[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3398 Introduced in House (IH)]

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108th CONGRESS
  1st Session
                                H. R. 3398

 To amend title 23, United States Code, to establish a goods movement 
 program to improve the productivity, security, and safety of freight 
                        transportation gateways.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 29, 2003

    Ms. Millender-McDonald introduced the following bill; which was 
     referred to the Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
 To amend title 23, United States Code, to establish a goods movement 
 program to improve the productivity, security, and safety of freight 
                        transportation gateways.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Goods Movement Act of 2003''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Growth in international trade has become increasingly 
        important to the welfare of the domestic economy and economic 
        security, as demonstrated by the fact that between 1970 and 
        1999 the share of the United States gross domestic product 
        accounted for by trade in goods and services grew from 10.7 
        percent to 26.9 percent.
            (2) Increased growth in international trade places a 
        disproportionate demand on our surface transportation 
        infrastructure concentrated in our major international 
        gateways, metropolitan and urban centers, and trade corridors, 
        resulting in a high concentration of freight traffic relative 
        to total vehicle movement and growing congestion which is 
        adversely affecting regional mobility, safety, security, and 
        environmental quality in affected communities and the 
        reliability and sustainability of our national transportation 
        system and the global connectivity underpinning our national 
        economy.
            (3) In the decades coinciding with completion of the 
        national defense highway and rail systems, the population of 
        the United States has grown by 40 percent since 1970, the 
        number of registered vehicles has increased by 100 percent, and 
        in concentrated areas trade-generated truck traffic has grown 
        at double-digit compounded rates while road capacity has 
        increased by only 6 percent.
            (4) Continued explosive growth in international trade puts 
        increasing pressure on public and private infrastructure, 
        particularly at global gateways, to increase throughput 
        velocity, and fuels national and regional demand for additional 
        surface transportation infrastructure at the Federal, State, 
        and local levels, and will require collaborative initiatives 
        among system users to maximize the use of existing capacity, 
        adopt best industry practices, and plan and finance system 
        improvements driven by goods movement demand.
            (5) Comprehending the nature, and systematically 
        calculating and measuring the dimensions, of this trade-
        generated demand is critically important to planning and 
        meeting the associated infrastructure needs and institutional 
        changes necessary to ensure that safe, secure, and efficient 
        movement of our Nation's goods to the ultimate consignees and 
        destinations across the Nation.
            (6) International gateway and intermodal trade corridor 
        freight infrastructure movement, research, project planning, 
        investment, and financing must be a priority in this Act.
            (7) Critical intermodal freight projects with national and 
        regional economic significance, but with associated local 
        impacts, are often difficult to shepherd, achieve consensus 
        support, and fund through the current metropolitan planning 
        process.
            (8) The importance of safe, secure, and efficient goods 
        movement to the health and welfare of the national economy 
        should recognized by the establishment of a goods movement 
        program.

SEC. 3. GOODS MOVEMENT PROGRAM.

    (a) In General.--Subchapter 1 of chapter 1 of title 23, United 
States Code, is amended by adding at the end the following:
``Sec. 165. Goods movement program
    ``(a) Establishment and Purposes.--
            ``(1) Establishment.--The Secretary shall establish a goods 
        movement program to improve the productivity, security, and 
        safety of freight transportation gateways, while mitigating 
        congestion and community impacts in the area of such gateways.
            ``(2) Purposes.--The purposes of the goods movement program 
        shall be--
                    ``(A) to facilitate and support multimodal freight 
                transportation initiatives at the State, regional, and 
                local levels in order to improve freight transportation 
                gateways and mitigate congestion in the area of such 
                gateways;
                    ``(B) to provide capital funding to address 
                infrastructure and freight operational needs at freight 
                transportation corridors and gateways;
                    ``(C) to encourage adoption of new financing 
                strategies to leverage State, local, and private 
                investment in freight transportation gateways; and
                    ``(D) to support military mobilization and 
                readiness.
