National Multimodal and Sustainable Freight Infrastructure Act
This bill directs the Department of Transportation to improve the efficiency and reliability of freight movement in the United States by establishing (1) a Multimodal Freight Formula Program to distribute funds to each state based on the amount of existing infrastructure within the state; and (2) a National Freight Competitive Grant Program to provide grants to certain entities, including local governments and metropolitan planning organizations.
National and state freight plans must include strategies and goals to decrease greenhouse gas emissions, local air pollution, water runoff, and wildlife habitat loss.
The bill imposes a 1% excise tax upon the ground transportation cost of property and requires the deposit of such tax revenues into a Freight Trust Fund to finance the Multimodal Freight Formula Program and the National Freight Competitive Grant Program.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2723 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 2723
To amend title 49, United States Code, to establish a Multimodal
Freight Funding Formula Program and a National Freight Infrastructure
Competitive Grant Program to improve the efficiency and reliability of
freight movement in the United States, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 14, 2019
Mr. Lowenthal (for himself, Mr. Blumenauer, Mr. Cardenas, Mr.
Cartwright, Mr. Cisneros, Ms. Kelly of Illinois, Mr. Meadows, Ms.
Moore, Mrs. Napolitano, Mr. Pocan, Mr. Rouda, Mr. Takano, and Ms. Hill
of California) introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure, and in addition to the
Committee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend title 49, United States Code, to establish a Multimodal
Freight Funding Formula Program and a National Freight Infrastructure
Competitive Grant Program to improve the efficiency and reliability of
freight movement in the United States, 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 ``National Multimodal and Sustainable
Freight Infrastructure Act''.
SEC. 2. FREIGHT FUNDING PROGRAMS.
(a) In General.--Chapter 701 of title 49, United States Code, is
amended by adding at the end the following:
``Sec. 70104. Multimodal Freight Funding Formula Program
``(a) In General.--The Secretary of Transportation shall establish
a Multimodal Freight Funding Formula Program under which the Secretary
shall distribute funds to States to improve the efficiency and
reliability of freight movement in the United States.
``(b) Formula Apportionment.--Of funds made available to the
Secretary for a fiscal year to carry out the Multimodal Freight Funding
Formula Program under this section, the Secretary shall calculate the
amount available to be apportioned to a State based on the following:
``(1) 6.25 percent in the ratio that--
``(A) the number of ports in each State; bears to
``(B) the number of ports in all States.
``(2) 6.25 percent in the ratio that--
``(A) the number of rail track-miles used for the
movement of freight in each State; bears to
``(B) the number of such rail track-miles in all
States.
``(3) 6.25 percent in the ratio that--
``(A) the number of cargo-handling airports in each
State; bears to
``(B) the number of such airports in all States.
``(4) 6.25 percent in the ratio that--
``(A) the number of Interstate system miles in each
State; bears to
``(B) the number of Interstate system miles in all
States.
``(5) 37.5 percent in the ratio that--
``(A) the tonnage of rail, waterborne, highway, and
airport freight moved in each State; bears to
``(B) the tonnage of such freight moved in all
States.
``(6) 37.5 percent in the ratio that--
``(A) the value of rail, waterborne, highway and
airport freight moved in each State; bears to
``(B) the value of such freight moved in all
States.
``(c) Tier I Eligibility.--The Secretary shall provide to a State
in a fiscal year 40 percent of the amount of the funds available to the
State under subsection (b) for that fiscal year if the State--
``(1) has an established freight advisory committee in
accordance with section 70201;
``(2) developed any analyses or plans required for the
completion of a State freight plan in accordance with section
70202;
``(3) has an approved State freight plan;
``(4) has conducted a statewide analysis of freight needs
and bottlenecks on all modes of transportation, including
intermodal and last mile needs;
``(5) demonstrates use of the statewide analysis of freight
needs in prioritizing projects in the State freight plan;
``(6) demonstrates that the State will use the funding that
it is provided under this paragraph for the highest priority
projects identified in the freight investment plan described
under section 70202; and
``(7) demonstrates that the program of projects will use
the strategies and contribute to the goals described in the
State freight plan to decrease--
``(A) greenhouse gas emissions;
``(B) local air pollution, including ozone and
ozone precursors, nitrogen oxides, sulfur dioxide,
particulate matter, carbon monoxide, and lead;
``(C) water runoff and other adverse water impacts;
and
``(D) wildlife habitat loss.
