I 
114TH CONGRESS 
1ST SESSION H. R. 3398 
To improve the condition and performance of the national multimodal freight 
network, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2015 
Mr. REICHERT (for himself, Mr. KILMER, and Ms. HERRERA BEUTLER) intro-
duced the following bill; which was referred to the Committee on Trans-
portation and Infrastructure 
A BILL 
To improve the condition and performance of the national 
multimodal freight network, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Multimodal 
Freight Policy and Investment Act’’. 
SEC. 2. NATIONAL MULTIMODAL FREIGHT POLICY. 
(a) ESTABLISHMENT.—Subtitle III of title 49, 
United States Code, is amended by inserting after chapter 
53 the following: 
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‘‘CHAPTER 54—FREIGHT 
‘‘§ 5401. Definitions 
‘‘In this chapter: 
‘‘(1) FREIGHT TRANSPORTATION MODES.—The 
term ‘freight transportation modes’ means any mode 
of transportation that moves freight, including air-
ports, highways, ports and waterways, rail, and pipe-
line. 
‘‘(2) NATIONAL
MULTIMODAL
FREIGHT
NET-
WORK.—The term ‘national multimodal freight net-
work’ means the network established under section 
5403. 
‘‘(3) NATIONAL MULTIMODAL FREIGHT STRA-
TEGIC
PLAN.—The 
term 
‘national 
multimodal 
freight strategic plan’ means the strategic plan de-
veloped under section 5404. 
‘‘(4) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Transportation. 
‘‘(5) STATE.—The term ‘State’ means a State 
of the United States, the District of Columbia, Puer-
to Rico, the Northern Mariana Islands, Guam, 
American Samoa, and the Virgin Islands. 
‘‘§ 5402. National multimodal freight policy 
‘‘(a) POLICY.—It is the policy of the United States 
to support investment in the condition and performance 
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of the national multimodal freight network to ensure the 
United States maximizes its competitiveness in the global 
economy and achieves each goal described in subsection 
(b). 
‘‘(b) GOALS.—The goals of the national multimodal 
freight policy are to enhance the economic competitiveness 
of the United States and improve quality of life— 
‘‘(1) by increasing the overall productivity and 
connectivity of the national freight system; 
‘‘(2) by improving the safety, security, and re-
siliency of freight transportation; 
‘‘(3) by reducing the congestion of freight 
transportation; 
‘‘(4) by improving the reliability of freight 
transportation; and 
‘‘(5) by reducing, eliminating, or reversing ad-
verse environmental and local community impacts of 
freight projects and freight movement in the United 
States. 
‘‘(c) STRATEGY.—The strategies that the United 
States may use to achieve the goals set forth in subsection 
(b) include— 
‘‘(1) dedicated funding to maintain and improve 
freight infrastructure facilities and operations; 
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‘‘(2) appropriate safety, environmental, energy 
and other transportation policies; 
‘‘(3) advanced technology and innovation; 
‘‘(4) workforce development; and 
‘‘(5) use of performance management. 
‘‘(d) DEFINITION
OF
ECONOMIC
COMPETITIVE-
NESS.—In this section, the term ‘economic competitive-
ness’ means the ability of the economy to more efficiently 
move freight and people, produce goods, and deliver serv-
ices, including— 
‘‘(1) reductions in the travel time of freight and 
people; 
‘‘(2) reductions in the congestion caused by the 
movement of freight and people; 
‘‘(3) improvements to travel time reliability; and 
‘‘(4) reductions in freight transportation costs 
due to congestion and insufficient infrastructure. 
‘‘§ 5403. National multimodal freight network 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a national multimodal freight network in accordance 
with this section— 
‘‘(1) to inform public and private planning; 
‘‘(2) to assist in the prioritization of Federal in-
vestment; 
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‘‘(3) to direct the use of Federal resources 
under section 5404; 
‘‘(4) to assess and support Federal investments 
to achieve the national multimodal freight policy 
goals described in section 5402(b); and 
‘‘(5) to help States define and prioritize local 
community impacts of freight movement. 
‘‘(b) 
NETWORK
COMPONENTS.—The 
national 
multimodal freight network shall consist of all connectors, 
corridors, and facilities in all freight transportation modes 
that are the most critical to the current and future move-
ment of freight to achieve the national multimodal freight 
policy goals described in section 5402(b). 
‘‘(c) DESIGNATION OF THE NATIONAL MULTIMODAL 
FREIGHT NETWORK.— 
‘‘(1) INITIAL DESIGNATION.—Not later than 3 
years after the date of enactment of the National 
Multimodal Freight Policy and Investment Act, the 
Secretary shall designate a national multimodal 
freight network— 
‘‘(A) using measurable data, including 
measurable data provided by States, to assess 
the significance of freight movement, including 
consideration of points of origin, destination, 
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and linking components of domestic and inter-
national supply chains; 
‘‘(B) improving network and intermodal 
connectivity; and 
‘‘(C) reflecting input from stakeholders, in-
cluding multimodal freight system users, trans-
port providers, metropolitan planning organiza-
tions, local governments, seaports, airports, 
railroads, and States, through a public process 
to identify critical freight facilities and cor-
ridors that are vital to achieve the national 
multimodal freight policy goals described in sec-
tion 5402(b). 
‘‘(2) 
REDESIGNATION.—Beginning 
years 
after the date of the initial designation of the na-
tional multimodal freight network under paragraph 
(1), and every 5 years thereafter, using the designa-
tion factors described in paragraph (3), the Sec-
retary shall redesignate the national multimodal 
freight network. 
