H. R. 2488—172 
regard to section 1504(b)) shall be treated as one distributee 
corporation.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subparagraph (A) of section 355(b)(2) is amended to 
read as follows: 
‘‘(A) it is engaged in the active conduct of a trade 
or business,’’. 
(2) Section 355(b)(2) is amended by striking the last sen-
tence. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by this section 
shall apply to distributions after the date of the enactment 
of this Act. 
(2) TRANSITION RULE.—The amendments made by this sec-
tion shall not apply to any distribution pursuant to a trans-
action which is— 
(A) made pursuant to an agreement which was binding 
on such date and at all times thereafter, 
(B) described in a ruling request submitted to the 
Internal Revenue Service on or before such date, or 
(C) described on or before such date in a public 
announcement or in a filing with the Securities and 
Exchange Commission. 
(3) ELECTION TO HAVE AMENDMENTS APPLY.—Paragraph (2) 
shall not apply if the distributing corporation elects not to 
have such paragraph apply to distributions of such corporation. 
Any such election, once made, shall be irrevocable. 
SEC. 1317. EXPANSION OF EXEMPTION FROM PERSONAL HOLDING 
COMPANY TAX FOR LENDING OR FINANCE COMPANIES. 
(a) IN GENERAL.—Paragraph (6) of section 542(c) (defining per-
sonal holding company) is amended— 
(1) by striking ‘‘rents,’’ in subparagraph (B), and 
(2) by adding ‘‘and’’ at the end of subparagraph (B), 
(3) by striking subparagraph (C), and 
(4) by redesignating subparagraph (D) as subparagraph 
(C). 
(b) EXCEPTION FOR LENDING OR FINANCE COMPANIES DETER-
MINED ON AFFILIATED GROUP BASIS.—Subsection (d) of section 542 
is amended by striking paragraphs (1) and (2) and inserting the 
following new paragraphs: 
‘‘(1) LENDING OR FINANCE BUSINESS DEFINED.— For pur-
poses of subsection (c)(6), the term ‘lending or finance business’ 
means a business of— 
‘‘(A) making loans, 
‘‘(B) purchasing or discounting accounts receivable, 
notes, or installment obligations, 
‘‘(C) engaging in leasing (including entering into leases 
and purchasing, servicing, and disposing of leases and 
leased assets), 
‘‘(D) rendering services or making facilities available 
in the ordinary course of a lending or finance business, 
‘‘(E) rendering services or making facilities available 
in connection with activities described in subparagraphs 
(A), (B), and (C) carried on by the corporation rendering 
services or making facilities available, or 
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H. R. 2488—173 
‘‘(F) rendering services or making facilities available 
to another corporation which is engaged in the lending 
or finance business (within the meaning of this paragraph), 
if such services or facilities are related to the lending 
or finance business (within such meaning) of such other 
corporation and such other corporation and the corporation 
rendering services or making facilities available are mem-
bers of the same affiliated group (as defined in section 
1504). 
‘‘(2) EXCEPTION
DETERMINED
ON
AN
AFFILIATED
GROUP 
BASIS.—In the case of a lending or finance company which 
is a member of an affiliated group (as defined in section 1504), 
such company shall be treated as meeting the requirements 
of subsection (c)(6) if such group (determined by taking into 
account only members of such group which are engaged in 
a lending or finance business) meets such requirements.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years ending after December 31, 1999. 
SEC. 1318. EXTENSION OF EXPENSING OF ENVIRONMENTAL REMEDI-
ATION COSTS. 
(a) EXPANSION
OF QUALIFIED CONTAMINATED SITE.—Section 
198(c) is amended to read as follows: 
‘‘(c) QUALIFIED CONTAMINATED SITE.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘qualified contaminated site’ 
means any area— 
‘‘(A) which is held by the taxpayer for use in a trade 
or business or for the production of income, or which is 
property described in section 1221(1) in the hands of the 
taxpayer, and 
‘‘(B) at or on which there has been a release (or threat 
of release) or disposal of any hazardous substance. 
‘‘(2) NATIONAL PRIORITIES LISTED SITES NOT INCLUDED.— 
Such term shall not include any site which is on, or proposed 
for, the national priorities list under section 105(a)(8)(B) of 
the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (as in effect on the date of the 
enactment of this section). 
‘‘(3) TAXPAYER
MUST
RECEIVE
STATEMENT
FROM
STATE 
ENVIRONMENTAL AGENCY.—An area shall be treated as a quali-
fied contaminated site with respect to expenditures paid or 
incurred during any taxable year only if the taxpayer receives 
a statement from the appropriate agency of the State in which 
such area is located that such area meets the requirement 
of paragraph (1)(B). 
‘‘(4) APPROPRIATE STATE AGENCY.—For purposes of para-
graph (2), the chief executive officer of each State may, in 
consultation with the Administrator of the Environmental 
Protection Agency, designate the appropriate State environ-
mental agency within 60 days of the date of the enactment 
of this section. If the chief executive officer of a State has 
not designated an appropriate State environmental agency 
within such 60-day period, the appropriate environmental 
agency for such State shall be designated by the Administrator 
of the Environmental Protection Agency.’’. 
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H. R. 2488—174 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to expenditures paid or incurred after December 31, 
1999. 
Subtitle C—Provisions Relating to Excise 
Taxes 
SEC. 1321. CONSOLIDATION OF HAZARDOUS SUBSTANCE SUPERFUND 
AND LEAKING UNDERGROUND STORAGE TANK TRUST 
FUND. 
