[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6291 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6291

  To provide for merit-based investment in the freight transportation 
    system of the United States to ensure economic growth, increase 
 vitality and competitiveness in national and global markets, address 
goods mobility and accessibility issues, reduce air pollution and other 
 environmental impacts of freight transportation, better public health 
  conditions, enhance energy security, and improve the condition and 
   connectivity of the freight transportation system, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 2010

Ms. Richardson introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
Committees on Ways and Means and Rules, 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 provide for merit-based investment in the freight transportation 
    system of the United States to ensure economic growth, increase 
 vitality and competitiveness in national and global markets, address 
goods mobility and accessibility issues, reduce air pollution and other 
 environmental impacts of freight transportation, better public health 
  conditions, enhance energy security, and improve the condition and 
   connectivity of the freight transportation system, 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 ``Freight is the 
Future Of Commerce in the United States Act of 2010'' or the ``Freight 
FOCUS Act of 2010''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Office of Freight Planning and Development.
Sec. 3. Freight Advisory Committee.
Sec. 4. Freight corridors of national significance program.
Sec. 5. Funding.
Sec. 6. Definitions.

SEC. 2. OFFICE OF FREIGHT PLANNING AND DEVELOPMENT.

    (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall establish in the Office of 
the Secretary an Office of Freight Planning and Development (in this 
section referred to as the ``Office'').
    (b) Assistant Secretary.--The Office shall be headed by an 
Assistant Secretary for Freight Planning and Development who shall be 
appointed by the Secretary.
    (c) Duties.--The Assistant Secretary shall--
            (1) advise the Secretary on freight issues;
            (2) carry out the freight corridors of national 
        significance program under section 4;
            (3) facilitate communication among public and private 
        stakeholders with respect to freight issues;
            (4) provide recommendations to the Secretary on funding 
        sources for projects with respect to freight; and
            (5) develop the national freight plan under subsection (d).
    (d) National Freight Plan.--Not later than 2 years after the date 
of enactment of this Act, and every 3 years thereafter, the Assistant 
Secretary shall submit to Congress and publish on the Web site of the 
Department of Transportation a national freight plan, which shall 
include--
            (1) projections relating to freight for the 20-year period 
        beginning on the date on which the plan is submitted to 
        Congress and recommendations for supporting freight movement 
        during that period;
            (2) a list of the freight corridors designated as freight 
        corridors of national significance under section 4(b);
            (3) the most recent freight corridor snapshot report 
        published under section 4(e);
            (4) an analysis of emerging and long-term trends in--
                    (A) economic and trade policies related to freight 
                movement; and
                    (B) public health and environmental conditions 
                related to freight movement; and
            (5) an assessment of challenges related to freight movement 
        and recommendations for addressing those challenges.

SEC. 3. FREIGHT ADVISORY COMMITTEE.

    (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall establish a Freight Advisory 
Committee (in this section referred to as the ``Committee'').
    (b) Membership.--The Committee shall be composed of 15 individuals 
who represent public and private stakeholders with respect to freight, 
including representatives of--
            (1) each mode of freight transportation;
            (2) ports;
            (3) shippers of freight;
            (4) metropolitan planning organizations (as that term is 
        defined in section 134(b) of title 23, United States Code) 
        serving areas in which a freight corridor is located;
            (5) State transportation agencies;
            (6) environmental protection organizations;
            (7) public health advocates;
            (8) labor; and
            (9) others determined appropriate by the Secretary.
    (c) Chairperson.--The Assistant Secretary for Freight Planning and 
Development (appointed under section 2(b)) shall be the chairperson of 
the Committee.
    (d) Meetings.--The Committee shall meet at the call of the 
chairperson at least twice each year.
    (e) Duties.--The Committee shall--
            (1) advise the Assistant Secretary on issues, projects, and 
        funding needs with respect to freight, including the 
        determination of freight priorities;
            (2) develop measures to predict growth in freight movement;
            (3) facilitate the sharing of information relating to 
        freight between public and private entities;
            (4) assist the Assistant Secretary with the development of 
        the national freight plan under section 2(d); and
            (5) assist the Assistant Secretary with the development of 
        freight corridor snapshot reports under section 4(e).

