467
degree program in transportation studies, and a
demonstrated record for at least 5 years in pur-
suing the objectives for which grants are author-
ized by this subparagraph.
(B) FUNDING.—Of the amounts made avail-
able by section 127(a)(3)(H) of this Act,
$1,000,000 shall be available to carry out this
paragraph for fiscal year 2000, $1,250,000 for
fiscal year 2001, $1,500,000 for fiscal year 2002,
and $1,750,000 for fiscal year 2003.
(18) 
INFRASTRUCTURE
TECHNOLOGY
INSTI-
TUTE.—
(A) IN
GENERAL.—The Secretary shall
make grants to study techniques to evaluate and
monitor infrastructure conditions, to improve in-
formation systems for infrastructure construction
and management, and to study advanced mate-
rials and automated processes for constructing
and rehabilitating public works facilities. The re-
cipient shall be an institution with a dem-
onstrated record for at least 5 years in pursuing
the objectives for which grants are authorized by
this subparagraph.
(B) FUNDING.—Of the amounts made avail-
able for each of fiscal years 2000 through 2003
468
by section 127(a)(3)(H) of this Act, $3,000,000
per fiscal year shall be available to carry out
this paragraph.
Subtitle B—Intelligent
Transportation Systems
SEC. 651. DEFINITIONS.
As used in this subtitle, the following definitions
apply:
(1) INTELLIGENT
TRANSPORTATION
SYSTEMS;
ITS.—The terms ‘‘intelligent transportation systems’’
and ‘‘ITS’’ mean electronics, communications, or in-
formation processing used singly or in combination to
improve the efficiency and safety of surface transpor-
tation systems.
(2) INTELLIGENT TRANSPORTATION INFRASTRUC-
TURE.—The term ‘‘intelligent transportation infra-
structure’’ means fully integrated public sector ITS
components, as defined by the Secretary.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Transportation.
(4) STATE.—The term ‘‘State’’ has the meaning
given such term under section 101 of title 23, United
States Code.
469
SEC. 652. SCOPE OF PROGRAM.
(a) SCOPE.—Subject to the provisions of this subtitle,
the Secretary shall conduct an ongoing ITS program to re-
search, develop, and operationally test intelligent transpor-
tation systems and advance nationwide deployment of such
systems as a component of the Nation’s surface transpor-
tation systems.
(b) GOALS.—The goals of the ITS program include—
(1) enhancement of surface transportation effi-
ciency to enable existing facilities to meet a signifi-
cant portion of future transportation needs and to re-
duce regulatory, financial, and other transaction costs
to public agencies and system users;
(2) enhancement of safe operation of motor vehi-
cles, including motorcycles, and nonmotorized vehicles
on the Nation’s surface transportation systems, with
a particular emphasis on decreasing the number and
severity of collisions;
(3) protection and enhancement of the natural
environment and communities affected by surface
transportation, with particular emphasis on assisting
States to attain air quality goals established pursuant
to the Clean Air Act (42 U.S.C. 7401 et seq.);
(4) accommodation of the needs of all users of the
Nation’s surface transportation systems, including the
470
operators of commercial vehicles, passenger vehicles,
and motorcycles;
(5) improvement of public access to employment,
goods, and services;
(6) development of a technology base and nec-
essary standards and protocols for intelligent trans-
portation systems;
(7) improvement of the Nation’s ability to re-
spond to emergencies and natural disasters and en-
hancement of national defense mobility; and
(8) promotion of the access and use of data col-
lected from projects conducted under the program by
public and private organizations.
SEC. 653. GENERAL AUTHORITIES AND REQUIREMENTS.
(a) COOPERATION
AND
CONSULTATION
REQUIRE-
MENTS.—
(1) COOPERATION
WITH
GOVERNMENTAL, PRI-
VATE, AND EDUCATIONAL ENTITIES.—The Secretary
shall carry out the ITS program in cooperation with
State and local governments and other public entities,
the United States private sector, and colleges and uni-
versities, including historically black colleges and uni-
versities and other minority institutions of higher
education.
471
(2) CONSULTATION WITH FEDERAL OFFICIALS.—
In carrying out the ITS program, the Secretary, as
appropriate, shall consult with the Secretary of Com-
merce, the Secretary of the Treasury, the Adminis-
trator of the Environmental Protection Agency, the
Director of the National Science Foundation, and the
heads of other Federal departments and agencies.
(b) STANDARDS.—
(1) DEVELOPMENT OF NATIONAL ITS ARCHITEC-
TURE.—The Secretary shall develop, implement, and
maintain a national ITS architecture and standards
and protocols to promote the widespread use and eval-
uation of ITS technology as a component of the Na-
tion’s surface transportation systems.
(2) 
INTEROPERABILITY
AMONG
ITS
TECH-
NOLOGIES.—The national ITS architecture shall pro-
mote interoperability among ITS technologies imple-
mented throughout the States.
(3) USE OF SERVICES OF STANDARDS-SETTING
ORGANIZATIONS.—In carrying out this subsection, the
Secretary may use the services of standards-setting
organizations.
(4) ESTABLISHMENT
OF
DEDICATED
SHORT-
RANGE VEHICLE TO WAYSIDE WIRELESS STANDARD.—
In carrying out this subsection, the Secretary, in con-
472
sultation with the Secretary of Commerce, the Sec-
retary of Defense, and the Federal Communications
Commission, shall take such actions as may be nec-
essary to secure the necessary spectrum for the near-
term establishment of a dedicated short-range vehicle
to wayside wireless standard.
(c) EVALUATIONS.—
(1) GUIDELINES AND REQUIREMENTS.—The Sec-
retary shall issue guidelines and requirements for the
evaluation of field and related operational tests car-
ried out under section 655 of this Act.
(2) OBJECTIVITY
AND
INDEPENDENCE.—The
guidelines and requirements issued under paragraph
(1) shall include provisions to ensure the objectivity
and independence of the evaluator and to avoid any
real or apparent conflict of interest or potential influ-
ence on the outcome by parties to the tests or any
other formal evaluation conducted under this subtitle.
(d) INFORMATION CLEARINGHOUSE.—
(1) ESTABLISHMENT.—The Secretary shall estab-
lish and maintain a repository for technical and safe-
ty data collected as a result of federally-sponsored
projects under this subtitle and shall make, upon re-
quest, such information (except for proprietary infor-
473
mation and data) readily available to all users of the
repository at an appropriate cost.
(2) DELEGATION OF AUTHORITY.—The Secretary
may delegate the responsibility of the Secretary under
this subsection, with continuing oversight by the Sec-
retary, to an appropriate entity that is not within
the Department of Transportation. Any entity to
which such responsibility is delegated shall be eligible
for Federal assistance under this subtitle.
(e) ADVISORY COMMITTEES.—
(1) IN GENERAL.—The Secretary may utilize 1
or more advisory committees in carrying out this sub-
title.
(2) APPLICABILITY OF FEDERAL ADVISORY COM-
MITTEE ACT.—Any advisory committee utilized under
this subsection shall be subject to the Federal Advisory
Committee Act (5 U.S.C. App., 86 Stat. 770).
(3) FUNDING.—Funding provided for an advi-
sory committee utilized under this subsection shall be
available from moneys appropriated for advisory
committees as specified in relevant appropriations
Acts and from funds allocated for research, develop-
ment, and implementation activities in connection
with the ITS program.
(f) CONFORMITY WITH STANDARDS.—
474
(1) IN
GENERAL.—The Secretary shall ensure
that ITS projects carried out using funds made avail-
able out of the Highway Trust Fund conform to the
national ITS architecture and standards and proto-
cols developed under subsection (b).
(2) EXCEPTION.—Paragraph (1) shall not apply
to projects carried out using funds authorized for spe-
cific research objectives in the National ITS Program
Plan under section 654 of this Act.
(g) LIFE-CYCLE COST ANALYSIS.—The Secretary shall
require an analysis of the life-cycle costs of each project car-
ried out using funds made available under this subtitle, and
each project authorized in section 656 of this Act, for oper-
ations and maintenance of ITS elements, where the total
initial capital costs of the such elements exceed $3,000,000.
(h) PROCUREMENT METHODS.—
(1) TECHNICAL
ASSISTANCE.—The Secretary
shall develop appropriate technical assistance and
guidance to assist State and local agencies in evaluat-
ing and selecting appropriate methods of procurement
for its projects carried out using funds made available
from the Highway Trust Fund, including innovative
and nontraditional methods of procurement.
