Fuel Excise Tax Relief Act

Summary: Repeal the 4.3 cent per gallon tax increase (enacted in 1993) for fuel used for trains, planes, and barges.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fuel Excise Tax Relief Act''.

SEC. 2. SUSPENSION OF FUEL TAXES THROUGH MARCH 31, 2001.

    (a) Temporary Suspension of Fuel Taxes.--During the suspension 
period, each rate of tax referred to in subsection (b) shall be reduced 
to zero.
    (b) Rates of Tax.--The rates of tax referred to in this subsection 
are the rates of tax otherwise applicable under--
            (1) paragraphs (1), (2), and (3) of section 4041(a) of the 
        Internal Revenue Code of 1986 (relating to diesel fuel and 
        special motor fuels),
            (2) subsection (m) of section 4041 of such Code (relating 
        to certain alcohol fuels),
            (3) subparagraphs (A) and (C) of section 4042(b)(1) of such 
        Code (relating to tax on fuel used in commercial transportation 
        on inland waterways),
            (4) clauses (i), (ii), and (iii) of section 4081(a)(2)(A) 
        of such Code (relating to gasoline, diesel fuel, and kerosene),
            (5) paragraph (1) of section 4091(b) of such Code (relating 
        to aviation fuel), and
            (6) paragraph (2) of section 4092(b) of such Code (relating 
        to fuel used in commercial aviation).
    (c) Suspension Period.--For purposes of this section, the term 
``suspension period'' means period beginning on the date of the 
enactment of this Act and ending on March 31, 2001.

SEC. 3. REPEAL OF 1993 INCREASES IN CERTAIN MOTOR FUEL TAXES.

    (a) Diesel Fuel Used in Trains.--Subparagraph (C) of section 
4041(a)(1) of the Internal Revenue Code of 1986 is amended by striking 
clause (ii) and by redesignating clause (iii) as clause (ii).
    (b) Fuel Used on Inland Waterways.--
            (1) Paragraph (1) of section 4042(b) of such Code is 
        amended by adding ``and'' at the end of subparagraph (A), by 
        striking ``, and'' at the end of subparagraph (B) and inserting 
        a period, and by striking subparagraph (C).
            (2) Paragraph (2) of section 4042(b) of such Code is 
        amended by striking subparagraph (C).
    (c) Gasoline Used in Trains.--Clause (i) of section 4081(a)(2)(A) 
of such Code is amended by inserting before the comma at the end the 
following: ``(14 cents in the case of gasoline used in trains)''.
    (d) Aviation Gasoline.--Clause (ii) of section 4081(a)(2)(A) of 
such Code is amended by striking ``19.3 cents'' and inserting ``15 
cents''.
    (e) Aviation Fuel.--Paragraph (1) of section 4091(b) of such Code 
is amended by striking ``21.8 cents'' and inserting ``17.5 cents''.
    (f) Technical Amendments.--
            (1) Subparagraph (A) of section 4041(a)(1) of such Code is 
        amended by striking ``or a diesel-powered train'' each place it 
        appears and by striking ``or train''.
            (2) Subparagraph (C) of section 4041(b)(1) of such Code is 
        amended by striking all that follows ``section 6421(e)(2)'' and 
        inserting a period.
            (3) Subsection (d) of section 4041 of such Code is amended 
        by redesignating paragraph (3) as paragraph (4) and by 
        inserting after paragraph (2) the following new paragraph:
            ``(3) Diesel fuel used in trains.--There is hereby imposed 
        a tax of 0.1 cent per gallon on any liquid other than gasoline 
        (as defined in section 4083)--
                    ``(A) sold by any person to an owner, lessee, or 
                other operator of a diesel-powered train for use as a 
                fuel in such train, or
                    ``(B) used by any person as a fuel in a diesel-
                powered train unless there was a taxable sale of such 
                fuel under subparagraph (A).
        No tax shall be imposed by this paragraph on the sale or use of 
        any liquid if tax was imposed on such liquid under section 
        4081.''
            (4) Paragraph (2) of section 4081(d) of such Code is 
        amended to read as follows:
            ``(2) Aviation gasoline.--The rate of tax specified in 
        subsection (a)(2)(A)(ii) shall be zero after September 30, 
        2007.''.
            (5) Subsection (f) of section 4082 of such Code is amended 
        by striking ``section 4041(a)(1)'' and inserting ``subsections 
        (d)(3) and (a)(1) of section 4041, respectively''.
            (6) Paragraph (3) of section 4083(a) of such Code is 
        amended by striking ``or a diesel-powered train''.
            (7) Subparagraph (A) of section 4091(b)(3) of such Code is 
        amended to read as follows:
                    ``(A) The rate of tax specified in paragraph (1) 
                shall be zero after September 30, 2007.''
            (8) Paragraph (1) of section 4091(c) of such Code is 
        amended--
                    (A) by striking ``14 cents'' and inserting ``9.7 
                cents'',
                    (B) by striking ``13.3 cents'' and inserting ``9 
                cents'',
                    (C) by striking ``13.2 cents'' and inserting ``8.9 
                cents'',
                    (D) by striking ``13.1 cents'' and inserting ``8.8 
                cents'', and
                    (E) by striking ``13.4 cents'' and inserting ``9.1 
                cents''.
            (9) Subsection (c) of section 4091 of such Code is amended 
        by striking paragraph (4), and by redesignating paragraph (5) 
        as paragraph (4).
            (10) Subsection (b) of section 4092 of such Code is amended 
        by striking ``attributable to'' and all that follows and 
        inserting ``attributable to the Leaking Underground Storage 
        Tank Trust Fund financing rate imposed by such section. For 
        purposes of the preceding sentence, the term `commercial 
        aviation' means any use of an aircraft other than in 
        noncommercial aviation (as defined in section 4041(c)(2)).''
            (11) Subparagraph (B) of section 6421(f)(2) of such Code is 
        amended by striking ``and,'' and all that follows and inserting 
        a period.
            (12) Paragraph (3) of section 6421(f) of such Code is 
        amended to read as follows:
            ``(3) Gasoline used in trains.--In the case of gasoline 
        used as a fuel in a train, this section shall not apply with 
        respect to the Leaking Underground Storage Tank Trust Fund 
        financing rate under section 4081.''
            (13) Paragraph (3) of section 6427(l) of such Code is 
        amended to read as follows:
            ``(3) Refund of certain taxes on fuel used in diesel-
        powered trains.--For purposes of this subsection, the term 
        `nontaxable use' includes fuel used in a diesel-powered train. 
        The preceding sentence shall not apply to the tax imposed by 
        section 4041(d) and the Leaking Underground Storage Tank Trust 
        Fund financing rate under section 4081 except with respect to 
        fuel sold for exclusive use by a State or any political 
        subdivision thereof.''
            (14) Paragraph (4) of section 6427(l) of such Code is 
        amended by striking ``attributable to'' and all that follows 
        through the period and inserting ``attributable to the Leaking 
        Underground Storage Tank Trust Fund financing rate imposed by 
        such section.''
    (g) Effective Date.--The amendments made by this section shall take 
effect on April 1, 2001.

