I 

113TH CONGRESS 

1ST SESSION H. R. 3486 

To empower States with authority for most taxing and spending for highway 

programs and mass transit programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 14, 2013 

Mr. GRAVES of Georgia (for himself, Mr. DUNCAN of South Carolina, Mr. 

WOODALL, Mr. DESANTIS, Mr. HUIZENGA of Michigan, Mr. WEBER of 

Texas, Mr. AMASH, Mr. ROKITA, Mr. WESTMORELAND, Mr. STUTZMAN, 

Mr. GOHMERT, Mr. FRANKS of Arizona, Mr. JONES, Mr. HENSARLING, 

Mr. MULVANEY, Mr. SCHWEIKERT, Mr. LONG, Mr. BROUN of Georgia, 

Mr. GINGREY of Georgia, Mr. BRADY of Texas, and Mr. HUELSKAMP) 

introduced the following bill; which was referred to the Committee on 

Transportation and Infrastructure, and in addition to the Committees on 

Ways and Means and the Budget, 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 empower States with authority for most taxing and 

spending for highway programs and mass transit programs, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

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


rfrederick on DSK6VPTVN1PROD with BILLS
2 

•HR 3486 IH

1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—Congress finds that— 

3 (1) the objective of the Federal highway pro4 gram has been to facilitate the construction of a 

5 modern freeway system that promotes efficient inter6 state commerce by connecting all States; 

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

8 Interstate System connecting all States is near com9 pletion; 

10 (3) each State has the responsibility of pro11 viding an efficient transportation network for the 

12 residents of the State; 

13 (4) each State has the means to build and oper14 ate a network of transportation systems, including 

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

16 (5) each State is best capable of determining 

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

18 (6) the Federal role in highway transportation 

19 has, over time, usurped the role of the States by tax20 ing motor fuels used in the States and then distrib21 uting the proceeds to the States based on the Fed22 eral Government’s perceptions of what is best for the 

23 States; 

24 (7) the Federal Government has used the Fed25 eral motor fuels tax revenues to force all States to 


rfrederick on DSK6VPTVN1PROD with BILLS
3 

•HR 3486 IH

1 take actions that are not necessarily appropriate for 

2 individual States; 

3 (8) the Federal distribution, review, and en4 forcement process wastes billions of dollars on un5 productive activities; 

6 (9) Federal mandates that apply uniformly to 

7 all 50 States, regardless of the different cir8 cumstances of the States, cause the States to waste 

9 billions of hard-earned tax dollars on projects, pro10 grams, and activities that the States would not oth11 erwise undertake; and 

12 (10) Congress has expressed a strong interest 

13 in reducing the role of the Federal Government by 

14 allowing each State to manage its own affairs. 

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

16 (1) to return to the individual States maximum 

17 discretionary authority and fiscal responsibility for 

18 all elements of the national surface transportation 

19 systems that are not within the direct purview of the 

20 Federal Government; 

21 (2) to preserve Federal responsibility for the 

22 Dwight D. Eisenhower National System of Inter23 state and Defense Highways; 

24 (3) to preserve the responsibility of the Depart25 ment of Transportation for— 


rfrederick on DSK6VPTVN1PROD with BILLS
4 

•HR 3486 IH

1 (A) design, construction, and preservation 

2 of transportation facilities on Federal public 

3 land; 

4 (B) national programs of transportation 

5 research and development and transportation 

6 safety; and 

7 (C) emergency assistance to the States in 

8 response to natural disasters; 

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

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

13 Federal and State transportation facilities; and 

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

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

19 (B) innovation, energy efficiency, private 

20 sector participation, and productivity. 

