[Senate Report 115-324]
[From the U.S. Government Publishing Office]
Calendar No. 558
115th Congress} { Report
SENATE
2d Session } { 115-324
======================================================================
PORT OPERATIONS, RESEARCH, AND TECHNOLOGY ACT
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ON
S. 3273
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
August 20, 2018.--Ordered to be printed
__________
U.S. GOVERNMENT PUBLISHING OFFICE
WASHINGTON : 2018
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred fifteenth congress
second session
JOHN THUNE, South Dakota, Chairman
ROGER F. WICKER, Mississippi BILL NELSON, Florida
ROY BLUNT, Missouri MARIA CANTWELL, Washington
TED CRUZ, Texas AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska RICHARD BLUMENTHAL, Connecticut
JERRY MORAN, Kansas BRIAN SCHATZ, Hawaii
DAN SULLIVAN, Alaska EDWARD J. MARKEY, Massachusetts
DEAN HELLER, Nevada TOM UDALL, New Mexico
JAMES M. INHOFE, Oklahoma GARY C. PETERS, Michigan
MIKE LEE, Utah TAMMY BALDWIN, Wisconsin
RON JOHNSON, Wisconsin TAMMY DUCKWORTH, Illinois
SHELLEY MOORE CAPITO, West Virginia MARGARETWOODHASSAN,NewHampshire
CORY GARDNER, Colorado CATHERINE CORTEZ MASTO, Nevada
TODD C. YOUNG, Indiana JON TESTER, Montana
Nick Rossi, Staff Director
Adrian Arnakis, Deputy Staff Director
Jason Van Beek, General Counsel
Kim Lipsky, Democratic Staff Director
Christopher Day, Democratic Deputy Staff Director
Calendar No. 558
115th Congress} { Report
SENATE
2d Session } { 115-324
======================================================================
PORT OPERATIONS, RESEARCH, AND TECHNOLOGY ACT
_______
August 20, 2018.--Ordered to be printed
_______
Mr. Thune, from the Committee on Commerce, Science, and Transportation,
submitted the following
R E P O R T
[To accompany S. 3273]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 3273) to improve the safety,
efficiency, and reliability of the movement of goods through
ports and intermodal connections to ports, and for other
purposes, having considered the same, reports favorably thereon
with an amendment (in the nature of a substitute) and
recommends that the bill (as amended) do pass.
Purpose of the Bill
The purpose of this legislation is to do the following:
update the existing StrongPorts program to build a more defined
and effective program to address port and intermodal needs
across the country; and require the Commandant of the Coast
Guard to establish and develop a Blue Technology Center of
Expertise to promote awareness and adoption of technologies
that enhance Coast Guard missions.
Background and Needs
PORTS
Maritime transportation is a significant mode of
transportation for international and domestic freight movement.
According to the Department of Transportation's Beyond Traffic
report, deepwater seaports handle more than 70 percent of our
Nation's imports and exports by weight.\1\ In addition to
seaports, more than 70 inland ports along navigable waterways
and the Great Lakes carry approximately 10 percent of domestic
freight ton-miles and 30 percent of total freight tonnage.\2\
Growth in containerized and bulk freight volumes continues to
add stress to port infrastructure, with containerized volumes
alone expected to nearly double by 2029.\3\ Moreover, expansion
of the Panama Canal in 2016 to accommodate ``New Panamax''
vessels has also changed shipping patterns and increased the
demand for terminals in ports on the East Coast capable of
accommodating these vessels. In addition, ports continue to
deploy new technologies for their operations, which many port
operators and freight companies view as increasing supply chain
efficiency and throughput and which certain labor
organizations, such as the International Longshore and
Warehouse Union and International Longshoremen's Association,
view as presenting potentially negative effects on certain
types of employment.
---------------------------------------------------------------------------
\1\U.S. Department of Transportation, ``Beyond Traffic'', 2015.
