I
105TH CONGRESS
1ST SESSION
H. R. 3045
To empower States with authority for most taxing and spending for highway
programs and mass transit programs, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 13, 1997
Mr. KASICH (for himself, Mr. INGLIS of South Carolina, Mr. BOYD, Mr. GOSS,
Mr. HOBSON, Mr. MILLER of Florida, Mr. HOEKSTRA, Mr. OBEY, and
Mrs. THURMAN) introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure, and in addition to the
Committees on Ways and Means, Rules, and the Budget, for a period to
be subsequently determined by the Speaker, in each case for consider-
ation 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 pro-
grams, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Surface Transpor-
tation and Transit Empowerment Act’’.
SEC. 2. DEFINITIONS.
In this Act, the following definitions apply:
(1) CORE
HIGHWAY
PROGRAMS.—The term
‘‘core highway programs’’ means the following pro-
grams:
(A) The Interstate maintenance program
under section 119 of title 23, United States
Code.
(B) Highway bridge replacement and reha-
bilitation (excluding off-System bridges) under
section 144 of that title.
(C)(i) Indian reservation roads under sec-
tion 204 of that title.
(ii) Public lands highways under section
204 of that title.
(iii) Parkways and park roads under sec-
tion 204 of that title.
(D) Highway safety programs under sec-
tion 402 of that title.
(E) Highway safety research and develop-
ment under section 403 of that title.
(F) Motor carrier safety grants under sec-
tion 31104 of title 49, United States Code.
(G) Metropolitan planning under section
104(f) of title 23, United States Code.
(H) National defense highways under sec-
tion 311 of that title.
(I) Emergency relief under section 125 of
that title.
(2) CORE PROGRAM STATE.—The term ‘‘core
program State’’ means a State which makes an elec-
tion under section 3.
(3) ELECTION PERIOD.—The term ‘‘election pe-
riod’’ means the period beginning with the fiscal
year determined under section 3(b) and ending not
later than with fiscal year 2003.
(4) FUTURE INVESTMENT ACCOUNT.—The term
‘‘Future Investment Account’’ means the Future In-
vestment Account established under section 9503(f)
of the Internal Revenue Code of 1986.
(5) HIGHWAY ACCOUNT.—The term ‘‘Highway
Account’’ means the portion of the Highway Trust
Fund established under section 9503 of the Internal
Revenue Code of 1986 which is not the Mass Tran-
sit Account or the Future Investment Account.
(6) MASS TRANSIT ACCOUNT.—The term ‘‘Mass
Transit Account’’ means the Mass Transit Account
established under section 9503(e) of the Internal
Revenue Code of 1986.
(7) SURFACE
TRANSPORTATION.—The term
‘‘surface transportation’’ includes mass transit and
rail.
(8) TIER I CORE PROGRAM STATE.—The term
‘‘tier I core program State’’ means a core program
State that is eligible for a core highway programs
payment and a non-core highway programs block
grant under section 3.
(9) TIER II CORE PROGRAM STATE.—The term
‘‘tier II core program State’’ means a core program
State that is eligible for a core highway programs
payment under section 3 and that elects under sec-
tion 3(e) to reduce its Federal fuel tax rate with a
corresponding reduction in its non-core highway pro-
grams block grant.
(10) TIER I MASS TRANSIT STATE.—The term
‘‘tier I mass transit State’’ means a State that is eli-
gible for a mass transit block grant under section 4.
(11) TIER II MASS TRANSIT STATE.—The term
‘‘tier II mass transit State’’ means a State that
elects under section 4(c) to eliminate its mass tran-
sit fuel tax rate with a corresponding elimination of
its mass transit block grant.
SEC. 3. FUNDING OF HIGHWAY PROGRAMS IN CORE PRO-
GRAM STATES.