    ``(b) Eligible Projects.--
            ``(1) In general.--Intermodal freight transportation 
        projects that provide community and highway benefits by 
        addressing economic, congestion, security, safety, and 
        environmental issues associated with freight transportation 
        corridors and gateways shall be eligible for funding under this 
        section.
            ``(2) Types of projects.--Projects eligible for funding 
        under paragraph (1) shall be limited to the following:
                    ``(A) Projects to facilitate access to intermodal 
                freight transfer facilities.
                    ``(B) Projects on--
                            ``(i) National Highway System routes 
                        connecting to intermodal freight terminals 
                        identified according to criteria set forth in 
                        the report to Congress entitled `Pulling 
                        Together: The National Highway System and its 
                        Connections to Major Intermodal Terminals', 
                        dated May 24, 1996, and any modifications to 
                        these connections consistent with subparagraph 
                        (D); and
                            ``(ii) the Strategic Highway Network 
                        (commonly known as `STRAHNET'), including 
                        connectors to strategic military deployment 
                        ports.
                    ``(C) Projects on high priority corridors 
                identified in section 1105(c) of the Intermodal Surface 
                Transportation Act of 1991 (105 Stat. 2032).
                    ``(D) Projects to separate railroad and road 
                crossings and make other railroad and road interface 
                improvements.
    ``(c) Selection Criteria.--In selecting projects under the goods 
movement program, the Secretary shall give priority to a project that 
exhibits the following criteria:
            ``(1) Enhances national, regional, and local economies by 
        allowing for economic development and growth, as measured by--
                    ``(A) impact on the Nation's gross domestic 
                product;
                    ``(B) increases in new businesses and jobs;
                    ``(C) State and local tax receipts;
                    ``(D) changes in prices and manufacturing 
                efficiencies; and
                    ``(E) improved safety as measured by reductions in 
                accidents, injuries, and fatalities.
            ``(2) Seeks to maximize economic opportunities for 
        communities, including increasing local hiring.
            ``(3) Considers factors such as improved mobility, 
        congestion relief, energy consumption, air pollution, and noise 
        pollution.
            ``(4) Demonstrates availability of local resources to 
        augment the transportation infrastructure.
            ``(5) Leverages incremental funding as measured by non-
        Federal, public and private investment projects, and uses 
        innovative financing and local funding and financing by 
        attracting local public and private investment.
            ``(6) Integrates and deploys intelligent transportation 
        technologies.
            ``(7) Encourages and facilitates regional partnerships to 
        develop high priority corridors identified in section 1105(c) 
        of the Intermodal Surface Transportation Efficiency Act of 
        1991.
            ``(8) Encourages or facilitates major multistate or 
        regional mobility and economic growth and development in areas 
        underserved by existing highway infrastructure.
            ``(9) Reduces commercial and other travel time through a 
        major national gateway or affected port of entry expected as a 
        result of the proposed project including the level of traffic 
        delays at at-grade highway crossings of major rail lines in 
        trade corridors.
    ``(d) Grants.--
            ``(1) General authority.--
                    ``(A) Grants.--The Secretary may make grants under 
                the goods movement program to assist State and local 
                governmental authorities in financing--
                            ``(i) capital projects, including property 
                        and improvements;
                            ``(ii) the capital costs of coordinating 
                        projects under the program with other 
                        transportation modes;
                            ``(iii) the introduction of new technology, 
                        through innovative and improved products, into 
                        projects under the program;
                            ``(iv) capital projects to modernize 
                        existing corridors and gateways; and
                            ``(v) the development of corridors to 
                        support and expand the safe, secure, and 
                        efficient movement of goods, including 
                        protecting rights of way through acquisition, 
                        construction of dedicated truck and high 
                        occupancy vehicle lanes and other nonvehicular 
                        capital improvements that the Secretary may 
                        decide would result in mitigating congestion in 
                        such corridors.
                    ``(B) Terms and conditions.--The Secretary shall 
                require that all grants under the goods movement 
                program be subject to all terms, conditions, 
                requirements, and provisions the Secretary decides are 
                necessary or appropriate for the purposes of this 
                section, including requirements for the disposition of 
                net increases in the value of real property resulting 
                from the project assisted under the program.