(https://www.
transportation.gov/sites/dot.gov/files/docs/
BeyondTraffic_tagged_508_final.pdf)
\2\Bureau of Transportation Statistics. National Transportation
Statistics. 2018. (https://www.bts.gov/product/national-transportation-
statistics)
\3\Federal Maritime Commission. U.S. Container Port Congestion and
Related International Supply Chain Issues: Causes, Consequences and
Challenges. 2015. (https://www.fmc.gov/assets/1/Page/
PortForumReport_FINALwebAll.pdf)
---------------------------------------------------------------------------
Both seaports and inland ports are eligible for funding
through various grant programs, including the Better Utilizing
Investments to Leverage Development (BUILD) and the
Infrastructure for Rebuilding America (INFRA) programs, though
the latter only allows funding for port infrastructure with a
multimodal nexus. However, unlike for other modes, such as
highways, transit, and rail, to date Congress has not
appropriated funding for a dedicated maritime transportation
grant program focused on broad port infrastructure
improvements.\4\
---------------------------------------------------------------------------
\4\Congress does provide funding for the Maritime Administration's
Marine Highways Program, which allocates annual grants toward the
development of designated marine highways to relieve highway congestion
and can involve port infrastructure improvements. But that program does
not typically focus on broad port infrastructure improvements. The
Marine Highways program received $7 million in appropriations under the
Consolidated Appropriations Act, 2018.
---------------------------------------------------------------------------
In section 3512 of the National Defense Authorization Act
for Fiscal Year 2010 (NDAA for FY 2010), Congress authorizes a
port infrastructure development program--named StrongPorts--
intended to improve port facilities.\5\ However, StrongPorts
has an undefined and unconstrained authorization structure,
does not have basic program components, such as matching
requirements or clearly defined eligible applicants, and thus
it has never received an appropriation.
---------------------------------------------------------------------------
\5\46 U.S.C. 50302.
---------------------------------------------------------------------------
To focus on broad port infrastructure improvements, the
John S. McCain National Defense Authorization Act for Fiscal
Year 2019 (Public Law 115-232) includes a $5 million set-aside
for StrongPorts out of the broader $60.4 million authorization
for Maritime Administration (MARAD) operations and programs. In
fiscal year (FY) 2018, Congress appropriated, out of the
broader MARAD operations and programs authorization,
approximately $10 million for MARAD grant programs; the
approximately $50 million in remaining funds is for MARAD
operations. Thus, for FY 2019, the $5 million set-aside would
effectively be funded out of the $10 million for MARAD grant
programs.
BLUE TECHNOLOGY
Currently, the Research and Development Center (RDC) within
the Coast Guard is responsible for evaluating the affordability
and feasibility of emerging technologies as they relate to the
acquisition process. However, the RDC is primarily focused on
internal research and the optimization of existing Coast Guard
assets. The emergence of numerous technologies in the private
sector--including improvements to hydrographic surveys,
autonomous drones, and integrated communication systems--
present opportunities for the Coast Guard to leverage these
technologies to improve operational performance. The Coast
Guard may also consider coordination with academia, nonprofit
organizations, and other Federal agencies, particularly the
National Oceanic and Atmospheric Administration.
Summary of Provisions
If enacted, S. 3273 would do the following:
Ports
Update StrongPorts to build a more defined and
effective program to address port and intermodal needs across
the country and to rename it the Port and Intermodal
Improvement Program (PIIP).
Add selection criteria centered on improving the
safety, efficiency, or reliability of the movement of goods
into, out of, around, or within a port or intermodal facility;
and define eligible applicants to include a wide range of
public and private stakeholders.
Include provisions to ensure small projects
receive consideration and that the Secretary of Transportation
considers geographic distribution.
Blue Technology
Require the Commandant of the Coast Guard to
establish a Blue Technology Center of Expertise not later than
1 year after the date of enactment of the Act.
Develop a structure for the new Center of
Expertise to do the following:
Promote awareness within the Coast Guard of
the range and diversity of Blue Technologies and how
those technologies could enhance Coast Guard missions.
Function as an interactive conduit to enable
the sharing and dissemination of Blue Technology
information between the private sector, academia,
nonprofits, other Federal agencies, and the Coast
Guard.
Legislative History
S. 3273 was introduced on July 25, 2018, by Senator Wicker
and was referred to the Committee on Commerce, Science, and
Transportation of the Senate. On August 1, 2018, the Committee
met in open Executive Session, and by voice vote, ordered S.
