with the Secretary of Transportation, 
shall, on October 1, 2017, apportion the 
portion among the States using the per-
centages determined under clause (ii)(I) 
for such States. 
‘‘(B) ADDITIONAL
EXPENDITURES
FROM 
FUND.— 
‘‘(i) IN
GENERAL.—Amounts in the 
Infrastructure Special Assistance Fund, in 
excess of the amount specified in subpara-
graph (A)(i), shall be available, as provided 
by appropriation Acts, to the States for 
any surface transportation (including mass 
transit and rail) purpose in such States, 
and the Secretary shall apportion such ex-
cess amounts among all States using the 
percentages determined under clause (ii)(I) 
for such States. 
‘‘(ii) ENFORCEMENT.—If the Sec-
retary determines that a State has used 
amounts under clause (i) for a purpose 
which is not a surface transportation pur-
pose as described in clause (i), the improp-
erly used amounts shall be deducted from 
any amount the State would otherwise re-
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ceive from the Highway Trust Fund for 
the fiscal year which begins after the date 
of the determination.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section takes effect on October 1, 2013. 
SEC. 5. RETURN OF EXCESS TAX RECEIPTS TO STATES. 
(a) IN GENERAL.—Section 9503(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(6) RETURN
OF
EXCESS
TAX
RECEIPTS
TO 
STATES
FOR
SURFACE
TRANSPORTATION
PUR-
POSES.— 
‘‘(A) IN GENERAL.—On the first day of 
each of fiscal years 2014, 2015, 2016, and 
2017, the Secretary, in consultation with the 
Secretary of Transportation, shall— 
‘‘(i) determine the excess (if any) of— 
‘‘(I) the amounts appropriated in 
such fiscal year to the Highway Trust 
Fund under subsection (b) which are 
attributable to the taxes described in 
paragraphs (1) and (2) thereof (after 
the application of paragraph (4) 
thereof) over the sum of— 
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‘‘(II) the amounts so appro-
priated which are equivalent to— 
‘‘(aa) such amounts attrib-
utable to the core programs fi-
nancing rate for such year, plus 
‘‘(bb) the taxes described in 
paragraphs (3)(C), (4)(B), and 
(5) of subsection (c), and 
‘‘(ii) allocate the amount determined 
under clause (i) among the States (as de-
fined in section 101(a) of title 23, United 
States Code) for surface transportation 
(including mass transit and rail) purposes 
so that— 
‘‘(I) the percentage of that 
amount allocated to each State, is 
equal to 
‘‘(II) 
the 
percentage 
of 
the 
amount determined under clause (i)(I) 
paid into the Highway Trust Fund in 
the latest fiscal year for which such 
data are available which is attrib-
utable to highway users in the State. 
‘‘(B) ENFORCEMENT.—If the Secretary 
determines that a State has used amounts 
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under subparagraph (A) for a purpose which is 
not a surface transportation purpose as de-
scribed in subparagraph (A), the improperly 
used amounts shall be deducted from any 
amount the State would otherwise receive from 
the Highway Trust Fund for the fiscal year 
which begins after the date of the determina-
tion.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section takes effect on October 1, 2013. 
SEC. 6. REDUCTION IN TAXES ON GASOLINE, DIESEL FUEL, 
KEROSENE, AND SPECIAL FUELS FUNDING 
HIGHWAY TRUST FUND. 
(a) REDUCTION IN TAX RATE.— 
(1) IN GENERAL.—Section 4081(a)(2)(A) of the 
Internal Revenue Code of 1986 is amended— 
(A) in clause (i), by striking ‘‘18.3 cents’’ 
and inserting ‘‘3.7 cents’’; and 
(B) in clause (iii), by striking ‘‘24.3 cents’’ 
and inserting ‘‘5.0 cents’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 4081(a)(2)(D) of such Code is 
amended— 
(i) by striking ‘‘19.7 cents’’ and in-
serting ‘‘4.1 cents’’, and 
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(ii) by striking ‘‘24.3 cents’’ and in-
serting ‘‘5.0 cents’’. 
(B) Section 6427(b)(2)(A) of such Code is 
amended by striking ‘‘7.4 cents’’ and inserting 
‘‘1.5 cents’’. 
