Toll Credit Marketplace Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Toll Credit Marketplace Act''.

SEC. 2. TOLL CREDIT MARKETPLACE PILOT PROGRAM.

    (a) Definitions.--In this section:
            (1) Pilot program.--The term ``pilot program'' means the 
        toll credit marketplace pilot program established under 
        subsection (b).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (3) State.--The term ``State'' has the meaning given the 
        term in section 101 of title 23, United States Code.
            (4) Toll credit.--The term ``toll credit'' means the credit 
        that can be used toward the non-Federal share requirement under 
        section 120(i) of title 23, United States Code.
            (5) Toll credit marketplace.--The term ``toll credit 
        marketplace'' means a market in which toll credits can be 
        purchased and sold by States participating in the pilot 
        program.
    (b) Establishment.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall establish and implement a 
pilot program to develop a toll credit marketplace for States to buy 
and sell toll credits.
    (c) Purposes.--The purposes of the pilot program are--
            (1) to identify whether a monetary value can be assigned to 
        toll credits;
            (2) to identify the discounted rate of toll credits for 
        cash;
            (3) to determine if the purchase of toll credits by States 
        provides the purchasing State budget flexibility to deal with 
        funding issues, including off-system needs, transit systems 
        with high operating costs, or cash flow issues; and
            (4) to test the feasibility of expanding the toll credit 
        market to allow all States to participate on a permanent basis.
    (d) Administration.--In carrying out the pilot program, the 
Secretary--
            (1) shall establish procedures for a toll credit 
        marketplace;
            (2) shall establish an online platform that allows 
        participating States to offer and bid on toll credit purchases;
            (3) not later than 90 days after the date of enactment of 
        this Act, shall provide notice to States that the Federal 
        Highway Administration is requesting participants for the pilot 
        program;
            (4) shall allow to participate in the pilot program--
                    (A) a State that maintains a toll credit balance 
                accumulated before the date of enactment of this Act;
                    (B) a State that does not maintain infrastructure 
                for the collection of toll credits; and
                    (C) a State that has not accumulated a toll credit 
                balance; and
            (5) shall not allow a State to purchase or sell toll 
        credits in an amount that is less than 10 percent of the value 
        of the toll credit value if applied as a non-Federal share 
        requirement under section 120(i)(1) of title 23, United States 
        Code.
    (e) Reporting Requirements.--
            (1) Initial report.--Not later than 180 days after notice 
        of the pilot program is provided to the States under subsection 
        (d)(3), the Secretary shall submit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works of the Senate a report on the progress of the toll credit 
        marketplace.
            (2) State report.--Not later than 30 days after a purchase 
        or sale in the toll credit marketplace under the pilot 
        program--
                    (A) a State selling toll credits shall provide to 
                the Secretary information on the transaction, 
                including--
                            (i) the amount of cash received;
                            (ii) the value of toll credits sold;
                            (iii) the intended use of the cash; and
                            (iv) the remaining toll credit balance of 
                        the State; and
                    (B) a State purchasing toll credits shall provide 
                to the Secretary information on--
                            (i) the value of toll credits purchased;
                            (ii) the anticipated use of the toll 
                        credits; and
                            (iii) plans for maintenance of effort for 
                        spending on Federal-aid highway projects.
            (3) Annual report.--Not later than 1 year after notice of 
        the pilot program is provided to the States under subsection 
        (d)(3) and each year thereafter that the pilot program is in 
        effect, the Secretary shall--
                    (A) submit to the Committee on Transportation and 
                Infrastructure of the House of Representatives and the 
                Committee on Environment and Public Works of the Senate 
                a report that--
                            (i) evaluates whether a toll credit 
                        marketplace is viable;
                            (ii) describes the buying and selling 
                        activities of the toll credit marketplace;
                            (iii) determines the monetary value of toll 
                        credits;
                            (iv) evaluates whether the pilot program 
                        could be expanded to more States or all States; 
                        and
                            (v) provides updated information on the 
                        toll credit balance accumulated by each State; 
                        and
                    (B) make the report under subparagraph (A) publicly 
                available on the website of the Secretary.
    (f) Maintenance of Effort.--Except as provided in subsection 
(i)(2), a State participating in the toll credit marketplace shall be 
subject to section 120(i)(2) of title 23, United States Code.
    (g) Use of Funds Received for the Sale.--
            (1) In general.--A State that receives funds from the sale 
        of a toll credit may use the funds only for a project eligible 
        for assistance under chapter 1 of title 23, United States Code, 
        or chapter 53 of title 49, United States Code.
            (2) Certification.--Before expending any funds received in 
        exchange for a toll credit, the State shall--
                    (A) provide to the Secretary a certification that 
                the funds will be used as described in paragraph (1); 
                and
                    (B) receive approval from the Secretary under 
                paragraph (3).
            (3) Approval.--Not later than 30 days after the receipt of 
        a certification under paragraph (2), the Secretary shall send a 
        notice of decision to the State that--
                    (A) approves the certification; or
                    (B)(i) disapproves the certification; and
                    (ii) includes an explanation of the grounds for 
                disapproval and recommendations for addressing the 
                deficiencies.
            (4) Appeal.--If the Secretary disapproves the certification 
        under paragraph (3)(B)--
                    (A) not later than 30 days after a State receives a 
                notice of decision disapproving the certification, the 
                State may ask the Secretary to reconsider the decision; 
                and
                    (B) not later than 60 days after the Secretary 
                receives a request to reconsider under subparagraph 
                (A), the Secretary shall review the request and make a 
                determination.
    (h) Metropolitan Planning Organization and Local Government Toll 
Credit Allocation.--
            (1) Purchase of toll credits.--On request of a metropolitan 
        planning organization or local government in the State, and 
        with a timely payment of the amount of the toll credits, a 
        State may purchase toll credits under this section on behalf of 
        the metropolitan planning organization or local government.
            (2) Allocation of toll credits.--On approval of the 
        relevant metropolitan planning organization or local 
        government, a State may allocate toll credits purchased by the 
        State for use by the metropolitan planning organization or 
        local government.
    (i) Limitation on Use of Federal Funds for the Purchase of Toll 
Credits.--
            (1) Limitation on federal funds.--A State, metropolitan 
        planning organization, or local government may not use Federal 
        funds to purchase toll credits on the toll credit marketplace.
            (2) Use of toll credits.--A State may use toll credits 
        purchased under this section to meet not more than 10 percent 
        of the non-Federal share requirement for any funds made 
        available to carry out chapter 1 of title 23, United States 
        Code, or chapter 53 of title 49, United States Code, for each 
        fiscal year.
    (j) GAO Report.--After the end of the first year during which the 
toll credit marketplace is in operation, the Comptroller General of the 
United States shall--
            (1) conduct a study on the performance of the toll credit 
        marketplace; and
            (2) submit to Congress a report that includes--
                    (A) a determination as to whether the pilot program 
                is successful; and
                    (B) any recommendations on how to improve the pilot 
                program.
    (k) Sunset.--The pilot program shall terminate on September 30, 
2020.

Summary: Toll Credit Marketplace Act This bill directs the Department of Transportation to establish and implement a pilot program to develop a toll credit marketplace for states to buy and sell toll credits. States may use funds from the sale of toll credits to offset the nonfederal share of the cost of any transportation project. The Government Accountability Office shall study and report on the performance of the toll credit marketplace.