3273 to be reported favorably with an amendment (in the nature
of a substitute). Senator Lee offered an amendment which was
adopted by voice vote; the amendment would eliminate from the
program's eligibilities certain subsidies or administrative
costs eligible for Federal credit assistance.
Ports.--On June 6, 2018, Senators Wicker and Nelson offered
a floor amendment (Wicker #2821) to the NDAA for FY 2019 that
would update and improve StrongPorts for the already existing
set-aside in that measure's MARAD title. A modified version of
that amendment was included in S. 3273.
Blue Technology.--On June 25, 2018, Congressman John
Garamendi (D-CA), with the co-sponsorship of Congressman Duncan
Hunter (R-CA), introduced H.R. 6206, the Coast Guard Blue
Technology Center of Expertise Act. On June 27, 2018, the House
of Representatives Committee on Transportation and
Infrastructure ordered H.R. 6206 to be reported by voice vote.
On July 25, 2018, the House of Representatives passed on
suspension the bill as part of S. 756, the Save Our Seas Act of
2017.
On April 4, 2017, the Committee's Subcommittee on Surface
Transportation and Merchant Marine Infrastructure, Safety, and
Security held a multimodal transportation stakeholder hearing
entitled, ``Keeping Goods Moving: Continuing to Enhance
Multimodal Freight Policy and Infrastructure,'' which examined
the importance of the multimodal freight transportation network
and policies needed for a growing economy.
On April 24, 2018, the Committee's Subcommittee on Surface
Transportation and Merchant Marine Infrastructure, Safety, and
Security held a maritime transportation hearing entitled,
``Maritime Transportation: Opportunities and Challenges,''
which focused on the U.S. maritime industry, the state of the
Nation's maritime transportation system and its current
challenges, and the ways in which Federal policy and programs
could enhance its performance.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
S. 3273--Port Operations, Research, and Technology Act
Summary: S. 3273 would expand the eligibility criteria for
grants that the Maritime Administration (MARAD) is authorized
to provide to improve infrastructure at maritime ports and
facilities. The bill also would direct the Coast Guard (USCG)
to undertake activities to promote the use of certain new
maritime technologies.
Assuming appropriation of the necessary amounts, CBO
estimates that implementing S. 3273 would cost $18 million over
the 2019-2023 period. Enacting the bill would not affect direct
spending or revenues; therefore, pay-as-you-go procedures do
not apply.
CBO estimates that enacting S. 3273 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
S. 3273 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary effect of S. 3273 is shown in the following table.
The costs of the legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2019-2023
----------------------------------------------------------------------------------------------------------------
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level...................... 0 5 5 5 5 6 26
Estimated Outlays.................................. 0 1 3 4 5 5 18
----------------------------------------------------------------------------------------------------------------
Basis of estimate: CBO assumes that the bill will be
enacted by the end of 2018 and that the necessary amounts will
be provided each year.
Under current law, MARAD is authorized to provide grants to
support capital improvements at ports to benefit the U.S.
maritime industry--the civilian mariners and fleet of U.S.
vessels engaged primarily in waterborne commerce. Section 2
would specify that such grants could also be used for projects
to improve intermodal facilities, which connect ports to
different modes of transportation.
MARAD did not receive funding for grants to promote port
development in 2018. Assuming that the grants authorized under
S. 3273 are used for projects similar in scope and cost to
those supported by MARAD's existing grant program, CBO
estimates that providing those grants would require
appropriations of about $5 million in the first year with
increases each year thereafter to account for inflation. Based
on historical spending patterns for grants administered by
MARAD, CBO estimates that the outlays stemming from those
grants would occur gradually over a period of about five years,
totaling $18 million over the 2019-2023 period (and $8 million
after 2023).
Section 3 would direct the USCG to establish a center of
expertise to promote the use of new maritime technologies
related to activities including surveillance and monitoring,
search and rescue, emergency response, and law enforcement.
(Under current law, the agency operates several such centers,
which provide technical assistance on a range of issues related
to maritime safety.) Because the USCG's existing Research and
Development Center is already pursuing similar activities, CBO
expects that any increases in the agency's costs to implement
section 3--which would be subject to appropriation--would not
exceed $500,000 in any year. (In 2018, the USCG allocated about
$5 million in appropriated funds to those efforts.)