21 SEC. 3. FUNDING LIMITATION. 

22 Notwithstanding any other provision of law, if the 

23 Secretary of Transportation determines for any of fiscal 

24 years 2015 through 2019 that the aggregate amount re25 quired to carry out transportation programs and projects 


rfrederick on DSK6VPTVN1PROD with BILLS
5 

•HR 3486 IH

1 under this Act and amendments made by this Act exceeds 

2 the estimated aggregate amount in the Highway Trust 

3 Fund available for those programs and projects for the 

4 fiscal year, each amount made available for such a pro5 gram or project shall be reduced by the pro rata percent6 age required to reduce the aggregate amount required to 

7 carry out those programs and projects to an amount equal 

8 to that available for those programs and projects in the 

9 Highway Trust Fund for the fiscal year. 

10 SEC. 4. FUNDING FOR CORE HIGHWAY PROGRAMS. 

11 (a) IN GENERAL.— 

12 (1) AUTHORIZATION OF APPROPRIATIONS.— 

13 The following sums are authorized to be appro14 priated out of the Highway Trust Fund (other than 

15 the Mass Transit Account): 

16 (A) FEDERAL-AID HIGHWAY PROGRAM.— 

17 For the national highway performance program 

18 under section 119 of title 23, United States 

19 Code, the surface transportation program under 

20 section 133 of that title, the highway safety im21 provement program under section 148 of that 

22 title, the congestion mitigation and air quality 

23 improvement program under section 149 of that 

24 title, and to carry out section 134 of that 

25 title— 


rfrederick on DSK6VPTVN1PROD with BILLS
6 

•HR 3486 IH

1 (i) $37,592,576,000 for fiscal year 

2 2015; 

3 (ii) $19,720,696,000 for fiscal year 

4 2016; 

5 (iii) $13,147,130,000 for fiscal year 

6 2017; 

7 (iv) $10,271,196,000 for fiscal year 

8 2018; and 

9 (v) $7,600,685,000 for fiscal year 

10 2019. 

11 (B) EMERGENCY RELIEF.—For emergency 

12 relief under section 125 of that title, 

13 $100,000,000 for each of fiscal years 2015 

14 through 2019. 

15 (C) FEDERAL LANDS PROGRAMS.— 

16 (i) FEDERAL LANDS TRANSPOR17 TATION PROGRAM.—For the Federal lands 

18 transportation program under section 203 

19 of that title, $300,000,000 for each of fis20 cal years 2015 through 2019, of which 

21 $240,000,000 of the amount made avail22 able for each fiscal year shall be the 

23 amount for the National Park Service and 

24 $30,000,000 of the amount made available 

25 for each fiscal year shall be the amount for 


rfrederick on DSK6VPTVN1PROD with BILLS
7 

•HR 3486 IH

1 the United States Fish and Wildlife Serv2 ice. 

3 (ii) FEDERAL LANDS ACCESS PRO4 GRAM.—For the Federal lands access pro5 gram under section 204 of that title, 

6 $250,000,000 for each of fiscal years 2015 

7 through 2019. 

8 (D) ADMINISTRATIVE EXPENSES.—Section 

9 104(a)(1) of title 23, United States Code, is 

10 amended to read as follows: 

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

12 appropriated from the Highway Trust Fund (other 

13 than the Mass Transit Account) to be made avail14 able to the Secretary for administrative expenses of 

15 the Federal Highway Administration— 

16 ‘‘(A) $437,600,000 for fiscal year 2015; 

17 ‘‘(B) $229,565,000 for fiscal year 2016; 

18 ‘‘(C) $153,043,000 for fiscal year 2017; 

19 ‘‘(D) $119,565,000 for fiscal year 2018; 

20 and 

21 ‘‘(E) $88,478,000 for fiscal year 2019.’’. 

22 (2) TRANSFERABILITY OF FUNDS.—Section 104 

23 of title 23, United States Code, is amended by strik24 ing subsection (f) and inserting the following: 

25 ‘‘(f) TRANSFERABILITY OF FUNDS.— 


rfrederick on DSK6VPTVN1PROD with BILLS
8 

•HR 3486 IH

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

2 determines that funds made available under this title 

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

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

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

6 any surface transportation (including mass transit 

7 and rail) purpose in the State. 

