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                                                       Calendar No. 179
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-85
_______________________________________________________________________


 
              AMTRAK REFORM AND ACCOUNTABILITY ACT OF 1997

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                    on

                                 S. 738





               September 24, 1997.--Ordered to be printed

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                       one hundred fifth congress

                             first session

                     JOHN McCAIN, Arizona, Chairman

TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             WENDELL H. FORD, Kentucky
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas          Virginia
OLYMPIA SNOWE, Maine                 JOHN F. KERRY, Massachusetts
JOHN ASHCROFT, Missouri              JOHN B. BREAUX, Louisiana
BILL FRIST, Tennessee                RICHARD H. BRYAN, Nevada
SPENCER ABRAHAM, Michigan            BYRON L. DORGAN, North Dakota
SAM BROWNBACK, Kansas                RON WYDEN, Oregon

                       John Raidt, Staff Director

     Ivan A. Schlager, Democratic Chief Counsel and Staff Director

                                     
                                                       Calendar No. 179
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-85
_______________________________________________________________________


              AMTRAK REFORM AND ACCOUNTABILITY ACT OF 1997


                           _________________


               September 24, 1997.--Ordered to be printed

_______________________________________________________________________


       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 738]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 738) ``A Bill to reform the 
statutes relating to Amtrak, to authorize appropriations for 
Amtrak, and for other purposes'', having considered the same, 
reports favorably thereon with amendments and recommends that 
the bill (as amended) do pass.

                          Purpose of the Bill

  The bill, as reported, would authorize appropriations for 
Amtrak's general operating and capital expenditures for fiscal 
years (FY) 1998, 1999, 2000, 2001, and 2002. The bill directs 
Amtrak to operate within the funding levels authorized and to 
eliminate its need for federal operating support by the end of 
the five-year authorization period. In order to achieve 
operating self-sufficiency, the bill is designed to enable 
Amtrak to increase efficiencies, reduce costs, and operate as 
much like a private business as possible. Specifically, the 
bill provides for statutory reforms in the areas of Amtrak 
operations, procurement and labor, and permits changes to its 
liability.
  The bill also would create an Amtrak Reform Council (the 
Council) responsible for evaluating Amtrak's performance and 
for making recommendations to Amtrak for further cost 
containment, productivity improvements, and financial reforms. 
The Council would submit an annual report to Congress which 
includes an assessment of Amtrak's progress on resolving 
productivity issues and recommendations for other improvements 
or any necessary legislative changes.
  The bill further provides for a trigger mechanism to be 
carried forward if, starting two years after the date of 
enactment, the Council finds that Amtrak is not meeting its 
financial goals. The Council's assessment of Amtrak's failure 
at that point would trigger the development of two action 
plans. The Council would develop and submit to Congress one 
plan to provide for a restructured and rationalized national 
passenger rail system. Another plan would be developed by 
Amtrak to provide for its complete liquidation. If Congress 
does not take legislative action to provide for a restructured 
passenger rail system within 90 days from receiving the 
Council's recommendations, Amtrak is required by the bill to 
implement the liquidation plan.

                          Background and Needs

  Amtrak was created in 1971 by the Rail Passenger Service Act 
of 1970. The law established Amtrak in order to relieve the 
freight railroad industry from the economic burden of providing 
ongoing passenger service and to ensure that modern, efficient 
intercity passenger rail service would continue to be a part of 
the national transportation system. The freight railroads had 
lost approximately one billion dollars in trying to provide 
rail passenger service. With capital acquired from 
participating railroads and the federal government providing 
$40 million in direct grants and another $100 million in loan 
guarantees, Amtrak was to become self-sustaining within 2 
years.
  Since 1971, however, Amtrak has received more than $20 
billion in Federal funding to help cover its operating and 
capital losses. Yet Amtrak has continued to struggle 
financially throughout its history despite these significant 
federal funding contributions. In fact, Amtrak's financial 
condition has now reached a crisis stage. Amtrak President Tom 
Downs testified this year before several House and Senate 
Committees that Amtrak could reach bankruptcy by the spring of 
1998 if Amtrak is not provided the statutory reforms and 
funding requested. The General Accounting Office (GAO) and 
other experts warn bankruptcy could occur even sooner.
  In an attempt to address its financial problems, Amtrak began 
implementing a Strategic Business Plan in 1995. This 
restructuring plan, approved by the Amtrak Board of Directors 
in December 1994, was designed to increase revenues, reduce 
costs, and eliminate the need for federal operating assistance 
within 5 years. The restructuring divided passenger service 
operations into three units: a Northeast Corridor Business Unit 
responsible for operations on the East Coast between Virginia 
and Vermont; a West Coast Business Unit, referred to as Amtrak 
West, responsible for operations in California, Oregon, and 
Washington; and an Intercity Business Unit responsible for the 
remainder of the nation's intercity rail passenger service, 
including most of the long-distance, cross-country trains. The 
1995 plan also included service reductions and eliminations, 
reductions in management staff, fare increases and other 
changes. Aside from restructuring, the plan assumed the 
creation of a dedicated source of revenue for capital and 
legislative relief from various statutory operating 
restrictions. The plan is periodically amended as necessary by 
the Board.
  According to the GAO, despite initial financial improvements 
in early 1995, the gap between Amtrak's operating deficits and 
operating subsidies began to grow again in 1996 and that gap 
continuesto widen today. Further, Amtrak's debt level has grown 
significantly over recent years as it turned to private banks to 
finance equipment purchases and other investments not provided for by 
its federal grants. Amtrak is approximately $1 billion in debt and its 
debt load is projected to double to over $2 billion by 1999 to cover 
the money borrowed to finance high-speed train sets for the Northeast 
Corridor, their related maintenance facilities, and new locomotives. 
The GAO reports that Amtrak's debt levels could severely limit the use 
of federal operating support, shifting it from service operations to 
covering its private financial obligations.
  The Committee is also concerned that Amtrak's federal capital 
grant has become increasingly constrained in recent years. For 
example, in FY 1997, only $12 million of the $223 million 
capital grant is expected to be available for general capital 
needs. The rest will be used for debt payments ($75 million), 
equipment overhauls ($110 million), and legally mandated work 
($26 million). Further, even if the funding levels authorized 
in this bill are appropriated, a substantial cash shortfall is 
still projected by Amtrak in the amounts of $66 million (FY 
1997); $118 million (FY 1998); $180 million (FY 1999); and $51 
million (FY 2000). These shortfall projections do not account 
for Amtrak's current billion dollar debt level.
  The Committee is very concerned that Amtrak's financial 
projections and long-term viability continue to remain heavily 
dependent on federal operating and capital funds. In addition, 
the Committee is concerned that Amtrak is staking the future of 
the national system on the projected financial success of 
highspeed rail service in the Northeast Corridor. Amtrak's FY 
1998 Legislative Report and Federal Grant Request estimates 
profits of $150 million annually from the planned high-speed 
rail service on the Northeast Corridor scheduled to begin in 
1999. Amtrak reports these profits and other financial 
improvements will help offset costs on other money-losing parts 
of the system. Such revenue estimates, however, may be 
premature. The GAO estimates Amtrak still needs several billion 
dollars to bring its Northeast Corridor infrastructure up to a 
basic ``state of good repair'' and enable high-speed rail 
service to be implemented. The Committee will follow closely 
Amtrak's success in meeting its financial targets and will be 
particularly interested in whether Amtrak is able to meet its 
service initiation time line and revenue goals set for its 
high-speed rail operations.

                          Legislative History

  Amtrak's previous authorization expired in fiscal year 1994. 
The Senate Commerce Committee held three hearings addressing 
Amtrak during the 104th Congress and reported out a 
comprehensive reform and reauthorization bill (S. 1318) on July 
20, 1995. However, an agreement could not be reached to allow 
that legislation to be considered by the full Senate.
  The Subcommittee on Surface Transportation and Merchant 
Marine held a hearing on Amtrak's financial situation on March 
13, 1997. The Committee received testimony from Amtrak, the 
Federal Railroad Administration, and the General Accounting 
Office about Amtrak's financial challenges, its restructuring 
activities to date, and its ability in meeting the Strategic 
and Business Plan which Amtrak began implementing in 1995. The 
Committee also heard about proposals from the Administration 
and Amtrak to secure Amtrak's future, including financial and 
statutory reforms, and Amtrak's desire for the establishment of 
a dedicated source of capital funding.
  Based in part on the testimony provided during the March 
hearing, Senator Hutchison introduced S. 738 on May 14, 1997. 
The bill, cosponsored by Senators Snowe, Roth, Roberts, 
Hutchison, and Chafee, would reauthorize Amtrak for five years 
and provide the statutory reforms and funding levels requested 
by Amtrak to allow it to operate more like a business.
  On June 26, 1997, the Commerce Committee in open executive 
session ordered S. 738 reported, by a rollcall vote of 14-4, 
with amendments.

                      Summary of Major Provisions

  Specifically, the bill as reported includes the following 
major provisions:
  1. Operational Reforms. Amtrak would be directed to strive to 
operate as a national rail passenger system which provides 
access to all areas of the country and ties together existing 
and emerging corridors. The prohibition against other companies 
from operating intercity passenger service over an Amtrak route 
unless Amtrak gives consent would be repealed. Amtrak's 
required notification period regarding any proposed 
discontinuances of a route would be extended from 90 days to 
180 days in order to give states adequate time to share or 
assume the cost of retaining a route targeted for 
discontinuance. Amtrak would be allowed to contract for 
intercity bus service when passengers will move by rail 
immediately before or after bus travel. Amtrak and intercity 
bus operators would be encouraged to enter into intermodal 
arrangements that would increase operating efficiencies and 
travel convenience, allowing the coordination of schedules, 
routes, rates, and facilities.
  2. Contracting Out. Amtrak is prohibited under current law 
from contracting out any work, other than for food and beverage 
services, if such action would result in the loss of even one 
job. As requested by Amtrak, this bill would repeal that 
prohibition effective 180 days after enactment and provide for 
an accelerated bargaining schedule to allow labor and 
management to resolve contracting out issues through a non-
binding arbitration process prior to the ban's repeal.
  The Committee strongly believes the repeal of the legal ban 
on contracting out is very necessary to help Amtrak operate 
more effectively and efficiently. Unnecessary statutory burdens 
must be lifted if Congress is serious about addressing Amtrak's 
financial crisis and preserving intercity passenger rail 
service in the United States. The Committee is unaware of any 
similar statutory prohibitions covering private or public 
entities. The Committee believes retaining the statutory 
impediments would doom Amtrak's efforts to achieve long-term 
viability and to reduce its reliance on Federal assistance. The 
Administration also noted this necessity in its Amtrak 
reauthorization proposal submission of the 104th Congress which 
included provisions allowing Amtrak management and laborto 
negotiate agreements permitting greater flexibility in contracting out 
work.
  3. Labor Reforms. Current law mandates employee protective 
arrangements which provide up to six years of severance pay to 
Amtrak rail workers affected by route discontinuances. The 
Committee bill repeals this statutory requirement as requested 
by Amtrak and supported by the Administration during the 104th 
Congress. The Committee bill replaces the mandatory six year 
severance pay with a requirement that Amtrak negotiate 
severance pay issues with its rail workers. The bill requires 
accelerated bargaining procedures within a 180- day time frame.
  4. Liability Reforms. Amtrak has testified four times before 
the Senate Commerce Committee during the 104th and 105th 
Congress to report on its plans to improve its financial 
performance and achieve long-term viability. Amtrak's testimony 
has consistently discussed the need for statutorily imposed 
liability limits in order for Amtrak to achieve operating self- 
sufficiency. S. 738 would permit Amtrak to enter into 
``contracts'' with its passengers through ticket purchases to 
limit claims related to rail passenger transportation to no 
less than the limits established by the Committee-passed 
product liability reform legislation (i.e., punitive damages, 
where permitted, equal to 2 times compensatory damages or 
$250,000 whichever is greater).
  Further, this bill clarifies that indemnification agreements 
related to the provision of rail passenger service entered into 
by Amtrak and other parties would be enforceable. The Committee 
has been requested by Amtrak to include this provision in order 
to aid Amtrak in achieving operating self-sufficiency. Amtrak 
and the freight railroads believe legislation is necessary to 
confirm enforceability of the indemnification agreements they 
have entered into regarding operation over each others' rail 
lines, notwithstanding allegations of gross negligence by a 
freight railroad or Amtrak. As long as there is the possibility 
that state laws governing indemnification contracts may make 
these contracts unenforceable, Amtrak and a freight railroad 
may find themselves litigating with each other. Amtrak believes 
that such litigation inevitably would not only adversely impact 
business relationships between Amtrak and the host freight 
railroads, but it would also lead to significantly higher 
outlays in settlements and judgments to plaintiffs.
  5. Independent Assessment. While Amtrak's financial plan is 
currently reviewed annually by its Board, questions remain on 
the accuracy of Amtrak's accounting methodology. The bill would 
require an independent assessment of Amtrak's financial 
requirements through FY 2002, similar to the audit required in 
the Federal Aviation Reauthorization Act of 1996. The Inspector 
General of the Department of Transportation would be directed 
to oversee the independent assessment to be completed within 
180 days after enactment of this bill. The Committee expects 
the audit to cover Amtrak's cost allocation process and 
procedures, expenses related to intercity service, commuter 
service and any other service provided by Amtrak; Amtrak's 
Strategic Business Plan, including projected expenses, capital 
needs, ridership and revenue forecasts; and, Amtrak's debt 
obligations.
  In addition, the Committee believes an independent analysis 
of Amtrak's investment in the Northeast Corridor is warranted. 
The Committee has heard numerous concerns raised over Amtrak's 
financial commitment to the Corridor and how that targeted 
investment has restricted funding for the rest of the system. 
Therefore, the Committee believes a comparison between 
Northeast Corridor investment to date, the investment 
projections assumed in Amtrak's Business Plan, and the rest of 
the system is necessary. Finally, given that some have 
advocated privatizing Amtrak, including the Working Group on 
Intercity Passenger Rail established by the House Committee on 
Transportation and Infrastructure, the Committee believes an 
independent review of financial and other asset-related data 
concerning the value of the Northeast Corridor is warranted.
  6. Amtrak Reform Council. The bill would establish a 9-member 
Amtrak Reform Council to monitor Amtrak's progress in meeting 
its financial goals. The Council would be directed to evaluate 
Amtrak's performance and make recommendations to Amtrak for 
further cost containment, productivity improvements, and 
financial reforms. The Council would submit an annual report to 
Congress which includes an assessment of Amtrak's progress on 
resolving productivity issues and recommendations for other 
improvements or any necessary legislative changes. The 
Committee expects Amtrak to give the Council's recommendations 
careful consideration.
  7. Sunset Trigger. The bill establishes a mechanism to be 
implemented if at any time following two years after the date 
of enactment, the Council finds that Amtrak is not meeting its 
financial goals. In the event such a finding is made by the 
Council, it would be directed to develop and submit within 90 
days to Congress an action plan for a restructured and 
rationalized intercity rail passenger system. Within that same 
time period, Amtrak would be directed to prepare a plan for its 
complete liquidation. The liquidation plan would be reviewed by 
the GAO and the Inspector General of the Department of 
Transportation for accuracy and reasonableness in order to 
ensure to the greatest extent practicable that the government's 
significant investment in Amtrak is protected. If the Congress 
does not approve legislation to provide for a restructured 
passenger rail system within 90 days after receiving the 
Council's recommendations, Amtrak would be required to 
implement the liquidation plan, taking into account the 
comments of the GAO and the Inspector General.
  The Committee wants to clarify that if the Council makes a 
determination that Amtrak is failing, the bill does not require 
the Council's proposed restructuring plan to be approved 
without the opportunity to amend or change the plan. In fact, 
the Committee fully expects consideration of alternative 
approaches for addressing the future of the nation's passenger 
rail system. Further, the Committee is aware that any plan 
providing for a restructured intercity rail passenger service 
would need to take into account the contractual relationships 
between the freight railroads and Amtrak. This bill has no 
direct effect on existing law as it pertains to access to the 
tracks of freight railroads by entities other than Amtrak. 
Therefore, should restructuring legislation be implemented in 
the future, this issue would need to be fully addressed.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 22, 1997.
Hon. John McCain,
Chairman, Committee on Commerce, Science and Transportation,
Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 738, the Amtrak 
Reform and Accountability Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Clare 
Doherty (for federal costs), Karen McVey (for the state and 
local impact), and Jean Wooster (for the private-sector 
impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

S. 738--Amtrak Reform and Accountability Act of 1997

    Summary: S. 738 would authorize appropriations totaling 
$5.2 billion for Amtrak over the 1998-2002 period. The 
legislation also would establish budgetary goals for Amtrak, 
create the Amtrak Reform Council, and provide for operational, 
procurement, employee protection, and liability reforms.
    Enacting S. 738 would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply 
to the bill. S. 738 contains two intergovernmental mandates as 
defined in the Unfunded Mandates Reform Act of 1995 (UMRA). CBO 
estimates that the costs imposed by these mandates would total 
less than $5 million over the next five years--well below the 
annual threshold established in UMRA. The bill would impose 
four new private-sector mandates on Amtrak, but CBO estimates 
that the direct costs of those mandates would be negligible.
    Estimated cost to the Federal Government: For purposes of 
this estimate, CBO assumes that the entire amounts authorized 
in the bill would be appropriated before the start of each 
fiscal year. Based on information from the Federal Railroad 
Administration (FRA), CBO estimates that expenses associated 
with the Amtrak Reform Council would be less than $500,000 a 
year. The expenses of the council would be subject to the 
availability of appropriated funds. CBO expects that other 
provisions of the bill would not have any significant budgetary 
effects. The estimated budgetary impact of S. 738 is shown in 
the following table.

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                   1997       1998       1999       2000       2001       2002  
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Amtrak spending under current law:                                                                              
    Budget authority \1\......................        843          0          0          0          0          0
    Estimated outlays.........................        886        364        117         25          0          0
Proposed changes:                                                                                               
    Authorization level.......................          0      1,138      1,058      1,023        989        955
    Estimated outlays.........................          0        687      1,049      1,014        979        945
Amtrak spending under S. 738:                                                                                   
    Authorization level \1\...................        843      1,138      1,058      1,023        989        955
    Estimated outlays.........................        886      1,051      1,166      1,039        979        945
----------------------------------------------------------------------------------------------------------------
\1\ The 1997 level is the amount appropriated for that year.                                                    

    The costs of this legislation fall within budget function 
400 (transportation).
    Basis of estimate: This estimate is based on the yearly 
authorization levels specified by the bill. For purposes of 
this estimate, CBO assumes that the authorized funds would be 
divided between two different appropriated accounts: Amtrak 
capital expenses and Amtrak operating expenses (which include 
mandatory payments for retirement costs). Based on estimated 
funding requirements provided by FRA, CBO assumes that between 
65 percent and 85 percent of the authorized annual amounts 
would be allocated to capital expenses, with the remainder 
going to operating expenses. (The percentage going to operating 
expenses would decline gradually over the five-year period, 
tough the mandatory retirement payments would remain constant 
at about $140 million a year.) According to Amtrak, some of the 
amounts allocated for capital expenses would be used for the 
Northeast Corridor program.
    Outlay estimates are based on historical spending rates for 
Amtrak. If the allocation of funding between capital and 
operating accounts is different from the above assumptions, the 
outlay estimates would change accordingly. CBO estimates that 
outlays for operating expenses would equal obligations for each 
year, while capital expenditures would occur at a rate of 40 
percent in the year of obligation and 60 percent in the 
following year.
    Pay-as-you-go considerations: None.
    Estimated impact on State, local, and tribal governments: 
Mandates--S. 738 would exempt Amtrak from the property tax 
levied on it by the town of Beech Grove, Indiana. It would also 
exempt Amtrak's passengers and other customers from most state 
and local taxes, fees, and charges. Such preemptions of state 
and local taxing authority would constitute intergovernmental 
mandates under UMRA. Based on information from Amtrak and other 
tax and transportation experts, CBO estimates that the costs 
imposed by these mandates would total less than $5 million over 
the next five years.
    Amtrak currently pays approximately $1 million per year in 
local property taxes on a maintenance facility located in Beech 
Grove, Indiana. The bill would phase in an exemption from this 
tax over the next three years. CBO estimates that the total 
cost to Beech Grove in lost tax revenue over the next five 
years would be less than $5 million.
    The bill would also exempt passengers and other customers 
of Amtrak and its subsidiaries from most state and local taxes, 
fees, or charges. Current law exempts only Amtrak and its 
subsidiaries. The bill would allow sales taxes on intrastate 
travel in effect on the date of the bill's enactment to remain 
in place. The provision would also prohibit new state or local 
taxes of any kind on Amtrak services. While a 1995 Supreme 
Court ruling could be used to justify the imposition of state 
taxes on Amtrak's interstate passenger tickets and possibly on 
its interstate mail or freight transportation services, no 
state has attempted to do so. Nonetheless, this bill would 
foreclose a potential future source of state and local 
revenues. In fiscal year 1996, Amtrak collected about $840 
million from ticket sales and about $61 million from mail and 
express services.
    Other Impacts--S. 738 contains a number of other provisions 
that, while not mandates, could affect the budgets of state and 
local governments. CBO estimates that, on the whole, these 
provisions would benefit state and local governments.
    The bill contains a provision that would help assure the 
enforceability of certain contracts between operators of rail 
passenger services--some of which are state and local 
governments--and owners of rights-of-way and other facilities. 
The need for this provision arises because of concern about 
liability in the case of an accident. This concern is the 
result of a court decision that required Conrail to pay 
substantial damages for a collision between an Amtrak train and 
a Conrail train, despite the existence of a contract limiting 
Conrail's liability. Without enactment of this provision, it is 
possible that owners of rail rights-of-way, such as Conrail, 
would press rail passenger operators, including state and local 
commuter rail authorities, for higher compensation to cover 
this increased risk when current operating agreements come up 
for renegotiation. CBO cannot estimate how much more commuter 
authorities might have to pay for the use of freight rail 
tracks in the absence of this legislation.
    The bill would also grant states access to Amtrak's 
records, accounts, and other documents used to determine the 
amount of any payment to Amtrak required of the state. While 
many of these documents are currently available to the public, 
the process of obtaining them is time-consuming and cumbersome. 
In addition, the bill would direct Amtrak to engage in efforts 
with local schools to educate students as to the benefits and 
importance of rail travel and rail safety.
    The bill would make it easier for Amtrak to discontinue 
routes by repealing some route requirements and eliminating 
Congressional review of changes to Amtrak's route and service 
criteria. However, a related provision would allow states to 
enter into interstate compacts to retain existing intercity 
passenger rail services or create new services. These compacts 
could finance their activities by issuing notes or bonds. This 
change would make it easier for states to provide any services 
discontinued by Amtrak. As a further benefit to states, the 
bill would add intercity passenger rail to the lists of 
projects eligible for federal surface transportation, 
congestion mitigation and air quality, and National Highway 
System funds.
    State and local governments could face higher costs if they 
decided to pay for the provision of any services that Amtrak 
discontinued. However, CBO has no information as to which 
routes, if any, Amtrak would discontinue if these changes were 
to become law. Indeed, some industry experts argue that the net 
effect of the bill would be to increase Amtrak's overall 
efficiency and, thus, the likelihood that it would be able to 
maintain its existing services.
    Estimated impact on the private sector: S. 738 would impose 
four new private-sector mandates on Amtrak. CBO estimates that 
the direct costs of those mandates would be negligible and thus 
would not exceed the statutory threshold specified in UMRA.
    Amtrak was incorporated as a private company under the laws 
of the District of Columbia by the Rail Passenger Service Act 
of 1970. Under current budgetary treatment Amtrak is not 
considered a federal entity, although the U.S. Department of 
Transportation holds almost all of its stock.
    Section 101 would increase from 90 days to 180 days the 
notice that Amtrak must provide when it plans to discontinue 
service. This change would provide a state, regional or local 
authority, or another person additional time to consider 
assuming or sharing the cost of the discontinued service. Under 
current law and practice, Amtrak can stop service under a 
provision that does not require a 90-day notice but requires 
only a notice ``as soon as possible.'' According to Amtrak 
officials, Amtrak has used that provision in all but one case 
over the last decade. Amtrak currently provides the state, 
regional, and local authorities with as much time as possible, 
sometimes exceeding 90 days, before discontinuing service. 
Amtrak intends to continue using that practice. Thus, it is 
unlikely that Amtrak would incur any additional costs from the 
mandate to extend the period of notification to 180 days.
    Section 204 would require that Amtrak develop an action 
plan for its complete liquidation and would specify certain 
conditions under which Amtrak would have to carry out that 
plan. Amtrak would have to submit a plan within 90 days after 
the Amtrak Reform Council finds that Amtrak would either be 
unable to meet its financial goals due to its business 
performance or would require a grant for operating costs five 
years after the enactment date of S. 738. According to Amtrak, 
the costs to develop a liquidation plan would be negligible.
    Section 412 would require that Amtrak notify the Senate 
Committee on Commerce, Science, and Transportation and the 
House Committee on Transportation and Infrastructure whenever 
it enters into a consulting or lobbying contract or 
arrangement. Amtrak would have to provide the name of the 
individual or firm, the purpose, and the amount and nature of 
Amtrak's financial obligations under the contract. CBO 
estimates that the costs of such notifications would be 
negligible.
    Section 414 would require that Amtrak participate in 
educational efforts with elementary and secondary schools to 
inform students on the advantages of rail travel and the need 
for rail safety. This section does not include any specific 
goals or requirements. Amtrak currently participates in a 
school program that promotes grade crossing safety. Amtrak 
estimates that any further participation in educational 
programs would result in minimal additional costs.
    Estimate prepared by: Federal costs: Clare Doherty; Impact 
on State, local, and tribal governments: Karen McVey; Impact on 
the private sector: Jean Wooster.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation:

                       number of persons covered

  The bill as reported would authorize appropriations for 
Amtrak operating expenses and capital expenditures for fiscal 
years 1998 through 2002. As this legislation is intended to 
enable Amtrak to continue to operate as a national rail 
passenger system serving all areas of the country, the number 
of persons covered should be consistent with current levels.
  Section 121 of the bill as reported would remove the 
statutory prohibition against Amtrak contracting out for 
certain work now done by Amtrak employees. Amtrak and its 
employees would negotiate rules stating under what conditions, 
if any, Amtrak may contract out for such work. In any event, 
the number of persons required to provide Amtrak services, 
whether directly employed or under contract, is likely to be 
similar.