(2) ITS SOFTWARE.—To the maximum extent
practicable, contracting officials shall use as a critical
475
evaluation criterion the Software Engineering Insti-
tute’s Capability Maturity Model, or another similar
recognized standard risk assessment methodology, to
reduce the cost, schedule, and performance risks asso-
ciated with the development, management, and inte-
gration of ITS software.
SEC. 654. NATIONAL ITS PROGRAM PLAN.
(a) NATIONAL ITS PROGRAM PLAN.—
(1) UPDATES.—The Secretary shall maintain
and update, as necessary, the National ITS Program
Plan developed by the Department of Transportation
and the Intelligent Transportation Society of Amer-
ica.
(2) SCOPE.—The National ITS Program Plan
shall—
(A) specify the goals, objectives, and mile-
stones for the deployment of intelligent transpor-
tation infrastructure in the context of major met-
ropolitan areas, smaller metropolitan and rural
areas, and commercial vehicle information sys-
tems and networks;
(B) specify how specific programs and
projects relate to the goals, objectives, and mile-
stones referred to in subparagraph (A), including
476
consideration of the 5-, 10-, and 20-year time-
frames for the goals and objectives;
(C) establish a course of action necessary to
achieve the program’s goals and objectives;
(D) provide for the evolutionary develop-
ment of standards and protocols to promote and
ensure interoperability in the implementation of
ITS technologies; and
(E) establish a cooperative process with
State and local governments for determining de-
sired surface transportation system performance
levels and developing plans for national incorpo-
ration of specific ITS capabilities into surface
transportation systems.
(b) IMPLEMENTATION REPORTS.—Not later than 1
year after the date of the enactment of this Act, and bienni-
ally thereafter, the Secretary shall transmit to the Commit-
tee on Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and
Public Works of the Senate a report on implementation of
the National ITS Program Plan.
SEC. 655. TECHNICAL ASSISTANCE, PLANNING, RESEARCH,
AND OPERATIONAL TESTS.
(a) TECHNICAL ASSISTANCE, TRAINING, AND INFOR-
MATION.—The Secretary may provide technical assistance,
477
training, and information to State and local governments
seeking to implement, operate, maintain, and evaluate ITS
technologies and services.
(b) TRANSPORTATION PLANNING.—The Secretary may
provide funding to support adequate consideration of trans-
portation system management and operations, including
ITS, within metropolitan and statewide transportation
planning processes.
(c) RESEARCH AND OPERATIONAL TESTS.—The Sec-
retary may provide funding for research and operational
tests relating to ITS.
(d) DEMONSTRATION
AND EVALUATION
OF INTEL-
LIGENT VEHICLE HIGHWAY SYSTEMS.—The Secretary may
conduct research and development activities for the purpose
of demonstrating integrated intelligent vehicle highway sys-
tems and roadway safety systems. Such research shall in-
clude state-of-the-art systems and shall integrate collision
avoidance, in-vehicle information, and other safety related
systems (including infrastructure-based systems). Develop-
ment work shall incorporate human factors research find-
ings.
SEC. 656. ITS DEPLOYMENT.
(a) INTELLIGENT TRANSPORTATION INFRASTRUCTURE
DEPLOYMENT INCENTIVES PROGRAM.—The Secretary shall
conduct a program to promote the deployment of regionally
478
integrated, intermodal intelligent transportation systems
and, through financial and technical assistance under this
subtitle, shall assist in the development and implementation
of such systems.
(b) GOALS.—In accordance with the National ITS
Program Plan under section 654 of this Act, the Secretary
shall provide incentives for the deployment of integrated ap-
plications of intermodal, intelligent transportation infra-
structure and system technologies to—
(1) stimulate sufficient deployment to validate
and accelerate the establishment of national ITS
standards and protocols;
(2) realize the benefits of regionally integrated,
intermodal deployment of intelligent transportation
infrastructure and commercial vehicle operations, in-
cluding electronic border crossing applications; and
(3) motivate innovative approaches to over-
coming non-technical constraints or impediments to
deployment.
(c) PROJECT SELECTION.—In order to be eligible for
funding under this section, a project shall—
(1) contribute to national deployment goals and
objectives outlined in the National ITS Program Plan
under section 654 of this Act;
479
(2) demonstrate a strong commitment to co-
operation among agencies, jurisdictions, and the pri-
vate sector, as evidenced by signed memorandums of
understanding that clearly define the responsibilities
and relation of all parties to a partnership arrange-
ment, including institutional relationships and finan-
cial agreements needed to support deployment, and
commitment to the criteria provided in paragraphs
(3) through (7);
(3) demonstrate commitment to a comprehensive
plan of fully integrated ITS deployment in accord-
ance with the national ITS architecture and stand-
ards and protocols established under section 653(b) of
this Act;
(4) be part of approved plans and programs de-
veloped under applicable statewide and metropolitan
transportation planning processes and applicable
State air quality implementation plans, as appro-
priate, at the time Federal funds are sought;
(5) minimize the relative percentage and amount
of Federal contributions under this section to total
project costs;
(6) ensure continued, long-term operations and
maintenance without continued reliance on Federal
funding under this subtitle, along with documented
480
evidence of fiscal capacity and commitment from an-
ticipated public and private sources;
(7) demonstrate technical capacity for effective
operations and maintenance or commitment to ac-
quiring necessary skills; and
(8) identify the impacts on bicycle and pedes-
trian transportation and safety and evaluate options
to mitigate any adverse impacts on bicycle and pedes-
trian transportation and safety.
(d) FUNDING LIMITATIONS.—
(1) PROJECTS IN METROPOLITAN AREAS.—Fund-
ing under this section for intelligent transportation
infrastructure projects in metropolitan areas shall be
limited to activities primarily necessary to integrate
intelligent transportation infrastructure elements ei-
ther deployed or to be deployed with other sources of
funds.
(2) OTHER PROJECTS.—For commercial vehicle
projects and projects outside metropolitan areas,
funding provided under this subtitle may also be used
for installation of intelligent transportation infra-
structure elements.
(3) FISCAL YEAR LIMITATIONS.—Of the amounts
made available to carry out this section in a fiscal
year—
481
(A) not more than $15,000,000 may be used
for projects in a metropolitan area;
(B) not more than $2,000,000 may be used
for a project in a rural area;
(C) not more than $5,000,000 may be used
for a commercial vehicle information system and
network project; and
(D) not more than $35,000,000 may be used
for projects in a State.
(4) PRIORITIES.—In providing funding for
projects under this section, the Secretary shall allo-
cate—
(A) not less than 25 percent of the funds
made available to carry out this section to eligi-
ble State and local entities for the implementa-
tion of commercial vehicle information systems
and networks, and international border crossing
improvements, in support of public sector com-
mercial vehicle operations nationwide; and
(B) not less than 10 percent of such funds
for other intelligent transportation infrastructure
deployment activities outside of metropolitan
areas.
482
SEC. 657. FUNDING ALLOCATIONS.
(a) INTELLIGENT TRANSPORTATION INFRASTRUCTURE
DEPLOYMENT INCENTIVES PROGRAM.—
(1) ALLOCATION.—Of the amounts made avail-
able for each of fiscal years 1998 through 2003 by sec-
tion 127(a)(3)(I) of this Act, $75,000,000 per fiscal
year shall be available to carry out section 656 of this
Act.
(2) USE OF UNALLOCATED AMOUNTS.—In addi-
tion to amounts made available by subsection (b), any
amounts made available under paragraph (1) and
not allocated by the Secretary for carrying out section
656 of this Act may be used by the Secretary for car-
rying out other activities authorized under this sub-
title.
(b) ITS RESEARCH AND PROGRAM SUPPORT ACTIVI-
TIES.—Of the amounts made available for each of fiscal
years 1998 through 2003 by section 127(a)(3)(I) of this Act,
$100,000,000 per fiscal year shall be available to carry out
multi-year research and technology development initiatives
under this subtitle (other than projects under section 656
of this Act).
(c) FEDERAL SHARE PAYABLE.—
(1) INTELLIGENT TRANSPORTATION INFRASTRUC-
TURE DEPLOYMENT INCENTIVES PROGRAM.—For ac-
tivities funded with amounts allocated under sub-
483
section (a), the Federal share payable from such
amounts shall not exceed 50 percent of the costs of the
activities, and the total Federal share payable from
all eligible sources (including subsection (a)) shall not
exceed 80 percent of the costs of the activities.