SEC. 4. FLOOR STOCK REFUNDS.

    (a) In General.--If--
            (1) before the tax suspension date, a tax referred to in 
        section 2(b) has been imposed under the Internal Revenue Code 
        of 1986 on any liquid, and
            (2) 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 (hereafter in this section 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.
    (b) Time for Filing Claims.--No credit or refund shall be allowed 
or made under this section unless--
            (1) claim therefor is filed with the Secretary of the 
        Treasury before the date which is 6 months after the tax 
        suspension date, and
            (2) in any case where liquid is held by a dealer (other 
        than the taxpayer) on the tax suspension date--
                    (A) the dealer submits a request for refund or 
                credit to the taxpayer before the date which is 3 
                months after the tax suspension date, and
                    (B) 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.
    (c) Exception for Fuel Held in Retail Stocks.--No credit or refund 
shall be allowed under this section with respect to any liquid in 
retail stocks held at the place where intended to be sold at retail.
    (d) Definitions.--For purposes of this section--
            (1) 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, and
            (2) the term ``tax suspension date'' means the date on 
        which the suspension period begins under section 2(b).
    (e) Certain Rules To Apply.--Rules similar to the rules of 
subsections (b) and (c) of section 6412 of such Code shall apply for 
purposes of this section.

SEC. 5. FLOOR STOCKS TAX.