‘‘(3) FACTORS.—In designating or redesig-
nating the national multimodal freight network, the 
Secretary shall consider— 
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‘‘(A) origins and destinations of freight 
movement within, to, and from the United 
States; 
‘‘(B) volume of freight, including value and 
tonnage; 
‘‘(C) population centers; 
‘‘(D) border crossings, airports, and sea-
ports; 
‘‘(E) economic factors; 
‘‘(F) freight chokepoints and other impedi-
ments contributing to significant measurable 
congestion, delay in freight movement, or ineffi-
cient modal connections; 
‘‘(G) facilities of future freight importance 
based on input from stakeholders and analysis 
of projections for future growth and changes to 
the national freight system; 
‘‘(H) impacts on all freight transportation 
modes and modes that share significant freight 
infrastructure; 
‘‘(I) elements and transportation corridors 
identified by a multi-State coalition, State, 
State advisory committee, or metropolitan plan-
ning organization using national or local data 
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as having critical freight importance to the re-
gion; and 
‘‘(J) intermodal connectors, major distribu-
tion centers, inland intermodal facilities, and 
first- and last-mile facilities. 
‘‘§ 5404. National multimodal freight strategic plan 
‘‘(a) INITIAL DEVELOPMENT.—Not later than 3 
years after the date of enactment of the National 
Multimodal Freight Policy and Investment Act, the Sec-
retary, in consultation with State departments of trans-
portation, metropolitan planning organizations, local gov-
ernments, and other appropriate public and private freight 
transportation stakeholders, shall develop, maintain, and 
post on the Department of Transportation public website 
a national multimodal freight strategic plan. 
‘‘(b) REQUIREMENTS.—The initial and each revised 
national multimodal freight strategic plan shall include— 
‘‘(1) an assessment of the current condition and 
performance of the national multimodal freight net-
work, and the ability of the network to meet the pol-
icy and goals described in section 5402; 
‘‘(2) an assessment of statutory, regulatory, 
technological, institutional, financial, and other bar-
riers to improved freight transportation perform-
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ance, including opportunities for overcoming the bar-
riers; 
‘‘(3) an analysis of emerging and long-term pro-
jected trends in economic and national trade policies, 
public health, workforce availability, and environ-
mental conditions that will impact the performance, 
needs, safety, and uses of the national transpor-
tation system to move freight; 
‘‘(4) an identification of freight chokepoints on 
the national multimodal freight network that create 
significant freight congestion problems, based on a 
quantitative methodology developed by the Secretary 
and using the analysis under paragraph (3); 
‘‘(5) an identification of major international 
and domestic trade gateways and corridors that con-
nect major population centers and ports of entry; 
‘‘(6) a projection of current and forecasted traf-
fic and freight volumes on the gateways and cor-
ridors identified under paragraph (5); 
‘‘(7) an identification of major agricultural and 
energy rural production areas and other major in-
land freight generators; 
‘‘(8) an identification of the gateways and cor-
ridors that connect the major inland freight genera-
tors identified in paragraph (7) to ports of entry; 
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‘‘(9) the best practices for improving the oper-
ational and safety performance of the national 
multimodal freight network; 
‘‘(10) the best practices to reduce, minimize, 
and mitigate the environmental and other impacts of 
freight movement on communities; 
‘‘(11) a process for addressing multistate 
projects and encouraging jurisdictions to collaborate; 
‘‘(12) strategies to improve freight intermodal 
connectivity, including bulk transloading facilities; 
‘‘(13) the development of more consistent and 
accurate data to measure freight movement domesti-
cally and internationally; and 
‘‘(14) the identification of federally designated 
strategic 
defense 
ports 
and 
nearby 
freight 
chokepoints that create significant congestion which 
could hamper the flow of military equipment and 
personnel to those ports. 
‘‘(c) UPDATES.— 
‘‘(1) IN
GENERAL.—Not later than 5 years 
after the date the initial national multimodal freight 
strategic plan under subsection (a) is complete, and 
every 10 years thereafter, the Secretary shall update 
and repost on the Department of Transportation 
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public website a revised national multimodal freight 
strategic plan. 
‘‘(2) MAJOR
INTERNATIONAL
AND
DOMESTIC 
TRADE GATEWAYS AND CORRIDORS.—The identifica-
tion of major international and domestic trade gate-
ways and corridors that connect major population 
centers and ports of entry under subsection (b)(5) 
shall be updated, as appropriate, in each revised na-
tional multimodal freight strategic plan. 
‘‘§ 5405. National multimodal freight advisory com-
mittee 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a national multimodal freight advisory committee in 
the Department of Transportation consisting of a bal-
anced cross-section of public and private freight stake-
holders representative of all freight transportation modes, 
including— 
‘‘(1) airports, highways, ports and waterways, 
rail, and pipeline; 
‘‘(2) shippers; 
‘‘(3) carriers; 
‘‘(4) freight-related associations; 
‘‘(5) the freight industry workforce; 
‘‘(6) State departments of transportation; 
‘‘(7) local governments; 
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‘‘(8) metropolitan planning organizations; 
‘‘(9) regional or local transportation authorities, 
such as port authorities; 
‘‘(10) freight safety organizations; and 
‘‘(11) university research centers. 
‘‘(b) PURPOSE.—The purpose of the committee is to 
help promote a safe, economically efficient, and environ-
mentally sustainable national freight system. 
‘‘(c) DUTIES.—The committee, in consultation with 
State departments of transportation and metropolitan 
planning organizations, shall provide advice and rec-
ommendations to the Secretary on matters related to 
freight transportation in the United States, including— 
‘‘(1) the implementation of freight transpor-
tation requirements; 
‘‘(2) the establishment of a national multimodal 
freight network under section 5403; 
‘‘(3) 
the 
development 
of 
the 
national 
multimodal freight strategic plan under section 
5404; 
‘‘(4) the development of measures of conditions 
and performance in freight transportation; 
‘‘(5) the development of freight transportation 
investment, data, and planning tools; and 
‘‘(6) recommendations for Federal legislation. 
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‘‘(d) QUALIFICATIONS.—Each member of the com-
mittee shall have qualifications sufficient to represent the 
interests of the member’s specific stakeholder group, such 
as— 
‘‘(1) general business and financial experience; 
‘‘(2) experience or qualifications in the areas of 
freight transportation and logistics; 
‘‘(3) experience in transportation planning, 
safety, technology, or workforce issues; 
‘‘(4) experience representing employees of the 
freight industry; 
‘‘(5) experience representing State or local gov-
ernments or metropolitan planning organizations in 
transportation-related issues; or 
‘‘(6) experience in trade economics relating to 
freight flows. 
