I 
112TH CONGRESS 
1ST SESSION H. R. 3264 
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 
OCTOBER 26, 2011 
Mr. GRAVES of Georgia (for himself, Mr. WESTMORELAND, Mr. DUNCAN of 
South Carolina, Mr. GOWDY, Mr. MULVANEY, Mr. BROUN of Georgia, 
Mr. LANKFORD, Mr. CHAFFETZ, Mr. WILSON of South Carolina, Mr. 
WOODALL, Mr. SCOTT of South Carolina, and Mr. GOHMERT) 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 determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in 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 FOR CORE HIGHWAY PROGRAMS. 
(a) IN GENERAL.— 
(1) FUNDING.—For the purpose of carrying out 
title 23, United States Code, the following sums are 
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authorized to be appropriated out of the Highway 
Trust Fund: 
(A) 
INTERSTATE
MAINTENANCE
PRO-
GRAM.—For the Interstate maintenance pro-
gram under section 119 of title 23, United 
States Code, $5,200,000,000 for fiscal year 
2014, $5,280,000,000 for fiscal year 2015, 
$5,360,000,000 
for 
fiscal 
year 
2016, 
$5,440,000,000 for fiscal year 2017, and 
$5,520,000,000 for fiscal year 2018. 
(B) EMERGENCY RELIEF.—For emergency 
relief 
under 
section 
125 
of 
that 
title, 
$100,000,000 for each of fiscal years 2014 
through 2018. 
(C) INTERSTATE BRIDGE PROGRAM.—For 
the Interstate bridge program under section 
144 of that title, $2,527,000,000 for fiscal year 
2014, $2,597,000,000 for fiscal year 2015, 
$2,667,000,000 
for 
fiscal 
year 
2016, 
$2,737,000,000 for fiscal year 2017, and 
$2,807,000,000 for fiscal year 2018. 
(D) FEDERAL
LANDS
HIGHWAYS
PRO-
GRAM.— 
(i) INDIAN
RESERVATION
ROADS.— 
For Indian reservation roads under section 
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204 of that title, $470,000,000 for fiscal 
year 2014, $510,000,000 for fiscal year 
2015, $550,000,000 for fiscal year 2016, 
$590,000,000 for fiscal year 2017, and 
$630,000,000 for fiscal year 2018. 
(ii) PUBLIC LANDS HIGHWAYS.—For 
public lands highways under section 204 of 
that title, $300,000,000 for fiscal year 
2014, $310,000,000 for fiscal year 2015, 
$320,000,000 
for 
fiscal 
year 
2016, 
$330,000,000 for fiscal year 2017, and 
$340,000,000 for fiscal year 2018. 
(iii) PARKWAYS AND PARK ROADS.— 
For parkways and park roads under sec-
tion 204 of that title, $255,000,000 for fis-
cal year 2014, $270,000,000 for fiscal year 
2015, $285,000,000 for fiscal year 2016, 
$300,000,000 for fiscal year 2017, and 
$315,000,000 for fiscal year 2018. 
(iv) REFUGE
ROADS.—For refuge 
roads under section 204 of that title, 
$32,000,000 for each of fiscal years 2014 
through 2018. 
(E) HIGHWAY SAFETY PROGRAMS.— 
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(i) IN GENERAL.—For highway safety 
programs under section 402 of that title, 
$170,000,000 for each of fiscal years 2014 
through 2018. 
(ii) HIGHWAY SAFETY RESEARCH AND 
DEVELOPMENT.—For highway safety re-
search and development under section 403 
of that title, $35,000,000 for each of fiscal 
years 2014 through 2018. 
(F) 
SURFACE
TRANSPORTATION
RE-
SEARCH.—For cooperative agreements with 
nonprofit research organizations to carry out 
applied pavement research under section 502 of 
that title, $200,000,000 for each of fiscal years 
2014 through 2018. 
(G) ADMINISTRATIVE EXPENSES.—For ad-
ministrative expenses incurred in carrying out 
the programs referred to in subparagraphs (A) 
through (F), $92,890,000 for fiscal year 2014, 
$95,040,000 for fiscal year 2015, $97,190,000 
for fiscal year 2016, $99,340,000 for fiscal year 
2017, and $101,490,000 for fiscal year 2018. 
(2) TRANSFERABILITY OF FUNDS.—Section 104 
of title 23, United States Code, is amended by strik-
ing subsection (g) and inserting the following: 
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‘‘(g) TRANSFERABILITY OF FUNDS.— 
‘‘(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.—Section 103(a) of 
title 23, United States Code, is amended by striking 
‘‘systems are the Interstate System and the National 
Highway System’’ and inserting ‘‘system is the 
Interstate System’’. 
