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 Com-
petitive 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. CART-
WRIGHT, 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 provi-
sions 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 Pro-
gram to improve the efficiency and reliability of freight 
movement in the United States, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Multimodal 
and Sustainable Freight Infrastructure Act’’. 
SEC. 2. FREIGHT FUNDING PROGRAMS. 
(a) IN GENERAL.—Chapter 701 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 70104. Multimodal Freight Funding Formula Pro-
gram 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
shall establish a Multimodal Freight Funding Formula 
Program under which the Secretary shall distribute funds 
to States to improve the efficiency and reliability of freight 
movement in the United States. 
‘‘(b) FORMULA APPORTIONMENT.—Of funds made 
available to the Secretary for a fiscal year to carry out 
the Multimodal Freight Funding Formula Program under 
this section, the Secretary shall calculate the amount 
available to be apportioned to a State based on the fol-
lowing: 
‘‘(1) 6.25 percent in the ratio that— 
‘‘(A) the number of ports in each State; 
bears to 
‘‘(B) the number of ports in all States. 
‘‘(2) 6.25 percent in the ratio that— 
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‘‘(A) the number of rail track-miles used 
for the movement of freight in each State; bears 
to 
‘‘(B) the number of such rail track-miles in 
all States. 
‘‘(3) 6.25 percent in the ratio that— 
‘‘(A) the number of cargo-handling air-
ports in each State; bears to 
‘‘(B) the number of such airports in all 
States. 
‘‘(4) 6.25 percent in the ratio that— 
‘‘(A) the number of Interstate system 
miles in each State; bears to 
‘‘(B) the number of Interstate system 
miles in all States. 
‘‘(5) 37.5 percent in the ratio that— 
‘‘(A) the tonnage of rail, waterborne, high-
way, and airport freight moved in each State; 
bears to 
‘‘(B) the tonnage of such freight moved in 
all States. 
‘‘(6) 37.5 percent in the ratio that— 
‘‘(A) the value of rail, waterborne, highway 
and airport freight moved in each State; bears 
to 
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‘‘(B) the value of such freight moved in all 
States. 
‘‘(c) TIER I ELIGIBILITY.—The Secretary shall pro-
vide to a State in a fiscal year 40 percent of the amount 
of the funds available to the State under subsection (b) 
for that fiscal year if the State— 
‘‘(1) has an established freight advisory com-
mittee in accordance with section 70201; 
‘‘(2) developed any analyses or plans required 
for the completion of a State freight plan in accord-
ance with section 70202; 
‘‘(3) has an approved State freight plan; 
‘‘(4) has conducted a statewide analysis of 
freight needs and bottlenecks on all modes of trans-
portation, including intermodal and last mile needs; 
‘‘(5) demonstrates use of the statewide analysis 
of freight needs in prioritizing projects in the State 
freight plan; 
‘‘(6) demonstrates that the State will use the 
funding that it is provided under this paragraph for 
the highest priority projects identified in the freight 
investment plan described under section 70202; and 
‘‘(7) demonstrates that the program of projects 
will use the strategies and contribute to the goals 
described in the State freight plan to decrease— 
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‘‘(A) greenhouse gas emissions; 
‘‘(B) local air pollution, including ozone 
and ozone precursors, nitrogen oxides, sulfur di-
oxide, particulate matter, carbon monoxide, and 
lead; 
‘‘(C) water runoff and other adverse water 
impacts; and 
‘‘(D) wildlife habitat loss. 
‘‘(d) TIER II ELIGIBILITY.—The Secretary shall pro-
vide to a State in a fiscal year 60 percent of the amount 
of the funds available to the State under subsection (b) 
for that fiscal year if the State— 
‘‘(1) has met the eligibility criteria of subsection 
(c); 
‘‘(2) has conducted, in cooperation with at least 
one other State, a multistate analysis of freight 
needs and bottlenecks on all modes of transpor-
tation, including intermodal and last mile needs 
along a multistate freight corridor; and 
‘‘(3) has developed, in cooperation with at least 
one other State or a relevant entity in Canada or 
Mexico, a regional freight investment plan that fo-
cuses on the end-to-end investment needs of critical 
multistate freight corridors based on the multistate 
analysis of freight needs and bottlenecks on all 
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modes of transportation, including intermodal and 
last mile needs. 
‘‘(e) REDISTRIBUTION OF FUNDS.—The Secretary 
shall make available under the National Freight Infra-
structure Competitive Grant Program under section 
70105 any funds that— 
‘‘(1) the Secretary calculated under subsection 
(b) as available to a State for a fiscal year but did 
not provide to that State for that fiscal year under 
subsection (c) or subsection (d); or 
‘‘(2) the Secretary provided to a State under 
subsection (c) or subsection (d) but remain unobli-
gated in that State at the end of the third fiscal 
year following the fiscal year in which they were pro-
vided to the State. 
