Harbor Maintenance Trust Fund Reform Act of 2016

Summary: Harbor Maintenance Trust Fund Reform Act of 2016 This bill amends the Internal Revenue Code to make certain amounts in the Harbor Maintenance Trust Fund available, without appropriation, for expenditures to pay:  100% of the eligible operations and maintenance costs of specified portions of the Saint Lawrence Seaway as well as those assigned to commercial navigation of all U.S. harbors and inland harbors; rebates of certain tolls or charges on the Seaway; and  all expenses of administration relating to harbor maintenance tax incurred by the Department of the Treasury, the Army Corps of Engineers, and the Department of Commerce.  The Water Resources Reform and Development Act of 2014 is amended to:  require allocation to certain donor ports and energy transfer ports of at least 20% of amounts made available each fiscal year from the Trust Fund, and  authorize the Department of the Army to make the allocations equally between these kinds of ports.  A "donor port" is a port, subject to the harbor maintenance fee, located in a state in which more than 2 million cargo containers were unloaded from or loaded on to vessels in FY2012, whose total amount of collected harbor maintenance taxes comes to less than $15 million annually, and which received less than 25% of the total amount of harbor maintenance taxes collected at that port in the previous five fiscal years. An &quot;energy transfer port" is one, also subject to the harbor maintenance fee, through which more than 40 million tons of cargo were transported in FY2012, and at which energy commodities constituted more than 25% of all commercial activity by tonnage in that fiscal year.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Harbor Maintenance Trust Fund Reform 
Act of 2016''.

SEC. 2. REFORM OF SPENDING FROM THE HARBOR MAINTENANCE TRUST FUND.

    (a) In General.--Section 9505(c) of the Internal Revenue Code of 
1986 is amended to read as follows:
    ``(c) Expenditures From Harbor Maintenance Trust Fund.--
            ``(1) Required distributions.--
                    ``(A) In general.--In the case of any fiscal year 
                beginning after September 30, 2016, so much of the 
                amounts in the Harbor Maintenance Trust Fund as is 
                equal to the applicable amount shall be available, 
                without appropriation, for making expenditures--
                            ``(i) to carry out section 210 of the Water 
                        Resources Development Act of 1986,
                            ``(ii) for payments of rebates of tolls or 
                        charges pursuant to section 13(b) of the Act of 
                        May 13, 1954 (as in effect on April 1, 1987), 
                        and
                            ``(iii) for the payment of all expenses of 
                        administration incurred by the Department of 
                        the Treasury, the Army Corps of Engineers, and 
                        the Department of Commerce related to the 
                        administration of subchapter A of chapter 36 
                        (relating to harbor maintenance tax).
                    ``(B) Applicable amount.--For purposes of 
                subparagraph (A), the applicable amount for any fiscal 
                year is an amount equal to the sum of--
                            ``(i) the amount of taxes received in the 
                        Treasury under section 4461 for the immediately 
                        preceding fiscal year, plus
                            ``(ii) any amounts credited to the Harbor 
                        Maintenance Trust Fund under section 9602(b) 
                        which is attributable to the portion of the 
                        amounts described in clause (i) that are 
                        deposited in such Trust Fund.
                    ``(C) Allocation of amounts.--Of the amounts 
                available under this paragraph for any fiscal year--
                            ``(i) $5,000,000 shall be available for 
                        purposes described in subparagraph (A)(iii),
                            ``(ii) $40,000,000 shall be available for 
                        purposes described in subparagraph (A)(ii), and
                            ``(iii) the remainder shall be available 
                        for purposes described in subparagraph (A)(i).
            ``(2) Other amounts.--The amounts in the Harbor Maintenance 
        Trust Fund after application of paragraph (1) shall be 
        available, as provided in appropriations Acts, for making 
        expenditures for purposes described in paragraph (1)(A).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to fiscal years beginning after the date of the enactment of this Act.

SEC. 3. ADDITIONAL MEASURES AT DONOR PORTS AND ENERGY TRANSFER PORTS.

    Section 2106 of the Water Resources Reform and Development Act of 
2014 (33 U.S.C. 2238c) is amended--
            (1) in subsection (a)(2)--
                    (A) by redesignating subparagraphs (A) through (D) 
                as clauses (i) through (iv), respectively, and 
                indenting appropriately;
                    (B) in the matter preceding clause (i) (as 
                redesignated), by striking ``The term'' and inserting 
                the following:
                    ``(A) In general.--The term''; and
                    (C) by adding at the end the following:
                    ``(B) Calculation.--For the purpose of calculating 
                the percentage described in subparagraph (A)(iii), 
                payments described under subsection (c)(1) shall not be 
                included.'';
            (2) by striking subsection (b) and inserting the following:
    ``(b) Authority.--
            ``(1) In general.--The Secretary may provide to donor ports 
        and energy transfer ports amounts in accordance with this 
        section.
            ``(2) Limitations.--Amounts provided under this section for 
        each fiscal year--
                    ``(A) shall be provided in equal amounts to donor 
                ports and energy transfer ports;
                    ``(B) for donor ports--
                            ``(i) 50 percent of the funds shall be 
                        equally divided between the eligible donor 
                        ports; and
                            ``(ii) 50 percent of the funds shall be 
                        divided between the eligible donor ports based 
                        on the percentage of the total Harbor 
                        Maintenance Tax revenues generated at each 
                        eligible donor port;
                    ``(C) for energy transfer ports, shall be divided 
                equally among all States with an energy transfer port; 
                and
                    ``(D) shall be made available to a port as either a 
                donor port or an energy transfer port and no port may 
                receive amounts as both a donor port and an energy 
                transfer port.''; and
            (3) by striking subsection (f).

SEC. 4. EXPENDITURES FROM THE HARBOR MAINTENANCE TRUST FUND.

    (a) Operation and Maintenance of Harbor Projects.--Section 210(c) 
of the Water Resources Development Act of 1986 (33 U.S.C. 2238(c)) is 
amended--
            (1) by striking paragraph (3);
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (2) the following:
            ``(3) Certain donor ports and energy transfer ports.--The 
        Secretary shall allocate to carry out activities under section 
        2106(c) of the Water Resources Reform and Development Act of 
        2014 (33 U.S.C. 2238c(c)) an amount that is not less than 20 
        percent of the funds made available under this section for each 
        fiscal year.
            ``(4) Emerging harbor projects.--Notwithstanding any other 
        provision of this subsection, in making expenditures under 
        paragraph (1), the Secretary shall allocate for operation and 
        maintenance costs of emerging harbor projects for each fiscal 
        year an amount that is not less than 10 percent of the funds 
        made available under this section for fiscal year 2012 to pay 
        the costs described in subsection (a)(2).''.
    (b) Definition of Expanded Uses.--Section 210(f)(3) of the Water 
Resources Development Act of 1986 (33 U.S.C. 2238(f)(3)) is amended by 
adding at the end the following:
                    ``(C) An in-water improvement, if--
                            ``(i) the improvement benefits commercial 
                        navigation at the harbor; and
                            ``(ii) the improvement is located in or 
                        adjacent to a berth that is accessible to a 
                        Federal navigation project.
                    ``(D) An activity to maintain or improve slope 
                stability at a berth in a harbor that is accessible to 
                a Federal navigation project, if the activity benefits 
                commercial navigation at the harbor.''.