I 

112TH CONGRESS 

1ST SESSION H. R. 3264 

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 

OCTOBER 26, 2011 

Mr. GRAVES of Georgia (for himself, Mr. WESTMORELAND, Mr. DUNCAN of 

South Carolina, Mr. GOWDY, Mr. MULVANEY, Mr. BROUN of Georgia, 

Mr. LANKFORD, Mr. CHAFFETZ, Mr. WILSON of South Carolina, Mr. 

WOODALL, Mr. SCOTT of South Carolina, and Mr. GOHMERT) 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’’. 


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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 


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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— 


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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 FOR CORE HIGHWAY PROGRAMS. 

22 (a) IN GENERAL.— 

23 (1) FUNDING.—For the purpose of carrying out 

24 title 23, United States Code, the following sums are 


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1 authorized to be appropriated out of the Highway 

2 Trust Fund: 

3 (A) INTERSTATE MAINTENANCE PRO4 GRAM.—For the Interstate maintenance pro5 gram under section 119 of title 23, United 

6 States Code, $5,200,000,000 for fiscal year 

7 2014, $5,280,000,000 for fiscal year 2015, 

8 $5,360,000,000 for fiscal year 2016, 

9 $5,440,000,000 for fiscal year 2017, and 

10 $5,520,000,000 for fiscal year 2018. 

11 (B) EMERGENCY RELIEF.—For emergency 

12 relief under section 125 of that title, 

13 $100,000,000 for each of fiscal years 2014 

14 through 2018. 

15 (C) INTERSTATE BRIDGE PROGRAM.—For 

16 the Interstate bridge program under section 

17 144 of that title, $2,527,000,000 for fiscal year 

18 2014, $2,597,000,000 for fiscal year 2015, 

19 $2,667,000,000 for fiscal year 2016, 

20 $2,737,000,000 for fiscal year 2017, and 

21 $2,807,000,000 for fiscal year 2018. 

22 (D) FEDERAL LANDS HIGHWAYS PRO23 GRAM.— 

24 (i) INDIAN RESERVATION ROADS.— 

25 For Indian reservation roads under section 


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1 204 of that title, $470,000,000 for fiscal 

2 year 2014, $510,000,000 for fiscal year 

3 2015, $550,000,000 for fiscal year 2016, 

4 $590,000,000 for fiscal year 2017, and 

5 $630,000,000 for fiscal year 2018. 

6 (ii) PUBLIC LANDS HIGHWAYS.—For 

7 public lands highways under section 204 of 

8 that title, $300,000,000 for fiscal year 

9 2014, $310,000,000 for fiscal year 2015, 

10 $320,000,000 for fiscal year 2016, 

11 $330,000,000 for fiscal year 2017, and 

12 $340,000,000 for fiscal year 2018. 

13 (iii) PARKWAYS AND PARK ROADS.— 

14 For parkways and park roads under sec15 tion 204 of that title, $255,000,000 for fis16 cal year 2014, $270,000,000 for fiscal year 

17 2015, $285,000,000 for fiscal year 2016, 

18 $300,000,000 for fiscal year 2017, and 

19 $315,000,000 for fiscal year 2018. 

20 (iv) REFUGE ROADS.—For refuge 

21 roads under section 204 of that title, 

22 $32,000,000 for each of fiscal years 2014 

23 through 2018. 

24 (E) HIGHWAY SAFETY PROGRAMS.— 


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1 (i) IN GENERAL.—For highway safety 

2 programs under section 402 of that title, 

3 $170,000,000 for each of fiscal years 2014 

4 through 2018. 

5 (ii) HIGHWAY SAFETY RESEARCH AND

6 DEVELOPMENT.—For highway safety re7 search and development under section 403 

8 of that title, $35,000,000 for each of fiscal 

9 years 2014 through 2018. 

10 (F) SURFACE TRANSPORTATION RE11 SEARCH.—For cooperative agreements with 

12 nonprofit research organizations to carry out 

13 applied pavement research under section 502 of 

14 that title, $200,000,000 for each of fiscal years 

15 2014 through 2018. 

