Title: Transportation Empowerment Act
Policy area: Transportation and Public Works

Summary:
Transportation Empowerment Act
This bill proposes the return to the states of discretionary authority and fiscal responsibility for national surface transportation systems not within the purview of the federal government. It imposes a funding limitation on transportation programs and projects based upon availability of funding through the Highway Trust Fund.
The bill also provides funding for certain core highway programs for FY2019-FY2023, including the federal-aid highway program, emergency relief, the federal lands access program, and the highway research and development program. It adjust amounts in the Highway Trust Fund and the tax rates on gasoline and special motor fuels to support such core programs.
The bill repeals provisions relating to metropolitan transportation planning and congestion mitigation and air quality improvement.
The bill amends the Internal Revenue Code to: (1) require the return of excess tax receipts to states for surface transportation programs, and (2) reduce tax rates on gasoline, diesel fuel, kerosene, and special fuels.
The provisions of this bill shall apply only if the Office of Management and Budget certifies that it is deficit neutral.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3190 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3190

   To empower States with authority for most taxing and spending for 
  highway programs and mass transit programs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 10, 2018

Mr. Lee (for himself, Mr. Cruz, and Mr. Rubio) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To empower States with authority for most taxing and spending for 
  highway programs and mass transit programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transportation Empowerment Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) the objective of the Federal highway program has been 
        to facilitate the construction of a modern freeway system that 
        promotes efficient interstate commerce by connecting all 
        States;
            (2) the objective described in paragraph (1) has been 
        attained, and the Interstate System connecting all States is 
        near completion;
            (3) each State has the responsibility of providing an 
        efficient transportation network for the residents of the 
        State;
            (4) each State has the means to build and operate a network 
        of transportation systems, including highways, that best serves 
        the needs of the State;
            (5) each State is best capable of determining the needs of 
        the State and acting on those needs;
            (6) the Federal role in highway transportation has, over 
        time, usurped the role of the States by taxing motor fuels used 
        in the States and then distributing the proceeds to the States 
        based on the perceptions of the Federal Government on what is 
        best for the States;
            (7) the Federal Government has used the Federal motor fuels 
        tax revenues to force all States to take actions that are not 
        necessarily appropriate for individual States;
            (8) the Federal distribution, review, and enforcement 
        process wastes billions of dollars on unproductive activities;
            (9) Federal mandates that apply uniformly to all 50 States, 
        regardless of the different circumstances of the States, cause 
        the States to waste billions of hard-earned tax dollars on 
        projects, programs, and activities that the States would not 
        otherwise undertake; and
            (10) Congress has expressed a strong interest in reducing 
        the role of the Federal Government by allowing each State to 
        manage its own affairs.
    (b) Purposes.--The purposes of this Act are--
            (1) to provide a new policy blueprint to govern the Federal 
        role in transportation once existing and prior financial 
        obligations are met;
            (2) to return to the individual States maximum 
        discretionary authority and fiscal responsibility for all 
        elements of the national surface transportation systems that 
        are not within the direct purview of the Federal Government;
            (3) to preserve Federal responsibility for the Dwight D. 
        Eisenhower National System of Interstate and Defense Highways;
            (4) to preserve the responsibility of the Department of 
        Transportation for--
                    (A) design, construction, and preservation of 
                transportation facilities on Federal public land;
                    (B) national programs of transportation research 
                and development and transportation safety; and
                    (C) emergency assistance to the States in response 
                to natural disasters;
            (5) to eliminate to the maximum extent practicable Federal 
        obstacles to the ability of each State to apply innovative 
        solutions to the financing, design, construction, operation, 
        and preservation of Federal and State transportation 
        facilities; and
            (6) with respect to transportation activities carried out 
        by States, local governments, and the private sector, to 
        encourage--
                    (A) competition among States, local governments, 
                and the private sector; and
                    (B) innovation, energy efficiency, private sector 
                participation, and productivity.

SEC. 3. FUNDING LIMITATION.

    Notwithstanding any other provision of law, if the Secretary of 
Transportation determines for any of fiscal years 2019 through 2023 
that the aggregate amount required to carry out transportation programs 
and projects under this Act and amendments made by this Act exceeds the 
estimated aggregate amount in the Highway Trust Fund available for 
those programs and projects for the fiscal year, each amount made 
available for that program or project shall be reduced by the pro rata 
percentage required to reduce the aggregate amount required to carry 
out those programs and projects to an amount equal to that available 
for those programs and projects in the Highway Trust Fund for the 
fiscal year.

SEC. 4. FUNDING FOR CORE HIGHWAY PROGRAMS.

    (a) In General.--
            (1) Authorization of appropriations.--The following sums 
        are authorized to be appropriated out of the Highway Trust Fund 
        (other than the Mass Transit Account):
                    (A) Federal-aid highway program, etc.--For the 
                national highway performance program under section 119 
                of title 23, United States Code, the surface 
                transportation block grant program under section 133 of 
                that title, and the highway safety improvement program 
                under section 148 of that title, for each of fiscal 
                years 2019 through 2023, an aggregate amount not to 
                exceed 10 percent of the balance of the Highway Trust 
                Fund (other than the Mass Transit Account) as estimated 
                (taking into account estimated revenues) at the 
                beginning of each such fiscal year.
                    (B) Emergency relief.--For emergency relief under 
                section 125 of title 23, United States Code, 
                $100,000,000 for each of fiscal years 2019 through 
                2023.
                    (C) Federal lands programs.--
                            (i) Federal lands transportation program.--
                        For the Federal lands transportation program 
                        under section 203 of title 23, United States 
                        Code, $300,000,000 for each of fiscal years 
                        2019 through 2023, of which $240,000,000 of the 
                        amount made available for each fiscal year 
                        shall be the amount for the National Park 
                        Service and $30,000,000 of the amount made 
                        available for each fiscal year shall be the 
                        amount for the United States Fish and Wildlife 
                        Service.
                            (ii) Federal lands access program.--For the 
                        Federal lands access program under section 204 
                        of title 23, United States Code, $250,000,000 
                        for each of fiscal years 2019 through 2023.
            (2) Federal-aid system.--
                    (A) In general.--Section 103(a) of title 23, United 
                States Code, is amended by striking ``the National 
                Highway System, which includes''.
                    (B) Conforming amendments.--Chapter 1 of title 23, 
                United States Code, is amended--
                            (i) in section 103, by striking the section 
                        designation and heading and inserting the 
                        following:
``Sec. 103. Federal-aid system'';
                        and
                            (ii) in the analysis, by striking the item 
                        relating to section 103 and inserting the 
                        following:

