1.Short title; table of
contents
(a)This Act may be cited
as the National Freight Mobility
Infrastructure Act
.
(b)
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.
<enum>I</enum><header>National Freight
Mobility Infrastructure Improvement Program</header>
<section id="H8850C9A7DC4247BBB54D56348C194B92"><enum>101.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the following definitions
apply:</text>
<paragraph id="H0DEB24FFF3AE4255B6661F1DBDB85C1F"><enum>(1)</enum><header>Designated
entity</header><text display-inline="yes-display-inline">The term
<term>designated entity</term> means—</text>
<subparagraph id="HDBE3214D5C2840A58B765424ABBCD86E"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="HDF4A3836B01F407CBDC33B65D670089A"><enum>(B)</enum><text>a regional
authority if the authority is responsible under the laws of a State for a
capital project; and</text>
</subparagraph><subparagraph id="HCEC0351D8EBF4AAC91BB7C2E1C546421"><enum>(C)</enum><text>a public
port.</text>
</subparagraph></paragraph><paragraph id="H5340A71478034C4D9D0A48B6D6DA28C9"><enum>(2)</enum><header>Eligible project
costs</header><text>The term <term>eligible project costs</term> means
the—</text>
<subparagraph id="H68F9C308234C41D0943BE4BB57EF9B56"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="HFD5C1238EF1243BAA363DE351E6D63F1"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H272D406E3D8C43F9A300BA65DDE83483"><enum>(3)</enum><header>Eligible
project</header><text>The term <term>eligible project</term> means any freight
mobility infrastructure project that meets the criteria established in section
104.</text>
</paragraph><paragraph id="H0F3CFCD6D1D84338A60EBB0F7D363A28"><enum>(4)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Transportation.</text>
</paragraph><paragraph id="H58AC3D16CECB4431911EFD018BAAB929"><enum>(5)</enum><header>State</header><text>The
term <term>State</term> has the meaning given such term in section 101(a) of
title 23, United States Code.</text>
</paragraph></section><section id="H1689883C82E54FD88D7D20B7586819B1"><enum>102.</enum><header>Establishment
of program</header>
<subsection id="H637227DFCFE14CBF8578E6A5782B3C83"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="H19919B59BD8740EB9B3EFE164BCC7825"><enum>(b)</enum><header>Overhead
costs</header><text display-inline="yes-display-inline">In carrying out the
program, the Secretary shall seek to minimize administrative costs, including
overhead, enforcement, and auditing costs.</text>
</subsection></section><section id="HA95F08AB3FF84A71B102DCDCD89924DB"><enum>103.</enum><header>Applications</header><text display-inline="no-display-inline">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.</text>
</section><section id="H1F77A60D4FA94A569CBB2F1ACFDA25BE"><enum>104.</enum><header>Competitive
project selection and eligibility criteria for grants</header>
<subsection id="H32741DC9974E46DA8EEA784ABB5F2F97"><enum>(a)</enum><header>Selection of
projects</header><text>In carrying out this title, the Secretary shall—</text>
<paragraph id="H74573A76D8B24D41B854C016D2532C58"><enum>(1)</enum><text>award grants on a
competitive basis;</text>
</paragraph><paragraph id="HFD13504854804FF8A85B59FE88359D44"><enum>(2)</enum><text>conduct a national
solicitation for applications; and</text>
</paragraph><paragraph id="H6D79C3A22DA74F20A088624F5B677C2B"><enum>(3)</enum><text>establish criteria
for selecting among freight projects of national and regional significance that
include, but are not limited to, those which enable—</text>
<subparagraph id="H655F1C19146C436C9821BC65D0A2EBEE"><enum>(A)</enum><text>the construction
of grade separations at railroad, highway, and railroad-highway
junctions;</text>
</subparagraph><subparagraph id="H6FA9BD1B767C41F1814AC06519F0E9EE"><enum>(B)</enum><text>the construction
of railroad bypasses and spurs;</text>
</subparagraph><subparagraph id="H62B989C83D3342178BC8A62853647A9E"><enum>(C)</enum><text>the construction
of railroad side tracks;</text>
</subparagraph><subparagraph id="H7E63E8F962B549CCB200E029CDB53B10"><enum>(D)</enum><text>the expansion of
rail and highway tunnels to accommodate larger, taller, and additional volumes
of vehicular and rail freight and container stacks;</text>
