[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 764 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 764

  To reauthorize the mass transit programs of the Federal Government.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 19, 1997

Mr. Specter (for himself, Mr. Santorum, and Mr. Lautenberg) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
  To reauthorize the mass transit programs of the Federal Government.

    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 ``Mass Transit Amendments Act of 
1997''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the United States imports more than 50 percent of the 
        oil it consumes, an amount that is increasing dramatically each 
        year, while domestic production continues to decline;
            (2) more than 20 percent of the oil purchased by the United 
        States comes from the Middle East, a historically unstable 
        region with 66 percent of the world's recoverable oil 
        resources;
            (3) nearly 4,000,000,000 gallons of gasoline are wasted 
        each year due to traffic congestion, which represents 
        approximately 94,000,000 barrels of oil;
            (4) the annual economic loss to businesses in the United 
        States caused by traffic congestion is estimated at 
        $40,000,000,000;
            (5) public transportation has been estimated to save 
        1,500,000,000 gallons annually, with each commuter who switches 
        from driving alone to using public transportation saving an 
        estimated 200 gallons of gasoline a year;
            (6) public transportation improves air quality and helps 
        urban areas achieve federally required pollution reduction 
        milestones;
            (7) citizens in urban and rural areas depend on good public 
        transportation for mobility, access to jobs and health care 
        providers, environmental control, and economic stability;
            (8) millions of Americans are employed in the transit 
        industry, operating the Nation's transit systems, manufacturing 
        the buses, trains, and other vehicles used in public 
        transportation, or serving in related capacities; and
            (9) an increased investment in public transportation will 
        reduce our dependence on foreign oil, reduce air pollution, and 
        increase access to jobs and other important destinations for 
        millions of Americans.

SEC. 3. PURPOSES.

    Section 5301(f) of title 49, United States Code, is amended--
            (1) in paragraph (4)--
                    (A) by striking ``disabilities, and'' and inserting 
                ``disabilities, individuals seeking employment or job 
                training in order to end their reliance on public 
                assistance programs, and''; and
                    (B) by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) to achieve demonstrable reductions in energy 
        consumption and air pollution through increased reliance on 
        mass transportation.''.

SEC. 4. REVERSE COMMUTE PILOT PROGRAM.

    (a) In General.--Chapter 53 of title 49, United States Code, is 
amended by inserting after section 5320 the following:
``Sec. 5320A. Reverse commute pilot program
    ``(a) Authority.--The Secretary may make grants in accordance with 
this section to States, local government authorities, and private 
nonprofit organizations to provide access to suburban employment and 
job training opportunities to residents of distressed urban areas and 
rural areas.
    ``(b) Use of Amounts.--Amounts made available to a grant recipient 
under this section may be used--
            ``(1) to subsidize the purchase or lease by a private 
        employer or public agency of a van or bus dedicated to 
        shuttling employees from their residences in distressed urban 
        areas and rural areas to the workplace;
            ``(2) to subsidize additional reverse commute bus or train 
        routes; and
            ``(3) to otherwise facilitate the provision of suburban 
        employment and job training opportunities to residents of 
        distressed urban areas and rural areas.
    ``(c) Grant Criteria.--In making grants under this section, the 
Secretary shall consider each of the following with respect to an 
applicant:
            ``(1) Need for services.--The need for additional services 
        to transport individuals from the distressed urban area or 
        rural area to specified jobs, training, and other employment 
        support services, and the extent to which proposed services 
        will address those needs.
            ``(2) Coordination mechanism.--The extent to which the 
        applicant has established or will establish a mechanism to 
        coordinate transportation and human resource services planning.
            ``(3) Qualifications and past performance.--The applicant's 
        qualifications and performance under other welfare reform or 
        economic development initiatives.
            ``(4) Human resources.--The extent to which a local human 
        resource agency is contributing financial resources to 
        implement the project for which funds are sought under this 
        section.
            ``(5) Other criteria.--Any other criteria the Secretary 
        determines to be relevant to the promotion of the use of mass 
        transit generally and to increasing access to employment 
        opportunities and job training for residents of distressed 
        urban areas and rural areas.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $250,000,000 for each of the 
fiscal years 1998 through 2002.''.
    (b) Definition of Distressed Urban Area.--Section 5302(a) of title 
49, United States Code, is amended--
            (1) in each of paragraphs (1) through (12), by striking the 
        period at the end and inserting a semicolon;
            (2) in paragraph (13), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(14) the term `distressed urban area' means any urban 
        area having a population of more than 50,000 that meets (as 
        determined by the Secretary of Housing and Urban Development) 
        the qualifications for making an Urban Development Action Grant 
        to a community experiencing severe economic distress that are 
        otherwise established for large cities and urban counties under 
        subpart G of part 570 of title 24, Code of Federal 
        Regulations.''.
    (c) Conforming Amendment.--The analysis for chapter 53 of title 49, 
United States Code, is amended by inserting after the item relating to 
section 5320 the following:

