Arrive 21 Act

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1961 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 1961

To provide for the revitalization and enhancement of the American
passenger and freight rail transportation system.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

November 24, 2003

Mr. Hollings (for himself, Ms. Collins, Mr. Carper, Mr. Specter, Mr.
Jeffords, Mr. Lautenberg, and Mr. Biden) introduced the following bill;
which was read twice and referred to the Committee on Commerce,
Science, and Transportation

_______________________________________________________________________

A BILL

To provide for the revitalization and enhancement of the American
passenger and freight rail transportation system.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``American Railroad
Revitalization, Investment, and Enhancement Act of the 21st Century''
or the ``Arrive 21 Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Amendment of title 49, United States Code.
Sec. 3. Purposes.
TITLE I--RAIL TRANSPORTATION SECURITY

Sec. 101. Rail transportation security risk assessment.
Sec. 102. Certain personnel limitations not to apply.
TITLE II--FEDERAL RAIL POLICY

Sec. 201. Federal rail policy enhancement.
Sec. 202. Rail cooperative research program.
Sec. 203. State rail plans.
Sec. 204. Interstate railroad passenger high-speed transportation
policy.
Sec. 205. High-speed rail corridor planning.
Sec. 206. Designated high-speed rail corridors.
Sec. 207. Rehabilitation, improvement, and security financing.
Sec. 208. Repayment of loan to National Railroad Passenger Corporation.
TITLE III--INTERMODAL POLICY

Sec. 301. 50-year intermodal blueprint.
Sec. 302. Intermodal transportation policy.
TITLE IV--AMTRAK AUTHORIZATIONS

Sec. 401. National Railroad Passenger Transportation system defined.
Sec. 402. Restructuring of long-term debt and capital leases.
Sec. 403. General Amtrak authorizations.
Sec. 404. Excess railroad retirement.
Sec. 405. Authorizations for environmental compliance and station
improvements.
Sec. 406. Tunnel life safety.
Sec. 407. Authorization for capital and operating expenses.
Sec. 408. Establishment of grant process.
Sec. 409. State-supported routes.
Sec. 410. Re-establishment of Northeast Corridor Safety Committee.
Sec. 411. Amtrak board of directors.
Sec. 412. Establishment of financial accounting system for Amtrak
operations by independent auditor.
Sec. 413. Development of 5-year financial plan.
Sec. 414. Independent auditor to establish methodologies for Amtrak
route and service planning decisions.
Sec. 415. Metrics and standards.
Sec. 416. On-time performance.
TITLE V--RAIL INFRASTRUCTURE FINANCE CORPORATION

Sec. 501. Establishment of corporation.
Sec. 502. Board of directors.
Sec. 503. Officers and employees.
Sec. 504. Nonprofit and nonpolitical nature of the corporation.
Sec. 505. Purpose and activities of corporation.
Sec. 506. Report to Congress.
Sec. 507. Administrative matters.
Sec. 508. Rail Infrastructure Finance Trust.
TITLE VI--RAIL DEVELOPMENT GRANT PROGRAMS

Sec. 601. Intercity passenger rail development grant program.
Sec. 602. Freight rail infrastructure development grant program.
Sec. 603. High priority projects grant program.
Sec. 604. Grant program requirements and limitations.
Sec. 605. Standards and conditions.
Sec. 606. Grant program funding.
TITLE VII--AUTHORIZATION OF APPROPRIATIONS

Sec. 701. Authorization of Appropriations.

SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE.

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

SEC. 3. PURPOSES.

The purposes of this Act are--
(1) to ensure more adequate financing of infrastructure
projects for the national rail transportation system through--
(A) the establishment of the nonprofit Rail
Infrastructure Finance Corporation to provide financial
support for rail infrastructure improvement projects by
issuing qualified rail transportation bonds; and
(B) the provision of appropriate tax treatment of
qualified rail transportation bonds so issued;
(2) to create a partnership between public and private
entities to promote freight and passenger rail infrastructure
development that benefits the public;
(3) to provide resources to States and groups of States for
rail capital projects that result in a safe, secure, and
efficient rail transportation system;
(4) to enhance Federal and State rail transportation policy
and planning;
(5) to promote intermodal transportation investment,
planning, and coordination; and
(6) to reauthorize the National Railroad Passenger
Corporation and reaffirm the Federal commitment to a national
system of intercity passenger rail transportation.

TITLE I--RAIL TRANSPORTATION SECURITY

SEC. 101. RAIL TRANSPORTATION SECURITY RISK ASSESSMENT.

(a) In General.--
(1) Assessment.--The Secretary of Homeland Security, in
consultation with the Secretary of Transportation, shall assess
the security risks associated with freight and intercity
passenger rail transportation and develop prioritized
recommendations for--
(A) improving the security of rail infrastructure
and facilities, terminals, tunnels, rail bridges, rail
switching areas, and other areas identified by the
Secretary as posing significant rail-related risks to
public safety and the movement of interstate commerce,
taking into account the impact that any proposed
security measure might have on the provision of rail
service;
(B) deploying chemical and biological weapon
detection equipment;
(C) training employees in terrorism response
activities; and
(D) identifying the immediate and long-term
economic impact of measures that may be required to
address those risks.
(2) Existing private and public sector efforts.--The
assessment shall include a review of any actions already taken
or prospective actions necessary to address identified security
issues by both public and private entities.
(b) Consultation; Use of Existing Resources.--In carrying out the
assessment required by subsection (a), the Secretary shall consult with
rail management, rail labor, facility owners and operators, and public
safety officials (including officials responsible for responding to
emergencies).
(c) Report.--
(1) Contents.--Within 180 days after the date of enactment
of this Act, the Secretary shall transmit to the Senate
Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Transportation and
Infrastructure a report, without compromising national
security, containing the assessment and prioritized
recommendations required by subsection (a).
(2) Format.--The Secretary may submit the report in both
classified and redacted formats if the Secretary determines
that such action is appropriate or necessary.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary $515,000,000 for fiscal year 2004 to
carry out this section, implement the measures contained in the
Secretary's prioritized recommendations, and award grants for purposes
identified in the assessment in subsection (a), such sums to remain
available until expended.

SEC. 102. CERTAIN PERSONNEL LIMITATIONS NOT TO APPLY.

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

TITLE II--FEDERAL RAIL POLICY

SEC. 201. FEDERAL RAIL POLICY ENHANCEMENT.

Section 103 is amended to read as follows:
``Sec. 103. Federal Railroad Administration
``(a) In General.--The Federal Railroad Administration is an
administration in the Department of Transportation.
``(b) Administrator.--The head of the Administration is the
Administrator who is appointed by the President, by and with the advice
and consent of the Senate. The Administrator reports directly to the
Secretary of Transportation.
``(c) Safety.--To carry out all railroad safety laws of the United
States, the Administration is divided on a geographical basis into at
least 8 safety offices. The Secretary of Transportation is responsible
for all acts taken under those laws and for ensuring that the laws are
uniformly administered and enforced among the safety offices.
``(d) Powers and Duties.--
``(1) In general.--The Administrator shall carry out--
``(A) the duties and powers related to railroad
safety vested in the Secretary by section 20134(c) and
chapters 203 through 211 of this title, and chapter 213
of this title in carrying out chapters 203 through 211;
``(B) the duties and powers related to railroad
policy and development under subsection (e); and
``(C) any additional duties and powers prescribed
by the Secretary.
``(2) Transfers.--A duty or power specified by paragraph
(1)(A) of this subsection may be transferred to another part of
the Department only when specifically provided by law or a
reorganization plan submitted under chapter 9 of title 5. A
decision of the Administrator in carrying out those duties or
powers and involving notice and hearing required by law is
administratively final.
``(3) Contracts, grants, leases, cooperative agreements,
and similar transactions.--Subject to the provisions of
subtitle I of title 40 and title III of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 251 et
seq.), the Secretary of Transportation may make, enter into,
and perform such contracts, grants, leases, cooperative
agreements, and other similar transactions with Federal or
other public agencies (including State and local governments)
and private organizations and persons, and make such payments,
by way of advance or reimbursement, as the Secretary may
determine to be necessary or appropriate to carry out functions
of the Federal Railroad Administration. The authority of the
Secretary granted by this paragraph shall be carried out by the
Administrator.
``(e) Additional Duties of the Administrator.--The Administrator
shall--
``(1) provide assistance to States in developing State rail
plans prepared under section 22501 and review all State rail
plans submitted under such section 22501;
``(2) develop a long range national rail plan that is
consistent with approved State rail plans, the 50-year
Intermodal Blueprint developed under section 5503(e), and the
rail needs of the Nation, as determined by the Secretary in
order to promote an integrated, cohesive, efficient, and
optimized national rail system for the movement of goods and
people;
``(3) develop a preliminary national rail plan within a
year after the date of enactment of the Arrive 21 Act;
``(4) develop and enhance partnerships with the freight and
passenger railroad industry, States, and the public concerning
rail development;
``(5) support rail intermodal development and high-speed
rail development, including high speed rail planning under
section 205;
``(6) ensure that programs and initiatives developed under
this section benefit the public and work toward achieving
regional and national transportation goals; and
``(7) facilitate and coordinate efforts to assist freight
and passenger rail carriers, transit agencies and authorities,
municipalities, and States in passenger-freight service
integration on shared rights of way by providing neutral
assistance at the joint request of affected rail service
providers and infrastructure owners relating to operations and
capacity analysis, capital requirements, operating costs, and
other research and planning related to corridors shared by
passenger or commuter rail service and freight rail operations.
``(f) Performance Goals and Reports.--
``(1) Performance goals.--In conjunction with the
objectives established and activities undertaken under section
103(e) of this title, the Administrator shall develop a
schedule for achieving specific, measurable performance goals.
``(2) Resource needs.--The strategy and annual plans shall
include estimates of the funds and staff resources needed to
accomplish each goal and the additional duties required under
section 103(e).
``(3) Submission with president's budget.--Beginning with
fiscal year 2005 and each fiscal year thereafter, the Secretary
shall submit to Congress, at the same time as the President's
budget submission, the Administration's performance goals and
schedule developed under paragraph (1), including an assessment
of the progress of the Administration toward achieving its
performance goals.''.

SEC. 202. RAIL COOPERATIVE RESEARCH PROGRAM.

(a) Requirement for Program.--
(1) Establishment and content.--Chapter 249 is amended by
adding at the end the following:
``Sec. 24910. Rail cooperative research program
``(a) In General.--The Secretary shall establish and carry out a
rail cooperative research program. The program shall--
``(1) address, among other matters, intercity rail
passenger and freight rail services, including existing rail
passenger and freight technologies and speeds, incrementally
enhanced rail systems and infrastructure, and new high-speed
wheel-on-rail systems and rail security;
``(2) address ways to expand the transportation of
international trade traffic by rail, enhance the efficiency of
intermodal interchange at ports and other intermodal terminals,
and increase capacity and availability of rail service for
seasonal freight needs;
``(3) consider research on the interconnectedness of
commuter rail, passenger rail, freight rail, and other rail
networks; and
``(4) give consideration to regional concerns regarding
rail passenger and freight transportation, including meeting
research needs common to designated high-speed corridors, long-
distance rail services, and regional intercity rail corridors,
projects, and entities.
``(b) Content.--The program to be carried out under this section
shall include research designed--
``(1) to identify the unique aspects and attributes of rail
passenger and freight service;
``(2) to develop more accurate models for evaluating the
impact of rail passenger and freight service, including the
effects on highway and airport and airway congestion,
environmental quality, and energy consumption;
``(3) to develop a better understanding of modal choice as
it affects rail passenger and freight transportation, including
development of better models to predict utilization;
``(4) to recommend priorities for technology demonstration
and development;
``(5) to meet additional priorities as determined by the
advisory board established under subsection (c), including any
recommendations made by the National Research Council;
``(6) to explore improvements in management, financing, and
institutional structures;
``(7) to address rail capacity constraints that affect
passenger and freight rail service through a wide variety of
options, ranging from operating improvements to dedicated new
infrastructure, taking into account the impact of such options
on operations;
``(8) to improve maintenance, operations, customer service,
or other aspects of intercity rail passenger and freight
service;
``(9) to recommend objective methodologies for determining
intercity passenger rail routes and services, including the
establishment of new routes, the elimination of existing
routes, and the contraction or expansion of services or
frequencies over such routes;
``(10) to review the impact of equipment and operational
safety standards on the further development of high speed
passenger rail operations connected to or integrated with non-
high speed freight or passenger rail operations; and
``(11) to recommend any legislative or regulatory changes
necessary to foster further development and implementation of
high speed passenger rail operations while ensuring the safety
of such operations that are connected to or integrated with
non-high speed freight or passenger rail operations.
``(c) Advisory Board.--
``(1) Establishment.--In consultation with the heads of
appropriate Federal departments and agencies, the Secretary
shall establish an advisory board to recommend research,
technology, and technology transfer activities related to rail
passenger and freight transportation.
``(2) Membership.--The advisory board shall include--
``(A) representatives of State transportation
agencies;
``(B) transportation and environmental economists,
scientists, and engineers; and
``(C) representatives of Amtrak, the Alaska
Railroad, freight railroads, transit operating
agencies, intercity rail passenger agencies, railway
labor organizations, and environmental organizations.
``(d) National Academy of Sciences.-- The Secretary may make grants
to, and enter into cooperative agreements with, the National Academy of
Sciences to carry out such activities relating to the research,
technology, and technology transfer activities described in subsection
(b) as the Secretary deems appropriate.''.
(2) Clerical amendment.--The chapter analysis for chapter
249 is amended by adding at the end the following:

``24910. Rail cooperative research program''.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Transportation $5,000,000 for each of
fiscal years 2004 through 2009 to carry out the rail cooperative
research program under section 24910 of title 49, United States Code.

