Build America Act of 2018

To provide dedicated funding for the national infrastructure investment program and the capital investment grant program, and for other purposes. 1. Short title This Act may be cited as the Build America Act of 2018 2. National infrastructure investment program (a) Establishment The Secretary of Transportation shall carry out a national infrastructure investment program (in this section referred to as the program (b) Discretionary grants The Secretary shall distribute funds made available to carry out the program as discretionary grants to be awarded to a State, local government, or transit agency, or a collaboration among such entities, on a competitive basis for projects that will have a significant impact on the Nation, a metropolitan area, or a region. (c) Eligible projects Projects that are eligible for funding under the program include, at a minimum, the following: (1) Highway and bridge projects eligible under title 23, United States Code. (2) Public transportation projects eligible under chapter 53 (3) Passenger and freight rail transportation projects. (4) Port infrastructure investments (including inland port infrastructure and land ports of entry). (d) TIFIA The Secretary may use up to 20 percent of the funds made available to carry out the program for a fiscal year for the purpose of paying the subsidy and administrative costs of projects eligible for Federal credit assistance under chapter 6 (e) Distribution of funds In distributing funds provided under the program, the Secretary shall take measures to ensure— (1) an equitable geographic distribution of funds; (2) an appropriate balance in addressing the needs of urban and rural areas; and (3) investment in a variety of transportation modes. (f) Fair consideration The Secretary shall ensure that— (1) eligible projects receive fair consideration under the program; and (2) funds made available to carry out the program are used to provide funding for eligible projects to the maximum extent practicable. (g) Grant amounts A grant funded under the program shall be not less than $5,000,000 and not greater than $45,000,000. (h) Awards in single State Not more than 10 percent of the funds made available under the program for a fiscal year may be awarded to projects in a single State. (i) Federal share The Federal share of the costs for which an expenditure is made under the program shall be, at the option of the recipient, up to 80 percent. (j) Priority projects In carrying out the program, the Secretary shall give priority to projects that require a contribution of Federal funds in order to complete an overall financing package. (k) Rural areas (1) Set aside Not less than 20 percent of the funds provided under the program for a fiscal year shall be for projects located in rural areas (as defined in section 101(a) of title 23, United States Code). (2) Grant amounts; Federal share For projects located in rural areas— (A) the minimum grant size under the program shall be $1,000,000; and (B) the Secretary may increase the Federal share of costs above 80 percent. (l) Wage rate requirements Projects conducted using funds provided under the program must comply with the requirements of subchapter IV of chapter 31 (m) Annual competitions For each fiscal year, the Secretary shall conduct a new competition to select projects for grants and credit assistance awarded under the program. (n) Administrative expenses To fund the award and oversight of grants and credit assistance made under the program, the Secretary may— (1) retain up to $25,000,000 of the funds provided to carry out the program for a fiscal year; and (2) transfer portions of those funds to the Administrators of the Federal Highway Administration, the Federal Transit Administration, the Federal Railroad Administration, and the Maritime Administration. (o) Period for obligation of funds (1) In general Funds made available for a fiscal year to carry out the program shall remain available to the Secretary for obligation under the program for a period of 3 years after the last day of the fiscal year for which the funds are authorized. (2) Transfer of unobligated funds Any amounts made available to carry out the program that remain unobligated at the end of the 3-year period referred to in paragraph (1) shall be transferred to the Highway Trust Fund. (p) Funding There shall be available, without further appropriation, from the National Infrastructure Investment Trust Fund for expenditure by the Secretary to carry out the program $3,000,000,000 for each fiscal year. 3. Fixed guideway capital investment grants (a) Funding There shall be available from the Fixed Guideway Capital Investment Trust Fund, without further appropriation, for expenditure by the Secretary of Transportation to carry out section 5309 of title 49, United States Code, $9,000,000,000 for each fiscal year. (b) Administrative expenses Of the amounts made available for a fiscal year under subsection (a) to carry out section 5309 of title 49, United States Code, the Secretary may retain not more than 1 percent of the total funds made available to carry out such section to administer the award and oversee grants made under the program. (c) Period for obligation of funds (1) In general Funds made available for a fiscal year under subsection (a) to carry out section 5309 of title 49, United States Code, shall remain available to the Secretary for obligation under that section for a period of 4 years after the last day of the fiscal year for which the funds are authorized. (2) Transfer of unobligated funds Any amounts made available under subsection (a) to carry out section 5309 of title 49, United States Code, that remain unobligated at the end of the 4-year period referred to in paragraph (1) shall be deposited in the Highway Trust Fund. 4. Establishment of Trust Funds (a) In general Subchapter A of chapter 28 9512. National Infrastructure Investment Trust Fund (a) Creation of Trust Fund There is established in the Treasury of the United States a trust fund to be known as the National Infrastructure Investment Trust Fund (b) Transfer to National Infrastructure Investment Trust Fund of amounts equivalent to certain taxes There are hereby appropriated to the National Infrastructure Investment Trust Fund amounts equivalent to the portion of the taxes received in the Treasury under subsections (a)(1) and (b) of section 5701 that are attributable to the increase in tax imposed by such subsections by reason of the amendments made by section 5 of the Build America Act of 2018. (c) Expenditures from National Infrastructure Investment Trust Fund Amounts in the National Infrastructure Investment Trust Fund shall be available, without further appropriation, to the Secretary of Transportation for making expenditures under the national infrastructure investment program authorized by section 2 of the Build America Act of 2018. 