[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 762 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 762

   To amend title 23, United States Code, to direct the Secretary of 
  Transportation to establish an innovation in surface transportation 
                    program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2015

  Mr. Wicker (for himself, Mr. Booker, Mr. Casey, and Ms. Murkowski) 
introduced the following bill; which was read twice and referred to the 
               Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
   To amend title 23, United States Code, to direct the Secretary of 
  Transportation to establish an innovation in surface transportation 
                    program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Innovation in Surface Transportation 
Act of 2015''.

SEC. 2. INNOVATION IN SURFACE TRANSPORTATION PROGRAM.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
amended by inserting after section 104 the following:
``Sec. 105. Innovation in surface transportation program
    ``(a) Purposes.--The purposes of this section are--
            ``(1) to increase the return on investment in the surface 
        transportation system of the United States;
            ``(2) to make the surface transportation system of the 
        United States more reliable, safe, and efficient by advancing 
        innovative projects selected through State competitions;
            ``(3) to increase input from local government and 
        stakeholders on projects receiving funding; and
            ``(4) to leverage Federal highway dollars further through 
        in-State competitions.
    ``(b) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) a local government;
                    ``(B) a metropolitan planning organization;
                    ``(C) a regional transportation authority;
                    ``(D) a transit agency;
                    ``(E) a tribal government;
                    ``(F) a private provider of public transportation;
                    ``(G) a nonprofit transportation organization;
                    ``(H) a port authority;
                    ``(I) a joint power authority;
                    ``(J) a freight rail provider; and
                    ``(K) a local rail authority.
            ``(2) Eligible project.--The term `eligible project' 
        means--
                    ``(A) a project eligible under--
                            ``(i) section 133(b), relating to the 
                        surface transportation program;
                            ``(ii) section 148, relating to the highway 
                        safety improvement program;
                            ``(iii) section 149(b), relating to the 
                        congestion mitigation and air quality 
                        improvement program; or
                            ``(iv) section 213(b), relating to the 
                        transportation alternatives program; and
                    ``(B) a surface transportation project that will 
                improve the movement of goods along a primary freight 
                network, including multimodal facilities near a primary 
                freight route.
            ``(3) Program.--The term `program', except as otherwise 
        specifically provided, means the `innovation in surface 
        transportation program' established under this section.
            ``(4) Rural local government.--The term `rural local 
        government' means a local government for an area that is not an 
        urbanized area (as defined by the Census Bureau).
            ``(5) State selection panel.--The term `State selection 
        panel' means an innovation in surface transportation selection 
        panel established by a State under subsection (e).
    ``(c) Establishment.--The Secretary, in coordination with State 
transportation departments, shall establish an innovation in surface 
transportation program in accordance with the requirements of this 
section.
    ``(d) Grants.--
            ``(1) In general.--A State shall make grants under this 
        section to eligible entities for eligible projects to be 
        carried out in the State using funds reserved by the State for 
        a fiscal year under subsection (j)(1).
            ``(2) State competitions.--
                    ``(A) In general.--For the purposes of making 
                grants under this section, a State shall conduct a 
                competition each fiscal year under which the State will 
                accept grant applications submitted by eligible 
                entities.
                    ``(B) Competition dates.--A State shall conduct a 
                competition under subparagraph (A)--
                            ``(i) not later than 180 days after the 
                        date of enactment of the Innovation in Surface 
                        Transportation Act of 2015; and
                            ``(ii) not later than 30 days after the 
                        first day of each fiscal year beginning after 
                        the date of enactment of the Innovation in 
                        Surface Transportation Act of 2015.
            ``(3) Selection criteria.--
                    ``(A) Establishment.--The State selection panel 
                established under subsection (e) shall establish and 
                make available to the public the project selection 
                criteria that will be used by the State in conducting 
                competitions under paragraph (2).