``(d) Tier II Eligibility.--The Secretary shall provide to a State
in a fiscal year 60 percent of the amount of the funds available to the
State under subsection (b) for that fiscal year if the State--
``(1) has met the eligibility criteria of subsection (c);
``(2) has conducted, in cooperation with at least one other
State, a multistate analysis of freight needs and bottlenecks
on all modes of transportation, including intermodal and last
mile needs along a multistate freight corridor; and
``(3) has developed, in cooperation with at least one other
State or a relevant entity in Canada or Mexico, a regional
freight investment plan that focuses on the end-to-end
investment needs of critical multistate freight corridors based
on the multistate analysis of freight needs and bottlenecks on
all modes of transportation, including intermodal and last mile
needs.
``(e) Redistribution of Funds.--The Secretary shall make available
under the National Freight Infrastructure Competitive Grant Program
under section 70105 any funds that--
``(1) the Secretary calculated under subsection (b) as
available to a State for a fiscal year but did not provide to
that State for that fiscal year under subsection (c) or
subsection (d); or
``(2) the Secretary provided to a State under subsection
(c) or subsection (d) but remain unobligated in that State at
the end of the third fiscal year following the fiscal year in
which they were provided to the State.
``(f) Eligible Uses.--A State may use funds provided under this
section only for--
``(1) the development of corridor freight plans or regional
freight plans; or
``(2) one or more phases of capital projects, equipment, or
operational improvements on roads, rails, landside
infrastructure on ports and airports, and intermodal connectors
included in a State freight plan for projects that--
``(A) maintain or improve the efficiency and
reliability of freight supply chains;
``(B) demonstrate public freight benefits;
``(C) improve modal components of a multimodal
corridor that is critical to a State or region;
``(D) address freight needs to facilitate a
regionally or nationally significant economic
development issue;
``(E) in accordance with the State freight plan,
decrease--
``(i) greenhouse gas emissions;
``(ii) local air pollution, including ozone
and ozone precursors, nitrogen oxides, sulfur
dioxide, particulate matter, carbon monoxide,
and lead;
``(iii) water runoff and other adverse
water impacts; and
``(iv) wildlife habitat loss;
``(F) are multimodal, multi-jurisdictional, or
corridor-based and address freight needs;
``(G) relieve freight or non-freight access,
congestion, or safety issues; or
``(H) address first and last mile connectors.
``(g) EPA Report.--A State that receives funds under this section
shall collect data and, beginning 1 year from the date of the
completion of each project or project phase that receives such funds,
and annually thereafter for 15 years, report to the Secretary and the
Administrator of Environmental Protection Agency on progress made
toward greenhouse gas emission reductions and local air pollution
reductions in accordance with the State freight plan. All relevant data
and reporting shall be collected and reported in accordance with
guidance developed by the Administrator in consultation with the
Secretary.
``(h) Federal Share.--
``(1) In general.--The Federal share of the cost of a
project carried out by a State using funds provided under this
section may not be more than 80 percent.
``(2) Additional federal share.--The Federal share of the
cost of a project carried out by a State using funds provided
under this section may be increased by 5 percent if the such 5
percent is used for the mitigation of diesel emissions from
construction activities associated with the project. The
Administrator of Environmental Protection Agency, in
consultation with the Secretary, shall develop guidance for
eligible equipment and activities consistent with existing
State, local, and nonprofit clean construction guidelines.