                            economic impact

  Title III of the bill as reported authorizes overall 
appropriations at levels over the total funding previously 
authorized for Amtrak. This increased funding level is provided 
for investments in the system's capital infrastructure. The 
bill provides for reduced levels of operating assistance 
annually and assumes no federal operating assistance at the end 
of the authorization period.

                                privacy

  The bill as reported would have no adverse impact on the 
personal privacy of individuals affected.

                               paperwork

  Paperwork requirements associated with the bill as reported 
are minimal. The most notable new requirement is created by 
Title II, which directs the Amtrak Reform Council to no less 
than annually assess and report to Congress on progress made by 
Amtrak in meeting its financial goals. In addition, Title IV 
includes a provision directing the Inspector General of the 
Department of Transportation to prepare, to the extent 
practicable, financial assessments on Amtrak's fiscal needs in 
each year Amtrak requests federal assistance. The first report 
would not be required until one year after enactment as the 
independent assessment authorized in this bill is expected to 
provide the Congress with the first assessment as a base-line.

                      Section-by-Section Analysis

Section 1. Short title; table of sections

  This section states the short title of the bill, the Amtrak 
Reform and Accountability Act of 1997, and contains a table of 
sections for the bill.

Section 2. Findings

  This section includes 11 findings relating to the role of 
intercity rail passenger service in the overall national 
transportation system; the urgent need for immediate action to 
improve Amtrak's financial condition and eliminate its 
dependency on federal operating assistance; the necessity of 
all of Amtrak's stakeholders to participate in efforts to 
reduce Amtrak's costs and increase its revenues; the importance 
of improving Amtrak's service quality and the sound investment 
of federal and state resources; the importance of implementing 
new operating strategies without compromising transportation 
safety; the need for Amtrak and its employees to modify 
collective bargaining agreements to make more efficient use of 
manpower; the need for Amtrak to work cooperatively with 
intercity bus service providers to produce efficient 
transportation service; and the recommendation that a dedicated 
source of capital funding be established for Amtrak to ensure 
that Amtrak will be able to fulfill the goals of maintaining a 
national rail passenger system without Federal operating 
assistance.

                            TITLE I--REFORMS

                    Subtitle A--Operational Reforms

Section 101. Basic system

  Subsection (a) adds statutory language directing Amtrak to 
strive to operate as a national rail passenger system which 
provides access to all areas of the country and ties together 
existing and emerging corridors. Repeals the prohibition on 
other entities from operating intercity passenger service over 
an Amtrak route unless Amtrak gives consent.
  Subsection (b) repeals obsolete provisions.
  Subsection (c) extends from 90 days to 180 days the 
notification period required of Amtrak regarding any proposed 
discontinuances of a route in order to give states adequate 
time to share or assume the cost of retaining the route.
  Subsection (d) repeals obsolete rate evaluation criteria.
  Subsection (e) repeals the obligation of Amtrak to operate 
what were formerly known as ``Section 403(d)'' trains, which 
were commuter operations dating back to 1981.
  Subsection (f) makes a conforming technical amendment.

Section 102. Mail, express, and auto ferry transportation

  This section repeals Amtrak's monopoly over auto-plus-
passenger service.

Section 103. Route and service criteria

  This section repeals the mandate that Congress approve 
changes in the criteria that Amtrak uses to evaluate routes and 
services.

Section 104. Additional qualifying routes

  This section repeals obsolete mandates on proposed route 
changes dating back to 1978.

Section 105. Transportation requested by States, authorities, and other 
        persons

  This section provides technical clarification that assistance 
provided under state-supported matching programs may be 
provided for separately, or in combination, with private 
assistance.

Section 106. Amtrak Commuter

  This section repeals a never-used chapter authorizing an 
``Amtrak Commuter'' subsidiary.

Section 107. Through service in conjunction with intercity bus 
        operations

  This section encourages Amtrak and intercity bus operators to 
enter into arrangements to increase operating efficiencies and 
travel convenience by allowing Amtrak and intercity bus 
operations to coordinate schedules, routes, rates, and 
facilities.

Section 108. Rail and motor carrier passenger service

  This section encourages Amtrak and intercity bus operators to 
enter into intermodal arrangements that will increase operating 
efficiencies and travel convenience.

Section 109. Passenger choice

  This section allows employees of the Federal Government to 
travel on Amtrak for official business as long as the travel 
costs are competitive on a trip or time basis.

Section 110. Application of certain laws

  This section removes Amtrak from Freedom of Information Act 
(FOIA) requirements when it no longer receives federal 
assistance. It further provides Amtrak protection from FOIA 
disclosure in relation to contract procurement proposals 
submitted to Amtrak. Amtrak has informed the Committee these 
requests typically come from firms competing against each other 
for Amtrak-related procurement contracts. The information which 
Amtrak must provide under FOIA can give parties a competitive 
edge over other entities vying for the same contract award. 
Legislation enacted during the 104th Congress protects Federal 
agencies from FOIA concerning procurement-related disclosure 
requirements.

                        Subtitle B--Procurement

Section 121. Contracting out

  This section repeals the ban on contracting out 180 days 
after enactment. Section 121 would have no impact on 
contracting out food services or contracting out work that does 
not result in layoffs because both types of outside contracting 
are already permitted under law. Section 121 establishes a 
framework that requires Amtrak and its labor organizations to 
begin negotiations on contracting out work. The negotiations 
would be conducted under National Mediation Board procedures 
and within specific time frames. In the event the negotiations 
and National Mediation Board efforts fail to resolve 
contracting out issues, the section allows both labor and 
management to employ options provided for under the Railway 
Labor Act (strikes and/or lockouts). This provision would have 
no precedent for freight railroads.

                Subtitle C--Employee Protection Reforms

Section 141. Railway Labor Act procedures

  This section repeals the statutory employee protection 
arrangements and severance benefits which are applicable to 
employees of Amtrak who are affected by route discontinuances 
or service reductions. In lieu of the statutory protections, 
this section establishes an accelerated collective bargaining 
procedure to determine future severance benefits. The 
negotiations would be conducted under National Mediation Board 
procedures and within specific time periods to ensure that 
outstanding employee protective arrangements and severance 
benefits are resolved.

Section 142. Service discontinuance

  This section rescinds contracts entered into before the date 
of the enactment of this bill between Amtrak and labor 
organizations representing Amtrak employees relating to 
employee protective arrangements and severance benefits 
applicable to Amtrak employees. This section also repeals 
Appendix C-2 to the National Railroad Passenger Corporation 
Agreement that was signed in 1973. The 1973 agreement requires 
Amtrak to pay up to six years of pay for any employee laid off 
because of a service discontinuance. This section would take 
effect 180 days after the date of enactment.

                 Subtitle D--Use of Railroad Facilities

Section 161. Liability limitation

  Subsection (a) of section 161 permits Amtrak to limit its 
exposure to punitive damages, where permitted, if passengers 
are provided adequate notice of such contractual limitations. 
The section authorizes Amtrak to establish contracts with its 
passengers to limit claims relating to rail passenger 
transportation to no less than the limits established in 
product liability reform legislation reported by the Committee 
earlier this session (i.e. punitive damages, where permitted, 
equal to 2 times compensatory damages or $250,000, whichever is 
greater). Subsection (a) has no impact on economic damage 
claims, which include lost wages, medical expenses and other 
out-of-pocket costs. Subsection (a) also has no impact on non-
economic compensatory damage claims.
  Subsection (b) of section 161 clarifies that rail passenger 
service indemnification agreements entered into by Amtrak and 
other parties are enforceable. Amtrak and the freight railroads 
believe legislation is necessary to confirm the enforceability 
of indemnification agreements. The indemnification agreements 
allocate the cost of liability among the agreement parties. As 
long as there is the possibility that state laws can nullify 
the indemnification contracts, Amtrak and a freight railroad 
could find themselves litigating against each other or 
concerning their obligations to injured third parties. Amtrak 
believes that such litigation inevitably would not only 
adversely impact its business relationship with its host 
freight railroads, but it would also lead to significantly 
higher outlays in settlements and judgments to litigants.

Section 162. Retention of facilities

  This section updates an existing provision that prevents 
railroads from disposing of facilities of use to Amtrak without 
the prior agreement of the Secretary of Transportation.

                    TITLE II--FISCAL ACCOUNTABILITY

Section 201. Amtrak financial goals

  This section directs Amtrak to prepare a financial plan to 
operate within the funding levels authorized, setting budgetary 
goals for fiscal years 1998 through 2002. After FY2002, Amtrak 
will no longer receive federal operating assistance.

Section 202. Independent assessment

  This section instructs the Secretary of Transportation to 
contract with an entity, independent of Amtrak and the 
Department, to conduct a complete independent assessment of 
Amtrak's financial requirements through fiscal year 2002. The 
Inspector General of the Department of Transportation would be 
directed to approve the contract award to an accounting firm 
knowledgeable in rail accounting requirements. The Inspector 
General would oversee the contract and the entity's statement 
of work. Within 180 days after the contract is awarded, the 
audit results are to be submitted to the Secretary, the Senate 
Committee on Commerce, Science, and Transportation and the 
House Committee on Transportation and Infrastructure.
  The Committee directs the independent auditors to consider 
all relevant factors, including Amtrak's cost allocation 
process and procedures; Amtrak's expenses related to intercity 
service, commuter service and any other service; Amtrak's 
Strategic Business Plan, including projected expenses, capital 
needs, ridership, and revenue forecasts; and Amtrak's assets 
and liabilities. The Committee expects the audit to compare the 
capital costs to date associated with the Northeast Corridor, 
and projections for future capital investment needs, to those 
projected for the rest of the system in Amtrak's long-range 
business plan.

Section 203. Amtrak Reform Council

  This section creates a 9-member Council to be appointed 
within 30 days after enactment. The President would appoint 
three members, including the Secretary of Transportation, a 
representative of a rail labor union, and a representative of 
rail management. Two members would be appointed by the Senate 
Majority Leader; one member would be appointed by Senate 
Minority Leader; two members would be appointed by the House 
Speaker; and one member would be appointed by the House 
Minority Leader.
  This section also precludes individuals appointed by the 
House and Senate from being employees of the United States or 
Amtrak, or representatives of rail labor or rail management. 
This section also requires the Council collectively to have 
members with technical qualifications, professional standing, 
and demonstrated expertise in the fields of corporate 
management, finance, rail or other transportation operations, 
labor, economic, and legal issues, and other relevant areas.
  Members shall serve 5-year terms on the Council. The Council 
would elect a Chairman and all actions are to be by majority 
rule. Meetings would be open to the public, except when 
discussing proprietary information. Any administrative support 
needed for the Council is to be provided by the Department of 
Transportation.
  This section directs the Council to evaluate Amtrak's 
performance and make recommendations to Amtrak for cost 
containment, productivity improvements, and financial reforms. 
The Council is to consider Amtrak's operation as a national 
system, appropriate methods for adoption of uniform cost and 
accounting procedures throughout the Amtrak system, and 
management efficiencies and revenue enhancements. The Council 
is further directed to submit an annual report to Congress 
which includes an assessment of Amtrak's progress on resolving 
productivity issues and makes recommendations for improvements 
or necessary legislative changes.

Section 204. Sunset trigger

  The bill establishes a mechanism to be implemented if at any 
time following two years after the date of enactment, the 
Council finds that Amtrak is not meeting its financial goals or 
finds that Amtrak will require federal operating assistance 
after the fifth anniversary of enactment of this Act, the 
Council is to immediately notify the President, the Senate 
Committee on Commerce, Science, and Transportation and the 
House Transportation and Infrastructure Committee. In making 
such a determination, the Committee intends the Council to take 
into account Amtrak's performance, the findings of the 
independent audit performed pursuant to Sec. 202, Acts of God, 
national emergencies, and other events beyond the reasonable 
control of Amtrak.
  Within 90 days after such a determination is made, the 
Council is directed to develop and submit to Congress an action 
plan for a restructured and rationalized intercity rail 
passenger system. Within that same time period, Amtrak is 
directed to prepare a plan for its complete liquidation.
  The Committee expects the Congress would consider legislation 
to address the fact that Amtrak is unable to operate in a 
financially viable manner and the bill provides a 90-day period 
for Congress to provide for a restructured passenger rail 
system. If the Congress does not take such action, Amtrak is 
required to begin implementing Amtrak's liquidation plan. 
Should this occur, the Committee believes that the liquidation 
plan must be carried out in a manner to protect the taxpayers' 
investment to the greatest extent possible and fully expects 
the comments of the DOT-Inspector General and the GAO to be 
followed closely during the liquidation process.

Section 205. Access to records and accounts

  This section permits each State to have access to Amtrak 
records and accounts to verify payments owed to Amtrak by the 
State.

Section 206. Officers' pay

  This section clarifies that statutory guidelines on pay of 
Amtrak officers only apply as long as Amtrak receives federal 
assistance.

Section 207. Exemption from taxes

  The section prohibits states from imposing sales taxes on 
Amtrak tickets or passengers, except where States now impose 
such taxes on intrastate travel. Further, this section phases 
out over 3 yearsa provision in effect since 1981 allowing Beech 
Grove, Indiana, to tax Amtrak property.

               TITLE III--AUTHORIZATION OF APPROPRIATIONS

Section 301. Authorization of appropriations

  This section authorizes Amtrak funding for five years as 
follows: $1,138,000,000 for FY 1998, $1,058,000,000 for FY 
1999, $1,023,000,000 for FY 2000, $989,000,000 for FY 2001, and 
$955,000,000 for FY 2002. These levels assume the equivalent of 
\1/2\ cent per gallon of motor fuels taxes for capital 
expenditures, as well as funds for operating and excess 
railroad retirement payments. These levels are the funding 
levels requested by Amtrak in its FY1998 Legislative Report and 
Federal Grant Request.

                        TITLE IV--MISCELLANEOUS

Section 401. Status and applicable laws

  This section provides technical corrections only.

Section 402. Waste disposal

  This section postpones the deadline for Amtrak waste disposal 
retrofitting requirements from 1996 to 2001.

Section 403. Assistance for upgrading facilities

  This section repeals an obsolete provision.

Section 404. Demonstration of new technology

  This section repeals a demonstration requirement that was 
completed in 1993.

Section 405. Program master plan for Boston-New York main line

  This section repeals specific planning requirements that were 
to have been completed in 1993.

Section 406. Americans with Disabilities Act of 1990 (ADA)

  This section extends the deadline for ADA compliance with 
respect to existing equipment and facilities until January 1, 
1998.

Section 407. Definitions

  This section makes technical and conforming changes in 
definitions and also repeals definitions which are no longer 
required.

Section 408. Northeast Corridor cost dispute

  This section repeals an obsolete provision. The repeal of 
this provision is not intended to affect the process currently 
employed, or the basis currently used by Amtrak and local 
commuter rail agencies, in negotiating cost sharing agreements 
for the operation of service on the Northeast Corridor.

Section 409. Inspector General Act of 1978 amendment

  This section provides that Amtrak will not be considered a 
federal entity for purposes of the Inspector General Act of 
1978 when it no longer receives federal assistance. It also 
directs the DOT Inspector General to review Amtrak's operations 
and conduct an assessment similar to that provided under Sec. 
202(a) during any year Amtrak requests federal assistance.

Section 410. Interstate rail compacts

  The section permits states to enter into interstate rail 
compacts to promote rail passenger service, including 
activities related to thefinancing of such service. It also 
allows states, if they choose, to spend a portion of their highway 
funding allocation on intercity rail as well as intermodal facilities 
such as bus terminals, including those owned by private entities.

Section 411. Composition of Amtrak board of directors

  This section alters the composition of the Amtrak Board of 
Directors to reflect other changes in the bill. Specifically, 
this section would add a representative of a municipality, such 
as a Mayor, to the Amtrak Board. This section also permits the 
existing labor representative Board slot to be selected from 
any rail labor organization. This section would reduce the 
level of representation from commuter rail authorities from two 
to one. It also repeals appointments made by the preferred 
stock holder, which is the Secretary of Transportation. Those 
two membership positions would be replaced by Presidential 
appointments of a representative of the general public and an 
individual with financial and accounting expertise.

Section 412. Educational participation

  This section directs Amtrak to make efforts to teach the 
Nation's school children about the advantages of careers in 
transportation and the advantages of rail transportation.

Section 413. Report to Congress on Amtrak bankruptcy

  The Committee is extremely concerned about the long-range 
implications of a potential Amtrak bankruptcy and believes a 
comprehensive analysis on this topic is necessary to assist the 
Congress and the Administration in fully understanding the far-
reaching effects of an Amtrak bankruptcy. The bill directs the 
Comptroller General to immediately conduct an analysis on this 
potential situation and submit a report to the Senate Committee 
on Commerce, Science, and Transportation and the House 
Committee on Transportation and Infrastructure. The Committee 
is interested in receiving an overview of the financial issues 
and implications associated with an Amtrak liquidation, 
including an analysis of the implications of such a liquidation 
on the federal government, Amtrak's creditors, and the railroad 
retirement system.

Section 414. Amtrak to notify Congress of lobbying relationships

  The Committee is aware Amtrak has paid millions of dollars 
over the years to hire outside contractors and consultants for 
various services. For example, in FY 1994, consulting and 
contract expenses (including legal services, engineering 
analysis, and ridership analysis) totaled $29.3 million, more 
than 25 percent of Amtrak's general and administrative budget. 
In FY 1995, that figure grew to $37.4 million.
  The Committee believes contracting for certain services is a 
fiscally responsible action by Amtrak. However, the Committee 
is concerned that some outside services funded by federal 
dollars may be inappropriate, such as the use of taxpayer funds 
to pay registered lobbyists to advise Amtrak on how to lobby 
Congress or to pay for others to lobby before state 
legislatures on Amtrak's behalf. In fact, federal agencies are 
prohibited from using taxpayer dollars to lobby Congress. 
Because the extent to which Amtrak has entered into such 
agreements is somewhat unclear, this section directs Amtrak to 
notify the Senate Committee on Commerce Science, and 
Transportation and the House Transportation and Infrastructure 
Committee whenever it enters into a contract for consulting or 
lobbying, with a lobbying firm, or an individual affiliated 
with a lobbying firm, as defined in the Lobbying Disclosure Act 
of 1995. Amtrak would identify the costs associated with these 
services and a listing of the entities or persons hired by 
Amtrak as long as federal assistance is provided to Amtrak.