(2) OTHER
PROGRAMS.—For activities funded
with amounts allocated under subsection (b), unless
the Secretary determines otherwise, the Federal share
payable on account of such activities shall not exceed
80 percent of the costs of the activities.
(3) LONG-RANGE
ACTIVITIES.—For long-range
activities undertaken in partnership with private en-
tities for the purposes of section 655(d) of this Act, the
Federal share payable from funds allocated under this
subtitle on account of such activities shall not exceed
50 percent of the costs of the activities, and the total
Federal share payable from all eligible sources (in-
cluding subsection (a)) shall not exceed 80 percent of
the costs of the activities.
(4) PARTICIPATION OF OTHER PUBLIC AND PRI-
VATE SOURCES.—The Secretary shall seek maximum
participation in the funding of activities under this
subtitle from other public and private sources, and
shall minimize the use of funds provided under this
484
subtitle for the construction or long-term acquisition
of buildings and grounds.
(d) ADVANCED TRAFFIC MONITORING AND RESPONSE
CENTER.—
(1) IN
GENERAL.—The Secretary shall make
grants to the Pennsylvania Transportation Institute,
in conjunction with the Pennsylvania Turnpike Com-
mission, to establish an advanced traffic monitoring
and emergency response center at Letterkenny Army
Depot in Chambersburg, Pennsylvania. The center
shall help develop and coordinate traffic monitoring
and ITS systems on the entire Pennsylvania Turn-
pike system and I–81, coordinate emergency response
with State and local governments in the Central
Pennsylvania Region, and conduct research.
(2) FUNDING.—Of the amounts made available
for each of fiscal years 1998 through 2003 by section
127(a)(3)(H) of this Act, $1,667,000 per fiscal year
shall be available to carry out this subsection.
SEC. 658. GLOBAL POSITIONING SATELLITE DATA.
(a) MORATORIUM.—Before the last day of the 2-year
period beginning on the date of enactment of this Act or
the 90th day after a study has been submitted under sub-
section (c), whichever is later, records produced by global
positioning satellite systems shall not be subpoenaed or oth-
485
erwise used by the Secretary in enforcement cases to verify
compliance with hours-of-service requirements for employees
of motor carriers.
(b) EXCEPTIONS TO MORATORIUM.—Notwithstanding
subsection (a), the Secretary may use such records in a case
in which any of the following conditions exist:
(1) Global positioning satellite systems are a
motor carrier’s primary method of maintaining or
verifying records of duty status.
(2) State or Federal safety officials are inves-
tigating the cause of a fatal crash involving a motor
carrier.
(3) A motor carrier has an unacceptable safety
profile as determined by the Secretary and the Sec-
retary gives approval for an examination of the global
positioning satellite records.
In carrying out this subsection, the Secretary may seek ac-
cess to data from an information technology provider only
if access to such data cannot be obtained from the motor
carrier.
(c) INDEPENDENT ASSESSMENT.—
(1) IN GENERAL.—The Secretary shall contract
with an entity that is independent of the Department
of Transportation to conduct a study to identify, ex-
amine, and evaluate current and future issues and
486
policies related to government access to data produced
by electronic systems for motor carriers. The entity
shall have demonstrated knowledge about the motor
carrier industry, motor carrier safety regulations,
and the electronic information industry.
(2) INSPECTOR GENERAL.—The Office of the In-
spector General of the Department of Transportation
shall approve the statement of work of the entity re-
ferred to in paragraph (1) and approve the contract
award under paragraph (1). In carrying out its re-
sponsibilities under this paragraph, the Office of the
Inspector General shall perform such overview and
validation or verification of data as may be necessary
to ensure that the study to be conducted under para-
graph (1) meets the requirements of paragraph (1).
(3) DEADLINE.—The study to be conducted
under paragraph (1) shall be completed not later than
2 years after the date of the enactment of this Act. A
report containing the results of the study shall be sub-
mitted to the Secretary and Congress.
(4) FUNDING.—Of amounts made available
under section 127(a)(3)(H), $100,000 for fiscal year
1998, $200,000 for fiscal year 1999, and $200,000 for
fiscal year 2000 shall be available to carry out this
subsection.
487
SEC. 659. REPEAL.
Part B of title VI of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (105 Stat. 2189–2195) is re-
pealed.
TITLE VII—TRUTH IN
BUDGETING
SEC. 701. BUDGETARY TREATMENT OF HIGHWAY TRUST
FUND.
Notwithstanding any other provision of law (except the
Line Item Veto Act of 1996), the receipts and disbursements
of the Highway Trust Fund established by section 9503 of
the Internal Revenue Code of 1986—
(1) shall not be counted as new budget authority,
outlays, receipts, or deficit or surplus for purposes
of—
(A) the budget of the United States Govern-
ment as submitted by the President,
(B) the congressional budget (including al-
locations of budget authority and outlays pro-
vided therein), or
(C) the Balanced Budget and Emergency
Deficit Control Act of 1985; and
(2) shall be exempt from any general budget lim-
itation imposed by statute on expenditures and net
lending (budget outlays) of the United States Govern-
ment.
488
SEC. 702. APPLICABILITY.
This title shall apply to fiscal years beginning after
September 30, 1997.
TITLE VIII—RECREATIONAL
BOATING SAFETY PROGRAM
SEC. 801. SHORT TITLE.
This title may be cited as the ‘‘Recreational Boating
Safety Improvement Act of 1998’’.
SEC. 802. AMENDMENTS RELATING TO RECREATIONAL
BOATING SAFETY PROGRAM.
(a) IN GENERAL.—Section 13106 of title 46, United
States Code, is amended—
(1) in subsection (a)—
(A) by striking ‘‘(1)’’ and all that follows
through the first sentence and inserting the fol-
lowing: ‘‘Except as provided in subsection (c)
and subject to such amounts as are provided in
appropriations laws, the Secretary may expend
for each fiscal year the amount transferred for
such fiscal year to the Boat Safety Account
under section 9503(c)(4) of the Internal Revenue
Code of 1986 (26 U.S.C. 9503(c)(4)).’’; and
(B) by striking paragraph (2); and
(2) by striking subsection (c) and inserting the
following:
489
‘‘(c)(1) Of the amount transferred for each fiscal year
to the Boat Safety Account under section 9503(c)(4) of the
Internal Revenue Code of 1986 (26 U.S.C. 9503(c)(4))—
‘‘(A) up to two percent is available to the Sec-
retary to pay the costs of investigations, personnel,
and activities related to administering State rec-
reational boating safety programs;
‘‘(B) up to two percent is available to the Sec-
retary to ensure compliance with chapter 43 of this
title; and
‘‘(C) up to three percent is available to the Sec-
retary to establish, operate, and maintain aids to
navigation that promote primarily recreational boat-
ing safety.
‘‘(2) Amounts made available by this subsection shall
remain available until expended.’’.
(b) COMPREHENSIVE SURVEYS.—Section 13103(c) of
title 46, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(2) by adding at the end the following:
‘‘(2) The Secretary shall use amounts allocated under
this subsection to conduct and report to the Congress the
findings of a comprehensive survey of recreational boating
in the United States, by not later than December 1 of 1999
and of every fifth year thereafter. The amount expended for
490
each survey may not exceed 50 percent of the amounts allo-
cated under this subsection for the fiscal year in which the
survey is conducted.’’.
(c) REQUIREMENT TO USE STATE PROGRAM ASSIST-
ANCE FOR CERTAIN PUBLIC ACCESS FACILITIES.—Section
13106 of title 46, United States Code, is amended by adding
at the end the following:
‘‘(d)(1) The Secretary shall require that of the amount
appropriated for a fiscal year to which this subsection ap-
plies that is allocated and distributed under this chapter
for State recreational boating safety programs, the amount
described in paragraph (2) shall be available only for use
pursuant to subsection (b)(4) for public access facilities for
transient nontrailerable recreational vessels.
‘‘(2) The amount referred to in paragraph (1) is equal
to five percent of the portion of sums appropriated for the
fiscal year to carry out this chapter that is in excess of
$35,000,000.
‘‘(3) This subsection applies to any fiscal year for
which the total amount appropriated to carry out this
chapter exceeds $35,000,000.’’.
(d) EFFECTIVE DATE.—This section shall take effect
October 1, 1998.