``(i) Reservation of Funds for Territories.--Before making a
calculation under subsection (b), the Secretary shall withhold funds
for distribution to each territory in an amount based on the freight
infrastructure need of the territories, as determined by the Secretary.
Such funds shall not otherwise be made available for distribution under
this section.
``(j) Authorization of Appropriations.--There is authorized to be
appropriated from the Freight Trust Fund to carry out this section an
amount equal to 50 percent of the receipts of the Freight Trust Fund
for each fiscal year beginning in fiscal year 2020.
``(k) Administration and Oversight Costs.--The Secretary may retain
up to one-half of 1 percent of the amounts available to carry out this
section for each fiscal year for the cost of administration and
oversight of projects funded under this section.
``(l) Availability of Funds.--Amounts authorized under subsection
(j) shall be--
``(1) available for obligation on October 1 of the fiscal
year for which they are authorized; and
``(2) available until expended.
``(m) Application of Rate Requirements.--The Secretary shall take
such action as may be necessary to apply the requirements described
under section 113 of title 23, as applicable, to any project receiving
funds under this section.
``(n) Definitions.--In this section:
``(1) State.--The term `State' means each of the 50 States,
the District of Columbia, and Puerto Rico.
``(2) State freight plan.--The term `State freight plan'
means the State freight plan described under section 70202.
``(3) Territory.--The term `territory' has the meaning
given such term in section 165(c)(1) of title 23.
``Sec. 70105. National Freight Infrastructure Competitive Grant Program
``(a) Establishment.--The Secretary of Transportation shall
establish a National Freight Infrastructure Competitive Grant Program
under which the Secretary shall make grants, on a competitive basis, to
designated entities for eligible projects to improve the efficiency and
reliability of freight movement in the United States.
``(b) Project Goals.--In carrying out the Program, the Secretary
shall prioritize projects that--
``(1) improve the efficiency and reliability of freight
transportation;
``(2) reduce the cost of freight transportation;
``(3) improve the safety of freight transportation;
``(4) relieve bottlenecks in the freight transportation
system;
``(5) improve the state of good repair of the freight
transportation system;
``(6) contribute to the environmental goals described in
the State freight plan; and
``(7) reduce the adverse impacts of freight transportation
on communities traversed by freight.
``(c) Grant Applications.--To be eligible to receive a grant under
the Program a designated entity shall submit to the Secretary an
application at such time, in such form, and containing such information
as the Secretary may require.
``(d) Eligible Project.--A project is eligible for a grant under
the Program only if the Secretary determines that the project--
``(1) that is--
``(A) a capital investment project for a
transportation infrastructure facility significantly
used for the movement of freight; or
``(B) infrastructure necessary to mitigate the
adverse impact of freight transportation on communities
traversed by freight, including--
``(i) a road, rail, or landside air or
water facility;
``(ii) an intermodal facility such as a
seaport or port on the inland waterway system,
an airport, or a highway and rail intermodal
facility;
``(iii) a facility related to an
international border crossing;
``(iv) is for an operational improvement or
equipment of a facility described in this
paragraph; or
``(v) railway-roadway grade separations and
related improvements;
``(2) will help to achieve the goals set out in subsection
(b);
``(3) has non-Federal source or sources of committed
financing, along with any Federal funds, sufficient to complete
the project;
``(4) has independent utility;
``(5) is included in the State freight plan; and
``(6) includes the development of project plans and
analysis.
``(e) Grant Criteria.--The Secretary shall select eligible projects
for funding based on the following criteria:
``(1) The extent to which the project is likely to advance
the goals described in subsection (b).
``(2) The likely benefits of the project relative to its
costs.
``(3) The extent to which the project demonstrates the use
of innovative technology, strategies, and practices.
``(4) The extent to which the project uses onroad
construction vehicles and nonroad construction equipment that
meet the emission standards of the Environmental Protection
Agency.