SEC. 203. STATE RAIL PLANS.

(a) In General.--Part B of subtitle V is amended by adding at the
end the following:

``CHAPTER 225--STATE RAIL PLANS AND HIGH PRIORITY PROJECTS

``Sec.
``22501. Authority
``22502. Purposes
``22503. Transparency; coordination; review
``22504. Content
``22505. Approval
``22506. High priority projects
``22507. Definitions
``Sec. 22501. Authority
``(a) In General.--Each State may prepare and maintain a State rail
plan in accordance with the provisions of this chapter.
``(b) Requirements.--For the preparation and periodic revision of a
State rail plan, a State shall--
``(1) establish or designate a State rail transportation
authority to prepare, maintain, coordinate, and administer the
plan;
``(2) establish or designate a State rail plan approval
authority to approve the plan;
``(3) submit the State's approved plan to the Secretary of
Transportation for approval; and
``(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for reapproval by the
Secretary.
``Sec. 22502. Purposes
``(a) Purposes.--The purposes of a State rail plan are as follows:
``(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
``(2) To establish the period covered by the State rail
plan.
``(3) To present priorities and strategies to preserve,
enhance, or expand rail service in the State that benefits the
public.
``(4) To serve as the basis for Federal and State rail
investments within the State.
``(b) Coordination.--A State rail plan shall be coordinated with
other State transportation planning goals and programs and set forth
rail transportation's role within the State transportation system.
``Sec. 22503. Transparency; coordination; review
``(a) Preparation.--A State shall provide adequate and reasonable
notice and opportunity for comment and other input to the public, rail
carriers, commuter and transit authorities operating in, or affected by
rail operations within the State, units of local government, and other
interested parties in the preparation and review of its State rail
plan.
``(b) Intergovernmental Coordination.--A State shall review the
freight and passenger rail service activities and initiatives by
regional planning agencies, regional transportation authorities, and
municipalities within the State, or in the region in which the State is
located, while preparing the plan, and shall include any
recommendations made by such agencies, authorities, and municipalities
as deemed appropriate by the State.
``(c) Annual Reviews.--Each State shall transmit an annual report
on its plan to the Secretary of Transportation. The report shall
include, for the year preceding the year in which submitted, the
following matters:
``(1) A review of progress made, and actions taken, under
the plan during the year, including an update on the budget,
schedule, and financing for each project on the freight or
passenger rail capital project list compiled under section
22504(a) of this title.
``(2) Any modifications made in the plan after approval of
the plan by the Secretary or after the submission of the most
recent annual report on the plan to the Secretary, including
any modifications made to the priority freight or passenger
rail capital list required by section 22504(b).
``(d) Approval of Modified Plans.--Modifications of a State rail
plan that are determined substantive by the Secretary, including any
modification to a priority freight or passenger rail capital project
list required by section 22504(b), is subject to approval (for the
purposes of this chapter) by the Secretary.
``Sec. 22504. Content
``(a) In General.--Each State rail plan shall contain the
following:
``(1) An evaluation of the existing overall rail
transportation system and rail services and facilities within
the State, a prioritization of such services and facilities in
terms of their contributions to the State's rail and
transportation system.
``(2) A comprehensive review of all rail lines within the
State, including proposed high speed rail corridors and
significant rail line segments not currently in service, containing an
overview of the transportation services provided by those lines, their
ownership, operating characteristics, and the general state of their
infrastructure.
``(3) A statement of the State's freight and passenger rail
service objectives, including minimum service levels, for rail
transportation routes in the State.
``(4) A general analysis of rail's transportation,
economic, and environmental impacts in the State, including
congestion mitigation, trade and economic development, air
quality, land-use, energy-use, and community impacts.
``(5) A long-range rail service and investment program for
current and future freight and passenger services in the State
that meets the requirements of subsection (b).
``(6) A statement of public financing issues for rail
projects and service in the State, including a list of current
and prospective capital and operating funding resources, public
subsidies, State taxation, and other financial policies
relating to rail service and rail infrastructure development.
``(7) A statement of rail service issues within the State,
such as congestion and capacity, and current system
deficiencies on a regional, intrastate, and interstate basis,
that reflects consultation with neighboring States and
describes any coordination of regional rail service.
``(8) A review of major passenger and freight intermodal
rail connections and facilities within the State, including
seaports, and prioritized options to maximize service
integration and efficiency between rail and other modes of
transportation within the State.
``(9) A description of new technology that relates to rail
transportation within the State, including logistics and
process improvements.
``(10) A review of publicly funded projects within the
State to improve rail transportation safety and security,
including all major projects funded under section 130 of title
23.
``(11) A performance evaluation of passenger rail services
operating in the State, including possible improvements in
those services, and a description of strategies to achieve
those improvements.
``(12) A compilation of studies and reports on high-speed
rail corridor development within the State not included in a
previous plan under this chapter, and a plan for funding any
recommended development of such corridors in the State.
``(13) A statement that the State is in compliance with the
requirements of section 22102.
``(b) Long-Range Service and Investment Program.--
``(1) Program content.--A long-range rail service and
investment program included in a State rail plan under
subsection (a)(5) shall include the following matters:
``(A) Two ranked lists for rail capital projects, 1
for freight rail capital projects and 1 for intercity
passenger rail capital projects.
``(B) A detailed funding plan for the projects.
``(2) Project list content.--The ranked list of freight and
intercity passenger rail capital projects shall contain--
``(A) a description of the anticipated public and
private benefits of each such project; and
``(B) a statement of the correlation between--
``(i) public funding contributions for the
projects; and
``(ii) the public benefits.
``(3) Considerations for project list.--In preparing the
ranked list of freight and intercity passenger rail capital
projects, a State rail transportation authority shall take into
consideration the following matters:
``(A) Contributions made by non-Federal and non-
State sources through user fees, matching funds, or
other private capital involvement.
``(B) Rail capacity and congestion effects.
``(C) Effects to highway, aviation, and maritime
capacity, congestion, or safety.
``(D) Regional balance.
``(E) Environmental impact.
``(F) Competitive and service impacts for rail
carriers and shippers.
``(G) Preservation of rail service.
``(H) Economic and employment impacts.
``(I) Projected ridership and other service
measures for passenger rail projects.
``(c) Waiver.--The Secretary may waive any requirement of
subsection (a) upon application under circumstances that the Secretary
determines appropriate.
``Sec. 22505. Approval
``(a) Criteria.--The Secretary may approve a State rail plan for
the purposes of this chapter if--
``(1) the plan meets all of the requirements applicable to
State plans under this chapter;
``(2) for each ready-to-commence project listed on the
ranked list of freight and intercity passenger rail capital
projects under the plan--
``(A) the project meets all safety and
environmental requirements including those prescribed
under the National Environmental Policy Act of 1969 (42
U.S.C. 4331 et seq.) that are applicable to the project
under law; and
``(B) the State has entered into an agreement with
any owner of rail infrastructure or right of way
directly affected by the project that provides for the
State to proceed with the project; and
``(3) the content of the plan is coordinated with--
``(A) State transportation plans developed pursuant
to the requirements of section 135 of title 23; and
``(B) the national rail plan, the 50-year
intermodal blueprint develped under section 5503(e) of
this title, (if either is available) and any other
transportation plan of the Federal Government that is required by law
deemed relevant by the Secretary.
``(b) Procedures for State Rail Plan Submission and Approval.--The
Secretary shall prescribe procedures for States to submit State rail
plans for review under this title, including standardized format and
data requirements and procedures for resubmittal if a State rail plan
is disapproved. The procedures shall provide for the Secretary to
review a State rail plan and issue a record of decision of approval or
disapproval, with comment, on such plan within 180 days after the plan
is submitted.
``Sec. 22506. High priority projects
``(a) Designation of Projects.--In reviewing State rail plans, the
Secretary of Transportation may designate as a high priority project
any project submitted by a State or group of States that meets both of
the following criteria:
``(1) The project focuses on key rail congestion points
that are--
``(A) selected by the Secretary on the basis of
national benefits to the rail transportation system;
and
``(B) coordinated with the national rail plan, if
that plan is available.
``(2) The project is on a ranked list of priority freight
and passenger rail capital projects that is included in a State
rail plan under section 22504(a)(5) of title 49, United States
Code, unless this criterion is waived by the Secretary.
``(b) Preferred Projects.--The Secretary, in designating high
priority projects, shall give preference to--
``(1) projects that have national significance for--
``(A) improving the national rail network and the
Nation's transportation system;
``(B) ensuring particularly high levels of safety;
``(C) increasing intermodal connectivity by
providing or improving direct connections between rail
facilities and other modes of transportation;
``(D) significantly improving highway, aviation, or
maritime capacity, congestion, or safety;
``(E) improving intercity passenger rail service by
increasing ridership, reducing trip time, or other
significant enhancements;
``(F) improving both intercity passenger rail and
freight rail services simultaneously;
``(G) enhancing freight rail service for shippers;
``(H) causing positive economic and employment
results;
``(I) producing significant environmental or
community benefits;
``(J) having received financial commitments and
other support from non-Federal entities such as States,
local governments, or private entities;
``(K) enhancing international trade;
``(L) enhancing national security; or
``(M) employing positive train control
technologies; and
``(2) projects that are at the stage of preparation that
all pre-commencement compliance with environmental protection
requirements has been completed and the projects are ready to
commence.
``(c) Regional Balance and Compatibility.--The Secretary, in
designating high priority projects, shall ensure that--
``(1) the geographic distribution of the designated high
priority projects is balanced among the geographic regions of
the United States and a disproportionate number of such
projects is not concentrated in a single State; and
``(2) all projects are--
``(A) compatible with State transportation plans
developed pursuant to the requirements of section 135
of title 23; and
``(B) carried out in conformance with the national
rail plan.
``(d) Additional Projects.--The Secretary may designate projects
submitted to the Office by the National Railroad Passenger Corporation,
either independently or in conjunction with a State or group of States,
as a high priority project. Any such projects shall be subject to the
same designation and selection criteria as apply under this section,
except the criteria set forth in subsections (a)(2) and (c)(2) of this
section.
``Sec. 22507. Definitions
``In this chapter:
``(1) Private benefit.--The term `private benefit' means a
benefit accrued to a person or private entity, other than the
National Railroad Passenger Corporation, that directly improves
the economic and competitive condition of that person or entity
through improved assets, cost reductions, service improvements,
or any other means as defined by the Secretary. The Secretary
may seek the advice of the states and rail carriers in further
defining this term.
``(2) Public benefit.--The term `public benefit' means a
benefit accrued to the public in the form of enhanced mobility
of people or goods, environmental protection or enhancement,
congestion mitigation, enhanced trade and economic development,
improved air quality or land use, more efficient energy use,
enhanced public safety or security, reduction of public
expenditures due to improved transportation efficiency or
infrastructure preservation, and any other positive community
effects as defined by the Secretary. The Secretary make seek
the advice of the States and rail carriers in further defining
this term.
``(3) State.--The term `State' means any of the 50 States
and the District of Columbia.
``(4) State rail transportation authority.--The term `State
rail transportation authority' means the State agency or
official responsible under the direction of the Governor of the
State or a State law for preparation, maintenance,
coordination, and administration of the State rail plan.''.
(b) Clerical Amendment.--The table of chapters for subtitle V is
amended by inserting after the item relating to chapter 223 the
following:

``225. STATE RAIL PLANS AND HIGH PRIORITY PROJECTS..........  22501.''.

SEC. 204. INTERSTATE RAILROAD PASSENGER HIGH-SPEED TRANSPORTATION
POLICY.

(a) In General.--Chapter 261 is amended by inserting before section
26101 the following:
``Sec. 26100. Policy.
``The Congress declares that it is the policy of the United States
that designated high-speed railroad passenger transportation corridors
are the building blocks of an interconnected National railroad
passenger system.''.
(b) Conforming Amendment.--The chapter analysis for chapter 261 is
amended by inserting before the item relating to section 26101 the
following:

``26100. Policy''.

SEC. 205. HIGH-SPEED RAIL CORRIDOR PLANNING.

