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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1971 Introduced in Senate (IS)]

104th CONGRESS
  2d Session
                                S. 1971

   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

                             July 18, 1996

  Mr. Mack  (for himself, Mr. DeWine, Mr. Nickles, Mr. Thurmond, Mr. 
    Graham, Mr. Inhoff, Mr. Coats, Mr. Faircloth, and Mr. Abraham) 
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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transportation Empowerment Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) it is the policy of the United States to promote a 
        modern, efficient, safe, and environmentally sound 
        transportation network, in order to maintain and improve the 
        quality of life in the United States, and to enable the 
        domestic industries of the United States to be competitive in 
        the world marketplace;
            (2)(A) Federal transportation policies no longer adequately 
        serve the transportation needs of the United States;
            (B) Federal regulations, micromanagement, and earmarks cost 
        States billions of dollars annually and hinder the ability of 
        States to maintain, modernize, and expand their transportation 
        systems; and
            (C) the legacy of our federally run transportation system 
        will be an infrastructure that many acknowledge our present 
        system cannot support and will not meet the needs of growing 
        populations;
            (3)(A) maintaining a modern and efficient transportation 
        system does not require Federal micromanagement of States' 
        transportation dollars;
            (B) States have the financial and technical abilities 
        necessary to maintain and improve their transportation without 
        paternalistic Federal oversight; and
            (C) States have the incentives and ability to maintain the 
        quality, safety, and continuity of all roads, including routes 
        on the Interstate System; and
            (4)(A) with the completion of the Interstate System, the 
        transportation infrastructure needs of the United States have 
        shifted to maintaining, modernizing, and expanding the 
        Interstate System; and
            (B) States are faced with billions of dollars in unmet 
        maintenance and modernization needs and a highly restrictive 
        and costly Federal program.
    (b) Purposes.--The purposes of this Act are--
            (1) to return primary transportation program responsibility 
        and taxing authority to the States so as to--
                    (A) free States' transportation dollars from 
                Federal micromanagement, earmarking, and budgetary 
                pressures; and
                    (B) enable decisions regarding which infrastructure 
                projects will be built, how they will be financed, and 
                how they will be regulated to be made by persons best 
                able to make the decisions: people who drive on the 
                highways;
            (2) through interstate compacts and in conjunction with 
        metropolitan planning organizations established under section 
        134 of title 23, United States Code, to permit States to 
        jointly plan and finance infrastructure improvements and ensure 
        quality and continuity for infrastructure improvements without 
        mandates from the Federal Government; and
            (3) in carrying out paragraphs (1) and (2), to reduce 
        Federal spending and receipts by a commensurate amount in order 
        to ensure deficit neutrality.

SEC. 3. CONTINUATION OF FUNDING FOR CORE HIGHWAY PROGRAMS.

