[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5908 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 5908
To establish the National Freight Mobility Infrastructure Fund, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 13, 2020
Mr. Smith of Washington (for himself and Mr. McNerney) introduced the
following bill; which was referred to the Committee on Transportation
and Infrastructure, and in addition to the Committee on Ways and Means,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To establish the National Freight Mobility Infrastructure Fund, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Freight Infrastructure Reinvestment
Act of 2020''.
SEC. 2. NATIONAL FREIGHT MOBILITY INFRASTRUCTURE IMPROVEMENT PROGRAM.
(a) Establishment.--The Secretary of Transportation shall establish
a National Freight Mobility Infrastructure Improvement Program under
which the Secretary is authorized to make grants, on a competitive
basis, to States and designated entities for eligible costs associated
with projects to improve efficiency and capacity with respect to
freight mobility in the United States.
(b) Grant Applications.--
(1) In general.--To be eligible to receive a grant under
the program a State or designated entity shall submit to the
Secretary an application at such time, in such form, and
containing such information as the Secretary may require.
(2) Solicitation.--The Secretary shall conduct a national
solicitation for applications under the program.
(c) Grant Criteria.--
(1) Establishment.--The Secretary, in accordance with this
subsection, shall establish criteria for selecting among
applications submitted for grants under the program.
(2) Requirements.--A project is eligible for a grant under
the program only if the Secretary determines that the project--
(A) is of national or regional significance,
including projects to assist--
(i) the construction of grade separations
at railroad, highway, and railroad-highway
junctions;
(ii) the construction of railroad bypasses
and spurs;
(iii) the construction of railroad side
tracks;
(iv) the expansion of rail and highway
tunnels to accommodate wider, taller, and
additional volumes of vehicular and rail
freight and container stacks;
(v) the addition of railroad track and
intermodal facilities at international
gateways, land, air, and sea ports, points of
congestion, and logistic centers;
(vi) highway and road construction
(including reinforcement for heavy weight
vehicles and heavy traffic volume) at
international gateways, land, air, and sea
ports, points of congestion, and logistic
centers, including freight intermodal
connectors, to better accommodate and speed the
flow of freight traffic;
(vii) the construction and improvement of
rail and highway bridges that carry a
substantial amount of freight;
(viii) the construction of highway ramps
built to carry a substantial amount of freight;
(ix) the construction of highway lanes,
including lanes that segregate freight and
passenger vehicular traffic; and
(x) the construction and improvement of
marine terminal facilities used for freight;
(B) will improve freight mobility, capacity, and
efficiency in the United States;
(C) is cost effective;
(D) is based on the results of preliminary
engineering;
(E) is justified based on the extent to which the
project--
(i) will enhance State, regional, or
national economic development, performance, and
efficiency as measured by--
(I) the creation of new businesses
and jobs and the retention of existing
businesses and jobs;
(II) State and local tax receipts;
and
(III) improved safety, as measured
by reductions in accidents, injuries,
and fatalities; and
(ii) will maximize economic opportunities
for communities; and
(F) is supported by an acceptable degree of non-
Federal financial commitments, including that--
(i) the project provides for the
availability of contingency amounts that, as
determined by the Secretary, are reasonable to
cover unanticipated cost increases; and
(ii) each proposed non-Federal source of
financing is stable, reliable, and available
within the project timetable.
(3) Considerations.--In selecting a project for a grant
under the program, the Secretary shall consider the extent to
which the project--
(A) meets the requirements specified in paragraph
(2);
(B) facilitates freight throughput of higher volume
and values;
(C) uses operational efficiencies, including
intelligent transportation systems, that enhance the
efficiency or effectiveness (or both) of the project;
(D) helps maintain or protect the environment; and
(E) improves or enhances segments of the National
Multimodal Freight Network established pursuant to
section 70103 of title 49, United States Code.