(a) In General.--Section 26101(a) is amended to read as follows:
``(a) Planning.--
``(1) In general.--The Secretary of Transportation shall
provide planning assistance to States or group of States and
other public agencies promoting the development of high-speed
rail corridors designated by the Secretary under section 104(d)
of title 23. The Secretary shall establish an application and
qualification process for applicants eligible for assistance
under this section.
``(2) Secretary may provide direct or financial
assistance.--The Secretary may provide planning assistance
under paragraph (1) directly or by providing financial
assistance to a public agency or group of public agencies to
undertake planning activities approved by the Secretary. Twenty
percent of the publicly financed planning costs associated with
projects assisted under this chapter shall come from non-
Federal sources. State matching contributions may not be
derived, directly or indirectly, from Federal funds.
``(b) Record of Decision.--Upon completion of planning activities
funded under this section, the Secretary shall make a recommendation on
the record of whether to proceed with the implementation of the
corridor.''.
(b) Conforming and Other Amendments to Section 26101.--Section
26101 is further amended--
(1) by striking subsection (c)(2) and inserting the
following:
``(2) the extent to which the proposed planning focuses on
high-speed rail systems, giving a priority to systems which
will achieve sustained speeds of 125 miles per hour or greater
and projects involving dedicated rail passenger rights-of-
way;'';
(2) by inserting ``and'' after the semicolon in subsection
(c)(12);
(3) by striking ``completed; and'' in subsection (c)(13)
and inserting ``completed.''; and
(4) by striking subsection (c)(14).
(c) Conforming Amendment.--Section 26105(2)(A) is amended by
striking ``more than 125 miles per hour;'' and inserting ``90 miles per
hour or more;''.
(d) Financial Assistance To Include Loans and Loan Guarantees.--
Section 26105(1) is amended by inserting ``loans, loan guarantees,''
after ``contracts,''.
(e) Special Transportation Circumstances.--Section 26101 is amended
by adding at the end the following:
``(d) Special Transportation Circumstances.--In carrying out this
section, the Secretary shall allocate an appropriate portion of the
amounts available for planning assistance to providing appropriate
transportation-related assistance in any State in which the rail
transportation system--
``(1) is not physically connected to rail systems in the
continental United States; and
``(2) may not otherwise qualify for high speed rail
implementation assistance due to the constraints imposed on the
railway infrastructure in that State due to the unique
characteristics of the geography of that State or other
relevant considerations, as determined by the Secretary.''.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Transportation $50,000,000 for each of
fiscal years 2004 through 2009 to provide planning assistance under
section 26101(a) of title 49, United States Code.

SEC. 206. DESIGNATED HIGH-SPEED RAIL CORRIDORS.

(a) In General.--The Secretary of Transportation shall give
priority in allocating funds authorized by section 26104 of title 49,
United States Code, to designated high-speed rail corridors.
(b) Designated High-Speed Rail Corridors.--For purposes of
subsection (a), the following shall be considered to be designated
high-speed rail corridors:
(1) California Corridor connecting the San Francisco Bay
area and Sacramento to Los Angeles and San Diego.
(2) Chicago Hub Corridor Network with the following spokes:
(A) Chicago to Detroit.
(B) Chicago to Minneapolis/St. Paul, Minnesota, via
Milwaukee, Wisconsin.
(C) Chicago to Kansas City, Missouri, via
Springfield, Illinois, and St. Louis, Missouri.
(D) Chicago to Louisville, Kentucky, via
Indianapolis, Indiana, and Cincinnati, Ohio.
(E) Chicago to Cleveland, Ohio, via Toledo, Ohio.
(F) Cleveland, Ohio, to Cincinnati, Ohio, via
Columbus, Ohio.
(3) Empire State Corridor from New York City, New York,
through Albany, New York, to Buffalo, New York.
(4) Florida High-Speed Rail Corridor from Tampa through
Orlando to Miami.
(5) Gulf Coast Corridor from Houston Texas, through New
Orleans, Louisiana, to Mobile, Alabama, with a branch from New
Orleans, through Meridian, Mississippi, and Birmingham,
Alabama, to Atlanta, Georgia.
(6) Keystone Corridor from Philadelphia, Pennsylvania,
through Harrisburg, Pennsylvania, to Pittsburgh, Pennsylvania.
(7) Northeast Corridor from Washington, District of
Columbia, through New York City, New York, New Haven,
Connecticut, and Providence, Rhode Island, to Boston, Massachusetts,
with a branch from New Haven, Connecticut, to Springfield,
Massachusetts.
(8) New England Corridor from Boston, Massachusetts, to
Portland and Auburn, Maine, and from Boston, Massachusetts,
through Concord, New Hampshire, and Montpelier, Vermont, to
Montreal, Quebec.
(9) Pacific Northwest Corridor from Eugene, Oregon, through
Portland, Oregon, and Seattle, Washington, to Vancouver,
British Columbia.
(10) South Central Corridor from San Antonio, Texas,
through Dallas/Fort Worth to Little Rock, Arkansas, with a
branch from Dallas/Fort Worth through Oklahoma City, Oklahoma,
to Tulsa, Oklahoma.
(11) Southeast Corridor from Washington, District of
Columbia, through Richmond, Virginia, Raleigh, North Carolina,
Columbia, South Carolina, Savannah, Georgia, and Jessup,
Georgia, to Jacksonville, Florida, with--
(A) a branch from Raleigh, North Carolina, through
Charlotte, North Carolina, and Greenville, South
Carolina, to Atlanta, Georgia; a branch from Richmond,
to Hampton Roads/Norfolk, Virginia;
(B) a branch from Charlotte, North Carolina, to
Columbia, South Carolina, to Charleston, South
Carolina;
(C) a connecting route from Atlanta, Georgia, to
Jessup, Georgia;
(D) a connecting route from Atlanta, Georgia, to
Charleston, South Carolina; and
(E) a branch from Raleigh, North Carolina, through
Florence, South Carolina, to Charleston, South
Carolina, and Savannah, Georgia, with a connecting
route from Florence, South Carolina, to Myrtle Beach,
South Carolina.
(12) Southwest Corridor from Los Angeles, California, to
Las Vegas, Nevada.
(c) Other High-Speed Rail Corridors.--For purposes of this section,
subsection (b)--
(1) does not limit the term ``designated high-speed rail
corridor'' to those corridors described in subsection (b); and
(2) does not limit the Secretary of Transportation's
authority--
(A) to designate additional high-speed rail
corridors; or
(B) to terminate the designation of any high-speed
rail corridor.

SEC. 207. REHABILITATION, IMPROVEMENT, AND SECURITY FINANCING.

(a) Definitions.--Section 102(7) of the Railroad Revitalization and
Regulatory Reform Act of 1976 (45 U.S.C. 802(7)) is amended to read as
follows:
``(7) `railroad' has the meaning given that term in section
20102 of title 49, United States Code; and''.
(b) General Authority.--Section 502 of the Railroad Revitalization
and Regulatory Reform Act of 1976 (45 U.S.C. 822) is amended--
(1) by striking ``Secretary may provide direct loans and
loan guarantees to State and local governments,'' in subsection
(a) and inserting ``Secretary shall provide direct loans and
loan guarantees to State and local governments, interstate
compacts entered into under section 410 of the Amtrak Reform
and Accountability Act of 1997 (49 U.S.C 24101 note),'';
(2) by striking ``or'' in subsection (b)(1)(B);
(3) by redesignating subparagraph (C) of subsection (b)(1)
as subparagraph (D); and
(4) by inserting after subparagraph (B) of subsection
(b)(1) the following:
``(C) to acquire, improve, or rehabilitate rail
safety and security equipment and facilities; or''.
(c) Extent of Authority.--Section 502(d) of the Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(d)) is
amended by adding at the end ``The Secretary shall not establish any
limit on the proportion of the unused amount authorized under this
subsection that may be used for a single loan or loan guarantee.''.
(d) Cohorts of Loans.--Section 502(f) of the Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(f)) is
amended--
(1) in paragraph (2)--
(A) by striking ``and'' at the end of subparagraph
(D);
(B) by redesignating subparagraph (E) as
subparagraph (F); and
(C) by adding after subparagraph (D) the following
new subparagraph:
``(E) the size and characteristics of the cohort of
which the loan or loan guarantee is a member; and'';
and
(2) by adding at the end of paragraph (4) the following:
``A cohort may include loans and loan guarantees. The Secretary
shall not establish any limit on the proportion of a cohort
that may be used for a single loan or loan guarantee.''.
(e) Conditions of Assistance.--Section 502 of the Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822) is
amended--
(1) by striking ``offered;'' in subsection (f)(2)(A) and
inserting ``offered, if any;'';
(2) by inserting ``(1)'' before ``The Secretary'' in
subsection (h) and redesignating paragraphs (1), (2), and (3)
of that subsection as subparagraphs (A), (B), and (C); and
(3) by adding at the end of subsection (h) the following:
``(2) The Secretary may not require an applicant for a
direct loan or loan guarantee under this section to provide
collateral.
``(3) The Secretary may not require that an applicant for a
direct loan or loan guarantee under this section have
previously sought the financial assistance requested from another
source.
``(4) The Secretary shall require recipients of direct
loans or loan guarantees under this section to apply the
standards of subsections (b) and (c) of section 22301 of title
49, United States Code, to their projects.
``(5) The Secretary shall require recipients of direct
loans or loan guarantees under this section to comply with--
``(A) the standards of section 24312, as in effect
on September 1, 2003, 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); 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 by direct
loans or loan guarantees.''.
(f) Time Limit for Approval or Disapproval.--Section 502 of the
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C.
822) is amended by adding at the end the following:
``(i) Time Limit for Approval or Disapproval.--Not later than 180
days after receiving a complete application for a direct loan or loan
guarantee under this section, the Secretary shall approve or disapprove
the application.''.
(g) Fees and Charges.--Section 503 of the Railroad Revitalization
and Regulatory Reform Act of 1976 (45 U.S.C. 823) is amended--
(1) by adding at the end of subsection (k) the following:
``Funds received by the Secretary under the preceding sentence
shall be credited to the appropriation from which the expenses
of making such appraisals, determinations, and findings were
incurred.''; and
(2) by adding at the end the following new subsection:
``(m) Fees and Charges.--Except as provided in this title, the
Secretary may not assess any fees, including user fees, or charges in
connection with a direct loan or loan guarantee provided under section
502.''.
(h) Substantive Criteria and Standards.--Not later than 30 days
after the date of the enactment of this Act, the Secretary of
Transportation shall publish in the Federal Register and post on the
Department of Transportation website the substantive criteria and
standards used by the Secretary to determine whether to approve or
disapprove applications submitted under section 502 of the Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822).
(i) Operators Deemed Rail Carriers; Loans and Loan Guarantees for
Non-Railroad Entities.--Section 502 of the Railroad Revitalization and
Regulatory Reform Act of 1976 (45 U.S.C. 822), as amended by subsection
(f), is amended by adding at the end the following:
``(j) Operators Deemed Rail Carriers.--Any entity providing
railroad transportation (within the meaning of section 20102) that
begins operations after the date of enactment of the Arrive 21 Act and
that uses property acquired pursuant to this section shall be
considered an employer for purposes of the Railroad Retirement Act of
1974 (45 U.S.C. 231 et seq.) and considered a carrier for purposes of
the Railway Labor Act (45 U.S.C. 151 et seq.).
``(k) Loan and Loan Guarantees for Non-Railroad Entities.--
Notwithstanding any other provision of law, entities other than rail
companies shall be eligible for loans and loan guarantees under this
section.''.

SEC. 208. REPAYMENT OF LOAN TO NATIONAL RAILROAD PASSENGER CORPORATION.

The Secretary of Transportation may not collect any payments of
principal or interest for the direct loan made to the National Railroad
Passenger Corporation under section 502 of the Railroad Revitalization
and Regulatory Reform Act of 1976 (45 U.S.C. 822). There are authorized
to be appropriated to the Secretary for fiscal year 2004 $100,000,000
for the purpose of repaying that loan to the Secretary of the Treasury.

TITLE III--INTERMODAL POLICY

SEC. 301. 50-YEAR INTERMODAL BLUEPRINT.

(a) In General.--Section 5503 is amended--
(1) by redesignating subsections (e) and (f) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (d) the following:
``(e) 50-Year Intermodal Blueprint.--
``(1) In general.--The Secretary, in consultation with the
advisory board established under section 24910(c) of this
title, and other Federal, State, local, and private concerns,
shall create a document to be known as the `50-year Intermodal
Blueprint', which shall--
``(A) set forth a plan to develop a national
intermodal transportation system, including all major
modes of transportation;
``(B) describe emerging trends and opportunities to
fulfill the future passenger and freight transportation
needs of the United States;
``(C) illustrate and estimate the potential results
of current policies, possible policy improvements, and
directives for achieving the goals set forth in the
document;
``(D) forecast the impact of current and future
transportation policies on mobility, safety, energy
consumption, the environment, technology, international
trade, economic activity, and the quality of life in
the United States; and
``(E) identify sources of funding to implement the
plan described in subparagraph (A).
``(2) Biennial progress reports.--The Director, working
with the Department of Transportation Inspector General, shall
issue a 50-year Intermodal Blueprint progress report every 2
years and transmit a copy to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives Committee
on Transportation and Infrastructure. In the report, the Director
shall--
``(A) disclose the results of an audit of the
progress made toward achieving the goals set forth in
the 50-year Intermodal Blueprint;
``(B) describe successes, challenges, and obstacles
with respect to the 50-year Intermodal Blueprint;
``(C) suggest any changes to the 50-year Intermodal
Blueprint that the Director deems necessary or
appropriate to reflect changed circumstances or new
developments;
``(D) make recommendations on ways to increase
intermodal planning and cooperation throughout the
national transportation system and within the
Department of Transportation; and
``(E) identify successful funding mechanisms and
make recommendations for new approaches to funding
intermodal transportation facilities and services.
``(3) Sexennial revisions.--The Secretary, in consultation
with Federal, State, local, and private concerns, shall revise
and republish the 50-year Intermodal Blueprint every 6 years.
``(f) Impact Measurement Methodology; Impact Review.--The
Secretary, working with the Bureau of Transportation Statistics, and
taking into account the work of the rail cooperative research program
established under section 24910(a) of this title, shall--
``(1) formulate a methodology for measuring the impact of
intermodal transportation on--
``(A) the environment;
``(B) public health and welfare;
``(C) energy consumption;
``(D) the operation and efficiency of the
transportation system;
``(E) congestion; and
``(F) the economy and employment; and
``(2) undertake a comprehensive review of the impact of
international trade on intermodal transportation and existing
intermodal transportation infrastructure.''.
(b) Retained Funds.--Section 5568 is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) 50-Year Intermodal Blueprint.--There are authorized to be
appropriated to the Secretary $1,000,000 for each of fiscal years 2004
through 2009 to carry out section 5503(e).''.

