[Senate Report 115-324]
[From the U.S. Government Publishing Office]


 						     Calendar No. 558

115th Congress}                                            { Report
                                 SENATE
  2d Session  }                                            { 115-324

======================================================================
             PORT OPERATIONS, RESEARCH, AND TECHNOLOGY ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                  ON

                                S. 3273

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                August 20, 2018.--Ordered to be printed
                
                
                                __________
                               

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
                             WASHINGTON : 2018                     
                   
                
             
                
       
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred fifteenth congress
                             second session

                   JOHN THUNE, South Dakota, Chairman
                   
ROGER F. WICKER, Mississippi         BILL NELSON, Florida
ROY BLUNT, Missouri                  MARIA CANTWELL, Washington
TED CRUZ, Texas                      AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska                RICHARD BLUMENTHAL, Connecticut
JERRY MORAN, Kansas                  BRIAN SCHATZ, Hawaii
DAN SULLIVAN, Alaska                 EDWARD J. MARKEY, Massachusetts
DEAN HELLER, Nevada                  TOM UDALL, New Mexico
JAMES M. INHOFE, Oklahoma            GARY C. PETERS, Michigan
MIKE LEE, Utah                       TAMMY BALDWIN, Wisconsin
RON JOHNSON, Wisconsin               TAMMY DUCKWORTH, Illinois
SHELLEY MOORE CAPITO, West Virginia  MARGARETWOODHASSAN,NewHampshire
CORY GARDNER, Colorado               CATHERINE CORTEZ MASTO, Nevada
TODD C. YOUNG, Indiana               JON TESTER, Montana
                       Nick Rossi, Staff Director
                 Adrian Arnakis, Deputy Staff Director
                    Jason Van Beek, General Counsel
                 Kim Lipsky, Democratic Staff Director
           Christopher Day, Democratic Deputy Staff Director
           
           

 						     Calendar No. 558

115th Congress}                                            { Report
                                 SENATE
  2d Session  }                                            { 115-324

======================================================================
 
             PORT OPERATIONS, RESEARCH, AND TECHNOLOGY ACT

                                _______
                                

                August 20, 2018.--Ordered to be printed

                                _______
                                

Mr. Thune, from the Committee on Commerce, Science, and Transportation, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 3273]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 3273) to improve the safety, 
efficiency, and reliability of the movement of goods through 
ports and intermodal connections to ports, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment (in the nature of a substitute) and 
recommends that the bill (as amended) do pass.

                          Purpose of the Bill

    The purpose of this legislation is to do the following: 
update the existing StrongPorts program to build a more defined 
and effective program to address port and intermodal needs 
across the country; and require the Commandant of the Coast 
Guard to establish and develop a Blue Technology Center of 
Expertise to promote awareness and adoption of technologies 
that enhance Coast Guard missions.

