I 

114TH CONGRESS 

1ST SESSION H. R. 3398 

To improve the condition and performance of the national multimodal freight 

network, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 29, 2015 

Mr. REICHERT (for himself, Mr. KILMER, and Ms. HERRERA BEUTLER) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure 

A BILL 

To improve the condition and performance of the national 

multimodal freight network, and for other purposes. 

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 ‘‘National Multimodal 

5 Freight Policy and Investment Act’’. 

6 SEC. 2. NATIONAL MULTIMODAL FREIGHT POLICY. 

7 (a) ESTABLISHMENT.—Subtitle III of title 49, 

8 United States Code, is amended by inserting after chapter 

9 53 the following: 


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1 ‘‘CHAPTER 54—FREIGHT 

2 ‘‘§ 5401. Definitions 

3 ‘‘In this chapter: 

4 ‘‘(1) FREIGHT TRANSPORTATION MODES.—The 

5 term ‘freight transportation modes’ means any mode 

6 of transportation that moves freight, including air7 ports, highways, ports and waterways, rail, and pipe8 line. 

9 ‘‘(2) NATIONAL MULTIMODAL FREIGHT NET10 WORK.—The term ‘national multimodal freight net11 work’ means the network established under section 

12 5403. 

13 ‘‘(3) NATIONAL MULTIMODAL FREIGHT STRA14 TEGIC PLAN.—The term ‘national multimodal 

15 freight strategic plan’ means the strategic plan de16 veloped under section 5404. 

17 ‘‘(4) SECRETARY.—The term ‘Secretary’ means 

18 the Secretary of Transportation. 

19 ‘‘(5) STATE.—The term ‘State’ means a State 

20 of the United States, the District of Columbia, Puer21 to Rico, the Northern Mariana Islands, Guam, 

22 American Samoa, and the Virgin Islands. 

23 ‘‘§ 5402. National multimodal freight policy 

24 ‘‘(a) POLICY.—It is the policy of the United States 

25 to support investment in the condition and performance 


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1 of the national multimodal freight network to ensure the 

2 United States maximizes its competitiveness in the global 

3 economy and achieves each goal described in subsection 

4 (b). 

5 ‘‘(b) GOALS.—The goals of the national multimodal 

6 freight policy are to enhance the economic competitiveness 

7 of the United States and improve quality of life— 

8 ‘‘(1) by increasing the overall productivity and 

9 connectivity of the national freight system; 

10 ‘‘(2) by improving the safety, security, and re11 siliency of freight transportation; 

12 ‘‘(3) by reducing the congestion of freight 

13 transportation; 

14 ‘‘(4) by improving the reliability of freight 

15 transportation; and 

16 ‘‘(5) by reducing, eliminating, or reversing ad17 verse environmental and local community impacts of 

18 freight projects and freight movement in the United 

19 States. 

20 ‘‘(c) STRATEGY.—The strategies that the United 

21 States may use to achieve the goals set forth in subsection 

22 (b) include— 

23 ‘‘(1) dedicated funding to maintain and improve 

24 freight infrastructure facilities and operations; 


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1 ‘‘(2) appropriate safety, environmental, energy 

2 and other transportation policies; 

3 ‘‘(3) advanced technology and innovation; 

4 ‘‘(4) workforce development; and 

5 ‘‘(5) use of performance management. 

6 ‘‘(d) DEFINITION OF ECONOMIC COMPETITIVE7 NESS.—In this section, the term ‘economic competitive8 ness’ means the ability of the economy to more efficiently 

9 move freight and people, produce goods, and deliver serv10 ices, including— 

11 ‘‘(1) reductions in the travel time of freight and 

12 people; 

13 ‘‘(2) reductions in the congestion caused by the 

14 movement of freight and people; 

15 ‘‘(3) improvements to travel time reliability; and 

16 ‘‘(4) reductions in freight transportation costs 

17 due to congestion and insufficient infrastructure. 

18 ‘‘§ 5403. National multimodal freight network 

19 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab20 lish a national multimodal freight network in accordance 

21 with this section— 

22 ‘‘(1) to inform public and private planning; 

23 ‘‘(2) to assist in the prioritization of Federal in24 vestment; 


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1 ‘‘(3) to direct the use of Federal resources 

2 under section 5404; 

3 ‘‘(4) to assess and support Federal investments 

4 to achieve the national multimodal freight policy 

5 goals described in section 5402(b); and 

6 ‘‘(5) to help States define and prioritize local 

7 community impacts of freight movement. 

8 ‘‘(b) NETWORK COMPONENTS.—The national 

9 multimodal freight network shall consist of all connectors, 

10 corridors, and facilities in all freight transportation modes 

11 that are the most critical to the current and future move12 ment of freight to achieve the national multimodal freight 

13 policy goals described in section 5402(b). 

14 ‘‘(c) DESIGNATION OF THE NATIONAL MULTIMODAL

15 FREIGHT NETWORK.— 

16 ‘‘(1) INITIAL DESIGNATION.—Not later than 3 

17 years after the date of enactment of the National 

18 Multimodal Freight Policy and Investment Act, the 

19 Secretary shall designate a national multimodal 

20 freight network— 

21 ‘‘(A) using measurable data, including 

22 measurable data provided by States, to assess 

23 the significance of freight movement, including 

24 consideration of points of origin, destination, 


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1 and linking components of domestic and inter2 national supply chains; 

3 ‘‘(B) improving network and intermodal 

4 connectivity; and 

5 ‘‘(C) reflecting input from stakeholders, in6 cluding multimodal freight system users, trans7 port providers, metropolitan planning organiza8 tions, local governments, seaports, airports, 

9 railroads, and States, through a public process 

10 to identify critical freight facilities and cor11 ridors that are vital to achieve the national 

12 multimodal freight policy goals described in sec13 tion 5402(b). 

14 ‘‘(2) REDESIGNATION.—Beginning 5 years 

15 after the date of the initial designation of the na16 tional multimodal freight network under paragraph 

17 (1), and every 5 years thereafter, using the designa18 tion factors described in paragraph (3), the Sec19 retary shall redesignate the national multimodal 

20 freight network. 

