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H.R. 3840 (104th): Transportation Empowerment Act

The text of the bill below is as of Jul 17, 1996 (Introduced).


HR 3840 IH

104th CONGRESS

2d Session

H. R. 3840

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

IN THE HOUSE OF REPRESENTATIVES

July 17, 1996

Mr. KASICH (for himself, Mrs. THURMAN, Mr. DREIER, Mr. MILLER of California, Ms. PRYCE, Mr. GILLMOR, Mr. WALKER, Mr. INGLIS of South Carolina, Mr. CONDIT, Mr. SMITH of Michigan, Mr. HOBSON, Mr. CHRYSLER, Mr. MILLER of Florida, Mr. SHAW, Mr. MCCOLLUM, and Mr. LARGENT) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


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) it is the policy of the United States to promote a modern, efficient, safe, and environmentally sound transportation network, in order to maintain and improve the quality of life in the United States, and to enable the domestic industries of the United States to be competitive in the world marketplace;

      (2)(A) Federal transportation policies no longer adequately serve the transportation needs of the United States;

      (B) Federal regulations, micromanagement, and earmarks cost States billions of dollars annually and hinder the ability of States to maintain, modernize, and expand their transportation systems; and

      (C) the legacy of our federally run transportation system will be an infrastructure that many acknowledge our present system cannot support and will not meet the needs of growing populations;

      (3)(A) maintaining a modern and efficient transportation system does not require Federal micromanagement of States’ transportation dollars;

      (B) States have the financial and technical abilities necessary to maintain and improve their transportation without paternalistic Federal oversight; and

      (C) States have the incentives and ability to maintain the quality, safety, and continuity of all roads, including routes on the Interstate System; and

      (4)(A) with the completion of the Interstate System, the transportation infrastructure needs of the United States have shifted to maintaining, modernizing, and expanding the Interstate System; and

      (B) States are faced with billions of dollars in unmet maintenance and modernization needs and a highly restrictive and costly Federal program.

    (b) PURPOSES- The purposes of this Act are--

      (1) to return primary transportation program responsibility and taxing authority to the States so as to--

        (A) free States’ transportation dollars from Federal micromanagement, earmarking, and budgetary pressures; and

        (B) enable decisions regarding which infrastructure projects will be built, how they will be financed, and how they will be regulated to be made by persons best able to make the decisions: people who drive on the highways;

      (2) through interstate compacts and in conjunction with metropolitan planning organizations established under section 134 of title 23, United States Code, to permit States to jointly plan and finance infrastructure improvements and ensure quality and continuity for infrastructure improvements without mandates from the Federal Government; and

      (3) in carrying out paragraphs (1) and (2), to reduce Federal spending and receipts by a commensurate amount in order to ensure deficit neutrality.

SEC. 3. CONTINUATION OF FUNDING FOR CORE HIGHWAY PROGRAMS.

    (a) IN GENERAL-

      (1) FUNDING- Section 1003 of the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102-240; 105 Stat. 1918) is amended by striking subsection (a) and inserting the following new subsection:

    ‘(a) HIGHWAY TRUST FUND- For the purpose of carrying out title 23, United States Code, the following sums are authorized to be appropriated out of the Highway Trust Fund:

      ‘(1) INTERSTATE MAINTENANCE PROGRAM- For the Interstate maintenance program under section 119 of the title, $2,431,000,000 for fiscal year 1992, $2,913,000,000 for fiscal year 1993, $2,914,000,000 for each of fiscal years 1994

through 1997, $2,989,000,000 for fiscal year 1998, $3,083,000,000 for fiscal year 1999, $3,170,000,000 for fiscal year 2000, and $3,259,000,000 for fiscal year 2001.

      ‘(2) BRIDGE PROGRAM-

        ‘(A) FULL BRIDGE PROGRAM- For the bridge program under section 144 of the title (as in effect on the day before the date of enactment of the Transportation Empowerment Act), $2,288,000,000 for fiscal year 1992, $2,762,000,000 for each of fiscal years 1993 through 1995, and $2,763,000,000 for each of fiscal years 1996 and 1997.

