I 

116TH CONGRESS 

1ST SESSION H. R. 2723 

To amend title 49, United States Code, to establish a Multimodal Freight 

Funding Formula Program and a National Freight Infrastructure Competitive Grant Program to improve the efficiency and reliability of freight 

movement in the United States, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 14, 2019 

Mr. LOWENTHAL (for himself, Mr. BLUMENAUER, Mr. CA ́RDENAS, Mr. CARTWRIGHT, Mr. CISNEROS, Ms. KELLY of Illinois, Mr. MEADOWS, Ms. 

MOORE, Mrs. NAPOLITANO, Mr. POCAN, Mr. ROUDA, Mr. TAKANO, and 

Ms. HILL of California) introduced the following bill; which was referred 

to the Committee on Transportation and Infrastructure, and in addition 

to the Committee on Ways and Means, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend title 49, United States Code, to establish a 

Multimodal Freight Funding Formula Program and a 

National Freight Infrastructure Competitive Grant Program to improve the efficiency and reliability of freight 

movement in the United States, 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, 


khammond on DSKBBV9HB2PROD with BILLS
2 

•HR 2723 IH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘National Multimodal 

3 and Sustainable Freight Infrastructure Act’’. 

4 SEC. 2. FREIGHT FUNDING PROGRAMS. 

5 (a) IN GENERAL.—Chapter 701 of title 49, United 

6 States Code, is amended by adding at the end the fol7 lowing: 

8 ‘‘§ 70104. Multimodal Freight Funding Formula Pro9 gram 

10 ‘‘(a) IN GENERAL.—The Secretary of Transportation 

11 shall establish a Multimodal Freight Funding Formula 

12 Program under which the Secretary shall distribute funds 

13 to States to improve the efficiency and reliability of freight 

14 movement in the United States. 

15 ‘‘(b) FORMULA APPORTIONMENT.—Of funds made 

16 available to the Secretary for a fiscal year to carry out 

17 the Multimodal Freight Funding Formula Program under 

18 this section, the Secretary shall calculate the amount 

19 available to be apportioned to a State based on the fol20 lowing: 

21 ‘‘(1) 6.25 percent in the ratio that— 

22 ‘‘(A) the number of ports in each State; 

23 bears to 

24 ‘‘(B) the number of ports in all States. 

25 ‘‘(2) 6.25 percent in the ratio that— 


khammond on DSKBBV9HB2PROD with BILLS
3 

•HR 2723 IH

1 ‘‘(A) the number of rail track-miles used 

2 for the movement of freight in each State; bears 

3 to 

4 ‘‘(B) the number of such rail track-miles in 

5 all States. 

6 ‘‘(3) 6.25 percent in the ratio that— 

7 ‘‘(A) the number of cargo-handling air8 ports in each State; bears to 

9 ‘‘(B) the number of such airports in all 

10 States. 

11 ‘‘(4) 6.25 percent in the ratio that— 

12 ‘‘(A) the number of Interstate system 

13 miles in each State; bears to 

14 ‘‘(B) the number of Interstate system 

15 miles in all States. 

16 ‘‘(5) 37.5 percent in the ratio that— 

17 ‘‘(A) the tonnage of rail, waterborne, high18 way, and airport freight moved in each State; 

19 bears to 

20 ‘‘(B) the tonnage of such freight moved in 

21 all States. 

22 ‘‘(6) 37.5 percent in the ratio that— 

23 ‘‘(A) the value of rail, waterborne, highway 

24 and airport freight moved in each State; bears 

25 to 


khammond on DSKBBV9HB2PROD with BILLS
4 

•HR 2723 IH

1 ‘‘(B) the value of such freight moved in all 

2 States. 

3 ‘‘(c) TIER I ELIGIBILITY.—The Secretary shall pro4 vide to a State in a fiscal year 40 percent of the amount 

5 of the funds available to the State under subsection (b) 

6 for that fiscal year if the State— 

7 ‘‘(1) has an established freight advisory com8 mittee in accordance with section 70201; 

9 ‘‘(2) developed any analyses or plans required 

10 for the completion of a State freight plan in accord11 ance with section 70202; 

12 ‘‘(3) has an approved State freight plan; 

13 ‘‘(4) has conducted a statewide analysis of 

14 freight needs and bottlenecks on all modes of trans15 portation, including intermodal and last mile needs; 

