their obligations under the
contract required under subsection (c), the Administrator, in
collaboration with the Surface Transportation Board, shall take
any necessary action consistent with this title to enforce the
contract and ensure the continued provision of service,
including the installment of an interim service provider and
re-bidding the contract to operate the service. The entity
providing service shall either be Amtrak or a rail carrier
defined in subsection (a)(1).
[(e) Adequate Resources.--Before taking any action allowed
under this section, the Secretary shall certify that the
Administrator has sufficient resources that are adequate to
undertake the program established under this section.]
Sec. 24711. Alternate passenger rail service pilot program
(a) In General.--Not later than 1 year after the date of
enactment of the Passenger Rail Reform and Investment Act of
2015, the Federal Railroad Administration shall complete a
rulemaking proceeding to develop a pilot program that--
(1) permits a rail carrier or rail carriers that own
infrastructure over which Amtrak operates a passenger
rail service route described in subparagraph (B), (C),
or (D) of section 24102(7) or in section 24702(a) to
petition the Federal Railroad Administration to be
considered as a passenger rail service provider over
that route in lieu of Amtrak for an operations period
of 5 years;
(2) requires the Federal Railroad Administration to
notify Amtrak within 30 days after receiving a petition
under paragraph (1) and establish a deadline by which
both the petitioner and Amtrak would be required to
submit a bid to provide passenger rail service over the
route to which the petition relates;
(3) requires that each bid describe how the bidder
would operate the route, what Amtrak passenger
equipment would be needed, if any, and what sources of
non-Federal funding the bidder would use, including any
State subsidy, among other things;
(4) requires the Federal Railroad Administration to
execute a contract within a specified, limited time
after the deadline established under paragraph (2) and
award to the winning bidder--
(A) the right and obligation to provide
passenger rail service over that route subject
to such performance standards as the Federal
Railroad Administration may require; and
(B) an operating subsidy--
(i) for the first year at a level not
in excess of 90 percent of the level in
effect for that specific route during
the fiscal year preceding the fiscal
year in which the petition was
received, adjusted for inflation; and
(ii) for any subsequent years at the
level calculated under clause (i),
adjusted for inflation; and
(5) requires that each bid contain a staffing plan
describing the number of employees needed to operate
the service, the job assignments and requirements, and
the terms of work for prospective and current employees
of the bidder for the service outlined in the bid, and
that such staffing plan be made available by the
winning bidder to the public after the bid award.
(b) Route Limitations.--The Federal Railroad Administration
may not make the program available with respect to more than 2
Amtrak intercity passenger rail routes.
(c) Performance Standards; Access to Facilities; Employees.--
If the Federal Railroad Administration awards the right and
obligation to provide passenger rail service over a route under
this section to a rail carrier or rail carriers--
(1) it shall execute a contract with the rail carrier
or rail carriers for rail passenger operations on that
route that conditions the operating and subsidy rights
on--
(A) the service provider continuing to
provide passenger rail service on the route
that is no less frequent, nor over a shorter
distance, than Amtrak provided on that route
before the award; and
(B) the service provider's compliance with
the standards established under subsection
(a)(4)(A), and such additional performance
standards as the Administration may establish;
(2) it shall, if the award is made to a rail carrier
other than Amtrak, require Amtrak to provide access to
its reservation system, stations, and facilities
directly related to operations to any rail carrier or
rail carriers awarded a contract under this section, in
accordance with subsection (d), necessary to carry out
the purposes of this section;
(3) an employee of any person used by such rail
carrier or rail carriers in the operation of a route
under this section shall be considered an employee of
that carrier or carriers and subject to the applicable
Federal laws and regulations governing similar crafts
or classes of employees of Amtrak, including provisions
under section 121 of the Amtrak Reform and
Accountability Act of 1997 (49 U.S.C. 4312 note)
relating to employees that provide food and beverage
service; and
(4) the winning bidder shall provide hiring
preference to qualified Amtrak employees displaced by
the award of the bid, consistent with the staffing plan
submitted by the bidder, and shall be subject to the
grant conditions under section 24405 of this title.
(d) Disputes.--If Amtrak and the rail carrier or rail
carriers awarded a route under this section cannot agree upon
terms to carry out subsection (c)(2), and the Surface
Transportation Board finds that access to Amtrak's facilities
or equipment, or the provision of services by Amtrak, is
necessary to carry out subsection (c)(2) and that the operation
of Amtrak's other services will not be impaired thereby, the
Surface Transportation Board shall, within 120 days after
submission of the dispute, issue an order that the facilities
and equipment be made available, and that services be provided,
by Amtrak, and shall determine reasonable compensation,
liability, and other terms for use of the facilities and
equipment and provision of the services.
(e) Cessation of Service.--If a rail carrier or rail carriers
awarded a route under this section cease to operate the service
or fail to fulfill their obligations under the contract
required under subsection (c), the Federal Railroad
Administration, in collaboration with the Surface
Transportation Board, shall take any necessary action
consistent with this title to enforce the contract and ensure
the continued provision of service, including the installment
of an interim service provider and rebidding the contract to
operate the service. The entity providing service shall either
be Amtrak or a rail carrier defined in subsection (a)(1).
(f) Adequate Resources.--Before taking any action allowed
under this section, the Secretary shall certify that the
Federal Railroad Administration has sufficient resources
appropriated under section 101(b) of Passenger Rail Reform and
Investment Act of 2015, or any subsequent appropriation, for
that purpose that are adequate to undertake the program
established under this section.