</subparagraph><subparagraph id="HD714653F3C1B4DCE8B0EB367981B36CA"><enum>(E)</enum><text>the addition of
railroad track and intermodal facilities at international gateways, land, air,
and sea ports, points of congestion, and logistic centers;</text>
</subparagraph><subparagraph id="HD9602C609DE14A6CA34298961BD527D3"><enum>(F)</enum><text>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;</text>
</subparagraph><subparagraph id="H1803C70FE17444AA9B7517ECE13952AA"><enum>(G)</enum><text>the construction
and improvement of rail and highway bridges that carry a substantial amount of
freight;</text>
</subparagraph><subparagraph id="H50C0DF14563B434290ECD6A0BE3B1100"><enum>(H)</enum><text>the construction
of highway ramps that carry a substantial amount of freight; and</text>
</subparagraph><subparagraph id="HF2E552E622384A17AC7B7F69A052A3FD"><enum>(I)</enum><text>the construction
of highway lanes, including lanes that segregate freight and passenger
vehicular traffic.</text>
</subparagraph></paragraph></subsection><subsection id="H1E39111F66AD4BC5B70DD1E2BA2AAE98"><enum>(b)</enum><header>Project
requirements</header><text>The Secretary may approve a grant under this title
for a project only if the Secretary determines that the project—</text>
<paragraph id="H79BB7F2DC607461AAFE5E3629C7F913E"><enum>(1)</enum><text>will improve
freight mobility and national freight capacity and efficiency;</text>
</paragraph><paragraph id="HB360B36FD415479AA2977AB5887623CE"><enum>(2)</enum><text>is cost-effective;</text>
</paragraph><paragraph id="H3FF8ADEBCA224FAE99901DFB3B6304B8"><enum>(3)</enum><text>is based on the
results of preliminary engineering;</text>
</paragraph><paragraph id="HB839201390ED4CCD9331B38DBAECB1BD"><enum>(4)</enum><text>is justified based
on extent to which the project—</text>
<subparagraph id="H885E91F40D334B58969BCB8AAD905C72"><enum>(A)</enum><text>will enhance
national and regional economies by allowing for economic development, growth,
and efficiency as measured by—</text>
<clause id="HAE3EC630FF294ADB916DB2025F829F59"><enum>(i)</enum><text>the
impact on the Nation’s gross domestic product;</text>
</clause><clause id="H184B64733B0342C597818EABAD2F3A73"><enum>(ii)</enum><text>increases in new
businesses and jobs and retention of existing businesses and jobs;</text>
</clause><clause id="HB97F32ADE12A4D8685469968AED1D56A"><enum>(iii)</enum><text>State and local
tax receipts; and</text>
</clause><clause id="H6A727DC76BE04788A27309DF23E57639"><enum>(iv)</enum><text>improved safety
as measured by reductions in accidents, injuries, and fatalities; and</text>
</clause></subparagraph><subparagraph id="HD1792F9EC12E47E9B636887CADEC07F3"><enum>(B)</enum><text>seeks to maximize
economic opportunities for communities; and</text>
</subparagraph></paragraph><paragraph id="H04CB0C00318345F5882E1E7D13724FFD"><enum>(5)</enum><text>is supported by an
acceptable degree of non-Federal financial commitments, as determined under
subsection (d).</text>
</paragraph></subsection><subsection id="HFAA0C5FD9E824F5D92AEF9C6195C2041"><enum>(c)</enum><header>Selection
considerations</header><text>In selecting a project under this title, the
Secretary shall consider the extent to which the project—</text>
<paragraph id="HAA1D0103AC2C4C8495F1F11C2F18044A"><enum>(1)</enum><text>improves freight
mobility and national freight capacity and efficiency;</text>
</paragraph><paragraph id="H91B2816C38784ED391D6ECF06DBD7E38"><enum>(2)</enum><text>is cost
effective;</text>
</paragraph><paragraph id="HEC193064F1244AF2BDA3BA1EF34165CC"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="H9F98D6AC0AB045179E8F777BA1E4222A"><enum>(4)</enum><text display-inline="yes-display-inline">facilitates freight throughput of higher
volume and values;</text>
</paragraph><paragraph id="H7F36F681F6C942638C935E89357BE907"><enum>(5)</enum><text>uses operational
efficiencies, including intelligent transportation systems, that enhance the
efficiency or effectiveness (or both) of the project;</text>
</paragraph><paragraph id="H6D40C4DC65464FC6911CDFE9536DD124"><enum>(6)</enum><text display-inline="yes-display-inline">enhances national and regional economies by
allowing for economic development, growth, and efficiency;</text>
</paragraph><paragraph id="H97C3E9D139DD4CAA8B335D013E9E82AE"><enum>(7)</enum><text>helps maintain or