SEC. 4. FREIGHT CORRIDORS OF NATIONAL SIGNIFICANCE PROGRAM.

    (a) Establishment.--Not later than one year after the date of 
enactment of this Act, the Assistant Secretary for Freight Planning and 
Development (appointed under section 2(b)) shall establish a freight 
corridors of national significance program (in this section referred to 
as the ``Program'') in accordance with this section.
    (b) Designation of Freight Corridors of National Significance.--
            (1) In general.--Not later than one year after the date of 
        enactment of this Act, and every 3 years thereafter, the 
        Assistant Secretary shall designate the multimodal freight 
        corridors in the United States that the Assistant Secretary has 
        determined, in accordance with this subsection, are freight 
        corridors of national significance based on the importance of 
        the corridors to freight movement.
            (2) Publication.--The Assistant Secretary shall publish on 
        the Web site of the Department of Transportation a document 
        that specifies the corridors designated under paragraph (1) and 
        contains--
                    (A) a map of the corridors;
                    (B) a detailed description of the standards used to 
                designate the corridors;
                    (C) statistics supporting the designation of each 
                corridor; and
                    (D) a description of the role of each corridor in 
                supporting the economy and freight transportation 
                system of the United States.
            (3) Public participation.--The Secretary shall make 
        designations under paragraph (1) after providing notice and an 
        opportunity for public comment.
            (4) Rulemaking to determine designation standards.--
                    (A) In general.--The Assistant Secretary, in 
                consultation with the Freight Advisory Committee 
                (established under section 3(a)), shall conduct a 
                rulemaking proceeding to establish publicly available, 
                objective, and quantifiable standards for designating 
                freight corridors as freight corridors of national 
                significance under paragraph (1).
                    (B) Criteria.--The standards established under 
                subparagraph (A) shall ensure that, in designating a 
                freight corridor as a freight corridor of national 
                significance, the following criteria are accurately 
                measured and considered (with the criteria listed in 
                descending order of importance):
                            (i) The volume of freight moved along the 
                        corridor.
                            (ii) The value of freight moved along the 
                        corridor.
                            (iii) The benefits that may be generated by 
                        transportation improvements carried out along 
                        the corridor, including the creation or 
                        sustaining of jobs, expansion of business 
                        opportunities, or increasing of the gross 
                        domestic product.
                            (iv) The potential for growth in freight 
                        movement along the corridor.
                            (v) The economic, environmental, and other 
                        costs associated with traffic congestion and 
                        travel delay along the corridor.
            (5) Data collection.--
                    (A) In general.--The Assistant Secretary, in 
                consultation with the Freight Advisory Committee, shall 
                collect and review all data relating to freight 
                necessary to designate freight corridors of national 
                significance under paragraph (1) and shall consider, in 
                consultation with the heads of relevant Federal 
                agencies, methods for improving the sources of the data 
                to reduce deficiencies in the data and assist 
                projections of transportation demand.
                    (B) Projections.--The Assistant Secretary, in 
                consultation with the Freight Advisory Committee and 
                the Administrator of the Environmental Protection 
                Agency, shall analyze short- and long-term trends in 
                the movement of freight domestically and 
                internationally to assist the designation of freight 
                corridors of national significance under paragraph (1), 
                including by analyzing economic and trade policies and 
                public health and environmental conditions related to 
                freight movement.
    (c) Freight Corridor Coalitions.--
            (1) In general.--With respect to each freight corridor of 
        national significance designated under subsection (b), the 
        Assistant Secretary may designate one entity to serve as a 
        freight corridor coalition that represents the freight corridor 
        for purposes of this section.
            (2) Coalition composition.--To be eligible for designation 
        as a freight corridor coalition under paragraph (1), an entity 
        shall be composed of individuals representing each of the 
        following:
                    (A) The State transportation agency of each State 
                in which a portion of the corridor is located.
                    (B) The metropolitan planning organization (as that 
                term is defined under section 134(b) of title 23, 
                United States Code) for each area in which a portion of 
                the corridor is located.
                    (C) Each mode of freight transportation that 
                operates along the corridor.
                    (D) Each port along the corridor.
                    (E) Environmental protection organizations.
                    (F) Public health advocates.
                    (G) Labor.
                    (H) Private stakeholders, including shippers, 
                carriers, and freight-related associations.
            (3) Application process.--
                    (A) In general.--The Assistant Secretary shall 
                establish a process for entities to apply for 
                designation as a freight corridor coalition under 
                paragraph (1).
                    (B) Application.--The application of an entity for 
                designation as a freight corridor coalition under 
                paragraph (1) shall include at least the following:
                            (i) A description of the composition of the 
                        entity and how that composition meets 
                        requirements under paragraph (2).
                            (ii) A description of the proposed 
                        functions and authorities of the entity, 
                        including with respect to the performance of 
                        analysis, consensus building, and planning.
