[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3415 Referred in Senate (RFS)]

  2d Session
                                H. R. 3415


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 1996

                                Received

                             June 25, 1996

          Read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 AN ACT


 
   To amend the Internal Revenue Code of 1986 to repeal the 4.3-cent 
increase in the transportation motor fuels excise tax rates enacted by 
  the Omnibus Budget Reconciliation Act of 1993 and dedicated to the 
                     general fund of the Treasury.

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

SECTION 1. PURPOSE.

    The purpose of this Act is to repeal the 4.3-cent increase in the 
transportation motor fuels excise tax rates enacted by the Omnibus 
Budget Reconciliation Act of 1993 and dedicated to the general fund of 
the Treasury.

SEC. 2. REPEAL OF 4.3-CENT INCREASE IN FUEL TAX RATES ENACTED BY THE 
              OMNIBUS BUDGET RECONCILIATION ACT OF 1993 AND DEDICATED 
              TO GENERAL FUND OF THE TREASURY.

    (a) In General.--Section 4081 of the Internal Revenue Code of 1986 
(relating to imposition of tax on gasoline and diesel fuel) is amended 
by adding at the end the following new subsection:
    ``(f) Repeal of 4.3-Cent Increase in Fuel Tax Rates Enacted by the 
Omnibus Budget Reconciliation Act of 1993 and Dedicated to General Fund 
of the Treasury.--
            ``(1) In general.--During the applicable period, each rate 
        of tax referred to in paragraph (2) shall be reduced by 4.3 
        cents per gallon.
            ``(2) Rates of tax.--The rates of tax referred to in this 
        paragraph are the rates of tax otherwise applicable under--
                    ``(A) subsection (a)(2)(A) (relating to gasoline 
                and diesel fuel),
                    ``(B) sections 4091(b)(3)(A) and 4092(b)(2) 
                (relating to aviation fuel),
                    ``(C) section 4042(b)(2)(C) (relating to fuel used 
                on inland waterways),
                    ``(D) paragraph (1) or (2) of section 4041(a) 
                (relating to diesel fuel and special fuels),
                    ``(E) section 4041(c)(2) (relating to gasoline used 
                in noncommercial aviation), and
                    ``(F) section 4041(m)(1)(A)(i) (relating to certain 
                methanol or ethanol fuels).
            ``(3) Comparable treatment for compressed natural gas.--No 
        tax shall be imposed by section 4041(a)(3) on any sale or use 
        during the applicable period.
            ``(4) Comparable treatment under certain refund rules.--In 
        the case of fuel on which tax is imposed during the applicable 
        period, each of the rates specified in sections 6421(f)(2)(B), 
        6421(f)(3)(B)(ii), 6427(b)(2)(A), 6427(l)(3)(B)(ii), and 
        6427(l)(4)(B) shall be reduced by 4.3 cents per gallon.
            ``(5) Coordination with highway trust fund deposits.--In 
        the case of fuel on which tax is imposed during the applicable 
        period, each of the rates specified in subparagraphs (A)(i) and 
(C)(i) of section 9503(f)(3) shall be reduced by 4.3 cents per gallon.
            ``(6) Applicable period.--For purposes of this subsection, 
        the term `applicable period' means the period after the 6th day 
        after the date of the enactment of this subsection and before 
        January 1, 1997.''
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. FLOOR STOCK REFUNDS.

    (a) In General.--If--
            (1) before the tax repeal date, tax has been imposed under 
        section 4081 or 4091 of the Internal Revenue Code of 1986 on 
        any liquid, and
            (2) 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 (hereafter in this section 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.
    (b) Time For Filing Claims.--No credit or refund shall be allowed 
or made under this section unless--
            (1) claim therefor is filed with the Secretary of the 
        Treasury before the date which is 6 months after the tax repeal 
        date, and
            (2) in any case where liquid is held by a dealer (other 
        than the taxpayer) on the tax repeal date--
                    (A) the dealer submits a request for refund or 
                credit to the taxpayer before the date which is 3 
                months after the tax repeal date, and
                    (B) 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.
    (c) Exception for Fuel Held in Retail Stocks.--No credit or refund 
shall be allowed under this section with respect to any liquid in 
retail stocks held at the place where intended to be sold at retail.
    (d) Definitions.--For purposes of this section--
            (1) 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, and
            (2) the term ``tax repeal date'' means the 7th day after 
        the date of the enactment of this Act.
    (e) Certain Rules To Apply.--Rules similar to the rules of 
subsections (b) and (c) of section 6412 of such Code shall apply for 
purposes of this section.