protect the environment;</text>
</paragraph><paragraph id="H6CCDBC47FF5E4C54AB903319885787DA"><enum>(8)</enum><text display-inline="yes-display-inline">improves safety as measured by reductions
in accidents, injuries, and fatalities; and</text>
</paragraph><paragraph id="H8674A3AB21A043D38F0BF35880E18224"><enum>(9)</enum><text display-inline="yes-display-inline">is supported by an acceptable degree of
non-Federal financial commitments, as determined under subsection (d).</text>
</paragraph></subsection><subsection id="H7364A77813C54860A62C86FD6AF3A045"><enum>(d)</enum><header>Non-Federal
financial commitment</header>
<paragraph id="HA108D00F505543249A6A2FDBB76AF60F"><enum>(1)</enum><header>Requirements</header><text>In
evaluating a project under this section, the Secretary shall require
that—</text>
<subparagraph id="H463AC31A23314628B972AA27C0E0E6B7"><enum>(A)</enum><text>the proposed
project plan provides for the availability of contingency amounts that the
Secretary determines to be reasonable to cover unanticipated cost increases;
and</text>
</subparagraph><subparagraph id="H00827E23F1A6455496D6F2FD8181E34E"><enum>(B)</enum><text>each proposed
non-Federal source of capital and operating financing is stable, reliable, and
available within the proposed project timetable.</text>
</subparagraph></paragraph><paragraph id="H16F50FDE9F7944A3AF61747B74423591"><enum>(2)</enum><header>Considerations</header><text>In
assessing the stability, reliability, and availability of proposed sources of
non-Federal financing under paragraph (1)(B), the Secretary shall
consider—</text>
<subparagraph id="H622B3CE80A9A46C0BF43C1112F96EF9A"><enum>(A)</enum><text>existing financial
commitments;</text>
</subparagraph><subparagraph id="HA851F44CDC1A440A824C54C6138A6040"><enum>(B)</enum><text>the degree to
which financing sources are dedicated to the purposes proposed;</text>
</subparagraph><subparagraph id="HADBF1BA50C5E495AACCBECBCF311F2B9"><enum>(C)</enum><text>any debt
obligation that exists or is proposed by the recipient for the proposed
project; and</text>
</subparagraph><subparagraph id="H38CDDA7224B143EFB336770757099489"><enum>(D)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="HFB31B33A76DC47D3B272D4949351C2C8"><enum>(e)</enum><header>Project
evaluation</header>
<paragraph id="HF5E2F743F46D4B729C9D1F019431BFEC"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HA1EEC21F341643AAA5D3945BCE06A0F2"><enum>(2)</enum><header>Evaluation and
rating</header><text>In making such findings, the Secretary shall evaluate and
rate the project as <quote>highly recommended</quote>,
<quote>recommended</quote>, or <quote>not recommended</quote> 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.</text>
</paragraph><paragraph id="H78123E4FD5554FDDB376FBAAE2A6FB06"><enum>(3)</enum><header>Priority</header><text>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.</text>
</paragraph></subsection><subsection id="HD41C4A851C5043FD9490BBC627F22B59"><enum>(f)</enum><header>Distribution
among States</header><text>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.</text>
</subsection></section><section id="HFA8DAF155BC3475EA0F986C4D9E16766"><enum>105.</enum><header>Funding
agreements</header>
<subsection id="H17AF1EF0F7D24893A0FACBB865AA61A9"><enum>(a)</enum><header>Full funding
grant agreements</header>
<paragraph id="H8B4BAD1E78C84A7B86829B80E1D3C38F"><enum>(1)</enum><header>In
general</header><text>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).</text>
</paragraph><paragraph id="HF0D778C5AD9E4E95B0A4CB145EACD59A"><enum>(2)</enum><header>Terms</header><text>If
the Secretary makes a full funding grant agreement with an applicant, the
agreement shall—</text>
<subparagraph id="HB072444F801940018042767156DA42B7"><enum>(A)</enum><text>establish the
terms of participation by the United States Government in a project under this
section;</text>
</subparagraph><subparagraph id="H05A1BF12A89F43668A6DBE3DE584F507"><enum>(B)</enum><text>establish the
maximum amount of Government financial assistance for the project;</text>
</subparagraph><subparagraph id="H5BD431162198439AAA34793FF7B6EA87"><enum>(C)</enum><text>cover the period
of time for completing the project, including a period extending beyond the
period of an authorization; and</text>
