Amtrak Improvement Act of 1979

(Measure indefinitely postponed in Senate, H.R. 3996 passed in lieu)

Amtrak Improvement Act of 1979 - Amends the Rail Passenger Service Act to revise the definition of the term "basic system", as of October 1, 1979, to mean the system of intercity rail passenger service designated by the Secretary of Transportation under the Amtrak Improvement Act of 1978 and approved by the Congress. Defines the term "Route and Service Criteria" as the Criteria and Procedures for Making Route and Service Decisions.

Stipulates that one of the purposes of the National Railroad Passenger Corporation (AMTRAK) shall be to improve the ratio of revenues to expenses incurred in providing intercity rail passenger service. Substitutes the term "railroad police" for "security guards" under the provisions of the Rail Passenger Service Act which authorizes Amtrak to employ personnel to provide security and protection to rail passengers and rail property.

Exempts Amtrak from the requirement that Interstate Commerce Commission (ICC) approval be obtained prior to the issuance of securities or the assumption of any obligation or liability. Allows Amtrak to establish through routes and joint fares with any domestic or international motor, air, or water carrier. Stipulates that Amtrak shall not be subject to any State or local law pertaining to pay periods or days for payment of railroad employees. Establishes Amtrak as qualified to do business in each State and establishes the Corporation's Secretary as the authorized agent to accept service of process. States that the Corporation shall be deemed to be a citizen of the District of Columbia for purposes of determining the original jurisdiction of district courts in civil actions.

Changes the deadline by which Amtrak must submit monthly operation reports to Congress.

Stipulates that after October 1, 1979, all route additions and discontinuances by Amtrak shall be in accordance with the Route and Service Criteria.

Authorizes Amtrak to institute rail passenger service beyond that included within the basic system upon the agreement by a State, a group of States, or a regional or local agency to reimburse Amtrak for a specified percentage of solely related costs and associated capital costs of such service. Requires that five percent of all revenues generated by such service be dedicated to advertising and promotion of such service on a local level.

Authorizes Amtrak to operate commuter rail passenger service under an agreement with a State or local agency to reimburse Amtrak for the avoidable cost of operation. Requires Amtrak to continue funding and operating any commuter rail passenger service operated by Amtrak or the Consolidated Rail Corporation as of January 1, 1979, until April 1, 1981.

Requires Amtrak to operate rail passenger service over any long or short distance route which is recommended for discontinuance pursuant to the Amtrak Improvement Act of 1978 if: (1) operating expenses can be reduced; and (2) projected measurements of cost and ridership for such route for fiscal year 1980 meet specified standards. Stipulates that Amtrak must operate at least one long distance route in each quadrant of the United States provided a route exists which shows potential for meeting such standards. Terminates any such route which does not meet such standards as of October 1, 1981.

Permits Amtrak to operate short-haul trains on routes of 200 miles or less between major cities on a demonstration basis.

Authorizes appropriations through fiscal year 1981 for: (1) the payment of operating expenses of the basic system, the service instituted beyond that system, and the rail service which is continued upon meeting avoidable loss and passenger standards after being recommended for discontinuance; (2) the payment of the costs of capital acquisition or improvements to the basic system; (3) the payment of the principal amount of obligations of the Corporation which are guaranteed by the Secretary of Transportation; (4) the payment of operating and capital expenses for State-supported services operated on or after September 30, 1979; and (5) labor protection payments as a result of route eliminations. Permits Amtrak to continue to receive funds appropriated for capital grants on a quarterly basis and to use such grants for the temporary reduction of outstanding loan balances.

Amends the Rail Passenger Service Act to state that the total loan guarantee authority given to Amtrak shall be reduced by the specific amount of debt retirement authorizations provided pursuant to this Act.

Repeals the provision of such Act which requires the ICC to establish and enforce adequacy of service standards for intercity rail passenger service.

Amends the Department of Transportation Act to eliminate the two-year deadline for completion of designs and plans for intermodal terminal conversions and to allow the Secretary to determine how soon such designs and plans should be completed.