16 (G) ADMINISTRATIVE EXPENSES.—For ad17 ministrative expenses incurred in carrying out 

18 the programs referred to in subparagraphs (A) 

19 through (F), $92,890,000 for fiscal year 2014, 

20 $95,040,000 for fiscal year 2015, $97,190,000 

21 for fiscal year 2016, $99,340,000 for fiscal year 

22 2017, and $101,490,000 for fiscal year 2018. 

23 (2) TRANSFERABILITY OF FUNDS.—Section 104 

24 of title 23, United States Code, is amended by strik25 ing subsection (g) and inserting the following: 


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1 ‘‘(g) TRANSFERABILITY OF FUNDS.— 

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

3 determines that funds made available under this title 

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

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

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

7 any surface transportation (including mass transit 

8 and rail) purpose in the State. 

9 ‘‘(2) ENFORCEMENT.—If the Secretary deter10 mines that a State has transferred funds under 

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

12 transportation purpose as described in paragraph 

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

14 shall be deducted from any amount the State would 

15 otherwise receive from the Highway Trust Fund for 

16 the fiscal year that begins after the date of the de17 termination.’’. 

18 (3) FEDERAL-AID SYSTEM.—Section 103(a) of 

19 title 23, United States Code, is amended by striking 

20 ‘‘systems are the Interstate System and the National 

21 Highway System’’ and inserting ‘‘system is the 

22 Interstate System’’. 

23 (4) INTERSTATE MAINTENANCE PROGRAM.— 

24 Section 104(b) of title 23, United States Code, is 


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1 amended by striking paragraph (4) and inserting the 

2 following: 

3 ‘‘(4) INTERSTATE MAINTENANCE COMPO4 NENT.—For each of fiscal years 2014 through 2018, 

5 for the Interstate maintenance program under sec6 tion 119, 1 percent to the Virgin Islands, Guam, 

7 American Samoa, and the Commonwealth of the 

8 Northern Mariana Islands and the remaining 99 

9 percent apportioned as follows: 

10 ‘‘(A)(i) For each State with an average 

11 population density of 20 persons or fewer per 

12 square mile, and each State with a population 

13 of 1,500,000 persons or fewer and with a land 

14 area of 10,000 square miles or less, the greater 

15 of— 

16 ‘‘(I) a percentage share of apportion17 ments equal to the percentage for the 

18 State described in clause (ii); or 

19 ‘‘(II) a share determined under sub20 paragraph (B). 

21 ‘‘(ii) The percentage referred to in clause 

22 (i)(I) for a State for a fiscal year shall be the 

23 percentage calculated for the State for the fiscal 

24 year under section 105(b) of title 23, United 

25 States Code. 


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1 ‘‘(B) For each State not described in sub2 paragraph (A), a share of the apportionments 

3 remaining determined in accordance with the 

4 following formula: 

‘‘(i) 1 5 ⁄9 in the ratio that the total rural 

6 lane miles in each State bears to the total 

7 rural lane miles in all States with an aver8 age population density greater than 20 

9 persons per square mile and all States with 

10 a population of more than 1,500,000 per11 sons and with a land area of more than 

12 10,000 square miles. 

‘‘(ii) 1 13 ⁄9 in the ratio that the total 

14 rural vehicle miles traveled in each State 

15 bears to the total rural vehicle miles trav16 eled in all States described in clause (i). 

‘‘(iii) 2 17 ⁄9 in the ratio that the total 

18 urban lane miles in each State bears to the 

19 total urban lane miles in all States de20 scribed in clause (i). 

‘‘(iv) 2 21 ⁄9 in the ratio that the total 

22 urban vehicle miles traveled in each State 

23 bears to the total urban vehicle miles trav24 eled in all States described in clause (i). 


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‘‘(v) 3 1 ⁄9 in the ratio that the total die2 sel fuel used in each State bears to the 

3 total diesel fuel used in all States described 

4 in clause (i).’’. 

