I 

111TH CONGRESS 

1ST SESSION H. R. 2355 

To establish a National Goods Movement Improvement Fund to provide 

funding for infrastructure projects that will improve the movement of 

goods, mitigate environmental damage caused by the movement of goods, 

and enhance the security of transported goods. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 12, 2009 

Ms. RICHARDSON (for herself, Mr. CUMMINGS, Mr. CONYERS, Mr. MEEK of 

Florida, Mr. MCDERMOTT, Ms. LEE of California, Mr. ROHRABACHER, 

Mr. SCOTT of Virginia, and Mrs. TAUSCHER) introduced the following 

bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on 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 establish a National Goods Movement Improvement Fund 

to provide funding for infrastructure projects that will 

improve the movement of goods, mitigate environmental 

damage caused by the movement of goods, and enhance 

the security of transported goods. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Making Opportunities Via Efficient and More Effective 

4 National Transportation Act of 2009’’ or the ‘‘MOVE5 MENT Act of 2009’’. 

6 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents. 

TITLE I—NATIONAL GOODS MOVEMENT IMPROVEMENT 

Sec. 101. Findings. 

Sec. 102. Definitions. 

Sec. 103. National Goods Movement Improvement Program. 

Sec. 104. Administrative provisions. 

Sec. 105. Reporting requirement. 

Sec. 106. Sunset provision. 

TITLE II—FUNDING PROVISIONS 

Sec. 201. National Goods Movement Improvement Fund. 

Sec. 202. Harbor maintenance tax. 

7 TITLE I—NATIONAL GOODS 

8 MOVEMENT IMPROVEMENT 

9 SEC. 101. FINDINGS. 

10 Congress finds the following: 

11 (1) The movement of goods is a form of inter12 state commerce. 

13 (2) Waterborne containerized shipments of im14 ported products valued at approximately $2 trillion 

15 entered the United States last year. 

16 (3) According to the Maritime Administration, 

17 6,867 oceangoing-vessels made 63,804 calls at 

18 United States seaports. Of these ports of call, the 


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1 top 10 seaports handled 88 percent of imported 

2 cargo units in 2007. 

3 (4) According to the Maritime Administration, 

4 the average size of vessels calling at United States 

5 ports increased by 8 percent over the past 5 years. 

6 Containerships were 13 percent larger over this pe7 riod, representing the need to enhance spending on 

8 transportation infrastructure to support the in9 creased amounts of trade. 

10 (5) The number of waterborne containerized 

11 shipments of imported products into the United 

12 States increased by 33 percent between fiscal years 

13 2000 and 2006, from 23.5 million shipments to 31.3 

14 million shipments. 

15 (6) The number of waterborne containerized 

16 shipments in the United States recently declined on 

17 average by approximately 10 percent; however, it is 

18 expected that the number of waterborne container19 ized shipments in the United States will increase by 

20 as much as 350 percent by the year 2020. 

21 (7) The California Air Resources Board, in its 

22 2006 Emission Reduction Plan for Ports and Goods 

23 Movement, calculated that in California alone port 

24 and goods movement pollution contributed to 2,400 

25 premature heart-related deaths, 62,000 cases of 


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1 asthma symptoms, and more than 1 million res2 piratory-related school absences every year. 

3 (8) According to the National Surface Trans4 portation Policy and Revenue Study Commission, 

5 congestion is disrupting household and business ac6 tivities from coast to coast and extracting a large 

7 and expanding penalty on business productivity and 

8 the quality of life of American families. 

9 (9) According to the National Surface Trans10 portation Policy and Revenue Study Commission, 

11 Highway Trust Fund revenues since 2003 have fall12 en by 4 percent a year when adjusted with inflation, 

13 representing a drastic decrease in available funding 

14 for transportation infrastructure. 

15 SEC. 102. DEFINITIONS. 

16 In this title, the following definitions apply: 

17 (1) COVERED PORT.—The term ‘‘covered port’’ 

18 means a seaport or land port of entry in the United 

19 States at which taxes are collected under 4461 of 

20 the Internal Revenue Code of 1986. 