``5320A. Reverse commute pilot program.''.

SEC. 5. METROPOLITAN PLANNING ORGANIZATIONS.

    Section 5303(b) of title 49, United States Code, is amended--
            (1) in each of paragraphs (1) through (14), by striking the 
        period at the end and inserting a semicolon;
            (2) in paragraph (15), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(16) the transportation requirements of a strategy to 
        revitalize the Nation's inner cities by creating new 
        employment, job training, housing, mobility, and other economic 
        opportunities in urban areas.''.

SEC. 6. CAPITAL ASSETS.

    Section 5307 of title 49, United States Code, is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Definition of Designated Recipient.--In this section, the 
term `designated recipient' means--
            ``(1) a person designated, consistent with the planning 
        process under sections 5303 through 5306 of this title, by the 
        chief executive officer of a State, responsible local 
        officials, and publicly owned operators of mass transportation 
        to receive and apportion amounts under section 5336 of this 
        title that are attributable to transportation management areas 
        established under section 5305(a) of this title; or
            ``(2) a State or regional authority if the authority is 
        responsible under the laws of a State for a capital project and 
        for financing and directly providing mass transportation.''; 
        and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``facilities, and 
                associated capital maintenance items'' and inserting 
                ``and facilities''; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) A grant under this section is available for 
        maintaining capital assets.''.

SEC. 7. FLEXIBILITY FOR LESS POPULATED COMMUNITIES.

    Section 5307 of title 49, United States Code, is amended by adding 
at the end the following:
            ``(o) Use of amounts by small urbanized areas and rural 
        areas.--Notwithstanding any other provision of this section, 
        each urbanized area with a population of less than 200,000 and 
        each rural area may use assistance received under this section 
        for either operating or capital needs.''.

SEC. 8. DISCRETIONARY GRANTS AND LOANS.

    Section 5309(m)(1) of title 49, United States Code, is amended by 
striking ``1993-1997'' and inserting ``1998-2002''.

SEC. 9. PROCEEDS FROM SALE OF MASS TRANSIT ASSETS.

    Section 5334(g) of title 49, United States Code, is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (2) in paragraph (3), as redesignated, by striking 
        ``paragraph (1)'' and inserting ``paragraph (1)(B)''; and
            (3) in paragraph (1)--
                    (A) in the second sentence, by striking ``The 
                Secretary may authorize a transfer for a public purpose 
                other than mass transportation'' and inserting the 
                following:
    ``(2) The Secretary may authorize a transfer for a public purpose 
other than mass transportation under paragraph (1)(B)''; and
                    (B) in the first sentence, by striking ``recipient 
                to transfer'' and inserting the following: 
                ``recipient--
            ``(A) to sell the assets and retain the proceeds of the 
        sale if--
                    ``(i) all proceeds are used by the recipient for 
                allowable capital needs; and
                    ``(ii) the grantee submits a report to the 
                Secretary describing date, time, and location of the 
                sale, the assets to be sold, and the manner in which 
                the proceeds of the sale will be used in accordance 
                with clause (i); or
            ``(B) to transfer''.

