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(i) IN
GENERAL.—Upon notification
by the Secretary of the Interior that a Con-
servation Trust Fund transfer has not been
made by the Commonwealth of Puerto Rico,
the Secretary of the Treasury shall, except
as provided in clause (ii), deduct and with-
hold from the next cover overpayment to be
made to the treasury of Puerto Rico under
section 7652(e) of such Code an amount
equal to the appropriate Conservation Trust
Fund transfer and interest thereon at the
underpayment rate established under sec-
tion 6621 of such Code as of the due date
of such transfer. The Secretary of the Treas-
ury shall transfer such amount deducted
and withheld, and the interest thereon, di-
rectly to the Puerto Rico Conservation
Trust Fund.
(ii) GOOD-CAUSE
EXCEPTION.—If the
Secretary of the Interior finds, after con-
sultation with the Governor of Puerto Rico,
that the failure by the Commonwealth of
Puerto Rico to make a required transfer
was for good cause, and notifies the Sec-
retary of the Treasury of the finding of such
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good cause before the due date of the next
cover overpayment following the notification
of nontransfer, then the Secretary of the
Treasury shall not deduct the amount of
such nontransfer from any cover overpay-
ment.
(3) PUERTO RICO CONSERVATION TRUST FUND.—
For purposes of this subsection, the term ‘‘Puerto Rico
Conservation Trust Fund’’ means the fund established
pursuant to a Memorandum of Understanding be-
tween the United States Department of the Interior
and the Commonwealth of Puerto Rico, dated Decem-
ber 24, 1968.
SEC. 5233. INCOME TAX CREDIT FOR DISTILLED SPIRITS
WHOLESALERS AND FOR DISTILLED SPIRITS
IN CONTROL STATE BAILMENT WAREHOUSES
FOR COSTS OF CARRYING FEDERAL EXCISE
TAXES ON BOTTLED DISTILLED SPIRITS.
(a) IN GENERAL.—Subpart A of part I of subchapter
A of chapter 51 (relating to gallonage and occupational
taxes) is amended by adding at the end the following new
section:
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‘‘SEC. 5011. INCOME TAX CREDIT FOR AVERAGE COST OF
CARRYING EXCISE TAX.
‘‘(a) IN GENERAL.—For purposes of section 38, the
amount of the distilled spirits credit for any taxable year
is the amount equal to the product of—
‘‘(1) in the case of—
‘‘(A) any eligible wholesaler, the number of
cases of bottled distilled spirits—
‘‘(i) which were bottled in the United
States, and
‘‘(ii) which are purchased by such
wholesaler during the taxable year directly
from the bottler of such spirits, or
‘‘(B) any person which is subject to section
5005 and which is not an eligible wholesaler, the
number of cases of bottled distilled spirits which
are stored in a warehouse operated by, or on be-
half of, a State or political subdivision thereof,
or an agency of either, on which title has not
passed on an unconditional sale basis, and
‘‘(2) the average tax-financing cost per case for
the most recent calendar year ending before the begin-
ning of such taxable year.
‘‘(b) ELIGIBLE WHOLESALER.—For purposes of this
section, the term ‘eligible wholesaler’ means any person
which holds a permit under the Federal Alcohol Adminis-
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tration Act as a wholesaler of distilled spirits which is not
a State or political subdivision thereof, or an agency of ei-
ther.
‘‘(c) AVERAGE TAX-FINANCING COST.—
‘‘(1) IN GENERAL.—For purposes of this section,
the average tax-financing cost per case for any cal-
endar year is the amount of interest which would ac-
crue at the deemed financing rate during a 60-day
period on an amount equal to the deemed Federal ex-
cise tax per case.
‘‘(2) DEEMED FINANCING RATE.—For purposes
of paragraph (1), the deemed financing rate for any
calendar year is the average of the corporate overpay-
ment rates under paragraph (1) of section 6621(a)
(determined without regard to the last sentence of
such paragraph) for calendar quarters of such year.
‘‘(3) DEEMED
FEDERAL
EXCISE
TAX
PER
CASE.—For purposes of paragraph (1), the deemed
Federal excise tax per case is $25.68.
‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.—For
purposes of this section—
‘‘(1) CASE.—The term ‘case’ means 12 80-proof
750-milliliter bottles.
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‘‘(2) NUMBER OF CASES IN LOT.—The number of
cases in any lot of distilled spirits shall be determined
by dividing the number of liters in such lot by 9.’’.