21 (2) ELIGIBLE GOODS MOVEMENT IMPROVEMENT

22 PROJECT.—The term ‘‘eligible goods movement im23 provement project’’ means— 

24 (A) a project eligible for assistance under 

25 title 23, United States Code, that has as its priVerDate Nov 24 2008 06:46 May 14, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2355.IH H2355

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1 mary purpose improving the movement of goods 

2 in interstate commerce, including projects that 

3 relieve truck congestion leading into and out of 

4 ports and invest in existing transportation tech5 nology; 

6 (B) a project to enhance or expand freight 

7 rail service; and 

8 (C) other projects to improve the move9 ment of goods in interstate commerce as the 

10 Secretary determines appropriate, including 

11 projects located on the site of a covered port. 

12 (3) ELIGIBLE ENVIRONMENTAL PROJECT.—The 

13 term ‘‘eligible environmental project’’ means a 

14 project that mitigates environmental damage to air, 

15 water, and soil caused by the movement of goods, in16 cluding projects that promote diesel engine replace17 ment and the use of clean trucks, cold iron tech18 nology, and equipment that reduces smoke stack 

19 emissions from vessels at a port. 

20 (4) ELIGIBLE HOMELAND SECURITY

21 PROJECT.—The term ‘‘eligible homeland security 

22 project’’ means a project to improve cargo inspec23 tion, screening, and security training for workers, in24 cluding projects to educate and train port employees 

25 and workers on relevant security issues. 


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1 (5) ELIGIBLE PROJECT.—The term ‘‘eligible 

2 project’’ means an eligible goods movement improve3 ment project, eligible environmental project, or eligi4 ble homeland security project. 

5 (6) NATIONAL GOODS MOVEMENT IMPROVE6 MENT FUND.—The term ‘‘National Goods Movement 

7 Improvement Fund’’ means the fund established 

8 under section 9511 of the Internal Revenue Code of 

9 1986. 

10 (7) NATIONAL GOODS MOVEMENT IMPROVE11 MENT PROGRAM.—The term ‘‘National Goods Move12 ment Improvement Program’’ means the grant pro13 gram authorized by section 103. 

14 (8) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Transportation. 

16 (9) STATE.—The term ‘‘State’’ means any of 

17 the 50 States and the District of Columbia. 

18 (10) STATE TRANSPORTATION DEPARTMENT.— 

19 The term ‘‘State transportation department’’ has the 

20 meaning such term has under section 101 of title 

21 23, United States Code. 

22 (11) UNITED STATES.—The term ‘‘United 

23 States’’ means the 50 States and the District of Co24 lumbia. 


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1 SEC. 103. NATIONAL GOODS MOVEMENT IMPROVEMENT 

2 PROGRAM. 

3 (a) GENERAL AUTHORITY.—The Secretary shall 

4 carry out a program, to be known as the ‘‘National Goods 

5 Movement Improvement Program’’, to provide funding in 

6 accordance with the requirements of this section for eligi7 ble projects using amounts appropriated out of the Na8 tional Goods Movement Improvement Fund. 

9 (b) ADMINISTRATIVE EXPENSES.—The Secretary 

10 shall pay the administrative costs of the Secretary under 

11 this section using amounts made available to the Secretary 

12 under section 9511(c)(2) of the Internal Revenue Code of 

13 1986, as added by this Act. 

14 (c) APPORTIONMENT OF FUNDS.— 

15 (1) IN GENERAL.—On October 1 of a fiscal 

16 year, the Secretary shall apportion the funds (other 

17 than the administrative expenses referred to in sub18 section (b)) appropriated out of the National Goods 

19 Movement Improvement Fund for the fiscal year to 

20 carry out this section among those States containing 

21 one or more covered ports, in the form of grants, in 

22 the ratio that— 

23 (A) the aggregate amount of funds depos24 ited in the National Goods Movement Improve25 ment Fund during the preceding fiscal year 


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1 that is attributable to covered ports in each 

2 such State; bears to 

3 (B) the aggregate amount of funds depos4 ited in the National Goods Movement Improve5 ment Fund during the preceding fiscal year 

6 that is attributable to covered ports in all such 

7 States. 

8 (2) AVAILABILITY OF AMOUNTS TO STATE

9 TRANSPORTATION DEPARTMENTS.—Amounts appor10 tioned to a State under this subsection shall be 

11 made available to its State transportation depart12 ment. Such amounts may not be transferred, loaned, 

13 or deferred to any other entity for any other pur14 pose. 