                    ``(B) Factors.--The project selection criteria of a 
                State shall provide for the approval of project 
                applications based on the extent to which the 
                projects--
                            ``(i) improve the safety for all users of 
                        the transportation network;
                            ``(ii) strengthen the contribution of a 
                        national multimodal freight network to the 
                        economic competitiveness of the United States;
                            ``(iii) promote multimodal connectivity;
                            ``(iv) strengthen return on investment, 
                        particularly the impact on local economic 
                        development;
                            ``(v) improve access to jobs and sources of 
                        labor, schools, and opportunity;
                            ``(vi) optimize the usage and efficiency 
                        through better design and operation of existing 
                        transportation facilities;
                            ``(vii) improve the reliability of the 
                        transportation system of the United States;
                            ``(viii) improve environmental performance 
                        of the transportation system;
                            ``(ix) encourage innovation and the use of 
                        technology; and
                            ``(x) further the purposes described in 
                        subsection (a).
                    ``(C) Special consideration of certain factors.--In 
                addition to the factors specified in subparagraph (B), 
                the project selection criteria of a State shall provide 
                that special consideration be given equally--
                            ``(i) to projects that--
                                    ``(I) maximize the amount of 
                                proposed project costs that can be 
                                borne by the applicant from non-Federal 
                                sources; or
                                    ``(II) have prior significant 
                                Federal or non-Federal investment; and
                            ``(ii) to projects in public jurisdictions 
                        with high poverty areas (as defined by the 
                        Census Bureau).
                    ``(D) Funding distribution.--The project selection 
                criteria of a State shall take into consideration the 
                equitable distribution of funds by geography and 
                population.
            ``(4) Special rule for private transportation providers.--
        An eligible entity that is a private transportation provider 
        may submit a project application in a State competition 
        conducted under paragraph (2) only if the application is 
        sponsored by a public entity.
    ``(e) Innovation in Surface Transportation Selection Panel.--
            ``(1) In general.--A State (including the Governor and 
        State Department of Transportation), in coordination with local 
        transportation stakeholders, shall establish an innovation in 
        surface transportation selection panel in accordance with this 
        subsection.
            ``(2) Duties.--A State selection panel shall--
                    ``(A) review project applications submitted to the 
                State during a competition conducted under subsection 
                (d)(2); and
                    ``(B) approve and disapprove the project 
                applications based on the criteria set forth in 
                subsection (d)(3).
            ``(3) Membership.--A State selection panel shall be 
        composed of the following members to be appointed by the State:
                    ``(A) Not fewer than 3 individuals representing the 
                transportation department of the State.
                    ``(B)(i) Not fewer than 3 individuals representing 
                local governments in the State, with at least 1 
                representative from each of--
                            ``(I) a jurisdiction with a population of 
                        50,000 individuals or fewer;
                            ``(II) a jurisdiction with a population of 
                        more than 50,000 individuals and not more than 
                        1,000,000 individuals; and
                            ``(III) a jurisdiction with a population of 
                        more than 1,000,000 individuals, if applicable.
                    ``(ii) If a State does not have a jurisdiction that 
                meets the criteria of 1 of the subclauses of clause 
                (i), the selection panel shall select a representative 
                from a jurisdiction eligible under any of the other 
                subclauses in order to secure the appropriate number of 
                representatives pursuant to this subparagraph.
                    ``(C) Not fewer than 3 individuals representing 
                metropolitan planning organizations, councils of 
                governments, rural planning organizations, and other 
                joint powers authorities in the State charged with 
                transportation responsibilities, including Indian 
                tribes and tribal coalitions.
            ``(4) Additional members.--In addition to the members 
        appointed under paragraph (3), a State selection panel shall be 
        composed of members to be appointed by the State, in 
        coordination with local transportation stakeholders, from among 
        individuals representing--
                    ``(A) local chambers of commerce, including 
                transportation management organizations, travel and 
                tourism boards, and other coalitions of employers and 
                commerce;
                    ``(B) local air quality boards or organizations 
                supporting improved air quality;
                    ``(C) State safety boards or local organizations 
                supporting safety;
                    ``(D) transit agencies;
                    ``(E) port authorities, if applicable;
                    ``(F) active transportation organizations;
                    ``(G) public interest organizations; and
                    ``(H) public health quality boards or local 
                organizations supporting improving public health.
            ``(5) Distribution of representatives.--A State shall 
        appoint members to the section panel of the State in a manner 
        such that--
                    ``(A) the number of members appointed under each of 
                subparagraphs (A), (B), and (C) of paragraph (3) is 
                equal; and
                    ``(B) not less than 1 member, and not more than 9 
                members, appointed under paragraph (4) shall be 
                described in each of subparagraphs (A), (B), (C), (D), 
                (E) if applicable, (F), (G), and (H) of paragraph (4).