    (a) In General.--
            (1) Funding.--Section 1003 of the Intermodal Surface 
        Transportation Efficiency Act of 1991 (Public Law 102-240; 105 
        Stat. 1918) is amended by striking subsection (a) and inserting 
        the following new subsection:
    ``(a) Highway Trust Fund.--For the purpose of carrying out title 
23, United States Code, the following sums are authorized to be 
appropriated out of the Highway Trust Fund:
            ``(1) Interstate maintenance program.--For the Interstate 
        maintenance program under section 119 of the title, 
        $2,431,000,000 for fiscal year 1992, $2,913,000,000 for fiscal 
        year 1993, $2,914,000,000 for each of fiscal years 1994 through 
        1997, $2,989,000,000 for fiscal year 1998, $3,083,000,000 for 
        fiscal year 1999, $3,170,000,000 for fiscal year 2000, and 
$3,259,000,000 for fiscal year 2001.
            ``(2) Bridge program.--
                    ``(A) Full bridge program.--For the bridge program 
                under section 144 of the title (as in effect on the day 
                before the date of enactment of the Transportation 
                Empowerment Act), $2,288,000,000 for fiscal year 1992, 
                $2,762,000,000 for each of fiscal years 1993 through 
                1995, and $2,763,000,000 for each of fiscal years 1996 
                and 1997.
                    ``(B) Interstate and indian reservation bridge 
                program.--For the Interstate and Indian reservation 
                bridge program under section 144 of the title, 
                $1,183,000,000 for fiscal year 1998, $1,217,000,000 for 
                fiscal year 1999, $1,251,000,000 for fiscal year 2000, 
                and $1,286,000,000 for fiscal year 2001.
            ``(3) Federal lands highways program.--
                    ``(A) Indian reservation roads.--For Indian 
                reservation roads under section 204 of the title, 
                $159,000,000 for fiscal year 1992, $191,000,000 for 
                each of fiscal years 1993 through 1997, $197,000,000 
                for fiscal year 1998, $202,000,000 for fiscal year 
                1999, $208,000,000 for fiscal year 2000, and 
                $214,000,000 for fiscal year 2001.
                    ``(B) Public lands highways.--For public lands 
                highways under section 204 of the title, $143,000,000 
                for fiscal year 1992, $171,000,000 for each of fiscal 
                years 1993 through 1995, $172,000,000 for each of 
                fiscal years 1996 and 1997, $177,000,000 for fiscal 
                year 1998, $182,000,000 for fiscal year 1999, 
                $187,000,000 for fiscal year 2000, and $192,000,000 for 
                fiscal year 2001.
                    ``(C) Parkways and park roads.--For parkways and 
                park roads under section 204 of the title, $69,000,000 
                for fiscal year 1992, $83,000,000 for each of fiscal 
                years 1993 through 1995, $84,000,000 for each of fiscal 
                years 1996 and 1997, $86,000,000 for fiscal year 1998, 
                $89,000,000 for fiscal year 1999, $91,000,000 for 
                fiscal year 2000, and $94,000,000 for fiscal year 
                2001.''.
            (2) Federal-aid system.--Section 103(a) of title 23, United 
        States Code, is amended by striking ``systems are the 
        Interstate System and the National Highway System'' and 
        inserting ``system is the Interstate System''.
            (3) Interstate maintenance program.--Section 119(f) of 
        title 23, United States Code, is amended--
                    (A) in paragraph (1), by striking ``If'' and 
                inserting ``For each of fiscal years 1991 through 1997, 
                if''; and
                    (B) in paragraph (2)(B), by inserting ``through 
                fiscal year 1997'' after ``thereafter''.
            (4) Interstate bridge program.--Section 144 of title 23, 
        United States Code, is amended--
                    (A) in subsection (d)--
                            (i) by inserting ``on the Federal-aid 
                        system or described in subsection (c)(3)'' 
                        after ``highway bridge'' each place it appears; 
                        and
                            (ii) by inserting ``on the Federal-aid 
                        system or described in subsection (c)(3)'' 
                        after ``highway bridges'' each place it 
                        appears;
                    (B) in the second sentence of subsection (e)--
                            (i) in paragraph (1), by adding ``and'' at 