‘‘(f) ELIGIBLE USES.—A State may use funds pro-
vided under this section only for— 
‘‘(1) the development of corridor freight plans 
or regional freight plans; or 
‘‘(2) one or more phases of capital projects, 
equipment, or operational improvements on roads, 
rails, landside infrastructure on ports and airports, 
and intermodal connectors included in a State 
freight plan for projects that— 
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‘‘(A) maintain or improve the efficiency 
and reliability of freight supply chains; 
‘‘(B) demonstrate public freight benefits; 
‘‘(C) improve modal components of a mul-
timodal corridor that is critical to a State or re-
gion; 
‘‘(D) address freight needs to facilitate a 
regionally or nationally significant economic de-
velopment issue; 
‘‘(E) in accordance with the State freight 
plan, decrease— 
‘‘(i) greenhouse gas emissions; 
‘‘(ii) local air pollution, including 
ozone and ozone precursors, nitrogen ox-
ides, sulfur dioxide, particulate matter, 
carbon monoxide, and lead; 
‘‘(iii) water runoff and other adverse 
water impacts; and 
‘‘(iv) wildlife habitat loss; 
‘‘(F) are multimodal, multi-jurisdictional, 
or corridor-based and address freight needs; 
‘‘(G) relieve freight or non-freight access, 
congestion, or safety issues; or 
‘‘(H) address first and last mile connec-
tors. 
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‘‘(g) EPA REPORT.—A State that receives funds 
under this section shall collect data and, beginning 1 year 
from the date of the completion of each project or project 
phase that receives such funds, and annually thereafter 
for 15 years, report to the Secretary and the Adminis-
trator of Environmental Protection Agency on progress 
made toward greenhouse gas emission reductions and local 
air pollution reductions in accordance with the State 
freight plan. All relevant data and reporting shall be col-
lected and reported in accordance with guidance developed 
by the Administrator in consultation with the Secretary. 
‘‘(h) FEDERAL SHARE.— 
‘‘(1) IN GENERAL.—The Federal share of the 
cost of a project carried out by a State using funds 
provided under this section may not be more than 
80 percent. 
‘‘(2) ADDITIONAL FEDERAL SHARE.—The Fed-
eral share of the cost of a project carried out by a 
State using funds provided under this section may 
be increased by 5 percent if the such 5 percent is 
used for the mitigation of diesel emissions from con-
struction activities associated with the project. The 
Administrator of Environmental Protection Agency, 
in consultation with the Secretary, shall develop 
guidance for eligible equipment and activities con-
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sistent with existing State, local, and nonprofit clean 
construction guidelines. 
‘‘(i) RESERVATION OF FUNDS FOR TERRITORIES.— 
Before making a calculation under subsection (b), the Sec-
retary shall withhold funds for distribution to each terri-
tory in an amount based on the freight infrastructure need 
of the territories, as determined by the Secretary. Such 
funds shall not otherwise be made available for distribu-
tion under this section. 
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated from the Freight Trust 
Fund to carry out this section an amount equal to 50 per-
cent of the receipts of the Freight Trust Fund for each 
fiscal year beginning in fiscal year 2020. 
‘‘(k) ADMINISTRATION
AND OVERSIGHT COSTS.— 
The Secretary may retain up to one-half of 1 percent of 
the amounts available to carry out this section for each 
fiscal year for the cost of administration and oversight of 
projects funded under this section. 
‘‘(l) AVAILABILITY OF FUNDS.—Amounts authorized 
under subsection (j) shall be— 
‘‘(1) available for obligation on October 1 of the 
fiscal year for which they are authorized; and 
‘‘(2) available until expended. 
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‘‘(m) APPLICATION OF RATE REQUIREMENTS.—The 
Secretary shall take such action as may be necessary to 
apply the requirements described under section 113 of title 
23, as applicable, to any project receiving funds under this 
section. 
‘‘(n) DEFINITIONS.—In this section: 
‘‘(1) STATE.—The term ‘State’ means each of 
the 50 States, the District of Columbia, and Puerto 
Rico. 
‘‘(2) STATE FREIGHT PLAN.—The term ‘State 
freight plan’ means the State freight plan described 
under section 70202. 
‘‘(3) TERRITORY.—The term ‘territory’ has the 
meaning given such term in section 165(c)(1) of title 
23. 
‘‘§ 70105. National Freight Infrastructure Competitive 
Grant Program 
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish a National Freight Infrastructure 
Competitive Grant Program under which the Secretary 
shall make grants, on a competitive basis, to designated 
entities for eligible projects to improve the efficiency and 
reliability of freight movement in the United States. 