21 ‘‘(3) FACTORS.—In designating or redesig22 nating the national multimodal freight network, the 

23 Secretary shall consider— 


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1 ‘‘(A) origins and destinations of freight 

2 movement within, to, and from the United 

3 States; 

4 ‘‘(B) volume of freight, including value and 

5 tonnage; 

6 ‘‘(C) population centers; 

7 ‘‘(D) border crossings, airports, and sea8 ports; 

9 ‘‘(E) economic factors; 

10 ‘‘(F) freight chokepoints and other impedi11 ments contributing to significant measurable 

12 congestion, delay in freight movement, or ineffi13 cient modal connections; 

14 ‘‘(G) facilities of future freight importance 

15 based on input from stakeholders and analysis 

16 of projections for future growth and changes to 

17 the national freight system; 

18 ‘‘(H) impacts on all freight transportation 

19 modes and modes that share significant freight 

20 infrastructure; 

21 ‘‘(I) elements and transportation corridors 

22 identified by a multi-State coalition, State, 

23 State advisory committee, or metropolitan plan24 ning organization using national or local data 


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1 as having critical freight importance to the re2 gion; and 

3 ‘‘(J) intermodal connectors, major distribu4 tion centers, inland intermodal facilities, and 

5 first- and last-mile facilities. 

6 ‘‘§ 5404. National multimodal freight strategic plan 

7 ‘‘(a) INITIAL DEVELOPMENT.—Not later than 3 

8 years after the date of enactment of the National 

9 Multimodal Freight Policy and Investment Act, the Sec10 retary, in consultation with State departments of trans11 portation, metropolitan planning organizations, local gov12 ernments, and other appropriate public and private freight 

13 transportation stakeholders, shall develop, maintain, and 

14 post on the Department of Transportation public website 

15 a national multimodal freight strategic plan. 

16 ‘‘(b) REQUIREMENTS.—The initial and each revised 

17 national multimodal freight strategic plan shall include— 

18 ‘‘(1) an assessment of the current condition and 

19 performance of the national multimodal freight net20 work, and the ability of the network to meet the pol21 icy and goals described in section 5402; 

22 ‘‘(2) an assessment of statutory, regulatory, 

23 technological, institutional, financial, and other bar24 riers to improved freight transportation performVerDate Sep 11 2014 04:15 Aug 07, 2015 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3398.IH H3398

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1 ance, including opportunities for overcoming the bar2 riers; 

3 ‘‘(3) an analysis of emerging and long-term pro4 jected trends in economic and national trade policies, 

5 public health, workforce availability, and environ6 mental conditions that will impact the performance, 

7 needs, safety, and uses of the national transpor8 tation system to move freight; 

9 ‘‘(4) an identification of freight chokepoints on 

10 the national multimodal freight network that create 

11 significant freight congestion problems, based on a 

12 quantitative methodology developed by the Secretary 

13 and using the analysis under paragraph (3); 

14 ‘‘(5) an identification of major international 

15 and domestic trade gateways and corridors that con16 nect major population centers and ports of entry; 

17 ‘‘(6) a projection of current and forecasted traf18 fic and freight volumes on the gateways and cor19 ridors identified under paragraph (5); 

20 ‘‘(7) an identification of major agricultural and 

21 energy rural production areas and other major in22 land freight generators; 

23 ‘‘(8) an identification of the gateways and cor24 ridors that connect the major inland freight genera25 tors identified in paragraph (7) to ports of entry; 


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1 ‘‘(9) the best practices for improving the oper2 ational and safety performance of the national 

3 multimodal freight network; 

4 ‘‘(10) the best practices to reduce, minimize, 

5 and mitigate the environmental and other impacts of 

6 freight movement on communities; 

7 ‘‘(11) a process for addressing multistate 

8 projects and encouraging jurisdictions to collaborate; 

9 ‘‘(12) strategies to improve freight intermodal 

10 connectivity, including bulk transloading facilities; 

11 ‘‘(13) the development of more consistent and 

12 accurate data to measure freight movement domesti13 cally and internationally; and 

14 ‘‘(14) the identification of federally designated 

15 strategic defense ports and nearby freight 

16 chokepoints that create significant congestion which 

17 could hamper the flow of military equipment and 

18 personnel to those ports. 

19 ‘‘(c) UPDATES.— 

20 ‘‘(1) IN GENERAL.—Not later than 5 years 

21 after the date the initial national multimodal freight 

22 strategic plan under subsection (a) is complete, and 

23 every 10 years thereafter, the Secretary shall update 

24 and repost on the Department of Transportation 


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1 public website a revised national multimodal freight 

2 strategic plan. 

3 ‘‘(2) MAJOR INTERNATIONAL AND DOMESTIC

4 TRADE GATEWAYS AND CORRIDORS.—The identifica5 tion of major international and domestic trade gate6 ways and corridors that connect major population 

7 centers and ports of entry under subsection (b)(5) 

8 shall be updated, as appropriate, in each revised na9 tional multimodal freight strategic plan. 

10 ‘‘§ 5405. National multimodal freight advisory com11 mittee 

12 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab13 lish a national multimodal freight advisory committee in 

14 the Department of Transportation consisting of a bal15 anced cross-section of public and private freight stake16 holders representative of all freight transportation modes, 

17 including— 

18 ‘‘(1) airports, highways, ports and waterways, 

19 rail, and pipeline; 

20 ‘‘(2) shippers; 

21 ‘‘(3) carriers; 

22 ‘‘(4) freight-related associations; 

23 ‘‘(5) the freight industry workforce; 

24 ‘‘(6) State departments of transportation; 

25 ‘‘(7) local governments; 


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1 ‘‘(8) metropolitan planning organizations; 

2 ‘‘(9) regional or local transportation authorities, 

3 such as port authorities; 

4 ‘‘(10) freight safety organizations; and 

5 ‘‘(11) university research centers. 

6 ‘‘(b) PURPOSE.—The purpose of the committee is to 

7 help promote a safe, economically efficient, and environ8 mentally sustainable national freight system. 

9 ‘‘(c) DUTIES.—The committee, in consultation with 

10 State departments of transportation and metropolitan 

11 planning organizations, shall provide advice and rec12 ommendations to the Secretary on matters related to 

13 freight transportation in the United States, including— 

14 ‘‘(1) the implementation of freight transpor15 tation requirements; 

16 ‘‘(2) the establishment of a national multimodal 

17 freight network under section 5403; 

18 ‘‘(3) the development of the national 

19 multimodal freight strategic plan under section 

20 5404; 

21 ‘‘(4) the development of measures of conditions 

22 and performance in freight transportation; 

23 ‘‘(5) the development of freight transportation 

24 investment, data, and planning tools; and 

25 ‘‘(6) recommendations for Federal legislation. 


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1 ‘‘(d) QUALIFICATIONS.—Each member of the com2 mittee shall have qualifications sufficient to represent the 

3 interests of the member’s specific stakeholder group, such 

4 as— 

5 ‘‘(1) general business and financial experience; 

6 ‘‘(2) experience or qualifications in the areas of 

7 freight transportation and logistics; 

8 ‘‘(3) experience in transportation planning, 

9 safety, technology, or workforce issues; 

10 ‘‘(4) experience representing employees of the 

11 freight industry; 

12 ‘‘(5) experience representing State or local gov13 ernments or metropolitan planning organizations in 

14 transportation-related issues; or 

15 ‘‘(6) experience in trade economics relating to 

16 freight flows. 