Pay-As-You-Go considerations: None.
Increase in long-term direct spending and deficits: CBO
estimates that enacting S. 3273 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2029.
Mandates: S. 3273 contains no intergovernmental or private-
sector mandates as defined in UMRA.
Previous CBO estimate: On July 20, 2018, CBO transmitted a
cost estimate for H.R. 6206, the Coast Guard Blue Technology
Center of Expertise Act, as ordered reported by the House
Committee on Transportation and Infrastructure on June 27,
2018. H.R. 6206 is similar to section 3 of S. 3273, and the
estimated costs are the same for both bills.
Estimate prepared by: Federal Costs: Megan Carroll;
Mandates: Jon Sperl.
Estimate reviewed by: Kim P. Cawley Chief, Natural and
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
number of persons covered
This measure, as reported, would not create any new
programs or impose any new significant regulatory requirements,
and, therefore, would not subject any individuals or businesses
to new significant regulations. In creating a more defined
grant program to improve port infrastructure, this measure
would affect ports, other transportation and infrastructure
entities, and communities served by the commerce moving in and
out of ports.
economic impact
Enactment of this legislation is not expected to have any
significant adverse impacts on the Nation's economy. It is
expected to have a positive impact by improving commerce in and
out of the Nation's ports.
privacy
S. 3273 will not have any adverse impact on the privacy of
individuals.
paperwork
S. 3273 would not impose a substantial paperwork burden on
individuals or businesses. The bill does require additional
paperwork for grant applicants, but this would be offset by the
benefits of increased opportunity for the port and intermodal
infrastructure improvements.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Sec. 1. Short title.
This section would provide that the bill may be cited as
the ``Port Operations, Research, and Technology Act.''
Section 2. Port and Intermodal Improvement Program.
This section would amend the existing StrongPorts, found in
section 50302 of title 46, United States Code, and rename it
PIIP. This section would improve the existing program by
providing a competitive grant program for eligible applicants
to apply to the Secretary of Transportation (Secretary) to fund
port and intermodal projects on an annual basis.
This section would define eligible applicants to include a
State, public authority, or private entity with a public
sponsor lead. This section would define eligible projects to
include those that improve the safety, efficiency, or
reliability of goods movement into, out of, around, or within a
port facility, covering both sea and inland ports. For example,
a potential eligible project covered under PIIP could include,
among other types of projects, an on-dock rail project, a
highway connection point into the port facility, marine
terminal equipment, or a dredging project at a port berth. This
section would set certain requirements to ensure sufficient
non-Federal matches, drawing more localized resources to
improve infrastructure.
This section would set project selection criteria,
including: that the project improves the safety, efficiency, or
reliability of the movement of goods through a port or
intermodal connection to a port; the project is cost-effective;
the eligible applicant has authority to carry out the project;
the eligible applicant has sufficient funding available to meet
the matching requirements; the project will be completed
without unreasonable delay; and the project cannot be easily
and efficiently completed without Federal funding or financial
assistance available to the project sponsor. The section would
require the Secretary, after considering the aforementioned
criteria, to give substantial weight to the following: (1) the
utilization of non-Federal contribution; and (2) the net
benefits of the funds awarded under the subsection, considering
the cost-benefit analysis of the project, as applicable. In
considering the cost-benefit analysis of the project, the
Secretary should give consideration to any evidence presented
of effects on employment.
This section would allow for a higher Federal share for
projects located in rural areas. This section also would
include a set-aside of 25 percent for small projects, along
with a streamlined application process for such projects. This
section would ensure that not more than 25 percent of the
amounts made available for grants may be used to make grants
for projects in any one State to ensure an equitable geographic
distribution of funding.
This section would require the Secretary to notify the
appropriate committees of Congress of the proposed grant
amount, including an evaluation and justification for the
project, at least 60 days before making a grant. This section
would provide that the Secretary may not make a grant to fund a
project if Congress enacts a joint resolution disapproving
funding for the proposed project within 60 days of receipt of
the notification.
Section 3. Coast Guard Blue Technology Center of Expertise.