            ``(6) Geographic diversity.--The members of a State 
        selection panel shall be geographically diverse, to the extent 
        practicable.
            ``(7) Representation limitation.--Except for the 
        representatives described in paragraphs (3)(A) and (3)(B), no 
        entity may be represented on a State selection panel for more 
        than 2 consecutive years if a comparable entity can also be 
        represented on the panel.
            ``(8) Continuity.--A State shall appoint members to the 
        selection panel of the State using a 2-tiered rotation process 
        that ensures continuity of the panel by rotating the membership 
        of the panel on a staggered basis.
    ``(f) Technical Assistance for Certain Areas.--
            ``(1) Rural eligibility.--The State shall support 
        development of project applications under this section if 
        requested by an eligible rural local government.
            ``(2) Reservation of funds.--The State may reserve not more 
        than 0.25 percent of the funds reserved for a fiscal year under 
        subsection (j) to meet specific requests for support from 
        eligible rural local governments.
    ``(g) Transparency.--Not later than 30 days after a State has 
selected projects for a fiscal year to receive funding under this 
section, the State shall make available, in a publicly accessible 
medium that is easy to navigate--
            ``(1) the criteria and methodology used to select the 
        projects;
            ``(2) a list of all the projects for which funding was 
        requested, including, for each such project--
                    ``(A) the total estimated project cost;
                    ``(B) the amount of funding requested; and
                    ``(C) the type of modal project;
            ``(3) a list of projects that were selected to receive 
        funding under this section, including, for each such project--
                    ``(A) the amount of funding requested;
                    ``(B) the amount of funding granted; and
                    ``(C) the source of the non-Federal share of cost 
                of the project; and
            ``(4) the ranking and scoring of all projects for which 
        funding was requested.
    ``(h) Reporting Requirements.--
            ``(1) State reports.--Not later than 180 days after the 
        last day of each fiscal year, a State shall submit to the 
        Secretary a report that describes--
                    ``(A) the information required under subsection 
                (g);
                    ``(B) the organizations that were represented on 
                the selection panel of the State;
                    ``(C) the portion of the funds available to the 
                State for the program that have been obligated; and
                    ``(D) the percentage of the funds available to the 
                State for the program that were used for administrative 
                expenses.
            ``(2) Biennial report to congress.--Not later than 
        September 30, 2017, and biennially thereafter, the Secretary 
        shall submit a consolidated report on the program, including a 
        review of the State reports submitted pursuant to paragraph 
        (1), to--
                    ``(A) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    ``(B) the Committee on Commerce, Science, and 
                Transportation of the Senate;
                    ``(C) the Committee on Environment and Public Works 
                of the Senate; and
                    ``(D) the Committee on Transportation and 
                Infrastructure of the House of Representatives.
            ``(3) Availability.--The Secretary shall make the report 
        submitted under paragraph (2) available on the public website 
        of the Department of Transportation.
    ``(i) Special Rule for States With Competitive and Suballocated 
Programs.--
            ``(1) In general.--The Secretary may permit a State to 
        distribute funding described in subparagraph (A), (B), (C), 
        (D), or (E) of subsection (j)(1) through the mechanisms 
        described in paragraph (2) if the Secretary certifies that the 
        State is distributing the funding in a manner that fulfills the 
        purposes of this section.
            ``(2) Distribution mechanisms.--Distribution mechanisms 
        that qualify under paragraph (1) include--
                    ``(A) an open and competitive State program that is 
                substantially similar to the requirements of this 
                section;
                    ``(B) direct suballocation to metropolitan areas of 
                40 percent of all funds--
                            ``(i) apportioned to the State under 
                        sections 104(b)(1), 104(b)(2), 104(b)(3), and 
                        104(b)(4); and
                            ``(ii) allocated to the State under section 
                        213(a)(1);
                    ``(C) has a competitive State program and direct 
                suballocation to metropolitan areas or direct 
                recipients of funds under section 5307 of title 49, of 
                more than 95 percent of the funds--
                            ``(i) apportioned to the State under 
                        sections 104(b)(1), 104(b)(2), 104(b)(3), and 
                        104(b)(4); or
                            ``(ii) allocated to the State under section 
                        133(d)(1)(B); and
                    ``(D) a certification by the Secretary that the 
                State is distributing grant funding in compliance with 
                the requirements of this section or in a manner that is 
                substantially similar to those requirements.
