(vii) the construction and improve-
ment of rail and highway bridges that 
carry a substantial amount of freight; 
(viii) the construction of highway 
ramps built to carry a substantial amount 
of freight; and 
(ix) the construction of highway lanes, 
including lanes that segregate freight and 
passenger vehicular traffic; 
(B) will improve freight mobility, capacity, 
and efficiency in the United States; 
(C) is cost effective; 
(D) is based on the results of preliminary 
engineering; 
(E) is justified based on the extent to 
which the project— 
(i) will enhance State, regional, or na-
tional economic development, performance, 
and efficiency as measured by— 
(I) the creation of new businesses 
and jobs and the retention of existing 
businesses and jobs; 
(II) State and local tax receipts; 
and 
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(III) improved safety, as meas-
ured by reductions in accidents, inju-
ries, and fatalities; and 
(ii) will maximize economic opportuni-
ties for communities; and 
(F) is supported by an acceptable degree 
of non-Federal financial commitments, includ-
ing that— 
(i) the project provides for the avail-
ability of contingency amounts that, as de-
termined by the Secretary, are reasonable 
to cover unanticipated cost increases; and 
(ii) each proposed non-Federal source 
of financing is stable, reliable, and avail-
able within the project timetable. 
(3) CONSIDERATIONS.—In selecting a project 
for a grant under the program, the Secretary shall 
consider the extent to which the project— 
(A) meets the requirements specified in 
paragraph (2); 
(B) complements and supports the objec-
tives of applicable freight plans developed by 
States under section 1118 of MAP–21 (23 
U.S.C. 167 note); 
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(C) facilitates freight throughput of higher 
volume and values; 
(D) uses operational efficiencies, including 
intelligent transportation systems, that enhance 
the efficiency or effectiveness (or both) of the 
project; 
(E) helps maintain or protect the environ-
ment; and 
(F) improves or enhances segments of the 
primary freight network designated under sec-
tion 167(d) of title 23, United States Code. 
(d) NOTICE TO CONGRESS.—Not less than 90 days 
before making a grant under the program, the Secretary 
shall submit to Congress written notice of the grant. 
(e) FUNDING.—The Secretary shall carry out the 
program using amounts made available to the Secretary 
from the National Freight Mobility Infrastructure Fund 
established under section 9512 of the Internal Revenue 
Code of 1986. 
(f) LIMITATION
ON GRANT DISTRIBUTION.—Not 
more than 10 percent of the amounts available during a 
fiscal year for grants under the program may be used for 
projects located in a single State. 
(g) FULL FUNDING GRANT AGREEMENTS.—The Sec-
retary may enter into a grant under the program that pro-
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vides funding for a project in more than one fiscal year. 
An agreement for such a grant shall— 
(1) establish the maximum amount of Federal 
financial assistance for the project; 
(2) establish the time period for Federal finan-
cial assistance for the project; 
(3) provide grant funds for the fiscal year in 
which the grant is made; and 
(4) include a commitment, that is not an obli-
gation of the Federal Government and that is con-
tingent on the availability of funds, for grant 
amounts to be provided in fiscal years following the 
fiscal year in which the grant is made. 
(h) NON-FEDERAL FINANCIAL COMMITMENTS.— 
(1) FEDERAL SHARE.—The Federal share of 
the cost of a project for which a grant is made 
under the program, as estimated by the Secretary, 
shall be not more than 80 percent. 
(2) CONSIDERATIONS.—In assessing the sta-
bility, reliability, and availability of proposed sources 
of non-Federal financing for purposes of subsection 
(c)(2)(F)(ii), the Secretary shall consider— 
(A) existing financial commitments; 
(B) the degree to which financing sources 
are dedicated to the purposes proposed; 
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(C) any debt obligation that exists or is 
proposed by the grant recipient for the pro-
posed project; and 
(D) the extent to which the project has a 
non-Federal financial commitment that exceeds 
the required non-Federal share of the cost of 
the project. 
(i) HIGHWAY CONSTRUCTION.—A grant made to as-
sist the construction of a highway under the program shall 
be subject to the requirements relating to such construc-
tion under title 23, United States Code. 
(j) OTHER TERMS AND CONDITIONS.—The Secretary 
shall ensure that all grants made under the program are 
subject to terms, conditions, and requirements that the 
Secretary decides are necessary or appropriate for pur-
poses of this section, including requirements for the dis-
position of net increases in the value of real property re-
sulting from the project assisted under the program. 
(k) ADMINISTRATIVE COSTS.—In carrying out the 
program, the Secretary shall seek to minimize administra-
tive costs, including overhead, enforcement, and auditing 
costs related to the program. 
(l) ANNUAL REPORT.—Not later than 1 year after 
the date of enactment of this Act, and annually thereafter, 
the Secretary shall submit to the Committee on Transpor-
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tation and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Transpor-
tation of the Senate a report on the activities of the Sec-
retary under the program. 
(m) REGULATIONS.—Not later than 180 days after 
the date of enactment of this Act, the Secretary shall issue 
regulations to carry out this section. 
(n) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) DESIGNATED
ENTITY.—The term ‘‘des-
ignated entity’’ means— 
(A) an entity designated by the chief exec-
utive officer of a State (or the chief executive 
officer’s designee) as eligible to apply for and 
receive funding under the program; 
(B) a regional authority responsible under 
the laws of a State for a project eligible for 
funding under the program; and 
(C) a public port. 
(2) ELIGIBLE
COSTS.—The term ‘‘eligible 
costs’’ means the costs of a project with respect to— 
(A) development phase activities, including 
planning, feasibility analysis, revenue fore-
casting, environmental review, preliminary engi-
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