</subparagraph><subparagraph id="H46246445F82146C59A1C82D4BE72D4FC"><enum>(D)</enum><text>make timely and
efficient management of the project easier according to the laws of the United
States.</text>
</subparagraph></paragraph><paragraph id="HC9F4E6E718AF4F329EA28A6AF174843E"><enum>(3)</enum><header>Agreement</header><text>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.</text>
</paragraph></subsection><subsection id="H0BDEFD75512540E2A91624F40CDC2FDE"><enum>(b)</enum><header>Amounts</header><text>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.</text>
</subsection></section><section id="HFB98CC6C5F264D9B8900B4E2FC6E37A7"><enum>106.</enum><header>Grant
requirements</header>
<subsection id="H090DF398B9764948B030E8A03B2B5427"><enum>(a)</enum><header>Highway
construction projects</header><text>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.</text>
</subsection><subsection id="HBF6ADE9635F744289BDBFA6F6A15A538"><enum>(b)</enum><header>Other terms and
conditions</header><text>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.</text>
</subsection><subsection id="H37C4DD53EAA44058852148A876672CA4"><enum>(c)</enum><header>Government’s
share of project cost</header><text>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.</text>
</subsection></section><section id="H589E7B659D9949449C4F6CA64105DF4F"><enum>107.</enum><header>Annual
report</header><text display-inline="no-display-inline">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—</text>
<paragraph id="HB868D0E44685448B9928A79B4D815D9A"><enum>(1)</enum><text>a
proposal on the allocation of amounts to be made available to finance grants
under this section;</text>
</paragraph><paragraph id="H298A74F32A604792869E96E83B34F923"><enum>(2)</enum><text>evaluations and
ratings, as required under section 104(e); and</text>
</paragraph><paragraph id="H0AB07941D14744E596EB75EE8559CB54"><enum>(3)</enum><text>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.</text>
</paragraph></section><section id="H5D6638AFCF9044D28D98B48AB33B7DF8"><enum>108.</enum><header>Applicability
of title 23</header><text display-inline="no-display-inline">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.</text>
</section><section id="HB0E55770BEC4483AA069A75FEF716D9A"><enum>109.</enum><header>Regulations</header><text display-inline="no-display-inline">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.</text>
</section><enum>II</enum><header>Funding</header>
<section id="HE171973AFBC34F4998FF7BB150EFA59B"><enum>201.</enum><header>Establishment
of National Freight Mobility Infrastructure Fund</header>
<subsection id="H0738BC277DC94997B83E1BDCE97A2614"><enum>(a)</enum><header>Establishment of
the Fund</header><text display-inline="yes-display-inline">There is established
in the Treasury a separate account which shall be known as the <quote>National
Freight Mobility Infrastructure Fund</quote> (in this section referred to as
the <quote>Fund</quote>).</text>
</subsection><subsection id="HEAD9CA8BDF9147BD9303CB989CBA532E"><enum>(b)</enum><header>Deposits into
the Fund</header><text>The account shall consist of amounts transferred to the
Fund under section 4286 of the Internal Revenue Code of 1986.</text>
</subsection><subsection id="H6E39EC04F1AA4C8291D9DD42937099E3"><enum>(c)</enum><header>Expenditures
from Fund</header>
<paragraph id="H5B90E2F15A5147BEA017F1FE7CDA5E50"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HD027B5905CA64A01AA785CC66962EAD9"><enum>(2)</enum><header>Administrative
expenses</header><text>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.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HC5ED59F954B74B02A96B8E448985076F"><enum>202.</enum><header>Freight
mobility infrastructure tax</header>
<subsection id="H1DE71481F38B4243BCE3FFA71E775A02"><enum>(a)</enum><header>Imposition of
Tax</header><text>Chapter 33 of the Internal Revenue Code of 1986 is amended by
adding after subchapter C the following new subchapter:</text>
<quoted-block display-inline="no-display-inline" id="H80CB8EFE9CDE4D338F853FE94EC59236" style="OLC">
<subchapter id="H374FFC64EA254CC79ADA1D0E5F370914"><enum>D</enum><header>Transportation by
Freight Rail and Highway</header>