``103. Federal-aid system.''.
            (3) Federalization and defederalization of projects.--
        Notwithstanding any other provision of law, beginning on 
        October 1, 2018--
                    (A) a highway construction or improvement project 
                shall not be considered to be a Federal highway 
                construction or improvement project unless and until a 
                State expends Federal funds for the construction 
                portion of the project;
                    (B) a highway construction or improvement project 
                shall not be considered to be a Federal highway 
                construction or improvement project solely by reason of 
                the expenditure of Federal funds by a State before the 
                construction phase of the project to pay expenses 
                relating to the project, including for any 
                environmental document or design work required for the 
                project; and
                    (C)(i) a State may, after having used Federal funds 
                to pay all or a portion of the costs of a highway 
                construction or improvement project, reimburse the 
                Federal Government in an amount equal to the amount of 
                Federal funds so expended; and
                    (ii) after completion of a reimbursement described 
                in clause (i), a highway construction or improvement 
                project described in that clause shall no longer be 
                considered to be a Federal highway construction or 
                improvement project.
            (4) Reporting requirements.--No reporting requirement, 
        other than a reporting requirement in effect as of the date of 
        enactment of this Act, shall apply on or after October 1, 2018, 
        to the use of Federal funds for highway projects by a public-
        private partnership.
    (b) Expenditures From Highway Trust Fund.--
            (1) Expenditures for core programs.--Section 9503(c) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``October 1, 2020'' and 
                        inserting ``October 1, 2025''; and
                            (ii) by striking ``FAST Act'' and inserting 
                        ``Transportation Empowerment Act'';
                    (B) in paragraph (2), by striking ``July 1, 2023'' 
                and inserting ``July 1, 2025'';
                    (C) in paragraph (3)(A)(i), by striking ``October 
                1, 2022'' and inserting ``October 1, 2018''; and
                    (D) in paragraph (5), by striking ``October 1, 
                2011'' and inserting ``October 1, 2022''.
            (2) Amounts available for core program expenditures.--
        Section 9503 of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following:
    ``(g) Core Programs Financing Rate.--For purposes of this section--
            ``(1) In general.--Except as provided in paragraph (2)--
                    ``(A) in the case of gasoline and special motor 
                fuels the tax rate of which is the rate specified in 
                section 4081(a)(2)(A)(i), the core programs financing 
                rate is--
                            ``(i) after September 30, 2019, and before 
                        October 1, 2020, 18.3 cents per gallon,
                            ``(ii) after September 30, 2020, and before 
                        October 1, 2021, 9.6 cents per gallon,
                            ``(iii) after September 30, 2021, and 
                        before October 1, 2022, 6.4 cents per gallon,
                            ``(iv) after September 30, 2022, and before 
                        October 1, 2023, 5.0 cents per gallon, and
                            ``(v) after September 30, 2023, 3.7 cents 
                        per gallon, and
                    ``(B) in the case of kerosene, diesel fuel, and 
                special motor fuels the tax rate of which is the rate 
                specified in section 4081(a)(2)(A)(iii), the core 
                programs financing rate is--
                            ``(i) after September 30, 2019, and before 
                        October 1, 2020, 24.3 cents per gallon,
                            ``(ii) after September 30, 2020, and before 
                        October 1, 2021, 12.7 cents per gallon,
                            ``(iii) after September 30, 2021, and 
                        before October 1, 2022, 8.5 cents per gallon,
                            ``(iv) after September 30, 2022, and before 
                        October 1, 2023, 6.6 cents per gallon, and
                            ``(v) after September 30, 2023, 5.0 cents 
                        per gallon.
            ``(2) Application of rate.--In the case of fuels used as 
        described in paragraphs (3)(C) and (4)(B) of subsection (c), 
        and aviation fuel described in paragraph (5) of subsection (c), 
        the core programs financing rate is zero.''.
    (c) Termination of Mass Transit Account.--Section 9503(e) of the 
Internal Revenue Code of 1986 is amended--
            (1) in the first sentence of paragraph (2), by inserting 
        ``, and before October 1, 2018'' after ``March 31, 1983''; and
            (2) by adding at the end the following:
            ``(6) Transfer to highway account.--On October 1, 2018, the 
        Secretary shall transfer all amounts in the Mass Transit 
        Account to the Highway Account.''.
    (d) Effective Date.--The amendments and repeals made by this 
section shall take effect on October 1, 2018.

SEC. 5. FEDERAL-AID HIGHWAY PROGRAM.

