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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4726 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 4726

   To amend title 23, United States Code, to direct the Secretary of 
  Transportation to establish an innovation in surface transportation 
                    program, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2014

Mr. Rodney Davis of Illinois (for himself and Ms. Titus) introduced the 
 following bill; which was referred to the Committee on Transportation 
                           and Infrastructure

_______________________________________________________________________

                                 A BILL

 
   To amend title 23, United States Code, to direct the Secretary of 
  Transportation to establish an innovation in surface transportation 
                    program, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Innovation in Surface Transportation 
Act of 2014''.

SEC. 2. INNOVATION IN SURFACE TRANSPORTATION PROGRAM.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
amended by inserting after section 104 the following:
``Sec. 105. Innovation in surface transportation program
    ``(a) In General.--The Secretary, in coordination with State 
transportation departments, shall establish an innovation in surface 
transportation program in accordance with the requirements of this 
section.
    ``(b) Purposes.--The purposes of the program shall be--
            ``(1) to increase the return on investment in the Nation's 
        surface transportation system;
            ``(2) to make the Nation's surface transportation system 
        more reliable, safe, and efficient by advancing innovative 
        projects selected through State competitions;
            ``(3) to increase input from local government and 
        stakeholders on projects receiving funding; and
            ``(4) to leverage Federal highway dollars further through 
        in-State competitions.
    ``(c) Grants.--
            ``(1) In general.--A State shall make grants under this 
        section to eligible entities for eligible projects to be 
        carried out in the State using funds reserved by the State for 
        a fiscal year under subsection (e)(1).
            ``(2) State competitions.--
                    ``(A) In general.--For the purposes of making 
                grants under this section, a State shall conduct a 
                competition each fiscal year under which the State will 
                accept grant applications submitted by eligible 
                entities.
                    ``(B) Competition dates.--A State shall conduct a 
                competition under subparagraph (A)--
                            ``(i) not later than 180 days after the 
                        date of enactment of this section; and
                            ``(ii) not later than 30 days after the 
                        first day of each fiscal year beginning after 
                        such date of enactment.
            ``(3) Selection criteria.--
                    ``(A) Establishment of selection criteria.--The 
                State selection panel of each State shall establish and 
                make available to the public the project selection 
                criteria that will be used by the State in conducting 
                competitions under paragraph (2).
                    ``(B) Factors.--The project selection criteria of a 
                State may provide for the approval of project 
                applications based on the extent to which the 
                projects--
                            ``(i) improve safety for all users of the 
                        transportation network;
                            ``(ii) strengthen the contribution of a 
                        national freight network to the Nation's 
                        economic competitiveness;
                            ``(iii) promote multimodal connectivity;
                            ``(iv) strengthen return on investment, 
                        particularly the impact on local economic 
                        development;
                            ``(v) improve access to jobs, sources of 
                        labor, schools, and opportunity;
                            ``(vi) optimize, through better design and 
                        operation, the usage and efficiency of existing 
                        transportation facilities;
                            ``(vii) improve the reliability of the 
                        transportation system of the United States;
                            ``(viii) encourage innovation and the use 
                        of technology; or
                            ``(ix) further the purposes described in 
                        subsection (b).
                    ``(C) Special consideration of certain factors.--In 
                addition to the factors specified in subparagraph (B), 
                the project selection criteria of a State may--
                            ``(i) provide that special consideration in 
                        the approval of project applications is given 
                        to eligible projects that--
                                    ``(I) maximize the amount of 
                                proposed project costs that can be 
                                borne by the applicant from non-Federal 
                                sources; or
                                    ``(II) have prior significant 
                                Federal or non-Federal investment; and
                            ``(ii) give equal consideration to 
                        differences in the fiscal capacity of public 
                        eligible entities.
                    ``(D) Funding distribution.--The project selection 
                criteria of a State shall take into consideration the 
                equitable distribution of funds by geography and 
                population.
            ``(4) Special rule for private transportation providers.--
        An eligible entity that is a private transportation provider 
        may submit a project application in a State competition 
        conducted under paragraph (2) only if the application is 
        sponsored by a public entity.
    ``(d) Innovation in Surface Transportation Selection Panel.--
            ``(1) In general.--A State, in coordination with local 
        transportation stakeholders, shall establish an innovation in 
        surface transportation selection panel in accordance with this 
        subsection.
            ``(2) Duties.--A State selection panel shall--
                    ``(A) review project applications submitted to the 
                State during a competition conducted under subsection 
                (c)(2); and
                    ``(B) approve and disapprove the project 
                applications based on the criteria set forth in 
                subsection (c)(3).
            ``(3) Membership.--A State selection panel shall be 
        composed of the following members to be appointed by the 
        State--
                    ``(A) not fewer than 3 individuals representing the 
                State's transportation department;
                    ``(B) not fewer than 3 individuals representing 
                local governments in the State, with at least 1 
