To amend part C of the Balanced Budget and Emergency Deficit Control Act of 1985 to extend the discretionary spending limits.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Discretionary Spending Control Act 
of 2004''.

SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS.

    (a) Discretionary Spending Limits.--(1) Section 251(c)(1) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (relating to 
fiscal year 2004) is amended--
            (A) in subparagraph (A), by striking ``$31,834,000,000'' 
        and inserting ``$28,052,000,000''; and
            (B) in subparagraph (B), by striking ``$1,462,000,000'' and 
        inserting ``$1,436,000,000'' and by striking ``$6,629,000,000'' 
        and inserting ``$6,271,000,000''.
    (2) Section 251(c)(2) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by inserting a dash after ``2005'', by 
redesignating the remaining portion of such paragraph as subparagraph 
(D) and by moving it two ems to the right, and by inserting after the 
dash the following new subparagraphs:
                    ``(A) for the general purpose discretionary 
                category: $817,726,000,000 in new budget authority and 
                $866,056,000,000 in outlays;
                    ``(B) for the highway category: $30,585,000,000 in 
                outlays; and
                    ``(C) for the mass transit category: $1,554,000,000 
                in new budget authority and $6,787,000,000 in outlays; 
                and''.
    (3) Section 251(c)(3) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by inserting a dash after ``2006'', by 
redesignating the remaining portion of such paragraph as subparagraph 
(D) and by moving it two ems to the right, and by inserting after the 
dash the following new subparagraphs:
                    ``(A) for the general purpose discretionary 
                category: $831,417,000,000 in new budget authority and 
                $846,280,000,000 in outlays;
                    ``(B) for the highway category: $33,271,000,000 in 
                outlays; and
                    ``(C) for the mass transit category: $1,671,000,000 
                in new budget authority and $7,585,000,000 in outlays; 
                and''.
    (4) Section 251(c) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by redesignating paragraphs (4) through 
(9) as paragraphs (7) through (12) and inserting after paragraph (3) 
the following new paragraphs:
            ``(4) with respect to fiscal year 2007--
                    ``(A) for the highway category: $35,248,000,000 in 
                outlays; and
                    ``(B) for the mass transit category: $1,785,000,000 
                in new budget authority and $8,110,000,000 in outlays;
            ``(5) with respect to fiscal year 2008--
                    ``(A) for the highway category: $36,587,000,000 in 
                outlays; and
                    ``(B) for the mass transit category: $1,890,000,000 
                in new budget authority and $8,517,000,000 in outlays; 
                and
            ``(6) with respect to fiscal year 2009--
                    ``(A) for the highway category: $37,682,000,000 in 
                outlays; and
                    ``(B) for the mass transit category: $2,017,000,000 
                in new budget authority and $8,968,000,000 in 
                outlays;''.
    (b) Definitions.--Section 250(c)(4) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended--
            (1) in subparagraph (B), by--
                    (A) striking ``the Transportation Equity Act for 
                the 21st Century and the Surface Transportation 
                Extension Act of 2003'' and inserting ``the 
                Transportation Equity Act: A Legacy for Users''; and
                    (B) inserting before the period at the end the 
                following new clauses:
                    ``(v) 69-8158-0-7-401 (Motor Carrier Safety 
                Grants).
                    ``(vi) 69-8159-0-7-401 (Motor Carrier Safety 
                Operations and Programs).'';
            (2) in subparagraph (C), by--
                    (A) inserting ``(and successor accounts)'' after 
                ``budget accounts''; and
                    (B) striking ``the Transportation Equity Act for 
                the 21st Century and the Surface Transportation 
                Extension Act of 2003 or for which appropriations are 
                provided pursuant to authorizations contained in those 
                Acts (except that appropriations provided pursuant to 
                section 5338(h) of title 49, United States Code, as 
                amended by the Transportation Equity Act for the 21st 
                Century, shall not be included in this category)'' and 
                inserting ``the Transportation Equity Act: A Legacy for 
                Users or for which appropriations are provided pursuant 
                to authorizations contained in that Act''; and
            (3) in subparagraph (D)(ii), by striking ``section 8103 of 
        the Transportation Equity Act for the 21st Century'' and 
        inserting ``section 8103 of the Transportation Equity Act: A 
        Legacy for Users''.

SEC. 3. ADJUSTMENTS TO ALIGN HIGHWAY SPENDING WITH REVENUES.