(g) Budget Authority.--The Secretary of Transportation may
provide to a winning bidder selected under this section
appropriations authorized under sections 101(b) of the
Passenger Rail Reform and Investment Act of 2015, or any
subsequent appropriation for the same purposes, necessary to
cover the operating subsidy described in subsection (a)(4)(B).
Sec. 24712. State-supported routes
(a) State-Supported Route Advisory Committee.--
(1) Establishment.--Not later than 90 days after the
date of enactment of the Passenger Rail Reform and
Investment Act of 2015, the Secretary of Transportation
shall establish a State-Supported Route Advisory
Committee to promote mutual cooperation and planning
pertaining to the rail operations and related
activities of trains operated on State-supported routes
and to further implement section 209 of the Passenger
Rail Investment and Improvement Act of 2008 (49 U.S.C.
24101 note).
(2) Membership.--The Committee shall consist of
representatives of--
(A) Amtrak;
(B) the Department of Transportation,
including the Federal Railroad Administration;
and
(C) 7 States that sponsor State-supported
routes, selected by the Administrator of the
Federal Railroad Administration on the basis of
appropriate expertise and geographic balance,
and in a manner that ensures that all
appropriate States are represented periodically
on the Committee.
(3) Distribution of membership.--The membership
belonging to any of the groups described in each
individual subparagraph of paragraph (2) shall not
constitute a majority of the Committee's memberships.
(4) Meetings; rules and procedures.--The Committee
shall establish a schedule and location for convening
meetings, but shall meet no less than 2 times every
fiscal year. The Committee shall develop rules and
procedures to govern the Committee's proceedings.
(b) Cost, Service, and Ridership Forecasts.--
(1) In general.--Not later than January 31, 2016, and
annually thereafter, Amtrak shall transmit to each
State that sponsors a State-supported route, and to the
Committee on Transportation and Infrastructure and the
Committee on Appropriations of the House of
Representatives and the Committee on Commerce, Science,
and Transportation and the Committee on Appropriations
of the Senate--
(A) a final statement of costs, revenues,
ridership, and other information determined
appropriate by the Committee established under
subsection (a), pertaining to each such route
for the prior fiscal year; and
(B) a cost, service, and ridership forecast
for each such route for the upcoming fiscal
year, developed pursuant to the methodology
established under section 209 of the Passenger
Rail Investment and Improvement Act of 2008 (49
U.S.C. 24101 note).
(2) Exception.--The Committee may establish a
different deadline than is required under paragraph (1)
for submission of final financial statements and cost,
service, and ridership forecasts.
(3) Quarterly updates.--Beginning in 2016, and each
year thereafter, Amtrak shall transmit to each State
that sponsors a State-supported route quarterly updates
of the cost, service, and ridership forecast described
in paragraph (1)(B) to enable States to pace costs
against State budgets, plan effectively, and address
unexpected changes in costs in a timely manner, on the
following dates:
(A) April 30, for the period encompassing
January through March of such year.
(B) July 31, for the period encompassing
April through June of such year.
(C) October 31, for the period encompassing
July through September of such year.
(c) Invoices.--Not later than February 15, 2016, and monthly
thereafter, Amtrak shall provide to each State that sponsors a
State-supported route a monthly invoice of the cost of
operating such route, including fixed costs and third-party
costs.
(d) Dispute Resolution.--
(1) Request for expedited resolution.--If a dispute
arises with respect to a forecast developed under
subsection (b), an invoice developed under subsection
(c), or the terms of a contract for operation of a
State-supported route negotiated between Amtrak and a
State that sponsors the route, either Amtrak or the
State may request that the Surface Transportation Board
conduct expedited dispute resolution under this
subsection.
(2) Procedures.--The Surface Transportation Board
shall establish procedures for expedited resolution of
disputes brought before it under this subsection.
(3) Binding effect.--The decision of the Surface
Transportation Board under this subsection shall be
binding on the parties to the dispute.
(e) FRA Assistance.--The Federal Railroad Administration may
provide assistance to the parties in the course of negotiations
for a contract for operation of a State-supported route.
(f) Performance Metrics.--In negotiating a contract for
operation of a State-supported route, Amtrak and the State or
States that sponsor the route shall consider including
provisions that provide penalties and incentives for
performance based on metrics that take into account only those
factors within the control of Amtrak or the State or States.
(g) Definition of State.--In this section, the term ``State''
means each of the 50 States and the District of Columbia.
* * * * * * *
CHAPTER 249--NORTHEAST CORRIDOR IMPROVEMENT PROGRAM
Sec.
24901. Definitions.
* * * * * * *
24911. Northeast Corridor planning.
* * * * * * *
Sec. 24911. Northeast Corridor planning
(a) Northeast Corridor Capital Investment Plan.--
(1) Requirement.--Not later than 12 months after the
date of enactment of the Passenger Rail Reform and
Investment Act of 2015, and annually thereafter, the
Northeast Corridor Infrastructure and Operations
Advisory Commission established under section 24905
(referred to in this section as the ``Commission'')
shall develop a capital investment plan for the
Northeast Corridor main line between Boston,
Massachusetts, and the District of Columbia, and the
Northeast Corridor branch lines connecting to
Harrisburg, Pennsylvania, Springfield, Massachusetts,
and Spuyten Duyvil, New York, and facilities and
services used to operate and maintain those lines.