        ‘(B) INTERSTATE AND INDIAN RESERVATION BRIDGE PROGRAM- For the Interstate and Indian reservation bridge program under section 144 of the title, $1,183,000,000 for fiscal year 1998, $1,217,000,000 for fiscal year 1999, $1,251,000,000 for fiscal year 2000, and $1,286,000,000 for fiscal year 2001.

      ‘(3) FEDERAL LANDS HIGHWAYS PROGRAM-

        ‘(A) INDIAN RESERVATION ROADS- For Indian reservation roads under section 204 of the title, $159,000,000 for fiscal year 1992, $191,000,000 for each of fiscal years 1993 through 1997, $197,000,000 for fiscal year 1998, $202,000,000 for fiscal year 1999, $208,000,000 for fiscal year 2000, and $214,000,000 for fiscal year 2001.

        ‘(B) PUBLIC LANDS HIGHWAYS- For public lands highways under section 204 of the title, $143,000,000 for fiscal year 1992, $171,000,000 for each of fiscal years 1993 through 1995, $172,000,000 for each of fiscal years 1996 and 1997, $177,000,000 for fiscal year 1998, $182,000,000 for fiscal year 1999, $187,000,000 for fiscal year 2000, and $192,000,000 for fiscal year 2001.

        ‘(C) PARKWAYS AND PARK ROADS- For parkways and park roads under section 204 of the title, $69,000,000 for fiscal year 1992, $83,000,000 for each of fiscal years 1993 through 1995, $84,000,000 for each of fiscal years 1996 and 1997, $86,000,000 for fiscal year 1998, $89,000,000 for fiscal year 1999, $91,000,000 for fiscal year 2000, and $94,000,000 for fiscal year 2001.’.

      (2) FEDERAL-AID SYSTEM- Section 103(a) of title 23, United States Code, is amended by striking ‘systems are the Interstate System and the National Highway System’ and inserting ‘system is the Interstate System’.

      (3) INTERSTATE MAINTENANCE PROGRAM- Section 119(f) of title 23, United States Code, is amended--

        (A) in paragraph (1), by striking ‘If’ and inserting ‘For each of fiscal years 1991 through 1997, if’; and

        (B) in paragraph (2)(B), by inserting ‘through fiscal year 1997’ after ‘thereafter’.

      (4) INTERSTATE BRIDGE PROGRAM- Section 144 of title 23, United States Code, is amended--

        (A) in subsection (d)--

          (i) by inserting ‘on the Federal-aid system or described in subsection (c)(3)’ after ‘highway bridge’ each place it appears; and

          (ii) by inserting ‘on the Federal-aid system or described in subsection (c)(3)’ after ‘highway bridges’ each place it appears;

        (B) in the second sentence of subsection (e)--

          (i) in paragraph (1), by adding ‘and’ at the end;

          (ii) in paragraph (2), by striking the comma at the end and inserting a period; and

          (iii) by striking paragraphs (3) and (4);

        (C) in the first sentence of subsection (l), by inserting ‘on the Federal-aid system or described in subsection (c)(3)’ after ‘any bridge’;

        (D) in subsection (m), by inserting ‘on the Federal-aid system or described in subsection (c)(3)’ after ‘any bridge’; and

        (E) in the first sentence of subsection (n), by inserting ‘for each of fiscal years 1991 through 1997,’ after ‘of law,’.

      (5) NATIONAL DEFENSE HIGHWAYS- Section 311 of title 23, United States Code, is amended--

        (A) in the first sentence, by striking ‘under subsection (a) of section 104 of this title’ and inserting ‘to carry out this section’; and

        (B) by striking the second sentence.