8 ‘‘(2) ENFORCEMENT.—If the Secretary deter9 mines that a State has transferred funds under 

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

11 transportation purpose as described in paragraph 

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

13 shall be deducted from any amount the State would 

14 otherwise receive from the Highway Trust Fund for 

15 the fiscal year that begins after the date of the de16 termination.’’. 

17 (3) FEDERAL-AID SYSTEM.— 

18 (A) IN GENERAL.—Section 103(a) of title 

19 23, United States Code, is amended by striking 

20 ‘‘the National Highway System, which in21 cludes’’. 

22 (B) CONFORMING AMENDMENTS.—Chapter 

23 1 of title 23, United States Code, is amended— 


rfrederick on DSK6VPTVN1PROD with BILLS
9 

•HR 3486 IH

1 (i) in section 103 by striking the sec2 tion designation and heading and inserting 

3 the following: 

4 ‘‘§ 103. Federal-aid system’’; 

5 and 

6 (ii) in the analysis by striking the 

7 item relating to section 103 and inserting 

8 the following: 

‘‘103. Federal-aid system.’’. 

9 (4) CALCULATION OF STATE AMOUNTS.—Sec10 tion 104(c) of title 23, United States Code, is 

11 amended— 

12 (A) in paragraph (2)— 

13 (i) in the paragraph heading by strik14 ing ‘‘FOR FISCAL YEAR 2014’’ and inserting 

15 ‘‘THEREAFTER’’; and 

16 (ii) in subparagraph (A) by striking 

17 ‘‘fiscal year 2014’’ and inserting ‘‘a fiscal 

18 year’’. 

19 (5) NATIONAL BRIDGE AND TUNNEL INVEN20 TORY AND INSPECTION STANDARDS.— 

21 (A) IN GENERAL.—Section 144 of title 23, 

22 United States Code, is amended— 

23 (i) in subsection (e)(1) by inserting 

24 ‘‘on the Federal-aid system’’ after ‘‘any 

25 bridge’’; and 


rfrederick on DSK6VPTVN1PROD with BILLS
10 

•HR 3486 IH

1 (ii) in subsection (f)(1) by inserting 

2 ‘‘on the Federal-aid system’’ after ‘‘con3 struct any bridge’’. 

4 (B) REPEAL OF HISTORIC BRIDGES PROVI5 SIONS.—Section 144(g) of title 23, United 

6 States Code, is repealed. 

7 (6) REPEAL OF TRANSPORTATION ALTER8 NATIVES PROGRAM.—The following provisions are 

9 repealed: 

10 (A) Section 213 of title 23, United States 

11 Code. 

12 (B) The item relating to section 213 in the 

13 analysis for chapter 1 of title 23, United States 

14 Code. 

15 (7) NATIONAL DEFENSE HIGHWAYS.—Section 

16 311 of title 23, United States Code, is amended— 

17 (A) in the first sentence, by striking 

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

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

20 and 

21 (B) by striking the second sentence. 

22 (8) FEDERALIZATION AND DEFEDERALIZATION

23 OF PROJECTS.—Notwithstanding any other provision 

24 of law, beginning on October 1, 2014— 


rfrederick on DSK6VPTVN1PROD with BILLS
11 

•HR 3486 IH

1 (A) a highway construction or improve2 ment project shall not be considered to be a 

3 Federal highway construction or improvement 

4 project unless and until a State expends Fed5 eral funds for the construction portion of the 

6 project; 

7 (B) a highway construction or improve8 ment project shall not be considered to be a 

9 Federal highway construction or improvement 

10 project solely by reason of the expenditure of 

11 Federal funds by a State before the construc12 tion phase of the project to pay expenses relat13 ing to the project, including for any environ14 mental document or design work required for 

15 the project; and 

16 (C)(i) a State may, after having used Fed17 eral funds to pay all or a portion of the costs 

18 of a highway construction or improvement 

19 project, reimburse the Federal Government in 

20 an amount equal to the amount of Federal 

21 funds so expended; and 

22 (ii) after completion of a reimbursement 

23 described in clause (i), a highway construction 

24 or improvement project described in that clause 


rfrederick on DSK6VPTVN1PROD with BILLS
12 

•HR 3486 IH

1 shall no longer be considered to be a Federal 

2 highway construction or improvement project. 

