I 

108TH CONGRESS 

1ST SESSION H. R. 3398

To amend title 23, United States Code, to establish a goods movement 

program to improve the productivity, security, and safety of freight 

transportation gateways. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 29, 2003

Ms. MILLENDER-MCDONALD introduced the following bill; which was referred 

to the Committee on Transportation and Infrastructure 

A BILL

To amend title 23, United States Code, to establish a goods 

movement program to improve the productivity, security, 

and safety of freight transportation gateways.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Goods Movement Act 

5 of 2003’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) Growth in international trade has become 

9 increasingly important to the welfare of the domestic 
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1 economy and economic security, as demonstrated by 

2 the fact that between 1970 and 1999 the share of 

3 the United States gross domestic product accounted 

4 for by trade in goods and services grew from 10.7 

5 percent to 26.9 percent. 

6 (2) Increased growth in international trade 

7 places a disproportionate demand on our surface 

8 transportation infrastructure concentrated in our 

9 major international gateways, metropolitan and 

10 urban centers, and trade corridors, resulting in a 

11 high concentration of freight traffic relative to total 

12 vehicle movement and growing congestion which is 

13 adversely affecting regional mobility, safety, security, 

14 and environmental quality in affected communities 

15 and the reliability and sustainability of our national 

16 transportation system and the global connectivity 

17 underpinning our national economy. 

18 (3) In the decades coinciding with completion of 

19 the national defense highway and rail systems, the 

20 population of the United States has grown by 40 

21 percent since 1970, the number of registered vehi22 cles has increased by 100 percent, and in con23 centrated areas trade-generated truck traffic has 

24 grown at double-digit compounded rates while road 

25 capacity has increased by only 6 percent. 
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1 (4) Continued explosive growth in international 

2 trade puts increasing pressure on public and private 

3 infrastructure, particularly at global gateways, to in4 crease throughput velocity, and fuels national and 

5 regional demand for additional surface transpor6 tation infrastructure at the Federal, State, and local 

7 levels, and will require collaborative initiatives 

8 among system users to maximize the use of existing 

9 capacity, adopt best industry practices, and plan and 

10 finance system improvements driven by goods move11 ment demand. 

12 (5) Comprehending the nature, and systemati13 cally calculating and measuring the dimensions, of 

14 this trade-generated demand is critically important 

15 to planning and meeting the associated infrastruc16 ture needs and institutional changes necessary to en17 sure that safe, secure, and efficient movement of our 

18 Nation’s goods to the ultimate consignees and des19 tinations across the Nation. 

20 (6) International gateway and intermodal trade 

21 corridor freight infrastructure movement, research, 

22 project planning, investment, and financing must be 

23 a priority in this Act. 

24 (7) Critical intermodal freight projects with na25 tional and regional economic significance, but with 
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1 associated local impacts, are often difficult to shep2 herd, achieve consensus support, and fund through 

3 the current metropolitan planning process. 

4 (8) The importance of safe, secure, and effi5 cient goods movement to the health and welfare of 

6 the national economy should recognized by the es7 tablishment of a goods movement program. 

8 SEC. 3. GOODS MOVEMENT PROGRAM. 

9 (a) IN GENERAL.—Subchapter 1 of chapter 1 of title 

10 23, United States Code, is amended by adding at the end 

11 the following: 

12 ‘‘§ 165. Goods movement program 

13 ‘‘(a) ESTABLISHMENT AND PURPOSES.—

14 ‘‘(1) ESTABLISHMENT.—The Secretary shall es15 tablish a goods movement program to improve the 

16 productivity, security, and safety of freight transpor17 tation gateways, while mitigating congestion and 

18 community impacts in the area of such gateways. 