17 ‘‘(e) SUPPORT STAFF, INFORMATION, AND SERV18 ICES.—The Secretary shall provide support staff for the 

19 committee. On request of the committee, the Secretary 

20 shall provide information, administrative services, and 

21 supplies that the Secretary considers necessary for the 

22 committee to carry out its duties. 

23 ‘‘(f) NONAPPLICATION OF FACA.—Section 14 of the 

24 Federal Advisory Committee Act (5 App. U.S.C.) does not 

25 apply to the committee. 


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1 ‘‘§ 5406. State freight plans 

2 ‘‘(a) IN GENERAL.—Each State that receives a grant 

3 under this chapter shall develop a freight plan that pro4 vides a comprehensive plan for the immediate and long5 range planning activities and investments of the State 

6 with respect to freight. 

7 ‘‘(b) CONTENTS.—Each State freight plan shall in8 clude— 

9 ‘‘(1) an identification of significant freight sys10 tem trends, needs, and issues with respect to the 

11 State and each neighboring State with which high 

12 levels of trade occurs or logistical dependence exists; 

13 ‘‘(2) a description of the freight policies, strate14 gies, and performance measures that will guide the 

15 freight-related transportation investment decisions of 

16 the State to achieve a reasonable balance in freight 

17 transportation modes; 

18 ‘‘(3) a description of how the plan will improve 

19 the ability of the State to meet the goals of the na20 tional multimodal freight policy described in section 

21 5402(b) and any relevant State multimodal freight 

22 policy; 

23 ‘‘(4) evidence that the State will consider inno24 vative technologies and operational strategies, in25 cluding intelligent transportation systems, that im26 prove the safety and efficiency of freight movement 


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1 and provide multimodal transportation systems inte2 gration for information sharing; 

3 ‘‘(5) in the case of routes on public infrastruc4 ture on which heavy vehicles travel (including min5 ing, agricultural, energy cargo or equipment, and 

6 timber vehicles) or other conditions exist that are 

7 projected to substantially deteriorate the condition of 

8 those routes, a description of improvements that 

9 may be required to reduce or impede the deteriora10 tion, including the use of alternate freight transpor11 tation modes; 

12 ‘‘(6) an inventory of facilities and corridors 

13 with freight mobility or accessibility issues, such 

14 freight chokepoints, within the State, and a descrip15 tion of the strategies the State will employ to ad16 dress those freight mobility or accessibility issues; 

17 ‘‘(7) consideration of any significant congestion 

18 or delay caused by freight movements and any strat19 egies to mitigate that congestion or delay; and 

20 ‘‘(8) a priority freight investment plan that in21 cludes a list of priority projects, a methodology to 

22 prioritize future projects, and an explanation of how 

23 those investments achieve the goals of the national 

24 multimodal freight policy described in section 


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1 5402(b) and any relevant State multimodal freight 

2 policy. 

3 ‘‘(c) RELATIONSHIP TO STATEWIDE STRATEGIC

4 LONG-RANGE TRANSPORTATION PLAN.— 

5 ‘‘(1) IN GENERAL.—A State may develop its 

6 State freight plan with, and incorporate the plan 

7 into, its statewide strategic long-range transpor8 tation plan. The State freight plan may be separate 

9 from the long-range transportation plan, but shall be 

10 consistent with the long-range transportation plan. 

11 The State freight plan shall be consistent with the 

12 State rail plan under section 22702 for that State. 

13 ‘‘(2) FISCAL CONSTRAINTS.—The priority 

14 freight investment plan of a State freight plan under 

15 subsection (b)(8) shall include a project, or an iden16 tified phase of a project, only if funding for comple17 tion of the project can reasonably be anticipated to 

18 be available for the project within the time period 

19 identified in the priority freight investment plan. 

20 ‘‘(3) PLANNING PERIOD.—Each State freight 

21 plan shall address a 10-year forecast period. 

22 ‘‘(4) UPDATES.— 

23 ‘‘(A) IN GENERAL.—A State shall update 

24 its State freight plan as frequently as the State 


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1 determines necessary, but not less frequently 

2 than once every 10 years. 

3 ‘‘(B) PRIORITY FREIGHT INVESTMENT

4 PLAN.—A State shall update its priority freight 

5 investment plan as frequently as the State de6 termines necessary, but at least once every 5 

7 years. 

8 ‘‘(d) CONSULTATION.—Each State shall consult with 

9 applicable Federal, State, and local agencies relevant to 

10 land use and programming processes when developing a 

11 State freight plan under this section, including the State’s 

12 freight advisory committee under section 5407. 

13 ‘‘§ 5407. State freight advisory committees 

14 ‘‘(a) ESTABLISHMENT.—As a condition of, and prior 

15 to, receiving a grant under this chapter, a State shall es16 tablish and maintain a freight advisory committee con17 sisting of a balanced cross-section of public and private 

18 freight stakeholders representative of all freight transpor19 tation modes, including— 

20 ‘‘(1) as applicable, airports, highways, ports 

21 and waterways, rail, and pipeline; 

22 ‘‘(2) shippers; 

23 ‘‘(3) carriers; 

24 ‘‘(4) freight-related associations; 

25 ‘‘(5) the freight industry workforce; 


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1 ‘‘(6) the State department of transportation; 

2 ‘‘(7) local governments; 

3 ‘‘(8) metropolitan planning organizations; 

4 ‘‘(9) local transportation authorities, such as 

5 port authorities; 

6 ‘‘(10) freight safety organizations; and 

7 ‘‘(11) university research centers. 

8 ‘‘(b) QUALIFICATIONS.—Each member of the advi9 sory committee shall have qualifications sufficient to rep10 resent the interests of the member’s specific stakeholder 

11 group, such as— 

12 ‘‘(1) general business and financial experience; 

13 ‘‘(2) experience or qualifications in the areas of 

14 freight transportation and logistics; 

15 ‘‘(3) experience in transportation planning, 

16 safety, or workforce issues; 

17 ‘‘(4) experience representing employees of the 

18 freight industry; 

19 ‘‘(5) experience representing State or local gov20 ernments, or metropolitan planning organizations in 

21 transportation-related issues; or 

22 ‘‘(6) experience in trade economics relating to 

23 freight flows. 

24 ‘‘(c) DUTIES.—A freight advisory committee of a 

25 State described in subsection (a) shall— 


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1 ‘‘(1) advise the State on freight-related prior2 ities, issues, projects, and funding needs; 

3 ‘‘(2) serve as a forum for discussion for State 

4 transportation decisions affecting freight movement; 

5 ‘‘(3) communicate and coordinate regional pri6 orities with other freight-related organizations; 

7 ‘‘(4) promote the sharing of information be8 tween the private and public sectors on freight 

9 issues; and 

10 ‘‘(5) participate in the development of the State 

11 freight plan under section 5406, including advising 

12 on the development of a priority freight investment 

13 plan under subsection (b)(8) of that section. 