                            (iii) Information demonstrating that the 
                        entity has, or will develop, the legal, 
                        financial, technical, and political capacity 
                        and support from relevant organizations 
                        necessary to carry out the functions of a 
                        freight corridor coalition under this 
                        subsection.
                            (iv) A description of the proposed budget 
                        for the entity, including--
                                    (I) a staffing plan;
                                    (II) a spending plan; and
                                    (III) a plan for acquiring funding 
                                from sources other than grants under 
                                paragraph (4).
            (4) Grants for administrative expenses.--The Assistant 
        Secretary is authorized to make grants to a freight corridor 
        coalition designated under paragraph (1) to assist the 
        coalition with administrative expenses.
            (5) Freight corridor plan.--
                    (A) In general.--Not later than one year after the 
                date on which an entity is designated as a freight 
                corridor coalition under paragraph (1), and annually 
                thereafter, the freight corridor coalition shall submit 
                to the Assistant Secretary a freight corridor plan that 
                includes--
                            (i) a prioritized list of projects that are 
                        eligible for grant assistance under subsection 
                        (d) and that the coalition has determined will 
                        improve the freight movement performance of the 
                        freight corridor of national significance 
                        represented by the coalition;
                            (ii) an estimate of the cost of each 
                        project specified in the list under clause (i) 
                        and the aggregate cost of all listed projects;
                            (iii) a specification of a State sponsor 
                        willing to carry out each project specified in 
                        the list under clause (i) and the support that 
                        each member of the coalition shall provide the 
                        State sponsor with respect to the project;
                            (iv) a funding plan, including a 
                        specification of funding sources, for each 
                        project specified in the list under clause (i);
                            (v) a description of how projects specified 
                        in the list under clause (i) support 
                        connectivity at State borders;
                            (vi) a detailed description of the 
                        corridor, including a description of--
                                    (I) the modes of transportation 
                                that operate along the corridor;
                                    (II) the transportation facilities 
                                along the corridor;
                                    (III) the interaction of passenger 
                                and freight movement along the 
                                corridor;
                                    (IV) the performance of the 
                                corridor and projections of future 
                                corridor performance, including with 
                                respect to the speed and reliability of 
                                travel along the corridor;
                                    (V) any environmental or public 
                                health issues related to freight 
                                movement along the corridor; and
                                    (VI) any economic costs related to 
                                congestion and travel delay along the 
                                corridor; and
                            (vii) any additional information the 
                        Assistant Secretary determines appropriate.
                    (B) Project prioritization.--In determining the 
                priority of a project specified in a freight corridor 
                plan under subparagraph (A), a freight corridor 
                coalition shall consider the following:
                            (i) The schedule for completing the project 
                        and the appropriate sequencing of projects.
                            (ii) Whether the project will improve a 
                        component of a freight corridor determined to 
                        be performing poorly in a freight corridor 
                        snapshot report under subsection (e).
                            (iii) The improvement in freight movement 
                        that will result from the project and the 
                        impact of failing to carry out the project.
                            (iv) Whether the project will address a 
                        bridge in need of repair.
                            (v) The amount of non-Federal funding 
                        available for the project, including funding 
                        from public-private partnerships.
                            (vi) The benefits of the project unrelated 
                        to freight movement and whether there is 
                        funding available from nonfreight sources 
                        commensurate with those benefits.
                            (vii) Whether innovative technologies are 
                        incorporated into the project.
                            (viii) The extent to which the project will 
                        reduce air, water, or noise pollution, 
                        including through improved energy conservation 
                        or efficiency.
                            (ix) The congestion reduction benefits of 
                        the project.
                            (x) The improvement in the condition of 
                        freight movement infrastructure that will 
                        result from the project.
                            (xi) The public health and safety benefits 
                        of the project, including with respect to 
                        accident and injury reduction with a goal of 
                        reducing by 10 percent the number of fatalities 
                        related to freight transportation by the year 
                        2015.
                            (xii) Whether the project involves the 
                        replacement or repair of an existing surface 
                        transportation facility--
                                    (I) the replacement or repair of 
                                which will result in economic and 
                                mobility benefits for the United 
                                States; and