491
TITLE IX—RAILROADS
SEC. 901. HIGH-SPEED RAIL.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
26104 of title 49, United States Code, is amended—
(1) by redesignating subsection (d) as subsection
(h); and
(2) by inserting after subsection (c) the following
new subsections:
‘‘(d) FISCAL YEAR 1998.—(1) There are authorized to
be appropriated to the Secretary $10,000,000 for fiscal year
1998, for carrying out section 26101 (including payment
of administrative expenses related thereto).
‘‘(2) There are authorized to be appropriated to the
Secretary $25,000,000 for fiscal year 1998, for carrying out
section 26102 (including payment of administrative ex-
penses related thereto).
‘‘(e) FISCAL YEAR 1999.—(1) There are authorized to
be appropriated to the Secretary $10,000,000 for fiscal year
1999, for carrying out section 26101 (including payment
of administrative expenses related thereto).
‘‘(2) There are authorized to be appropriated to the
Secretary $25,000,000 for fiscal year 1999, for carrying out
section 26102 (including payment of administrative ex-
penses related thereto).
492
‘‘(f) FISCAL YEAR 2000.—(1) There are authorized to
be appropriated to the Secretary $10,000,000 for fiscal year
2000, for carrying out section 26101 (including payment
of administrative expenses related thereto).
‘‘(2) There are authorized to be appropriated to the
Secretary $25,000,000 for fiscal year 2000, for carrying out
section 26102 (including payment of administrative ex-
penses related thereto).
‘‘(g) FISCAL YEAR 2001.—(1) There are authorized to
be appropriated to the Secretary $10,000,000 for fiscal year
2001, for carrying out section 26101 (including payment
of administrative expenses related thereto).
‘‘(2) There are authorized to be appropriated to the
Secretary $25,000,000 for fiscal year 2001, for carrying out
section 26102 (including payment of administrative ex-
penses related thereto).’’.
(b) DEFINITION.—Section 26105(2) of title 49, United
States Code, is amended to read as follows:
‘‘(2) the term ‘high-speed rail’ means all forms
of nonhighway ground transportation that run on
rails or electromagnetic guideways providing trans-
portation service which is—
‘‘(A) reasonably expected to reach sustained
speeds of more than 125 miles per hour; and
493
‘‘(B) made available to members of the gen-
eral public as passengers,
but does not include rapid transit operations within
an urban area that are not connected to the general
rail system of transportation;’’.
SEC. 902. LIGHT DENSITY RAIL LINE PILOT PROJECTS.
(a) AMENDMENT.—Part B of subtitle V of title 49,
United States Code, is amended by adding at the end the
following new chapter:
‘‘CHAPTER 223—LIGHT DENSITY RAIL LINE
PILOT PROJECTS
‘‘Sec.
‘‘22301. Light density rail line pilot projects.
‘‘§ 22301. Light density rail line pilot projects
‘‘(a) GRANTS.—The Secretary of Transportation may
make grants to States that have State rail plans described
in section 22102 (1) and (2), to fund pilot projects that
demonstrate the relationship of light density railroad serv-
ices to the statutory responsibilities of the Secretary, includ-
ing those under title 23.
‘‘(b) LIMITATIONS.—Grants under this section may be
made only for pilot projects for making capital improve-
ments to, and rehabilitating, publicly and privately owned
rail line structures, and may not be used for providing op-
erating assistance.
494
‘‘(c) PRIVATE OWNER CONTRIBUTIONS.—Grants made
under this section for projects on privately owned rail line
structures shall include contributions by the owner of the
rail line structures, based on the benefit to those structures,
as determined by the Secretary.
‘‘(d) STUDY.—The Secretary shall conduct a study of
the pilot projects carried out with grant assistance under
this section to determine the public interest benefits associ-
ated with the light density railroad networks in the States
and their contribution to a multimodal transportation sys-
tem. Not later than March 31, 2003, the Secretary shall re-
port to Congress any recommendations the Secretary con-
siders appropriate regarding the eligibility of light density
rail networks for Federal infrastructure financing.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary to carry out
this section $25,000,000 for each of the fiscal years 1998,
1999, 2000, 2001, 2002, and 2003. Such funds shall remain
available until expended.’’.
(b) TABLE OF CHAPTERS.—The table of chapters of
subtitle V of title 49, United States Code, is amended by
inserting after the item relating to chapter 221 the following
new item:
‘‘223. LIGHT DENSITY RAIL LINE PILOT PROJECTS .................
22301’’.
495
SEC. 903. MIAMI-ORLANDO-TAMPA CORRIDOR PROJECT.
There are authorized to be appropriated to the Sec-
retary of Transportation $200,000,000, to be made avail-
able to the Florida Department of Transportation to reim-
burse the Florida Overland Express project in the Miami-
Orlando-Tampa corridor for capital costs of that project.
The Florida Department of Transportation shall deposit
funds received under this section into a separate account
which shall, to the extent not yet required for the purposes
of this section, be invested in United States Treasury securi-
ties. Funds authorized under this section shall not be count-
ed in calculating the allocation to the State of Florida
under section 111.
SEC. 904. ALASKA RAILROAD.
(a) GRANTS.—The Secretary may make grants to the
Alaska Railroad for capital rehabilitation of and improve-
ments to its passenger services.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$5,250,000 for each of fiscal years 1998 through 2003.
SEC. 905. RAILWAY-HIGHWAY CROSSING HAZARD ELIMI-
NATION IN HIGH SPEED RAIL CORRIDORS.
There is authorized to be appropriated to carry out
section 104(d)(2) of title 23, United States Code, $5,250,000
for each of fiscal years 1998 through 2003.
496
SEC. 906. RAILROAD REHABILITATION AND IMPROVEMENT
FINANCING.
(a) AMENDMENTS.—Title V of the Railroad Revital-
ization and Regulatory Reform Act of 1976 is amended—
(1) by striking sections 501 through 504 and in-
serting the following new sections:
‘‘SEC. 501. DEFINITIONS.
‘‘For purposes of this title:
‘‘(1)(A) The term ‘cost’ means the estimated
long-term cost to the Government of a direct loan or
loan guarantee, calculated on a net present value
basis, excluding administrative costs and any inci-
dental effects on governmental receipts or outlays.
‘‘(B) The cost of a direct loan shall be the net
present value, at the time when the direct loan is dis-
bursed, of the following cash flows:
‘‘(i) Loan disbursements.
‘‘(ii) Repayments of principal.
‘‘(iii) Payments of interest and other pay-
ments by or to the Government over the life of
the loan after adjusting for estimated defaults,
prepayments, fees, penalties, and other recover-
ies.
‘‘(C) The cost of a loan guarantee shall be the net
present value when a guaranteed loan is disbursed, of
the following cash flows:
497
‘‘(i) Estimated payments by the Govern-
ment to cover defaults and delinquencies, interest
subsidies, or other payments.
‘‘(ii) Estimated payments to the Govern-
ment, including origination and other fees, pen-
alties, and recoveries.
‘‘(D) Any Government action that alters the esti-
mated net present value of an outstanding direct loan
or loan guarantee (except modifications within the
terms of existing contracts or through other existing
authorities) shall be counted as a change in the cost
of that direct loan or loan guarantee. The calculation
of such changes shall be based on the estimated
present value of the direct loan or loan guarantee at
the time of modification.
‘‘(E) In estimating net present values, the dis-
count rate shall be the average interest rate on mar-
ketable Treasury securities of similar maturity to the
direct loan or loan guarantee for which the estimate
is being made.
‘‘(2) The term ‘direct loan’ means a disburse-
ment of funds by the Government to a non-Federal
borrower under a contract that requires the repay-
ment of such funds. The term includes the purchase
of, or participation in, a loan made by another lend-
498
er. The term does not include the acquisition of a fed-
erally guaranteed loan in satisfaction of default
claims.
‘‘(3) The term ‘direct loan obligation’ means a
binding agreement by the Secretary to make a direct
loan when specified conditions are fulfilled by the bor-
rower.
‘‘(4) The term ‘intermodal’ means of or relating
to the connection between rail service and other modes
of transportation, including all parts of facilities at
which such connection is made.
‘‘(5) The term ‘loan guarantee’ means any guar-
antee, insurance, or other pledge with respect to the
payment of all or a part of the principal or interest
on any debt obligation of a non-Federal borrower to
a non-Federal lender, but does not include the insur-
ance of deposits, shares, or other withdrawable ac-
counts in financial institutions.
‘‘(6) The term ‘loan guarantee commitment’
means a binding agreement by the Secretary to make
a loan guarantee when specified conditions are ful-
filled by the borrower, the lender, or any other party
to the guarantee agreement.
