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 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; (2) an economic and operational study and analysis of present and future rail service needs in the rail emergency region; (3) a study of methods of effecting economies in the cost of rail system operations in the rail emergency region; and (4) 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.

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 $7.5 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.