                                    (II) that, if not replaced or 
                                repaired, will likely deteriorate 
                                substantially and negatively impact the 
                                economy and transportation system of 
                                the United States.
                            (xiii) Whether the project will not be 
                        completed without Federal support.
                            (xiv) The regional and national economic 
                        development benefits of the project, including 
                        with respect to trade facilitation.
                            (xv) Whether the project will be carried 
                        out on a publicly owned site.
    (d) Grants.--
            (1) In general.--In carrying out the Program, the Assistant 
        Secretary is authorized to make a grant to any State to assist 
        any project--
                    (A) specified in paragraph (2); and
                    (B) for the improvement of freight movement.
            (2) Eligible projects.--The projects eligible for grant 
        assistance under paragraph (1) are the following:
                    (A) A project for the development or improvement of 
                a port.
                    (B) A project for the development or improvement of 
                a multimodal terminal facility.
                    (C) A project for the development or improvement of 
                a land port of entry.
                    (D) A project to improve freight rail performance, 
                including through capacity expansion.
                    (E) A project for the development or improvement of 
                a road or bridge, including a road or bridge that--
                            (i) is essential to supporting local, 
                        interregional, interstate, or international 
                        freight movement;
                            (ii) improves access to freight facilities, 
                        including ports, terminals, and distribution 
                        centers;
                            (iii) improves freight transportation to or 
                        from an international gateway, including ports, 
                        airports, and border crossings; or
                            (iv) improves access for, and the emergency 
                        capabilities of, military personnel and 
                        equipment.
                    (F) A project for the development or improvement of 
                an intelligent transportation system for freight that 
                reduces congestion and improves safety.
                    (G) A project for the development or improvement of 
                a facility that provides long-term truck parking.
                    (H) A project for the development of freight 
                movement capacity where that capacity is needed.
                    (I) A project for the development of a roadway-rail 
                grade separation.
                    (J) A dredging project or a project to develop or 
                improve a lock or dam.
                    (K) A project to benefit the environment, including 
                through the reduction of emissions determined by the 
                Assistant Secretary, in consultation with the 
                Administrator of the Environmental Protection Agency, 
                to be harmful to the environment.
                    (L) A project to improve safety or security with 
                respect to freight movement.
                    (M) A project that will improve public health.
                    (N) Any other project the Assistant Secretary 
                determines appropriate.
                    (O) Planning, preparation, or design activities 
                with respect to any project described in this 
                paragraph.
            (3) Application process.--
                    (A) In general.--The Assistant Secretary shall 
                establish a process for States to submit an application 
                for a grant under paragraph (1).
                    (B) Responses.--Without regard to whether a grant 
                is made under paragraph (1) with respect to an 
                application, the Assistant Secretary shall provide a 
                written response to each application submitted under 
                subparagraph (A) and the response shall include a 
                written determination by the Assistant Secretary that 
                the project for which the application was submitted 
                is--
                            (i) highly recommended to be carried out;
                            (ii) recommended to be carried out; or
                            (iii) not recommended to be carried out.
            (4) Priorities and consideration.--In making grants under 
        paragraph (1), the Assistant Secretary shall--
                    (A) give priority to projects listed in a freight 
                corridor plan submitted under subsection (c)(5)(A) and 
                according to the prioritization of projects in that 
                plan; and
                    (B) give consideration to the criteria specified in 
                subsection (c)(5)(B).
            (5) Federal share.--The Federal share of the cost of a 
        project assisted with a grant under paragraph (1) shall not 
        exceed 80 percent.
            (6) Projects that benefit the environment.--The Assistant 
        Secretary shall use not less than 7 percent of the amounts made 
        available for grants under paragraph (1) each fiscal year for 
        grants to assist projects that benefit the environment, 
        including through reducing emissions determined by the 
        Assistant Secretary, in consultation with the Administrator of 
        the Environmental Protection Agency, to be harmful to the 
        environment.
            (7) Projects that benefit freight security.--The Assistant 
        Secretary shall use not less than 1 percent of the amounts made 
        available for grants under paragraph (1) each fiscal year for 
        grants to assist projects that improve freight security, 
        including cargo inspection projects and education and training 
        projects related to security.
            (8) Project costs.--In carrying out this subsection, the 
        Assistant Secretary shall develop standards for estimating 
        project costs and shall evaluate the cost estimation, 
        contracting, and cost reduction practices of States that 
        receive grants under paragraph (1).
            (9) Project management and financial plans.--
                    (A) Major projects.--A recipient of a grant under 
                paragraph (1) for a project with an estimated total 
                cost of at least $500,000,000, or for any other project 
                the Assistant Secretary determines appropriate, shall 
                submit to the Assistant Secretary, with respect to the 
                project--
                            (i) a project management plan; and