    Subparagraphs (B) through (E) of section 251(b)(1) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 are amended to read as 
follows:
                    ``(B) Adjustment to align highway spending with 
                revenues.--(i) When the President submits the budget 
                under section 1105 of title 31, United States Code, OMB 
                shall calculate and the budget shall make adjustments 
                to the highway category for the budget year and each 
                outyear as provided in clause (ii)(I)(cc).
                    ``(ii)(I)(aa) OMB shall take the actual level of 
                highway receipts for the year before the current year 
                and subtract the sum of the estimated level of highway 
                receipts in subclause (II) plus any amount previously 
                calculated under item (bb) for that year.
                    ``(bb) OMB shall take the current estimate of 
                highway receipts for the current year and subtract the 
                estimated level of receipts for that year.
                    ``(cc) OMB shall add one-half of the sum of the 
                amount calculated under items (aa) and (bb) to the 
                obligation limitations set forth in the section 8103 of 
                the Transportation Equity Act: A Legacy for Users and, 
                using current estimates, calculate the outlay change 
                resulting from the change in obligations for the budget 
                year and the first outyear and the outlays flowing 
                therefrom through subsequent fiscal years. After making 
                the calculations under the preceding sentence, OMB 
                shall adjust the amount of obligations set forth in 
                that section for the budget year and the first outyear 
                by adding one-half of the sum of the amount calculated 
                under items (aa) and (bb) to each such year.
                    ``(II) The estimated level of highway receipts for 
                the purposes of this clause are--
                            ``(aa) for fiscal year 2004, 
                        $30,572,000,000;
                            ``(bb) for fiscal year 2005, 
                        $34,260,000,000;
                            ``(cc) for fiscal year 2006, 
                        $35,586,000,000;
                            ``(dd) for fiscal year 2007, 
                        $36,570,000,000;
                            ``(ee) for fiscal year 2008, 
                        $37,603,000,000; and
                            ``(ff) for fiscal year 2009, 
                        $38,651,000,000.
                    ``(III) In this clause, the term `highway receipts' 
                means the governmental receipts credited to the highway 
                account of the Highway Trust Fund.
            ``(C) In addition to the adjustment required by 
        subparagraph (B), when the President submits the budget under 
        section 1105 of title 31, United States Code, for fiscal year 
        2006, 2007, 2008, or 2009, OMB shall calculate and the budget 
        shall include for the budget year and each outyear an 
        adjustment to the limits on outlays for the highway category 
        and the mass transit category equal to--
                    ``(i) the outlays for the applicable category 
                calculated assuming obligation levels consistent with 
                the estimates prepared pursuant to subparagraph (D), as 
                adjusted, using current technical assumptions; minus
                    ``(ii) the outlays for the applicable category set 
                forth in the subparagraph (D) estimates, as adjusted.
            ``(D)(i) When OMB and CBO submit their final sequester 
        report for fiscal year 2004, that report shall include an 
        estimate of the outlays for each of the categories that would 
        result in fiscal years 2005 through 2009 from obligations at 
        the levels specified in section 8103 of the Transportation 
        Equity Act: A Legacy for Users using current assumptions.
            ``(ii) When the President submits the budget under section 
        1105 of title 31, United States Code, for fiscal year 2006, 
        2007, 2008, or 2009, OMB shall adjust the estimates made in 
        clause (i) by the adjustments by subparagraphs (B) and (C).
            ``(E) OMB shall consult with the Committees on the Budget 
        and include a report on adjustments under subparagraphs (B) and 
        (C) in the preview report.''.

SEC. 4. LEVEL OF OBLIGATION LIMITATIONS.

    (a) Highway Category.--For the purposes of section 251(b) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, the level of 
obligation limitations for the highway category is--
            (1) for fiscal year 2004, $34,309,000,000;
            (2) for fiscal year 2005, $35,671,000,000;
            (3) for fiscal year 2006, $36,719,000,000;
            (4) for fiscal year 2007, $37,800,000,000;
            (5) for fiscal year 2008, $38,913,000,000; and
            (6) for fiscal year 2009, $40,061,000,000.
    (b) Mass Transit Category.--For the purposes of section 251(b) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, the 
level of obligation limitations for the mass transit category is--
            (1) for fiscal year 2004, $7,266,000,000;
            (2) for fiscal year 2005, $7,750,000,000;
            (3) for fiscal year 2006, $8,266,000,000;
            (4) for fiscal year 2007, $8,816,000,000;
            (5) for fiscal year 2008, $9,403,000,000; and
            (6) for fiscal year 2009, $10,029,000,000.
For purposes of this subsection, the term ``obligation limitations'' 
means the sum of budget authority and obligation limitations.

SEC. 5. ADVANCE APPROPRIATIONS.

    Section 251 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by adding at the end the following new 
subsection:
    ``(d) Advance Appropriations.--In any of fiscal years 2005 through 
2007, discretionary advance appropriations provided in appropriation 
Acts in excess of $23,558,000,000 shall be counted against the 
discretionary spending limits for the fiscal year for which the 
appropriation Act containing the advance appropriation is enacted.''.

SEC. 6. DEFINITIONS.