``(5) The extent to which the project demonstrates
effective reductions (in accordance with the State freight
plan) in--
``(A) greenhouse gas emissions;
``(B) local air pollution, including ozone and
ozone precursors, nitrogen oxides, sulfur dioxide,
particulate matter, carbon monoxide, and lead;
``(C) water runoff and other adverse water impacts;
and
``(D) wildlife habitat loss.
``(6) The likely effect of the project on increasing United
States exports.
``(7) The consistency of the project with the national
freight strategic plan described under section 70102.
``(8) The extent to which the project leverages Federal
funds by matching State, territorial, local, tribal, or private
funds to the Federal funding requested under the Program.
``(9) The extent to which funds for the project are not
available from other Federal sources.
``(f) Special Rule.--A minimum of 5 percent of funds made available
under the Program for a fiscal year shall be provided to zero-emission
freight demonstration projects, as defined by the Secretary of
Transportation, in consultation with the Administrator of the
Environmental Protection Agency.
``(g) Retrospective Analysis.--A grant agreement made under the
Program shall require that the recipient collect data and report to the
Secretary, at an appropriate time as determined by the Secretary, on--
``(1) the actual cost of constructing the project;
``(2) the time required to complete the project and put it
into service;
``(3) the level of usage of the facility built or improved
by the project;
``(4) the benefits of the project, measured in a way that
is consistent with the benefits that were estimated in the
application for funding that was submitted to the Secretary;
and
``(5) any costs resulting from the project in addition to
the costs of constructing the project.
``(h) EPA Report.--A grant agreement made under the Program shall
require that the recipient collect data and, beginning 1 year from the
date of the completion of the project and annually thereafter for 15
years, report to the Secretary and the Administrator of Environmental
Protection Agency on progress made toward greenhouse gas emission
reductions and local air pollution reductions in accordance with the
State freight plan. All relevant data and reporting shall be collected
and reported in accordance with guidance developed by the Administrator
in consultation with the Secretary.
``(i) Period of Availability.--In entering into agreements under
this section, the Secretary shall ensure that any funds made available
for a project that are not obligated or expended before the last day of
the third fiscal year following the fiscal year in which the funds are
made available are transferred back to the Secretary for making grants
under the Program.
``(j) Redistribution of Funds.--If a designated entity that
received a grant under this section has made no obligation of funding
with respect to such grant by the end of the third fiscal year
following the fiscal year in which the Secretary awarded the grant, the
Secretary shall--
``(1) withdraw the grant from the designated entity; and
``(2) apply the funding to another grant under this
section.
``(k) Federal Share.--
``(1) In general.--The Federal share of the cost of a
project for which a grant is made under the Program, as
estimated by the Secretary, shall be not more than 80 percent.
``(2) Additional federal share.--The Federal share of the
cost of a project carried out by a State using funds provided
under this section may be increased by 5 percent if the such 5
percent is used for the mitigation of diesel emissions from
construction activities associated with the project. The
Administrator of Environmental Protection Agency, in
consultation with the Secretary, shall develop guidance for
eligible equipment and activities consistent with existing
State, local, and nonprofit clean construction guidelines.
``(l) Administration and Oversight Costs.--The Secretary may retain
up to one-half of 1 percent of the amounts made available to carry out
this section for each fiscal year for the cost of administration and
oversight of projects funded under the Program.
``(m) Authorization and Availability of Funds.--
``(1) Authorization.--There is authorized to be
appropriated from the Freight Trust Fund to carry out this
section an amount equal to 50 percent of the receipts of the
Freight Trust Fund for each fiscal year beginning in fiscal
year 2020.
``(2) Availability.--Amounts authorized under paragraph (1)
shall be--
``(A) available for obligation on October 1 of the
fiscal year for which they are authorized; and
``(B) available for obligation until expended.
``(n) Application of Rate Requirements.--The Secretary shall take
such action as may be necessary to apply the requirements described
under section 113 of title 23, as applicable, to any project receiving
funds under this section.