                          Background and Needs


                                 PORTS

    Maritime transportation is a significant mode of 
transportation for international and domestic freight movement. 
According to the Department of Transportation's Beyond Traffic 
report, deepwater seaports handle more than 70 percent of our 
Nation's imports and exports by weight.\1\ In addition to 
seaports, more than 70 inland ports along navigable waterways 
and the Great Lakes carry approximately 10 percent of domestic 
freight ton-miles and 30 percent of total freight tonnage.\2\ 
Growth in containerized and bulk freight volumes continues to 
add stress to port infrastructure, with containerized volumes 
alone expected to nearly double by 2029.\3\ Moreover, expansion 
of the Panama Canal in 2016 to accommodate ``New Panamax'' 
vessels has also changed shipping patterns and increased the 
demand for terminals in ports on the East Coast capable of 
accommodating these vessels. In addition, ports continue to 
deploy new technologies for their operations, which many port 
operators and freight companies view as increasing supply chain 
efficiency and throughput and which certain labor 
organizations, such as the International Longshore and 
Warehouse Union and International Longshoremen's Association, 
view as presenting potentially negative effects on certain 
types of employment.
---------------------------------------------------------------------------
    \1\U.S. Department of Transportation, ``Beyond Traffic'', 2015. 
(https://www.
transportation.gov/sites/dot.gov/files/docs/
BeyondTraffic_tagged_508_final.pdf)
    \2\Bureau of Transportation Statistics. National Transportation 
Statistics. 2018. (https://www.bts.gov/product/national-transportation-
statistics)
    \3\Federal Maritime Commission. U.S. Container Port Congestion and 
Related International Supply Chain Issues: Causes, Consequences and 
Challenges. 2015. (https://www.fmc.gov/assets/1/Page/
PortForumReport_FINALwebAll.pdf)
---------------------------------------------------------------------------
    Both seaports and inland ports are eligible for funding 
through various grant programs, including the Better Utilizing 
Investments to Leverage Development (BUILD) and the 
Infrastructure for Rebuilding America (INFRA) programs, though 
the latter only allows funding for port infrastructure with a 
multimodal nexus. However, unlike for other modes, such as 
highways, transit, and rail, to date Congress has not 
appropriated funding for a dedicated maritime transportation 
grant program focused on broad port infrastructure 
improvements.\4\
---------------------------------------------------------------------------
    \4\Congress does provide funding for the Maritime Administration's 
Marine Highways Program, which allocates annual grants toward the 
development of designated marine highways to relieve highway congestion 
and can involve port infrastructure improvements. But that program does 
not typically focus on broad port infrastructure improvements. The 
Marine Highways program received $7 million in appropriations under the 
Consolidated Appropriations Act, 2018.
---------------------------------------------------------------------------
    In section 3512 of the National Defense Authorization Act 
for Fiscal Year 2010 (NDAA for FY 2010), Congress authorizes a 
port infrastructure development program--named StrongPorts--
intended to improve port facilities.\5\ However, StrongPorts 
has an undefined and unconstrained authorization structure, 
does not have basic program components, such as matching 
requirements or clearly defined eligible applicants, and thus 
it has never received an appropriation.
---------------------------------------------------------------------------
    \5\46 U.S.C. 50302.
---------------------------------------------------------------------------
    To focus on broad port infrastructure improvements, the 
John S. McCain National Defense Authorization Act for Fiscal 
Year 2019 (Public Law 115-232) includes a $5 million set-aside 
for StrongPorts out of the broader $60.4 million authorization 
for Maritime Administration (MARAD) operations and programs. In 
fiscal year (FY) 2018, Congress appropriated, out of the 
broader MARAD operations and programs authorization, 
approximately $10 million for MARAD grant programs; the 
approximately $50 million in remaining funds is for MARAD 
operations. Thus, for FY 2019, the $5 million set-aside would 
effectively be funded out of the $10 million for MARAD grant 
programs.

                            BLUE TECHNOLOGY

    Currently, the Research and Development Center (RDC) within 
the Coast Guard is responsible for evaluating the affordability 
and feasibility of emerging technologies as they relate to the 
acquisition process. However, the RDC is primarily focused on 
internal research and the optimization of existing Coast Guard 
assets. The emergence of numerous technologies in the private 
sector--including improvements to hydrographic surveys, 
autonomous drones, and integrated communication systems--
present opportunities for the Coast Guard to leverage these 
technologies to improve operational performance. The Coast 
Guard may also consider coordination with academia, nonprofit 
organizations, and other Federal agencies, particularly the 
National Oceanic and Atmospheric Administration.

                         Summary of Provisions

    If enacted, S. 3273 would do the following:

Ports

     Update StrongPorts to build a more defined and 
effective program to address port and intermodal needs across 
the country and to rename it the Port and Intermodal 
Improvement Program (PIIP).
     Add selection criteria centered on improving the 
safety, efficiency, or reliability of the movement of goods 
into, out of, around, or within a port or intermodal facility; 
and define eligible applicants to include a wide range of 
public and private stakeholders.
     Include provisions to ensure small projects 
receive consideration and that the Secretary of Transportation 
considers geographic distribution.

Blue Technology

     Require the Commandant of the Coast Guard to 
establish a Blue Technology Center of Expertise not later than 
1 year after the date of enactment of the Act.
     Develop a structure for the new Center of 
Expertise to do the following:
           Promote awareness within the Coast Guard of 
        the range and diversity of Blue Technologies and how 
        those technologies could enhance Coast Guard missions.
           Function as an interactive conduit to enable 
        the sharing and dissemination of Blue Technology 
        information between the private sector, academia, 
        nonprofits, other Federal agencies, and the Coast 
        Guard.