499
‘‘SEC. 502. DIRECT LOANS AND LOAN GUARANTEES.
‘‘(a) GENERAL AUTHORITY.—The Secretary may pro-
vide direct loans and loan guarantees to State and local
governments, government sponsored authorities and cor-
porations, railroads, and joint ventures that include at least
1 railroad.
‘‘(b) ELIGIBLE PURPOSES.—
‘‘(1) IN GENERAL.—Direct loans and loan guar-
antees under this section shall be used to—
‘‘(A) acquire, improve, or rehabilitate inter-
modal or rail equipment or facilities, including
track, components of track, bridges, yards, build-
ings, and shops;
‘‘(B) refinance outstanding debt incurred
for the purposes described in subparagraph (A);
or
‘‘(C) develop or establish new intermodal or
railroad facilities.
‘‘(2) OPERATING EXPENSES NOT ELIGIBLE.—Di-
rect loans and loan guarantees under this section
shall not be used for railroad operating expenses.
‘‘(c) PRIORITY PROJECTS.—In granting applications
for direct loans or guaranteed loans under this section, the
Secretary shall give priority to projects that—
‘‘(1) enhance public safety;
‘‘(2) enhance the environment;
500
‘‘(3) promote economic development;
‘‘(4) enable United States companies to be more
competitive in international markets;
‘‘(5) are endorsed by the plans prepared under
section 135 of title 23, United States Code, by the
State or States in which they are located; or
‘‘(6) preserve rail or intermodal service to small
communities or rural areas.
‘‘(d) EXTENT OF AUTHORITY.—The aggregate unpaid
principal amounts of obligations under direct loans and
loan guarantees made under this section shall not exceed
$5,000,000,000 at any one time. Of this amount, not less
than $1,000,000,000 shall be available solely for projects
primarily benefiting freight railroads other than Class I
carriers.
‘‘(e) RATES OF INTEREST.—
‘‘(1) DIRECT
LOANS.—The Secretary shall re-
quire interest to be paid on a direct loan made under
this section at a rate not less than that necessary to
recover the cost of making the loan.
‘‘(2) LOAN
GUARANTEES.—The Secretary shall
not make a loan guarantee under this section if the
interest rate for the loan exceeds that which the Sec-
retary determines to be reasonable, taking into consid-
eration the prevailing interest rates and customary
501
fees incurred under similar obligations in the private
capital market.
‘‘(f) INFRASTRUCTURE PARTNERS.—
‘‘(1) AUTHORITY OF SECRETARY.—In lieu of or
in combination with appropriations of budget author-
ity to cover the costs of direct loans and loan guaran-
tees as required under section 504(b)(1) of the Federal
Credit Reform Act of 1990, the Secretary may accept
on behalf of an applicant for assistance under this
section a commitment from a non-Federal source to
fund in whole or in part credit risk premiums with
respect to the loan that is the subject of the applica-
tion. In no event shall the aggregate of appropriations
of budget authority and credit risk premiums de-
scribed in this paragraph with respect to a direct
loan or loan guarantee be less than the cost of that
direct loan or loan guarantee.
‘‘(2) CREDIT RISK PREMIUM AMOUNT.—The Sec-
retary shall determine the amount required for credit
risk premiums under this subsection on the basis of—
‘‘(A) the circumstances of the applicant, in-
cluding the amount of collateral offered;
‘‘(B) the proposed schedule of loan disburse-
ments;
502
‘‘(C) historical data on the repayment his-
tory of similar borrowers;
‘‘(D) consultation with the Congressional
Budget Office; and
‘‘(E) any other factors the Secretary consid-
ers relevant.
‘‘(3) PAYMENT OF PREMIUMS.—Credit risk pre-
miums under this subsection shall be paid to the Sec-
retary before the disbursement of loan amounts.
‘‘(4) COHORTS OF LOANS.—In order to maintain
sufficient balances of credit risk premiums to ade-
quately protect the Federal Government from risk of
default, while minimizing the length of time the Gov-
ernment retains possession of those balances, the Sec-
retary shall establish cohorts of loans. When all obli-
gations attached to a cohort of loans have been satis-
fied, credit risk premiums paid for the cohort, and in-
terest accrued thereon, which were not used to miti-
gate losses shall be returned to the original source on
a pro rata basis.
‘‘(g) PREREQUISITES
FOR ASSISTANCE.—The Sec-
retary shall not make a direct loan or loan guarantee under
this section unless the Secretary has made a finding in
writing that—
503
‘‘(1) repayment of the obligation is required to be
made within a term of not more than 25 years from
the date of its execution;
‘‘(2) the direct loan or loan guarantee is justified
by the present and probable future demand for rail
services or intermodal facilities;
‘‘(3) the applicant has given reasonable assur-
ances that the facilities or equipment to be acquired,
rehabilitated, improved, developed, or established with
the proceeds of the obligation will be economically and
efficiently utilized;
‘‘(4) the obligation can reasonably be repaid,
using an appropriate combination of credit risk pre-
miums and collateral offered by the applicant to pro-
tect the Federal Government; and
‘‘(5) the purposes of the direct loan or loan guar-
antee are consistent with subsection (b).
‘‘(h) CONDITIONS
OF ASSISTANCE.—The Secretary
shall, before granting assistance under this section, require
the applicant to agree to such terms and conditions as are
sufficient, in the judgment of the Secretary, to ensure that,
as long as any principal or interest is due and payable
on such obligation, the applicant, and any railroad or rail-
road partner for whose benefit the assistance is intended—
504
‘‘(1) will not use any funds or assets from rail-
road or intermodal operations for purposes not relat-
ed to such operations, if such use would impair the
ability of the applicant, railroad, or railroad partner
to provide rail or intermodal services in an efficient
and economic manner, or would adversely affect the
ability of the applicant, railroad, or railroad partner
to perform any obligation entered into by the appli-
cant under this section;
‘‘(2) will, consistent with its capital resources,
maintain its capital program, equipment, facilities,
and operations on a continuing basis; and
‘‘(3) will not make any discretionary dividend
payments that unreasonably conflict with the pur-
poses stated in subsection (b).
‘‘SEC. 503. ADMINISTRATION OF DIRECT LOANS AND LOAN
GUARANTEES.
‘‘(a) APPLICATIONS.—The Secretary shall prescribe the
form and contents required of applications for assistance
under section 502, to enable the Secretary to determine the
eligibility of the applicant’s proposal, and shall establish
terms and conditions for direct loans and loan guarantees
made under that section.
‘‘(c) ASSIGNMENT OF LOAN GUARANTEES.—The holder
of a loan guarantee made under section 502 may assign
505
the loan guarantee in whole or in part, subject to such re-
quirements as the Secretary may prescribe.
‘‘(d) MODIFICATIONS.—The Secretary may approve
the modification of any term or condition of a direct loan,
loan guarantee, direct loan obligation, or loan guarantee
commitment, including the rate of interest, time of payment
of interest or principal, or security requirements, if the Sec-
retary finds in writing that—
‘‘(1) the modification is equitable and is in the
overall best interests of the United States; and
‘‘(2) consent has been obtained from the appli-
cant and, in the case of a loan guarantee or loan
guarantee commitment, the holder of the obligation.
‘‘(e) COMPLIANCE.—The Secretary shall assure compli-
ance, by an applicant, any other party to the loan, and
any railroad or railroad partner for whose benefit assist-
ance is intended, with the provisions of this title, regula-
tions issued hereunder, and the terms and conditions of the
direct loan or loan guarantee, including through regular
periodic inspections.
‘‘(f) COMMERCIAL VALIDITY.—For purposes of claims
by any party other than the Secretary, a loan guarantee
or loan guarantee commitment shall be conclusive evidence
that the underlying obligation is in compliance with the
provisions of this title, and that such obligation has been
506
approved and is legal as to principal, interest, and other
terms. Such a guarantee or commitment shall be valid and
incontestable in the hands of a holder thereof, including the
original lender or any other holder, as of the date when
the Secretary granted the application therefor, except as to
fraud or material misrepresentation by such holder.
