109th CONGRESS
2d Session
S. 2512
To empower States with authority for most taxing and spending for
highway programs and mass transit programs, and for other purposes.
IN THE SENATE OF THE UNITED STATES
April 5, 2006
Mr. DEMINT introduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To empower States with authority for most taxing and spending for
highway programs and mass transit programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Transportation Empowerment Act'.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings- Congress finds that--
(1) the objective of the Federal highway program has been to facilitate
the construction of a modern freeway system that promotes efficient interstate
commerce by connecting all States;
(2) that objective has been attained, and the Interstate System connecting
all States is near completion;
(3) each State has the responsibility of providing an efficient transportation
network for the residents of the State;
(4) each State has the means to build and operate a network of transportation
systems, including highways, that best serves the needs of the State;
(5) each State is best capable of determining the needs of the State and
acting on those needs;
(6) the Federal role in highway transportation has, over time, usurped
the role of the States by taxing motor fuels used in the States and then
distributing the proceeds to the States based on the Federal Government's
perceptions of what is best for the States;
(7) the Federal Government has used the Federal motor fuels tax revenues
to force all States to take actions that are not necessarily appropriate
for individual States;
(8) the Federal distribution, review, and enforcement process wastes billions
of dollars on unproductive activities;
(9) Federal mandates that apply uniformly to all 50 States, regardless
of the different circumstances of the States, cause the States to waste
billions of hard-earned tax dollars on projects, programs, and activities
that the States would not otherwise undertake; and
(10) Congress has expressed a strong interest in reducing the role of
the Federal Government by allowing each State to manage its own affairs.
(b) Purposes- The purposes of this Act are--
(1) to return to the individual States maximum discretionary authority
and fiscal responsibility for all elements of the national surface transportation
systems that are not within the direct purview of the Federal Government;
(2) to preserve Federal responsibility for the Dwight D. Eisenhower National
System of Interstate and Defense Highways;
(3) to preserve the responsibility of the Department of Transportation
for--
(A) design, construction, and preservation of transportation facilities
on Federal public land;
(B) national programs of transportation research and development and
transportation safety; and
(C) emergency assistance to the States in response to natural disasters;
(4) to eliminate to the maximum extent practicable Federal obstacles to
the ability of each State to apply innovative solutions to the financing,
design, construction, operation, and preservation of Federal and State
transportation facilities; and
(5) with respect to transportation activities carried out by States, local
governments, and the private sector, to encourage--
(A) competition among States, local governments, and the private sector;
and
(B) innovation, energy efficiency, private sector participation, and
productivity.
SEC. 3. CONTINUATION OF FUNDING FOR CORE HIGHWAY PROGRAMS.
(1) FUNDING- For the purpose of carrying out title 23, United States Code,
the following sums are authorized to be appropriated out of the Highway
Trust Fund:
(A) INTERSTATE MAINTENANCE PROGRAM- For the Interstate maintenance program
under section 119 of title 23, United States Code, $5,200,000,000 for
fiscal year 2010, $5,280,000,000 for fiscal year 2011, $5,360,000,000
for fiscal year 2012, $5,440,000,000 for fiscal year 2013, and $5,520,000,000
for fiscal year 2014.
(B) EMERGENCY RELIEF- For emergency relief under section 125 of that
title, $100,000,000 for each of fiscal years 2010 through 2014.
(C) INTERSTATE BRIDGE PROGRAM- For the Interstate bridge program under
section 144 of that title, $2,527,000,000 for fiscal year 2010, $2,597,000,000
for fiscal year 2011, $2,667,000,000 for fiscal year 2012, $2,737,000,000
for fiscal year 2013, and $2,807,000,000 for fiscal year 2014.
(D) FEDERAL LANDS HIGHWAYS PROGRAM-
(i) INDIAN RESERVATION ROADS- For Indian reservation roads under section
204 of that title, $470,000,000 for fiscal year 2010, $510,000,000
for fiscal year 2011, $550,000,000 for fiscal year 2012, $590,000,000
for fiscal year 2013, and $630,000,000 for fiscal year 2014.