19 ‘‘(2) PURPOSES.—The purposes of the goods 

20 movement program shall be—

21 ‘‘(A) to facilitate and support multimodal 

22 freight transportation initiatives at the State, 

23 regional, and local levels in order to improve 

24 freight transportation gateways and mitigate 

25 congestion in the area of such gateways; 
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1 ‘‘(B) to provide capital funding to address 

2 infrastructure and freight operational needs at 

3 freight transportation corridors and gateways; 

4 ‘‘(C) to encourage adoption of new financ5 ing strategies to leverage State, local, and pri6 vate investment in freight transportation gate7 ways; and 

8 ‘‘(D) to support military mobilization and 

9 readiness. 

10 ‘‘(b) ELIGIBLE PROJECTS.—

11 ‘‘(1) IN GENERAL.—Intermodal freight trans12 portation projects that provide community and high13 way benefits by addressing economic, congestion, se14 curity, safety, and environmental issues associated 

15 with freight transportation corridors and gateways 

16 shall be eligible for funding under this section. 

17 ‘‘(2) TYPES OF PROJECTS.—Projects eligible for 

18 funding under paragraph (1) shall be limited to the 

19 following:

20 ‘‘(A) Projects to facilitate access to inter21 modal freight transfer facilities. 

22 ‘‘(B) Projects on—

23 ‘‘(i) National Highway System routes 

24 connecting to intermodal freight terminals 

25 identified according to criteria set forth in 
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1 the report to Congress entitled ‘Pulling To2 gether: The National Highway System and 

3 its Connections to Major Intermodal Ter4 minals’, dated May 24, 1996, and any 

5 modifications to these connections con6 sistent with subparagraph (D); and 

7 ‘‘(ii) the Strategic Highway Network 

8 (commonly known as ‘STRAHNET’), in9 cluding connectors to strategic military de10 ployment ports. 

11 ‘‘(C) Projects on high priority corridors 

12 identified in section 1105(c) of the Intermodal 

13 Surface Transportation Act of 1991 (105 Stat. 

14 2032). 

15 ‘‘(D) Projects to separate railroad and 

16 road crossings and make other railroad and 

17 road interface improvements. 

18 ‘‘(c) SELECTION CRITERIA.—In selecting projects 

19 under the goods movement program, the Secretary shall 

20 give priority to a project that exhibits the following cri21 teria: 

22 ‘‘(1) Enhances national, regional, and local 

23 economies by allowing for economic development and 

24 growth, as measured by—
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1 ‘‘(A) impact on the Nation’s gross domes2 tic product; 

3 ‘‘(B) increases in new businesses and jobs; 

4 ‘‘(C) State and local tax receipts; 

5 ‘‘(D) changes in prices and manufacturing 

6 efficiencies; and 

7 ‘‘(E) improved safety as measured by re8 ductions in accidents, injuries, and fatalities. 

9 ‘‘(2) Seeks to maximize economic opportunities 

10 for communities, including increasing local hiring. 

11 ‘‘(3) Considers factors such as improved mobil12 ity, congestion relief, energy consumption, air pollu13 tion, and noise pollution. 

14 ‘‘(4) Demonstrates availability of local resources 

15 to augment the transportation infrastructure. 

16 ‘‘(5) Leverages incremental funding as meas17 ured by non-Federal, public and private investment 

18 projects, and uses innovative financing and local 

19 funding and financing by attracting local public and 

20 private investment. 

21 ‘‘(6) Integrates and deploys intelligent trans22 portation technologies. 

23 ‘‘(7) Encourages and facilitates regional part24 nerships to develop high priority corridors identified 
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1 in section 1105(c) of the Intermodal Surface Trans2 portation Efficiency Act of 1991. 

3 ‘‘(8) Encourages or facilitates major multistate 

4 or regional mobility and economic growth and devel5 opment in areas underserved by existing highway in6 frastructure. 

7 ‘‘(9) Reduces commercial and other travel time 

8 through a major national gateway or affected port of 

9 entry expected as a result of the proposed project in10 cluding the level of traffic delays at at-grade high11 way crossings of major rail lines in trade corridors. 