16 ‘‘(5) demonstrates use of the statewide analysis 

17 of freight needs in prioritizing projects in the State 

18 freight plan; 

19 ‘‘(6) demonstrates that the State will use the 

20 funding that it is provided under this paragraph for 

21 the highest priority projects identified in the freight 

22 investment plan described under section 70202; and 

23 ‘‘(7) demonstrates that the program of projects 

24 will use the strategies and contribute to the goals 

25 described in the State freight plan to decrease— 


khammond on DSKBBV9HB2PROD with BILLS
5 

•HR 2723 IH

1 ‘‘(A) greenhouse gas emissions; 

2 ‘‘(B) local air pollution, including ozone 

3 and ozone precursors, nitrogen oxides, sulfur di4 oxide, particulate matter, carbon monoxide, and 

5 lead; 

6 ‘‘(C) water runoff and other adverse water 

7 impacts; and 

8 ‘‘(D) wildlife habitat loss. 

9 ‘‘(d) TIER II ELIGIBILITY.—The Secretary shall pro10 vide to a State in a fiscal year 60 percent of the amount 

11 of the funds available to the State under subsection (b) 

12 for that fiscal year if the State— 

13 ‘‘(1) has met the eligibility criteria of subsection 

14 (c); 

15 ‘‘(2) has conducted, in cooperation with at least 

16 one other State, a multistate analysis of freight 

17 needs and bottlenecks on all modes of transpor18 tation, including intermodal and last mile needs 

19 along a multistate freight corridor; and 

20 ‘‘(3) has developed, in cooperation with at least 

21 one other State or a relevant entity in Canada or 

22 Mexico, a regional freight investment plan that fo23 cuses on the end-to-end investment needs of critical 

24 multistate freight corridors based on the multistate 

25 analysis of freight needs and bottlenecks on all 


khammond on DSKBBV9HB2PROD with BILLS
6 

•HR 2723 IH

1 modes of transportation, including intermodal and 

2 last mile needs. 

3 ‘‘(e) REDISTRIBUTION OF FUNDS.—The Secretary 

4 shall make available under the National Freight Infra5 structure Competitive Grant Program under section 

6 70105 any funds that— 

7 ‘‘(1) the Secretary calculated under subsection 

8 (b) as available to a State for a fiscal year but did 

9 not provide to that State for that fiscal year under 

10 subsection (c) or subsection (d); or 

11 ‘‘(2) the Secretary provided to a State under 

12 subsection (c) or subsection (d) but remain unobli13 gated in that State at the end of the third fiscal 

14 year following the fiscal year in which they were pro15 vided to the State. 

16 ‘‘(f) ELIGIBLE USES.—A State may use funds pro17 vided under this section only for— 

18 ‘‘(1) the development of corridor freight plans 

19 or regional freight plans; or 

20 ‘‘(2) one or more phases of capital projects, 

21 equipment, or operational improvements on roads, 

22 rails, landside infrastructure on ports and airports, 

23 and intermodal connectors included in a State 

24 freight plan for projects that— 


khammond on DSKBBV9HB2PROD with BILLS
7 

•HR 2723 IH

1 ‘‘(A) maintain or improve the efficiency 

2 and reliability of freight supply chains; 

3 ‘‘(B) demonstrate public freight benefits; 

4 ‘‘(C) improve modal components of a mul5 timodal corridor that is critical to a State or re6 gion; 

7 ‘‘(D) address freight needs to facilitate a 

8 regionally or nationally significant economic de9 velopment issue; 

10 ‘‘(E) in accordance with the State freight 

11 plan, decrease— 

12 ‘‘(i) greenhouse gas emissions; 

13 ‘‘(ii) local air pollution, including 

14 ozone and ozone precursors, nitrogen ox15 ides, sulfur dioxide, particulate matter, 

16 carbon monoxide, and lead; 

17 ‘‘(iii) water runoff and other adverse 

18 water impacts; and 

19 ‘‘(iv) wildlife habitat loss; 

20 ‘‘(F) are multimodal, multi-jurisdictional, 

21 or corridor-based and address freight needs; 

22 ‘‘(G) relieve freight or non-freight access, 

23 congestion, or safety issues; or 

24 ‘‘(H) address first and last mile connec25 tors. 


