paragraphs for the preceding cal-
endar year. 
‘‘(iv) 
DOUBLE
INDEXATION.—For 
purposes of clause (i), the double index-
ation for any calendar year is the sum of— 
‘‘(I) the highway construction 
cost adjustment, and 
‘‘(II) the CAFE fuel saved ad-
justment. 
‘‘(v) HIGHWAY
CONSTRUCTION
COST 
ADJUSTMENT.—For purposes of clause 
(iv), the highway construction cost adjust-
ment for any calendar year is the percent-
age (if any) by which— 
‘‘(I) the National Highway Con-
struction Cost Index for the preceding 
calendar year, exceeds 
‘‘(II) the National Highway Con-
struction Cost Index for calendar year 
2016 or, if applicable, the first year of 
a successor index. 
‘‘(vi) NATIONAL HIGHWAY CONSTRUC-
TION
COST
INDEX
FOR
ANY
CALENDAR 
YEAR.—For purposes of clause (v), the 
National Highway Construction Cost Index 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
for any calendar year is the average of the 
National Highway Construction Cost Index 
as of the close of the 12-month period end-
ing on June 30 of such calendar year. 
‘‘(vii) 
NATIONAL
HIGHWAY
CON-
STRUCTION COST INDEX.—For purposes of 
clause (v), the term ‘National Highway 
Construction Cost Index’ means the last 
National Highway Construction Cost Index 
published by the Department of Transpor-
tation or successor index. 
‘‘(viii) CAFE FUEL
SAVED
ADJUST-
MENT.—For purposes of clause (iv), the 
CAFE fuel saved adjustment for a cal-
endar year is the percentage (if any) by 
which annual motor fuel use is reduced by 
the estimated CAFE fuel saved for that 
calendar year from the annual motor fuel 
use for the prior calendar year. 
‘‘(ix) 
ESTIMATED
CAFE
FUEL 
SAVED.—The term ‘estimated CAFE fuel 
saved’ for a calendar year means— 
‘‘(I) In the case of the 18.3 cents 
rate in subparagraph (A)(i), the com-
bined gasoline fuel saved estimates 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
issued by the National Highway Traf-
fic Safety Administration and the En-
vironmental Protection Agency for 
passenger 
automobiles 
and 
light 
trucks published in the Federal Reg-
ister on May 7, 2010, and October 15, 
2012, and for medium and heavy-duty 
engines and vehicles published in the 
Federal Register on September 15, 
2011, and October 25, 2016, as part 
of final rules to implement corporate 
average fuel economy standards, and 
such successor estimates included in 
successor rules. 
‘‘(II) In the case of the 24.3 
cents rate in subparagraph (A)(iii) 
and the 19.7 cents rate in subpara-
graph (D), the combined diesel fuel 
saved estimates issued by the Na-
tional Highway Traffic Safety Admin-
istration and the Environmental Pro-
tection Agency for medium and heavy- 
duty engines and vehicles published in 
the Federal Register on September 
15, 2011, and October 25, 2016, as 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
part of final rules to implement cor-
porate average fuel economy stand-
ards, and such successor estimates in-
cluded in successor rules. 
‘‘(x) ANNUAL
MOTOR
FUEL
USE.— 
The term ‘annual motor fuel use’ means— 
‘‘(I) In the case of the 18.3 cents 
rate in subparagraph (A)(i), the total 
number of gallons of gasoline used in 
a calendar year in highway use, as 
published by the Federal Highway 
Administration as part of its annual 
motor fuel data survey. 
‘‘(II) In the case of the 24.3 
cents rate in subparagraph (A)(iii) 
and the 19.7 cents rate in subpara-
graph (D), the total number of gallons 
of diesel used in a calendar year in 
highway use, as published by the Fed-
eral Highway Administration as part 
of its annual motor fuel data survey. 
‘‘(xi) NOTICE.—Not later than De-
cember 15, 2017, and annually thereafter, 
the Secretary shall publish the rates of tax 
VerDate Sep 11 2014 
22:25 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
as adjusted under this subparagraph for 
the succeeding calendar year.’’. 
(b) RETAIL FUEL EXCISE TAX.—Subsection (a) of 
section 4041 of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(4) HIGHWAY
INFLATION
ADJUSTMENT.—If 
an increase in rates is made under section 
4081(a)(2)(E) for any calendar year after 2017, 
then each dollar amount in paragraphs (1)(C)(iii)(I), 
(2)(B)(i), (2)(B)(ii), (2)(B)(iv), and (3)(A) of this 
subsection 
and 
in 
subsections 
(b)(2)(A)(i), 
(b)(2)(C)(i), and (m)(1) shall be increased in the 
same manner and subject to the same conditions 
that are applicable under section 4081(a)(2)(E).’’. 