                          Legislative History

    S. 3273 was introduced on July 25, 2018, by Senator Wicker 
and was referred to the Committee on Commerce, Science, and 
Transportation of the Senate. On August 1, 2018, the Committee 
met in open Executive Session, and by voice vote, ordered S. 
3273 to be reported favorably with an amendment (in the nature 
of a substitute). Senator Lee offered an amendment which was 
adopted by voice vote; the amendment would eliminate from the 
program's eligibilities certain subsidies or administrative 
costs eligible for Federal credit assistance.
    Ports.--On June 6, 2018, Senators Wicker and Nelson offered 
a floor amendment (Wicker #2821) to the NDAA for FY 2019 that 
would update and improve StrongPorts for the already existing 
set-aside in that measure's MARAD title. A modified version of 
that amendment was included in S. 3273.
    Blue Technology.--On June 25, 2018, Congressman John 
Garamendi (D-CA), with the co-sponsorship of Congressman Duncan 
Hunter (R-CA), introduced H.R. 6206, the Coast Guard Blue 
Technology Center of Expertise Act. On June 27, 2018, the House 
of Representatives Committee on Transportation and 
Infrastructure ordered H.R. 6206 to be reported by voice vote. 
On July 25, 2018, the House of Representatives passed on 
suspension the bill as part of S. 756, the Save Our Seas Act of 
2017.
    On April 4, 2017, the Committee's Subcommittee on Surface 
Transportation and Merchant Marine Infrastructure, Safety, and 
Security held a multimodal transportation stakeholder hearing 
entitled, ``Keeping Goods Moving: Continuing to Enhance 
Multimodal Freight Policy and Infrastructure,'' which examined 
the importance of the multimodal freight transportation network 
and policies needed for a growing economy.
    On April 24, 2018, the Committee's Subcommittee on Surface 
Transportation and Merchant Marine Infrastructure, Safety, and 
Security held a maritime transportation hearing entitled, 
``Maritime Transportation: Opportunities and Challenges,'' 
which focused on the U.S. maritime industry, the state of the 
Nation's maritime transportation system and its current 
challenges, and the ways in which Federal policy and programs 
could enhance its performance.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 3273--Port Operations, Research, and Technology Act

    Summary: S. 3273 would expand the eligibility criteria for 
grants that the Maritime Administration (MARAD) is authorized 
to provide to improve infrastructure at maritime ports and 
facilities. The bill also would direct the Coast Guard (USCG) 
to undertake activities to promote the use of certain new 
maritime technologies.
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing S. 3273 would cost $18 million over 
the 2019-2023 period. Enacting the bill would not affect direct 
spending or revenues; therefore, pay-as-you-go procedures do 
not apply.
    CBO estimates that enacting S. 3273 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    S. 3273 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of S. 3273 is shown in the following table. 
The costs of the legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                      2018    2019    2020    2021    2022     2023    2019-2023
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level......................       0       5       5       5       5         6         26
Estimated Outlays..................................       0       1       3       4       5         5         18
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: CBO assumes that the bill will be 
enacted by the end of 2018 and that the necessary amounts will 
be provided each year.
    Under current law, MARAD is authorized to provide grants to 
support capital improvements at ports to benefit the U.S. 
maritime industry--the civilian mariners and fleet of U.S. 
vessels engaged primarily in waterborne commerce. Section 2 
would specify that such grants could also be used for projects 
to improve intermodal facilities, which connect ports to 
different modes of transportation.
    MARAD did not receive funding for grants to promote port 
development in 2018. Assuming that the grants authorized under 
S. 3273 are used for projects similar in scope and cost to 
those supported by MARAD's existing grant program, CBO 
estimates that providing those grants would require 
appropriations of about $5 million in the first year with 
increases each year thereafter to account for inflation. Based 
on historical spending patterns for grants administered by 
MARAD, CBO estimates that the outlays stemming from those 
grants would occur gradually over a period of about five years, 
totaling $18 million over the 2019-2023 period (and $8 million 
after 2023).
    Section 3 would direct the USCG to establish a center of 
expertise to promote the use of new maritime technologies 
related to activities including surveillance and monitoring, 
search and rescue, emergency response, and law enforcement. 
(Under current law, the agency operates several such centers, 
which provide technical assistance on a range of issues related 
to maritime safety.) Because the USCG's existing Research and 
Development Center is already pursuing similar activities, CBO 
expects that any increases in the agency's costs to implement 
section 3--which would be subject to appropriation--would not 
exceed $500,000 in any year. (In 2018, the USCG allocated about 
$5 million in appropriated funds to those efforts.)
    Pay-As-You-Go considerations: None.
    Increase in long-term direct spending and deficits: CBO 
estimates that enacting S. 3273 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2029.
    Mandates: S. 3273 contains no intergovernmental or private-
sector mandates as defined in UMRA.
    Previous CBO estimate: On July 20, 2018, CBO transmitted a 
cost estimate for H.R. 6206, the Coast Guard Blue Technology 
Center of Expertise Act, as ordered reported by the House 
Committee on Transportation and Infrastructure on June 27, 
2018. H.R. 6206 is similar to section 3 of S. 3273, and the 
estimated costs are the same for both bills.
    Estimate prepared by: Federal Costs: Megan Carroll; 
Mandates: Jon Sperl.
    Estimate reviewed by: Kim P. Cawley Chief, Natural and 
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       number of persons covered

    This measure, as reported, would not create any new 
programs or impose any new significant regulatory requirements, 
and, therefore, would not subject any individuals or businesses 
to new significant regulations. In creating a more defined 
grant program to improve port infrastructure, this measure 
would affect ports, other transportation and infrastructure 
entities, and communities served by the commerce moving in and 
out of ports.

