[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3607 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3607

   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

                            December 8, 2011

  Mr. Smith of Washington (for himself and Mr. Dicks) 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;
                    (B) a regional authority if the authority is 
                responsible under the laws of a State for a capital 
                project; and
                    (C) a public port.
            (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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