            ``(2) Project as part of approved program of projects.--
        Except as provided in paragraph (3), the Secretary may approve 
        a grant for a project under the goods movement program only 
        after finding that the project is part of the approved program 
        of projects required under sections 134 and 135 and that an 
        applicant--
                    ``(A) has or will have the legal, financial, and 
                technical capacity to carry out the project, 
                satisfactory continuing control over the use of 
                equipment or facilities (excluding equipment and 
                facilities owned by railroads), and the capability to 
                maintain the equipment or facilities; and
                    ``(B) will maintain the equipment or facilities.
            ``(3) Criteria for grants.--
                    ``(A) In general.--The Secretary may approve a 
                grant under this section for a project under the goods 
                movement program only if the Secretary determines that 
                the proposed project is--
                            ``(i) based on the results of an 
                        alternatives analysis and preliminary 
                        engineering;
                            ``(ii) justified based on a comprehensive 
                        review of its mobility improvements, 
                        environmental benefits, cost effectiveness, and 
                        operating efficiencies; and
                            ``(iii) supported by an acceptable degree 
                        of local financial commitment, including 
                        evidence of stable and dependable financing 
                        sources to construct, maintain, and operate the 
                        system or extension.
                    ``(B) Corridor development and management plans.--
                The Secretary shall not require an applicant for a 
                grant under this section for a project to undertake 
                activities to demonstrate that the project complies 
                with the requirements of subparagraph (A) to the extent 
                that the Secretary can make a determination under 
                subparagraph (A) based on a corridor development and 
                management plan developed under section 1118(d) of the 
                Transportation Equity Act for the 21st Century (112 
                Stat. 162) and any other studies and materials 
                developed for the project under that section.
                    ``(C) Alternatives analysis and preliminary 
                engineering.--In evaluating a project under 
                subparagraph (A)(i), the Secretary shall analyze and 
                consider the results of the alternatives analysis and 
                preliminary engineering for the project.
                    ``(D) Project justification.--In evaluating a 
                project, the Secretary shall give priority 
                consideration to a project that exhibits the criteria 
                established in subsection (c).
                    ``(E) Local financial commitment.--
                            ``(i) Evaluation of project.--In evaluating 
                        a project under subparagraph (A)(iii), the 
                        Secretary shall require that--
                                    ``(I) the proposed project plan 
                                provides for the availability of 
                                contingency amounts that the Secretary 
                                determines to be reasonable to cover 
                                unanticipated cost increases; and
                                    ``(II) each proposed local source 
                                of capital and operating financing is 
                                stable, reliable, and available within 
                                the proposed project timetable.
                            ``(ii) Considerations.--In assessing the 
                        stability, reliability, and availability of 
                        proposed sources of local financing under 
                        clause (i), the Secretary shall consider--
                                    ``(I) existing grant commitments;
                                    ``(II) the degree to which 
                                financing sources are dedicated to the 
                                purposes proposed;
                                    ``(III) any debt obligation that 
                                exists or is proposed by the recipient 
                                for the proposed project; and
                                    ``(IV) the extent to which the 
                                project has a local financial 
                                commitment that exceeds the required 
                                non-Federal share of the cost of the 
                                project.
                    ``(F) Regulations.--Not later than 120 days after 
                the date of enactment of this section, the Secretary 
                shall issue regulations on the manner in which the 
                Secretary will evaluate and rate the projects based on 
                the results of alternatives analysis, project 
                justification, and the degree of local financial 
                commitment, as required under this paragraph.
                    ``(G) Project evaluation and rating.--A proposed 
                project may advance from alternatives analysis to 
                preliminary engineering, and may advance from 
                preliminary engineering to final design and 
                construction, only if the Secretary finds that the 
                project meets the requirements of this subsection and 
                there is a reasonable likelihood that the project will 
                continue to meet such requirements. In making such 
                findings, the Secretary shall evaluate and rate the 
                project as `highly recommended', `recommended', or `not 
                recommended', based on the results of alternatives 
                analysis, the project justification criteria, and the 
                degree of local financial commitment, as required under 
                this paragraph. In rating the projects, the Secretary 
                shall provide, in addition to the overall project 
                rating, individual ratings for each of the criteria 
                established under the regulations issued under 
                subparagraph (F).