                            economic impact

    Enactment of this legislation is not expected to have any 
significant adverse impacts on the Nation's economy. It is 
expected to have a positive impact by improving commerce in and 
out of the Nation's ports.

                                privacy

    S. 3273 will not have any adverse impact on the privacy of 
individuals.

                               paperwork

    S. 3273 would not impose a substantial paperwork burden on 
individuals or businesses. The bill does require additional 
paperwork for grant applicants, but this would be offset by the 
benefits of increased opportunity for the port and intermodal 
infrastructure improvements.

                   Congressionally Directed Spending

    In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


Sec. 1. Short title.

    This section would provide that the bill may be cited as 
the ``Port Operations, Research, and Technology Act.''

Section 2. Port and Intermodal Improvement Program.

    This section would amend the existing StrongPorts, found in 
section 50302 of title 46, United States Code, and rename it 
PIIP. This section would improve the existing program by 
providing a competitive grant program for eligible applicants 
to apply to the Secretary of Transportation (Secretary) to fund 
port and intermodal projects on an annual basis.
    This section would define eligible applicants to include a 
State, public authority, or private entity with a public 
sponsor lead. This section would define eligible projects to 
include those that improve the safety, efficiency, or 
reliability of goods movement into, out of, around, or within a 
port facility, covering both sea and inland ports. For example, 
a potential eligible project covered under PIIP could include, 
among other types of projects, an on-dock rail project, a 
highway connection point into the port facility, marine 
terminal equipment, or a dredging project at a port berth. This 
section would set certain requirements to ensure sufficient 
non-Federal matches, drawing more localized resources to 
improve infrastructure.
    This section would set project selection criteria, 
including: that the project improves the safety, efficiency, or 
reliability of the movement of goods through a port or 
intermodal connection to a port; the project is cost-effective; 
the eligible applicant has authority to carry out the project; 
the eligible applicant has sufficient funding available to meet 
the matching requirements; the project will be completed 
without unreasonable delay; and the project cannot be easily 
and efficiently completed without Federal funding or financial 
assistance available to the project sponsor. The section would 
require the Secretary, after considering the aforementioned 
criteria, to give substantial weight to the following: (1) the 
utilization of non-Federal contribution; and (2) the net 
benefits of the funds awarded under the subsection, considering 
the cost-benefit analysis of the project, as applicable. In 
considering the cost-benefit analysis of the project, the 
Secretary should give consideration to any evidence presented 
of effects on employment.
    This section would allow for a higher Federal share for 
projects located in rural areas. This section also would 
include a set-aside of 25 percent for small projects, along 
with a streamlined application process for such projects. This 
section would ensure that not more than 25 percent of the 
amounts made available for grants may be used to make grants 
for projects in any one State to ensure an equitable geographic 
distribution of funding.
    This section would require the Secretary to notify the 
appropriate committees of Congress of the proposed grant 
amount, including an evaluation and justification for the 
project, at least 60 days before making a grant. This section 
would provide that the Secretary may not make a grant to fund a 
project if Congress enacts a joint resolution disapproving 
funding for the proposed project within 60 days of receipt of 
the notification.

Section 3. Coast Guard Blue Technology Center of Expertise.

    This section would require the Commandant of the Coast 
Guard to establish a Blue Technology Center of Expertise not 
later than 1 year from the date of enactment of the Act.
    This section would detail several missions of the Blue 
Technology Center of Expertise, including the following: 
promoting awareness of Blue Technologies within the Coast 
Guard; enabling the sharing of Blue Technology information 
between the private sector, academia, nonprofit organizations, 
other Federal agencies, and the Coast Guard; increasing 
awareness of Coast Guard acquisition policies and practices 
among Blue Technology manufacturers, entrepreneurs, and 
vendors; providing technical support, coordination, and 
assistance to Coast Guard districts and the Coast Guard 
Research and Development Center; and, subject to the 
requirements of the Coast Guard Academy, coordinating with the 
Academy to develop appropriate curricula regarding Blue 
Technology.
    This section also would direct the Commandant of the Coast 
Guard to report to the appropriate committees of Congress on 
the costs and benefits of hosting a biennial Coast Guard Blue 
Technology exposition.
    This section also would define the terms ``center'', 
``Commandant'', and ``Blue Technology.''