5 (5) INTERSTATE BRIDGE PROGRAM.—Section 

6 144 of title 23, United States Code, is amended— 

7 (A) in subsection (d)— 

8 (i) by inserting ‘‘on the Federal-aid 

9 system or described in subsection (c)(3)’’ 

10 after ‘‘highway bridge’’ each place it ap11 pears; and 

12 (ii) by inserting ‘‘on the Federal-aid 

13 system or described in subsection (c)(3)’’ 

14 after ‘‘highway bridges’’ each place it ap15 pears; 

16 (B) in the second sentence of subsection 

17 (e)— 

18 (i) in paragraph (1), by adding ‘‘and’’ 

19 at the end; 

20 (ii) in paragraph (2), by striking the 

21 comma at the end and inserting a period; 

22 and 

23 (iii) by striking paragraphs (3) and 

24 (4); 


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1 (C) in the first sentence of subsection (k), 

2 by inserting ‘‘on the Federal-aid system or de3 scribed in subsection (c)(3)’’ after ‘‘any 

4 bridge’’; 

5 (D) in subsection (l)(1), by inserting ‘‘on 

6 the Federal-aid system or described in sub7 section (c)(3)’’ after ‘‘construct any bridge’’; 

8 and 

9 (E) in the first sentence of subsection (m), 

10 by inserting ‘‘for each of fiscal years 1991 

11 through 2013,’’ after ‘‘of law,’’. 

12 (6) NATIONAL DEFENSE HIGHWAYS.—Section 

13 311 of title 23, United States Code, is amended— 

14 (A) in the first sentence, by striking 

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

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

17 and 

18 (B) by striking the second sentence. 

19 (7) FEDERALIZATION AND DEFEDERALIZATION

20 OF PROJECTS.—Notwithstanding any other provision 

21 of law, beginning on October 1, 2013— 

22 (A) a highway construction or improve23 ment project shall not be considered to be a 

24 Federal highway construction or improvement 

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1 eral funds for the construction portion of the 

2 project; 

3 (B) a highway construction or improve4 ment project shall not be considered to be a 

5 Federal highway construction or improvement 

6 project solely by reason of the expenditure of 

7 Federal funds by a State before the construc8 tion phase of the project to pay expenses relat9 ing to the project, including for any environ10 mental document or design work required for 

11 the project; and 

12 (C)(i) a State may, after having used Fed13 eral funds to pay all or a portion of the costs 

14 of a highway construction or improvement 

15 project, reimburse the Federal Government in 

16 an amount equal to the amount of Federal 

17 funds so expended; and 

18 (ii) after completion of a reimbursement 

19 described in clause (i), a highway construction 

20 or improvement project described in that clause 

21 shall no longer be considered to be a Federal 

22 highway construction or improvement project. 

23 (8) REPORTING REQUIREMENTS.—No reporting 

24 requirement, other than a reporting requirement in 

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


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1 apply on or after October 1, 2013, to the use of 

2 Federal funds for highway projects by a public-pri3 vate partnership. 

4 (b) EXPENDITURES FROM HIGHWAY TRUST

5 FUND.— 

6 (1) EXPENDITURES FOR CORE PROGRAMS.— 

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

8 1986 is amended— 

9 (A) in paragraph (1), by striking ‘‘Surface 

10 Transportation Extension Act of 2011’’ and in11 serting ‘‘Transportation Empowerment Act’’; 

12 (B) in paragraph (1), by striking ‘‘October 

13 1, 2011’’ and inserting ‘‘October 1, 2018’’; 

14 (C) in paragraphs (3)(A)(i), (4)(A), and 

15 (5), by striking ‘‘October 1, 2011’’ each place 

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

17 and 

18 (D) in paragraph (2), by striking ‘‘July 1, 

19 2012’’ and inserting ‘‘July 1, 2021’’. 