This section would require the Commandant of the Coast
Guard to establish a Blue Technology Center of Expertise not
later than 1 year from the date of enactment of the Act.
This section would detail several missions of the Blue
Technology Center of Expertise, including the following:
promoting awareness of Blue Technologies within the Coast
Guard; enabling the sharing of Blue Technology information
between the private sector, academia, nonprofit organizations,
other Federal agencies, and the Coast Guard; increasing
awareness of Coast Guard acquisition policies and practices
among Blue Technology manufacturers, entrepreneurs, and
vendors; providing technical support, coordination, and
assistance to Coast Guard districts and the Coast Guard
Research and Development Center; and, subject to the
requirements of the Coast Guard Academy, coordinating with the
Academy to develop appropriate curricula regarding Blue
Technology.
This section also would direct the Commandant of the Coast
Guard to report to the appropriate committees of Congress on
the costs and benefits of hosting a biennial Coast Guard Blue
Technology exposition.
This section also would define the terms ``center'',
``Commandant'', and ``Blue Technology.''
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
material is printed in italic, existing law in which no change
is proposed is shown in roman):
TITLE 46. SHIPPING
SUBTITLE V. MERCHANT MARINE
PART A. GENERAL
CHAPTER 503. ADMINISTRATIVE
Sec. 50302. Port development
(a) General Requirements.--With the objective of promoting,
encouraging, and developing ports and transportation facilities
in connection with water commerce over which the Secretary of
Transportation has jurisdiction, the Secretary, in cooperation
with the Secretary of the Army, shall--
(1) investigate territorial regions and zones
tributary to ports, taking into consideration the
economies of transportation by rail, water, and highway
and the natural direction of the flow of commerce;
(2) investigate the causes of congestion of commerce
at ports and applicable remedies;
(3) investigate the subject of water terminals,
including the necessary docks, warehouses, and
equipment, to devise and suggest the types most
appropriate for different locations and for the most
expeditious and economical transfer or interchange of
passengers or property between water carriers and rail
carriers;
(4) consult with communities on the appropriate
location and plan of construction of wharves, piers,
and water terminals;
(5) investigate the practicability and advantages of
harbor, river, and port improvements in connection with
foreign and coastwise trade; and
(6) investigate any other matter that may tend to
promote and encourage the use by vessels of ports
adequate to care for the freight that naturally would
pass through those ports.
(b) Submission of Findings to Surface Transportation Board.--
After an investigation under subsection (a), if the Secretary
of Transportation believes that the rates or practices of a
rail carrier subject to the jurisdiction of the Surface
Transportation Board are detrimental to the objective specified
in subsection (a), or that new rates or practices, new or
additional port terminal facilities, or affirmative action by a
rail carrier is necessary to promote that objective, the
Secretary may submit findings to the Board for action the Board
considers appropriate under existing law.
[(c) Port Infrastructure Development Program.--
[(1) Establishment of program.--The Secretary of
Transportation, through the Maritime Administrator,
shall establish a port infrastructure development
program for the improvement of port facilities as
provided in this subsection.
[(2) Authority of the administrator.--In order to
carry out any project under the program established
under paragraph (1), the Administrator may--
[(A) receive funds provided for the project
from Federal, non-Federal, and private entities
that have a specific agreement or contract with
the Administrator to further the purposes of
this subsection;
[(B) coordinate with other Federal agencies
to expedite the process established under the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) for the improvement of
port facilities to improve the efficiency of
the transportation system, to increase port
security, or to provide greater access to port
facilities;
[(C) seek to coordinate all reviews or
requirements with appropriate local, State, and
Federal agencies; and
[(D) provide such technical assistance and
financial assistance, including grants, to port
authorities or commissions or their
subdivisions and agents as needed for project
planning, design, and construction.
[(3) Port infrastructure development fund.--
[(A) Establishment.--There is a Port
Infrastructure Development Fund for use by the
Administrator in carrying out projects under
the port infrastructure development program.
The Fund shall be available to the
Administrator--
[(i) to administer and carry out
projects under the program;
[(ii) to receive Federal, non-
Federal, and private funds from
entities which have specific agreements
or contracts with the Administrator;
and
[(iii) to make refunds for projects
that will not be completed.
