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‘‘(xiii) 69–1136–0–1–401 (University 
Transportation Research). 
‘‘(xiv) 69–1128–0–1–401 (Washington 
Metropolitan Area Transit Authority).’’. 
(b) CONTINUATION
OF SEPARATE CATEGORIES.—
Section 251(c) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by adding at the 
end the following new paragraphs: 
‘‘(8) with respect to fiscal year 2004—
‘‘(A) 
for 
the 
highway 
category: 
$29,990,000,000 in outlays; and 
‘‘(B) for the mass transit category: 
$6,909,000,000 in outlays; 
‘‘(9) with respect to fiscal year 2005—
‘‘(A) 
for 
the 
highway 
category: 
$30,589,000,000 in outlays; and 
‘‘(B) for the mass transit category: 
$6,462,000,000 in outlays; 
‘‘(10) with respect to fiscal year 2006—
‘‘(A) 
for 
the 
highway 
category: 
$31,249,000,000 in outlays; and 
‘‘(B) for the mass transit category: 
$6,070,000,000 in outlays; 
‘‘(11) with respect to fiscal year 2007—
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‘‘(A) 
for 
the 
highway 
category: 
$32,402,000,000 in outlays; and 
‘‘(B) for the mass transit category: 
$5,843,000,000 in outlays; 
‘‘(12) with respect to fiscal year 2008—
‘‘(A) 
for 
the 
highway 
category: 
$33,358,000,000 in outlays; and 
‘‘(B) for the mass transit category: 
$6,374,000,000 in outlays; 
‘‘(13) with respect to fiscal year 2009—
‘‘(A) 
for 
the 
highway 
category: 
$34,109,000,000 in outlays; and 
‘‘(B) for the mass transit category: 
$6,470,000,000 in outlays.’’. 
(c) HIGHWAY FUNDING REVENUE ALIGNMENT.—
Section 251(b)(1)(B) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (2 U.S.C. 901(b)(1)(B)) 
is amended—
(1) in clause (i)—
(A) by inserting ‘‘for fiscal year 2006, 
2007, 2008, or 2009’’ after ‘‘submits the budg-
et’’; 
(B) by inserting ‘‘the obligation limitation 
and outlay limit for’’ after ‘‘adjustments to’’;
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(C) by striking ‘‘provided in clause 
(ii)(I)(cc).’’ and substituting ‘‘follows:’’; and 
(D) by inserting the following at the end: 
‘‘(I) OMB shall calculate the 
change in the obligation limitation for 
the highway category for the budget 
year by taking the actual level of 
highway receipts for the year before 
the current year and subtracting the 
sum of the estimated level of highway 
receipts in clause (iii) plus any 
amount previously calculated under 
clause (ii) for that year. 
‘‘(II) OMB shall take the amount 
calculated under subclause (I) and 
add that amount to the obligation lim-
itation set forth in section 8102(a) of 
the Safe, Accountable, Flexible, and 
Efficient Transportation Equity Act 
of 2003 for the highway category for 
the budget year, and calculate the 
outlay change resulting from that 
change in obligations relative to that 
amount for the budget year and each 
outyear using current estimates. After
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making the calculation under the pre-
ceding sentence, OMB shall adjust the 
obligation limitation set forth in that 
section for the budget year by adding 
the amount calculated under sub-
clause (I).’’; 
(2) by striking clause (ii) and substituting the 
following: 
‘‘(ii) When the President submits the 
supplementary budget estimates for fiscal 
year 2006, 2007, 2008, or 2009, under 
section 1106 of title 31, United States 
Code, OMB’s Mid-Session Review shall in-
clude adjustments to the obligation limita-
tion and outlay limit for the highway cat-
egory for the budget year and each outyear 
as follows: 
‘‘(I) OMB shall take the current 
estimate of highway receipts for the 
current year and subtract the esti-
mated level of highway receipts in 
clause (iii) for that year. 