SEC. 302. INTERMODAL TRANSPORTATION POLICY.

(a) Policy Standards.--Section 302(e) is amended by striking
``system'' and inserting ``system, including freight and passenger rail
service and maritime transportation, including such transportation via
inland waterways,''.
(b) State Transportation Improvement Programs.--Section 135(f)(4)
of title 23, United States Code, is amended by inserting ``a State rail
plan developed under chapter 225 of title 49,'' after ``134,''.

TITLE IV--AMTRAK AUTHORIZATIONS

SEC. 401. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM DEFINED.

(a) In General.--Section 24102 is amended--
(1) by striking paragraph (2);
(2) by redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively; and
(3) by inserting after paragraph (4) as so redesignated the
following:
``(5) `national rail passenger transportation system'
means--
``(A) the segment of the Northeast Corridor between
Boston, Massachusetts and Washington, D.C.;
``(B) rail corridors that have been designated by
the Secretary of Transportation as high-speed
corridors, but only after they have been improved to
permit operation of high-speed service;
``(C) long-distance routes of more than 750 miles
between endpoints operated by Amtrak as of the date of
enactment of the Arrive 21 Act; and
``(D) short-distance corridors or routes operated
by Amtrak.''.
(b) Amtrak Routes With State Funding.--
(1) In general.--Chapter 247 is amended by inserting after
section 24701 the following:
``Sec. 24702. Transportation requested by States, authorities, and
other persons
``(a) Contracts for Transportation.--Amtrak and a State, a regional
or local authority, or another person may enter into a contract for
Amtrak to operate an intercity rail service or route not included in
the national rail passenger transportation system upon such terms as
the parties thereto may agree.
``(b) Discontinuance.--Upon termination of a contract entered into
under this section, or the cessation of financial support under such a
contract by either party, Amtrak may discontinue such service or route,
notwithstanding any other provision of law.''.
(2) Conforming amendment.--The chapter analysis for chapter
247 is amended by inserting after the item relating to section
24701 the following:

``24702. Transportation requested by States, authorities, and other
persons''.
(c) Amtrak To Continue To Provide Non-High-speed Services.--Nothing
in this Act is intended to preclude Amtrak from restoring, improving,
or developing non-high-speed intercity passenger rail service.

SEC. 402. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.

(a) In General.--The Secretary of the Treasury shall work with the
Secretary of Transportation and Amtrak to restructure Amtrak's
indebtedness as of the date of enactment of this Act.
(b) New Debt Prohibition.--Except as approved by the Secretary of
Transportation, Amtrak may not enter into any obligation secured by
assets of the Corporation after the date of enactment of this Act. This
section does not prohibit unsecured lines of credit used by Amtrak or
any subsidiary for working capital purposes.
(c) Debt Redemption.--The Secretary of Transportation, in
consultation with the Secretary of the Treasury, shall enter into
negotiations with the holders of Amtrak debt, including leases, that is
outstanding on the date of enactment of this Act for the purpose of
redeeming or restructuring that debt. The Secretary, in consultation
with the Secretary of the Treasury, shall secure agreements for
repayment on such terms as the Secretary deems favorable to the
interests of the Government. Payments for such redemption may be made
after October 1, 2004, in either a single payment or a series of
payments, but in no case shall the repayment period extend beyond
September 30, 2008.
(d) Criteria.--In redeeming or restructuring Amtrak's indebtedness,
the Secretaries and Amtrak--
(1) shall ensure that the restructuring imposes the least
practicable burden on taxpayers; and
(2) take into consideration repayment costs, the term of
any loan or loans, and market conditions.
(e) Authorization.--There are authorized to be appropriated to the
Secretary such sums as may be necessary for fiscal years 2005 through
2008 to restructure or redeem Amtrak's secured debt.
(f) Amtrak Principal and Interest Payments.--
(1) Principal on debt service.--Unless the Secretary of
Transportation and the Secretary of the Treasury restructure or
redeem the debt, there are authorized to be appropriated to the
Secretary of Transportation for the use of Amtrak for
retirement of principal on loans for capital equipment, or
capital leases, not more than the following amounts:
(A) For fiscal year 2004, $116,900,000.
(B) For fiscal year 2005, $109,500,000.
(C) For fiscal year 2006, $114,700,000.
(D) For fiscal year 2007, $202,900,000.
(E) For fiscal year 2008, $164,300,000.
(F) For fiscal year 2009, $155,800,000.
(2) Interest on debt.--Unless the Secretary of
Transportation and the Secretary of the Treasury restructure or
redeem the debt, there are authorized to be appropriated to the
Secretary of Transportation for the use of Amtrak for the
payment of interest on loans for capital equipment, or capital
leases, the following amounts:
(A) For fiscal year 2004, $162,600,000.
(B) For fiscal year 2005, $151,300,000.
(C) For fiscal year 2006, $146,300,000.
(D) For fiscal year 2007, $137,500,000.
(E) For fiscal year 2008, $125,300,000.
(F) For fiscal year 2009, $117,100,000.
(3) Reductions in authorization levels.--Whenever action
taken by the Secretary of the Treasury under subsection (c)
results in reductions in amounts of principle and interest that
Amtrak must service on existing debt, Amtrak shall submit
revised recommendations to the Senate Committee on Commerce,
Science, and Transportation, the House of Representatives
Committee on Transportation and Infrastructure, the Senate
Committee on Appropriations, and House of Representatives
Committee on Appropriations revised requests for amounts
authorized by paragraphs (1) and (2) that reflect the such
reductions.

SEC. 403. GENERAL AMTRAK AUTHORIZATIONS.

(a) Repeal of Self-Sufficiency Requirements.
(1) Title 49 amendments.--Chapter 241 is amended--
(A) by striking the last sentence of section
24101(d); and
(B) by striking the last sentence of section
24104(a).
(2) Amtrak reform and accountability act amendments.--Title
II of the Amtrak Reform and Accountability Act of 1997 (49
U.S.C. 24101 nt) is amended by striking sections 204 and 205.
(3) Common stock redemption date.--Section 415 of the
Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304
nt) is amended by striking subsection (b).
(b) Lease Arrangements.--Amtrak may obtain services from the
Administrator of General Services, and the Administrator may provide
services to Amtrak, under section 201(b) and 211(b) of the Federal
Property and Administrative Service Act of 1949 (40 U.S.C. 481(b) and
491(b)) for each of fiscal years 2004 through 2008.
(c) Financial Powers.--Section 415(d) of the Amtrak Reform and
Accountability Act of 1997 by adding at the end the following:
``(3) This section does not affect the applicability of
section 3729 of title 31, United States Code, to claims made
against Amtrak.''.

SEC. 404. EXCESS RAILROAD RETIREMENT.

Beginning in fiscal year 2004, the Secretary of the Treasury each
year shall pay to the Railroad Retirement Account an amount equal to
the amount Amtrak must pay under section 3221 of the Internal Revenue
Code of 1986 in fiscal years that is more than the amount needed for
benefits for individuals who retire from Amtrak and for their
beneficiaries. There are authorized to be appropriated such sums as may
be necessary in each fiscal year beginning after fiscal year 2004 for
these payments.

SEC. 405. AUTHORIZATIONS FOR ENVIRONMENTAL COMPLIANCE AND STATION
IMPROVEMENTS.

(a) Environmental Compliance.--There are authorized to be
appropriated to the Secretary of Transportation for the use of Amtrak
in order to comply with environmental regulations the following
amounts:
(1) For fiscal year 2004, $18,800,000.
(2) For fiscal year 2005, $21,700,000.
(3) For fiscal year 2006, $22,300,000.
(4) For fiscal year 2007, $15,100,000.
(5) For fiscal year 2008, $15,900,000.
(6) For fiscal year 2009, $16,000,000.
(b) Capital Improvements to Stations.--
(1) In general.--There are authorized to be appropriated to
the Secretary of Transportation for the use of Amtrak for
capital improvements to stations, including an initial
assessment of the full set of accessibility needs across the
national rail passenger transportation system and improved
accessibility for the elderly and people with disabilities and
in Amtrak facilities and stations, the following amounts:
(A) For fiscal year 2004, $17,100,000.
(B) For fiscal year 2005, $19,800,000.
(C) For fiscal year 2006, $19,800,000.
(D) For fiscal year 2007, $19,000,000.
(E) For fiscal year 2008, $19,000,000.
(F) For fiscal year 2009, $19,000,000.
(2) Study of compliance requirements at existing intercity
rail stations.--Amtrak shall evaluate the improvements
necessary to make all existing stations it serves readily
accessible to and usable by individuals with disabilities, as
required by section 242(e)(2) of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12162(e)(2)). The
evaluation shall include the estimated cost of the improvements
necessary, the identification of the responsible person (as
defined in section 241(5) of that Act (42 U.S.C. 12161(5))),
and the earliest practicable date when such improvements can be
made. Amtrak shall submit the survey to the Senate Committee on
Commerce, Science, and Transportation, the House of
Representatives Committee on Transportation and Infrastructure,
and the National Council on Disability by September 30, 2005, along
with recommendations for funding the necessary improvements.

SEC. 406. TUNNEL LIFE SAFETY.

(a) Life Safety Needs.--There are authorized to be appropriated to
the Secretary of Transportation for the use of Amtrak for fiscal year
2004:
(1) $677,000,000 for the 6 New York tunnels built in 1910
to provide ventilation, electrical, and fire safety technology
upgrades, emergency communication and lighting systems, and
emergency access and egress for passengers.
(2) $57,000,000 for the Baltimore & Potomac tunnel built in
1872 to provide adequate drainage, ventilation, communication,
lighting, and passenger egress upgrades.
(3) $40,000,000 for the Washington, D.C., Union Station
tunnels built in 1904 under the Supreme Court and House and
Senate Office Buildings to improve ventilation, communication,
lighting, and passenger egress upgrades.
(b) Infrastructure Upgrades.--There are authorized to be
appropriated to the Secretary of Transportation for the use of Amtrak
$3,000,000 for fiscal year 2004 for the preliminary design of options
for a new tunnel on a different alignment to augment the capacity of
the existing Baltimore tunnels.
(c) Financial Contribution From Other Tunnel Users.--The Secretary
shall, taking into account the need for the timely completion of all
life safety portions of the tunnel projects described in subsection
(a)--
(1) consider the extent to which rail carriers other than
Amtrak use the tunnels;
(2) consider the feasibility of seeking a financial
contribution from those other rail carriers toward the costs of
the projects; and
(3) obtain financial contributions or commitments from such
other rail carriers if feasible.
(d) Availability of Funds.--Amounts appropriated pursuant to this
section shall remain available until expended.

SEC. 407. AUTHORIZATION FOR CAPITAL AND OPERATING EXPENSES.

(a) Operating Expenses.--There are authorized to be appropriated to
the Secretary of Transportation for the use of Amtrak for operating
costs the following amounts:
(1) For fiscal year 2004, $581,000,000.
(2) For fiscal year 2005, $567,000,000.
(3) For fiscal year 2006, $558,000,000.
(4) For fiscal year 2007, $529,000,000.
(5) For fiscal year 2008, $522,000,000.
(6) For fiscal year 2009, $522,000,000.
(b) Capital Backlog and Upgrades.--There are authorized to be
appropriated to the Secretary of Transportation for the use of Amtrak
for capital expenses, the following amounts:
(1) For fiscal year 2004, $674,000,000.
(2) For fiscal year 2005, $765,000,000.
(3) For fiscal year 2006, $733,000,000.
(4) For fiscal year 2007, $604,000,000.
(5) For fiscal year 2008, $560,000,000.
(6) For fiscal year 2009, $565,000,000.
(c) Reductions.--Amounts authorized under subsection (b) shall be
reduced by amounts equal to grants provided by the Rail Infrastructure
Finance Corporation under title VI of this Act upon receipt to Amtrak
for capital requirements and expenditures listed in the annual budget
and 5 Year Financial Plan required under section 413.

SEC. 408. ESTABLISHMENT OF GRANT PROCESS.