(b) CREDIT TREATED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) (relating to current year
business credit) is amended by striking ‘‘plus’’ at the end
of paragraph (18), by striking the period at the end of para-
graph (19), and inserting ‘‘, plus’’, and by adding at the
end the following new paragraph:
‘‘(20) the distilled spirits credit determined
under section 5011(a).’’.
(c) CONFORMING AMENDMENT.—The table of sections
for subpart A of part I of subchapter A of chapter 51 is
amended by adding at the end the following new item:
‘‘Sec. 5011. Income tax credit for average cost of carrying excise tax.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Sep-
tember 30, 2005.
SEC. 5234. QUARTERLY EXCISE TAX FILING FOR SMALL AL-
COHOL EXCISE TAXPAYERS.
(a) IN GENERAL.—Subsection (d) of section 5061 (re-
lating to time for collecting tax on distilled spirits, wines,
and beer) is amended by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively, and by insert-
ing after paragraph (3) the following new paragraph:
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‘‘(4) TAXPAYERS
LIABLE
FOR
TAXES
OF
NOT
MORE THAN $50,000.—
‘‘(A) IN GENERAL.—In the case of any tax-
payer who reasonably expects to be liable for not
more than $50,000 in taxes imposed with respect
to distilled spirits, wines, and beer under sub-
parts A, C, and D for the calendar year and who
was liable for not more than $50,000 in such
taxes in the preceding calendar year, the last
day for the payment of tax shall be the 14th day
after the last day of the calendar quarter during
which the action giving rise to the imposition of
such tax occurs.
‘‘(B) NO
APPLICATION
AFTER
LIMIT
EX-
CEEDED.—Subparagraph (A) shall not apply to
any taxpayer for any portion of the calendar
year following the first date on which the aggre-
gate amount of tax due under subparts A, C, and
D from such taxpayer during such calendar year
exceeds $50,000, and any tax under such sub-
parts which has not been paid on such date shall
be due on the 14th day after the last day of the
semimonthly period in which such date occurs.
‘‘(C) CALENDAR
QUARTER.—For purposes
of this paragraph, the term ‘calendar quarter’
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means the three-month period ending on March
31, June 30, September 30, or December 31.’’.
(b) CONFORMING AMENDMENT.—Section 5061(d)(6),
as redesignated by subsection (a), is amended by striking
‘‘paragraph (4)’’ and inserting ‘‘paragraph (5)’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to quarterly periods begin-
ning on and after January 1, 2006.
PART V—SPORT EXCISE TAXES
SEC. 5241. CUSTOM GUNSMITHS.
(a) SMALL MANUFACTURERS EXEMPT FROM FIRE-
ARMS EXCISE TAX.—Section 4182 (relating to exemptions)
is amended by redesignating subsection (c) as subsection (d)
and by inserting after subsection (b) the following new sub-
section:
‘‘(c) SMALL MANUFACTURERS, ETC.—
‘‘(1) IN GENERAL.—The tax imposed by section
4181 shall not apply to any pistol, revolver, or fire-
arm described in such section if manufactured, pro-
duced, or imported by a person who manufactures,
produces, and imports less than an aggregate of 50 of
such articles during the calendar year.
‘‘(2) CONTROLLED GROUPS.—All persons treated
as a single employer for purposes of subsection (a) or
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(b) of section 52 shall be treated as one person for
purposes of paragraph (1).’’.
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
this section shall apply to articles sold by the manu-
facturer, producer, or importer after September 30,
2005.
(2) NO
INFERENCE.—Nothing in the amend-
ments made by this section shall be construed to cre-
ate any inference with respect to the proper tax treat-
ment of any sales before the effective date of such
amendments.
Subtitle C—Miscellaneous
Provisions
SEC. 5301. MOTOR FUEL TAX ENFORCEMENT ADVISORY
COMMISSION.
(a) ESTABLISHMENT.—There is established a Motor
Fuel Tax Enforcement Advisory Commission (in this sec-
tion referred to as the ‘‘Commission’’).