‘‘(II) OMB shall take the amount 
calculated under subclause (I) and 
add that amount to the amount of ob-
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ligations set forth in section 8102 of 
the Safe, Accountable, Flexible, and 
Efficient Transportation Equity Act 
of 2003 for the highway category for 
the budget year, and calculate the 
outlay change resulting from that 
change in obligations relative to that 
amount for the budget year and each 
outyear using current estimates. After 
making the calculation under the pre-
ceding sentence, OMB shall adjust the 
amount of obligations set forth in that 
section for the budget year by adding 
the amount calculated under sub-
clause (I).’’; and 
(3) by inserting the following at the end: 
‘‘(iii) The estimated level of highway 
receipts for the purposes of this subpara-
graph are—
‘‘(I) 
for 
fiscal 
year 
2004, 
$30,119,000,000; 
‘‘(II) 
for 
fiscal 
year 
2005, 
$31,109,000,000; 
‘‘(III) for fiscal year 2006, 
$32,191,000,000;
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‘‘(IV) 
for 
fiscal 
year 
2007, 
$33,146,000,000; 
‘‘(V) 
for 
fiscal 
year 
2008, 
$34,018,000,000; and 
‘‘(VI) 
for 
fiscal 
year 
2009, 
$34,844,000,000. 
‘‘(iv) In this subparagraph, the term 
‘highway receipts’ means the governmental 
receipts credited to the highway account of 
the Highway Trust Fund.’’. 
(d) TRANSIT FUNDING REVENUE ALIGNMENT.—Sec-
tion 251(b)(1)(C) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901(b)(1)(C)) is 
amended to read as follows: 
‘‘(C) ADJUSTMENT TO ALIGN MASS TRAN-
SIT SPENDING WITH REVENUES.—
‘‘(i) When the President submits the 
budget for fiscal year 2006, 2007, 2008, or 
2009, under section 1105 of title 31, 
United States Code, OMB shall calculate 
and the budget shall include adjustments 
to the obligation limitation and outlay limit 
for the mass transit category for the budg-
et year and each outyear as follows:
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‘‘(I) OMB shall calculate the 
change in the obligation limitation for 
the mass transit category for the 
budget year by taking the actual level 
of mass transit receipts for the year 
before the current year and subtract 
the sum of the estimated level of mass 
transit receipts in clause (iii) plus any 
amount previously calculated under 
clause (ii) for that year. 
‘‘(II) OMB shall take the amount 
calculated under subclause (I) and 
add that amount to the amount of ob-
ligation limitation set forth in section 
8102 of the Safe, Accountable, Flexi-
ble, and Efficient Transportation Eq-
uity Act of 2003 for the mass transit 
category for the budget year, and cal-
culate the outlay change resulting 
from that change in obligations rel-
ative to that amount for the budget 
year and each outyear using current 
estimates. After making the calcula-
tion under the preceding sentence, 
OMB shall adjust the obligation limi-
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tation set forth in that section for the 
budget year by adding the amount 
calculated under subclause (I). 
‘‘(ii) When the President submits the 
supplementary budget estimates for fiscal 
year 2006, 2007, 2008, or 2009, under 
section 1106 of title 31, United States 
Code, OMB’s Mid-Session Review shall in-
clude adjustments to the obligation limita-
tion and outlay limit for the mass transit 
category for the budget year and each out-
year as follows: 
‘‘(I) OMB shall take the current 
estimate of mass transit receipts for 
the current year and subtract the esti-
mated level of mass transit receipts in 
clause (iii) for that year.
‘‘(II) OMB shall take the amount 
calculated under subclause (I) and 
add that amount to the obligation lim-
itation set forth in section 8102 of the 
Safe, Accountable, Flexible, and Effi-
cient Transportation Equity Act of 
2003 for the mass transit category for 
the budget year, and calculate the
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outlay change resulting from that 
change in obligations relative to that 
amount for the budget year and each 
outyear using current estimates. After 
making the calculation under the pre-
ceding sentence, OMB shall adjust the 
obligation limitation set forth in that 
section for the budget year by adding 
the amount calculated under sub-
clause (I). 
‘‘(iii) The estimated level of mass 
transit receipts for the purposes of this 
subparagraph are—
‘‘(I) 
for 
fiscal 
year 
2004, 
$4,793,000,000; 
‘‘(II) 
for 
fiscal 
year 
2005, 
$4,926,000,000; 
‘‘(III) for fiscal year 2006, 
$5,050,000,000; 
‘‘(IV) 
for 
fiscal 
year 
2007, 
$5,164,000,000; 
‘‘(V) 
for 
fiscal 
year 
2008, 
$5,270,000,000; and 
‘‘(VI) 
for 
fiscal 
year 
2009, 
$5,377,000,000.