(c) CONFORMING AMENDMENT.—Subparagraph (A) 
of section 4081(a)(2) of such Code is amended by striking 
‘‘The rate’’ and inserting ‘‘Except as provided in subpara-
graph (C), the rate’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods beginning after July 31, 
2017. 
SEC. 3. TRANSPORTATION BONDS. 
(a) ISSUANCE.—The Secretary of the Treasury shall, 
pursuant to subchapter I of chapter 31 of title 31, United 
States Code, issue bonds, to be known as ‘‘Invest in Amer-
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
ica Bonds’’, which meet the terms and conditions of sub-
section (b), and the bond revenue shall be transferred to 
the Highway Trust Fund with 80 percent allocated to the 
Highway Account (as defined in section 9503(e)(5)(B) of 
the Internal Revenue Code of 1986) and 20 percent allo-
cated to the Mass Transit Account. 
(b) TERMS AND CONDITIONS.— 
(1) TERM.—Bonds issued under subsection (a) 
shall have terms of 30 years. 
(2) FREQUENCY.—Bonds shall be issued under 
subsection (a) every fiscal year. 
(3) FACE
AMOUNT
FORMULA
FOR
FISCAL 
YEARS
2017
THROUGH
2020.—Bonds issued under 
subsection (a) for each of fiscal years 2017 through 
2020 shall have a face amount that equals, for that 
fiscal year— 
(A) the Federal share (as defined in sec-
tion 503(b)(8)(C)(v) of title 23, United States 
Code, and section 308(e)(3)(E) of title 49, 
United States Code) of the most recent esti-
mates required under section 503(b)(8)(C)(iv) 
of title 23, United States Code, and section 
308(e)(3)(D) of title 49, United States Code; 
minus 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
cal year not including revenues attributed to 
this section. 
(5) AMOUNT OUTSTANDING.—Notwithstanding 
paragraphs (3) and (4), the total face amount of 
bonds issued under subsection (a) may not exceed 
the amount the Secretary of the Treasury and the 
Secretary of Transportation determines can be re-
deemed, taking into account this section and section 
9503(g) of the Internal Revenue Code of 1986. 
(6) SUNSET.—No bonds may be issued under 
subsection (a) after September 30, 2030. 
(c) CAPITAL INVESTMENT GRANT SPECIAL RULE.— 
Prior to the application of section 105 of title 23, United 
States Code, for a fiscal year, an amount equal to a per-
centage of bond revenue transferred to the Highway Trust 
Fund and allocated to the Mass Transit Account equal 
to the ratio of the funds appropriated in the preceding 
fiscal year to carry out section 5309 of title 49, United 
States Code, to the funds made available in the same fiscal 
year to carry out section 5338(a)(1) of title 49, United 
States Code, shall be available to make additional grants 
pursuant to section 5309 of title 49, United States Code. 
(d) SET-ASIDE SPECIAL RULE.— 
(1) IN
GENERAL.—In determining the addi-
tional amounts of contract authority to be made 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
available under section 105 of title 23, United States 
Code, for a fiscal year, the Secretary shall make ad-
justments under section 105(c)(1) of title 23, United 
States Code, for a set-aside from the Highway Ac-
count (as defined in section 9503(e)(5)(B) of the In-
ternal Revenue Code of 1986) or Mass Transit Ac-
count referred to in paragraph (2)— 
(A) by determining the ratio that— 
(i) the amount authorized to be ap-
propriated for the set-aside from the ac-
count for that fiscal year; bears to 
(ii) the total amount authorized to be 
appropriated for that fiscal year for all 
programs (except as provided in section 
105(d) of title 23, United States Code) 
under such account; 
(B) by multiplying the ratio determined 
under subparagraph (A) by the amount of the 
adjustment for the account determined under 
section 105(b)(1)(B) of title 23, United States 
Code; and 
(C) by adjusting the amount that the Sec-
retary would have allocated for the set-aside for 
that fiscal year but for section 105 of title 23, 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
United States Code, by the amount calculated 
under subparagraph (B). 