                      Rollcall Votes in Committee

  In accordance with paragraph 7(c) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following description of the record votes during its 
consideration of S. 738:
  Senator Hutchison offered an amendment to make minor and 
technical corrections in the introduced bill. By rollcall vote 
of 14 yeas and 4 nays as follows, the amendment was adopted:
        YEAS--14-                     NAYS--4
Mr. Burns-                          Mr. Hollings-
Mr. Lott-                           Mr. Kerry \1\
Mrs. Hutchison                      Mr. Bryan \1\
Ms. Snowe-                          Mr. Dorgan
Mr. Ashcroft \1\
Mr. Frist \1\
Mr. Abraham
Mr. Brownback
Mr. Inouye
Mr. Ford
Mr. Rockefeller
Mr. Breaux
Mr. Wyden
Mr. McCain

    \1\ By proxy

  Senator Ford offered an amendment to strike section 161(b) 
relating to indemnification obligations. By rollcall vote of 9 
yeas and 9 nays as follows, with Mr. McCain voting present, the 
amendment was defeated:
        YEAS--9--                     NAYS--9
Mr. Hollings                        Mr. Burns \1\
Mr. Inouye \1\-                     Mr. Gorton \1\
Mr. Ford--                          Mr. Lott \1\
Mr. Rockefeller \1\-                Mrs. Hutchison
Mr. Kerry--                         Ms. Snowe
Mr. Breaux \1\-                     Mr. Ashcroft
Mr. Bryan \1\-                      Mr. Frist \1\
Mr. Dorgan \1\-                     Mr. Abraham
Mr. Wyden \1\-                      Mr. Brownback

    \1\ By proxy

  Senator Ford offered an amendment to strike section 161(a) 
relating to liability and punitive damages. By rollcall vote of 
9 yeas and 10 nays as follows, the amendment was defeated:
        YEAS--9--                     NAYS--10
Mr. Hollings                        Mr. Burns
Mr. Inouye--                        Mr. Gorton \1\
Mr. Ford--                          Mr. Lott \1\
Mr. Rockefeller \1\-                Mrs. Hutchison
Mr. Kerry--                         Ms. Snowe \1\
Mr. Breaux \1\-                     Mr. Ashcroft
Mr. Bryan \1\-                      Mr. Frist \1\
Mr. Dorgan \1\-                     Mr. Abraham
Mr. Wyden-                          Mr. Brownback---
                                    Mr. McCain

    \1\ By proxy

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman): \1\
---------------------------------------------------------------------------
    \1\ Changes in existing law are shown as that law is reflected in 
the United States Code, whether or not the title of the Code in which 
the law is reflected has been enacted into positive law.
---------------------------------------------------------------------------

             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

                               --Appendix

                     Inspector General Act of 1978

Sec. 8G. Requirements for Federal entities and designated Federal 
                    entities

  (a) Notwithstanding section 11 of this Act, as used in this 
section--
          (1) the term ``Federal entity'' means any Government 
        corporation (within the meaning of section 103(1) of 
        title 5, United States Code), any Government controlled 
        corporation (within the meaning of section 103(2) of 
        such title), or any other entity in the Executive 
        branch of the Government, or any independent regulatory 
        agency, but does not include--
                  (A) an establishment (as defined under 
                section 11(2) of this Act) or part of an 
                establishment;
                  (B) a designated Federal entity (as defined 
                under paragraph (2) of this subsection) or part 
                of a designated Federal entity;
                  (C) the Executive Office of the President;
                  (D) the Central Intelligence Agency;
                  (E) the General Accounting Office; or
                  (F) any entity in the judicial or legislative 
                branches of the Government, including the 
                Administrative Office of the United States 
                Courts and the Architect of the Capitol and any 
                activities under the direction of the Architect 
                of the Capitol;
          (2) the term ``designated Federal entity'' means 
        [Amtrak,] the Appalachian Regional Commission, the 
        Board of Governors of the Federal Reserve System, the 
        Board for International Broadcasting, the Commodity 
        Futures Trading Commission, the Consumer Product Safety 
        Commission, the Corporation for Public Broadcasting, 
        the Equal Employment Opportunity Commission, the Farm 
        Credit Administration, the Federal Communications 
        Commission, the Federal Deposit Insurance Corporation, 
        the Federal Election Commission, the Federal Housing 
        Finance Board, the Federal Labor Relations Authority, 
        the Federal Maritime Commission, the Federal Trade 
        Commission, the Interstate Commerce Commission, the 
        Legal Services Corporation, the National Archives and 
        Records Administration, the National Credit Union 
        Administration, the National Endowment for the Arts, 
        the National Endowment for the Humanities, the National 
        Labor Relations Board, the National Science Foundation, 
        the Panama Canal Commission, the Peace Corps, the 
        Pension Benefit Guaranty Corporation, the Securities 
        and Exchange Commission, the Smithsonian Institution, 
        the Tennessee Valley Authority, the United States 
        International Trade Commission, and the United States 
        Postal Service;
          * * * * * * *

                           TITLE 23--HIGHWAYS

                    Chapter 1. Federal-Aid Highways

Sec. 103. Federal-aid systems

  (a) In general.--For purposes of this title, the Federal-aid 
systems are the Interstate System and the National Highway 
System.
  (b) National Highway System.--
          (1) Purpose.--The purpose of the National Highway 
        System is to provide an interconnected system of 
        principal arterial routes which will serve major 
        population centers, international border crossings, 
        ports, airports, public transportation facilities, and 
        other intermodal transportation facilities and other 
        major travel destinations; meet national defense 
        requirements; and serve interstate and interregional 
        travel.
          (2) Components.--The National Highway System shall 
        consist of the following:
                  (A) Highways designated as part of the 
                Interstate System under subsection (e) and 
                section 139 of this title.
                  (B) Other urban and rural principal arterials 
                and highways (including toll facilities) which 
                provide motor vehicle access between such an 
                arterial and a major port, airport, public 
                transportation facility, or other intermodal 
                transportation facility. The States, in 
                cooperation with local and regional officials, 
                shall propose to the Secretary arterials and 
                highways for designation to the National 
                Highway System under this paragraph. In 
                urbanized areas, the local officials shall act 
                through the metropolitan planning organizations 
                designated for such areas under section 134 of 
                this title. The routes on the National Highway 
                System, as shown on the map submitted by the 
                Secretary to the Committee on Public Works and 
                Transportation of the House of Representatives 
                and the Committee on Environment and Public 
                Works of the Senate in 1991, illustrating the 
                National Highway System, shall serve as the 
                basis for theStates in proposing arterials and 
highways for designation to such system. The Secretary may modify or 
revise such proposals and submit such modified or revised proposals to 
Congress for approval in accordance with paragraph (3).
                  (C) A strategic highway network which is a 
                network of highways which are important to the 
                United States strategic defense policy and 
                which provide defense access, continuity, and 
                emergency capabilities for the movement of 
                personnel, materiels, and equipment in both 
                peace time and war time. Such highways may 
                include highways on and off the Interstate 
                System and shall be designated by the Secretary 
                in consultation with appropriate Federal 
                agencies and the States and be subject to 
                approval by Congress in accordance with 
                paragraph (3).
                  (D) Major strategic highway network 
                connectors which are highways that provide 
                motor vehicle access between major military 
                installations and highways which are part of 
                the strategic highway network. Such highways 
                shall be designated by the Secretary in 
                consultation with appropriate Federal agencies 
                and the States and subject to approval by 
                Congress in accordance with paragraph (3).
          (3) Approval of designations.--
                  (A) Proposed designations.-- Not later than 2 
                years after the date of the enactment of this 
                section, the Secretary shall submit for 
                approval to the Committee on Environment and 
                Public Works of the Senate and the Committee on 
                Public Works and Transportation of the House of 
                Representatives a proposed National Highway 
                System with a list and description of highways 
                proposed to be designated to the National 
                Highway System under this subsection and a map 
                showing such proposed designations. In 
                preparing the proposed system, the Secretary 
                shall consult appropriate local officials and 
                shall use the functional reclassification of 
                roads and streets carried out under subsection 
                (c) of section 1006 of the Intermodal Surface 
                Transportation Efficiency Act of 1991.
                  (B) Approval of congress required.--After 
                September 30, 1995, no funds made available for 
                carrying out this title may be apportioned for 
                the National Highway System or the Interstate 
                maintenance program under this title unless a 
                law has been approved designating the National 
                Highway System.
                  (C) Maximum mileage.--The mileage of highways 
                on the National Highway System shall not exceed 
                155,000 miles; except that the Secretary may 
                increase or decrease such maximum mileage by 
                not to exceed 15 percent.
                  (D) Equitable allocations of highway 
                mileage.--The Secretary shall provide for 
                equitable allocation of highway mileage on the 
                National Highway System among the States.
          (4) Interim system.--For fiscal years 1992, 1993, 
        1994, and 1995, highways classified as principal 
        arterials by the States shall be treated as being on 
        the National Highway System for purposes of this title.
          (5) Designation of nhs.--The National Highway System 
        as submitted by the Secretary of Transportation on the 
        map entitled ``Official Submission, National Highway 
        System, Federal Highway Administration'', and dated 
        November 13, 1995, is hereby designated within the 
        United States, including the District of Columbia and 
        the Commonwealth of Puerto Rico.
          (6) Modifications to nhs.--
                  (A) In general.--Subject to paragraph (7), 
                the Secretary may make modifications to the 
                National Highway System that are proposed by a 
                State or that are proposed by the State and 
                revised by the Secretary if the Secretary 
                determines that each of the modifications--
                          (i) meets the criteria established 
                        for the National Highway System under 
                        this title; and
                          (ii) enhances the national 
                        transportation characteristics of the 
                        National Highway System.
                  (B) Cooperation.--In proposing modifications 
                under this paragraph, a State shall cooperate 
                with local and regional officials. In urbanized 
                areas, the local officials shall act through 
                the metropolitan planning organizations 
                designated for such areas under section 134.
          (7) Transitional rules for intermodal connectors.--
                  (A) Required submission.--Not later than 180 
                days after the date of the enactment of the 
                National Highway System Designation Act of 
                1995, the Secretary shall submit for approval 
                to the Committee on Environment and Public 
                Works of the Senate and the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives modifications to the 
                National Highway System that are proposed by a 
                State or that are proposed by the State and 
                revised by the Secretary and that consist of 
                connectors to major ports, airports, 
                international border crossings, public 
                transportation and transit facilities, 
                interstate bus terminals, and rail and other 
                intermodal transportation facilities. (B) 
                Cooperation.--Paragraph (6)(B) shall apply to 
                modifications proposed by a State under this 
                paragraph.
                  (C) Eligibility.--
                          (i) Initial approval by law.--
                        Modifications proposed under 
                        subparagraph (A) may take effect only 
                        if a law has been enacted approving 
                        such modifications.
                          (ii) Interim eligibility.--
                        Notwithstanding clause (i), a project 
                        to construct a connector to an 
                        intermodal transportation facility 
                        described in subparagraph (A) shall be 
                        eligible for funds apportioned under 
                        section 104(b)(1) for the National 
                        Highway System if the Secretary finds 
                        that the project is consistent with 
                        criteria developed by the Secretary for 
                        construction of such connectors.
                          (iii) Period of eligibility.--A 
                        project which is eligible under clause 
                        (ii) for funds apportioned under 
                        section 104(b)(1) shall remain eligible 
                        for such funds pursuant to clause (ii) 
                        only until the date of the enactment of 
                        a law described in clause (i).
                  (D) Modifications after initial approval.--
                After the date of the enactment of a law 
                described in subparagraph (C)(i), a 
                modification consisting of a connector to an 
                intermodal transportation facility described in 
                subparagraph (A) may be made in accordance with 
                paragraph (6).
          (8) Congressional high priority corridors.--Upon the 
        completion of feasibility studies, the Secretary shall 
        add to the National Highway System any congressional 
        high priority corridor or any segment thereof 
        established by section 1105 of the Intermodal Surface 
        Transportation Efficiency Act of 1991 (105 Stat. 2031-
        2037) which was not identified on the National Highway 
        System designated by paragraph (5).
  (c), (d) [Repealed]
  (e) Interstate System.--
          (1) Designation; mileage limitation.--The Interstate 
        System shall be designated within the United States, 
        including the District of Columbia, and, except as 
        provided in paragraphs (2) and (3) of this subsection, 
        it shall not exceed forty-one thousand miles in total 
        extent. It shall be so located as to connect by routes, 
        as direct as practicable, the principal metropolitan 
        areas, cities, and industrial centers, to serve the 
        national defense and, to the greatest extent possible, 
        to connect at suitable border points with routes of 
        continental importance in the Dominion of Canada and 
        the Republic of Mexico. The routes of this system, to 
        the greatest extent possible, shall be selected by 
        joint action of the State highway departments of each 
        State and the adjoining States, subject to the approval 
        by the Secretary as provided in subsection (f) of this 
        section. All highways or routes included in the 
        Interstate System as finally approved, if not already 
        coincident with the primary system, shall be added to 
        said system without regard to the mileage limitation 
        set forth in subsection (b) of this section. This 
        system may be located both in rural and urban areas.
          (2) Modifications.--In addition to the mileage 
        authorized by the first sentence of paragraph (1) of 
        this subsection, there is hereby authorized additional 
        mileage for the Interstate System of five hundred 
        miles, to be used in making modifications or revisions 
        in the Interstate System as provided in this paragraph. 
        Upon the request of a State highway department the 
        Secretary may withdraw his approval of any route or 
        portion thereof on the Interstate System within that 
        State selected and approved in accordance with this 
        title, if he determines that such route or portion 
        thereof is not essential to completion of a unified and 
        connected Interstate System (including urban routes 
        necessary for metropolitan transportation) and will not 
        be constructed as a part of the Interstate System, and 
        if he receives assurances that the State does not 
        intend to construct a toll road in the traffic corridor 
        which would be served by such route or portion thereof. 
        After the Secretary has withdrawn his approval of any 
        such route or portion thereof the mileage of such route 
        or portion thereof and the additional mileage 
        authorized by the first sentence of this paragraph 
        shall be available for the designation of interstate 
        routes or portions thereof as provided in this 
        subsection. The provisions of this title applicable to 
        the Interstate System shall apply to all mileage 
        designated under the third sentence of this paragraph. 
        The Secretary shall not designate any Interstate route 
        or portion thereof under authority of this paragraph 
        after the date of enactment of the Federal Aid Highway 
        Act of 1978.
          (3) Additional mileage for improved efficiency.--In 
        addition to the mileage authorized by paragraphs (1) 
        and (2) of this subsection, there is hereby authorized 
        additional mileage of not to exceed 1,500 miles for the 
        designation of routes in the same manner as set forth 
        in paragraph (1), in order to improve the efficiency 
        and service of the Interstate System to better 
        accomplish the purposes of that System.
          (4) Interstate substitute program.--
                  (A) Withdrawal of approval.--Upon the joint 
                request of a State Governor and the local 
                governments concerned, the Secretary may 
                withdraw approval of any route or portion 
                thereof on the Interstate System which was 
                selected and approved in accordance with this 
                title, if the Secretary determines that such 
                route or portion thereof is not essential to 
                completion of a unified and connected 
                Interstate System and if the Secretary receives 
                assurances that the State does not intend to 
                construct a toll road in the traffic corridor 
                which would be served by the route or portion 
                thereof.
                  (B) Substitute projects.--When the Secretary 
                withdraws approval under this paragraph, a sum 
                equal to the Federal share of the cost to 
                complete the withdrawn route or portion 
                thereof, as that cost is included in the latest 
                Interstate System cost estimate approved by 
                Congress, or up to and including the 1983 
                interstate cost estimate, whichever is earlier, 
                subject to increase or decrease, as determined 
                by the Secretary based on changes in 
                construction costs of the withdrawn route or 
                portion thereof as of the date of approval of 
                each substitute project under this paragraph, 
                or the date of approval of the 1983 interstate 
                cost estimate, whichever is earlier, shall be 
                available to the Secretary to incur obligations 
                for the Federal share of either public mass 
                transit projects involving the construction of 
                fixed rail facilities or the purchase of 
                passenger equipment including rolling stock, 
                for any mode of mass transit, or both, or 
                highway construction projects on any public 
                road, or both, which will serve the area or 
                areas from which the interstate route or 
                portion thereof was withdrawn, which are 
                selected by the responsible local officials of 
                the area or areas to be served, and which are 
                selected by the Governor or the Governors of 
                the State or the States in which the withdrawn 
                route was located if the withdrawn route was 
                not within an urbanized area or did not pass 
                through and connect urbanized areas, and which 
                are submitted by the Governors of the States in 
                which the withdrawn route was located. Each 
                project constructed under this paragraph on a 
                Federal-aid system shall be subject to the 
                provisions of this title applicable to such 
                system. Each project constructed under this 
                paragraph not ona Federal-aid system shall be 
subject to the provisions of this title applicable to projects on the 
Federal-aid secondary system.
                  (C) Deadline for withdrawal.--The Secretary 
                shall not approve any withdrawal of a route 
                under this paragraph after September 30, 1983--
                          (i) except that with respect to any 
                        route which on November 6, 1978, is 
                        under judicial injunction prohibiting 
                        its construction the Secretary may 
                        approve withdrawals until September 30, 
                        1986, and (ii) except that with respect 
                        to any route which on May 12, 1982, is 
                        under judicial injunction prohibiting 
                        its construction, the Secretary may 
                        approve withdrawals on such route until 
                        September 30, 1985.
                  (D) Project approval; federal share.--
                Approval by the Secretary of the plans, 
                specifications, and estimates for a substitute 
                project shall be deemed to be a contractual 
                obligation of the Federal Government. The 
                Federal share of each substitute project shall 
                not exceed 85 percent of the cost thereof.
                  (E) Availability of funds for substitute 
                projects.--
                          (i) Time period.--The sums 
                        apportioned and the sums allocated 
                        under this paragraph for public mass 
                        transit projects and for highway 
                        construction projects in a State shall 
                        remain available for obligation in such 
                        State for the fiscal year for which 
                        apportioned or allocated, as the case 
                        may be, and for the succeeding fiscal 
                        year. In the case of funds authorized 
                        to be appropriated for substitute 
                        transit projects under this paragraph 
                        for fiscal year 1993 and for substitute 
                        highway projects under this paragraph 
                        for fiscal year 1995, such funds shall 
                        remain available until expended.
                          (ii) Reapportionment or 
                        reallocation.--Any sums which are 
                        apportioned or allocated to a State and 
                        are unobligated (other than an amount 
                        which, by itself, is insufficient to 
                        pay the Federal share of the cost of a 
                        substitute project which has been 
                        submitted by the State to the Secretary 
                        for approval) at the end of the period 
                        of availability established by clause 
                        (i) shall be apportioned or allocated, 
                        as the case may be, among those States 
                        which have obligated all sums (other 
                        than such an amount) apportioned or 
                        allocated, as the case may be, to them. 
                        Such reapportionments shall be in 
                        accordance with the latest approved or 
                        adjusted estimate of the cost of 
                        completing substitute projects, and 
                        such reallocations shall be at the 
                        discretion of the Secretary.
                  (F) Administration of transit funds.--The 
                sums obligated for mass transit projects under 
                this paragraph shall become part of, and be 
                administered through, the Urban Mass 
                Transportation Fund.
                  (G) Authorization of appropriations for 
                highway projects.--For the fiscal year ending 
                September 30, 1983, $257,000,000 shall be 
                available out of the Highway Trust Fund for 
                expenditure at the discretion of the Secretary 
                for projects under highway assistance programs. 
                There shall be available, out of the Highway 
                Trust Fund (other than the Mass Transit 
                Account), to the Secretary for expenditure 
                under this paragraph for projects under highway 
                assistance programs $700,000,000 per fiscal 
                year for each of fiscal years 1984 and 1985, 
                $693,825,000 for fiscal year 1986, $740,000,000 
                per fiscal year for each of fiscal years 1987, 
                1988, 1989, 1990, and 1991, $240,000,000 per 
                fiscal year for each of fiscal years 1992, 
                1993, 1994, and 1995. Such sums may be 
                obligated for transit substitute projects under 
                this paragraph.
                  (H) Distribution of substitute highway 
                funds.--
                          (i) Between discretionary and 
                        apportioned programs.--Subject to 
                        section 149(d) of the Federal-Aid 
                        Highway Act of 1987, 25 percent of the 
                        funds made available by subparagraph 
                        (G) for each of fiscal years 1984, 
                        1985, 1986, 1987, 1988, 1989, 1990, and 
                        1991 for substitute highway projects 
                        under this paragraph shall be 
                        distributed at the discretion of the 
                        Secretary. The remaining 75 percent of 
                        such funds shall be apportioned in 
                        accordance with cost estimates approved 
                        by Congress or adjusted by the 
                        Secretary. For each of fiscal years 
                        1992, 1993, 1994, and 1995, all funds 
                        made available by subparagraph (G) 
                        shall be apportioned in accordance with 
                        cost estimates adjusted by the 
                        Secretary.
                          (ii) Fiscal years 1985, 1986, and 
                        1987 apportionments.--The Secretary 
                        shall make a revised estimate of the 
                        cost of completing substitute highway 
                        projects under this paragraph and 
                        transmit the same to the Senate and the 
                        House of Representatives within 10 days 
                        subsequent to January 2, 1984, and upon 
                        approval by Congress, the Secretary 
                        shall use the Federal share of such 
                        approved estimate in making 
                        apportionments for substitute highway 
                        projects for fiscal years 1985, 1986, 
                        and 1987.
                          (iii) Fiscal years 1988-1995 
                        apportionments.--The Secretary shall 
                        make a revised estimate of the cost of 
                        completing substitute highway projects 
                        under this paragraph and transmit the 
                        same to the Senate and the House of 
                        Representatives as soon as practicable 
                        after the date of the enactment of the 
                        Federal-Aid Highway Act of 1987. Upon 
                        approval by Congress, the Secretary 
                        shall use the Federal share of such 
                        approved estimate in making 
                        apportionments for substitute highway 
                        projects for fiscal year 1988. If such 
                        estimate is not approved by Congress by 
                        September 30, 1987, the Secretary shall 
                        adjust such estimate in accordance with 
                        this clause and use the Federal share 
                        of the adjusted estimate in making 
                        apportionments for fiscal year 1988. 
                        The Secretary shall adjust such 
                        estimate annually thereafter in 
                        accordance with this clause andshall 
use the Federal share of such adjusted estimate in making 
apportionments for substitute highway projects for fiscal years 1989, 
1990, 1991, 1992, 1993, 1994, and 1995. The adjustments required by 
this clause shall reflect previous withdrawals of interstate segments, 
changes in State estimates in the division of funds between substitute 
highway and transit projects, amounts made available in prior fiscal 
years, and the availability and reapportionment of funds under 
subparagraph (E).
                  (I) Authorization of appropriations for 
                transit projects.--There are authorized to be 
                appropriated for liquidation of obligations 
                incurred for substitute transit projects under 
                this paragraph the sums provided in section 
                4(g) of the Urban Mass Transportation Act of 
                1964.
                  (J) Distribution of substitute transit 
                funds.--
                          (i) Between discretionary and 
                        apportioned programs.--Fifty percent of 
                        the funds appropriated for each fiscal 
                        year beginning after September 30, 
                        1983, and ending before October 1, 1991 
                        for carrying out substitute transit 
                        projects under this paragraph shall be 
                        distributed at the discretion of the 
                        Secretary. The remaining 50 percent of 
                        such funds shall be apportioned in 
                        accordance with cost estimates approved 
                        by Congress or adjusted by the 
                        Secretary. 100 percent of funds 
                        appropriated for each of fiscal years 
                        1992 and 1993 shall be apportioned in 
                        accordance with cost estimates adjusted 
                        by the Secretary.
                          (ii) Fiscal years 1985, 1986, and 
                        1987 apportionments.--The Secretary 
                        shall make a revised estimate of the 
                        cost of completing substitute transit 
                        projects under this paragraph and 
                        transmit the same to the Senate and the 
                        House of Representatives within 10 days 
                        subsequent to January 2, 1984, and upon 
                        approval by Congress, the Secretary 
                        shall use the Federal share of such 
                        approved estimate in making 
                        apportionments for substitute transit 
                        projects for fiscal years 1985, 1986, 
                        and 1987.
                          (iii) Fiscal years 1988-1993 
                        apportionments.--The Secretary shall 
                        make a revised estimate of the cost of 
                        completing substitute transit projects 
                        under this paragraph and transmit the 
                        same to the Senate and the House of 
                        Representatives as soon as practicable 
                        after the date of the enactment of the 
                        Federal-Aid Highway Act of 1987. Upon 
                        approval by Congress, the Secretary 
                        shall use the Federal share of such 
                        approved estimate in making 
                        apportionments for substitute transit 
                        projects for fiscal year 1988. If such 
                        estimate is not approved by Congress by 
                        September 30, 1987, the Secretary shall 
                        adjust such estimate in accordance with 
                        this clause and use the Federal share 
                        of the adjusted estimate in making 
                        apportionments for fiscal year 1988. 
                        The Secretary shall adjust such 
                        estimate annually thereafter in 
                        accordance with this clause and shall 
                        use the Federal share of such adjusted 
                        estimate in making apportionments for 
                        substitute transit projects for fiscal 
                        years 1989, 1990, 1991, 1992, and 1993. 
                        The adjustments required by this clause 
                        shall reflect previous withdrawals of 
                        Interstate segments, changes in State 
                        estimates in the division of funds 
                        between substitute highway and transit 
                        projects, amounts made available in 
                        prior fiscal years, and the 
                        availability and reapportionment of 
                        funds under subparagraph (E).
                  (K) Reduction of interstate apportionment.--
                          (i) In general.--Unobligated 
                        apportionments for the Interstate 
                        System in any State where a withdrawal 
                        is approved under this paragraph shall, 
                        on the date of such approval, be 
                        reduced in the proportion that the 
                        Federal share of the cost of the 
                        withdrawn route or portion thereof 
                        bears to the Federal share of the total 
                        cost of all interstate routes in that 
                        State as reflected in the latest cost 
                        estimate approved by the Congress.
                          (ii) Exception.--In any State where 
                        the withdrawal of an interstate route 
                        or portion thereof has been approved 
                        under this section prior to the date of 
                        the enactment of the Federal-Aid 
                        Highway Act of 1976, the unobligated 
                        apportionments for the Interstate 
                        System in that State on such date of 
                        enactment shall be reduced in the 
                        proportion that the Federal share of 
                        the cost to complete such route or 
                        portion thereof, as shown in the latest 
                        cost estimate approved by Congress 
                        prior to such approval of withdrawal, 
                        bears to the Federal share of the cost 
                        of all interstate routes in that State, 
                        as shown in such cost estimate; except 
                        that the amount of such proportional 
                        reduction shall be credited with the 
                        amount of any reduction in such State's 
                        Interstate apportionment which was 
                        attributable to the Federal share of 
                        any substitute project approved under 
                        this paragraph before such date of 
                        enactment.
                  (L) Applicability of chapter 53 of title 
                49.--
                          (i) Supplementary funds.--Funds 
                        available for expenditure to carry out 
                        the purposes of this paragraph shall be 
                        supplementary to and not in 
                        substitution for funds authorized and 
                        available for obligation pursuant to 
                        chapter 53 of title 49.
                          (ii) Labor protection.--The 
                        provisions of section 5323(a)(1)(D) of 
                        title 49 shall apply in carrying out 
                        this paragraph.
                  (M) Limitation on interstate designations.--
                After the date of the enactment of the Federal-
                Aid Highway Act of 1978, the Secretary may not 
                designate any mileage as part of the Interstate 
                System pursuant to this paragraph or under any 
                other provision of law. The preceding sentence 
                shall not apply to a designation made under 
                section 139 of this title.
                  (N) Open to traffic requirement.--After 
                September 30, 1979, the Secretary shall not 
                withdraw his approval under this paragraph of 
                any route or portion thereof on the Interstate 
                System open to traffic before the date of the 
                proposed withdrawal. Any withdrawal of approval 
                of any such route or portion thereof before 
                September 30, 1979, is hereby determined to be 
                authorized by this paragraph.
                  (O) Limitation on substitution for 
                statutorily designated routes.--Any route or 
                segment which was statutorily designated after 
                March 7, 1978, to be on the Interstate System 
                shall not be eligible for withdrawal or 
                substitution under this subsection.
                  (P) Right-of-way payback.--
                          (i) Enforcement.--Of sums apportioned 
                        or allocated under this paragraph to a 
                        State, the Secretary shall not obligate 
                        for projects in such State an amount 
                        equal to the amount of Federal funds 
                        expended to purchase the right-of-way 
                        for any withdrawn route or portion 
                        thereof if the right-of-way is not 
                        first disposed of (or applied to a 
                        project in accordance with paragraph 
                        (5)(B), (6)(B), or (7)) by the State.
                          (ii) Limitation on applicability.--
                        Clause (i) shall not apply to sums 
                        apportioned or allocated under this 
                        paragraph to a State for a fiscal year 
                        if the projected total amount of funds 
                        to be apportioned and allocated under 
                        this paragraph to such State in 
                        succeeding fiscal years exceeds the 
                        amount of Federal funds expended to 
                        purchase the right-of-way.
                          (iii) Release of funds.--The 
                        Secretary may obligate for projects in 
                        a State under this paragraph any funds 
                        withheld from obligation in such State 
                        if the State repays an equivalent 
                        amount in accordance with paragraph 
                        (5)(B), (6)(B), or (7), as the case may 
                        be, or if the Secretary determines that 
                        such repayment is not required under 
                        such paragraph.
          (5) Limitation on refunds for withdrawals before 
        november 6, 1978.--Notwithstanding any other provision 
        of law, in the case of any withdrawal of approval 
        before November 6, 1978--
                  (A) upon the withdrawal of approval of any 
                route or portion thereof on the Interstate 
                System under this section, a State, subject to 
                the approval of the Secretary, shall not be 
                required to refund to the Highway Trust Fund 
                any sums paid to the State for intangible 
                costs;
                  (B) refund will not be required for the costs 
                of construction items, materials, or rights-of-
                way of the withdrawn route or portion of the 
                Interstate System which will be or have been 
                applied (i) to a transportation project 
                permissible under this title, (ii) to a public 
                conservation or public recreation purpose, or 
                (iii) to such other public purpose as may be 
                determined by the Secretary to be in the public 
                interest on condition that the State shall make 
                assurances satisfactory to the Secretary that 
                such construction items or materials or rights-
                of-way have been or will be so applied by the 
                State of any political subdivision thereof to a 
                project under clause (i), (ii), or (iii) within 
                10 years from the date of the withdrawal of 
                approval.
          (6) Limitation on refunds for withdrawals on and 
        after november 6, 1978.--Notwithstanding any other 
        provision of law--
                  (A) in the case of any withdrawal of approval 
                on or after November 6, 1978, of a route or 
                portion thereof on the Interstate System, a 
                State, subject to the approval of the 
                Secretary, shall not be required to refund to 
                the Highway Trust Fund any sums paid to the 
                State for intangible costs;
                  (B) in the case of any withdrawal of approval 
                on or after November 6, 1978, of any route or 
                portion thereof on the Interstate System under 
                this section, a State shall not be required to 
                refund to the Highway Trust Fund the costs of 
                construction items, materials, or rights-of-way 
                of the withdrawn route or portion thereof if 
                such items, materials, and rights-of-way were 
                acquired before November 6, 1978, if by the 
                date of withdrawal of approval the Secretary 
                has not approved the environmental impact 
                statement required by the National 
                Environmental Policy Act of 1969, and if such 
                construction items, materials, or rights-of-way 
                will be or have been applied (i) to a 
                transportation project permissible under this 
                title, (ii) to a public conservation or public 
                recreation purpose, or (iii) to any other 
                public purpose determined by the Secretary to 
                be in the public interest on condition that the 
                State gives assurances satisfactory to the 
                Secretary that such construction items, 
                materials, or rights-of-way have been or will 
                be so applied by the State, or any political 
                subdivision thereof, to a project under clause 
                (i), (ii), or (iii) within ten years from the 
                date of withdrawal of approval.
          (7) Additional limitation on refunds.--In any case 
        where a withdrawal of approval of a route or portion 
        thereof on the Interstate System on or after November 
        6, 1978, does not come within the provisions of 
        paragraph (6)(B) of this subsection, the State shall 
        refund to the Highway Trust Fund the costs of 
        construction items, materials, and rights-of-way of the 
        withdrawn route or portion thereof, except that if the 
        State gives assurances satisfactory to the Secretary 
        that such items, materials, and rights-of-way have been 
        or will be applied to a transportation project 
        permissible under this title within ten years from the 
        date of withdrawal of approval, the amount of such 
        repayment shall be the difference between the amount 
        received for such items, materials, and rights-of-way 
        and the amount which would be received in accordance 
        with the current Federal share applicable to the 
        transportation project to which such items, materials, 
        and rights-of-way were or are to be applied.
          (8) Protection of property rights.--Nothing in this 
        subsection shall in any way alter rights under State 
        law of persons owning property within the right-of-way 
        immediately prior to such property being obtained by 
        the State. The Federalshare of the cost of property 
sold or otherwise transferred to previous owners under State law shall 
be refunded and credited to the unobligated balance of the State's 
apportionment for interstate highways.
          (9) Limitation on funding of modified mileage 
        projects.--Interstate mileage authorized for any State 
        and withdrawn and transferred under the provisions of 
        paragraph (2) of this subsection after the date of 
        enactment of the Federal-Aid Highway Act of 1976, must 
        be constructed by the State receiving such mileage as 
        part of its Interstate System. Any State receiving such 
        transfer of mileage may not, with respect to that 
        transfer, avail itself of the optional use of 
        Interstate funds under the second sentence of paragraph 
        (4) of this subsection.
  (f) The Secretary shall have authority to approve in whole or 
in part the Interstate System, as and when such systems or 
portions thereof are designated, or to require modifications or 
revisions thereof.
  (g) The Secretary, on July 1, 1974, shall remove from 
designation as a part of the Interstate System each segment of 
such system for which a State has not notified the Secretary 
that such State intends to construct such segment, and which 
the Secretary finds is not essential to completion of a unified 
and connected Interstate System. Any segment of the Interstate 
System, with respect to which a State has not submitted by July 
1, 1975, a schedule for the expenditure of funds for completion 
of construction of such segment or alternative segment within 
the period of availability of funds authorized to be 
appropriated for completion of the Interstate System, and with 
respect to which the State has not provided the Secretary with 
assurances satisfactory to him that such schedule will be met, 
shall be removed from designation as a part of the Interstate 
System. No segment of the Interstate System removed under the 
authority of the preceding sentence shall thereafter be 
designated as a part of the Interstate System except as the 
Secretary finds necessary in the interest of national defense 
or for other reasons of national interest. This subsection 
shall not be applicable to any segment of the Interstate System 
referred to in section 23(a) of the Federal-Aid Highway Act of 
1968.
  (h) Notwithstanding subsections (e)(2) and (g) of this 
section, in any case where a segment of the Interstate System 
was a designated part of such System on June 1, 1973, and is 
entirely within the boundaries of an incorporated city and such 
city enters into an agreement with the Secretary to pay all 
non-Federal costs of construction of such segment, such segment 
shall be constructed.
  (i)  Eligible projects for nhs.--Subject to project approval 
by the Secretary, funds apportioned to a State under section 
104(b)(1) for the National Highway System may be obligated for 
any of the following:
          (1) Construction, reconstruction, resurfacing, 
        restoration, and rehabilitation of segments of such 
        system.
          (2) Operational improvements for segments of such 
        system.
          (3) Construction of, and operational improvements 
        for, a Federal-aid highway not on the National Highway 
        System and construction of a transit project eligible 
        for assistance under chapter 53 of title 49--
                  (A) if such highway or transit project is in 
                the same corridor as, and in proximity to, a 
                fully access controlled highway designated to 
                the National Highway System;
                  (B) if the construction or improvements will 
                improve the level of service on the fully 
                access controlled highway and improve regional 
                travel; and
                  (C) if the construction or improvements are 
                more cost effective than an improvement to the 
                fully access controlled highway that has 
                benefits comparable to the benefits which will 
                be achieved by the construction of, or 
                improvements to, the highway not on the 
                National Highway System.
          (4) Highway safety improvements for segments of the 
        National Highway System.
          (5) Transportation planning in accordance with 
        sections 134 and 135.
          (6) Highway research and planning in accordance with 
        section 307.
          (7) Highway-related technology transfer activities.
          (8) Capital and operating costs for traffic 
        monitoring, management, and control facilities and 
        programs.
          (9) Fringe and corridor parking facilities.
          (10) Carpool and vanpool projects.
          (11) Bicycle transportation and pedestrian walkways 
        in accordance with section 217.
          (12) Development and establishment of management 
        systems under section 303.
          (13) In accordance with all applicable Federal law 
        and regulations, participation in wetlands mitigation 
        efforts related to projects funded under this title, 
        which may include participation in wetlands mitigation 
        banks; contributions to statewide and regional efforts 
        to conserve, restore, enhance and create wetlands; and 
        development of statewide and regional wetlands 
        conservation and mitigation plans, including any such 
        banks, efforts, and plans authorized pursuant to the 
        Water Resources Development Act of 1990 (including 
        crediting provisions). Contributions to such mitigation 
        efforts may take place concurrent with or in advance of 
        project construction. Contributions toward these 
        efforts may occur in advance of project construction 
        only if such efforts are consistent with all applicable 
        requirements of Federal law and regulations and State 
        transportation planning processes.
            (14) Construction, reconstruction, and 
        rehabilitation of, and operational improvements for, 
        intercity rail passenger facilities (including 
        facilities owned by the National Railroad Passenger 
        Corporation), operation of intercity rail passenger 
        trains, and acquisition or reconstruction of rolling 
        stock for intercity rail passenger service, except that 
        not more than 50 percent of the amount received by a 
        State for a fiscal year under this paragraph may be 
        obligated for operation.