    (a) Apportionment.--
            (1) Administrative expenses.--Section 104(a) of title 23, 
        United States Code, is amended by striking paragraph (1) and 
        inserting the following:
            ``(1) Authorization of appropriations.--
                    ``(A) In general.--There are authorized to be 
                appropriated from the Highway Trust Fund (other than 
                the Mass Transit Account) for each of fiscal years 2019 
                through 2023, to be made available to the Secretary for 
                administrative expenses of the Federal Highway 
                Administration, an amount equal to 1 percent of the 
                balance of the Highway Trust Fund (other than the Mass 
                Transit Account) as estimated (taking into account 
                estimated revenues) at the beginning of each such 
                fiscal year.
                    ``(B) Consideration in congress.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, it shall not be in 
                        order in the Senate or the House of 
                        Representatives to consider any measure that 
                        would make available for expenditure from the 
                        Highway Trust Fund (other than the Mass Transit 
                        Account) for a fiscal year an amount less than 
                        the amount authorized under subparagraph (A) 
                        for such fiscal year.
                            ``(ii) Waiver.--
                                    ``(I) In general.--Clause (i) may 
                                be waived or suspended in the Senate 
                                only by the affirmative vote of \3/5\ 
                                of the Members, duly chosen and sworn.
                                    ``(II) Debate.--Debate on appeals 
                                in the Senate from the decisions of the 
                                Chair relating to subclause (I) shall 
                                be limited to 1 hour, to be equally 
                                divided between, and controlled by, the 
                                mover and the manager of the measure 
                                that would make available for 
                                expenditure from the Highway Trust Fund 
                                (other than the Mass Transit Account) 
                                for a fiscal year an amount less than 
                                the amount described in subparagraph 
                                (A).
                                    ``(III) Vote.--An affirmative vote 
                                of \3/5\ of the Members, duly chosen 
                                and sworn, shall be required in the 
                                Senate to sustain an appeal of the 
                                ruling of the Chair on a point of order 
                                raised in relation to subclause (I).
                            ``(iii) Rules of each house of congress.--
                        This subparagraph is enacted by Congress--
                                    ``(I) as an exercise of the 
                                rulemaking power of the House of 
                                Representatives and the Senate, 
                                respectively, and as such it is deemed 
                                a part of the rules of each House, 
                                respectively, but applicable only with 
                                respect to the procedure to be followed 
                                in that House in the case of a joint 
                                resolution, and it supersedes other 
                                rules only to the extent that it is 
                                inconsistent with those rules; and
                                    ``(II) with full recognition of the 
                                constitutional right of either House to 
                                change the rules (so far as relating to 
                                the procedure of that House) at any 
                                time, in the same manner and to the 
                                same extent as in the case of any other 
                                rule of that House.''.
            (2) Division among programs of state's share of base 
        apportionment.--Section 104(b) of title 23, United States Code, 
        is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``the congestion mitigation and air quality 
                improvement program, the national highway freight 
                program, and to carry out section 134'' and inserting 
                ``and the national highway freight program'';
                    (B) in each of paragraphs (1), (2), and (3), by 
                striking ``paragraphs (4), (5), and (6)'' and inserting 
                ``paragraph (4)'';
                    (C) by striking paragraph (4);
                    (D) by redesignating paragraph (5) as paragraph 
                (4);
                    (E) in paragraph (4) (as so redesignated), by 
                striking subparagraph (D); and
                    (F) by striking paragraph (6).
            (3) Calculation of state amounts.--Section 104(c) of title 
        23, United States Code, is amended--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``each of fiscal years 2016 
                        through 2020'' and inserting ``fiscal year 2019 
                        and each fiscal year thereafter''; and
                            (ii) in subparagraph (A)(i)--
                                    (I) in subclause (I), by adding 
                                ``and'' at the end;
                                    (II) in subclause (II), by striking 
                                ``and'' and inserting ``by''; and
                                    (III) by striking subclause (III); 
                                and
                    (B) in paragraph (2)--
                            (i) by striking ``fiscal years 2016 through 
                        2020'' and inserting ``fiscal year 2019 and 
                        each fiscal year thereafter''; and
                            (ii) by striking ``the congestion 
                        mitigation and air quality improvement program 
                        under section 149, the national highway freight 
                        program under section 167, and to carry out 
                        section 134'' and inserting ``and the national 
                        highway freight program under section 167''.
            (4) Metropolitan planning.--Section 104(d) of title 23, 
        United States Code, is amended--
                    (A) in paragraph (1)--
                            (i) by striking subparagraph (B);
                            (ii) by striking ``(A) Use.--'';
                            (iii) by redesignating clauses (i) and (ii) 
                        as subparagraphs (A) and (B), respectively, and 
                        indenting appropriately;
                            (iv) in subparagraph (A) (as so 
                        redesignated)--
                                    (I) by striking ``clause (ii)'' and 
                                inserting ``subparagraph (B)''; and
                                    (II) by inserting ``(as in effect 
                                on the day before the date of enactment 
                                of the Transportation Empowerment 
                                Act)'' after ``section 134 in the 
                                State''; and
                            (v) in subparagraphs (A) and (B) (as so 
                        redesignated), by inserting ``(as in effect on 
                        the day before the date of enactment of the 
                        Transportation Empowerment Act)'' after 
                        ``paragraphs (5)(D) and (6) of subsection (b)'' 
                        each place it appears; and
                    (B) in paragraph (2)--
                            (i) by striking ``States.--'' and all that 
                        follows through ``The distribution'' in 
                        subparagraph (A), in the matter preceding 
                        clause (i), and inserting ``States.--The 
                        distribution'';
                            (ii) in clause (ii), by striking ``section 
                        134 and other'';
                            (iii) by striking subparagraph (B); and
                            (iv) by redesignating clauses (i) and (ii) 
                        as subparagraphs (A) and (B), respectively, and 
                        indenting appropriately.
            (5) Transferability of funds.--Section 104 of title 23, 
        United States Code, is amended by striking subsection (f) and 
        inserting the following:
    ``(f) Transferability of Funds.--
            ``(1) In general.--To the extent that a State determines 
        that funds made available under this title to the State for a 
        purpose are in excess of the needs of the State for that 
        purpose, the State may transfer the excess funds to, and use 
        the excess funds for, any surface transportation (including 
        public transportation and rail) purpose in the State.
            ``(2) Enforcement.--If the Secretary determines that a 
        State has transferred funds under paragraph (1) to a purpose 
        that is not a surface transportation purpose as described in 
        paragraph (1), the amount of the improperly transferred funds 
        shall be deducted from any amount the State would otherwise 
        receive from the Highway Trust Fund for the fiscal year that 
        begins after the date of the determination.''.
            (6) Supplemental funds.--Section 104(h) of title 23, United 
        States Code, is amended--
                    (A) by striking paragraph (2);
                    (B) by striking the subsection designation and 
                heading and all that follows through ``Before'' in 
                subparagraph (A), in the matter preceding clause (i), 
                and inserting the following:
    ``(h) Supplemental Funds for National Highway Performance 
Program.--
            ``(1) Amount.--Before'';
                    (C) by redesignating subparagraph (B) as paragraph 
