[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7117 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7117

   To establish a program to improve freight mobility in the United 
States, to establish the National Freight Mobility Infrastructure Fund, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 26, 2008

   Mr. Smith of Washington introduced the following bill; which was 
referred to the Committee on Transportation and Infrastructure, and in 
    addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
   To establish a program to improve freight mobility in the United 
States, to establish the National Freight Mobility Infrastructure Fund, 
                        and for other purposes.

    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 ``National Freight Mobility 
Infrastructure Act''.

SEC. 2. FREIGHT MOBILITY INFRASTRUCTURE IMPROVEMENT PROGRAM.

    (a) Establishment of Program.--The Secretary shall establish a 
program to provide grants to States and designated entities for 
projects to improve the efficiency of freight mobility in the United 
States.
    (b) Definitions.--In this section, the following definitions apply:
            (1) Designated entity.--The term ``designated entity'' 
        means--
                    (A) an entity designated by the chief executive 
                officer of a State, the Mayor of the District of 
                Columbia, or the designee of either, as eligible to 
                apply for and receive funding under the program 
                established under subsection (a); or
                    (B) a regional authority if the authority is 
                responsible under the laws of a State for a capital 
                project.
            (2) Eligible project costs.--The term ``eligible project 
        costs'' means the--
                    (A) reimbursement of the costs of development phase 
                activities, including planning, feasibility analysis, 
                revenue forecasting, environmental review, preliminary 
                engineering and design work, and other preconstruction 
                activities; and
                    (B) the costs of construction, reconstruction, 
                rehabilitation, and acquisition of real property 
                (including land related to the project and improvements 
                to land), environmental mitigation, construction 
                contingencies, acquisition of equipment, and 
                operational improvements.
            (3) Eligible project.--The term ``eligible project'' means 
        any freight mobility infrastructure project that meets the 
        criteria established in subsection (d).
            (4) State.--The term ``State'' has the meaning given such 
        term in section 101(a) of title 23, United States Code.
    (c) Applications.--A State or designated entity seeking to receive 
a grant under this section for an eligible project shall submit to the 
Secretary an application in such form and in accordance with such 
requirements as the Secretary may require.
    (d) Competitive Grant Selection and Eligibility Criteria for 
Grants.--
            (1) In general.--The Secretary shall--
                    (A) award grants on a competitive basis;
                    (B) conduct a national solicitation for 
                applications; and
                    (C) establish criteria for selecting among freight 
                projects of national and regional significance that 
                include, but are not limited to, those which enable--
                            (i) the construction of grade separations 
                        at railroad, highway, and railroad-highway 
                        junctions;
                            (ii) the construction of railroad bypasses 
                        and spurs;
                            (iii) the construction of railroad side 
                        tracks;
                            (iv) the expansion of rail and highway 
                        tunnels to accommodate larger, taller, and 
                        additional volumes of vehicular and rail 
                        freight and container stacks;
                            (v) the addition of railroad track and 
                        intermodal facilities at international 
                        gateways, land, air, and sea ports, points of 
                        congestion, and logistic centers;
                            (vi) highway and road construction at 
                        international gateways, land, air, and sea 
                        ports, points of congestion, and logistic 
                        centers to better accommodate freight traffic;
                            (vii) the construction and improvement of 
                        rail and highway bridges that carry a 
                        substantial amount of freight;
                            (viii) the construction of highway ramps 
                        that carry a substantial amount of freight; and
                            (ix) the construction of highway lanes, 
                        including lanes that segregate freight and 
                        passenger vehicular traffic.
            (2) Project requirements.--The Secretary may approve a 
        grant under this section for a project only if the Secretary 
        determines that the project--
                    (A) is based on the results of preliminary 
                engineering;
                    (B) is justified based on extent to which the 
                project--
                            (i) will enhance national and regional 
                        economies by allowing for economic development 
                        and growth, as measured by--
                                    (I) the impact on the Nation's 
                                gross domestic product;
                                    (II) increases in new businesses 
                                and jobs and retention of existing 
                                businesses and jobs;
                                    (III) State and local tax receipts; 
                                and
                                    (IV) improved safety as measured by 
                                reductions in accidents, injuries, and 
                                fatalities;
                            (ii) seeks to maximize economic 
                        opportunities for communities, including 
                        increasing local hiring;
                            (iii) is cost-effective; and
                            (iv) will improve freight mobility and 
                        national freight capacity and efficiency; and
                    (C) is supported by an acceptable degree of non-
                Federal financial commitments.
            (3) Selection considerations.--In selecting a project under 
        this section, the Secretary shall consider the extent to which 
        the project--
                    (A) improves freight mobility and national freight 
                capacity and efficiency;
                    (B) uses operational efficiencies, including 
                intelligent transportation systems, that enhance the 
                efficiency, effectiveness, or both the efficiency and 
                effectiveness of the project;
                    (C) helps maintain or protect the environment; and
                    (D) complements and supports the objectives of the 