9513. Fixed Guideway Capital Investment Trust Fund (a) Creation of Trust Fund There is established in the Treasury of the United States a trust fund to be known as the Fixed Guideway Capital Investment Trust Fund (b) Transfer to Fixed Guideway Capital Investment Trust Fund of amounts equivalent to certain taxes There are hereby appropriated to the Fixed Guideway Capital Investment Trust Fund amounts equivalent to 25 percent of the portion of the taxes received in the Treasury under the rates described in clauses (i) and (iii) of section 4081(a)(2)(A), and section 4081(a)(2)(D), but only to the extent such amounts are attributable to the increase in rates under such clauses, and such section, by reason of the amendments made by section 6 of the Build America Act of 2018. For purposes of the preceding sentence, taxes received under section 4041 and 4081 shall be determined without reduction for credits under section 6426. (c) Expenditures from Fixed Guideway Capital Investment Trust Fund Amounts in the Fixed Guideway Capital Investment Trust Fund shall be available, without further appropriation, to the Secretary of Transportation for making expenditures after October 1, 2019, under section 5309 of title 49, United States Code, pursuant to the authorization in section 3 of the Build America Act of 2018. . (b) Clerical amendment The table of sections for subchapter A of chapter 98 Sec. 9512. National Infrastructure Investment Trust Fund. Sec. 9513. Fixed Guideway Capital Investment Trust Fund. . 5. Increase in tax on cigarettes and small cigars (a) Small cigars Section 5701(a)(1) $50.33 per thousand $75.30 per thousand (b) Cigarettes Section 5701(b) of such Code is amended— (1) by striking $50.33 per thousand $75.30 per thousand (2) by striking $105.69 per thousand $130.69 per thousand 6. Increase in tax on motor fuels (a) Gasoline other than aviation gasoline Section 4081(a)(2)(A)(i) 18.3 cents 53.3 cents (b) Diesel fuel or kerosene Section 4081(a)(2)(A)(iii) of such Code is amended by striking 24.3 cents 59.3 cents (c) Increase for inflation Section 4081(a)(2) of such Code is amended by adding at the end the following new subparagraph: (E) Adjustment for inflation In the case of any calendar year beginning after 2018, the rates of tax contained in clauses (i) and (iii) of subparagraph (A) shall each be increased by an amount equal to— (i) such rate, multiplied by (ii) the cost of living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2016 calendar year 1992 Any increase under the preceding sentence shall be rounded to the nearest 0.1 cents. . (d) Diesel-Water fuel emulsion Section 4081(a)(2)(D) of such Code is amended by striking substituting 19.7 cents 24.3 cents substituting a rate equal to 81 percent of the rate in effect for the calendar year under such subparagraph. (e) Effective date The amendments made by this section shall apply to fuels removed, entered, or sold after October 1, 2018. 7. Highway Trust Fund (a) Coordination with Fixed Guideway Capital Investment Trust Fund Section 9503(b)(4) or , or (E) clauses (i) and (iii) of section 4081(a)(2)(A), and section 4081(a)(2)(D), but only to the extent of amounts equivalent to the portion of such taxes as are appropriated to the Fixed Guideway Capital Investment Trust Fund under section 9513(b). . (b) Mass transit portion adjusted Section 9503(e)(2)(A) of such Code is amended by striking 2.86 cents 6.25 cents (c) Transfer of unobligated national infrastructure investment and fixed guideway capital investment amounts Section 9503(f) (10) Further transfers to trust fund (A) In general There is hereby appropriated to the Highway Trust Fund amounts to be transferred to the Trust Fund pursuant to sections 2(o) and 3(c)(2) of the Build America Act of 2018. (B) Transfer of portion to Mass Transit Account From such amounts, the Secretary shall transfer to the Mass Transit Account so much as bears the same ratio to such amount as the mass transit portion (as defined in subsection (e)(2)) bears to all taxes imposed with respect to fuel by sections 4041 and 4081 and otherwise deposited into the Highway Trust Fund. .

Summary: Build America Act of 2018 This bill directs the Department of Transportation (DOT) to carry out a national infrastructure investment grant program for capital investments in surface transportation infrastructure. Projects eligible for funding under the program include, at a minimum, highway and bridge projects, public transportation projects, passenger and freight rail transportation projects, and port infrastructure investments. In distributing grants under the program, DOT shall ensure an equitable geographic distribution of funds, an appropriate balance in addressing the needs of urban and rural areas, and investment in a variety of transportation modes. At least 20% of grant funds must be set aside for projects in rural areas. The bill amends the Internal Revenue Code to: (1) establish a National Infrastructure Investment Trust Fund and a Fixed Guideway Capital Investment Trust Fund, and (2) increase the tax on small cigars and cigarettes and on gasoline other than aviation gasoline and on diesel fuel or kerosene.