3 (9) REPORTING REQUIREMENTS.—No reporting 

4 requirement, other than a reporting requirement in 

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

6 apply on or after October 1, 2014, to the use of 

7 Federal funds for highway projects by a public-pri8 vate partnership. 

9 (b) EXPENDITURES FROM HIGHWAY TRUST

10 FUND.— 

11 (1) EXPENDITURES FOR CORE PROGRAMS.— 

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

13 1986 is amended— 

14 (A) in paragraph (1)— 

15 (i) by striking ‘‘October 1, 2014’’ and 

16 inserting ‘‘October 1, 2020’’; and 

17 (ii) by striking ‘‘MAP–21’’ and insert18 ing ‘‘Transportation Empowerment Act’’; 

19 (B) in paragraphs (3)(A)(i), (4)(A), and 

20 (5), by striking ‘‘October 1, 2016’’ each place 

21 it appears and inserting ‘‘October 1, 2022’’; 

22 and 

23 (C) in paragraph (2), by striking ‘‘July 1, 

24 2017’’ and inserting ‘‘July 1, 2023’’. 


rfrederick on DSK6VPTVN1PROD with BILLS
13 

•HR 3486 IH

1 (2) AMOUNTS AVAILABLE FOR CORE PROGRAM

2 EXPENDITURES.—Section 9503 of such Code is 

3 amended by adding at the end the following: 

4 ‘‘(g) CORE PROGRAMS FINANCING RATE.—For pur5 poses of this section— 

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2)— 

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

9 motor fuels the tax rate of which is the rate 

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

11 programs financing rate is— 

12 ‘‘(i) after September 30, 2014, and 

13 before October 1, 2015, 18.3 cents per gal14 lon, 

15 ‘‘(ii) after September 30, 2015, and 

16 before October 1, 2016, 9.6 cents per gal17 lon, 

18 ‘‘(iii) after September 30, 2016, and 

19 before October 1, 2017, 6.4 cents per gal20 lon, 

21 ‘‘(iv) after September 30, 2017, and 

22 before October 1, 2018, 5.0 cents per gal23 lon, and 

24 ‘‘(v) after September 30, 2018, 3.7 

25 cents per gallon, and 


rfrederick on DSK6VPTVN1PROD with BILLS
14 

•HR 3486 IH

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

2 and special motor fuels the tax rate of which is 

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

4 the core programs financing rate is— 

5 ‘‘(i) after September 30, 2014, and 

6 before October 1, 2015, 24.3 cents per gal7 lon, 

8 ‘‘(ii) after September 30, 2015, and 

9 before October 1, 2016, 12.7 cents per gal10 lon, 

11 ‘‘(iii) after September 30, 2016, and 

12 before October 1, 2017, 8.5 cents per gal13 lon, 

14 ‘‘(iv) after September 30, 2017, and 

15 before October 1, 2018, 6.6 cents per gal16 lon, and 

17 ‘‘(v) after September 30, 2018, 5.0 

18 cents per gallon. 

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

20 fuels used as described in paragraph (3)(C), (4)(B), 

21 and (5) of subsection (c), the core programs financ22 ing rate is zero.’’. 

23 (c) TERMINATION OF MASS TRANSIT ACCOUNT.— 

24 Section 9503(e)(2) of the Internal Revenue Code of 1986 

25 is amended— 


rfrederick on DSK6VPTVN1PROD with BILLS
15 

•HR 3486 IH

1 (1) by inserting ‘‘and before October 1, 2014’’ 

2 after ‘‘March 31, 1983’’, and 

3 (2) by adding at the end the following new 

4 paragraph: 

5 ‘‘(6) TRANSFER TO HIGHWAY ACCOUNT.—On 

6 October 1, 2014, the Secretary shall transfer all 

7 amounts in the Mass Transit Account to the High8 way Account.’’. 