15 (3) ELIGIBLE PROJECTS.—A State transpor16 tation department shall obligate funds apportioned 

17 to the State under this subsection only for eligible 

18 projects that have been approved by the Secretary in 

19 accordance with such procedures as the Secretary 

20 may require. 

21 (d) ALLOCATIONS OF APPORTIONED FUNDS.— 

22 (1) ALLOCATION AMONG COVERED PORTS.—A 

23 State transportation department shall allocate funds 

24 apportioned to the State under subsection (c) for a 

25 fiscal year among the covered ports located in the 


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1 State, which generate revenue for the National 

2 Goods Movement Improvement Fund, in the ratio 

3 that— 

4 (A) the aggregate amount of funds depos5 ited in the National Goods Movement Improve6 ment Fund during the preceding fiscal year 

7 that is attributable to each covered port in the 

8 State; bears to 

9 (B) the aggregate amount of funds depos10 ited in the National Goods Movement Improve11 ment Fund during the preceding fiscal year 

12 that is attributable to all covered ports in the 

13 State. 

14 (2) ALLOCATION AMONG TYPES OF

15 PROJECTS.—Of the amounts allocated to a covered 

16 port under paragraph (1) for a fiscal year— 

17 (A) 90 percent shall be available only for 

18 eligible goods movement improvement projects; 

19 (B) 7 percent shall be available only for el20 igible environmental projects; and 

21 (C) 3 percent shall be available only for eli22 gible homeland security projects. 

23 (e) PROJECT SELECTION.— 

24 (1) IN GENERAL.—Amounts allocated by a 

25 State department of transportation to a covered port 


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1 under subsection (d) shall be distributed by the 

2 State department of transportation to projects 

3 that— 

4 (A) are selected by the State department 

5 of transportation in consultation with the owner 

6 or operator of the covered port and any applica7 ble regional planning commission; and 

8 (B) except as provided by paragraph (3), 

9 are physically located, in whole or in part, on 

10 the site of the covered port or within a 40-mile 

11 radius of such a site. 

12 (2) PROJECT SELECTION GUIDELINES.— 

13 (A) IN GENERAL.—Not later than 180 

14 days after the date of enactment of this Act, 

15 the Secretary shall establish guidelines for the 

16 selection of projects for grant funding under 

17 this section. 

18 (B) AVAILABILITY OF GUIDELINES.—The 

19 Secretary shall make the guidelines established 

20 under this paragraph available to State depart21 ments of transportation, owners and operators 

22 of covered ports, owners and operators of rail23 roads, and applicable regional planning commis24 sions. 


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1 (C) MINIMUM REQUIREMENTS.—In estab2 lishing the guidelines under this subsection, the 

3 Secretary shall ensure that the State depart4 ment of transportation receiving grant funding 

5 under this title can demonstrate— 

6 (i) a financial need for the use of Fed7 eral funding for the project; and 

8 (ii) a clear and definable purpose for 

9 the project, including how the project will 

10 promote one or more of the goals of— 

11 (I) improving highway, rail, and 

12 port goods movement; 

13 (II) mitigating environmental 

14 damage to air, water, and soil caused 

15 by the movement of goods and pro16 moting the use of clean trucks or die17 sel replacement; and 

18 (III) improving cargo inspection, 

19 screening, and security training for 

20 workers, including projects to educate 

21 and train port employees and workers 

22 on relevant security issues. 

23 (D) PROJECTS ACCOMPLISHING MULTIPLE

24 GOALS.—In establishing the guidelines under 

25 this paragraph, the Secretary shall ensure the 


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1 selection of projects that accomplish the max2 imum number of goals described in subpara3 graph (C)(ii). 