(2) Contents.--Each such plan shall--
(A) be developed to establish a coordinated
approach to capital spending on the Northeast
Corridor;
(B) cover a period of 5 fiscal years,
beginning with the first fiscal year after the
date of the plan;
(C) notwithstanding section 24902(b),
prioritize projects and investments along the
Northeast Corridor based on--
(i) the anticipated benefits and
costs of projects;
(ii) the anticipated Federal and non-
Federal funding available; and
(iii) the information contained in
the Northeast Corridor asset management
plans required under subsection (b),
once available;
(D) ensure coordination and optimization
across the entire Northeast Corridor and among
the various owners and users;
(E) include a financial plan for the
investment period that--
(i) categorizes each capital project
as being primarily associated with--
(I) normalized capital
replacement;
(II) replacement,
rehabilitation, or repair of
Northeast Corridor
infrastructure assets,
including tunnels, bridges,
stations, and other assets; or
(III) improvement of train
performance on the Northeast
Corridor, including reduced
trip times, increased train
frequencies, higher operating
speeds, and other improvements;
(ii) identifies the anticipated
funding source and financing method for
each capital project described in
subclauses (II) and (III) of clause
(i);
(iii) describes the anticipated
outcomes of each project, including--
(I) an assessment of the
potential effect on passenger
accessibility, operations,
safety, reliability, and
resiliency, and on the ability
of infrastructure owners and
operators to meet regulatory
requirements should the project
not be funded; and
(II) an assessment of the
benefits and costs;
(iv) identifies the extent to which
the capital assets are or will be
jointly used by intercity passenger
rail service and other users, and the
proportionate share of that joint
usage; and
(v) for projects that are expected to
be fully or partially funded through
Federal financial assistance,
identifies the most appropriate public
agency or entity to receive those funds
and implement each capital project.
(3) Additional contents.--Any plan developed under
paragraph (1) after the publication by the Secretary of
Transportation of the Northeast Corridor service
development plan shall also--
(A) be developed to identify, prioritize, and
phase the implementation of projects necessary
to achieve the goals and findings contained in
such Northeast Corridor service development
plan;
(B) allow for flexibility to change
prioritization and programs based upon the
availability of Federal and non-Federal
funding;
(C) inform the Secretary in developing
recommendations for Congress on Federal funding
needs for the Northeast Corridor and any
corresponding Federal investments in the
respective capital programs for Northeast
Corridor infrastructure owners and users; and
(D) capture the network-level anticipated
outcomes associated with plan implementation,
including the anticipated effect on passenger
accessibility, operations, safety, reliability,
and resiliency.
(b) Northeast Corridor Asset Management Plans.--
(1) Contents.--Amtrak, and States and public
transportation entities that own infrastructure that
supports or provides for intercity rail passenger
transportation on the Northeast Corridor, shall develop
and update as necessary Northeast Corridor asset
management plans for the Northeast Corridor main line
between Boston, Massachusetts, and the District of
Columbia, and the Northeast Corridor branch lines
connecting to Harrisburg, Pennsylvania, Springfield,
Massachusetts, and Spuyten Duyvil, New York, and
facilities and services used to operate and maintain
those lines, that--
(A) are consistent with the Federal Transit
Administration process, as authorized under
section 5326, when implemented; and
(B) include, at a minimum--
(i) an inventory of all capital
assets owned by the developer of the
plan;
(ii) an assessment of the condition
of each of those assets;
(iii) a description of how the
condition of each asset has changed
since the previous iteration of the
plan; and
(iv) a description of the necessary
resources and processes for bringing or
maintaining those assets in a state-of-
good repair, including decision support
tools and investment prioritization
methodologies.
(2) Transmittal to commission.--Not later than 12
months after the date of enactment of the Passenger
Rail Reform and Investment Act of 2015, each entity
described in paragraph (1) shall transmit to the
Commission a plan developed under paragraph (1). Any
updates to such plan shall also be transmitted to the
Commission.
(c) Northeast Corridor Service Development Plan Updates.--The
Commission shall, at least once every 10 years, update the
Northeast Corridor service development plan.
* * * * * * *
----------
PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2008
* * * * * * *
DIVISION B--AMTRAK
SEC. 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This division may be cited as the
``Passenger Rail Investment and Improvement Act of 2008''.
(b) Table of Contents.--The table of contents for this
division is as follows:
* * * * * * *
TITLE II--AMTRAK REFORM AND OPERATIONAL IMPROVEMENTS
Sec. 201. National railroad passenger transportation system defined.
* * * * * * *
[Sec. 204. Development of 5-year financial plan.]
* * * * * * *
[Sec. 206. Establishment of grant process.]
* * * * * * *
[Sec. 211. Northeast Corridor state-of-good-repair plan.]
* * * * * * *
TITLE II--AMTRAK REFORM AND OPERATIONAL IMPROVEMENTS
* * * * * * *
[SEC. 204. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.
[(a) Development of 5-Year Financial Plan.--The Amtrak Board
of Directors shall submit an annual budget and business plan
for Amtrak, and a 5-year financial plan for the fiscal year to
which that budget and business plan relate and the subsequent 4
years, prepared in accordance with this section, to the
Secretary and the Inspector General of the Department of
Transportation no later than--
[(1) the first day of each fiscal year beginning
after the date of enactment of this Act; or
[(2) the date that is 60 days after the date of
enactment of an appropriations Act for the fiscal year,
if later.