                    ``(H) Full funding grant agreement.--A project 
                financed under this subsection shall be carried out 
                through a full funding grant agreement. The Secretary 
                shall enter into a full funding grant agreement based 
                on the evaluations and ratings required under this 
                subsection. The Secretary shall not enter into a full 
                funding grant agreement for a project unless that 
                project is authorized for final design and 
                construction.
            ``(4) Full funding grant agreements and early systems work 
        agreements.--
                    ``(A) Full funding grant agreements.--
                            ``(i) In general.--The Secretary may make a 
                        full funding grant agreement with an applicant. 
                        The agreement shall--
                                    ``(I) establish the terms of 
                                participation by the United States 
                                Government in a project under this 
                                subsection;
                                    (II) establish the maximum amount 
                                of Government financial assistance for 
                                the project;
                                    (III) cover the period of time for 
                                completing the project, including a 
                                period extending beyond the period of 
                                an authorization; and
                                    (IV) make timely and efficient 
                                management of the project easier 
                                according to the law of the United 
                                States.
                            ``(ii) Obligation of amounts.--An agreement 
                        under this subparagraph obligates an amount of 
                        available budget authority specified in law and 
                        may include a commitment, contingent on amounts 
                        to be specified in law in advance for 
                        commitments under this subparagraph, to 
                        obligate an additional amount from future 
                        available budget authority specified in law. 
                        The agreement shall state that the contingent 
                        commitment is not an obligation of the 
                        Government. Interest and other financing costs 
                        of efficiently carrying out a part of the 
                        project within a reasonable time are a cost of 
                        carrying out the project under a full funding 
                        grant agreement, except that eligible costs may 
                        not be more than the cost of the most favorable 
                        financing terms reasonably available for the 
                        project at the time of borrowing. The applicant 
                        shall certify, in a way satisfactory to the 
                        Secretary, that the applicant has shown 
                        reasonable diligence in seeking the most 
                        favorable financing terms. The amount 
                        stipulated in an agreement under this 
                        subparagraph for a project shall be sufficient 
                        to complete at least an operable segment.
                    ``(B) Early systems work agreements.--
                            ``(i) In general.--The Secretary may make 
                        an early systems work agreement with an 
                        applicant if a record of decision under the 
                        National Environmental Policy Act of 1969 (42 
                        U.S.C. 4321 et seq.) has been issued on the 
                        project and the Secretary finds there is reason 
                        to believe--
                                    ``(I) a full funding grant 
                                agreement for the project will be made; 
                                and
                                    ``(II) the terms of the work 
                                agreement will promote ultimate 
                                completion of the project more rapidly 
                                and at less cost.
                            ``(ii) Obligation of amounts.--A work 
                        agreement under this subparagraph obligates an 
                        amount of available budget authority specified 
                        in law and shall provide for reimbursement of 
                        preliminary costs of carrying out the project, 
                        including land acquisition, timely procurement 
                        of system elements for which specifications are 
                        decided, and other activities the Secretary 
                        decides are appropriate to make efficient, 
                        long-term project management easier. A work 
                        agreement shall cover the period of time the 
                        Secretary considers appropriate. The period may 
                        extend beyond the period of current 
                        authorization. Interest and other financing 
                        costs of efficiently carrying out the work 
                        agreement within a reasonable time are a cost 
                        of carrying out the agreement, except that 
                        eligible costs may not be more than the cost of 
                        the most favorable financing terms reasonably 
                        available for the project at the time of 
                        borrowing. The applicant shall certify, in a 
                        way satisfactory to the Secretary, that the 
                        applicant has shown reasonable diligence in 
                        seeking the most favorable financing terms. If 
                        an applicant does not carry out the project for 
                        reasons within the control of the applicant, 
                        the applicant shall repay all Government 
                        payments made under the work agreement plus 
                        reasonable interest and penalty charges the 
                        Secretary establishes in the agreement.
