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United States Railway Association, Final System Plan for Restructuring Railroads in the Northeast and Midwest Region Pursuant to the Regional Rail Reorganization Act of 1973, Vol. I, p. 42 (July 26, 1975). The plan for the ownership of resources was based in part on the principle that "[w]here freight and passenger operations both use a facility, the dominant user should own the facility and bear all the costs of that facility except those which could be avoided if the minority user were not present.' Id., at 41. The designations required by section 206 (c) (1) (C) of Pub. L. No. 93236 are contained in volume I of the Plan, Part II, Appendix Section C, pages 323-326.

On February 5, 1976, Congress enacted the Railroad Revitalization and Regulatory Reform Act of 1976, Pub. L. No. 94-210, 90 Stat. 31. Section 701(b) of Pub. L. No. 94-210, 90 Stat. 120, provides as follows:

"TRANSFER OF RAIL PROPERTIES.--The Corporation [ConRail],
on the date of conveyance pursuant to section 303(b)(1) of the
Regional Rail Reorganization Act of 1973 (45 U.S.C. 743), shall,
by purchase or lease, transfer to the National Railroad Passenger
Corporation all rail properties designated pursuant to sec-
tion 206 (c) (1) (C) and 601 (d) of the Regional Rail Reorganization
Act of 1973 (45 U.S.C. 716(c)(1)(C) and 791(d)), and it shall,
within 180 days after the date of enactment of this title,
execute agreements providing for the National Railroad Passenger
Corporation to assume (1) all operational responsibility for
intercity rail passenger services with respect to such prop-
erties, and (2) control and maintenance of the properties
transferred. Such parties may agree to retaining or transfer-
ring, in whole or in part, operational responsibility for rail
freight or commuter rail services in the area specified."

Section 704 (a) (3) (B), 90 Stat. 123, authorized the appropriation to the Secretary of Transportation, for payment to Amtrak, of "$85,182,956 to acquire the properties of the Northeast Corridor." Section 705 (b), designated as a "conforming amendment," amended section 601 (d) (1) of Pub. L. No. 93-236, supra, to read as follows:

"Rail properties designated in accordance with sec-
tion 206(c) (1) (C) of this Act shall be purchased or leased
by the National Railroad Passenger Corporation. The Corpora-
tion shall negotiate an appropriate sale or lease agreement
with the National Railroad Passenger Corporation for the
properties designated for transfer pursuant to sec-
tion 206(c)(1)(C) of this Act (45 U.S.c. 716(c)(1)(C)),
which shall take effect on the date of conveyance of such
properties to the Corporation."

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Section 706(b) of S. 2718, the derivative source of section 705(b), had directed Amtrak to purchase the Northeast Corridor properties. The section was revised in conference, at the suggestion of DOT, to give Amtrak the authority to lease as well as purchase. H. R. Rep. No. 94-768, 180 (1975).

Amtrak was established pursuant to the Rail Passenger Service Act of 1970, 45 U.S.c. $$ 501 et seq. It is a for-profit corporation whose purpose is to "provide intercity rail passenger service" and, like ConRail, is not an "agency or establishment of the United States Government." 45 U.S.C. § 541 (1970). In 31 U.S.C. § 856(6) (Supp. IV, 1974) it is (as is ConRail) designated as a mixed-ownership Government corporation.

Government financial assistance to Amtrak has taken two forms--grants and loan guarantees, authorized by 45 U.S.C. §§ 601 and 602 respectively. In 1972, Congress limited the application of funds obtained under guaranteed loans to capital expenditures. Pub. L. No. 92-316 (June 22, 1972), § 9, 86 Stat. 227, 231. See our decisions at B-175155, September 29, 1972; B-175155(2), April 22, 1975. Sections 601 and 602 were most recently amended by the Amtrak Improvement Act of 1975, Pub. L. No. 94-25 (May 26, 1975), §§ 10 and 11, 89 Stat. 90, 92. Pertinent portions of the current version of sections 601 and 602 are set forth below:

"§ 601. Authorization of appropriations

"(a) There are authorized to be appropriated to the Secretary for the benefit of the Corporation in fiscal year 1971, $40,000,000, and in subsequent fiscal years through June 30, 1975, a total of $597,300,000. There are authorized to be appropriated to the Secretary for the benefit of the Corporation (1) for the payment of operating expenses for the basic system, and for operating and capital expenses of intercity rail passenger service provided pursuant to section 563(b) of this title, $350,000,000 for fiscal year 1976, $105,000,000 for the transition period of July 1, 1976, through September 30, 1976 (hereafter in this section referred to as the 'transition period') and $355,000,000 for fiscal year 1977; and (2) for the payment of capital expenditures of the basic system, $110,000,000 for fiscal year 1976; $25,000,000 for the transition period; and $110,000,000 for fiscal year 1977. Of the amounts authorized by clause (1) of the preceding sentence, not more than $25,000,000 for fiscal year 1976, $7,000,000 for the transition period, and $30,000,000 for fiscal year 1977 shall be available for payment of operating and capital expenses of intercity rail passenger service provided pursuant to section 563(b) of this title. Funds appropriated pursuant to such authorization shall be made available to the Secretary

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during the fiscal year for which appropriated and shall
remain available until expended. Such sums shall be
paid by the Secretary to the Corporation for expenditure
by it in accordance with spending plans approved by Con-
gress at the time of appropriation and general guidelines
established annually by the Secretary. Payments by the
Secretary to the Corporation of appropriated funds shall be
made no more frequently than every 90 days, unless the
Corporation, for good cause, requests more frequent payment
before the expiration of any 90-day period."