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‘‘(iv) In this subparagraph, the term 
‘mass transit receipts’ means the govern-
mental receipts credited to the Mass Tran-
sit Account of the Highway Trust Fund.’’. 
(e) ADDITIONAL ADJUSTMENTS.—Section 251(b)(1) 
of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 901(b)(1)) is further amended—
(1) by redesignating subparagraphs (D) and 
(E) as subparagraphs (E) and (F), respectively; 
(2) in subparagraph (E)(i) as redesignated— 
(A) by striking ‘‘1999’’ and substituting 
‘‘2005’’; 
(B) by striking ‘‘2000’’ and substituting 
‘‘2006’’; 
(C) by striking ‘‘2003’’ and substituting 
‘‘2009’’; and 
(D) by striking ‘‘section 8103 of the 
Transportation Equity Act for the 21st Cen-
tury’’ and substituting ‘‘section 8102 of the 
Safe, Accountable, Flexible, and Efficient 
Transportation Equity Act of 2003’’; 
(3) in subparagraph (E)(ii) as redesignated—
(A) by striking ‘‘2000, 2001, 2002, or 
2003’’ and substituting ‘‘2006, 2007, 2008, 
and 2009’’; and
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(B) by striking ‘‘by subparagraphs (B) and 
(C)’’ and substituting ‘‘made by subparagraphs 
(B), (C), and (D)’’; 
(4) in subparagraph (F) as redesignated, by 
striking ‘‘(B) and (C)’’ and substituting ‘‘(B), (C), 
and (D)’’; and 
(5) by inserting the following after subpara-
graph (C): 
‘‘(D) In addition to the adjustments re-
quired by subparagraphs (B) and (C), when the 
President submits the budget for fiscal year 
2006, 2007, 2008, or 2009, under section 1105 
of title 31, United States Code, OMB shall cal-
culate and the budget shall include for the 
budget year and each outyear an adjustment to 
the limits on outlays for the highway category 
and the mass transit category equal to—
‘‘(i) the outlays for the applicable cat-
egory calculated assuming obligation levels 
consistent with the estimates prepared pur-
suant to subparagraph (E), as adjusted, 
using current technical assumptions; minus 
‘‘(ii) the outlays for the applicable cat-
egory set forth in the subparagraph (E) es-
timates, as adjusted.’’.
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(f) ENFORCEMENT OF GUARANTEE.—Rule XXI of 
the Rules of the House of Representatives is amended by 
striking ‘‘section 8103 of the Transportation Equity Act 
for the 21st Century’’ in clause 3 and substituting ‘‘sec-
tion 8102 of the Safe, Accountable, Flexible, and Efficient 
Transportation Equity Act of 2003’’. 
SEC. 8102. LEVEL OF OBLIGATION LIMITATIONS. 
(a) HIGHWAY CATEGORY.—For the purposes of sec-
tion 251(b) of the Balanced Budget and Emergency Def-
icit Control Act of 1985, the level of obligation limitations 
for the highway category is—
(1) for fiscal year 2004, $30,280,000,000; 
(2) for fiscal year 2005, $31,270,000,000; 
(3) for fiscal year 2006, $32,352,000,000; 
(4) for fiscal year 2007, $33,307,000,000; 
(5) for fiscal year 2008, $34,179,000,000; and 
(6) for fiscal year 2009, $35,005,000,000. 
(b) MASS TRANSIT CATEGORY.—
(1) For the purposes of section 251(b) of the 
Balanced Budget and Emergency Deficit Control 
Act of 1985, the level of obligation limitations for 
the mass transit category is—
(A) for fiscal year 2004, $5,936,000,000; 
(B) for fiscal year 2005, $6,054,720,000; 
(C) for fiscal year 2006, $6,180,659,000;
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(D) for fiscal year 2007, $6,319,723,000; 
(E) for fiscal year 2008, $6,475,820,000; 
and 
(F) for fiscal year 2009, $6,633,183,000. 
