; or (B) an issue or challenge that the Secretary determines to be important. (3) Eligible entities An entity eligible to submit a research proposal under the pilot program under paragraph (1) is— (A) a State; (B) a unit of local government; (C) a university transportation center under section 5505 of title 49, United States Code; (D) a private nonprofit organization; (E) a private sector organization working in collaboration with an entity described in subparagraphs (A) through (D); and (F) any other individual or entity that the Secretary determines to be appropriate. (4) Project review The Secretary shall— (A) review each research proposal submitted under the pilot program under paragraph (1); and (B) provide to the eligible entity a written notice that— (i) if the research proposal is not selected— (I) notifies the eligible entity that the research proposal has not been selected for funding; (II) provides an explanation as to why the research proposal was not selected, including if the research proposal does not cover an area of need; and (III) if applicable, recommend that the research proposal be submitted to another research program and provide guidance and direction to the eligible entity and the proposed research program office; and (ii) if the research proposal is selected, notifies the eligible entity that the research proposal has been selected for funding. (5) Federal share (A) In general The Federal share of the cost of an activity carried out under this subsection shall not exceed 80 percent. (B) Non-federal share All costs directly incurred by the non-Federal partners, including personnel, travel, facility, and hardware development costs, shall be credited toward the non-Federal share of the cost of an activity carried out under this subsection. (f) Conforming amendment Section 167 of title 23, United States Code, is amended— (1) by striking subsection (h)