SEC. 4. FLOOR STOCKS TAX.

    (a) Imposition of Tax.--In the case of any liquid on which tax was 
imposed under section 4081 or 4091 of the Internal Revenue Code of 1986 
before January 1, 1997, and which is held on such date by any person, 
there is hereby imposed a floor stocks tax of 4.3 cents per gallon.
    (b) Liability for Tax and Method of Payment.--
            (1) Liability for tax.--A person holding a liquid on 
        January 1, 1997, to which the tax imposed by subsection (a) 
        applies shall be liable for such tax.
            (2) Method of payment.--The tax imposed by subsection (a) 
        shall be paid in such manner as the Secretary shall prescribe.
            (3) Time for payment.--The tax imposed by subsection (a) 
        shall be paid on or before June 30, 1997.
    (c) Definitions.--For purposes of this section--
            (1) Held by a person.--A liquid shall be considered as 
        ``held by a person'' if title thereto has passed to such person 
        (whether or not delivery to the person has been made).
            (2) Gasoline and diesel fuel.--The terms ``gasoline'' and 
        ``diesel fuel'' have the respective meanings given such terms 
        by section 4083 of such Code.
            (3) Aviation fuel.--The term ``aviation fuel'' has the 
        meaning given such term by section 4093 of such Code.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or his delegate.
    (d) Exception for Exempt Uses.--The tax imposed by subsection (a) 
shall not apply to gasoline, diesel fuel, or aviation fuel held by any 
person exclusively for any use to the extent a credit or refund of the 
tax imposed by section 4081 or 4091 of such Code is allowable for such 
use.
    (e) Exception for Fuel Held in Vehicle Tank.--No tax shall be 
imposed by subsection (a) on gasoline or diesel fuel held in the tank 
of a motor vehicle or motorboat.
    (f) Exception for Certain Amounts of Fuel.--
            (1) In general.--No tax shall be imposed by subsection 
        (a)--
                    (A) on gasoline held on January 1, 1997, by any 
                person if the aggregate amount of gasoline held by such 
                person on such date does not exceed 4,000 gallons, and
                    (B) on diesel fuel or aviation fuel held on such 
                date by any person if the aggregate amount of diesel 
                fuel or aviation fuel held by such person on such date 
                does not exceed 2,000 gallons.
        The preceding sentence shall apply only if such person submits 
        to the Secretary (at the time and in the manner required by the 
        Secretary) such information as the Secretary shall require for 
        purposes of this paragraph.
            (2) Exempt fuel.--For purposes of paragraph (1), there 
        shall not be taken into account fuel held by any person which 
        is exempt from the tax imposed by subsection (a) by reason of 
        subsection (d) or (e).
            (3) Controlled groups.--For purposes of this subsection--
                    (A) Corporations.--
                            (i) In general.--All persons treated as a 
                        controlled group shall be treated as 1 person.
                            (ii) Controlled group.--The term 
                        ``controlled group'' has the meaning given to 
                        such term by subsection (a) of section 1563 of 
                        such Code; except that for such purposes the 
                        phrase ``more than 50 percent'' shall be 
                        substituted for the phrase ``at least 80 
                        percent'' each place it appears in such 
                        subsection.
                    (B) Nonincorporated persons under common control.--
                Under regulations prescribed by the Secretary, 
                principles similar to the principles of subparagraph 
                (A) shall apply to a group of persons under common 
                control where 1 or more of such persons is not a 
                corporation.
    (g) Other Law Applicable.--All provisions of law, including 
penalties, applicable with respect to the taxes imposed by section 4081 
of such Code in the case of gasoline and diesel fuel and section 4091 
of such Code in the case of aviation fuel shall, insofar as applicable 
and not inconsistent with the provisions of this subsection, apply with 
respect to the floor stock taxes imposed by subsection (a) to the same 
extent as if such taxes were imposed by such section 4081 or 4091.

SEC. 5. BENEFITS OF TAX REPEAL SHOULD BE PASSED ON TO CONSUMERS.

