Sec. 1206. Freight investment grants
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Subtitle III as amended by section 1205 of this Act, is further amended by adding after section 5405 the following: The Secretary shall establish and implement a freight investment grant program for capital investments in major freight transportation infrastructure projects to improve the movement of goods through the transportation network of the United States. An eligible applicant seeking a grant under this section shall submit an application to the Secretary in such form as the Secretary prescribes and containing the data described in paragraph
(2)and the total amount of the grant requested. Each application submitted under this subsection shall include, to the extent practicable, available data on the most recent system performance and estimated system improvements that will result from completion of the eligible project, including projections for improvements 5 and 10 years after completion of the project. The Secretary shall establish accountability measures for the management of the Freight Investment Grant Program— to establish clear procedures for addressing late-arriving applications; to publicly communicate its decisions to accept or reject applications described in subparagraph (A); and to document and approve major decisions in the application evaluation and project selection process through a decision memorandum or similar mechanism that provides a clear rationale for decisions— to advance for senior review applications other than those rated as highly recommended; to not advance applications rated as highly recommended; and to change the technical evaluation rating of an application. An eligible applicant whose project is not selected under this section may resubmit an application with an addendum identifying any project updates in a subsequent solicitation. The Administrator may select a project for funding under this section only if the Administrator determines that the project— is consistent with the goals described in section 5402(b); will significantly improve the national or regional performance of the freight transportation network; is based on the results of preliminary engineering; is consistent with the long-range statewide transportation plan; cannot be readily and efficiently completed without Federal financial assistance; is justified based on the ability of the project— to generate national economic benefits that reasonably exceed the costs of the project; to reduce long-term congestion, including impacts on a regional and statewide basis; or to increase the speed, reliability, and accessibility of the movement of freight; and is supported by a sufficient amount of non-Federal funding, including evidence of stable and dependable financing to construct, maintain, and operate the infrastructure facility. In evaluating a project under this section, in addition to the criteria described in paragraph (1), the Secretary shall consider the extent to which the project— leverages Federal investment by encouraging non-Federal contributions to the project, including contributions from public-private partnerships; is able to begin construction by the date that is not later than 12 months after the date on which the project is selected; incorporates innovative project delivery and financing to the maximum extent practicable; improves freight facilities vital to agricultural or national energy security; improves or upgrades current or designated future Interstate System routes; uses innovative technologies, including intelligent transportation systems, that enhance the efficiency of the project; helps to improve mobility and accessibility; and improves transportation safety, including reducing transportation accident and serious injuries and fatalities. In awarding grants under this section, the Secretary shall take measures to ensure, to the maximum extent practicable— an equitable geographic distribution of amounts; and an appropriate balance in addressing the needs of rural and urban communities. A project is eligible for a grant under this section if the project— is difficult to complete with existing Federal, State, local, and private funds; enhances the economic competitiveness of the United States; or improves the flow of freight or reduces bottlenecks in our Nation’s freight infrastructure; and will advance 1 or more of the following objectives: Generate regional or national economic benefits and an increase in the global economic competitiveness of the United States. Improve transportation resources vital to agriculture or national energy security. Improve the efficiency, reliability, and affordability of the movement of freight. Improve existing freight infrastructure projects. Improve the movement of people by improving rural and metropolitan freight routes. Eligible projects for grant funding under this section shall include— a freight intermodal facility, including— 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 highway/rail intermodal facility; highway or bridge projects eligible under title 23; public transportation projects that reduce congestion on freight corridors and are eligible under chapter 53; freight rail transportation projects (including rail-grade separations); and port infrastructure investments (including inland port infrastructure). An applicant is eligible to receive a grant under this section if the applicant is— a State or a group of States; a local government or a group of local governments; a tribal government or a group of tribal governments; a transit agency or a group of transit agencies; a special purpose district or a public authority with a transportation function; a port authority; a political subdivision of a State or local government; a Federal land management agency, which is applying jointly with a State; or a multistate or multijurisdictional group of entities described in any of paragraphs
(1)through (8). The Secretary shall distribute amounts appropriated for grants under this section to States, local governments, transit agencies, or a collaboration among such entities on a competitive basis for projects that will have a significant impact on freight movement. In selecting projects to receive grant funding under this section, the Secretary shall— consider— projected freight volumes; and how projects will enhance economic efficiency, productivity, and competitiveness; and give priority to projects dedicated to— improving freight infrastructure facilities; reducing travel time for freight projects; and reducing freight transportation costs. In distributing funding for grants under this section, the Secretary shall take such measures to ensure— an equitable geographic distribution of funds; an appropriate balance in addressing the needs of urban and rural areas; and the investment in a variety of transportation modes. Except as provided under subparagraph (B)(i), a grant under this heading shall be not less than $10,000,000 and not greater than $100,000,000. If a grant awarded under this section is for a project located in a rural area— the amount of the grant shall be at least $1,000,000; and the Secretary may increase the Federal share of costs to greater than 80 percent. Except as provided under paragraph (4)(B)(ii), the Federal share of the costs for a project receiving a grant under this section shall be up to 80 percent. The Secretary shall give priority to projects that require a contribution of Federal funds in order to complete an overall financing package. Not less than 25 percent of the funding provided under this section shall be for projects located in rural areas. The Secretary shall conduct a new competition to select the grants and credit assistance awarded under this section. Not later than 72 hours before public notification of a grant awarded under this section, the Secretary shall notify the Committee on Commerce, Science, and Transportation of the Senate , the Committee on Environment and Public Works of the Senate, the Committee on Banking, Housing, and Urban Affairs of the Senate , the Committee on Appropriations of the Senate , the Committee on Transportation and Infrastructure of the House of Representatives , and the Committee on Appropriations of the House of Representatives of such award. On the request of an eligible entity under this section, the Secretary may use amounts awarded to the entity to pay subsidy and administrative costs necessary to provide the entity Federal credit assistance under section 6 of title 23 or section 822 of title 45 with respect to the project for which the grant was awarded. There is authorized to be appropriated from the general fund of the Treasury, $500,000,000 for each of the fiscal years 2016 through 2021 to carry out this section. The Secretary may retain up to 0.5 percent of the amounts appropriated pursuant to paragraph (1)— to administer the freight investment grant program; and to oversee eligible projects funded under this section. Amounts appropriated pursuant to this subsection shall be available for obligation until expended. .