"$602. Guarantee of loans

"(a) The Secretary is authorized, on such terms and
conditions as he may prescribe, and with the approval of
the Secretary of the Treasury, to guarantee any lender or
lessor against loss of principal and interest or other
contractual commitments, including rentals, on securities,
obligations, leases, or loans (including refinancing thereof)
issued to finance the upgrading of roadbeds, and the purchase
or lease by the Corporation or an agency of new rolling stock,
rehabilitation of existing rolling stock, reservation systems,
switch and signal systems, and other capital equipment and
facilities necessary for the improvement of rail passenger
service. The maturity date or term of such securities,
obligations, leases, or loans, including all extensions and
renewals thereof, shall not be later than 20 years from their
date of issuance."

Pub. L. No. 94-25 did not provide any additional loan authority, the ceiling remaining at $900,000,000 [45 U.S.C. § 602(d)], and, for the first time, provided specific authorization for capital grants under section 601. H. R. Rep. No. 94-119, 7 (1975).

The basic appropriation for grants to Amtrak for the current fiscal year is contained in title I, Department of Transportation and Related Agencies Appropriation Act, 1976, and the period ending September 30, 1976, Pub. L. No. 94-134 (November 24, 1975), 89 Stat. 695, 704:

"GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION

"To enable the Secretary of Transportation to make
grants to the National Railroad Passenger Corporation,
$440,000,000, to remain available until expended, of
which not more than $328,600,000 shall be available for
operating losses incurred by the Corporation, and of which
$1,500,000 shall be available for a rail passenger terminal
and facilities at Baltimore-Washington International Airport.

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"For 'Grants to the National Railroad Passenger Corporation for the period July 1, 1976, through September 30, 1976, $124,700,000, to remain available until expended, of which not more than $99,700,000 shall be available for operating losses incurred by the

Corporation."

These amounts include the amounts authorized by Pub. L. No. 94-25 for capital grants. H.R. Rep. No. 94-331, 32 (1975).

In addition, Congress made supplemental railroad appropriations o March 30, 1976, by Pub. L. No. 94-252, 90 Stat. 293, providing for add tional grants to Amtrak as follows:

"For additional amounts for 'Grants to the National
Railroad Passenger Corporation', $36,500,000 to remain
available until expended: Provided, That not to exceed
$21,200,000 in fiscal year 1976 and $5,300,000 in the period
July 1, 1976, through September 30, 1976, shall be available
for additional operating expenses for the Corporation in con-
nection with the Corporation's additional operating respon-
sibilities over the rail properties of the Northeast Corridor;
non-recurring costs related to the initial assumption of control
and responsibility for maintaining rail operations on the
Northeast Corridor, $10,000,000."

The Amtrak appropriations were added by the Senate and originally included $85,182,956 as the "cost specified in the final system plan *** for the purchase of the Northeast Corridor." S. Rep. No. 94-637, 3 (1976). As noted previously, this amount had been authorized by Pub. L. No. 94-210. The conference committee deleted this item, commenting as follows:

"The issue of lease or purchase of the Northeast Corridor
is to be resolved by the parties involved. However, in the
event an agreement is reached pursuant to which Amtrak will
purchase the Northeast Corridor properties, the conferees
do not intend that either ConRail or Amtrak should be required
to pay any funds or properties to the present owners of the
Northeast Corridor rail properties for acquisition of such
properties."

H.R. Rep. No. 94-941, 6 (1976). The debate on the conference report on the Senate floor contained the following explanatory comments:

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"Mr. President, the Senate version of this resolution contained $85.2 million which would have allowed Amtrak to purchase the Northeast Corridor mainline from ConRail on April 1. We felt very strongly that Amtrak should have ownership of the track over which it had primary operating responsibility and where they will have control over the improvement program. The House conferees were adamant in their feeling that this bill should not contain that 'unbudgeted' amendment since it would cause the resolution to be some $100 million over the budget. After long hours of debate over this amendment in conference, it became clear that the only way to complete it was to delete the funding for this purchase but to include language in the report making it clear that the parties involved, ConRail and Amtrak, still have the option of working out either a purchase or a lease of this track. I understand they are about to complete negotiations on a purchase over time, which requires no appropriations at this time, but will cause Amtrak to incur future increased costs which must be funded. However, should a reprogramming of fiscal 1976 Amtrak appropriations be necessary to fulfill a purchase agreement, the committee has no objection to such action.

"Furthermore, the conferees recognized that Amtrak and ConRail are executing an agreement that will provide for the transfer of title to the Northeast Corridor on conveyance date in exchange for an adjustment in the moneys that ConRail would otherwise owe to Amtrak as a result of ConRail's need for trackage rights over the corridor properties for freight operations. This is an arrangement that the conferees view with favor, and feel that it provides a good middle ground between the need for Amtrak to own the properties as of conveyance date and the administration's desire not to fund any substantial improvements in rail passenger service. While I would have personally favored an appropriation of the full amount to purchase these properties right now, I feel that the essential goal of Amtrak owning the properties it will be operating and improving in conjunction with the Federal Railroad Administration can be fulfilled adequately under this arrangement.