12 ‘‘(d) GRANTS.—

13 ‘‘(1) GENERAL AUTHORITY.—

14 ‘‘(A) GRANTS.—The Secretary may make 

15 grants under the goods movement program to 

16 assist State and local governmental authorities 

17 in financing—

18 ‘‘(i) capital projects, including prop19 erty and improvements; 

20 ‘‘(ii) the capital costs of coordinating 

21 projects under the program with other 

22 transportation modes; 

23 ‘‘(iii) the introduction of new tech24 nology, through innovative and improved 

25 products, into projects under the program; 
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1 ‘‘(iv) capital projects to modernize ex2 isting corridors and gateways; and 

3 ‘‘(v) the development of corridors to 

4 support and expand the safe, secure, and 

5 efficient movement of goods, including pro6 tecting rights of way through acquisition, 

7 construction of dedicated truck and high 

8 occupancy vehicle lanes and other non9 vehicular capital improvements that the 

10 Secretary may decide would result in miti11 gating congestion in such corridors. 

12 ‘‘(B) TERMS AND CONDITIONS.—The Sec13 retary shall require that all grants under the 

14 goods movement program be subject to all 

15 terms, conditions, requirements, and provisions 

16 the Secretary decides are necessary or appro17 priate for the purposes of this section, including 

18 requirements for the disposition of net increases 

19 in the value of real property resulting from the 

20 project assisted under the program. 

21 ‘‘(2) PROJECT AS PART OF APPROVED PROGRAM

22 OF PROJECTS.—Except as provided in paragraph 

23 (3), the Secretary may approve a grant for a project 

24 under the goods movement program only after find25 ing that the project is part of the approved program 
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1 of projects required under sections 134 and 135 and 

2 that an applicant—

3 ‘‘(A) has or will have the legal, financial, 

4 and technical capacity to carry out the project, 

5 satisfactory continuing control over the use of 

6 equipment or facilities (excluding equipment 

7 and facilities owned by railroads), and the capa8 bility to maintain the equipment or facilities; 

9 and 

10 ‘‘(B) will maintain the equipment or facili11 ties. 

12 ‘‘(3) CRITERIA FOR GRANTS.—

13 ‘‘(A) IN GENERAL.—The Secretary may 

14 approve a grant under this section for a project 

15 under the goods movement program only if the 

16 Secretary determines that the proposed project 

17 is—

18 ‘‘(i) based on the results of an alter19 natives analysis and preliminary engineer20 ing; 

21 ‘‘(ii) justified based on a comprehen22 sive review of its mobility improvements, 

23 environmental benefits, cost effectiveness, 

24 and operating efficiencies; and 
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1 ‘‘(iii) supported by an acceptable de2 gree of local financial commitment, includ3 ing evidence of stable and dependable fi4 nancing sources to construct, maintain, 

5 and operate the system or extension. 

6 ‘‘(B) CORRIDOR DEVELOPMENT AND MAN7 AGEMENT PLANS.—The Secretary shall not re8 quire an applicant for a grant under this sec9 tion for a project to undertake activities to 

10 demonstrate that the project complies with the 

11 requirements of subparagraph (A) to the extent 

12 that the Secretary can make a determination 

13 under subparagraph (A) based on a corridor de14 velopment and management plan developed 

15 under section 1118(d) of the Transportation 

16 Equity Act for the 21st Century (112 Stat. 

17 162) and any other studies and materials devel18 oped for the project under that section. 

19 ‘‘(C) ALTERNATIVES ANALYSIS AND PRE20 LIMINARY ENGINEERING.—In evaluating a 

21 project under subparagraph (A)(i), the Sec22 retary shall analyze and consider the results of 

23 the alternatives analysis and preliminary engi24 neering for the project. 
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1 ‘‘(D) PROJECT JUSTIFICATION.—In evalu2 ating a project, the Secretary shall give priority 

3 consideration to a project that exhibits the cri4 teria established in subsection (c). 