(2) For purposes of this subsection, the term 
‘‘obligation limitations’’ means the sum of budget 
authority and obligation limitations. 
SEC. 8103. EFFECTIVENESS OF TITLE. 
This title, and the amendments made by this title, 
become effective on the day that section 251 of the Bal-
anced Budget and Emergency Deficit Control Act of 1985 
comes into effect after the enactment of this Act. 
TITLE IX—AMENDMENTS OF IN-
TERNAL REVENUE CODE OF 
1986
SEC. 9001. SHORT TITLE; AMENDMENT OF 1986 CODE. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Surface Transportation Revenue Act of 2004’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this title an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
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SEC. 9002. EXTENSION OF HIGHWAY-RELATED TAXES AND 
TRUST FUND. 
(a) EXTENSION OF TAXES.—
(1) IN GENERAL.—The following provisions are 
each amended by striking ‘‘2005’’ each place it ap-
pears and inserting ‘‘2011’’: 
(A) Section 4041(a)(1)(C)(iii)(I) (relating 
to rate of tax on certain buses). 
(B) Section 4041(a)(2)(B) (relating to rate 
of tax on special motor fuels). 
(C) Section 4041(m)(1)(A) (relating to 
certain alcohol fuels). 
(D) Section 4051(c) (relating to termi-
nation of tax on heavy trucks and trailers). 
(E) Section 4071(d) (relating to termi-
nation of tax on tires). 
(F) Section 4081(d)(1) (relating to termi-
nation of tax on gasoline, diesel fuel, and ker-
osene). 
(G) Section 4481(e) (relating to period tax 
in effect). 
(H) Section 4482(c)(4) (relating to taxable 
period). 
(I) Section 4482(d) (relating to special 
rule for taxable period in which termination 
date occurs).
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(2) 
FLOOR
STOCKS
REFUNDS.—Section 
6412(a)(1) (relating to floor stocks refunds) is 
amended—
(A) by striking ‘‘2005’’ each place it ap-
pears and inserting ‘‘2011’’, and 
(B) by striking ‘‘2006’’ each place it ap-
pears and inserting ‘‘2012’’. 
(b) EXTENSION OF CERTAIN EXEMPTIONS.—The fol-
lowing provisions are each amended by striking ‘‘2005’’ 
and inserting ‘‘2011’’: 
(1) Section 4221(a) (relating to certain tax—
free sales). 
(2) Section 4483(g) (relating to termination of 
exemptions for highway use tax). 
(c) EXTENSION OF DEPOSITS INTO, AND CERTAIN 
TRANSFERS
FROM, TRUST
FUND.—Subsections (b), 
(c)(2), and (c)(3) of section 9503 (relating to the Highway 
Trust Fund) are amended—
(1) by striking ‘‘2005’’ each place it appears 
and inserting ‘‘2011’’, and 
(2) by striking ‘‘2006’’ each place it appears 
and inserting ‘‘2012’’. 
(d) EXTENSION AND EXPANSION OF EXPENDITURES 
FROM TRUST FUND.—
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(1) HIGHWAY
ACCOUNT.—Section 9503 is 
amended by striking subsection (c)(1) and inserting 
the following: 
‘‘(1) FEDERAL-AID HIGHWAY AND SAFETY PRO-
GRAMS.—Except as provided in subsection (e), 
amounts in the Highway Trust Fund shall be avail-
able, as provided by appropriation Acts, for making 
expenditures authorized by law to be paid out of the 
Highway Trust Fund before October 1, 2011, to 
meet those obligations of the United States here-
tofore or hereafter incurred under the following 
Acts, as in effect on the date of enactment of the 
last Act listed: 
‘‘(A) The Highway Revenue Act of 1956. 
‘‘(B) The Surface Transportation Assist-
ance Act of 1982. 
‘‘(C) The Surface Transportation and Uni-
form Relocation Assistance Act of 1987. 
‘‘(D) The Intermodal Surface Transpor-
tation Efficiency Act of 1991. 
‘‘(E) The Transportation Equity Act for 
the 21st Century. 
‘‘(F) The Motor Carrier Safety Improve-
ment Act of 1999.
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‘‘(G) the Safe, Accountable, Flexible, and 
Efficient Transportation Equity Act of 2003.’’. 
