Strategic Innovation for Revenue Collection (SIRC)

Note: Except as indicated, all references in this document are to the Bipartisan Infrastructure Law (BIL), enacted as the Infrastructure Investment and Jobs Act, Pub. L. 117-58 (Nov. 15, 2021).

* The BIL repealed section 6020 of the FAST Act, the Surface Transportation Systems Funding Alternatives (STSFA) program, which had many similar characteristics to the new SIRC program [§ 13001(f)].

Program Purpose

The BIL establishes the SIRC program to provide discretionary grants to test the feasibility of a road usage fee and other user-based alternative revenue mechanisms (referred to in section 13001 as “user-based alternative revenue mechanisms”) to help maintain the long-term solvency of the Highway Trust Fund through pilot projects at the State, local, and regional level.

Statutory Citations

• § 13001

Funding Features

Type of Budget Authority or Authorization of Appropriations

• Contract authority from the Highway Account of the Highway Trust Fund, subject to the overall Federal-aid obligation limitation.

Source of funding

• The BIL funds the program through a set-aside from funding made available to carry out the Highway Research and Development Program in 23 U.S.C 503(b). [§ 13001(e)(1)]

Federal Share

The Federal share of the cost of a pilot project carried out under the program may not exceed:

• 80% of the total cost of a project carried out by an eligible entity that has not otherwise received a grant under this program; [§ 13001(b)(7)(A)] and
• 70% of the total cost of a project carried out by an eligible entity that has received at least 1 grant under this program. [§ 13001(b)(7)(B)]

Eligible Entities

• A State or a group of States;
• A local government or a group of local governments; or
• A metropolitan planning organization (MPO) or a group of MPOs (as defined in 23 U.S.C. 134(b)(2)). [§ 13001(b)(4)]

Project Objectives

The BIL requires the Secretary to ensure that, in the aggregate, pilot projects carried out using these program funds meet the following objectives--

• To test the design, acceptance, equity, and implementation of user-based alternative revenue mechanisms, including among—
  • differing income groups; and
  • rural and urban drivers, as applicable.
• To provide recommendations regarding adoption and implementation of user-based alternative revenue mechanisms.
• To quantify and minimize the administrative costs of any potential user-based alternative revenue mechanisms.
• To test a variety of solutions, including the use of independent and private third-party vendors, for the collection of data and fees from user-based alternative revenue mechanisms, including the reliability and security of those solutions and vendors.
• To test solutions to ensure the privacy and security of data collected for the purpose of implementing a user-based alternative revenue mechanism.
• To conduct public education and outreach to increase public awareness regarding the need for user-based alternative revenue mechanisms for surface transportation programs.
• To evaluate the ease of compliance and enforcement of a variety of implementation approaches for different users of the surface transportation system.
• To ensure, to the greatest extent practicable, the use of innovation.
• To consider, to the greatest extent practicable, the potential for revenue collection along a network of alternative fueling stations.
• To evaluate the impacts of the imposition of a user-based alternative revenue mechanism on—
  • transportation revenues;
  • personal mobility, driving patterns, congestion, and transportation costs; and
  • freight movement and costs.
• To evaluate options for the integration of a user-based alternative revenue mechanism with—
  • nationwide transportation revenue collections and regulations;
  • toll revenue collection platforms;
  • transportation network company fees; and
  • any other relevant transportation revenue mechanisms. [§ 13001(b)(3)]

Program Features

This is a new program established under BIL.

Use of funds

• An eligible entity that receives a grant under this program shall use the grant to carry out a pilot project to address 1 or more of the objectives described above. [§ 13001(b)(5)]

Consideration

• The Secretary shall consider geographic diversity in awarding grants under the program. [§ 13001(b)(6)]

Limitation on revenue collected

• Any revenue collected through a user-based alternative revenue mechanism established using funds provided under this program shall not be considered a toll under section 301 of title 23, United States Code. [§ 13001(c)]

Flexibility

• If the Secretary determines, by August 1^st of each fiscal year, that there are not enough grant applications to meet the requirements of this program for that fiscal year, the Secretary shall transfer to the National Motor Vehicle Per-Mile User Fee Pilot program under BIL section 13002 or to the Highway Research and Development program under section 503(b) of title 23, United States Code—
  • any funds reserved to carry out this program for each of fiscal years 2022 through 2026 that the Secretary has not yet awarded; and
  • an amount of obligation limitation equal to the amount of funds that the Secretary transfers. [§ 13001(e)(2)]

Additional Information and Assistance

• FHWA can connect you with your local FHWA office and support you with technical assistance for planning, design, construction, preserving, and improving public roads and in the stewardship of Federal funds. For assistance, visit: https://www.fhwa.dot.gov/bipartisan-infrastructure-law/technical_support.cfm.