Sec.  133. Surface transportation program

    (a) Establishment.--The Secretary shall establish a surface 
transportation program in accordance with this section.
    (b) Eligible Projects.--A State may obligate funds 
apportioned to it under section 104(b)(3) for the surface 
transportation program only for the following:
            (1) Construction, reconstruction, rehabilitation, 
        resurfacing, restoration, and operational improvements 
        for highways (including Interstate highways) and 
        bridges (including bridges on public roads of all 
        functional classifications), including any such 
        construction or reconstruction necessary to accommodate 
        other transportation modes, and including the seismic 
        retrofit and painting of and application of calcium 
        magnesium acetate on bridges and approaches thereto and 
        other elevated structures, mitigation of damage to 
        wildlife, habitat, and ecosystems caused by a 
        transportation project funded under this title.
            (2) Capital costs for transit projects eligible for 
        assistance under the chapter 53 of title 49 [and 
        publicly owned intracity or intercity bus terminals and 
        facilities.] facilities, including vehicles and 
        facilities, publicly or privately owned, that are used 
        to provide intercity passenger service by bus or rail, 
        or a combination of both.
            (3) Carpool projects, fringe and corridor parking 
        facilities and programs, and bicycle transportation and 
        pedestrian walkways in accordance with section 217.
            (4) Highway and transit safety improvements and 
        programs, hazard eliminations, projects to mitigate 
        hazards caused by wildlife, and railway-highway grade 
        crossings.
            (5) Highway and transit research and development 
        and technology transfer programs.
            (6) Capital and operating costs for traffic 
        monitoring, management, and control facilities and 
        programs.
            (7) Surface transportation planning programs.
            (8) Transportation enhancement activities.
            (9) Transportation control measures listed in 
        section 108(f)(1)(A) (other than clauses (xii) and 
        (xvi)) of the Clean Air Act.
            (10) Development and establishment of management 
        systems under section 303.
            (11) In accordance with all applicable Federal law 
        and regulations, participation in wetlands mitigation 
        efforts related to projects funded under this title, 
        which may include participation in wetlands mitigation 
        banks; contributions to statewide and regional efforts 
        to conserve, restore, enhance and create wetlands; and 
        development of statewide and regional wetlands 
        conservation and mitigation plans, including any such 
        banks, efforts, and plans authorized pursuant to the 
        Water Resources Development Act of 1990 (including 
        crediting provisions). Contributions to such mitigation 
        efforts may take place concurrent with or in advance of 
        project construction. Contributions toward these 
        efforts may occur in advance of project construction 
        only if such efforts are consistent with all applicable 
        requirements of Federal law and regulations and State 
        transportation planning processes.
    (c) Location of Projects.--Except as provided in subsection 
(b)(1), surface transportation program projects (other than 
those described in subsections (b) (3) and (4)) may not be 
undertaken on roads functionally classified as local or rural 
minor collectors, unless such roads are on a Federal-aid 
highway system on January 1, 1991, and except as approved by 
the Secretary.
    (d) Allocations of Apportioned Funds.--
            (1) For safety programs.--10 percent of the funds 
        apportioned to a State under section 104(b)(3) for the 
        surface transportation program for a fiscal year shall 
        only be available for carrying out sections 130 and 152 
        of this title. Of the funds set aside under the 
        preceding sentence, the State shall reserve in such 
        fiscal year an amount of such funds for carrying out 
        each such section which is not less than the amount of 
        funds apportioned to the State in fiscal year 1991 
        under such section.
            (2) For transportation enhancement activities.--10 
        percent of the funds apportioned to a State under 
        section 104(b)(3) for a fiscal year shall only be 
        available for transportation enhancement activities.
            (3) Division between urbanized areas of over 
        200,000 population and other areas.--
                    (A) General rule.--Except as provided in 
                subparagraphs (C) and (D), 62.5 percent of the 
                remaining 80 percent of the funds apportioned 
                to a State under section 104(b)(3) for a fiscal 
                year shall be obligated under this section--
                            (i) in urbanized areas of the State 
                        with an urbanized area population of 
                        over 200,000, and
                            (ii) in other areas of the State,
                in proportion to their relative share of the 
                State's population. The remaining 37.5 percent 
                may be obligated in any area of the State. 
                Funds attributed to an urbanized area under 
                clause (i) may be obligated in the metropolitan 
                area established under section 134 which 
                encompasses the urbanized area.
                    (B) Special rule for areas of less than 
                5,000 population.--Of the amounts required to 
                be obligated under subparagraph (A)(ii), the 
                State shallobligate in areas of the State 
                (other than urban areas with a population 
                greater than 5,000) an amount which is not less 
                than 110 percent of the amount of funds 
                apportioned to the State for the Federal-aid 
                secondary system for fiscal year 1991.
                    (C) Special rule for certain states.--In 
                the case of a State in which--
                            (i) greater than 80 percent of the 
                        population of the State is located in 1 
                        or more metropolitan statistical areas, 
                        and
                            (ii) greater than 80 percent of the 
                        land area of such State is owned by the 
                        United States,
                the 62.5 percentage specified in the first 
                sentence of subparagraph (A) shall be 35 
                percent and the percentage specified in the 
                second sentence of subparagraph (A) shall be 65 
                percent.
                    (D) Noncontiguous states exemption.--
                Subparagraph (A) shall not apply to any State 
                which is noncontiguous with the continental 
                United States.
                    (E) Distribution between urbanized areas of 
                over 200,000 population.--The amount of funds 
                which a State is required to obligate under 
                subparagraph (A)(i) shall be obligated in 
                urbanized areas described in subparagraph 
                (A)(i) based on the relative population of such 
                areas; except that the State may obligate such 
                funds based on other factors if the State and 
                the relevant metropolitan planning 
                organizations jointly apply to the Secretary 
                for the permission to do so and the Secretary 
                grants the request.
            (4) Applicability of planning requirements.--
        Programming and expenditure of funds for projects under 
        this section shall be consistent with the requirements 
        of sections 134 and 135 of this title.
            (5) Applicability of certain requirements to third 
        party sellers.--
                    (A) In general.--Except as provided in 
                subparagraphs (B) and (C), in the case of a 
                transportation enhancement activity funded from 
                the allocation required under paragraph (2), if 
                real property or an interest in real property 
                is to be acquired from a qualified organization 
                exclusively for conservation purposes (as 
                determined under section 170(h) of the Internal 
                Revenue Code of 1986, the organization shall be 
                considered to be the owner of the property for 
                the purpose of the Uniform Relocation 
                Assistance and Real Property Acquisition 
                Policies Act of 1970 (42 U.S.C. 4601 et seq.).
                    (B) Federal approval prior to involvement 
                of qualified organization.--If Federal approval 
                of the acquisition of the real property or 
                interest predates the involvement of a 
                qualified organization described in 
                subparagraph (A) in the acquisition of the 
                property, the organization shall be considered 
                to be an acquiring agency or person as 
                described in section 24.101(a)(2) of title 49, 
                Code of Federal Regulations, for the purpose of 
                the Uniform Relocation Assistance and Real 
                Property Acquisition Policies Act of 1970.
                    (C) Acquisitions on behalf of recipients of 
                Federal funds.--If a qualified organization 
                described in subparagraph (A) has contracted 
                with a State highway department or other 
                recipient of Federal funds to acquire the real 
                property or interest on behalf of the 
                recipient, the organization shall be considered 
                tobe an agent of the recipient for the purpose 
                of the Uniform Relocation Assistance and Real 
                Property Acquisition Policies Act of 1970.
    (e) Administration.--
            (1) Noncompliance.--If the Secretary determines 
        that a State or local government has failed to comply 
        substantially with any provision of this section, the 
        Secretary shall notify the State that, if the State 
        fails to take corrective action within 60 days from the 
        date of receipt of the notification, the Secretary will 
        withhold future apportionments under section 104(b)(3) 
        until the Secretary is satisfied that appropriate 
        corrective action has been taken.
            (2) Certification.--The Governor of each State 
        shall certify before the beginning of each quarter of a 
        fiscal year that the State will meet all the 
        requirements of this section and shall notify the 
        Secretary of the amount of obligations expected to be 
        incurred for surface transportation program projects 
        during such quarter. A State may request adjustment to 
        the obligation amounts later in each of such quarters. 
        Acceptance of the notification and certification shall 
        be deemed a contractual obligation of the United States 
        for the payment of the surface transportation program 
        funds expected to be obligated by the State in such 
        quarter for projects not subject to review by the 
        Secretary under this chapter.
            (3) Payments.--
                    (A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall make 
                payments to a State of costs incurred by the 
                State for the surface transportation program in 
                accordance with procedures to be established by 
                the Secretary. Payments shall not exceed the 
                Federal share of costs incurred as of the date 
                the State requests payments.
                    (B) Advance payment option for 
                transportation enhancement activities.--
                            (i) In general.--The Secretary may 
                        advance funds to the State for 
                        transportation enhancement activities 
                        funded from the allocation required by 
                        subsection (d)(2) for a fiscal year if 
                        the Secretary certifies for the fiscal 
                        year that the State has authorized and 
                        uses a process for the selection of 
                        transportation enhancement projects 
                        that involves representatives of 
                        affected public entities, and private 
                        citizens, with expertise related to 
                        transportation enhancement activities.
                            (ii) Limitation on amounts.--
                        Amounts advanced under this 
                        subparagraph shall be limited to such 
                        amounts as are necessary to make prompt 
                        payments for project costs.
                            (iii) Effect on other 
                        requirements.--This subparagraph shall 
                        not exempt a State from other 
                        requirements of this title relating to 
                        the surface transportation program.
            (4) Population determinations.--The Secretary shall 
        use estimates prepared by the Secretary of Commerce 
        when determining population figures for purposes of 
        this section.
            (5) Transportation enhancement activities.--
                    (A) Categorical exclusions.--To the extent 
                appropriate, the Secretary shall develop 
                categorical exclusions from the requirement 
                that an environmental assessment or an 
                environmental impact statement under section 
                102 of the National Environmental Policy Act of 
                1969 (42 U.S.C. 4332) be prepared for 
                transportation enhancement activities funded 
                from the allocation required by subsection 
                (d)(2).
                    (B) Nationwide programmatic agreement.--The 
                Secretary, in consultation with the National 
                Conference of State Historic Preservation 
                Officers and the Advisory Council on Historic 
                Preservation established under title II of the 
                National Historic Preservation Act (16 U.S.C. 
                470i et seq.), shall develop a nationwide 
                programmatic agreement governing the review of 
                transportation enhancement activities funded 
                from the allocation required by subsection 
                (d)(2), in accordance with--
                            (i) section 106 of such Act (16 
                        U.S.C. 470f); and
                            (ii) the regulations of the 
                        Advisory Council on Historic 
                        Preservation.
    (f) Allocation of Obligation Authority.--A State which is 
required to obligate in an urbanized area with an urbanized 
area population of over 200,000 under subsection (d) funds 
apportioned to it under section 104(b)(3) shall allocate during 
the 6-fiscal year period 1992 through 1997 an amount of 
obligation authority distributed to the State for Federal-aid 
highways and highway safety construction for use in such area 
determined by multiplying--
            (1) the aggregate amount of funds which the State 
        is required to obligate in such area under subsection 
        (d) during such period; by
            (2) the ratio of the aggregate amount of obligation 
        authority distributed to the State for Federal-aid 
        highways and highway safety construction during such 
        period to the total sums apportioned to the State for 
        Federal-aid highways and highway safety construction 
        (excluding sums not subject to an obligation 
        limitation) during such period.

