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The major concerns in state-of-the-art model reduction algorithms are: achieving accurate models of sufficiently small size, numerically stable and efficient generation of the models, and preservation of system properties such as passivity. Algorithms, such as PRIMA, generate guaranteed-passive models for systems with special internal structure, using numerically stable and efficient Krylov-subspace iterations. Truncated balanced realization (TBR) algorithms, as used to date in the design automation community, can achieve smaller models with better error control, but do not necessarily preserve passivity. In this paper, we show how to construct TBR-like methods that generate guaranteed passive reduced models and in addition are applicable to state-space systems with arbitrary internal structure.