9 (d) EFFECTIVE DATE.—The amendments and re10 peals made by this section take effect on October 1, 2014. 

11 SEC. 5. FUNDING FOR HIGHWAY RESEARCH AND DEVELOP12 MENT PROGRAM. 

13 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated out of the Highway Trust 

15 Fund (other than the Mass Transit Account) to carry out 

16 section 503(b) of title 23, United States Code, 

17 $115,000,000 for each of fiscal years 2015 through 2019. 

18 (b) APPLICABILITY OF TITLE 23, UNITED STATES

19 CODE.—Funds authorized to be appropriated by sub20 section (a) shall— 

21 (1) be available for obligation in the same man22 ner as if those funds were apportioned under chap23 ter 1 of title 23, United States Code, except that the 

24 Federal share of the cost of a project or activity car25 ried out using those funds shall be 80 percent, unVerDate Mar 15 2010 04:04 Nov 15, 2013 Jkt 039200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H3486.IH H3486

rfrederick on DSK6VPTVN1PROD with BILLS
16 

•HR 3486 IH

1 less otherwise expressly provided by this Act (includ2 ing the amendments by this Act) or otherwise deter3 mined by the Secretary; and 

4 (2) remain available until expended and not be 

5 transferable. 

6 SEC. 6. RETURN OF EXCESS TAX RECEIPTS TO STATES. 

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

8 Revenue Code of 1986 is amended by adding at the end 

9 the following: 

10 ‘‘(6) RETURN OF EXCESS TAX RECEIPTS TO

11 STATES FOR SURFACE TRANSPORTATION PUR12 POSES.— 

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

14 each of fiscal years 2016, 2017, 2018, and 

15 2019, the Secretary, in consultation with the 

16 Secretary of Transportation, shall— 

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

18 ‘‘(I) the amounts appropriated in 

19 such fiscal year to the Highway Trust 

20 Fund under subsection (b) which are 

21 attributable to the taxes described in 

22 paragraphs (1) and (2) thereof (after 

23 the application of paragraph (4) 

24 thereof) over the sum of— 


rfrederick on DSK6VPTVN1PROD with BILLS
17 

•HR 3486 IH

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

3 ‘‘(aa) such amounts attrib4 utable to the core programs fi5 nancing rate for such year, plus 

6 ‘‘(bb) the taxes described in 

7 paragraphs (3)(C), (4)(B), and 

8 (5) of subsection (c), and 

9 ‘‘(ii) allocate the amount determined 

10 under clause (i) among the States (as de11 fined in section 101(a) of title 23, United 

12 States Code) for surface transportation 

13 (including mass transit and rail) purposes 

14 so that— 

15 ‘‘(I) the percentage of that 

16 amount allocated to each State, is 

17 equal to 

18 ‘‘(II) the percentage of the 

19 amount determined under clause (i)(I) 

20 paid into the Highway Trust Fund in 

21 the latest fiscal year for which such 

22 data are available which is attrib23 utable to highway users in the State. 

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

25 determines that a State has used amounts 


rfrederick on DSK6VPTVN1PROD with BILLS
18 

•HR 3486 IH

1 under subparagraph (A) for a purpose which is 

2 not a surface transportation purpose as de3 scribed in subparagraph (A), the improperly 

4 used amounts shall be deducted from any 

5 amount the State would otherwise receive from 

6 the Highway Trust Fund for the fiscal year 

7 which begins after the date of the determina8 tion.’’. 

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

10 this section takes effect on October 1, 2014. 