                        the end;
                            (ii) in paragraph (2), by striking the 
                        comma at the end and inserting a period; and
                            (iii) by striking paragraphs (3) and (4);
                    (C) in the first sentence of subsection (l), by 
                inserting ``on the Federal-aid system or described in 
                subsection (c)(3)'' after ``any bridge'';
                    (D) in subsection (m), by inserting ``on the 
                Federal-aid system or described in subsection (c)(3)'' 
                after ``any bridge''; and
                    (E) in the first sentence of subsection (n), by 
                inserting ``for each of fiscal years 1991 through 
                1997,'' after ``of law,''.
            (5) National defense highways.--Section 311 of title 23, 
        United States Code, is amended--
                    (A) in the first sentence, by striking ``under 
                subsection (a) of section 104 of this title'' and 
                inserting ``to carry out this section''; and
                    (B) by striking the second sentence.
            (6) Termination of minimum allocation.--Section 157 of 
        title 23, United States Code, is amended--
                    (A) in subsection (a)(4), by striking ``fiscal year 
                1992 and each fiscal year thereafter'' and inserting 
                ``each of fiscal years 1992 through 1997''; and
                    (B) in subsection (e), by striking ``the fiscal 
                years ending on or after September 30, 1983'' and 
                inserting ``fiscal years 1983 through 1997''.
    (b) Expenditures From Highway Trust Fund.--
            (1) Expenditures for core programs.--Subsection (c) of 
        section 9503 of the Internal Revenue Code of 1986 (relating to 
        expenditures from Highway Trust Fund) is amended--
                    (A) by striking ``October 1, 1997'' each place it 
                appears in paragraphs (1), (4)(A)(i), and (5)(A) and 
                inserting ``October 1, 2001'';
                    (B) by striking ``as in effect on the date of the 
                enactment of the Intermodal Surface Transportation 
                Efficiency Act of 1991'' in paragraph (1) and inserting 
                ``as in effect on the date of the enactment of the 
                Transportation Empowerment Act'';
                    (C) by striking ``July 1, 2000'' each place it 
                appears in paragraphs (2)(A)(i) and (3) and inserting 
                ``July 1, 2002'';
                    (D) by striking ``October 1, 1999'' in paragraph 
                (2)(A)(ii) and inserting ``October 1, 2001'';
                    (E) by striking ``January 1, 1999'' in paragraph 
                (2)(A)(ii) and inserting ``January 1, 2001''; and
                    (F) by striking ``September 30, 1997'' in paragraph 
                (6)(E) and inserting ``September 30, 2001''.
            (2) Amounts available for core program expenditures.--
        Section 9503 of such Code (relating to the Highway Trust Fund) 
        is amended by adding at the end the following new subsection:
    ``(g) Core Programs Financing Rate.--For purposes of this section--
            ``(1) In general.--Except as provided in paragraph (2), in 
        the case of gasoline, special motor fuels, and diesel fuel, the 
        core programs financing rate is--
                    ``(A) after September 30, 1997, and before October 
                1, 1998, so much of the Highway Trust Fund financing 
                rate as does not exceed 7 cents per gallon,
                    ``(B) after September 30, 1998, and before October 
                1, 1999, so much of the Highway Trust Fund financing 
                rate as does not exceed 2 cents per gallon, and
                    ``(C) after September 30, 1999, the Highway Trust 
                Fund financing rate.
            ``(2) Application of rate.--In the case of fuels used as 
        described in paragraph (4)(D), (5)(B), or (6)(D) of subsection 
        (c), the core programs financing rate is zero.''.
    (c) Termination of Transfers to Mass Transit Account.--
            (1) In general.--Paragraph (2) of section 9503(e) of such 
        Code (relating to Mass Transit Account) is amended by striking 
        ``2 cents'' and inserting ``2 cents (zero, on and after October 
        1, 1997)''.
            (2) Authorization to expend remaining balances in 
        account.--Paragraph (3) of section 9503(e) of such Code is 
        amended by striking ``before October 1, 1997''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1997.

