I

104TH CONGRESS

2D SESSION H. R. 3469

To improve economic productivity and create thousands of jobs by establishing

an infrastructure reinvestment fund which will provide immediate,

upfront funding of intermodal surface transportation programs, and for

other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 16, 1996

Mr. BORSKI (for himself, Mr. OBERSTAR, Mr. LIPINSKI, Mr. BREWSTER, and

Ms. DELAURO) introduced the following bill; which was referred to the

Committee on Transportation and Infrastructure, and in addition to the

Committees on the Budget, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of

such provisions as fall within the jurisdiction of the committee concerned

A BILL

To improve economic productivity and create thousands of

jobs by establishing an infrastructure reinvestment fund

which will provide immediate, upfront funding of intermodal surface transportation 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 ‘‘Infrastructure Rein5 vestment and Economic Revitalization Act of 1996’’.
2

•HR 3469 IH

1 SEC. 2. FINDINGS AND PURPOSES.

2 (a) FINDINGS.—Congress finds that—

3 (1) the quality of our Nation’s transportation

4 infrastructure and the efficient movement of people

5 and goods are directly linked to our Nation’s eco6 nomic productivity and competitiveness;

7 (2) our Nation’s trading partners, with whom

8 we compete in the global economy, have invested

9 substantial amounts of their resources into capital

10 infrastructure investment and currently enjoy pro11 ductivity growth rates that are more than triple the

12 United States growth rate;

13 (3) to compete in the global marketplace of the

14 1990’s, the United States must substantially in15 crease its level of infrastructure investment as soon

16 as possible;

17 (4) by allowing infrastructure investment to

18 drop from 2.4 percent of the gross national product

19 in the late 1960’s to less than 0.3 percent in the

20 1980’s, our Nation has neglected the foundation of

21 economic growth; and

22 (5) without a substantial influx of new capital,

23 infrastructure investment will not be able to keep

24 pace with the rapid rate of infrastructure decay that

25 will result in crumbling roads, increasing traffic con-
3

•HR 3469 IH

1 gestion, higher costs, and inadequate transit sys2 tems.

3 (b) PURPOSES.—The purposes of this Act are as fol4 lows:

5 (1) Issuance of bonds to finance massive capital

6 infrastructure reinvestment immediately.

7 (2) Creation of thousands of productive new

8 jobs by initiating new rehabilitation and construction

9 projects.

10 (3) Stimulation of the economy and creation of

11 economic growth by increasing the efficiency of our

12 Nation’s infrastructure and investment in its long13 term maintenance.

14 (4) Complementing the purposes of the Inter15 modal Surface Transportation Efficiency Act of

16 1991 by creating a new financing mechanism to pro17 vide a more immediate source of funds.

18 SEC. 3. INFRASTRUCTURE REINVESTMENT FUND.

19 (a) REVENUES FROM HIGHWAY TRUST FUND.—

20 Subsection (c) of section 9503 of the Internal Revenue

21 Code of 1986 (relating to Highway Trust Fund) is amend22 ed by adding at the end thereof the following new para23 graph:

24 ‘‘(7) INFRASTRUCTURE REINVESTMENT

25 FUND.—The Secretary shall pay from time to time
4

•HR 3469 IH

1 from the Highway Trust Fund into the Infrastruc2 ture Reinvestment Fund amounts (as determined by

3 him) equivalent to 4.3 cents per gallon of the taxes

4 imposed by sections 4041(a) and 4081 which are re5 ceived after September 30, 1996, and before October

6 1, 2026.’’.

7 (b) INFRASTRUCTURE REINVESTMENT FUND.—

8 (1) IN GENERAL.—Subchapter A of chapter 98

9 of such Code (relating to trust fund code) is amend10 ed by adding at the end thereof the following new

11 section:

12 ‘‘SEC. 9512. INFRASTRUCTURE REINVESTMENT FUND.

13 ‘‘(a) CREATION OF FUND.—There is established in

14 the Treasury of the United States a trust fund to be

15 known as the ‘Infrastructure Reinvestment Fund’, consist16 ing of such amounts as may be appropriated or credited

17 to such Fund as provided in this section, section

18 9503(c)(7), or section 9602(b).

19 ‘‘(b) EXPENDITURES FROM FUND.—Amounts in the

20 Infrastructure Reinvestment Fund shall be available, as

21 provided in appropriation Acts, only for purposes of carry22 ing out section 5 of the Infrastructure Reinvestment and

23 Economic Revitalization Act of 1996.

24 ‘‘(c) INFRASTRUCTURE BONDS.—
5

•HR 3469 IH

1 ‘‘(1) IN GENERAL.—There are authorized to be

2 appropriated to the Infrastructure Reinvestment

3 Fund, as repayable advances, the maximum amount

4 (less an appropriate reserve) which the Secretary es5 timates may be fully amortized before October 1,

6 2026, based on an amortization schedule comparable

7 to a 30-year bond issued as part of the public debt.