‘‘(e) SUPPORT STAFF, INFORMATION, AND SERV-
ICES.—The Secretary shall provide support staff for the 
committee. On request of the committee, the Secretary 
shall provide information, administrative services, and 
supplies that the Secretary considers necessary for the 
committee to carry out its duties. 
‘‘(f) NONAPPLICATION OF FACA.—Section 14 of the 
Federal Advisory Committee Act (5 App. U.S.C.) does not 
apply to the committee. 
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‘‘§ 5406. State freight plans 
‘‘(a) IN GENERAL.—Each State that receives a grant 
under this chapter shall develop a freight plan that pro-
vides a comprehensive plan for the immediate and long- 
range planning activities and investments of the State 
with respect to freight. 
‘‘(b) CONTENTS.—Each State freight plan shall in-
clude— 
‘‘(1) an identification of significant freight sys-
tem trends, needs, and issues with respect to the 
State and each neighboring State with which high 
levels of trade occurs or logistical dependence exists; 
‘‘(2) a description of the freight policies, strate-
gies, and performance measures that will guide the 
freight-related transportation investment decisions of 
the State to achieve a reasonable balance in freight 
transportation modes; 
‘‘(3) a description of how the plan will improve 
the ability of the State to meet the goals of the na-
tional multimodal freight policy described in section 
5402(b) and any relevant State multimodal freight 
policy; 
‘‘(4) evidence that the State will consider inno-
vative technologies and operational strategies, in-
cluding intelligent transportation systems, that im-
prove the safety and efficiency of freight movement 
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and provide multimodal transportation systems inte-
gration for information sharing; 
‘‘(5) in the case of routes on public infrastruc-
ture on which heavy vehicles travel (including min-
ing, agricultural, energy cargo or equipment, and 
timber vehicles) or other conditions exist that are 
projected to substantially deteriorate the condition of 
those routes, a description of improvements that 
may be required to reduce or impede the deteriora-
tion, including the use of alternate freight transpor-
tation modes; 
‘‘(6) an inventory of facilities and corridors 
with freight mobility or accessibility issues, such 
freight chokepoints, within the State, and a descrip-
tion of the strategies the State will employ to ad-
dress those freight mobility or accessibility issues; 
‘‘(7) consideration of any significant congestion 
or delay caused by freight movements and any strat-
egies to mitigate that congestion or delay; and 
‘‘(8) a priority freight investment plan that in-
cludes a list of priority projects, a methodology to 
prioritize future projects, and an explanation of how 
those investments achieve the goals of the national 
multimodal freight policy described in section 
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5402(b) and any relevant State multimodal freight 
policy. 
‘‘(c) RELATIONSHIP
TO
STATEWIDE
STRATEGIC 
LONG-RANGE TRANSPORTATION PLAN.— 
‘‘(1) IN GENERAL.—A State may develop its 
State freight plan with, and incorporate the plan 
into, its statewide strategic long-range transpor-
tation plan. The State freight plan may be separate 
from the long-range transportation plan, but shall be 
consistent with the long-range transportation plan. 
The State freight plan shall be consistent with the 
State rail plan under section 22702 for that State. 
‘‘(2) 
FISCAL
CONSTRAINTS.—The 
priority 
freight investment plan of a State freight plan under 
subsection (b)(8) shall include a project, or an iden-
tified phase of a project, only if funding for comple-
tion of the project can reasonably be anticipated to 
be available for the project within the time period 
identified in the priority freight investment plan. 
‘‘(3) PLANNING
PERIOD.—Each State freight 
plan shall address a 10-year forecast period. 
‘‘(4) UPDATES.— 
‘‘(A) IN GENERAL.—A State shall update 
its State freight plan as frequently as the State 
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determines necessary, but not less frequently 
than once every 10 years. 
‘‘(B) PRIORITY
FREIGHT
INVESTMENT 
PLAN.—A State shall update its priority freight 
investment plan as frequently as the State de-
termines necessary, but at least once every 5 
years. 
‘‘(d) CONSULTATION.—Each State shall consult with 
applicable Federal, State, and local agencies relevant to 
land use and programming processes when developing a 
State freight plan under this section, including the State’s 
freight advisory committee under section 5407. 
‘‘§ 5407. State freight advisory committees 
‘‘(a) ESTABLISHMENT.—As a condition of, and prior 
to, receiving a grant under this chapter, a State shall es-
tablish and maintain a freight advisory committee con-
sisting of a balanced cross-section of public and private 
freight stakeholders representative of all freight transpor-
tation modes, including— 
‘‘(1) as applicable, airports, highways, ports 
and waterways, rail, and pipeline; 
‘‘(2) shippers; 
‘‘(3) carriers; 
‘‘(4) freight-related associations; 
‘‘(5) the freight industry workforce; 
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‘‘(6) the State department of transportation; 
‘‘(7) local governments; 
‘‘(8) metropolitan planning organizations; 
‘‘(9) local transportation authorities, such as 
port authorities; 
‘‘(10) freight safety organizations; and 
‘‘(11) university research centers. 
‘‘(b) QUALIFICATIONS.—Each member of the advi-
sory committee shall have qualifications sufficient to rep-
resent the interests of the member’s specific stakeholder 
group, such as— 
‘‘(1) general business and financial experience; 
‘‘(2) experience or qualifications in the areas of 
freight transportation and logistics; 
‘‘(3) experience in transportation planning, 
safety, or workforce issues; 
‘‘(4) experience representing employees of the 
freight industry; 
‘‘(5) experience representing State or local gov-
ernments, or metropolitan planning organizations in 
transportation-related issues; or 
‘‘(6) experience in trade economics relating to 
freight flows. 
