Sec. 11110. NATIONALLY SIGNIFICANT FREIGHT AND HIGHWAY PROJECTS
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## SEC. 11110 NATIONALLY SIGNIFICANT FREIGHT AND HIGHWAY PROJECTS ###
(a)In General Section 117 of title 23, United States Code, is amended— ####
(1)in the section heading, by inserting “multimodal” before “freight”; ####
(2)in subsection (a)(2)— #####
(A)in subparagraph (A), by inserting “in and across rural and urban areas” after “people”; #####
(B)in subparagraph (C), by inserting “or freight” after “highway”; #####
(C)in subparagraph (E), by inserting “or freight” after “highway”; and #####
(D)in subparagraph (F), by inserting “, including highways that support movement of energy equipment” after “security”; ####
(3)in subsection (b), by adding at the end the following: > > #### “(3) Grant administration > > The Secretary may— > > > ##### “(A) > > retain not more than a total of 2 percent of the funds made available to carry out this section for the National Surface Transportation and Innovative Finance Bureau to review applications for grants under this section; and > > > ##### “(B) > > transfer portions of the funds retained under subparagraph
(A)to the relevant Administrators to fund the award and oversight of grants provided under this section.” > ; ####
(4)in subsection (c)(1)— #####
(A)by redesignating subparagraph
(H)as subparagraph (I); and #####
(B)by inserting after subparagraph
(G)the following: > > ##### “(H) > > A multistate corridor organization.” > ; ####
(5)in subsection (d)— #####
(A)in paragraph (1)(A)— ######
(i)in clause (iii)(II), by striking “or” at the end; ######
(ii)in clause (iv), by striking “and” at the end; and ######
(iii)by adding at the end the following: > > ###### “(v) > > a wildlife crossing project; > > > ###### “(vi) > > a surface transportation infrastructure project that— > > > ###### “(I) > > is located within the boundaries of or functionally connected to an international border crossing area in the United States; > > > ###### “(II) > > improves a transportation facility owned by a Federal, State, or local government entity; and > > > ###### “(III) > > increases throughput efficiency of the border crossing described in subclause (I), including— > > > ###### “(aa) > > a project to add lanes; > > > ###### “(bb) > > a project to add technology; and > > > ###### “(cc) > > other surface transportation improvements; > > > ###### “(vii) > > a project for a marine highway corridor designated by the Secretary under section 55601(c) of title 46 (including an inland waterway corridor), if the Secretary determines that the project— > > > ###### “(I) > > is functionally connected to the National Highway Freight Network; and > > > ###### “(II) > > is likely to reduce on-road mobile source emissions; or > > > ###### “(viii) > > a highway, bridge, or freight project carried out on the National Multimodal Freight Network established under section 70103 of title 49; and” > ; and #####
(B)in paragraph (2)(A), in the matter preceding clause (i)— ######
(i)by striking “$600,000,000” and inserting “30 percent”; and ######
(ii)by striking “fiscal years 2016 through 2020, in the aggregate,” and inserting “each of fiscal years 2022 through 2026”; ####
(6)in subsection (e)— #####
(A)in paragraph (1), by striking “10 percent” and inserting “not less than 15 percent”; #####
(B)in paragraph (3)— ######
(i)in subparagraph (A), by striking “and” at the end; ######
(ii)in subparagraph (B), by striking the period at the end and inserting “; and”; and ######
(iii)by adding at the end the following: > > ##### “(C) > > the effect of the proposed project on safety on freight corridors with significant hazards, such as high winds, heavy snowfall, flooding, rockslides, mudslides, wildfire, wildlife crossing onto the roadway, or steep grades.” > ; and #####
(C)by adding at the end the following: > > #### “(4) Requirement > > Of the amounts reserved under paragraph (1), not less than 30 percent shall be used for projects in rural areas (as defined in subsection (i)(3)).” > ; ####
(7)in subsection (f)(2), by inserting “(including a project to replace or rehabilitate a culvert, or to reduce stormwater runoff for the purpose of improving habitat for aquatic species)” after “environmental mitigation”; ####
(8)in subsection (h)— #####
(A)in paragraph (2), by striking “and” at the end; #####
(B)in paragraph (3), by striking the period at the end and inserting a semicolon; and #####
