H. R. 3—822
‘‘(C) the refunded bond is redeemed not later than 
90 days after the date of the issuance of the refunding 
bond. 
For purposes of subparagraph (A), average maturity shall be 
determined in accordance with section 147(b)(2)(A).’’. 
(c) EXEMPTION FROM GENERAL STATE VOLUME CAPS.—Para-
graph (3) of section 146(g) of the Internal Revenue Code of 1986 
(relating to exception for certain bonds) is amended by striking 
‘‘or (14)’’ and all that follows through the end of the paragraph 
and inserting ‘‘(14), or (15) of section 142(a), and’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
apply to bonds issued after the date of the enactment of this 
Act. 
SEC. 11144. TREASURY STUDY OF HIGHWAY FUELS USED BY TRUCKS 
FOR NON-TRANSPORTATION PURPOSES. 
(a) STUDY.—The Secretary of the Treasury shall conduct a 
study regarding the use of highway motor fuel by trucks that 
is not used for the propulsion of the vehicle. As part of such 
study—
(1) in the case of vehicles carrying equipment that is unre-
lated to the transportation function of the vehicle—
(A) the Secretary of the Treasury, in consultation with 
the Secretary of Transportation, and with public notice 
and comment, shall determine the average annual amount 
of tax-paid fuel consumed per vehicle, by type of vehicle, 
used by the propulsion engine to provide the power to 
operate the equipment attached to the highway vehicle, 
and 
(B) the Secretary of the Treasury shall review the 
technical and administrative feasibility of exempting such 
nonpropulsive use of highway fuels from the highway motor 
fuels excise taxes, and, if such exemptions are technically 
and administratively feasible, shall propose options for 
implementing such exemptions for—
(i) mobile machinery (as defined in section 4053(8) 
of the Internal Revenue Code of 1986) whose non-
propulsive fuel use exceeds 50 percent, and 
(ii) any highway vehicle which consumes fuel for 
both transportation and non-transportation-related 
equipment, using a single motor, 
(2) in the case where non-transportation equipment is run 
by a separate motor—
(A) the Secretary of the Treasury shall determine the 
annual average amount of fuel exempted from tax in the 
use of such equipment by equipment type, and 
(B) the Secretary of the Treasury shall review issues 
of administration and compliance related to the present-
law exemption provided for such fuel use, and 
(3) the Secretary of the Treasury shall—
(A) estimate the amount of taxable fuel consumed by 
trucks and the emissions of various pollutants due to the 
long-term idling of diesel engines, and 
(B) determine the cost of reducing such long-term idling 
through the use of plug-ins at truck stops, auxiliary power 
units, or other technologies.
H. R. 3—823
(b) REPORT.—Not later than January 1, 2007, the Secretary 
of the Treasury shall report the findings of the study required 
under subsection (a) to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of Representa-
tives. 
SEC. 11145. DIESEL FUEL TAX EVASION REPORT. 
Not later than 360 days after the date of the enactment of 
this Act, the Commissioner of the Internal Revenue shall report 
to the Committees on Finance and Environment and Public Works 
of the Senate and the Committees on Ways and Means and 
Transportation and Infrastructure of the House of Representatives 
on—
(1) the availability of new technologies, including forensic 
or chemical molecular markers, that can be employed to 
enhance collections of the excise tax on diesel fuel and the 
plans of the Internal Revenue Service to employ such tech-
nologies, 
(2) the design of a test to place forensic or chemical molec-
ular markers in any excluded liquid (as defined in section 
48.4081–1(b) of title 26, Code of Federal Regulations), 
(3) the design of a test, in consultation with the Department 
of Defense, to place forensic or chemical molecular markers 
in all nonstrategic bulk fuel deliveries of diesel fuel to the 
military, and 
(4) the design of a test to place forensic or chemical molec-
ular markers in all diesel fuel bound for export utilizing the 
Gulf of Mexico. 
SEC. 11146. TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD 
REAL ESTATE INVESTMENT TRUST. 
(a) IN GENERAL.—If a State owns all of the outstanding stock 
of a corporation—
(1) which is a real estate investment trust on the date 
of the enactment of this Act, 
(2) which is a non-operating class III railroad, and 
(3) substantially all of the activities of which consist of 
the ownership, leasing, and operation by such corporation of 
facilities, equipment, and other property used by the corporation 
or other persons for railroad transportation and for economic 
development purposes for the benefit of the State and its citi-
zens, then, to the extent such activities are of a type which 
are an essential governmental function within the meaning 
of section 115 of the Internal Revenue Code of 1986, income 
derived from such activities by the corporation shall be treated 
as accruing to the State for purposes of section 115 of such 
Code. 
(b) GAIN OR LOSS NOT RECOGNIZED ON CONVERSION.—Notwith-
standing section 337(d) of the Internal Revenue Code of 1986—
(1) no gain or loss shall be recognized under section 336 
or 337 of such Code, and 
(2) no change in basis of the property of such corporation 
shall occur, because of any change of status of a corporation 
to a tax-exempt entity by reason of the application of subsection 
(a). 
(c) TAX-EXEMPT FINANCING.—
H. R. 3—824
(1) IN GENERAL.—Any obligation issued by a corporation 
described in subsection (a) at least 95 percent of the net pro-
ceeds (as defined in section 150(a) of the Internal Revenue 
Code of 1986) of which are to be used to provide for the 
acquisition, construction, or improvement of railroad transpor-
tation infrastructure (including railroad terminal facilities)—
(A) shall be treated as a State or local bond (within 
the meaning of section 103(c) of such Code), and 
(B) shall not be treated as a private activity bond 
(within the meaning of section 103(b)(1) of such Code) 
solely by reason of the ownership or use of such railroad 
transportation infrastructure by the corporation. 
