Statements on Introduced Bills and Joint Resolutions - S. 1961 - Part One
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. HOLLINGS (for himself, Ms. Collins, Mr. Carper, Mr. Specter, Mr. Jeffords, Mr. Lautenberg, and Mr. Biden):
S. 1961. A bill to provide for the revitalization and enhancement of the American passenger and freight rail transportation system; to the Committee on Commerce, Science, and Transportation.
Mr. HOLLINGS. Mr. President, I rise today to introduce the American Railroad Revitalization, Investment, and Enhancement Act of the 21st Century, better known as "ARRIVE-21." This legislation is of vital importance to rail transportation because it provides steady, dependable funding for our beleaguered national passenger rail system. It also provides funding for infrastructure investment in the railroad industry as a whole, including freight railroads. And it establishes a financing mechanism to ensure that our rail system benefits from a steady stream of funding, just like our airline industry, our transit systems, and our national highway system.
For the past 30 years, Amtrak has provided us with a valuable public service, even though it was forced year after year to come beg for money from the Congress. And year after year, the Congress gave it just enough money to barely survive another 12 months. Sometimes Congress didn't appropriate even enough money to last 12 months, and Amtrak had to come back and beg for a supplemental appropriation just to remain in business until the end of the fiscal year. Never mind having enough money to grow the railroad; never mind having enough money to run a first-class passenger railroad. And never mind having enough money to keep the infrastructure in a state of good repair. All Amtrak has been able to do for 30 years is stay alive. It's time to give Amtrak the tools and funding it needs to do the job we keep asking it to do.
Last year I introduced the National Defense Rail Act of 2002 which was approved by the Senate Commerce Committee by a vote of 20-3. We have shown that bipartisan support exists for authorizing a strong rail program, however the main obstacle we have faced has been securing funding to live up to the authorized amounts. This legislation attempts to address the lack of a guaranteed revenue stream for passenger rail programs and establishes a framework to address freight needs where there is a clear public benefit.
It's a foregone conclusion that transportation development requires money. We somehow figured this out a long time ago with regard to every other mode of transportation. We federally funded the development of the interstate highway system; we subsidized airport construction; we dredged harbors and channels; and we built locks and dams. And the result of all that investment is that our citizens and our goods can move across the country, from big cities and from small towns, efficiently and relatively cheaply. We have today a national transportation system with many impressive components.
You might even say we have been a little too successful with these modes of transportation because many of them are now strained to capacity in many areas of the country. This situation presents not only an economic dilemma, but also a genuine security risk. The atrocious events of September 11th, and the aftermath that followed, exposed the vulnerability of our society and our economy when transportation choices become limited and our mobility is diminished. Effective transportation security means that, as a Nation, we nurture all transportation options and we do not allow ourselves to be overly dependent on only one or two particular modes. In effect, that's what we have done by favoring highways and aviation, where we have directed the flow of billions of dollars. Ironically, rail passenger service is more environmentally-friendly, more fuel-efficient, and more capable of mitigating the impacts of population congestion to help foster regional economic growth than any of the other modes. But in the process of shoring up those other transportation modes for all those years, we lost our focus on passenger rail and we sadly neglected investing in its development.
For passenger rail to be successful, its infrastructure must be developed through the kind of bold Federal leadership we exercised for our other modes of transportation. That's why my colleagues and I are pleased to introduce this landmark piece of legislation designed to change the way we think about financing passenger rail service and designed to grow our passenger rail system into the world-class system it should be. The bill creates Federal/State and public/private partnerships to promote infrastructure development for both freight and passenger rail. It provides $20-$25 billion in grants over six years to States and State compacts for rail capital projects to provide for a safe, secure, and efficient rail transportation system. It enhances Federal and State rail transportation policy, and it promotes intermodal transportation investment.
ARRIVE-21 creates a non-profit Rail Infrastructure Finance Corporation (RIFCO) to issue $30 billion in tax-credit bonds over six years for the purpose of providing grants to States for capital investment in freight and passenger rail infrastructure and facilities. RIFCO will establish a trust account made up of bond proceeds and contributions from States that receive RIFCO grants. Bond proceeds and State contributions in excess of the amount required to maintain the trust account will then be available for grants to the States through a competitive process.