                (2) and indenting appropriately;
                    (D) in paragraph (1) (as so redesignated), by 
                redesignating clauses (i) and (ii) as subparagraphs (A) 
                and (B) and indenting appropriately; and
                    (E) in paragraph (2) (as so redesignated), by 
                striking ``subparagraph (A)'' and inserting ``paragraph 
                (1)''.
            (7) Base apportionment defined.--Section 104(i) of title 
        23, United States Code, is amended--
                    (A) in paragraph (1), by striking ``the congestion 
                mitigation and air quality improvement program under 
                section 149, the national highway freight program under 
                section 167, and to carry out section 134'' and 
                inserting ``and the national highway freight program 
                under section 167''; and
                    (B) in paragraph (2), by striking ``and the surface 
                transportation block grant program''.
    (b) National Highway Performance Program.--
            (1) In general.--Section 119(d)(2) of title 23, United 
        States Code, is amended--
                    (A) by striking subparagraph (H);
                    (B) by striking subparagraph (M);
                    (C) by striking subparagraph (O); and
                    (D) by redesignating subparagraphs (I), (J), (K), 
                (L), (N), and (P) as subparagraphs (H), (I), (J), (K), 
                (L), and (M), respectively.
            (2) Repeal of environmental mitigation provisions.--Section 
        119 of title 23, United States Code, is amended--
                    (A) by striking subsection (g); and
                    (B) by redesignating subsections (h) through (j) as 
                subsections (g) through (i), respectively.
    (c) Surface Transportation Block Grant Program.--
            (1) In general.--Section 133(b) of title 23, United States 
        Code, is amended--
                    (A) by striking paragraph (3);
                    (B) by striking paragraph (6) and inserting the 
                following:
            ``(6) modifications to comply with accessibility 
        requirements under the Americans with Disabilities Act of 1990 
        (42 U.S.C. 12101 et seq.).'';
                    (C) by striking paragraph (15); and
                    (D) by redesignating paragraphs (4) through (14) as 
                paragraphs (3) through (13), respectively.
            (2) Repeal of bridges not on federal-aid highways 
        provisions.--Section 133 of title 23, United States Code, is 
        amended--
                    (A) by striking subsection (f);
                    (B) by striking subsection (h); and
                    (C) by redesignating subsections (g) and (i) as 
                subsections (f) and (g), respectively.
            (3) Conforming amendments.--
                    (A) Section 133(c) of title 23, United States Code, 
                is amended by striking ``1991, except'' in the matter 
                preceding paragraph (1) and all that follows through 
                the period at the end of paragraph (4) and inserting 
                ``1991.''.
                    (B) Section 133(d)(1) of title 23, United States 
                Code, is amended in the matter preceding subparagraph 
                (A) by striking ``(after the reservation of funds under 
                subsection (h))''.
                    (C) Section 133(g) of title 23, United States Code 
                (as redesignated by paragraph (2)(C)), is amended by 
                striking ``(excluding those carried out under 
                subsection (h)(5))''.
                    (D) Section 165(c)(7) of title 23, United States 
                Code, is amended by striking ``paragraphs (1) through 
                (4) of section 133(c) and section 133(b)(12)'' and 
                inserting ``section 133(b)(11)''.
    (d) Metropolitan Transportation Planning.--
            (1) In general.--Section 134 of title 23, United States 
        Code, is repealed.
            (2) Conforming amendments.--
                    (A) The chapter analysis for chapter 1 of title 23, 
                United States Code, is amended by striking the item 
                relating to section 134.
                    (B) Section 2864(d)(2) of title 10, United States 
                Code, is amended by inserting ``(as in effect on the 
                day before the date of enactment of the Transportation 
                Empowerment Act)'' after ``title 23''.
                    (C) Section 103(b)(3) of title 23, United States 
                Code, is amended by striking subparagraph (B) and 
                inserting the following:
                    ``(B) Cooperation.--In proposing a modification 
                under this paragraph, a State shall cooperate with 
                local and regional officials.''.
                    (D) Section 106(h)(3)(C) of title 23, United States 
                Code, is amended by striking ``sections 134 and 135'' 
                and inserting ``section 135''.
                    (E) Section 108(d)(5)(A) of title 23, United States 
                Code, is amended by striking ``sections 134 and 135'' 
                and inserting ``section 135''.
                    (F) Section 119(d)(1)(B) of title 23, United States 
                Code, is amended by striking ``sections 134 and 135'' 
                and inserting ``section 135''.
                    (G) Section 133(d) of title 23, United States Code, 
                is amended--
                            (i) in paragraph (1)(A), in the matter 
                        preceding clause (i), by striking ``paragraph 
                        (6)'' and inserting ``paragraph (5)'';
                            (ii) by striking paragraph (2);
                            (iii) in paragraph (5), by striking 
                        ``sections 134 and 135'' and inserting 
                        ``section 135''; and
                            (iv) by redesignating paragraphs (3) 
                        through (6) as paragraphs (2) through (5), 
                        respectively.
                    (H) Section 135 of title 23, United States Code, is 
                amended--
                            (i) in subsection (a)--
                                    (I) in paragraph (1)--
                                            (aa) by striking ``Subject 
                                        to section 134, to'' and 
                                        inserting ``To''; and
                                            (bb) by inserting ``(as in 
                                        effect on the day before the 
                                        date of enactment of the 
                                        Transportation Empowerment 
                                        Act)'' after ``section 
                                        134(a)''; and
                                    (II) in paragraph (3), by inserting 
                                ``(as in effect on the day before the 
                                date of enactment of the Transportation 
                                Empowerment Act)'' after ``section 
                                134(a)'';
                            (ii) in subsection (b)(1), by striking 
                        ``with the transportation planning activities 
                        carried out under section 134 for metropolitan 
                        areas of the State and'';
                            (iii) in subsection (f)--
                                    (I) in paragraph (2)--
                                            (aa) by striking 
                                        subparagraph (A); and
                                            (bb) by redesignating 
                                        subparagraphs (B), (C), and (D) 
                                        as subparagraphs (A), (B), and 
                                        (C), respectively;
                                    (II) by striking paragraph (4);
                                    (III) in paragraph (6), by striking 
                                ``paragraph (5)'' and inserting 
                                ``paragraph (4)''; and
                                    (IV) by redesignating paragraphs 
                                (5) through (9) as paragraphs (4) 
                                through (8), respectively;
                            (iv) in subsection (g)--
                                    (I) in paragraph (2)--
                                            (aa) by striking 
                                        subparagraph (A); and
                                            (bb) by redesignating 
                                        subparagraphs (B) and (C) as 
                                        subparagraphs (A) and (B), 
                                        respectively; and
                                    (II) in paragraph (8), by striking 
                                ``and section 134'';
                            (v) in subsection (i), by striking 
                        ``apportioned under paragraphs (5)(D) and (6) 
                        of section 104(b) of this title and'';
                            (vi) in subsection (j), by striking ``and 
                        section 134'' each place it appears; and
                            (vii) by adding at the end the following:
    ``(n) Definitions.--In this section, the definitions under section 
134(b) (as in effect on the day before the date of enactment of the 
Transportation Empowerment Act) shall apply.''.
                    (I) Section 137 of title 23, United States Code, is 
                amended--
                            (i) by striking subsection (e); and
                            (ii) by redesignating subsections (f) and 
                        (g) as subsections (e) and (f), respectively.
                    (J) Section 142 of title 23, United States Code, is 
                amended--
                            (i) by striking subsection (d); and
                            (ii) by redesignating subsections (e) 
                        through (i) as subsections (d) through (h), 
                        respectively.
                    (K) Section 144(j) of title 23, United States Code, 