(2) SET-ASIDES.—The set-asides referred to in 
paragraph (1) are the amounts reserved for a fiscal 
year under each of— 
(A) section 104(b)(5)(B) of title 23, 
United States Code; 
(B) sections 104(h)(1) and 104(h)(2) of 
title 23, United States Code; 
(C) section 130(e)(1) of title 23, United 
States Code; 
(D) section 133(h)(1)(A) of title 23, 
United States Code; 
(E) section 1519(a) of MAP–21 (126 Stat. 
524), as amended by section 1418 of the FAST 
Act (129 Stat. 1423); and 
(F) section 5336(h)(1) of title 49, United 
States Code. 
(3) 
CONFORMING
AMENDMENTS.—Section 
105(g) of title 23, United States Code, is amend-
ed— 
(A) in paragraph (2) by inserting ‘‘or the 
Temporary Transportation Bond Repayment 
Account’’ before the period at the end; and 
(B) by adding at the end the following: 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
‘‘(4) TEMPORARY TRANSPORTATION BOND RE-
PAYMENT ACCOUNT.—The term ‘Temporary Trans-
portation Bond Repayment Account’ means the 
Temporary Transportation Bond Repayment Ac-
count of the Highway Trust Fund established under 
section 9503(g) of the Internal Revenue Code of 
1986.’’. 
(e) TEMPORARY TRANSPORTATION BOND REPAY-
MENT ACCOUNT.—Section 9503 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new subsection: 
‘‘(g) ESTABLISHMENT OF TEMPORARY TRANSPOR-
TATION BOND REPAYMENT ACCOUNT.— 
‘‘(1) CREATION OF ACCOUNT.—There is estab-
lished in the Highway Trust Fund a separate ac-
count to be known as the ‘Temporary Transpor-
tation Bond Repayment Account’ consisting of such 
amounts as may be transferred or credited to the 
Temporary Transportation Bond Repayment Ac-
count as provided in this section. 
‘‘(2) TRANSFERS
TO
TEMPORARY
TRANSPOR-
TATION
BOND
REPAYMENT
ACCOUNT.—The Sec-
retary of the Treasury shall transfer to the Tem-
porary Transportation Bond Repayment Account the 
portion of the amounts appropriated to the Highway 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
Trust Fund under subsection (b) which are attrib-
utable to the increase in taxes under— 
‘‘(A) section 4041 by reason of section 
4041(a)(4), and 
‘‘(B) section 4081 by reason of section 
4081(a)(2)(E). 
‘‘(3) 
EXPENDITURES
FROM
ACCOUNT.— 
Amounts in the Temporary Transportation Bond 
Repayment Account shall be available for redeeming 
bonds and paying interest payments issued under 
section 3 of the Investing in America: A Penny for 
Progress Act. 
‘‘(4) TERMINATION.—When all bonds issued 
under section 3 of the Investing in America: A 
Penny for Progress Act have been redeemed— 
‘‘(A) the Temporary Transportation Bond 
Repayment Account shall close, and 
‘‘(B) all amounts in the account (and all 
future revenue that, absent this paragraph, 
would have been transferred to the account pur-
suant to paragraph (2)) shall be transferred to 
the Highway Trust Fund with 80 percent allo-
cated to the Highway Account (as defined in 
section 9503(e)(5)(B) of the Internal Revenue 
VerDate Sep 11 2014 
22:25 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
Code of 1986) and 20 percent allocated to the 
Mass Transit Account.’’. 
(f) 
CONFORMING
AMENDMENT.—Section 
9503(e)(5)(B) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘or the Temporary Transportation 
Bond Repayment Account’’ before the period at the end. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply upon enactment of this law. 
SEC. 4. CONDITIONS AND PERFORMANCE REPORTING. 
(a) REPORT
ON
INFRASTRUCTURE
INVESTMENT 
NEEDS.—Section 503(b)(8) of title 23, United States 
Code, is amended to read as follows: 
‘‘(8) REPORT
ON
INFRASTRUCTURE
INVEST-
MENT NEEDS.— 
‘‘(A) IN GENERAL.—Not later than July 
31, 2018, and July 31 of every second year 
thereafter, the Secretary shall submit to the 
Committee on Transportation and Infrastruc-
ture of the House of Representatives and the 
Committee on Environment and Public Works 
of the Senate a report that describes— 
‘‘(i) the current conditions and per-
formance of highway and bridge facilities 
in the United States, including the backlog 
of current highway and bridge needs; and 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
‘‘(ii) the future needs of highway and 
bridge facilities in the United States. 
‘‘(B) COMPARISONS.—A report under this 
paragraph shall include all information nec-
essary to relate and compare the conditions and 
performance measures used in the previous bi-
ennial reports to the conditions and perform-
ance measures used in the current report. 
