Sec. 9605. Requirements for railroad freight cars entering service in United States
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Chapter 207 of title 49, United States Code, is amended by adding at the end the following: In this section, the following definitions apply: The term component means a part or subassembly of a railroad freight car. The term control means the power, whether direct or indirect and whether or not exercised, through the ownership of a majority or a dominant minority of the total outstanding voting interest in an entity, representation on the board of directors of an entity, proxy voting on the board of directors of an entity, a special share in the entity, a contractual arrangement with the entity, a formal or informal arrangement to act in concert with an entity, or any other means, to determine, direct, make decisions, or cause decisions to be made for the entity.
The term cost of sensitive technology means the aggregate cost of the sensitive technology located on a railroad freight car. The term country of concern means a country that— is identified by the Department of Commerce as a nonmarket economy country (as defined in section 771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18))) as of the date of enactment of the TRAIN Act ; was identified by the United States Trade Representative in the most recent report required by section 182 of the Trade Act of 1974 (19 U.S.C. 2242) as a foreign country included on the priority watch list defined in subsection (g)(3) of that section; and is subject to monitoring by the Trade Representative under section 306 of the Trade Act of 1974 (19 U.S.C.2416).
The term net cost has the meaning given the term in chapter 4 of the USMCA or any subsequent free trade agreement between the United States, Mexico, and Canada. The term qualified facility means a facility that is not owned or under the control of a state-owned enterprise. The term qualified manufacturer means a railroad freight car manufacturer that is not owned or under the control of a state-owned enterprise. The term railroad freight car means a car designed to carry freight or railroad personnel by rail, including— box car; refrigerator car; ventilator car; intermodal well car; gondola car; hopper car; auto rack car; flat car; special car; caboose car; tank car; and yard car.
The term sensitive technology means any device embedded with electronics, software, sensors, or other connectivity, that enables the device to connect to, collect data from, or exchange data with another device, including— onboard telematics; remote monitoring software; firmware; analytics; GPS satellite and cellular location tracking systems; event status sensors; predictive component condition and performance monitoring sensors; and similar sensitive technologies embedded into freight railcar components and subassemblies.
The term state-owned enterprise means— an entity that is owned by, or under the control of, a national, provincial, or local government of a country of concern, or an agency of such government; or an individual acting under the direction or influence of a government or agency described in subparagraph (A). The term substantially transformed means a component of a railroad freight car that undergoes an applicable change in tariff classification as a result of the manufacturing process, as described in chapter 4 and related Annexes of the USMCA or any subsequent free trade agreement between the United States, Mexico, and Canada.
The term USMCA has the meaning given the term in section 3 of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4502). A railroad freight car wholly manufactured on or after the date that is 1 year after the date of enactment of the TRAIN Act , may only operate on the United States freight railroad interchange system if— the railroad freight car is manufactured, assembled, and substantially transformed, as applicable, by a qualified manufacturer in a qualified facility; none of the sensitive technology located on the railroad freight car, including components necessary to the functionality of the sensitive technology, originates from a country of concern or is sourced from state-owned enterprise; and none of the content of the railroad freight car, excluding sensitive technology, originates from a country of concern or is sourced from a state-owned enterprise that has been determined by a recognized court or administrative agency of competent jurisdiction and legal authority to have violated or infringed valid United States intellectual property rights of another including such a finding by a Federal district court under title 35 or the U.S.
International Trade Commission under section 337 of the Tariff Act of 1930 (19 U.S.C. 1337). Not later than 12 months after the date of enactment of the TRAIN Act , a railroad freight car manufactured may operate on the United States freight railroad interchange system only if— not more than 20 percent of the content of the railroad freight car, calculated by the net cost of all components of the car and excluding the cost of sensitive technology, originates from a country of concern or is sourced from a state-owned enterprise; and not later than 24 months after the date of enactment of the TRAIN Act , the percentage described in clause
(i)shall be no more than 15 percent The percentages specified in this paragraph apply notwithstanding any apparent conflict with provisions of chapter 4 of the USMCA. Not later than 1 year after the date of enactment of the TRAIN Act , the Secretary of Transportation shall issue such regulations as are necessary to carry out this section, including for the monitoring, enforcement, and sensitive technology requirements of this section. To be eligible to provide a railroad freight car for operation on the United States freight railroad interchange system, the manufacturer of such car shall certify to the Secretary annually that any railroad freight cars to be so provided meet the requirements of this section. At the time a railroad freight car begins operation on the United States freight railroad interchange system, the manufacturer of such railroad freight car shall have valid certification describe under paragraph
(2)for the year in which such car begins operation. A railroad freight car manufacturer may not register, or cause to be registered, a railroad freight car that does not comply with the requirements of this section in the Association of American Railroad’s Umler system. A railroad freight car manufacturer that has manufactured a railroad freight car for operation on the United States freight railroad interchange system that the Secretary of Transportation determines, after written notice and an opportunity for a hearing, has violated this section is liable to the United States Government for a civil penalty of at least $100,000 but not more than $250,000 for each violation for each railroad freight car. The Secretary of Transportation may prohibit a railroad freight car manufacturer with respect to which the Secretary has assessed more than 3 violations under subparagraph
(A)from providing additional railroad freight cars for operation on the United States freight railroad interchange system until the Secretary determines— such manufacturer is in compliance with this section; and all civil penalties assessed to such manufacturer under subparagraph
(A)have been paid in full. . The analysis for chapter 207 of title 49, United States Code, is amended by adding at the end the following: 20704. Requirements for railroad freight cars entering service in United States. .
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Sec. 9605
Requirements for railroad freight cars entering service in United States
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