‘‘(c) DUTIES.—A freight advisory committee of a 
State described in subsection (a) shall— 
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‘‘(1) advise the State on freight-related prior-
ities, issues, projects, and funding needs; 
‘‘(2) serve as a forum for discussion for State 
transportation decisions affecting freight movement; 
‘‘(3) communicate and coordinate regional pri-
orities with other freight-related organizations; 
‘‘(4) promote the sharing of information be-
tween the private and public sectors on freight 
issues; and 
‘‘(5) participate in the development of the State 
freight plan under section 5406, including advising 
on the development of a priority freight investment 
plan under subsection (b)(8) of that section. 
‘‘§ 5408. Conditions and performance reports 
‘‘(a) IN GENERAL.—Not later than 3 years after the 
date of enactment of the National Multimodal Freight 
Policy and Investment Act, and biennially thereafter, the 
Secretary shall prepare and submit to Congress a report 
that describes the conditions and performance of the na-
tional multimodal freight network. 
‘‘(b) CONTENTS.—The report shall contain, at a min-
imum, the following— 
‘‘(1) an assessment of the ability, including the 
current performance, of the national multimodal 
freight network to make significant progress toward 
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and achieve the policy and goals described in section 
5402; and 
‘‘(2) a description of impediments to improving 
the conditions and performance of the national 
multimodal freight network. 
‘‘§ 5409. Transportation investment data and plan-
ning tools 
‘‘(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of National Multimodal Freight Policy 
and Investment Act, the Secretary shall begin to develop 
new tools, and improve existing tools, to support an out-
come-oriented, performance-based approach by Federal, 
State, local, and private decisionmakers when evaluating 
proposed freight-related and other transportation projects, 
including— 
‘‘(1) methodologies for systematic analysis of 
benefits and costs on a national, regional, and local 
basis; 
‘‘(2) tools for ensuring that the evaluation of 
freight-related and other transportation projects 
would consider safety, economic competitiveness, en-
vironmental sustainability, innovation, and system 
condition in the project selection process; 
‘‘(3) improved methods for data collection and 
trend analysis; 
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‘‘(4) freight forecasting models; and 
‘‘(5) other tools to assist in effective freight 
transportation planning. 
‘‘(b) FREIGHT DATA.—In support of the tools de-
scribed in subsection (a), and to support a broad range 
of evaluation methods to assist Federal, State, local, and 
private decisionmakers in making transportation invest-
ment decisions, the Secretary shall— 
‘‘(1) direct the collection of appropriate freight 
data and supply chain data, including more con-
sistent and accurate data to measure the condition 
and performance of the national multimodal freight 
network; and 
‘‘(2) consider any improvements to existing 
freight data collection, including the Commodity 
Flow Survey and Freight Analysis Framework, that 
could reduce identified freight data deficiencies and 
improve forecasts of freight transportation demand, 
both domestic and international. 
‘‘(c) CONSULTATION.—The Secretary shall consult 
with Federal, State, and other public and private freight 
transportation stakeholders to develop, improve, and im-
plement the tools described in subsection (a) and collect 
the freight data and supply chain data described in sub-
section (b). 
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‘‘(d) MULTIMODAL FREIGHT PERFORMANCE MEAS-
URES.—The Secretary shall establish freight performance 
measures to develop a framework for assessing the de-
mand, efficiency, condition, safety, and investment in the 
national multimodal freight network. 
‘‘§ 5410. Freight investment grant program 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE APPLICANT.—The term ‘eligible 
applicant’ means— 
‘‘(A) a State; 
‘‘(B) a political subdivision of a State; 
‘‘(C) a metropolitan planning organization; 
‘‘(D) a regional or local transportation au-
thority, including a port authority; 
‘‘(E) a tribal government or a consortium 
of tribal governments; or 
‘‘(F) 2 or more of the entities described in 
subparagraphs (A) through (E). 
‘‘(2) ELIGIBLE
PROJECT.—The term ‘eligible 
project’ means a capital investment in a project, or 
a project phase with independent utility, for— 
‘‘(A) a transportation infrastructure facil-
ity; or 
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‘‘(B) an intelligent transportation system 
project primarily for freight benefit that re-
duces congestion or improves safety. 
‘‘(3) FACILITY.—The term ‘facility’ includes— 
‘‘(A) a road facility; 
‘‘(B) a rail facility; 
‘‘(C) a marine highway facility; 
‘‘(D) a maritime, land border, or inland 
port facility; 
‘‘(E) a freight intermodal facility, includ-
ing an intermodal facility serving a seaport, an 
intermodal or cargo access facility serving an 
airport, an intermodal facility serving a port on 
the inland waterways, a bulk intermodal/ 
transload facility, or a road/rail intermodal fa-
cility; or 
‘‘(F) a facility related to an international 
border crossing. 
‘‘(4) MARINE
HIGHWAY.—The term ‘marine 
highway’ means all of the marine transportation 
routes designated by the Secretary that— 
‘‘(A) serve as extensions of the surface 
transportation system; and 
‘‘(B) promote short sea transportation. 
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‘‘(5) TRANSPORTATION
INFRASTRUCTURE
FA-
CILITY.—The term ‘transportation infrastructure fa-
cility’ means a facility that is significantly used for 
the movement of freight. 
‘‘(b) ESTABLISHMENT.—The Secretary shall estab-
lish and implement a freight investment grant program 
in accordance with the policy, goals, and strategies de-
scribed in section 5402. 
‘‘(c) APPLICATIONS.— 
‘‘(1) IN GENERAL.—An eligible applicant shall 
submit to the Secretary an application in such form 
and in accordance with such requirements as the 
Secretary shall establish. 
‘‘(2) GROUPS OF ENTITIES.—A group described 
in subsection (a)(1)(F) shall submit an application 
through a lead applicant that qualifies under sub-
paragraph (A), (B), (C), (D) or (E) of subsection 
(a)(1). Public-private partnerships are eligible if the 
lead applicant qualifies under subparagraph (A), 
(B), (C), (D), or (E) of subsection (a)(1). 
‘‘(d) CRITERIA
FOR SELECTION.—The Secretary 
shall select eligible projects for funding based on the fol-
lowing criteria: 
‘‘(1) The eligible project will help achieve the 
goals and strategies described in section 5402. 