(2) NO INFERENCE.—Except as provided in paragraph (1), 
nothing in this subsection shall be construed to affect the 
treatment of the private use of proceeds or property financed 
with obligations issued by the corporation for purposes of sec-
tion 103 of the Internal Revenue Code of 1986 and part IV 
of subchapter B of such Code. 
(d) DEFINITIONS.—For purposes of this section: 
(1) REAL ESTATE INVESTMENT TRUST.—The term ‘‘real estate 
investment trust’’ has the meaning given such term by section 
856(a) of the Internal Revenue Code of 1986. 
(2) NON-OPERATING CLASS III RAILROAD.—The term ‘‘non-
operating class III railroad’’ has the meaning given such term 
by part A of subtitle IV of title 49, United States Code (49 
U.S.C. 10101 et seq.), and the regulations thereunder. 
(3) STATE.—The term ‘‘State’’ includes—
(A) the District of Columbia and any possession of 
the United States, and 
(B) any authority, agency, or public corporation of a 
State. 
(e) APPLICABILITY.—
(1) IN GENERAL.—Except as provided in paragraph (2), this 
section shall apply on and after the date on which a State 
becomes the owner of all of the outstanding stock of a corpora-
tion described in subsection (a) through action of such corpora-
tion’s board of directors. 
(2) EXCEPTION.—This section shall not apply to any State 
which—
(A) becomes the owner of all of the voting stock of 
a corporation described in subsection (a) after December 
31, 2003, or 
(B) becomes the owner of all of the outstanding stock 
of a corporation described in subsection (a) after December 
31, 2006. 
SEC. 11147. LIMITATION ON TRANSFERS TO THE LEAKING UNDER-
GROUND STORAGE TANK TRUST FUND. 
(a) IN GENERAL.—Section 9508 is amended by adding at the 
end the following new subsection: 
‘‘(e) LIMITATION
ON TRANSFERS
TO LEAKING UNDERGROUND 
STORAGE TANK TRUST FUND.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
no amount may be appropriated to the Leaking Underground 
Storage Tank Trust Fund on and after the date of any expendi-
ture from the Leaking Underground Storage Tank Trust Fund 
which is not permitted by this section. The determination of
H. R. 3—825
whether an expenditure is so permitted shall be made without 
regard to—
‘‘(A) any provision of law which is not contained or 
referenced in this title or in a revenue Act, and 
‘‘(B) whether such provision of law is a subsequently 
enacted provision or directly or indirectly seeks to waive 
the application of this paragraph. 
‘‘(2) EXCEPTION
FOR
PRIOR
OBLIGATIONS.—Paragraph (1) 
shall not apply to any expenditure to liquidate any contract 
entered into (or for any amount otherwise obligated) before 
October 1, 2011, in accordance with the provisions of this 
section.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect on the date of the enactment of this Act. 
Subtitle D—Highway-Related Technical 
Corrections 
SEC. 11151. HIGHWAY-RELATED TECHNICAL CORRECTIONS. 
(a) AMENDMENTS RELATED TO SECTION 301 OF THE AMERICAN 
JOBS CREATION ACT OF 2004.—Section 6427 is amended—
(1) by striking subsection (f), and 
(2) by striking subsection (o) and redesignating subsection 
(p) as subsection (o). 
(b) AMENDMENTS RELATED TO SECTION 853 OF THE AMERICAN 
JOBS CREATION ACT OF 2004.—
(1) Subparagraph (C) of section 4081(a)(2) is amended by 
striking ‘‘for use in commercial aviation’’ and inserting ‘‘for 
use in commercial aviation by a person registered for such 
use under section 4101’’. 
(2) So much of paragraph (2) of section 4081(d) as precedes 
subparagraph (A) is amended to read as follows: 
‘‘(2) AVIATION FUELS.—The rates of tax specified in clauses 
(ii) and (iv) of subsection (a)(2)(A) shall be 4.3 cents per
gallon—’’. 
(3) Section 6421(f)(2) is amended—
(A) by striking ‘‘noncommercial aviation (as defined 
in section 4041(c)(2))’’ in subparagraph (A) and inserting 
‘‘aviation which is not commercial aviation (as defined in 
section 4083(b))’’, and 
(B) by striking ‘‘aviation which is not noncommercial 
aviation’’ in subparagraph (B) and inserting ‘‘commercial 
aviation’’. 
(c) AMENDMENT RELATED TO SECTION 9005 OF THE TRANSPOR-
TATION EQUITY ACT FOR THE 21ST CENTURY.—The last sentence 
of paragraph (2) of section 9504(b) is amended by striking ‘‘subpara-
graph (B)’’, and inserting ‘‘subparagraph (C)’’. 
(d) AMENDMENT RELATED TO SECTION 1306 OF THE ENERGY 
POLICY ACT OF 2005.—
(1) Subsection (b) of section 1306 of the Energy Tax Incen-
tives Act of 2005 is amended by striking ‘‘Transportation Equity 
Act: A Legacy for Users’’ and inserting ‘‘Safe, Accountable, 
Flexible, Efficient Transportation Equity Act: A Legacy for 
Users’’. 
(2) If the Energy Policy Act of 2005 is enacted before 
the date of the enactment of this Act, for purposes of executing