(a) ELECTION
TO
BECOME
A
CORE
PROGRAM
STATE.—Each State which makes an election described
in subsection (b) shall be eligible with respect to each fis-
cal year during the State’s election period for—
(1) a core highway programs payment; and
(2) a non-core highway programs block grant,
in lieu of any other payment from the Highway Account
and the Future Highway Investment Sub Account of the
Future Investment Account.
(b) REQUIREMENTS FOR ELECTION.—An election is
described in this subsection if—
(1) such election is made by a State at least
180 days before the first fiscal year with respect to
which the election applies;
(2) such election is made by a State that cer-
tifies that such State has a metropolitan planning
organization established under section 134 of title
23, United States Code, and that such organization
will maintain a system for processing funds received
by the State under this Act throughout the election
period; and
(3) such election is submitted to the Secretary
in such form and manner as the Secretary pre-
scribes.
(c) DETERMINATION AND USE OF CORE HIGHWAY
PROGRAMS PAYMENT.—
(1) DETERMINATION
OF
AMOUNT
OF
PAY-
MENT.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall determine for
each fiscal year the payment necessary to meet
the commitments of core highway programs for
each core program State.
(B) LIMITATIONS.—
(i) GENERAL
RULE.—Any payment
under subparagraph (A) for any fiscal year
for any particular core highway program
for a core program State shall be subject
to—
(I) except with respect to core
highway programs described in sub-
paragraphs (G), (H), and (I) of sec-
tion 2(1), the funding level for such
program for such year under clause
(ii) in lieu of the funding level for
such program for such year under any
other provision of law, and
(II) the annual obligation limita-
tion for such program for such year
imposed under any provision of law.
(ii) SPECIAL FUNDING LEVELS.—For
purposes of clause (i), the funding levels
for core highway programs are as follows:
(I) For the Interstate mainte-
nance program, $5,000,000,000 for
fiscal year 1998, $5,100,000,000 for
fiscal year 1999, $5,300,000,000 for
fiscal year 2000, $5,400,000,000 for
fiscal year 2001, $5,600,000,000 for
fiscal year 2002, and $5,800,000,000
for fiscal year 2003.
(II) For highway bridge replace-
ment 
and 
rehabilitation,
$1,183,000,000 for fiscal year 1998,
$1,217,000,000 for fiscal year 1999,
$1,251,000,000 for fiscal year 2000,
$1,286,000,000 for fiscal year 2001,
$1,321,000,000 for fiscal year 2002,
and $1,358,000,000 for fiscal year
2003.
(III)(aa) For Indian reservation
roads, $197,000,000 for fiscal year
1998, $202,000,000 for fiscal year
1999, $208,000,000 for fiscal year
2000, $214,000,000 for fiscal year
2001, $220,000,000 for fiscal year
2002, and $225,000,000 for fiscal
year 2003.
(bb) For public lands highways,
$177,000,000 for fiscal year 1998,
$182,000,000 for fiscal year 1999,
$187,000,000 for fiscal year 2000,
$192,000,000 for fiscal year 2001,
$197,000,000 for fiscal year 2002,
and $202,000,000 for fiscal year
2002.
(cc) For parkways and park
roads, $86,000,000 for fiscal year
1998, $89,000,000 for fiscal year
1999, $91,000,000 for fiscal year
2000, $94,000,000 for fiscal year
2001, $97,000,000 for fiscal year
2002, and $101,000,000 for fiscal
year 2003.
(IV) For highway safety pro-
grams, $171,000,000 for each of fis-
cal years 1998 through 2003.
(V) For highway safety research
and development, $44,000,000 for
each of fiscal years 1998 through
2003.
(VI) For motor carrier safety
grants, not more than $90,000,000
for each of fiscal years 1998 through
2003.
(2) USE OF PAYMENT.—
(A) IN GENERAL.—The core highway pro-
grams payment for any core program State
shall be available, as provided by appropriation
Acts, to the State for any core highway pro-
gram purpose in such State.