    (a) Passthrough to Consumers.--
            (1) Sense of congress.--It is the sense of Congress that--
                    (A) consumers immediately receive the benefit of 
                the repeal of the 4.3-cent increase in the 
                transportation motor fuels excise tax rates enacted by 
                the Omnibus Budget Reconciliation Act of 1993, and
                    (B) transportation motor fuels producers and other 
                dealers take such actions as necessary to reduce 
                transportation motor fuels prices to reflect the repeal 
                of such tax increase, including immediate credits to 
                customer accounts representing tax refunds allowed as 
                credits against excise tax deposit payments under the 
                floor stocks refund provisions of this Act.
            (2) Study.--
                    (A) In general.--The Comptroller General of the 
                United States shall conduct a study of the repeal of 
                the 4.3-cent increase in the fuel tax imposed by the 
                Omnibus Budget Reconciliation of 1993 to determine 
                whether there has been a passthrough of such repeal.
                    (B) Report.--Not later than January 31, 1997, the 
                Comptroller General of the United States shall report 
                to the Committee on Finance of the Senate and the 
                Committee on Ways and Means of the House of 
                Representatives the results of the study conducted 
                under subparagraph (A).

SEC. 6. AUTHORIZATION OF APPROPRIATIONS FOR EXPENSES OF ADMINISTRATION 
              OF THE DEPARTMENT OF ENERGY.

    Section 660 of the Department of Energy Organization Act (42 U.S.C. 
7270) is amended--
            (1) by inserting ``(a) In General.--'' before 
        ``Appropriations''; and
            (2) by adding at the end the following:
    ``(b) Fiscal Years 1997 Through 2002.--There are authorized to be 
appropriated for salaries and expenses of the Department of Energy for 
departmental administration and other activities in carrying out the 
purposes of this Act--
            ``(1) $104,000,000 for fiscal year 1997;
            ``(2) $104,000,000 for fiscal year 1998;
            ``(3) $100,000,000 for fiscal year 1999;
            ``(4) $90,000,000 for fiscal year 2000;
            ``(5) $90,000,000 for fiscal year 2001; and
            ``(6) $90,000,000 for fiscal year 2002.''.

SEC. 7. SPECTRUM AUCTIONS.

    (a) Commission Obligation to Make Additional Spectrum Available by 
Auction.--
            (1) In general.--The Federal Communications Commission 
        shall complete all actions necessary to permit the assignment, 
        by March 31, 1998, by competitive bidding pursuant to section 
        309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) of 
        licenses for the use of bands of frequencies that--
                    (A) individually span not less than 12.5 megahertz, 
                unless a combination of smaller bands can, 
                notwithstanding the provisions of paragraph (7) of such 
                section, reasonably be expected to produce greater 
                receipts;
                    (B) in the aggregate span not less than 35 
                megahertz;
                    (C) are located below 3 gigahertz; and
                    (D) have not, as of the date of enactment of this 
                Act--
                            (i) been assigned or designated by 
                        Commission regulation for assignment pursuant 
                        to such section;
                            (ii) been identified by the Secretary of 
                        Commerce pursuant to section 113 of the 
                        National Telecommunications and Information 
                        Administration Organization Act (47 U.S.C. 
                        923); or
                            (iii) reserved for Federal Government use 
                        pursuant to section 305 of the Communications 
                        Act of 1934 (47 U.S.C. 305).
            (2) Criteria for reassignment.--In making available bands 
        of frequencies for competitive bidding pursuant to paragraph 
        (1), the Commission shall--
                    (A) seek to promote the most efficient use of the 
                spectrum;
                    (B) take into account the cost to incumbent 
                licensees of relocating existing uses to other bands of 
                frequencies or other means of communication;
                    (C) take into account the needs of public safety 
                radio services;
                    (D) comply with the requirements of international 
                agreements concerning spectrum allocations; and
                    (E) take into account the costs to satellite 
                service providers that could result from multiple 
                auctions of like spectrum internationally for global 
                satellite systems.
    (b) Permanent Auction Authority.--Paragraph (11) of section 309(j) 
of the Communications Act of 1934 (47 U.S.C. 309(j)(11)) is repealed.

            Passed the House of Representatives May 21, 1996.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.

                              By Linda Nave,

                                                          Deputy Clerk.