20 (2) AMOUNTS AVAILABLE FOR CORE PROGRAM

21 EXPENDITURES.—Section 9503 of such Code is 

22 amended by adding at the end the following: 

23 ‘‘(g) CORE PROGRAMS FINANCING RATE.—For pur24 poses of this section— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2)— 

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

4 motor fuels the tax rate of which is the rate 

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

6 programs financing rate is— 

7 ‘‘(i) after September 30, 2013, and 

8 before October 1, 2014, 18.3 cents per gal9 lon, 

10 ‘‘(ii) after September 30, 2014, and 

11 before October 1, 2015, 9.6 cents per gal12 lon, 

13 ‘‘(iii) after September 30, 2015, and 

14 before October 1, 2016, 6.4 cents per gal15 lon, 

16 ‘‘(iv) after September 30, 2016, and 

17 before October 1, 2017, 5.0 cents per gal18 lon, and 

19 ‘‘(v) after September 30, 2017, 3.7 

20 cents per gallon, and 

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

22 and special motor fuels the tax rate of which is 

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

24 the core programs financing rate is— 


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1 ‘‘(i) after September 30, 2013, and 

2 before October 1, 2014, 24.3 cents per gal3 lon, 

4 ‘‘(ii) after September 30, 2014, and 

5 before October 1, 2015, 12.7 cents per gal6 lon, 

7 ‘‘(iii) after September 30, 2015, and 

8 before October 1, 2016, 8.5 cents per gal9 lon, 

10 ‘‘(iv) after September 30, 2016, and 

11 before October 1, 2017, 6.6 cents per gal12 lon, and 

13 ‘‘(v) after September 30, 2017, 5.0 

14 cents per gallon. 

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

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

17 and (5) of subsection (c), the core programs financ18 ing rate is zero.’’. 

19 (c) TERMINATION OF TRANSFERS TO MASS TRANSIT

20 ACCOUNT.— 

21 (1) IN GENERAL.—Section 9503(e)(2) of the 

22 Internal Revenue Code of 1986 is amended by in23 serting ‘‘, and before October 1, 2013’’ after ‘‘March 

24 31, 1983’’. 


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1 (2) TECHNICAL AMENDMENT.—Section 

2 9503(e)(4) of such Code is amended by striking 

3 ‘‘24-month’’ and inserting ‘‘48-month’’. 

4 (d) EFFECTIVE DATE.—The amendments made by 

5 this section take effect on October 1, 2013. 

6 SEC. 4. INFRASTRUCTURE SPECIAL ASSISTANCE FUND. 

7 (a) BALANCE OF CORE PROGRAMS FINANCING RATE

8 DEPOSITED IN FUND.—Section 9503 of the Internal Rev9 enue Code of 1986 is amended by adding at the end the 

10 following: 

11 ‘‘(h) ESTABLISHMENT OF INFRASTRUCTURE SPE12 CIAL ASSISTANCE FUND.— 

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

14 in the Highway Trust Fund a separate fund to be 

15 known as the ‘Infrastructure Special Assistance 

16 Fund’ consisting of such amounts as may be trans17 ferred or credited to the Infrastructure Special As18 sistance Fund as provided in this subsection or sec19 tion 9602(b). 

20 ‘‘(2) TRANSFERS TO INFRASTRUCTURE SPECIAL

21 ASSISTANCE FUND.—On the first day of each fiscal 

22 year, the Secretary, in consultation with the Sec23 retary of Transportation, shall determine the excess 

24 (if any) of— 

25 ‘‘(A) the sum of— 


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1 ‘‘(i) the amounts appropriated in such 

2 fiscal year to the Highway Trust Fund 

3 under subsection (b) which are attributable 

4 to the core programs financing rate for 

5 such year, plus 

6 ‘‘(ii) the amounts appropriated in 

7 such fiscal year to the Highway Trust 

8 Fund under subsection (b) which are at9 tributable to taxes under sections 4051, 

10 4071, and 4481 for such year, over 

11 ‘‘(B) the amount appropriated under sub12 section (c) for such fiscal year, 

13 and shall transfer such excess to the Infrastructure 

14 Special Assistance Fund. 

15 ‘‘(3) EXPENDITURES FROM INFRASTRUCTURE

16 SPECIAL ASSISTANCE FUND.— 

17 ‘‘(A) TRANSITIONAL ASSISTANCE.— 

18 ‘‘(i) IN GENERAL.—Except as pro19 vided in clause (iii), during fiscal years 

20 2014 through 2017, $1,000,000,000 in the 

21 Infrastructure Special Assistance Fund 

22 shall be available to States for transpor23 tation-related program expenditures. 