5 ‘‘(E) LOCAL FINANCIAL COMMITMENT.—

6 ‘‘(i) EVALUATION OF PROJECT.—In 

7 evaluating a project under subparagraph 

8 (A)(iii), the Secretary shall require that—

9 ‘‘(I) the proposed project plan 

10 provides for the availability of contin11 gency amounts that the Secretary de12 termines to be reasonable to cover un13 anticipated cost increases; and 

14 ‘‘(II) each proposed local source 

15 of capital and operating financing is 

16 stable, reliable, and available within 

17 the proposed project timetable. 

18 ‘‘(ii) CONSIDERATIONS.—In assessing 

19 the stability, reliability, and availability of 

20 proposed sources of local financing under 

21 clause (i), the Secretary shall consider—

22 ‘‘(I) existing grant commitments; 

23 ‘‘(II) the degree to which financ24 ing sources are dedicated to the pur25 poses proposed; 
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1 ‘‘(III) any debt obligation that 

2 exists or is proposed by the recipient 

3 for the proposed project; and 

4 ‘‘(IV) the extent to which the 

5 project has a local financial commit6 ment that exceeds the required non7 Federal share of the cost of the 

8 project. 

9 ‘‘(F) REGULATIONS.—Not later than 120 

10 days after the date of enactment of this section, 

11 the Secretary shall issue regulations on the 

12 manner in which the Secretary will evaluate and 

13 rate the projects based on the results of alter14 natives analysis, project justification, and the 

15 degree of local financial commitment, as re16 quired under this paragraph. 

17 ‘‘(G) PROJECT EVALUATION AND RAT18 ING.—A proposed project may advance from al19 ternatives analysis to preliminary engineering, 

20 and may advance from preliminary engineering 

21 to final design and construction, only if the Sec22 retary finds that the project meets the require23 ments of this subsection and there is a reason24 able likelihood that the project will continue to 

25 meet such requirements. In making such find-
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1 ings, the Secretary shall evaluate and rate the 

2 project as ‘highly recommended’, ‘rec3 ommended’, or ‘not recommended’, based on the 

4 results of alternatives analysis, the project jus5 tification criteria, and the degree of local finan6 cial commitment, as required under this para7 graph. In rating the projects, the Secretary 

8 shall provide, in addition to the overall project 

9 rating, individual ratings for each of the criteria 

10 established under the regulations issued under 

11 subparagraph (F). 

12 ‘‘(H) FULL FUNDING GRANT AGREE13 MENT.—A project financed under this sub14 section shall be carried out through a full fund15 ing grant agreement. The Secretary shall enter 

16 into a full funding grant agreement based on 

17 the evaluations and ratings required under this 

18 subsection. The Secretary shall not enter into a 

19 full funding grant agreement for a project un20 less that project is authorized for final design 

21 and construction. 

22 ‘‘(4) FULL FUNDING GRANT AGREEMENTS AND

23 EARLY SYSTEMS WORK AGREEMENTS.—

24 ‘‘(A) FULL FUNDING GRANT AGREE25 MENTS.—
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1 ‘‘(i) IN GENERAL.—The Secretary 

2 may make a full funding grant agreement 

3 with an applicant. The agreement shall—

4 ‘‘(I) establish the terms of par5 ticipation by the United States Gov6 ernment in a project under this sub7 section; 

8 (II) establish the maximum 

9 amount of Government financial as10 sistance for the project; 

11 (III) cover the period of time for 

12 completing the project, including a pe13 riod extending beyond the period of 

14 an authorization; and 

15 (IV) make timely and efficient 

16 management of the project easier ac17 cording to the law of the United 

18 States.

19 ‘‘(ii) OBLIGATION OF AMOUNTS.—An 

20 agreement under this subparagraph obli21 gates an amount of available budget au22 thority specified in law and may include a 