[(B) Credits.--There may be deposited into
the Fund--
[(i) funds from Federal, non-Federal,
and private entities which have
agreements or contracts with the
Administrator and which shall remain in
the Fund until expended or refunded;
and
[(ii) such amounts as may be
appropriated or transferred, subject to
subparagraph (C), to the Fund under
this subsection.
[(C) Transfers.--
[(i) In general.--Subject to clauses
(ii) and (iii), amounts appropriated or
otherwise made available for any fiscal
year for a marine facility or
intermodal facility that includes
maritime transportation may be
transferred, at the option of the
recipient of such amounts, to the Fund
and administered by the Administrator
as a component of a project under the
program.
[(ii) Prohibition on transfers.--
Except as provided in clause (iii), no
funds appropriated or made available
under title 23 or chapter 53 of title
49, United States Code, including funds
from the Highway Trust Fund (section
9503(c) of the Internal Revenue Code of
1986), funds from the Mass Transit
Account of the Highway Trust Fund
(section 9503(e) of Internal Revenue
Code of 1986), and funds provided for
public transportation programs within
the mass transit category (as defined
in section 250(c)(4)(C) of the Balanced
Budget and Emergency Deficit Control
Act of 1985), shall be transferred into
the Fund.
[(iii) Exception.--
[(I) In general.--Amounts
described in subclause (II) are
eligible for transfer into the
Fund if--
[(aa) the recipient
of the amounts has a
specific agreement or
contract with the
Administrator;
[(bb) the Department
of Transportation
agency that administers
the amounts to be
transferred has granted
project approval for
each component of the
project that is to be
funded using such
amounts;
[(cc) the Department
of Transportation
agency that administers
the amounts to be
transferred and the
Maritime Administration
agree to the transfer
through a signed
Memorandum of
Understanding; and
[(dd) the amounts
will be used only to
carry out the project
for which funds were
approved, and in
accordance with any
conditions governing
the amounts under title
23 or chapter 53 of
title 49, United States
Code.
[(II) Amounts described.--The
amounts referred to in
subclause (I) are amounts
appropriated or made
available--
[(aa) for loans, loan
guarantees, or lines of
credit under chapter 6
of title 23, United
States Code, for a
project eligible under
such chapter to
facilitate direct
intermodal exchange,
transfer, and access
into and out of a port
as defined under
section
601(a)(8)(D)(iii) of
such title, as in
effect on the date of
enactment of this
subsection; or
[(bb) for projects
under title XII of
division A of the
American Recovery and
Reinvestment Act of
2009 (Public Law 111-
5).
[(D) Limitation on statutory construction.--
Nothing in this section shall be construed to
alter or otherwise affect existing authorities
to conduct port infrastructure programs in
Hawaii (as authorized by section 9008 of Public
Law 109-59), Alaska (as authorized by section
10205 of Public Law 109-59), or Guam (as
authorized by section 3512 of Public Law 110-
417).
[(4) Authorization of appropriations.--There are
authorized to be appropriated to the Fund such sums as
may be necessary to carry out the program, taking into
account amounts received under paragraph (3)(A)(ii).]
(c) Port and Intermodal Improvement Program.--
(1) General authority.--Subject to the availability
of appropriations, the Secretary of Transportation
shall make grants, on a competitive basis, to eligible
applicants to assist in funding eligible projects for
the purpose of improving the safety, efficiency, or
reliability of the movement of goods through ports and
intermodal connections to ports.
(2) Eligible applicant.--The Secretary may make a
grant under this subsection to the following:
(A) A State.
(B) A political subdivision of a State or
local government.
(C) A public agency or publicly chartered
authority established by 1 or more States.
(D) A special purpose district with a
transportation function.
(E) A multistate or multijurisdictional group
of entities described in this subsection.
(F) A lead entity described in subparagraph
(A), (B), (C), (D), or (E) jointly with a
private entity or group of private entities.