(a) IN GENERAL.—Subchapter A of chapter 98 (relating to trust 
fund code) is amended by striking sections 9507 and 9508 and 
inserting the following new section: 
‘‘SEC. 9507. ENVIRONMENTAL REMEDIATION TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is established in the 
Treasury of the United States a trust fund to be known as the 
‘Environmental Remediation Trust Fund’ consisting of such 
amounts as may be— 
‘‘(1) appropriated to the Environmental Remediation Trust 
Fund as provided in this section, 
‘‘(2) appropriated to the Environmental Remediation Trust 
Fund pursuant to section 517(b) of the Superfund Revenue 
Act of 1986, or 
‘‘(3) credited to the Environmental Remediation Trust Fund 
as provided in section 9602(b). 
‘‘(b) TRANSFERS
TO
ENVIRONMENTAL
REMEDIATION
TRUST 
FUND.— 
‘‘(1) IN GENERAL.—There are hereby appropriated to the 
Environmental Remediation Trust Fund amounts equivalent 
to— 
‘‘(A) the taxes received in the Treasury under— 
‘‘(i) section 59A, 4611, 4661, or 4671 (relating to 
environmental taxes), 
‘‘(ii) section 4041(d) (relating to additional taxes 
on motor fuels), 
‘‘(iii) section 4081 (relating to tax on gasoline, 
diesel fuel, and kerosene) to the extent attributable 
to 
the 
Environmental 
Remediation 
Trust 
Fund 
financing rate under such section, 
‘‘(iv) section 4091 (relating to tax on aviation fuel) 
to the extent attributable to the Environmental 
Remediation Trust Fund financing rate under such 
section, and 
‘‘(v) section 4042 (relating to tax on fuel used in 
commercial transportation on inland waterways) to the 
extent attributable to the Environmental Remediation 
Trust Fund financing rate under such section, 
‘‘(B) amounts recovered on behalf of the Environmental 
Remediation 
Trust 
Fund 
under 
the 
Comprehensive 
Environmental Response, Compensation, and Liability Act 
of 1980 (hereinafter in this section referred to as 
‘CERCLA’), 
‘‘(C) all moneys recovered or collected under section 
311(b)(6)(B) of the Clean Water Act, 
‘‘(D) penalties assessed under title I of CERCLA, 
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H. R. 2488—175 
‘‘(E) punitive damages under section 107(c)(3) of 
CERCLA, and 
‘‘(F) amounts received in the Treasury and collected 
under section 9003(h)(6) of the Solid Waste Disposal Act. 
‘‘(2) LIMITATION ON TRANSFERS.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), no amount may be appropriated or credited to the 
Environmental Remediation Trust Fund on and after the 
date of any expenditure from any such Trust Fund which 
is not permitted by this section. The determination of 
whether an expenditure is so permitted shall be made 
without regard to— 
‘‘(i) any provision of law which is not contained 
or referenced in this title or in a revenue Act, and 
‘‘(ii) whether such provision of law is a subse-
quently enacted provision or directly or indirectly seeks 
to waive the application of this paragraph. 
‘‘(B) EXCEPTION
FOR
PRIOR
OBLIGATIONS.—Subpara-
graph (A) shall not apply to any expenditure to liquidate 
any contract entered into (or for any amount otherwise 
obligated) in accordance with the provisions of this sec-
tion.’’. 
‘‘(c) EXPENDITURES FROM ENVIRONMENTAL REMEDIATION TRUST 
FUND.— 
‘‘(1) IN GENERAL.—Amounts in the Environmental Remedi-
ation Trust Fund shall be available, as provided in appropria-
tion Acts, only for purposes of making expenditures— 
‘‘(A) to carry out the purposes of— 
‘‘(i) paragraphs (1), (2), (5), and (6) of section 111(a) 
of CERCLA as in effect on July 12, 1999, 
‘‘(ii) section 111(c) of CERCLA (as so in effect), 
other than paragraphs (1) and (2) thereof, and 
‘‘(iii) section 111(m) of CERCLA (as so in effect), 
or 
‘‘(B) to carry out section 9003(h) of the Solid Waste 
Disposal Act as in effect on July 12, 1999. 
‘‘(2) EXCEPTION
FOR
CERTAIN
TRANSFERS, ETC., OF
HAZ-
ARDOUS
SUBSTANCES.—No amount in the Environmental 
Remediation Trust Fund or derived from the Environmental 
Remediation Trust Fund shall be available or used for the 
transfer or disposal of hazardous waste carried out pursuant 
to a cooperative agreement between the Administrator of the 
Environmental Protection Agency and a State if the following 
conditions apply— 
‘‘(A) the transfer or disposal, if made on December 
13, 1985, would not comply with a State or local require-
ment, 
‘‘(B) the transfer is to a facility for which a final permit 
under section 3005(a) of the Solid Waste Disposal Act was 
issued after January 1, 1983, and before November 1, 1984, 
and 
‘‘(C) the transfer is from a facility identified as the 
McColl Site in Fullerton, California. 
‘‘(3) TRANSFERS
FROM
TRUST
FUND
FOR
CERTAIN
REPAY-
MENTS AND CREDITS.— 
‘‘(A) IN GENERAL.—The Secretary shall pay from time 
to time from the Environmental Remediation Trust Fund 
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