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‘‘(2) Funding committed by State and local 
governments and other public and private partners, 
along with the Federal funding requested, will be 
sufficient to complete the capital investment. 
‘‘(3) The extent to which the eligible project 
leverages Federal funds by securing commitments of 
State, local, tribal, or private funds in addition to 
the Federal funding requested under this section. 
‘‘(4) The likely benefits of the eligible project 
relative to its costs. 
‘‘(5) The extent to which the eligible project 
demonstrates the use of innovative technology, strat-
egies, and practices or involves collaboration among 
States or political subdivisions. 
‘‘(6) The likely effect of the eligible project to 
support the movement of freight internationally or 
to efficiently move freight and people interstate or 
intrastate. 
‘‘(7) The eligible project’s support of freight op-
erations in a nationally significant place, as deter-
mined by the Secretary. 
‘‘(8) The consistency of the eligible project with 
the national multimodal freight strategic plan devel-
oped under section 5404. 
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‘‘(9) Inclusion of the eligible project in a State 
freight plan under section 5406 or, if the State 
freight plan is not complete, a regional transpor-
tation plan. 
‘‘(10) The extent to which the eligible project 
will reduce the adverse impacts of freight transpor-
tation on a local community. 
‘‘(11) The ability of the eligible project to in-
crease throughput and reduce congestion at freight 
chokepoints. 
‘‘(e) FEDERAL SHARE.—The Federal share for a 
project funded under this section shall not exceed— 
‘‘(1) 80 percent of the total capital cost of the 
eligible project; or 
‘‘(2) $50,000,000. 
‘‘(f) GRANT ANALYSIS.—A grant agreement under 
this section between the Federal Government and a grant-
ee shall specify that the grantee will collect data and re-
port to the Secretary, at such times as the Secretary speci-
fies, on— 
‘‘(1) the actual cost of constructing the eligible 
project; 
‘‘(2) the time required to complete and imple-
ment the eligible project; 
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‘‘(3) the level of usage of the transportation in-
frastructure facility built or improved by the eligible 
project; 
‘‘(4) the benefits of the eligible project, meas-
ured in a way that is consistent with the benefits 
that were estimated in the application under sub-
section (c); and 
‘‘(5) any costs resulting from the eligible 
project in addition to the projected costs estimated 
in the application under subsection (c). 
‘‘(g) TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions of a grant 
under this section as the Secretary considers necessary. 
‘‘(h) ADMINISTRATION.—For the purpose of admin-
istering a grant under this section, funds authorized for 
this section may be transferred within the Department of 
Transportation and administered in accordance with this 
title or title 23, as applicable, and any other laws applica-
ble to the eligible project. 
‘‘(i) ADMINISTRATIVE AND OVERSIGHT COSTS.— 
‘‘(1) IN GENERAL.—The Secretary may retain 
up to one-half of 1 percent of the amounts author-
ized for each fiscal year under this section for— 
‘‘(A) administration of the freight invest-
ment grant program; and 
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‘‘(B) oversight of eligible projects funded 
under this section. 
‘‘(2) ADMINISTRATION EXPENSES.—In order to 
carry out the administration and oversight of grants 
under this section, the Secretary may transfer por-
tions of the funds retained under this subsection 
to— 
‘‘(A) the Administrator of the Federal 
Highway Administration; 
‘‘(B) the Administrator of the Federal 
Railroad Administration; 
‘‘(C) the Administrator of the Federal 
Aviation Administration; 
‘‘(D) the Administrator of the Federal 
Maritime Administration; 
‘‘(E) the Assistant Secretary for Research 
and Technology; and 
‘‘(F) the Assistant Secretary of Freight 
Planning, Permitting, and Development. 
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated to carry out this section— 
‘‘(A) $2,000,000,000 for fiscal year 2016; 
‘‘(B) $2,000,000,000 for fiscal year 2017; 
‘‘(C) $2,000,000,000 for fiscal year 2018; 
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‘‘(D) $2,000,000,000 for fiscal year 2019; 
‘‘(E) $2,000,000,000 for fiscal year 2020; 
and 
‘‘(F) $2,000,000,000 for fiscal year 2021. 
‘‘(2) ADMINISTRATION OF FUNDS.—The funds 
appropriated for this program shall be available for 
obligation until expended.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
The table of contents for subtitle III of title 49, United 
States Code, is amended by adding after the item relating 
to section 5340 the following: 
‘‘CHAPTER 54. FREIGHT. 
‘‘5401. Definitions. 
‘‘5402. National multimodal freight policy. 
‘‘5403. National multimodal freight network. 
‘‘5404. National multimodal freight strategic plan. 
‘‘5405. National multimodal freight advisory committee. 
‘‘5406. State freight plans. 
‘‘5407. State freight advisory committees. 
‘‘5408. Conditions and performance reports. 
‘‘5409. Transportation investment date and planning tools. 
‘‘5410. Freight investment grant program.’’. 
SEC. 3. OFFICE OF FREIGHT PLANNING, PERMITTING, AND 
DEVELOPMENT. 
(a) IN GENERAL.—Section 102 of title 49, United 
States Code, is amended— 
(1) by redesignating subsection (h) as sub-
section (i); and 
(2) by inserting after subsection (g) the fol-
lowing: 
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‘‘(h) OFFICE OF FREIGHT PLANNING, PERMITTING, 
AND DEVELOPMENT.— 
‘‘(1) ESTABLISHMENT.—There is established, 
in the Office of the Secretary, an Office of Freight 
Planning, Permitting, and Development (referred to 
in this subsection as the ‘Office’). 