(B) TRANSFERABILITY
OF
FUNDS.—To
the extent that a core program State deter-
mines that funds made available under this sub-
section to the State for a purpose are in excess
of the needs of the State for that purpose, the
State may transfer the excess funds to, and use
the excess funds for, any surface transportation
purpose in the State.
(d) DETERMINATION AND USE OF NON-CORE HIGH-
WAY PROGRAMS BLOCK GRANT.—
(1) DETERMINATION
OF
AMOUNT
OF
BLOCK
GRANT.—Subject to subsection (e), the amount of
the non-core highway programs block grant for any
tier I core program State for any fiscal year is equal
to the excess of—
(A) the amount of taxes transferred to the
Highway Account and the Future Highway In-
vestment Sub Account of the Future Invest-
ment Account for such fiscal year which is at-
tributable to highway users in that State as de-
termined by the Secretary of the Treasury (tak-
ing into account proper reductions for uses of
such taxes for purposes other than the Federal-
aid highway program); over
(B) the core highway programs payment to
such State for such fiscal year, as determined
under subsection (c).
(2) USE
OF
BLOCK
GRANT.—The non-core
highway programs block grant for any tier I core
program State shall be available, as provided by ap-
propriation Acts, to the State for any surface trans-
portation purpose in such State. Any project carry-
ing out such a purpose shall be exempt from any
Federal regulation other than with respect to health
and safety standards and practices.
(e) ELECTION TO REDUCE FEDERAL FUEL TAX
RATE WITH CORRESPONDING REDUCTION
IN BLOCK
GRANT.—
(1) IN GENERAL.—With respect to fiscal years
beginning after the satisfaction year and ending with
the termination of the election period, a core pro-
gram State may notify the Secretary (in the same
manner as the election described in subsection (b))
of an election to become a tier II core program State
and to have imposed on highway users in the State
the State’s core highway programs financing rate
with respect to the taxes transferred to the Highway
Account and the Future Highway Investment Sub
Account of the Future Investment Account which
are attributable to such highway users in lieu of the
tax rates otherwise established in the Internal Reve-
nue Code of 1986 for such fiscal years.
(2) DETERMINATION OF CORE HIGHWAY PRO-
GRAMS FINANCING RATE.—
(A) IN
GENERAL.—Upon notification by
the Secretary of an election by a State under
paragraph (1), the Secretary of the Treasury
shall determine for each subsequent fiscal year
such State’s core highway programs financing
rate, taking into account—
(i) the amount of taxes necessary to
fund that State’s core highway programs
payment for such fiscal year;
(ii) the uses of the taxes described in
paragraph (1) for purposes other than the
Federal-aid highway program for such fis-
cal year;
(iii) any adjustments necessary as a
result of a determination under this para-
graph for a preceding fiscal year; and
(iv) the rates with respect to such
taxes otherwise imposed under the Internal
Revenue Code of 1986 for such fiscal year.
(B) REPORT.—Not later than August 1,
the Secretary of the Treasury shall submit to
the Committee on Ways and Means of the
House of Representatives and the Committee
on Finance of the Senate, a report that de-
scribes the determination required under sub-
paragraph (A).
(C) 
CONGRESSIONAL
APPROVAL
RE-
QUIRED.—The Secretary of the Treasury shall
not implement the determination required to be
included in the report submitted under subpara-
graph (B) unless a joint resolution is enacted,
in accordance with subparagraph (D), approv-
ing such determination before the following Oc-
tober 1.
(D) CONGRESSIONAL CONSIDERATION.—
(i) TERMS
OF
THE
RESOLUTION.—
For purposes of subparagraph (C), the
term ‘‘joint resolution’’ means only a joint
resolution that is introduced before Octo-
ber 1 and—
(I) that does not have a pre-
amble;
(II) the matter after the resolv-
ing clause of which is as follows:
‘‘That Congress approves the deter-
mination of the Secretary of the
Treasury regarding the imposition of
the core highway programs rate for
the State of ll submitted on
ll’’, the blank spaces being filled in
with the appropriate State and date,
respectively; and
(III) the title of which is as fol-
lows: ‘‘Joint resolution approving the
determination of the Secretary of the
Treasury regarding the imposition of
a core highway programs rate.’’.