SEC. 4. INFRASTRUCTURE SPECIAL ASSISTANCE FUND.

    (a) Balance of Core Programs Financing Rate Deposited in Fund.--
            (1) In general.--Section 9503 of the Internal Revenue Code 
        of 1986, as amended by section 3(b)(2), is amended by adding at 
        the end the following new subsection:
    ``(h) Establishment of Infrastructure Special Assistance Fund.--
            ``(1) Creation of fund.--There is established in the 
        Highway Trust Fund a separate fund to be known as the 
        `Infrastructure Special Assistance Fund' consisting of such 
        amounts as may be transferred or credited to the Infrastructure 
        Special Assistance Fund as provided in this subsection or 
        section 9602(b).
            ``(2) Transfers to infrastructure special assistance 
        fund.--On the first day of each fiscal year, the Secretary, in 
        consultation with the Secretary of Transportation, shall 
        determine the excess (if any) of--
                    ``(A) the sum of--
                            ``(i) the amounts appropriated in such 
                        fiscal year to the Highway Trust Fund under 
                        subsection (b) which are attributable to the 
core programs financing rate for such year, plus
                            ``(ii) the amounts appropriated in such 
                        fiscal year to the Highway Trust Fund under 
                        subsection (b) which are attributable to taxes 
                        under sections 4051, 4061, 4071, and 4481 for 
                        such year, plus
                            ``(iii) the amount of the total unobligated 
                        balance in the Highway Trust Fund for such 
                        fiscal year, over
                    ``(B) the amount appropriated under subsection 
                (c)(1) for such fiscal year,
        and shall transfer such excess to the Infrastructure Special 
        Assistance Fund.
            ``(3) Expenditures from fund.--Amounts in the 
        Infrastructure Special Assistance Fund shall be available, as 
        provided by appropriation Acts, for making expenditures under 
        transportation-related programs as authorized by law.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect on October 1, 1997.
    (b) Funding of Other Programs.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary of Transportation shall 
        submit a report to Congress proposing which programs 
        established under titles 23 and 49, United States Code, and the 
        Intermodal Surface Transportation Efficiency Act of 1991 
        (Public Law 102-240) that are not funded under the amendments 
        made by this Act should be funded for fiscal year 1998 and 
        later fiscal years using amounts in the Infrastructure Special 
        Assistance Fund established by section 9503(h) of the Internal 
        Revenue Code of 1986 (as added by subsection (a)).
            (2) Types of programs.--Programs for which funding may be 
        proposed under paragraph (1) include--
                    (A) safety programs;
                    (B) research and development programs; and
                    (C) projects for highway improvements strategically 
                important to the national defense under section 311 of 
                title 23, United States Code.

