Sec. 1301. Projects of national and regional significance
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Section 117 of title 23, United States Code, is amended to read as follows: The Secretary shall establish a projects of national and regional significance program under which the Secretary may make grants to, and establish multiyear grant agreements with, eligible entities in accordance with this section. To be eligible for a grant under this section, an eligible entity shall submit to the Secretary an application in such form, in such manner, and containing such information as the Secretary may require.
Each grant made under this section— shall be in an amount that is at least $25,000,000; and shall be for a project that has eligible project costs that are reasonably anticipated to equal or exceed the lesser of— $100,000,000; or in the case of a project— located in 1 State, 30 percent of the amount apportioned under this chapter to the State in the most recently completed fiscal year; or located in more than 1 State, 50 percent of the amount apportioned under this chapter to the participating State with the largest apportionment under this chapter in the most recently completed fiscal year.
For a project that has eligible project costs that are reasonably anticipated to equal or exceed $500,000,000, a grant made under this section— shall be in an amount sufficient to fully fund the project, or in the case of a public transportation project, a minimum operable segment, in combination with other funding sources, including non-Federal financial commitment, identified in the application; and may be awarded pursuant to the process under subsection (d), as necessary based on the amount of the grant.
A large project that receives a grant under this section may be carried out through a multiyear grant agreement in accordance with this subsection. A multiyear grant agreement for a large project shall— establish the terms of participation by the Federal Government in the project; establish the amount of Federal financial assistance for the project; establish a schedule of anticipated Federal obligations for the project that provides for obligation of the full grant amount by not later than 4 fiscal years after the fiscal year in which the initial amount is provided; and determine the period of time for completing the project, even if such period extends beyond the period of an authorization.
A multiyear grant agreement under this subsection— shall obligate an amount of available budget authority specified in law; and may include a commitment, contingent on amounts to be specified in law in advance for commitments under this paragraph, to obligate an additional amount from future available budget authority specified in law. A contingent commitment under this subsection is not an obligation of the Federal Government under section 1501 of title 31. Interest and other financing costs of carrying out a part of the project within a reasonable time shall be considered a cost of carrying out the project under a multiyear 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 to the Secretary that the applicant has shown reasonable diligence in seeking the most favorable financing terms. An eligible entity carrying out a large project under a multiyear grant agreement— may use funds made available to the eligible entity under this title or title 49 for eligible project costs of the large project; and shall be reimbursed, at the option of the eligible entity, for such expenditures from the amount made available under the multiyear grant agreement for the project in that fiscal year or a subsequent fiscal year.
The Secretary may make a grant under this section only for a project that is a project eligible for assistance under this title or chapter 53 of title 49 and is— a bridge project carried out on the National Highway System; a project to improve person throughput that is— a highway project carried out on the National Highway System; a public transportation project; or a capital project, as such term is defined in section 22906 of title 49, to improve intercity rail passenger transportation; or a project to improve freight throughput that is— a highway freight project carried out on the National Highway Freight Network established under section 167 or on the National Highway System; a freight intermodal, freight rail, or railway-highway grade crossing or grade separation project; or within the boundaries of a public or private freight rail, water (including ports), or intermodal facility and that is a surface transportation infrastructure project necessary to facilitate direct intermodal interchange, transfer, or access into or out of the facility.
Projects described in clauses
(ii)and
(iii)of paragraph (1)(C) may receive a grant under this section only if— the project will make a significant improvement to the movement of freight on the National Highway System; and the Federal share of the project funds only elements of the project that provide public benefits. Projects described in clauses
(ii)and
(iii)of paragraph (1)(B) may receive a grant under this section only if the project will make a significant improvement in mobility on public roads. An eligible entity receiving a grant under this section may use such grant for— development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities; and construction, reconstruction, rehabilitation, acquisition of real property (including land related to the project and improvements to the land), environmental mitigation, construction contingencies, acquisition of equipment, and operational improvements directly related to improving system performance. The Secretary may select a project described under this section for funding under this section only if the Secretary determines that the project— generates significant regional or national economic, mobility, safety, resilience, or environmental benefits; is cost effective; is based on the results of preliminary engineering; has secured or will secure acceptable levels of non-Federal financial commitments, including— 1 or more stable and dependable sources of funding and financing to construct, maintain, and operate the project; and contingency amounts to cover unanticipated cost increases; cannot be easily and efficiently completed without additional Federal funding or financial assistance available to the project sponsor, beyond existing Federal apportionments; and is reasonably expected to begin construction not later than 18 months after the date of obligation of funds for the project. In awarding a grant under this section, the Secretary shall evaluate the following merit criteria: The extent to which the project supports achieving a state of good repair. The level of benefits the project is expected to generate, including— the costs avoided by the prevention of closure or reduced use of the asset to be improved by the project; reductions in maintenance costs over the life of the asset; safety benefits, including the reduction of accidents and related costs; improved person or freight throughput, including congestion reduction and reliability improvements; national and regional economic benefits; resilience benefits; environmental benefits, including reduction in greenhouse gas emissions and air quality benefits; and benefits to all users of the project, including pedestrian, bicycle, nonvehicular, railroad, and public transportation users. How the benefits compare to the costs of the project. The average number of people or volume of freight, as applicable, supported by the project. In awarding a grant under this section, the Secretary shall also consider the following: Whether the project serves an area of persistent poverty. Whether the project uses innovative technologies, innovative design and construction techniques, or pavement materials that demonstrate reductions in greenhouse gas emissions through sequestration or innovative manufacturing processes and, if