II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Transportation Em5 powerment Act’’. 

6 SEC. 2. FINDINGS AND PURPOSES. 

7 (a) FINDINGS.—Congress finds that— 

8 (1) the objective of the Federal highway pro9 gram has been to facilitate the construction of a 


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1 modern freeway system that promotes efficient inter2 state commerce by connecting all States; 

3 (2) that objective has been attained, and the 

4 Interstate System connecting all States is near com5 pletion; 

6 (3) each State has the responsibility of pro7 viding an efficient transportation network for the 

8 residents of the State; 

9 (4) each State has the means to build and oper10 ate a network of transportation systems, including 

11 highways, that best serves the needs of the State; 

12 (5) each State is best capable of determining 

13 the needs of the State and acting on those needs; 

14 (6) the Federal role in highway transportation 

15 has, over time, usurped the role of the States by tax16 ing motor fuels used in the States and then distrib17 uting the proceeds to the States based on the Fed18 eral Government’s perceptions of what is best for the 

19 States; 

20 (7) the Federal Government has used the Fed21 eral motor fuels tax revenues to force all States to 

22 take actions that are not necessarily appropriate for 

23 individual States; 


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1 (8) the Federal distribution, review, and en2 forcement process wastes billions of dollars on un3 productive activities; 

4 (9) Federal mandates that apply uniformly to 

5 all 50 States, regardless of the different cir6 cumstances of the States, cause the States to waste 

7 billions of hard-earned tax dollars on projects, pro8 grams, and activities that the States would not oth9 erwise undertake; and 

10 (10) Congress has expressed a strong interest 

11 in reducing the role of the Federal Government by 

12 allowing each State to manage its own affairs. 

13 (b) PURPOSES.—The purposes of this Act are— 

14 (1) to return to the individual States maximum 

15 discretionary authority and fiscal responsibility for 

16 all elements of the national surface transportation 

17 systems that are not within the direct purview of the 

18 Federal Government; 

19 (2) to preserve Federal responsibility for the 

20 Dwight D. Eisenhower National System of Inter21 state and Defense Highways; 

22 (3) to preserve the responsibility of the Depart23 ment of Transportation for— 


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1 (A) design, construction, and preservation 

2 of transportation facilities on Federal public 

3 land; 

4 (B) national programs of transportation 

5 research and development and transportation 

6 safety; and 

7 (C) emergency assistance to the States in 

8 response to natural disasters; 

9 (4) to eliminate to the maximum extent prac10 ticable Federal obstacles to the ability of each State 

11 to apply innovative solutions to the financing, de12 sign, construction, operation, and preservation of 

13 Federal and State transportation facilities; and 

14 (5) with respect to transportation activities car15 ried out by States, local governments, and the pri16 vate sector, to encourage— 

17 (A) competition among States, local gov18 ernments, and the private sector; and 

19 (B) innovation, energy efficiency, private 

20 sector participation, and productivity. 

21 SEC. 3. CONTINUATION OF FUNDING FOR CORE HIGHWAY 

22 PROGRAMS. 

23 (a) IN GENERAL.— 

24 (1) FUNDING.—For the purpose of carrying out 

25 title 23, United States Code, the following sums are 


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1 authorized to be appropriated out of the Highway 

2 Trust Fund: 

3 (A) INTERSTATE MAINTENANCE PRO4 GRAM.—For the Interstate maintenance pro5 gram under section 119 of title 23, United 

6 States Code, $5,200,000,000 for fiscal year 

7 2010, $5,280,000,000 for fiscal year 2011, 

8 $5,360,000,000 for fiscal year 2012, 

9 $5,440,000,000 for fiscal year 2013, and 

10 $5,520,000,000 for fiscal year 2014. 

11 (B) EMERGENCY RELIEF.—For emergency 

12 relief under section 125 of that title, 

13 $100,000,000 for each of fiscal years 2010 

14 through 2014. 

15 (C) INTERSTATE BRIDGE PROGRAM.—For 

16 the Interstate bridge program under section 

17 144 of that title, $2,527,000,000 for fiscal year 

18 2010, $2,597,000,000 for fiscal year 2011, 

19 $2,667,000,000 for fiscal year 2012, 

20 $2,737,000,000 for fiscal year 2013, and 

21 $2,807,000,000 for fiscal year 2014. 

22 (D) FEDERAL LANDS HIGHWAYS PRO23 GRAM.— 

24 (i) INDIAN RESERVATION ROADS.— 

25 For Indian reservation roads under section 


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1 204 of that title, $470,000,000 for fiscal 

2 year 2010, $510,000,000 for fiscal year 

3 2011, $550,000,000 for fiscal year 2012, 

4 $590,000,000 for fiscal year 2013, and 

5 $630,000,000 for fiscal year 2014. 

6 (ii) PUBLIC LANDS HIGHWAYS.—For 

7 public lands highways under section 204 of 

8 that title, $300,000,000 for fiscal year 

9 2010, $310,000,000 for fiscal year 2011, 

10 $320,000,000 for fiscal year 2012, 

11 $330,000,000 for fiscal year 2013, and 

12 $340,000,000 for fiscal year 2014. 

13 (iii) PARKWAYS AND PARK ROADS.— 

14 For parkways and park roads under sec15 tion 204 of that title, $255,000,000 for fis16 cal year 2010, $270,000,000 for fiscal year 

17 2011, $285,000,000 for fiscal year 2012, 

18 $300,000,000 for fiscal year 2013, and 

19 $315,000,000 for fiscal year 2014. 