(ii) REFERRAL.—A resolution de-
scribed in clause (i) that is introduced—
(I) in the House of Representa-
tives, shall be referred to the Commit-
tee on Ways and Means; and
(II) in the Senate, shall be re-
ferred to the Committee on Finance.
(iii) DISCHARGE.—If a committee to
which a resolution described in clause (i) is
referred has not reported such resolution
by the end of the 30-day period beginning
on the date on which the Secretary of the
Treasury submits the report required
under subparagraph (B), such committee
shall be, at the end of such period, dis-
charged from further consideration of such
resolution, and such resolution shall be
placed on the appropriate calendar of the
House involved.
(iv) 
CONSIDERATION.—Within 
days after the date on which the committee
to which a resolution described in clause
(i) has reported, or has been discharged
from further consideration of such resolu-
tion, such resolution shall be considered in
the same manner as a resolution is consid-
ered under subsections (d), (e), and (f) of
section 2908 of the Defense Base Closure
and Realignment Act of 1990 (10 U.S.C.
2687 note).
(3) SATISFACTION
YEAR.—For purposes of
paragraph (1), the term ‘‘satisfaction year’’ means
the fiscal year during which all Federal non-core
highway program obligations of a core program
State payable from the Highway Account and the
Future Highway Investment Sub Account of the Fu-
ture Investment Account existing on the date of the
election by such State described in subsection (a)
are paid.
SEC. 4. FUNDING OF TRANSIT PROGRAMS IN MASS TRANSIT
BLOCK GRANT STATES.
(a) ELECTION TO BECOME A MASS TRANSIT BLOCK
GRANT STATE.—A core program State or any other State
may notify the Secretary (in the same manner as the elec-
tion described in section 3(b)) of an election to receive
with respect to each fiscal year during the State’s election
period a mass transit block grant, in lieu of any other pay-
ment from the Mass Transit Account and the Future
Transit Investment Sub Account of the Future Investment
Account. An election under this subsection shall not affect
a State’s continued eligibility for revenues provided
through the general fund of the Treasury for transit pro-
grams.
(b) DETERMINATION AND USE OF MASS TRANSIT
BLOCK GRANT.—
(1) DETERMINATION
OF
AMOUNT
OF
BLOCK
GRANT.—Subject to subsection (c), the amount of
the mass transit block grant for any tier I mass
transit State for any fiscal year is equal to the
amount of taxes transferred to the Mass Transit Ac-
count and the Future Transit Investment Sub Ac-
count of the Future Investment Account for such
fiscal year which is attributable to highway users in
that State as determined by the Secretary of the
Treasury.
(2) USE OF BLOCK GRANT.—The mass transit
block grant for any tier I mass transit State shall
be available, as provided by appropriation Acts, to
the State for any surface transportation purpose in
such State. Any project carrying out such a purpose
shall be exempt from any Federal regulation other
than with respect to health and safety standards and
practices.
(c) ELECTION TO ELIMINATE MASS TRANSIT FUEL
TAX RATE WITH CORRESPONDING ELIMINATION
OF
BLOCK GRANT.—
(1) IN GENERAL.—With respect to fiscal years
beginning after the satisfaction year and ending with
the termination of the election period, a State which
has made an election under subsection (a) may no-
tify the Secretary (in the same manner as such an
election) of an election to become a tier II mass
transit State and to eliminate the financing rate
with respect to the taxes transferred to the Mass
Transit Account and the Future Transit Investment
Sub Account of the Future Investment Account
which are attributable to the highway users of the
State in lieu of the mass transit block grant for such
fiscal years.