(b) FUNCTION.—The Commission shall—
(1) review motor fuel revenue collections, histor-
ical and current;
(2) review the progress of investigations;
(3) develop and review legislative proposals with
respect to motor fuel taxes;
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(4) monitor the progress of administrative regu-
lation projects relating to motor fuel taxes;
(5) review the results of Federal and State agen-
cy cooperative efforts regarding motor fuel taxes;
(6) review the results of Federal interagency co-
operative efforts regarding motor fuel taxes; and
(7) evaluate and make recommendations to the
President and Congress regarding—
(A) the effectiveness of existing Federal en-
forcement programs regarding motor fuel taxes,
(B) enforcement personnel allocation, and
(C) proposals for regulatory projects, legis-
lation, and funding.
(c) MEMBERSHIP.—
(1) APPOINTMENT.—The Commission shall be
composed of the following representatives appointed
by the Chairmen and the Ranking Members of the
Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Represent-
atives:
(A) At least 1 representative from each of
the following Federal entities: the Department of
Homeland Security, the Department of Trans-
portation—Office of Inspector General, the Fed-
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eral Highway Administration, the Department
of Defense, and the Department of Justice.
(B) At least 1 representative from the Fed-
eration of State Tax Administrators.
(C) At least 1 representative from any State
department of transportation.
(D) 2 representatives from the highway con-
struction industry.
(E) 6 representatives from industries relat-
ing to fuel distribution — refiners (2 representa-
tives), distributors (1 representative), pipelines
(1 representative), and terminal operators (2
representatives).
(F) 1 representative from the retail fuel in-
dustry.
(G) 2 representatives from the staff of the
Committee on Finance of the Senate and 2 rep-
resentatives from the staff of the Committee on
Ways and Means of the House of Representa-
tives.
(2) TERMS.—Members shall be appointed for the
life of the Commission.
(3) VACANCIES.—A vacancy in the Commission
shall be filled in the manner in which the original
appointment was made.
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(4) TRAVEL
EXPENSES.—Members shall serve
without pay but shall receive travel expenses, includ-
ing per diem in lieu of subsistence, in accordance
with sections 5702 and 5703 of title 5, United States
Code.
(5) CHAIRMAN.—The Chairman of the Commis-
sion shall be elected by the members.
(d) FUNDING.—Such sums as are necessary shall be
available from the Highway Trust fund for the expenses of
the Commission.
(e) CONSULTATION.—Upon request of the Commission,
representatives of the Department of the Treasury and the
Internal Revenue Service shall be available for consultation
to assist the Commission in carrying out its duties under
this section.
(f) OBTAINING DATA.—The Commission may secure
directly from any department or agency of the United
States, information (other than information required by
any law to be kept confidential by such department or agen-
cy) necessary for the Commission to carry out its duties
under this section. Upon request of the Commission, the
head of that department or agency shall furnish such non-
confidential information to the Commission. The Commis-
sion shall also gather evidence through such means as it
may deem appropriate, including through holding hearings
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and soliciting comments by means of Federal Register no-
tices.
(g) TERMINATION.—The Commission shall terminate
as of the close of September 30, 2009.
SEC. 5302. NATIONAL SURFACE TRANSPORTATION INFRA-
STRUCTURE FINANCING COMMISSION.
(a) ESTABLISHMENT.—There is established a National
Surface Transportation Infrastructure Financing Commis-
sion (in this section referred to as the ‘‘Commission’’). The
Commission shall hold its first meeting within 90 days of
the appointment of the eighth individual to be named to
the Commission.
(b) FUNCTION.—
(1) IN GENERAL.—The Commission shall, with
respect to the period beginning on the date of the en-
actment of this Act and ending before 2016—
(A) make a thorough investigation and
study of revenues flowing into the Highway
Trust Fund under current law, including the in-
dividual components of the overall flow of such
revenues;
(B) consider whether the amount of such
revenues is likely to increase, decline, or remain
unchanged, absent changes in the law, particu-
larly by taking into account the impact of pos-
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sible changes in public vehicular choice, fuel use,
or travel alternatives that could be expected to
reduce or increase revenues into the Highway
Trust Fund;
(C) consider alternative approaches to gen-
erating revenues for the Highway Trust Fund,
and the level of revenues that such alternatives
would yield;
(D) consider highway and transit needs and
whether additional revenues into the Highway
Trust Fund, or other Federal revenues dedicated
to highway and transit infrastructure, would be
required in order to meet such needs; and
(E) study such other matters closely related
to the subjects described in the preceding sub-
paragraphs as it may deem appropriate.
