104TH CONGRESS

2D SESSION H. R. 3415

AN ACT

To amend the Internal Revenue Code of 1986 to

cated to the general fund of the Treasury.bus Budget Reconciliation Act of 1993 and dedimotor fuels excise tax rates enacted by the Omnirepeal the 4.3-cent increase in the transportation
104TH CONGRESS

2D SESSION H. R. 3415

AN ACT

To amend the Internal Revenue Code of 1986 to repeal

the 4.3-cent increase in the transportation motor fuels

excise tax rates enacted by the Omnibus Budget Reconciliation Act of 1993 and dedicated to the general

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

3 SECTION 1. PURPOSE.

4 The purpose of this Act is to repeal the 4.3-cent in5 crease in the transportation motor fuels excise tax rates

6 enacted by the Omnibus Budget Reconciliation Act of

7 1993 and dedicated to the general fund of the Treasury.

8 SEC. 2. REPEAL OF 4.3-CENT INCREASE IN FUEL TAX RATES

9 ENACTED BY THE OMNIBUS BUDGET REC10 ONCILIATION ACT OF 1993 AND DEDICATED

11 TO GENERAL FUND OF THE TREASURY.

12 (a) IN GENERAL.—Section 4081 of the Internal Rev13 enue Code of 1986 (relating to imposition of tax on gaso14 line and diesel fuel) is amended by adding at the end the

15 following new subsection:

16 ‘‘(f) REPEAL OF 4.3-CENT INCREASE IN FUEL TAX

17 RATES ENACTED BY THE OMNIBUS BUDGET RECONCILI18 ATION ACT OF 1993 AND DEDICATED TO GENERAL FUND

19 OF THE TREASURY.—

20 ‘‘(1) IN GENERAL.—During the applicable pe21 riod, each rate of tax referred to in paragraph (2)

22 shall be reduced by 4.3 cents per gallon.

23 ‘‘(2) RATES OF TAX.—The rates of tax referred

24 to in this paragraph are the rates of tax otherwise

25 applicable under—
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1 ‘‘(A) subsection (a)(2)(A) (relating to gas2 oline and diesel fuel),

3 ‘‘(B) sections 4091(b)(3)(A) and

4 4092(b)(2) (relating to aviation fuel),

5 ‘‘(C) section 4042(b)(2)(C) (relating to

6 fuel used on inland waterways),

7 ‘‘(D) paragraph (1) or (2) of section

8 4041(a) (relating to diesel fuel and special

9 fuels),

10 ‘‘(E) section 4041(c)(2) (relating to gaso11 line used in noncommercial aviation), and

12 ‘‘(F) section 4041(m)(1)(A)(i) (relating to

13 certain methanol or ethanol fuels).

14 ‘‘(3) COMPARABLE TREATMENT FOR COM15 PRESSED NATURAL GAS.—No tax shall be imposed

16 by section 4041(a)(3) on any sale or use during the

17 applicable period.

18 ‘‘(4) COMPARABLE TREATMENT UNDER CER19 TAIN REFUND RULES.—In the case of fuel on which

20 tax is imposed during the applicable period, each of

21 the rates specified in sections 6421(f)(2)(B),

22 6421(f)(3)(B)(ii), 6427(b)(2)(A), 6427(l)(3)(B)(ii),

23 and 6427(l)(4)(B) shall be reduced by 4.3 cents per

24 gallon.
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1 ‘‘(5) COORDINATION WITH HIGHWAY TRUST

2 FUND DEPOSITS.—In the case of fuel on which tax

3 is imposed during the applicable period, each of the

4 rates specified in subparagraphs (A)(i) and (C)(i) of

5 section 9503(f)(3) shall be reduced by 4.3 cents per

6 gallon.

7 ‘‘(6) APPLICABLE PERIOD.—For purposes of

8 this subsection, the term ‘applicable period’ means

9 the period after the 6th day after the date of the en10 actment of this subsection and before January 1,

11 1997.’’