14 ‘‘§ 5408. Conditions and performance reports 

15 ‘‘(a) IN GENERAL.—Not later than 3 years after the 

16 date of enactment of the National Multimodal Freight 

17 Policy and Investment Act, and biennially thereafter, the 

18 Secretary shall prepare and submit to Congress a report 

19 that describes the conditions and performance of the na20 tional multimodal freight network. 

21 ‘‘(b) CONTENTS.—The report shall contain, at a min22 imum, the following— 

23 ‘‘(1) an assessment of the ability, including the 

24 current performance, of the national multimodal 

25 freight network to make significant progress toward 


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1 and achieve the policy and goals described in section 

2 5402; and 

3 ‘‘(2) a description of impediments to improving 

4 the conditions and performance of the national 

5 multimodal freight network. 

6 ‘‘§ 5409. Transportation investment data and plan7 ning tools 

8 ‘‘(a) IN GENERAL.—Not later than 1 year after the 

9 date of enactment of National Multimodal Freight Policy 

10 and Investment Act, the Secretary shall begin to develop 

11 new tools, and improve existing tools, to support an out12 come-oriented, performance-based approach by Federal, 

13 State, local, and private decisionmakers when evaluating 

14 proposed freight-related and other transportation projects, 

15 including— 

16 ‘‘(1) methodologies for systematic analysis of 

17 benefits and costs on a national, regional, and local 

18 basis; 

19 ‘‘(2) tools for ensuring that the evaluation of 

20 freight-related and other transportation projects 

21 would consider safety, economic competitiveness, en22 vironmental sustainability, innovation, and system 

23 condition in the project selection process; 

24 ‘‘(3) improved methods for data collection and 

25 trend analysis; 


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1 ‘‘(4) freight forecasting models; and 

2 ‘‘(5) other tools to assist in effective freight 

3 transportation planning. 

4 ‘‘(b) FREIGHT DATA.—In support of the tools de5 scribed in subsection (a), and to support a broad range 

6 of evaluation methods to assist Federal, State, local, and 

7 private decisionmakers in making transportation invest8 ment decisions, the Secretary shall— 

9 ‘‘(1) direct the collection of appropriate freight 

10 data and supply chain data, including more con11 sistent and accurate data to measure the condition 

12 and performance of the national multimodal freight 

13 network; and 

14 ‘‘(2) consider any improvements to existing 

15 freight data collection, including the Commodity 

16 Flow Survey and Freight Analysis Framework, that 

17 could reduce identified freight data deficiencies and 

18 improve forecasts of freight transportation demand, 

19 both domestic and international. 

20 ‘‘(c) CONSULTATION.—The Secretary shall consult 

21 with Federal, State, and other public and private freight 

22 transportation stakeholders to develop, improve, and im23 plement the tools described in subsection (a) and collect 

24 the freight data and supply chain data described in sub25 section (b). 


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1 ‘‘(d) MULTIMODAL FREIGHT PERFORMANCE MEAS2 URES.—The Secretary shall establish freight performance 

3 measures to develop a framework for assessing the de4 mand, efficiency, condition, safety, and investment in the 

5 national multimodal freight network. 

6 ‘‘§ 5410. Freight investment grant program 

7 ‘‘(a) DEFINITIONS.—In this section: 

8 ‘‘(1) ELIGIBLE APPLICANT.—The term ‘eligible 

9 applicant’ means— 

10 ‘‘(A) a State; 

11 ‘‘(B) a political subdivision of a State; 

12 ‘‘(C) a metropolitan planning organization; 

13 ‘‘(D) a regional or local transportation au14 thority, including a port authority; 

15 ‘‘(E) a tribal government or a consortium 

16 of tribal governments; or 

17 ‘‘(F) 2 or more of the entities described in 

18 subparagraphs (A) through (E). 

19 ‘‘(2) ELIGIBLE PROJECT.—The term ‘eligible 

20 project’ means a capital investment in a project, or 

21 a project phase with independent utility, for— 

22 ‘‘(A) a transportation infrastructure facil23 ity; or 


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1 ‘‘(B) an intelligent transportation system 

2 project primarily for freight benefit that re3 duces congestion or improves safety. 

4 ‘‘(3) FACILITY.—The term ‘facility’ includes— 

5 ‘‘(A) a road facility; 

6 ‘‘(B) a rail facility; 

7 ‘‘(C) a marine highway facility; 

8 ‘‘(D) a maritime, land border, or inland 

9 port facility; 

10 ‘‘(E) a freight intermodal facility, includ11 ing an intermodal facility serving a seaport, an 

12 intermodal or cargo access facility serving an 

13 airport, an intermodal facility serving a port on 

14 the inland waterways, a bulk intermodal/ 

15 transload facility, or a road/rail intermodal fa16 cility; or 

17 ‘‘(F) a facility related to an international 

18 border crossing. 

19 ‘‘(4) MARINE HIGHWAY.—The term ‘marine 

20 highway’ means all of the marine transportation 

21 routes designated by the Secretary that— 

22 ‘‘(A) serve as extensions of the surface 

23 transportation system; and 

24 ‘‘(B) promote short sea transportation. 


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1 ‘‘(5) TRANSPORTATION INFRASTRUCTURE FA2 CILITY.—The term ‘transportation infrastructure fa3 cility’ means a facility that is significantly used for 

4 the movement of freight. 

5 ‘‘(b) ESTABLISHMENT.—The Secretary shall estab6 lish and implement a freight investment grant program 

7 in accordance with the policy, goals, and strategies de8 scribed in section 5402. 

9 ‘‘(c) APPLICATIONS.— 

10 ‘‘(1) IN GENERAL.—An eligible applicant shall 

11 submit to the Secretary an application in such form 

12 and in accordance with such requirements as the 

13 Secretary shall establish. 

14 ‘‘(2) GROUPS OF ENTITIES.—A group described 

15 in subsection (a)(1)(F) shall submit an application 

16 through a lead applicant that qualifies under sub17 paragraph (A), (B), (C), (D) or (E) of subsection 

18 (a)(1). Public-private partnerships are eligible if the 

19 lead applicant qualifies under subparagraph (A), 

20 (B), (C), (D), or (E) of subsection (a)(1). 

21 ‘‘(d) CRITERIA FOR SELECTION.—The Secretary 

22 shall select eligible projects for funding based on the fol23 lowing criteria: 

24 ‘‘(1) The eligible project will help achieve the 

25 goals and strategies described in section 5402. 