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

12 KEROSENE, AND SPECIAL FUELS FUNDING 

13 HIGHWAY TRUST FUND. 

14 (a) REDUCTION IN TAX RATE.— 

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

16 Internal Revenue Code of 1986 is amended— 

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

18 and inserting ‘‘3.7 cents’’; and 

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

20 and inserting ‘‘5.0 cents’’. 

21 (2) CONFORMING AMENDMENTS.— 

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

23 amended— 

24 (i) by striking ‘‘19.7 cents’’ and in25 serting ‘‘4.1 cents’’, and 


rfrederick on DSK6VPTVN1PROD with BILLS
19 

•HR 3486 IH

1 (ii) by striking ‘‘24.3 cents’’ and in2 serting ‘‘5.0 cents’’. 

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

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

5 ‘‘1.5 cents’’. 

6 (b) ADDITIONAL CONFORMING AMENDMENTS.— 

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

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

9 cents per gallon (4.3 cents per gallon after Sep10 tember 30, 2016)’’ and inserting ‘‘1.4 cents per gal11 lon (zero after September 30, 2021)’’. 

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

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

14 cents’’. 

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

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

17 cents’’. 

18 (4) Section 4041(m)(1) of such Code is amend19 ed— 

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

21 ‘‘2016’’ and inserting ‘‘2021,’’; 

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

23 ‘‘9.15 cents’’ and inserting ‘‘1.8 cents’’; 

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

25 ‘‘11.3 cents’’ and inserting ‘‘2.3 cents’’; and 


rfrederick on DSK6VPTVN1PROD with BILLS
20 

•HR 3486 IH

1 (D) by striking subparagraph (B) and in2 serting the following: 

3 ‘‘(B) zero after September 30, 2021.’’. 

4 (5) Section 4081(d)(1) of such Code is amend5 ed by striking ‘‘4.3 cents per gallon after September 

6 30, 2016’’ and inserting ‘‘zero after September 30, 

7 2021’’. 

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

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

10 ‘‘October 1, 2016’’ both places it appears and 

11 inserting ‘‘October 1, 2021’’; 

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

13 striking ‘‘OCTOBER 1, 2016’’ and inserting ‘‘OC14 TOBER 1, 2021’’; 

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

16 September 30, 2016, and before July 1, 2017’’ 

17 and inserting ‘‘after September 30, 2021, and 

18 before July 1, 2022’’; and 

19 (D) in paragraph (6)(B), by striking ‘‘Oc20 tober 1, 2014’’ and inserting ‘‘October 1, 

21 2019’’. 

22 (c) FLOOR STOCK REFUNDS.— 

23 (1) IN GENERAL.—If— 


rfrederick on DSK6VPTVN1PROD with BILLS
21 

•HR 3486 IH

1 (A) before October 1, 2019, tax has been 

2 imposed under section 4081 of the Internal 

3 Revenue Code of 1986 on any liquid; and 

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

5 dealer and has not been used and is intended 

6 for sale; 

7 there shall be credited or refunded (without interest) 

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

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

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

11 amount of such tax which would be imposed on such 

12 liquid had the taxable event occurred on such date. 

13 (2) TIME FOR FILING CLAIMS.—No credit or re14 fund shall be allowed or made under this subsection 

15 unless— 

16 (A) claim therefor is filed with the Sec17 retary of the Treasury before April 1, 2020; 

18 and 

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

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

21 2019— 

22 (i) the dealer submits a request for re23 fund or credit to the taxpayer before Janu24 ary 1, 2020; and 


rfrederick on DSK6VPTVN1PROD with BILLS
22 

•HR 3486 IH

1 (ii) the taxpayer has repaid or agreed 

2 to repay the amount so claimed to such 

3 dealer or has obtained the written consent 

4 of such dealer to the allowance of the cred5 it or the making of the refund. 

6 (3) EXCEPTION FOR FUEL HELD IN RETAIL

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

8 this subsection with respect to any liquid in retail 

9 stocks held at the place where intended to be sold 

10 at retail. 