khammond on DSKBBV9HB2PROD with BILLS
8 

•HR 2723 IH

1 ‘‘(g) EPA REPORT.—A State that receives funds 

2 under this section shall collect data and, beginning 1 year 

3 from the date of the completion of each project or project 

4 phase that receives such funds, and annually thereafter 

5 for 15 years, report to the Secretary and the Adminis6 trator of Environmental Protection Agency on progress 

7 made toward greenhouse gas emission reductions and local 

8 air pollution reductions in accordance with the State 

9 freight plan. All relevant data and reporting shall be col10 lected and reported in accordance with guidance developed 

11 by the Administrator in consultation with the Secretary. 

12 ‘‘(h) FEDERAL SHARE.— 

13 ‘‘(1) IN GENERAL.—The Federal share of the 

14 cost of a project carried out by a State using funds 

15 provided under this section may not be more than 

16 80 percent. 

17 ‘‘(2) ADDITIONAL FEDERAL SHARE.—The Fed18 eral share of the cost of a project carried out by a 

19 State using funds provided under this section may 

20 be increased by 5 percent if the such 5 percent is 

21 used for the mitigation of diesel emissions from con22 struction activities associated with the project. The 

23 Administrator of Environmental Protection Agency, 

24 in consultation with the Secretary, shall develop 

25 guidance for eligible equipment and activities conVerDate Sep 11 2014 22:49 May 29, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2723.IH H2723

khammond on DSKBBV9HB2PROD with BILLS
9 

•HR 2723 IH

1 sistent with existing State, local, and nonprofit clean 

2 construction guidelines. 

3 ‘‘(i) RESERVATION OF FUNDS FOR TERRITORIES.— 

4 Before making a calculation under subsection (b), the Sec5 retary shall withhold funds for distribution to each terri6 tory in an amount based on the freight infrastructure need 

7 of the territories, as determined by the Secretary. Such 

8 funds shall not otherwise be made available for distribu9 tion under this section. 

10 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 

11 is authorized to be appropriated from the Freight Trust 

12 Fund to carry out this section an amount equal to 50 per13 cent of the receipts of the Freight Trust Fund for each 

14 fiscal year beginning in fiscal year 2020. 

15 ‘‘(k) ADMINISTRATION AND OVERSIGHT COSTS.— 

16 The Secretary may retain up to one-half of 1 percent of 

17 the amounts available to carry out this section for each 

18 fiscal year for the cost of administration and oversight of 

19 projects funded under this section. 

20 ‘‘(l) AVAILABILITY OF FUNDS.—Amounts authorized 

21 under subsection (j) shall be— 

22 ‘‘(1) available for obligation on October 1 of the 

23 fiscal year for which they are authorized; and 

24 ‘‘(2) available until expended. 


khammond on DSKBBV9HB2PROD with BILLS
10 

•HR 2723 IH

1 ‘‘(m) APPLICATION OF RATE REQUIREMENTS.—The 

2 Secretary shall take such action as may be necessary to 

3 apply the requirements described under section 113 of title 

4 23, as applicable, to any project receiving funds under this 

5 section. 

6 ‘‘(n) DEFINITIONS.—In this section: 

7 ‘‘(1) STATE.—The term ‘State’ means each of 

8 the 50 States, the District of Columbia, and Puerto 

9 Rico. 

10 ‘‘(2) STATE FREIGHT PLAN.—The term ‘State 

11 freight plan’ means the State freight plan described 

12 under section 70202. 

13 ‘‘(3) TERRITORY.—The term ‘territory’ has the 

14 meaning given such term in section 165(c)(1) of title 

15 23. 

16 ‘‘§ 70105. National Freight Infrastructure Competitive 

17 Grant Program 

18 ‘‘(a) ESTABLISHMENT.—The Secretary of Transpor19 tation shall establish a National Freight Infrastructure 

20 Competitive Grant Program under which the Secretary 

21 shall make grants, on a competitive basis, to designated 

22 entities for eligible projects to improve the efficiency and 

23 reliability of freight movement in the United States. 