(d) Congressional Notification and Disapproval.--
(1) Notification.--
(A) In general.--At least 60 days before making a
grant for a project under the program, the Secretary
shall notify, in writing, the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and
Public Works and the Committee on Commerce, Science,
and Transportation of the Senate of the proposed grant.
(B) Contents.--The notification shall include an
evaluation and justification for each successful
project that includes--
(i) a detailed explanation of how the
project satisfied grant criteria and
considerations;
(ii) the amount of the proposed grant
award; and
(iii) an executive summary of the project
application submitted for funding.
(2) Disapproval.--The Secretary may not make a grant or any
other obligation or commitment to fund a project under the
program if a joint resolution is enacted disapproving funding
for the project before the last day of the 60-day period
described in paragraph (1)(A).
(e) Reports.--
(1) Annual report.--The Secretary shall make available on
the internet 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 the program
during that fiscal year.
(2) Comptroller general.--
(A) Assessment.--The Comptroller General of the
United States shall conduct an assessment of the
administrative establishment, solicitation, selection,
and justification process with respect to the funding
of grants under the program.
(B) Report.--Not later than 1 year after the
initial awarding of grants under the program, the
Comptroller General shall submit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and
Public Works and the Committee on Commerce, Science,
and Transportation of the Senate a report that
describes--
(i) the adequacy and fairness of the
process by which each project was selected, if
applicable; and
(ii) the justification and criteria used
for the selection of each project, if
applicable.
(f) Funding.--The Secretary shall carry out the program using
amounts made available to the Secretary from the National Freight
Mobility Infrastructure Fund established under section 9512 of the
Internal Revenue Code of 1986.
(g) Limitation on Grant Distribution.--Not more than 10 percent of
the amounts available during a fiscal year for grants under the program
may be used for projects located in a single State.
(h) Full Funding Grant Agreements.--The Secretary may enter into a
grant under the program that provides funding for a project in more
than 1 fiscal year. An agreement for such a grant shall--
(1) establish the maximum amount of Federal financial
assistance for the project;
(2) establish the time period for Federal financial
assistance for the project;
(3) provide grant funds for the fiscal year in which the
grant is made; and
(4) include a commitment, that is not an obligation of the
Federal Government and that is contingent on the availability
of funds, for grant amounts to be provided in fiscal years
following the fiscal year in which the grant is made.
(i) Non-Federal Financial Commitments.--
(1) Federal share.--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) Considerations.--In assessing the stability,
reliability, and availability of proposed sources of non-
Federal financing for purposes of subsection (c)(2)(F)(ii), the
Secretary shall consider--
(A) existing financial commitments;
(B) the degree to which financing sources are
dedicated to the purposes proposed;
(C) any debt obligation that exists or is proposed
by the grant recipient for the proposed project; and
(D) the extent to which the project has a non-
Federal financial commitment that exceeds the required
non-Federal share of the cost of the project.
(j) Highway Construction.--A grant made to assist the construction
of a highway under the program shall be subject to the requirements
relating to such construction under title 23, United States Code.
(k) Other Terms and Conditions.--The Secretary shall ensure that
all grants made under the program are subject to terms, conditions, and
requirements that the Secretary decides are necessary or appropriate
for purposes of this section, including requirements for the
disposition of net increases in the value of real property resulting
from the project assisted under the program.
(l) Administrative Costs.--In carrying out the program, the
Secretary shall seek to minimize administrative costs, including
overhead, enforcement, and auditing costs related to the program.
(m) Annual Report.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Secretary shall
submit to the Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the activities of the
Secretary under the program.
(n) Regulations.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall issue regulations to carry
out this section.
(o) Definitions.--In this section, the following definitions apply:
(1) Designated entity.--The term ``designated entity''
means--
(A) A State or a group of States.
(B) A metropolitan planning organization that
serves an urbanized area (as defined by the Bureau of
the Census) with a population of more than 200,000
individuals.
(C) A unit of local government or a group of local
governments.
(D) A political subdivision of a State or local
government.