Sec.  149. Congestion mitigation and air quality improvement program

  (a)  Establishment.--The Secretary shall establish a 
congestion mitigation and air quality improvement program in 
accordance with this section.
  (b) Eligible Projects.--Except as provided in subsection (c), 
a State may obligate funds apportioned to it under section 
104(b)(2) for the congestion mitigation and air quality 
improvement program only for a transportation project or 
program if the project or program is for an area in the State 
that was designated as a nonattainment area under section 
107(d) of the Clean Air Act (42 U.S.C. 7407(d)) during any part 
of fiscal year 1994 and--
          (1) (A) if the Secretary, after consultation with the 
        Administrator of the Environmental Protection Agency, 
        determines, on the basis of information published by 
        the Environmental Protection Agency pursuant to section 
        108(f)(1)(A) of the Clean Air Act (other than clauses 
        (xii) and (xvi) of such section), that the project or 
        program is likely to contribute to--
                  (i) the attainment of a national ambient air 
                quality standard; or
                  (ii) the maintenance of a national ambient 
                air quality standard in an area that was 
                designated as a nonattainment area but that was 
                later redesignated by the Administrator of the 
                Environmental Protection Agency as an 
                attainment area under section 107(d) of the 
                Clean Air Act (42 U.S.C. 7407(d)); or
          (B) in any case in which such information is not 
        available, if the Secretary, after such consultation, 
        determines that the project or program is part of a 
        program, method, or strategy described in such section;
          (2) if the project or program is included in a State 
        implementation plan that has been approved pursuant to 
        the Clean Air Act and the project will have air quality 
        benefits;
          (3) the Secretary, after consultation with the 
        Administrator of the Environmental Protection Agency, 
        determines that the project or program is likely to 
        contribute to the attainment of a national ambient air 
        quality standard, whether through reductions in vehicle 
        miles traveled, fuel consumption, or through other 
        factors; [or]
          (4) to establish or operate a traffic monitoring, 
        management, and control facility or program if the 
        Secretary, after consultation with the Administrator of 
        the Environmental Protection Agency, determines that 
        the facility or program is likely to contribute to the 
        attainment of a national ambient air quality 
        [standard.] standard; or
            (5) if the project or program will have air quality 
        benefits through construction of and operational 
        improvements for intercity passenger rail facilities, 
        operation of intercity passenger rail trains, and 
        acquisition of rolling stock for intercity passenger 
        rail service, except that not more than 50 percent of 
        the amount received by a State for a fiscal year under 
        this paragraph may be obligated for operating support.
No funds may be provided under this section for a project which 
will result in the construction of new capacity available to 
single occupant vehicles unless the project consists of a high 
occupancy vehicle facility available to single occupant 
vehicles only at other than peak travel times. In areas of a 
State which are nonattainment for ozone or carbon monoxide, or 
both, and for PM-10 resulting from transportation activities, 
the State may obligate such funds for any project or program 
under paragraph (1) or (2) without regard to any limitation of 
the Department of Transportation relating to the type of 
ambient air quality standard such project or program addresses.
  (c) States Without a Nonattainment Area.--If a State does not 
have a nonattainment area for ozone or carbon monoxide under 
the Clean Air Act located within its borders, the State may use 
funds apportioned to it under section 104(b)(2) for any project 
eligible for assistance under the surface transportation 
program.
  (d) Applicability of Planning Requirements.--Programming and 
expenditure of funds for projects under this section shall be 
consistent with the requirements of sections 134 and 135 of 
this title.
          * * * * * * *

                          TITLE 45--RAILROADS

[Sec.  1111. Northeast Corridor cost dispute

  [(a) Determination of Costing Methodology.--
          [(1) Within 120 days after the effective date of this 
        subtitle, the Commission shall determine an appropriate 
        costing methodology for compensation to Amtrak for the 
        right-of-way related costs for the operation of 
        commuter rail passenger service over the Northeast 
        Corridor and other properties owned by Amtrak, unless 
        Conrail, Amtrak, and affected commuter authorities have 
        otherwise agreed on such a methodology by that date. In 
        making its determination, the Commission shall consider 
        all relevant factors, including the standards of 
        sections 205(d) and 304(c) of the Regional Rail 
        Reorganization Act of 1973, section 701(a)(6) of the 
        Railroad Revitalization and Regulatory Reform Act of 
        1976, and section 402(a) of the Rail Passenger Service 
        Act.
          [(2) The Commission, in making such a determination, 
        shall consider all relevant factors, and shall not 
        permit cross subsidization between intercity rail 
        passenger service and commuter rail passenger service.
  [(b) Effective Date of Determination or Agreement.--Any 
determination by the Commission under this section shall be 
effective on the date of such determination, and any agreement 
of the parties under this section shall be effective on the 
date specified in such agreement. Any such determination or 
agreement shall not apply to any compensation paid to Amtrak 
prior to the date of such determination or the date so 
specified, as the case may be, for the right-of-way related 
costs described in subsection (a) of this section.
  [(c) Agreement Subsequent to Determination.--Nothing in this 
section shall preclude parties from entering into an agreement, 
after the determination of the Commission or their initial 
agreement under this section, with respect to the right-of-way 
related costs described in subsection (a) of this section.
  [(d) Finality of Determination.--Any determination by the 
Commission under this section shall be final and shall not be 
reviewable in any court.]
          * * * * * * *

                        TITLE 49--TRANSPORTATION

Sec. 24101. Findings, purpose, and goals

  (a) Findings.--
          (1) Public convenience and necessity require that 
        Amtrak, to the extent its budget allows, provide 
        modern, cost-efficient, and energy-efficient intercity 
        rail passenger transportation between crowded urban 
        areas and in other areas of the United States.
          (2) Rail passenger transportation can help alleviate 
        overcrowding of airways and airports and on highways.
          (3) A traveler in the United States should have the 
        greatest possible choice of transportation most 
        convenient to the needs of the traveler.
          (4) A greater degree of cooperation is necessary 
        among Amtrak, other rail carriers, State, regional, and 
        local governments, the private sector, labor 
        organizations, and suppliers of services and equipment 
        to Amtrak to achieve a performance level sufficient to 
        justify expending public money.
          (5) Modern and efficient commuter rail passenger 
        transportation is important to the viability and well-
        being of major urban areas and to the energy 
        conservation and self-sufficiency goals of the United 
        States.
          (6) As a rail passenger transportation entity, Amtrak 
        should be available to operate commuter rail passenger 
        transportation through its subsidiary, Amtrak Commuter, 
        under contract with commuter authorities that do not 
        provide the transportation themselves as part of the 
        governmental function of the State.
          (7) The Northeast Corridor is a valuable resource of 
        the United States used by intercity and commuter rail 
        passenger transportation and freight transportation.
          (8) Greater coordination between intercity and 
        commuter rail passenger transportation is required.
  (b) Purpose.--By using innovative operating and marketing 
concepts, Amtrak shall provide intercity and commuter rail 
passenger transportation that completely develops the potential 
of modern rail transportation to meet the intercity and 
commuter passenger transportation needs of the United States.
  (c) Goals.--Amtrak shall--
          (1) use its best business judgment in acting to 
        minimize United States Government subsidies, 
        including--
                  (A) increasing fares;
                  (B) increasing revenue from the 
                transportation of mail and express;
                  (C) reducing losses on food service;
                  (D) improving its contracts with operating 
                rail carriers;
                  (E) reducing management costs; and
                  (F) increasing employee productivity;
          (2) minimize Government subsidies by encouraging 
        State, regional, and local governments and the private 
        [sector] sector, separately or in combination, to share 
        the cost of providing rail passenger transportation, 
        including the cost of operating facilities;
          (3) carry out strategies to achieve immediately 
        maximum productivity and efficiency consistent with 
        safe and efficient transportation;
          (4) operate Amtrak trains, to the maximum extent 
        feasible, to all station stops within 15 minutes of the 
        time established in public timetables;
          (5) develop transportation on rail corridors 
        subsidized by States and private parties;
          (6) implement schedules based on a systemwide average 
        speed of at least 60 miles an hour that can be achieved 
        with a degree of reliability and passenger comfort;
          (7) encourage rail carriers to assist in improving 
        intercity rail passenger transportation;
          (8) improve generally the performance of Amtrak 
        through comprehensive and systematic operational 
        programs and employee incentives;
          (9) carry out policies that ensure equitable access 
        to the Northeast Corridor by intercity and commuter 
        rail passenger transportation;
          (12) coordinate the uses of the Northeast Corridor, 
        particularly intercity and commuter rail passenger 
        transportation; and
          (13) maximize the use of its resources, including the 
        most cost-effective use of employees, facilities, and 
        real property.
  (d) Minimizing Government Subsidies.--To carry out subsection 
(c)(11) of this section, Amtrak is encouraged to make 
agreements with the private sector and undertake initiatives 
that are consistent with good business judgment and designed to 
maximize its revenues and minimize Government subsidies. Amtrak 
shall prepare a financial plan to operate within the funding 
levels authorized by section 24104 of this chapter, including 
budgetary goals for fiscal years 1998 through 2002. Commencing 
no later than the fiscal year following the fifth anniversary 
of the Amtrak Reform and Accountability Act of 1997, Amtrak 
shall operate without Federal operating grant funds 
appropriated for its benefit.

Sec. 24102. Definitions

  In this part--
          (1) ``auto-ferry transportation'' means intercity 
        rail passenger transportation--
                  (A) of automobiles or recreational vehicles 
                and their occupants; and
                  (B) when space is available, of used 
                unoccupied vehicles.
          [(2) ``avoidable loss'' means the avoidable costs of 
        providing rail passenger transportation, less revenue 
        attributable to the transportation, as determined by 
        the Interstate Commerce Commission under section 553 of 
        title 5.]
          [3] (2) ``basic system'' means the system of 
        intercity rail passenger transportation designated by 
        the Secretary of Transportation under section 4 of the 
        Amtrak Improvement Act of 1978 and approved by 
        Congress, and transportation required to be provided 
        under section 24705(a) of this title and section 4(g) 
        of the Act, including changes in the system or 
        transportation that Amtrak makes using the route and 
        service criteria.
          [4] (3) ``commuter authority'' means a State, local, 
        or regional entity established provide, or make a 
        contract providing for, commuter rail passenger 
        transportation.
          [5] (4) ``commuter rail passenger transportation'' 
        means short-haul rail passenger transportation in 
        metropolitan and suburban areas usually having reduced 
        fare, multiple-ride, and commuter tickets and morning 
        and evening peak period operations.
          [6] (5) ``intercity rail passenger transportation'' 
        means rail passenger transportation, except commuter 
        rail passenger transportation.
          [7] (6) ``Northeast Corridor'' means Connecticut, 
        Delaware, the District of Columbia, Maryland, 
        Massachusetts, New Jersey, New York, Pennsylvania, and 
        Rhode Island.
          [8] (7) ``rail carrier'' means a [person] person, 
        including a unit of State or local government, 
        providing rail transportation for compensation.
          [(9)] (8) ``rate'' means a rate, fare, or charge for 
        rail transportation.
          [(10)] (9) ``regional transportation authority'' 
        means an entity established provide passenger 
        transportation in a region.
          [(11)  ``route and service criteria'' means the 
        criteria and procedures for making route and service 
        decisions established under section 404(c)(1)-(3)(A) of 
        the Rail Passenger Service Act.]

Sec. 24104. Authorization of appropriations

  [(a) Capital Acquisition and Corridor Development.--
          [(1) Not more than $250,000,000 may be appropriated 
        to the Secretary of transportation for each of the 
        fiscal years ending September 30, 1993, and September 
        30, 1994, for the benefit of Amtrak to make capital 
        expenditures under chapters 243--247 of this title.
          [(2) In addition to amounts that may be appropriated 
        under section 24909 of this title, not more than the 
        following amounts may be appropriated to the secretary 
        for the benefit of Amtrak to make capital expenditures 
        under chapter249 of this title:
                  [(A) $220,000,000 for the fiscal year ending 
                September 30, 1993.
                  [(B) $250,000,000 for the fiscal year ending 
                September 30, 1994.
          [(3) (A) Not more than 15 percent of each of the 
        amounts appropriated under paragraphs (1) and (2) of 
        this subsection is available for transportation 
        described in subparagraphs (B) and (C) of this 
        paragraph.
                  [(B) Amounts made available under 
                subparagraph (A) of this paragraph shall be 
                used to develop new intercity rail passenger 
                transportation on corridors between cities 
                undergoing significant population growth and in 
                which the transportation reasonably can be 
                expected to provide travel times comparable 
                with other surface transportation modes. An 
                amount may be expended for the transportation 
                only if a State requests the transportation and 
                the State and Amtrak agree that--
                          [(i) Amtrak will pay at least 90 
                        percent of the cost of acquiring 
                        rolling stock for the transportation; 
                        and
                          [(ii) the State will pay at least 90 
                        percent of the cost of improving the 
                        right of way, including track 
                        structure, signal systems, passenger 
                        station facilities, highway and 
                        pedestrian grade crossings, and other 
                        safety equipment and facilities.
                  [(C) Amounts made available under 
                subparagraph (A) of this paragraph shall be 
                used to begin new long distance intercity rail 
                passenger transportation. An amount may be 
                expended for the transportation only if a State 
                requests the transportation and the State and 
                Amtrak agree that--
                          [(i) Amtrak will pay at least 75 
                        percent of the cost of acquiring 
                        rolling stock for the transportation; 
                        and
                          [(ii) the State will pay at least 90 
                        percent of the cost of improving the 
                        right of way, including track 
                        structure, signal systems, passenger 
                        station facilities, highway and 
                        pedestrian grade crossings, and other 
                        safety equipment and facilities.
                  [(D) Section 24704 of this title applies to 
                the operating expenses of transportation 
                described in subparagraphs (B) and (C) of this 
                paragraph.]
  (a) In General.--There are authorized to be appropriated to 
the Secretary of Transportation--
          (1) $1,138,000,000 for fiscal year 1998;
          (2) $1,058,000,000 for fiscal year 1999;
          (3) $1,023,000,000 for fiscal year 2000;
          (4) $989,000,000 for fiscal year 2001; and
          (5) $955,000,000 for fiscal year 2002,
for the benefit of Amtrak for capital expenditures under 
chapters 243 and 247 of this title, operating expenses, and 
payments described in subsection (c)(1)(A) through (C). In 
fiscal years following the fifth anniversary of the enactment 
of the Amtrak Reform and Accountability Act of 1997 no funds 
authorized for Amtrak shall be used for operating expenses 
other than those prescribed for tax liabilities under section 
3221 of the Internal Revenue Code of 1986 that are more than 
the amount needed for benefits of individuals who retire from 
Amtrak and for their beneficiaries.
  (b) Operating Expenses.--
          (1) Not more than $381,000,000 may be appropriated to 
        the Secretary for each of the fiscal years ending 
        September 30, 1993, and September 30, 1994, for the 
        benefit of Amtrak for operating expenses. Not more than 
        5 percent of the amounts appropriated for each fiscal 
        year shall be used to pay operating expenses under 
        section 24704 of this title for transportation in 
        operation on September 30, 1992.
          (2) (A) Not more than the following amounts may be 
        appropriated to the secretary for the benefit of Amtrak 
        for operating losses under section 24704 of this title 
        for transportation beginning after September 30, 1992:
                  (i) $7,500,000 for the fiscal year ending 
                September 30, 1993.
                  (ii) $9,500,000 for the fiscal year ending 
                September 30, 1994.
          (B) The expenditure by Amtrak of an amount 
        appropriated under subparagraph (A) of this paragraph 
        is deemed not to be an operating expense when 
        calculating the revenue-to-operating expense ratio of 
        Amtrak.
  (c) Mandatory Payments.--
          (1) Not more than $150,000,000 for the fiscal year 
        ending September 30, 1993, and amounts that may be 
        necessary for the fiscal year ending September 30, 
        1994, may be appropriated to the Secretary to pay--
                  (A) tax liabilities under section 3221 of the 
                Internal Revenue Code of 1986(26 U.S.C. 3221) 
                due in those fiscal years that are more than 
                the amount needed for benefits for individuals 
                who retire from Amtrak and for their 
                beneficiaries;
                  (B) obligations of Amtrak under section 8(a) 
                of the Railroad Unemployment Insurance Act (45 
                U.S.C. 358(a)) due in those fiscal years that 
                are more than obligations of Amtrak calculated 
                on an experience-related basis; and
                  (C) obligations of Amtrak due under section 
                3321 of the Code (26 U.S.C. 3321).
          (2) Amounts appropriated under this subsection are 
        not a United States government subsidy of Amtrak.
  (d) Payment to Amtrak.--Amounts appropriated under this 
section shall be paid to Amtrak under the budget request of the 
Secretary as approved or modified congress when the amounts are 
appropriated. A payment may not be made more frequently than 
once every 90 days, unless Amtrak, for good cause, requests 
more frequent payment before a 90-day period ends. In each 
fiscal year in which amounts are authorized to be appropriated 
under this section, amounts appropriated shall be paid to 
Amtrak as follows:
          (1) 50 percent on October 1.
          (2) 25 percent on January 1.
          (3) 25 percent on April 1.
  (e) Availability of Amounts and Early Appropriations.--
          (1) Amounts appropriated under this section remain 
        available until expended.
          (2) Amounts for capital acquisitions and improvements 
        may be appropriated in a fiscal year before the fiscal 
        year in which the amounts will be obligated.
  (f) Limitations on Use.--Amounts appropriated under this 
section may not be used to subsidize operating losses of 
commuter rail passenger or rail freight transportation.

Sec.  24301. Status and applicable laws

  (a) Status.--Amtrak--
          (1) is a [rail carrier under section 10102] railroad 
        carrier under section 20102(2) and chapters 261 and 281 
        of this title;
          (2) shall be operated and managed as a for-profit 
        corporation; and
          (3) is not a department, agency, or instrumentality 
        of the United States Government.
      (b) Principal Office and Place of Business.--The 
principal office and place of business of Amtrak are in the 
District of Columbia. Amtrak is qualified to do business in 
each State in which Amtrak carries out an activity authorized 
under this part. Amtrak shall accept service of process by 
certified mail addressed to the secretary of Amtrak at its 
principal office and place of business. Amtrak is a citizen 
only of the District of Columbia when deciding original 
jurisdiction of the district courts of the United States in a 
civil action.
  [(c) Application of Subtitle IV.--
          [(1) Subtitle IV of this title applies to Amtrak, 
        except for provisions related to the--
                  [(A) regulation of rates;
                  [(B) abandonment or extension of rail lines 
                used only for passenger transportation and the 
                abandonment or extension of operations over 
                those lines;
                  [(C) regulation of routes and service;
                  [(D) discontinuance or change of rail 
                passenger transportation operations; and
                  [(E) issuance of securities or the assumption 
                of an obligation or liability related to the 
                securities of others.
          [(2) Notwithstanding this subsection--
                  [(A) sections 10721-10724 of this title apply 
                to Amtrak; and
                  [(B) on application of an adversely affected 
                motor carrier, the Interstate Commerce 
                Commission under any provision of subtitle IV 
                of this title applicable to a carrier subject 
                to subchapter I of chapter 105 of this title 
                may hear a complaint about an unfair or 
                predatory rate or marketing practice of Amtrak 
                for a route or service operating at a loss.]
  (c) Application of Subtitle IV.--Subtitle IV of this title 
shall not apply to Amtrak, except for sections 11301, 11322, 
11502(a) and (d), and 11706. Notwithstanding the preceding 
sentence, Amtrak shall continue to be considered an employer 
under the Railroad Retirement Act of 1974, the Railroad 
Unemployment Insurance Act, and the Railroad Retirement Tax 
Act.
  (d) Application of Safety and Employee Relations Laws and 
Regulations.--Laws and regulations governing safety, employee 
representation for collective bargaining purposes, the handling 
of disputes between carriers and employees, employee 
retirement, annuity, and unemployment systems, and other 
dealings with employees that apply to a common carrier subject 
to subchapter I of chapter 105 of this title apply to Amtrak.
  (e) Application of Certain Additional Laws.--Section 552 of 
title 5, this part, and, to the extent consistent with this 
part, the District of Columbia Business Corporation Act (D.C. 
Code Sec. 29--301 et seq.) apply to Amtrak. Section 552 of 
title 5, United States Code, applies to Amtrak for any fiscal 
year in which Amtrak receives a Federal subsidy.
  [(f) Laws Governing Leases and Contracts.--The laws of the 
District of Columbia govern leases and contracts of Amtrak, 
regardless of where they are executed.]
  (f) Tax Exemption for Certain Commuter Authorities.--A 
commuter authority that was eligible to make a contract with 
Amtrak Commuter to provide commuter rail passenger 
transportation but which decided to provide its own rail 
passenger transportation beginning January 1, 1983, is exempt, 
effective October 1, 1981, from paying a tax or fee to the same 
extent Amtrak is exempt.
  (g) Nonapplication of Rate, Route, and Service Laws.--A State 
or other law related to rates, routes, or service does not 
apply to Amtrak in connection with rail passenger 
transportation.
  (h) Nonapplication of Pay Period Laws.--A State or local law 
related to pay periods or days for payment of employees does 
not apply to Amtrak. Except when otherwise provided under a 
collective bargaining agreement, an employee of Amtrak shall be 
paid at least as frequently as the employee was paid on October 
1, 1979.
  (i) Preemption Related to Employee Work Requirements.--A 
State may not adapt or continue in force a law, rule, 
regulation, order, or standard requiring Amtrak to employ a 
specified number of individuals to perform a particular task, 
function, or operation.
  (j) Nonapplication of Laws on Joint Use or Operation of 
Facilities and Equipment.--Prohibitions of law applicable to an 
agreement for the joint use or operation of facilities and 
equipment necessary to provide quick and efficient rail 
passenger transportation do not apply to a person making an 
agreement with Amtrak to the extent necessary to allow the 
person to make and carry out obligations under the agreement.
  (k) Exemption From Additional Taxes.--
          (1) In this subsection--
                  (A) ``additional tax'' means a tax or fee--
                          (i) on the acquisition, improvement, 
                        ownership, or operation of personal 
                        property by Amtrak; and
                          (ii) on real property, except a tax 
                        or fee on the acquisition of real 
                        property or on the value of real 
                        property not attributable to 
                        improvements made, or the operation of 
                        those improvements, by Amtrak.
                  (B) ``Amtrak'' includes a rail carrier 
                subsidiary of Amtrak and a lessor or lessee of 
                Amtrak or one of its rail carrier subsidiaries.
          (2) Amtrak is not required to pay an additional tax 
        because of an expenditure to acquire or improve real 
        property, equipment, a facility, or right-of-way 
        material or structures used in providing rail passenger 
        transportation, even if that use is indirect.
  (l) Exemption From Taxes Levied After September 30, 1981.--
[(1) Amtrak or a rail carrier subsidiary of Amtrak is]
          (1) In general._Amtrak, a rail carrier subsidiary of 
        Amtrak, and any passenger or other customer of Amtrak 
        or such subsidiary, are exempt from a [tax or fee 
        imposed by a State, a political subdivision of a State, 
        or a local taxing authority and levied on it] tax, fee, 
        head charge, or other charge, imposed or levied by a 
        State, political subdivision, or local taxing 
        authority, directly or indirectly on Amtrak, a rail 
        carrier subsidiary of Amtrak, or on persons traveling 
        in intercity rail passenger transportation or on mail 
        or express transportation provided by Amtrak or such a 
        subsidiary, or on the carriage of such persons, mail, 
        or express, or on the sale of any such transportation, 
        or on the gross receipts derived therefrom after 
        September 30, 1981. [However, Amtrak is not exempt 
        under this subsection from a tax or fee that it was 
        required to pay as of September 10, 1982.] 
          (2) Phase-in of exemption for certain existing taxes 
        and fees.--
                  (A) Years before 2000.--Notwithstanding 
                paragraph (1), Amtrak is exempt from a tax or 
                fee referred to in paragraph (1) that Amtrak 
                was required to pay as of September 10, 1982, 
                during calendar years 1997 through 1999, only 
                to the extent specified in the following table:

                                              Phase-in of Exemption                                             
                                                                                                                
                     Year of assessment                                    Percentage of exemption              
                                                                                                                
1997...................................................                                                40       
1998...................................................                                                60       
1999...................................................                                                80       
2000 and later years...................................                                               100       
                                                                                                                

          (B) Taxes assessed after march, 1999.--Amtrak shall 
        be exempt from any tax or fee referred to in 
        subparagraph (A) that is assessed on or after April 1, 
        1999.
          [(2) The] (3) Jurisdiction of united states district 
        courts.--The district courts of the United States have 
        original jurisdiction over a civil action Amtrak brings 
        to enforce this subsection and may grant equitable or 
        declaratory relief requested by Amtrak.
  (m) Waste Disposal.--
          (1) An intercity rail passenger car manufactured 
        after October 14, 1990, hall be built to provide for 
        the discharge of human waste only at a servicing 
        facility. Amtrak shall retrofit each of its intercity 
        rail passenger cars that was manufactured after May 1, 
        1971, and before October 15, 1990, with a human waste 
        disposal system that provides for the discharge of 
        human waste only at servicing facility. Subject to 
        appropriations--
                  (A) the retrofit program shall be completed 
                not later than October 15, [1996] 2001; and
                  (B) a car that does not provide for the 
                discharge of human waste only at a servicing 
                facility shall be removed from service after 
                that date.
          (2) Section 361 of the Public Health Service Act (42 
        U.S.C. 264) and other laws of the United States, 
        States, and local governments do not apply to waste 
        disposal from rail carrier vehicles operated in 
        intercity rail passenger transportation. The district 
        courts of the United States have original jurisdiction 
        over a civil action Amtrak brings to enforce this 
        paragraph and may grant equitable or declaratory relief 
        requested by Amtrak.
  (n) Rail Transportation Treated Equally.--When authorizing 
transportation in the continental United States for an officer, 
employee, or member of the uniformed services of a department, 
agency, or instrumentality of the government, the head of that 
department, agency, or instrumentality shall consider rail 
transportation (including transportation by extra-fare trains) 
the same as transportation by another authorized mode. The 
Administrator of General services shall include Amtrak in the 
contract air program of the Administrator in markets in which 
transportation provided by Amtrak is competitive with other 
carriers on fares and total trip times.