(ii) PUBLIC LANDS HIGHWAYS- For public lands highways under section
204 of that title, $300,000,000 for fiscal year 2010, $310,000,000
for fiscal year 2011, $320,000,000 for fiscal year 2012, $330,000,000
for fiscal year 2013, and $340,000,000 for fiscal year 2014.
(iii) PARKWAYS AND PARK ROADS- For parkways and park roads under section
204 of that title, $255,000,000 for fiscal year 2010, $270,000,000
for fiscal year 2011, $285,000,000 for fiscal year 2012, $300,000,000
for fiscal year 2013, and $315,000,000 for fiscal year 2014.
(iv) REFUGE ROADS- For refuge roads under section 204 of that title,
$32,000,000 for each of fiscal years 2010 through 2014.
(E) HIGHWAY SAFETY PROGRAMS-
(i) IN GENERAL- For highway safety programs under section 402 of that
title, $170,000,000 for each of fiscal years 2010 through 2014.
(ii) HIGHWAY SAFETY RESEARCH AND DEVELOPMENT- For highway safety research
and development under section 403 of that title, $35,000,000 for each
of fiscal years 2010 through 2014.
(F) SURFACE TRANSPORTATION RESEARCH- For cooperative agreements with
nonprofit research organizations to carry out applied pavement research
under section 502 of that title, $200,000,000 for each of fiscal years
2010 through 2014.
(G) ADMINISTRATIVE EXPENSES- For administrative expenses incurred in
carrying out the programs referred to in subparagraphs (A) through (F),
$92,890,000 for fiscal year 2010, $95,040,000 for fiscal year 2011,
$97,190,000 for fiscal year 2012, $99,340,000 for fiscal year 2013,
and $101,490,000 for fiscal year 2014.
(2) TRANSFERABILITY OF FUNDS- Section 104 of title 23, United States Code,
is amended by striking subsection (g) and inserting the following:
`(g) Transferability of Funds-
`(1) IN GENERAL- To the extent that a State determines that funds made
available under this title to the State for a purpose are in excess of
the needs of the State for that purpose, the State may transfer the excess
funds to, and use the excess funds for, any surface transportation (including
mass transit and rail) purpose in the State.
`(2) ENFORCEMENT- If the Secretary determines that a State has transferred
funds under paragraph (1) to a purpose that is not a surface transportation
purpose as described in paragraph (1), the amount of the improperly transferred
funds shall be deducted from any amount the State would otherwise receive
from the Highway Trust Fund for the fiscal year that begins after the
date of the determination.'.
(3) FEDERAL-AID SYSTEM- Section 103(a) of title 23, United States Code,
is amended by striking `systems are the Interstate System and the National
Highway System' and inserting `system is the Interstate System'.
(4) INTERSTATE MAINTENANCE PROGRAM- Section 104(b) of title 23, United
States Code, is amended by striking paragraph (4) and inserting the following:
`(4) INTERSTATE MAINTENANCE COMPONENT- For each of fiscal years 2010 through
2014, for the Interstate maintenance program under section 119, 1 percent
to the Virgin Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands and the remaining 99 percent apportioned as follows:
`(A)(i) For each State with an average population density of 20 persons
or fewer per square mile, and each State with a population of 1,500,000
persons or fewer and with a land area of 10,000 square miles or less,
the greater of--
`(I) a percentage share of apportionments equal to the percentage
for the State described in clause (ii); or
`(II) a share determined under subparagraph (B).
`(ii) The percentage referred to in clause (i)(I) for a State for a
fiscal year shall be the percentage calculated for the State for the
fiscal year under section 105(b) of title 23, United States Code.
`(B) For each State not described in subparagraph (A), a share of the
apportionments remaining determined in accordance with the following
formula:
`(i) 1/9 in the ratio that the total rural lane miles in each State
bears to the total rural lane miles in all States with an average
population density greater than 20 persons per square mile and all
States with a population of more than 1,500,000 persons and with a
land area of more than 10,000 square miles.
`(ii) 1/9 in the ratio that the total rural vehicle miles traveled
in each State bears to the total rural vehicle miles traveled in all
States described in clause (i).
`(iii) 2/9 in the ratio that the total urban lane miles in each State
bears to the total urban lane miles in all States described in clause
(i).