    (a) In General.--Section 250(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by adding at the end 
the following new paragraphs:
            ``(20) The term `advance appropriation' means 
        appropriations that first become available one fiscal year or 
        more beyond the fiscal year for which an appropriation Act 
        making such funds available is enacted.
            ``(21)(A) Except as provided by subparagraph (B), the term 
        `emergency requirement' means any provision that provides new 
        budget authority and resulting outlays for a situation that 
        poses a threat to life, property, or national security and is--
                    ``(i) sudden, quickly coming into being, and not 
                building up over time;
                    ``(ii) an urgent, pressing, and compelling need 
                requiring immediate action;
                    ``(iii) subject to subparagraph (B), unforeseen, 
                unpredictable, and unanticipated; and
                    ``(iv) not permanent, temporary in nature.
            ``(B) An emergency that is part of an aggregate level of 
        anticipated emergencies, particularly when normally estimated 
        in advance, is not unforeseen.''.
    (b) Fire Suppression; Contingency Operations Related to Global War 
on Terrorism.--Section 251(b)(2) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by adding at the end the 
following new subparagraph:
                    ``(I) Fire suppression.--(i) If a bill or joint 
                resolution is enacted that provides new budget 
                authority for wildland fire suppression for fiscal year 
                2005 or fiscal year 2006 that would cause the level of 
                total new budget authority for wildland fire 
                suppression to exceed the base amount for that fiscal 
                year, the adjustment for that fiscal year shall be the 
                additional new budget authority provided for such 
                purpose and the additional outlays flowing from such 
                amounts, but shall not exceed--
                            ``(I) for the Forest Service for fiscal 
                        year 2005 or fiscal year 2006 (as applicable), 
                        $400,000,000; and
                            ``(II) for the Department of the Interior 
                        for fiscal year 2005 or fiscal year 2006 (as 
                        applicable), $100,000,000.
                    ``(ii) For this subparagraph, the term ``base 
                amount'' refers to the average of the obligations of 
                the 10 fiscal years preceding the current year for 
                wildfire suppression in the Forest Service and in the 
                Department of the Interior, as calculated by OMB, but 
                for fiscal year 2005 the base amount is $880,000,000.
                    ``(J) Contingency operations related to global war 
                on terrorism.--If, for fiscal year 2005, supplemental 
                appropriations for discretionary accounts are enacted 
                for contingency operations related to the global war on 
                terrorism that, pursuant to this subparagraph, the 
                President designates as a contingency operation related 
                to the global war on terrorism and the Congress so 
                designates in statute, the adjustment shall be the 
                total of such appropriations in discretionary accounts 
                so designated, but not to exceed $50,000,000,000, and 
                the outlays flowing in all fiscal years from such 
                appropriations.''.
    (c) Conforming Amendment.--The second sentence of section 
250(c)(4)(A) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 is amended to read as follows: ``The general purpose 
discretionary category shall consist of accounts designated in the 
joint explanatory statement of managers accompanying the conference 
report on the Spending Control Act of 2004.''.

SEC. 7. PROJECTIONS UNDER SECTION 257.

    Section 257(c) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by inserting after paragraph (6) the following 
new paragraph:
            ``(7) Emergencies.--New budgetary resources designated 
        under section 251(b)(2)(A) or 251(b)(2)(J) shall not be assumed 
        beyond the fiscal year for which they have been enacted.''.

SEC. 8. REPORTS.

    Subsections (c)(2) and (f)(2)(A) of section 254 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 are amended by 
striking ``2002'' and inserting ``2006 (or 2009 solely for purposes of 
enforcing the discretionary spending limits for the highway and mass 
transit categories)''.

SEC. 9. EXPIRATION.

    Section 275(b) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by striking ``2002'' and inserting ``2006 (or 
2009 solely for purposes of enforcing the discretionary spending limits 
for the highway and mass transit categories)''.

Summary: Discretionary Spending Control Act of 2004 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to: (1) revise for FY 2004 discretionary spending limits (spending caps) for the highway and mass transit categories; (2) set forth for FY 2005 and 2006 new budget authority and outlays for the general purpose discretionary category, outlays for the highway category and new budget authority and outlays for the mass transit category; and (3) set forth for FY 2007 through 2009 outlays for the highway category and new budget authority and outlays for the mass transit category.

Revises the requirement that the Office of Management and Budget (OMB) make adjustments to the highway category to conform to estimated levels of highway receipts.

Sets forth the level of obligation limitations (sum of budget authority and obligation limitations) for the highway and mass transit categories for FY 2004 through 2009.

Provides that, in any of FY 2005 through 2006, discretionary advance appropriations provided in appropriation Acts in excess of $23,558 billion shall be counted against the discretionary spending limits for the fiscal year for which the appropriation Act containing the advance appropriation is enacted.

Provides, under specified conditions, for additional new budget authority in FY 2005 or 2005 for fire suppression and for an adjustment in the discretionary spending limit for FY 2005 for supplemental appropriations for the global war on terrorism.

Requires the estimates set forth in the discretionary sequestration preview and final reports issued by OMB and the Congressional Budget Office (CBO) to include the current year and each subsequent year through FY 2006 (or FY 2009 solely to enforce the discretionary spending limits for the highway and mass transit categories).

Extends certain budget enforcement requirements through FY 2006 (or 2009 for enforcing the spending caps for the highway and mass transit categories).