[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2707 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 2707
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
June 4, 2009
Mr. Smith of Washington (for himself and Mr. Reichert) 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``National Freight
Mobility Infrastructure Act''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
TITLE I--NATIONAL FREIGHT MOBILITY INFRASTRUCTURE IMPROVEMENT PROGRAM
Sec. 101. Definitions.
Sec. 102. Establishment of program.
Sec. 103. Applications.
Sec. 104. Competitive project selection and eligibility criteria for
grants.
Sec. 105. Funding agreements.
Sec. 106. Grant requirements.
Sec. 107. Annual report.
Sec. 108. Applicability of title 23.
Sec. 109. Regulations.
TITLE II--FUNDING
Sec. 201. Establishment of National Freight Mobility Infrastructure
Fund.
Sec. 202. Freight mobility infrastructure tax.
TITLE I--NATIONAL FREIGHT MOBILITY INFRASTRUCTURE IMPROVEMENT PROGRAM
SEC. 101. DEFINITIONS.
In this title, the following definitions apply:
(1) Designated entity.--The term ``designated entity''
means--
(A) an entity designated by the chief executive
officer of a State (or the chief executive officer's
designee) as eligible to apply for and receive funding
under the program established under section 102; and
(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 section 104.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(5) State.--The term ``State'' has the meaning given such
term in section 101(a) of title 23, United States Code.
SEC. 102. ESTABLISHMENT OF PROGRAM.
(a) In General.--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) Overhead Costs.--In carrying out the program, the Secretary
shall seek to minimize administrative costs, including overhead,
enforcement, and auditing costs.
SEC. 103. APPLICATIONS.
A State or designated entity seeking to receive a grant under this
title 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.
SEC. 104. COMPETITIVE PROJECT SELECTION AND ELIGIBILITY CRITERIA FOR
GRANTS.
(a) Selection of Projects.--In carrying out this title, the
Secretary shall--
(1) award grants on a competitive basis;
(2) conduct a national solicitation for applications; and
(3) establish criteria for selecting among freight projects
of national and regional significance that include, but are not
limited to, those which enable--
(A) the construction of grade separations at
railroad, highway, and railroad-highway junctions;
(B) the construction of railroad bypasses and
spurs;
(C) the construction of railroad side tracks;
(D) the expansion of rail and highway tunnels to
accommodate larger, taller, and additional volumes of
vehicular and rail freight and container stacks;
(E) the addition of railroad track and intermodal
facilities at international gateways, land, air, and
sea ports, points of congestion, and logistic centers;
(F) highway and road construction (including
reinforcement for heavy weight vehicles and heavy
traffic volume) at international gateways, land, air,
and sea ports, points of congestion, and logistic
centers to better accommodate and speed the flow of
freight traffic;
(G) the construction and improvement of rail and
highway bridges that carry a substantial amount of
freight;
(H) the construction of highway ramps that carry a
substantial amount of freight; and
(I) the construction of highway lanes, including
lanes that segregate freight and passenger vehicular
traffic.
(b) Project Requirements.--The Secretary may approve a grant under
this title for a project only if the Secretary determines that the
project--
(1) will improve freight mobility and national freight
capacity and efficiency;
(2) is cost-effective;
(3) is based on the results of preliminary engineering;
(4) is justified based on extent to which the project--
(A) will enhance national and regional economies by
allowing for economic development, growth, and
efficiency 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; and
(B) seeks to maximize economic opportunities for
communities; and
(5) is supported by an acceptable degree of non-Federal
financial commitments, as determined under subsection (d).
(c) Selection Considerations.--In selecting a project under this
title, the Secretary shall consider the extent to which the project--
(1) improves freight mobility and national freight capacity
and efficiency;
(2) is cost effective;
(3) complements and supports the objectives of a strategic
freight plan to be developed by the State or designated entity
in accordance with such requirements as the Secretary may
prescribe;
(4) facilitates freight throughput of higher volume and
values;
(5) uses operational efficiencies, including intelligent
transportation systems, that enhance the efficiency or
effectiveness (or both) of the project;
(6) enhances national and regional economies by allowing
for economic development, growth, and efficiency;
(7) helps maintain or protect the environment;
(8) improves safety as measured by reductions in accidents,
injuries, and fatalities; and
(9) is supported by an acceptable degree of non-Federal
financial commitments, as determined under subsection (d).