20 (iv) REFUGE ROADS.—For refuge 

21 roads under section 204 of that title, 

22 $32,000,000 for each of fiscal years 2010 

23 through 2014. 

24 (E) HIGHWAY SAFETY PROGRAMS.— 


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1 (i) IN GENERAL.—For highway safety 

2 programs under section 402 of that title, 

3 $170,000,000 for each of fiscal years 2010 

4 through 2014. 

5 (ii) HIGHWAY SAFETY RESEARCH AND

6 DEVELOPMENT.—For highway safety re7 search and development under section 403 

8 of that title, $35,000,000 for each of fiscal 

9 years 2010 through 2014. 

10 (F) SURFACE TRANSPORTATION RE11 SEARCH.—For cooperative agreements with 

12 nonprofit research organizations to carry out 

13 applied pavement research under section 502 of 

14 that title, $200,000,000 for each of fiscal years 

15 2010 through 2014. 

16 (G) ADMINISTRATIVE EXPENSES.—For ad17 ministrative expenses incurred in carrying out 

18 the programs referred to in subparagraphs (A) 

19 through (F), $92,890,000 for fiscal year 2010, 

20 $95,040,000 for fiscal year 2011, $97,190,000 

21 for fiscal year 2012, $99,340,000 for fiscal year 

22 2013, and $101,490,000 for fiscal year 2014. 

23 (2) TRANSFERABILITY OF FUNDS.—Section 104 

24 of title 23, United States Code, is amended by strik25 ing subsection (g) and inserting the following: 


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1 ‘‘(g) TRANSFERABILITY OF FUNDS.— 

2 ‘‘(1) IN GENERAL.—To the extent that a State 

3 determines that funds made available under this title 

4 to the State for a purpose are in excess of the needs 

5 of the State for that purpose, the State may transfer 

6 the excess funds to, and use the excess funds for, 

7 any surface transportation (including mass transit 

8 and rail) purpose in the State. 

9 ‘‘(2) ENFORCEMENT.—If the Secretary deter10 mines that a State has transferred funds under 

11 paragraph (1) to a purpose that is not a surface 

12 transportation purpose as described in paragraph 

13 (1), the amount of the improperly transferred funds 

14 shall be deducted from any amount the State would 

15 otherwise receive from the Highway Trust Fund for 

16 the fiscal year that begins after the date of the de17 termination.’’. 

18 (3) FEDERAL-AID SYSTEM.—Section 103(a) of 

19 title 23, United States Code, is amended by striking 

20 ‘‘systems are the Interstate System and the National 

21 Highway System’’ and inserting ‘‘system is the 

22 Interstate System’’. 

23 (4) INTERSTATE MAINTENANCE PROGRAM.— 

24 Section 104(b) of title 23, United States Code, is 


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1 amended by striking paragraph (4) and inserting the 

2 following: 

3 ‘‘(4) INTERSTATE MAINTENANCE COMPO4 NENT.—For each of fiscal years 2010 through 2014, 

5 for the Interstate maintenance program under sec6 tion 119, 1 percent to the Virgin Islands, Guam, 

7 American Samoa, and the Commonwealth of the 

8 Northern Mariana Islands and the remaining 99 

9 percent apportioned as follows: 

10 ‘‘(A)(i) For each State with an average 

11 population density of 20 persons or fewer per 

12 square mile, and each State with a population 

13 of 1,500,000 persons or fewer and with a land 

14 area of 10,000 square miles or less, the greater 

15 of— 

16 ‘‘(I) a percentage share of apportion17 ments equal to the percentage for the 

18 State described in clause (ii); or 

19 ‘‘(II) a share determined under sub20 paragraph (B). 

21 ‘‘(ii) The percentage referred to in clause 

22 (i)(I) for a State for a fiscal year shall be the 

23 percentage calculated for the State for the fiscal 

24 year under section 105(b) of title 23, United 

25 States Code. 


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1 ‘‘(B) For each State not described in sub2 paragraph (A), a share of the apportionments 

3 remaining determined in accordance with the 

4 following formula: 

‘‘(i) 1 5 ⁄9 in the ratio that the total rural 

6 lane miles in each State bears to the total 

7 rural lane miles in all States with an aver8 age population density greater than 20 

9 persons per square mile and all States with 

10 a population of more than 1,500,000 per11 sons and with a land area of more than 

12 10,000 square miles. 

‘‘(ii) 1 13 ⁄9 in the ratio that the total 

14 rural vehicle miles traveled in each State 

15 bears to the total rural vehicle miles trav16 eled in all States described in clause (i). 

‘‘(iii) 2 17 ⁄9 in the ratio that the total 

18 urban lane miles in each State bears to the 

19 total urban lane miles in all States de20 scribed in clause (i). 

‘‘(iv) 2 21 ⁄9 in the ratio that the total 

22 urban vehicle miles traveled in each State 

23 bears to the total urban vehicle miles trav24 eled in all States described in clause (i). 


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‘‘(v) 3 1 ⁄9 in the ratio that the total die2 sel fuel used in each State bears to the 

3 total diesel fuel used in all States described 

4 in clause (i).’’. 