(a) Grant Requests.--Amtrak shall submit grant requests to the
Secretary of Transportation for funds authorized to be appropriated to
the Secretary for the use of Amtrak under sections 405, 406, and 407.
(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 to the Senate Committee
on Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and Infrastructure.
(c) Review and Approval.--
(1) 30-day process.--The Secretary shall complete the
review of a grant request and approve or disapprove the request
within 30 days after the date on which Amtrak submits the grant
request.
(2) Incomplete or deficient requests.--If the Secretary
disapproves the request or determines that the request is
incomplete or deficient, the Secretary shall immediately notify
Amtrak of the reason for disapproval or the incomplete items or
deficiencies. 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 Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Transportation and Infrastructure the remaining deficiencies and
recommend a process for resolving the outstanding portions of the
request.

SEC. 409. STATE-SUPPORTED ROUTES.

The Board of Directors of Amtrak, in consultation with the
Secretary of Transportation and the chief executive officer of each
State and the District of Columbia, shall develop a formula for funding
the operating costs of trains operating on routes not in excess of 750
miles in length that--
(1) is equitable and fair; and
(2) ensures, within 5 years after the date of enactment of
this Act, equal treatment of all States (and the District of
Columbia) and groups of States (including the District of
Columbia).

SEC. 410. RE-ESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY COMMITTEE.

(a) Re-Establishment of Northeast Corridor Safety Committee.--The
Secretary of Transportation shall re-establish the Northeast Corridor
Safety Committee authorized by section 24905(b) of title 49, United
States Code.
(b) Termination Date.--Section 24905(b)(4) is amended by striking
``January 1, 1999,'' and inserting ``January 1, 2009,''.

SEC. 411. AMTRAK BOARD OF DIRECTORS.

(a) In General.--Section 24302 is amended to read as follows:
``Sec. 24302. Board of directors
``(a) Composition and Terms.--
``(1) The board of directors of Amtrak is composed of the
following 9 directors, each of whom must be a citizen of the
United States:
``(A) The President of Amtrak.
``(B) The Secretary of Transportation.
``(C) 7 individuals appointed by the President of
the United States, by and with the advice and consent
of the Senate, with experience and qualifications in or
directly related to rail transportation, including
representatives of freight and passenger rail
transportation, travel, hospitality, cruise line, and
passenger air transportation businesses, consumers of
passenger rail transportation, and State government.
``(2) In selecting individuals described in paragraph (1)
for nominations for appointments to the Board, the President
shall consult with the Speaker of the House of Representatives,
the Minority Leader of the House of Representatives, the
Majority Leader of the Senate, and the Minority Leader of the
Senate and should ensure adequate and balanced representation
of the major geographic regions of the United States.
``(3) An individual appointed under paragraph (1)(C) of
this subsection serves for 5 years or until the individual's
successor is appointed and qualified. Not more than 4
individuals appointed under paragraph (1)(C) may be members of
the same political party.
``(4) The board shall elect a chairman and a vice chairman
from among its membership. The vice chairman shall serve as
chairman in the absence of the chairman.
``(5) The Secretary may be represented at board meetings by
the Secretary's designee.
``(b) Pay and Expenses.--Each director not employed by the United
States Government is entitled to $300 a day when performing board
duties and powers. Each director is entitled to reimbursement for
necessary travel, reasonable secretarial and professional staff
support, and subsistence expenses incurred in attending board meetings.
``(c) Vacancies.--A vacancy on the board is filled in the same way
as the original selection, except that an individual appointed by the
President of the United States under subsection (a)(1)(C) of this
section to fill a vacancy occurring before the end of the term for
which the predecessor of that individual was appointed is appointed for
the remainder of that term. A vacancy required to be filled by
appointment under subsection (a)(1)(C) must be filled not later than
120 days after the vacancy occurs.
``(d) Bylaws.--The board may adopt and amend bylaws governing the
operation of Amtrak. The bylaws shall be consistent with this part and
the articles of incorporation.''.
(b) Effective Date for Directors' Provision.--The amendment made by
subsection (a) shall take effect on October 1, 2003. The members of the
Amtrak Reform Board may continue to serve until 3 directors appointed
by the President under section 24302(a) of title 49, United States
Code, as amended by subsection (a), have qualified for office.

SEC. 412. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR AMTRAK
OPERATIONS BY INDEPENDENT AUDITOR.

(a) In General.--The Inspector General of the Department of
Transportation shall employ an independent financial consultant with
experience in railroad accounting--
(1) to assess Amtrak's financial accounting and reporting
system and practices;
(2) to design and assist Amtrak in implementing a modern
financial accounting and reporting system, on the basis of the
assessment, that will produce accurate and timely financial
information in sufficient detail--
(A) to enable Amtrak to assign revenues and
expenses appropriately to each of its lines of business
and to each major activity within each line of business
activity, including train operations, equipment
maintenance, ticketing, and reservations;
(B) to aggregate expenses and revenues related to
infrastructure and distinguish them from expenses and
revenues related to rail operations; and
(C) to provide ticketing and reservation
information on a real-time basis.
(b) Verification of System; Report.--The Inspector General of the
Department of Transportation shall review the accounting system
designed and implemented under subsection (a) to ensure that it
accomplishes the purposes for which it is intended. The Inspector
General shall report his findings and conclusions, together with any
recommendations, to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Transportation and Infrastructure.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Transportation $2,500,000 for fiscal
year 2004 to carry out subsection (a), such sums to remain available
until expended.

SEC. 413. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

(a) Development of 5-Year Financial Plan.--The Amtrak board of
directors shall submit an annual budget for Amtrak, and a 5-year
financial plan for the fiscal year to which that budget relates and the
subsequent 4 years, prepared in accordance with this section, to the
Secretary of Transportation and the Inspector General of the Department
of Transportation no later than--
(1) the first day of each fiscal year beginning after the
date of enactment of this Act; or
(2) the date that is 60 days after the date of enactment of
an appropriation Act for the fiscal year, if later.
(b) Contents of 5-Year Financial Plan.--The 5-year financial plan
for Amtrak shall include, at a minimum--
(1) all projected revenues and expenditures for Amtrak,
including governmental funding sources;
(2) projected ridership levels for all Amtrak passenger
operations;
(3) revenue and expenditure forecasts for non-passenger
operations;
(4) capital funding requirements and expenditures necessary
to maintain passenger service which will accommodate predicted
ridership levels and predicted sources of capital funding;
(5) operational funding needs, if any, to maintain current
and projected levels of passenger service, including state-
supported routes and predicted funding sources;
(6) projected capital and operating requirements,
ridership, and revenue for any new passenger service operations
or service expansions;
(7) an assessment of the continuing financial stability of
Amtrak, as indicated by factors such as: the ability of the
federal government to adequately meet capital and operating
requirements, Amtrak's access to long-term and short-term
capital markets, Amtrak's ability to efficiently manage its
workforce, and Amtrak's ability to effectively provide
passenger train service.
(8) lump sum expenditures of $10,000,000 or more and
sources of funding.
(9) estimates of long-term and short-term debt and
associated principle and interest payments (both current and
anticipated);
(10) annual cash flow forecasts; and
(11) a statement describing methods of estimation and
significant assumptions.
(c) Standards To Promote Financial Stability.--In meeting the
requirements of subsection (b) with respect to a 5-year financial plan,
Amtrak shall--
(1) apply sound budgetary practices, including reducing
costs and other expenditures, improving productivity,
increasing revenues, or combinations of such practices; and
(2) use the categories specified in the financial
accounting and reporting system developed under section 412
when preparing its 5-year financial plan.
(d) Assessment by DOT Inspector General.--
(1) In general.--The Inspector General of the Department of
Transportation shall assess the 5-year financial plans prepared
by Amtrak under this section to determine whether they meet the
requirements of subsection (b), and may suggest revisions to
any components thereof that do not meet those requirements.
(2) Assessment to be furnished to the congress.--The
Inspector General shall furnish to the House of Representatives
Committee on Appropriations, the Senate Committee on
Appropriations, the House of Representatives Committee on
Transportation and Infrastructure, and the Senate Committee on
Commerce, Science, and Transportation--
(A) an assessment of the annual budget within 90
days after receiving it from Amtrak; and
(B) an assessment of the remaining 4 years of the
5-year financial plan within 180 days after receiving
it from Amtrak.

SEC. 414. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR AMTRAK
ROUTE AND SERVICE PLANNING DECISIONS.

(a) Review.--The Secretary of Transportation shall, in consultation
with the Federal Railroad Administration, execute a contract to obtain
the services of an independent auditor or consultant to research and
define Amtrak's past and current methodologies for determining
intercity passenger rail routes and services.
(b) Recommendations.--The independent auditor or consultant shall
recommend objective methodologies for determining such routes and
services, including the establishment of new routes, the elimination of
existing routes, and the contraction or expansion of services or
frequencies over such routes.
(c) Submittal to Congress.--The Secretary shall submit
recommendations received under subsection (b) to Amtrak, the House of
Representatives Committee on Transportation and Infrastructure, and the
Senate Committee on Commerce, Science, and Transportation
(d) Authorization of Appropriations.--There are authorized to be
made available to the Secretary of Transportation, out of any amounts
authorized by this Act to be appropriated for the benefit of Amtrak and
not otherwise obligated or expended, such sums as may be necessary to
carry out this section.

SEC. 415. METRICS AND STANDARDS.

The Administrator of the Federal Railroad Administration shall, in
consultation with Amtrak and host railroads, develop new or improve
existing metrics and minimum standards for measuring the service
quality of intercity train operations, including on-time performance,
on-board services, stations, facilities, equipment, and other services.

SEC. 416. ON-TIME PERFORMANCE.

Section 24308 is amended by adding at the end the following:
``(f) On-Time Performance and Other Standards.--If the on-time
performance of any intercity passenger train averages less than 80
percent for any consecutive 6-month period, or the service quality of
intercity train operations for which minimum standards are established
under section 415 of the Arrive 21 Act fails to meet those standards,
Amtrak may petition the Surface Transportation Board to investigate
whether, and to what extent, delays or failure to achieve minimum
standards are due to causes that could reasonably be addressed by a
rail carrier over the tracks of which the intercity passenger train
operates, or by a regional authority providing commuter service, if
any. In carrying out such an investigation, the Surface Transportation
Board shall obtain information from all parties involved and make
recommendations regarding reasonable measures to improve the service,
quality, and on-time performance of the train.''.

TITLE V--RAIL INFRASTRUCTURE FINANCE CORPORATION

SEC. 501. ESTABLISHMENT OF CORPORATION.

There is established a nonprofit corporation, to be known as the
``Rail Infrastructure Finance Corporation''. The Rail Infrastructure
Finance Corporation is not an agency or establishment of the United
States Government. The Corporation shall be subject to the provisions
of this title and title VI, and, to the extent consistent with this
section, to the laws of the State of Delaware applicable to
corporations not for profit.

SEC. 502. BOARD OF DIRECTORS.

(a) Appointment.--The Rail Infrastructure Finance Corporation shall
have a Board of Directors consisting of 9 members appointed by the
President, by and with the advice and consent of the Senate. The
President shall submit all nominations for the initial Board not less
than 180 days after the date of enactment of this Act. Not more than 5
members of the Board may be members of the same political party.
(b) Membership Qualifications.--
(1) In general.--The 9 members of the Board shall be
appointed from among citizens of the United States (not regular
full-time employees of the United States) who are eminent in
the fields of rail transportation, rail financing, and
intermodal transportation planning, and the financing and
management of large-scale, long-term public-private cooperative
projects.
(2) Representation of specific interests.--Of the 9 members
of the Board, 8 of the members shall be selected as follows:
(A) 1 member from among individuals who represent
the interests of freight rail transportation.
(B) 1 member from among individuals who represent
the interests of intermodal transportation.
(C) 1 member from among individuals who represent
the interests of passenger rail transportation.
(D) 1 member from among individuals who represent
the interests of the States.
(E) 1 member from among individuals who represent
the interests of intercity passenger rail users.
(F) 1 member from among individuals who represent
the interests of organized rail labor.
(G) 2 members from among persons who are involved
in finance.
(c) Incorporation.--The members initially appointed to the Board of
Directors shall serve as incorporators and, upon the establishment of a
quorum, shall take whatever actions are necessary to establish the
Corporation under the laws of Delaware.
(d) Terms of Office.--Members of the Board shall be appointed for
terms of 6 years. No member of the Board shall be eligible to serve in
excess of 2 consecutive full terms.
(e) Vacancies.--A member of the Board appointed to fill a vacancy
occurring prior to the expiration of the term for which the member's
predecessor was appointed shall be appointed for the remainder of such
term. Upon the expiration of a member's term, the member shall continue
to serve until a successor is appointed.
(f) Attendance Required.--Members of the Board shall attend not
less than 50 percent of all duly convened meetings of the Board in any
calendar year. A member who fails to meet the requirement of the
preceding sentence shall forfeit membership and the President shall
appoint a new member to fill the resulting vacancy not later than 90
days after such vacancy is determined by the Chairman of the Board.
(g) Election of Chairman and Vice Chairman.--Members of the Board
shall annually elect 1 of their members to be Chairman and elect 1 or
more of their members as a Vice Chairman or Vice Chairmen.
(h) Compensation.--The members of the Board shall not, by reason of
such membership, be considered to be officers or employees of the
United States. They shall, while attending meetings of the Board or
while engaged in duties related to such meetings or other activities of
the Board pursuant to this Act, be entitled to receive compensation at
the rate of $300 per day, including traveltime. No Board member shall
receive compensation of more than $10,000 in any fiscal year. While
away from their homes or regular places of business, Board members
shall be allowed travel and actual, reasonable, and necessary expenses.
(i) Meetings Open to Public.--All meetings of the Board of
Directors of the Corporation, including any committee of the Board,
shall be open to the public under such terms, conditions, and
exceptions as the Board may establish.
(j) Quorum and Proceedings.--Five members of the Board shall
constitute a quorum for the Board to conduct business. All decisions of
the Board shall be entered upon the records of the Board.

