Freight Infrastructure Reinvestment Act of 2013

Summary: Freight Infrastructure Reinvestment Act of 2013 - Directs the Secretary of Transportation (DOT) to establish a National Freight Mobility Infrastructure Improvement Program to award competitive grants to states and designated entities for eligible costs of projects to improve the efficiency and capacity of freight mobility in the United States. Amends the Internal Revenue Code to establish a National Freight Mobility Infrastructure Fund to carry out projects under this Act. Imposes a tax on taxable ground transportation of property equal to 1% of its fair market value. Requires transfer into the Fund of amounts equivalent to the tax.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Freight Infrastructure Reinvestment 
Act of 2013''.

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 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; 
                        and
                            (ix) the construction of highway lanes, 
                        including lanes that segregate freight and 
                        passenger vehicular traffic;
                    (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) complements and supports the objectives of 
                applicable freight plans developed by States under 
                section 1118 of MAP-21 (23 U.S.C. 167 note);
                    (C) facilitates freight throughput of higher volume 
                and values;
                    (D) uses operational efficiencies, including 
                intelligent transportation systems, that enhance the 
                efficiency or effectiveness (or both) of the project;
                    (E) helps maintain or protect the environment; and
                    (F) improves or enhances segments of the primary 
                freight network designated under section 167(d) of 
                title 23, United States Code.
    (d) Notice to Congress.--Not less than 90 days before making a 
grant under the program, the Secretary shall submit to Congress written 
notice of the grant.
    (e) 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.
    (f) 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.
    (g) Full Funding Grant Agreements.--The Secretary may enter into a 
grant under the program that provides funding for a project in more 
than one 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.
    (h) 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.
    (i) 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.
    (j) 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.
    (k) 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.
    (l) 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.
    (m) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall issue regulations to carry 
out this section.
    (n) Definitions.--In this section, the following definitions apply:
            (1) Designated entity.--The term ``designated entity'' 
        means--
                    (A) an entity designated by the chief executive 
                officer of a State (or the chief executive officer's 
                designee) as eligible to apply for and receive funding 
                under the program;
                    (B) a regional authority responsible under the laws 
                of a State for a project eligible for funding under the 
                program; and
                    (C) a public port.
            (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 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.--Except as provided by paragraph (2), 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) Payments made outside the united states.--If a 
        payment subject to tax under subsection (a) is made outside the 
        United States and the person making such payment does not pay 
        such tax, such tax--
                    ``(A) shall be paid by the person to whom the 
                property is delivered in the United States after the 
                final segment of transportation in the United States, 
                and
                    ``(B) shall be collected by the person furnishing 
                the last segment of such transportation.
            ``(3) 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.--
                    ``(A) In general.--The term `taxable ground 
                transportation' means transportation of property by--
                            ``(i) freight rail, or
                            ``(ii) commercial motor vehicle (as defined 
                        in section 31101(1) of title 49, United States 
                        Code) for a distance of more than 50 miles.
                    ``(B) Passenger baggage excluded.--For purposes of 
                subparagraph (A), the term `property' does not include 
                baggage accompanying a passenger traveling on an 
                established line.
            ``(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) Transfer of Amounts Equivalent to Tax to National Freight 
Mobility Infrastructure Fund.--There are hereby appropriated to the 
National Freight Mobility Infrastructure Fund amounts equivalent to the 
taxes received in the Treasury under subsection (a).
    ``(f) Exemption for United States and Possessions and State and 
Local Governments.--The tax imposed by subsection (a) shall not apply 
to the transportation of property purchased for the exclusive use of 
the United States, or any State or political subdivision thereof.''.
    (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 2014 to 2039, 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 2013, not 
more than 4 percent of which for any fiscal year may be used for 
administrative expenses.''.