Requires Amtrak to report annually to the Congress beginning with fiscal year 1981 on the ratio of revenue to total expenses on all routes in the basic system; to specifically identify those train routes which did not achieve a 50 percent revenue-to-expense ratio; and to explain the reasons which prevented such ratios from being achieved.

Directs the Secretary, in consultation with Amtrak, to study the potential benefits and costs of a 55-mile-per-hour speed goal for Amtrak and to report the results of such study to the Congress within 12 months after the date of enactment of this Act.

Allows Amtrak to defer implementation of new route plans in instances where implementation requires operation over rail lines not in use for intercity passenger service upon the date of approval, the use of new facilities, or new labor agreements until track and facility improvements or labor agreements are made to permit service that is equivalent or improved and is consistent with the goals contained in the Amtrak Improvement Act of 1978. Permits Amtrak to provide substitute service over existing routes pending deferred implementation of such recommendations without reference to the Criteria and Procedures for Route and Service Decisions of the Rail Passenger Service Act.

Extends the authority to issue and sell fund anticipation notes under the Railroad Revitalization and Regulatory Reform Act of 1976 for one year (until September 30, 1980). Amends such Act to extend until September 30, 1980, the authority of the Secretary to provide financial assistance for the acquisition, rehabilitation, and improvement of rail facilities and equipment through the purchase of redeemable preference shares.

Prohibits the downgrading or disposal of any railroad facilities which were used for passenger service on February 1, 1979, without the approval of the Secretary. Requires a railroad to notify Amtrak of any intention to downgrade or dispose of such a facility. Permits Amtrak to elect whether to pay the costs of maintaining such facilities for passenger service or allow such downgrading or disposal. Directs Amtrak, in making such election, to consider the potential importance of restoring passenger service on the route on which such a facility is located. Requires Amtrak to conduct and update periodically a survey of population centers having railroad passenger service facilities.

Directs Amtrak to submit to Congress a study of the feasibility of restoring any intercity rail passenger train operated on February 1, 1979, which is not in service on October 1, 1979, and of operating trains on part of any such discontinued route upon a determination that the social benefits of such operation warrant the costs.

Directs the President of Amtrak to establish a system of uniform cost allocation for Amtrak which includes: (1) the avoidable cost by route; (2) the revenue by route; (3) the fully allocated cost by route; (4) the number of passengers carried by route; (5) the avoidable profit or loss by route; (6) the fully allocated profit or loss by route; (7) the profit or loss per passenger by route; and (8) the profit or loss by revenue passenger mile.

Requires the Corporation to submit a report to specified congressional committees containing: (1) a profit and loss table by route for the upcoming fiscal year, assuming a 50 percent Government reimbursement of the fully allocated losses experienced by each such route; (2) the average ticket subsidy required to show a systemwide social profit (above and beyond such Government reimbursement) for the upcoming fiscal year; and (3) a five-year financial plan for such routes. Directs the President of Amtrak to: (1) identify the tickets eligible for such a subsidy; and (2) submit with such report the amount of the proposed ticket subsidy, an estimate of the number of the eligible and ineligible tickets for each route which will be sold the next year, and an evaluation of the value of instituting the cost allocation system.

Amends the Railroad Revitalization and Regulatory Reform Act of 1976 to authorize the Secretary to purchase trustee certificates or redeemable preference shares of a railroad in reorganization under the Bankruptcy Act (or a railroad acquiring properties of such railroad) for the purpose of acquiring, improving, or maintaining such properties. Directs the Secretary, in determining the public benefits provided by a project, to give priority to projects which will improve or maintain competitive freight services, regardless of present levels of traffic on lines that may be affected.

Requires Amtrak to establish a reduced fare program for elderly and handicapped individuals and to transmit a report on the effects of such program to Congress. Authorizes the Federal Railroad Administration to pay Amtrak the difference between such reduced fare and full fare, not to exceed $4,500,000 per year.