                representative from each of--
                            ``(i) a jurisdiction with a population of 
                        50,000 individuals or fewer;
                            ``(ii) a jurisdiction with a population of 
                        more than 50,000 individuals and not more than 
                        1,000,000 individuals; and
                            ``(iii) a jurisdiction with a population of 
                        more than 1,000,000 individuals, if applicable; 
                        and
                    ``(C) not fewer than 3 individuals representing 
                metropolitan planning organizations, councils of 
                governments, and rural planning organizations.
            ``(4) Additional members.--In addition to the members 
        appointed under paragraph (3), a State selection panel shall be 
        composed of 9 members to be appointed by the State, in 
        coordination with local transportation stakeholders, from among 
        individuals representing--
                    ``(A) local chambers of commerce;
                    ``(B) transportation management organizations, 
                travel and tourism boards, economic development 
                organizations, and other coalitions of employers and 
                commerce;
                    ``(C) local air quality boards or local 
                organizations supporting improved air quality;
                    ``(D) State safety boards or local organizations 
                supporting safety;
                    ``(E) transit agencies;
                    ``(F) port authorities, if applicable;
                    ``(G) active transportation organizations;
                    ``(H) public interest organizations; and
                    ``(I) labor unions.
            ``(5) Distribution of representatives.--A State shall 
        appoint members to the State's selection panel in a manner such 
        that--
                    ``(A) the number of members appointed under each of 
                paragraphs (3)(A), (3)(B), and (3)(C) is equal; and
                    ``(B) at least 1 member is appointed under 
                paragraph (4) from each of the entities described in 
                subparagraphs (A) through (H) of paragraph (4), if 
                applicable.
            ``(6) Geographic diversity.--The members of a State 
        selection panel shall be geographically diverse, to the extent 
        practicable.
            ``(7) Representation limitation.--Except for the 
        representatives described in paragraphs (3)(A) and (3)(B)(iii), 
        no entity may be represented on a State selection panel for 
        more than 2 consecutive years if a comparable entity can also 
        be represented on the panel.
            ``(8) Continuity.--A State shall appoint members to the 
        State's selection panel using a 2-tiered rotation process that 
        ensures continuity of the panel by rotating the membership of 
        the panel on a staggered basis.
    ``(e) Funding.--
            ``(1) Reservation of funds.--On October 1 of each fiscal 
        year, a State shall make the following reservations of funds:
                    ``(A) National highway performance program.--The 
                State shall reserve 10 percent of the amount 
                apportioned to the State for the fiscal year under 
                section 104(b)(1)--
                            ``(i) for carrying out State competitions 
                        under this section; and
                            ``(ii) for making grants under this section 
                        for eligible projects.
                    ``(B) Highway safety improvement program.--The 
                State shall reserve not less than 33 percent of the 
                amount apportioned to the State for the fiscal year 
                under section 104(b)(3) for making grants under this 
                section for eligible projects that are projects 
                described in section 148.
                    ``(C) Congestion mitigation and air quality 
                improvement program.--
                            ``(i) Reservation of funds.--The State 
                        shall reserve not less than 33 percent of the 
                        amount apportioned to the State for the fiscal 
                        year under section 104(b)(4) and unobligated 
                        balances for section 104(b)(4) from the prior 
                        fiscal year for making grants under this 
                        section for eligible projects that are projects 
                        described in section 149(b).
                            ``(ii) Use of reserved funds.--If the State 
                        has one or more nonattainment areas (as defined 
                        in section 171(2) of the Clean Air Act (42 
                        U.S.C. 7501(2))), the State shall use amounts 
                        reserved under this subparagraph for making 
                        grants under this section for eligible projects 
                        described in section 149(b) in such areas.
                    ``(D) Surface transportation program.--The State 
                shall reserve not less than 33 percent of the amount 
                allocated to the State for the fiscal year under 
                section 133(d)(1)(B) for making grants under this 
                section for eligible projects.
                    ``(E) Transportation alternatives program.--The 
                State shall reserve 33 percent of the amount reserved 
                by the State for the fiscal year under section 
                213(c)(1)(B) for making grants under this section for 
                eligible projects that are projects described in 
                section 213(b).
            ``(2) Special rule.--Any funds that a State directly 
        suballocates to metropolitan areas or direct recipients of 
        funds under section 5307 of title 49 or awards through an open 
        statewide competition to eligible entities shall be excluded 
        from the funds from which reservations are to be made under 
        paragraph (1).
            ``(3) Non-awarded funds.--For each fiscal year, a State 
        shall--
                    ``(A) determine--
                            ``(i) the total amount of funds, if any, 
                        that have been reserved by the State for the 
                        fiscal year under paragraph (1) but have not 
                        been awarded by the State in grants under this 
                        section on or before the last day of the fiscal 
                        year; and
                            ``(ii) the total amount of funds, if any, 
                        that have been awarded in grants by the State 
                        under this section but remain unobligated by 
                        the grant recipient after the last day of the 
                        5-year period beginning on the date on which 
                        the grant was awarded; and
                    ``(B) distribute or redistribute such funds, as 
                appropriate, using the process under subsection (c)(2).
    ``(f) Definitions.--In this section, the following definitions 
apply:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) a local government;