                State or designated entity applicant's strategic 
                freight plan.
            (4) Preliminary engineering.--In evaluating a project under 
        paragraph (2)(A), the Secretary shall analyze and consider the 
        results of preliminary engineering for the project.
            (5) Non-federal financial commitment.--
                    (A) Evaluation of project.--In evaluating a project 
                under paragraph (2)(C), 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 non-Federal source of 
                        capital and operating financing is stable, 
                        reliable, and available within the proposed 
                        project timetable.
                    (B) Considerations.--In assessing the stability, 
                reliability, and availability of proposed sources of 
                non-Federal financing under subparagraph (A), the 
                Secretary shall consider--
                            (i) existing financial 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 
                        non-Federal financial commitment that exceeds 
                        the required non-Federal share of the cost of 
                        the project.
            (6) Regulations.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall issue regulations on 
        the manner in which the Secretary will evaluate and rate the 
        projects based on the results of preliminary engineering, 
        project justification, and the degree of non-Federal financial 
        commitment, as required under this subsection.
            (7) Project evaluation and rating.--
                    (A) In general.--A proposed project 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.
                    (B) Evaluation and rating.--In making such 
                findings, the Secretary shall evaluate and rate the 
                project as ``highly recommended'', ``recommended'', or 
                ``not recommended'' based on the results of preliminary 
                engineering, the project justification criteria, and 
                the degree of non-Federal financial commitment, as 
                required under this subsection. 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 
                paragraph (6).
    (e) Letters of Intent and Full Funding Grant Agreements.--
            (1) Letter of intent.--
                    (A) In general.--The Secretary may issue a letter 
                of intent to an applicant announcing an intention to 
                obligate, for a project under this section, an amount 
                from future available budget authority specified in law 
                that is not more than the amount stipulated as the 
                financial participation of the Secretary in the 
                project.
                    (B) Notification.--At least 60 days before issuing 
                a letter under subparagraph (A) or entering into a full 
                funding grant agreement, the Secretary shall notify in 
                writing the Committee on Transportation and 
                Infrastructure of the House of Representatives and the 
                Committee on Environment and Public Works of the Senate 
                of the proposed letter or agreement. The Secretary 
                shall include with the notification a copy of the 
                proposed letter or agreement as well as the evaluations 
                and ratings for the project.
                    (C) Not an obligation.--The issuance of a letter is 
                deemed not to be an obligation under sections 1108(c), 
                1108(d), 1501, and 1502(a) of title 31, United States 
                Code, or an administrative commitment.
                    (D) Obligation or commitment.--An obligation or 
                administrative commitment may be made only when 
                contract authority is allocated to a project.
            (2) Full funding grant agreement.--
                    (A) In general.--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 subsection (d)(7).
                    (B) Terms.--If the Secretary makes 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 section;
                            (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 laws of 
                        the United States.
                    (C) Agreement.--An agreement under this paragraph 
                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 paragraph, 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.
            (3) Amounts.--The total estimated amount of future 
        obligations of the Government and contingent commitments to 
        incur obligations covered by all outstanding letters of intent 
        and full funding grant agreements may be not more than the 
        greater of the amount authorized to carry out this section or 
        an amount equivalent to the last 2 fiscal years of funding 
        authorized to carry out this section less an amount the 
        Secretary reasonably estimates is necessary for grants under 
        this section not covered by a letter. The total amount covered 
        by new letters and contingent commitments included in full 
        funding grant agreements may be not more than a limitation 
        specified in law.
    (f) Grant Requirements.--
            (1) In general.--A grant for the construction of a highway 
        under this section shall be subject to all of the requirements 
        of title 23, United States Code.
            (2) Other terms and conditions.--The Secretary shall 
        require that all grants under this section be subject to all 
        terms, conditions, and requirements that the Secretary decides 
        are necessary or appropriate for purposes of this section, 
        including requirements for the disposition of net increases in 
        value of real property resulting from the project assisted 
        under this section.
    (g) Government's Share of 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 cost of a project receiving assistance under this section. A grant 
for the project shall not exceed 80 percent of the project cost.
    (h) Annual Report.--Not later than the first Monday in February the 
year after the date of enactment of this Act and each year thereafter, 
the Secretary shall submit to the Committees on Transportation and 
Infrastructure and Appropriations of the House of Representatives and 
the Committees on Environment and Public Works and Appropriations of 
the Senate a report that includes--
            (1) a proposal on the allocation of amounts to be made 
        available to finance grants under this section;
            (2) evaluations and ratings, as required under subsection 
        (d); and
            (3) recommendations of projects for funding based on the 
        evaluations and ratings and on existing commitments and 
        anticipated funding levels for the next 3 fiscal years and for 
        the next 10 fiscal years based on information currently 
        available to the Secretary.
    (i) Applicability of Title 23.--Funds made available to carry out 
this section shall be available for obligation in the same manner as if 
such funds were apportioned under chapter 1 of title 23, United States 
Code, except that such funds shall not be transferable and shall remain 
available until expended and the Federal share of the cost of a project 
under this section shall be as provided in this section.