[(b) Contents of 5-Year Financial Plan.--The 5-year financial
plan for Amtrak shall include, at a minimum--
[(1) all projected revenues and expenditures for
Amtrak, including governmental funding sources;
[(2) projected ridership levels for all Amtrak
passenger operations;
[(3) revenue and expenditure forecasts for non-
passenger operations;
[(4) capital funding requirements and expenditures
necessary to maintain passenger service in order to
accommodate predicted ridership levels and predicted
sources of capital funding;
[(5) operational funding needs, if any, to maintain
current and projected levels of passenger service,
including State-supported routes and predicted funding
sources;
[(6) projected capital and operating requirements,
ridership, and revenue for any new passenger service
operations or service expansions;
[(7) an assessment of the continuing financial
stability of Amtrak, as indicated by factors such as
anticipated Federal funding of capital and operating
costs, Amtrak's ability to efficiently recruit, retain,
and manage its workforce, and Amtrak's ability to
effectively provide passenger rail service;
[(8) estimates of long-term and short-term debt and
associated principal and interest payments (both
current and anticipated);
[(9) annual cash flow forecasts;
[(10) a statement describing methods of estimation
and significant assumptions;
[(11) specific measures that demonstrate measurable
improvement year over year in the financial results of
Amtrak's operations;
[(12) prior fiscal year and projected operating
ratio, cash operating loss, and cash operating loss per
passenger on a route, business line, and corporate
basis;
[(13) prior fiscal year and projected specific costs
and savings estimates resulting from reform
initiatives;
[(14) prior fiscal year and projected labor
productivity statistics on a route, business line, and
corporate basis;
[(15) prior fiscal year and projected equipment
reliability statistics; and
[(16) capital and operating expenditures for
anticipated security needs.
[(c) Standards To Promote Financial Stability.--In meeting
the requirements of subsection (b), Amtrak shall--
[(1) apply sound budgetary practices, including
reducing costs and other expenditures, improving
productivity, increasing revenues, or combinations of
such practices;
[(2) use the categories specified in the financial
accounting and reporting system developed under section
203 when preparing its 5-year financial plan; and
[(3) ensure that the plan is consistent with the
authorizations of appropriations under title I of this
division.
[(d) Review by DOT Inspector General.--Within 60 days after
their submission by Amtrak, the Inspector General of the
Department of Transportation shall review the annual budget and
the 5-year financial plans prepared by Amtrak under this
section to determine whether they meet the requirements of
subsection (b) and shall furnish any relevant findings to the
Committee on Transportation and Infrastructure of the House of
Representatives, the Committee on Appropriations of the House
of Representatives, the Committee on Commerce, Science, and
Transportation of the Senate, and the Committee on
Appropriations of the Senate.]
SEC. 205. RESTRUCTURING LONG-TERM DEBT AND CAPITAL LEASES.
(a) In General.--The Secretary of the Treasury, in
consultation with the Secretary and Amtrak, may make agreements
to restructure Amtrak's indebtedness [as of the date of
enactment of this Act], to the extent provided in advance in
appropriations Acts. [This authorization expires 2 years after
the date of enactment of this Act.]
(b) Debt Restructuring.--[The Secretary of the Treasury, in
consultation] To the extent amounts are provided in advance in
appropriations Acts, the Secretary of the Treasury, in
consultation with the Secretary and Amtrak, shall enter into
negotiations with the holders of Amtrak debt, including leases,
outstanding [as of the date of enactment of this Act] for the
purpose of restructuring (including repayment) and repaying
that debt. The Secretary of the Treasury may secure agreements
for restructuring or repayment on such terms as the Secretary
of the Treasury deems favorable to the interests of the United
States Government.
(c) Criteria.--In restructuring Amtrak's indebtedness, the
Secretary of the Treasury and Amtrak--
(1) shall take into consideration repayment costs,
the term of any loan or loans, and market conditions;
and
(2) shall ensure that the restructuring results in
significant savings to Amtrak and the United States
Government.
(d) Payment of Renegotiated Debt.--If the criteria under
subsection (c) are met, the Secretary of the Treasury may
assume or repay the restructured debt, as appropriate, to the
extent provided in advance in appropriations Acts.
(e) Amtrak Principal and Interest Payments.--
(1) Principal on debt service.--Unless the Secretary
of the Treasury makes sufficient payments to creditors
under subsection (d) so that Amtrak is required to make
no payments to creditors in a fiscal year, the
Secretary shall use funds authorized [by section 102 of
this division] for the use of Amtrak for retirement of
principal or payment of interest on loans for capital
equipment, or capital leases.
(2) Reductions in authorization levels.--Whenever
action taken by the Secretary of the Treasury under
subsection (a) results in reductions in amounts of
principal or interest that Amtrak must service on
existing debt, the corresponding amounts authorized [by
section 102] for Amtrak shall be reduced accordingly.
(f) Legal Effect of Payments Under This Section.--The payment
of principal and interest on secured debt, other than debt
assumed under subsection (d), with the proceeds of grants under
subsection (e) shall not--
(1) modify the extent or nature of any indebtedness
of Amtrak to the United States in existence [as 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.
(g) Secretary Approval.--Amtrak may not incur more debt after
the date of enactment of this Act without the express advance
approval of the Secretary.
(h) Report.--The Secretary of the Treasury shall transmit a
report to the Committee on Transportation and Infrastructure of
the House of Representatives, the Committee on Appropriations
of the House of Representatives, the Committee on Commerce,
Science, and Transportation of the Senate, and the Committee on
Appropriations of the Senate, by June 1, 2010--
(1) describing in detail any agreements to
restructure the Amtrak debt; and
(2) providing an estimate of the savings to Amtrak
and the United States Government.
[SEC. 206. ESTABLISHMENT OF GRANT PROCESS.
[(a) Grant Requests.--Amtrak shall submit grant requests
(including a schedule for the disbursement of funds),
consistent with the requirements of this division, to the
Secretary for funds authorized to be appropriated to the
Secretary for the use of Amtrak under sections 101(a), (b), and
(c), 102, 219(b), and 302.