5 (5) INTERSTATE BRIDGE PROGRAM.—Section 

6 144 of title 23, United States Code, is amended— 

7 (A) in subsection (d)— 

8 (i) by inserting ‘‘on the Federal-aid 

9 system or described in subsection (c)(3)’’ 

10 after ‘‘highway bridge’’ each place it ap11 pears; and 

12 (ii) by inserting ‘‘on the Federal-aid 

13 system or described in subsection (c)(3)’’ 

14 after ‘‘highway bridges’’ each place it ap15 pears; 

16 (B) in the second sentence of subsection 

17 (e)— 

18 (i) in paragraph (1), by adding ‘‘and’’ 

19 at the end; 

20 (ii) in paragraph (2), by striking the 

21 comma at the end and inserting a period; 

22 and 

23 (iii) by striking paragraphs (3) and 

24 (4); 


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1 (C) in the first sentence of subsection (l), 

2 by inserting ‘‘on the Federal-aid system or de3 scribed in subsection (c)(3)’’ after ‘‘any 

4 bridge’’; 

5 (D) in subsection (m)(1), by inserting ‘‘on 

6 the Federal-aid system or described in sub7 section (c)(3)’’ after ‘‘construct any bridge’’; 

8 and 

9 (E) in the first sentence of subsection (n), 

10 by inserting ‘‘for each of fiscal years 1991 

11 through 2009,’’ after ‘‘of law,’’. 

12 (6) NATIONAL DEFENSE HIGHWAYS.—Section 

13 311 of title 23, United States Code, is amended— 

14 (A) in the first sentence, by striking 

15 ‘‘under subsection (a) of section 104 of this 

16 title’’ and inserting ‘‘to carry out this section’’; 

17 and 

18 (B) by striking the second sentence. 

19 (7) TOLLING.—Notwithstanding title 23, 

20 United States Code, or any other provision of law, 

21 as of October 1, 2009, there shall be no restriction 

22 on the ability of a State, as part of any highway im23 provement project— 


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1 (A) to impose and collect a toll on any 

2 highway in the State that, as of that date, is 

3 part of the Interstate System; 

4 (B) to use revenue from such a toll for any 

5 purpose that the State determines to be appro6 priate; or 

7 (C) to have toll revenue credited toward a 

8 non-Federal cost share required for receipt of 

9 Federal funds. 

10 (8) FEDERALIZATION AND DEFEDERALIZATION

11 OF PROJECTS.—Notwithstanding any other provision 

12 of law, beginning on October 1, 2009— 

13 (A) a highway construction or improve14 ment project shall not be considered to be a 

15 Federal highway construction or improvement 

16 project unless and until a State expends Fed17 eral funds for the construction portion of the 

18 project; 

19 (B) a highway construction or improve20 ment project shall not be considered to be a 

21 Federal highway construction or improvement 

22 project solely by reason of the expenditure of 

23 Federal funds by a State before the construc24 tion phase of the project to pay expenses relat25 ing to the project, including for any environVerDate Aug 31 2005 08:18 Apr 07, 2006 Jkt 049200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S2512.IS S2512

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1 mental document or design work required for 

2 the project; and 

3 (C)(i) a State may, after having used Fed4 eral funds to pay all or a portion of the costs 

5 of a highway construction or improvement 

6 project, reimburse the Federal Government in 

7 an amount equal to the amount of Federal 

8 funds so expended; and 

9 (ii) after completion of a reimbursement 

10 described in clause (i), a highway construction 

11 or improvement project described in that clause 

12 shall no longer be considered to be a Federal 

13 highway construction or improvement project. 

14 (9) REPORTING REQUIREMENTS.—No reporting 

15 requirement, other than a reporting requirement in 

16 effect as of the date of enactment of this Act, shall 

17 apply on or after October 1, 2009, to the use of 

18 Federal funds for highway projects by a public-pri19 vate partnership. 

20 (b) EXPENDITURES FROM HIGHWAY TRUST

21 FUND.— 

22 (1) EXPENDITURES FOR CORE PROGRAMS.— 

23 Section 9503(c) of the Internal Revenue Code of 

24 1986 (relating to expenditures from Highway Trust 

25 Fund) is amended— 


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1 (A) in paragraph (1), by striking ‘‘Safe, 

2 Accountable, Flexible, Efficient Transportation 

3 Equity Act: A Legacy for Users’’ and inserting 

4 ‘‘Transportation Empowerment Act’’; 

5 (B) in paragraph (1), by striking ‘‘2009’’ 

6 both places it appears and inserting ‘‘2014’’; 

7 (C) in paragraphs (2)(A)(i)(III), (2)(A)(ii), 

8 (4)(A)(i), (5)(A), and (6), by striking ‘‘October 

9 1, 2011’’ each place it appears and inserting 

10 ‘‘October 1, 2016’’; and 

11 (D) in paragraphs (2)(A)(i) and (3), by 

12 striking ‘‘July 1, 2012’’ each place it appears 

13 and inserting ‘‘July 1, 2017’’. 