            ``(3) Publication in federal register.--Before making a 
        certification under paragraph (1), the Secretary shall--
                    ``(A) publish in the Federal Register the intent of 
                the Secretary to make the certification;
                    ``(B) provide the public not fewer than 90 days to 
                comment on the proposed certification; and
                    ``(C) take into consideration any comments received 
                during the comment period.
            ``(4) Letter to congress.--At least 15 days before making a 
        certification under paragraph (1), the Secretary shall submit a 
        letter to the congressional committees referred to in 
        subsection (h)(2) and the members of the congressional 
        delegation of the State that includes--
                    ``(A) a notification of the intent of the Secretary 
                to make the certification; and
                    ``(B) a justification for the proposed 
                certification.
    ``(j) Funding.--
            ``(1) Reservation of funds.--On October 1 of each of fiscal 
        year, a State shall make the following reservations of funds:
                    ``(A) National highway performance program.--The 
                State shall reserve 10 percent of the amount 
                apportioned to the State for the fiscal year under 
                section 104(b)(1)--
                            ``(i) for carrying out State competitions 
                        under this section; and
                            ``(ii) for making grants under this section 
                        for eligible projects.
                    ``(B) Highway safety improvement program.--The 
                State shall reserve not less than 33 percent of the 
                amount apportioned to the State for the fiscal year 
                under section 104(b)(3) for making grants under this 
                section for eligible projects that are projects 
                described in section 148.
                    ``(C) Congestion mitigation and air quality 
                improvement program.--
                            ``(i) In general.--The State shall reserve 
                        not less than 33 percent of the amount 
                        apportioned to the State for the fiscal year 
                        under section 104(b)(4), and unobligated 
                        balances for this section from the prior fiscal 
                        year for making grants under this section for 
                        eligible projects that are projects described 
                        in section 149(b).
                            ``(ii) Nonattainment areas.--States with 
                        nonattainment areas (as defined in section 
                        171(2) of the Clean Air Act (42 U.S.C. 
                        7501(2))) shall use amounts reserved under this 
                        paragraph for making grants under this section 
                        for eligible projects described in section 
                        149(b) in those areas.
                    ``(D) Surface transportation program.--The State 
                shall reserve not less than 33 percent of the amount 
                allocated to the State for the fiscal year under 
                section 133(d)(1)(B) for making grants under this 
                section for eligible projects.
                    ``(E) Transportation alternatives program.--The 
                State shall reserve 33 percent of the amount reserved 
                by the State for the fiscal year under section 
                213(c)(1)(B) for making grants under this section for 
                eligible projects that are projects described in 
                section 213(b).
            ``(2) Special rule.--Any funds that a State directly 
        suballocates to metropolitan areas or direct recipients of 
        funds under section 5307 of title 49 or awards through an open 
        statewide competition to eligible entities shall be excluded 
        from the funds from which the reservations under subsection 
        (f)(2) are made.
            ``(3) Nonawarded funds.--
                    ``(A) In general.--A State shall recompete the 
                funds using the process under subsection (d)(2) for 
                funds reserved under this subsection if--
                            ``(i) any funds reserved by the State for a 
                        fiscal year under paragraph (1) have not been 
                        awarded by the State in grants under this 
                        section on or before the last day of the fiscal 
                        year; and
                            ``(ii) any funds awarded in grants under 
                        this section remain unobligated by the grant 
                        recipient after the last day of the 3-year 
                        period beginning on the date on which the grant 
                        was awarded.
                    ``(B) Redirection of funds.--Once a State has 
                fulfilled the requirements of subparagraph (A), a State 
                may redirect funds reserved under this subsection for 
                sections 104(b)(1), 104(b)(2), 104(b)(3), and 
                104(b)(4), and 213(a)(1) for funds that remain 
                unobligated for an additional 3 fiscal years.''.
    (b) Clerical Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by inserting after the item relating to 
section 104 the following:

``105. Innovation in surface transportation program.''.
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