SEC. 503. OFFICERS AND EMPLOYEES.

(a) In General.--The Rail Infrastructure Finance Corporation shall
have a President, and such other officers as may be named and appointed
by the Board for terms and at rates of compensation fixed by the Board.
No individual other than a citizen of the United States may be an
officer of the Corporation. No officer of the Corporation may receive
any salary or other compensation (except for compensation for services
on boards of directors of other organizations that do not receive funds
from the Corporation, on committees of such boards, and in similar
activities for such organizations) from any sources other than the
Corporation for services rendered during the period of his or her
employment by the Corporation. Service by any officer on boards of
directors of other organizations, on committees of such boards, and in
similar activities for such organizations shall be subject to annual
advance approval by the Board and subject to the provisions of the
Corporation's Statement of Ethical Conduct. All officers shall serve at
the pleasure of the Board. An officer of the corporation shall not be
considered to be an officer or employee of the United States by virtue
of such office.
(b) Nonpartisan Nature of Appointments.--No political test or
qualification shall be used in selecting, appointing, promoting, or
taking other personnel actions with respect to officers, agents, or
employees of the Corporation.

SEC. 504. NONPROFIT AND NONPOLITICAL NATURE OF THE CORPORATION.

(a) Stock.--The Rail Infrastructure Finance Corporation shall have
no power to issue any shares of stock, or to declare or pay any
dividends.
(b) No Private Benefit.--No part of the income or assets of the
Corporation shall inure to the benefit of any director, officer,
employee, or any other individual except as salary or reasonable
compensation for services.
(c) Political Activity Prohibited.--The Corporation may not
contribute to or otherwise support any political party or candidate for
elective public office.
(d) Conflicts of Interest.--No director, officer, or employee of
the Corporation shall in any manner, directly or indirectly,
participate in the deliberation upon or the determination of any
question affecting his or her personal interests or the interests of
any corporation, partnership, or organization in which he or she has a
direct or indirect financial interest. Board members shall recuse
themselves from Board decisions that directly affect either them or
entities they represent regarding grants and other financial assistance
provided to States by the Board.

SEC. 505. PURPOSE AND ACTIVITIES OF CORPORATION.

(a) Purpose.--The Rail Infrastructure Finance Corporation shall,
through the issuance of qualified rail infrastructure bonds in
accordance with section 54 of the Internal Revenue Code of 1986 and
this title, provide financial support for rail transportation capital
projects under title VI of this Act.
(b) Bond Issuance Authority.--
(1) In general.--In order to carry out its purposes, the
Corporation is authorized to issue qualified rail
infrastructure bonds (as defined in section 54(e) of the
Internal Revenue Code of 1986) during the 6-year period
beginning on the day after the date of enactment of this Act.
(2) Limitation.--The total face amount of the bonds
outstanding under paragraph (1) at any time may not exceed
$30,000,000,000.
(3) No federal guarantee.--
(A) Obligations insured by the corporation.--No
obligation that is insured, guaranteed, or otherwise
backed by the Corporation shall be deemed to be an
obligation that is guaranteed by the full faith and
credit of the United States.
(B) Special rule.--This paragraph shall not affect
the determination of whether such obligation is
guaranteed for purposes of Federal income taxes.
(C) Securities offered by the corporation.--No debt
or equity securities of the Corporation shall be deemed
to be guaranteed by the full faith and credit of the
United States.
(4) Authority.--To carry out the foregoing purposes and
engage in the foregoing activities, the Corporation shall have
the usual powers conferred upon a nonprofit corporation under
the laws of the State of Delaware.
(c) Federal Assistance.--The Corporation shall be eligible to
receive discretionary grants, contracts, gifts, contributions, or
technical assistance from any department or agency of the Federal
Government, but only to the extent permitted by law and to the extent
necessary to carry out the purpose set forth in subsection (a) and the
activities described in subsection (b).
(d) Status Under Federal Securities Laws.--
(1) In general.--For purposes of the Securities Act of
1933, the Securities Exchange Act of 1934 or the Trust
Indenture Act of 1939, the Rail Infrastructure Finance
Corporation shall not be considered an agency or
instrumentality of the United States or any State or Territory
thereof nor an entity described in section 3(a)(4) of the
Securities Act of 1933 and shall not be entitled to rely on any
exemption from those laws. Any security offered or sold or
guaranteed by the Rail Infrastructure Finance Corporation may
not be offered or sold in reliance on any exemption from
registration under the Securities Act of 1933, unless exempted
by rule or regulation of the Securities and Exchange
Commission. For so long as the Rail Infrastructure Finance
Corporation has any securities outstanding, it may not rely on
the rules promulgated under the Securities Exchange Act of 1934
to voluntarily terminate or suspend the Rail Infrastructure
Finance Corporation's obligations to comply with the reporting
requirements of the Securities Exchange Act of 1934 with regard
to any of its outstanding securities and the provisions of
section 15(d)(6) of the Securities Exchange Act of 1934 shall
not apply to the Rail Infrastructure Finance Corporation,
unless exempted by rule, regulation, or order of the Securities
and Exchange Commission.
(2) Relationship to federal securities laws.--Except as
provided in paragraph (1), no provision of this section or any
regulation issued by any other Federal agency shall supercede
or otherwise affect the application of the Federal securities
laws (as such term is defined in section 2(a)(47) of the
Securities Exchange Act of 1934) or the rules, regulations, or
orders of the Securities and Exchange Commission promulgated
under those laws.

SEC. 506. REPORT TO CONGRESS.

(a) In General.--On or before May 15 of each year, the Rail
Infrastructure Finance Corporation shall submit an annual report for
the fiscal year ending on September 30 of the preceding year to the
Senate Committee on Commerce, Science, and Transportation and the House
of Representatives Committee on Transportation and Infrastructure. The
report shall include a comprehensive and detailed report of the
Corporation's operations, activities, financial condition, and
accomplishments under this title and such recommendations as the
Corporation deems appropriate.
(b) Availability for Testimony.--The officers and directors of the
Corporation shall be available to testify before those committees with
respect to such report or any other matter which such committees may
determine.

SEC. 507. ADMINISTRATIVE MATTERS.

(a) Budget.--The Rail Infrastructure Finance Corporation shall
establish an annual budget for the Corporation, including the Rail
Infrastructure Investment Account under subsection (c).
(b) Implementation Plan.--
(1) Requirement for plan.--The Corporation shall conduct a
study and prepare a plan on how the Corporation can best
achieve the purposes and fulfill the requirements of this
title.
(2) Consultation.--In preparing the plan, the Corporation
may consult with representatives of State and local
governments, railroads, and other similar entities.
(3) Other requirements.--The plan, which shall be based on
the conclusions resulting from the study conducted under
paragraph (1), shall be submitted by the Corporation to the
Senate Committee on Commerce, Science, and Transportation and
the House of Representatives Committee on Transportation and
Infrastructure not later than 180 days after the date on which
the Corporation is incorporated. Unless directed otherwise by
law, the Corporation shall implement the plan during the first
fiscal year beginning after the fiscal year in which the plan
is submitted to Congress.
(c) Rail Infrastructure Investment Account.--
(1) Establishment.--The Board of Directors for the
Corporation shall establish an account to be known as the Rail
Infrastructure Investment Account.
(2) Deposit of bond proceeds.--The Corporation shall
deposit the proceeds of sales of any bonds issued under section
54 of the Internal Revenue Code of 1986 into the Account.
(3) Deposit of non-federal contributions.--The Board shall
deposit all non-Federal contributions received into the
Account.
(4) Disbursements.--The Board may make available and may
disburse, during the first fiscal year beginning after the date
of enactment of this Act and during each succeeding fiscal year
thereafter, such funds as may be available for obligation and
expenditure from the Account.
(5) Use of account funds.--Funds in the Account--
(A) shall be used by the Corporation for investment
purposes through the trust established under section
508 to generate an amount sufficient--
(i) to repay the principal of the bonds at
their maturity; and
(ii) to pay the administrative costs of the
Corporation and the Rail Infrastructure Finance
Trust under section 508; and
(B) shall, to the extent of the net spendable
proceeds in the account, be held in the Rail
Infrastructure Finance Trust established under section
508 and be available for distribution as grants of
financial assistance under title VI of this Act.
(6) Net spendable proceeds defined.--In this subsection,
the term ``net spendable proceeds'', with respect to the Rail
Infrastructure Investment Account, means the amount, determined
by the Board of Trustees of the Rail Infrastructure Finance
Trust, equal to the excess of--
(A) the total amount in such Account, over
(B) the amount in such Account that is needed for
uses under paragraph (5)(A).
(d) Records and Audit.--
(1) In general.--The account of the Corporation shall be
audited annually in accordance with generally accepted auditing
standards by independent certified public accountants or
independent licensed public accountants certified or licensed
by a regulatory authority of a State or other political
subdivision of the United States. The audits shall be conducted
at the place or places where the accounts of the Corporation
are normally kept. All books, accounts, financial records,
reports, files, and all other papers, things, or property
belonging to or in use by the Corporation and necessary to
facilitate the audits shall be made available to the person or
persons conducting the audits; and full facilities for
verifying transactions with the balances or securities held by
depositories, fiscal agents and custodians shall be afforded to
such person or persons.
(2) Audit report.--The report of each such independent
audit shall be included in the annual report required by
section 506. The audit report shall set forth the scope of the
audit and include such statements as are necessary to present
fairly the Corporation's assets and liabilities, surplus or
deficit, with an analysis of the changes therein during the
year, supplemented in reasonable detail by a statement of the
Corporation's income and expenses during the year, and a
statement of the sources and application of funds, together
with the independent auditor's opinion of those statements.
(3) Accounting principles.--Not later than 1 year after the
date of the enactment of this Act, the Corporation shall
develop accounting principles which shall be used uniformly by
all entities receiving funds under this Act, taking into
account organizational differences among various categories of
such entities. Such principles shall be designed to account
fully for all funds received and expended for purposes of this
Act by such entities.
(4) Requirements for recipients.--Each entity receiving
funds under this Act shall--
(A) keep its books, records, and accounts in such
form as may be required by the Corporation;
(B) either--
(i) undergo an annual audit by independent
certified public accountants or independent
licensed public accountants certified or
licensed by a regulatory authority of a State,
which audit shall be in accordance with
auditing standards developed by the
Corporation; or
(ii) submit a financial statement in lieu
of the audit required by subparagraph (A) if
the Corporation determines that the cost burden
of such audit on such entity is excessive in light of the financial
condition of such entity; and
(C) furnish biennially to the Corporation a copy of
the audit report required pursuant to the subparagraph
(B), as well as such other information regarding
finances (including an annual financial report) as the
Corporation may require.
(5) Additional recordkeeping.--Any recipient of assistance
by grant or contract under this section, other than a fixed
price contract awarded pursuant to competitive bidding
procedures, shall keep such records as may be reasonably
necessary to disclose fully the amount and the disposition by
such recipient of such assistance, that total cost of the
project or undertaking in connection with which such assistance
is given or used, and the amount and nature of that portion of
the cost of the projects or undertaking supplied by other
sources, and such other records as will facilitate an effective
audit.
(6) Access to records.--The Corporation or any of its duly
authorized representatives shall have access to any books,
documents, papers, and records of any recipient of assistance
for the purpose of auditing and examining all funds received
from the Corporation.
(7) Public inspection.--The Corporation shall maintain the
information described in paragraphs (4), (5), and (6) at its
offices for public inspection and copying for at least 3 years,
according to such reasonable guidelines as the Corporation may
issue. This public file shall be updated regularly.

SEC. 508. RAIL INFRASTRUCTURE FINANCE TRUST.