      (6) TERMINATION OF MINIMUM ALLOCATION- Section 157 of title 23, United States Code, is amended--

        (A) in subsection (a)(4), by striking ‘fiscal year 1992 and each fiscal year thereafter’ and inserting ‘each of fiscal years 1992 through 1997’; and

        (B) in subsection (e), by striking ‘the fiscal years ending on or after September 30, 1983’ and inserting ‘fiscal years 1983 through 1997’.

    (b) EXPENDITURES FROM HIGHWAY TRUST FUND-

      (1) EXPENDITURES FOR CORE PROGRAMS- Subsection (c) of section 9503 of the Internal Revenue Code of 1986 (relating to expenditures from Highway Trust Fund) is amended--

        (A) by striking ‘October 1, 1997’ each place it appears in paragraphs (1), (4)(A)(i), and (5)(A) and inserting ‘October 1, 2001’;

        (B) by striking ‘as in effect on the date of the enactment of the Intermodal Surface Transportation Efficiency Act of 1991’ in paragraph (1) and inserting ‘as in effect on the date of the enactment of the Transportation Empowerment Act’;

        (C) by striking ‘July 1, 2000’ each place it appears in paragraphs (2)(A)(i) and (3) and inserting ‘July 1, 2002’;

        (D) by striking ‘October 1, 1999’ in paragraph (2)(A)(ii) and inserting ‘October 1, 2001’;

        (E) by striking ‘January 1, 1999’ in paragraph (2)(A)(ii) and inserting ‘January 1, 2001’; and

        (F) by striking ‘September 30, 1997’ in paragraph (6)(E) and inserting ‘September 30, 2001’.

      (2) AMOUNTS AVAILABLE FOR CORE PROGRAM EXPENDITURES- Section 9503 of such Code (relating to the Highway Trust Fund) is amended by adding at the end the following new subsection:

    ‘(g) CORE PROGRAMS FINANCING RATE- For purposes of this section--

      ‘(1) IN GENERAL- Except as provided in paragraph (2), in the case of gasoline, special motor fuels, and diesel fuel, the core programs financing rate is--

        ‘(A) after September 30, 1997, and before October 1, 1998, so much of the Highway Trust Fund financing rate as does not exceed 7 cents per gallon,

        ‘(B) after September 30, 1998, and before October 1, 1999, so much of the Highway Trust Fund financing rate as does not exceed 2 cents per gallon, and

        ‘(C) after September 30, 1999, the Highway Trust Fund financing rate.

      ‘(2) APPLICATION OF RATE- In the case of fuels used as described in paragraph (4)(D), (5)(B), or (6)(D) of subsection (c), the core programs financing rate is zero.’.

    (c) TERMINATION OF TRANSFERS TO MASS TRANSIT ACCOUNT-

      (1) IN GENERAL- Paragraph (2) of section 9503(e) of such Code (relating to Mass Transit Account) is amended by striking ‘2 cents’ and inserting ‘2 cents (zero, on and after October 1, 1997)’.

      (2) AUTHORIZATION TO EXPEND REMAINING BALANCES IN ACCOUNT- Paragraph (3) of section 9503(e) of such Code is amended by striking ‘before October 1, 1997’.

    (d) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 1997.

SEC. 4. INFRASTRUCTURE SPECIAL ASSISTANCE FUND.

    (a) BALANCE OF CORE PROGRAMS FINANCING RATE DEPOSITED IN FUND-

      (1) IN GENERAL- Section 9503 of the Internal Revenue Code of 1986, as amended by section 3(b)(2), is amended by adding at the end the following new subsection:

    ‘(h) ESTABLISHMENT OF INFRASTRUCTURE SPECIAL ASSISTANCE FUND-

      ‘(1) CREATION OF FUND- There is established in the Highway Trust Fund a separate fund to be known as the ‘Infrastructure Special Assistance Fund’ consisting of such amounts as may be transferred or credited to the Infrastructure Special Assistance Fund as provided in this subsection or section 9602(b).