(C)by adding at the end the following: > > #### “(4) > > enhancement of freight resilience to natural hazards or disasters, including high winds, heavy snowfall, flooding, rockslides, mudslides, wildfire, wildlife crossing onto the roadway, or steep grades; > > > #### “(5) > > whether the project will improve the shared transportation corridor of a multistate corridor organization, if applicable; and > > > #### “(6) > > prioritizing projects located in States in which neither the State nor an eligible entity in that State has been awarded a grant under this section.” > ; ####
(9)in subsection (i)(2), by striking “other grants under this section” and inserting “grants under subsection (e)”; ####
(10)in subsection (j)— #####
(A)by striking the subsection designation and heading and all that follows through “ The Federal share ” in paragraph
(1)and inserting the following: > > ### “(j) Federal Assistance > > > #### “(1) Federal share > > > ##### “(A) In general > > Except as provided in subparagraph
(B)or for a grant under subsection (q), the Federal share” > ; #####
(B)in paragraph (1), by adding at the end the following: > > ##### “(B) Small projects > > In the case of a project described in subsection (e)(1), the Federal share of the cost of the project shall be 80 percent.” > ; and #####
(C)in paragraph (2)— ######
(i)by striking “Federal assistance other” and inserting “Except for grants under subsection (q), Federal assistance other”; and ######
(ii)by striking “ except that the total Federal ” and inserting the following: > “except that— > > > ##### “(A) > > for a State with a population density of not more than 80 persons per square mile of land area, based on the 2010 census, the maximum share of the total Federal assistance provided for a project receiving a grant under this section shall be the applicable share under section 120(b); and > > > ##### “(B) > > for a State not described in subparagraph (A), the total Federal” > ; ####
(11)by redesignating subsections
(k)through
(n)as subsections (l), (m), (n), and (p), respectively; ####
(12)by inserting after subsection
(j)the following: > > ### “(k) Efficient Use of Non-Federal Funds > > > #### “(1) In general > > Notwithstanding any other provision of law and subject to approval by the Secretary under paragraph (2)(B), in the case of any grant for a project under this section, during the period beginning on the date on which the grant recipient is selected and ending on the date on which the grant agreement is signed— > > > ##### “(A) > > the grant recipient may obligate and expend non-Federal funds with respect to the project for which the grant is provided; and > > > ##### “(B) > > any non-Federal funds obligated or expended in accordance with subparagraph
(A)shall be credited toward the non-Federal cost share for the project for which the grant is provided. > > > #### “(2) Requirements > > > ##### “(A) Application > > In order to obligate and expend non-Federal funds under paragraph (1), the grant recipient shall submit to the Secretary a request to obligate and expend non-Federal funds under that paragraph, including— > > > ###### “(i) > > a description of the activities the grant recipient intends to fund; > > > ###### “(ii) > > a justification for advancing the activities described in clause (i), including an assessment of the effects to the project scope, schedule, and budget if the request is not approved; and > > > ###### “(iii) > > the level of risk of the activities described in clause (i). > > > ##### “(B) Approval > > The Secretary shall approve or disapprove each request submitted under subparagraph (A). > > > ##### “(C) Compliance with applicable requirements > > Any non-Federal funds obligated or expended under paragraph
(1)shall comply with all applicable requirements, including any requirements included in the grant agreement. > > > #### “(3) Effect > > The obligation or expenditure of any non-Federal funds in accordance with this subsection shall not— > > > ##### “(A) > > affect the signing of a grant agreement or other applicable grant procedures with respect to the applicable grant; > > > ##### “(B) > > create an obligation on the part of the Federal Government to repay any non-Federal funds if the grant agreement is not signed; or > > > ##### “(C) > > affect the ability of the recipient of the grant to obligate or expend non-Federal funds to meet the non-Federal cost share for the project for which the grant is provided after the period described in paragraph (1).” > ; ####
(13)in subsection
(n)(as so redesignated), by striking paragraph
(1)and inserting the following: > > #### “(1) In general > > Not later than 60 days before the date on which a grant is provided for a project under this section, the Secretary shall submit to the Committees on Commerce, Science, and Transportation and Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report describing the proposed grant, including— > > > ##### “(A) > > an evaluation and justification for the applicable project; and > > > ##### “(B) > > a description of the amount of the proposed grant award.” > ; ####