`(iv) 2/9 in the ratio that the total urban vehicle miles traveled
in each State bears to the total urban vehicle miles traveled in all
States described in clause (i).
`(v) 3/9 in the ratio that the total diesel fuel used in each State
bears to the total diesel fuel used in all States described in clause
(i).'.
(5) INTERSTATE BRIDGE PROGRAM- Section 144 of title 23, United States
Code, is amended--
(i) by inserting `on the Federal-aid system or described in subsection
(c)(3)' after `highway bridge' each place it appears; and
(ii) by inserting `on the Federal-aid system or described in subsection
(c)(3)' after `highway bridges' each place it appears;
(B) in the second sentence of subsection (e)--
(i) in paragraph (1), by adding `and' at the end;
(ii) in paragraph (2), by striking the comma at the end and inserting
a period; and
(iii) by striking paragraphs (3) and (4);
(C) in the first sentence of subsection (l), by inserting `on the Federal-aid
system or described in subsection (c)(3)' after `any bridge';
(D) in subsection (m)(1), by inserting `on the Federal-aid system or
described in subsection (c)(3)' after `construct any bridge'; and
(E) in the first sentence of subsection (n), by inserting `for each
of fiscal years 1991 through 2009,' after `of law,'.
(6) NATIONAL DEFENSE HIGHWAYS- Section 311 of title 23, United States
Code, is amended--
(A) in the first sentence, by striking `under subsection (a) of section
104 of this title' and inserting `to carry out this section'; and
(B) by striking the second sentence.
(7) TOLLING- Notwithstanding title 23, United States Code, or any other
provision of law, as of October 1, 2009, there shall be no restriction
on the ability of a State, as part of any highway improvement project--
(A) to impose and collect a toll on any highway in the State that, as
of that date, is part of the Interstate System;
(B) to use revenue from such a toll for any purpose that the State determines
to be appropriate; or
(C) to have toll revenue credited toward a non-Federal cost share required
for receipt of Federal funds.
(8) FEDERALIZATION AND DEFEDERALIZATION OF PROJECTS- Notwithstanding any
other provision of law, beginning on October 1, 2009--
(A) a highway construction or improvement project shall not be considered
to be a Federal highway construction or improvement project unless and
until a State expends Federal funds for the construction portion of
the project;
(B) a highway construction or improvement project shall not be considered
to be a Federal highway construction or improvement project solely by
reason of the expenditure of Federal funds by a State before the construction
phase of the project to pay expenses relating to the project, including
for any environmental document or design work required for the project;
and
(C)(i) a State may, after having used Federal funds to pay all or a
portion of the costs of a highway construction or improvement project,
reimburse the Federal Government in an amount equal to the amount of
Federal funds so expended; and
(ii) after completion of a reimbursement described in clause (i), a
highway construction or improvement project described in that clause
shall no longer be considered to be a Federal highway construction or
improvement project.
(9) REPORTING REQUIREMENTS- No reporting requirement, other than a reporting
requirement in effect as of the date of enactment of this Act, shall apply
on or after October 1, 2009, to the use of Federal funds for highway projects
by a public-private partnership.
(b) Expenditures From Highway Trust Fund-
(1) EXPENDITURES FOR CORE PROGRAMS- Section 9503(c) of the Internal Revenue
Code of 1986 (relating to expenditures from Highway Trust Fund) is amended--
(A) in paragraph (1), by striking `Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users' and inserting `Transportation
Empowerment Act';
(B) in paragraph (1), by striking `2009' both places it appears and
inserting `2014';
(C) in paragraphs (2)(A)(i)(III), (2)(A)(ii), (4)(A)(i), (5)(A), and
(6), by striking `October 1, 2011' each place it appears and inserting
`October 1, 2016'; and
(D) in paragraphs (2)(A)(i) and (3), by striking `July 1, 2012' each
place it appears and inserting `July 1, 2017'.