24 ‘‘(b) PROJECT GOALS.—In carrying out the Program, 

25 the Secretary shall prioritize projects that— 


khammond on DSKBBV9HB2PROD with BILLS
11 

•HR 2723 IH

1 ‘‘(1) improve the efficiency and reliability of 

2 freight transportation; 

3 ‘‘(2) reduce the cost of freight transportation; 

4 ‘‘(3) improve the safety of freight transpor5 tation; 

6 ‘‘(4) relieve bottlenecks in the freight transpor7 tation system; 

8 ‘‘(5) improve the state of good repair of the 

9 freight transportation system; 

10 ‘‘(6) contribute to the environmental goals de11 scribed in the State freight plan; and 

12 ‘‘(7) reduce the adverse impacts of freight 

13 transportation on communities traversed by freight. 

14 ‘‘(c) GRANT APPLICATIONS.—To be eligible to receive 

15 a grant under the Program a designated entity shall sub16 mit to the Secretary an application at such time, in such 

17 form, and containing such information as the Secretary 

18 may require. 

19 ‘‘(d) ELIGIBLE PROJECT.—A project is eligible for a 

20 grant under the Program only if the Secretary determines 

21 that the project— 

22 ‘‘(1) that is— 

23 ‘‘(A) a capital investment project for a 

24 transportation infrastructure facility signifi25 cantly used for the movement of freight; or 


khammond on DSKBBV9HB2PROD with BILLS
12 

•HR 2723 IH

1 ‘‘(B) infrastructure necessary to mitigate 

2 the adverse impact of freight transportation on 

3 communities traversed by freight, including— 

4 ‘‘(i) a road, rail, or landside air or 

5 water facility; 

6 ‘‘(ii) an intermodal facility such as a 

7 seaport or port on the inland waterway 

8 system, an airport, or a highway and rail 

9 intermodal facility; 

10 ‘‘(iii) a facility related to an inter11 national border crossing; 

12 ‘‘(iv) is for an operational improve13 ment or equipment of a facility described 

14 in this paragraph; or 

15 ‘‘(v) railway-roadway grade separa16 tions and related improvements; 

17 ‘‘(2) will help to achieve the goals set out in 

18 subsection (b); 

19 ‘‘(3) has non-Federal source or sources of com20 mitted financing, along with any Federal funds, suf21 ficient to complete the project; 

22 ‘‘(4) has independent utility; 

23 ‘‘(5) is included in the State freight plan; and 

24 ‘‘(6) includes the development of project plans 

25 and analysis. 


khammond on DSKBBV9HB2PROD with BILLS
13 

•HR 2723 IH

1 ‘‘(e) GRANT CRITERIA.—The Secretary shall select 

2 eligible projects for funding based on the following cri3 teria: 

4 ‘‘(1) The extent to which the project is likely to 

5 advance the goals described in subsection (b). 

6 ‘‘(2) The likely benefits of the project relative 

7 to its costs. 

8 ‘‘(3) The extent to which the project dem9 onstrates the use of innovative technology, strate10 gies, and practices. 

11 ‘‘(4) The extent to which the project uses 

12 onroad construction vehicles and nonroad construc13 tion equipment that meet the emission standards of 

14 the Environmental Protection Agency. 

15 ‘‘(5) The extent to which the project dem16 onstrates effective reductions (in accordance with 

17 the State freight plan) in— 

18 ‘‘(A) greenhouse gas emissions; 

19 ‘‘(B) local air pollution, including ozone 

20 and ozone precursors, nitrogen oxides, sulfur di21 oxide, particulate matter, carbon monoxide, and 

22 lead; 

23 ‘‘(C) water runoff and other adverse water 

24 impacts; and 

25 ‘‘(D) wildlife habitat loss. 


khammond on DSKBBV9HB2PROD with BILLS
14 

•HR 2723 IH

1 ‘‘(6) The likely effect of the project on increas2 ing United States exports. 

3 ‘‘(7) The consistency of the project with the na4 tional freight strategic plan described under section 

5 70102. 

6 ‘‘(8) The extent to which the project leverages 

7 Federal funds by matching State, territorial, local, 

8 tribal, or private funds to the Federal funding re9 quested under the Program. 

10 ‘‘(9) The extent to which funds for the project 

11 are not available from other Federal sources. 

