I 
113TH CONGRESS 
1ST SESSION H. R. 3486 
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 14, 2013 
Mr. GRAVES of Georgia (for himself, Mr. DUNCAN of South Carolina, Mr. 
WOODALL, Mr. DESANTIS, Mr. HUIZENGA of Michigan, Mr. WEBER of 
Texas, Mr. AMASH, Mr. ROKITA, Mr. WESTMORELAND, Mr. STUTZMAN, 
Mr. GOHMERT, Mr. FRANKS of Arizona, Mr. JONES, Mr. HENSARLING, 
Mr. MULVANEY, Mr. SCHWEIKERT, Mr. LONG, Mr. BROUN of Georgia, 
Mr. GINGREY of Georgia, Mr. BRADY of Texas, and Mr. HUELSKAMP) 
introduced the following bill; which was referred to the Committee on 
Transportation and Infrastructure, and in addition to the Committees on 
Ways and Means and the Budget, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration 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 ‘‘Transportation Em-
powerment Act’’. 
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SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds that— 
(1) the objective of the Federal highway pro-
gram has been to facilitate the construction of a 
modern freeway system that promotes efficient inter-
state commerce by connecting all States; 
(2) that objective has been attained, and the 
Interstate System connecting all States is near com-
pletion; 
(3) each State has the responsibility of pro-
viding an efficient transportation network for the 
residents of the State; 
(4) each State has the means to build and oper-
ate a network of transportation systems, including 
highways, that best serves the needs of the State; 
(5) each State is best capable of determining 
the needs of the State and acting on those needs; 
(6) the Federal role in highway transportation 
has, over time, usurped the role of the States by tax-
ing motor fuels used in the States and then distrib-
uting the proceeds to the States based on the Fed-
eral Government’s perceptions of what is best for the 
States; 
(7) the Federal Government has used the Fed-
eral motor fuels tax revenues to force all States to 
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take actions that are not necessarily appropriate for 
individual States; 
(8) the Federal distribution, review, and en-
forcement process wastes billions of dollars on un-
productive activities; 
(9) Federal mandates that apply uniformly to 
all 50 States, regardless of the different cir-
cumstances of the States, cause the States to waste 
billions of hard-earned tax dollars on projects, pro-
grams, and activities that the States would not oth-
erwise undertake; and 
(10) Congress has expressed a strong interest 
in reducing the role of the Federal Government by 
allowing each State to manage its own affairs. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to return to the individual States maximum 
discretionary authority and fiscal responsibility for 
all elements of the national surface transportation 
systems that are not within the direct purview of the 
Federal Government; 
(2) to preserve Federal responsibility for the 
Dwight D. Eisenhower National System of Inter-
state and Defense Highways; 
(3) to preserve the responsibility of the Depart-
ment of Transportation for— 
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(A) design, construction, and preservation 
of transportation facilities on Federal public 
land; 
(B) national programs of transportation 
research and development and transportation 
safety; and 
(C) emergency assistance to the States in 
response to natural disasters; 
(4) to eliminate to the maximum extent prac-
ticable Federal obstacles to the ability of each State 
to apply innovative solutions to the financing, de-
sign, construction, operation, and preservation of 
Federal and State transportation facilities; and 
(5) with respect to transportation activities car-
ried out by States, local governments, and the pri-
vate sector, to encourage— 
(A) competition among States, local gov-
ernments, and the private sector; and 
(B) innovation, energy efficiency, private 
sector participation, and productivity. 
SEC. 3. FUNDING LIMITATION. 
Notwithstanding any other provision of law, if the 
Secretary of Transportation determines for any of fiscal 
years 2015 through 2019 that the aggregate amount re-
quired to carry out transportation programs and projects 
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under this Act and amendments made by this Act exceeds 
the estimated aggregate amount in the Highway Trust 
Fund available for those programs and projects for the 
fiscal year, each amount made available for such a pro-
gram or project shall be reduced by the pro rata percent-
age required to reduce the aggregate amount required to 
carry out those programs and projects to an amount equal 
to that available for those programs and projects in the 
Highway Trust Fund for the fiscal year. 
SEC. 4. FUNDING FOR CORE HIGHWAY PROGRAMS. 
(a) IN GENERAL.— 
(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
The following sums are authorized to be appro-
priated out of the Highway Trust Fund (other than 
the Mass Transit Account): 
(A) FEDERAL-AID HIGHWAY PROGRAM.— 
For the national highway performance program 
under section 119 of title 23, United States 
Code, the surface transportation program under 
section 133 of that title, the highway safety im-
provement program under section 148 of that 
title, the congestion mitigation and air quality 
improvement program under section 149 of that 
title, and to carry out section 134 of that 
title— 
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(i) $37,592,576,000 for fiscal year 
2015; 
(ii) $19,720,696,000 for fiscal year 
2016; 
(iii) $13,147,130,000 for fiscal year 
2017; 
(iv) $10,271,196,000 for fiscal year 
2018; and 
(v) $7,600,685,000 for fiscal year 
2019. 