(2) AMOUNTS AVAILABLE FOR CORE PROGRAM EXPENDITURES- Section 9503 of such
Code (relating to the Highway Trust Fund) is amended by adding at the
end the following:
`(g) Core Programs Financing Rate- For purposes of this section--
`(1) IN GENERAL- Except as provided in paragraph (2)--
`(A) in the case of gasoline and special motor fuels the tax rate of
which is the rate specified in section 4081(a)(2)(A)(i), the core programs
financing rate is--
`(i) after September 30, 2009, and before October 1, 2010, 18.3 cents
per gallon,
`(ii) after September 30, 2010, and before October 1, 2011, 9.6 cents
per gallon,
`(iii) after September 30, 2011, and before October 1, 2012, 6.4 cents
per gallon,
`(iv) after September 30, 2012, and before October 1, 2013, 5.0 cents
per gallon, and
`(v) after September 30, 2013, 3.7 cents per gallon, and
`(B) in the case of kerosene, diesel fuel, and special motor fuels the
tax rate of which is the rate specified in section 4081(a)(2)(A)(iii),
the core programs financing rate is--
`(i) after September 30, 2009, and before October 1, 2010, 24.3 cents
per gallon,
`(ii) after September 30, 2010, and before October 1, 2011, 12.7 cents
per gallon,
`(iii) after September 30, 2011, and before October 1, 2012, 8.5 cents
per gallon,
`(iv) after September 30, 2012, and before October 1, 2013, 6.6 cents
per gallon, and
`(v) after September 30, 2013, 5.0 cents per gallon.
`(2) APPLICATION OF RATE- In the case of fuels used as described in paragraph
(4)(C), (5)(B), and (6) of subsection (c), the core programs financing
rate is zero.'.
(c) Termination of Transfers to Mass Transit Account-
(1) IN GENERAL- Section 9503(e)(2) of the Internal Revenue Code of 1986
(relating to Mass Transit Account) is amended by inserting `, and before
October 1, 2009' after `March 31, 1983'.
(2) AUTHORIZATION TO EXPEND REMAINING BALANCES IN ACCOUNT- Section 9503(e)(3)
of such Code is amended by striking `before October 1, 2009'.
(d) Effective Date- The amendments made by this section take effect on October
1, 2009.
SEC. 4. INFRASTRUCTURE SPECIAL ASSISTANCE FUND.
(a) Balance of Core Programs Financing Rate Deposited in Fund- Section 9503
of the Internal Revenue Code of 1986 (as amended by section 3(b)(2)) is
amended by adding at the end the following:
`(h) Establishment of Infrastructure Special Assistance Fund-
`(1) CREATION OF FUND- There is established in the Highway Trust Fund
a separate fund to be known as the `Infrastructure Special Assistance
Fund' consisting of such amounts as may be transferred or credited to
the Infrastructure Special Assistance Fund as provided in this subsection
or section 9602(b).
`(2) TRANSFERS TO INFRASTRUCTURE SPECIAL ASSISTANCE FUND- On the first
day of each fiscal year, the Secretary, in consultation with the Secretary
of Transportation, shall determine the excess (if any) of--
`(i) the amounts appropriated in such fiscal year to the Highway Trust
Fund under subsection (b) which are attributable to the core programs
financing rate for such year, plus
`(ii) the amounts appropriated in such fiscal year to the Highway
Trust Fund under subsection (b) which are attributable to taxes under
sections 4051, 4061, 4071, and 4481 for such year, over
`(B) the amount appropriated under subsection (c) for such fiscal year,
and shall transfer such excess to the Infrastructure Special Assistance
Fund.
`(3) EXPENDITURES FROM INFRASTRUCTURE SPECIAL ASSISTANCE FUND-
`(A) TRANSITIONAL ASSISTANCE-
`(i) IN GENERAL- Except as provided in clause (iv), during fiscal
years 2010 through 2013, $1,000,000,000 in the Infrastructure Special
Assistance Fund shall be available to States for transportation-related
program expenditures.
`(I) IN GENERAL- Except as provided in clause (v), each State is
entitled to a share of the amount specified in clause (i) upon enactment
of legislation providing 1 of the 2 funding mechanisms described
in clause (iii).