12 ‘‘(f) SPECIAL RULE.—A minimum of 5 percent of 

13 funds made available under the Program for a fiscal year 

14 shall be provided to zero-emission freight demonstration 

15 projects, as defined by the Secretary of Transportation, 

16 in consultation with the Administrator of the Environ17 mental Protection Agency. 

18 ‘‘(g) RETROSPECTIVE ANALYSIS.—A grant agree19 ment made under the Program shall require that the re20 cipient collect data and report to the Secretary, at an ap21 propriate time as determined by the Secretary, on— 

22 ‘‘(1) the actual cost of constructing the project; 

23 ‘‘(2) the time required to complete the project 

24 and put it into service; 


khammond on DSKBBV9HB2PROD with BILLS
15 

•HR 2723 IH

1 ‘‘(3) the level of usage of the facility built or 

2 improved by the project; 

3 ‘‘(4) the benefits of the project, measured in a 

4 way that is consistent with the benefits that were es5 timated in the application for funding that was sub6 mitted to the Secretary; and 

7 ‘‘(5) any costs resulting from the project in ad8 dition to the costs of constructing the project. 

9 ‘‘(h) EPA REPORT.—A grant agreement made under 

10 the Program shall require that the recipient collect data 

11 and, beginning 1 year from the date of the completion of 

12 the project and annually thereafter for 15 years, report 

13 to the Secretary and the Administrator of Environmental 

14 Protection Agency on progress made toward greenhouse 

15 gas emission reductions and local air pollution reductions 

16 in accordance with the State freight plan. All relevant data 

17 and reporting shall be collected and reported in accordance 

18 with guidance developed by the Administrator in consulta19 tion with the Secretary. 

20 ‘‘(i) PERIOD OF AVAILABILITY.—In entering into 

21 agreements under this section, the Secretary shall ensure 

22 that any funds made available for a project that are not 

23 obligated or expended before the last day of the third fiscal 

24 year following the fiscal year in which the funds are made 


khammond on DSKBBV9HB2PROD with BILLS
16 

•HR 2723 IH

1 available are transferred back to the Secretary for making 

2 grants under the Program. 

3 ‘‘(j) REDISTRIBUTION OF FUNDS.—If a designated 

4 entity that received a grant under this section has made 

5 no obligation of funding with respect to such grant by the 

6 end of the third fiscal year following the fiscal year in 

7 which the Secretary awarded the grant, the Secretary 

8 shall— 

9 ‘‘(1) withdraw the grant from the designated 

10 entity; and 

11 ‘‘(2) apply the funding to another grant under 

12 this section. 

13 ‘‘(k) FEDERAL SHARE.— 

14 ‘‘(1) IN GENERAL.—The Federal share of the 

15 cost of a project for which a grant is made under 

16 the Program, as estimated by the Secretary, shall be 

17 not more than 80 percent. 

18 ‘‘(2) ADDITIONAL FEDERAL SHARE.—The Fed19 eral share of the cost of a project carried out by a 

20 State using funds provided under this section may 

21 be increased by 5 percent if the such 5 percent is 

22 used for the mitigation of diesel emissions from con23 struction activities associated with the project. The 

24 Administrator of Environmental Protection Agency, 

25 in consultation with the Secretary, shall develop 


khammond on DSKBBV9HB2PROD with BILLS
17 

•HR 2723 IH

1 guidance for eligible equipment and activities con2 sistent with existing State, local, and nonprofit clean 

3 construction guidelines. 

4 ‘‘(l) ADMINISTRATION AND OVERSIGHT COSTS.—The 

5 Secretary may retain up to one-half of 1 percent of the 

6 amounts made available to carry out this section for each 

7 fiscal year for the cost of administration and oversight of 

8 projects funded under the Program. 

9 ‘‘(m) AUTHORIZATION AND AVAILABILITY OF

10 FUNDS.— 

11 ‘‘(1) AUTHORIZATION.—There is authorized to 

12 be appropriated from the Freight Trust Fund to 

13 carry out this section an amount equal to 50 percent 

14 of the receipts of the Freight Trust Fund for each 

15 fiscal year beginning in fiscal year 2020. 

16 ‘‘(2) AVAILABILITY.—Amounts authorized 

17 under paragraph (1) shall be— 

18 ‘‘(A) available for obligation on October 1 

19 of the fiscal year for which they are authorized; 

20 and 

21 ‘‘(B) available for obligation until ex22 pended. 