4 (E) PLANNING REQUIREMENTS.—In estab5 lishing the guidelines under this paragraph, the 

6 Secretary shall ensure that— 

7 (i) eligible goods movement improve8 ment projects are selected in accordance 

9 with applicable metropolitan, regional, and 

10 statewide planning processes, including 

11 sections 134 and 135 of title 23, United 

12 States Code; and 

13 (ii) all attempts are made by State de14 partments of transportation receiving 

15 grant funding under this title to include 

16 regional and State transportation organiza17 tions in the selection process. 

18 (3) EXCEPTION TO PROJECT LOCATION RE19 QUIREMENT.—The Secretary may waive the applica20 tion of paragraph (1)(B) with respect to not to ex21 ceed 10 percent to the funds allocated to a covered 

22 port for a fiscal year under subsection (d)(1) if— 

23 (A) the State, in consultation with the 

24 owner or operator of the covered port and the 

25 appropriate planning commission, submits an 


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1 application for the waiver, at such time and in 

2 such form as the Secretary may require; 

3 (B) any project constructed pursuant to 

4 the waiver— 

5 (i) is located within a goods movement 

6 chain that originates or ends at the cov7 ered port; 

8 (ii) is designed to accomplish multiple 

9 goals described in paragraph (2)(C)(ii); 

10 and 

11 (iii) is physically located, in whole or 

12 in part, within a 150-mile radius of the 

13 covered port. 

14 (4) REPORTING REQUIREMENT.—The Secretary 

15 shall transmit to the Committee on Transportation 

16 and Infrastructure of the House of Representatives 

17 and the Committee on Public Works and the Envi18 ronment of the Senate a written notice of each waiv19 er issued under paragraph (3), including an expla20 nation of the reasons for granting the waiver. 

21 (f) PROJECT IMPLEMENTATION.—A State transpor22 tation department may carry out an eligible project using 

23 grant funds made available under this title either directly 

24 or by entering into appropriate arrangements with owners 


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1 and operators of covered ports, owners and operators of 

2 railroads, and other entities. 

3 (g) FREIGHT IMPACT STUDY.—The Secretary shall 

4 require each State receiving funds under this section to 

5 provide to the Secretary, on an annual basis, data on the 

6 amount of cargo transported through the State by a sea7 port or inland port. 

8 SEC. 104. ADMINISTRATIVE PROVISIONS. 

9 (a) DATE AVAILABLE FOR OBLIGATION.—Authoriza10 tions from the National Goods Movement Improvement 

11 Fund shall be available for obligation on the date of their 

12 apportionment or on October 1 of the fiscal year for which 

13 they are authorized, whichever occurs first. 

14 (b) PERIOD OF AVAILABILITY.—Funds apportioned 

15 to a State for a project shall remain available for obliga16 tion for such purpose for a period of 2 years after the 

17 last day of the fiscal year for which the funds are author18 ized. Any funds so apportioned that remain unobligated 

19 at the end of such period shall be reallocated among the 

20 covered States at the discretion of the Secretary. 

21 (c) GRANTS AS CONTRACTUAL OBLIGATIONS.—A 

22 grant for a project under this title that is approved by 

23 the Secretary is a contractual obligation of the Govern24 ment to pay the Federal share of the cost of the project. 


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1 (d) CONSTRUCTION STANDARDS.—A project to be 

2 carried out with assistance under this title that is for a 

3 highway that is on a Federal-aid system (as such terms 

4 are defined in section 101 of title 23, United States Code) 

5 shall be constructed to the same standards that would 

6 apply if such project was being carried out with assistance 

7 under chapter 1 of title 23, United States Code. 

8 (e) PREVAILING RATE OF WAGE.—Section 113 of 

9 title 23, United States Code, shall apply to a project being 

10 carried out with assistance provided under this title in the 

11 same manner and to the same extent as such section 

12 would apply if such project was being carried out with as13 sistance provided under chapter 1 of title 23, United 

14 States Code. 

15 (f) FEDERAL SHARE.— 

16 (1) IN GENERAL.—The Federal share of the 

17 cost of a project for which a grant is made under 

18 this title shall be 90 percent. 