                is amended--
                            (i) in paragraph (3)(B), by striking ``a 
                        transportation improvement program under 
                        section 134(j) or a statewide transportation 
                        improvement program under section 135, as 
                        applicable'' and inserting ``a statewide 
                        transportation improvement program under 
                        section 135''; and
                            (ii) in paragraph (4)(A), by striking 
                        ``sections 134 and 135'' and inserting 
                        ``section 135''.
                    (L) Section 168(a)(3) of title 23, United States 
                Code, is amended by striking ``metropolitan or 
                statewide transportation planning under section 134 or 
                135, respectively'' and inserting ``statewide 
                transportation planning under section 135''.
                    (M) Section 201(c)(1) of title 23, United States 
                Code, is amended by striking ``sections 134 and 135'' 
                and inserting ``section 135''.
                    (N) Section 217(g)(1) of title 23, United States 
                Code, is amended in the first sentence by striking 
                ``metropolitan planning organization and State in 
                accordance with sections 134 and 135, respectively'' 
                and inserting ``State in accordance with section 135''.
                    (O) Section 327(a)(2)(B)(iv)(I) of title 23, United 
                States Code, is amended by striking ``134 or''.
                    (P) Section 505 of title 23, United States Code, is 
                amended--
                            (i) in subsection (a)(2)--
                                    (I) by striking ``metropolitan 
                                and''; and
                                    (II) by striking ``sections 134 and 
                                135'' and inserting ``section 135''; 
                                and
                            (ii) in subsection (b)(2), by striking 
                        ``sections 134 and 135'' and inserting 
                        ``section 135''.
                    (Q) Section 602(a)(3) of title 23, United States 
                Code, is amended by striking ``sections 134 and 135'' 
                and inserting ``section 135''.
                    (R) Section 174 of the Clean Air Act (42 U.S.C. 
                7504) is amended--
                            (i) in the fourth sentence of subsection 
                        (a), by striking ``the metropolitan planning 
                        organization designated to conduct the 
                        continuing, cooperative and comprehensive 
                        transportation planning process for the area 
                        under section 134 of title 23, United States 
                        Code,'';
                            (ii) by striking subsection (b); and
                            (iii) by redesignating subsection (c) as 
                        subsection (b).
                    (S) Section 176(c) of the Clean Air Act (42 U.S.C. 
                7506(c)) is amended--
                            (i) in paragraph (1), in the matter 
                        preceding subparagraph (A), by striking the 
                        second sentence;
                            (ii) in paragraph (7)(A), in the matter 
                        preceding clause (i), by striking ``section 
                        134(i) of title 23, United States Code, or''; 
                        and
                            (iii) in paragraph (9)--
                                    (I) by striking ``section 134(i) of 
                                title 23, United States Code, or''; and
                                    (II) by striking ``under section 
                                134(j) of such title 23 or''.
                    (T) Section 182(c)(5) of the Clean Air Act (42 
                U.S.C. 7511a(c)(5)) is amended--
                            (i) by striking ``(A) Beginning'' and 
                        inserting ``Beginning''; and
                            (ii) in the last sentence by striking ``and 
                        with the requirements of section 174(b)''.
                    (U) Section 5304(i) of title 49, United States 
                Code, is amended--
                            (i) by striking ``sections 134 and 135'' 
                        each place it appears and inserting ``section 
                        135''; and
                            (ii) by striking ``this this'' and 
                        inserting ``this''.
    (e) National Bridge and Tunnel Inventory and Inspection 
Standards.--
            (1) In general.--Section 144 of title 23, United States 
        Code, is amended--
                    (A) in subsection (e)(1) by inserting ``on the 
                Federal-aid system'' after ``any bridge''; and
                    (B) in subsection (f)(1), in the matter preceding 
                subparagraph (A), by inserting ``on the Federal-aid 
                system'' after ``construct any bridge''.
            (2) Repeal of historic bridges provisions.--Section 144 of 
        title 23, United States Code, is amended--
                    (A) by striking subsection (g); and
                    (B) by redesignating subsections (h) through (k) as 
                subsections (g) through (j), respectively.
    (f) Highway Safety Improvement Program.--
            (1) In general.--Section 148 of title 23, United States 
        Code, is amended--
                    (A) in subsection (a)--
                            (i) by striking paragraph (2);
                            (ii) in paragraph (4)(B)--
                                    (I) by striking clause (v);
                                    (II) by redesignating clauses (vi) 
                                through (xxviii) as clauses (v) through 
                                (xxvii), respectively; and
                                    (III) in clause (xxvii) (as so 
                                redesignated), by striking ``clauses 
                                (i) through (xxvii)'' and inserting 
                                ``clauses (i) through (xxvi)'';
                            (iii) in paragraph (8), by striking 
                        ``bicyclist,'';
                            (iv) by striking paragraphs (9) through 
                        (12); and
                            (v) by redesignating paragraphs (3) through 
                        (8) as paragraphs (2) through (7), 
                        respectively;
                    (B) by striking subsections (b) through (i); and
                    (C) by redesignating subsections (j) and (k) as 
                subsections (b) and (c), respectively.
            (2) Conforming amendments.--
                    (A) Section 101(a)(28) of title 23, United States 
                Code, is amended by inserting ``(as in effect on the 
                day before the date of enactment of the Transportation 
                Empowerment Act)'' after ``section 148(a)''.
                    (B) Section 202(e)(1) of title 23, United States 
                Code, is amended by striking ``eligible projects 
                described in section 148(a)(4)'' and inserting 
                ``highway safety improvement projects (as defined in 
                section 148(a))''.
                    (C) Section 402(b)(1)(F)(v) of title 23, United 
                States Code, is amended by inserting ``(as in effect on 
                the day before the date of enactment of the 
                Transportation Empowerment Act)'' after ``section 
                148(a)''.
                    (D) Section 31102 of title 49, United States Code, 
                is amended--
                            (i) in subsection (c)(2)--
                                    (I) by striking subparagraph (K); 
                                and
                                    (II) by redesignating subparagraphs 
                                (L) through (BB) as subparagraphs (K) 
                                through (AA), respectively;
                            (ii) in subsection (d), by striking 
                        ``subsection (c)(2)(Y)'' and inserting 
                        ``subsection (c)(2)(X)''; and
                            (iii) in subsection (l)(2)(G), by striking 
                        ``subsection (c)(2)(P)'' each place it appears 
                        and inserting ``subsection (c)(2)(O)''.
    (g) Repeal of Congestion Mitigation and Air Quality Improvement 
Program.--
            (1) In general.--Section 149 of title 23, United States 
        Code, is repealed.
            (2) Conforming amendments.--
                    (A) The chapter analysis for chapter 1 of title 23, 
                United States Code, is amended by striking the item 
                relating to section 149.
                    (B) Section 106(d) of title 23, United States Code, 
                is amended in the matter preceding paragraph (1), by 
                striking ``section, section 133, or section 149'' and 
                inserting ``section or section 133''.
                    (C) Section 150 of title 23, United States Code, is 
                amended--
                            (i) in subsection (c)--
                                    (I) by striking paragraph (5); and
                                    (II) by redesignating paragraph (6) 
                                as paragraph (5); and
                            (ii) in subsection (d)(1), by striking 
                        ``(5), and (6)'' and inserting ``and (5)''.
                    (D) Section 322(h)(3) of title 23, United States 
                Code, is amended by striking ``and the congestion 
                mitigation and air quality improvement program under 
                section 149''.
                    (E) Section 505(a)(3) of title 23, United States 
                Code, is amended by striking ``149,''.
    (h) National Defense Highways.--Section 311 of title 23, United 
States Code, is amended--
            (1) in the first sentence, by striking ``under subsection 
        (a) of section 104 of this title'' and inserting ``to carry out 
        this section''; and
            (2) by striking the second sentence.