[(b) Procedures for Grant Requests.--The Secretary shall
establish substantive and procedural requirements, including
schedules, for grant requests under this section not later than
30 days after the date of enactment of this Act and shall
transmit copies of such requirements and schedules to the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate. As part of those requirements,
the Secretary shall require, at a minimum, that Amtrak deposit
grant funds, consistent with the appropriated amounts for each
area of expenditure in a given fiscal year, in the following 2
accounts:
[(1) The Amtrak Operating account.
[(2) The Amtrak General Capital account.
Amtrak may not transfer such funds to another account or expend
such funds for any purpose other than the purposes covered by
the account in which the funds are deposited without approval
by the Secretary.
[(c) Review and Approval.--
[(1) 30-day approval process The Secretary shall
complete the review of a grant request (including the
disbursement schedule) and approve or disapprove the
request within 30 days after the date on which Amtrak
submits the grant request. If the Secretary disapproves
the request or determines that the request is
incomplete or deficient, the Secretary shall include
the reason for disapproval or the incomplete items or
deficiencies in a notice to Amtrak.
[(2) 15-day modification period Within 15 days after
receiving notification from the Secretary under the
preceding sentence, Amtrak shall submit a modified
request for the Secretary's review.
[(3) Revised requests Within 15 days after receiving
a modified request from Amtrak, the Secretary shall
either approve the modified request, or, if the
Secretary finds that the request is still incomplete or
deficient, the Secretary shall identify in writing to
the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate the
remaining deficiencies and recommend a process for
resolving the outstanding portions of the request.]
* * * * * * *
[SEC. 208. METHODOLOGIES FOR AMTRAK ROUTE AND SERVICE PLANNING
DECISIONS.
[(a) Methodology Development.--Within 180 days after the date
of enactment of this Act, the Federal Railroad Administration
shall obtain the services of a qualified independent entity to
develop and recommend objective methodologies for Amtrak to use
in determining what intercity passenger routes and services it
will provide, including the establishment of new routes, the
elimination of existing routes, and the contraction or
expansion of services or frequencies over such routes. In
developing such methodologies, the entity shall consider--
[(1) the current or expected performance and service
quality of intercity passenger train operations,
including cost recovery, on-time performance and
minutes of delay, ridership, on-board services,
stations, facilities, equipment, and other services;
[(2) connectivity of a route with other routes;
[(3) the transportation needs of communities and
populations that are not well served by intercity
passenger rail service or by other forms of intercity
transportation;
[(4) Amtrak's and other major intercity passenger
rail service providers in other countries'
methodologies for determining intercity passenger rail
routes and services; and
[(5) the views of the States and other interested
parties.
[(b) Submittal to Congress.--Within 1 year after the date of
enactment of this Act, the entity shall submit recommendations
developed under subsection (a) to Amtrak, the Committee on
Transportation and Infrastructure of the House of
Representatives, and the Committee on Commerce, Science, and
Transportation of the Senate.
[(c) Consideration of Recommendations.--Within 90 days after
receiving the recommendations developed under subsection (a) by
the entity, the Amtrak Board of Directors shall consider the
adoption of those recommendations. The Board shall transmit a
report to the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate explaining its
reasons for adopting or not adopting the recommendations.]
SEC. 208. METHODOLOGIES FOR AMTRAK ROUTE AND SERVICE PLANNING
DECISIONS.
(a) Methodology Development.--Not later than 180 days after
the date of enactment of the Passenger Rail Reform and
Investment Act of 2015, as a condition of receiving a grant
under section 101 of such Act, Amtrak shall obtain the services
of an independent entity to develop and recommend objective
methodologies for Amtrak to use in determining what intercity
rail passenger transportation routes and services it should
provide, including the establishment of new routes, the
elimination of existing routes, and the contraction or
expansion of services or frequencies over such routes.
(b) Considerations.--Amtrak shall require the entity, in
developing the methodologies described in subsection (a), to
consider--
(1) the current and expected performance and service
quality of intercity rail passenger transportation
operations, including cost recovery, on-time
performance, ridership, on-board services, stations,
facilities, equipment, and other services;
(2) connectivity of a route with other routes;
(3) the transportation needs of communities and
populations that are not well served by intercity rail
passenger transportation service or by other forms of
intercity transportation;
(4) the methodologies of Amtrak and major intercity
rail passenger transportation service providers in
other countries for determining intercity passenger
rail routes and services;
(5) the views of States, rail carriers that own
infrastructure over which Amtrak operates, Amtrak
employee representatives, and other interested parties;
and
(6) the funding levels that will be available under
authorization levels that have been enacted into law.
(c) Recommendations.--Not later than 1 year after the date of
enactment of the Passenger Rail Reform and Investment Act of
2015, Amtrak shall transmit to the Committee on Transportation
and Infrastructure of the House of Representatives, and the
Committee on Commerce, Science, and Transportation of the
Senate the recommendations developed by the entity pursuant to
subsection (a).
(d) Consideration of Recommendations.--Not later than 90 days
after transmitting the recommendations pursuant to subsection
(c), the Amtrak Board of Directors shall consider the adoption
of the recommendations and transmit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report containing an explanation
of any reasons for adopting or not adopting the
recommendations.
* * * * * * *
[SEC. 211. NORTHEAST CORRIDOR STATE-OF-GOOD-REPAIR PLAN.