(4) INTERSTATE
MAINTENANCE
PROGRAM.— 
Section 104(b) of title 23, United States Code, is 
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amended by striking paragraph (4) and inserting the 
following: 
‘‘(4) 
INTERSTATE
MAINTENANCE
COMPO-
NENT.—For each of fiscal years 2014 through 2018, 
for the Interstate maintenance program under sec-
tion 119, 1 percent to the Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the 
Northern Mariana Islands and the remaining 99 
percent apportioned as follows: 
‘‘(A)(i) For each State with an average 
population density of 20 persons or fewer per 
square mile, and each State with a population 
of 1,500,000 persons or fewer and with a land 
area of 10,000 square miles or less, the greater 
of— 
‘‘(I) a percentage share of apportion-
ments equal to the percentage for the 
State described in clause (ii); or 
‘‘(II) a share determined under sub-
paragraph (B). 
‘‘(ii) The percentage referred to in clause 
(i)(I) for a State for a fiscal year shall be the 
percentage calculated for the State for the fiscal 
year under section 105(b) of title 23, United 
States Code. 
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‘‘(B) For each State not described in sub-
paragraph (A), a share of the apportionments 
remaining determined in accordance with the 
following formula: 
‘‘(i) 1⁄9 in the ratio that the total rural 
lane miles in each State bears to the total 
rural lane miles in all States with an aver-
age population density greater than 20 
persons per square mile and all States with 
a population of more than 1,500,000 per-
sons and with a land area of more than 
10,000 square miles. 
‘‘(ii) 1⁄9 in the ratio that the total 
rural vehicle miles traveled in each State 
bears to the total rural vehicle miles trav-
eled in all States described in clause (i). 
‘‘(iii) 2⁄9 in the ratio that the total 
urban lane miles in each State bears to the 
total urban lane miles in all States de-
scribed in clause (i). 
‘‘(iv) 2⁄9 in the ratio that the total 
urban vehicle miles traveled in each State 
bears to the total urban vehicle miles trav-
eled in all States described in clause (i). 
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‘‘(v) 3⁄9 in the ratio that the total die-
sel fuel used in each State bears to the 
total diesel fuel used in all States described 
in clause (i).’’. 
(5) INTERSTATE
BRIDGE
PROGRAM.—Section 
144 of title 23, United States Code, is amended— 
(A) in subsection (d)— 
(i) by inserting ‘‘on the Federal-aid 
system or described in subsection (c)(3)’’ 
after ‘‘highway bridge’’ each place it ap-
pears; and 
(ii) by inserting ‘‘on the Federal-aid 
system or described in subsection (c)(3)’’ 
after ‘‘highway bridges’’ each place it ap-
pears; 
(B) in the second sentence of subsection 
(e)— 
(i) in paragraph (1), by adding ‘‘and’’ 
at the end; 
(ii) in paragraph (2), by striking the 
comma at the end and inserting a period; 
and 
(iii) by striking paragraphs (3) and 
(4); 
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(C) in the first sentence of subsection (k), 
by inserting ‘‘on the Federal-aid system or de-
scribed in subsection (c)(3)’’ after ‘‘any 
bridge’’; 
(D) in subsection (l)(1), by inserting ‘‘on 
the Federal-aid system or described in sub-
section (c)(3)’’ after ‘‘construct any bridge’’; 
and 
(E) in the first sentence of subsection (m), 
by inserting ‘‘for each of fiscal years 1991 
through 2013,’’ after ‘‘of law,’’. 
(6) 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. 
(7) FEDERALIZATION AND DEFEDERALIZATION 
OF PROJECTS.—Notwithstanding any other provision 
of law, beginning on October 1, 2013— 
(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-
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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 
shall no longer be considered to be a Federal 
highway construction or improvement project. 
(8) REPORTING REQUIREMENTS.—No reporting 
requirement, other than a reporting requirement in 
effect as of the date of enactment of this Act, shall 
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apply on or after October 1, 2013, 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), by striking ‘‘Surface 
Transportation Extension Act of 2011’’ and in-
serting ‘‘Transportation Empowerment Act’’; 
(B) in paragraph (1), by striking ‘‘October 
1, 2011’’ and inserting ‘‘October 1, 2018’’; 
(C) in paragraphs (3)(A)(i), (4)(A), and 
(5), by striking ‘‘October 1, 2011’’ each place 
it appears and inserting ‘‘October 1, 2020’’; 
and 
(D) in paragraph (2), by striking ‘‘July 1, 
2012’’ and inserting ‘‘July 1, 2021’’. 