`(II) DETERMINATION OF STATE SHARE- For purposes of subclause (I),
each State's share shall be determined in the following manner:
`(aa) Multiply the percentage of the amounts appropriated in the
latest fiscal year for which such data are available to the Highway Trust
Fund under subsection (b) which is attributable to taxes paid by highway
users in the State, by the amount specified in clause (i). If the result
does not exceed $15,000,000, the State's share equals $15,000,000. If the
result exceeds $15,000,000, the State's share is determined under item (bb).
`(bb) Multiply the percentage determined under item (aa), by the
amount specified in clause (i) reduced by an amount equal to $15,000,000
times the number of States the share of which is determined under item (aa).
`(iii) LEGISLATIVE FUNDING MECHANISMS- A funding mechanism is described
in this clause as follows:
`(I) A funding mechanism which results in revenues for transportation-related
projects in the State for fiscal year 2014 and each succeeding fiscal
year which are equal to the excess of--
`(aa) the mean annual average of distributions from the Highway
Trust Fund to the State for fiscal years 2004 through 2009; over
`(bb) the distributions from the Highway Trust Fund to the State
for such fiscal year attributable to the core programs financing rate for
such year.
`(II) A funding mechanism which results in an increase in the State
rate of tax on motor fuels equal to the decrease in the rate of
tax on such fuels under section 4081 for fiscal year 2014 and any
succeeding fiscal year.
`(iv) DISTRIBUTION OF REMAINING AMOUNT- If after September 30, 2013,
a portion of the amount specified in clause (i) remains, the Secretary,
in consultation with the Secretary of Transportation, shall, on October
1, 2013, apportion the portion among the States which received a share
of such amount under clause (ii) and which are not described in clause
(v) using the percentages determined under clause (ii)(II)(aa) for
such States.
`(v) ENFORCEMENT OF FUNDING MECHANISM REQUIREMENT- If a State, which
enacted legislation providing for a funding mechanism described in
clause (iii), terminates such mechanism before fiscal year 2013, the
State's share determined under clauses (ii) and (iv) shall be deducted
from any amount the State would otherwise receive from the Highway
Trust Fund for fiscal year 2013.
`(B) ADDITIONAL EXPENDITURES FROM FUND-
`(i) IN GENERAL- Amounts in the Infrastructure Special Assistance
Fund, in excess of the amount specified in subparagraph (A)(i), shall
be available, as provided by appropriation Acts, to the States for
any surface transportation (including mass transit and rail) purpose
in such States, and the Secretary shall apportion such excess amounts
among all States using the percentages determined under clause (ii)(II)(aa)
for such States.
`(ii) ENFORCEMENT- If the Secretary determines that a State has used
amounts under clause (i) for a purpose which is not a surface transportation
purpose as described in clause (i), the improperly used amounts shall
be deducted from any amount the State would otherwise receive from
the Highway Trust Fund for the fiscal year which begins after the
date of the determination.'.
(b) Effective Date- The amendment made by this section takes effect on October
1, 2009.
SEC. 5. RETURN OF EXCESS TAX RECEIPTS TO STATES.
(a) In General- Section 9503(c) of the Internal Revenue Code of 1986 is
amended by redesignating paragraph (7) (as added by section 11161(c)(1)
of the Safe, Accountable, Flexible, Efficient Transportation Equity Act:
A Legacy for Users) as paragraph (6) and by adding at the end the following:
`(7) RETURN OF EXCESS TAX RECEIPTS TO STATES FOR SURFACE TRANSPORTATION
PURPOSES-
`(A) IN GENERAL- On the first day of each of fiscal years 2010, 2011,
2012, and 2013, the Secretary, in consultation with the Secretary of
Transportation, shall--
`(i) determine the excess (if any) of--
`(I) the amounts appropriated in such fiscal year to the Highway
Trust Fund under subsection (b) which are equivalent to the taxes
attributable to the excess of--
`(aa) the Highway Trust Fund financing rate for such year, over
`(bb) the core programs financing rate for such year, over
`(II) the amounts so appropriated which are equivalent to the taxes
described in paragraphs (4)(C), (5)(B), and (6), and
`(ii) allocate the amount determined under clause (i) among the States
(as defined in section 101(a) of title 23, United States Code) for
surface transportation (including mass transit and rail) purposes
so that--
`(I) the percentage of that amount allocated to each State, is equal
to
`(II) the percentage of the amount determined under clause (i)(I)
paid into the Highway Trust Fund in the latest fiscal year for which
such data are available which is attributable to highway users in
the State.
