The RTL-II sets were sent to Super Steel Schenectady in the summer of 2000 for rebuilding into the newest generation, the RTL-III. The trainsets were all renumbered in 2001 to prevent duplicate numbers with the newly-arriving P-42s and were painted in new Acela-style livery.[2] A prototype was tested on the night of February 15, 2003, reaching 125 mph.[3] Two of these trainsets were built and entered into revenue service in April 2003, and a third set was sent to Albany in September of the same year but was never entered into service.[4] As of September 22, 2004, all three RTL-III trainsets were in storage in Bear, Delaware (39°36′21.3119″N 75°42′0.0216″W) due to problems with the air conditioning system and possibly other systems.
Two rebuilt RTL III Turboliner trainsets sit at the Albany Diesel Shops during their brief return to service in 2003.
The original RTL-III program envisioned seven five-car trains, and Amtrak and New York State DOT attempted to renegotiate the configurations with the possibility of adding an additional coach to existing trainsets. In the summer of 2004, negotiations stopped, and the state of New York sued Amtrak over the alleged lack of support to bring 125 mph (201 km/h) train service back to the Empire State.
In April 2005, New York State reached a settlement with Super Steel to completely close the rehabilitation project for $5.5 million dollars, to stop work on the project, cover any remaining costs, and move four unfinished trains into storage at a nearby industrial park.[5][6] This money was spent in addition to the $64.8 million already spent on the project at that point, bringing the total project cost to $70.3 million with absolutely no outcome or service. On December 12, 2007, Amtrak settled New York State's lawsuit with a payment of $20 million, and both Amtrak and New York State agreed to commit $10 million each to implement track improvements in the Empire Corridor following the findings of the New York State Senate High-Speed Rail Task Force.[7][8]