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

    (a) In General.--Section 9503(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(7) Return of excess tax receipts to states for 
        transportation purposes.--On the first day of each of fiscal 
        years 1998 and 1999, the Secretary, in consultation with the 
        Secretary of the Transportation, shall--
                    ``(A) determine the excess (if any) of--
                            ``(i) the amounts appropriated in such 
                        fiscal year to the Highway Trust Fund under 
                        subsection (b) which are equivalent to the 
                        taxes attributable to the excess of--
                                    ``(I) the Highway Trust Fund 
                                financing rate for such year, over
                                    ``(II) the core programs financing 
                                rate for such year, over
                            ``(ii) the amounts so appropriated which 
                        are equivalent to the taxes described in 
                        paragraphs (4)(D), (5)(B), and (6)(D), and
                    ``(B) allocate the amount determined under 
                subparagraph (A) among the States (as defined in 
                section 101 of title 23, United States Code) so that--
                            ``(i) the percentage of that amount 
                        allocated to each State, is equal to
                            ``(ii) the percentage of the amount 
                        determined under subparagraph (A)(i) paid into 
                        the Highway Trust Fund in the latest fiscal 
                        year for which such data are available that is 
                        attributable to highway users in the State.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 1997.

SEC. 6. INTERSTATE TRANSPORTATION COMPACTS.

    (a) Consent of Congress.--In order to increase public investment, 
attract needed private investment, and promote an intermodal 
transportation network, Congress grants consent to States to enter into 
interstate compacts to--
            (1) promote the continuity, quality, and safety of the 
        Interstate System;
            (2) develop programs to promote and fund safety initiatives 
        and establish safety standards for the States that are parties 
        to the compact (referred to in this section as ``participating 
        States'');
            (3) conduct long-term planning for transportation 
        infrastructure in the participating States;
            (4) develop transportation infrastructure design and 
        construction standards to be used by the participating States; 
        and
            (5) establish transportation infrastructure banks to 
        promote regional or other multistate investment in 
        transportation infrastructure.
    (b) Financing.--An interstate compact established by States under 
subsection (a) to carry out a transportation project, program, or 
activity may provide that, in order to carry out the compact, the 
States may--
            (1) accept contributions from a unit of State or local 
        government or a person;
            (2) use any Federal or State funds made available for that 
        type of transportation project, program, or activity;
            (3) on such terms and conditions as the States consider 
        advisable--
                    (A) borrow money on a short-term basis and issue 
                notes for the borrowing; and
                    (B) issue bonds; and
            (4) obtain financing by other means permitted under Federal 
        or State law, including transportation infrastructure banks 
        under subsection (c).
    (c) Infrastructure Banks.--
            (1) In general.--A transportation infrastructure bank 
        established under an interstate compact under subsection (a)(5) 
        (referred to in this subsection as an ``infrastructure bank'') 
        may--
                    (A) make loans;
                    (B) under the joint or separate authority of the 
                participating States with respect to the infrastructure 
                bank, issue such debt as the infrastructure bank and 
                the States determine appropriate; and
                    (C) provide other assistance to public or private 
                entities constructing, or proposing to construct or 
                initiate, transportation projects, programs, or 
                activities.
            (2) Forms of assistance.--
                    (A) In general.--An infrastructure bank may make a 
                loan or provide other assistance described in 
                subparagraph (C) to a public or private entity in an 
                amount equal to all or part of the construction cost, 
                capital cost, or initiation cost of a transportation 
                project, program, or activity.
                    (B) Subordination of assistance.--The amount of any 
                loan or other assistance described in subparagraph (C) 
                that is received for a transportation project, program, 
                or activity under this section may be subordinated to 
                any other debt financing for the project, program, or 
                activity.
                    (C) Other assistance.--Other assistance referred to 
                in subparagraphs (A) and (B) includes any use of funds 
                for the purpose of--
                            (i) credit enhancement;
                            (ii) a capital reserve for bond or debt 
                        instrument financing;
                            (iii) bond or debt instrument financing 
                        issuance costs;
                            (iv) bond or debt issuance financing 
                        insurance;
                            (v) subsidization of interest rates;
                            (vi) letters of credit;
                            (vii) any credit instrument;
                            (viii) bond or debt financing instrument 
                        security; and
                            (ix) any other form of debt financing that 
                        relates to the qualifying project, program, or 
                        activity.
            (3) No obligation of united states.--
                    (A) In general.--The approval under this section of 
                an infrastructure bank does not constitute a 
                commitment, guarantee, or obligation on the part of the 
                United States to any third party with respect to any 
                security or debt financing instrument issued by the 
                bank. No third party shall have any right against the 
                United States for payment solely by reason of the 
                approval.
                    (B) Statement on instrument.--Any security or debt 
                financing instrument issued by an infrastructure bank 
                shall expressly state that the security or instrument 
                does not constitute a commitment, guarantee, or 
                obligation of the United States.
    (d) Effective Date.--This section shall take effect on October 1, 
1997.