23 ‘‘(n) APPLICATION OF RATE REQUIREMENTS.—The 

24 Secretary shall take such action as may be necessary to 

25 apply the requirements described under section 113 of title 


khammond on DSKBBV9HB2PROD with BILLS
18 

•HR 2723 IH

1 23, as applicable, to any project receiving funds under this 

2 section. 

3 ‘‘(o) DEFINITIONS.—In this section: 

4 ‘‘(1) DESIGNATED ENTITY.—The term ‘des5 ignated entity’ means— 

6 ‘‘(A) a State; 

7 ‘‘(B) a unit of local government; 

8 ‘‘(C) a metropolitan planning organization; 

9 ‘‘(D) a public transportation authority (in10 cluding a port authority); 

11 ‘‘(E) a tribal government; or 

12 ‘‘(F) or a consortium of the entities de13 scribed in this paragraph. 

14 ‘‘(2) STATE.—The term ‘State’ means any of 

15 the 50 States, the District of Columbia, Puerto Rico, 

16 American Samoa, the Commonwealth of the North17 ern Mariana Islands, Guam, and the United States 

18 Virgin Islands. 

19 ‘‘(3) STATE FREIGHT PLAN.—The term ‘State 

20 freight plan’ means the State freight plan described 

21 under section 70202.’’. 

22 (b) CONFORMING AMENDMENT.—The table of sec23 tions for chapter 701 of title 49, United States Code, is 

24 amended by adding at the end the following: 

‘‘70104. Multimodal Freight Funding Formula Program. 

‘‘70105. National Freight Infrastructure Competitive Grant Program.’’. 


khammond on DSKBBV9HB2PROD with BILLS
19 

•HR 2723 IH

1 SEC. 3. NATIONAL AND STATE FREIGHT PLANS. 

2 (a) NATIONAL FREIGHT STRATEGIC PLAN.—Section 

3 70102(b) of title 49, United States Code, is amended— 

4 (1) in paragraph (10) by striking ‘‘and’’ at the 

5 end; 

6 (2) in paragraph (11) by striking the period at 

7 the end and inserting ‘‘; and’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(12) best practices to reduce greenhouse gas 

10 emissions, local air pollution, water runoff, and wild11 life habitat loss.’’. 

12 (b) STATE FREIGHT ADVISORY COMMITTEES.—Sec13 tion 70201 of title 49, United States Code, is amended— 

14 (1) in subsection (a) by striking ‘‘representa15 tives of ports, freight railroads,’’ and all that follows 

16 through ‘‘local governments’’ and inserting the fol17 lowing: ‘‘representatives of— 

18 ‘‘(1) ports; 

19 ‘‘(2) freight railroads; 

20 ‘‘(3) shippers; 

21 ‘‘(4) carriers; 

22 ‘‘(5) freight-related associations; 

23 ‘‘(6) third-party logistics providers; 

24 ‘‘(7) the freight industry workforce; 

25 ‘‘(8) the transportation department of the 

26 State; 


khammond on DSKBBV9HB2PROD with BILLS
20 

•HR 2723 IH

1 ‘‘(9) metropolitan planning organizations; 

2 ‘‘(10) local governments; 

3 ‘‘(11) the environmental protection department 

4 of the State, if applicable; and 

5 ‘‘(12) the air resources board of the State, if 

6 applicable’’; 

7 (2) by redesignating subsection (b) as sub8 section (c); 

9 (3) by inserting after subsection (a) the fol10 lowing: 

11 ‘‘(b) QUALIFICATIONS.—Each member of a freight 

12 advisory committee established under subsection (a) shall 

13 be widely recognized to have qualifications sufficient to 

14 represent the interests of such member’s stakeholder 

15 group, including, as applicable— 

16 ‘‘(1) a general business and financial experi17 ence; 

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

19 freight transportation and logistics; 

20 ‘‘(3) experience in transportation planning; 

21 ‘‘(4) experience representing employees of the 

22 freight industry; or 

23 ‘‘(5) experience representing a State, local gov24 ernment, or metropolitan planning organization.’’; 

25 and 


khammond on DSKBBV9HB2PROD with BILLS
21 

•HR 2723 IH

1 (4) in subsection (b)— 

2 (A) in paragraph (5) by inserting ‘‘, in3 cluding advising on the development of the 

4 freight investment plan’’ after ‘‘70202’’; and 

5 (B) by adding at the end the following: 

6 ‘‘(6) approve the State freight plan under sec7 tion 70202, including the freight investment plan.’’. 