‘‘(C) REPORT REQUIREMENTS.—In devel-
oping a report under this paragraph, the Sec-
retary shall— 
‘‘(i) prepare a complete assessment of 
highway and bridge facilities in the United 
States; 
‘‘(ii) for the succeeding 20-year pe-
riod, estimate future capital requirements 
for highway and bridge facilities in the 
United States at specified levels of service; 
‘‘(iii) for the succeeding 20-year pe-
riod, estimate the annual expenditures nec-
essary to fund capital projects in the 
United States that— 
‘‘(I) are necessary to address the 
current and future needs of highway 
and bridge facilities; and 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
‘‘(II) have a benefit-cost ratio 
greater than or equal to 1; 
‘‘(iv) for the period ending December 
31, 2036, estimate the annual expenditures 
necessary to fund capital projects in the 
United States that— 
‘‘(I) are necessary to address the 
current and future needs of highway 
and bridge facilities; and 
‘‘(II) have a benefit-cost ratio 
greater than or equal to 1; and 
‘‘(v) for the preceding 10-year period, 
estimate the average annual percentage of 
the total expenditures made for highway 
and bridge capital projects by all levels of 
government that was derived from Federal 
funds.’’. 
(b) REPORT ON PUBLIC TRANSPORTATION INVEST-
MENT NEEDS.—Section 308(e) of title 49, United States 
Code, is amended to read as follows: 
‘‘(e) REPORT ON PUBLIC TRANSPORTATION INVEST-
MENT NEEDS.— 
‘‘(1) IN
GENERAL.—Not later than July 31, 
2018, and July 31 of every second year thereafter, 
the Secretary shall submit to the Committee on 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
Transportation and Infrastructure of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate a report 
that describes— 
‘‘(A) the current conditions and perform-
ance of public transportation systems in the 
United States, including the state of good re-
pair backlog among existing public transpor-
tation systems; and 
‘‘(B) the future needs of public transpor-
tation systems in the United States. 
‘‘(2) COMPARISONS.—A report under this sub-
section shall include all information necessary to re-
late and compare the conditions and performance 
measures used in the previous biennial reports to the 
conditions and performance measures used in the 
current report. 
‘‘(3) CONTENTS.—In developing a report under 
this subsection, the Secretary shall— 
‘‘(A) prepare a complete assessment of 
public transportation systems in the United 
States; 
‘‘(B) for the succeeding 20-year period, es-
timate the future capital requirements for pub-
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
lic transportation systems in the United States 
at specified levels of service; 
‘‘(C) for the succeeding 20-year period, es-
timate the annual capital expenditures nec-
essary to fund capital projects in the United 
States that have a benefit-cost ratio greater 
than one and are necessary— 
‘‘(i) to achieve and maintain a state of 
good repair for public transportation sys-
tems; and 
‘‘(ii) to support the long-term trend 
rate of public transportation ridership 
growth, plus an additional 0.3 percent; and 
‘‘(D) for the period ending December 31, 
2036, estimate the annual capital expenditures 
necessary to fund capital projects in the United 
States that have a benefit-cost ratio greater 
than one and are necessary— 
‘‘(i) to achieve and maintain a state of 
good repair for public transportation sys-
tems; and 
‘‘(ii) to support the long-term trend 
rate of public transportation ridership 
growth, plus an additional 0.3 percent; and 
VerDate Sep 11 2014 
22:25 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS
‘‘(E) for the preceding 10-year period, esti-
mate the average annual percentage of the total 
expenditures made by all levels of government 
for public transportation capital expenditures 
that was derived from Federal funds.’’. 
(c) INTERIM REPORTING METHOD.—Prior to the 
publication of the reports required under the amendments 
made by subsections (a) and (b), the Secretary of Trans-
portation shall provide to the Secretary of the Treasury 
the data necessary to calculate the bond face amount 
under section 3(b) using the most recent published reports 
required by section 503(b)(8) of title 23, United States 
Code, and section 308(e) of title 49, United States Code. 
SEC. 5. REPEAL OF FAST ACT RESCISSION. 
Section 1438 of the FAST Act (Public Law 114–94; 
129 Stat. 1432), and the item relating to that section in 
section 1(b) of that Act, are repealed. 
Æ 
VerDate Sep 11 2014 
00:15 Mar 24, 2017
Jkt 069200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6301
E:\BILLS\H1664.IH
H1664
lotter on DSK5VPTVN1PROD with BILLS