SEC. 3. ESTABLISHMENT OF NATIONAL FREIGHT MOBILITY INFRASTRUCTURE FUND.

    (a) Establishment of the Fund.--There is established in the 
Treasury a separate account which shall be known as the ``National 
Freight Mobility Infrastructure Fund'' (in this section referred to as 
the ``Fund'').
    (b) Deposits Into the Fund.--The account shall consist of--
            (1) amounts transferred to the Fund under section 4286 of 
        the Internal Revenue Code of 1986; and
            (2) amounts deposited into the Fund under section 13031(f) 
        of the Consolidated Omnibus Budget Reconciliation Act of 1985 
        (19 U.S.C. 58c(f)).
    (c) Expenditures From Fund.--
            (1) In general.--Amounts in the account shall be made 
        available to the Secretary of Transportation for each of the 
        fiscal years 2010 to 2035, as provided in appropriations Acts, 
        for making expenditures to meet the obligations of the United 
        States to carry out this Act.
            (2) Administrative expenses.--Not more than 4 percent of 
        the amounts made available to the Secretary under this section 
        for a fiscal year may be used for administrative expenses of 
        the Secretary in carrying out this Act.

SEC. 4. FREIGHT MOBILITY INFRASTRUCTURE FEE AND TAX.

    (a) Imposition of Tax.--
            (1) In general.--Chapter 33 of the Internal Revenue Code of 
        1986 is amended by adding after subchapter C the following new 
        subchapter:

       ``Subchapter D--Transportation by Freight Rail and Highway

``Sec. 4286. Imposition of tax.

``SEC. 4286. IMPOSITION OF TAX.