Although my first choice would be to fully fund the needs authorized in this legislation by straight federal spending, it has
become clear that over the last thirty years that there is no pot of gold at the end of the rainbow when it comes to Amtrak. There is not enough money in the scant pot available for discretionary spending on transportation programs. We have established dedicated trust funds for the airlines with their ticket taxes, and we have the trust fund for the highways and transit programs which are funded through the gas tax, but when it comes to passenger railroads, there is no such revenue stream. The establishment of RIFCO was not my first choice to finance the publicly needed improvements of the railroad system, but it is an option for the Congress to debate and consider as we attempt to address what we need the rail system to do for this country.
RIFCO is set up to assist the States fund both passenger and freight projects that benefit the public on a State, regional or national basis. State or State compacts may apply for RIFCO funds for discretionary and formula funds for capital projects in four categories: State Intercity Passenger Rail Corridor Development, including equipment, stations, and facilities. State Freight Rail Infrastructure Development Projects, including capital projects that primarily benefit freight rail transportation. States may use a percentage of these formula funds to manage State rail programs. National System Improvement Projects, including projects that significantly benefit the national passenger rail system, Amtrak-sponsored projects and Northeast Corridor projects. High Priority Projects, including projects with major public policy benefits to the national rail system or significantly expand rail intermodal capacity in connection with maritime, aviation, and highway facilities.
Eligible capital projects would include new rail line development, planning and environmental reviews, track upgrades and restoration, highway-rail grade crossing improvements and eliminations, relocation of track, infrastructure and facilities, construction of intermodal facilities and passenger rail stations, tunnel and bridge repairs, communication and signaling improvements, environmental impact mitigation, acquisition of passenger rail equipment, and security improvements. Projects to receive discretionary funding would be selected by RIFCO according to selection criteria contained in the bill. The projects would require a 20 percent non-Federal contribution paid to RIFCO for bond repayment.
ARRIVE-21 also directs the Federal Railroad Administration to develop a National Rail Plan and to work with States in developing State rail plans, so that we have a comprehensive and coordinated long-range plan for rail development for the whole country. The bill also directs the Office of Intermodalism in the Department of Transportation to create a "50-Year Blueprint" for the development of a national intermodal transportation system and provide a vision of emerging trends and opportunities for the future of passenger and freight rail transportation.
Before I close, I would be remiss if I did not recognize the work of Nancy Lummens Lewis, a detailee from the Federal Railroad Administration, who has worked on the Commerce Committee since January. We have appreciated her professionalism, competency, and her willingness to work and share her time with us. I thank Nancy for her time spent on this bill, as well as her efforts on the reauthorization of the Transportation Equity Act of the 21st Century, The Federal Railroad Safety Improvement Act, and The Surface Transportation Board Act of 2003. We wish her well in her future endeavors.
ARRIVE-21 presents a smart and efficient solution to a very important transportation dilemma. I am joined by several of my colleagues, including Senators COLLINS, SPECTER, CARPER and JEFFORDS, in introducing this bipartisan legislation. As we have passed legislation this week providing approximately $15 billion annually for aviation for the next 4 years, and plan to take up a highway bill next year which will spend $40 to $60 billion annually on highways and transit over six years, we must not leave rail out. It is critical that the Senate take this bill up, and pass it, to ensure that our railroad transportation system, especially our passenger rail system, can grow and develop to meet our current and future transportation needs.
Attached is an amendment that the sponsors of ARRIVE-21 intend to offer during floor consideration of the bill. I ask unanimous consent that the amendment and the text of the bill be printed in the RECORD.
There being no objection, the amendment and the bill was ordered to be printed in the Record, as follows:
AMENDMENT
TITLE VIII-RAIL INFRASTRUCTURE TAX CREDIT BONDS
SEC. 801. CREDIT TO HOLDERS OF QUALIFIED RAIL INFRASTRUCTURE BONDS.