‘‘(2) RESPONSIBILITIES.—The Office shall— 
‘‘(A) coordinate the investment of Federal 
funding to improve the efficiency of the national 
multimodal freight network (as defined in sec-
tion 5401) to move freight in accordance with 
the policy, goals, and strategies described in 
section 5402; 
‘‘(B) for projects that involve multiple 
Federal agencies, designate a lead Federal 
agency or a modal administrator within the De-
partment of Transportation— 
‘‘(i) to serve as the primary point of 
contact; and 
‘‘(ii) to actively monitor and identify 
the progress of the permitting process; 
‘‘(C) establish a process to give priority 
consideration to the freight projects receiving 
freight investment grants under section 5410 
when— 
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‘‘(i) coordinating and facilitating the 
permit review process; and 
‘‘(ii) advancing project delivery objec-
tives if there is duplication of processes; 
‘‘(D) facilitate communication among gov-
ernment, public, and private freight transpor-
tation stakeholders; 
‘‘(E) support the Secretary in the develop-
ment of the national multimodal freight stra-
tegic plan (as defined in section 5401); 
‘‘(F) provide guidance or best practices on 
the development of the State freight plans 
under section 5406; and 
‘‘(G) carry out other duties, as prescribed 
by the Secretary. 
‘‘(3) ORGANIZATION.—The Office shall— 
‘‘(A) be headed by the Assistant Secretary 
of Freight Planning, Permitting, and Develop-
ment; 
‘‘(B) be structured out of existing re-
sources and funding within the Department of 
Transportation, to the extent feasible; and 
‘‘(C) serve to consolidate freight staffing 
from all modal administrations to improve col-
laboration between freight transportation modes 
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(as defined in section 5401), especially in per-
mitting oversight, and otherwise support the ef-
ficiency of the national multimodal freight net-
work.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) 
ASSISTANT
SECRETARIES.—Section 
102(e)(1) of title 49, United States Code, is amend-
ed— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘5’’ and inserting ‘‘6’’; 
(B) in subparagraph (C), by striking ‘‘; 
and’’ and inserting a semicolon; 
(C) by redesignating subparagraph (D) as 
subparagraph (E); and 
(D) by inserting after subparagraph (C) 
the following: 
‘‘(D) an Assistant Secretary of Freight 
Planning, Permitting, and Development, who 
shall be appointed by the Secretary, with the 
approval of the President; and’’. 
(2) EXECUTIVE SCHEDULE PAY RATES.—Sec-
tion 5316 of title 5, United States Code, is amended 
by inserting ‘‘Assistant Secretary of Freight Plan-
ning, Permitting, and Development, Department of 
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Transportation.’’ after ‘‘Assistant Secretary for Ad-
ministration, Department of Transportation.’’. 
SEC. 4. CAPITAL GRANTS FOR SHORTLINE FREIGHT RAIL-
ROAD STATE OF GOOD REPAIR. 
(a) DEFINITIONS.—In this section: 
(1) CAPITAL
PROJECT.—The term ‘‘capital 
project’’ means acquiring, constructing, improving, 
or inspecting shortline or regional railroad infra-
structure, such as equipment, track and track struc-
tures, or a facility, including— 
(A) bringing that infrastructure to a state 
of good repair; 
(B) bond costs and other costs relating to 
the issuance of bonds or other debt financing 
instruments; 
(C) evaluating and assessing project imple-
mentation and outcomes; 
(D) expenses incidental to the activities de-
scribed in subparagraph (C), including design-
ing, engineering, location surveying, mapping, 
and environmental studies; 
(E) installing, restoring, and rehabilitating 
track; 
(F) preserving and acquiring rights-of-way; 
(G) relocation assistance, including— 
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(i) acquiring replacement housing 
sites, and acquiring, constructing, relo-
cating, 
and 
rehabilitating 
replacement 
housing; and 
(ii) the lateral relocation of any por-
tion of a rail line; 
(H) eliminating obstacles and relocating 
utilities; 
(I) payments for the maintenance responsi-
bility of rail trackage rights agreements; 
(J) mitigating adverse impacts on safety, 
motor vehicle traffic flow, quality of life, envi-
ronment, or economic development; 
(K) highway-rail grade crossing improve-
ments, including the safety of and elimination 
of hazards at a highway-rail grade crossing; 
(L) communication and signalization im-
provements; 
(M) subsidy and administrative costs of 
projects eligible for Federal credit assistance 
under the Railroad Revitalization and Regu-
latory Reform Act of 1976 (45 U.S.C. 801 et 
seq.) for a capital project to improve shortline 
or regional railroad infrastructure; 
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(N) improving or replacing locomotives op-
erated by a shortline or regional railroad; 
(O) on-dock or near-dock projects at sea-
ports; 
(P) resolving critical freight chokepoints 
and addressing capacity constraints; and 
(Q) such other construction, improvement 
or inspection-related activities as determined 
appropriate by the Secretary. 
(2) ELIGIBLE RECIPIENT.—The term ‘‘eligible 
recipient’’ means— 
(A) a State; 
(B) a political subdivision of a State; 
(C) a metropolitan planning organization; 
(D) a regional or local transportation au-
thority, including a port authority; 
(E) a tribal government or a consortium of 
tribal governments; 
(F) a public entity responsible for pro-
viding rail freight transportation service; 
(G) solely for the purpose of constructing 
a rail connection between a plant or facility and 
a rail carrier, a limited option freight shipper 
that owns or operates a plant or facility; 
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(H) 2 or more of the entities described in 
subparagraphs (A) through (G); and 
(I) if the capital project is a public-private 
partnership with 1 or more of the entities de-
scribed in subparagraphs (A) through (H), a 
shortline or regional railroad or a holding com-
pany of a shortline or regional railroad. 
(3) RAILROAD CARRIER.—The term ‘‘railroad 
carrier’’ has the meaning given the term in section 
20102 of title 49, United States Code. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Transportation. 
(5) SHORTLINE OR REGIONAL RAILROAD.—The 
term ‘‘shortline or regional railroad’’ means a rail-
road carrier that has annual carrier operating reve-
nues that meet the threshold amount for Class II 
carriers or Class III carriers, as determined by the 
Surface 
Transportation 
Board 
under 
section 
1201.1–1 of title 49, Code of Federal Regulations, 
on which not less than 80 percent of the volume of 
rail traffic is freight traffic. 