19 (2) NON-FEDERAL SHARE.—The non-Federal 

20 share of the cost of a project for which a grant is 

21 made under this title may not be provided from Fed22 eral funds made available under any other law (in23 cluding funds from the Highway Trust Fund). 

24 (3) WAIVERS.— 


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1 (A) IN GENERAL.—If the Secretary deter2 mines that a project is a collaboration between 

3 multiple counties and multiple regional plan4 ning commissions and has a national signifi5 cance in promoting goods movement, the Sec6 retary may waive the requirement for payment 

7 of the non-Federal share of the cost of the 

8 project under this subsection. 

9 (B) WRITTEN JUSTIFICATIONS.—Before 

10 issuing a waiver for a project under subpara11 graph (A), the Secretary shall submit to Con12 gress a written justification for the waiver, in13 cluding— 

14 (i) a description of the project, includ15 ing its location and cost; and 

16 (ii) a description of the national im17 pact the project will have in the United 

18 States on enhancing the efficiency of the 

19 movement of goods, mitigating environ20 mental damage caused by the movement of 

21 goods and enhancing the security of the 

22 movement of goods. 

23 (C) LIMITATION.—The Secretary may 

24 issue waivers under subparagraph (A) with re25 spect to not to exceed 20 percent to the grant 


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1 funds made available in a fiscal year under this 

2 title. 

3 (g) PROHIBITION.—No funds made available under 

4 this section may be used by a grant recipient to conduct 

5 a study related to a future project. 

6 (h) USE OF EXISTING AND PROVEN TECHNOLOGY.— 

7 All attempts should be made to use existing and proven 

8 technology when carrying out eligible projects under this 

9 title. 

10 SEC. 105. REPORTING REQUIREMENT. 

11 (a) REPORT TO CONGRESS.—Not later than Decem12 ber 31, 2011, and annually thereafter during the term of 

13 the National Goods Movement Improvement Program (in 

14 this section referred to as the ‘‘program’’), the Secretary 

15 shall submit to Congress a report on projects submitted, 

16 projects approved for funding, and the results of the pro17 gram, including the effects of the program on mitigating 

18 the environmental damage caused by the movement of 

19 goods and enhancing the security of the movement of 

20 goods. 

21 (b) CONTENTS.—The report to be submitted under 

22 subsection (a) shall include, at a minimum— 

23 (1) a description of the impact that the pro24 gram has had in the United States on enhancing the 

25 efficiency of goods movement; 


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1 (2) a list identifying each project selected for 

2 funding under the program during the prior fiscal 

3 year and the amount of funding provided under this 

4 title for the project; 

5 (3) a list identifying any projects that were sub6 mitted to receive funding but were denied; 

7 (4) a description of the impact, if any, that the 

8 program has had on the cost of imported consumer 

9 goods in the United States; 

10 (5) an assessment of the current condition of 

11 the National Goods Movement Improvement Fund; 

12 (6) the results of a study, to be conducted by 

13 the Secretary using data obtained under section 

14 103(g), detailing the amount of cargo that is trans15 ported through each State by a seaport or inland 

16 port; 

17 (7) recommendations regarding the potential 

18 for expansion or other changes to the program, in19 cluding adjustments to the harbor maintenance tax 

20 to ensure that the tax is producing sufficient fund21 ing for the program; and 

22 (8) recommendations regarding whether the 

23 program should be reauthorized by Congress and, if 

24 so, whether the harbor maintenance tax should be 


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1 increased or decreased to support infrastructure 

2 spending. 

3 (c) CONSULTATION.—In developing the report to be 

4 submitted under subsection (a), the Secretary shall con5 sult with the Secretary of Commerce, the Secretary of 

6 Homeland Security, and the Administrator of the Envi7 ronmental Protection Agency. 

8 SEC. 106. SUNSET PROVISION. 

9 The authority of the Secretary to make grants under 

10 this title shall continue in effect until October 1, 2019. 