SEC. 10. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Apportionment of Appropriations for Fixed Guideway 
Modernization.--Section 5337(a) of title 49, United States Code, is 
amended by striking ``1993-1997'' and inserting ``1998-2002''.
    (b) Sections 5303-5306, 5307, 5310, 5311, 5313, 5314, 5317, 5320, 
5327, and 5334(a) and (c).--Section 5338(a) of title 49, United States 
Code, is amended to read as follows:
    ``(a) For Sections 5303-5306, 5307, 5310, 5311, 5313, 5314, 5317, 
5320, 5327, and 5334(a) and (c).--Not more than the following amounts 
are available from the Mass Transit Account of the Highway Trust Fund 
for the Secretary of Transportation to carry out sections 5303-5306, 
5307, 5310, 5311, 5313, 5314, 5317, 5320, 5327, and 5334(a) and (c) of 
this title:
            ``(1) $3,750,000,000 for the fiscal year ending September 
        30, 1998.
            ``(2) $3,858,700,000 for the fiscal year ending September 
        30, 1999.
            ``(3) $3,970,600,000 for the fiscal year ending September 
        30, 2000.
            ``(4) $4,085,900,000 for the fiscal year ending September 
        30, 2001.
            ``(5) $4,208,400,000 for the fiscal year ending September 
        30, 2002.''.
    (c) Discretionary Grants and Loans.--Section 5338(b) of title 49, 
United States Code, is amended to read as follows:
    ``(b) Section 5309.--Not more than the following amounts are 
available from the Account for the Secretary to carry out section 5309 
of this title:
            ``(1) $2,500,000,000 for the fiscal year ending September 
        30, 1998.
            ``(2) $2,572,500,000 for the fiscal year ending September 
        30, 1999.
            ``(3) $2,647,100,000 for the fiscal year ending September 
        30, 2000.
            ``(4) $2,723,900,000 for the fiscal year ending September 
        30, 2001.
            ``(5) $2,805,600,000 for the fiscal year ending September 
        30, 2002.''.
    (d) National Mass Transportation Institute.--Section 5338(c) of 
title 49, United States Code, is amended by striking ``1993-1997'' and 
inserting ``1998-2002''.
    (e) University Research Institutes.--Section 5338 of title 49, 
United States Code, is amended by striking subsection (d) and inserting 
the following:
    ``(d) Section 5316.--Not more than the following amounts may be 
appropriated to the Secretary from the Fund (except the Account) for 
each of the fiscal years ending September 30, 1998-2002:
            ``(1) $250,000 to carry out section 5316(a) of this title.
            ``(2) $3,000,000 to carry out section 5316(b) of this 
        title.
            ``(3) $1,000,000 to carry out section 5316(c) of this 
        title.
            ``(4) $1,000,000 to carry out section 5316(d) of this 
        title.
            ``(5) $1,000,000 to carry out section 5316(e) of this 
        title.''.
    (f) Transportation Centers.--
            (1) In general.--Section 5338 of title 49, United States 
        Code, is amended by striking subsection (e) and inserting the 
        following:
    ``(e) Section 5317.--Not more than $6,000,000 is available from the 
Fund (except the Account) for the Secretary for each of the fiscal 
years ending September 30, 1998-2002, to carry out section 5317 of this 
title.''.
            (2) Conforming amendment.--Section 5317(b)(5) of title 49, 
        United States Code, is amended--
                    (A) by striking subparagraph (C); and
                    (B) by redesignating subparagraph (D) as 
                subparagraph (C).
    (g) Other Set-Asides.--Section 5338(h)(3) of title 49, United 
States Code, is amended by striking ``1993-1997'' and inserting ``1998-
2002''.

SEC. 11. APPLICATION OF BYRD RULE TO MASS TRANSIT ACCOUNT OF HIGHWAY 
              TRUST FUND.

    Section 9503(e)(4) of the Internal Revenue Code of 1986 is amended 
by striking ``, except'' and all that follows before the period.

SEC. 12. TRANSPORTATION FUEL TAX REFORM.