(d) Non-Federal Financial Commitment.--
(1) Requirements.--In evaluating a project under this
section, the Secretary shall require that--
(A) the proposed project plan provides for the
availability of contingency amounts that the Secretary
determines to be reasonable to cover unanticipated cost
increases; and
(B) each proposed non-Federal source of capital and
operating financing is stable, reliable, and available
within the proposed project timetable.
(2) Considerations.--In assessing the stability,
reliability, and availability of proposed sources of non-
Federal financing under paragraph (1)(B), the Secretary shall
consider--
(A) existing financial commitments;
(B) the degree to which financing sources are
dedicated to the purposes proposed;
(C) any debt obligation that exists or is proposed
by the recipient for the proposed project; and
(D) 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.
(e) Project Evaluation.--
(1) 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 section and there is a reasonable likelihood that the
project will continue to meet such requirements.
(2) 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 selection
considerations, and the degree of non-Federal financial
commitment, as required under this title. In rating the
projects, the Secretary shall provide, in addition to the
overall project rating, individual ratings for each of the
project selection considerations.
(3) Priority.--The Secretary shall award grants first for
projects designated as `highly recommended' and next for
projects designated as `recommended', in an order based upon
the extent to which each project adheres to the project
selection considerations applicable to the project under this
section.
(f) Distribution Among States.--Not to exceed 10 percent of the
funds made available to carry out this title in a fiscal year may be
used to make grants for projects located in a single State.
SEC. 105. FUNDING AGREEMENTS.
(a) Full Funding Grant Agreements.--
(1) In general.--A project financed under this title 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 section 104(e).
(2) Terms.--If the Secretary makes a full funding grant
agreement with an applicant, the agreement shall--
(A) establish the terms of participation by the
United States Government in a project under this
section;
(B) establish the maximum amount of Government
financial assistance for the project;
(C) cover the period of time for completing the
project, including a period extending beyond the period
of an authorization; and
(D) make timely and efficient management of the
project easier according to the laws of the United
States.
(3) Agreement.--An agreement under this subsection
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
subsection, 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.
(b) Amounts.--The total estimated amount of future obligations of
the Government and contingent commitments to incur obligations covered
by all 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 full funding
grant agreement. The total amount covered by full funding grant
agreements may be not more than a limitation specified in law.
SEC. 106. GRANT REQUIREMENTS.
(a) Highway Construction Projects.--A grant for the construction of
a highway under this title shall be subject to all of the requirements
of title 23, United States Code.
(b) Other Terms and Conditions.--The Secretary shall require that
all grants under this title 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 the value of real property resulting
from the project assisted under this title.
(c) 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 title. A grant
for the project shall not exceed 80 percent of the project cost.
SEC. 107. 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
Commerce, Science, and Transportation 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 section
104(e); 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.
SEC. 108. APPLICABILITY OF TITLE 23.
Funds made available to carry out this title 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 title.
SEC. 109. 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 title.
TITLE II--FUNDING
SEC. 201. 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 amounts
transferred to the Fund under section 4286 of the Internal Revenue Code
of 1986.
(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 2011 to 2036, without further appropriation, 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. 202. FREIGHT MOBILITY INFRASTRUCTURE TAX.
(a) Imposition of Tax.--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 after the final
segment of transportation in the United States.
``(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'.
``(f) Exemption for United States and Possessions and State and
Local Governments.--Subsection (a) shall not apply to the
transportation of property purchased for the exclusive use of the
United States, or any State or political subdivision thereof. For
purposes of the preceding sentence, the term `State' includes the
District of Columbia.''.
(b) 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''.
(c) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury shall issue
regulations to carry out the amendments made by this section.
(d) Effective Date.--The amendments made by this section shall
apply to transportation beginning on or after the last day of the 180-
day period beginning on the date of the issuance of regulations under
subsection (c).
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