``(o) Definitions.--In this section:
``(1) Designated entity.--The term `designated entity'
means--
``(A) a State;
``(B) a unit of local government;
``(C) a metropolitan planning organization;
``(D) a public transportation authority (including
a port authority);
``(E) a tribal government; or
``(F) or a consortium of the entities described in
this paragraph.
``(2) State.--The term `State' means any of the 50 States,
the District of Columbia, Puerto Rico, American Samoa, the
Commonwealth of the Northern Mariana Islands, Guam, and the
United States Virgin Islands.
``(3) State freight plan.--The term `State freight plan'
means the State freight plan described under section 70202.''.
(b) Conforming Amendment.--The table of sections for chapter 701 of
title 49, United States Code, is amended by adding at the end the
following:
``70104. Multimodal Freight Funding Formula Program.
``70105. National Freight Infrastructure Competitive Grant Program.''.
SEC. 3. NATIONAL AND STATE FREIGHT PLANS.
(a) National Freight Strategic Plan.--Section 70102(b) of title 49,
United States Code, is amended--
(1) in paragraph (10) by striking ``and'' at the end;
(2) in paragraph (11) by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(12) best practices to reduce greenhouse gas emissions,
local air pollution, water runoff, and wildlife habitat
loss.''.
(b) State Freight Advisory Committees.--Section 70201 of title 49,
United States Code, is amended--
(1) in subsection (a) by striking ``representatives of
ports, freight railroads,'' and all that follows through
``local governments'' and inserting the following:
``representatives of--
``(1) ports;
``(2) freight railroads;
``(3) shippers;
``(4) carriers;
``(5) freight-related associations;
``(6) third-party logistics providers;
``(7) the freight industry workforce;
``(8) the transportation department of the State;
``(9) metropolitan planning organizations;
``(10) local governments;
``(11) the environmental protection department of the
State, if applicable; and
``(12) the air resources board of the State, if
applicable'';
(2) by redesignating subsection (b) as subsection (c);
(3) by inserting after subsection (a) the following:
``(b) Qualifications.--Each member of a freight advisory committee
established under subsection (a) shall be widely recognized to have
qualifications sufficient to represent the interests of such member's
stakeholder group, including, as applicable--
``(1) a general business and financial experience;
``(2) experience or qualifications in the areas of freight
transportation and logistics;
``(3) experience in transportation planning;
``(4) experience representing employees of the freight
industry; or
``(5) experience representing a State, local government, or
metropolitan planning organization.''; and
(4) in subsection (b)--
(A) in paragraph (5) by inserting ``, including
advising on the development of the freight investment
plan'' after ``70202''; and
(B) by adding at the end the following:
``(6) approve the State freight plan under section 70202,
including the freight investment plan.''.
(c) State Freight Plans.--Section 70202 of title 49, United States
Code, is amended--
(1) in subsection (b)--
(A) in paragraph (9)--
(i) by inserting ``and section 70104''
after ``section 167 of title 23''; and
(ii) by striking ``and'' at the end;
(2) by redesignating paragraph (10) as paragraph (12);
(3) by inserting after paragraph (9) the following:
``(10) strategies and goals to decrease--
``(A) greenhouse gas emissions;
``(B) local air pollution, including ozone and
ozone precursors, nitrogen oxides, sulfur dioxide,
particulate matter, carbon monoxide, and lead;
``(C) water runoff and other adverse water impacts;
and
``(D) wildlife habitat loss;
``(11) strategies and goals to decrease the adverse impact
of freight transportation on communities traversed by freight
railroads; and'';
(4) by redesignating subsection (e) as subsection (f); and
(5) by inserting after subsection (d) the following:
``(e) Certification.--The Secretary shall approve a freight plan if
such plan meets the requirements of this section and is consistent with
the National freight strategic plan described in section 70102. The
Secretary, in consultation with the Administrator of the Environmental
Protection Agency shall certify any environmental goal or strategy
provisions of the plan.''.