    (a) Establishment of Intercity Passenger Rail Account.--Section 
9503 of the Internal Revenue Code of 1986 (relating to Highway Trust 
Fund) is amended by adding at the end the following:
    ``(g) Establishment of Intercity Passenger Rail Account.--
            ``(1) Creation of account.--There is established in the 
        Highway Trust Fund a separate account to be known as the 
        `Intercity Passenger Rail Account', consisting of such amounts 
        as may be transferred or credited to the Intercity Passenger 
        Rail Account as provided in this subsection or section 9602(b).
            ``(2) Transfers to intercity passenger rail account.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall transfer to the Intercity Passenger Rail Account 
                the intercity passenger rail portion of the amounts 
                appropriated to the Highway Trust Fund under subsection 
                (b) which are attributable to taxes under sections 4041 
                and 4081 imposed after September 30, 1997, and before 
                October 1, 2002.
                    ``(B) Intercity passenger rail portion.--For 
                purposes of subparagraph (A), the term `intercity 
                passenger rail portion' means an amount determined at 
                the rate of 0.5 cent for each gallon with respect to 
                which tax was imposed under section 4041 or 4081.
            ``(3) Expenditures from account.--
                    ``(A) In general.--Amounts in the Intercity 
                Passenger Rail Account shall be available without 
                fiscal year limitation to finance qualified expenses 
                of--
                            ``(i) the National Railroad Passenger 
                        Corporation, and
                            ``(ii) each non-Amtrak State, to the extent 
                        determined under subparagraph (B).
                    ``(B) Maximum amount of funds to non-amtrak 
                states.--Each non-Amtrak State shall receive under this 
                subsection an amount equal to the lesser of--
                            ``(i) the State's qualified expenses for 
                        the fiscal year, or
                            ``(ii) the product of--
                                    ``(I) \1/12\ of 1 percent of the 
                                lesser of--
                                            ``(aa) the aggregate 
                                        amounts transferred and 
                                        credited to the Intercity 
                                        Passenger Rail Account under 
                                        paragraph (1) for such fiscal 
                                        year, or
                                            ``(bb) the aggregate 
                                        amounts appropriated from the 
                                        Intercity Passenger Rail 
                                        Account for such fiscal year, 
                                        and
                                    ``(II) the number of months such 
                                State is a non-Amtrak State in such 
                                fiscal year.
                If the amount determined under clause (ii) exceeds the 
                amount under clause (i) for any fiscal year, the amount 
                under clause (ii) for the following fiscal year shall 
                be increased by the amount of such excess.
            ``(4) Definitions.--For purposes of this subsection--
                    ``(A) Qualified expenses.--The term `qualified 
                expenses' means expenses incurred, with respect to 
                obligations made, after September 30, 1997, and before 
                October 1, 2002--
                            ``(i) for--
                                    ``(I) in the case of the National 
                                Railroad Passenger Corporation, the 
                                acquisition of equipment, rolling 
                                stock, and other capital improvements, 
                                the upgrading of maintenance 
                                facilities, and the maintenance of 
                                existing equipment, in intercity 
                                passenger rail service, and the payment 
                                of interest and principal on 
                                obligations incurred for such 
                                acquisition, upgrading, and 
                                maintenance, and
                                    ``(II) in the case of a non-Amtrak 
                                State, the acquisition of equipment, 
                                rolling stock, and other capital 
                                improvements, the upgrading of 
                                maintenance facilities, and the 
                                maintenance of existing equipment, in 
                                intercity passenger rail or bus 
                                service, and the payment of interest 
                                and principal on obligations incurred 
                                for such acquisition, upgrading, and 
                                maintenance, and
                            ``(ii) certified by the Secretary of 
                        Transportation on October 1 as meeting the 
                        requirements of clause (i) and as qualified for 
                        payment under paragraph (5) for the fiscal year 
                        beginning on such date.
                    ``(B) Non-amtrak state.--The term `non-Amtrak 
                State' means any State which does not receive intercity 