(6) STATE OF GOOD REPAIR.—The term ‘‘state 
of good repair’’ means a condition in which the ex-
isting physical assets, both individually and as a sys-
tem, are functioning as designed within their useful 
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lives and are sustained through regular maintenance 
and replacement programs. 
(b) GRANTS AUTHORIZED.— 
(1) IN GENERAL.—The Secretary shall establish 
a competitive grant program to provide financial as-
sistance to eligible recipients for capital projects 
that— 
(A) help accomplish the goals of a State 
rail plan under section 22702 of title 49, 
United States Code, or, if a State freight plan 
under section 5406 of that title is complete, the 
goals of the State freight plan; and 
(B) either— 
(i) improve shortline or regional rail-
road infrastructure by improving the effi-
cient and safe movement of freight; or 
(ii) mitigate the adverse impacts of 
shortline or regional railroad infrastructure 
or operations on a local community. 
(2) ELIGIBILITY AND CONSIDERATIONS FOR AP-
PROVAL.—In determining whether to award a grant 
to an eligible recipient under this section, the Sec-
retary shall consider the following, listed by priority: 
(A) The extent to which a capital project— 
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(i) will contribute to the efficient 
movement of freight, including multimodal 
freight; 
(ii) will benefit the efficient movement 
of freight at or accessing a port, or agri-
cultural or manufacturing cluster; 
(iii) will contribute to increasing the 
economic competitiveness and state of good 
repair of a shortline or regional railroad; 
(iv) will alleviate the impacts of a 
shortline or regional railroad’s operations 
on local communities, including impacts on 
safety, motor vehicle traffic flow, commu-
nity quality of life, environment, or eco-
nomic development; 
(v) will enhance safety; 
(vi) is not capable of being fully fund-
ed without Federal grant funding; 
(vii) complies with the limitation re-
lating to the allocation of grant funds set 
forth in subsection (c); 
(viii) will contribute to the equitable 
treatment of the various regions of the 
United States; 
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(ix) includes equitable participation 
from other beneficiaries in the project’s fi-
nancing, including the extent to which the 
project will leverage financial contributions 
or commitments from private entities in-
volved with the project in proportion to the 
expected benefits that accrue to such enti-
ties from the project; 
(x) is compatible with local land use, 
economic development, and transportation 
plans and objectives; and 
(xi) will increase the reliability and re-
silience of the Nation’s multimodal freight 
system. 
(B) The past performance of the eligible 
recipient and other beneficiaries of the capital 
project in developing and delivering 1 or more 
capital projects. 
(C) Such other factors as the Secretary 
considers relevant. 
(c) ALLOCATION LIMITATION.—Not less than 50 per-
cent of all grant funds awarded under this section out of 
funds appropriated for a fiscal year shall be provided to 
publicly owned shortline railroads. 
(d) PROJECT COST SHARING.— 
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(1) BASIS.—The Secretary shall estimate the 
total cost of each eligible project based on— 
(A) engineering studies; 
(B) studies of economic feasibility; 
(C) environmental analyses; and 
(D) information on the expected use of the 
shortline or regional railroad infrastructure, 
such as equipment, track, track structure, or 
facility. 
(2) FEDERAL SHARE.—A Federal grant for an 
eligible project under this section may not exceed— 
(A) 90 percent of the total capital cost of 
the eligible project; or 
(B) $6,000,000. 
(3) NON-FEDERAL SHARE.— 
(A) IN
GENERAL.—An eligible recipient 
shall pay, or arrange for the payment from non- 
Federal sources, including financing, not less 
than 10 percent of the shared costs of an eligi-
ble project that is funded in part by a grant 
awarded under this section. 
(B) FORMS
OF
CONTRIBUTIONS.—The 
shared costs under subparagraph (A) may be 
paid in cash or in-kind contributions. 
(C) IN-KIND CONTRIBUTIONS.— 
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(i) IN
GENERAL.—The non-Federal 
in-kind contributions under subparagraph 
(B) may consist of— 
(I) real property; 
(II) tangible personal property; 
(III) services of employees of the 
eligible 
recipient 
or 
non-Federal 
source; and 
(IV) payments made by an eligi-
ble recipient or other non-Federal 
source for costs incurred for the eligi-
ble project before the filing of an ap-
plication for a grant under this sec-
tion, and any in-kind contributions 
that were made for the project before 
the filing of the application, to the ex-
tent that such costs were incurred or 
in-kind contributions were made to 
comply with a legal requirement nec-
essary to carry out the eligible project. 
(ii) CALCULATIONS.—The value of an 
in-kind contribution under clause (i)(III) 
shall be calculated— 
(I) by including the costs in-
curred by the eligible recipient or 
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other non-Federal source for the pay 
and benefits of an employee described 
in clause (i)(III); and 
(II) by excluding any overhead or 
general administrative costs. 
(e) REPORTING REQUIREMENT.—As part of the 
grant application process, each eligible recipient shall sub-
mit a description of the anticipated public and private ben-
efits (as those terms are defined in section 22701 of title 
49, United States Code) associated with the eligible 
project. 
(f) AGREEMENTS TO COMBINE AMOUNTS.—Two or 
more eligible recipients may agree to combine any part 
of the amounts provided through grants for an eligible 
project under this section if— 
(1) the eligible project will benefit each eligible 
recipient entering into the agreement; and 
(2) the agreement does not violate any Federal 
law or any law of any State in which an eligible re-
cipient is located. 
(g) STATE COOPERATION.—The Secretary shall en-
courage each shortline or regional railroad applicant for 
a grant under this section to utilize the expertise and as-
sistance of 1 or more State transportation agencies in ap-
plying for and administering the grant. The Secretary 
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shall encourage each applicable State transportation agen-
cy to provide its expertise and assistance to the shortline 
or regional railroad. 
(h) RULEMAKING.—Not later than July 1, 2016, the 
Secretary shall issue final regulations for implementing 
the grant program authorized under this section. 
(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this section $50,000,000 for each of fiscal years 2016 
through 2021. 
SEC. 
5. 