(b) ADDITIONAL CONFORMING AMENDMENTS.— 
(1) Section 4041(a)(1)(C)(iii)(I) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘7.3 
cents per gallon (4.3 cents per gallon after Sep-
tember 30, 2011)’’ and inserting ‘‘1.4 cents per gal-
lon (zero after September 30, 2020)’’. 
(2) Section 4041(a)(2)(B)(ii) of such Code is 
amended by striking ‘‘24.3 cents’’ and inserting ‘‘5.0 
cents’’. 
(3) Section 4041(a)(3)(A) of such Code is 
amended by striking ‘‘18.3 cents’’ and inserting ‘‘3.7 
cents’’. 
(4) Section 4041(m)(1) of such Code is amend-
ed— 
(A) in subparagraph (A), by striking 
‘‘2011’’ and inserting ‘‘2020,’’; 
(B) in subparagraph (A)(i), by striking 
‘‘9.15 cents’’ and inserting ‘‘1.8 cents’’; 
(C) in subparagraph (A)(ii), by striking 
‘‘11.3 cents’’ and inserting ‘‘2.3 cents’’; and 
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(D) by striking subparagraph (B) and in-
serting the following: 
‘‘(B) zero after September 30, 2020.’’. 
(5) Section 4081(d)(1) of such Code is amend-
ed by striking ‘‘4.3 cents per gallon after September 
30, 2011’’ and inserting ‘‘zero after September 30, 
2020’’. 
(6) Section 9503(b) of such Code is amended— 
(A) in paragraphs (1) and (2), by striking 
‘‘October 1, 2011’’ both places it appears and 
inserting ‘‘October 1, 2020’’; 
(B) in the heading of paragraph (2), by 
striking ‘‘OCTOBER 1, 2011’’ and inserting ‘‘OC-
TOBER 1, 2020’’; 
(C) in paragraph (2), by striking ‘‘after 
September 30, 2011, and before July 1, 2012’’ 
and inserting ‘‘after September 30, 2020, and 
before July 1, 2021’’; and 
(D) in paragraph (6)(B), by striking ‘‘Oc-
tober 1, 2011’’ and inserting ‘‘October 1, 
2018’’. 
(c) FLOOR STOCK REFUNDS.— 
(1) IN GENERAL.—If— 
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(A) before October 1, 2017, tax has been 
imposed under section 4081 of the Internal 
Revenue Code of 1986 on any liquid; and 
(B) on such date such liquid is held by a 
dealer and has not been used and is intended 
for sale; 
there shall be credited or refunded (without interest) 
to the person who paid such tax (in this subsection 
referred to as the ‘‘taxpayer’’) an amount equal to 
the excess of the tax paid by the taxpayer over the 
amount of such tax which would be imposed on such 
liquid had the taxable event occurred on such date. 
(2) TIME FOR FILING CLAIMS.—No credit or re-
fund shall be allowed or made under this subsection 
unless— 
(A) claim therefor is filed with the Sec-
retary of the Treasury before April 1, 2018; 
and 
(B) in any case where liquid is held by a 
dealer (other than the taxpayer) on October 1, 
2017— 
(i) the dealer submits a request for re-
fund or credit to the taxpayer before Janu-
ary 1, 2018; and 
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(ii) the taxpayer has repaid or agreed 
to repay the amount so claimed to such 
dealer or has obtained the written consent 
of such dealer to the allowance of the cred-
it or the making of the refund. 
(3) EXCEPTION
FOR
FUEL
HELD
IN
RETAIL 
STOCKS.—No credit or refund shall be allowed under 
this subsection with respect to any liquid in retail 
stocks held at the place where intended to be sold 
at retail. 
(4) DEFINITIONS.—For purposes of this sub-
section, the terms ‘‘dealer’’ and ‘‘held by a dealer’’ 
have the respective meanings given to such terms by 
section 6412 of such Code; except that the term 
‘‘dealer’’ includes a producer. 
(5) CERTAIN RULES TO APPLY.—Rules similar 
to the rules of subsections (b) and (c) of section 
6412 and sections 6206 and 6675 of such Code shall 
apply for purposes of this subsection. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to fuel removed after September 30, 
2017. 