[(a) In General.--Within 6 months after the date of enactment
of this Act, Amtrak, in consultation with the Secretary and the
States (including the District of Columbia) that make up the
Northeast Corridor (as defined in section 24102 of title 49,
United States Code), shall prepare a capital spending plan for
capital projects required to return the railroad right-of-way
(including track, signals, and auxiliary structures),
facilities, stations, and equipment, of the Northeast Corridor
main line to a state-of-good-repair by the end of fiscal year
2018, consistent with the funding levels authorized in this
division, and shall submit the plan to the Secretary.
[(b) Review and Approval by the Secretary.--
[(1) 60-day approval process.--The Secretary shall
complete the review of the capital spending plan and
approve or disapprove the plan within 60 days after the
date on which Amtrak submits the plan. During review,
the Secretary may seek comments from the Commission
established under section 24905 of title 49, United
States Code, and other Northeast Corridor users
regarding the plan. If the Secretary disapproves the
plan or determines that the plan is incomplete or
deficient, the Secretary shall include the reason for
disapproval or the incomplete items or deficiencies in
a notice to Amtrak.
[(2) 15-day modification period.--Within 15 days
after receiving notification from the Secretary under
paragraph (1), Amtrak shall submit a modified plan for
the Secretary's review.
[(3) Revised requests.--Within 15 days after
receiving a modified plan from Amtrak, the Secretary
shall either approve the modified plan, or, if the
Secretary finds that the plan is still incomplete or
deficient, the Secretary shall identify in writing to
the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate the
remaining deficiencies and recommend a process for
resolving the outstanding portions of the plan.
[(c) Plan Updates.--The plan shall be updated at least
annually and the Secretary shall review and approve such
updates, in accordance with the procedures described in
subsection (b).
[(d) Grants.--The Secretary shall make grants to Amtrak with
funds authorized by section 101(c) for Northeast Corridor
capital investments contained within the capital spending plan
prepared by Amtrak and approved by the Secretary.
[(e) Oversight.--Using the funds authorized by section
101(d), the Secretary shall review Amtrak's capital
expenditures funded by this section to ensure that such
expenditures are consistent with the capital spending plan and
that Amtrak is providing adequate project management oversight
and fiscal controls.
[(f) Eligibility of Expenditures.--The Federal share of
expenditures for capital improvements under this section may
not exceed 100 percent.]
* * * * * * *
SEC. 217. ACCESS TO AMTRAK EQUIPMENT AND SERVICES.
If a State desires to select or selects an entity other than
Amtrak to provide services required for the operation of an
intercity passenger train route described in section
[24102(5)(D)] 24102(7)(D) or 24702 of title 49, United States
Code, the State may make an agreement with Amtrak to use
facilities and equipment of, or have services provided by,
Amtrak under terms agreed to by the State and Amtrak to enable
the State to utilize an entity other than Amtrak to provide
services required for operation of the route. If the parties
cannot agree upon terms, and the Surface Transportation Board
finds that access to Amtrak's facilities or equipment, or the
provision of services by Amtrak, is necessary to carry out this
provision and that the operation of Amtrak's other services
will not be impaired thereby, the Surface Transportation Board
shall, within 120 days after submission of the dispute, issue
an order that the facilities and equipment be made available,
and that services be provided, by Amtrak, and shall determine
reasonable compensation, liability, and other terms for use of
the facilities and equipment and provision of the services.
Compensation shall be determined, as appropriate, in accordance
with the methodology established pursuant to section 209 of
this division, if available.
* * * * * * *
TITLE III--INTERCITY PASSENGER RAIL POLICY
* * * * * * *
SEC. 305. NEXT GENERATION CORRIDOR TRAIN EQUIPMENT POOL.
(a) In General.--Within 180 days after the date of enactment
of this Act, Amtrak shall establish a Next Generation Corridor
Equipment Pool Committee, comprised of representatives of
Amtrak, the Federal Railroad Administration, host freight
railroad companies, passenger railroad equipment manufacturers,
nonprofit organizations representing employees who perform
overhaul and maintenance of passenger railroad equipment,
interested States, and, as appropriate, other passenger
railroad operators. The purpose of the Committee shall be to
design, develop specifications for, and procure standardized
next-generation corridor equipment.
(b) Functions.--The Committee may--
(1) determine the number of different types of
equipment required, taking into account variations in
operational needs and corridor infrastructure;
(2) establish a pool of equipment to be used on
corridor routes funded by participating States; and
(3) subject to agreements between Amtrak and States,
utilize services provided by Amtrak to design, maintain
and remanufacture equipment.
(c) Cooperative Agreements.--Amtrak and States participating
in the Committee may enter into agreements for the funding,
procurement, remanufacture, ownership, and management of
corridor equipment, including equipment currently owned or
leased by Amtrak and next-generation corridor equipment
acquired as a result of the Committee's actions[, and may
establish a corporation, which may be owned or jointly-owned by
Amtrak, participating States, or other entities, to perform
these functions].
(d) Funding.--In addition to the authorizations provided in
this section, capital projects to carry out the purposes of
this section shall be eligible for grants made pursuant to
chapter 244 of title 49, United States Code.
(e) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary $5,000,000 for fiscal year
2010, to remain available until expended, for grants to Amtrak
and States participating in the Next Generation Corridor Train
Equipment Pool Committee established under this section for the
purpose of designing, developing specifications for, and
initiating the procurement of an initial order of 1 or more
types of standardized next-generation corridor train equipment
[and establishing a jointly-owned corporation to manage that
equipment].
* * * * * * *
----------
RAILROAD REVITALIZATION AND REGULATORY REFORM ACT OF 1976
* * * * * * *
TITLE V--RAILROAD REHABILITATION AND IMPROVEMENT FINANCING
* * * * * * *
SEC. 502. DIRECT LOANS AND LOAN GUARANTEES.