SEC. 6. FUNDING FOR HIGHWAY RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account) to carry out section 503(b) of title 23, United States Code, 
$115,000,000 for each of fiscal years 2019 through 2023.
    (b) Applicability of Title 23, United States Code.--Funds 
authorized to be appropriated by subsection (a) shall--
            (1) be available for obligation in the same manner as if 
        those funds were apportioned under chapter 1 of title 23, 
        United States Code, except that the Federal share of the cost 
        of a project or activity carried out using those funds shall be 
        80 percent, unless otherwise expressly provided by this Act 
        (including the amendments by this Act) or otherwise determined 
        by the Secretary; and
            (2) remain available until expended and not be 
        transferable.

SEC. 7. RETURN OF EXCESS TAX RECEIPTS TO STATES.

    (a) In General.--Section 9503(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
            ``(6) Return of excess tax receipts to states for surface 
        transportation purposes.--
                    ``(A) In general.--On the first day of each of 
                fiscal years 2019, 2020, 2021, and 2022, the Secretary, 
                in consultation with the Secretary of Transportation, 
                shall--
                            ``(i) determine the excess (if any) of--
                                    ``(I) the amounts appropriated in 
                                such fiscal year to the Highway Trust 
                                Fund under subsection (b) which are 
                                attributable to the taxes described in 
                                paragraphs (1) and (2) thereof (after 
                                the application of paragraph (4) 
                                thereof) over the sum of--
                                    ``(II) the amounts so appropriated 
                                which are equivalent to--
                                            ``(aa) such amounts 
                                        attributable to the core 
                                        programs financing rate for 
                                        such year, plus
                                            ``(bb) the taxes described 
                                        in paragraphs (3)(C), (4)(B), 
                                        and (5) of subsection (c), and
                            ``(ii) allocate the amount determined under 
                        clause (i) among the States (as defined in 
                        section 101(a) of title 23, United States Code) 
                        for surface transportation (including mass 
                        transit and rail) purposes so that--
                                    ``(I) the percentage of that amount 
                                allocated to each State, is equal to
                                    ``(II) the percentage of the amount 
                                determined under clause (i)(I) paid 
                                into the Highway Trust Fund in the 
                                latest fiscal year for which such data 
                                are available which is attributable to 
                                highway users in the State.
                    ``(B) Enforcement.--If the Secretary determines 
                that a State has used amounts under subparagraph (A) 
                for a purpose which is not a surface transportation 
                purpose as described in subparagraph (A), the 
                improperly used amounts shall be deducted from any 
                amount the State would otherwise receive from the 
                Highway Trust Fund for the fiscal year which begins 
                after the date of the determination.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2018.

