(8) improves safety as measured by reductions 
in accidents, injuries, and fatalities; and 
(9) is supported by an acceptable degree of non- 
Federal financial commitments, as determined under 
subsection (d). 
(d) NON-FEDERAL FINANCIAL COMMITMENT.— 
(1) REQUIREMENTS.—In evaluating a project 
under this section, the Secretary shall require that— 
(A) the proposed project plan provides for 
the availability of contingency amounts that the 
Secretary determines to be reasonable to cover 
unanticipated cost increases; and 
(B) each proposed non-Federal source of 
capital and operating financing is stable, reli-
able, and available within the proposed project 
timetable. 
(2) CONSIDERATIONS.—In assessing the sta-
bility, reliability, and availability of proposed sources 
of non-Federal financing under paragraph (1)(B), 
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 recipient for the proposed 
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. 
(e) PROJECT EVALUATION.— 
(1) IN GENERAL.—A proposed project may ad-
vance from preliminary engineering to final design 
and construction only if the Secretary finds that the 
project meets the requirements of this section and 
there is a reasonable likelihood that the project will 
continue to meet such requirements. 
(2) EVALUATION
AND
RATING.—In making 
such findings, the Secretary shall evaluate and rate 
the 
project 
as 
‘‘highly 
recommended’’, 
‘‘rec-
ommended’’, or ‘‘not recommended’’ based on the re-
sults of preliminary engineering, the project selection 
considerations, and the degree of non-Federal finan-
cial commitment, as required under this title. In rat-
ing the projects, the Secretary shall provide, in addi-
tion to the overall project rating, individual ratings 
for each of the project selection considerations. 
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(3) PRIORITY.—The Secretary shall award 
grants first for projects designated as ‘highly rec-
ommended’ and next for projects designated as ‘rec-
ommended’, in an order based upon the extent to 
which each project adheres to the project selection 
considerations applicable to the project under this 
section. 
(f) DISTRIBUTION AMONG STATES.—Not to exceed 
10 percent of the funds made available to carry out this 
title in a fiscal year may be used to make grants for 
projects located in a single State. 
SEC. 105. FUNDING AGREEMENTS. 
(a) FULL FUNDING GRANT AGREEMENTS.— 
(1) IN
GENERAL.—A project financed under 
this title shall be carried out through a full funding 
grant agreement. The Secretary shall enter into a 
full funding grant agreement based on the evalua-
tions and ratings required under section 104(e). 
(2) TERMS.—If the Secretary makes a full 
funding grant agreement with an applicant, the 
agreement shall— 
(A) establish the terms of participation by 
the United States Government in a project 
under this section; 
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(B) establish the maximum amount of 
Government financial assistance for the project; 
(C) cover the period of time for completing 
the project, including a period extending beyond 
the period of an authorization; and 
(D) make timely and efficient management 
of the project easier according to the laws of 
the United States. 
(3) AGREEMENT.—An agreement under this 
subsection obligates an amount of available budget 
authority specified in law and may include a com-
mitment, contingent on amounts to be specified in 
law in advance for commitments under this sub-
section, to obligate an additional amount from fu-
ture available budget authority specified in law. The 
agreement shall state that the contingent commit-
ment is not an obligation of the Government. Inter-
est and other financing costs of efficiently carrying 
out a part of the project within a reasonable time 
are a cost of carrying out the project under a full 
funding grant agreement, except that eligible costs 
may not be more than the cost of the most favorable 
financing terms reasonably available for the project 
at the time of borrowing. The applicant shall certify, 
in a way satisfactory to the Secretary, that the ap-
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plicant has shown reasonable diligence in seeking the 
most favorable financing terms. 
(b) AMOUNTS.—The total estimated amount of fu-
ture obligations of the Government and contingent com-
mitments to incur obligations covered by all full funding 
grant agreements may be not more than the greater of 
the amount authorized to carry out this section or an 
amount equivalent to the last 2 fiscal years of funding au-
thorized to carry out this section less an amount the Sec-
retary reasonably estimates is necessary for grants under 
this section not covered by a full funding grant agreement. 
The total amount covered by full funding grant agree-
ments may be not more than a limitation specified in law. 
SEC. 106. GRANT REQUIREMENTS. 
(a) HIGHWAY CONSTRUCTION PROJECTS.—A grant 
for the construction of a highway under this title shall be 
subject to all of the requirements of title 23, United States 
Code. 
(b) OTHER TERMS
AND CONDITIONS.—The Sec-
retary shall require that all grants under this title be sub-
ject to all 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 this title. 
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(c) GOVERNMENT’S SHARE
OF PROJECT COST.— 
Based on engineering studies, studies of economic feasi-
bility, and information on the expected use of equipment 
or facilities, the Secretary shall estimate the cost of a 
project receiving assistance under this title. A grant for 
the project shall not exceed 80 percent of the project cost. 
SEC. 107. ANNUAL REPORT. 
Not later than the first Monday in February the year 
after the date of enactment of this Act and each year 
thereafter, the Secretary shall submit to the Committees 
on Transportation and Infrastructure and Appropriations 
of the House of Representatives and the Committees on 
Commerce, Science, and Transportation and Appropria-
tions of the Senate a report that includes— 
(1) a proposal on the allocation of amounts to 
be made available to finance grants under this sec-
tion; 
(2) evaluations and ratings, as required under 
section 104(e); and 
(3) recommendations of projects for funding 
based on the evaluations and ratings and on existing 
commitments and anticipated funding levels for the 
next 3 fiscal years and for the next 10 fiscal years 
based on information currently available to the Sec-
retary. 
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SEC. 108. APPLICABILITY OF TITLE 23. 