(a) Establishment.--The Board of Directors of the Rail
Infrastructure Finance Corporation shall establish the Rail
Infrastructure Finance Trust (hereafter in this section referred to as
the ``Trust'') as a trust domiciled in the State of Delaware before the
issuance of bonds under section 505(b). The Trust shall, to the extent
not inconsistent with this Act, be subject to the laws of the State of
Delaware that are applicable to trusts. The Trust shall manage and
invest the assets of the Rail Infrastructure Account described in
section 507(c) that are transferred to it by the Board in the manner
set forth in this section.
(b) Not a Federal Agency or Instrumentality.--The Trust is not a
department, agency, or other instrumentality of the Government of the
United States and shall not be subject to title 31, United States Code.
(c) Board of Trustees.--
(1) Establishment.--The Trust shall have a Board of
Trustees.
(2) Composition.--
(A) Appointment.--The Board of Trustees shall
consist of 5 members (hereafter in this title referred
to as ``Trustees'') 3 of whom shall be appointed by a
unanimous vote of the Board of Directors of the Rail
Infrastructure Finance Corporation.
(B) Representation of particular interests.--The 3
members of the Board of Trustees shall be selected as
follows:
(i) 1 from among persons who represent the
interests of the States.
(ii) 1 from among persons who represent the
interests of freight and passenger railroads.
(iii) 1 from among persons who represent
the interests of holders of qualified rail
infrastructure bonds issued by the Rail
Infrastructure Corporation.
(C) The 2 Trustees not appointed under subparagraph
(A) shall be elected directly by holders of qualified
rail infrastructure bonds issued by the Rail
Infrastructure Corporation through procedures
established by the Board of Trustees to represent the
interests of such bond holders. The election shall be
held, and both members elected under this subparagraph
shall take office as Trustees, within 1 year after the
initial issuance of bonds under section 505(b).
(3) Members not united states officials.--The members of
the Board of Trustees may not be considered officers or
employees of the Government of the United States.
(4) Qualifications.--The Trustees shall be appointed only
from among persons who have experience and expertise in the
management of financial investments. No member of the Board of
Directors of the Rail Infrastructure Finance Corporation is
eligible to be a Trustee.
(5) Terms.--Each member of the Board of Trustees shall be
appointed for a 3-year term. Any member whose term has expired
may serve until such member's successor has taken office, or
until the end of the calendar year in which such member's term
has expired, whichever is earlier. A vacancy in the Board of
Trustees shall not affect the powers of the Board of Trustees
and shall be filled in the same manner as the member whose
departure caused the vacancy. Any member appointed to fill a
vacancy occurring prior to the expiration of the term for which
the member's predecessor was appointed shall be appointed for
the remainder of such term.
(d) Powers.--The Board of Trustees shall--
(1) establish investment policies, including guidelines,
and retain independent advisers to assist in the formulation
and adoption of the investment guidelines;
(2) retain independent investment managers to invest the
assets of the Trust in a manner consistent with such investment
guidelines;
(3) invest assets in the Trust, pursuant to the policies
adopted in paragraph (1);
(4) pay administrative expenses of the Trust from the
assets in the Trust;
(5) transfer money to the Rail Infrastructure Investment
Account, upon request of the Board of Directors of the Rail
Infrastructure Finance Corporation, for bond repayment and
administrative expenses;
(6) develop a formula, subject to approval by the Board of
Directors before the issuance of bonds under section 505(b),
for determining when there is a sufficient trust income stream
for purposes of paragraph (7); and
(7) transfer net spendable proceeds to the Board of
Directors to be used for grants under title VI of this Act
after determining that adequate trust funds are available, or
that there is a trust income stream sufficient, to allow the
Board of Trustees to meet its obligations under paragraphs (4)
and (5).
(e) Reporting Requirements and Fiduciary Standards.--The following
reporting requirements and fiduciary standards shall apply with respect
to the Trust:
(1) Duties of the board of trustees.--The Trust and each
member of the Board of Trustees shall discharge the duties of
the Trust and the duties of the Trustee, respectively
(including the voting of proxies), with respect to the assets
of the Trust solely in the interests of the Rail Infrastructure
Finance Corporation and the programs funded under this title--
(A) for the exclusive purposes of--
(i) providing sufficient funds to repay
qualified rail infrastructure bonds issued by
the Rail Infrastructure Finance Corporation,
(ii) funding the administrative costs of
the Rail Infrastructure Finance Corporation;
(iii) defraying reasonable expenses of
administering the Trust; and
(iv) providing grants for rail capital
projects under title VI of this Act; and
(B) with the care, skill, prudence, and diligence
under the circumstances then prevailing that a prudent
person acting in a like capacity and familiar with such
matters would use in the conduct of an enterprise of a
like character and with like aims;
(C) by diversifying investments so as to minimize
the risk of large losses and to avoid disproportionate
influence over a particular industry or firm, unless
under the circumstances it is clearly prudent not to do
so; and
(D) in accordance with Trust governing documents
and instruments insofar as such documents and
instruments are consistent with this title.
(2) Prohibitions with respect to members of the board of
trustees.--A member of the Board of Trustees may not--
(A) deal with the assets of the Trust in the
Trustee's own interest or for the Trustee's own
account;
(B) act in an individual or in any other capacity,
in any transaction involving the assets of the Trust on
behalf of a party (or represent a party) whose
interests are adverse to the interests of the Trust and
the Rail Infrastructure Finance Corporation; or
(C) receive any consideration for the Trustee's own
personal account from any party dealing with the assets
of the Trust.
(3) Exculpatory provisions and insurance.--Any provision in
an agreement or instrument that purports to relieve a Trustee
from responsibility or liability for any responsibility,
obligation, or duty under this Act shall be void. Nothing in
this paragraph shall be construed to preclude--
(A) the Trust from purchasing insurance for its
Trustees or for itself to cover liability or losses
occurring by reason of the act or omission of a
Trustee, if such insurance permits recourse by the
insurer against the Trustee in the case of a breach of
a fiduciary obligation by such Trustee;
(B) a Trustee from purchasing insurance to cover
liability under this section from and for his own
account; or
(C) an employer or an employee organization from
purchasing insurance to cover potential liability of 1
or more Trustees with respect to their fiduciary
responsibilities, obligations, and duties under this
section.
(4) Trustees, bonds.--
(A) Requirement.--Each Trustee and every person who
handles funds or other property of the Trust (hereafter
in this section referred to as ``Trust official'')
shall be bonded. The bond shall provide protection to
the Trust against loss by reason of acts of fraud or
dishonesty on the part of any Trust official, directly
or through the connivance of others.
(B) Amount.--The amount of a bond for a Trustee
under this paragraph shall be fixed at the beginning of
each fiscal year of the Trust by the Board of Directors
of the Rail Infrastructure Finance Corporation. The
amount may not be less than 10 percent of the amount of
the funds administered by the Trust.
(C) Unlawful conduct.--It shall be unlawful for--
(i) any Trust official to receive, handle,
disburse, or otherwise exercise custody or
control of any of the funds or other property
of the Trust without being bonded as required
by this subsection;
(ii) any Trust official, or any other
person having authority to direct the
performance of such functions, to permit such
functions, or any of them, to be performed by
any Trust official, with respect to whom the
requirements of this subsection have not been
met; and
(iii) any person to procure any bond
required by this subsection from any surety or
other company or through any agent or broker in
whose business operations such person has any
control or significant financial interest,
direct or indirect.
(f) Administrative Matters.--
(1) Authority.--The Board of Trustees shall have the
authority to make rules to govern its operations, employ
professional staff, and contract with outside advisors
(including the Rail Infrastructure Finance Corporation) to
provide legal, accounting, investment advisory, or other
services necessary for the proper administration of this
section. In the case of a contract for investment advisory
services, compensation for such services may be provided on a
fixed fee basis or on such other terms and conditions as are
customary for such services.
(2) Quorum and proceedings.--Three members of the Board of
Trustees shall constitute a quorum for the Board to conduct
business. Investment guidelines shall be adopted by a unanimous
vote of the entire Board of Trustees. All other decisions of
the Board of Trustees shall be decided by a majority vote of
the quorum present. All decisions of the Board of Trustees
shall be entered upon the records of the Board of Trustees.
(3) Compensation of trustees and employees.--The salaries
of the Trustees are subject to the limitations in section
502(h).
(4) Compensation arrangements.--The Board of Trustees may
compensate investment advisory service providers and employees
of the Trust on a fixed contract fee basis or on such other
terms and conditions as are customary for such services.
(5) Funding.--The expenses of the Trust and the Board of
Trustees that are incurred under this section shall be paid
from the Trust.
(g) Audit and Report.--
(1) Requirement for annual audit.--The Trust shall annually
engage an independent qualified public accountant to audit the
financial statements of the Trust.
(2) Annual management report.--The Trust shall submit an
annual management report to be included in the annual report of
the Corporation required under section 506. The management
report under this paragraph shall include the following
matters:
(A) A statement of financial position.
(B) A statement of operations.
(C) A statement of cash flows.
(D) A statement on internal accounting and
administrative control systems.
(E) The report resulting from an audit of the
financial statements of the Trust conducted under
paragraph (1).
(F) Any other comments and information necessary to
inform Congress about the operations and financial
condition of the Trust.
(h) Enforcement.--The Rail Infrastructure Finance Corporation may
commence a civil action--
(1) to enjoin any act or practice by the Trust, its Board
of Trustees, or its employees or agents that violates any
provision of this title; or
(2) to obtain other appropriate relief to redress such
violations, or to enforce any provisions of this title.
(i) Exemption From Tax for Rail Infrastructure Finance Trust.--
Subsection (c) of section 501 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new paragraph:
``(29) The Rail Infrastructure Finance Trust established
under section 408 of the Arrive 21 Act.''.

TITLE VI--RAIL DEVELOPMENT GRANT PROGRAMS

SEC. 601. INTERCITY PASSENGER RAIL DEVELOPMENT GRANT PROGRAM.

(a) Grants to States.--The Board of Directors of the Rail
Infrastructure Finance Corporation may, by grant, provide financial
assistance to a State, a group of States, or the National Railroad
Passenger Corporation for, or in connection with, 1 or more intercity
passenger rail capital projects that--
(1) in accordance with section 22504(a)(5) of title 49,
United States Code, are listed in a State rail plan approved
for such State under chapter 225 of such title; and
(2) as determined by the Board, would primarily benefit
intercity passenger rail infrastructure or services or the
development of passenger rail corridors (including high-speed
rail corridors designated by the Secretary under section 104(d)
of title 23, United States Code) and provide significant public
benefits.
(b) Purposes Eligible for Grant Funding.--The purposes for which
grants may be made under subsection (a) for, or in connection with, an
intercity passenger rail capital project described in that subsection
are as follows:
(1) Planning, including activities described in section
26101(b)(1) of title 49, United States Code, and environmental
impact studies.
(2) New rail line development, including right of way and
infrastructure acquisition and construction of track and
facilities.
(3) Track upgrades and restoration.
(4) Highway-rail grade crossing improvement or elimination.
(5) Track, infrastructure, and facility relocation.
(6) Acquisition, financing, or refinancing of locomotives
and rolling stock.
(7) Intermodal and station facilities.
(8) Tunnel and bridge repair or replacement.
(9) Communications and signaling improvements.
(10) Environmental impact mitigation.
(11) Security improvements.
(12) Supplemental funding for direct loans or loan
guarantees made under title V of the Railroad Revitalization
and Regulatory Reform Act of 1976 (45 U.S.C. 821 et seq.).
(13) Payment of credit risk premiums, to lower rates of
interest, or to provide for a holiday on principal payments on
loan or financing directly associated with rail capital
projects described in paragraphs (1) through (11).
(c) Project Selection Criteria.--The Board, in selecting the
recipients of financial assistance to be provided under subsection (a),
shall--
(1) require that each proposed project meet all safety
requirements that are applicable to the project under law, and
give a preference to any project determined by the Board as
having provided for particularly high levels of safety;
(2) give preference to projects with high levels of
estimated ridership, increased ontime performance, reduced trip
time, additional service frequency, or other significant
service enhancements as measured against minimum standards
developed under section 415 of this Act;
(3) encourage intermodal connectivity through projects that
provide direct connections between train stations, airports,
bus terminals, subway stations, ferry ports, and other modes of
transportation;
(4) ensure a general balance across geographic regions of
the United States in providing such assistance and avoid a
concentration of a disproportionate amount of such financial
assistance in a single project, State, or region of the
country;
(5) encourage projects that also improve freight or
commuter rail operations;
(6) ensure that each project is compatible with, and is
operated in conformance with--
(A) plans developed pursuant to the requirements of
section 135 of title 23, United States Code;
(B) State rail plans under chapter 225 of title 49,
United States Code; and
(C) the national rail plan (if it is available);
and
(7) favor the following kinds of projects:
(A) Projects that are expected to have a
significant favorable impact on air or highway traffic
congestion, capacity, or safety.
(B) Projects that have significant environmental
benefits.
(C) Projects that are--
(i) at a stage of preparation that all pre-
commencement compliance with environmental
protection requirements has already been
completed; and
(ii) ready to be commenced.
(D) Projects with positive economic and employment
impacts.
(E) Projects that encourage the use of positive
train control technologies.
(F) Projects that have commitments of funding from
non-Federal Government sources in a total amount that
exceeds the minimum amount of the non-Federal
contribution required for the project.
(G) Projects that involve donated property
interests or services.
(H) Projects that enhance national security.
(d) Amtrak Eligibility.--To receive a grant under this section, the
National Railroad Passenger Corporation may enter into a cooperative
agreement with 1 or more States to carry out 1 or more projects on an
approved State rail plan's ranked list of priority freight and
passenger rail capital projects developed under section 22504(a)(5) of
title 49, United States Code, or may submit an independent application
for a grant for any eligible project under this section. Any such
independent grant request shall be subject to the same selection
criteria as apply under subsection (b) to projects of States, except
the criteria set forth in subsection (a)(1) and subparagraphs (A) and
(B) of subsection (b)(12).
(e) Limitations.--
(1) 2-year availability.--If any amount provided as a grant
to a State or the National Railroad Passenger Corporation under
this section is not obligated or expended for the purposes
described in subsection (a) or (b) within 2 years after the
date on which the State or Corporation received the grant, such
sums shall be returned to the Board for other intercity
passenger rail development projects under this section at the
discretion of the Board.
(2) Single project amount.--In awarding grants to States or
the National Railroad Passenger Corporation for eligible
projects under this section, the Board shall limit the amount
of any grant made for a particular project in a fiscal year to
not more than 30 percent of the total amount of the funds
available for grants under this section for that fiscal year.
(3) Amtrak.--The total amount of grants made under this
section solely to the National Railroad Passenger Corporation
in a fiscal year may not exceed 50 percent of the total amount
available under this section for all grants in that fiscal
year.
(f) Funding.--Amounts reserved for grants for a fiscal year under
section 606(b)(1) shall be available for grants under this section.
(g) Public Benefit.--The term ``public benefit'' means a benefit
accrued to the public in the form of enhanced mobility of people or
goods, environmental protection or enhancement, congestion mitigation,
enhanced trade and economic development, improved air quality or land
use, more efficient energy use, enhanced public safety or security,
reduction of public expenditures due to improved transportation
efficiency or infrastructure preservation, and any other positive
community effects as defined by the Secretary.