(2) PREPARATION OF REPORT.—Based on such
investigation and study, the Commission shall develop
a final report, with recommendations and the bases
for those recommendations, indicating policies that
should be adopted, or not adopted, to achieve various
levels of annual revenue for the Highway Trust Fund
and to enable the Highway Trust Fund to receive rev-
enues sufficient to meet highway and transit needs.
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Such recommendations shall address, among other
matters as the Commission may deem appropriate—
(A) what levels of revenue are required by
the Federal Highway Trust Fund in order for it
to meet needs to maintain and improve the con-
dition and performance of the Nation’s highway
and transit systems;
(B) what levels of revenue are required by
the Federal Highway Trust Fund in order to en-
sure that Federal levels of investment in high-
ways and transit do not decline in real terms;
and
(C) the extent, if any, to which the High-
way Trust Fund should be augmented by other
mechanisms or funds as a Federal means of fi-
nancing highway and transit infrastructure in-
vestments.
(c) MEMBERSHIP.—
(1) APPOINTMENT.—The Commission shall be
composed of 15 members, appointed as follows:
(A) 7 members appointed by the Secretary
of Transportation, in consultation with the Sec-
retary of the Treasury.
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(B) 2 members appointed by the Chairman
of the Committee on Ways and Means of the
House of Representatives.
(C) 2 members appointed by the Ranking
Minority Member of the Committee on Ways and
Means of the House of Representatives.
(D) 2 members appointed by the Chairman
of the Committee on Finance of the Senate.
(E) 2 members appointed by the Ranking
Minority Member of the Committee on Finance
of the Senate.
(2) QUALIFICATIONS.—Members appointed pur-
suant to paragraph (1) shall be appointed from
among individuals knowledgeable in the fields of pub-
lic transportation finance or highway and transit
programs, policy, and needs, and may include rep-
resentatives of interested parties, such as State and
local governments or other public transportation au-
thorities or agencies, representatives of the transpor-
tation construction industry (including suppliers of
technology, machinery and materials), transportation
labor (including construction and providers), trans-
portation providers, the financial community, and
users of highway and transit systems.
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(3) TERMS.—Members shall be appointed for the
life of the Commission.
(4) VACANCIES.—A vacancy in the Commission
shall be filled in the manner in which the original
appointment was made.
(5) TRAVEL
EXPENSES.—Members shall serve
without pay but shall receive travel expenses, includ-
ing per diem in lieu of subsistence, in accordance
with sections 5702 and 5703 of title 5, United States
Code.
(6) CHAIRMAN.—The Chairman of the Commis-
sion shall be elected by the members.
(d) STAFF.—The Commission may appoint and fix the
pay of such personnel as it considers appropriate.
(e) FUNDING.—Funding for the Commission shall be
provided by the Secretary of the Treasury and by the Sec-
retary of Transportation, out of funds available to those
agencies for administrative and policy functions.
(f) STAFF OF FEDERAL AGENCIES.—Upon request of
the Commission, the head of any department or agency of
the United States may detail any of the personnel of that
department or agency to the Commission to assist in car-
rying out its duties under this section.
(g) OBTAINING DATA.—The Commission may secure
directly from any department or agency of the United
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States, information (other than information required by
any law to be kept confidential by such department or agen-
cy) necessary for the Commission to carry out its duties
under this section. Upon request of the Commission, the
head of that department or agency shall furnish such non-
confidential information to the Commission. The Commis-
sion shall also gather evidence through such means as it
may deem appropriate, including through holding hearings
and soliciting comments by means of Federal Register no-
tices.
(h) REPORT.—Not later than 2 years after the date
of its first meeting, the Commission shall transmit its final
report, including recommendations, to the Secretary of
Transportation, the Secretary of the Treasury, and the
Committee on Ways and Means of the House of Representa-
tives, the Committee on Finance of the Senate, the Com-
mittee on Transportation and Infrastructure of the House
of Representatives, the Committee on Environment and
Public Works of the Senate, and the Committee on Banking,
Housing, and Urban Affairs of the Senate.
(i) TERMINATION.—The Commission shall terminate
on the 180th day following the date of transmittal of the
report under subsection (h). All records and papers of the
Commission shall thereupon be delivered to the Adminis-
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trator of General Services for deposit in the National Ar-
chives.