      ‘(2) TRANSFERS TO INFRASTRUCTURE SPECIAL ASSISTANCE FUND- On the first day of each fiscal year, the Secretary, in consultation with the Secretary of Transportation, shall determine the excess (if any) of--

        ‘(A) the sum of--

          ‘(i) the amounts appropriated in such fiscal year to the Highway Trust Fund under subsection (b) which are attributable to the core programs financing rate for such year, plus

          ‘(ii) the amounts appropriated in such fiscal year to the Highway Trust Fund under subsection (b) which are attributable to taxes under sections 4051, 4061, 4071, and 4481 for such year, plus

          ‘(iii) the amount of the total unobligated balance in the Highway Trust Fund for such fiscal year, over

        ‘(B) the amount appropriated under subsection (c)(1) for such fiscal year,

      and shall transfer such excess to the Infrastructure Special Assistance Fund.

      ‘(3) EXPENDITURES FROM FUND- Amounts in the Infrastructure Special Assistance Fund shall be available, as provided by appropriation Acts, for making expenditures under transportation-related programs as authorized by law.’.

      (2) EFFECTIVE DATE- The amendment made by this subsection shall take effect on October 1, 1997.

    (b) FUNDING OF OTHER PROGRAMS-

      (1) IN GENERAL- Not later than 90 days after the date of enactment of this Act, the Secretary of Transportation shall submit a report to Congress proposing which programs established under titles 23 and 49, United States Code, and the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102-240) that are not funded under the amendments made by this Act should be funded for fiscal year 1998 and later fiscal years using amounts in the Infrastructure Special Assistance Fund established by section 9503(h) of the Internal Revenue Code of 1986 (as added by subsection (a)).

      (2) TYPES OF PROGRAMS- Programs for which funding may be proposed under paragraph (1) include--

        (A) safety programs;

        (B) research and development programs; and

        (C) projects for highway improvements strategically important to the national defense under section 311 of title 23, United States Code.

SEC. 5. 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 new paragraph:

      ‘(7) RETURN OF EXCESS TAX RECEIPTS TO STATES FOR TRANSPORTATION PURPOSES- On the first day of each of fiscal years 1998 and 1999, the Secretary, in consultation with the Secretary of the Transportation, shall--

        ‘(A) determine the excess (if any) of--

          ‘(i) the amounts appropriated in such fiscal year to the Highway Trust Fund under subsection (b) which are equivalent to the taxes attributable to the excess of--

            ‘(I) the Highway Trust Fund financing rate for such year, over

            ‘(II) the core programs financing rate for such year, over

          ‘(ii) the amounts so appropriated which are equivalent to the taxes described in paragraphs (4)(D), (5)(B), and (6)(D), and

        ‘(B) allocate the amount determined under subparagraph (A) among the States (as defined in section 101 of title 23, United States Code) so that--

          ‘(i) the percentage of that amount allocated to each State, is equal to

          ‘(ii) the percentage of the amount determined under subparagraph (A)(i) paid into the Highway Trust Fund in the latest fiscal year for which such data are available that is attributable to highway users in the State.’.

    (b) EFFECTIVE DATE- The amendment made by this section shall take effect on October 1, 1997.

SEC. 6. INTERSTATE TRANSPORTATION COMPACTS.

    (a) CONSENT OF CONGRESS- In order to increase public investment, attract needed private investment, and promote an intermodal transportation network, Congress grants consent to States to enter into interstate compacts to--

      (1) promote the continuity, quality, and safety of the Interstate System;

      (2) develop programs to promote and fund safety initiatives and establish safety standards for the States that are parties to the compact (referred to in this section as ‘participating States’);

      (3) conduct long-term planning for transportation infrastructure in the participating States;

      (4) develop transportation infrastructure design and construction standards to be used by the participating States; and

      (5) establish transportation infrastructure banks to promote regional or other multistate investment in transportation infrastructure.