‘‘(b) PROJECT GOALS.—In carrying out the Program, 
the Secretary shall prioritize projects that— 
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‘‘(1) improve the efficiency and reliability of 
freight transportation; 
‘‘(2) reduce the cost of freight transportation; 
‘‘(3) improve the safety of freight transpor-
tation; 
‘‘(4) relieve bottlenecks in the freight transpor-
tation system; 
‘‘(5) improve the state of good repair of the 
freight transportation system; 
‘‘(6) contribute to the environmental goals de-
scribed in the State freight plan; and 
‘‘(7) reduce the adverse impacts of freight 
transportation on communities traversed by freight. 
‘‘(c) GRANT APPLICATIONS.—To be eligible to receive 
a grant under the Program a designated entity shall sub-
mit to the Secretary an application at such time, in such 
form, and containing such information as the Secretary 
may require. 
‘‘(d) ELIGIBLE PROJECT.—A project is eligible for a 
grant under the Program only if the Secretary determines 
that the project— 
‘‘(1) that is— 
‘‘(A) a capital investment project for a 
transportation infrastructure facility signifi-
cantly used for the movement of freight; or 
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‘‘(B) infrastructure necessary to mitigate 
the adverse impact of freight transportation on 
communities traversed by freight, including— 
‘‘(i) a road, rail, or landside air or 
water facility; 
‘‘(ii) an intermodal facility such as a 
seaport or port on the inland waterway 
system, an airport, or a highway and rail 
intermodal facility; 
‘‘(iii) a facility related to an inter-
national border crossing; 
‘‘(iv) is for an operational improve-
ment or equipment of a facility described 
in this paragraph; or 
‘‘(v) railway-roadway grade separa-
tions and related improvements; 
‘‘(2) will help to achieve the goals set out in 
subsection (b); 
‘‘(3) has non-Federal source or sources of com-
mitted financing, along with any Federal funds, suf-
ficient to complete the project; 
‘‘(4) has independent utility; 
‘‘(5) is included in the State freight plan; and 
‘‘(6) includes the development of project plans 
and analysis. 
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‘‘(e) GRANT CRITERIA.—The Secretary shall select 
eligible projects for funding based on the following cri-
teria: 
‘‘(1) The extent to which the project is likely to 
advance the goals described in subsection (b). 
‘‘(2) The likely benefits of the project relative 
to its costs. 
‘‘(3) The extent to which the project dem-
onstrates the use of innovative technology, strate-
gies, and practices. 
‘‘(4) The extent to which the project uses 
onroad construction vehicles and nonroad construc-
tion equipment that meet the emission standards of 
the Environmental Protection Agency. 
‘‘(5) The extent to which the project dem-
onstrates effective reductions (in accordance with 
the State freight plan) in— 
‘‘(A) greenhouse gas emissions; 
‘‘(B) local air pollution, including ozone 
and ozone precursors, nitrogen oxides, sulfur di-
oxide, particulate matter, carbon monoxide, and 
lead; 
‘‘(C) water runoff and other adverse water 
impacts; and 
‘‘(D) wildlife habitat loss. 
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‘‘(6) The likely effect of the project on increas-
ing United States exports. 
‘‘(7) The consistency of the project with the na-
tional freight strategic plan described under section 
70102. 
‘‘(8) The extent to which the project leverages 
Federal funds by matching State, territorial, local, 
tribal, or private funds to the Federal funding re-
quested under the Program. 
‘‘(9) The extent to which funds for the project 
are not available from other Federal sources. 
‘‘(f) SPECIAL RULE.—A minimum of 5 percent of 
funds made available under the Program for a fiscal year 
shall be provided to zero-emission freight demonstration 
projects, as defined by the Secretary of Transportation, 
in consultation with the Administrator of the Environ-
mental Protection Agency. 
‘‘(g) RETROSPECTIVE ANALYSIS.—A grant agree-
ment made under the Program shall require that the re-
cipient collect data and report to the Secretary, at an ap-
propriate time as determined by the Secretary, on— 
‘‘(1) the actual cost of constructing the project; 
‘‘(2) the time required to complete the project 
and put it into service; 
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‘‘(3) the level of usage of the facility built or 
improved by the project; 
‘‘(4) the benefits of the project, measured in a 
way that is consistent with the benefits that were es-
timated in the application for funding that was sub-
mitted to the Secretary; and 
‘‘(5) any costs resulting from the project in ad-
dition to the costs of constructing the project. 
‘‘(h) EPA REPORT.—A grant agreement made under 
the Program shall require that the recipient collect data 
and, beginning 1 year from the date of the completion of 
the project and annually thereafter for 15 years, report 
to the Secretary and the Administrator of Environmental 
Protection Agency on progress made toward greenhouse 
gas emission reductions and local air pollution reductions 
in accordance with the State freight plan. All relevant data 
and reporting shall be collected and reported in accordance 
with guidance developed by the Administrator in consulta-
tion with the Secretary. 
