SECTION 1. PHASE-OUT OF TAX SUBSIDIES FOR ALCOHOL FUELS PRODUCED FROM 
              FEEDSTOCKS ELIGIBLE TO RECEIVE FEDERAL AGRICULTURAL 
              SUBSIDIES.

    (a) Alcohol Fuels Credit.--Section 40 of the Internal Revenue Code 
of 1986 (relating to credit for alcohol used as a fuel) is amended by 
adding at the end the following new subsection:
    ``(g) Phase-Out of Credit for Alcohol Produced From Feedstocks 
Eligible To Receive Federal Agricultural Subsidies.--
            ``(1) In general.--No credit shall be allowed under this 
        section with respect to any alcohol, or fuel containing 
        alcohol, which is produced from any feedstock which is a 
        subsidized agricultural commodity.
            ``(2) Phase-in of disallowance.--In the case of taxable 
        years beginning in 1995 and 1996, paragraph (1) shall not apply 
        and the credit determined under this section with respect to 
        alcohol or fuels described in paragraph (1) shall be equal to 
        67 percent (33 percent in the case of taxable years beginning 
        in 1996) of the credit determined without regard to this 
        subsection.
            ``(3) Subsidized agricultural commodity.--For purposes of 
        this subsection, the term `subsidized agricultural commodity' 
        means any agricultural commodity which is supported, or is 
        eligible to be supported, by a price support or production 
        adjustment program carried out by the Secretary of 
        Agriculture.''.
    (b) Excise Tax Reduction.--
            (1) Petroleum products.--Section 4081(c) of the Internal 
        Revenue Code of 1986 (relating to taxable fuels mixed with 
        alcohol) is amended by redesignating paragraph (8) as paragraph 
        (9) and by adding after paragraph (7) the following new 
        paragraph:
            ``(8) Phase-out of subsidy for alcohol produced from 
        feedstocks eligible to receive federal agricultural 
        subsidies.--
                    ``(A) In general.--This subsection shall not apply 
                to any qualified alcohol mixture containing alcohol 
                which is produced from any feedstock which is a 
                subsidized agricultural commodity.
                    ``(B) Phase-in of disallowance.--In the case of 
                calendar years 1995 and 1996, the rate of tax under 
                subsection (a) with respect to any qualified alcohol 
                mixture described in subparagraph (A) shall be equal to 
                the sum of--
                            ``(i) the rate of tax determined under this 
                        subsection (without regard to this paragraph), 
                        plus
                            ``(ii) 33 percent (67 percent in the case 
                        of 1996) of the difference between the rate of 
                        tax under subsection (a) determined with and 
                        without regard to this subsection.
                    ``(C) Subsidized agricultural commodity.--For 
                purposes of this paragraph, the term `subsidized 
                agricultural commodity' means any agricultural 
                commodity which is supported, or is eligible to be 
                supported, by a price support or production adjustment 
                program carried out by the Secretary of Agriculture.''.
            (2) Special fuels.--Section 4041 of such Code (relating to 
        tax on special fuels) is amended by adding at the end the 
        following new subsection:
    ``(n) Phase-Out of Subsidy for Alcohol Produced From Feedstocks 
Eligible To Receive Federal Agricultural Subsidies.--
            ``(1) In general.--Subsections (b)(2), (k), and (m) shall 
        not apply to any alcohol fuel containing alcohol which is 
        produced from any feedstock which is a subsidized agricultural 
        commodity.
            ``(2) Phase-in of disallowance.--In the case of calendar 
        years 1995 and 1996, the rate of tax determined under 
        subsection (b)(2), (k), or (m) with respect to any alcohol fuel 
        described in paragraph (1) shall be equal to the sum of--
                    ``(A) the rate of tax determined under such 
                subsection (without regard to this subsection), plus
                    ``(B) 33 percent (67 percent in the case of 1996) 
                of the difference between the rate of tax under this 
                section determined with and without regard to 
                subsection (b)(2), (k), or (m), whichever is 
                applicable.
            ``(3) Subsidized agricultural commodity.--For purposes of 
        this subsection, the term `subsidized agricultural commodity' 
        means any agricultural commodity which is supported, or is 
        eligible to be supported, by a price support or production 
        adjustment program carried out by the Secretary of 
        Agriculture.''.
            (3) Aviation fuel.--Section 4091(c) of such Code (relating 
        to reduced rate of tax for aviation fuel in alcohol mixture) is 
        amended by redesignating paragraph (5) as paragraph (6) and by 
        inserting after paragraph (4) the following new paragraph:
            ``(5) Phase-out of subsidy for alcohol produced from 
        feedstocks eligible to receive federal agricultural 
        subsidies.--
                    ``(A) In general.--This subsection shall not apply 
                to any mixture of aviation fuel containing alcohol 
                which is produced from any feedstock which is a 
                subsidized agricultural commodity.
                    ``(B) Phase-in of disallowance.--In the case of 
                calendar years 1995 and 1996, the rate of tax under 
                subsection (a) with respect to any mixture of aviation 
                fuel described in subparagraph (A) shall be equal to 
                the sum of--
                            ``(i) the rate of tax determined under this 
                        subsection (without regard to this paragraph), 
                        plus
                            ``(ii) 33 percent (67 percent in the case 
                        of 1996) of the difference between the rate of 
                        tax under subsection (a) determined with and 
                        without regard to this subsection.
                    ``(C) Subsidized agricultural commodity.--For 
                purposes of this paragraph, the term `subsidized 
                agricultural commodity' means any agricultural 
                commodity which is supported, or is eligible to be 
                supported, by a price support or production adjustment 
                program carried out by the Secretary of Agriculture.''.
    (c) Effective Dates.--
            (1) Credit.--The amendment made by subsection (a) shall 
        apply to taxable years beginning after December 31, 1994.
            (2) Excise taxes.--
                    (A) In general.--The amendments made by subsection 
                (b) shall take effect on January 1, 1995.
                    (B) Floor stock tax.--
                            (i) In general.--In the case of any alcohol 
                        fuel in which tax was imposed under section 
                        4041, 4081, or 4091 of the Internal Revenue 
                        Code of 1986 before any tax-increase date, and 
                        which is held on such date by any person, then 
                        there is hereby imposed a floor stock tax on 
                        such fuel equal to the difference between the 
                        tax imposed under such section on such date and 
                        the tax so imposed.
                            (ii) Liability for tax and method of 
                        payment.--A person holding an alcohol fuel on 
                        any tax-increase date shall be liable for such 
                        tax, shall pay such tax no later than 90 days 
                        after such date, and shall pay such tax in such 
                        manner as the Secretary may prescribe.
                            (iii) Exceptions.--The tax imposed by 
                        clause (i) shall not apply--
                                    (I) to any fuel held in the tank of 
                                a motor vehicle or motorboat, or
                                    (II) to any fuel held by a person 
                                if, on the tax-increase date, the 
                                aggregate amount of fuel held by such 
                                person and any related persons does not 
                                exceed 2,000 gallons.
                            (iv) Tax-increase date.--For purposes of 
                        this subparagraph, the term ``tax-increase 
                        date'' means January 1, 1995, and January 1, 
                        1996.
                            (v) Other laws applicable.--All provisions 
                        of law, including penalties applicable with 
                        respect to the taxes imposed by sections 4041, 
                        4081, and 4091 of such Code shall, insofar as 
                        applicable and not inconsistent with the 
                        provisions of this subparagraph, apply with 
                        respect to the floor stock taxes imposed by 
                        clause (i).