passenger rail service from the National Railroad Passenger 
Corporation.
            ``(5) Contract authority.--Notwithstanding any other 
        provision of law, the Secretary of Transportation shall certify 
        expenses as qualified for a fiscal year on October 1 of such 
        year, in an amount not to exceed the amount of receipts 
        estimated by the Secretary of the Treasury to be transferred to 
        the Intercity Passenger Rail Account for such fiscal year. Such 
        certification shall result in a contractual obligation of the 
        United States for the payment of such expenses.
            ``(6) Tax treatment of account expenditures.--With respect 
        to any payment of qualified expenses from the Intercity 
        Passenger Rail Account during any taxable year to a taxpayer--
                    ``(A) such payment shall not be included in the 
                gross income of the taxpayer for such taxable year,
                    ``(B) no deduction shall be allowed to the taxpayer 
                with respect to any amount paid or incurred which is 
                attributable to such payment, and
                    ``(C) the basis of any property shall be reduced by 
                the portion of the cost of such property which is 
                attributable to such payment.
            ``(7) Termination.--The Secretary shall determine and 
        retain, not later than October 1, 2002, the amount in the 
        Intercity Passenger Rail Account necessary to pay any 
        outstanding qualified expenses, and shall transfer any amount 
        not so retained to the Highway Trust Fund.''.
    (b) Extension of Mass Transit Account.--
            (1) Increase in mass transit portion.--Section 9503(e)(2) 
        of the Internal Revenue Code of 1986 (relating to transfers to 
        Mass Transit Account) is amended by striking ``2 cents'' and 
        inserting ``2.76 cents''.
            (2) Expenditures through fiscal year 2002.--Section 
        9503(e)(3) of such Code (relating to expenditures from Account) 
        is amended by striking ``1997'' and inserting ``2002''.
    (c) Receipts of the 4.3-cent Fuel Tax Rate Increase Deposited in 
the Highway Trust Fund.--Section 9503(f) of the Internal Revenue Code 
of 1986 (defining Highway Trust Fund financing rate) is amended--
            (1) in paragraph (1)(A), by striking ``11.5 cents per 
        gallon (14 cents per gallon after September 30, 1995)'' and 
        inserting ``18.3 cents per gallon''; and
            (2) in paragraph (1)(B), by striking ``17.5 cents per 
        gallon (20 cents per gallon after September 30, 1995)'' and 
        inserting ``24.3 cents per gallon''.
    (d) Conforming Amendments.--
            (1) Section 9503(f)(2) of such Code is amended--
                    (A) in subparagraph (B), by striking ``3 cents'' 
                and inserting ``7.3 cents'';
                    (B) in subparagraph (C), by striking ``zero'' and 
                inserting ``4.3 cents per gallon'';
                    (C) in subparagraph (D), by striking ``zero'' and 
                inserting ``48.54 cents per MCF (determined at standard 
                temperature and pressure)'';
                    (D) in subparagraph (E), by striking ``11.5 cents'' 
                and inserting ``15.8 cents''; and
                    (E) in subparagraph (E), by striking ``17.5 cents'' 
                and inserting ``21.8 cents''.
            (2) Section 9503(f)(3)(A) of such Code is amended to read 
        as follows:
                    ``(A) In general.--If the rate of tax on any fuel 
                is determined under section 4041(b)(2)(A), 4041(k), or 
                4081(c), the Highway Trust Fund financing rate is the 
                rate so determined after September 30, 1997. In the 
                case of a rate of tax determined under section 4081(c), 
                the preceding sentence shall be applied by increasing 
                the rate specified by 0.1 cent.''.
            (3) Section 9503(f)(3)(C) of such Code is amended to read 
        as follows:
                    ``(C) Partially exempt methanol or ethanol fuel.--
                In the case of a rate of tax determined under section 
                4041(m), the Highway Trust Fund financing rate is the 
                rate so determined after September 30, 1995.''.
            (4) Section 9503(f)(4) of such Code is amended by striking 
        ``zero'' and inserting ``4.3 cents per gallon''.
    (e) Effective Dates; Special Rules.--
            (1) Accounts.--The amendments made by subsections (a) and 
        (b) apply with respect to taxes imposed on and after October 1, 
        1997.
            (2) Transfer of taxes.--The amendments made by subsections 
        (c) and (d) apply to fuel removed after September 30, 1997.
            (3) Special rules.--
                    (A) Notwithstanding any other provision of law, in 
                calculating amounts under section 157(a) of title 23, 
                United States Code, and sections 1013(c), 1015(a), and 
                1015(b) of the Intermodal Surface Transportation 
                Efficiency Act of 1991 (Public Law 102-240; 105 Stat. 
                1914), deposits in the Highway Trust Fund resulting 
                from the amendments made by this section shall not be 
                taken into account.
                    (B) Notwithstanding any other provision of law, the 
                amounts described in paragraphs (4)(C) and (5) of 
                section 9503(c) of the Internal Revenue Code of 1986 
                derived from deposits in the Highway Trust Fund 
                resulting from the amendments made by this section 
                shall not be available without further appropriation.
                                 <all>