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 Secretary of Transportation.
                   (B) the President of Amtrak.
                   (C) [3] 4 individuals appointed by the 
                President of the United States, by and with the 
                advice and consent of the Senate, as follows:
                          [(i) one individual selected from a 
                        list of 3 qualified individuals 
                        submitted by the Railway Labor 
                        Executives Association.
                          [(ii) one chief executive officer of 
                        a State selected from among the chief 
                        executive officers of States with an 
                        interest in rail transportation. The 
                        chief executive officer may select an 
                        individual to act as the officer's 
                        representative at board meetings.]
                          (i) one individual selected as a 
                        representative of rail labor in 
                        consultation with affected labor 
                        organizations.
                          (ii) one chief executive officer of a 
                        State, and one chief executive officer 
                        of a municipality, selected from among 
                        the chief executive officers of State 
                        and municipalities with an interest in 
                        rail transportation, each of whom may 
                        select an individual to act as the 
                        officer's representative at board 
                        meetings.
                           (iii) one individual selected as a 
                        representative of business with an 
                        interest in rail transportation.
                   [(D) 2 individuals selected by the President 
                of the United States from a list of names 
                consisting of one individual nominated by each 
                commuter authority for which Amtrak Commuter 
                provides commuter rail passenger transportation 
                under section 24505 of this title and one 
                individual nominated by each commuter authority 
                in the region (as defined in section 102 of the 
                Regional Rail Reorganization Act of 1973 (45 
                U.S.C. 702)) that provides its own commuter 
                rail passenger transportation or makes a 
                contract with an operator (except Amtrak 
                Commuter), except that--
                           [(i) one of the individuals selected 
                        must have been nominated by a commuter 
                        authority for which Amtrak Commuter 
                        provides commuter rail transportation; 
                        or
                           [(ii) if Amtrak Commuter does not 
                        provide commuter rail passenger 
                        transportation for any authority, the 2 
                        individuals shall be selected from a 
                        list of 5 individuals submitted by 
                        commuter authorities providing 
                        transportation over rail property of 
                        Amtrak.
                   [(E) 2 individuals selected by the holders 
                of the preferred stock of Amtrak.]
                  (D) 3 individuals appointed by the President 
                of the United States, as follows:
                          (i) one individual selected as a 
                        representative of a commuter authority, 
                        (as defined in section 102 of the 
                        Regional Rail Reorganization Act of 
                        1973 (45 U.S.C. 702) that provides its 
                        own commuter rail passenger 
                        transportation or makes a contract with 
                        an operator, in consultation with 
                        affected commuter authorities.
                          (ii) one individual with technical 
                        expertise in finance and accounting 
                        principles.
                          (iii) one individual selected as a 
                        representative of the general public.
          (2) An individual appointed under paragraph (1)(C) of 
        this subsection serves for 4 years or until the 
        individual's successor is appointed and qualified. Not 
        more than 2 individuals appointed under paragraph 
        (1)(C) may be members of the same political party.
          (3) An individual selected under paragraph (1)(D) of 
        this subsection serves for 2 years or until the 
        individual's successor is selected.
          (4) An individual selected under paragraph (1)(E) of 
        this subsection serves for one year or until the 
        individual's successor is selected.
          (5) The President of Amtrak serves as Chairman of the 
        board.
          [(6) The Secretary may be represented at a meeting of 
        the board only by the Deputy Secretary of 
        Transportation, the Administrator of the Federal 
        Railroad Administration, or the General Counsel of the 
        Department of Transportation.]
          (6) The Secretary may be represented at a meeting of 
        the Board by his designate.
  (b) Cumulative Voting.--The articles of incorporation of 
Amtrak shall provide for cumulative voting for all 
stockholders.
  (c) Conflicts of Interest.--When serving on the board, a 
director appointed by the President of the United States may 
not have--
          (1) a financial or employment relationship with a 
        rail carrier; and
          (2) a significant financial relationship or an 
        employment relationship with a person competing with 
        Amtrak in providing passenger transportation.
  (d) 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.
  (e) 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.
  (f) 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.

Sec.  24303. Officers

  (a) Appointment and Terms.--Amtrak has a President and other 
officers that are named and appointed by the board of directors 
of Amtrak. An officer of Amtrak must be a citizen of the United 
States. Officers of Amtrak serve at the pleasure of the board.
  (b) Pay.--The board may fix the pay of the officers of 
Amtrak. An officer may not be paid more than the general level 
of pay for officers of rail carriers with comparable 
responsibility. The preceding sentence shall not apply for any 
fiscal year for which no Federal assistance is provided to 
Amtrak.
  (c) Conflicts of Interest.--When employed by Amtrak, an 
officer may not have financial or employment relationship with 
another rail carrier, except that holding securities issued by 
a rail carrier is not deemed to be a violation of this 
subsection if the officer holding the securities makes a 
complete public disclosure of the holdings and does not 
participate in any decision directly affecting the rail 
carrier.

Sec.  24305. General authority

  (a) Acquisition and Operation of Equipment and Facilities.--
          (1) Amtrak may acquire, operate, maintain, and make 
        contracts for the operation and maintenance of 
        equipment and facilities necessary for intercity and 
        commuter rail passenger transportation, the 
        transportation of mail and express, and auto-ferry 
        transportation.
          (2) Amtrak shall operate and control directly, to the 
        extent practicable, all aspects of the rail passenger 
        transportation it provides.
          (3)(A) Except as provided in subsection (d)(2), 
        Amtrak may enter into a contract with a motor carrier 
        of passengers for the intercity transportation of 
        passengers by motor carrier over regular routes only--
                  (i) if the motor carrier is not a public 
                recipient of governmental assistance, as such 
                term is defined in section 13902(b)(8)(A) of 
                this title, other than a recipient of funds 
                under section 5311 of this title;
                  (ii) for passengers who have had prior 
                movement by rail or will have subsequent 
                movement by rail; and
                  (iii) if the buses, when used in the 
                provision of such transportation, are used 
                exclusively for the transportation of 
                passengers described in clause (ii).
          (B) Subparagraph (A) shall not apply to 
        transportation funded predominantly by a State or local 
        government, or to ticket selling agreements.
  (b) Maintenance and Rehabilitation.--Amtrak may maintain and 
rehabilitate rail passenger equipment and shall maintain a 
regional maintenance plan that includes--
          (1) a review panel at the principal office of Amtrak 
        consisting of members the President of Amtrak 
        designates;
          (2) a system wide inventory of spare equipment parts 
        in each operational region;
          (3) enough maintenance employees for cars and 
        locomotives in each region;
          (4) a systematic preventive maintenance program;
          (5) periodic evaluations of maintenance costs, time 
        lags, and parts shortages and corrective actions; and
          (6) other elements or activities Amtrak considers 
        appropriate.
  (c) Miscellaneous Authority.--Amtrak may--
          (1) make and carry out appropriate agreements;
          (2) transport mail and express and shall use all 
        feasible methods to obtain the bulk mail business of 
        the United States Postal Service;
          (3) improve its reservation system and advertising;
          (4) provide food and beverage services on its trains 
        only if revenues from the services each year at least 
        equal the cost of providing the services;
          (5) conduct research, development, and demonstration 
        programs related to the mission of Amtrak; and
          (6) buy or lease rail rolling stock and develop and 
        demonstrate improved rolling stock.
  (d) Through Routes and Joint Fares.--
          (1) Establishing through routes and joint fares 
        between Amtrak and other intercity rail passenger 
        carriers and motor carriers of passengers is consistent 
        with the public interest and the transportation policy 
        of the United States. Congress encourages establishing 
        those routes and fares.
          (2) Amtrak may establish through routes and joint 
        fares with any domestic or international motor carrier, 
        air carrier, or water carrier.
          (3) Congress encourages Amtrak and motor common 
        carriers of passengers to use the authority conferred 
        in section 11342(a) of this title for the purpose of 
        providing improved service to the public and economy of 
        operation.
  (e) Rail Police.--Amtrak may employ rail police to provide 
security for rail passengers and property of Amtrak. Rail 
police employed by Amtrak who have complied with a State law 
establishing requirements applicable to rail police or 
individuals employed in a similar position may be employed 
without regard to the law of another State containing those 
requirements.
  (f) Domestic Buying Preferences.--
          (1) In this subsection, ``United States'' means the 
        States, territories, and possessions of the United 
        States and the District of Columbia.
          (2) Amtrak shall buy only--
                  (A) unmanufactured articles, material, and 
                supplies mined or produced in the United 
                States; or
                  (B) manufactured articles, material, and 
                supplies manufactured in the United States 
                substantially from articles, material, and 
                supplies mined, produced, or manufactured in 
                the United States.
          (3) Paragraph (2) of this subsection applies only 
        when the cost of those articles, material, or supplies 
        bought is at least $1,000,000.
          (4) On application of Amtrak, the Secretary of 
        Transportation may exempt Amtrak from this subsection 
        if the Secretary decides that--
                  (A) for particular articles, material, or 
                supplies--
                          (i) the requirements of paragraph (2) 
                        of this subsection are inconsistent 
                        with the public interest;
                          (ii) the cost of imposing those 
                        requirements is unreasonable; or
                          (iii) 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; or
                  (B) rolling stock or power train equipment 
                cannot be bought and delivered in the United 
                States within a reasonable time.

Sec. 24306. Mail, express, and auto-ferry transportation

  (a) Actions to Increase Revenues.--Amtrak shall take 
necessary action to increase its revenues from the 
transportation of mail and express. To increase its revenues, 
Amtrak may provide auto-ferry transportation as part of the 
basic passenger transportation authorized by this part. [When 
requested by Amtrak, a department, agency, or instrumentality 
of the United States Government shall assist in carrying out 
this section.]
  (b) Authority of Others to Provide Auto-ferry 
Transportation.--
          [(1) A person primarily providing auto-ferry 
        transportation and any other person not a rail carrier 
        may provide auto-ferry transportation over any route 
        under a certificate issued by the Interstate Commerce 
        Commission if the commission finds that the auto-ferry 
        transportation--
                  [(A) will not impair the ability of Amtrak to 
                reduce its losses or increase its revenues; and
                  [(B) is required to meet the public demand.
          [(2) A rail carrier that has not made a contract with 
        Amtrak to provide rail passenger transportation may 
        provide auto-ferry transportation over its own rail 
        lines.
          [(3) State and local laws and regulations that impair 
        the provision of auto-ferry transportation do not apply 
        to Amtrak or a rail carrier providing auto-ferry 
        transportation. A rail carrier may not refuse to 
        participate with Amtrak in providing auto-ferry 
        transportation because a State or local law or 
        regulation makes the transportation unlawful.]
  (b) Authority of Others to Provide Auto-ferry 
Transportation.--State and local laws and regulations that 
impair the provision of auto-ferry transportation do not apply 
to Amtrak or a rail carrier providing auto-ferry 
transportation. A rail carrier may not refuse to participate 
with Amtrak in providing auto-ferry transportation because a 
State or local law or regulation makes the transportation 
unlawful.

Sec. 24307. Special transportation

  (a) Reduced Fare Program.--Amtrak shall maintain a reduced 
fare program for the following:
          (1) individuals at least 65 years of age.
          (2) individuals (except alcoholics and drug abusers) 
        who--
                  (A) have a physical or mental impairment that 
                substantially limits a major life activity of 
                the individual;
                  (B) have a record of an impairment; or
                  (C) are regarded as having an impairment.
  [(b) Actions to Ensure Access.--Amtrak may act to ensure 
access to intercity transportation for elderly or handicapped 
individuals on passenger trains operated by or for Amtrak. That 
action may include--
          [(1) acquiring special equipment;
          [(2) conducting special training for employees;
          [(3) designing and acquiring new equipment and 
        facilities;
          [(4) eliminating barriers in existing equipment and 
        facilities to comply with the highest standards of 
        design, construction, and alteration of property 
        accommodate elderly and handicapped individuals; and
          [(5) providing special assistance to elderly and 
        handicapped individuals when getting on and off trains 
        and in terminal areas.]
  [(c)] (b) Employee Transportation.--
          (1) In this subsection, ``rail carrier employee'' 
        means--
                  (A) an active full-time employee of a rail 
                carrier or terminal company and includes an 
                employee on furlough or leave of absence;
                  (B) a retired employee of a rail carrier or 
                terminal company; and
                  (C) a dependent of an employee referred to in 
                clause (A) or (B) of this paragraph.
          (2) Amtrak shall ensure that a rail carrier employee 
        eligible for free or reduced-rate rail transportation 
        on April 30, 1971, under an agreement in effect on that 
        date is eligible, to the greatest extent practicable, 
        for free or reduced-rate intercity rail passenger 
        transportation provided by Amtrak under this part, if 
        space is available, on terms similar to those available 
        on that date under the agreement. However, Amtrak may 
        apply to all rail carrier employees eligible to receive 
        free or reduced-rate transportation under any agreement 
        a single system wide schedule of terms that Amtrak 
        decides applied to a majority of employees on that date 
        under all those agreements. Unless Amtrak and a rail 
        carrier make a different agreement, the carrier shall 
        reimburse Amtrak at the rate of 25 percent of the 
        system wide average monthly yield of each revenue 
        passenger-mile. The reimbursement is in place of costs 
        Amtrak incurs related to free or reduced-rate 
        transportation, including liability related to travel 
        of a rail carrier employee eligible for free or 
        reduced-rate transportation.
          (3) This subsection does not prohibit the Interstate 
        Commerce Commission from ordering retroactive relief in 
        a proceeding begun or reopened after October 1, 1981.

Sec. 24309. Retaining and maintaining facilities

  (a) Definitions.--In this section--
          (1) ``facility'' means a rail line, right of way, 
        fixed equipment, facility, or real property related to 
        a rail line, right of way, fixed equipment, or 
        facility, including a signal system, passenger station 
        and repair tracks, a station building, a platform, and 
        a related facility, including a water, fuel, steam, 
        electric, and air line.
          (2) downgrading a facility means reducing a track 
        classification as specified in the Federal Railroad 
        Administration track safety standards or altering a 
        facility so that the time required for rail passenger 
        transportation to be provided over the route on which a 
        facility is located may be increased.
  (b) Approval Required for Downgrading or Disposal.--A 
facility of a rail carrier or regional transportation authority 
that Amtrak used to provide rail passenger transportation on 
February 1, 1979, or on January 1, 1997, may be downgraded or 
disposed of only after approval by the Secretary of 
Transportation under this section.
  (c) Notification and Analysis.--
          (1) A rail carrier intending to downgrade or dispose 
        of a facility Amtrak currently is not using to provide 
        transportation shall notify Amtrak of its intention. 
        If, not later than 60 days after Amtrak receives the 
        notice, Amtrak and the carrier do not agree to retain 
        or maintain the facility or to convey an interest in 
        the facility to Amtrak, the carrier may apply to the 
        Secretary for approval to downgrade or dispose of the 
        facility.
          (2) After a rail carrier notifies Amtrak of its 
        intention to downgrade or dispose of a facility, Amtrak 
        shall survey population centers with rail passenger 
        transportation facilities to assist in preparing a 
        valid and timely analysis of the need for the facility 
        and shall update the survey as appropriate. Amtrak also 
        shall maintain a system for collecting information 
        gathered in the survey. The system shall collect the 
        information based on geographic regions and on whether 
        the facility would be part of a short haul or long haul 
        route. The survey should facilitate an analysis of--
                   (A) ridership potential by ascertaining 
                existing and changing travel patterns that 
                would provide maximum efficient rail passenger 
                transportation;
                   (B) the quality of transportation of 
                competitors or likely competitors;
                   (C) the likelihood of Amtrak offering 
                transportation at a competitive fare;
                   (D) opportunities to target advertising and 
                fares to potential classes of riders;
                   (E) economic characteristics of rail 
                passenger transportation related to the 
                facility and the extent to which the 
                characteristics are consistent with sound 
                economic principles of short haul or long haul 
                rail transportation; and
                   (F) the feasibility of applying effective 
                internal cost controls to the facility and 
                route served by the facility to improve the 
                ratio of passenger revenue to transportation 
                expenses (excluding maintenance of tracks, 
                structures, and equipment and depreciation).
  (d) Approval of Application and Payment of Avoidable Costs.--
          (1) If Amtrak does not object to an application not 
        later than 30 days after it is submitted, the Secretary 
        shall approve the application promptly.
          (2) If Amtrak objects to an application, the 
        Secretary shall decide by not later than 180 days after 
        the objection those costs the rail carrier may avoid if 
        it does not have to retain or maintain a facility in 
        the condition Amtrak requests. If Amtrak does not agree 
        by not later than 60 days after the decision to pay the 
        carrier these avoidable costs, the Secretary shall 
        approve the application. When deciding whether to pay a 
        carrier the avoidable costs of retaining or maintaining 
        a facility, Amtrak shall consider--
                   (A) the potential importance of restoring 
                rail passenger transportation on the route on 
                which the facility is located;
                   (B) the market potential of the route;
                   (C) the availability, adequacy, and energy 
                efficiency of an alternate rail line or 
                alternate mode of transportation to provide 
                passenger transportation to or near the places 
                that would be served by the route;
                   (D) the extent to which major population 
                centers would be served by the route;
                   (E) the extent to which providing 
                transportation over the route would encourage 
                the expansion of an intercity rail passenger 
                system in the United States; and
                   (F) the possibility of increased ridership 
                on a rail line that connects with the route.
  (e) Compliance with Other Obligations.--Downgrading or 
disposing of a facility under this section does not relieve a 
rail carrier from complying with its other common carrier or 
legal obligations related to the facility.

[Sec.  24310. Assistance for upgrading facilities

  [(a) To Correct Dangerous Conditions.--
          [(1) Amtrak or the owner of a facility presenting a 
        danger to the employees, passengers, or property of 
        Amtrak may petition the Secretary of Transportation for 
        assistance to the owner for relocation or other 
        measures undertaken after December 31, 1977, to 
        minimize or eliminate the danger.
          [(2) The Secretary shall recommend to Congress that 
        Congress authorize amounts for the relocation or other 
        measures if the Secretary decides that--
                  [(A) the facility presents a danger of death 
                or serious injury to an employee or passenger 
                or of serious damage to that property; and
                  [(B) the owner should not be expected to bear 
                the cost of that relocation or other measures.
  [(b) To Correct State and Local Violations.--
          [(1) Amtrak, by itself or jointly with an owner or 
        operator of a rail station Amtrak uses to provide rail 
        passenger transportation, may apply to the Secretary 
        for amounts that may be appropriated under paragraph 
        (2) of this subsection to pay or reimburse expenses 
        incurred after October 1, 1987, related to the station 
        complying with an official notice received before 
        October 1, 1987, from a State or local authority 
        stating that the station violates or allegedly violates 
        the building, construction, fire, electric, sanitation, 
        mechanical, or plumbing code.
          [(2) Not more than $1,000,000, may be appropriated to 
        the Secretary to carry out paragraph (1) of this 
        subsection. Amounts appropriated under this paragraph 
        remain available until expended.]

                       SUBTITLE V--RAIL PROGRAMS

                    Part C. Passenger Transportation

                          Chapter 243. AMTRAK

Sec.  24312. Labor standards

  (a) Prevailing Wages and Health and Safety Standards.--[(1)] 
Amtrak shall ensure that laborers and mechanics employed by 
contractors and subcontractors in construction work financed 
under an agreement made under section 24308(a)[, 24701(a),] or 
24704(b)(2) of this title will be paid wages not less than 
those prevailing on similar construction in the locality, as 
determined by the Secretary of Labor under the Act of March 3, 
1931 (known as the Davis-Bacon Act) (40 U.S.C. 276a--276a-5). 
Amtrak may make such an agreement only after being assured that 
required labor standards will be maintained on the construction 
work. Health and safety standards prescribed by the Secretary 
under section 107 of the Contract Work Hours and Safety 
Standards Act (40 U.S.C. 333) apply to all construction work 
performed under such an agreement, except for construction work 
performed by a rail carrier.
  [(2)] (b) Wage rates in a collective bargaining agreement 
negotiated under the Railway Labor Act (45 U.S.C. 151 et seq.) 
are deemed to comply with the Act of March 3, 1931 (known as 
the Davis-Bacon Act) (40 U.S.C. 276a 276a-5).
  [(b) Contracting Out.--
          [(1) Amtrak may not contract out work normally 
        performed by an employee in a bargaining unit covered 
        by a contract between a labor organization and Amtrak 
        or a rail carrier that provided intercity rail 
        passenger transportation on October 30, 1970, if 
        contracting out results in the layoff of an employee in 
        the bargaining unit.
          [(2) This subsection does not apply to food and 
        beverage services provided on trains of Amtrak.]