‘‘(g) DEFAULT.—The Secretary shall prescribe regula-
tions setting forth procedures in the event of default on a
loan made or guaranteed under section 502. The Secretary
shall ensure that each loan guarantee made under that sec-
tion contains terms and conditions that provide that—
‘‘(1) if a payment of principal or interest under
the loan is in default for more than 30 days, the Sec-
retary shall pay to the holder of the obligation, or the
holder’s agent, the amount of unpaid guaranteed in-
terest;
‘‘(2) if the default has continued for more than
90 days, the Secretary shall pay to the holder of the
obligation, or the holder’s agent, 90 percent of the un-
paid guaranteed principal;
‘‘(3) after final resolution of the default, through
liquidation or otherwise, the Secretary shall pay to
the holder of the obligation, or the holder’s agent, any
remaining amounts guaranteed but which were not
recovered through the default’s resolution;
507
‘‘(4) the Secretary shall not be required to make
any payment under paragraphs (1) through (3) if the
Secretary finds, before the expiration of the periods
described in such paragraphs, that the default has
been remedied; and
‘‘(5) the holder of the obligation shall not receive
payment or be entitled to retain payment in a total
amount which, together with all other recoveries (in-
cluding any recovery based upon a security interest
in equipment or facilities) exceeds the actual loss of
such holder.
‘‘(h) RIGHTS OF THE SECRETARY.—
‘‘(1) SUBROGATION.—If the Secretary makes
payment to a holder, or a holder’s agent, under sub-
section (g) in connection with a loan guarantee made
under section 502, the Secretary shall be subrogated
to all of the rights of the holder with respect to the
obligor under the loan.
‘‘(2) DISPOSITION OF PROPERTY.—The Secretary
may complete, recondition, reconstruct, renovate, re-
pair, maintain, operate, charter, rent, sell, or other-
wise dispose of any property or other interests ob-
tained pursuant to this section. The Secretary shall
not be subject to any Federal or State regulatory re-
quirements when carrying out this paragraph.
508
‘‘(i) ACTION AGAINST OBLIGOR.—The Secretary may
bring a civil action in an appropriate Federal court in the
name of the United States in the event of a default on a
direct loan made under section 502, or in the name of the
United States or of the holder of the obligation in the event
of a default on a loan guaranteed under section 502. The
holder of a guarantee shall make available to the Secretary
all records and evidence necessary to prosecute the civil ac-
tion. The Secretary may accept property in full or partial
satisfaction of any sums owed as a result of a default. If
the Secretary receives, through the sale or other disposition
of such property, an amount greater than the aggregate of—
‘‘(1) the amount paid to the holder of a guaran-
tee under subsection (g) of this section; and
‘‘(2) any other cost to the United States of rem-
edying the default,
the Secretary shall pay such excess to the obligor.
‘‘(j) BREACH OF CONDITIONS.—The Attorney General
shall commence a civil action in an appropriate Federal
court to enjoin any activity which the Secretary finds is
in violation of this title, regulations issued hereunder, or
any conditions which were duly agreed to, and to secure
any other appropriate relief.
‘‘(k) ATTACHMENT.—No attachment or execution may
be issued against the Secretary, or any property in the con-
509
trol of the Secretary, prior to the entry of final judgment
to such effect in any State, Federal, or other court.
‘‘(l) INVESTIGATION CHARGE.—The Secretary may
charge and collect from each applicant a reasonable charge
for appraisal of the value of the equipment or facilities for
which the direct loan or loan guarantee is sought, and for
making necessary determinations and findings. Such
charge shall not aggregate more than one-half of 1 percent
of the principal amount of the obligation.’’;
(2) by striking sections 505 through 515 (other
than 511(c)), 517, and 518;
(3) in section 511(c) by striking ‘‘this section’’
and inserting ‘‘section 502’’;
(4) by moving subsection (c) of section 511 (as
amended by paragraph (3) of this section) from sec-
tion 511 to section 503 (as inserted by paragraph (1)
of this section), inserting it after subsection (a), and
redesignating it as subsection (b); and
(5) by redesignating section 516 as section 504.
(b) TECHNICAL AND CONFORMING PROVISIONS.—
(1) TABLE OF CONTENTS.—The table of contents
of title V of the Railroad Revitalization and Regu-
latory Reform Act of 1976 is amended by striking the
items relating to sections 502 through 518 and insert-
ing the following:
‘‘Sec. 502. Direct loans and loan guarantees.
510
‘‘Sec. 503. Administration of direct loans and loan guarantees.
‘‘Sec. 504. Employee protection.’’.
(2) SAVINGS PROVISION.—A transaction entered
into under the authority of title V of the Railroad Re-
vitalization and Regulatory Reform Act of 1976 (45
U.S.C. 821 et seq.) before the date of the enactment
of this Act shall be administered until completion
under its terms as if this Act were not enacted.
(3) REPEAL.—Section 211(i) of the Regional
Rail Reorganization Act of 1973 (45 U.S.C. 721(i))
is repealed.
TITLE X—CONDITIONS FOR
IMPLEMENTATION OF FUNDING
SEC. 1001. CONDITIONS FOR IMPLEMENTATION OF FUND-
ING.
(a) PURPOSE.—The purpose of this section is to ensure
that all additional spending provided by this Act above the
levels assumed for those programs under section 257 of the
Balanced Budget and Emergency Deficit Control Act of
1985 in the baseline projections contained in the Congres-
sional Budget Office document entitled ‘‘Revised Baseline
Budget Projections for Fiscal Years 1999–2008,’’ dated
March 3, 1998, except that for programs with discretionary
outlays the projections shall assume obligation authority at
the 1998 enacted level and that the programs shall be ad-
justed for the transfer of general fund programs to the trust
511
fund, is fully offset through mandatory and discretionary
offsets set forth in this Act.
(b) DUTY IMPOSED ON SECRETARY.—The Secretary of
Transportation shall not apportion, allocate, or obligate
any funds authorized or provided by this Act unless it con-
tains a section stating that the conditions set forth in sub-
section (c) have been met.
(c) ENUMERATION
OF SPECIFIC CONDITIONS.—The
conditions referred to in subsection (b) are that this Act
shall contain provisions that offset any increase in outlays
from the Highway Trust Fund caused by this Act above
the levels assumed for those programs under section 257 of
the Balanced Budget and Emergency Deficit Control Act
of 1985 in the baseline projections contained in the Congres-
sional Budget Office document entitled ‘‘Revised Baseline
Budget Projections for Fiscal Years 1999–2008,’’ dated
March 3, 1998, except that for programs with discretionary
outlays the projections shall assume obligation authority at
the 1998 enacted level and that the programs shall be ad-
justed for the transfer of general fund programs to the trust
fund, by reducing mandatory and discretionary spending.
512
TITLE 
XI—EXTENSION 
AND
MODIFICATION OF HIGHWAY-
RELATED TAXES AND TRUST
FUND
Sec. 1101. Short title; amendment of 1986 Code.
Sec. 1102. Extension of highway-related taxes and trust fund.
Sec. 1103. Modifications to Highway Trust Fund.
Sec. 1104. Provisions relating to Aquatic Resources Trust
Fund.
Sec. 1105. Repeal of excise tax on tires.
Sec. 1106. Repeal of 4.3 cent excise tax on diesel fuel and gaso-
line used in trains.
Sec. 1107. Delay in effective date of new requirement for ap-
proved diesel or kerosene terminals.
Sec. 1108. Simplified fuel tax refund procedures.
Sec. 1109. Repeal of National Recreational Trails Trust Fund.
SEC. 1101. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) SHORT TITLE.—This title may be cited
as the ‘‘Surface Transportation Revenue Act
of 1998’’.
(b) AMENDMENT OF 1986 CODE.—Except as
otherwise expressly provided, whenever in
this title an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a
section or other provision, the reference shall
be considered to be made to a section or other
provision of the Internal Revenue Code of
1986.
SEC. 1102. EXTENSION OF HIGHWAY-RELATED TAXES AND
TRUST FUND.
(a) EXTENSION OF TAXES.—
513
(1) IN GENERAL.—The following provi-
sions are each amended by striking
‘‘1999’’ each place it appears and insert-
ing ‘‘2005’’:
(A) Section 4041(a)(1)(C)(iii)(I) (re-
lating to rate of tax on certain buses).
(B) Section 4041(a)(2)(B) (relating
to rate of tax on special motor fuels),
as amended by section 907(a)(1) of the
Taxpayer Relief Act of 1997.
(C) Section 4041(m)(1)(A) (relating
to certain alcohol fuels), as amended
by section 907(b) of the Taxpayer Re-
lief Act of 1997.
(D) Section 4051(c) (relating to
termination).
(E) Section 4081(d)(1) (relating to
termination).