(B) EMERGENCY RELIEF.—For emergency 
relief 
under 
section 
125 
of 
that 
title, 
$100,000,000 for each of fiscal years 2015 
through 2019. 
(C) FEDERAL LANDS PROGRAMS.— 
(i) 
FEDERAL
LANDS
TRANSPOR-
TATION PROGRAM.—For the Federal lands 
transportation program under section 203 
of that title, $300,000,000 for each of fis-
cal years 2015 through 2019, of which 
$240,000,000 of the amount made avail-
able for each fiscal year shall be the 
amount for the National Park Service and 
$30,000,000 of the amount made available 
for each fiscal year shall be the amount for 
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the United States Fish and Wildlife Serv-
ice. 
(ii) FEDERAL
LANDS
ACCESS
PRO-
GRAM.—For the Federal lands access pro-
gram under section 204 of that title, 
$250,000,000 for each of fiscal years 2015 
through 2019. 
(D) ADMINISTRATIVE EXPENSES.—Section 
104(a)(1) of title 23, United States Code, is 
amended to read as follows: 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated from the Highway Trust Fund (other 
than the Mass Transit Account) to be made avail-
able to the Secretary for administrative expenses of 
the Federal Highway Administration— 
‘‘(A) $437,600,000 for fiscal year 2015; 
‘‘(B) $229,565,000 for fiscal year 2016; 
‘‘(C) $153,043,000 for fiscal year 2017; 
‘‘(D) $119,565,000 for fiscal year 2018; 
and 
‘‘(E) $88,478,000 for fiscal year 2019.’’. 
(2) TRANSFERABILITY OF FUNDS.—Section 104 
of title 23, United States Code, is amended by strik-
ing subsection (f) and inserting the following: 
‘‘(f) TRANSFERABILITY OF FUNDS.— 
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‘‘(1) IN GENERAL.—To the extent that a State 
determines that funds made available under this title 
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 (including mass transit 
and rail) purpose in the State. 
‘‘(2) ENFORCEMENT.—If the Secretary deter-
mines that a State has transferred funds under 
paragraph (1) to a purpose that is not a surface 
transportation purpose as described in paragraph 
(1), the amount of the improperly transferred funds 
shall be deducted from any amount the State would 
otherwise receive from the Highway Trust Fund for 
the fiscal year that begins after the date of the de-
termination.’’. 
(3) FEDERAL-AID SYSTEM.— 
(A) IN GENERAL.—Section 103(a) of title 
23, United States Code, is amended by striking 
‘‘the National Highway System, which in-
cludes’’. 
(B) CONFORMING AMENDMENTS.—Chapter 
1 of title 23, United States Code, is amended— 
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(i) in section 103 by striking the sec-
tion designation and heading and inserting 
the following: 
‘‘§ 103. Federal-aid system’’; 
and 
(ii) in the analysis by striking the 
item relating to section 103 and inserting 
the following: 
‘‘103. Federal-aid system.’’. 
(4) CALCULATION OF STATE AMOUNTS.—Sec-
tion 104(c) of title 23, United States Code, is 
amended— 
(A) in paragraph (2)— 
(i) in the paragraph heading by strik-
ing ‘‘FOR FISCAL YEAR 2014’’ and inserting 
‘‘THEREAFTER’’; and 
(ii) in subparagraph (A) by striking 
‘‘fiscal year 2014’’ and inserting ‘‘a fiscal 
year’’. 
(5) NATIONAL
BRIDGE
AND
TUNNEL
INVEN-
TORY AND INSPECTION STANDARDS.— 
(A) IN GENERAL.—Section 144 of title 23, 
United States Code, is amended— 
(i) in subsection (e)(1) by inserting 
‘‘on the Federal-aid system’’ after ‘‘any 
bridge’’; and 
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(ii) in subsection (f)(1) by inserting 
‘‘on the Federal-aid system’’ after ‘‘con-
struct any bridge’’. 
(B) REPEAL OF HISTORIC BRIDGES PROVI-
SIONS.—Section 144(g) of title 23, United 
States Code, is repealed. 
(6) REPEAL
OF
TRANSPORTATION
ALTER-
NATIVES
PROGRAM.—The following provisions are 
repealed: 
(A) Section 213 of title 23, United States 
Code. 
(B) The item relating to section 213 in the 
analysis for chapter 1 of title 23, United States 
Code. 
(7) NATIONAL
DEFENSE
HIGHWAYS.—Section 
311 of title 23, United States Code, is amended— 
(A) in the first sentence, by striking 
‘‘under subsection (a) of section 104 of this 
title’’ and inserting ‘‘to carry out this section’’; 
and 
(B) by striking the second sentence. 