14 (2) AMOUNTS AVAILABLE FOR CORE PROGRAM

15 EXPENDITURES.—Section 9503 of such Code (relat16 ing to the Highway Trust Fund) is amended by add17 ing at the end the following: 

18 ‘‘(g) CORE PROGRAMS FINANCING RATE.—For pur19 poses of this section— 

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graph (2)— 

22 ‘‘(A) in the case of gasoline and special 

23 motor fuels the tax rate of which is the rate 

24 specified in section 4081(a)(2)(A)(i), the core 

25 programs financing rate is— 


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1 ‘‘(i) after September 30, 2009, and 

2 before October 1, 2010, 18.3 cents per gal3 lon, 

4 ‘‘(ii) after September 30, 2010, and 

5 before October 1, 2011, 9.6 cents per gal6 lon, 

7 ‘‘(iii) after September 30, 2011, and 

8 before October 1, 2012, 6.4 cents per gal9 lon, 

10 ‘‘(iv) after September 30, 2012, and 

11 before October 1, 2013, 5.0 cents per gal12 lon, and 

13 ‘‘(v) after September 30, 2013, 3.7 

14 cents per gallon, and 

15 ‘‘(B) in the case of kerosene, diesel fuel, 

16 and special motor fuels the tax rate of which is 

17 the rate specified in section 4081(a)(2)(A)(iii), 

18 the core programs financing rate is— 

19 ‘‘(i) after September 30, 2009, and 

20 before October 1, 2010, 24.3 cents per gal21 lon, 

22 ‘‘(ii) after September 30, 2010, and 

23 before October 1, 2011, 12.7 cents per gal24 lon, 


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1 ‘‘(iii) after September 30, 2011, and 

2 before October 1, 2012, 8.5 cents per gal3 lon, 

4 ‘‘(iv) after September 30, 2012, and 

5 before October 1, 2013, 6.6 cents per gal6 lon, and 

7 ‘‘(v) after September 30, 2013, 5.0 

8 cents per gallon. 

9 ‘‘(2) APPLICATION OF RATE.—In the case of 

10 fuels used as described in paragraph (4)(C), (5)(B), 

11 and (6) of subsection (c), the core programs financ12 ing rate is zero.’’. 

13 (c) TERMINATION OF TRANSFERS TO MASS TRANSIT

14 ACCOUNT.— 

15 (1) IN GENERAL.—Section 9503(e)(2) of the 

16 Internal Revenue Code of 1986 (relating to Mass 

17 Transit Account) is amended by inserting ‘‘, and be18 fore October 1, 2009’’ after ‘‘March 31, 1983’’. 

19 (2) AUTHORIZATION TO EXPEND REMAINING

20 BALANCES IN ACCOUNT.—Section 9503(e)(3) of such 

21 Code is amended by striking ‘‘before October 1, 

22 2009’’. 

23 (d) EFFECTIVE DATE.—The amendments made by 

24 this section take effect on October 1, 2009. 


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1 SEC. 4. INFRASTRUCTURE SPECIAL ASSISTANCE FUND. 

2 (a) BALANCE OF CORE PROGRAMS FINANCING RATE

3 DEPOSITED IN FUND.—Section 9503 of the Internal Rev4 enue Code of 1986 (as amended by section 3(b)(2)) is 

5 amended by adding at the end the following: 

6 ‘‘(h) ESTABLISHMENT OF INFRASTRUCTURE SPE7 CIAL ASSISTANCE FUND.— 

8 ‘‘(1) CREATION OF FUND.—There is established 

9 in the Highway Trust Fund a separate fund to be 

10 known as the ‘Infrastructure Special Assistance 

11 Fund’ consisting of such amounts as may be trans12 ferred or credited to the Infrastructure Special As13 sistance Fund as provided in this subsection or sec14 tion 9602(b). 

15 ‘‘(2) TRANSFERS TO INFRASTRUCTURE SPECIAL

16 ASSISTANCE FUND.—On the first day of each fiscal 

17 year, the Secretary, in consultation with the Sec18 retary of Transportation, shall determine the excess 

19 (if any) of— 

20 ‘‘(A) the sum of— 

21 ‘‘(i) the amounts appropriated in such 

22 fiscal year to the Highway Trust Fund 

23 under subsection (b) which are attributable 

24 to the core programs financing rate for 

25 such year, plus 


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1 ‘‘(ii) the amounts appropriated in 

2 such fiscal year to the Highway Trust 

3 Fund under subsection (b) which are at4 tributable to taxes under sections 4051, 

5 4061, 4071, and 4481 for such year, over 

6 ‘‘(B) the amount appropriated under sub7 section (c) for such fiscal year, 

8 and shall transfer such excess to the Infrastructure 

9 Special Assistance Fund. 

10 ‘‘(3) EXPENDITURES FROM INFRASTRUCTURE

11 SPECIAL ASSISTANCE FUND.— 

12 ‘‘(A) TRANSITIONAL ASSISTANCE.— 

13 ‘‘(i) IN GENERAL.—Except as pro14 vided in clause (iv), during fiscal years 

15 2010 through 2013, $1,000,000,000 in the 

16 Infrastructure Special Assistance Fund 

17 shall be available to States for transpor18 tation-related program expenditures. 

19 ‘‘(ii) STATE SHARE.— 

20 ‘‘(I) IN GENERAL.—Except as 

21 provided in clause (v), each State is 

22 entitled to a share of the amount 

23 specified in clause (i) upon enactment 

24 of legislation providing 1 of the 2 


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1 funding mechanisms described in 

2 clause (iii). 

3 ‘‘(II) DETERMINATION OF STATE

4 SHARE.—For purposes of subclause 

5 (I), each State’s share shall be deter6 mined in the following manner: 

7 ‘‘(aa) Multiply the percent8 age of the amounts appropriated 

9 in the latest fiscal year for which 

10 such data are available to the 

11 Highway Trust Fund under sub12 section (b) which is attributable 

13 to taxes paid by highway users in 

14 the State, by the amount speci15 fied in clause (i). If the result 

16 does not exceed $15,000,000, the 

17 State’s share equals 

18 $15,000,000. If the result ex19 ceeds $15,000,000, the State’s 

20 share is determined under item 

21 (bb). 