so, the degree to which such technologies, techniques, or materials are used. Whether the project improves connectivity between modes of transportation moving people or goods in the Nation or region. Whether the project provides new or improved connections between at least 2 metropolitan areas with a population of at least 500,000. To evaluate applications for funding under this section, the Secretary shall— determine whether a project is eligible for a grant under this section; evaluate, through a methodology that is discernible and transparent to the public, how each application addresses the merit criteria pursuant to subsection (h); assign a quality rating for each merit criteria for each application based on the evaluation in subparagraph (B); ensure that applications receive final consideration by the Secretary to receive an award under this section only on the basis of such quality ratings and that the Secretary gives final consideration only to applications that meet the minimally acceptable level for each of the merit criteria; and award grants only to projects rated highly under the evaluation and rating process. In awarding a grant for a large project, the Secretary shall— consider the amount of funds available in future fiscal years for the program under this section; and assume the availability of funds in future fiscal years for the program that extend beyond the period of authorization based on the amount made available for the program in the last fiscal year of the period of authorization. In awarding grants under this section, the Secretary shall ensure geographic diversity and a balance between rural and urban communities among grant recipients over fiscal years 2022 through 2025. Prior to the issuance of any notice of funding opportunity for grants under this section, the Secretary shall publish and make publicly available on the Department’s website— a detailed explanation of the merit criteria developed under subsection (h); a description of the evaluation process under this subsection; and how the Secretary shall determine whether a project satisfies each of the requirements under subsection (g). The Secretary shall update and make publicly available on the website of the Department of Transportation such information at any time a revision to the information described in subparagraph
(A)is made. The Secretary shall include in the published notice of funding opportunity for a grant under this section detailed information on the rating methodology and merit criteria to be used to evaluate applications, or a reference to the information on the website of the Department of Transportation, as required by subparagraph (A). The Federal share of the cost of a project carried out with a grant under this section may not exceed 60 percent. Federal assistance other than a grant under this section may be used to satisfy the non-Federal share of the cost of a project for which such a grant is made, except that the total Federal assistance provided for a project receiving a grant under this section may not exceed 80 percent of the total project cost. The Secretary shall, with respect to a project funded by a grant under this section, apply— the requirements of this title to a highway project; the requirements of chapter 53 of title 49 to a public transportation project; and the requirements of section 22905 of title 49 to a passenger rail or freight rail project. Except as otherwise provided in this paragraph, if an eligible project is a multimodal project, the Secretary shall— determine the predominant modal component of the project; and apply the applicable requirements of such predominant modal component to the project. For any passenger or freight rail component of a project, the requirements of section 22907(j)(2) of title 49 shall apply. For any public transportation component of a project, the requirements of section 5333 of title 49 shall apply. In applying the Buy American requirements under section 313 of this title and sections 5320, 22905(a), and 24305(f) of title 49 to a multimodal project under this paragraph, the Secretary shall— consider the various modal components of the project; and seek to maximize domestic jobs. Notwithstanding any other provision of this subsection, the Secretary shall require recipients of grants under this section to comply with subsection
(a)of section 113 with respect to public transportation projects, passenger rail projects, and freight rail projects, in the same manner that recipients of grants are required to comply with such subsection for construction work performed on highway projects on Federal-aid highways. At 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 chapter 6 with respect to the project for which the grant was awarded. Of the amounts made available to carry out this section, the Secretary may use up to $5,000,000 for the costs of administering the program under this section. Of the amounts made available to carry out this section, the Secretary may reserve up to $5,000,000,000 to provide technical assistance to eligible entities. Not less than 60 days before making an award under this section, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Commerce, Science, and Transportation of the Senate— a list of all applications determined to be eligible for a grant by the Secretary; the quality ratings assigned to each application pursuant to subsection (i); a list of applications that received final consideration by the Secretary to receive an award under this section; each application proposed to be selected for a grant award; proposed grant amounts, including for each new multiyear grant agreement, the proposed payout schedule for the project; and an analysis of the impacts of any large projects proposed to be selected on existing commitments and anticipated funding levels for the next 4 fiscal years, based on information available to the Secretary at the time of the report. Before the last day of the 60-day period described in paragraph (1), each Committee described in paragraph
(1)shall review the Secretary’s list of proposed projects. The Secretary may not make a grant or any other obligation or commitment to fund a project under this section if a joint resolution is enacted disapproving funding for the project before the last day of the 60-day period described in paragraph (1). Not later than 30 days after awarding a grant for a project under this section, the Secretary shall send to all applicants, and publish on the website of the Department of Transportation— a summary of each application made to the program for the grant application period; and the evaluation and justification for the project selection, including ratings assigned to all applications and a list of applications that received final consideration by the Secretary to receive an award under this section, for the grant application period. The Secretary shall provide, at the request of a grant applicant under this section, the opportunity to receive a briefing to explain any reasons the grant applicant was not awarded a grant. In this section: The term areas of persistent poverty has the meaning given such term in section 172(l). The term eligible entity means— a State or a group of States; a unit of local government, including a metropolitan planning organization, or a group of local governments; a political subdivision of a State or local government; a special purpose district or public authority with a transportation function, including a port authority; a tribal government or a consortium of tribal governments; a Federal agency eligible to receive funds under section 201, 203, or 204 that applies jointly with a State or group of States; and a multistate or multijurisdictional group of entities described in this paragraph. . The analysis for chapter 1 of title 23, United States Code, is amended by striking the item relating to section 117 and inserting the following: 117. Projects of national and regional significance. .