`(B) ENFORCEMENT- If the Secretary determines that a State has used
amounts under subparagraph (A) for a purpose which is not a surface
transportation purpose as described in subparagraph (A), the improperly
used amounts shall be deducted from any amount the State would otherwise
receive from the Highway Trust Fund for the fiscal year which begins
after the date of the determination.'.
(b) Effective Date- The amendment made by this section takes effect on October
1, 2009.
SEC. 6. INTERSTATE SURFACE TRANSPORTATION COMPACTS.
(a) Definitions- In this section:
(1) INFRASTRUCTURE BANK- The term `infrastructure bank' means a surface
transportation infrastructure bank established under an interstate compact
under subsection (b)(5) and described in subsection (d).
(2) PARTICIPATING STATES- The term `participating States' means the States
that are parties to an interstate compact entered into under subsection
(b).
(3) SURFACE TRANSPORTATION- The term `surface transportation' includes
mass transit and rail.
(4) SURFACE TRANSPORTATION PROJECT- The term `surface transportation project'
means a surface transportation project, program, or activity described
in subsection (b).
(b) Consent of Congress- In order to increase public investment, attract
needed private investment, and promote an intermodal transportation network,
Congress grants consent to States to enter into interstate compacts to--
(1) promote the continuity, quality, and safety of the Interstate System;
(2) develop programs to promote and fund surface transportation safety
initiatives and establish surface transportation safety standards for
the participating States;
(3) conduct long-term planning for surface transportation infrastructure
in the participating States;
(4) develop design and construction standards for infrastructure described
in paragraph (3) to be used by the participating States; and
(5) establish surface transportation infrastructure banks to promote regional
or other multistate investment in infrastructure described in paragraph
(3).
(c) Financing- An interstate compact established by participating States
under subsection (b) to carry out a surface transportation project may provide
that, in order to carry out the compact, the participating States may--
(1) accept contributions from a unit of State or local government or a
person;
(2) use any Federal or State funds made available for that type of surface
transportation project;
(3) on such terms and conditions as the participating States consider
advisable--
(A) borrow money on a short-term basis and issue notes for the borrowing;
and
(4) obtain financing by other means permitted under Federal or State law,
including the use of tolls and surface transportation infrastructure banks
under subsection (d).
(d) Infrastructure Banks-
(1) IN GENERAL- An infrastructure bank may--
(B) under the joint or separate authority of the participating States
with respect to the infrastructure bank, issue such debt as the infrastructure
bank and the participating States determine appropriate; and
(C) provide other assistance to public or private entities constructing,
or proposing to construct or initiate, surface transportation projects.
(A) IN GENERAL- An infrastructure bank may make a loan or provide other
assistance described in subparagraph (C) to a public or private entity
in an amount equal to all or part of the construction cost, capital
cost, or initiation cost of a surface transportation project.
(B) SUBORDINATION OF ASSISTANCE- The amount of any loan or other assistance
described in subparagraph (C) that is received for a surface transportation
project under this section may be subordinated to any other debt financing
for the surface transportation project.
(C) OTHER ASSISTANCE- Other assistance referred to in subparagraphs
(A) and (B) includes any use of funds for the purpose of--
(ii) a capital reserve for bond or debt instrument financing;
(iii) bond or debt instrument financing issuance costs;
(iv) bond or debt issuance financing insurance;
(v) subsidization of interest rates;
(vii) any credit instrument;
(viii) bond or debt financing instrument security; and
(ix) any other form of debt financing that relates to the qualifying
surface transportation project.
(3) NO OBLIGATION OF UNITED STATES-
(A) IN GENERAL- The establishment under this section of an infrastructure
bank does not constitute a commitment, guarantee, or obligation on the
part of the United States to any third party with respect to any security
or debt financing instrument issued by the bank. No third party shall
have any right against the United States for payment solely by reason
of the establishment.