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1 ‘‘(2) Funding committed by State and local 

2 governments and other public and private partners, 

3 along with the Federal funding requested, will be 

4 sufficient to complete the capital investment. 

5 ‘‘(3) The extent to which the eligible project 

6 leverages Federal funds by securing commitments of 

7 State, local, tribal, or private funds in addition to 

8 the Federal funding requested under this section. 

9 ‘‘(4) The likely benefits of the eligible project 

10 relative to its costs. 

11 ‘‘(5) The extent to which the eligible project 

12 demonstrates the use of innovative technology, strat13 egies, and practices or involves collaboration among 

14 States or political subdivisions. 

15 ‘‘(6) The likely effect of the eligible project to 

16 support the movement of freight internationally or 

17 to efficiently move freight and people interstate or 

18 intrastate. 

19 ‘‘(7) The eligible project’s support of freight op20 erations in a nationally significant place, as deter21 mined by the Secretary. 

22 ‘‘(8) The consistency of the eligible project with 

23 the national multimodal freight strategic plan devel24 oped under section 5404. 


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1 ‘‘(9) Inclusion of the eligible project in a State 

2 freight plan under section 5406 or, if the State 

3 freight plan is not complete, a regional transpor4 tation plan. 

5 ‘‘(10) The extent to which the eligible project 

6 will reduce the adverse impacts of freight transpor7 tation on a local community. 

8 ‘‘(11) The ability of the eligible project to in9 crease throughput and reduce congestion at freight 

10 chokepoints. 

11 ‘‘(e) FEDERAL SHARE.—The Federal share for a 

12 project funded under this section shall not exceed— 

13 ‘‘(1) 80 percent of the total capital cost of the 

14 eligible project; or 

15 ‘‘(2) $50,000,000. 

16 ‘‘(f) GRANT ANALYSIS.—A grant agreement under 

17 this section between the Federal Government and a grant18 ee shall specify that the grantee will collect data and re19 port to the Secretary, at such times as the Secretary speci20 fies, on— 

21 ‘‘(1) the actual cost of constructing the eligible 

22 project; 

23 ‘‘(2) the time required to complete and imple24 ment the eligible project; 


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1 ‘‘(3) the level of usage of the transportation in2 frastructure facility built or improved by the eligible 

3 project; 

4 ‘‘(4) the benefits of the eligible project, meas5 ured in a way that is consistent with the benefits 

6 that were estimated in the application under sub7 section (c); and 

8 ‘‘(5) any costs resulting from the eligible 

9 project in addition to the projected costs estimated 

10 in the application under subsection (c). 

11 ‘‘(g) TERMS AND CONDITIONS.—The Secretary may 

12 require such additional terms and conditions of a grant 

13 under this section as the Secretary considers necessary. 

14 ‘‘(h) ADMINISTRATION.—For the purpose of admin15 istering a grant under this section, funds authorized for 

16 this section may be transferred within the Department of 

17 Transportation and administered in accordance with this 

18 title or title 23, as applicable, and any other laws applica19 ble to the eligible project. 

20 ‘‘(i) ADMINISTRATIVE AND OVERSIGHT COSTS.— 

21 ‘‘(1) IN GENERAL.—The Secretary may retain 

22 up to one-half of 1 percent of the amounts author23 ized for each fiscal year under this section for— 

24 ‘‘(A) administration of the freight invest25 ment grant program; and 


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1 ‘‘(B) oversight of eligible projects funded 

2 under this section. 

3 ‘‘(2) ADMINISTRATION EXPENSES.—In order to 

4 carry out the administration and oversight of grants 

5 under this section, the Secretary may transfer por6 tions of the funds retained under this subsection 

7 to— 

8 ‘‘(A) the Administrator of the Federal 

9 Highway Administration; 

10 ‘‘(B) the Administrator of the Federal 

11 Railroad Administration; 

12 ‘‘(C) the Administrator of the Federal 

13 Aviation Administration; 

14 ‘‘(D) the Administrator of the Federal 

15 Maritime Administration; 

16 ‘‘(E) the Assistant Secretary for Research 

17 and Technology; and 

18 ‘‘(F) the Assistant Secretary of Freight 

19 Planning, Permitting, and Development. 

20 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.— 

21 ‘‘(1) IN GENERAL.—There are authorized to be 

22 appropriated to carry out this section— 

23 ‘‘(A) $2,000,000,000 for fiscal year 2016; 

24 ‘‘(B) $2,000,000,000 for fiscal year 2017; 

25 ‘‘(C) $2,000,000,000 for fiscal year 2018; 


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1 ‘‘(D) $2,000,000,000 for fiscal year 2019; 

2 ‘‘(E) $2,000,000,000 for fiscal year 2020; 

3 and 

4 ‘‘(F) $2,000,000,000 for fiscal year 2021. 

5 ‘‘(2) ADMINISTRATION OF FUNDS.—The funds 

6 appropriated for this program shall be available for 

7 obligation until expended.’’. 

8 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

9 The table of contents for subtitle III of title 49, United 

10 States Code, is amended by adding after the item relating 

11 to section 5340 the following: 

‘‘CHAPTER 54. FREIGHT. 

‘‘5401. Definitions. 

‘‘5402. National multimodal freight policy. 

‘‘5403. National multimodal freight network. 

‘‘5404. National multimodal freight strategic plan. 

‘‘5405. National multimodal freight advisory committee. 

‘‘5406. State freight plans. 

‘‘5407. State freight advisory committees. 

‘‘5408. Conditions and performance reports. 

‘‘5409. Transportation investment date and planning tools. 

‘‘5410. Freight investment grant program.’’. 

12 SEC. 3. OFFICE OF FREIGHT PLANNING, PERMITTING, AND 

13 DEVELOPMENT. 

14 (a) IN GENERAL.—Section 102 of title 49, United 

15 States Code, is amended— 

16 (1) by redesignating subsection (h) as sub17 section (i); and 

18 (2) by inserting after subsection (g) the fol19 lowing: 


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1 ‘‘(h) OFFICE OF FREIGHT PLANNING, PERMITTING, 

2 AND DEVELOPMENT.— 

3 ‘‘(1) ESTABLISHMENT.—There is established, 

4 in the Office of the Secretary, an Office of Freight 

5 Planning, Permitting, and Development (referred to 

6 in this subsection as the ‘Office’). 