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

                           TITLE 46. SHIPPING


                      SUBTITLE V. MERCHANT MARINE

                            PART A. GENERAL

                      CHAPTER 503. ADMINISTRATIVE

Sec. 50302. Port development

  (a) General Requirements.--With the objective of promoting, 
encouraging, and developing ports and transportation facilities 
in connection with water commerce over which the Secretary of 
Transportation has jurisdiction, the Secretary, in cooperation 
with the Secretary of the Army, shall--
          (1) investigate territorial regions and zones 
        tributary to ports, taking into consideration the 
        economies of transportation by rail, water, and highway 
        and the natural direction of the flow of commerce;
          (2) investigate the causes of congestion of commerce 
        at ports and applicable remedies;
          (3) investigate the subject of water terminals, 
        including the necessary docks, warehouses, and 
        equipment, to devise and suggest the types most 
        appropriate for different locations and for the most 
        expeditious and economical transfer or interchange of 
        passengers or property between water carriers and rail 
        carriers;
          (4) consult with communities on the appropriate 
        location and plan of construction of wharves, piers, 
        and water terminals;
          (5) investigate the practicability and advantages of 
        harbor, river, and port improvements in connection with 
        foreign and coastwise trade; and
          (6) investigate any other matter that may tend to 
        promote and encourage the use by vessels of ports 
        adequate to care for the freight that naturally would 
        pass through those ports.
  (b) Submission of Findings to Surface Transportation Board.--
After an investigation under subsection (a), if the Secretary 
of Transportation believes that the rates or practices of a 
rail carrier subject to the jurisdiction of the Surface 
Transportation Board are detrimental to the objective specified 
in subsection (a), or that new rates or practices, new or 
additional port terminal facilities, or affirmative action by a 
rail carrier is necessary to promote that objective, the 
Secretary may submit findings to the Board for action the Board 
considers appropriate under existing law.
  [(c) Port Infrastructure Development Program.--
          [(1) Establishment of program.--The Secretary of 
        Transportation, through the Maritime Administrator, 
        shall establish a port infrastructure development 
        program for the improvement of port facilities as 
        provided in this subsection.
          [(2) Authority of the administrator.--In order to 
        carry out any project under the program established 
        under paragraph (1), the Administrator may--
                  [(A) receive funds provided for the project 
                from Federal, non-Federal, and private entities 
                that have a specific agreement or contract with 
                the Administrator to further the purposes of 
                this subsection;
                  [(B) coordinate with other Federal agencies 
                to expedite the process established under the 
                National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.) for the improvement of 
                port facilities to improve the efficiency of 
                the transportation system, to increase port 
                security, or to provide greater access to port 
                facilities;
                  [(C) seek to coordinate all reviews or 
                requirements with appropriate local, State, and 
                Federal agencies; and
                  [(D) provide such technical assistance and 
                financial assistance, including grants, to port 
                authorities or commissions or their 
                subdivisions and agents as needed for project 
                planning, design, and construction.
          [(3) Port infrastructure development fund.--
                  [(A) Establishment.--There is a Port 
                Infrastructure Development Fund for use by the 
                Administrator in carrying out projects under 
                the port infrastructure development program. 
                The Fund shall be available to the 
                Administrator--
                          [(i) to administer and carry out 
                        projects under the program;
                          [(ii) to receive Federal, non-
                        Federal, and private funds from 
                        entities which have specific agreements 
                        or contracts with the Administrator; 
                        and
                          [(iii) to make refunds for projects 
                        that will not be completed.
                  [(B) Credits.--There may be deposited into 
                the Fund--
                          [(i) funds from Federal, non-Federal, 
                        and private entities which have 
                        agreements or contracts with the 
                        Administrator and which shall remain in 
                        the Fund until expended or refunded; 
                        and
                          [(ii) such amounts as may be 
                        appropriated or transferred, subject to 
                        subparagraph (C), to the Fund under 
                        this subsection.
                  [(C) Transfers.--
                          [(i) In general.--Subject to clauses 
                        (ii) and (iii), amounts appropriated or 
                        otherwise made available for any fiscal 
                        year for a marine facility or 
                        intermodal facility that includes 
                        maritime transportation may be 
                        transferred, at the option of the 
                        recipient of such amounts, to the Fund 
                        and administered by the Administrator 
                        as a component of a project under the 
                        program.
                          [(ii) Prohibition on transfers.--
                        Except as provided in clause (iii), no 
                        funds appropriated or made available 
                        under title 23 or chapter 53 of title 
                        49, United States Code, including funds 
                        from the Highway Trust Fund (section 
                        9503(c) of the Internal Revenue Code of 
                        1986), funds from the Mass Transit 
                        Account of the Highway Trust Fund 
                        (section 9503(e) of Internal Revenue 
                        Code of 1986), and funds provided for 
                        public transportation programs within 
                        the mass transit category (as defined 
                        in section 250(c)(4)(C) of the Balanced 
                        Budget and Emergency Deficit Control 