<toc container-level="subchapter-container" idref="H374FFC64EA254CC79ADA1D0E5F370914" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HECC48FC478C6402D87664F23725FD492" level="section">Sec. 4286. Imposition of tax.</toc-entry>
</toc>
<section id="HECC48FC478C6402D87664F23725FD492"><enum>4286.</enum><header>Imposition of
tax</header>
<subsection id="H0E65C22CF8294E3E8EDCEC9679D8E3EF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H1F86B8625CDC46B89FB486C09D38A8B3"><enum>(b)</enum><header>Fair market
value of taxable ground transportation</header>
<paragraph id="H86EAF35506104B97B911D9CD552C3090"><enum>(1)</enum><header>Transportation
by unrelated persons</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HFC48073471BD448090A5C9BA704B3775"><enum>(2)</enum><header>Transportation
by related persons</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="HFD4FFED42C5B4AB1849190AC46CBEFF8"><enum>(c)</enum><header>By whom
paid</header>
<paragraph id="H191990EBBAF94B7DB979F9A32478B87B"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided by
paragraph (2), the tax imposed by subsection (a) shall be paid—</text>
<subparagraph id="H8ADB3B35847D48AF95090FC4B11745C3"><enum>(A)</enum><text>by the person
making the payment subject to tax; or</text>
</subparagraph><subparagraph id="H1E5B8DAEAB2A43AE9B9D325DC9128197"><enum>(B)</enum><text>in the case of
transportation by a related person, by the person for whom such transportation
is made.</text>
</subparagraph></paragraph><paragraph id="HD783D4BA6FD34C8897EC1EEE8648BF57"><enum>(2)</enum><header>Payments made
outside the United States</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H5DAF274733474F438512AA21F05EA2D5"><enum>(3)</enum><header>Determinations
of amounts paid in certain cases</header><text>For purposes of this section,
rules similar to the rules of section 4271(c) shall apply.</text>
</paragraph></subsection><subsection id="H22902DB661BD45D7A069E3C288FEAA63"><enum>(d)</enum><header>Transfer of
amounts equivalent to tax to National Freight Mobility Infrastructure
Fund</header><text display-inline="yes-display-inline">There are hereby
appropriated to the National Freight Mobility Infrastructure Fund amounts
equivalent to the taxes received in the Treasury under subsection (a).</text>
</subsection><subsection id="H38D29BD4AA454A55AFAB27761DDFFC26"><enum>(e)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this part—</text>
<paragraph id="HC0F4968596C7498B8CF9B9D41B504300"><enum>(1)</enum><header>Taxable ground
transportation</header><text>The term <term>taxable ground
transportation</term> means transportation of property by—</text>
<subparagraph id="H2A41B4F3A3B44E5185D37CDF36C90B6D"><enum>(A)</enum><text>freight rail,
or</text>
</subparagraph><subparagraph id="H8DED32E447524634941A374E75751D7F"><enum>(B)</enum><text display-inline="yes-display-inline">commercial motor vehicle (as defined in
section 31101(1) of title 49, United States Code) for a distance of more than
50 miles.</text>
</subparagraph></paragraph><paragraph id="H2CB76FEBC466420590DEF34C2D4E03FB"><enum>(2)</enum><header>Related
person</header><text display-inline="yes-display-inline">A person (hereinafter
in this paragraph referred to as the <quote>related person</quote>) 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), <quote>10 percent</quote> shall be
substituted for <quote>50 percent</quote>.</text>
</paragraph></subsection><subsection id="HE6E522FA989F4F40B35474BF9214F334"><enum>(f)</enum><header>Exemption for
United States and possessions and State and local
governments</header><text>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 <term>State</term> includes the District of Columbia.</text>
</subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC40BF04C96194C04BFC6B2A4520F14BF"><enum>(b)</enum><header>Credits or
refunds to persons who collected certain taxes</header><text>Section 6415 of
such Code is amended by striking <quote>or 4271</quote> each place it appears
and inserting <quote>4271, or 4286</quote>.</text>
</subsection><subsection id="H189E75BC36684BF8B3FC2BD7335BB980"><enum>(c)</enum><header>Regulations</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HD3398BD4E2894AB2A2E4B00E69474858"><enum>(d)</enum><header>Effective
date</header><text display-inline="yes-display-inline">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).</text>
</subsection></section>