8 (c) STATE FREIGHT PLANS.—Section 70202 of title 

9 49, United States Code, is amended— 

10 (1) in subsection (b)— 

11 (A) in paragraph (9)— 

12 (i) by inserting ‘‘and section 70104’’ 

13 after ‘‘section 167 of title 23’’; and 

14 (ii) by striking ‘‘and’’ at the end; 

15 (2) by redesignating paragraph (10) as para16 graph (12); 

17 (3) by inserting after paragraph (9) the fol18 lowing: 

19 ‘‘(10) strategies and goals to decrease— 

20 ‘‘(A) greenhouse gas emissions; 

21 ‘‘(B) local air pollution, including ozone 

22 and ozone precursors, nitrogen oxides, sulfur di23 oxide, particulate matter, carbon monoxide, and 

24 lead; 


khammond on DSKBBV9HB2PROD with BILLS
22 

•HR 2723 IH

1 ‘‘(C) water runoff and other adverse water 

2 impacts; and 

3 ‘‘(D) wildlife habitat loss; 

4 ‘‘(11) strategies and goals to decrease the ad5 verse impact of freight transportation on commu6 nities traversed by freight railroads; and’’; 

7 (4) by redesignating subsection (e) as sub8 section (f); and 

9 (5) by inserting after subsection (d) the fol10 lowing: 

11 ‘‘(e) CERTIFICATION.—The Secretary shall approve a 

12 freight plan if such plan meets the requirements of this 

13 section and is consistent with the National freight stra14 tegic plan described in section 70102. The Secretary, in 

15 consultation with the Administrator of the Environmental 

16 Protection Agency shall certify any environmental goal or 

17 strategy provisions of the plan.’’. 

18 SEC. 4. FREIGHT TRUST FUND. 

19 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

20 Internal Revenue Code of 1986 is amended by adding at 

21 the end the following new section: 

22 ‘‘SEC. 9512. FREIGHT TRUST FUND. 

23 ‘‘(a) CREATION OF TRUST FUND.—There is estab24 lished in the Treasury of the United States a trust fund 

25 to be known as the ‘Freight Trust Fund’ (hereinafter in 


khammond on DSKBBV9HB2PROD with BILLS
23 

•HR 2723 IH

1 this section referred to as the ‘Fund’) consisting of such 

2 amounts as may be appropriated or credited to such Fund 

3 as provided in this section or section 9602(b). 

4 ‘‘(b) TRANSFERS TO THE FUND.—There are hereby 

5 appropriated to the Fund amounts equivalent to taxes re6 ceived in the Treasury under section 4286. 

7 ‘‘(c) EXPENDITURES FROM FUND.—Amounts in the 

8 Fund shall be made available, as provided by appropria9 tion Acts, for making expenditures to meet obligations au10 thorized to be paid out of the Fund under section 2 of 

11 the National Multimodal and Sustainable Freight Infra12 structure Act.’’. 

13 (b) CLERICAL AMENDMENT.—The table of sections 

14 for subchapter A of chapter 98 of the Internal Revenue 

15 Code of 1986 is amended by adding at the end the fol16 lowing new item: 

‘‘Sec. 9512. Freight Trust Fund.’’. 

17 SEC. 5. FREIGHT MOBILITY INFRASTRUCTURE TAX. 

18 (a) IMPOSITION OF TAX.—Chapter 33 of the Internal 

19 Revenue Code of 1986 is amended by inserting after sub20 chapter C the following new subchapter: 

21 ‘‘Subchapter D—Ground Transportation 

22 Freight Tax 

‘‘Sec. 4286. Imposition of tax. 


khammond on DSKBBV9HB2PROD with BILLS
24 

•HR 2723 IH

1 ‘‘SEC. 4286. IMPOSITION OF TAX. 

2 ‘‘(a) IN GENERAL.—There is hereby imposed upon 

3 taxable ground transportation of property within the 

4 United States a tax equal to 1 percent of the amount paid 

5 for such transportation. 