                        Act of 1985), shall be transferred into 
                        the Fund.
                          [(iii) Exception.--
                                  [(I) In general.--Amounts 
                                described in subclause (II) are 
                                eligible for transfer into the 
                                Fund if--
                                          [(aa) the recipient 
                                        of the amounts has a 
                                        specific agreement or 
                                        contract with the 
                                        Administrator;
                                          [(bb) the Department 
                                        of Transportation 
                                        agency that administers 
                                        the amounts to be 
                                        transferred has granted 
                                        project approval for 
                                        each component of the 
                                        project that is to be 
                                        funded using such 
                                        amounts;
                                          [(cc) the Department 
                                        of Transportation 
                                        agency that administers 
                                        the amounts to be 
                                        transferred and the 
                                        Maritime Administration 
                                        agree to the transfer 
                                        through a signed 
                                        Memorandum of 
                                        Understanding; and
                                          [(dd) the amounts 
                                        will be used only to 
                                        carry out the project 
                                        for which funds were 
                                        approved, and in 
                                        accordance with any 
                                        conditions governing 
                                        the amounts under title 
                                        23 or chapter 53 of 
                                        title 49, United States 
                                        Code.
                                  [(II) Amounts described.--The 
                                amounts referred to in 
                                subclause (I) are amounts 
                                appropriated or made 
                                available--
                                          [(aa) for loans, loan 
                                        guarantees, or lines of 
                                        credit under chapter 6 
                                        of title 23, United 
                                        States Code, for a 
                                        project eligible under 
                                        such chapter to 
                                        facilitate direct 
                                        intermodal exchange, 
                                        transfer, and access 
                                        into and out of a port 
                                        as defined under 
                                        section 
                                        601(a)(8)(D)(iii) of 
                                        such title, as in 
                                        effect on the date of 
                                        enactment of this 
                                        subsection; or
                                          [(bb) for projects 
                                        under title XII of 
                                        division A of the 
                                        American Recovery and 
                                        Reinvestment Act of 
                                        2009 (Public Law 111-
                                        5).
                  [(D) Limitation on statutory construction.--
                Nothing in this section shall be construed to 
                alter or otherwise affect existing authorities 
                to conduct port infrastructure programs in 
                Hawaii (as authorized by section 9008 of Public 
                Law 109-59), Alaska (as authorized by section 
                10205 of Public Law 109-59), or Guam (as 
                authorized by section 3512 of Public Law 110-
                417).
          [(4) Authorization of appropriations.--There are 
        authorized to be appropriated to the Fund such sums as 
        may be necessary to carry out the program, taking into 
        account amounts received under paragraph (3)(A)(ii).]
  (c) Port and Intermodal Improvement Program.--
          (1) General authority.--Subject to the availability 
        of appropriations, the Secretary of Transportation 
        shall make grants, on a competitive basis, to eligible 
        applicants to assist in funding eligible projects for 
        the purpose of improving the safety, efficiency, or 
        reliability of the movement of goods through ports and 
        intermodal connections to ports.
          (2) Eligible applicant.--The Secretary may make a 
        grant under this subsection to the following:
                  (A) A State.
                  (B) A political subdivision of a State or 
                local government.
                  (C) A public agency or publicly chartered 
                authority established by 1 or more States.
                  (D) A special purpose district with a 
                transportation function.
                  (E) A multistate or multijurisdictional group 
                of entities described in this subsection.
                  (F) A lead entity described in subparagraph 
                (A), (B), (C), (D), or (E) jointly with a 
                private entity or group of private entities.
          (3) Eligible projects.--The Secretary may make a 
        grant under this subsection--
                  (A) for a project that--
                          (i) is either--
                                  (I) within the boundary of a 
                                port; or
                                  (II) outside the boundary of 
                                a port, but is directly related 
                                to port operations or to an 
                                intermodal connection to a 
                                port; and
                          (ii) will be used to improve the 
                        safety, efficiency, or reliability of--
                                  (I) the loading and unloading 
                                of goods at the port, such as 
                                for marine terminal equipment;
                                  (II) the movement of goods 