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

13 this section shall take effect on the date of the enactment

14 of this Act.

15 SEC. 3. FLOOR STOCK REFUNDS.

16 (a) IN GENERAL.—If—

17 (1) before the tax repeal date, tax has been im18 posed under section 4081 or 4091 of the Internal

19 Revenue Code of 1986 on any liquid, and

20 (2) on such date such liquid is held by a dealer

21 and has not been used and is intended for sale,

22 there shall be credited or refunded (without interest) to

23 the person who paid such tax (hereafter in this section

24 referred to as the ‘‘taxpayer’’) an amount equal to the ex25 cess of the tax paid by the taxpayer over the amount of
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1 such tax which would be imposed on such liquid had the

2 taxable event occurred on such date.

3 (b) TIME FOR FILING CLAIMS.—No credit or refund

4 shall be allowed or made under this section unless—

5 (1) claim therefor is filed with the Secretary of

6 the Treasury before the date which is 6 months

7 after the tax repeal date, and

8 (2) in any case where liquid is held by a dealer

9 (other than the taxpayer) on the tax repeal date—

10 (A) the dealer submits a request for refund

11 or credit to the taxpayer before the date which

12 is 3 months after the tax repeal date, and

13 (B) the taxpayer has repaid or agreed to

14 repay the amount so claimed to such dealer or

15 has obtained the written consent of such dealer

16 to the allowance of the credit or the making of

17 the refund.

18 (c) EXCEPTION FOR FUEL HELD IN RETAIL

19 STOCKS.—No credit or refund shall be allowed under this

20 section with respect to any liquid in retail stocks held at

21 the place where intended to be sold at retail.

22 (d) DEFINITIONS.—For purposes of this section—

23 (1) the terms ‘‘dealer’’ and ‘‘held by a dealer’’

24 have the respective meanings given to such terms by
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1 section 6412 of such Code; except that the term

2 ‘‘dealer’’ includes a producer, and

3 (2) the term ‘‘tax repeal date’’ means the 7th

4 day after the date of the enactment of this Act.

5 (e) CERTAIN RULES TO APPLY.—Rules similar to the

6 rules of subsections (b) and (c) of section 6412 of such

7 Code shall apply for purposes of this section.

8 SEC. 4. FLOOR STOCKS TAX.

9 (a) IMPOSITION OF TAX.—In the case of any liquid

10 on which tax was imposed under section 4081 or 4091

11 of the Internal Revenue Code of 1986 before January 1,

12 1997, and which is held on such date by any person, there

13 is hereby imposed a floor stocks tax of 4.3 cents per gal14 lon.

15 (b) LIABILITY FOR TAX AND METHOD OF PAY16 MENT.—

17 (1) LIABILITY FOR TAX.—A person holding a

18 liquid on January 1, 1997, to which the tax imposed

19 by subsection (a) applies shall be liable for such tax.

20 (2) METHOD OF PAYMENT.—The tax imposed

21 by subsection (a) shall be paid in such manner as

22 the Secretary shall prescribe.

23 (3) TIME FOR PAYMENT.—The tax imposed by

24 subsection (a) shall be paid on or before June 30,

25 1997.
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1 (c) DEFINITIONS.—For purposes of this section—

2 (1) HELD BY A PERSON.—A liquid shall be con3 sidered as ‘‘held by a person’’ if title thereto has

4 passed to such person (whether or not delivery to

5 the person has been made).

6 (2) GASOLINE AND DIESEL FUEL.—The terms

7 ‘‘gasoline’’ and ‘‘diesel fuel’’ have the respective

8 meanings given such terms by section 4083 of such

9 Code.

10 (3) AVIATION FUEL.—The term ‘‘aviation fuel’’

11 has the meaning given such term by section 4093 of

12 such Code.

13 (4) SECRETARY.—The term ‘‘Secretary’’ means

14 the Secretary of the Treasury or his delegate.