(B) STATEMENT ON INSTRUMENT- Any security or debt financing instrument
issued by an infrastructure bank shall expressly state that the security
or instrument does not constitute a commitment, guarantee, or obligation
of the United States.
(e) Effective Date- This section takes effect on October 1, 2009.
SEC. 7. REDUCTION IN TAXES ON GASOLINE, DIESEL FUEL, KEROSENE, AND SPECIAL
FUELS FUNDING HIGHWAY TRUST FUND.
(a) Reduction in Tax Rate-
(1) IN GENERAL- Section 4081(a)(2)(A) of the Internal Revenue Code of
1986 (relating to rates of tax) is amended--
(A) in clause (i), by striking `18.3 cents' and inserting `3.7 cents';
and
(B) in clause (iii), by striking `24.3 cents' and inserting `5.0 cents'.
(2) CONFORMING AMENDMENTS-
(A) Section 4081(a)(2)(D) of such Code is amended--
(i) by striking `19.7 cents' and inserting `4.1 cents', and
(ii) by striking `24.3 cents' and inserting `5.0 cents'.
(B) Section 6427(b)(2)(A) of such Code is amended by striking `7.4 cents'
and inserting `1.5 cents'.
(b) Additional Conforming Amendments-
(1) Section 4041(a)(1)(C)(iii)(I) of the Internal Revenue Code of 1986
is amended by striking `7.3 cents per gallon (4.3 cents per gallon after
September 30, 2011)' and inserting `1.4 cents per gallon (zero after September
30, 2016)'.
(2) Section 4041(a)(2)(B)(ii) of such Code is amended by striking `24.3
cents' and inserting `5.0 cents'.
(3) Section 4041(a)(3)(A) of such Code is amended by striking `18.3 cents'
and inserting `3.7 cents'.
(4) Section 4041(m)(1) of such Code is amended--
(A) in subparagraph (A), by striking `2011' and inserting `2016,';
(B) in subparagraph (A)(i), by striking `9.15 cents' and inserting `1.8
cents';
(C) in subparagraph (A)(ii), by striking `11.3 cents' and inserting
`2.3 cents'; and
(D) by striking subparagraph (B) and inserting the following:
`(B) zero after September 30, 2016.'.
(5) Section 4081(d)(1) of such Code is amended by striking `4.3 cents
per gallon after September 30, 2011' and inserting `zero after September
30, 2016'.
(6) Section 9503(b) of such Code is amended--
(A) in paragraphs (1) and (2), by striking `October 1, 2011' both places
it appears and inserting `October 1, 2016';
(B) in the heading of paragraph (2), by striking `OCTOBER 1, 2011' and
inserting `OCTOBER 1, 2016';
(C) in paragraph (2), by striking `after September 30, 2011, and before
July 1, 2012' and inserting `after September 30, 2016, and before July
1, 2017'; and
(D) in paragraph (6)(B), by striking `2009' both places it appears and
inserting `2014'.
(A) before October 1, 2013, tax has been imposed under section 4081
of the Internal Revenue Code of 1986 on any liquid; and
(B) on such date such liquid is held by a dealer and has not been used
and is intended for sale;
there shall be credited or refunded (without interest) to the person who
paid such tax (in this subsection referred to as the `taxpayer') an amount
equal to the excess of the tax paid by the taxpayer over the amount of
such tax which would be imposed on such liquid had the taxable event occurred
on such date.
(2) TIME FOR FILING CLAIMS- No credit or refund shall be allowed or made
under this subsection unless--
(A) claim therefor is filed with the Secretary of the Treasury before
April 1, 2014; and
(B) in any case where liquid is held by a dealer (other than the taxpayer)
on October 1, 2013--
(i) the dealer submits a request for refund or credit to the taxpayer
before January 1, 2014; and
(ii) the taxpayer has repaid or agreed to repay the amount so claimed
to such dealer or has obtained the written consent of such dealer
to the allowance of the credit or the making of the refund.
(3) EXCEPTION FOR FUEL HELD IN RETAIL STOCKS- No credit or refund shall
be allowed under this subsection with respect to any liquid in retail
stocks held at the place where intended to be sold at retail.