                                into, out of, around, or within 
                                a port, such as for highway or 
                                rail infrastructure, intermodal 
                                facilities, freight intelligent 
                                transportation systems, and 
                                digital infrastructure systems; 
                                or
                                  (III) the movement of vessels 
                                in and out of the port facility 
                                by dredging a vessel berthing 
                                area that is not part of a 
                                Federal channel or an access 
                                channel associated with a 
                                Federal channel; or
                  (B) notwithstanding paragraph (6)(A)(v), to 
                provide financial assistance to 1 or more 
                projects under subparagraph (A) for development 
                phase activities, including planning, 
                feasibility analysis, revenue forecasting, 
                environmental review, permitting, and 
                preliminary engineering and design work.
          (4) Prohibited uses.--A grant award under this 
        subsection may not be used--
                  (A) to finance or refinance the construction, 
                reconstruction, reconditioning, or purchase of 
                a vessel that is eligible for such assistance 
                under chapter 537, unless the Secretary 
                determines such vessel--
                          (i) is necessary for a project 
                        described in paragraph (3)(A)(ii)(III) 
                        of this subsection; and
                          (ii) is not receiving assistance 
                        under chapter 537; or
                  (B) for any project within a small shipyard 
                (as defined in section 54101).
          (5) Applications and process.--
                  (A) Applications.--To be eligible for a grant 
                under this subsection, an eligible applicant 
                shall submit to the Secretary an application in 
                such form, at such time, and containing such 
                information as the Secretary considers 
                appropriate.
                  (B) Solicitation process.--Not later than 30 
                days after the date that amounts are made 
                available for grants under this subsection for 
                a fiscal year, the Secretary shall solicit 
                grant applications for eligible projects in 
                accordance with this subsection.
          (6) Project selection criteria.--
                  (A) In general.--The Secretary may select a 
                project described in paragraph (3) for funding 
                under this subsection if the Secretary 
                determines that--
                          (i) the project improves the safety, 
                        efficiency, or reliability of the 
                        movement of goods through a port or 
                        intermodal connection to a port;
                          (ii) the project is cost-effective;
                          (iii) the eligible applicant has 
                        authority to carry out the project;
                          (iv) the eligible applicant has 
                        sufficient funding available to meet 
                        the matching requirements under 
                        paragraph (8);
                          (v) the project will be completed 
                        without unreasonable delay; and
                          (vi) the project cannot be easily and 
                        efficiently completed without Federal 
                        funding or financial assistance 
                        available to the project sponsor.
                  (B) Additional considerations.--In selecting 
                projects described in paragraph (3) for funding 
                under this subsection, the Secretary shall give 
                substantial weight to--
                          (i) the utilization of non-Federal 
                        contributions; and
                          (ii) the net benefits of the funds 
                        awarded under this subsection, 
                        considering the cost-benefit analysis 
                        of the project, as applicable.
                  (C) Small projects.--The Secretary may waive 
                the cost-benefit analysis under subparagraph 
                (A)(ii), and establish a simplified, 
                alternative basis for determining whether a 
                project is cost-effective, for a small project 
                described in paragraph (7)(B).
          (7) Allocation of funds.--
                  (A) Geographic distribution.--Not more than 
                25 percent of the amounts made available for 
                grants under this subsection for a fiscal year 
                may be used to make grants for projects in any 
                1 State.
                  (B) Small projects.--The Secretary shall 
                reserve 25 percent of the amounts made 
                available for grants under this subsection each 
                fiscal year to make grants for eligible 
                projects described in paragraph (3)(A) that 
                request the lesser of--
                          (i) 10 percent of the amounts made 
                        available for grants under this 
                        subsection for a fiscal year; or
                          (ii) $1,000,000.
                  (C) Dredging projects.--Not more than 25 
                percent of the amounts made available for 
                grants under this subsection for a fiscal year 
                may be used to make grants for projects 
                described in paragraph (3)(A)(ii)(III).
                  (D) Development phase activities.--Not more 
                than 10 percent of the amounts made available 
                for grants under this subsection for a fiscal 
                year may be used to make grants for development 
                phase activities under paragraph (3)(B).
          (8) Federal share of total project costs.--
                  (A) Total project costs.--To be eligible for 
                a grant under this subsection, an eligible 
                applicant shall submit to the Secretary an 
                estimate of the total costs of a project under 
                this subsection based on the best available 
                information, including any available 
                engineering studies, studies of economic 
                feasibility, environmental analyses, and 
                information on the expected use of equipment or 
                facilities.
                  (B) Federal share.--
                          (i) In general.--Except as provided 
                        in clauses (ii) and (iii), the Federal 
                        share of the total costs of a project 