SEC. 602. FREIGHT RAIL INFRASTRUCTURE DEVELOPMENT GRANT PROGRAM.

(a) Grants to States.--The Board of Directors of the Rail
Infrastructure Finance Corporation shall, by grant, provide financial
assistance to a State or group of States--
(1) for, or in connection with, 1 or more freight rail
capital projects that--
(A) in accordance with section 22504(a)(5) of title
49, United States Code, are listed in a State rail plan
approved for such State under chapter 225 of such
title; and
(B) as determined by the Board, would primarily
benefit freight rail transportation infrastructure or
services, but also would provide significant public
benefits; or
(2) for the payment of staff expenses associated with the
management of State rail programs and the development and
updating of State rail plans under chapter 225 of title 49,
United States Code.
(b) Purposes Eligible for Grant Funding.--The purposes for which
grants may be made under subsection (a)(1) for, or in connection with,
a freight rail capital project are as follows:
(1) Planning, including activities described in section
26101(b)(1) of title 49, United States Code, and environmental
impact studies.
(2) New rail line development, including infrastructure
acquisition and construction of track and facilities.
(3) Track upgrades and restoration.
(4) Highway-rail grade crossing improvement or elimination.
(5) Track, infrastructure, and facility relocation.
(6) Intermodal facilities.
(7) Tunnel and bridge repair or replacement.
(8) Communications and signaling improvements.
(9) Environmental impact mitigation.
(10) Security improvements.
(11) Supplemental funding for direct loans or loan
guarantees made under title V of the Railroad Revitalization
and Regulatory Reform Act of 1976 (45 U.S.C. 821 et seq.) for
projects described in the last sentence of section 502(d) of
that Act (45 U.S.C. 822(d)).
(12) Payment of credit risk premiums, to lower rates of
interest, or to provide for a holiday on principal payments on
loan or financing directly associated with capital projects
described in paragraphs (1) through (9).
(c) State Grant Funding Formula.--Of the total amount reserved for
a grant program under section 606(b)(2) for a fiscal year, there shall
be reserved for each State (to fund grants made to such State under
this section) the amount determined for such State in accordance with a
formula prescribed by the Board to weigh equally for each State--
(1) the number of rail miles in active use in the State;
(2) the number of rail cars loaded in the State;
(3) the number of rail cars unloaded in the State; and
(4) the number of railroad and public road grade crossings
in the State.
(d) Period of Availability for Grants.--
(1) Three-year reservation.--The amount reserved for grant
to a State under section (c) in a fiscal year shall be
available for grant to such State in such fiscal year and the 2
successive fiscal years.
(2) Cancellation at end of period.--At the end of the third
of the 3 successive fiscal years, the reservation of any part
of the amount for a State that has not been awarded in a grant
to such State shall be canceled, and the amount of the canceled
reservation--
(A) shall be merged with the funds reserved for the
grant program under section 606(b)(2) for the next
fiscal year; and
(B) shall be reserved for each State in accordance
with the formula provided under this section.
(e) Two-Year Availability.--If any amount provided as a grant to a
State under this section is not obligated or expended for the purposes
described in subsection (a) or (b) within 2 years after the date on
which the State received the grant, such sums shall be returned to the
Board for other freight rail capital projects under this section at the
discretion of the Board.

SEC. 603. HIGH PRIORITY PROJECTS GRANT PROGRAM.

(a) Grants to States.--The Board of Directors of the Rail
Infrastructure Finance Corporation may, by grant, provide financial
assistance to a State, a group of States, or the National Railroad
Passenger Corporation for intercity passenger rail and freight rail
infrastructure development projects that are designated as high
priority projects under section 22505 of title 49, United States Code.
(b) Purposes.--The purposes for which a grant may be made under
this section are--
(1) in the case of an intercity passenger rail corridor
development project, the same purposes as are provided under
section 601; and
(2) in the case of a freight rail infrastructure
development project, the same purposes as are provided under
section 602.
(c) Preferred Projects.--In selecting the projects to receive
financial assistance under this section, the Board shall give
preference to a project that--
(1) provides for use of positive train control
technologies;
(2) provides for particularly high levels of safety;
(3) increases intermodal connectivity by providing or
improving direct connections between rail facilities and other
modes of transportation;
(4) assists the Board--
(A) to achieve a general balance across geographic
regions of the United States in the awarding of grants
under this section; and
(B) to avoid a concentration of a disproportionate
amount of such financial assistance in a single
project, State, or region of the country;
(5) has a significant favorable impact on highway,
aviation, or maritime capacity, congestion, or safety;
(6) improves the national intercity passenger rail system
through higher levels of estimated ridership, reduced trip
time, increased ontime performance, additional service
frequency, or other significant service enhancements as
measured against minimum standards developed under section 415
of this Act;
(7) has positive economic and employment impacts;
(8) has significant environmental benefits;
(9) is--
(A) at the stage of preparation that all pre-
commencement compliance with environmental protection
requirements has been completed; and
(B) ready to be commenced;
(10) has received financial commitments and other support
from non-Federal entities such as States, local governments,
and private entities;
(11) has commitments of funding from non-Federal Government
sources in a total amount that exceeds the minimum amount of
the non-Federal contribution required; and
(12) involves donated property interests or services.
(d) Amtrak Eligibility.--To receive a grant under this section, the
National Railroad Passenger Corporation may submit an independent
application or may enter into a cooperative agreement with 1 or more
States to carry out 1 or more high priority projects designated under
section 22506 of title 49, United States Code. Any such independent
grant request shall be subject to the same conditions as apply under
this section to projects of States.
(e) Limitations.--
(1) Two-year availability.--If any amount provided as a
grant to a State or the National Railroad Passenger Corporation
under this section is not obligated or expended for the
purposes for which the grant is made within 2 years after the
date on which the State or the National Railroad Passenger
Corporation received the grant, such sums shall be returned to
the Board for other high priority projects under this section
at the discretion of the Board.
(2) Single project amount.--In awarding grants to States
for eligible projects under this section, the Board shall limit
the amount of any grant made for a particular project in a
fiscal year to not more than 30 percent of the total amount of
the funds available for grants under this section for that
fiscal year.
(f) Funding.--Amounts reserved for grants for a fiscal year under
section 606(b)(3) shall be available for grants under this section.

SEC. 604. GRANT PROGRAM REQUIREMENTS AND LIMITATIONS.

(a) Authorized Uses.--The proceeds of a grant made for a project
under this title may be used to defray the costs of the project or to
reimburse the recipient for costs of the project paid by the recipient.
(b) Non-Federal Contribution.--The proceeds of a grant under this
title may be released upon receipt by the Board of Directors of the
Rail Infrastructure Finance Corporation of cash payment by a non-
Federal Government source, or 1 or more such sources jointly, in an
amount not less than the amount equal to 20 percent of the amount of
the grant disbursed. The cash payment may not be derived, directly or
indirectly, from Federal funds. Amounts received under this subsection
shall be credited to the Rail Infrastructure Investment Account
established under section 507(c).
(c) Preference Involving Donated Property Interests and Services.--
In selecting projects for grant funding under this title, the Board may
give preference to projects that involve donated right-of-way,
property, or in-kind services by a public sector or private sector
entity. The value of a donation under this subsection may not be
counted toward satisfaction of the requirement in subsection (b).
(d) Flexibility.--Notwithstanding any other provision of this
title, amounts made available under section 506 may be combined and
used for projects that significantly benefit either freight rail
service, intercity passenger rail service, or both.
(e) Suballocation; Public-Private Partnerships.--
(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 title.
(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
Board.
(3) Sub-allocation.--A State may allocate funds under this
section to any entity described in paragraph (1).
(f) Special Transportation Circumstances.--In carrying out this
section, the Board shall allocate an appropriate portion of the amounts
available under section 601 or 602 to provide appropriate
transportation-related assistance in any State in which the rail
transportation system--
``(1) is not physically connected to rail systems in the
continental United States; and
``(2) may not otherwise qualify for assistance under
section 601 or 602 due to the constraints imposed on the
railway infrastructure in that State due to the unique
characteristics of the geography of that State or other
relevant considerations, as determined by the Board.
(g) Applications.--To seek a grant under this title, a State or, in
the case of a grant under section 601 or 603, the National Railroad
Passenger Corporation shall submit an application for the grant to the
Board. The application shall be submitted at such time and contain such
information as the Board requires.
(h) Procedures for Grant Award.--The Board 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 procedures shall include the
execution of a grant agreement between the applicant and the Board. The
Board shall issue a final rule establishing the procedures not later
than 90 days after the date on which a sufficient number of the members
of Board to constitute a quorum has taken office.
(i) Domestic Buying Preference.--
(1) Requirement.--
(A) In general.--In carrying out a project funded
in whole or in part with a grant under this title, the
grant recipient shall purchase only--
(i) unmanufactured articles, material, and
supplies mined or produced in the United
States; or
(ii) manufactured articles, material, and
supplies manufactured in the United States
substantially from articles, material, and
supplies mined, produced, or manufactured in
the United States.
(B) De minimis amount.--Subparagraph (1) applies
only to a purchase in an total amount that is not less
than $1,000,000.
(2) Exemptions.--On application of a recipient, the Board
may exempt a recipient from the requirements of this subsection
if the Board decides that, for particular articles, material,
or supplies--
(A) such requirements are inconsistent with the
public interest;
(B) the cost of imposing the requirements is
unreasonable; or
(C) the articles, material, or supplies, or the
articles, material, or supplies from which they are
manufactured, are not mined, produced, or manufactured
in the United States in sufficient and reasonably
available commercial quantities and are not of a
satisfactory quality.
(3) United states defined.--In this subsection, the term
``the United States'' means the States, territories, and
possessions of the United States and the District of Columbia.

SEC. 605. STANDARDS AND CONDITIONS.

(a) 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 title--
(1) shall be considered an employer for purposes of the
Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
(2) shall be considered a carrier for purposes of the
Railway Labor Act (43 U.S.C. 151 et seq.).
(b) Grant Conditions.--The Board of Directors of the Rail
Infrastructure Finance Corporation shall require as a condition of
making any grant under this title that includes the improvement or use
of 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; and
(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
(2) the applicant agrees to comply with--
(A) the standards of section 24312 of title 49,
United States Code, as such section was in effect on
September 1, 2003, with respect to the project in the
same manner that the National Railroad Passenger
Corporation is required to comply with those 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 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 the Rail Infrastructure Finance Corporation.
(c) 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 title and replaces intercity
rail passenger service that was provided by another entity as
of such date shall enter into an agreement with the authorized
bargaining agent or agents for employees of the predecessor
provider that--
(A) gives each 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 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). 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 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.
(d) Inapplicability to Certain Rail Operations.--Nothing in this
section applies to--
(1) commuter rail passenger transportation (as defined in
section 24102(4) of title 49, United States Code) operations of
a State or local government authority (as those terms are
defined in section 5302(11) and (6), respectively, of that
title) eligible to receive financial assistance under section
5307 of that title, or to its contractor performing services in
connection with commuter rail passenger operations (as so
defined); or
(2) the Alaska Railroad or its contractors.
(3) The National Railroad Passenger Corporation's access
rights to railroad rights of way and facilities under current
law for projects funded under this title where train operating
speeds do not exceed 79 miles per hour.

SEC. 606. GRANT PROGRAM FUNDING.

(a) Annual Reservation of Funds.--Each fiscal year, the Board of
directors of the Rail Infrastructure Finance Corporation Board shall
reserve for grants under each of the grant programs authorized under
sections 501, 502, and 503 the amount determined by multiplying the
percent applicable to the program under subsection (b) times the amount
of the net spendable proceeds (as defined under section 507(c)(7)) that
is available for such fiscal year.
(b) Applicable Percent.--The percent applicable to a grant program
under subsection (a) is as follows:
(1) Intercity passenger rail development grant program.--
For the intercity passenger rail development grant program
under section 601, 40 percent.
(2) Freight infrastructure development grant program.--For
the freight infrastructure development grant program under
section 602, 40 percent.
(4) High priority projects grant program.--For the high
priority projects grant program under section 603, 20 percent.

TITLE VII--AUTHORIZATION OF APPROPRIATIONS

SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated $5,000,000 for fiscal year
2004 for the establishment and payment of initial administrative costs
of the Rail Infrastructure Finance Corporation, including the Rail
Infrastructure Finance Trust.
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