22 ‘‘(bb) Multiply the percent23 age determined under item (aa), 

24 by the amount specified in clause 

25 (i) reduced by an amount equal 


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1 to $15,000,000 times the number 

2 of States the share of which is 

3 determined under item (aa). 

4 ‘‘(iii) LEGISLATIVE FUNDING MECHA5 NISMS.—A funding mechanism is described 

6 in this clause as follows: 

7 ‘‘(I) A funding mechanism which 

8 results in revenues for transportation9 related projects in the State for fiscal 

10 year 2014 and each succeeding fiscal 

11 year which are equal to the excess 

12 of— 

13 ‘‘(aa) the mean annual aver14 age of distributions from the 

15 Highway Trust Fund to the 

16 State for fiscal years 2004 

17 through 2009; over 

18 ‘‘(bb) the distributions from 

19 the Highway Trust Fund to the 

20 State for such fiscal year attrib21 utable to the core programs fi22 nancing rate for such year. 

23 ‘‘(II) A funding mechanism 

24 which results in an increase in the 

25 State rate of tax on motor fuels equal 


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1 to the decrease in the rate of tax on 

2 such fuels under section 4081 for fis3 cal year 2014 and any succeeding fis4 cal year. 

5 ‘‘(iv) DISTRIBUTION OF REMAINING

6 AMOUNT.—If after September 30, 2013, a 

7 portion of the amount specified in clause 

8 (i) remains, the Secretary, in consultation 

9 with the Secretary of Transportation, 

10 shall, on October 1, 2013, apportion the 

11 portion among the States which received a 

12 share of such amount under clause (ii) and 

13 which are not described in clause (v) using 

14 the percentages determined under clause 

15 (ii)(II)(aa) for such States. 

16 ‘‘(v) ENFORCEMENT OF FUNDING

17 MECHANISM REQUIREMENT.—If a State, 

18 which enacted legislation providing for a 

19 funding mechanism described in clause 

20 (iii), terminates such mechanism before fis21 cal year 2013, the State’s share deter22 mined under clauses (ii) and (iv) shall be 

23 deducted from any amount the State would 

24 otherwise receive from the Highway Trust 

25 Fund for fiscal year 2013. 


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1 ‘‘(B) ADDITIONAL EXPENDITURES FROM

2 FUND.— 

3 ‘‘(i) IN GENERAL.—Amounts in the 

4 Infrastructure Special Assistance Fund, in 

5 excess of the amount specified in subpara6 graph (A)(i), shall be available, as provided 

7 by appropriation Acts, to the States for 

8 any surface transportation (including mass 

9 transit and rail) purpose in such States, 

10 and the Secretary shall apportion such ex11 cess amounts among all States using the 

12 percentages determined under clause 

13 (ii)(II)(aa) for such States. 

14 ‘‘(ii) ENFORCEMENT.—If the Sec15 retary determines that a State has used 

16 amounts under clause (i) for a purpose 

17 which is not a surface transportation pur18 pose as described in clause (i), the improp19 erly used amounts shall be deducted from 

20 any amount the State would otherwise re21 ceive from the Highway Trust Fund for 

22 the fiscal year which begins after the date 

23 of the determination.’’. 

24 (b) EFFECTIVE DATE.—The amendment made by 

25 this section takes effect on October 1, 2009. 


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1 SEC. 5. RETURN OF EXCESS TAX RECEIPTS TO STATES. 

2 (a) IN GENERAL.—Section 9503(c) of the Internal 

3 Revenue Code of 1986 is amended by redesignating para4 graph (7) (as added by section 11161(c)(1) of the Safe, 

5 Accountable, Flexible, Efficient Transportation Equity 

6 Act: A Legacy for Users) as paragraph (6) and by adding 

7 at the end the following: 

8 ‘‘(7) RETURN OF EXCESS TAX RECEIPTS TO

9 STATES FOR SURFACE TRANSPORTATION PUR10 POSES.— 

11 ‘‘(A) IN GENERAL.—On the first day of 

12 each of fiscal years 2010, 2011, 2012, and 

13 2013, the Secretary, in consultation with the 

14 Secretary of Transportation, shall— 

15 ‘‘(i) determine the excess (if any) of— 

16 ‘‘(I) the amounts appropriated in 

17 such fiscal year to the Highway Trust 

18 Fund under subsection (b) which are 

19 equivalent to the taxes attributable to 

20 the excess of— 

21 ‘‘(aa) the Highway Trust 

22 Fund financing rate for such 

23 year, over 

24 ‘‘(bb) the core programs fi25 nancing rate for such year, over 


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1 ‘‘(II) the amounts so appro2 priated which are equivalent to the 

3 taxes described in paragraphs (4)(C), 

4 (5)(B), and (6), and 

5 ‘‘(ii) allocate the amount determined 

6 under clause (i) among the States (as de7 fined in section 101(a) of title 23, United 

8 States Code) for surface transportation 

9 (including mass transit and rail) purposes 

10 so that— 

11 ‘‘(I) the percentage of that 

12 amount allocated to each State, is 

13 equal to 

14 ‘‘(II) the percentage of the 

15 amount determined under clause (i)(I) 

16 paid into the Highway Trust Fund in 

17 the latest fiscal year for which such 

18 data are available which is attrib19 utable to highway users in the State. 