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(2) CERTAIN CONFORMING AMENDMENTS.—The 
amendments made by subsections (b)(4) and (b)(6) 
shall apply to fuel removed after September 30, 
2011. 
SEC. 7. REPORT TO CONGRESS. 
Not later than 180 days after the date of enactment 
of this Act, after consultation with the appropriate com-
mittees of Congress, the Secretary of Transportation shall 
submit a report to Congress describing such technical and 
conforming amendments to titles 23 and 49, United States 
Code, and such technical and conforming amendments to 
other laws, as are necessary to bring those titles and other 
laws into conformity with the policy embodied in this Act 
and the amendments made by this Act. 
SEC. 8. EFFECTIVE DATE CONTINGENT ON CERTIFICATION 
OF DEFICIT NEUTRALITY. 
(a) PURPOSE.—The purpose of this section is to en-
sure that— 
(1) this Act will become effective only if the Di-
rector of the Office of Management and Budget cer-
tifies that this Act is deficit neutral; 
(2) discretionary spending limits are reduced to 
capture the savings realized in devolving transpor-
tation functions to the State level pursuant to this 
Act; and 
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(3) the tax reduction made by this Act is not 
scored under pay-as-you-go and does not inadvert-
ently trigger a sequestration. 
(b) EFFECTIVE
DATE
CONTINGENCY.—Notwith-
standing any other provision of this Act, this Act and the 
amendments made by this Act shall take effect only if— 
(1) the Director of the Office of Management 
and Budget (referred to in this section as the ‘‘Di-
rector’’) submits the report as required in subsection 
(c); and 
(2) the report contains a certification by the Di-
rector that, based on the required estimates, the re-
duction in discretionary outlays resulting from the 
reduction in contract authority is at least as great 
as the reduction in revenues for each fiscal year 
through fiscal year 2018. 
(c) OMB ESTIMATES AND REPORT.— 
(1) REQUIREMENTS.—Not later than 5 cal-
endar days after the date of enactment of this Act, 
the Director shall— 
(A) estimate the net change in revenues re-
sulting from this Act for each fiscal year 
through fiscal year 2018; 
(B) estimate the net change in discre-
tionary outlays resulting from the reduction in 
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contract authority under this Act for each fiscal 
year through fiscal year 2018; 
(C) determine, based on those estimates, 
whether the reduction in discretionary outlays 
is at least as great as the reduction in revenues 
for each fiscal year through fiscal year 2018; 
and 
(D) submit to Congress a report setting 
forth the estimates and determination. 
(2) APPLICABLE
ASSUMPTIONS
AND
GUIDE-
LINES.— 
(A) REVENUE
ESTIMATES.—The revenue 
estimates required under paragraph (1)(A) 
shall be predicated on the same economic and 
technical assumptions and scorekeeping guide-
lines that would be used for estimates made 
pursuant to section 252(d) of the Balanced 
Budget and Emergency Deficit Control Act of 
1985 (2 U.S.C. 902(d)). 
(B) OUTLAY ESTIMATES.—The outlay esti-
mates required under paragraph (1)(B) shall be 
determined by comparing the level of discre-
tionary outlays resulting from this Act with the 
corresponding level of discretionary outlays pro-
jected in the baseline under section 257 of the 
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Balanced Budget and Emergency Deficit Con-
trol Act of 1985 (2 U.S.C. 907). 
(d) CONFORMING ADJUSTMENT TO DISCRETIONARY 
SPENDING LIMITS.—On compliance with the requirements 
specified in subsection (b), the Director shall adjust the 
adjusted discretionary spending limits for each fiscal year 
through fiscal year 2013 under section 601(a)(2) of the 
Congressional Budget Act of 1974 (2 U.S.C. 665(a)(2)) 
by the estimated reductions in discretionary outlays under 
subsection (c)(1)(B). 
(e) PAYGO INTERACTION.—On compliance with the 
requirements specified in subsection (b), no changes in 
revenues estimated to result from the enactment of this 
Act shall be counted for the purposes of section 252(d) 
of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 902(d)). 
Æ 
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