(14)by inserting after subsection
(n)(as so redesignated) the following: > > ### “(o) Applicant Notification > > > #### “(1) In general > > Not later than 60 days after the date on which a grant recipient for a project under this section is selected, the Secretary shall provide to each eligible applicant not selected for that grant a written notification that the eligible applicant was not selected. > > > #### “(2) Inclusion > > A written notification under paragraph
(1)shall include an offer for a written or telephonic debrief by the Secretary that will provide— > > > ##### “(A) > > detail on the evaluation of the application of the eligible applicant; and > > > ##### “(B) > > an explanation of and guidance on the reasons the application was not selected for a grant under this section. > > > #### “(3) Response > > > ##### “(A) In general > > Not later than 30 days after the eligible applicant receives a written notification under paragraph (1), if the eligible applicant opts to receive a debrief described in paragraph (2), the eligible applicant shall notify the Secretary that the eligible applicant is requesting a debrief. > > > ##### “(B) Debrief > > If the eligible applicant submits a request for a debrief under subparagraph (A), the Secretary shall provide the debrief by not later than 60 days after the date on which the Secretary receives the request for a debrief.” > ; and ####
(15)by striking subsection
(p)(as so redesignated) and inserting the following: > > ### “(p) Reports > > > #### “(1) Annual report > > > ##### “(A) In general > > Notwithstanding any other provision of law, not later than 30 days after the date on which the Secretary selects a project for funding under this section, the Secretary shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that describes the reasons for selecting the project, based on any criteria established by the Secretary in accordance with this section. > > > ##### “(B) Inclusions > > The report submitted under subparagraph
(A)shall specify each criterion established by the Secretary that the project meets. > > > ##### “(C) Availability > > The Secretary shall make available on the website of the Department of Transportation the report submitted under subparagraph (A). > > > ##### “(D) Applicability > > This paragraph applies to all projects described in subparagraph
(A)that the Secretary selects on or after October 1, 2021. > > > #### “(2) Comptroller general > > > ##### “(A) Assessment > > The Comptroller General of the United States shall conduct an assessment of the establishment, solicitation, selection, and justification process with respect to the funding of projects under this section. > > > ##### “(B) Report > > Not later than 1 year after the date of enactment of the Surface Transportation Reauthorization Act of 2021 and annually thereafter, the Comptroller General of the United States shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that describes, for each project selected to receive funding under this section— > > > ###### “(i) > > the process by which each project was selected; > > > ###### “(ii) > > the factors that went into the selection of each project; and > > > ###### “(iii) > > the justification for the selection of each project based on any criteria established by the Secretary in accordance with this section. > > > #### “(3) Inspector general > > Not later than 1 year after the date of enactment of the Surface Transportation Reauthorization Act of 2021 and annually thereafter, the Inspector General of the Department of Transportation shall— > > > ##### “(A) > > conduct an assessment of the establishment, solicitation, selection, and justification process with respect to the funding of projects under this section; and > > > ##### “(B) > > submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a final report that describes the findings of the Inspector General of the Department of Transportation with respect to the assessment conducted under subparagraph (A). > > > ### “(q) State Incentives Pilot Program > > > #### “(1) Establishment > > There is established a pilot program to award grants to eligible applicants for projects eligible for grants under this section (referred to in this subsection as the ‘pilot program’). > > > #### “(2) Priority > > In awarding grants under the pilot program, the Secretary shall give priority to an application that offers a greater non-Federal share of the cost of a project relative to other applications under the pilot program. > > > #### “(3) Federal share > > > ##### “(A) In general > > Notwithstanding any other provision of law, the Federal share of the cost of a project assisted with a grant under the pilot program may not exceed 50 percent. > > > ##### “(B) No federal involvement > > > ###### “(i) In general > > For grants awarded under the pilot program, except as provided in clause (ii), an eligible applicant may not use Federal assistance to satisfy the non-Federal share of the cost under subparagraph (A). > > > ###### “(ii) Exception > > An eligible applicant may use funds from a secured loan (as defined in section 601(a)) to satisfy the non-Federal share of the cost under subparagraph