SEC. 5303. EXPANSION OF HIGHWAY TRUST FUND EXPENDI-
TURE PURPOSES TO INCLUDE FUNDING FOR
STUDIES 
OF 
SUPPLEMENTAL 
OR 
ALTER-
NATIVE 
FINANCING 
FOR 
THE 
HIGHWAY
TRUST FUND.
(a) IN GENERAL.—From amounts available in the
Highway Trust Fund, there is authorized to be expended
for 2 comprehensive studies of supplemental or alternative
funding sources for the Highway Trust Fund—
(1) $1,000,000 to the Western Transportation In-
stitute of the College of Engineering at Montana State
University for the study and report described in sub-
section (b), and
(2) $16,500,000 to the Public Policy Center of
the University of Iowa for the study and report de-
scribed in subsection (c).
(b) STUDY OF FUNDING MECHANISMS.—Not later than
December 31, 2006, the Western Transportation Institute
of the College of Engineering at Montana State University
shall report to the Secretary of the Treasury and the Sec-
retary of Transportation on a study of highway funding
mechanisms of other industrialized nations, an examina-
tion of the viability of alternative funding proposals, in-
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cluding congestion pricing, greater reliance on tolls, privat-
ization of facilities, and bonding for construction of added
capacity, and an examination of increasing the rates of
motor fuels taxes in effect on the date of the enactment of
this Act, including the indexation of such rates.
(c) STUDY ON FIELD TEST OF ONBOARD COMPUTER
ASSESSMENT OF HIGHWAY USE TAXES.—Not later than
December 31, 2011, the Public Policy Center of the Univer-
sity of Iowa shall direct, analyze, and report to the Sec-
retary of the Treasury and the Secretary of Transportation
on a long-term field test of an approach to assessing high-
way use taxes based upon actual mileage driven by a spe-
cific vehicle on specific types of highways by use of an on-
board computer—
(1) which is linked to satellites to calculate high-
way mileage traversed,
(2) which computes the appropriate highway use
tax for each of the Federal, State, and local govern-
ments as the vehicle makes use of the highways, and
(3) the data from which is periodically
downloaded by the vehicle owner to a collection center
for an assessment of highway use taxes due in each
jurisdiction traversed. The components of the field test
shall include 2 years for preparation, including selec-
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tion of vendors and test participants, and 3-year test-
ing period.
SEC. 5304. DELTA REGIONAL TRANSPORTATION PLAN.
(a) STUDY.—The Delta Regional Authority shall con-
duct a study of the transportation assets and needs in the
States of Alabama, Arkansas, Illinois, Kentucky, Lou-
isiana, Mississippi, Missouri, and Tennessee which com-
prise the Delta region.
(b) REGIONAL STRATEGIC TRANSPORTATION PLAN.—
Upon completion of the study required under subsection (a),
the Delta Regional Authority shall establish a regional stra-
tegic transportation plan to achieve efficient transportation
systems in the Delta region. In developing the regional stra-
tegic transportation plan, the Delta Regional Authority
shall consult with local planning and development districts,
local and regional governments, metropolitan planning or-
ganizations, State transportation entities, and Federal
transportation agencies.
(c) ELEMENTS OF STUDY AND PLAN.—The study and
plan under this section shall include the following transpor-
tation modes and systems: transit, rail, highway, interstate,
bridges, air, airports, waterways, and ports.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Delta Regional Author-
ity $500,000 for each of the fiscal years 2005 and 2006 to
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carry out the purposes of this section, to remain available
until expended.
SEC. 5305. BUILD AMERICA CORPORATION.
(a) ESTABLISHMENT OF BUILD AMERICA CORPORA-
TION.—There is established a nonprofit corporation, to be
known as the ‘‘Build America Corporation’’. The Build
America Corporation is not an agency or establishment of
the United States Government. The purpose of the Corpora-
tion is to issue Build America bonds. The Corporation shall
be subject, to the extent consistent with this section, to the
laws of the State of Delaware applicable to corporations not
for profit.
(b) USE OF BUILD AMERICA BOND PROCEEDS.—The
proceeds from the sale of any Build America bonds issued
by the Build America Corporation as authorized by sub-
section (a) may be used to fund any qualified project.
(c) QUALIFIED PROJECTS.—For purposes of this
section—
(1) IN GENERAL.—With respect to any Build
America bonds issued by the Build America Corpora-
tion as authorized by subsection (a), the term ‘‘quali-
fied project’’ means any—
(A) qualified highway project,
(B) qualified public transportation project,
and
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(C) congestion relief project,
proposed by 1 or more States and approved by the
Build America Corporation, which meets the require-
ments under subparagraphs (A), (B), and (C) of
paragraph (5).