(2) 
MASS
TRANSIT
ACCOUNT.—Section 
9503(e)(3) is amended to read as follows: 
‘‘(3) 
EXPENDITURES
FROM
ACCOUNT.—
Amounts in the Mass Transit Account shall be avail-
able, as provided by appropriation Acts, for making 
capital or capital—related expenditures before Octo-
ber 1, 2011 (including capital expenditures for new 
projects) in accordance with the following Acts and 
provisions of law, as in effect on the date of enact-
ment of the last Act listed: 
‘‘(A) Section 5338(a)(1) or (b)(1) of title 
49. 
‘‘(B) The Intermodal Surface Transpor-
tation Efficiency Act of 1991. 
‘‘(C) The Transportation Equity Act for 
the 21st Century. 
‘‘(D) the Safe, Accountable, Flexible, and 
Efficient Transportation Equity Act of 2003.’’. 
SEC. 9003. EXTENSION OF TAX BENEFITS FOR ALCOHOL 
FUELS. 
(a) EXTENSION OF TAX BENEFITS.—
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(1) EXTENSION.—The following provisions are 
each amended by striking ‘‘2007’’ each place it ap-
pears and inserting ‘‘2014’’: 
(A) Section 4041(b)(2)(C)(ii) and (D) (re-
lating to termination of reduction in tax for 
qualified methanol and ethanol fuel). 
(B) Section 4041(k)(3) (relating to termi-
nation of rates relating to fuels containing alco-
hol). 
(C) Section 4081(c)(8) (relating to termi-
nation of special rate for taxable fuels mixed 
with alcohol). 
(D) Section 4091(c)(5) (relating to termi-
nation of reduced rate of tax for aviation fuel 
in alcohol mixture, etc.). 
(E) Section 40(h) (relating to termination 
of credit for ethanol blenders). 
(2) EXTENSION
OF
REFUND
AUTHORITY.—
Paragraph (4) of section 6427(f) (relating to refund 
for gasoline, diesel fuel, and aviation fuel used to 
produce certain alcohol fuels), as amended by the 
Taxpayer Relief Act of 1997, is amended by striking 
‘‘2007’’ and inserting ‘‘2012’’. 
(3) CREDIT FOR ALCOHOL USED AS A FUEL.—
Paragraph (1) of section 40(e) (relating to termi-
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nation of credit for alcohol used as a fuel) is amend-
ed—
(A) by striking ‘‘December 31, 2007’’ in 
subparagraph (A) and inserting ‘‘December 31, 
2014’’, and 
(B) by striking ‘‘January 1, 2008’’ and in-
serting ‘‘January 1, 2015’’. 
(4) TARIFF SCHEDULE.—Headings 9901.00.50 
and 9901.00.52 of the Harmonized Tariff Schedule 
of the United States (19 U.S.C. 3007) are each 
amended in the effective period column by striking 
‘‘10/1/2007’’ each place it appears and inserting 
‘‘10/1/2014’’. 
(b) CONFORMING AMENDMENTS.—
(1) AMOUNT OF REDUCED CREDIT FOR ETH-
ANOL BLENDERS.—The table in paragraph (2) of 
40(h) is amended by striking ‘‘2005, 2006, or 2007’’ 
and inserting ‘‘2005 through 2014’’. 
(2) APPLICABLE BLENDER RATE FOR EXEMPT-
ED QUALIFIED METHANOL AND ETHANOL FUEL.—
Section 4041(b)(2)(C) is amended by striking 
‘‘2001’’ and inserting ‘‘2008’’.
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SEC. 9004. PRIVATE ACTIVITY BONDS FOR SURFACE TRANS-
PORTATION INFRASTRUCTURE. 
(a) EXEMPT
FACILITY
BONDS.—Section 142 is 
amended—
(1) in subsection (a) by—
(A) striking ‘‘or’’ at the end of paragraph 
(12); 
(B) striking the period at the end of para-
graph (13) and inserting a comma; and 
(C) adding after paragraph (13) the fol-
lowing new paragraphs: 
‘‘(14) highway facilities, or 
‘‘(15) surface freight transfer facilities.’’; and 
(2) by adding new subsections (l), (m) and (n) 
at the end, as follows: 
‘‘(l) HIGHWAY FACILITIES.—For purposes of sub-
section (a)(14), the term ‘highway facilities’ means—
‘‘(1) a surface transportation project eligible for 
Federal assistance under title 23, United States 
Code (as in effect on the date of enactment of this 
subsection), or 
‘‘(2) a project for an international bridge or 
tunnel for which an international entity authorized 
under Federal or State law is responsible. 