                            (ii) an annual financial plan.
                    (B) Other projects.--A recipient of a grant under 
                paragraph (1) for a project with an estimated total 
                cost of at least $100,000,000, but less than 
                $500,000,000, shall prepare an annual financial plan 
                with respect to the project and shall make that plan 
                available for review at the request of the Assistant 
                Secretary.
                    (C) Project management plan.--For purposes of this 
                paragraph, a project management plan shall document, 
                with respect to a project--
                            (i) the procedures in effect to provide 
                        timely information to project decisionmakers to 
                        allow the decisionmakers to effectively manage 
                        the scope, costs, schedules, quality, and 
                        Federal requirements with respect to the 
                        project; and
                            (ii) the role of non-Federal interests in 
                        the delivery of the project.
                    (D) Financial plan.--For purposes of this 
                paragraph, a financial plan shall, with respect to a 
                project, provide detailed estimates of the costs of 
                completing the project, including potential increases 
                to those costs.
            (10) Maintenance of effort.--
                    (A) In general.--As a condition of receiving a 
                grant under paragraph (1), the Governor of the State 
                receiving the grant shall submit to the Assistant 
                Secretary a certification that the State will maintain 
                its effort with respect to the funding of freight 
                projects.
                    (B) Statement of intended funding.--As part of the 
                certification under subparagraph (A), the Governor 
                shall submit a statement to the Assistant Secretary 
                identifying the amount that the State plans to expend 
                from non-Federal sources for freight projects during 
                the 6-year period beginning on the date of the 
                submission of the certification.
                    (C) Failure to meet intended funding.--If the 
                Assistant Secretary determines that a State failed to 
                expend the amount for freight projects identified in 
                the statement under subparagraph (B), the Assistant 
                Secretary may prohibit the State from receiving a grant 
                under paragraph (1) during a period--
                            (i) not to exceed 3 years; and
                            (ii) beginning on the date on which that 
                        determination is made.
            (11) Prevailing rate of wage.--
                    (A) In general.--The Secretary shall take such 
                action as may be necessary to ensure that all laborers 
                and mechanics employed by contractors or subcontractors 
                on construction work performed on projects assisted 
                with a grant under paragraph (1) shall be paid wages at 
                rates not less than those prevailing on the same type 
                of work on similar construction in the immediate 
                locality as determined by the Secretary of Labor in 
                accordance with sections 3141, 3146, and 3147 of title 
                40, United States Code.
                    (B) Consultation.--In carrying out the duties of 
                subparagraph (A), the Secretary of Labor shall consult 
                with the relevant agency of the State in which a 
                project assisted with a grant under paragraph (1) is to 
                be performed. After giving due regard to the 
                information thus obtained, the Secretary of Labor shall 
                make a predetermination of the minimum wages to be paid 
                laborers and mechanics in accordance with the 
                provisions of subparagraph (A) which shall be set out 
                in each project advertisement for bids and in each bid 
                proposal form and shall be made a part of the contract 
                covering the project.
                    (C) Exceptions.--The provisions of this paragraph 
                shall not be applicable to employment pursuant to 
                apprenticeship and skill training programs which have 
                been certified by the Secretary as promoting equal 
                employment opportunity in connection with a 
                construction program.
            (12) Funding by mode.--
                    (A) Determination.--In making grants under 
                paragraph (1) each fiscal year, the Assistant Secretary 
                shall determine if any portion of the amounts made 
                available for the grants was generated for deposit in 
                the Goods Movement Trust Fund (established under 
                section 5(a)) by a single mode of transportation.
                    (B) Portions generated by a single mode of 
                transportation.--If the Assistant Secretary determines 
                under subparagraph (A) that any portion of the amounts 
                made available for a fiscal year for grants under 
                paragraph (1) was generated by a single mode of 
                transportation, the Assistant Secretary shall ensure 
                that at least 92.5 percent of that portion is used for 
                grants to assist projects that benefit that mode.
                    (C) Portion not generated by a single mode of 
                transportation.--If the Assistant Secretary determines 
                under subparagraph (A) that any portion of the amounts 
                made available for a fiscal year for grants under 
                paragraph (1) was generated by a single mode of 
                transportation, the Assistant Secretary shall ensure 
                that 50 percent of the portion of those amounts that 
                was not generated by a single mode of transportation is 
                used solely for grants to assist projects that benefit 
                the modes of transportation to which subparagraph (B) 
                applied that fiscal year according to the amounts 
                generated by each of those modes.
    (e) Freight Corridor Snapshot Report.--Not later than 3 years after 
the date of enactment of this Act, and annually thereafter, the 
Assistant Secretary shall publish on the Web site of the Department of 
Transportation a detailed analysis of the performance of each freight 
corridor designated as a freight corridor of national significance 
under subsection (b) and any other freight corridor determined 
appropriate for inclusion by the Assistant Secretary, including an 
analysis of congestion, safety, environmental, public health, 
infrastructure condition, and accessibility issues with respect to the 
freight corridor.