7 ‘‘(2) RESPONSIBILITIES.—The Office shall— 

8 ‘‘(A) coordinate the investment of Federal 

9 funding to improve the efficiency of the national 

10 multimodal freight network (as defined in sec11 tion 5401) to move freight in accordance with 

12 the policy, goals, and strategies described in 

13 section 5402; 

14 ‘‘(B) for projects that involve multiple 

15 Federal agencies, designate a lead Federal 

16 agency or a modal administrator within the De17 partment of Transportation— 

18 ‘‘(i) to serve as the primary point of 

19 contact; and 

20 ‘‘(ii) to actively monitor and identify 

21 the progress of the permitting process; 

22 ‘‘(C) establish a process to give priority 

23 consideration to the freight projects receiving 

24 freight investment grants under section 5410 

25 when— 


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1 ‘‘(i) coordinating and facilitating the 

2 permit review process; and 

3 ‘‘(ii) advancing project delivery objec4 tives if there is duplication of processes; 

5 ‘‘(D) facilitate communication among gov6 ernment, public, and private freight transpor7 tation stakeholders; 

8 ‘‘(E) support the Secretary in the develop9 ment of the national multimodal freight stra10 tegic plan (as defined in section 5401); 

11 ‘‘(F) provide guidance or best practices on 

12 the development of the State freight plans 

13 under section 5406; and 

14 ‘‘(G) carry out other duties, as prescribed 

15 by the Secretary. 

16 ‘‘(3) ORGANIZATION.—The Office shall— 

17 ‘‘(A) be headed by the Assistant Secretary 

18 of Freight Planning, Permitting, and Develop19 ment; 

20 ‘‘(B) be structured out of existing re21 sources and funding within the Department of 

22 Transportation, to the extent feasible; and 

23 ‘‘(C) serve to consolidate freight staffing 

24 from all modal administrations to improve col25 laboration between freight transportation modes 


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1 (as defined in section 5401), especially in per2 mitting oversight, and otherwise support the ef3 ficiency of the national multimodal freight net4 work.’’. 

5 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

6 (1) ASSISTANT SECRETARIES.—Section 

7 102(e)(1) of title 49, United States Code, is amend8 ed— 

9 (A) in the matter preceding subparagraph 

10 (A), by striking ‘‘5’’ and inserting ‘‘6’’; 

11 (B) in subparagraph (C), by striking ‘‘; 

12 and’’ and inserting a semicolon; 

13 (C) by redesignating subparagraph (D) as 

14 subparagraph (E); and 

15 (D) by inserting after subparagraph (C) 

16 the following: 

17 ‘‘(D) an Assistant Secretary of Freight 

18 Planning, Permitting, and Development, who 

19 shall be appointed by the Secretary, with the 

20 approval of the President; and’’. 

21 (2) EXECUTIVE SCHEDULE PAY RATES.—Sec22 tion 5316 of title 5, United States Code, is amended 

23 by inserting ‘‘Assistant Secretary of Freight Plan24 ning, Permitting, and Development, Department of 


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1 Transportation.’’ after ‘‘Assistant Secretary for Ad2 ministration, Department of Transportation.’’. 

3 SEC. 4. CAPITAL GRANTS FOR SHORTLINE FREIGHT RAIL4 ROAD STATE OF GOOD REPAIR. 

5 (a) DEFINITIONS.—In this section: 

6 (1) CAPITAL PROJECT.—The term ‘‘capital 

7 project’’ means acquiring, constructing, improving, 

8 or inspecting shortline or regional railroad infra9 structure, such as equipment, track and track struc10 tures, or a facility, including— 

11 (A) bringing that infrastructure to a state 

12 of good repair; 

13 (B) bond costs and other costs relating to 

14 the issuance of bonds or other debt financing 

15 instruments; 

16 (C) evaluating and assessing project imple17 mentation and outcomes; 

18 (D) expenses incidental to the activities de19 scribed in subparagraph (C), including design20 ing, engineering, location surveying, mapping, 

21 and environmental studies; 

22 (E) installing, restoring, and rehabilitating 

23 track; 

24 (F) preserving and acquiring rights-of-way; 

25 (G) relocation assistance, including— 


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1 (i) acquiring replacement housing 

2 sites, and acquiring, constructing, relo3 cating, and rehabilitating replacement 

4 housing; and 

5 (ii) the lateral relocation of any por6 tion of a rail line; 

7 (H) eliminating obstacles and relocating 

8 utilities; 

9 (I) payments for the maintenance responsi10 bility of rail trackage rights agreements; 

11 (J) mitigating adverse impacts on safety, 

12 motor vehicle traffic flow, quality of life, envi13 ronment, or economic development; 

14 (K) highway-rail grade crossing improve15 ments, including the safety of and elimination 

16 of hazards at a highway-rail grade crossing; 

17 (L) communication and signalization im18 provements; 

19 (M) subsidy and administrative costs of 

20 projects eligible for Federal credit assistance 

21 under the Railroad Revitalization and Regu22 latory Reform Act of 1976 (45 U.S.C. 801 et 

23 seq.) for a capital project to improve shortline 

24 or regional railroad infrastructure; 


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1 (N) improving or replacing locomotives op2 erated by a shortline or regional railroad; 

3 (O) on-dock or near-dock projects at sea4 ports; 

5 (P) resolving critical freight chokepoints 

6 and addressing capacity constraints; and 

7 (Q) such other construction, improvement 

8 or inspection-related activities as determined 

9 appropriate by the Secretary. 

10 (2) ELIGIBLE RECIPIENT.—The term ‘‘eligible 

11 recipient’’ means— 

12 (A) a State; 

13 (B) a political subdivision of a State; 

14 (C) a metropolitan planning organization; 

15 (D) a regional or local transportation au16 thority, including a port authority; 

17 (E) a tribal government or a consortium of 

18 tribal governments; 

19 (F) a public entity responsible for pro20 viding rail freight transportation service; 

21 (G) solely for the purpose of constructing 

22 a rail connection between a plant or facility and 

23 a rail carrier, a limited option freight shipper 

24 that owns or operates a plant or facility; 


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1 (H) 2 or more of the entities described in 

2 subparagraphs (A) through (G); and 

3 (I) if the capital project is a public-private 

4 partnership with 1 or more of the entities de5 scribed in subparagraphs (A) through (H), a 

6 shortline or regional railroad or a holding com7 pany of a shortline or regional railroad. 

8 (3) RAILROAD CARRIER.—The term ‘‘railroad 

9 carrier’’ has the meaning given the term in section 

10 20102 of title 49, United States Code. 

11 (4) SECRETARY.—The term ‘‘Secretary’’ means 

12 the Secretary of Transportation. 

13 (5) SHORTLINE OR REGIONAL RAILROAD.—The 

14 term ‘‘shortline or regional railroad’’ means a rail15 road carrier that has annual carrier operating reve16 nues that meet the threshold amount for Class II 

17 carriers or Class III carriers, as determined by the 

18 Surface Transportation Board under section 

19 1201.1–1 of title 49, Code of Federal Regulations, 

20 on which not less than 80 percent of the volume of 

21 rail traffic is freight traffic. 