‘‘(m) SURFACE FREIGHT TRANSFER FACILITIES.—
For purposes of subsection (a)(15), the term ‘surface
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freight transfer facilities’ means facilities for the transfer 
of freight from truck to rail or rail to truck (including 
any temporary storage facilities directly related to such 
transfers). 
‘‘(n) AGGREGATE FACE AMOUNT OF TAX-EXEMPT 
FINANCING
FOR HIGHWAY FACILITIES
AND SURFACE 
FREIGHT TRANSFER FACILITIES.—
‘‘(1) IN GENERAL.—The aggregate face amount 
of bonds issued pursuant to subsections (a)(14) (re-
lating to highway facilities) and (a)(15) (relating to 
surface freight transfer facilities) shall not exceed 
$15,000,000,000, determined without regard to any 
bond the proceeds of which are used exclusively to 
refund a bond issued pursuant to either of such sub-
sections (or a bond which is a part of a series of 
refundings of a bond so issued) if the amount of the 
refunding bond does not exceed the outstanding 
amount of the refunded bond. 
‘‘(2) ALLOCATION.—The Secretary of Trans-
portation shall allocate the amount described in 
paragraph (1) among eligible projects satisfying the 
requirements of subsection (a)(14) or (a)(15).’’. 
(b) VOLUME
CAP, EXCEPTION
FOR
CERTAIN 
BONDS.—Section 146(g) is amended in paragraph (3), 
by—
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(1) striking ‘‘(12), or (13)’’ and inserting 
‘‘(12), (13), (14), or (15)’’; and 
(2) striking ‘‘and qualified public educational 
facilities’’ and inserting ‘‘qualified public educational 
facilities, highway facilities, and surface freight 
transfer facilities’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
SEC. 9005. ALL ALCOHOL FUEL TAXES TRANSFERRED TO 
HIGHWAY TRUST FUND. 
(a) IN GENERAL.—Section 9503(b)(4) (relating to 
certain taxes not transferred to Highway Trust Fund) is 
amended—
(1) by adding ‘‘or’’ at the end of subparagraph 
(C); 
(2) in subparagraph (D)(iii), by striking ‘‘, 
and’’ after ‘‘2005’’ and inserting a period; and 
(3) by striking subparagraphs (E) and (F). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxes imposed after September 
30, 2003.
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SEC. 9006. TRANSFER FROM HIGHWAY TRUST FUND TO 
BOAT SAFETY ACCOUNT. 
(a) IN GENERAL.—Section 9503(c)(4)(A) is amended 
by striking ‘‘2005’’ and inserting ‘‘2011’’. 
(b) CONFORMING
AMENDMENTS
TO
LAND
AND 
WATER CONSERVATION FUND.—Section 201(b) of the 
Land and Water Conservation Fund Act of 1965 (16 
U.S.C. 460l–11(b)) is amended—
(1) by striking ‘‘2003’’ and inserting ‘‘2009’’, 
and 
(2) by striking ‘‘2004’’ each place it appears 
and inserting ‘‘2010’’. 
(c) TECHNICAL CORRECTION TO HOMELAND SECU-
RITY ACT.—Section 1511(e)(2) of the Homeland Security 
Act of 2002 (Pub. L. No. 107–296) is amended by strik-
ing ‘‘and to any funds provided to the Coast Guard from 
the Aquatic Resources Trust Fund of the Highway Trust 
Fund for boating safety programs’’, and inserting ‘‘and 
any funds provided to the Coast Guard from the Highway 
Trust Fund and transferred into the Boat Safety Account 
of the Aquatic Resources Trust Fund for boating safety 
programs.’’. 
(d) EXPENDITURES
FROM
BOAT
SAFETY
AC-
COUNT.—Section 9504(c) is amended by striking ‘‘2003’’ 
and inserting ‘‘2009’’.