    ``(a) In General.--There is hereby imposed upon taxable ground 
transportation of property within the United States a tax equal to 1 
percent of the fair market value of such transportation.
    ``(b) Fair Market Value of Taxable Ground Transportation.--
            ``(1) Transportation by unrelated persons.--In the case of 
        amounts paid to an unrelated person engaged in the business of 
        transporting property by freight rail or highway for hire, the 
        fair market value shall be the amount paid for transporting 
        such property.
            ``(2) Transportation by related persons.--In the case of 
        transportation of property by the taxpayer or a person related 
        to the taxpayer, the fair market value of such transportation 
        shall be the amount which would be paid for transporting such 
        property if such property were transported by an unrelated 
        person, determined on an arms' length basis.
    ``(c) By Whom Paid.--
            ``(1) In general.--Except as provided by paragraph (2), the 
        tax imposed by subsection (a) shall be paid--
                    ``(A) by the person making the payment subject to 
                tax; or
                    ``(B) in the case of transportation by a related 
                person, by the person for whom such transportation is 
                made.
            ``(2) Payments made outside the united states.--If a 
        payment subject to tax under subsection (a) is made outside the 
        United States and the person making such payment does not pay 
        such tax, such tax shall be paid by the person to whom the 
        property is delivered in the United States by the person 
        furnishing the last domestic segment of the taxable ground 
        transportation in respect of which such tax is imposed.
            ``(3) Determinations of amounts paid in certain cases.--For 
        purposes of this section, rules similar to the rules of section 
        4271(c) shall apply.
    ``(d) Transfer of Amounts Equivalent to Tax to National Freight 
Mobility Infrastructure Fund.--There are hereby appropriated to the 
National Freight Mobility Infrastructure Fund amounts equivalent to the 
taxes received in the Treasury under subsection (a).
    ``(e) Definitions.--For purposes of this part--
            ``(1) Taxable ground transportation.--The term `taxable 
        ground transportation' means transportation of property by--
                    ``(A) freight rail; or
                    ``(B) commercial motor vehicle (as defined in 
                section 31101(1) of title 49, United States Code) for a 
                distance of more than 50 miles.
            ``(2) Related person.--A person (hereinafter in this 
        paragraph referred to as the `related person') is related to 
        any person if the related person bears a relationship to such 
        person specified in section 267(b) or 707(b)(1), or the related 
        person and such person are engaged in trades or businesses 
        under common control (within the meaning of subsections (a) and 
        (b) of section 52). For purposes of the preceding sentence, in 
        applying section 267(b) or 707(b)(1), `10 percent' shall be 
        substituted for `50 percent'.''.
            (2) Exemption for united states and possessions.--Section 
        4293 of such Code is amended by striking ``subchapter B'' and 
        inserting ``subchapters B and D''.
            (3) Credits or refunds to persons who collected certain 
        taxes.--Section 6415 of such Code is amended by striking ``or 
        4271'' each place it appears and inserting ``4271, or 4286''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to transportation beginning on or after the first 
        October 1 beginning on or after the date of the enactment of 
        this Act.
    (b) Freight Mobility Customs Fee.--
            (1) Fee assessment.--Subsection (a) of section 13031 of the 
        Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
        U.S.C. 58c(a)) is amended by adding at the end the following 
        new paragraph:
            ``(11) For carrying out the purposes of the National 
        Freight Mobility Infrastructure Act, a fee in addition to the 
        fee assessed under paragraph (9), in an amount equal to 25 
        percent of the fee assessed under paragraph (9).''.
            (2) Disposition of fee.--Subsection (f) of section 13031 of 
        the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
        U.S.C. 58c(f)) is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``, 
                        and'' and inserting a semicolon;
                            (ii) in subparagraph (B), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(C) the fees collected under subsection (a)(11) 
                of this section and deposited under paragraph (7) into 
                the National Freight Mobility Infrastructure Fund 
                established by the National Freight Mobility 
                Infrastructure Act.''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(7) In the first fiscal year beginning after the date of 
        the enactment of the National Freight Mobility Infrastructure 
        Act, and each fiscal year thereafter, there shall be deposited 
        into the National Freight Mobility Infrastructure Fund 
        established by such Act, fees collected under subsection 
        (a)(11).''.

SEC. 5. REGULATIONS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of Transportation shall issue regulations to carry out 
this Act.
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