    (b) FINANCING- An interstate compact established by States under subsection (a) to carry out a transportation project, program, or activity may provide that, in order to carry out the compact, the States may--

      (1) accept contributions from a unit of State or local government or a person;

      (2) use any Federal or State funds made available for that type of transportation project, program, or activity;

      (3) on such terms and conditions as the States consider advisable--

        (A) borrow money on a short-term basis and issue notes for the borrowing; and

        (B) issue bonds; and

      (4) obtain financing by other means permitted under Federal or State law, including transportation infrastructure banks under subsection (c).

    (c) INFRASTRUCTURE BANKS-

      (1) IN GENERAL- A transportation infrastructure bank established under an interstate compact under subsection (a)(5) (referred to in this subsection as an ‘infrastructure bank’) may--

        (A) make loans;

        (B) under the joint or separate authority of the participating States with respect to the infrastructure bank, issue such debt as the infrastructure bank and the States determine appropriate; and

        (C) provide other assistance to public or private entities constructing, or proposing to construct or initiate, transportation projects, programs, or activities.

      (2) FORMS OF ASSISTANCE-

        (A) IN GENERAL- An infrastructure bank may make a loan or provide other assistance described in subparagraph (C) to a public or private entity in an amount equal to all or part of the construction cost, capital cost, or initiation cost of a transportation project, program, or activity.

        (B) SUBORDINATION OF ASSISTANCE- The amount of any loan or other assistance described in subparagraph (C) that is received for a transportation project, program, or activity under this section may be subordinated to any other debt financing for the project, program, or activity.

        (C) OTHER ASSISTANCE- Other assistance referred to in subparagraphs (A) and (B) includes any use of funds for the purpose of--

          (i) credit enhancement;

          (ii) a capital reserve for bond or debt instrument financing;

          (iii) bond or debt instrument financing issuance costs;

          (iv) bond or debt issuance financing insurance;

          (v) subsidization of interest rates;

          (vi) letters of credit;

          (vii) any credit instrument;

          (viii) bond or debt financing instrument security; and

          (ix) any other form of debt financing that relates to the qualifying project, program, or activity.

      (3) NO OBLIGATION OF UNITED STATES-

        (A) IN GENERAL- The approval under this section of an infrastructure bank does not constitute a commitment, guarantee, or obligation on the part of the United States to any third party with respect to any security or debt financing instrument issued by the bank. No third party shall have any right against the United States for payment solely by reason of the approval.

        (B) STATEMENT ON INSTRUMENT- Any security or debt financing instrument issued by an infrastructure bank shall expressly state that the security or instrument does not constitute a commitment, guarantee, or obligation of the United States.

    (d) EFFECTIVE DATE- This section shall take effect on October 1, 1997.

SEC. 7. FEDERAL-AID FACILITY PRIVATIZATION.

    (a) DEFINITIONS- In this section:

      (1) EXECUTIVE AGENCY- The term ‘Executive agency’ has the meaning provided in section 105 of title 5, United States Code.

      (2) PRIVATIZATION- The term ‘privatization’ means the disposition or transfer of a transportation infrastructure asset, whether by sale, lease, or similar arrangement, from a State or local government to a private party.

      (3) STATE OR LOCAL GOVERNMENT- The term ‘State or local government’ means the government of--

        (A) any State;

        (B) the District of Columbia;

        (C) any commonwealth, territory, or possession of the United States;

        (D) any county, municipality, city, town, township, local public authority, school district, special district, intrastate district, regional or interstate government entity, council of governments, or agency or instrumentality of a local government; or

        (E) any federally recognized Indian tribe.

      (4) TRANSPORTATION INFRASTRUCTURE ASSET- The term ‘transportation infrastructure asset’ means any transportation-related asset financed in whole or in part by the Federal Government, including a road, tunnel, or bridge, or mass transit.