SEC. 2. PORTION OF INCREASED REVENUES DEPOSITED INTO HARBOR MAINTENANCE 
              TRUST FUND.

    (a) Dredging Material Account.--Section 9505 of the Internal 
Revenue Code of 1986 (relating to Harbor Maintenance Trust Fund) is 
amended by adding at the end the following new subsection:
    ``(d) Dredging Material Account.--
            ``(1) Creation of account.--There is established in the 
        Harbor Maintenance Trust Fund a separate account to be known as 
        the `Dredging Material Account' consisting of such amounts as 
        may be appropriated or credited to the Dredging Material 
        Account as provided in this subsection or 9602(b).
            ``(2) Transfers to account.--There is hereby appropriated 
        to the Dredging Material Account amounts equivalent to 50 
        percent of the sum of--
                    ``(A) the aggregate increase in tax liabilities 
                under chapter 1 which is attributable to section 40(g), 
                and
                    ``(B) the aggregate increase in taxes received in 
                the Treasury which is attributable to sections 4041(n), 
                4081(c)(8), and 4091(c)(5).
            ``(3) Expenditures.--Amounts in the Dredging Material 
        Account shall be available, as provided in appropriation Acts, 
        for--
                    ``(A) research and development of dredged material 
                decontamination technologies, and
                    ``(B) research, development, and construction of 
                facilities for dredged material containment or disposal 
                (other than open water disposal).''
    (b) No Transfers To Other Trust Funds.--
            (1) Subsection (e) of section 9502 of such Code (relating 
        to special rules for transfers to Airport and Airway Trust 
        Fund) is amended by adding at the end the following new 
        paragraph:
            ``(3) Certain additional taxes to remain in general fund.--
        The amount required to be appropriated by subsection (b) shall 
        be determined without regard to any increase in taxes by reason 
        of sections 4041(n), 4081(c)(8), and 4091(c)(5).''
            (2) Paragraph (4) of section 9503(b) of such Code (relating 
        to certain additional taxes not transferred to Highway Trust 
        Fund) is amended by striking ``and'' at the end of subparagraph 
        (A), by striking the period at the end of subparagraph (B) and 
        inserting ``, and'', and by adding at the end the following new 
        subparagraph:
                    ``(C) there shall not be taken into account any 
                increase in taxes by reason of sections 4041(n) and 
                4081(c)(8).''
Output: Amends the Internal Revenue Code to phase out the tax subsidies for alcohol fuels produced from feedstocks which are eligible to receive Federal agricultural subsidies. 
Amends the Internal Revenue Code to establish the Dredging Material Account in the Harbor Maintenance Trust Fund.  Transfers 50 percent of the amounts received from increased tax liabilities under this Act to such Account.