24 ‘‘(ii) STATE SHARE.—Each State is 

25 entitled to a share of the amount specified 


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1 in clause (i) determined in the following 

2 manner: 

3 ‘‘(I) Multiply the percentage of 

4 the amounts appropriated in the latest 

5 fiscal year for which such data are 

6 available to the Highway Trust Fund 

7 under subsection (b) which is attrib8 utable to taxes paid by highway users 

9 in the State, by the amount specified 

10 in clause (i). If the result does not ex11 ceed $15,000,000, the State’s share 

12 equals $15,000,000. If the result ex13 ceeds $15,000,000, the State’s share 

14 is determined under subclause (II). 

15 ‘‘(II) Multiply the percentage de16 termined under subclause (I), by the 

17 amount specified in clause (i) reduced 

18 by an amount equal to $15,000,000 

19 times the number of States the share 

20 of which is determined under sub21 clause (I). 

22 ‘‘(iii) DISTRIBUTION OF REMAINING

23 AMOUNT.—If after September 30, 2017, a 

24 portion of the amount specified in clause 

25 (i) remains, the Secretary, in consultation 


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1 with the Secretary of Transportation, 

2 shall, on October 1, 2017, apportion the 

3 portion among the States using the per4 centages determined under clause (ii)(I) 

5 for such States. 

6 ‘‘(B) ADDITIONAL EXPENDITURES FROM

7 FUND.— 

8 ‘‘(i) IN GENERAL.—Amounts in the 

9 Infrastructure Special Assistance Fund, in 

10 excess of the amount specified in subpara11 graph (A)(i), shall be available, as provided 

12 by appropriation Acts, to the States for 

13 any surface transportation (including mass 

14 transit and rail) purpose in such States, 

15 and the Secretary shall apportion such ex16 cess amounts among all States using the 

17 percentages determined under clause (ii)(I) 

18 for such States. 

19 ‘‘(ii) ENFORCEMENT.—If the Sec20 retary determines that a State has used 

21 amounts under clause (i) for a purpose 

22 which is not a surface transportation pur23 pose as described in clause (i), the improp24 erly used amounts shall be deducted from 

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1 ceive from the Highway Trust Fund for 

2 the fiscal year which begins after the date 

3 of the determination.’’. 

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

5 this section takes effect on October 1, 2013. 

6 SEC. 5. 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 2014, 2015, 2016, and 

15 2017, 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— 


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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 


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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, 2013. 

11 SEC. 6. 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 


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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, 2011)’’ and inserting ‘‘1.4 cents per gal11 lon (zero after September 30, 2020)’’. 

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 ‘‘2011’’ and inserting ‘‘2020,’’; 

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 


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

3 ‘‘(B) zero after September 30, 2020.’’. 

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

6 30, 2011’’ and inserting ‘‘zero after September 30, 

7 2020’’. 

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

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

10 ‘‘October 1, 2011’’ both places it appears and 

11 inserting ‘‘October 1, 2020’’; 

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

13 striking ‘‘OCTOBER 1, 2011’’ and inserting ‘‘OC14 TOBER 1, 2020’’; 

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

16 September 30, 2011, and before July 1, 2012’’ 

17 and inserting ‘‘after September 30, 2020, and 

18 before July 1, 2021’’; and 

19 (D) in paragraph (6)(B), by striking ‘‘Oc20 tober 1, 2011’’ and inserting ‘‘October 1, 

21 2018’’. 

22 (c) FLOOR STOCK REFUNDS.— 

23 (1) IN GENERAL.—If— 


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1 (A) before October 1, 2017, 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, 2018; 

18 and 

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

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

21 2017— 

22 (i) the dealer submits a request for re23 fund or credit to the taxpayer before Janu24 ary 1, 2018; and 


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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 2017. 


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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 2011. 

5 SEC. 7. 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. 8. 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 


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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 2018. 

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 2018; 

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


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1 contract authority under this Act for each fiscal 

2 year through fiscal year 2018; 

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 2018; 

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 scorekeeping 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 


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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 2013 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 


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