22 (6) STATE OF GOOD REPAIR.—The term ‘‘state 

23 of good repair’’ means a condition in which the ex24 isting physical assets, both individually and as a sys25 tem, are functioning as designed within their useful 


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1 lives and are sustained through regular maintenance 

2 and replacement programs. 

3 (b) GRANTS AUTHORIZED.— 

4 (1) IN GENERAL.—The Secretary shall establish 

5 a competitive grant program to provide financial as6 sistance to eligible recipients for capital projects 

7 that— 

8 (A) help accomplish the goals of a State 

9 rail plan under section 22702 of title 49, 

10 United States Code, or, if a State freight plan 

11 under section 5406 of that title is complete, the 

12 goals of the State freight plan; and 

13 (B) either— 

14 (i) improve shortline or regional rail15 road infrastructure by improving the effi16 cient and safe movement of freight; or 

17 (ii) mitigate the adverse impacts of 

18 shortline or regional railroad infrastructure 

19 or operations on a local community. 

20 (2) ELIGIBILITY AND CONSIDERATIONS FOR AP21 PROVAL.—In determining whether to award a grant 

22 to an eligible recipient under this section, the Sec23 retary shall consider the following, listed by priority: 

24 (A) The extent to which a capital project— 


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1 (i) will contribute to the efficient 

2 movement of freight, including multimodal 

3 freight; 

4 (ii) will benefit the efficient movement 

5 of freight at or accessing a port, or agri6 cultural or manufacturing cluster; 

7 (iii) will contribute to increasing the 

8 economic competitiveness and state of good 

9 repair of a shortline or regional railroad; 

10 (iv) will alleviate the impacts of a 

11 shortline or regional railroad’s operations 

12 on local communities, including impacts on 

13 safety, motor vehicle traffic flow, commu14 nity quality of life, environment, or eco15 nomic development; 

16 (v) will enhance safety; 

17 (vi) is not capable of being fully fund18 ed without Federal grant funding; 

19 (vii) complies with the limitation re20 lating to the allocation of grant funds set 

21 forth in subsection (c); 

22 (viii) will contribute to the equitable 

23 treatment of the various regions of the 

24 United States; 


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1 (ix) includes equitable participation 

2 from other beneficiaries in the project’s fi3 nancing, including the extent to which the 

4 project will leverage financial contributions 

5 or commitments from private entities in6 volved with the project in proportion to the 

7 expected benefits that accrue to such enti8 ties from the project; 

9 (x) is compatible with local land use, 

10 economic development, and transportation 

11 plans and objectives; and 

12 (xi) will increase the reliability and re13 silience of the Nation’s multimodal freight 

14 system. 

15 (B) The past performance of the eligible 

16 recipient and other beneficiaries of the capital 

17 project in developing and delivering 1 or more 

18 capital projects. 

19 (C) Such other factors as the Secretary 

20 considers relevant. 

21 (c) ALLOCATION LIMITATION.—Not less than 50 per22 cent of all grant funds awarded under this section out of 

23 funds appropriated for a fiscal year shall be provided to 

24 publicly owned shortline railroads. 

25 (d) PROJECT COST SHARING.— 


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1 (1) BASIS.—The Secretary shall estimate the 

2 total cost of each eligible project based on— 

3 (A) engineering studies; 

4 (B) studies of economic feasibility; 

5 (C) environmental analyses; and 

6 (D) information on the expected use of the 

7 shortline or regional railroad infrastructure, 

8 such as equipment, track, track structure, or 

9 facility. 

10 (2) FEDERAL SHARE.—A Federal grant for an 

11 eligible project under this section may not exceed— 

12 (A) 90 percent of the total capital cost of 

13 the eligible project; or 

14 (B) $6,000,000. 

15 (3) NON-FEDERAL SHARE.— 

16 (A) IN GENERAL.—An eligible recipient 

17 shall pay, or arrange for the payment from non18 Federal sources, including financing, not less 

19 than 10 percent of the shared costs of an eligi20 ble project that is funded in part by a grant 

21 awarded under this section. 

22 (B) FORMS OF CONTRIBUTIONS.—The 

23 shared costs under subparagraph (A) may be 

24 paid in cash or in-kind contributions. 

25 (C) IN-KIND CONTRIBUTIONS.— 


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1 (i) IN GENERAL.—The non-Federal 

2 in-kind contributions under subparagraph 

3 (B) may consist of— 

4 (I) real property; 

5 (II) tangible personal property; 

6 (III) services of employees of the 

7 eligible recipient or non-Federal 

8 source; and 

9 (IV) payments made by an eligi10 ble recipient or other non-Federal 

11 source for costs incurred for the eligi12 ble project before the filing of an ap13 plication for a grant under this sec14 tion, and any in-kind contributions 

15 that were made for the project before 

16 the filing of the application, to the ex17 tent that such costs were incurred or 

18 in-kind contributions were made to 

19 comply with a legal requirement nec20 essary to carry out the eligible project. 

21 (ii) CALCULATIONS.—The value of an 

22 in-kind contribution under clause (i)(III) 

23 shall be calculated— 

24 (I) by including the costs in25 curred by the eligible recipient or 


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1 other non-Federal source for the pay 

2 and benefits of an employee described 

3 in clause (i)(III); and 

4 (II) by excluding any overhead or 

5 general administrative costs. 

6 (e) REPORTING REQUIREMENT.—As part of the 

7 grant application process, each eligible recipient shall sub8 mit a description of the anticipated public and private ben9 efits (as those terms are defined in section 22701 of title 

10 49, United States Code) associated with the eligible 

11 project. 

12 (f) AGREEMENTS TO COMBINE AMOUNTS.—Two or 

13 more eligible recipients may agree to combine any part 

14 of the amounts provided through grants for an eligible 

15 project under this section if— 

16 (1) the eligible project will benefit each eligible 

17 recipient entering into the agreement; and 

18 (2) the agreement does not violate any Federal 

19 law or any law of any State in which an eligible re20 cipient is located. 

21 (g) STATE COOPERATION.—The Secretary shall en22 courage each shortline or regional railroad applicant for 

23 a grant under this section to utilize the expertise and as24 sistance of 1 or more State transportation agencies in ap25 plying for and administering the grant. The Secretary 


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1 shall encourage each applicable State transportation agen2 cy to provide its expertise and assistance to the shortline 

3 or regional railroad. 

4 (h) RULEMAKING.—Not later than July 1, 2016, the 

5 Secretary shall issue final regulations for implementing 

6 the grant program authorized under this section. 

7 (i) AUTHORIZATION OF APPROPRIATIONS.—There is 

8 authorized to be appropriated to the Secretary to carry 

9 out this section $50,000,000 for each of fiscal years 2016 

10 through 2021. 