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SEC. 9007. EXTENSION OF SMALL-ENGINE FUEL TAXES 
TRANSFERRED TO SPORT FISH RESTORA-
TION ACCOUNT.
Section 9503(c)(5)(A) is amended by striking the 
year ‘‘2005’’ and inserting ‘‘2011’’. 
SEC. 9008. TECHNICAL CORRECTION. 
The last sentence of paragraph (2) of section 9504(b) 
is amended by striking ‘‘subparagraph (B)’’, and inserting 
‘‘subparagraph (C)’’. 
SEC. 9009. TRANSFER BY REGISTERED PIPELINE, VESSEL, 
OR BARGE REQUIRED FOR FUEL TAX EXEMP-
TION OF BULK TRANSFERS TO REGISTERED 
TERMINALS OR REFINERIES; DISPLAY OF 
REGISTRATION REQUIREMENT. 
(a) IN GENERAL.—Section 4081(a)(1)(B) (relating 
to exemption for bulk transfers to registered terminals or 
refineries) is amended by inserting ‘‘, bulk carrier,’’ after 
‘‘the taxable fuel’’. 
(b) CIVIL PENALTY FOR CARRYING TAXABLE FUELS 
BY NONREGISTERED PIPELINES OR VESSELS.—
(1) IN GENERAL.—Part II of subchapter B of 
chapter 68 (relating to assessable penalties) is 
amended by adding at the end the following new sec-
tion:
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‘‘§ 6717. Failure to register under section 4101
‘‘(a) FAILURE TO REGISTER.—Any person who fails 
to register with the Secretary as required by regulations 
under section 4101 shall pay a penalty of $1,000 for each 
day during the period of such failure in which such person 
engages in an activity for which registration is required. 
‘‘(b) JOINT AND SEVERAL LIABILITY.—
‘‘(1) IN
GENERAL.—If a penalty is imposed 
under this section on any business entity, each offi-
cer, employee, or agent of such entity or other con-
tracting party who willfully participated in any act 
giving rise to such penalty shall be jointly and sever-
ally liable with such entity for such penalty. 
‘‘(2) AFFILIATED GROUPS.—If a business entity 
described in paragraph (1) is part of an affiliated 
group (as defined in section 1504(a)), the parent 
corporation of such entity shall be jointly and sever-
ally liable with such entity for the penalty imposed 
under this section.’’. 
(2) CONFORMING AMENDMENT.—The table of 
sections for part II of subchapter B of chapter 68 
is amended by adding at the end the following new 
item:
‘‘6717. Failure to register under section 4101.’’.
(c) DISPLAY OF REGISTRATION.—
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(1) IN
GENERAL.—Section 4101 (relating to 
registration and bond) is amended by adding at the 
end the following new subsection: 
‘‘(e) DISPLAY OF REGISTRATION.—Every vessel oper-
ator required by the Secretary to register under this sec-
tion with respect to the tax imposed by section 4081 shall 
display proof of such registration in such manner as the 
Secretary may prescribe.’’. 
(2) CIVIL PENALTY FOR FAILURE TO DISPLAY 
REGISTRATION.—
(A) IN GENERAL.—Part II of subchapter 
B of chapter 68 (relating to assessable pen-
alties) is amended by adding at the end the fol-
lowing new section: 
‘‘§ 6718. Failure to display proof of registration by 
vessels or barges 
‘‘(a) FAILURE TO DISPLAY PROOF OF REGISTRA-
TION.—Every vessel operator who fails to display proof of 
registration when required to do so pursuant to section 
4101(e) shall pay a penalty of $500 for each such failure. 
With respect to any vessel, only one penalty shall be im-
posed by this section during any calendar month. 
‘‘(b) MULTIPLE VIOLATIONS.—In determining the 
penalty under subsection (a) on any person or operator, 
subsection (a) shall be applied by increasing the amount
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be by electronic format for any person having at 
least 25 reportable transactions in a month.’’. 
(b) USE TAX
ON CERTAIN VEHICLES.—Section 
4481(b) is amended by adding the following new sentence 
at the end: ‘‘Any return of tax imposed by this section 
reporting at least 25 vehicles shall be filed by electronic 
format.’’. 