‘‘(i) PERIOD
OF AVAILABILITY.—In entering into 
agreements under this section, the Secretary shall ensure 
that any funds made available for a project that are not 
obligated or expended before the last day of the third fiscal 
year following the fiscal year in which the funds are made 
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available are transferred back to the Secretary for making 
grants under the Program. 
‘‘(j) REDISTRIBUTION OF FUNDS.—If a designated 
entity that received a grant under this section has made 
no obligation of funding with respect to such grant by the 
end of the third fiscal year following the fiscal year in 
which the Secretary awarded the grant, the Secretary 
shall— 
‘‘(1) withdraw the grant from the designated 
entity; and 
‘‘(2) apply the funding to another grant under 
this section. 
‘‘(k) FEDERAL SHARE.— 
‘‘(1) IN GENERAL.—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) ADDITIONAL FEDERAL SHARE.—The Fed-
eral share of the cost of a project carried out by a 
State using funds provided under this section may 
be increased by 5 percent if the such 5 percent is 
used for the mitigation of diesel emissions from con-
struction activities associated with the project. The 
Administrator of Environmental Protection Agency, 
in consultation with the Secretary, shall develop 
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guidance for eligible equipment and activities con-
sistent with existing State, local, and nonprofit clean 
construction guidelines. 
‘‘(l) ADMINISTRATION AND OVERSIGHT COSTS.—The 
Secretary may retain up to one-half of 1 percent of the 
amounts made available to carry out this section for each 
fiscal year for the cost of administration and oversight of 
projects funded under the Program. 
‘‘(m) 
AUTHORIZATION
AND
AVAILABILITY
OF 
FUNDS.— 
‘‘(1) AUTHORIZATION.—There is authorized to 
be appropriated from the Freight Trust Fund to 
carry out this section an amount equal to 50 percent 
of the receipts of the Freight Trust Fund for each 
fiscal year beginning in fiscal year 2020. 
‘‘(2) 
AVAILABILITY.—Amounts 
authorized 
under paragraph (1) shall be— 
‘‘(A) available for obligation on October 1 
of the fiscal year for which they are authorized; 
and 
‘‘(B) available for obligation until ex-
pended. 
‘‘(n) APPLICATION OF RATE REQUIREMENTS.—The 
Secretary shall take such action as may be necessary to 
apply the requirements described under section 113 of title 
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23, as applicable, to any project receiving funds under this 
section. 
‘‘(o) DEFINITIONS.—In this section: 
‘‘(1) DESIGNATED
ENTITY.—The term ‘des-
ignated entity’ means— 
‘‘(A) a State; 
‘‘(B) a unit of local government; 
‘‘(C) a metropolitan planning organization; 
‘‘(D) a public transportation authority (in-
cluding a port authority); 
‘‘(E) a tribal government; or 
‘‘(F) or a consortium of the entities de-
scribed in this paragraph. 
‘‘(2) STATE.—The term ‘State’ means any of 
the 50 States, the District of Columbia, Puerto Rico, 
American Samoa, the Commonwealth of the North-
ern Mariana Islands, Guam, and the United States 
Virgin Islands. 
‘‘(3) STATE FREIGHT PLAN.—The term ‘State 
freight plan’ means the State freight plan described 
under section 70202.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 701 of title 49, United States Code, is 
amended by adding at the end the following: 
‘‘70104. Multimodal Freight Funding Formula Program. 
‘‘70105. National Freight Infrastructure Competitive Grant Program.’’. 
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SEC. 3. NATIONAL AND STATE FREIGHT PLANS. 
(a) NATIONAL FREIGHT STRATEGIC PLAN.—Section 
70102(b) of title 49, United States Code, is amended— 
(1) in paragraph (10) by striking ‘‘and’’ at the 
end; 
(2) in paragraph (11) by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(12) best practices to reduce greenhouse gas 
emissions, local air pollution, water runoff, and wild-
life habitat loss.’’. 
(b) STATE FREIGHT ADVISORY COMMITTEES.—Sec-
tion 70201 of title 49, United States Code, is amended— 
(1) in subsection (a) by striking ‘‘representa-
tives of ports, freight railroads,’’ and all that follows 
through ‘‘local governments’’ and inserting the fol-
lowing: ‘‘representatives of— 
‘‘(1) ports; 
‘‘(2) freight railroads; 
‘‘(3) shippers; 
‘‘(4) carriers; 
‘‘(5) freight-related associations; 
‘‘(6) third-party logistics providers; 
‘‘(7) the freight industry workforce; 
‘‘(8) the transportation department of the 
State; 
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