11 TITLE II—FUNDING PROVISIONS 

12 SEC. 201. NATIONAL GOODS MOVEMENT IMPROVEMENT 

13 FUND. 

14 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

15 Internal Revenue Code of 1986 (relating to the trust fund 

16 code) is amended by adding at the end thereof the fol17 lowing new section: 

18 ‘‘SEC. 9511. NATIONAL GOODS MOVEMENT IMPROVEMENT 

19 FUND. 

20 ‘‘(a) CREATION OF FUND.—There is hereby estab21 lished in the Treasury of the United States a fund to be 

22 known as the ‘National Goods Movement Improvement 

23 Fund’, consisting of such amounts as may be— 


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1 ‘‘(1) appropriated to the National Goods Move2 ment Improvement Fund as provided in this section, 

3 or 

4 ‘‘(2) credited to the National Goods Movement 

5 Improvement Fund as provided in section 9602(b). 

6 ‘‘(b) TRANSFER TO NATIONAL GOODS MOVEMENT

7 IMPROVEMENT FUND OF AMOUNTS EQUIVALENT TO CER8 TAIN TAXES.—There are hereby appropriated to the Na9 tional Goods Movement Improvement Fund amounts 

10 equivalent to 71.43 percent of the taxes received in the 

11 Treasury under section 4461 (relating to harbor mainte12 nance tax). 

13 ‘‘(c) EXPENDITURES FROM NATIONAL GOODS MOVE14 MENT IMPROVEMENT FUND.—Amounts in the National 

15 Goods Movement Improvement Fund shall be available to 

16 the Secretary of Transportation, as provided in advance 

17 in appropriations Acts, for fiscal years beginning after the 

18 second September 30th after the date of the enactment 

19 of the Making Opportunities Via Efficient and More Ef20 fective National Transportation Act of 2009— 

21 ‘‘(1) for making expenditures to carry out sec22 tion 103 of such Act, and 

23 ‘‘(2) for the payment of all expenses of adminis24 tration incurred for any fiscal year by the Secretary 

25 of Transportation related to the administration of 


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1 the program established by section 103 of such Act, 

2 and by the Department of the Treasury, the Army 

3 Corps of Engineers, and the Department of Com4 merce related to the administration of the tax im5 posed under section 4461(a)(2), but not in excess of 

6 an amount equal to one percent of the total balance 

7 of the fund on the last day of the preceding fiscal 

8 year or $10,000,000, whichever is less.’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 for such subchapter A is amended by adding at the end 

11 thereof the following: 

‘‘Sec. 9511. National Goods Movement Improvement Fund.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

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

14 of this Act. 

15 SEC. 202. HARBOR MAINTENANCE TAX. 

16 (a) IMPOSITION OF TAX.—Section 4461 of the Inter17 nal Revenue Code of 1986 is amended to read as follows. 

18 ‘‘SEC. 4461. IMPOSITION OF TAX. 

19 ‘‘(a) GENERAL RULE.—There is hereby imposed a 

20 tax on— 

21 ‘‘(1) any port use, and 

22 ‘‘(2) commercial cargo entering the customs 

23 territory of the United States other than by port use 

24 following foreign port use. 

25 ‘‘(b) AMOUNT OF TAX.— 


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1 ‘‘(1) PORT USE.—The amount of the tax im2 posed by subsection (a)(1) shall be an amount equal 

3 to 0.4375 percent of the value of the commercial 

4 cargo involved. 

5 ‘‘(2) COMMERCIAL CARGO ENTERING THE

6 UNITED STATES FOLLOWING FOREIGN PORT USE.— 

7 The amount of the tax imposed by subsection (a)(2) 

8 shall be an amount equal to 0.3125 percent of the 

9 value of the commercial cargo involved. 

10 ‘‘(c) LIABILITY AND TIME OF IMPOSITION OF TAX.— 

11 ‘‘(1) LIABILITY.—The tax imposed by sub12 section (a) shall be paid by the importer of the cargo 

13 with respect to which tax is imposed under sub14 section (a). 

15 ‘‘(2) TIME OF IMPOSITION.— 

16 ‘‘(A) PORT USE.—Except as provided by 

17 regulations, the tax imposed by subsection 

18 (a)(1) shall be imposed at the time of unload19 ing. 

20 ‘‘(B) COMMERCIAL CARGO ENTERING THE

21 UNITED STATES FOLLOWING FOREIGN PORT

22 USE.—Except as provided by regulations, the 

23 tax imposed by subsection (a)(2) shall be im24 posed at the time the commercial cargo enters 

25 the customs territory of the United States.’’. 