(F) Section 4481(e) (relating to pe-
riod tax in effect).
(G) Section 4482(c)(4) (relating to
taxable period).
(H) Section 4482(d) (relating to
special rule for taxable period in
which termination date occurs).
514
(2) TAX
ON
TIRES
EXTENDED
ONLY
THROUGH
SEPTEMBER
30, 2000.—Section
4071(d) 
(relating 
to 
termination) 
is
amended by striking ‘‘1999’’ and inserting
‘‘2000’’.
(3) OTHER PROVISIONS.—
(A) FLOOR STOCKS REFUNDS.—Sec-
tion 
6412(a)(1) 
(relating 
to 
floor
stocks refunds) is amended—
(i) by striking ‘‘1999’’ each
place it appears and inserting
‘‘2005’’, and
(ii) by striking ‘‘2000’’ each
place it appears and inserting
‘‘2006’’.
(B) 
INSTALLMENT
PAYMENTS
OF
HIGHWAY
USE
TAX.—Section 6156(e)(2)
(relating to installment payments of
highway use tax on use of highway
motor vehicles) is amended by strik-
ing ‘‘1999’’ and inserting ‘‘2005’’.
(b) EXTENSION OF CERTAIN EXEMPTIONS.—
The following provisions are each amended
by striking ‘‘1999’’ and inserting ‘‘2005’’:
515
(1) Section 4221(a) (relating to certain
tax-free sales).
(2) Section 4483(g) (relating to termi-
nation of exemptions for highway use
tax).
(c) EXTENSION OF DEPOSITS INTO, AND CER-
TAIN TRANSFERS FROM, TRUST FUND.—
(1) IN GENERAL.—Subsection (b), and
paragraphs (2) and (3) of subsection (c),
of section 9503 (relating to the Highway
Trust Fund) are each amended—
(A) by striking ‘‘1999’’ each place
it appears (other than in subsection
(b)(4)) and inserting ‘‘2005’’, and
(B) by striking ‘‘2000’’ each place
it appears and inserting ‘‘2006’’.
(2) 
MOTORBOAT
AND
SMALL-ENGINE
FUEL TAX TRANSFERS.—
(A) 
IN
GENERAL.—Paragraphs
(4)(A)(i) and (5)(A) of section 9503(c)
are each amended by striking ‘‘1998’’
and inserting ‘‘2003’’.
(B) CONFORMING
AMENDMENTS
TO
LAND
AND
WATER
CONSERVATION
FUND.—Section 201(b) of the Land and
516
Water Conservation Fund Act of 1965
(16 U.S.C. 460l–11(b)) is amended—
(i) by striking ‘‘1997’’ and in-
serting ‘‘2003’’, and
(ii) by striking ‘‘1998’’ each
place it appears and inserting
‘‘2004’’.
(3) 
CONFORMING
AMENDMENT.—The
heading for paragraph (3) of section
9503(c) is amended to read as follows:
‘‘(3) FLOOR STOCKS REFUNDS.—’’.
(d) EXTENSION AND EXPANSION OF EXPENDI-
TURES FROM TRUST FUND.—
(1) HIGHWAY ACCOUNT.—
(A) EXTENSION OF EXPENDITURE AU-
THORITY.—Paragraph (1) of section
9503(c) is amended by striking ‘‘1998’’
and inserting ‘‘2003’’.
(B) 
EXPANSION
OF
PURPOSES.—
Paragraph (1) of section 9503(c) is
amended—
(i) by striking ‘‘or’’ at the end
of subparagraph (C), and
(ii) by striking ‘‘1991.’’ in sub-
paragraph (D) and all that follows
517
through the end of paragraph (1)
and inserting ‘‘1991, or
‘‘(E) authorized to be paid out of
the Highway Trust Fund under the
Building Efficient Surface Transpor-
tation and Equity Act of 1998.
In determining the authorizations under
the Acts referred to in the preceding sub-
paragraphs, such Acts shall be applied as
in effect on the date of the enactment of
the Building Efficient Surface Transpor-
tation and Equity Act of 1998.’’.
(2) MASS TRANSIT ACCOUNT.—
(A) EXTENSION OF EXPENDITURE AU-
THORITY.—Paragraph (3) of section
9503(e) is amended by striking ‘‘1998’’
and inserting ‘‘2003’’.
(B) 
EXPANSION
OF
PURPOSES.—
Paragraph (3) of section 9503(e) is
amended—
(i) by striking ‘‘or’’ at the end
of subparagraph (A),
(ii) by adding ‘‘or’’ at the end
of subparagraph (B), and
518
(iii) by striking all that fol-
lows subparagraph (B) and insert-
ing:
‘‘(C) the Building Efficient Sur-
face Transportation and Equity Act of
1998,
as such sections and Acts are in effect on
the date of the enactment of the Building
Efficient Surface Transportation and Eq-
uity Act of 1998.’’.
(e) TECHNICAL CORRECTION RELATING
TO
TRANSFERS TO MASS TRANSIT ACCOUNT.—
(1) IN GENERAL.—Section 9503(e)(2) is
amended by striking the last sentence
and inserting the following: ‘‘For pur-
poses of the preceding sentence, the term
‘mass transit portion’ means, for any fuel
with respect to which tax was imposed
under section 4041 or 4081 and otherwise
deposited into the Highway Trust Fund,
the amount determined at the rate of—
‘‘(A) except as otherwise provided
in this sentence, 2.86 cents per gallon,
‘‘(B) 1.43 cents per gallon in the
case of any partially exempt meth-
519
anol or ethanol fuel (as defined in
section 4041(m)) none of the alcohol
in which consists of ethanol,
‘‘(C) 1.86 cents per gallon in the
case of liquefied natural gas,
‘‘(D) 2.13 cents per gallon in the
case of liquefied petroleum gas, and
‘‘(E) 9.71 cents per MCF (deter-
mined at standard temperature and
pressure) in the case of compressed
natural gas.’’.
(2) EFFECTIVE DATE.—The amendment
made by paragraph (1) shall take effect
as if included in the amendment made by
section 901(b) of the Taxpayer Relief Act
of 1997.
SEC. 1103. MODIFICATIONS TO HIGHWAY TRUST FUND.
(a) DETERMINATION
OF TRUST FUND BAL-
ANCES AFTER SEPTEMBER 30, 1998.—
(1) IN GENERAL.—Section 9503 (relat-
ing to Highway Trust Fund) is amended
by adding at the end the following new
subsection:
‘‘(f) DETERMINATION OF TRUST FUND BAL-
ANCES AFTER SEPTEMBER 30, 1998.—For pur-
520
poses of determining the balances of the High-
way Trust Fund and the Mass Transit Account
after September 30, 1998—
‘‘(1) the opening balance of the High-
way Trust Fund (other than the Mass
Transit Account) on October 1, 1998, shall
be $8,000,000,000,
‘‘(2) the opening balance of the Mass
Transit Account on such date shall be
$5,500,000,000, and
‘‘(3) no interest on any obligation held
by such Fund shall be credited to such
Fund if such interest accrues after Sep-
tember 30, 1998.
The Secretary shall cancel obligations held by
the Highway Trust Fund to reflect the reduc-
tion in the balances under this subsection.’’.
(2) EFFECTIVE DATE.—The amendment
made by paragraph (1) shall take effect
on October 1, 1998.
(b) REPEAL
OF LIMITATION
ON EXPENDI-
TURES ADDED
BY TAXPAYER RELIEF ACT
OF
1997.—
(1) IN GENERAL.—Subsection (c) of sec-
tion 9503 (relating to expenditures from
521
Highway Trust Fund) is amended by
striking paragraph (7).
(2) EFFECTIVE DATE.—The amendment
made by paragraph (1) shall take effect
as if included in the amendments made
by section 901 of the Taxpayer Relief Act
of 1997.
(c) LIMITATION
ON EXPENDITURE AUTHOR-
ITY.—Subsection (b) of section 9503 (relating
to transfers to Highway Trust Fund) is
amended by adding at the end the following
new paragraph:
‘‘(6) LIMITATION ON TRANSFERS TO HIGH-
WAY TRUST FUND.—
‘‘(A) IN GENERAL.—Except as pro-
vided 
in 
subparagraph 
(B), 
no
amount may be appropriated to the
Highway Trust Fund on and after the
date of any expenditure from the
Highway Trust Fund which is not
permitted by this section. The deter-
mination of whether an expenditure
is so permitted shall be made without
regard to—
522
‘‘(i) 
any 
provision 
of 
law
which is not contained or ref-
erenced in this title or in a reve-
nue Act, and
‘‘(ii) whether such provision
of law is a subsequently enacted
provision or directly or indirectly
seeks to waive the application of
this paragraph.