(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— 
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‘‘(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, 2013, and 
before October 1, 2014, 18.3 cents per gal-
lon, 
‘‘(ii) after September 30, 2014, and 
before October 1, 2015, 9.6 cents per gal-
lon, 
‘‘(iii) after September 30, 2015, and 
before October 1, 2016, 6.4 cents per gal-
lon, 
‘‘(iv) after September 30, 2016, and 
before October 1, 2017, 5.0 cents per gal-
lon, and 
‘‘(v) after September 30, 2017, 3.7 
cents per gallon, and 
‘‘(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— 
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‘‘(i) after September 30, 2013, and 
before October 1, 2014, 24.3 cents per gal-
lon, 
‘‘(ii) after September 30, 2014, and 
before October 1, 2015, 12.7 cents per gal-
lon, 
‘‘(iii) after September 30, 2015, and 
before October 1, 2016, 8.5 cents per gal-
lon, 
‘‘(iv) after September 30, 2016, and 
before October 1, 2017, 6.6 cents per gal-
lon, and 
‘‘(v) after September 30, 2017, 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 TRANSFERS TO MASS TRANSIT 
ACCOUNT.— 
(1) IN
GENERAL.—Section 9503(e)(2) of the 
Internal Revenue Code of 1986 is amended by in-
serting ‘‘, and before October 1, 2013’’ after ‘‘March 
31, 1983’’. 
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(2) 
TECHNICAL
AMENDMENT.—Section 
9503(e)(4) of such Code is amended by striking 
‘‘24-month’’ and inserting ‘‘48-month’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section take effect on October 1, 2013. 
SEC. 4. INFRASTRUCTURE SPECIAL ASSISTANCE FUND. 
(a) BALANCE OF CORE PROGRAMS FINANCING RATE 
DEPOSITED IN FUND.—Section 9503 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following: 
‘‘(h) ESTABLISHMENT
OF INFRASTRUCTURE SPE-
CIAL ASSISTANCE FUND.— 
‘‘(1) CREATION OF FUND.—There is established 
in the Highway Trust Fund a separate fund to be 
known as the ‘Infrastructure Special Assistance 
Fund’ consisting of such amounts as may be trans-
ferred or credited to the Infrastructure Special As-
sistance Fund as provided in this subsection or sec-
tion 9602(b). 
‘‘(2) TRANSFERS TO INFRASTRUCTURE SPECIAL 
ASSISTANCE FUND.—On the first day of each fiscal 
year, the Secretary, in consultation with the Sec-
retary of Transportation, shall determine the excess 
(if any) of— 
‘‘(A) the sum of— 
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‘‘(i) the amounts appropriated in such 
fiscal year to the Highway Trust Fund 
under subsection (b) which are attributable 
to the core programs financing rate for 
such year, plus 
‘‘(ii) the amounts appropriated in 
such fiscal year to the Highway Trust 
Fund under subsection (b) which are at-
tributable to taxes under sections 4051, 
4071, and 4481 for such year, over 
‘‘(B) the amount appropriated under sub-
section (c) for such fiscal year, 
and shall transfer such excess to the Infrastructure 
Special Assistance Fund. 
‘‘(3) EXPENDITURES
FROM
INFRASTRUCTURE 
SPECIAL ASSISTANCE FUND.— 
‘‘(A) TRANSITIONAL ASSISTANCE.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (iii), during fiscal years 
2014 through 2017, $1,000,000,000 in the 
Infrastructure Special Assistance Fund 
shall be available to States for transpor-
tation-related program expenditures. 
‘‘(ii) STATE
SHARE.—Each State is 
entitled to a share of the amount specified 
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in clause (i) determined in the following 
manner: 
‘‘(I) Multiply the percentage of 
the amounts appropriated in the latest 
fiscal year for which such data are 
available to the Highway Trust Fund 
under subsection (b) which is attrib-
utable to taxes paid by highway users 
in the State, by the amount specified 
in clause (i). If the result does not ex-
ceed $15,000,000, the State’s share 
equals $15,000,000. If the result ex-
ceeds $15,000,000, the State’s share 
is determined under subclause (II). 
‘‘(II) Multiply the percentage de-
termined under subclause (I), by the 
amount specified in clause (i) reduced 
by an amount equal to $15,000,000 
times the number of States the share 
of which is determined under sub-
clause (I). 
‘‘(iii) DISTRIBUTION
OF
REMAINING 
AMOUNT.—If after September 30, 2017, a 
portion of the amount specified in clause 
(i) remains, the Secretary, in consultation 
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