(3) Eligible projects.--The Secretary may make a
grant under this subsection--
(A) for a project that--
(i) is either--
(I) within the boundary of a
port; or
(II) outside the boundary of
a port, but is directly related
to port operations or to an
intermodal connection to a
port; and
(ii) will be used to improve the
safety, efficiency, or reliability of--
(I) the loading and unloading
of goods at the port, such as
for marine terminal equipment;
(II) the movement of goods
into, out of, around, or within
a port, such as for highway or
rail infrastructure, intermodal
facilities, freight intelligent
transportation systems, and
digital infrastructure systems;
or
(III) the movement of vessels
in and out of the port facility
by dredging a vessel berthing
area that is not part of a
Federal channel or an access
channel associated with a
Federal channel; or
(B) notwithstanding paragraph (6)(A)(v), to
provide financial assistance to 1 or more
projects under subparagraph (A) for development
phase activities, including planning,
feasibility analysis, revenue forecasting,
environmental review, permitting, and
preliminary engineering and design work.
(4) Prohibited uses.--A grant award under this
subsection may not be used--
(A) to finance or refinance the construction,
reconstruction, reconditioning, or purchase of
a vessel that is eligible for such assistance
under chapter 537, unless the Secretary
determines such vessel--
(i) is necessary for a project
described in paragraph (3)(A)(ii)(III)
of this subsection; and
(ii) is not receiving assistance
under chapter 537; or
(B) for any project within a small shipyard
(as defined in section 54101).
(5) Applications and process.--
(A) Applications.--To be eligible for a grant
under this subsection, an eligible applicant
shall submit to the Secretary an application in
such form, at such time, and containing such
information as the Secretary considers
appropriate.
(B) Solicitation process.--Not later than 30
days after the date that amounts are made
available for grants under this subsection for
a fiscal year, the Secretary shall solicit
grant applications for eligible projects in
accordance with this subsection.
(6) Project selection criteria.--
(A) In general.--The Secretary may select a
project described in paragraph (3) for funding
under this subsection if the Secretary
determines that--
(i) the project improves the safety,
efficiency, or reliability of the
movement of goods through a port or
intermodal connection to a port;
(ii) the project is cost-effective;
(iii) the eligible applicant has
authority to carry out the project;
(iv) the eligible applicant has
sufficient funding available to meet
the matching requirements under
paragraph (8);
(v) the project will be completed
without unreasonable delay; and
(vi) the project cannot be easily and
efficiently completed without Federal
funding or financial assistance
available to the project sponsor.
(B) Additional considerations.--In selecting
projects described in paragraph (3) for funding
under this subsection, the Secretary shall give
substantial weight to--
(i) the utilization of non-Federal
contributions; and
(ii) the net benefits of the funds
awarded under this subsection,
considering the cost-benefit analysis
of the project, as applicable.
(C) Small projects.--The Secretary may waive
the cost-benefit analysis under subparagraph
(A)(ii), and establish a simplified,
alternative basis for determining whether a
project is cost-effective, for a small project
described in paragraph (7)(B).
(7) Allocation of funds.--
(A) Geographic distribution.--Not more than
25 percent of the amounts made available for
grants under this subsection for a fiscal year
may be used to make grants for projects in any
1 State.
(B) Small projects.--The Secretary shall
reserve 25 percent of the amounts made
available for grants under this subsection each
fiscal year to make grants for eligible
projects described in paragraph (3)(A) that
request the lesser of--
(i) 10 percent of the amounts made
available for grants under this
subsection for a fiscal year; or
(ii) $1,000,000.
(C) Dredging projects.--Not more than 25
percent of the amounts made available for
grants under this subsection for a fiscal year
may be used to make grants for projects
described in paragraph (3)(A)(ii)(III).
(D) Development phase activities.--Not more
than 10 percent of the amounts made available
for grants under this subsection for a fiscal
year may be used to make grants for development
phase activities under paragraph (3)(B).
(8) Federal share of total project costs.--
(A) Total project costs.--To be eligible for
a grant under this subsection, an eligible
applicant shall submit to the Secretary an
estimate of the total costs of a project under
this subsection based on the best available
information, including any available
engineering studies, studies of economic
feasibility, environmental analyses, and
information on the expected use of equipment or
facilities.
(B) Federal share.--
(i) In general.--Except as provided
in clauses (ii) and (iii), the Federal
share of the total costs of a project
under this subsection shall not exceed
80 percent.