15 (d) EXCEPTION FOR EXEMPT USES.—The tax im16 posed by subsection (a) shall not apply to gasoline, diesel

17 fuel, or aviation fuel held by any person exclusively for

18 any use to the extent a credit or refund of the tax imposed

19 by section 4081 or 4091 of such Code is allowable for such

20 use.

21 (e) EXCEPTION FOR FUEL HELD IN VEHICLE

22 TANK.—No tax shall be imposed by subsection (a) on gas23 oline or diesel fuel held in the tank of a motor vehicle or

24 motorboat.

25 (f) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL.—
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1 (1) IN GENERAL.—No tax shall be imposed by

2 subsection (a)—

3 (A) on gasoline held on January 1, 1997,

4 by any person if the aggregate amount of gaso5 line held by such person on such date does not

6 exceed 4,000 gallons, and

7 (B) on diesel fuel or aviation fuel held on

8 such date by any person if the aggregate

9 amount of diesel fuel or aviation fuel held by

10 such person on such date does not exceed 2,000

11 gallons.

12 The preceding sentence shall apply only if such per13 son submits to the Secretary (at the time and in the

14 manner required by the Secretary) such information

15 as the Secretary shall require for purposes of this

16 paragraph.

17 (2) EXEMPT FUEL.—For purposes of para18 graph (1), there shall not be taken into account fuel

19 held by any person which is exempt from the tax im20 posed by subsection (a) by reason of subsection (d)

21 or (e).

22 (3) CONTROLLED GROUPS.—For purposes of

23 this subsection—

24 (A) CORPORATIONS.—
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1 (i) IN GENERAL.—All persons treated

2 as a controlled group shall be treated as 1

3 person.

4 (ii) CONTROLLED GROUP.—The term

5 ‘‘controlled group’’ has the meaning given

6 to such term by subsection (a) of section

7 1563 of such Code; except that for such

8 purposes the phrase ‘‘more than 50 per9 cent’’ shall be substituted for the phrase

10 ‘‘at least 80 percent’’ each place it appears

11 in such subsection.

12 (B) NONINCORPORATED PERSONS UNDER

13 COMMON CONTROL.—Under regulations pre14 scribed by the Secretary, principles similar to

15 the principles of subparagraph (A) shall apply

16 to a group of persons under common control

17 where 1 or more of such persons is not a cor18 poration.

19 (g) OTHER LAW APPLICABLE.—All provisions of law,

20 including penalties, applicable with respect to the taxes

21 imposed by section 4081 of such Code in the case of gaso22 line and diesel fuel and section 4091 of such Code in the

23 case of aviation fuel shall, insofar as applicable and not

24 inconsistent with the provisions of this subsection, apply

25 with respect to the floor stock taxes imposed by subsection
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1 (a) to the same extent as if such taxes were imposed by

2 such section 4081 or 4091.

3 SEC. 5. BENEFITS OF TAX REPEAL SHOULD BE PASSED ON

4 TO CONSUMERS.

5 (a) PASSTHROUGH TO CONSUMERS.—

6 (1) SENSE OF CONGRESS.—It is the sense of

7 Congress that—

8 (A) consumers immediately receive the

9 benefit of the repeal of the 4.3-cent increase in

10 the transportation motor fuels excise tax rates

11 enacted by the Omnibus Budget Reconciliation

12 Act of 1993, and

13 (B) transportation motor fuels producers

14 and other dealers take such actions as nec15 essary to reduce transportation motor fuels

16 prices to reflect the repeal of such tax increase,

17 including immediate credits to customer ac18 counts representing tax refunds allowed as

19 credits against excise tax deposit payments

20 under the floor stocks refund provisions of this

21 Act.

22 (2) STUDY.—

23 (A) IN GENERAL.—The Comptroller Gen24 eral of the United States shall conduct a study

25 of the repeal of the 4.3-cent increase in the fuel
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1 tax imposed by the Omnibus Budget Reconcili2 ation of 1993 to determine whether there has

3 been a passthrough of such repeal.