(a) General Authority.--The Secretary shall provide direct
loans and loan guarantees to--
(1) State and local governments;
(2) interstate compacts consented to by Congress
under section 410(a) of the Amtrak Reform and
Accountability Act of 1997 (49 U.S.C. 24101 note);
(3) government sponsored authorities and
corporations;
(4) railroads;
(5) joint ventures that include at least one
railroad; and
(6) solely for the purpose of constructing a rail
connection between a plant or facility and a second
rail carrier, limited option rail freight shippers that
own or operate a plant or other facility that is served
by no more than a single railroad.
(b) Eligible Purposes.--
(1) In general.--Direct loans and loan guarantees
under this section shall be used to--
(A) acquire, improve, or rehabilitate
intermodal or rail equipment or facilities,
including track, components of track, bridges,
yards, buildings, and shops;
(B) refinance outstanding debt incurred for
the purposes described in subparagraph (A); or
(C) develop or establish new intermodal or
railroad facilities.
(2) Operating expenses not eligible.--Direct loans
and loan guarantees under this section shall not be
used for railroad operating expenses.
(c) Priority Projects.--In granting applications for direct
loans or guaranteed loans under this section, the Secretary
shall give priority to projects that--
(1) enhance public safety, including projects for the
installation of a positive train control (as defined in
section 20157(i) of title 49, United States Code)
system;
(2) enhance the environment;
(3) promote economic development;
(4) enable United States companies to be more
competitive in international markets;
(5) are endorsed by the plans prepared under section
135 of title 23, United States Code, by the State or
States in which they are located;
(6) preserve or enhance rail or intermodal service to
small communities or rural areas;
(7) enhance service and capacity in the national rail
system; or
(8) would materially alleviate rail capacity problems
which degrade the provision of service to shippers and
would fulfill a need in the national transportation
system.
(d) Extent of Authority.--The aggregate unpaid principal
amounts of obligations under direct loans and loan guarantees
made under this section shall not exceed $35,000,000,000 at any
one time. Of this amount, 40 percent shall be available solely
for projects described in subsection (l)(1), and not less than
$7,000,000,000 shall be available solely for projects primarily
benefiting freight railroads other than Class I carriers. The
Secretary shall not establish any limit on the proportion of
the unused amount authorized under this subsection that may be
used for 1 loan or loan guarantee.
(e) Rates of Interest.--
(1) Direct loans.--The Secretary shall require
interest to be paid on a direct loan made under this
section at a rate not less than that necessary to
recover the cost of making the loan.
(2) Loan guarantees.--The Secretary shall not make a
loan guarantee under this section if the interest rate
for the loan exceeds that which the Secretary
determines to be reasonable, taking into consideration
the prevailing interest rates and customary fees
incurred under similar obligations in the private
capital market.
(f) Infrastructure Partners.--
(1) Authority of secretary.--In lieu of or in
combination with appropriations of budget authority to
cover the costs of direct loans and loan guarantees as
required under section 504(b)(1) of the Federal Credit
Reform Act of 1990, the Secretary may accept on behalf
of an applicant for assistance under this section a
commitment from a non-Federal source to fund in whole
or in part credit risk premiums with respect to the
loan that is the subject of the application. In no
event shall the aggregate of appropriations of budget
authority and credit risk premiums described in this
paragraph with respect to a direct loan or loan
guarantee be less than the cost of that direct loan or
loan guarantee.
(2) Credit risk premium amount.--The Secretary shall
determine the amount required for credit risk premiums
under this subsection on the basis of--
(A) the circumstances of the applicant,
including the amount of collateral offered, if
any;
(B) the proposed schedule of loan
disbursements;
(C) historical data on the repayment history
of similar borrowers;
(D) consultation with the Congressional
Budget Office;
(E) the size and characteristics of the
cohort of which the loan or loan guarantee is a
member; and
(F) any other factors the Secretary considers
relevant.
(3) Payment of premiums.--Credit risk premiums under
this subsection shall be paid to the Secretary before
the disbursement of loan amounts.
(4) Cohorts of loans.--In order to maintain
sufficient balances of credit risk premiums to
adequately protect the Federal Government from risk of
default, while minimizing the length of time the
Government retains possession of those balances, the
Secretary shall establish cohorts of loans. When all
obligations attached to a cohort of loans have been
satisfied, credit risk premiums paid for the cohort,
and interest accrued thereon, which were not used to
mitigate losses shall be returned to the original
source on a pro rata basis. A cohort may include loans
and loan guarantees. The Secretary shall not establish
any limit on the proportion of a cohort that may be
used for 1 loan or loan guarantee.
(g) Prerequisites for Assistance.--The Secretary shall not
make a direct loan or loan guarantee under this section unless
the Secretary has made a finding in writing that--
(1) repayment of the obligation is required to be
made within a term of not more than 35 years from the
date of its execution;
(2) the direct loan or loan guarantee is justified by
the present and probable future demand for rail
services or intermodal facilities;
(3) the applicant has given reasonable assurances
that the facilities or equipment to be acquired,
rehabilitated, improved, developed, or established with
the proceeds of the obligation will be economically and
efficiently utilized;
(4) the obligation can reasonably be repaid, using an
appropriate combination of credit risk premiums and
collateral offered by the applicant to protect the
Federal Government; and
(5) the purposes of the direct loan or loan guarantee
are consistent with subsection (b).