SEC. 7. FEDERAL-AID FACILITY PRIVATIZATION.

    (a) Definitions.--In this section:
            (1) Executive agency.--The term ``Executive agency'' has 
        the meaning provided in section 105 of title 5, United States 
        Code.
            (2) Privatization.--The term ``privatization'' means the 
        disposition or transfer of a transportation infrastructure 
        asset, whether by sale, lease, or similar arrangement, from a 
        State or local government to a private party.
            (3) State or local government.--The term ``State or local 
        government'' means the government of--
                    (A) any State;
                    (B) the District of Columbia;
                    (C) any commonwealth, territory, or possession of 
                the United States;
                    (D) any county, municipality, city, town, township, 
                local public authority, school district, special 
                district, intrastate district, regional or interstate 
                government entity, council of governments, or agency or 
                instrumentality of a local government; or
                    (E) any federally recognized Indian tribe.
            (4) Transportation infrastructure asset.--The term 
        ``transportation infrastructure asset'' means any 
        transportation-related asset financed in whole or in part by 
        the Federal Government, including a road, tunnel, or bridge, or 
        mass transit.
    (b) Privatization Initiatives by State and Local Governments.--The 
head of each Executive agency shall--
            (1) assist State and local governments in efforts to 
        privatize the transportation infrastructure assets of the State 
        and local governments; and
            (2) subject to subsection (c), approve requests from State 
        and local governments to privatize transportation 
        infrastructure assets and waive or modify any grant condition.
    (c) Criteria.--The head of an Executive agency shall approve a 
request described in subsection (b)(2) if--
            (1) the State or local government demonstrates that a 
        market mechanism, legally enforceable agreement, or regulatory 
        mechanism will ensure that the transportation infrastructure 
        asset will continue to be used for the general objectives of 
        the original grant program (which shall not be considered to 
        include every condition required for the grantee to have 
        obtained the original grant) that funded the asset, so long as 
        needed for those objectives; and
            (2) the private party purchasing or leasing the 
        transportation infrastructure asset agrees to comply with all 
        applicable grant conditions.
    (d) Lack of Obligation To Repay Federal Grant Funds.--A State or 
local government shall have no obligation to repay to any agency of the 
Federal Government any Federal grant funds received by the State or 
local government in connection with a transportation infrastructure 
asset that is privatized under this section.
    (e) Use of Proceeds.--
            (1) In general.--Subject to paragraph (2), a State or local 
        government may use proceeds from the privatization of a 
        transportation infrastructure asset to the extent permitted 
        under applicable grant conditions.
            (2) Recovery of certain costs.--Notwithstanding any other 
        provision of law, the State or local government shall be 
        permitted to recover from the privatization of a transportation 
        infrastructure asset--
                    (A) the capital investment in the transportation 
                infrastructure asset made by the State or local 
                government;
                    (B) an amount equal to the unreimbursed operating 
                expenses in the transportation infrastructure asset 
                paid by the State or local government; and
                    (C) a reasonable rate of return on the investment 
                made under subparagraph (A) and expenses paid under 
                subparagraph (B).