(a) IN GENERAL.-Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to credits against tax) is amended by adding at the end the following new subpart:
"Subpart H-Nonrefundable Credit for Holders of Qualified Rail Infrastructure Bonds
"Sec. 54. Credit to holders of qualified rail infrastructure bonds.
"SEC. 54. CREDIT TO HOLDERS OF QUALIFIED RAIL INFRASTRUCTURE BONDS.
"(a) ALLOWANCE OF CREDIT.-In the case of a taxpayer who holds a qualified rail infrastructure bond on a credit allowance date of such bond which occurs during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter for such taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to credit allowance dates during such year on which the taxpayer holds such bond.
"(b) AMOUNT OF CREDIT.-
"(1) IN GENERAL.-The amount of the credit determined under this subsection with respect to any credit allowance date for a qualified rail infrastructure bond is 25 percent of the annual credit determined with respect to such bond.
"(2) ANNUAL CREDIT.-The annual credit determined with respect to any qualified rail infrastructure bond is the product of-
"(A) the applicable credit rate, multiplied by
"(B) the outstanding face amount of the bond.
"(3) APPLICABLE CREDIT RATE.-For purposes of paragraph (2), the applicable credit rate with respect to an issue is the rate, equal to an average market yield (as of the day before the date of sale of the issue) on outstanding long-term corporate debt obligations (determined under regulations prescribed by the Secretary).
"(4) CREDIT ALLOWANCE DATE.-For purposes of this section, the term 'credit allowance date' means-
"(A) March 15,
"(B) June 15,
"© September 15, and
"(D) December 15.
Such term includes the last day on which the bond is outstanding.
"(5) SPECIAL RULE FOR ISSUANCE AND REDEMPTION.-In the case of a bond which is issued during the 3-month period ending on a credit allowance date, the amount of the credit determined under this subsection with respect to such credit allowance date shall be a ratable portion of the credit otherwise determined based on the portion of the 3-month period during which the bond is outstanding. A similar rule shall apply when the bond is redeemed.
"© LIMITATION BASED ON AMOUNT OF TAX.-The credit allowed under subsection (a) for any taxable year shall not exceed the excess of-
"(1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
"(2) the sum of the credits allowable under this part (other than this subpart and subpart C).
[Page S15988]
"(d) CREDIT INCLUDED IN GROSS INCOME.-Gross income includes the amount of the credit allowed to the taxpayer under this section (determined without regard to subsection (e)) and the amount so included shall be treated as interest income.
"© QUALIFIED RAIL, INFRASTRUCTURE BOND.-For purposes of this part, the term 'qualified rail infrastructure bond' means any bond issued as part of an issue if-
"(1) the bond is issued by the Rail Infrastructure Finance Corporation and is in registered form,
"(2) the term of each bond which is part of such issue does not exceed 20 years,
"(3) the payment of principal with respect to such bond is the obligation of the Rail Infrastructure Finance Corporation and not an obligation of the United States,
"(4) all proceeds from the sale of the issue are used for the purposes set forth in section 507©(5) of the Arrive 21 Act, and
"(5) 95 percent or more of the net spendable proceeds from the sale of such issue are to be used for expenditures incurred after the date of enactment of this section for any qualified project described in section 601, 602, or 603 of the Arrive 21 Act subject to the limitations established by that Act.
"(f) SPECIAL RULES RELATING TO NET SPENDABLE PROCEEDS.-
"(1) IN GENERAL.-Subject to paragraph (2), an issue shall be treated as meeting the requirements of this subsection if, as of 6 years after the date of issuance, the issuer reasonably expects-
"(A) to award grants under sections 501, 502, and 503 of the Arrive 21 Act in a total amount that is at least 95 percent of the net spendable proceeds of the issue for 1 or more qualified projects within the 6-year period beginning on such date,
"(B) to incur a binding commitment with a third party-
"(i) to spend at least 10 percent of the net spendable proceeds of the issue, or to commence construction, with respect to such projects within the 12-month period beginning on such date, and
"(ii) to proceed with due diligence to complete such projects, and
"© to expend the total amount of the net spendable proceeds of the issue.