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1 (b) DEFINITIONS.—Subsection (a) of section 4462 of 

2 such Code is amended by adding at the end thereof the 

3 following: 

4 ‘‘(6) FOREIGN PORT USE.—The term ‘‘foreign 

5 port use’’ means the unloading of commercial cargo 

6 from a commercial vessel at a foreign port. 

7 ‘‘(7) FOREIGN PORT.—The term ‘‘foreign port’’ 

8 means any channel or harbor (or component thereof) 

9 in Mexico or Canada, which— 

10 ‘‘(A) is not an inland waterway, and 

11 ‘‘(B) is open to public navigation.’’. 

12 (c) EXCEPTIONS.—Subsection (g) of section 4462 of 

13 such Code is amended by adding at the end the following 

14 new paragraph: 

15 ‘‘(4) GOODS ORIGINATING IN CANADA OR MEX16 ICO.—No tax shall be imposed under section 

17 4461(a)(2) on any good, commodity, or product 

18 which originated in Canada or Mexico.’’. 

19 (d) REDUCTION OF TAX IN CASES OF PORT USE

20 SUBJECT TO STATE OR LOCAL FEES.—Section 4462 of 

21 such Code is amended— 

22 (1) by redesignating subsection (i) as subsection 

23 (j); and 

24 (2) by inserting after subsection (h) the fol25 lowing: 


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1 ‘‘(i) PORT USE SUBJECT TO STATE OR LOCAL

2 FEES.— 

3 ‘‘(1) REDUCTION OF TAX.—The Secretary may 

4 reduce the amount of the tax imposed for port use 

5 at an individual port under section 4461(a)(1) if— 

6 ‘‘(A) the port use is subject to a State or 

7 local fee, and 

8 ‘‘(B) the revenues from the State or local 

9 fee are reserved for projects and activities to 

10 improve the movement of commercial cargo in 

11 commerce, as determined by the Secretary in 

12 consultation with the Secretary of Transpor13 tation. 

14 ‘‘(2) AMOUNT OF REDUCTION.—The amount of 

15 a reduction under paragraph (1) shall be lessor of— 

16 ‘‘(A) the amount of the State or local fee 

17 involved, and 

18 ‘‘(B) an amount equal to 10 percent of the 

19 tax that would otherwise apply to the port use 

20 under section 4461(a)(1).’’. 

21 (e) CONFORMING AMENDMENTS RELATING TO HAR22 BOR MAINTENANCE TRUST FUND.— 

23 (1) TRANSFER TO HARBOR MAINTENANCE

24 TRUST FUND OF AMOUNTS EQUIVALENT TO CERTAIN

25 TAXES.—Section 9505(b) of such Code is amended 


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1 by striking ‘‘amounts equivalent to the taxes re2 ceived’’ and inserting ‘‘amounts equivalent to 28.57 

3 percent of the taxes received’’. 

4 (2) EXPENDITURES FROM HARBOR MAINTE5 NANCE TRUST FUND FOR ADMINISTRATIVE EX6 PENSES.—Section 9505(c)(3) of such Code is 

7 amended by striking ‘‘subchapter A of chapter 36 

8 (relating to harbor maintenance tax)’’ and inserting 

9 ‘‘the tax imposed under section 4461(a)(1)’’. 

10 (f) GUIDELINES FOR CARRYING OUT REDUCTION IN

11 TAX.—Not later than 90 days after the date of the enact12 ment of this Act, the Secretary of the Treasury shall es13 tablish guidelines for the approval or denial of a reduction 

14 in tax under section 4462(i) of the Internal Revenue Code 

15 of 1986 (as added by this section). Such guidelines shall 

16 include procedures for States seeking such reduction to 

17 inform the Secretary of Transportation in writing of their 

18 request for a reduction. 

19 (g) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to port use and commercial cargo 

21 entering the United States on or after on the 90th day 

22 after the date of the enactment of this Act. 

Æ 


wwoods2 on PRODPC68 with BILLS