SEC. 8. REDUCTION IN TAXES ON GASOLINE, DIESEL FUEL, KEROSENE, AND 
              SPECIAL FUELS FUNDING HIGHWAY TRUST FUND.

    (a) Reduction in Tax Rate.--
            (1) In general.--Section 4081(a)(2)(A) of the Internal 
        Revenue Code of 1986 is amended--
                    (A) in clause (i), by striking ``18.3 cents'' and 
                inserting ``3.7 cents''; and
                    (B) in clause (iii), by striking ``24.3 cents'' and 
                inserting ``5.0 cents''.
            (2) Conforming amendments.--
                    (A) Section 4081(a)(2)(D) of such Code is amended--
                            (i) by striking ``19.7 cents'' and 
                        inserting ``4.1 cents'', and
                            (ii) by striking ``24.3 cents'' and 
                        inserting ``5.0 cents''.
                    (B) Section 6427(b)(2)(A) of such Code is amended 
                by striking ``7.4 cents'' and inserting ``1.5 cents''.
    (b) Additional Conforming Amendments.--
            (1) Section 4041(a)(1)(C)(iii)(I) of the Internal Revenue 
        Code of 1986 is amended by striking ``7.3 cents per gallon (4.3 
        cents per gallon after September 30, 2022)'' and inserting 
        ``1.4 cents per gallon (zero after September 30, 2023)''.
            (2) Section 4041(a)(2)(B)(ii) of such Code is amended by 
        striking ``18.3 cents'' and inserting ``4 cents''.
            (3) Clauses (iii) and (iv) of section 4041(a)(2)(B) of such 
        Code are each amended by striking ``24.3 cents'' and inserting 
        ``5.0 cents''.
            (4) Section 4041(a)(3)(A)(ii) of such Code is amended by 
        striking ``18.3 cents'' and inserting ``3.7 cents''.
            (5) Section 4041(m)(1) of such Code is amended--
                    (A) in subparagraph (A), by striking ``2022'' and 
                inserting ``2023,'';
                    (B) in subparagraph (A)(i), by striking ``9.15 
                cents'' and inserting ``1.8 cents'';
                    (C) in subparagraph (A)(ii), by striking ``11.3 
                cents'' and inserting ``2.3 cents''; and
                    (D) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) zero after September 30, 2022.''.
            (6) Section 4081(d)(1) of such Code is amended by striking 
        ``4.3 cents per gallon after September 30, 2016'' and inserting 
        ``zero after September 30, 2021''.
            (7) Section 9503(b) of such Code is amended--
                    (A) in paragraphs (1) and (2), by striking 
                ``October 1, 2022'' both places it appears and 
                inserting ``October 1, 2023'';
                    (B) in the heading of paragraph (2), by striking 
                ``October 1, 2022'' and inserting ``October 1, 2023'';
                    (C) in paragraph (2), by striking ``after September 
                30, 2022, and before July 1, 2023'' and inserting 
                ``after September 30, 2023, and before July 1, 2024''; 
                and
                    (D) in paragraph (6)(B), by striking ``October 1, 
                2020'' and inserting ``October 1, 2023''.
    (c) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before October 1, 2023, tax has been imposed 
                under section 4081 of the Internal Revenue Code of 1986 
                on any liquid; and
                    (B) on such date such liquid is held by a dealer 
                and has not been used and is intended for sale;
        there shall be credited or refunded (without interest) to the 
        person who paid such tax (in this subsection referred to as the 
        ``taxpayer'') an amount equal to the excess of the tax paid by 
        the taxpayer over the amount of such tax which would be imposed 
        on such liquid had the taxable event occurred on such date.
            (2) Time for filing claims.--No credit or refund shall be 
        allowed or made under this subsection unless--
                    (A) claim therefor is filed with the Secretary of 
                the Treasury before April 1, 2024; and
                    (B) in any case where liquid is held by a dealer 
                (other than the taxpayer) on October 1, 2023--
                            (i) the dealer submits a request for refund 
                        or credit to the taxpayer before January 1, 
                        2024; and
                            (ii) the taxpayer has repaid or agreed to 
                        repay the amount so claimed to such dealer or 
                        has obtained the written consent of such dealer 
                        to the allowance of the credit or the making of 
                        the refund.
            (3) Exception for fuel held in retail stocks.--No credit or 
        refund shall be allowed under this subsection with respect to 
        any liquid in retail stocks held at the place where intended to 
        be sold at retail.
            (4) Definitions.--For purposes of this subsection, the 
        terms ``dealer'' and ``held by a dealer'' have the respective 
        meanings given to such terms by section 6412 of such Code; 
        except that the term ``dealer'' includes a producer.
            (5) Certain rules to apply.--Rules similar to the rules of 
        subsections (b) and (c) of section 6412 and sections 6206 and 
        6675 of such Code shall apply for purposes of this subsection.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall apply to fuel 
        removed after September 30, 2023.
            (2) Certain conforming amendments.--
                    (A) The amendments made by subsection (b)(4) shall 
                apply to fuel removed after September 30, 2019.
                    (B) The amendments made by subparagraphs (A), (B), 
                and (C) of subsection (b)(6) shall take effect on 
                October 1, 2019.
                    (C) The amendment made by subsection (b)(6)(D) 
                shall take effect on June 1, 2018.