SEC. 4. FREIGHT TRUST FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 9512. FREIGHT TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Freight Trust
Fund' (hereinafter in this section referred to as the `Fund')
consisting of such amounts as may be appropriated or credited to such
Fund as provided in this section or section 9602(b).
``(b) Transfers to the Fund.--There are hereby appropriated to the
Fund amounts equivalent to taxes received in the Treasury under section
4286.
``(c) Expenditures From Fund.--Amounts in the Fund shall be made
available, as provided by appropriation Acts, for making expenditures
to meet obligations authorized to be paid out of the Fund under section
2 of the National Multimodal and Sustainable Freight Infrastructure
Act.''.
(b) Clerical Amendment.--The table of sections for subchapter A of
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
``Sec. 9512. Freight Trust Fund.''.
SEC. 5. FREIGHT MOBILITY INFRASTRUCTURE TAX.
(a) Imposition of Tax.--Chapter 33 of the Internal Revenue Code of
1986 is amended by inserting after subchapter C the following new
subchapter:
``Subchapter D--Ground Transportation Freight Tax
``Sec. 4286. Imposition of tax.
``SEC. 4286. IMPOSITION OF TAX.
``(a) In General.--There is hereby imposed upon taxable ground
transportation of property within the United States a tax equal to 1
percent of the amount paid for such transportation.
``(b) By Whom Paid.--
``(1) In general.--The tax imposed by subsection (a) shall
be paid--
``(A) by the person making the payment subject to
tax, or
``(B) in the case of transportation by a related
person, by the person for whom such transportation is
made.
``(2) Determinations of amounts paid in certain cases.--For
purposes of this section, rules similar to the rules of section
4271(c) shall apply.
``(c) Transportation by Related Persons.--In the case of
transportation of property by the shipper or a person related to the
shipper, 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.
``(d) Definitions and Special Rule.--For purposes of this
subchapter--
``(1) Taxable ground transportation.--The term `taxable
ground transportation' means transportation of property by--
``(A) freight rail, or
``(B) truck trailer and semitrailer chassis and
bodies, suitable for use with a trailer or semitrailer
which has a gross vehicle weight of 26,000 pounds or
more.
For purposes of subparagraph (B), the terms `truck trailer' and
`semitrailer' have the same meanings as such terms have in
section 4051.
``(2) Related person.--A person (hereinafter in this
paragraph referred to as the `related person') is related to
any person if--
``(A) the related person bears a relationship to
such person specified in section 267(b) or 707(b)(1),
or
``(B) 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 sections
267(b) and 707(b)(1), `10 percent' shall be substituted for `50
percent' each place it appears.
``(3) Transportation outside the united states.--In the
case an amount paid for transportation any portion of which is
outside the United States, the portion of such amount paid
which is allocable to transportation within the United States
shall be determined under regulations prescribed by the
Secretary. Such regulations shall include rules to include
transportation outside the United States the primary purpose of
which is to avoid the tax imposed by this section.
``(e) Exemption for United States and Possessions and State and
Local Governments.--The tax imposed by subsection (a) shall not apply
to amounts paid for transportation of property purchased for the
exclusive use of the United States, or any State or political
subdivision thereof.''.
(b) Credits or Refunds to Persons Who Collected Certain Taxes.--
Section 6415 of such Code is amended by striking ``or 4271'' each place
it appears and inserting ``4271, or 4286''.
(c) Clerical Amendment.--The table of subchapters for chapter 33 of
the Internal Revenue Code of 1986 is amended by inserting after the
item relating to subchapter C the following new item:
``subchapter d. ground transportation freight tax''.
(d) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury shall issue
regulations to carry out the amendments made by this section.
(e) Effective Date.--The amendments made by this section shall
apply to transportation beginning on or after the last day of the 180-
day period beginning on the date of the issuance of regulations under
subsection (c).
<all>
Introduced in House
Introduced in House
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Highways and Transit.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line