(c) ELECTRONIC FORMAT.—The Secretary of the 
Treasury shall describe the electronic formats for filing 
under subsections (a) and (b) not later than 90 days after 
the date of the enactment of this Act. 
(d) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to returns due after the date 
the Secretary of the Treasury describes the electronic for-
mat for filing under subsection (a) and the amendment 
made by subsection (b) shall apply to returns due after 
the date the Secretary of the Treasury describes the elec-
tronic format for filing under subsection (b). 
SEC. 9011. CIVIL PENALTY FOR REFUSAL OF ENTRY.
(a) Section 4083(c)(3) is amended by adding at the 
end a new sentence as follows: ‘‘For purposes of this sub-
section, the penalty provided by section 7342 shall be 
treated as an assessable penalty and assessed in accord-
ance with section 6671.’’.
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect 90 days after the date of en-
actment of this Act. 
SEC. 9012. REQUIREMENT OF TAX PAYMENT DECAL; ELIMI-
NATION OF INSTALLMENT PAYMENTS OF 
HIGHWAY USE TAX. 
(a) DISPLAY OF PROOF OF PAYMENT OF TAX.—Sec-
tion 4481(b) (relating to imposition of tax on use of cer-
tain highway motor vehicles) is amended by adding a sen-
tence at the end as follows: 
‘‘Every person, agency, or instrumentality who has paid 
the tax imposed by this section shall display proof of such 
payment in a manner as the Secretary may prescribe.’’. 
(b) CIVIL PENALTY
FOR FAILURE TO DISPLAY 
PROOF OF TAX PAYMENT DECAL.—
(1) IN GENERAL.—Part II of subchapter B of 
chapter 68 (relating to assessable penalties) is 
amended by adding at the end the following new sec-
tion: 
‘‘§ 6719. Failure to display proof of tax payment decal 
‘‘(a) IMPOSITION OF PENALTY.—Each person, agen-
cy, or instrumentality who fails to display proof of pay-
ment of tax when required to do so pursuant to the last 
sentence of section 4481(b) (relating to the display of 
proof of payment of tax) shall pay a penalty of $50. With
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respect to any vehicle, only one penalty shall be imposed 
by this section during any calendar month. 
‘‘(b) MULTIPLE VIOLATIONS.—In determining the 
penalty under subsection (a) on any person, agency, or 
instrumentality, subsection (a) shall be applied by increas-
ing the amount imposed in subsection (a) by the product 
of such amount and the number of prior penalties (if any) 
imposed by this section on such person, agency, or instru-
mentality.’’. 
(2) CONFORMING AMENDMENT.—The table of 
sections for part II of subchapter B of chapter 68 
is amended by adding at the end the following new 
item:
‘‘6719. Failure to display proof of tax payment decal.’’.
(c) ELIMINATION OF PRIVILEGE TO PAY HIGHWAY 
USE TAX IN INSTALLMENTS.—
(1) REPEAL.—Section 6156 (relating to the 
privilege to pay in installments the tax imposed 
under section 4481 of such Code on use of highway 
motor vehicles) is repealed. 
(2) CONFORMING AMENDMENT.—The table of 
sections for subchapter A of chapter 62 is amended 
by striking the item relating to section 6156. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable periods beginning after 
the date of the enactment of this Act.
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SEC. 9013. ADDITIONAL RULES REGARDING INSPECTIONS 
OF RECORDS. 
(a) PROVISION OF COPIES OF RECORDS.—Section 
4102 (relating to inspection of records by local officers) 
is amended by inserting ‘‘, and copies shall be furnished 
upon request of,’’ after ‘‘inspection by’’. 
(b) INSPECTION BY OTHER ENFORCEMENT AGEN-
CIES.—Section 4102 of the Internal Revenue Code of 
1986, as amended by subsection (a), is amended by insert-
ing ‘‘; such records and information on returns required 
to be filed with respect to taxes under section 4481 shall 
be open to inspection by officers of any State agency 
charged with the registration and licensing of vehicles de-
scribed in such section and officers of any other Federal 
or State agency charged with the enforcement of Federal 
or State law regarding taxable fuels or criminal activities 
regarding taxable fuels’’ after ‘‘section 4083)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act.
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