SEC. 5. FUNDING.

    (a) Goods Movement Trust Fund.--
            (1) Establishment.--
                    (A) In general.--Subchapter A of chapter 98 of the 
                Internal Revenue Code of 1986 is amended by adding at 
                the end the following:

``SEC. 9512. GOODS MOVEMENT TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Goods Movement 
Trust Fund', consisting of such amounts as may be appropriated or 
credited to such Trust Fund as provided in this section or section 
9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Goods Movement Trust Fund amounts equivalent to so much of the 
taxes received in the Treasury under section 4081 as are determined at 
the rate specified in section 4081(a)(5).
    ``(c) Appropriation of Additional Sums.--In addition to amounts 
appropriated under subsection (b), there is hereby authorized to be 
appropriated to the Goods Movement Trust Fund to make the expenditures 
referred to in subsection (d) $3,000,000,000 for each of fiscal years 
2011 through 2016.
    ``(d) Expenditures.--
            ``(1) In general.--Amounts in the Goods Movement Trust Fund 
        shall be available, as provided in appropriations Acts, only 
        for purposes of making expenditures to carry out the Freight 
        FOCUS Act of 2010.
            ``(2) Transfers from trust fund for certain repayments and 
        credits.--The Secretary shall pay from time to time from the 
        Goods Movement Trust Fund into the general fund of the Treasury 
        amounts equivalent to amounts paid under section 6433 or 
        credits allowed under section 34(a)(4).''.
                    (B) Conforming amendment.--Paragraph (1) of section 
                9503(b) of such Code is amended by adding at the end 
                the following: ``There shall not be taken into account 
                under subparagraph (D) so much of the taxes imposed by 
                section 4081 as are determined at the rate specified in 
                section 4081(a)(5).''.
                    (C) Clerical amendment.--The table of sections for 
                subchapter A of chapter 98 of such Code is amended by 
                adding at the end the following:

``Sec. 9512. Goods Movement Trust Fund.''.
            (2) Increase in diesel tax for transportation of goods by 
        highway.--
                    (A) In general.--Subsection (a) of section 4081 of 
                the Internal Revenue Code of 1986 is amended by adding 
                at the end the following:
            ``(5) Diesel fuel used for transportation of goods by 
        highway.--
                    ``(A) In general.--In the case of diesel fuel, the 
                rate in effect under paragraph (2)(A)(iii) shall be 
                increased by 12 cents.
                    ``(B) Inflation adjustment.--
                            ``(i) In general.--In the case of any 
                        diesel fuel removed, entered, or sold during 
                        any calendar year beginning after 2011, the 12 
                        cent amount under subparagraph (A) shall be 
                        increased by an amount equal to--
                                    ``(I) such amount, multiplied by
                                    ``(II) the costs of living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year, 
                                determined by substituting `calendar 
                                year 2010' for `calendar year 1992' in 
                                subparagraph (B) thereof.
                            ``(ii) Rounding.--Any increase under clause 
                        (i) shall be rounded to the nearest multiple of 
                        one-tenth of 1 cent.''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to fuel removed, entered, or sold 
                after September 30, 2011.
            (3) Diesel fuel not used for movement of goods by 
        highway.--
                    (A) In general.--Subchapter B of chapter 65 of the 
                Internal Revenue Code of 1986 is amended by adding at 
                the end the following:

``SEC. 6433. DIESEL FUEL NOT USED FOR MOVEMENT OF GOODS BY HIGHWAY.

    ``(a) In General.--In the case of diesel fuel on the sale of which 
tax was imposed by section 4081 and which is used for any purpose other 
than in the trade or business of moving goods by highway, the Secretary 
shall pay (without interest) to the ultimate purchaser of such fuel an 
amount equal to the product of the number of gallons of such fuel so 
used multiplied by the rate specified in section 4081(a)(5).
    ``(b) Filing of Claims.--Claims filed under subsection (a) shall be 
filed at such time and in such form and manner as the Secretary of the 
Treasury shall by regulation prescribe.
    ``(c) Applicable Laws.--
            ``(1) In general.--All provisions of law, including 
        penalties, applicable in respect of the taxes imposed by 
        section 4081 shall, insofar as applicable and not inconsistent 
        with this section, apply in respect of the payments provided 
        for in this section to the same extent as if such payments 
        constituted refunds of overpayments of the tax so imposed.
            ``(2) Examination of books and witnesses.--For the purpose 
        of ascertaining the correctness of any claim made under this 
        section, or the correctness of any payment made in respect of 
        any such claim, the Secretary shall have the authority granted 
        by paragraphs (1), (2), and (3) of section 7602(a) (relating to 
        examination of books and witnesses) as if the claimant were the 
        person liable for tax.
    ``(d) Income Tax Credit in Lieu of Payment.--
            ``(1) Persons not subject to income tax.--Payment shall be 
        made under this section only to--
                    ``(A) the United States or an agency or 
                instrumentality thereof, a State, a political 
                subdivision of a State, or any agency or 
                instrumentality of one or more States or political 
                subdivisions, or
                    ``(B) an organization exempt from tax under section 
                501(a) (other than an organization required to make a 
                return of the tax imposed under subtitle A for its 
                taxable year).
            ``(2) Allowance of credit against income tax.--For 
        allowance of credit against the income tax imposed by subtitle 
        A for diesel fuel used for any purpose other than in the trade 
        or business of moving goods by highway, see section 34.''.
                    (B) Allowance of credit against income tax.--
                            (i) In general.--Subsection (a) of section 
                        34 of the Internal Revenue Code of 1986 is 
                        amended by striking ``and'' at the end of 
                        paragraph (2), by striking the period at the 
                        end of paragraph (3) and inserting ``, and'', 
                        and by adding at the end the following:
            ``(4) under section 6433 (determined without regard to 
        section 6433(d)).''.
                            (ii) Conforming amendment.--Subsection (b) 
                        of section 34 of such Code is amended--
                                    (I) by striking ``6421 or 6427'' 
                                and inserting ``6421, 6427, or 6433'', 
                                and
                                    (II) by striking ``6421(i) or 
                                6427(k)'' and inserting ``6421(i), 
                                6427, or 6433''.
                    (C) Clerical amendment.--The table of sections for 
                subchapter B of chapter 65 of such Code is amended by 
                adding at the end the following:

``Sec. 6433. Diesel fuel not used for movement of goods by highway.''.
                    (D) Effective date.--The amendments made by this 
                paragraph shall apply to fuel sold after September 30, 
                2011.
    (b) Authorizations of Appropriations.--
            (1) In general.--There is authorized to be appropriated 
        from the Goods Movement Trust Fund (established under 
        subsection (a)) to carry out this Act for a fiscal year the 
        level of receipts plus interest (as that term is defined in 
        subsection (d)) with respect to the Goods Movement Trust Fund 
        for that fiscal year.
            (2) Allocation of amounts.--Of the amounts made available 
        to carry out this Act for a fiscal year--
                    (A) $5,000,000 shall be available to carry out 
                section 2 for that fiscal year;
                    (B) $3,000,000 shall be available to carry out 
                section 3 for the first full fiscal year beginning 
                after the date of enactment of this Act and $1,000,000 
                for each fiscal year thereafter;
                    (C) $5,000,000 shall be available to carry out 
                section 4, except for the making of grants under 
                subsections (c)(4) and (d) of that section, for that 
                fiscal year;
                    (D) $1,000,000 shall be available to make grants 
                under section 4(c)(4) for that fiscal year; and
                    (E) the remainder shall be available to make grants 
                under section 4(d) for that fiscal year.
    (c) Contract Authority.--
            (1) Date available for obligation.--Authorizations from the 
        Goods Movement Trust Fund to carry out this Act shall be 
        available for obligation on October 1 of the fiscal year for 
        which they are authorized.
            (2) Grants as contractual obligations.--A grant made under 
        subsection (c)(4) or (d) of section 4 that is approved by the 
        Assistant Secretary is a contractual obligation of the 
        Government to pay the Federal share of the cost of the project.
    (d) Goods Movement Trust Fund Guarantee.--
            (1) In general.--The total budget resources made available 
        from the Goods Movement Trust Fund each fiscal year to carry 
        out this Act shall be equal to the level of receipts plus 
        interest with respect to the Goods Movement Trust Fund for that 
        fiscal year. Such amounts may be used only to carry out this 
        Act.
            (2) Guarantee.--No funds may be appropriated to carry out 
        this Act unless the amount described in paragraph (1) has been 
        provided.
            (3) Enforcement of guarantees.--It shall not be in order in 
        the House of Representatives or the Senate to consider any 
        bill, joint resolution, amendment, motion, or conference report 
        that would cause total budget resources in a fiscal year to 
        carry out this Act for such fiscal year to be less than the 
        amount required by paragraph (1) for such fiscal year.
            (4) Definitions.--In this subsection, the following 
        definitions apply:
                    (A) Total budget resources.--The term ``total 
                budget resources'' means the total amount made 
                available by appropriations Acts from the Goods 
                Movement Trust Fund for a fiscal year to carry out this 
                Act.
                    (B) Level of receipts plus interest.--The term 
                ``level of receipts plus interest'' means the level of 
                funding appropriated or credited to the Goods Movement 
                Trust Fund under section 9512 of the Internal Revenue 
                Code of 1986 for a fiscal year as estimated in the 
                budget of the United States Government for that fiscal 
                year submitted by the President pursuant to section 
                1105 of title 31, United States Code. The President 
                shall ensure that an estimate of such funding is 
                included in each such budget.

SEC. 6. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Freight.--The term ``freight'' means goods transported 
        for a fee by a water, land, or air transportation mode.
            (2) Freight corridor.--The term ``freight corridor'' means 
        a designated route along which freight is moved, including 
        water, land, and air routes.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
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