CAPITAL 
GRANTS 
FOR 
GRADE 
SEPARATION 
PROJECTS. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE APPLICANT.—The term ‘‘eligible 
applicant’’ means— 
(A) a State; 
(B) a political subdivision of a State; 
(C) a metropolitan planning organization; 
(D) a regional or local transportation au-
thority, including a port authority; 
(E) a tribal government or a consortium of 
tribal governments; or 
(F) 2 or more of the entities described in 
subparagraphs (A) through (E). 
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(2) HIGHWAY-RAIL VERTICAL GRADE SEPARA-
TION
PROJECT.—The term ‘‘highway-rail vertical 
grade separation project’’ means a project that sepa-
rates the grade of a road-rail crossing to eliminate 
the conflict between those freight transportation 
modes. 
(3) HOST
RAILROAD.—The term ‘‘host rail-
road’’ means— 
(A) a Class I railroad, Class II railroad, or 
Class III railroad (as defined in section 20102 
of title 49, United States Code); and 
(B) the public or private owner of rail in-
frastructure over which a Class I railroad, Class 
II railroad, or Class III railroad operates. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Transportation. 
(b) GRANTS AUTHORIZED.—The Secretary shall es-
tablish a competitive capital grant program to provide fi-
nancial assistance to eligible applicants for highway-rail 
vertical grade separation projects intended to reduce high-
way and rail congestion and improve safety. 
(c) ELIGIBLE PROJECTS.—An eligible applicant may 
apply for a grant under this section for the purpose of— 
(1) constructing a highway-rail vertical grade 
separation project; or 
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(2) planning, preparing, or designing a project 
described in paragraph (1). 
(d) PROJECT SELECTION CRITERIA.—In determining 
whether to award a grant to an eligible applicant under 
this section, the Secretary shall consider the following fac-
tors, listed by priority: 
(1) Whether the highway-rail vertical grade sep-
aration project will cost-effectively reduce national, 
regional, or local truck and rail freight network 
delays. 
(2) The extent to which the highway-rail 
vertical grade separation project includes equitable 
financial participation from other beneficiaries of the 
project, including the extent to which the project will 
leverage financial contributions or commitments 
from private entities involved with the project in pro-
portion with or greater to the proportion of the ex-
pected benefits that accrue to such entities from the 
project. 
(3) The truck freight and train volumes at the 
crossing. 
(4) The traffic delays caused by trains traveling 
through the crossing. 
(5) The history at the crossing of incidents with 
fatal or severe injuries. 
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(6) The safety hazards, including sightlines, 
along the crossing approaches. 
(7) The angle of the tracks to the roadway. 
(8) The highway-rail vertical grade separation 
project readiness. 
(9) The benefit to railroad operations as a re-
sult of the project. 
(10) Such other factors as the Secretary con-
siders relevant. 
(e) REPORTING REQUIREMENT.—As part of the 
grant application process, each eligible applicant shall sub-
mit a description of the anticipated public and private ben-
efits associated with the highway-rail vertical grade sepa-
ration project. The eligible applicant shall describe the an-
ticipated public and private benefits in consultation with 
the host railroad involved in the project. 
(f) PROJECT COST SHARING.— 
(1) BASIS.—The Secretary shall estimate the 
total cost of each highway-rail vertical grade separa-
tion project based on— 
(A) engineering studies; 
(B) studies of economic feasibility; and 
(C) information on the expected use of 
equipment or facilities. 
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(2) FEDERAL SHARE.—A Federal grant for a 
highway-rail vertical grade separation project under 
this section may not exceed— 
(A) 60 percent of the total capital cost of 
the highway-rail vertical grade separation 
project; or 
(B) $15,000,000. 
(3) NON-FEDERAL SHARE.— 
(A) IN GENERAL.—The eligible applicant 
shall pay, or arrange for the payment from non- 
Federal sources, including financing, not less 
than 40 percent of the shared costs of a high-
way-rail vertical grade separation project that is 
funded in part by a grant awarded under this 
section. 
(B) FORMS
OF
CONTRIBUTIONS.—The 
costs required under subparagraph (A) may be 
paid in cash or in-kind contributions. 
(C) IN-KIND CONTRIBUTIONS.— 
(i) IN
GENERAL.—The non-Federal 
in-kind contributions under subparagraph 
(B) may consist of— 
(I) real property; 
(II) tangible personal property; 
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(III) services of employees of the 
eligible applicant or other non-Federal 
source; and 
(IV) payments made by the eligi-
ble applicant or other non-Federal 
source for costs incurred for the high-
way-rail 
vertical 
grade 
separation 
project before the filing of an applica-
tion for a grant for the project under 
this section, and any in-kind contribu-
tions that were made for the project 
before the filing of the application, to 
the extent that such costs were in-
curred or in-kind contributions were 
made to comply with a legal require-
ment necessary to carry out the 
project. 
(ii) CONTRIBUTIONS.—The value of 
an 
in-kind 
contribution 
under 
clause 
(i)(III) shall be calculated— 
(I) by including the costs in-
curred by the eligible applicant or 
other non-Federal source for the pay 
and benefits of an employee described 
in clause (i)(III); and 
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(II) by excluding any overhead or 
general administrative costs. 
(g) GRANT CONDITIONS.—The Secretary shall re-
quire as a condition of making any grant under this sec-
tion that a written agreement exist between an eligible ap-
plicant and a host railroad concerning construction, main-
tenance, railroad contribution, and such other factors as 
the Secretary considers relevant. 
(h) RULEMAKING.—Not later than July 1, 2016, the 
Secretary shall issue final regulations for implementing 
the grant program authorized under this section. 
(i) GUIDANCE.—The Secretary may update existing 
or issue new guidance to assist an eligible applicant in de-
termining whether a highway-rail crossing should be grade 
separated, including by identifying relevant criteria that 
should be considered and evaluating the benefits and costs 
of grade separations compared to other safety approaches 
within a risk analysis framework. 
(j) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this section $150,000,000 for each of fiscal years 2016 
through 2021. 
Æ 
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