"(2) RULES REGARDING CONTINUING COMPLIANCE AFTER 6-YEAR DETERMINATION.-If at least 95 percent of the net spendable proceeds of the issue is not awarded as grants to be expended for 1 or more qualified projects within the 6-year period beginning 6 years after the date of issuance, but the requirements of paragraph (1) are otherwise met, an issue shall be treated as continuing to meet the requirements of paragraph (1) if either the requirement under subparagraph (A) or the requirements under subparagraph (B) are met, as follows:
"(A) The issuer uses all unspent proceeds from the sale of the issue to redeem bonds of the issue within 90 days after the end of such 6-year period and disburses any remaining net spendable proceeds to the Secretary of Treasury within 30 days after the end of such 6-year period.
"(B) The issuer-
"(i) awards in grants under sections 501, 502, and 503 of the Arrive 21 Act at least 75 percent of the net spendable proceeds of the issue for 1 or more qualified projects within the 6-year period beginning 6 years after the date of issuance, and
"(ii) awards in grants under sections 501, 502, and 503 of the Arrive 21 Act at least 95 percent of the net spendable proceeds of the issue for 1 or more qualified projects within the 7-year period beginning 6 years after the date of issuance.
"(g) RECAPTURE OF PORTION OF CREDIT WHERE CESSATION OF COMPLIANCE.-
"(1) IN GENERAL.-If any bond which when issued purported to be a qualified rail infrastructure bond ceases to be such a qualified bond, the issuer shall pay to the United States (at the time required by the Secretary) an amount equal to the sum of-
"(A) the aggregate of the credits allowable under this section with respect to such bond (determined without regard to subsection (c)) for taxable years ending during the calendar year in which such cessation occurs and the 2 preceding calendar years, and
"(B) interest at the underpayment rate under section 6621 on the amount determined under subparagraph (A) for each calendar year for the period beginning on the first day of such calendar year.
"(2) NONCULPABLE DISQUALIFICATIONS.-If a qualified rail infrastructure bond ceases to qualify as such a bond due to action taken by the recipient of a grant made under section 601, 602, or 603 of the Arrive 21 Act, the issuer may seek compensation under paragraph (1) of this subsection.
"(h) RAIL INFRASTRUCTURE FINANCE TRUST.-
"(i) IN GENERAL.-The following amounts shall be held in a trust account by the Rail Infrastructure Finance Corporation:
"(A) An amount of the proceeds from the sale of all bonds designated for purposes of this section that, when combined with amounts described in subparagraphs (B), (C), and (D), is sufficient-
"(i) to ensure the Corporation's ability to redeem all bonds upon maturity; and
"(ii) to pay the administrative expenses of the Corporation and the Rail Infrastructure Finance Trust.
"(B) The amount of any on-Federal contributions required under section 604(b) of the Arrive 21 Act.
"© The temporary period investment earnings on proceeds from the sale of such bonds.
"(D) Any earnings on any amounts described in subparagraph (A), (B), or (C).
"(2) USE OF FUNDS.-Amounts in the trust account may be used only for investment purposes to generate sufficient funds to redeem qualified rail infrastructure bonds at maturity and pay the administrative expenses of the Corporation and the Trust.
"(3) USE OF REMAINING FUNDS ON TRUST ACCOUNT.-If the Corporation determines that the amount in the trusts account exceeds the amount required to comply with paragraph (2), the Corporation may transfer the excess to the Rail Infrastructure Investment account to be available for awarding grants as provided for in section 507©(5)(B) of the Arrive 21 Act.
"(4) REVERSION OF REMAINING PROCEEDS.-Upon retirement of all bonds issued by the Corporation, any remaining proceeds from the sale of such bonds shall be covered into the general fund of the Treasury of the United States as miscellaneous receipts.
"(i) OTHER DEFINITIONS AND SPECIAL RULES.-For purposes of this section-
"(1) BOND.-The term 'bond' includes any obligation.