    (b) PRIVATIZATION INITIATIVES BY STATE AND LOCAL GOVERNMENTS- The head of each Executive agency shall--

      (1) assist State and local governments in efforts to privatize the transportation infrastructure assets of the State and local governments; and

      (2) subject to subsection (c), approve requests from State and local governments to privatize transportation infrastructure assets and waive or modify any grant condition.

    (c) CRITERIA- The head of an Executive agency shall approve a request described in subsection (b)(2) if--

      (1) the State or local government demonstrates that a market mechanism, legally enforceable agreement, or regulatory mechanism will ensure that the transportation infrastructure asset will continue to be used for the general objectives of the original grant program (which shall not be considered to include every condition required for the grantee to have obtained the original grant) that funded the asset, so long as needed for those objectives; and

      (2) the private party purchasing or leasing the transportation infrastructure asset agrees to comply with all applicable grant conditions.

    (d) LACK OF OBLIGATION TO REPAY FEDERAL GRANT FUNDS- A State or local government shall have no obligation to repay to any agency of the Federal Government any Federal grant funds received by the State or local government in connection with a transportation infrastructure asset that is privatized under this section.

    (e) USE OF PROCEEDS-

      (1) IN GENERAL- Subject to paragraph (2), a State or local government may use proceeds from the privatization of a transportation infrastructure asset to the extent permitted under applicable grant conditions.

      (2) RECOVERY OF CERTAIN COSTS- Notwithstanding any other provision of law, the State or local government shall be permitted to recover from the privatization of a transportation infrastructure asset--

        (A) the capital investment in the transportation infrastructure asset made by the State or local government;

        (B) an amount equal to the unreimbursed operating expenses in the transportation infrastructure asset paid by the State or local government; and

        (C) a reasonable rate of return on the investment made under subparagraph (A) and expenses paid under subparagraph (B).

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

    (a) IN GENERAL- Section 4081(a)(2)(A) of the Internal Revenue Code of 1986 (relating to rates of tax) is amended--

      (1) by striking ‘18.3 cents’ in clause (i) and inserting ‘6.3 cents’; and

      (2) by striking ‘24.3 cents’ in clause (ii) and inserting ‘6.3 cents’.

    (b) SAME RATE FOR ALCOHOL FUELS-

      (1) IN GENERAL- Paragraph (8) of section 4081(c) of the Internal Revenue Code of 1986 (relating to taxable fuels mixed with alcohol) is amended by striking ‘September 30, 2000’ and inserting ‘September 30, 1999’.

      (2) CONFORMING AMENDMENTS-

        (A) Section 4041(b)(2)(C) of such Code is amended to read as follows:

        ‘(C) TERMINATION-

          ‘(i) IN GENERAL- On and after October 1, 1999, subparagraph (A)(i) shall not apply.

          ‘(ii) LUST- On and after October 1, 2000, subparagraph (A)(ii) shall not apply.’.

        (B) Section 4041(k)(3) of such Code is amended to read as follows:

      ‘(3) TERMINATION-

        ‘(A) IN GENERAL- Paragraph (1)(A) shall not apply to any sale or use after September 30, 1999.

        ‘(B) AVIATION- Subparagraphs (B) and (C) of paragraph (1) shall not apply to any sale or use after September 30, 2000.’.

        (C) Section 4041(m)(1)(A) of such Code is amended by striking clauses (i) and (ii) and inserting the following new clauses:

          ‘(i) 6.3 cents per gallon for the period beginning after September 30, 1999, and ending before October 1, 2001, and

          ‘(ii) 4.3 cents per gallon after September 30, 2001, and’.

        (D) Section 9503(f) of such Code is amended by striking paragraph (3) and redesignating paragraph (4) as paragraph (3).