Funds made available to carry out this title shall be 
available for obligation in the same manner as if such 
funds were apportioned under chapter 1 of title 23, United 
States Code, except that such funds shall not be transfer-
able and shall remain available until expended and the 
Federal share of the cost of a project under this section 
shall be as provided in this title. 
SEC. 109. REGULATIONS. 
Not later than 180 days after the date of enactment 
of this Act, the Secretary of Transportation shall issue 
regulations to carry out this title. 
TITLE II—FUNDING 
SEC. 201. ESTABLISHMENT OF NATIONAL FREIGHT MOBIL-
ITY INFRASTRUCTURE FUND. 
(a) ESTABLISHMENT OF THE FUND.—There is estab-
lished in the Treasury a separate account which shall be 
known as the ‘‘National Freight Mobility Infrastructure 
Fund’’ (in this section referred to as the ‘‘Fund’’). 
(b) DEPOSITS INTO THE FUND.—The account shall 
consist of amounts transferred to the Fund under section 
4286 of the Internal Revenue Code of 1986. 
(c) EXPENDITURES FROM FUND.— 
(1) IN
GENERAL.—Amounts in the account 
shall be made available to the Secretary of Trans-
portation for each of the fiscal years 2011 to 2036, 
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without further appropriation, for making expendi-
tures to meet the obligations of the United States to 
carry out this Act. 
(2) ADMINISTRATIVE
EXPENSES.—Not more 
than 4 percent of the amounts made available to the 
Secretary under this section for a fiscal year may be 
used for administrative expenses of the Secretary in 
carrying out this Act. 
SEC. 202. FREIGHT MOBILITY INFRASTRUCTURE TAX. 
(a) IMPOSITION OF TAX.—Chapter 33 of the Internal 
Revenue Code of 1986 is amended by adding after sub-
chapter C the following new subchapter: 
‘‘Subchapter D—Transportation by Freight 
Rail and Highway 
‘‘Sec. 4286. Imposition of tax. 
‘‘SEC. 4286. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—There is hereby imposed upon 
taxable ground transportation of property within the 
United States a tax equal to 1 percent of the fair market 
value of such transportation. 
‘‘(b) FAIR MARKET VALUE OF TAXABLE GROUND 
TRANSPORTATION.— 
‘‘(1) TRANSPORTATION
BY
UNRELATED
PER-
SONS.—In the case of amounts paid to an unrelated 
person engaged in the business of transporting prop-
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erty by freight rail or highway for hire, the fair mar-
ket value shall be the amount paid for transporting 
such property. 
‘‘(2) TRANSPORTATION
BY
RELATED
PER-
SONS.—In the case of transportation of property by 
the taxpayer or a person related to the taxpayer, the 
fair market value of such transportation shall be the 
amount which would be paid for transporting such 
property if such property were transported by an un-
related person, determined on an arms’ length basis. 
‘‘(c) BY WHOM PAID.— 
‘‘(1) IN
GENERAL.—Except as provided by 
paragraph (2), the tax imposed by subsection (a) 
shall be paid— 
‘‘(A) by the person making the payment 
subject to tax; or 
‘‘(B) in the case of transportation by a re-
lated person, by the person for whom such 
transportation is made. 
‘‘(2) PAYMENTS MADE OUTSIDE THE UNITED 
STATES.—If a payment subject to tax under sub-
section (a) is made outside the United States and 
the person making such payment does not pay such 
tax, such tax shall be paid by the person to whom 
the property is delivered in the United States after 
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the final segment of transportation in the United 
States. 
‘‘(3) DETERMINATIONS OF AMOUNTS PAID IN 
CERTAIN CASES.—For purposes of this section, rules 
similar to the rules of section 4271(c) shall apply. 
‘‘(d) TRANSFER OF AMOUNTS EQUIVALENT TO TAX 
TO NATIONAL FREIGHT MOBILITY INFRASTRUCTURE 
FUND.—There are hereby appropriated to the National 
Freight Mobility Infrastructure Fund amounts equivalent 
to the taxes received in the Treasury under subsection (a). 
‘‘(e) DEFINITIONS.—For purposes of this part— 
‘‘(1) TAXABLE
GROUND
TRANSPORTATION.— 
The term ‘taxable ground transportation’ means 
transportation of property by— 
‘‘(A) freight rail, or 
‘‘(B) commercial motor vehicle (as defined 
in section 31101(1) of title 49, United States 
Code) for a distance of more than 50 miles. 
‘‘(2) RELATED PERSON.—A person (hereinafter 
in this paragraph referred to as the ‘related person’) 
is related to any person if the related person bears 
a relationship to such person specified in section 
267(b) or 707(b)(1), or the related person and such 
person are engaged in trades or businesses under 
common control (within the meaning of subsections 
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(a) and (b) of section 52). For purposes of the pre-
ceding sentence, in applying section 267(b) or 
707(b)(1), ‘10 percent’ shall be substituted for ‘50 
percent’. 
‘‘(f) EXEMPTION FOR UNITED STATES AND POSSES-
SIONS
AND STATE
AND LOCAL GOVERNMENTS.—Sub-
section (a) shall not apply to the transportation of prop-
erty purchased for the exclusive use of the United States, 
or any State or political subdivision thereof. For purposes 
of the preceding sentence, the term ‘State’ includes the 
District of Columbia.’’. 
(b) CREDITS OR REFUNDS TO PERSONS WHO COL-
LECTED CERTAIN TAXES.—Section 6415 of such Code is 
amended by striking ‘‘or 4271’’ each place it appears and 
inserting ‘‘4271, or 4286’’. 
(c) REGULATIONS.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
the Treasury shall issue regulations to carry out the 
amendments made by this section. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transportation beginning on or 
after the last day of the 180-day period beginning on the 
date of the issuance of regulations under subsection (c). 
Æ 
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