‘‘(B) EXCEPTION FOR PRIOR OBLIGA-
TIONS.—Subparagraph (A) shall not
apply to any expenditure to liquidate
any contract entered into (or for any
amount otherwise obligated) before
October 1, 2003, in accordance with
the provisions of this section.’’.
(d) MODIFICATION
OF MASS TRANSIT AC-
COUNT RULES ON ADJUSTMENTS OF APPORTION-
MENTS.—Paragraph (4) of section 9503(e) is
amended to read as follows:
‘‘(4) LIMITATION.—Rules similar to the
rules of subsection (d) shall apply to the
Mass Transit Account.’’.
523
SEC. 1104. PROVISIONS RELATING TO AQUATIC RESOURCES
TRUST FUND.
(a) INCREASED TRANSFERS.—
(1)(A) Effective with respect to taxes
imposed after September 30, 1999, and be-
fore October 1, 2000, subparagraph (D) of
section 9503(b)(4) is amended by striking
‘‘11.5 cents’’ and inserting ‘‘14.9 cents’’.
(B) Effective with respect to taxes im-
posed after September 30, 2000, para-
graph (4) of section 9503(b) is amended
by striking subparagraph (D) and by re-
designating subparagraphs (E), (F), and
(G) as subparagraphs (D), (E), and (F), re-
spectively.
(2) 
Subparagraph 
(A) 
of 
section
9503(c)(4), 
as 
amended 
by 
section
1102(c)(2)(A), is amended to read as fol-
lows:
‘‘(A) TRANSFERS TO BOAT SAFETY AC-
COUNT.—
‘‘(i) 
IN
GENERAL.—The 
Sec-
retary shall pay from time to time
from the Highway Trust Fund
into the Boat Safety Account in
the 
Aquatic 
Resources 
Trust
524
Fund amounts (as determined by
the Secretary) equivalent to one-
half of the motorboat fuel taxes
received after September 30, 1998,
and before October 1, 2003.
‘‘(ii) 
LIMIT
ON
AMOUNT
IN
FUND.—No amount shall be trans-
ferred under this subparagraph
during any fiscal year if the Sec-
retary 
determines 
that 
such
transfer would result in increas-
ing the unobligated balance in
the Boat Safety Account to a sum
in excess of one-half of the total
amount received as motorboat
fuel taxes during the preceding
fiscal year.’’.
(b) EXTENSION AND EXPANSION OF EXPENDI-
TURE
AUTHORITY
FROM
BOAT
SAFETY
AC-
COUNT.—Section 9504(c) (relating to expendi-
tures from Boat Safety Account) is amended—
(1) by striking ‘‘1998’’ and inserting
‘‘2003’’, and
(2) by striking ‘‘October 1, 1988’’ and
inserting ‘‘the date of the enactment of
525
the Building Efficient Surface Transpor-
tation and Equity Act of 1998’’.
(c) LIMITATION
ON EXPENDITURE AUTHOR-
ITY.—Section 9504 (relating to Aquatic Re-
sources Trust Fund) is amended by redesig-
nating subsection (d) as subsection (e) and by
inserting after subsection (c) the following:
‘‘(d) LIMITATION ON TRANSFERS TO AQUATIC
RESOURCES TRUST FUND.—
‘‘(1) IN GENERAL.—Except as provided
in paragraph (2), no amount may be ap-
propriated or paid to any Account in the
Aquatic Resources Trust Fund on and
after the date of any expenditure from
any such Account which is not permitted
by this section. The determination of
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 provi-
sion or directly or indirectly seeks to
526
waive the application of this sub-
section.
‘‘(2) EXCEPTION
FOR
PRIOR
OBLIGA-
TIONS.—Paragraph (1) shall not apply to
any expenditure to liquidate any contract
entered into (or for any amount other-
wise obligated) before October 1, 2003, in
accordance with the provisions of this
section.’’.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as otherwise
provided in this section, the amendments
made by this section shall take effect on
the date of the enactment of this Act.
(2) 
INCREASED
TRANSFERS.—The
amendment made by subsection (a)(2)
shall take effect on October 1, 1998.
SEC. 1105. REPEAL OF EXCISE TAX ON TIRES.
(a) IN GENERAL.—Subchapter A of chapter
32 (relating to automotive and related items)
is amended by striking part II.
(b) CONFORMING AMENDMENTS.—
(1) Section 4051 is amended by strik-
ing subsection (d).
(2) Section 4218 is amended—
527
(A) by striking ‘‘(other than a tire
taxable under section 4071)’’ in sub-
section (a),
(B) by striking subsection (b), and
(C) by redesignating subsection
(c) as subsection (b).
(3)(A) The third sentence of section
4221(a) is amended to read as follows:
‘‘Paragraphs (4) and (5) shall not apply to
the tax imposed by section 4051 on and
after October 1, 2005.’’
(B) Subsection (e) of section 4221 is
amended—
(i) by striking paragraphs (2) and
(3),
(ii) by striking so much of such
subsection as precedes the text of
paragraph (1) and inserting:
‘‘(e) RECIPROCITY REQUIRED
IN CASE
OF
CIVIL AIRCRAFT.—’’, and
(iii) by moving such text 2 ems to
the left.
(4) Paragraph (1) of section 4223(b) is
amended by striking ‘‘section 4218(c)’’
and inserting ‘‘section 4218(b)’’.
528
(5)(A) Paragraph (1) of section 6412(a)
is amended—
(i) by striking ‘‘TIRES
AND
TAX-
ABLE’’ in the heading and inserting
‘‘TAXABLE’’, and
(ii) by striking ‘‘4071 or’’.
(B) Subsection (c) of section 6412 is
amended by striking ‘‘sections 4071 and’’
and inserting ‘‘section’’.
(6)(A) Paragraph (1) of section 6416(b)
is amended—
(i) by striking ‘‘or (C)’’ in subpara-
graph (A), and
(ii) by striking subparagraph (C).
(B) Paragraph (2) of section 6416(b) is
amended by adding ‘‘or’’ at the end of
subparagraph (D), by striking subpara-
graph (E), and by redesignating subpara-
graph (F) as subparagraph (E).
(C) Subsection (b) of section 6416 is
amended by striking paragraph (4) and
redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively.
529
(D) Subsection (d) of section 4216 is
amended by striking ‘‘section 6416(b)(5)’’
and inserting ‘‘section 6416(b)(4)’’.
(7) Paragraph (1) of section 9503(b) is
amended by striking subparagraphs (C)
and (D) and by redesignating subpara-
graphs (E) and (F) as subparagraphs (C)
and (D), respectively.
(8) Paragraph (5) of section 9503(b) is
amended by striking ‘‘and (E)’’ and insert-
ing ‘‘and (C)’’.
(9) The table of parts for subchapter
A of chapter 32 is amended by striking
the item relating to part II.
(c) EFFECTIVE
DATE.—The amendments
made by this section shall take effect on Octo-
ber 1, 2000; except that the amendment made
by subsection (b)(6) shall not apply to
amounts received in the Treasury with re-
spect to taxes imposed before such date.
SEC. 1106. REPEAL OF 4.3 CENT EXCISE TAX ON DIESEL
FUEL AND GASOLINE USED IN TRAINS.
(a) DIESEL FUEL.—
530
(1) IN GENERAL.—Clause (ii) of section
4041(a)(1)(C) (relating to rate of tax) is
amended to read as follows:
‘‘(ii) RATE OF TAX ON TRAINS.—
In the case of any sale for use, or
use, of diesel fuel in a train, the
rate of tax imposed by this para-
graph shall be—
‘‘(I) 5.55 cents per gallon
after September 30, 1995, and
before October 1, 1999,
‘‘(II) 4.3 cents per gallon
after September 30, 1999, and
before October 1, 2000, and
‘‘(III) zero after September
30, 2000.’’.
(2) 
CONFORMING
AMENDMENT.—Sub-
paragraph (B) of section 6427(l)(3) is
amended to read as follows:
‘‘(B) so much of the rate specified
in section 4081(a)(2)(A) as does not
exceed—
‘‘(i) 5.55 cents per gallon after
September 30, 1995, and before
October 1, 1999,