(2) ELIMINATION OF MASS TRANSIT FUEL TAX
RATE.—
(A) IN
GENERAL.—Upon notification by
the Secretary of an election by a State under
paragraph (1), the Secretary of the Treasury
shall, not later than August 1, submit to the
Committee on Ways and Means of the House of
Representatives and the Committee on Finance
of the Senate, a report that notifies the com-
mittees of such an election.
(B) 
CONGRESSIONAL
APPROVAL
RE-
QUIRED.—The Secretary of the Treasury shall
not implement the election included in the re-
port submitted under paragraph (1) unless a
joint resolution is enacted, in accordance with
paragraph (3), approving such election before
the following October 1.
(3) CONGRESSIONAL CONSIDERATION.—
(A) TERMS
OF
THE
RESOLUTION.—For
purposes of paragraph (2), the term ‘‘joint res-
olution’’ means only a joint resolution that is
introduced before October 1 and—
(i) that does not have a preamble;
(ii) the matter after the resolving
clause of which is as follows: ‘‘That Con-
gress approves the elimination of the mass
transit fuel tax rate for the State of ll
submitted on ll’’, the blank spaces
being filled in with the appropriate State
and date, respectively; and
(iii) the title of which is as follows:
‘‘Joint resolution approving the elimination
of the mass transit fuel tax rate.’’.
(B) CONSIDERATION.—A resolution de-
scribed in subparagraph (A) shall be considered
in the same manner as a resolution is consid-
(2) report to the Secretary, by January 1 fol-
lowing the end of the fiscal year, on the result of the
assessment.
(b) REPORT OF THE SECRETARY.—The Secretary
shall submit to the appropriate committees of Congress
an annual report and evaluation of the State surface
transportation programs funded under this Act based on
the State assessments and reports submitted under sub-
section (a). Such report shall include any conclusions and
recommendations that the Secretary considers appro-
priate.
SEC. 7. INTERSTATE SURFACE TRANSPORTATION COM-
PACTS.
(a) DEFINITIONS.—In this section, the following defi-
nitions apply:
(1) INFRASTRUCTURE BANK.—The term ‘‘infra-
structure bank’’ means a surface transportation in-
frastructure bank established under an interstate
compact under subsection (b)(5) and described in
subsection (d).
(2) PARTICIPATING STATES.—The term ‘‘par-
ticipating States’’ means the States that are parties
to an interstate compact entered into under sub-
section (b).
(3) SURFACE TRANSPORTATION PROJECT.—The
term ‘‘surface transportation project’’ means a sur-
face transportation project, program, or activity de-
scribed in subsection (b).
(b) CONSENT OF CONGRESS.—In order to increase
public investment, attract needed private investment, and
promote an intermodal transportation network, Congress
grants consent to States to enter into interstate compacts
to—
(1) promote the continuity, quality, and safety
of the Interstate System (as defined in section 101
of title 23, United States Code);
(2) develop programs to promote and fund sur-
face transportation safety initiatives and establish
surface transportation safety standards for the par-
ticipating States;
(3) conduct long-term planning for surface
transportation infrastructure in the participating
States;
(4) develop design and construction standards
for infrastructure described in paragraph (3) to be
used by the participating States; and
(5) establish surface transportation infrastruc-
ture banks to promote regional or other multistate
investment in infrastructure described in paragraph
(3).
(c) FINANCING.—An interstate compact established
by participating States under subsection (b) to carry out
a surface transportation project may provide that, in order
to carry out the compact, the participating States may—
(1) accept contributions from a unit of State or
local government or a person;
(2) use any Federal or State funds made avail-
able for that type of surface transportation project;
(3) on such terms and conditions as the partici-
pating States consider advisable—
(A) borrow money on a short-term basis
and issue notes for the borrowing; and
(B) issue bonds; and
(4) obtain financing by other means permitted
under Federal or State law, including surface trans-
portation infrastructure banks under subsection (d).