(2) QUALIFIED HIGHWAY PROJECT.—The term
‘‘qualified highway project’’ means a project for high-
way facilities or other facilities which are eligible for
assistance under title 23, United States Code.
(3) 
QUALIFIED
PUBLIC
TRANSPORTATION
PROJECT.—The term ‘‘qualified public transportation
project’’ means a project for public transportation fa-
cilities or other facilities which are eligible for assist-
ance under title 49, United States Code.
(4) CONGESTION
RELIEF
PROJECT.—The term
‘‘congestion relief project’’ means an intermodal
freight transfer facility, freight rail facility, freight
movement corridor, intercity passenger rail facility,
intercity bus facility, border crossing facility, or other
public or private facility approved as a congestion re-
lief project by the Secretary of Transportation. In
making such approvals, the Secretary of Transpor-
tation shall—
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(A) consider the economic, environmental,
mobility, and national security improvements to
be realized through the project, and
(B) give preference to projects with national
or regional significance, including any projects
sponsored by a coalition of States or a combina-
tion of States and private sector entities, in
terms of generating economic benefits, supporting
international commerce, or otherwise enhancing
the national transportation system.
(5) ADDITIONAL REQUIREMENTS FOR QUALIFIED
PROJECTS.—For purposes of paragraph (1)—
(A) COSTS OF QUALIFIED PROJECTS.—The
requirement of this subparagraph is met if the
costs of the qualified project funded by Build
America bonds only relate to capital investments
and do not include any costs relating to oper-
ations, maintenance, or rolling stock.
(B) APPLICABILITY OF FEDERAL LAW.—The
requirement of this subparagraph is met if the
requirements of any Federal law, including titles
23, 40, and 49 of the United States Code, which
would otherwise apply to projects to which the
United States is a party or to funds made avail-
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able under such law and projects assisted with
those funds are applied to—
(i) funds made available under Build
America 
bonds 
for 
similar 
qualified
projects, and
(ii) similar qualified projects assisted
by the Build America Corporation through
the use of such funds.
(C) UTILIZATION OF UPDATED CONSTRUC-
TION TECHNOLOGY FOR QUALIFIED PROJECTS.—
The requirement of this subparagraph is met if
the appropriate State agency relating to the
qualified project has updated its accepted con-
struction technologies to match a list prescribed
by the Secretary of Transportation and in effect
on the date of the approval of the project as a
qualified project.
SEC. 5306. INCREASE IN DOLLAR LIMITATION FOR QUALI-
FIED TRANSPORTATION FRINGE BENEFITS.
(a) IN GENERAL.—Section 132(f)(2) (relating to limi-
tation on exclusion) is amended—
(1) by striking ‘‘$100’’ in subparagraph (A) and
inserting ‘‘$155 (in the case of any calendar year
after 2009, the dollar amount specified in subpara-
graph (B) for such year)’’, and
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(2) by striking ‘‘$175’’ in subparagraph (B) and
inserting ‘‘$200’’.
(b) INFLATION ADJUSTMENT CONFORMING AMEND-
MENTS.—Subparagraph (A) of section 132(f)(6) (relating to
inflation adjustment) is amended—
(1) by striking the last sentence,
(2) by striking ‘‘1999’’ and inserting ‘‘2008’’,
and
(3) by striking ‘‘1998’’ and inserting ‘‘2007’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 2005.
SEC. 5307. TREASURY STUDY OF HIGHWAY FUELS USED BY
TRUCKS FOR NON-TRANSPORTATION PUR-
POSES.
(a) STUDY.—The Secretary of the Treasury shall con-
duct 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 unrelated to the transportation function of the
vehicle—
(A) the Secretary of the Treasury, in con-
sultation with the Secretary of Transportation,
and with public notice and comment, shall deter-
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mine 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 op-
erate the equipment attached to the highway ve-
hicle, and
(B) the Secretary of the Treasury shall re-
view the technical and administrative feasibility
of exempting such nonpropulsive use of highway
fuels for the highway motor fuels excise taxes,
shall propose options for implementing exemp-
tions for classes of vehicles whose nonpropulsive
fuel use exceeds 50 percent,
(2) in the case where non-transportation equip-
ment is run by a separate motor—
(A) the Secretary of the Treasury shall de-
termine the annual average amount of fuel ex-
empted from tax in the use of such equipment by
equipment type, and
(B) the Secretary of the Treasury shall re-
view issues of administration and compliance re-
lated 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 con-
sumed by trucks and the emissions of various
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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 tech-
nologies.
