(a) Consent to Multi-State Freight Mobility Compacts.—Congress recognizes the right of States, cities, regional planning organizations, federally recognized Indian Tribes, and local public authorities (including public port authorities) that are regionally linked with an interest in a specific nationally or regionally significant multi-State freight corridor to enter into multi-State compacts to promote the improved mobility of goods, including—

(1) identifying projects along the corridor that benefit multiple States;

(2) assembling rights-of-way; and

(3) performing capital improvements.

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(b) Financing.—A multi-State freight compact established by entities under subsection (a) may provide that, in order to carry out the compact, the relevant States or other entities may—

(1) accept contributions from a unit of State or local government;

(2) use any Federal or State funds made available for freight mobility infrastructure planning or construction, including applying for grants;

(3) subject to such terms and conditions as the States consider to be advisable—

(A) borrow money on a short-term basis; and

(B) issue—

(i) notes for borrowing under subparagraph (A); and

(ii) bonds; and

(4) obtain financing by other means permitted under applicable Federal or State law.

(c) Advisory Committees.—

(1) In general.—A multi-State freight compact under this section may establish a multi-State freight corridor advisory committee, which shall include representatives of State departments of transportation and other public and private sector entities with an interest in freight mobility, such as—

(A) ports;

(B) freight railroads;

(C) shippers;

(D) carriers;

(E) freight-related associations;

(F) third-party logistics providers;

(G) the freight industry workforce;

(H) environmental organizations;

(I) community organizations; and

(J) units of local government.

(2) Activities.—An advisory committee established under paragraph (1) may—

(A) advise the parties to the applicable multi-State freight compact with respect to freight-related priorities, issues, projects, and funding needs that impact multi-State—

(i) freight mobility; and

(ii) supply chains;

(B) serve as a forum for States, Indian Tribes, and other public entities to discuss decisions affecting freight mobility;

(C) communicate and coordinate multi-State freight priorities with other organizations;

(D) promote the sharing of information between the private and public sectors with respect to freight issues; and

(E) provide information for consideration in the development of State freight plans under section 70202.

(d) Grants.—

(1) Establishment.—The Secretary of Transportation (referred to in this section as the “Secretary”) shall establish a program under which the Secretary shall provide grants to multi-State freight compacts, or States seeking to form a multi-State freight compact, that seek to improve a route or corridor that is a part of the National Multimodal Freight Network established under section 70103.

(2) New compacts.—

(A) In general.—To incentivize the establishment of multi-State freight compacts, the Secretary may award a grant for operations costs in an amount of not more than $2,000,000 to—

(i) a multi-State freight compact established under subsection (a) during the 2-year period beginning on the date of establishment of the multi-State freight compact; or

(ii) States seeking to form a multi-State freight compact described in that subsection.

(B) Eligibility.—

(i) New multi-state freight compacts.—A multi-State freight compact shall be eligible for a grant under this paragraph only during the initial 2 years of operation of the compact.

(ii) States seeking to form a compact.—States seeking to form a multi-State freight compact shall be eligible for a grant under this paragraph during—

(I) the 2-year period beginning on the date on which an application for a grant under this paragraph with respect to the proposed compact is submitted to the Secretary; or

(II) if the compact is formed before the date on which a grant under this paragraph is awarded in accordance with subclause (I), the initial 2 years of operation of the compact.

(C) Requirements.—To be eligible to receive a grant under this paragraph, a multi-State freight compact or the applicable States seeking to form a multi-State freight compact shall—

(i) submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require;

(ii) provide a non-Federal match equal to not less than 25 percent of the operating costs of the multi-State freight compact; and

(iii) commit to establishing a multi-State freight corridor advisory committee under subsection (c)(1) during the initial 2-year period of operation of the compact.

(3) Existing compacts.—

(A) In general.—The Secretary may award a grant to multi-State freight compacts that are not eligible to receive a grant under paragraph (2) for operations costs in an amount of not more than $1,000,000.

(B) Requirements.—To be eligible to receive a grant under this paragraph, a multi-State freight compact shall—

(i) submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require;

(ii) provide a non-Federal match of not less than 50 percent of the operating costs of the compact; and

(iii) demonstrate that the compact has established a multi-State freight corridor advisory committee under subsection (c)(1).

(4) Authorization of appropriations.—There is authorized to be appropriated to the Secretary $5,000,000 for each fiscal year to carry out this subsection.