                    ``(B) a regional transportation authority;
                    ``(C) a transit agency;
                    ``(D) a tribal government;
                    ``(E) a private provider of public transportation;
                    ``(F) a nonprofit transportation organization;
                    ``(G) a port authority;
                    ``(H) a joint power authority; or
                    ``(I) a local rail authority.
            ``(2) Eligible project.--The term `eligible project' 
        means--
                    ``(A) a project eligible under--
                            ``(i) section 133(b), relating to the 
                        surface transportation program;
                            ``(ii) section 148, relating to the highway 
                        safety improvement program;
                            ``(iii) section 149(b), relating to the 
                        congestion mitigation and air quality 
                        improvement program; or
                            ``(iv) section 213(b), relating to the 
                        transportation alternatives program; or
                    ``(B) a surface transportation project that will 
                improve the movement of goods along a primary freight 
                network, including multimodal facilities near a primary 
                freight route.
            ``(3) Program.--The term `program', except as otherwise 
        specifically provided, means the innovation in surface 
        transportation program established under this section.
            ``(4) State selection panel.--The term `State selection 
        panel' means an innovation in surface transportation selection 
        panel established by a State under subsection (d).
    ``(g) Transparency.--Not later than 30 days after a State has 
selected projects for a fiscal year to receive funding under this 
section, the State shall make available, in a publically accessible 
medium that is easy to navigate--
            ``(1) the criteria and methodology used to select the 
        projects;
            ``(2) a list of all the projects for which funding was 
        requested, including, for each such project--
                    ``(A) the total estimated project cost; and
                    ``(B) the amount of funding requested;
            ``(3) a list of projects that were selected to receive 
        funding under this section, including, for each such project--
                    ``(A) the amount of funding requested;
                    ``(B) the amount of funding granted; and
                    ``(C) the source of the non-Federal share of cost 
                of the project; and
            ``(4) the ranking and scoring of all projects for which 
        funding was requested.
    ``(h) Reporting Requirements.--
            ``(1) State reports.--Not later than 180 days after the 
        last day of each fiscal year, a State shall submit to the 
        Secretary a report that describes--
                    ``(A) the information required under subsection 
                (g);
                    ``(B) the organizations that were represented on 
                the State's selection panel;
                    ``(C) the portion of the funds available to the 
                State for the program that have been obligated; and
                    ``(D) the percentage of the funds available to the 
                State for the program that were used for administrative 
                expenses.
            ``(2) Biennial report to congress.--Not later than 
        September 30, 2016, and biennially thereafter, the Secretary 
        shall submit a consolidated report on the program, including a 
        review of the State reports submitted pursuant to paragraph 
        (1), to--
                    ``(A) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    ``(B) the Committee on Commerce, Science, and 
                Transportation of the Senate;
                    ``(C) the Committee on Environment and Public Works 
                of the Senate; and
                    ``(D) the Committee on Transportation and 
                Infrastructure of the House of Representatives.
            ``(3) Availability.--The Secretary shall make the report 
        submitted under paragraph (2) available on the public Internet 
        Web site of the Department of Transportation.
    ``(i) Special Rule for States With Competitive and Suballocated 
Programs.--
            ``(1) In general.--The Secretary may permit a State to 
        distribute funding described in subparagraphs (A), (B), (C), 
        (D), or (E) of subsection (e)(1) through the mechanisms 
        described in paragraph (2) if the Secretary certifies that the 
        State is distributing such funding in a manner that fulfills 
        the purposes of this section.
            ``(2) Distribution mechanisms.--Distribution mechanisms 
        that qualify under paragraph (1) include--
                    ``(A) an open and competitive State program that is 
                substantially similar to the requirements of this 
                section;
                    ``(B) direct suballocation to metropolitan areas of 
                a majority of all funds--
                            ``(i) apportioned to the State under 
                        sections 104(b)(1), 104(b)(2), 104(b)(3), and 
                        104(b)(4); and
                            ``(ii) allocated to the State under section 
                        213(a)(1); and
                    ``(C) a competitive State program or direct 
                suballocation to metropolitan areas or direct 
                recipients of funds under section 5307 of title 49 of 
                more than 95 percent of the funds--
                            ``(i) apportioned to the State under 
                        section 104(b)(1), 104(b)(2), 104(b)(3), or 
                        104(b)(4); or
                            ``(ii) allocated to the State under section 
                        213(a)(1).
            ``(3) Publication in federal register.--Before making a 
        certification under paragraph (1)(B), the Secretary shall--
                    ``(A) publish in the Federal Register the 
                Secretary's intent to make the certification;
                    ``(B) provide the public not fewer than 90 days to 
                comment on the proposed certification; and
                    ``(C) take into consideration any comments received 
                during the comment period.
            ``(4) Notice to congress.--At least 15 days before making a 
        certification under paragraph (1)(B), the Secretary shall 
        submit a notice to the congressional committees referred to in 
        subsection (h)(2) and the members of the State's congressional 
        delegation that includes--
                    ``(A) a notification of the Secretary's intent to 
                make the certification; and
                    ``(B) a justification for the proposed 
                certification.''.
    (b) Clerical Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by inserting after the item relating to 
section 104 the following:

``105. Innovation in surface transportation program.''.
                                 <all>
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