8 ‘‘(2) REPAYMENT OF ADVANCES.—Advances

9 made to the Infrastructure Reinvestment Fund shall

10 be repaid, and interest on such advances shall be

11 paid, under such terms and conditions as the Sec12 retary shall prescribe.

13 ‘‘(3) FINAL REPAYMENT.—No advance shall be

14 made to the Infrastructure Reinvestment Fund after

15 September 30, 2026, and all advances made to such

16 Fund shall be repaid on or before such date.

17 ‘‘(4) RATE OF INTEREST.—Interest on ad18 vances made pursuant to this subsection shall be de19 termined in accordance with section

20 9509(d)(3)(C).’’.

21 (2) CLERICAL AMENDMENT.—The table of sec22 tions for such subchapter A is amended by adding

23 at the end thereof the following new item:

‘‘Sec. 9512. Infrastructure Reinvestment Fund.’’.
6

•HR 3469 IH

1 SEC. 4. OFF-BUDGET STATUS OF FUND.

2 Notwithstanding any other provision of law, the re3 ceipts and disbursements of the Infrastructure Reinvest4 ment Fund shall not be counted as new budget authority,

5 outlays, receipts, or deficit or surplus for purposes of—

6 (1) the budget of the United States Govern7 ment as submitted by the President,

8 (2) the congressional budget, or

9 (3) the Balanced Budget and Emergency Defi10 cit Control Act of 1985.

11 SEC. 5. INFRASTRUCTURE REINVESTMENT PROGRAM.

12 (a) AUTHORIZATION OF APPROPRIATIONS.—There

13 shall be available, out of the Infrastructure Reinvestment

14 Fund, for fiscal year 1997 to the Secretary for carrying

15 out surface transportation programs an amount equal to

16 the aggregate amount advanced to such Fund under sec17 tion 9512(d) of the Internal Revenue Code of 1986 plus

18 interest thereon. Such sums shall remain available until

19 expended.

20 (b) ALLOCATION OF FUNDS AMONG PROGRAMS.—

21 From the funds made available by subsection (a), the Sec22 retary shall make available to carry out a surface trans23 portation program an amount determined by multiply24 ing—

25 (1) the amount of funds made available by sub26 section (a), and
7

•HR 3469 IH

1 (2) the quotient of the amount of funds made

2 available for such program for fiscal year 1996 di3 vided by the aggregate of all funds made available

4 for all such programs for fiscal year 1996.

5 (c) APPLICABILITY OF APPORTIONMENT FORMULAS

6 AND OTHER PROVISIONS.—

7 (1) IN GENERAL.—Except as otherwise pro8 vided by this Act, funds made available to a surface

9 transportation program under subsection (b) shall be

10 subject to apportionment, Federal share, planning,

11 design, period of availability, and other requirements

12 in the same manner and to the same extent as if

13 such funds were made available, out of the Highway

14 Trust Fund, for such program.

15 (2) OBLIGATION LIMITATION.—Funds made

16 available by subsection (a) shall not be subject to

17 any obligation limitation.

18 (d) CONTRACT AUTHORITY.—Approval by the Sec19 retary of a grant, project, or contract with funds made

20 available by subsection (a) shall be deemed a contractual

21 obligation of the United States for payment of the Federal

22 share of the cost of the grant, project, or contract.

23 SEC. 6. DEFINITIONS.

24 In this Act, the following definitions apply:
8

•HR 3469 IH

1 (1) SECRETARY.—The term ‘‘Secretary’’ means

2 the Secretary of Transportation.

3 (2) SURFACE TRANSPORTATION PROGRAM.—

4 The term ‘‘surface transportation program’’ means

5 any program or project for which funds are made

6 available for fiscal year 1997 by or under the Inter7 modal Surface Transportation Efficiency Act of

8 1991 and any Act amended by the Intermodal Sur9 face Transportation Efficiency Act of 1991, includ10 ing title 23, United States Code, chapter 53 of title

11 49, United States Code, and the Surface Transpor12 tation Assistance Act of 1982. Such term shall not

13 include—

14 (A) any project described in section 1103,

15 1104, 1105, 1106, 1107, or 1108 of the Inter16 modal Surface Transportation Efficiency Act of

17 1991; and

18 (B) the national recreation trails funding

19 program under part B of title I of such Act.

Æ