(A)if the loan is repayable from non-Federal funds. > > > #### “(4) Reservation > > > ##### “(A) In general > > Of the amounts made available to provide grants under this section, the Secretary shall reserve for each fiscal year $150,000,000 to provide grants under the pilot program. > > > ##### “(B) Unutilized amounts > > In any fiscal year during which applications under this subsection are insufficient to effect an award or allocation of the entire amount reserved under subparagraph (A), the Secretary shall use the unutilized amounts to provide other grants under this section. > > > #### “(5) Set-asides > > > ##### “(A) Small projects > > > ###### “(i) In general > > Of the amounts reserved under paragraph (4)(A), the Secretary shall reserve for each fiscal year not less than 10 percent for projects eligible for a grant under subsection (e). > > > ###### “(ii) Requirement > > For a grant awarded from the amount reserved under clause (i)— > > > ###### “(I) > > the requirements of subsection
(e)shall apply; and > > > ###### “(II) > > the requirements of subsection
(g)shall not apply. > > > ##### “(B) Rural projects > > > ###### “(i) In general > > Of the amounts reserved under paragraph (4)(A), the Secretary shall reserve for each fiscal year not less than 25 percent for projects eligible for a grant under subsection (i). > > > ###### “(ii) Requirement > > For a grant awarded from the amount reserved under clause (i), the requirements of subsection
(i)shall apply. > > > #### “(6) Report to congress > > Not later than 2 years after the date of enactment of this subsection, the Secretary shall submit to the Committee on Environment and Public Works and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that describes the administration of the pilot program, including— > > > ##### “(A) > > the number, types, and locations of eligible applicants that have applied for grants under the pilot program; > > > ##### “(B) > > the number, types, and locations of grant recipients under the pilot program; > > > ##### “(C) > > an assessment of whether implementation of the pilot program has incentivized eligible applicants to offer a greater non-Federal share for grants under the pilot program; and > > > ##### “(D) > > any recommendations for modifications to the pilot program. > > > ### “(r) Multistate Corridor Organization Defined > > For purposes of this section, the term ‘multistate corridor organization’ means an organization of a group of States developed through cooperative agreements, coalitions, or other arrangements to promote regional cooperation, planning, and shared project implementation for programs and projects to improve transportation system management and operations for a shared transportation corridor. > > > ### “(s) Additional Authorization of Appropriations > > In addition to amounts made available from the Highway Trust Fund, there are authorized to be appropriated to carry out this section, to remain available for a period of 3 fiscal years following the fiscal year for which the amounts are appropriated— > > > #### “(1) > > $1,000,000,000 for fiscal year 2022; > > > #### “(2) > > $1,100,000,000 for fiscal year 2023; > > > #### “(3) > > $1,200,000,000 for fiscal year 2024; > > > #### “(4) > > $1,300,000,000 for fiscal year 2025; and > > > #### “(5) > > $1,400,000,000 for fiscal year 2026.” > . ###
(b)Clerical Amendment **[**[23 U.S.C. 101](/us/usc/t23/s101)**]** 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. Nationally significant multimodal freight and highway projects.” ". ###
(c)Efficient Use of Non-Federal Funds **[**[23 U.S.C. 117 note](/us/usc/t23/s117)**]** ####
(1)In general Notwithstanding any other provision of law, in the case of a grant described in paragraph (2), section 117(k) of title 23, United States Code, shall apply to the grant as if the grant was a grant provided under that section. ####
(2)Grant described A grant referred to in paragraph
(1)is a grant that is— #####
(A)provided under a competitive discretionary grant program administered by the Federal Highway Administration; #####
(B)for a project eligible under title 23, United States Code; and #####
(C)in an amount greater than $5,000,000.
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