(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 Representatives, except that the Sec-
retary shall report and take action under subsection (a)(1)
not later than July 1, 2006.
SEC. 5308. TAX-EXEMPT FINANCING OF HIGHWAY PROJECTS
AND RAIL-TRUCK TRANSFER FACILITIES.
(a) TREATMENT AS EXEMPT FACILITY BOND.—Sub-
section (a) of section 142 (relating to exempt facility bond)
is amended by striking ‘‘or’’ at the end of paragraph (13),
by striking the period at the end of paragraph (14), and
by adding at the end the following:
‘‘(15) qualified highway facilities, or
‘‘(16) qualified surface freight transfer facili-
ties.’’.
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(b) QUALIFIED HIGHWAY FACILITIES AND QUALIFIED
SURFACE FREIGHT TRANSFER FACILITIES.—Section 142 is
amended by adding at the end the following:
‘‘(m) QUALIFIED HIGHWAY AND SURFACE FREIGHT
TRANSFER FACILITIES.—
‘‘(1) QUALIFIED
HIGHWAY
FACILITIES.—For
purposes of subsection (a)(15), the term ‘qualified
highway facilities’ means—
‘‘(A) any surface transportation project
which receives Federal assistance under title 23,
United States Code (as in effect on the date of
the enactment of this subsection), or
‘‘(B) any project for an international bridge
or tunnel for which an international entity au-
thorized under Federal or State law is respon-
sible and which receives Federal assistance under
such title 23.
‘‘(2) QUALIFIED
SURFACE
FREIGHT
TRANSFER
FACILITIES.—For purposes of subsection (a)(16), the
term ‘qualified surface freight transfer facilities’
means facilities for the transfer of freight from truck
to rail or rail to truck (including any temporary
storage facilities directly related to such transfers)
which receives Federal assistance under either title 23
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or title 49, United States Code (as in effect on the
date of the enactment of this subsection).
‘‘(3) NATIONAL LIMITATION ON AMOUNT OF TAX-
EXEMPT FINANCING FOR FACILITIES.—
‘‘(A) NATIONAL
LIMITATION.—There is a
national highway and surface freight transfer fa-
cilities bond limitation for each calendar year.
Such limitation is $130,000,000 for 2005,
$750,000,000 for 2006, 2007, 2008, and 2009,
$1,870,000,000 for 2010, $2,000,000,000 for
2011, 2012, 2013, 2014, and 2015, and zero
thereafter.
‘‘(B) ENFORCEMENT OF NATIONAL LIMITA-
TION.—An issue shall not be treated as an issue
described in subsection (a)(15) or (a)(16) if the
aggregate face amount of bonds issued pursuant
to such issue for any calendar year (when added
to the aggregate face amount of bonds previously
issued as part of issues described in subsections
(a)(15) and (a)(16) for such calendar year) ex-
ceeds the national highway and surface freight
transfer facilities bond limitation for such cal-
endar year.
‘‘(C) ALLOCATION BY SECRETARY OF TRANS-
PORTATION.—The Secretary of Transportation
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shall allocate the amount described in subpara-
graph (A) among projects for qualified highway
facilities and qualified surface freight transfer
facilities in such manner as the Secretary deter-
mines appropriate.
‘‘(4) EXPENDITURE
OF
PROCEEDS.—An issue
shall not be treated as an issue described in subsection
(a)(15) or (a)(16) unless at least 95 percent of the net
proceeds of the issue is expended for projects described
in paragraph (3)(C) within the 5-year period begin-
ning on the date of issuance. If at least 95 percent of
such net proceeds is not expended with such 5-year
period, an issue shall be treated as continuing to meet
the requirements of this paragraph if the issuer uses
all unspent proceeds of the issue to redeem bonds of
the issue within 90 days after the end of such 5-year
period. The Secretary, at the request of the issuer,
may extend such 5-year period if the issuer establishes
that any failure to meet such period is due to cir-
cumstances beyond the control of the issuer.’’.
(c) EXEMPTION FROM GENERAL STATE VOLUME
CAPS.—Paragraph (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