6 ‘‘(b) BY WHOM PAID.— 

7 ‘‘(1) IN GENERAL.—The tax imposed by sub8 section (a) shall be paid— 

9 ‘‘(A) by the person making the payment 

10 subject to tax, or 

11 ‘‘(B) in the case of transportation by a re12 lated person, by the person for whom such 

13 transportation is made. 

14 ‘‘(2) DETERMINATIONS OF AMOUNTS PAID IN

15 CERTAIN CASES.—For purposes of this section, rules 

16 similar to the rules of section 4271(c) shall apply. 

17 ‘‘(c) TRANSPORTATION BY RELATED PERSONS.—In 

18 the case of transportation of property by the shipper or 

19 a person related to the shipper, the fair market value of 

20 such transportation shall be the amount which would be 

21 paid for transporting such property if such property were 

22 transported by an unrelated person, determined on an 

23 arms’ length basis. 

24 ‘‘(d) DEFINITIONS AND SPECIAL RULE.—For pur25 poses of this subchapter— 


khammond on DSKBBV9HB2PROD with BILLS
25 

•HR 2723 IH

1 ‘‘(1) TAXABLE GROUND TRANSPORTATION.— 

2 The term ‘taxable ground transportation’ means 

3 transportation of property by— 

4 ‘‘(A) freight rail, or 

5 ‘‘(B) truck trailer and semitrailer chassis 

6 and bodies, suitable for use with a trailer or 

7 semitrailer which has a gross vehicle weight of 

8 26,000 pounds or more. 

9 For purposes of subparagraph (B), the terms ‘truck 

10 trailer’ and ‘semitrailer’ have the same meanings as 

11 such terms have in section 4051. 

12 ‘‘(2) RELATED PERSON.—A person (hereinafter 

13 in this paragraph referred to as the ‘related person’) 

14 is related to any person if— 

15 ‘‘(A) the related person bears a relation16 ship to such person specified in section 267(b) 

17 or 707(b)(1), or 

18 ‘‘(B) the related person and such person 

19 are engaged in trades or businesses under com20 mon control (within the meaning of subsections 

21 (a) and (b) of section 52). 

22 For purposes of the preceding sentence, in applying 

23 sections 267(b) and 707(b)(1), ‘10 percent’ shall be 

24 substituted for ‘50 percent’ each place it appears. 


khammond on DSKBBV9HB2PROD with BILLS
26 

•HR 2723 IH

1 ‘‘(3) TRANSPORTATION OUTSIDE THE UNITED

2 STATES.—In the case an amount paid for transpor3 tation any portion of which is outside the United 

4 States, the portion of such amount paid which is al5 locable to transportation within the United States 

6 shall be determined under regulations prescribed by 

7 the Secretary. Such regulations shall include rules to 

8 include transportation outside the United States the 

9 primary purpose of which is to avoid the tax im10 posed by this section. 

11 ‘‘(e) EXEMPTION FOR UNITED STATES AND POSSES12 SIONS AND STATE AND LOCAL GOVERNMENTS.—The tax 

13 imposed by subsection (a) shall not apply to amounts paid 

14 for transportation of property purchased for the exclusive 

15 use of the United States, or any State or political subdivi16 sion thereof.’’. 

17 (b) CREDITS OR REFUNDS TO PERSONS WHO COL18 LECTED CERTAIN TAXES.—Section 6415 of such Code is 

19 amended by striking ‘‘or 4271’’ each place it appears and 

20 inserting ‘‘4271, or 4286’’. 

21 (c) CLERICAL AMENDMENT.—The table of sub22 chapters for chapter 33 of the Internal Revenue Code of 

23 1986 is amended by inserting after the item relating to 

24 subchapter C the following new item: 

‘‘SUBCHAPTER D. GROUND TRANSPORTATION FREIGHT TAX’’. 


khammond on DSKBBV9HB2PROD with BILLS
27 

•HR 2723 IH

1 (d) REGULATIONS.—Not later than 180 days after 

2 the date of the enactment of this Act, the Secretary of 

3 the Treasury shall issue regulations to carry out the 

4 amendments made by this section. 

5 (e) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to transportation beginning on or 

7 after the last day of the 180-day period beginning on the 

8 date of the issuance of regulations under subsection (c). 

Æ 


khammond on DSKBBV9HB2PROD with BILLS