                        under this subsection shall not exceed 
                        80 percent.
                          (ii) Dredging projects.--The Federal 
                        share of the total costs of a project 
                        described in paragraph (3)(A)(ii)(III) 
                        shall not exceed 50 percent.
                          (iii) Rural areas.--The Secretary may 
                        increase the Federal share of costs 
                        above 80 percent for a project located 
                        in a rural area.
          (9) Procedural safeguards.--The Secretary shall issue 
        guidelines to establish appropriate accounting, 
        reporting, and review procedures to ensure that--
                  (A) grant funds are used for the purposes for 
                which they were made available;
                  (B) each grantee properly accounts for all 
                expenditures of grant funds; and
                  (C) grant funds not used for such purposes 
                and amounts not obligated or expended are 
                returned.
          (10) Grant conditions.--The Secretary shall require 
        as a condition of making a grant under this subsection 
        that a grantee--
                  (A) maintain such records as the Secretary 
                considers necessary;
                  (B) make the records described in 
                subparagraph (A) available for review and audit 
                by the Secretary; and
                  (C) periodically report to the Secretary such 
                information as the Secretary considers 
                necessary to assess progress.
          (11) Congressional notification.--
                  (A) Notification.--At least 60 days before 
                making a grant for a project under this 
                section, the Secretary shall notify, in 
                writing, the Committee on Commerce, Science, 
                and Transportation of the Senate and the 
                Committee on Transportation and Infrastructure 
                of the House of Representatives of the proposed 
                grant.
                  (B) Contents.--Each notification under 
                subparagraph (A) shall include--
                          (i) an evaluation of and 
                        justification for the project; and
                          (ii) the amount of the proposed grant 
                        award.
                  (C) Congressional disapproval.--The Secretary 
                may not make a grant or any other obligation or 
                commitment to fund a project under this section 
                if a joint resolution is enacted disapproving 
                funding for the project before the last day of 
                the 60-day period described in subparagraph 
                (A).
          (12) Limitation on statutory construction.--Nothing 
        in this subsection may be construed to affect existing 
        authorities to conduct port infrastructure programs 
        in--
                  (A) Hawaii, as authorized by section 9008 of 
                the SAFETEA-LU Act (Public Law 109-59; 119 
                Stat. 1926);
                  (B) Alaska, as authorized by section 10205 of 
                the SAFETEA-LU Act (Public Law 109-59; 119 
                Stat. 1934); or
                  (C) Guam, as authorized by section 3512 of 
                the Duncan Hunter National Defense 
                Authorization Act for Fiscal Year 2009 (48 
                U.S.C. 1421r).
          (13) Reports.--The Secretary shall make available on 
        the website of the Department of Transportation at the 
        end of each fiscal year an annual report that lists 
        each project for which a grant has been provided under 
        this subsection during that fiscal year.
          (14) Administration.--
                  (A) Administrative and oversight costs.--The 
                Secretary may retain not more than 1 percent of 
                the amounts appropriated for each fiscal year 
                under this subsection for the administrative 
                and oversight costs incurred by the Secretary 
                to carry out this subsection.
                  (B) Availability.--
                          (i) In general.--Amounts appropriated 
                        for carrying out this subsection shall 
                        remain available until expended.
                          (ii) Unexpended funds.--Amounts 
                        awarded as a grant under this 
                        subsection that are not expended by the 
                        grantee during the 4-year period 
                        following the date of the award shall 
                        remain available to the Secretary for 
                        use for grants under this subsection in 
                        a subsequent fiscal year.
          (15) Definitions.--In this subsection:
                  (A) Appropriate committees of congress.--The 
                term ``appropriate committees of Congress'' 
                means--
                          (i) the Committee on Commerce, 
                        Science, and Transportation of the 
                        Senate; and
                          (ii) the Committee on Transportation 
                        and Infrastructure of the House of 
                        Representatives.
                  (B) Port.--The term ``port'' includes--
                          (i) a sea port; and
                          (ii) an inland waterways port.
                  (C) Project.--The term ``project'' includes 
                construction, reconstruction, rehabilitation, 
                acquisition of property, including land related 
                to the project and improvements to the land, 
                equipment acquisition, and operational 
                improvements.
                  (D) Rural area.--The term ``rural area'' 
                means an area that is outside an urbanized 
                area.
  (d) Additional Authority of the Secretary.--In carrying out 
this section, the Secretary may--
          (1) receive funds from a Federal or non-Federal 
        entity that has a specific agreement with the Secretary 
        to further the purposes of this section;
          (2) coordinate with other Federal agencies to 
        expedite the process established under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) for the improvement of port facilities to improve 
        the efficiency of the transportation system, to 
        increase port security, or to provide greater access to 
        port facilities;
          (3) seek to coordinate all reviews or requirements 
        with appropriate local, State, and Federal agencies; 
        and
          (4) in addition to any financial assistance provided 
        under subsection (c), provide such technical assistance 
        to port authorities or commissions or their 
        subdivisions and agents as needed for project planning, 
        design, and construction.

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