WASHINGTON, D.C. — The House Railroads Subcommittee, chaired by U.S. Rep. Jack Quinn (R-NY), on May 8 will consider a bill that provides $59 billion to fund the development of high-speed passenger rail, and a bill to reauthorize Amtrak for one year and provide for oversight regarding Amtrak’s investment of taxpayer dollars.
The markup of H.R. 2950, the Railroad Infrastructure Development and Expansion Act for the 21st Century (RIDE 21), and H.R. 4545, the Amtrak Reauthorization Act of 2002, is scheduled to begin at 11:30 a.m. on Wednesday, May 8th in 2167 Rayburn House Office Building.
Amendments in the nature of a substitute will be offered for both bills, reflecting, in part, changes developed in negotiations with the Democratic leadership of the Committee. Summaries of the amendments follow.
H.R. 2950 – The Railroad Infrastructure Development And Expansion Act for the 21st Century (RIDE 21)
H.R. 2950 establishes authority for states or interstate compacts to issue $12 billion in federally tax-exempt bonds and $12 billion in federal tax-credit bonds for infrastructure improvements for high-speed passenger railroad infrastructure. Other provisions include:
* The Secretary of Transportation may approve overall corridor design that includes the following elements:
– Has in place agreement of owning freight railroad if its rights-of-way are to be used;
– Eliminates/avoids railroad grade crossings that would impede high-speed operations;
– Applies prevailing wage rate standards to construction projects;
– Has an interstate compact in place for multi-state corridors.
* The Secretary of Transportation may approve projects to complete a major portion of the infrastructure to complete a viable and comprehensive corridor for high-speed rail as defined in 49 U.S.C. sec. 26105 (including corridors designated under ISTEA/TEA-21) at 125 mph or higher.
* The Secretary of Transportation may give preference to projects that:
– Use a mix of tax-credit and tax-exempt bonds;
– Link rail passenger service with other modes of transportation;
– Are expected to have a significant impact on air traffic congestion; or
– Are expected to also improve commuter rail operations.
* The Secretary may designate $1.2 billion per year for 10 years (FY 2003-12) of private-activity tax-exempt bonds, plus $1.2 billion per year for 10 years (FY 2003-12) in tax-credit bonds. Authority to designate unused annual amounts of each type of bond carries over to subsequent years.
* State and local government bonds used for high-speed rail infrastructure must be designated by the Secretary to be tax-exempt.
* Tax-exempt bond amounts are excluded from the $225 million cap on state-issued federally tax-exempt bonds.
* Potentially displaced workers are provided protection through hiring preference for positions with new providers of high- speed rail passenger service.
* New providers of high-speed rail passenger service are subject to the Railway Labor Act and the Railroad Retirement Act; use of contractor services permissible to the extent that Amtrak and freight railroads may under current law.
* States are required to submit annual reports on status of bonds and bond-funded projects.
Bill Extends Focus On High Speed Corridor Development
H.R. 2950 reauthorizes and modifies the existing Swift Rail Development Act, a program to develop high-speed rail corridors, by extending the program authority through fiscal year 2009.
* $100 million per year in general fund grants that are subject to appropriation.
* Changes funding emphasis from technology development (from $25 million per year to $30 million per year) to corridor development (previously corridor planning) (from $10 million per year to $70 million per year) and allows acquisition of locomotives, rolling stock, track and signal equipment with program grants.
Bill Expands Rail Infrastructure Loan Program
H.R. 2950 expands the existing Railroad Rehabilitation & Infrastructure Financing (RRIF) loan and loan guarantee program by increasing funding authority from $3.5 billion to $35 billion of outstanding loan principal at any time. Modifies the RRIF program in the following ways:
* Interstate compacts as well as states are eligible for assistance.
* Magnetic levitation systems as well as steel-wheel systems are eligible for assistance.
* Amount available for primary benefit of Class II and III railroads is increased from $1 billion to $7 billion out of $35 billion in total loan principal authority.
* Eliminates obstacles in the current RRIF program (structure of loan cohorts, collateral requirements, artificial limits on loan amounts, prior rejection requirement).
* The Secretary of Transportation must approve or disapprove an application within 180 days after receiving it.
* The Secretary may not assess applicant fees or other charges.
* The Secretary is required to publish review standards and criteria within 30 days after enactment.
* Applicants must apply prevailing wage rate standards to construction projects.
H.R. 4545 — The Amtrak Reauthorization Act of 2002
H.R. 4545 authorizes $1.2 billion for Amtrak in Fiscal Year 2003 — the amount requested by Amtrak’s management — and an addition $775 million for life-safety and security programs.
* Authorizes $800 million for capital expenditures (the exact amount requested by Amtrak for capital). Amtrak must submit a work plan to the DOT Inspector General, the House Transportation and Infrastructure Committee, and the Senate Commerce Science and Transportation Committee, that includes the work to be funded, timetables, and cost estimates. In addition, Amtrak is to provide supplemental plans to the above addressees within 30 days of any substantial change to the original plan. Amtrak’s President and Board of Directors must certify the work plan and supplemental reports.
* Authorizes $200 million for operating expenditures (the exact amount requested by Amtrak for operations). This payment is conditional upon receipt by the DOT Inspector General, the House Transportation and Infrastructure Committee, and the Senate Commerce Science and Transportation Committee of the Amtrak business plan described in subsection (e).
* Authorizes such sums as may be necessary to pay Amtrak’s excess Railroad Retirement obligations (approx. $200 million by Amtrak’s own estimates).
* Authorizes $375 million for rail security projects on Amtrak lines, and authorizes $400 million for life-safety improvements in Amtrak tunnels in New York, Baltimore, and Washington. The safety problems associated with these tunnels have been the subject of numerous government and independent studies.
* Requires Amtrak to submit a comprehensive business plan to the DOT Inspector General, the House Transportation and Infrastructure Committee, and the Senate Commerce Science and Transportation Committee no later than September 1. This plan shall include ridership targets and capital and operating expenditures, and shall be broken out by business unit. These plans are to be updated by Amtrak quarterly. Amtrak’s President and Board of Directors must certify the business plan and quarterly reports.
* Requires the DOT Inspector General to review Amtrak’s work plan, business plan, and supplemental reports and submit a report on each to the House Transportation and Infrastructure Committee and the Senate Commerce Science and Transportation Committee certifying that Amtrak is spending its capital in accordance with its work plan and/or its supplements. In addition, the DOT Inspector General shall conduct inspections as necessary to ensure the progress of the capital plan.
* Requires the General Accounting Office (GAO) to audit Amtrak’s accounting practices and report to the Secretary of Transportation, the House Transportation and Infrastructure Committee, and the Senate Commerce Science and Transportation Committee by January 1, 2003. GAO is to determine whether Amtrak’s accounting practices will sufficiently illustrate how funds made available under this Act are spent.
* Appropriated funds under this section are available until expended.
* Appropriated funds may not be used to subsidize operating costs of commuter or freight rail.