Midwest and Northeast Rail System Development Act

Midwest and Northeast Rail System Development Act - Declares it to be the purpose of this Act to restructure the present rail system in the Midwest and Northeast regions of the United States in order to meet the present and future needs for rail transportation. Sets forth the definitions of terms used in this Act.

Establishes, in the Interstate Commerce Commission, the Rail Emergency Planning Office, which shall conduct the initial investigation of the present rail transportation system in the rail emergency region and prepare, publish and submit reports on preliminary and final restructuring plans and recommendations for bringing into existence in the rail emergency region the restructured rail system.

Sets forth the term of office and compensation of the director of the office. Enumerates the powers of the director.

Establishes an Advisory Council for the Rail Emergency Region to assist the office and the Commission. Prescribes the membership composition of such council.

Requires the Secretary of Transportation to submit to the commission and the office a report which contains his conclusions concerning essential rail services in the rail emergency region.

Provides that the initial investigation conducted by the office pursuant to this Act shall include: (1) a request of the Governor of each State in the rail emergency region for an analysis of present and future rail service needs in the State; (2) a survey of existing rail transportation operation, traffic density over identified lines, costs and revenues of such lines, plant equipment facilities, and property suitable for rail transportation service in the rail emergency region; (3) an economic and operational study and analysis of present and future rail service needs in the rail emergency region; (4) a study of methods of effecting economies in the cost of rail system operations in the rail emergency region; (5) a study of the effect on railroad employees of any restructuring of the rail system in the rail emergency region; and (6) a report summarizing in detail the initial investigation.

States that the preliminary identification plan for a restructured rail system shall identify on a map the rail transportation system which would best satisfy present and future rail transportation needs in the region.

Requires the office to solicit views of other government agencies and the public with respect to such plan.

Prescribes the steps to be followed in preparing the proposed final identification plan.

Specifies that the final identification plan recommendation shall include (1) a comparison of alternative plans; (2) the possibility of reorganization of class I railroads; and (3) an evaluation of the methods of financing each plan.

Requires the Commission to report, within 90 days of enactment of this Act, on the anticipated effect, including the environmental impact, of abandonments in States within the rail emergency region and States outside the rail emergency region.

Prohibits rail carriers, under the Interstate Commerce Act, from abandoning within 150 days of enactment of this Act all or any portion of a railroad line (or operation thereof) if such abandonment is opposed by any passenger, consignor, or consignee served by the line during the 18 months preceding the filing of abandonment application; or opposed by any State, county, or municipality served by that line.

Authorizes to be appropriated to the Commission for the use of the office in carrying out the purposes of this Act such sums as are necessary, not to exceed $8.5 million. Provides that the budget for the rail emergency region planning office shall be submitted directly to the Congress and shall not be subject to review of any kind by any other agency or official of the United States.

States that as soon as practicable, but in no event more than sixty legislative days after the Congress receives the recommendations of the Commission concerning establishing the restructured rail system for the rail emergency region, the House Committee on Interstate and Foreign Commerce and the Senate Commerce Committee shall report legislation to the full House or Senate, as the case may be, authorizing a restructuring of the rail system in the rail emergency region.

Provides that such legislation shall be highly privileged in each House.

Prohibits, for the eighteen-month period beginning on the date of enactment of this Act, any person from disposing of, or being required to dispose of, the rail line property of any railroad in the rail emergency region.