[Sec.  24314. Demonstration of new technology

  [(a) Plan.--Amtrak shall develop a plan for demonstrating new 
technology in rail passenger equipment. The plan shall provide 
that new equipment that Amtrak procures that may increase train 
speed significantly over existing rail facilities shall be 
demonstrated, to the extent practicable, throughout the 
intercity rail passenger system.
  [(b) Report.--Not later than September 30, 1993, Amtrak shall 
submit to the committee on Energy and Commerce of the House of 
Representatives and the committee on Commerce, Science, and 
Transportation of the Senate a report summarizing the plan 
developed under subsection (a) of this section, including its 
goals, locations for technology demonstration, and a schedule 
for carrying out the plan.
  [(c) Cooperation.--To make efforts to increase train speed 
throughout the intercity rail passenger system easier, Amtrak 
shall consult and cooperate, to the extent feasible, on request 
of eligible applicants proposing a technology demonstration 
authorized and financed under a law of the United States, with 
those applicants.]

Sec.  24315. Reports and audits

  (a) Amtrak Annual Operations Report.--Not later than February 
15 of each year, Amtrak shall submit to Congress a report 
that--
          (1) for each route on which Amtrak provided intercity 
        rail passenger transportation during the prior fiscal 
        year, includes information on--
                  (A) ridership;
                  (B) passenger-miles;
                  (C) the short-term avoidable profit or loss 
                for each passenger-mile;
                  (D) the revenue-to-cost ratio;
                  (E) revenues;
                  (F) the United States Government subsidy;
                  (G) the subsidy not provided by the United 
                States Government; and
                  (H) on-time performance;
          (2) provides relevant information about a decision to 
        pay an officer of Amtrak more than the rate for level I 
        of the Executive Schedule under section 5312 of title 
        5; and
          (3) specifies--
                  (A) significant operational problems Amtrak 
                identifies; and
                  (B) proposals by Amtrak to solve those 
                problems.
  (b) Amtrak General and Legislative Annual Report.--
          (1) Not later than February 15 of each year, Amtrak 
        shall submit to the president and Congress a complete 
        report of its operations, activities, and 
        accomplishments, including a statement of revenues and 
        expenditures for the prior fiscal year. The report--
                  (A) shall include a discussion and accounting 
                of Amtrak's success in meeting the goal of 
                section 24902(b) of this title; and
                  (B) may include recommendations for 
                legislation, including the amount of financial 
                assistance needed for operations and capital 
                improvements, the method of computing the 
                assistance, and the sources of the assistance.
          (2) Amtrak may submit reports to the President and 
        Congress at other times Amtrak considers desirable.
  (c) Secretary's Report on Effectiveness of this Part.--The 
Secretary of Transportation shall prepare a report on the 
effectiveness of this part in meeting the requirements for a 
balanced transportation system in the United States. The report 
may include recommendations for legislation. The Secretary 
shall include this report as part of the annual report the 
Secretary submits under section 308 (a) of this title.
  (d) Independent Audits.--An independent certified public 
accountant shall audit the financial statements of Amtrak each 
year. The audit shall be carried out at the place at which the 
financial statements normally are kept and under generally 
accepted auditing standards. A report of the audit shall be 
included in the report required by subsection (a) of this 
section.
  (e) Comptroller General Audits.--The Comptroller General may 
conduct performance audits of the activities and transactions 
of Amtrak. Each audit shall be conducted at the place at which 
the Comptroller General decides and under generally accepted 
management principles. The Comptroller General may prescribe 
regulations governing the audit.
  (f) Availability of Records and Property of Amtrak and Rail 
Carriers.--Amtrak and, if required by the Comptroller General, 
a rail carrier with which Amtrak has made a contract for 
intercity rail passenger transportation shall make available 
for an audit under subsection (d) or (e) of this section all 
records and property of, or used by, Amtrak or the carrier that 
are necessary for the audit. Amtrak and the carrier shall 
provide facilities for verifying transactions with the balances 
or securities held by depositories, fiscal agents, and 
custodians. Amtrak and the carrier may keep all reports and 
property.
  (g) Comptroller General's Report to Congress.--The 
Comptroller General shall submit to Congress a report on each 
audit,giving comments and information necessary to inform 
Congress on the financial operations and condition of Amtrak and 
recommendations related to those operations and conditions. The report 
also shall specify any financial transaction or undertaking the 
Comptroller General considers is carried out without authority of law. 
When the Comptroller General submits a report to Congress, the 
Comptroller General shall submit a copy of it to the President, the 
Secretary, and Amtrak at the same time.
  (h) Access to Records and Accounts.--A State shall have 
access to Amtrak's records, accounts, and other necessary 
documents used to determine the amount of any payment to Amtrak 
required of the State.

                     [Chapter 245--Amtrak Commuter

[Sec.
[24501. Status and applicable laws.
[24502. Board of directors.
[24503. Officers.
[24504. General authority.
[24505. Commuter rail passenger transportation.
[24506. Certain duties and powers unaffected.

[Sec. 24501. Status and applicable laws

  [(a) Status.--Amtrak Commuter--
          [(1) is a wholly-owned subsidiary of Amtrak;
          [(2) provides by contract commuter rail passenger 
        transportation for a commuter authority with which 
        Amtrak Commuter makes a contract to provide the 
        transportation under this chapter;
          [(3) has no common carrier obligations to provide 
        rail passenger or rail freight transportation; and
          [(4) is not a department, agency, or instrumentality 
        of the United States Government.
  [(b) Application of Safety and Employee Relations Laws and 
Regulations.--Chapter 105 of this title does not apply to 
Amtrak Commuter. However, laws and regulations governing 
safety, employee representation for collective bargaining 
purposes, the handling of disputes between carriers and 
employees, employee retirement, annuity, and unemployment 
systems, and other dealings with employees that apply to a rail 
carrier providing transportation subject to subchapter I of 
chapter 105 apply to Amtrak Commuter.
  [(c) Application of Certain Additional Laws.--This part and, 
to the extent consistent with this part, the District of 
Columbia Business Corporation Act (D.C. Code Sec.  29--301 et 
seq.) apply to Amtrak Commuter.
  [(d) Nonapplication of Rate, Route, and Service Laws.--4 A 
State or other law related to rates, routes, or service in 
connection with rail passenger transportation does not apply to 
Amtrak Commuter.
  [(e) Preemption Related to Employee Work Requirements.--A 
State may not adopt or continue in force a law, rule, 
regulation, order, or standard requiring Amtrak Commuter to 
employ a specified number of individuals to perform a 
particular task, function, or operation.
  [(f) Exemption From Additional Taxes.--
          [(1) In this subsection--
                  [(A) ``additional tax'' means a tax or fee--
                          [(i) on the acquisition, improvement, 
                        ownership, or operation of personal 
                        property by Amtrak Commuter; and
                          [(ii) on real property, except a tax 
                        or fee on the acquisition of real 
                        property or on the value of real 
                        property not attributable to 
                        improvements made, or the operation of 
                        those improvements, by Amtrak Commuter.
                  [(B) ``Amtrak Commuter'' includes a rail 
                carrier subsidiary of Amtrak Commuter and a 
                lessor or lessee of Amtrak Commuter or one of 
                its rail carrier subsidiaries.
          [(2) Amtrak Commuter is not required to pay an 
        additional tax because of an expenditure to acquire or 
        improve real property, equipment, a facility, or right-
        of-way material or structures used to provide rail 
        passenger transportation, even if that use is indirect.
  [(g) Tax Exemption for Certain Commuter Authorities.--A 
commuter authority with which Amtrak Commuter could have made a 
contract to provide commuter rail passenger transportation 
under this chapter but which decided to provide its own rail 
passenger transportation beginning on January 1, 1983, is 
exempt, effective October 1, 1981, from paying a tax or fee to 
the same extent Amtrak is exempt.
  [(h) Nonapplication of Agreements for Financial Support and 
Trackage Rights.--An agreement under which financial support 
was provided on January 2, 1974, to a commuter authority to 
continue rail passenger transportation does not apply to Amtrak 
Commuter. However, Amtrak and the Consolidated Rail Corporation 
retain appropriate trackage rights over rail property owned or 
leased by the authority. Compensation for the rights shall be 
reasonable.

[Sec. 24502. Board of directors

  [(a) Composition.--The board of directors of Amtrak Commuter 
is composed of the following directors:
          [(1) the President of Amtrak Commuter.
          [(2) one individual from the board of directors of 
        Amtrak selected as a representative of commuter 
        authorities that make contracts with Amtrak Commuter 
        for the operation of commuter rail passenger 
        transportation.
          [(3) 2 individuals selected by the board of directors 
        of Amtrak.
          [(4) 2 individuals selected by commuter authorities 
        for which Amtrak Commuter provides commuter rail 
        transportation under this chapter. However, only one 
        individual shall be selected under this clause if 
        Amtrak Commuter provides the transportation for only 
        one authority.
  [(b) Terms.--Except as otherwise provided in this section, 
individuals shall serve for 2 years.
  [(c) Chairman.--The board shall select annually one of its 
members to serve as Chairman.
  [(d) 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.
  [(e) Vacancies.--A vacancy on the board is filled in the same 
way as the original selection.
  [(f) Bylaws.--The board may adopt and amend bylaws governing 
the operation of Amtrak Commuter. The bylaws shall be 
consistent with this part and the articles of incorporation.]

[Sec. 24503. Officers

  [(a) Appointment and Terms.--Amtrak Commuter has a President 
and other officers that are named and appointed by the board of 
directors of Amtrak commuter. An officer of Amtrak Commuter 
must be a citizen of the United States. Officers of Amtrak 
Commuter serve at the pleasure of the board.
  [(b) Pay.--The board may fix the pay of the officers of 
Amtrak Commuter. An officer may be paid not more than the 
general level of pay for officers of rail carriers with 
comparable responsibility.
  [(c)  Conflicts of Interest.--When employed by Amtrak 
Commuter, an officer may not have a financial or employment 
relationship with a rail carrier, except that holding 
securities issued by a rail carrier is not deemed to be a 
violation of this subsection if the officer holding the 
securities makes a complete public disclosure of the holdings 
and does not participate in any decision directly affecting the 
rail carrier.

[Sec. 24504. General authority

  [(a) General.--Amtrak Commuter may--
          [(1) acquire, operate, maintain, and make contracts 
        for the operation of equipment and facilities necessary 
        for commuter rail passenger transportation;
          [(2) conduct research and development related to the 
        mission of Amtrak Commuter; and
          [(3) issue common stock to Amtrak.
  [(b) Operation and Control.--To the extent consistent with 
this part and with an agreement with a commuter authority, 
Amtrak Commuter shall operate and control all aspects of the 
commuter rail passenger transportation it provides.
  [(c) Agreement to Avoid Duplicating Employee Functions.--To 
the maximum extent practicable, Amtrak Commuter and Amtrak 
shall make an agreement that avoids duplicating employee 
functions and voluntarily establishes a consolidated work 
force.]

[Sec. 24505. Commuter rail passenger transportation

  [(a) General Authority.--Amtrak Commuter--
          [(1) shall provide commuter rail passenger 
        transportation that the Consolidated Rail Corporation 
        was obligated to provide on August 13, 1981, under 
        section 303(b)(2) or 304(e) of the Regional Rail 
        Reorganization Act of 1973 (45 U.S.C. 743(b)(2), 
        744(e)); and
          [(2) may provide other commuter rail passenger 
        transportation if the commuter authority for which the 
        transportationwill be provided offers to provide a 
commuter rail passenger transportation payment equal to the--
                  [(A) avoidable costs of providing the 
                transportation (including the avoidable cost of 
                necessary capital improvements) and a 
                reasonable return on the value; less
                  [(B) revenue attributable to the 
                transportation.
  [(b) Offer Requirements.--
          [(1) A commuter authority making an offer under 
        subsection (a)(2) of this section shall--
                  [(A) show that it has obtained access to all 
                rail property necessary to provide the 
                additional commuter rail passenger 
                transportation; and
                  [(B) make the offer according to regulations 
                the Rail Services Planning Office prescribes 
                under section 10362(b)(5)(A) and (6) of this 
                title.
          [(2) The Office may revise and update the regulations 
        when necessary to carry out this section.
  [(c) Additional Employee Requirements.--Additional employee 
requirements shall be met through existing seniority 
arrangements agreed to in the implementing agreement negotiated 
under section 508 of the Rail Passenger Service Act.
  [(d) When Obligation Does Not Apply.--Amtrak Commuter is not 
obligated to provide commuter rail passenger transportation if 
a commuter authority provides the transportation or makes a 
contract under which a person, except Amtrak Commuter, will 
provide the transportation. When appropriate, Amtrak Commuter 
shall give the authority or person access to the rail property 
needed to provide the transportation.
  [(e) Discontinuance of Commuter Rail Passenger 
Transportation.--
          [(1) Amtrak Commuter may discontinue commuter rail 
        passenger transportation provided under this section on 
        60 days' notice if--
                  [(A) a commuter authority does not offer a 
                commuter rail passenger transportation payment 
                under subsection (a)(2) of this section; or
                  [(B) a payment is not paid when due.
          [(2) The Office shall prescribe regulations on the 
        necessary contents of the notice required under this 
        subsection.
  [(f) Compensation for Right-of-way Related Costs.--
Compensation by a commuter authority to Amtrak or Amtrak 
Commuter for right-of-way related costs for transportation over 
property Amtrak owns shall be determined under a method the 
Interstate Commerce Commission establishes under section 1163 
of the Omnibus Budget Reconciliation Act of 1981 (45 U.S.C. 
1111) or to which the parties agree.
  [(g) Application of Other Laws.--All laws related to commuter 
rail passenger transportation apply to a commuter authority 
providing commuter rail passenger transportation under this 
section.]

[Sec.  24506. Certain duties and powers unaffected

  [This chapter does not affect a duty or power of the 
Consolidated Rail Corporation or its successor and any bi-state 
commuter authority under an agreement, lease, or contract under 
which property was conveyed to the Corporation under the 
Regional Rail Reorganization Act of 1973 (45 U.S.C. 701 et 
seq.).]

[Sec.  24701. Operation of basic system

  [(a) By Amtrak.--Amtrak shall provide intercity rail 
passenger transportation within the basic system unless the 
transportation is provided by--
          [(1) a rail carrier with which Amtrak did not make a 
        contract under section 401(a) of the Rail Passenger 
        Service Act; or
          [(2) a regional transportation authority under 
        contract with Amtrak.
  [(b) By Others with Consent of Amtrak.--Except as provided in 
section 24306 of this title, a person may provide intercity 
rail passenger transportation over a route over which Amtrak 
provides scheduled intercity rail passenger transportation 
under a contract under section 401(a) of the Act only with the 
consent of Amtrak.]
Sec.  24701. Operation of basic system
  Amtrak shall provide intercity rail passenger transportation 
within the basic system. Amtrak shall strive to operate as a 
national rail passenger transportation system which provides 
access to all areas of the country and ties together existing 
and emergent regional rail passenger corridors and other 
intermodal passenger service.

[Sec.  24702. Improving rail passenger transportation

  [(a) Plan to Improve Transportation.--Amtrak shall continue 
to carry out its plan, submitted under section 305(f) of the 
Rail Passenger Service Act, to improve intercity rail passenger 
transportation provided in the basic system. The plan shall 
include--
          [(1) a zero-based assessment of all operating 
        practices;
          [(2) changes to achieve the minimum use of employees 
        consistent with safe operations and adequate 
        transportation;
          [(3) a systematic program for achieving the greatest 
        ratio of train size to passenger demand;
          [(4) a systematic program to reduce trip time in the 
        basic system;
          [(5) establishing training programs to achieve on-
        time departures;
          [(6) establishing priorities for passenger trains 
        over freight trains;
          [(7) adjusting the buying and pricing of food and 
        beverages so that food and beverage services ultimately 
        will be profitable;
          [(8) cooperative marketing opportunities between 
        Amtrak and governmental authorities that have intercity 
        rail passenger transportation; and
          [(9) cooperative marketing campaigns sponsored by 
        Amtrak and the Secretary of Energy, the Administrator 
        of the Federal Highway Administration, and the 
        Administrator of the Environmental Protection Agency.
  [(b) State and Local Speed Restrictions.--Amtrak shall--
          [(1) identify any speed restriction a State or local 
        government imposes on a train of Amtrak that Amtrak 
        decides impedes Amtrak from achieving high-speed 
        intercity rail passenger transportation; and
          [(2) consult with that State or local government--
                  [(A) to evaluate alternatives to the speed 
                restriction, considering the local safety 
                hazard that is the basis for the restriction; 
                and
                  [(B) to consider modifying or eliminating the 
                restriction to allow safe operation at higher 
                speeds.
  [(c) High-speed Rail Transportation Development.--On 
reasonable request by a State, political subdivision of a 
State, regional partnership, private sector representative, or 
other qualified person, Amtrak shall consult and cooperate to 
the extent feasible with that person to assist the efforts of 
that person to achieve high-speed rail transportation through 
equipment upgrades, grade-crossing safety improvements, and 
incremental infrastructure improvements on existing rail 
facilities that Amtrak uses (except the Northeast Corridor 
facilities). Not later than September 30, 1993, Amtrak shall 
submit to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on its efforts under this 
subsection.
  [(d) Routes Connecting Corridors.--Amtrak shall begin or 
improve appropriate rail passenger transportation on a route 
between corridors that Amtrak decides is justified because it 
will increase ridership on trains of Amtrak on the route and in 
the connecting corridors.]

[Sec.  24703. Route and service criteria

  [(a) Route Discontinuances and Additions.--Except as provided 
in this part, route discontinuances and route additions shall 
comply with the route and service criteria.
  [(b) Congressional Review of Criteria Amendments.--
          [(1) Amtrak shall submit to Congress a draft of an 
        amendment to the route and service criteria when Amtrak 
        decides an amendment is appropriate. The amendment is 
        effective at the end of the first period of 120 
        calendar days of continuous session of Congress after 
        it is submitted unless there is enacted into law during 
        the period a joint resolution stating Congress does not 
        approve the amendment.
          [(2) In this subsection--
                  [(A) a continuous session of Congress is 
                broken only by an adjournment sine die; and
                  [(B) the 120-day period does not include days 
                on which either House is not in session because 
                of adjournment of more than 3 days to a day 
                certain.
  [(c) Nonapplication.--The route and service criteria do not 
apply to--
          [(1) increasing or, because of construction schedules 
        or other temporary disruptive facts or seasonal 
        fluctuations in ridership, decreasing the number of 
        trains on an existing route or a part of an existing 
        route or on a route on which additional trains are 
        being tested;
          [(2) carrying out the recommendations developed under 
        section 4 of the Amtrak Improvement Act of 1978;
          [(3) rerouting transportation between major 
        population centers on an existing route; or
          [(4) (A) modifying transportation operations under 
        section 24707(a) of this title; and
          [(B) modifying the route system or discontinuing 
        transportation under section 24707(b) of this title.]

[Sec.  24705. Additional qualifying routes

  [(a) Routes Recommended for Discontinuance.--
          [(1) To maintain a national intercity rail passenger 
        system in the United states and if a reduction in 
        operating expenses can be achieved, Amtrak shall 
        provide rail passenger transportation over each route 
        the Secretary of Transportation recommended be 
        discontinued under section 4 of the Amtrak Improvement 
        Act of 1978 and may restructure a route to serve a 
        major population center as an ending place or principal 
        intermediate place. Transportation over a long distance 
        route shall be maintained if the Amtrak estimate for 
        the fiscal year ending September 30, 1980, was that the 
        short term avoidable loss for each passenger mile on 
        the route was not more than 7 cents. Transportation 
        over a short distance route shall be maintained if the 
        Amtrak estimate for the fiscal year ending September 
        30, 1980, was that the short term avoidable loss for 
        each passenger mile on the route was not more than 9 
        cents.
          [(2) For all routes, Amtrak shall calculate short 
        term avoidable loss for each passenger-mile based on 
        consistently defined factors. Calculations shall be 
        based on the most recent available statistics for a 90-
        day period, except that Amtrak may use historical 
        information adjusted to reflect the most recent 
        available statistics.
  [(b) Deferral of Secretary's Recommendations.--
          [(1) To provide equivalent or improved transportation 
        consistent with the goals of section 4(a) of the Act, 
        Amtrak may defer carrying out a recommendation the 
        Secretary under section 4 of the Act that requires 
        providing transportation over a rail line not used in 
        intercity rail passenger transportation on May 24, 
        1979, requires using a new facility, or requires making 
        a new labor agreement, until any necessary capital 
        improvements are made in the line or facility or the 
        agreement is made.
          [(2) Notwithstanding another law and the route and 
        service criteria, during the period a decision of the 
        Secretary under section 4 of the Act is deferred, 
        Amtrak shall provide substitute transportation over 
        existing routes recommended for restructuring and over 
        other existing feasible routes. Except for 
        transportation concentrating on commuter ridership over 
        a short haul route, transportation provided under this 
        paragraph may be provided only if the route complies 
        with subsection (a) of this section, adjusted to 
        reflect constant 1979 dollars.
  [(c) Short Haul Demonstration Routes.--Notwithstanding this 
part, Amtrak may provide short haul trains on additional routes 
totaling not more than 200 miles that link at least 2 major 
metropolitan are as--
          [(1) on a demonstration basis to establish the 
        feasibility and benefits of the transportation; and
          [(2) to the extent available resources allow.
  [(d) Routes Discontinued by Rail Carriers.--Amtrak may 
undertake to provide rail passenger transportation between 
places served by a rail carrier filing a notice of 
discontinuance under section 10908 or 10909 of this title.]