SEC. 8. REDUCTION IN TAXES ON GASOLINE, DIESEL FUEL, AND SPECIAL FUELS 
              FUNDING HIGHWAY TRUST FUND.

    (a) In General.--Section 4081(a)(2)(A) of the Internal Revenue Code 
of 1986 (relating to rates of tax) is amended--
            (1) by striking ``18.3 cents'' in clause (i) and inserting 
        ``6.3 cents''; and
            (2) by striking ``24.3 cents'' in clause (ii) and inserting 
        ``6.3 cents''.
    (b) Same Rate for Alcohol Fuels.--
            (1) In general.--Paragraph (8) of section 4081(c) of the 
        Internal Revenue Code of 1986 (relating to taxable fuels mixed 
        with alcohol) is amended by striking ``September 30, 2000'' and 
        inserting ``September 30, 1999''.
            (2) Conforming amendments.--
                    (A) Section 4041(b)(2)(C) of such Code is amended 
                to read as follows:
                    ``(C) Termination.--
                            ``(i) In general.--On and after October 1, 
                        1999, subparagraph (A)(i) shall not apply.
                            ``(ii) Lust.--On and after October 1, 2000, 
                        subparagraph (A)(ii) shall not apply.''.
                    (B) Section 4041(k)(3) of such Code is amended to 
                read as follows:
            ``(3) Termination.--
                    ``(A) In general.--Paragraph (1)(A) shall not apply 
                to any sale or use after September 30, 1999.
                    ``(B) Aviation.--Subparagraphs (B) and (C) of 
                paragraph (1) shall not apply to any sale or use after 
                September 30, 2000.''.
                    (C) Section 4041(m)(1)(A) of such Code is amended 
                by striking clauses (i) and (ii) and inserting the 
                following new clauses:
                            ``(i) 6.3 cents per gallon for the period 
                        beginning after September 30, 1999, and ending 
                        before October 1, 2001, and
                            ``(ii) 4.3 cents per gallon after September 
                        30, 2001, and''.
                    (D) Section 9503(f) of such Code is amended by 
                striking paragraph (3) and redesignating paragraph (4) 
                as paragraph (3).
    (c) Reduction in Highway Trust Fund Financing Rate.--
            (1) In general.--Section 9503(f) of the Internal Revenue 
        Code of 1986 (defining Highway Trust Fund financing rate) is 
        amended--
                    (A) by striking ``11.5 cents per gallon (14 cents 
                per gallon after September 30, 1995)'' in paragraph 
                (1)(A) and inserting ``2 cents per gallon''; and
                    (B) by striking ``17.5 cents per gallon (20 cents 
                per gallon after September 30, 1995)'' in paragraph 
                (1)(B) and inserting ``2 cents per gallon''.
            (2) Conforming amendments.--
                    (A) Section 9503(f)(2)(B) of such Code is amended 
                by striking ``3 cents'' and inserting ``2 cents''.
                    (B) Section 9503(f)(2)(E) of such Code is amended--
                            (i) by striking ``11.5 cents'' and 
                        inserting ``2 cents''; and
                            (ii) by striking ``17.5 cents'' and 
                        inserting ``2 cents''.
                    (C) Section 9503(f)(4) of such Code is amended by 
                striking ``June 30, 2000'' and inserting ``September 
                30, 2001''.
    (d) Additional Conforming Amendments.--
            (1) Section 4041(a)(1)(C) of the Internal Revenue Code of 
        1986 is amended--
                    (A) by striking ``October 1, 1999'' in clause 
                (ii)(II) and inserting October 1, 2001'';
                    (B) by striking ``September 30, 1999'' in clause 
                (ii)(III) and inserting September 30, 2001''; and
                    (C) by striking ``7.3 cents per gallon (4.3 cents 
                per gallon after September 30, 1999)'' in clause 
                (iii)(I) and inserting ``6.3 cents per gallon (4.3 
                cents per gallon after September 30, 2001)''.
            (2) Section 4081(d)(1) of such Code is amended by striking 
        ``October 1, 1999'' and inserting ``October 1, 2001''.
            (3) Section 6421(e)(2)(B)(iv) of such Code is amended--
                    (A) by striking ``January 1, 2000'' in subclause 
                (I) and inserting ``October 1, 2001''; and
                    (B) by striking ``December 31, 1999'' in subclause 
                (II) and inserting ``September 30, 2001''.
            (4) Section 6421(f)(3)(B) of such Code is amended--
                    (A) by striking ``October 1, 1999'' in clause (ii) 
                and inserting October 1, 2001''; and
                    (B) by striking ``September 30, 1999'' in clause 
                (iii) and inserting September 30, 2001''.
            (5) Section 6427(b)(2)(A) of such Code is amended by 
        striking ``7.4 cents'' and inserting ``1.9 cents''.
            (6) Section 6427(l)(3)(B) of such Code is amended--
                    (A) by striking ``October 1, 1999'' in clause (ii) 
                and inserting October 1, 2001''; and
                    (B) by striking ``September 30, 1999'' in clause 
                (iii) and inserting September 30, 2001''.
            (7) Subsection (b) of section 9503 of such Code is 
        amended--
                    (A) by striking ``October 1, 1999'' both places it 
                appears in paragraphs (1) and (2) and inserting 
                ``October 1, 2001'';
                    (B) by striking ``october 1, 1999'' in the heading 
                of paragraph (2) and inserting ``october 1, 2001'';
                    (C) by striking ``after September 30, 1999, and 
                before July 1, 2000'' in paragraph (2) and inserting 
                ``after September 30, 2001, and before July 1, 2002''; 
                and
                    (D) by inserting ``before October 1, 1999,'' after 
                ``paragraph (1)'' in paragraph (5).
    (e) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before October 1, 1999, tax has been imposed 
                under section 4081 of the Internal Revenue Code of 1986 
                on any liquid; and
                    (B) on such date such liquid is held by a dealer 
                and has not been used and is intended for sale;
        there shall be credited or refunded (without interest) to the 
        person who paid such tax (in this subsection referred to as the 
        ``taxpayer'') an amount equal to the excess of the tax paid by 
        the taxpayer over the amount of such tax which would be imposed 
        on such liquid had the taxable event occurred on such date.
            (2) Time for filing claims.--No credit or refund shall be 
        allowed or made under this subsection unless--
                    (A) claim therefor is filed with the Secretary of 
                the Treasury before April 1, 2000; and
                    (B) in any case where liquid is held by a dealer 
                (other than the taxpayer) on October 1, 1999--
                            (i) the dealer submits a request for refund 
                        or credit to the taxpayer before January 1, 
                        2000; and
                            (ii) the taxpayer has repaid or agreed to 
                        repay the amount so claimed to such dealer or 
                        has obtained the written consent of such dealer 
                        to the allowance of the credit or the making of 
                        the refund.
            (3) Exception for fuel held in retail stocks.--No credit or 
        refund shall be allowed under this subsection with respect to 
        any liquid in retail stocks held at the place where intended to 
        be sold at retail.
            (4) Definitions.--For purposes of this subsection, the 
        terms ``dealer'' and ``held by a dealer'' have the respective 
        meanings given to such terms by section 6412 of such Code; 
        except that the term ``dealer'' includes a producer.
            (5) Certain rules to apply.--Rules similar to the rules of 
        subsections (b) and (c) of section 6412 and sections 6206 and 
        6675 of such Code shall apply for purposes of this subsection.
    (f) Effective Date.--The amendments made by this section shall 
apply to fuel removed after September 30, 1999.

SEC. 9. REPORT TO CONGRESS.

    Not later than 180 days after the date of enactment of this Act, 
after consultation with the appropriate committees of Congress, the 
Secretary of Transportation shall submit a report to Congress 
describing technical and conforming amendments to titles 23 and 49, 
United States Code, and other laws that are appropriate in light of the 
amendments made by this Act.
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