20 ‘‘(B) ENFORCEMENT.—If the Secretary 

21 determines that a State has used amounts 

22 under subparagraph (A) for a purpose which is 

23 not a surface transportation purpose as de24 scribed in subparagraph (A), the improperly 

25 used amounts shall be deducted from any 


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1 amount the State would otherwise receive from 

2 the Highway Trust Fund for the fiscal year 

3 which begins after the date of the determina4 tion.’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section takes effect on October 1, 2009. 

7 SEC. 6. INTERSTATE SURFACE TRANSPORTATION COM8 PACTS. 

9 (a) DEFINITIONS.—In this section: 

10 (1) INFRASTRUCTURE BANK.—The term ‘‘infra11 structure bank’’ means a surface transportation in12 frastructure bank established under an interstate 

13 compact under subsection (b)(5) and described in 

14 subsection (d). 

15 (2) PARTICIPATING STATES.—The term ‘‘par16 ticipating States’’ means the States that are parties 

17 to an interstate compact entered into under sub18 section (b). 

19 (3) SURFACE TRANSPORTATION.—The term 

20 ‘‘surface transportation’’ includes mass transit and 

21 rail. 

22 (4) SURFACE TRANSPORTATION PROJECT.—The 

23 term ‘‘surface transportation project’’ means a sur24 face transportation project, program, or activity de25 scribed in subsection (b). 


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1 (b) CONSENT OF CONGRESS.—In order to increase 

2 public investment, attract needed private investment, and 

3 promote an intermodal transportation network, Congress 

4 grants consent to States to enter into interstate compacts 

5 to— 

6 (1) promote the continuity, quality, and safety 

7 of the Interstate System; 

8 (2) develop programs to promote and fund sur9 face transportation safety initiatives and establish 

10 surface transportation safety standards for the par11 ticipating States; 

12 (3) conduct long-term planning for surface 

13 transportation infrastructure in the participating 

14 States; 

15 (4) develop design and construction standards 

16 for infrastructure described in paragraph (3) to be 

17 used by the participating States; and 

18 (5) establish surface transportation infrastruc19 ture banks to promote regional or other multistate 

20 investment in infrastructure described in paragraph 

21 (3). 

22 (c) FINANCING.—An interstate compact established 

23 by participating States under subsection (b) to carry out 

24 a surface transportation project may provide that, in order 

25 to carry out the compact, the participating States may— 


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1 (1) accept contributions from a unit of State or 

2 local government or a person; 

3 (2) use any Federal or State funds made avail4 able for that type of surface transportation project; 

5 (3) on such terms and conditions as the partici6 pating States consider advisable— 

7 (A) borrow money on a short-term basis 

8 and issue notes for the borrowing; and 

9 (B) issue bonds; and 

10 (4) obtain financing by other means permitted 

11 under Federal or State law, including the use of tolls 

12 and surface transportation infrastructure banks 

13 under subsection (d). 

14 (d) INFRASTRUCTURE BANKS.— 

15 (1) IN GENERAL.—An infrastructure bank 

16 may— 

17 (A) make loans; 

18 (B) under the joint or separate authority 

19 of the participating States with respect to the 

20 infrastructure bank, issue such debt as the in21 frastructure bank and the participating States 

22 determine appropriate; and 

23 (C) provide other assistance to public or 

24 private entities constructing, or proposing to 


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1 construct or initiate, surface transportation 

2 projects. 

3 (2) FORMS OF ASSISTANCE.— 

4 (A) IN GENERAL.—An infrastructure bank 

5 may make a loan or provide other assistance 

6 described in subparagraph (C) to a public or 

7 private entity in an amount equal to all or part 

8 of the construction cost, capital cost, or initi9 ation cost of a surface transportation project. 

10 (B) SUBORDINATION OF ASSISTANCE.— 

11 The amount of any loan or other assistance de12 scribed in subparagraph (C) that is received for 

13 a surface transportation project under this sec14 tion may be subordinated to any other debt fi15 nancing for the surface transportation project. 

16 (C) OTHER ASSISTANCE.—Other assist17 ance referred to in subparagraphs (A) and (B) 

18 includes any use of funds for the purpose of— 

19 (i) credit enhancement; 

20 (ii) a capital reserve for bond or debt 

21 instrument financing; 

22 (iii) bond or debt instrument financ23 ing issuance costs; 

24 (iv) bond or debt issuance financing 

25 insurance; 


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1 (v) subsidization of interest rates; 

2 (vi) letters of credit; 

3 (vii) any credit instrument; 

4 (viii) bond or debt financing instru5 ment security; and 

6 (ix) any other form of debt financing 

7 that relates to the qualifying surface trans8 portation project. 

9 (3) NO OBLIGATION OF UNITED STATES.— 

10 (A) IN GENERAL.—The establishment 

11 under this section of an infrastructure bank 

12 does not constitute a commitment, guarantee, 

13 or obligation on the part of the United States 

14 to any third party with respect to any security 

15 or debt financing instrument issued by the 

16 bank. No third party shall have any right 

17 against the United States for payment solely by 

18 reason of the establishment. 