4 (B) REPORT.—Not later than January 31,

5 1997, the Comptroller General of the United

6 States shall report to the Committee on Fi7 nance of the Senate and the Committee on

8 Ways and Means of the House of Representa9 tives the results of the study conducted under

10 subparagraph (A).

11 SEC. 6. AUTHORIZATION OF APPROPRIATIONS FOR EX12 PENSES OF ADMINISTRATION OF THE DE13 PARTMENT OF ENERGY.

14 Section 660 of the Department of Energy Organiza15 tion Act (42 U.S.C. 7270) is amended—

16 (1) by inserting ‘‘(a) IN GENERAL.—’’ before

17 ‘‘APPROPRIATIONS’’; and

18 (2) by adding at the end the following:

19 ‘‘(b) FISCAL YEARS 1997 THROUGH 2002.—There

20 are authorized to be appropriated for salaries and ex21 penses of the Department of Energy for departmental ad22 ministration and other activities in carrying out the pur23 poses of this Act—

24 ‘‘(1) $104,000,000 for fiscal year 1997;

25 ‘‘(2) $104,000,000 for fiscal year 1998;
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1 ‘‘(3) $100,000,000 for fiscal year 1999;

2 ‘‘(4) $90,000,000 for fiscal year 2000;

3 ‘‘(5) $90,000,000 for fiscal year 2001; and

4 ‘‘(6) $90,000,000 for fiscal year 2002.’’.

5 SEC. 7. SPECTRUM AUCTIONS.

6 (a) COMMISSION OBLIGATION TO MAKE ADDITIONAL

7 SPECTRUM AVAILABLE BY AUCTION.—

8 (1) IN GENERAL.—The Federal Communica9 tions Commission shall complete all actions nec10 essary to permit the assignment, by March 31,

11 1998, by competitive bidding pursuant to section

12 309(j) of the Communications Act of 1934 (47

13 U.S.C. 309(j)) of licenses for the use of bands of

14 frequencies that—

15 (A) individually span not less than 12.5

16 megahertz, unless a combination of smaller

17 bands can, notwithstanding the provisions of

18 paragraph (7) of such section, reasonably be ex19 pected to produce greater receipts;

20 (B) in the aggregate span not less than 35

21 megahertz;

22 (C) are located below 3 gigahertz; and

23 (D) have not, as of the date of enactment

24 of this Act—
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1 (i) been assigned or designated by

2 Commission regulation for assignment pur3 suant to such section;

4 (ii) been identified by the Secretary of

5 Commerce pursuant to section 113 of the

6 National Telecommunications and Infor7 mation Administration Organization Act

8 (47 U.S.C. 923); or

9 (iii) reserved for Federal Government

10 use pursuant to section 305 of the Com11 munications Act of 1934 (47 U.S.C. 305).

12 (2) CRITERIA FOR REASSIGNMENT.—In making

13 available bands of frequencies for competitive bid14 ding pursuant to paragraph (1), the Commission

15 shall—

16 (A) seek to promote the most efficient use

17 of the spectrum;

18 (B) take into account the cost to incum19 bent licensees of relocating existing uses to

20 other bands of frequencies or other means of

21 communication;

22 (C) take into account the needs of public

23 safety radio services;
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1 (D) comply with the requirements of inter2 national agreements concerning spectrum allo3 cations; and

4 (E) take into account the costs to satellite

5 service providers that could result from multiple

6 auctions of like spectrum internationally for

7 global satellite systems.

8 (b) PERMANENT AUCTION AUTHORITY.—Paragraph

9 (11) of section 309(j) of the Communications Act of 1934

10 (47 U.S.C. 309(j)(11)) is repealed.

Passed the House of Representatives May 21, 1996.

Attest:

Clerk.