(d) INFRASTRUCTURE BANKS.—
(1) IN
GENERAL.—An infrastructure bank
may—
(A) make loans;
(B) under the joint or separate authority
of the participating States with respect to the
infrastructure bank, issue such debt as the in-
frastructure bank and the participating States
determine appropriate; and
(C) provide other assistance to public or
private entities constructing, or proposing to
construct or initiate, surface transportation
projects.
(2) FORMS OF ASSISTANCE.—
(A) IN GENERAL.—An infrastructure bank
may make a loan or provide other assistance
described in subparagraph (C) to a public or
private entity in an amount equal to all or part
of the construction cost, capital cost, or initi-
ation cost of a surface transportation project.
(B) SUBORDINATION
OF
ASSISTANCE.—
The amount of any loan or other assistance de-
scribed in subparagraph (C) that is received for
a surface transportation project under this sec-
tion may be subordinated to any other debt fi-
nancing for the surface transportation project.
(C) OTHER
ASSISTANCE.—Other assist-
ance referred to in subparagraphs (A) and (B)
includes any use of funds for the purpose of—
(i) credit enhancement;
(ii) a capital reserve for bond or debt
instrument financing;
(iii) bond or debt instrument financ-
ing issuance costs;
(iv) bond or debt issuance financing
insurance;
(v) subsidization of interest rates;
(vi) letters of credit;
(vii) any credit instrument;
(viii) bond or debt financing instru-
ment security; and
(ix) any other form of debt financing
that relates to the qualifying surface trans-
portation project.
(3) NO OBLIGATION OF UNITED STATES.—
(A) 
IN
GENERAL.—The 
establishment
under this section of an infrastructure bank
does not constitute a commitment, guarantee,
or obligation on the part of the United States
to any third party with respect to any security
or debt financing instrument issued by the
bank. No third party shall have any right
against the United States for payment solely by
reason of the establishment.
(B) STATEMENT
ON
INSTRUMENT.—Any
security or debt financing instrument issued by
an infrastructure bank shall expressly state that
the security or instrument does not constitute a
commitment, guarantee, or obligation of the
United States.
SEC. 8. FEDERAL-AID FACILITY PRIVATIZATION.
(a) DEFINITIONS.—In this section, the following defi-
nitions apply:
(1) EXECUTIVE AGENCY.—The term ‘‘Executive
agency’’ has the meaning provided in section 105 of
title 5, United States Code.
(2) PRIVATIZATION.—The term ‘‘privatization’’
means the disposition or transfer of a transportation
infrastructure asset, whether by sale, lease, or simi-
lar arrangement, from a State or local government
to a private party.
(3) STATE OR LOCAL GOVERNMENT.—The term
‘‘State or local government’’ means the government
of—
(A) any State;
(B) the District of Columbia;
(C) any commonwealth, territory, or pos-
session of the United States;
(D) any county, municipality, city, town,
township, local public authority, school district,
special district, intrastate district, regional or
interstate government entity, council of govern-
ments, or agency or instrumentality of a local
government; or
(E) any federally recognized Indian tribe.
(4) 
TRANSPORTATION
INFRASTRUCTURE
ASSET.—
(A) IN
GENERAL.—The term ‘‘transpor-
tation infrastructure asset’’ means any surface-
transportation-related asset financed in whole
or in part by the Federal Government, includ-
ing a road, tunnel, bridge, or mass-transit-relat-
ed or rail-related asset.
(B) EXCLUSION.—The term does not in-
clude any transportation-related asset on the
Interstate System (as defined in section 101 of
title 23, United States Code).
(b) PRIVATIZATION INITIATIVES
BY STATE
AND
LOCAL GOVERNMENTS.—The head of each Executive
agency shall—
(1) assist State and local governments in efforts
to privatize the transportation infrastructure assets
of the State and local governments; and
(2) subject to subsection (c), approve requests
from State and local governments to privatize trans-
portation infrastructure assets and waive or modify
any condition relating to the original Federal pro-
gram that funded the asset.