19 (B) STATEMENT ON INSTRUMENT.—Any 

20 security or debt financing instrument issued by 

21 an infrastructure bank shall expressly state that 

22 the security or instrument does not constitute a 

23 commitment, guarantee, or obligation of the 

24 United States. 


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1 (e) EFFECTIVE DATE.—This section takes effect on 

2 October 1, 2009. 

3 SEC. 7. REDUCTION IN TAXES ON GASOLINE, DIESEL FUEL, 

4 KEROSENE, AND SPECIAL FUELS FUNDING 

5 HIGHWAY TRUST FUND. 

6 (a) REDUCTION IN TAX RATE.— 

7 (1) IN GENERAL.—Section 4081(a)(2)(A) of the 

8 Internal Revenue Code of 1986 (relating to rates of 

9 tax) is amended— 

10 (A) in clause (i), by striking ‘‘18.3 cents’’ 

11 and inserting ‘‘3.7 cents’’; and 

12 (B) in clause (iii), by striking ‘‘24.3 cents’’ 

13 and inserting ‘‘5.0 cents’’. 

14 (2) CONFORMING AMENDMENTS.— 

15 (A) Section 4081(a)(2)(D) of such Code is 

16 amended— 

17 (i) by striking ‘‘19.7 cents’’ and in18 serting ‘‘4.1 cents’’, and 

19 (ii) by striking ‘‘24.3 cents’’ and in20 serting ‘‘5.0 cents’’. 

21 (B) Section 6427(b)(2)(A) of such Code is 

22 amended by striking ‘‘7.4 cents’’ and inserting 

23 ‘‘1.5 cents’’. 

24 (b) ADDITIONAL CONFORMING AMENDMENTS.— 


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1 (1) Section 4041(a)(1)(C)(iii)(I) of the Internal 

2 Revenue Code of 1986 is amended by striking ‘‘7.3 

3 cents per gallon (4.3 cents per gallon after Sep4 tember 30, 2011)’’ and inserting ‘‘1.4 cents per gal5 lon (zero after September 30, 2016)’’. 

6 (2) Section 4041(a)(2)(B)(ii) of such Code is 

7 amended by striking ‘‘24.3 cents’’ and inserting ‘‘5.0 

8 cents’’. 

9 (3) Section 4041(a)(3)(A) of such Code is 

10 amended by striking ‘‘18.3 cents’’ and inserting ‘‘3.7 

11 cents’’. 

12 (4) Section 4041(m)(1) of such Code is amend13 ed— 

14 (A) in subparagraph (A), by striking 

15 ‘‘2011’’ and inserting ‘‘2016,’’; 

16 (B) in subparagraph (A)(i), by striking 

17 ‘‘9.15 cents’’ and inserting ‘‘1.8 cents’’; 

18 (C) in subparagraph (A)(ii), by striking 

19 ‘‘11.3 cents’’ and inserting ‘‘2.3 cents’’; and 

20 (D) by striking subparagraph (B) and in21 serting the following: 

22 ‘‘(B) zero after September 30, 2016.’’. 

23 (5) Section 4081(d)(1) of such Code is amend24 ed by striking ‘‘4.3 cents per gallon after September 


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1 30, 2011’’ and inserting ‘‘zero after September 30, 

2 2016’’. 

3 (6) Section 9503(b) of such Code is amended— 

4 (A) in paragraphs (1) and (2), by striking 

5 ‘‘October 1, 2011’’ both places it appears and 

6 inserting ‘‘October 1, 2016’’; 

7 (B) in the heading of paragraph (2), by 

8 striking ‘‘OCTOBER 1, 2011’’ and inserting ‘‘OC9 TOBER 1, 2016’’; 

10 (C) in paragraph (2), by striking ‘‘after 

11 September 30, 2011, and before July 1, 2012’’ 

12 and inserting ‘‘after September 30, 2016, and 

13 before July 1, 2017’’; and 

14 (D) in paragraph (6)(B), by striking 

15 ‘‘2009’’ both places it appears and inserting 

16 ‘‘2014’’. 

17 (c) FLOOR STOCK REFUNDS.— 

18 (1) IN GENERAL.—If— 

19 (A) before October 1, 2013, tax has been 

20 imposed under section 4081 of the Internal 

21 Revenue Code of 1986 on any liquid; and 

22 (B) on such date such liquid is held by a 

23 dealer and has not been used and is intended 

24 for sale; 


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1 there shall be credited or refunded (without interest) 

2 to the person who paid such tax (in this subsection 

3 referred to as the ‘‘taxpayer’’) an amount equal to 

4 the excess of the tax paid by the taxpayer over the 

5 amount of such tax which would be imposed on such 

6 liquid had the taxable event occurred on such date. 

7 (2) TIME FOR FILING CLAIMS.—No credit or re8 fund shall be allowed or made under this subsection 

9 unless— 

10 (A) claim therefor is filed with the Sec11 retary of the Treasury before April 1, 2014; 

12 and 

13 (B) in any case where liquid is held by a 

14 dealer (other than the taxpayer) on October 1, 

15 2013— 

16 (i) the dealer submits a request for re17 fund or credit to the taxpayer before Janu18 ary 1, 2014; and 

19 (ii) the taxpayer has repaid or agreed 

20 to repay the amount so claimed to such 

21 dealer or has obtained the written consent 

22 of such dealer to the allowance of the cred23 it or the making of the refund. 

24 (3) EXCEPTION FOR FUEL HELD IN RETAIL

25 STOCKS.—No credit or refund shall be allowed under 


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1 this subsection with respect to any liquid in retail 

2 stocks held at the place where intended to be sold 

3 at retail. 

4 (4) DEFINITIONS.—For purposes of this sub5 section, the terms ‘‘dealer’’ and ‘‘held by a dealer’’ 

6 have the respective meanings given to such terms by 

7 section 6412 of such Code; except that the term 

8 ‘‘dealer’’ includes a producer. 