(E) A special purpose district or public authority
with a transportation function, including a port
authority.
(F) A Tribal government or a consortium of Tribal
governments.
(G) A multistate or multijurisdictional group of
entities described in this paragraph.
(2) Eligible costs.--The term ``eligible costs'' means the
costs of a project with respect to--
(A) development phase activities, including
planning, feasibility analysis, revenue forecasting,
environmental review, preliminary engineering and
design work, and other preconstruction activities; and
(B) construction, reconstruction, rehabilitation,
acquisition of real property (including land related to
a project and improvements to land), environmental
mitigation, construction contingencies, acquisition of
equipment, and operational improvements.
(3) Program.--The term ``program'' means the National
Freight Mobility Infrastructure Improvement Program established
under subsection (a).
(4) State.--The term ``State'' has the meaning given such
term in section 101(a) of title 23, United States Code.
SEC. 3. FREIGHT MOBILITY INFRASTRUCTURE TAX.
(a) Imposition of Tax.--Chapter 33 of the Internal Revenue Code of
1986 is amended by adding after subchapter C the following new
subchapter:
``Subchapter D--Transportation By Freight And Highway
``Sec. 4286. Imposition of tax.
``SEC. 4286. IMPOSITION OF TAX.
``(a) In General.--There is hereby imposed upon taxable ground
transportation a tax equal to 1 percent of the amount rendered (to the
person by whom such transportation is done) as payment for such
transportation.
``(b) By Whom Paid.--
``(1) In general.--Except as provided by paragraph (2), the
tax imposed by subsection (a) shall be paid--
``(A) by the person rendering 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 taxpayer or a person related to the
taxpayer, the fair market value of such transportation shall be the
amount which would be paid for transporting such property if such
property were transported by an unrelated person, determined on an
arms' length basis.
``(d) Definitions.--For purposes of this subchapter--
``(1) Taxable ground transportation.--The term `taxable
ground transportation' means transportation of property (other
than passenger baggage) on railways or roads located in the
United States by--
``(A) freight rail, or
``(B) commercial motor vehicle (as defined in
section 31101(1) of title 49, United States Code,
determined without regard to subparagraph (A) of such
section) for a distance of more than 50 miles.
``(2) Related person.--A person (hereinafter in this
paragraph referred to as the `related person') is related to
any person if--
``(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 section
267(b) and 707(b)(1), `10 percent' shall be substituted for `50
percent'.
``(e) Exemption for United States and State and Local
Governments.--The tax imposed by subsection (a) shall not apply to
amounts paid by the United States, a State, or any 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) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury shall issue
regulations to carry out the amendments made by this section.
(d) Effective Date.--The amendments made by this section shall
apply to transportation beginning on or after the last day of the 180-
day period beginning on the date of the issuance of regulations under
subsection (c).
SEC. 4. NATIONAL FREIGHT MOBILITY INFRASTRUCTURE FUND.
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. NATIONAL FREIGHT MOBILITY INFRASTRUCTURE FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `National Freight
Mobility Infrastructure 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 to the Secretary of Transportation for each of the fiscal
years 2019 to 2044, without further appropriation, for making
expenditures to meet the obligations of the United States to carry out
section 2 of the Freight Infrastructure Reinvestment Act of 2020, not
more than 4 percent of which for any fiscal year may be used for
administrative expenses.''.
SEC. 5. REPORT TO CONGRESS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Secretary of Transportation shall submit to Congress a
report analyzing whether cargo is being routed to reduce the tax
imposed under section 4286 of the Internal Revenue Code of 1986.
(b) Consultation.--In carrying out the study, the Secretary shall
consult with the Surface Transportation Board.
(c) Recommendations.--If the Secretary determines that cargo is
being routed to reduce the tax imposed by section 4286 of the Internal
Revenue Code of 1986, the Secretary shall include in the report
recommendations on legislation necessary to avoid such routing.
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