                    ``(C) Total of future obligations.--The total 
                estimated amount of future obligations of the 
                Government and contingent commitments to incur 
                obligations covered by all outstanding letters of 
                intent, full funding grant agreements, and early 
                systems work agreements may be not more than the 
                greater of the amount authorized to carry out this 
                section, less an amount the Secretary reasonably 
                estimates is necessary for grants under this subsection 
                not covered by a letter. The total amount covered by 
                new letters and contingent commitments included in full 
                funding grant agreements and early systems work 
                agreements may be not more than a limitation specified 
                in law.
            ``(5) Government's share of net project cost.--Based on 
        engineering studies, studies of economic feasibility, and 
        information on the expected use of equipment or facilities, the 
        Secretary shall estimate the net project cost. A grant for the 
        project is for 80 percent of the net project cost, unless the 
        grant recipient requests a lower grant percentage. The 
remainder shall be provided in cash from a source other than amounts of 
the Government. Amounts that make up the remainder must be from an 
undistributed cash surplus, a replacement or depreciation cash fund or 
reserve, or new capital. A refund or reduction of the remainder may be 
made only if a refund of a proportional amount of the grant of the 
Government is made at the same time.
            ``(6) Financial plan.--A recipient of Federal financial 
        assistance for a project under this section with an estimated 
        total cost of $100,000,000 or more shall submit to the 
        Secretary an annual financial plan for the project. The plan 
        shall be based on detailed annual estimates of the cost to 
        complete the remaining elements of the project and on 
        reasonable assumptions, as determined by the Secretary, of 
        future increases in the cost to complete the project.
            ``(7) Fiscal capacity considerations.--If the Secretary 
        gives priority consideration to financing projects that include 
        more than the non-Government share required under paragraph 
        (5), the Secretary shall give equal consideration to 
        differences in the fiscal capacity of State and local 
        governments.
            ``(8) Undertaking projects in advance.--The Secretary may 
        pay the Government's share of the net project costs to a State 
        or local governmental authority that carries out any part of a 
        project described in this subsection without the aid of amounts 
        of the Government and according to all applicable procedures 
        and requirements if--
                    ``(A) the State or local governmental authority 
                applies for the payment;
                    ``(B) the Secretary approves the payment; and
                    ``(C) before carrying out the part of the project, 
                the Secretary approves the plans and specifications for 
                the part in the same way as other projects under the 
                goods movement program.
            ``(9) Reports.--Not later than the first Monday in February 
        of each year, the Secretary shall submit to the Congress a 
        report that includes a proposal on the allocation of amounts to 
        be made available to finance grants for capital projects under 
        the goods movement program for those amounts.
    ``(e) Specific Designations.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, Congress deems the following to be projects of 
        national economic significance: [To Be Supplied].
            ``(2) Reports.--Not later than October 1, 2005, and October 
        1, 2007, project recipients under this section shall submit to 
        the Secretary and the Congress a report enumerating the 
        national economic significance of the project.
    ``(f) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        out of the Highway Trust Fund (other than the Mass Transit 
        Account) to carry out this section $3,000,000,000 for each of 
        fiscal years 2004 through 2009. Of such amount, $1,500,000,000 
        per fiscal year shall be available only for carrying out 
        projects designated under subsection (e).
            ``(2) Allocation of amounts.--Not to exceed 8 percent of 
        the amounts made available to carry out this section in a 
        fiscal year may be used for planning, design, preliminary 
        engineering, and projects with a total cost of less than 
        $25,000,000.
    ``(g) Contract Authority.--Sums authorized to be appropriated to 
carry out this section shall be available for obligation in the same 
manner as funds apportioned under section 104(b)(1), except that such 
amounts shall not be counted toward a State's allocation under section 
105 and shall not be subject to any obligation limitation.''.
    (b) Conforming Amendment.--The analysis for subchapter I of chapter 
I of such title is amended by adding at the end the following:

``165. Goods movement program.''.
    (c) Repeal.--Section 1118 of the Transportation Equity Act for the 
21st Century (23 U.S.C. 101 note; 112 Stat. 161) is repealed.
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