"(2) NET SPENDABLE PROCEEDS.-The terms 'net spendable proceeds' has the meaning give such term in section 507©(6) of the Arrive 21 Act.
"(3) QUALIFIED PROJECT.-The term 'qualified project' means any project that is eligible for grant funding under section 601, 602, or 603 of the Arrive 21 Act.
"(4) PARTNERSHIP; S CORPORATION; AND OTHER PASS-THRU ENTITIES.-Under regulations prescribed by the Secretary, in the case of a partnership, trust, S corporation, or other pass-thru entity, rules similar to the rules of section 41(g) shall apply with respect to the credit allowable under subsection (a).
(5) BONDS HELD BY REGULATED INVESTMENT COMPANIES.-If any qualified rail infrastructure bond is held by a regulated investment company, the credit determined under subsection (a) shall be allowed to shareholders of such company under procedures prescribed by the Secretary.
"(6) REPORTING.-Issuers of qualified rail infrastructure bonds shall submit reports similar to the reports required under section 149(e).".
(b) AMENDMENTS TO OTHER CODE SECTIONS.-
(1) REPORTING.-Subsection (d) of section 6049 of the Internal Revenue Code of 1986 (relating to returns regarding payments of interest) is amended by adding at the end the following new paragraph:
"(8) REPORTING OF CREDIT ON QUALIFIED RAIL INFRASTRUCTURE BONDS.-
"(A) IN GENERAL.-For purposes of subsection (a), the term 'interest' includes amounts includible in gross income under section 54(d) and such amounts shall be treated as paid on the credit allowance date (as defined in section 54(b)(4)).
"(B) REPORTING TO CORPORATIONS, ETC.-Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A), subsection (b)(4) shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i) of such subsection.
"© REGULATORY AUTHORITY.-The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.".
(2) TREATMENT FOR ESTIMATED TAX PURPOSES.-
(A) INDIVIDUAL.-Section 6654 of such Code (relating to failure by individual to pay estimated income tax) is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection:
"(m) SPECIAL RULE FOR HOLDERS OF QUALIFIED RAIL INFRASTRUCTURE BONDS.-For purposes of this section, the credit allowed by section 54 to a taxpayer by reason of holding a qualified rail infrastructure bond on a credit allowance date shall be treated as if it were a payment of estimated tax made by the taxpayer on such date.".
(B) CORPORATE.-Section 6655 of such Code (relating to failure by corporation to pay estimated income tax) is amended by adding at the end of subsection (g) the following new paragraph:
"(5) SPECIAL RULE FOR HOLDERS OF QUALIFIED RAIL INFRASTRUCTURE BONDS.-For purposes of this section, the credit allowed by section 54 to a taxpayer by reason of holding a qualified rail infrastructure bond on a credit allowance date shall be treated as if it were a payment of estimated tax made by the taxpayer on such date.".
(c) CLERICAL AMENDMENTS.-
(1) The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
"Subpart H. Nonrefundable Credit for Holders of Qualified Rail Infrastructure Bonds.".
(2) Section 6401(b)(1) is amended by striking "and G" and inserting "G, and H".
SEC. 802. ISSUANCE OF REGULATIONS.
The Secretary of the Treasury shall issue regulations required under section 54 of the Internal Revenue Code of 1986 not later than 90 days after the date of the enactment of this Act.
SEC. 803. EFFECTIVE DATE.
The amendments made by section 701 shall apply to obligations issued after the date of enactment of this Act.
On page 3, at the end of the matter appearing before line 1, insert the following:
TITLE VIII-RAIL INFRASTRUCTURE TAX CREDIT BONDS
Sec. 801. Credit to holders of qualified rail infrastructure bonds.
Sec. 802. Issuance of regulations.
Sec. 803. Effective date.
S. 1961
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 19l 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;
© 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).
© 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:
"§ 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.
"© 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 rail road 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
"© 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:
"§ 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 ©, 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.
"© 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
"© 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
"§ 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.
"§ 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.
"§ 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.
"© 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.
"§ 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.