(h) Conditions of Assistance.--(1) The Secretary shall,
before granting assistance under this section, require the
applicant to agree to such terms and conditions as are
sufficient, in the judgment of the Secretary, to ensure that,
as long as any principal or interest is due and payable on such
obligation, the applicant, and any railroad or railroad partner
for whose benefit the assistance is intended--
(A) will not use any funds or assets from railroad or
intermodal operations for purposes not related to such
operations, if such use would impair the ability of the
applicant, railroad, or railroad partner to provide
rail or intermodal services in an efficient and
economic manner, or would adversely affect the ability
of the applicant, railroad, or railroad partner to
perform any obligation entered into by the applicant
under this section;
(B) will, consistent with its capital resources,
maintain its capital program, equipment, facilities,
and operations on a continuing basis; and
(C) will not make any discretionary dividend payments
that unreasonably conflict with the purposes stated in
subsection (b).
[(2)] (2)(A) The Secretary shall not require an applicant for
a direct loan or loan guarantee under this section to provide
collateral. Any collateral provided or thereafter enhanced
shall be valued as a going concern after giving effect to the
present value of improvements contemplated by the completion
and operation of the project. The Secretary shall not require
that an applicant for a direct loan or loan guarantee under
this section have previously sought the financial assistance
requested from another source. The Secretary may subordinate
rights of the Secretary under any provision of title 49 or
title 23 of the United States Code, to the rights of the
Secretary under this section and section 503.
(B) The Secretary shall, for purposes of making a finding
under subsection (g)(4), accept the net present value on a
future stream of State or local subsidy income or dedicated
revenue as collateral offered to secure the loan.
(3) The Secretary shall require recipients of direct loans or
loan guarantees under this section to comply with--
(A) the standards of section 24312 of title 49,
United States Code, as in effect on September 1, 2002,
with respect to the project in the same manner that the
National Railroad Passenger Corporation is required to
comply with such standards for construction work
financed under an agreement made under section 24308(a)
of that title; [and]
(B) the protective arrangements established under
section 504 of this Act, with respect to employees
affected by actions taken in connection with the
project to be financed by the loan or loan
guarantee[.]; and
(C) the requirements of section 24405(a) of title 49,
United States Code.
(i) Time Limit for Approval or Disapproval.--[Not later than
90 days after receiving]
(1) In general._Not later than 90 days after an
application is determined pursuant to paragraph (2) to
be a complete application for a direct loan or loan
guarantee under this section, the Secretary shall
approve or disapprove the application. In order to
enable compliance with such time limit, the Office of
Management and Budget shall take any actions required
with respect to the application within such 90-day
period.
(2) Completion of application.--The Secretary shall
establish procedures for making a determination, not
later than 45 days after submission of an application
under this section, whether the application is
complete. Such procedures shall--
(A) provide for a checklist of the required
components of a complete application;
(B) require the Secretary to provide to the
applicant a description of the specific
components of the application that remain
incomplete if an application is determined to
be incomplete; and
(C) permit reapplication without prejudice
for applications determined to be incomplete.
(3) Independent financial analyst.--The Secretary
shall assign an independent financial analyst within 45
days of submittal of a complete application.
(j) Repayment Schedules.--
(1) In general.--The Secretary shall establish a
repayment schedule requiring payments to commence not
later than the sixth anniversary date of the original
loan disbursement.
(2) Accrual.--Interest shall accrue as of the date of
disbursement, and shall be amortized over the remaining
term of the loan beginning at the time the payments
begin.
(k) Report to Congress.--Not later than 1 year after the date
of enactment of the Passenger Rail Reform and Investment Act of
2015, and annually thereafter, the Secretary shall transmit to
Congress a report on the program under this section that
provides information on loans approved and disapproved by the
Secretary during the previous year. Such report shall not
disclose the identity of direct loan or loan guarantee
recipients. The report shall describe--
(1) the number of pre-application meetings with
potential applicants;
(2) the number of applications received and
determined complete under subsection (i)(2), including
the requested loan amounts;
(3) the dates of receipt of applications;
(4) the dates applications were determined complete
under subsection (i)(2);
(5) the number of applications determined incomplete
under subsection (i)(2);
(6) the final decision dates for both approvals and
disapprovals of applications;
(7) the number of applications withdrawn from
consideration; and
(8) the annual loan portfolio asset quality.
(l) Northeast Corridor Fast Forward.--
(1) Purpose.--The Secretary, as part of the Railroad
Rehabilitation and Improvement Financing program, shall
provide direct loans and loan guarantees to eligible
entities described in subsection (a) for capital
projects to improve the Northeast Corridor (as used in
section 24911 of title 49, United States Code).
(2) Collateral.--Loans made or guaranteed under this
subsection shall require collateral equal to the loan
amount requested.
(3) Investment grade rating.--A direct loan or loan
guarantee shall be made under this subsection only if a
rating agency has assigned an investment grade rating
of BBB minus, Baa3, bbb minus, BBB (low), (or
equivalent) or higher to the project obligation. For
purposes of this paragraph, the term ``rating agency''
means a credit rating agency registered with the
Securities and Exchange Commission as a nationally
recognized statistical rating organization (as that
term is defined in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a))).
(4) Inclusion in nec planning.--Loans and loan
guarantees made under this subsection shall be for
projects that are included in the most recent 5-year
budget and business plan prepared pursuant to section
24911(a) of title 49, United States Code.
(5) Refinancing.--Loans made or guaranteed under this
subsection shall not be used for the refinancing of
outstanding debt incurred.
(6) Cohort of loans.--Subsection (f)(4) shall not
apply to loans made or guaranteed under this
subsection.
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