23 commitment, contingent on amounts to be 

24 specified in law in advance for commit25 ments under this subparagraph, to obligate 
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1 an additional amount from future available 

2 budget authority specified in law. The 

3 agreement shall state that the contingent 

4 commitment is not an obligation of the 

5 Government. Interest and other financing 

6 costs of efficiently carrying out a part of 

7 the project within a reasonable time are a 

8 cost of carrying out the project under a 

9 full funding grant agreement, except that 

10 eligible costs may not be more than the 

11 cost of the most favorable financing terms 

12 reasonably available for the project at the 

13 time of borrowing. The applicant shall cer14 tify, in a way satisfactory to the Secretary, 

15 that the applicant has shown reasonable 

16 diligence in seeking the most favorable fi17 nancing terms. The amount stipulated in 

18 an agreement under this subparagraph for 

19 a project shall be sufficient to complete at 

20 least an operable segment. 

21 ‘‘(B) EARLY SYSTEMS WORK AGREE22 MENTS.—

23 ‘‘(i) IN GENERAL.—The Secretary 

24 may make an early systems work agree25 ment with an applicant if a record of deci-
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1 sion under the National Environmental 

2 Policy Act of 1969 (42 U.S.C. 4321 et 

3 seq.) has been issued on the project and 

4 the Secretary finds there is reason to be5 lieve—

6 ‘‘(I) a full funding grant agree7 ment for the project will be made; and 

8 ‘‘(II) the terms of the work 

9 agreement will promote ultimate com10 pletion of the project more rapidly 

11 and at less cost. 

12 ‘‘(ii) OBLIGATION OF AMOUNTS.—A 

13 work agreement under this subparagraph 

14 obligates an amount of available budget 

15 authority specified in law and shall provide 

16 for reimbursement of preliminary costs of 

17 carrying out the project, including land ac18 quisition, timely procurement of system 

19 elements for which specifications are de20 cided, and other activities the Secretary 

21 decides are appropriate to make efficient, 

22 long-term project management easier. A 

23 work agreement shall cover the period of 

24 time the Secretary considers appropriate. 

25 The period may extend beyond the period 
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1 of current authorization. Interest and 

2 other financing costs of efficiently carrying 

3 out the work agreement within a reason4 able time are a cost of carrying out the 

5 agreement, except that eligible costs may 

6 not be more than the cost of the most fa7 vorable financing terms reasonably avail8 able for the project at the time of bor9 rowing. The applicant shall certify, in a 

10 way satisfactory to the Secretary, that the 

11 applicant has shown reasonable diligence in 

12 seeking the most favorable financing 

13 terms. If an applicant does not carry out 

14 the project for reasons within the control 

15 of the applicant, the applicant shall repay 

16 all Government payments made under the 

17 work agreement plus reasonable interest 

18 and penalty charges the Secretary estab19 lishes in the agreement. 

20 ‘‘(C) TOTAL OF FUTURE OBLIGATIONS.—

21 The total estimated amount of future obliga22 tions of the Government and contingent com23 mitments to incur obligations covered by all 

24 outstanding letters of intent, full funding grant 

25 agreements, and early systems work agreements 
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1 may be not more than the greater of the 

2 amount authorized to carry out this section, 

3 less an amount the Secretary reasonably esti4 mates is necessary for grants under this sub5 section not covered by a letter. The total 

6 amount covered by new letters and contingent 

7 commitments included in full funding grant 

8 agreements and early systems work agreements 

9 may be not more than a limitation specified in 

10 law. 

11 ‘‘(5) GOVERNMENT’S SHARE OF NET PROJECT

12 COST.—Based on engineering studies, studies of eco13 nomic feasibility, and information on the expected 

14 use of equipment or facilities, the Secretary shall es15 timate the net project cost. A grant for the project 

16 is for 80 percent of the net project cost, unless the 

17 grant recipient requests a lower grant percentage.

18 The remainder shall be provided in cash from a 

19 source other than amounts of the Government. 