    (a) Imposition of Tax.--In the case of any taxable liquid which is 
held on the floor stocks tax date by any person, there is hereby 
imposed a floor stocks tax equal to the excess of the tax which would 
be imposed on such liquid under any section of the Internal Revenue 
Code of 1986 referred to in section 2(b) had the taxable event occurred 
on the floor stocks tax date over the tax paid under any such section 
on such liquid.
    (b) Liability for Tax and Method of Payment.--
            (1) Liability for tax.--A person holding a liquid on the 
        floor stocks tax date to which the tax imposed by subsection 
        (a) applies shall be liable for such tax.
            (2) Method of payment.--The tax imposed by subsection (a) 
        shall be paid in such manner as the Secretary shall prescribe.
            (3) Time for payment.--The tax imposed by subsection (a) 
        shall be paid on or before the date which is 6 months after the 
        floor stocks tax date.
    (c) Definitions.--For purposes of this section--
            (1) Held by a person.--A liquid shall be considered as 
        ``held by a person'' if title thereto has passed to such person 
        (whether or not delivery to the person has been made).
            (2) Taxable liquid.--The term `taxable liquid' means any 
        liquid on which a tax referred to in section 2(b) is imposed on 
        the floor stocks tax date.
            (3) Floor stocks tax date.--The term ``floor stocks tax 
        date'' means April 1, 2001.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
    (d) Exception for Exempt Uses.--The tax imposed by subsection (a) 
shall not apply to taxable liquid held by any person exclusively for 
any use to the extent a credit or refund of the tax imposed by a 
section of the Code referred to in section 2(b) is allowable for such 
use.
    (e) Exception for Fuel Held in Vehicle Tank.--No tax shall be 
imposed by subsection (a) on taxable liquid held in the tank of a motor 
vehicle or motorboat.
    (f) Exception for Certain Amounts of Fuel.--
            (1) In general.--No tax shall be imposed by subsection (a) 
        on any liquid held on the floor stocks tax date by any person 
        if the aggregate amount of liquid held by such person on such 
        date does not exceed 2,000 gallons. The preceding sentence 
        shall apply only if such person submits to the Secretary (at 
        the time and in the manner required by the Secretary) such 
        information as the Secretary shall require for purposes of this 
        paragraph.
            (2) Exempt fuel.--For purposes of paragraph (1), there 
        shall not be taken into account fuel held by any person which 
        is exempt from the tax imposed by subsection (a) by reason of 
        subsection (d) or (e).
            (3) Controlled groups.--For purposes of this subsection--
                    (A) Corporations.--
                            (i) In general.--All persons treated as a 
                        controlled group shall be treated as 1 person.
                            (ii) Controlled group.--The term 
                        ``controlled group'' has the meaning given to 
                        such term by subsection (a) of section 1563 of 
                        such Code; except that for such purposes the 
                        phrase ``more than 50 percent'' shall be 
                        substituted for the phrase ``at least 80 
                        percent'' each place it appears in such 
                        subsection.
                    (B) Nonincorporated persons under common control.--
                Under regulations prescribed by the Secretary, 
                principles similar to the principles of subparagraph 
                (A) shall apply to a group of persons under common 
                control where 1 or more of such persons is not a 
                corporation.
    (g) Other Law Applicable.--All provisions of law, including 
penalties, applicable with respect to the taxes imposed by chapter 31 
or 32 of such Code shall, insofar as applicable and not inconsistent 
with the provisions of this section, apply with respect to the floor 
stock taxes imposed by subsection (a) to the same extent as if such 
taxes were imposed by such chapter.

SEC. 6. MAINTENANCE OF TRUST FUND DEPOSITS.

    In determining the amounts to be appropriated to any trust fund, an 
amount equal to the reduction in revenues to the Treasury by reason of 
a reduction under this Act in any rate shall be treated as taxes 
received in the Treasury under such rate.

SEC. 7. REPORTING REQUIREMENTS.

    (a) Changes in Fuel Prices.--Not later than 30 days after the date 
of the enactment of this Act, the Secretary of Treasury, in 
consultation with the Secretary of Energy, shall prepare and submit to 
the Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a study which specifically addresses 
the following issues:
            (1) Changes in the price of gasoline, diesel fuel, and 
        other transportation fuels over the previous 12 months.
            (2) The impact on fuel prices posed by the reformulated gas 
        mandate of the Clean Air Act.
            (3) The economic feasibility and appropriateness of 
        maintaining the reformulated gas mandate.
    (b) Pass Through of Tax Reduction.--
            (1) The Comptroller General of the United States shall 
        conduct a study of the reduction of taxes under this Act to 
        determine whether there has been a pass through to consumers of 
        such reduction.
            (2) Not later than 60 days after the date of the enactment 
        of this Act, the Comptroller General shall submit to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate a report containing the 
        results of the study conducted under paragraph (1).