SEC. 9. REPORT TO CONGRESS.

    Not later than 180 days after the date of enactment of this Act, 
after consultation with the appropriate committees of Congress, the 
Secretary of Transportation shall submit to Congress a report that 
describes such technical and conforming amendments to titles 23 and 49, 
United States Code, and to other laws, as are necessary to bring those 
titles and other laws into conformity with the policy embodied in this 
Act and the amendments made by this Act.

SEC. 10. APPLICATION CONTINGENT ON CERTIFICATION OF DEFICIT NEUTRALITY.

    (a) Purpose.--The purpose of this section is to ensure that--
            (1) this Act will apply only if the Director of the Office 
        of Management and Budget certifies that this Act is deficit 
        neutral;
            (2) discretionary spending limits are reduced to capture 
        the savings realized in devolving transportation functions to 
        the State level pursuant to this Act; and
            (3) the tax reduction made by this Act is not scored under 
        pay-as-you-go and does not inadvertently trigger a 
        sequestration.
    (b) Effective Date Contingency.--Notwithstanding any other 
provision of this Act, this Act and the amendments made by this Act 
shall apply only if--
            (1) the Director of the Office of Management and Budget 
        (referred to in this section as the ``Director'') submits the 
        report under subsection (c); and
            (2) the report contains a certification by the Director 
        that, based on the required estimates, the reduction in 
        discretionary outlays resulting from the reduction in contract 
        authority is at least as great as the reduction in revenues for 
        each fiscal year through fiscal year 2023.
    (c) OMB Estimates and Report.--
            (1) Requirements.--Not later than 5 calendar days after the 
        date of enactment of this Act, the Director shall--
                    (A) estimate the net change in revenues resulting 
                from this Act for each fiscal year through fiscal year 
                2023;
                    (B) estimate the net change in discretionary 
                outlays resulting from the reduction in contract 
                authority under this Act for each fiscal year through 
                fiscal year 2023;
                    (C) determine, based on those estimates, whether 
                the reduction in discretionary outlays is at least as 
                great as the reduction in revenues for each fiscal year 
                through fiscal year 2023; and
                    (D) submit to Congress a report that describes the 
                estimates and determination.
            (2) Applicable assumptions and guidelines.--
                    (A) Revenue estimates.--The revenue estimates 
                required under paragraph (1)(A) shall be predicated on 
                the same economic and technical assumptions and score 
                keeping guidelines that would be used for estimates 
                made pursuant to section 252(d) of the Balanced Budget 
                and Emergency Deficit Control Act of 1985 (2 U.S.C. 
                902(d)).
                    (B) Outlay estimates.--The outlay estimates 
                required under paragraph (1)(B) shall be determined by 
                comparing the level of discretionary outlays resulting 
                from this Act with the corresponding level of 
                discretionary outlays projected in the baseline under 
                section 257 of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 (2 U.S.C. 907).
    (d) Conforming Adjustment to Discretionary Spending Limits.--On 
compliance with the requirements specified in subsection (b), the 
Director shall adjust the adjusted discretionary spending limits for 
each fiscal year through fiscal year 2023 under section 601(a)(2) of 
the Congressional Budget Act of 1974 (2 U.S.C. 665(a)(2)) by the 
estimated reductions in discretionary outlays under subsection 
(c)(1)(B).
    (e) PAYGO Interaction.--On compliance with the requirements 
specified in subsection (b), no changes in revenues estimated to result 
from the enactment of this Act shall be counted for the purposes of 
section 252(d) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 (2 U.S.C. 902(d)).
                                 <all>