9 (5) CERTAIN RULES TO APPLY.—Rules similar 

10 to the rules of subsections (b) and (c) of section 

11 6412 and sections 6206 and 6675 of such Code shall 

12 apply for purposes of this subsection. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to fuel removed after September 

15 30, 2013. 

16 SEC. 8. REVENUE ALIGNED BUDGET AUTHORITY. 

17 Section 110(a) of title 23, United States Code, is 

18 amended by striking paragraph (1) and inserting the fol19 lowing: 

20 ‘‘(1) ALLOCATION.—If the amount determined 

21 under section 251(b)(1)(B)(ii)(I)(cc) of the Balanced 

22 Budget and Emergency Deficit Control Act of 1985 

23 (2 U.S.C. 901(b)(2)(B)(ii)(I)(cc)) for fiscal year 

24 2009 or any fiscal year thereafter is greater than 

25 zero, the Secretary, on October 1 of the following 


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1 fiscal year, shall allocate for that following fiscal 

2 year an amount of funds equal to the amount deter3 mined under that section.’’. 

4 SEC. 9. REPORT TO CONGRESS. 

5 Not later than 180 days after the date of enactment 

6 of this Act, after consultation with the appropriate com7 mittees of Congress, the Secretary of Transportation shall 

8 submit a report to Congress describing such technical and 

9 conforming amendments to titles 23 and 49, United States 

10 Code, and such technical and conforming amendments to 

11 other laws, as are necessary to bring those titles and other 

12 laws into conformity with the policy embodied in this Act 

13 and the amendments made by this Act. 

14 SEC. 10. EFFECTIVE DATE CONTINGENT UPON CERTIFI15 CATION OF DEFICIT NEUTRALITY. 

16 (a) PURPOSE.—The purpose of this section is to en17 sure that— 

18 (1) this Act will become effective only if the Di19 rector of the Office of Management and Budget cer20 tifies that this Act is deficit neutral; 

21 (2) discretionary spending limits are reduced to 

22 capture the savings realized in devolving transpor23 tation functions to the State level pursuant to this 

24 Act; and 


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1 (3) the tax reduction made by this Act is not 

2 scored under pay-as-you-go and does not inadvert3 ently trigger a sequestration. 

4 (b) EFFECTIVE DATE CONTINGENCY.—Notwith5 standing any other provision of this Act, this Act and the 

6 amendments made by this Act shall take effect only if— 

7 (1) the Director of the Office of Management 

8 and Budget (referred to in this section as the ‘‘Di9 rector’’) submits the report as required in subsection 

10 (c); and 

11 (2) the report contains a certification by the Di12 rector that, based on the required estimates, the re13 duction in discretionary outlays resulting from the 

14 reduction in contract authority is at least as great 

15 as the reduction in revenues for each fiscal year 

16 through fiscal year 2014. 

17 (c) OMB ESTIMATES AND REPORT.— 

18 (1) REQUIREMENTS.—Not later than 5 cal19 endar days after the date of enactment of this Act, 

20 the Director shall— 

21 (A) estimate the net change in revenues re22 sulting from this Act for each fiscal year 

23 through fiscal year 2014; 

24 (B) estimate the net change in discre25 tionary outlays resulting from the reduction in 


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1 contract authority under this Act for each fiscal 

2 year through fiscal year 2014; 

3 (C) determine, based on those estimates, 

4 whether the reduction in discretionary outlays 

5 is at least as great as the reduction in revenues 

6 for each fiscal year through fiscal year 2014; 

7 and 

8 (D) submit to Congress a report setting 

9 forth the estimates and determination. 

10 (2) APPLICABLE ASSUMPTIONS AND GUIDE11 LINES.— 

12 (A) REVENUE ESTIMATES.—The revenue 

13 estimates required under paragraph (1)(A) 

14 shall be predicated on the same economic and 

15 technical assumptions and scorekeeping guide16 lines that would be used for estimates made 

17 pursuant to section 252(d) of the Balanced 

18 Budget and Emergency Deficit Control Act of 

19 1985 (2 U.S.C. 902(d)). 

20 (B) OUTLAY ESTIMATES.—The outlay esti21 mates required under paragraph (1)(B) shall be 

22 determined by comparing the level of discre23 tionary outlays resulting from this Act with the 

24 corresponding level of discretionary outlays pro25 jected in the baseline under section 257 of the 


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1 Balanced Budget and Emergency Deficit Con2 trol Act of 1985 (2 U.S.C. 907). 

3 (d) CONFORMING ADJUSTMENT TO DISCRETIONARY

4 SPENDING LIMITS.—Upon compliance with the require5 ments specified in subsection (b), the Director shall adjust 

6 the adjusted discretionary spending limits for each fiscal 

7 year through fiscal year 2009 under section 601(a)(2) of 

8 the Congressional Budget Act of 1974 (2 U.S.C. 

9 665(a)(2)) by the estimated reductions in discretionary 

10 outlays under subsection (c)(1)(B). 

11 (e) PAYGO INTERACTION.—Upon compliance with the 

12 requirements specified in subsection (b), no changes in 

13 revenues estimated to result from the enactment of this 

14 Act shall be counted for the purposes of section 252(d) 

15 of the Balanced Budget and Emergency Deficit Control 

16 Act of 1985 (2 U.S.C. 902(d)). 

Æ 


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