Sec.  24706. Discontinuance

  (a) Notice of Discontinuance.--
          (1) Except as provided in subsection (b) of this 
        section, at least [90 days] 180 days before a 
        discontinuance under section 24704 or [24707 (a) or (b) 
        of this title,] discontinuing service over a route, 
        Amtrak shall give notice of the discontinuance in the 
        way Amtrak decides will give a State, a regional or 
        local authority, or another person the opportunity to 
        agree to share or assume the cost of any part of the 
        train, route, or service to be discontinued.
          (2) Notice of the discontinuance under section 24704 
        or [24707 (a) or (b) of this title] paragraph (1) shall 
        be posted in all stations served by the train to be 
        discontinued at least 14 days before the 
        discontinuance.
  (b) Discontinuance for Lack of Appropriations.--
          (1) Amtrak may discontinue service under section 
        24704 or [24707 (a) or (b) of this title] paragraph (1) 
        during--
                  (A) the first month of a fiscal year if the 
                authorization of appropriations and the 
                appropriations for Amtrak are not enacted at 
                least 90 days before the beginning of the 
                fiscal year; and
                  (B) the 30 days following enactment of an 
                appropriation for Amtrak or a rescission of an 
                appropriation.
          (2) Amtrak shall notify each affected State or 
        regional or local transportation authority of a 
        discontinuance under this subsection as soon as 
        possible after Amtrak decides to discontinue the 
        service.
  [(c) Employee Protective Arrangements.--
          [(1) Amtrak or a rail carrier (including a terminal 
        company) shall provide fair and equitable arrangements 
        to protect the interests of employees of Amtrak or a 
        rail carrier, as the case may be, affected by a 
        discontinuance of intercity rail passenger service, 
        including a discontinuance of service provided by a 
        railcarrier under a facility or service agreement under 
        section 24308(a) of this title under a modification or 
        ending of the agreement or because Amtrak begins 
        providing that service. Arrangements shall include 
        provisions that may be necessary for--
                  [(A) the preservation of rights, privileges, 
                and benefits (including continuation of pension 
                rights and benefits) under existing collective 
                bargaining agreements or otherwise;
                  [(B) the continuation of collective 
                bargaining rights;
                  [(C) the protection of individual employees 
                against a worsening of their positions related 
                to employment;
                  [(D) assurances of priority of reemployment 
                of employees whose employment is ended or who 
                are laid off; and
                  [(E) paid training and retraining programs.
          [(2) With respect to Amtrak's obligations under this 
        subsection and in an agreement to carry out this 
        subsection involving only Amtrak and its employees, a 
        discontinuance of intercity rail passenger service does 
        not include an adjustmentin frequency, or seasonal 
suspension of intercity rail passenger trains that causes a temporary 
suspension of service, unless the adjustment or suspension reduces 
passenger train operations on a particular route to fewer than 3 round 
trips a week at any time during a calendar year.
          [(3) Arrangements under this subsection shall provide 
        benefits at least equal to benefits established under 
        section 11347 of this title.
          [(4) A contract under this chapter or section 
        24308(a) of this title shall specify the terms of 
        protective arrangements.
          [(5) This subsection does not impose on Amtrak an 
        obligation of a rail carrier related to a right, 
        privilege, or benefit earned by an employee because of 
        previous service performed for the carrier.
          [(6) This subsection does not apply to Amtrak 
        Commuter.]

[Sec.  24707. Cost and performance review

  [(a) Route Reviews.--Amtrak shall review annually each route 
in the basic system to decide if the route meets the long 
distance or short distance route criterion, as appropriate, 
under section 24705(a)(1) of this title, adjusted to reflect 
constant 1979 dollars. The review shall include an evaluation 
of the potential market demand for, and the cost of providing 
transportation on, a part of the route and an alternative 
route. Amtrak shall submit the results of the review to the 
House of Representatives, the Senate, and the Secretary of 
transportation. If Amtrak decides that a route will not meet 
the criterion under section 24705(a)(1), as adjusted, Amtrak 
shall modify or discontinue rail passenger transportation 
operations on the route so that it will meet the criterion.
  [(b) Financial Requirements and Performance Standards.--Not 
later than 30 days after the beginning of each fiscal year, 
Amtrak shall evaluate the financial requirements for operating 
the basic system and the progress in achieving the system-wide 
performance standards prescribed under this part during the 
fiscal year. If Amtrak decides amounts available for the fiscal 
year are not enough to meet estimated operating costs, or if 
Amtrak estimates it cannot meet the performance standards, 
Amtrak shall act to reduce costs and improve performance. 
Action under this subsection shall be designed to continue the 
maximum level of transportation practicable, including--
          [(1) changing the frequency of transportation;
          [(2) increasing fares;
          [(3) reducing the cost of sleeper car and dining car 
        service on certain routes;
          [(4) increasing the passenger capacity of cars used 
        on certain routes; and
          [(5) modifying the route system or discontinuing 
        transportation over routes, considering short term 
        avoidable loss and the number of passengers served on 
        those routes.
  [(c) Cost Limitations and Revenue Goals.--Annual costs of 
Amtrak may not be more than amounts, including grants made 
under section 24104 of this title, contributions of States, 
regional and local authorities, and other persons, and 
revenues, available to Amtrak in the fiscal year. Amtrak 
annually shall set a goal of recovering an amount so that its 
revenues, including contributions, is at least 61 percent of 
its costs, except capital costs.
  [(d) Conductor Reports.--To assess the operational 
performance of trains, the president of Amtrak may direct the 
conductor on any train of Amtrak to report to Amtrak any 
inadequacy of train operation. The report shall be signed by 
the conductor, contain sufficient information to locate 
equipment or personnel failures, and be submitted promptly to 
Amtrak.]

[Sec.  24708. Special commuter transportation

  [(a) Transportation to be Continued if Criterion Met.--Amtrak 
shall continue to provide rail passenger transportation 
provided under section 403(d) of the rail Passenger Service Act 
before October 1, 1981, if, after considering estimated fare 
increases and State and local contributions to the 
transportation, the transportation meets the short distance 
route criterion under section 24705(a)(1) of this title, as 
adjusted. Transportation continued under this section shall be 
financed consistent with the method of financing in effect on 
September 30, 1981. If the transportation is not estimated to 
meet the criterion, as adjusted, Amtrak may modify or 
discontinue the transportation so that the criterion is met.]
  [(b) Transportation with Short-term Avoidable loss.--
Notwithstanding subsection (a) of this section, if after 
September 30, 1993, and before October 1, 1995, transportation 
provided under subsection (a) on a route during the prior 6 
months has a short-term avoidable loss (excluding the cost of 
providing passenger equipment needed to provide the 
transportation), Amtrak may choose to consider modifying or 
discontinuing the transportation. If Amtrak does make such a 
choice, Amtrak shall solicit public comment for at least 30 
days on alternatives to the modification or discontinuance. Not 
later than 60 days after the comment period ends, Amtrak may 
modify or discontinue the transportation so that there is no 
short-term avoidable loss under this section for providing the 
transportation on the route.]

          CHAPTER 249. NORTHEAST CORRIDOR IMPROVEMENT PROGRAM

Sec.  24902. Goals and requirements

  [(a) Northeast Corridor Improvement Plan.--To the extent of 
amounts appropriated under section 24909 of this title, Amtrak 
shall carry out a Northeast Corridor improvement program to 
achieve the following goals:
          [(1) establish not later than September 30, 1985, 
        regularly scheduled and dependable intercity rail 
        passenger transportation between--
                  [(A) Boston, Massachusetts, and New York, New 
                York, in not more than 3 hours and 40 minutes, 
                including intermediate stops; and
                  [(B) New York, New York, and the District of 
                Columbia, in not more than 2 hours and 40 
                minutes, including intermediate stops;
          [(2) improve facilities, under route criteria 
        approved by Congress, on routes to Harrisburg, 
        Pennsylvania, Albany, New York, and Atlantic City, New 
        Jersey, from the Northeast Corridor main line, and to 
        Boston, Massachusetts, and NewHaven, Connecticut, from 
Springfield, Massachusetts, to make those facilities more compatible 
with improved high-speed transportation provided on the Northeast 
Corridor main line;
          [(3) improve nonoperational parts of stations, 
        related facilities, and fencing used in intercity rail 
        passenger transportation;
          [(4) facilitate improvements in, and usage of, 
        commuter rail passenger, rail rapid transit, and local 
        public transportation, to the extent compatible with 
        clauses (1)--(3) of this subsection and subsections (f) 
        and (h) of this section;
          [(5) maintain and improve rail freight transportation 
        in or adjacent to the Northeast Corridor and through-
        freight transportation in the Northeast Corridor, to 
        the extent compatible with clauses (1)-(4) of this 
        subsection and subsections (f) and (h) of this section;
          [(6) continue and improve passenger radio mobile 
        telephone service on high-speed rail passenger 
        transportation between Boston, Massachusetts, and the 
        District of Columbia, to the extent compatible with 
        clauses (1)--(3) of this subsection and subsections (f) 
        and (h) of this section; and
          [(7) eliminate to the maximum extent practicable 
        congestion in rail freight and rail passenger 
        transportation at the Baltimore and Potomac Tunnel in 
        Baltimore, Maryland, by rehabilitating and improving 
        the tunnel and the rail lines approaching the tunnel.]
  [(b)] (a) Managing Costs and Revenues.--Amtrak shall manage 
its operating costs, pricing policies, and other factors with 
the goal of having revenues derived each fiscal year from 
providing intercity rail passenger transportation over the 
Northeast Corridor route between the District of Columbia and 
Boston, Massachusetts, equal at least the operating costs of 
providing that transportation in that fiscal year.
  [(c) Cost Sharing for Nonoperational Facilities.--
          [(1) Fifty percent of the cost of improvements under 
        subsection (a)(3) of this section shall be paid by a 
        State, local or regional transportation authority or 
        other responsible party. However, Amtrak may finance 
        entirely a safety-related improvement.
          [(2) When a part of the cost of improvements under 
        subsection (a)(3) of this section will be paid by a 
        responsible party under paragraph (1) of this 
        subsection, Amtrak may make an agreement with the party 
        under which Amtrak--
                  [(A) shall carry out the improvements with 
                amounts appropriated under section 24909 of 
                this title and the party shall reimburse 
                Amtrak; and
                  [(B) to the extent provided in an 
                appropriation law, may incur obligations for 
                contracts to carry out the improvements in 
                anticipation of reimbursement.
          [(3) Amounts reimbursed to Amtrak under paragraph (2) 
        of this subsection shall be credited to the 
        appropriation originally charged for the cost of the 
        improvements and are available for further obligation.
  [(d) Passenger Radio Mobile Telephone Service.--The President 
and departments, agencies, and instrumentalities of the United 
States Government shall assist Amtrak under subsection (a)(6) 
of this section, subject to the Communications act of 1934 (47 
U.S.C. 151 et seq.) and radio services standards, when the 
Federal Communications Commission decides the assistance is in 
the public interest, convenience, and necessity.]
  [(e)] (b) Priorities in Selecting and Scheduling Projects.--
When selecting and scheduling specific projects, Amtrak shall 
apply the following considerations, in the following order of 
priority:
          (1) Safety-related items should be completed before 
        other items because the safety of the passengers and 
        users of the Northeast Corridor is paramount.
          (2) Activities that benefit the greatest number of 
        passengers should be completed before activities 
        involving fewer passengers.
          (3) Reliability of intercity rail passenger 
        transportation must be emphasized.
          (4) Trip-time requirements of this section must be 
        achieved to the extent compatible with the priorities 
        referred to in paragraphs (1)--(3) of this subsection.
          (5) Improvements that will pay for the investment by 
        achieving lower operating or maintenance costs should 
        be carried out before other improvements.
          (6) Construction operations should be scheduled so 
        that the fewest possible passengers are inconvenienced, 
        transportation is maintained, and the on-time 
        performance of Northeast Corridor commuter rail 
        passenger and rail freight transportation is optimized.
          (7) Planning should focus on completing activities 
        that will provide immediate benefits to users of the 
        Northeast Corridor.
  [(f)] (c) Compatibility With Future Improvements and 
Production of Maximum Labor Benefits.--Improvements under this 
section shall be compatible with future improvements in 
transportation and shall produce the maximum labor benefit from 
hiring individuals presently unemployed.
  [(g)] (d) Automatic Train Control Systems.--A train operating 
on the Northeast Corridor main line or between the main line 
and Atlantic City shall be equipped with an automatic train 
control system designed to slow or stop the train in response 
to an external signal.
  [(h)] (e) High-Speed Transportation.--If practicable, Amtrak 
shall establish intercity rail passenger transportation in the 
Northeast Corridor that carries out section 703(1)(E) of the 
Railroad Revitalization and Regulatory Reform Act of 1976 
(Public Law 94-210, 90 Stat. 121).
  [(i)] (f) Equipment Development.--Amtrak shall develop 
economical and reliable equipment compatible with track, 
operating, and marketing characteristics of the Northeast 
Corridor, including the capability to meet reliable trip times 
under section 703(1)(E) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (Public Law 94-210, 90 Stat. 121) 
in regularly scheduled revenue transportation in the Corridor, 
when the Northeast Corridor improvement program is completed. 
Amtrak must decide that equipment complies with this subsection 
before buying equipment withfinancial assistance of the 
Government. Amtrak shall submit a request for an authorization of 
appropriations for production of the equipment.
  [(j)] (g) Agreements for Off-Corridor Routing of Rail Freight 
Transportation.--
          (1) Amtrak may make an agreement with a rail freight 
        carrier or a regional transportation authority under 
        which the carrier will carry out an alternate off-
        corridor routing of rail freight transportation over 
        rail lines in the Northeast Corridor between the 
        District of Columbia and New York metropolitan areas, 
        including intermediate points. The agreement shall be 
        for at least 5 years.
          (2) Amtrak shall apply to the Interstate Commerce 
        Commission for approval of the agreement and all 
        related agreements accompanying the application as soon 
        as the agreement is made. If the Commission finds that 
        approval is necessary to carry out this chapter, the 
        Commission shall approve the application and related 
        agreements not later than 90 days after receiving the 
        application.
          (3) If an agreement is not made under paragraph (1) 
        of this subsection, Amtrak, with the consent of the 
        other parties, may apply to the Interstate Commerce 
        Commission. Not later than 90 days after the 
        application, the Commission shall decide on the terms 
        of an agreement if it decides that doing so is 
        necessary to carry out this chapter. The decision of 
        the Commission is binding on the other parties.
  [(k)] (h) Coordination.--
          (1) The Secretary of Transportation shall 
        coordinate--
                  (A) transportation programs related to the 
                Northeast Corridor to ensure that the programs 
                are integrated and consistent with the 
                Northeast Corridor improvement program; and
                  (B) amounts from departments, agencies, and 
                instrumentalities of the Government to achieve 
                urban redevelopment and revitalization in the 
                vicinity of urban rail stations in the 
                Northeast Corridor served by intercity and 
                commuter rail passenger transportation.
          (2) If the Secretary finds significant noncompliance 
        with this section, the Secretary may deny financing to 
        a noncomplying program until the noncompliance is 
        corrected.
  [(l)] (i) Completion.--Amtrak shall give the highest priority 
to completing the program.
  [(m)] (j) Applicable Procedures.--No State or local building, 
zoning, subdivision, or similar or related law, nor any other 
State or local law from which a project would be exempt if 
undertaken by the Federal Government or an agency thereof 
within a Federal enclave wherein Federal jurisdiction is 
exclusive, including without limitation with respect to all 
such laws referenced herein above requirements for permits, 
actions, approvals or filings, shall apply in connection with 
the construction, ownership, use, operation, financing, 
leasing, conveying, mortgaging or enforcing a mortgage of (i) 
any improvement undertaken by or for the benefit of Amtrak as 
part of, or in furtherance of, the Northeast Corridor 
Improvement Project (including without limitation maintenance, 
service, inspection or similar facilities acquired, constructed 
or used for high speed trainsets) or chapter 241, 243, or 247 
of this title, or (ii) any land (and right, title or interest 
created with respect thereto) on which such improvement is 
located and adjoining, surrounding or any related land. These 
exemptions shall remain in effect and be applicable with 
respect to such land and improvements for the benefit of any 
mortgagee before, upon and after coming into possession of such 
improvements or land, any third party purchasers thereof in 
foreclosure (or through a deed in lieu of foreclosure), and 
their respective successors and assigns, in each case to the 
extent the land or improvements are used, or held for use, for 
railroad purposes or purposes accessory thereto. This 
subsection (m) shall not apply to any improvement or related 
land unless Amtrak receives a Federal operating subsidy in the 
fiscal year in which Amtrak commits to or initiates such 
improvement.

[Sec.  24903. Program master plan for Boston-New York main line

  [(a) Contents.--Not later than October 27, 1993, in 
consultation with Amtrak and the commuter and freight rail 
carriers operating over the Northeast Corridor main line 
between Boston, Massachusetts, and New York, New York, the 
Secretary of Transportation shall submit to the Committee on 
Energy and Commerce of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate a program master plan for a coordinated program of 
improvements to that main line that will allow the 
establishment of regularly scheduled, safe, and dependable rail 
passenger transportation between Boston, Massachusetts, and New 
York, New York, in not more than 3 hours, including 
intermediate stops. The plan shall include--
          [(1) a description of the implications of the 
        improvements for the regional transportation system, 
        including the probable effects on general travel trends 
        and on travel volumes in other transportation modes and 
        the implications for State and local governments in 
        achieving compliance with the Clean Air Act (42 U.S.C. 
        7401 et seq.);
          [(2) an identification of the coordinated program of 
        improvements and the specific projects of that program, 
        including the estimated costs, schedules, timing, and 
        relationship of those projects with other projects;
          [(3) an identification of the financial 
        responsibility for the specific projects of that 
        program and the sources of the amounts for the 
        projects;
          [(4) an operating plan for the construction period of 
        the improvements that shows a coordinated approach to 
        scheduling intercity and commuter trains;
          [(5) an operating plan for the coordinated scheduling 
        of intercity and commuter trains for the period after 
        the program is completed, including priority 
        scheduling, dispatching, and occupancy of tracks for 
        appropriately frequent, regularly scheduled intercity 
        rail passenger transportation between Boston, 
        Massachusetts, and New York, New York, in not more than 
        3 hours, including intermediate stops;
          [(6) a comprehensive plan to control future 
        congestion in the Northeast Corridor attributable to 
        increases in intercity and commuter rail passenger 
        transportation;
          [(7) an assessment of long-term operational safety 
        needs and a list of specific projects designed to 
        maximize operational safety; and
          [(8) comments that Amtrak submits to the Secretary on 
        the plan.
  [(b) Submitting Modifications of Plan to Congress.--The 
Secretary shall submit to Congress any modification made to the 
program master plan and comments that Amtrak submits on the 
modification.]

          CHAPTER 249. NORTHEAST CORRIDOR IMPROVEMENT PROGRAM

Sec. 24904. General authority

  (a) General.--To carry out this chapter and the Regional Rail 
Reorganization Act of 1973 (45 U.S.C. 701 et seq.), Amtrak 
may--
          (1) acquire, maintain, and dispose of any interest in 
        property used to provide improved high-speed rail 
        transportation under section 24902 of this title;
          (2) acquire, by condemnation or otherwise, any 
        interest in real property that Amtrak considers 
        necessary to carry out the goals of section 24902;
          (3) provide for rail freight, intercity rail 
        passenger, and commuter rail passenger transportation 
        over property acquired under this section;
          (4) improve rail rights of way between Boston, 
        Massachusetts, and the District of Columbia (including 
        the route through Springfield, Massachusetts, and 
        routes to Harrisburg, Pennsylvania, and Albany, New 
        York, from the Northeast Corridor main line) to achieve 
        the goals of section 24902 of providing improved high-
        speed rail passenger transportation between Boston, 
        Massachusetts, and the District of Columbia, and 
        intermediate intercity markets;
          (5) acquire, build, improve, and install passenger 
        stations, communications and electric power facilities 
        and equipment, public and private highway and 
        pedestrian crossings, and other facilities and 
        equipment necessary to provide improved high-speed rail 
        passenger transportation over rights of way improved 
        under clause (4) of this subsection;
          (6) make agreements with other carriers and commuter 
        authorities to grant, acquire, or make arrangements for 
        rail freight or commuter rail passenger transportation 
        over, rights of way and facilities acquired under the 
        Regional Rail Reorganization Act of 1973 (45 U.S.C. 701 
        et seq.) and the Railroad Revitalization and Regulatory 
        Reform Act of 1976 (45 U.S.C. 801 et seq.);
          (7) appoint a general manager of the Northeast 
        Corridor improvement program; and
          (8) make agreements with telecommunications common 
        carriers, subject to the Communications Act of 1934 (47 
        U.S.C. 151 et seq.), to continue existing, and 
        establish new and improved, passenger radio mobile 
        telephone service in [the high-speed rail passenger 
        transportation area specified in section 24902(a)(1) 
        and (2)] a high-speed rail passenger transportation 
        area.
  (b) Compensatory Agreements.--Rail freight and commuter rail 
passenger transportation provided under subsection (a)(3) of 
this section shall be provided under compensatory agreements 
with the responsible carriers.
  (c) Compensation for Transportation over Certain Rights of 
Way and Facilities.--
          (1) An agreement under subsection (a)(6) of this 
        section shall provide for reasonable reimbursement of 
        costs but may not cross-subsidize intercity rail 
        passenger, commuter rail passenger, and rail freight 
        transportation.
          (2) If the parties do not agree, the Interstate 
        Commerce Commission shall order that the transportation 
        continue over facilities acquired under the Regional 
        Rail Reorganization Act of 1973 (45 U.S.C. 701 et seq.) 
        and the Railroad Revitalization and Regulatory Reform 
        Act of 1976 (45 U.S.C. 801 et seq.) and shall determine 
        compensation (without allowing cross-subsidization) 
        between intercity rail passenger and rail freight 
        transportation for the transportation not later than 
        120 days after the dispute is submitted. The Commission 
        shall assign to a rail freight carrier obtaining 
        transportation under this subsection the costs Amtrak 
        incurs only for the benefit of the carrier, plus a 
        proportionate share of all other costs of providing 
        transportation under this paragraph incurred for the 
        common benefit of Amtrak and the carrier. The 
        proportionate share shall be based on relative measures 
        of volume of car operations, tonnage, or other factors 
        that reasonably reflect the relative use of rail 
        property covered by this subsection.
          (3) This subsection does not prevent the parties from 
        making an agreement under subsection (a)(6) of this 
        section after the Commission makes a decision under 
        this subsection.

                      CHAPTER 281--LAW ENFORCEMENT

Sec. 28103. Limitations on rail passenger transportation liability

  (a) In General.--Notwithstanding any other statutory or 
common law or public policy, or the nature of the conduct 
giving rise to damages or liability, a contract between Amtrak 
and its passengers, or private railroad car operators and their 
passengers regarding claims for personal injury, death, or 
damage to property arising from or in connection with the 
provision of rail passenger transportation, or from or in 
connection with any operations over or use of right-of-way or 
facilities owned, leased, or maintained by Amtrak, or from or 
in connection with any rail passenger transportation operations 
over or rail passenger transportation use of right-of-way or 
facilities owned, leased, or maintained by any high-speed 
railroad authority or operator, any commuter authority or 
operator, or any rail carrier shall be enforceable if--
          (1) punitive or exemplary damages, where permitted, 
        are not limited to less than 2 times compensatory 
        damages awarded to any claimant by any State or Federal 
        court or administrative agency, or in any arbitration 
        proceeding, or in any other forum or $250,000, 
        whichever is greater;
          (2) passengers are provided adequate notice of any 
        such contractual limitation or waiver or choice of 
        forum; and
          (3) passengers are given an opportunity to purchase 
        supplemental insurance coverage when a ticket is 
        purchased or at point of departure.
  (b) Claim Defined.--For purposes of this section, the term 
``claim'' means a claim made directly or indirectly--
          (1) against Amtrak, any high-speed railroad authority 
        or operator, any commuter authority or operator, or any 
        rail carrier or private rail car operators; or
          (2) against an affiliate engaged in railroad 
        operations, officer, employee, or agent of, Amtrak, any 
        high-speed railroad authority or operator, any commuter 
        authority or operator, or any rail carrier.
  (c) Special Rule.--Notwithstanding subsection (a)(1), if, in 
any case in which death was caused, the law of the place where 
the act or omission complained of occurred provides, or has 
been construed to provide, for damages only punitive in nature, 
a claimant may recover in a claim limited by this section for 
actual or compensatory damages measured by the pecuniary 
injuries, resulting from such death, to the persons for whose 
benefit the action was brought, subject to the provisions of 
subsection (a).