(4) DEFINITIONS- For purposes of this subsection, the terms `dealer' and
`held by a dealer' have the respective meanings given to such terms by
section 6412 of such Code; except that the term `dealer' includes a producer.
(5) CERTAIN RULES TO APPLY- Rules similar to the rules of subsections
(b) and (c) of section 6412 and sections 6206 and 6675 of such Code shall
apply for purposes of this subsection.
(d) Effective Date- The amendments made by this section shall apply to fuel
removed after September 30, 2013.
SEC. 8. REVENUE ALIGNED BUDGET AUTHORITY.
Section 110(a) of title 23, United States Code, is amended by striking paragraph
(1) and inserting the following:
`(1) ALLOCATION- If the amount determined under section 251(b)(1)(B)(ii)(I)(cc)
of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)(B)(ii)(I)(cc)) for fiscal year 2009 or any fiscal year thereafter
is greater than zero, the Secretary, on October 1 of the following fiscal
year, shall allocate for that following fiscal year an amount of funds
equal to the amount determined under that section.'.
SEC. 9. REPORT TO CONGRESS.
Not later than 180 days after the date of enactment of this Act, after consultation
with the appropriate committees of Congress, the Secretary of Transportation
shall submit a report to Congress describing such technical and conforming
amendments to titles 23 and 49, United States Code, and such technical and
conforming amendments to other laws, as are necessary to bring those titles
and other laws into conformity with the policy embodied in this Act and
the amendments made by this Act.
SEC. 10. EFFECTIVE DATE CONTINGENT UPON CERTIFICATION OF DEFICIT NEUTRALITY.
(a) Purpose- The purpose of this section is to ensure that--
(1) this Act will become effective only if the Director of the Office
of Management and Budget certifies that this Act is deficit neutral;
(2) discretionary spending limits are reduced to capture the savings realized
in devolving transportation functions to the State level pursuant to this
Act; and
(3) the tax reduction made by this Act is not scored under pay-as-you-go
and does not inadvertently trigger a sequestration.
(b) Effective Date Contingency- Notwithstanding any other provision of this
Act, this Act and the amendments made by this Act shall take effect only
if--
(1) the Director of the Office of Management and Budget (referred to in
this section as the `Director') submits the report as required in subsection
(c); and
(2) the report contains a certification by the Director that, based on
the required estimates, the reduction in discretionary outlays resulting
from the reduction in contract authority is at least as great as the reduction
in revenues for each fiscal year through fiscal year 2014.
(c) OMB Estimates and Report-
(1) REQUIREMENTS- Not later than 5 calendar days after the date of enactment
of this Act, the Director shall--
(A) estimate the net change in revenues resulting from this Act for
each fiscal year through fiscal year 2014;
(B) estimate the net change in discretionary outlays resulting from
the reduction in contract authority under this Act for each fiscal year
through fiscal year 2014;
(C) determine, based on those estimates, whether the reduction in discretionary
outlays is at least as great as the reduction in revenues for each fiscal
year through fiscal year 2014; and
(D) submit to Congress a report setting forth the estimates and determination.
(2) APPLICABLE ASSUMPTIONS AND GUIDELINES-
(A) REVENUE ESTIMATES- The revenue estimates required under paragraph
(1)(A) shall be predicated on the same economic and technical assumptions
and scorekeeping guidelines that would be used for estimates made pursuant
to section 252(d) of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 902(d)).
(B) OUTLAY ESTIMATES- The outlay estimates required under paragraph
(1)(B) shall be determined by comparing the level of discretionary outlays
resulting from this Act with the corresponding level of discretionary
outlays projected in the baseline under section 257 of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 907).
(d) Conforming Adjustment to Discretionary Spending Limits- Upon compliance
with the requirements specified in subsection (b), the Director shall adjust
the adjusted discretionary spending limits for each fiscal year through
fiscal year 2009 under section 601(a)(2) of the Congressional Budget Act
of 1974 (2 U.S.C. 665(a)(2)) by the estimated reductions in discretionary
outlays under subsection (c)(1)(B).
(e) Paygo Interaction- Upon compliance with the requirements specified in
subsection (b), no changes in revenues estimated to result from the enactment
of this Act shall be counted for the purposes of section 252(d) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 902(d)).
END