11 SEC. 5. CAPITAL GRANTS FOR GRADE SEPARATION 

12 PROJECTS. 

13 (a) DEFINITIONS.—In this section: 

14 (1) ELIGIBLE APPLICANT.—The term ‘‘eligible 

15 applicant’’ means— 

16 (A) a State; 

17 (B) a political subdivision of a State; 

18 (C) a metropolitan planning organization; 

19 (D) a regional or local transportation au20 thority, including a port authority; 

21 (E) a tribal government or a consortium of 

22 tribal governments; or 

23 (F) 2 or more of the entities described in 

24 subparagraphs (A) through (E). 


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1 (2) HIGHWAY-RAIL VERTICAL GRADE SEPARA2 TION PROJECT.—The term ‘‘highway-rail vertical 

3 grade separation project’’ means a project that sepa4 rates the grade of a road-rail crossing to eliminate 

5 the conflict between those freight transportation 

6 modes. 

7 (3) HOST RAILROAD.—The term ‘‘host rail8 road’’ means— 

9 (A) a Class I railroad, Class II railroad, or 

10 Class III railroad (as defined in section 20102 

11 of title 49, United States Code); and 

12 (B) the public or private owner of rail in13 frastructure over which a Class I railroad, Class 

14 II railroad, or Class III railroad operates. 

15 (4) SECRETARY.—The term ‘‘Secretary’’ means 

16 the Secretary of Transportation. 

17 (b) GRANTS AUTHORIZED.—The Secretary shall es18 tablish a competitive capital grant program to provide fi19 nancial assistance to eligible applicants for highway-rail 

20 vertical grade separation projects intended to reduce high21 way and rail congestion and improve safety. 

22 (c) ELIGIBLE PROJECTS.—An eligible applicant may 

23 apply for a grant under this section for the purpose of— 

24 (1) constructing a highway-rail vertical grade 

25 separation project; or 


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1 (2) planning, preparing, or designing a project 

2 described in paragraph (1). 

3 (d) PROJECT SELECTION CRITERIA.—In determining 

4 whether to award a grant to an eligible applicant under 

5 this section, the Secretary shall consider the following fac6 tors, listed by priority: 

7 (1) Whether the highway-rail vertical grade sep8 aration project will cost-effectively reduce national, 

9 regional, or local truck and rail freight network 

10 delays. 

11 (2) The extent to which the highway-rail 

12 vertical grade separation project includes equitable 

13 financial participation from other beneficiaries of the 

14 project, including the extent to which the project will 

15 leverage financial contributions or commitments 

16 from private entities involved with the project in pro17 portion with or greater to the proportion of the ex18 pected benefits that accrue to such entities from the 

19 project. 

20 (3) The truck freight and train volumes at the 

21 crossing. 

22 (4) The traffic delays caused by trains traveling 

23 through the crossing. 

24 (5) The history at the crossing of incidents with 

25 fatal or severe injuries. 


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1 (6) The safety hazards, including sightlines, 

2 along the crossing approaches. 

3 (7) The angle of the tracks to the roadway. 

4 (8) The highway-rail vertical grade separation 

5 project readiness. 

6 (9) The benefit to railroad operations as a re7 sult of the project. 

8 (10) Such other factors as the Secretary con9 siders relevant. 

10 (e) REPORTING REQUIREMENT.—As part of the 

11 grant application process, each eligible applicant shall sub12 mit a description of the anticipated public and private ben13 efits associated with the highway-rail vertical grade sepa14 ration project. The eligible applicant shall describe the an15 ticipated public and private benefits in consultation with 

16 the host railroad involved in the project. 

17 (f) PROJECT COST SHARING.— 

18 (1) BASIS.—The Secretary shall estimate the 

19 total cost of each highway-rail vertical grade separa20 tion project based on— 

21 (A) engineering studies; 

22 (B) studies of economic feasibility; and 

23 (C) information on the expected use of 

24 equipment or facilities. 


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1 (2) FEDERAL SHARE.—A Federal grant for a 

2 highway-rail vertical grade separation project under 

3 this section may not exceed— 

4 (A) 60 percent of the total capital cost of 

5 the highway-rail vertical grade separation 

6 project; or 

7 (B) $15,000,000. 

8 (3) NON-FEDERAL SHARE.— 

9 (A) IN GENERAL.—The eligible applicant 

10 shall pay, or arrange for the payment from non11 Federal sources, including financing, not less 

12 than 40 percent of the shared costs of a high13 way-rail vertical grade separation project that is 

14 funded in part by a grant awarded under this 

15 section. 

16 (B) FORMS OF CONTRIBUTIONS.—The 

17 costs required under subparagraph (A) may be 

18 paid in cash or in-kind contributions. 

19 (C) IN-KIND CONTRIBUTIONS.— 

20 (i) IN GENERAL.—The non-Federal 

21 in-kind contributions under subparagraph 

22 (B) may consist of— 

23 (I) real property; 

24 (II) tangible personal property; 


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1 (III) services of employees of the 

2 eligible applicant or other non-Federal 

3 source; and 

4 (IV) payments made by the eligi5 ble applicant or other non-Federal 

6 source for costs incurred for the high7 way-rail vertical grade separation 

8 project before the filing of an applica9 tion for a grant for the project under 

10 this section, and any in-kind contribu11 tions that were made for the project 

12 before the filing of the application, to 

13 the extent that such costs were in14 curred or in-kind contributions were 

15 made to comply with a legal require16 ment necessary to carry out the 

17 project. 

18 (ii) CONTRIBUTIONS.—The value of 

19 an in-kind contribution under clause 

20 (i)(III) shall be calculated— 

21 (I) by including the costs in22 curred by the eligible applicant or 

23 other non-Federal source for the pay 

24 and benefits of an employee described 

25 in clause (i)(III); and 


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1 (II) by excluding any overhead or 

2 general administrative costs. 

3 (g) GRANT CONDITIONS.—The Secretary shall re4 quire as a condition of making any grant under this sec5 tion that a written agreement exist between an eligible ap6 plicant and a host railroad concerning construction, main7 tenance, railroad contribution, and such other factors as 

8 the Secretary considers relevant. 

9 (h) RULEMAKING.—Not later than July 1, 2016, the 

10 Secretary shall issue final regulations for implementing 

11 the grant program authorized under this section. 

12 (i) GUIDANCE.—The Secretary may update existing 

13 or issue new guidance to assist an eligible applicant in de14 termining whether a highway-rail crossing should be grade 

15 separated, including by identifying relevant criteria that 

16 should be considered and evaluating the benefits and costs 

17 of grade separations compared to other safety approaches 

18 within a risk analysis framework. 

19 (j) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated to the Secretary to carry 

21 out this section $150,000,000 for each of fiscal years 2016 

22 through 2021. 

Æ 


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