(ii) Dredging projects.--The Federal
share of the total costs of a project
described in paragraph (3)(A)(ii)(III)
shall not exceed 50 percent.
(iii) Rural areas.--The Secretary may
increase the Federal share of costs
above 80 percent for a project located
in a rural area.
(9) Procedural safeguards.--The Secretary shall issue
guidelines to establish appropriate accounting,
reporting, and review procedures to ensure that--
(A) grant funds are used for the purposes for
which they were made available;
(B) each grantee properly accounts for all
expenditures of grant funds; and
(C) grant funds not used for such purposes
and amounts not obligated or expended are
returned.
(10) Grant conditions.--The Secretary shall require
as a condition of making a grant under this subsection
that a grantee--
(A) maintain such records as the Secretary
considers necessary;
(B) make the records described in
subparagraph (A) available for review and audit
by the Secretary; and
(C) periodically report to the Secretary such
information as the Secretary considers
necessary to assess progress.
(11) Congressional notification.--
(A) Notification.--At least 60 days before
making a grant for a project under this
section, the Secretary shall notify, in
writing, the Committee on Commerce, Science,
and Transportation of the Senate and the
Committee on Transportation and Infrastructure
of the House of Representatives of the proposed
grant.
(B) Contents.--Each notification under
subparagraph (A) shall include--
(i) an evaluation of and
justification for the project; and
(ii) the amount of the proposed grant
award.
(C) Congressional disapproval.--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 subparagraph
(A).
(12) Limitation on statutory construction.--Nothing
in this subsection may be construed to affect existing
authorities to conduct port infrastructure programs
in--
(A) Hawaii, as authorized by section 9008 of
the SAFETEA-LU Act (Public Law 109-59; 119
Stat. 1926);
(B) Alaska, as authorized by section 10205 of
the SAFETEA-LU Act (Public Law 109-59; 119
Stat. 1934); or
(C) Guam, as authorized by section 3512 of
the Duncan Hunter National Defense
Authorization Act for Fiscal Year 2009 (48
U.S.C. 1421r).
(13) Reports.--The Secretary shall make available on
the website of the Department of Transportation at the
end of each fiscal year an annual report that lists
each project for which a grant has been provided under
this subsection during that fiscal year.
(14) Administration.--
(A) Administrative and oversight costs.--The
Secretary may retain not more than 1 percent of
the amounts appropriated for each fiscal year
under this subsection for the administrative
and oversight costs incurred by the Secretary
to carry out this subsection.
(B) Availability.--
(i) In general.--Amounts appropriated
for carrying out this subsection shall
remain available until expended.
(ii) Unexpended funds.--Amounts
awarded as a grant under this
subsection that are not expended by the
grantee during the 4-year period
following the date of the award shall
remain available to the Secretary for
use for grants under this subsection in
a subsequent fiscal year.
(15) Definitions.--In this subsection:
(A) Appropriate committees of congress.--The
term ``appropriate committees of Congress''
means--
(i) the Committee on Commerce,
Science, and Transportation of the
Senate; and
(ii) the Committee on Transportation
and Infrastructure of the House of
Representatives.
(B) Port.--The term ``port'' includes--
(i) a sea port; and
(ii) an inland waterways port.
(C) Project.--The term ``project'' includes
construction, reconstruction, rehabilitation,
acquisition of property, including land related
to the project and improvements to the land,
equipment acquisition, and operational
improvements.
(D) Rural area.--The term ``rural area''
means an area that is outside an urbanized
area.
(d) Additional Authority of the Secretary.--In carrying out
this section, the Secretary may--
(1) receive funds from a Federal or non-Federal
entity that has a specific agreement with the Secretary
to further the purposes of this section;
(2) coordinate with other Federal agencies to
expedite the process established under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) for the improvement of port facilities to improve
the efficiency of the transportation system, to
increase port security, or to provide greater access to
port facilities;
(3) seek to coordinate all reviews or requirements
with appropriate local, State, and Federal agencies;
and
(4) in addition to any financial assistance provided
under subsection (c), provide such technical assistance
to port authorities or commissions or their
subdivisions and agents as needed for project planning,
design, and construction.
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