    (c) REDUCTION IN HIGHWAY TRUST FUND FINANCING RATE-

      (1) IN GENERAL- Section 9503(f) of the Internal Revenue Code of 1986 (defining Highway Trust Fund financing rate) is amended--

        (A) by striking ‘11.5 cents per gallon (14 cents per gallon after September 30, 1995)’ in paragraph (1)(A) and inserting ‘2 cents per gallon’; and

        (B) by striking ‘17.5 cents per gallon (20 cents per gallon after September 30, 1995)’ in paragraph (1)(B) and inserting ‘2 cents per gallon’.

      (2) CONFORMING AMENDMENTS-

        (A) Section 9503(f)(2)(B) of such Code is amended by striking ‘3 cents’ and inserting ‘2 cents’.

        (B) Section 9503(f)(2)(E) of such Code is amended--

          (i) by striking ‘11.5 cents’ and inserting ‘2 cents’; and

          (ii) by striking ‘17.5 cents’ and inserting ‘2 cents’.

        (C) Section 9503(f)(4) of such Code is amended by striking ‘June 30, 2000’ and inserting ‘September 30, 2001’.

    (d) ADDITIONAL CONFORMING AMENDMENTS-

      (1) Section 4041(a)(1)(C) of the Internal Revenue Code of 1986 is amended--

        (A) by striking ‘October 1, 1999’ in clause (ii)(II) and inserting October 1, 2001’;

        (B) by striking ‘September 30, 1999’ in clause (ii)(III) and inserting September 30, 2001’; and

        (C) by striking ‘7.3 cents per gallon (4.3 cents per gallon after September 30, 1999)’ in clause (iii)(I) and inserting ‘6.3 cents per gallon (4.3 cents per gallon after September 30, 2001)’.

      (2) Section 4081(d)(1) of such Code is amended by striking ‘October 1, 1999’ and inserting ‘October 1, 2001’.

      (3) Section 6421(e)(2)(B)(iv) of such Code is amended--

        (A) by striking ‘January 1, 2000’ in subclause (I) and inserting ‘October 1, 2001’; and

        (B) by striking ‘December 31, 1999’ in subclause (II) and inserting ‘September 30, 2001’.

      (4) Section 6421(f)(3)(B) of such Code is amended--

        (A) by striking ‘October 1, 1999’ in clause (ii) and inserting October 1, 2001’; and

        (B) by striking ‘September 30, 1999’ in clause (iii) and inserting September 30, 2001’.

      (5) Section 6427(b)(2)(A) of such Code is amended by striking ‘7.4 cents’ and inserting ‘1.9 cents’.

      (6) Section 6427(l)(3)(B) of such Code is amended--

        (A) by striking ‘October 1, 1999’ in clause (ii) and inserting October 1, 2001’; and

        (B) by striking ‘September 30, 1999’ in clause (iii) and inserting September 30, 2001’.

      (7) Subsection (b) of section 9503 of such Code is amended--

        (A) by striking ‘October 1, 1999’ both places it appears in paragraphs (1) and (2) and inserting ‘October 1, 2001’;

        (B) by striking ‘OCTOBER 1, 1999’ in the heading of paragraph (2) and inserting ‘OCTOBER 1, 2001’;

        (C) by striking ‘after September 30, 1999, and before July 1, 2000’ in paragraph (2) and inserting ‘after September 30, 2001, and before July 1, 2002’; and

        (D) by inserting ‘before October 1, 1999,’ after ‘paragraph (1)’ in paragraph (5).

    (e) FLOOR STOCK REFUNDS-

      (1) IN GENERAL- If--

        (A) before October 1, 1999, 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, 2000; and

        (B) in any case where liquid is held by a dealer (other than the taxpayer) on October 1, 1999--

          (i) the dealer submits a request for refund or credit to the taxpayer before January 1, 2000; 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.

    (f) EFFECTIVE DATE- The amendments made by this section shall apply to fuel removed after September 30, 1999.

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 a report to Congress describing technical and conforming amendments to titles 23 and 49, United States Code, and other laws that are appropriate in light of the amendments made by this Act.