(c) CRITERIA.—The head of an Executive agency
shall approve a request described in subsection (b)(2) if—
(1) the State or local government demonstrates
that a market mechanism, legally enforceable agree-
ment, or regulatory mechanism will ensure that the
transportation infrastructure asset will continue to
be used for the general objectives of the original
Federal program that funded the asset (which shall
not be considered to include every condition required
for the recipient of Federal funds to have obtained
the original Federal funds), so long as needed for
those objectives; and
(2) the private party purchasing or leasing the
transportation infrastructure asset agrees to comply
with all applicable conditions of the original Federal
program.
(d) LACK
OF OBLIGATION TO REPAY FEDERAL
FUNDS.—A State or local government shall have no obli-
gation to repay to any agency of the Federal Government
any Federal funds received by the State or local govern-
ment in connection with a transportation infrastructure
asset that is privatized under this section.
(e) USE OF PROCEEDS.—
(1) IN GENERAL.—Subject to paragraph (2), a
State or local government may use proceeds from
the privatization of a transportation infrastructure
asset to the extent permitted under applicable condi-
tions of the original Federal program.
(2) RECOVERY OF CERTAIN COSTS.—Notwith-
standing any other provision of law, the State or
local government shall be permitted to recover from
the privatization of a transportation infrastructure
asset—
(A) the capital investment in the transpor-
tation infrastructure asset made by the State or
local government;
(B) an amount equal to the unreimbursed
operating expenses in the transportation infra-
structure asset paid by the State or local gov-
ernment; and
(C) a reasonable rate of return on the in-
vestment made under subparagraph (A) and ex-
penses paid under subparagraph (B).
SEC. 9. ESTABLISHMENT OF FUTURE INVESTMENT AC-
COUNT.
Section 9503 of the Internal Revenue Code of 1986
(relating to Highway Trust Fund), as amended by section
901(d) of the Taxpayer Relief Act of 1997, is amended
by adding at the end the following:
‘‘(f) ESTABLISHMENT OF FUTURE INVESTMENT AC-
COUNT.—
‘‘(1) CREATION OF ACCOUNT.—There is estab-
lished in the Highway Trust Fund a separate ac-
count to be known as the ‘Future Investment Ac-
count’, consisting of such amounts as may be trans-
ferred or credited to the Future Highway Invest-
ment Sub Account and the Future Transit Invest-
ment Sub Account of the Future Investment Ac-
count as provided in this subsection or section
9602(b).
‘‘(2) TRANSFERS TO FUTURE INVESTMENT AC-
COUNT.—
‘‘(A) IN GENERAL.—The Secretary of the
Treasury shall transfer to the Future Highway
Investment Sub Account the future highway in-
vestment portion and to the Future Transit In-
vestment Sub Account the future transit invest-
ment portion of the amounts appropriated to
the Highway Trust Fund under subsection (b)
which are attributable to taxes under sections
4041 and 4081 imposed after September 30,
1997.
‘‘(B) FUTURE
INVESTMENT
PORTIONS.—
For purposes of subparagraph (A)—
‘‘(i) the term ‘future highway invest-
ment portion’ means an amount deter-
mined at the rate of 3.44 cents for each
gallon with respect to which tax was im-
posed under section 4041 or 4081, and
‘‘(ii) the term ‘future transit invest-
ment portion’ means an amount deter-
mined at the rate of .86 cent for each gal-
lon with respect to which tax was so im-
posed.
‘‘(3) 
EXPENDITURES
FROM
ACCOUNT.—
Amounts in the Future Investment Account shall be
available, as provided by appropriation Acts, in a
Federal budget neutral manner, for making expendi-
tures after October 1, 1997—
‘‘(A) in the case of the Future Highway
Investment Sub Account, in accordance with
elections made under section 3(a) of the Sur-
face Transportation and Transit Empowerment
Act, and
‘‘(B) in the case of the Future Transit In-
vestment Sub Account, in accordance with elec-
tions made under section 4(a) of the Surface