11 (4) DEFINITIONS.—For purposes of this sub12 section, the terms ‘‘dealer’’ and ‘‘held by a dealer’’ 

13 have the respective meanings given to such terms by 

14 section 6412 of such Code; except that the term 

15 ‘‘dealer’’ includes a producer. 

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

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

18 6412 and sections 6206 and 6675 of such Code shall 

19 apply for purposes of this subsection. 

20 (d) EFFECTIVE DATES.— 

21 (1) IN GENERAL.—Except as provided in para22 graph (2), the amendments made by this section 

23 shall apply to fuel removed after September 30, 

24 2019. 


rfrederick on DSK6VPTVN1PROD with BILLS
23 

•HR 3486 IH

1 (2) CERTAIN CONFORMING AMENDMENTS.—The 

2 amendments made by subsections (b)(4) and (b)(6) 

3 shall apply to fuel removed after September 30, 

4 2016. 

5 SEC. 8. REPORT TO CONGRESS. 

6 Not later than 180 days after the date of enactment 

7 of this Act, after consultation with the appropriate com8 mittees of Congress, the Secretary of Transportation shall 

9 submit a report to Congress describing such technical and 

10 conforming amendments to titles 23 and 49, United States 

11 Code, and such technical and conforming amendments to 

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

13 laws into conformity with the policy embodied in this Act 

14 and the amendments made by this Act. 

15 SEC. 9. EFFECTIVE DATE CONTINGENT ON CERTIFICATION 

16 OF DEFICIT NEUTRALITY. 

17 (a) PURPOSE.—The purpose of this section is to en18 sure that— 

19 (1) this Act will become effective only if the Di20 rector of the Office of Management and Budget cer21 tifies that this Act is deficit neutral; 

22 (2) discretionary spending limits are reduced to 

23 capture the savings realized in devolving transpor24 tation functions to the State level pursuant to this 

25 Act; and 


rfrederick on DSK6VPTVN1PROD with BILLS
24 

•HR 3486 IH

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

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

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

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

7 (1) the Director of the Office of Management 

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

10 (c); and 

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

14 reduction in contract authority is at least as great 

15 as the reduction in revenues for each fiscal year 

16 through fiscal year 2019. 

17 (c) OMB ESTIMATES AND REPORT.— 

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

20 the Director shall— 

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

23 through fiscal year 2019; 

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


rfrederick on DSK6VPTVN1PROD with BILLS
25 

•HR 3486 IH

1 contract authority under this Act for each fiscal 

2 year through fiscal year 2019; 

3 (C) determine, based on those estimates, 

4 whether the reduction in discretionary outlays 

5 is at least as great as the reduction in revenues 

6 for each fiscal year through fiscal year 2019; 

7 and 

8 (D) submit to Congress a report setting 

9 forth the estimates and determination. 

10 (2) APPLICABLE ASSUMPTIONS AND GUIDE11 LINES.— 

12 (A) REVENUE ESTIMATES.—The revenue 

13 estimates required under paragraph (1)(A) 

14 shall be predicated on the same economic and 

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

17 pursuant to section 252(d) of the Balanced 

18 Budget and Emergency Deficit Control Act of 

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

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

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

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


rfrederick on DSK6VPTVN1PROD with BILLS
26 

•HR 3486 IH

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

3 (d) CONFORMING ADJUSTMENT TO DISCRETIONARY

4 SPENDING LIMITS.—On compliance with the requirements 

5 specified in subsection (b), the Director shall adjust the 

6 adjusted discretionary spending limits for each fiscal year 

7 through fiscal year 2019 under section 601(a)(2) of the 

8 Congressional Budget Act of 1974 (2 U.S.C. 665(a)(2)) 

9 by the estimated reductions in discretionary outlays under 

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

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

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

13 revenues estimated to result from the enactment of this 

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

15 of the Balanced Budget and Emergency Deficit Control 

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

Æ 


rfrederick on DSK6VPTVN1PROD with BILLS