(8) FEDERALIZATION AND DEFEDERALIZATION 
OF PROJECTS.—Notwithstanding any other provision 
of law, beginning on October 1, 2014— 
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(A) a highway construction or improve-
ment project shall not be considered to be a 
Federal highway construction or improvement 
project unless and until a State expends Fed-
eral funds for the construction portion of the 
project; 
(B) a highway construction or improve-
ment project shall not be considered to be a 
Federal highway construction or improvement 
project solely by reason of the expenditure of 
Federal funds by a State before the construc-
tion phase of the project to pay expenses relat-
ing to the project, including for any environ-
mental document or design work required for 
the project; and 
(C)(i) a State may, after having used Fed-
eral funds to pay all or a portion of the costs 
of a highway construction or improvement 
project, reimburse the Federal Government in 
an amount equal to the amount of Federal 
funds so expended; and 
(ii) after completion of a reimbursement 
described in clause (i), a highway construction 
or improvement project described in that clause 
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shall no longer be considered to be a Federal 
highway construction or improvement project. 
(9) REPORTING REQUIREMENTS.—No reporting 
requirement, other than a reporting requirement in 
effect as of the date of enactment of this Act, shall 
apply on or after October 1, 2014, to the use of 
Federal funds for highway projects by a public-pri-
vate partnership. 
(b) 
EXPENDITURES
FROM
HIGHWAY
TRUST 
FUND.— 
(1) EXPENDITURES
FOR
CORE
PROGRAMS.— 
Section 9503(c) of the Internal Revenue Code of 
1986 is amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘October 1, 2014’’ and 
inserting ‘‘October 1, 2020’’; and 
(ii) by striking ‘‘MAP–21’’ and insert-
ing ‘‘Transportation Empowerment Act’’; 
(B) in paragraphs (3)(A)(i), (4)(A), and 
(5), by striking ‘‘October 1, 2016’’ each place 
it appears and inserting ‘‘October 1, 2022’’; 
and 
(C) in paragraph (2), by striking ‘‘July 1, 
2017’’ and inserting ‘‘July 1, 2023’’. 
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(2) AMOUNTS AVAILABLE FOR CORE PROGRAM 
EXPENDITURES.—Section 9503 of such Code is 
amended by adding at the end the following: 
‘‘(g) CORE PROGRAMS FINANCING RATE.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2)— 
‘‘(A) in the case of gasoline and special 
motor fuels the tax rate of which is the rate 
specified in section 4081(a)(2)(A)(i), the core 
programs financing rate is— 
‘‘(i) after September 30, 2014, and 
before October 1, 2015, 18.3 cents per gal-
lon, 
‘‘(ii) after September 30, 2015, and 
before October 1, 2016, 9.6 cents per gal-
lon, 
‘‘(iii) after September 30, 2016, and 
before October 1, 2017, 6.4 cents per gal-
lon, 
‘‘(iv) after September 30, 2017, and 
before October 1, 2018, 5.0 cents per gal-
lon, and 
‘‘(v) after September 30, 2018, 3.7 
cents per gallon, and 
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‘‘(B) in the case of kerosene, diesel fuel, 
and special motor fuels the tax rate of which is 
the rate specified in section 4081(a)(2)(A)(iii), 
the core programs financing rate is— 
‘‘(i) after September 30, 2014, and 
before October 1, 2015, 24.3 cents per gal-
lon, 
‘‘(ii) after September 30, 2015, and 
before October 1, 2016, 12.7 cents per gal-
lon, 
‘‘(iii) after September 30, 2016, and 
before October 1, 2017, 8.5 cents per gal-
lon, 
‘‘(iv) after September 30, 2017, and 
before October 1, 2018, 6.6 cents per gal-
lon, and 
‘‘(v) after September 30, 2018, 5.0 
cents per gallon. 
‘‘(2) APPLICATION OF RATE.—In the case of 
fuels used as described in paragraph (3)(C), (4)(B), 
and (5) of subsection (c), the core programs financ-
ing rate is zero.’’. 
(c) TERMINATION OF MASS TRANSIT ACCOUNT.— 
Section 9503(e)(2) of the Internal Revenue Code of 1986 
is amended— 
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(1) by inserting ‘‘and before October 1, 2014’’ 
after ‘‘March 31, 1983’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(6) TRANSFER
TO
HIGHWAY
ACCOUNT.—On 
October 1, 2014, the Secretary shall transfer all 
amounts in the Mass Transit Account to the High-
way Account.’’. 
(d) EFFECTIVE DATE.—The amendments and re-
peals made by this section take effect on October 1, 2014. 
SEC. 5. FUNDING FOR HIGHWAY RESEARCH AND DEVELOP-
MENT PROGRAM. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated out of the Highway Trust 
Fund (other than the Mass Transit Account) to carry out 
section 503(b) of title 23, United States Code, 
$115,000,000 for each of fiscal years 2015 through 2019. 
(b) APPLICABILITY OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated by sub-
section (a) shall— 
(1) be available for obligation in the same man-
ner as if those funds were apportioned under chap-
ter 1 of title 23, United States Code, except that the 
Federal share of the cost of a project or activity car-
ried out using those funds shall be 80 percent, un-
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less otherwise expressly provided by this Act (includ-
ing the amendments by this Act) or otherwise deter-
mined by the Secretary; and 
(2) remain available until expended and not be 
transferable. 
SEC. 6. 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 2016, 2017, 2018, and 
2019, 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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