20 Amounts that make up the remainder must be from 

21 an undistributed cash surplus, a replacement or de22 preciation cash fund or reserve, or new capital. A 

23 refund or reduction of the remainder may be made 

24 only if a refund of a proportional amount of the 

25 grant of the Government is made at the same time. 
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1 ‘‘(6) FINANCIAL PLAN.—A recipient of Federal 

2 financial assistance for a project under this section 

3 with an estimated total cost of $100,000,000 or 

4 more shall submit to the Secretary an annual finan5 cial plan for the project. The plan shall be based on 

6 detailed annual estimates of the cost to complete the 

7 remaining elements of the project and on reasonable 

8 assumptions, as determined by the Secretary, of fu9 ture increases in the cost to complete the project. 

10 ‘‘(7) FISCAL CAPACITY CONSIDERATIONS.—If 

11 the Secretary gives priority consideration to financ12 ing projects that include more than the non-Govern13 ment share required under paragraph (5), the Sec14 retary shall give equal consideration to differences in 

15 the fiscal capacity of State and local governments. 

16 ‘‘(8) UNDERTAKING PROJECTS IN ADVANCE.—

17 The Secretary may pay the Government’s share of 

18 the net project costs to a State or local govern19 mental authority that carries out any part of a 

20 project described in this subsection without the aid 

21 of amounts of the Government and according to all 

22 applicable procedures and requirements if—

23 ‘‘(A) the State or local governmental au24 thority applies for the payment; 
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1 ‘‘(B) the Secretary approves the payment; 

2 and 

3 ‘‘(C) before carrying out the part of the 

4 project, the Secretary approves the plans and 

5 specifications for the part in the same way as 

6 other projects under the goods movement pro7 gram. 

8 ‘‘(9) REPORTS.—Not later than the first Mon9 day in February of each year, the Secretary shall 

10 submit to the Congress a report that includes a pro11 posal on the allocation of amounts to be made avail12 able to finance grants for capital projects under the 

13 goods movement program for those amounts. 

14 ‘‘(e) SPECIFIC DESIGNATIONS.—

15 ‘‘(1) IN GENERAL.—Notwithstanding any other 

16 provision of this section, Congress deems the fol17 lowing to be projects of national economic signifi18 cance: [To Be Supplied]. 

19 ‘‘(2) REPORTS.—Not later than October 1, 

20 2005, and October 1, 2007, project recipients under 

21 this section shall submit to the Secretary and the 

22 Congress a report enumerating the national eco23 nomic significance of the project. 

24 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—
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1 ‘‘(1) IN GENERAL.—There is authorized to be 

2 appropriated out of the Highway Trust Fund (other 

3 than the Mass Transit Account) to carry out this 

4 section $3,000,000,000 for each of fiscal years 2004 

5 through 2009. Of such amount, $1,500,000,000 per 

6 fiscal year shall be available only for carrying out 

7 projects designated under subsection (e). 

8 ‘‘(2) ALLOCATION OF AMOUNTS.—Not to exceed 

9 8 percent of the amounts made available to carry 

10 out this section in a fiscal year may be used for 

11 planning, design, preliminary engineering, and 

12 projects with a total cost of less than $25,000,000. 

13 ‘‘(g) CONTRACT AUTHORITY.—Sums authorized to be 

14 appropriated to carry out this section shall be available 

15 for obligation in the same manner as funds apportioned 

16 under section 104(b)(1), except that such amounts shall 

17 not be counted toward a State’s allocation under section 

18 105 and shall not be subject to any obligation limitation.’’. 

19 (b) CONFORMING AMENDMENT.—The analysis for 

20 subchapter I of chapter I of such title is amended by add21 ing at the end the following:

‘‘165. Goods movement program.’’.

22 (c) REPEAL.—Section 1118 of the Transportation 

23 Equity Act for the 21st Century (23 U.S.C. 101 note; 112 

24 Stat. 161) is repealed.

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