vides efficient, cost-effective, sustainable, and inter-
modal connectivity to a defined region of economic 
significance centered around a major airport; or 
‘‘(8) planning, preparation, or design of any 
project described in this subsection. 
‘‘(c) PROJECT
SELECTION
CRITERIA.—In deter-
mining whether to award a grant to an eligible applicant 
under this section, the Secretary shall consider the extent 
to which the project— 
‘‘(1) supports the objectives of the National 
Freight Transportation Strategic Plan developed 
under section 102(h)(3); 
‘‘(2) leverages Federal investment by encour-
aging non-Federal contributions to the project, in-
cluding contributions from public-private partner-
ships; 
‘‘(3) improves the mobility of goods and com-
modities; 
‘‘(4) incorporates new and innovative tech-
nologies, including freight-related intelligent trans-
portation systems; 
‘‘(5) improves energy efficiency or reduces 
greenhouse gas emissions; 
‘‘(6) helps maintain or protect the environment, 
including reducing air and water pollution; 
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‘‘(7) reduces congestion; 
‘‘(8) improves the condition of the freight infra-
structure, including bringing it into a state of good 
repair; 
‘‘(9) improves safety, including reducing trans-
portation accidents, injuries, and fatalities; 
‘‘(10) demonstrates that the proposed project 
cannot be readily and efficiently realized without 
Federal support and participation; and 
‘‘(11) enhances national or regional economic 
development, growth, and competitiveness. 
‘‘(d) PRIORITY.—The Secretary shall give priority to 
projects that have the highest system performance im-
provement relative to their benefit-cost analysis, as meas-
ured by the tools developed under section 103 of the Fo-
cusing Resources, Economic Investment, and Guidance To 
Help Transportation Act of 2011. 
‘‘(e) LETTERS OF INTENT.— 
‘‘(1) The Secretary may issue a letter of intent 
to an applicant announcing an intention to obligate, 
for a major capital project under this subsection, an 
amount from future available budget authority speci-
fied in law that is not more than the amount stipu-
lated as the financial participation of the Secretary 
in the project. 
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‘‘(2) At least 30 days before issuing a letter 
under paragraph (1) of this subsection, the Sec-
retary shall notify in writing the Senate Committee 
on Commerce, Science, and Transportation and the 
House of Representatives Committee on Transpor-
tation and Infrastructure of the proposed letter or 
agreement. The Secretary shall include with the no-
tification a copy of the proposed letter or agreement, 
the criteria used under subsection (c) for selecting 
the project for a grant award, and a description of 
how the project meets such criteria. 
‘‘(3) An obligation or administrative commit-
ment may be made only when amounts are made 
available. The letter of intent shall state that the 
contingent commitment is not an obligation of the 
Federal Government, and is subject to the avail-
ability of funds under Federal law and to Federal 
laws in force or enacted after the date of the contin-
gent commitment. 
‘‘(f) FEDERAL SHARE OF NET PROJECT COST.— 
‘‘(1) Based on engineering studies, studies of 
economic feasibility, and information on the expected 
use of equipment or facilities, the Secretary shall es-
timate the net project cost. 
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‘‘(2) The Federal share of a grant for the 
project shall not exceed 80 percent of the project net 
capital cost. 
‘‘(3) The Secretary shall give priority in allo-
cating future obligations and contingent commit-
ments to incur obligations to grant requests seeking 
a lower Federal share of the project net capital cost. 
‘‘(g) COOPERATIVE AGREEMENTS.— 
‘‘(1) IN
GENERAL.—An applicant may enter 
into an agreement with any public, private, or non-
profit entity to cooperatively implement any project 
funded with a grant under this subchapter. 
‘‘(2) FORMS OF PARTICIPATION.—Participation 
by an entity under paragraph (1) may consist of— 
‘‘(A) ownership or operation of any land, 
facility, vehicle, or other physical asset associ-
ated with the project; 
‘‘(B) cost sharing of any project expense or 
non-Federal share of the project cost, including 
in-kind contributions; 
‘‘(C) carrying out administration, construc-
tion management, project management, project 
operation, or any other management or oper-
ational duty associated with the project; and 
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‘‘(D) any other form of participation ap-
proved by the Secretary. 
‘‘(h) OVERSIGHT PROGRAM.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish an oversight program to monitor the 
effective and efficient use of funds authorized to 
carry out this section. 
‘‘(B) MINIMUM REQUIREMENT.—At a min-
imum, the program shall be responsive to all 
areas relating to financial integrity and project 
delivery. 
‘‘(2) FINANCIAL INTEGRITY.— 
‘‘(A) 
FINANCIAL
MANAGEMENT
SYS-
TEMS.—The Secretary shall perform annual re-
views that address elements of the applicant’s 
financial management systems that affect 
projects approved under subsection (a). 
‘‘(B) PROJECT
COSTS.—The Secretary 
shall develop minimum standards for estimating 
project costs and shall periodically evaluate the 
practices of applicants for estimating project 
costs, awarding contracts, and reducing project 
costs. 
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