[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1164 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1164

   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

                              June 9, 2011

  Mr. DeMint 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) that objective 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 Federal Government's perceptions of 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 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;
            (2) to preserve Federal responsibility for the Dwight D. 
        Eisenhower National System of Interstate and Defense Highways;
            (3) 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;
            (4) 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
            (5) 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 FOR CORE HIGHWAY PROGRAMS.

    (a) In General.--
            (1) Funding.--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:
                    (A) Interstate maintenance program.--For the 
                Interstate maintenance program under section 119 of 
                title 23, United States Code, $5,200,000,000 for fiscal 
                year 2014, $5,280,000,000 for fiscal year 2015, 
                $5,360,000,000 for fiscal year 2016, $5,440,000,000 for 
                fiscal year 2017, and $5,520,000,000 for fiscal year 
                2018.
                    (B) Emergency relief.--For emergency relief under 
                section 125 of that title, $100,000,000 for each of 
                fiscal years 2014 through 2018.
                    (C) Interstate bridge program.--For the Interstate 
                bridge program under section 144 of that title, 
                $2,527,000,000 for fiscal year 2014, $2,597,000,000 for 
                fiscal year 2015, $2,667,000,000 for fiscal year 2016, 
                $2,737,000,000 for fiscal year 2017, and $2,807,000,000 
                for fiscal year 2018.
                    (D) Federal lands highways program.--
                            (i) Indian reservation roads.--For Indian 
                        reservation roads under section 204 of that 
                        title, $470,000,000 for fiscal year 2014, 
                        $510,000,000 for fiscal year 2015, $550,000,000 
                        for fiscal year 2016, $590,000,000 for fiscal 
                        year 2017, and $630,000,000 for fiscal year 
                        2018.
                            (ii) Public lands highways.--For public 
                        lands highways under section 204 of that title, 
                        $300,000,000 for fiscal year 2014, $310,000,000 
                        for fiscal year 2015, $320,000,000 for fiscal 
                        year 2016, $330,000,000 for fiscal year 2017, 
                        and $340,000,000 for fiscal year 2018.
                            (iii) Parkways and park roads.--For 
                        parkways and park roads under section 204 of 
                        that title, $255,000,000 for fiscal year 2014, 
                        $270,000,000 for fiscal year 2015, $285,000,000 
                        for fiscal year 2016, $300,000,000 for fiscal 
                        year 2017, and $315,000,000 for fiscal year 
                        2018.
                            (iv) Refuge roads.--For refuge roads under 
                        section 204 of that title, $32,000,000 for each 
                        of fiscal years 2014 through 2018.
                    (E) Highway safety programs.--
                            (i) In general.--For highway safety 
                        programs under section 402 of that title, 
                        $170,000,000 for each of fiscal years 2014 
                        through 2018.
                            (ii) Highway safety research and 
                        development.--For highway safety research and 
                        development under section 403 of that title, 
                        $35,000,000 for each of fiscal years 2014 
                        through 2018.
                    (F) Surface transportation research.--For 
                cooperative agreements with nonprofit research 
                organizations to carry out applied pavement research 
                under section 502 of that title, $200,000,000 for each 
                of fiscal years 2014 through 2018.
                    (G) Administrative expenses.--For administrative 
                expenses incurred in carrying out the programs referred 
                to in subparagraphs (A) through (F), $92,890,000 for 
                fiscal year 2014, $95,040,000 for fiscal year 2015, 
                $97,190,000 for fiscal year 2016, $99,340,000 for 
                fiscal year 2017, and $101,490,000 for fiscal year 
                2018.
            (2) Transferability of funds.--Section 104 of title 23, 
        United States Code, is amended by striking subsection (g) and 
        inserting the following:
    ``(g) 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 
        mass transit 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.''.
            (3) 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''.
            (4) Interstate maintenance program.--Section 104(b) of 
        title 23, United States Code, is amended by striking paragraph 
        (4) and inserting the following:
            ``(4) Interstate maintenance component.--For each of fiscal 
        years 2014 through 2018, for the Interstate maintenance program 
        under section 119, 1 percent to the Virgin Islands, Guam, 
        American Samoa, and the Commonwealth of the Northern Mariana 
        Islands and the remaining 99 percent apportioned as follows:
                    ``(A)(i) For each State with an average population 
                density of 20 persons or fewer per square mile, and 
                each State with a population of 1,500,000 persons or 
                fewer and with a land area of 10,000 square miles or 
                less, the greater of--
                            ``(I) a percentage share of apportionments 
                        equal to the percentage for the State described 
                        in clause (ii); or
                            ``(II) a share determined under 
                        subparagraph (B).
                    ``(ii) The percentage referred to in clause (i)(I) 
                for a State for a fiscal year shall be the percentage 
                calculated for the State for the fiscal year under 
                section 105(b) of title 23, United States Code.
                    ``(B) For each State not described in subparagraph 
                (A), a share of the apportionments remaining determined 
                in accordance with the following formula:
                            ``(i) \1/9\ in the ratio that the total 
                        rural lane miles in each State bears to the 
                        total rural lane miles in all States with an 
                        average population density greater than 20 
                        persons per square mile and all States with a 
                        population of more than 1,500,000 persons and 
                        with a land area of more than 10,000 square 
                        miles.
                            ``(ii) \1/9\ in the ratio that the total 
                        rural vehicle miles traveled in each State 
                        bears to the total rural vehicle miles traveled 
                        in all States described in clause (i).
                            ``(iii) \2/9\ in the ratio that the total 
                        urban lane miles in each State bears to the 
                        total urban lane miles in all States described 
                        in clause (i).
                            ``(iv) \2/9\ in the ratio that the total 
                        urban vehicle miles traveled in each State 
                        bears to the total urban vehicle miles traveled 
                        in all States described in clause (i).
                            ``(v) \3/9\ in the ratio that the total 
                        diesel fuel used in each State bears to the 
                        total diesel fuel used in all States described 
                        in clause (i).''.
            (5) 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 (k), by 
                inserting ``on the Federal-aid system or described in 
                subsection (c)(3)'' after ``any bridge'';
                    (D) in subsection (l)(1), by inserting ``on the 
                Federal-aid system or described in subsection (c)(3)'' 
                after ``construct any bridge''; and
                    (E) in the first sentence of subsection (m), by 
                inserting ``for each of fiscal years 1991 through 
                2013,'' after ``of law,''.
            (6) 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.
            (7) Federalization and defederalization of projects.--
        Notwithstanding any other provision of law, beginning on 
        October 1, 2013--
                    (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.
            (8) 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, 2013, 
        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), by striking ``Surface 
                Transportation Extension Act of 2011'' and inserting 
                ``Transportation Empowerment Act'';
                    (B) in paragraph (1), by striking ``October 1, 
                2011'' and inserting ``October 1, 2018'';
                    (C) in paragraphs (3)(A)(i), (4)(A), and (5), by 
                striking ``October 1, 2011'' each place it appears and 
                inserting ``October 1, 2020''; and
                    (D) in paragraph (2), by striking ``July 1, 2012'' 
                and inserting ``July 1, 2021''.
            (2) Amounts available for core program expenditures.--
        Section 9503 of such Code 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, 2013, and before 
                        October 1, 2014, 18.3 cents per gallon,
                            ``(ii) after September 30, 2014, and before 
                        October 1, 2015, 9.6 cents per gallon,
                            ``(iii) after September 30, 2015, and 
                        before October 1, 2016, 6.4 cents per gallon,
                            ``(iv) after September 30, 2016, and before 
                        October 1, 2017, 5.0 cents per gallon, and
                            ``(v) after September 30, 2017, 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, 2013, and before 
                        October 1, 2014, 24.3 cents per gallon,
                            ``(ii) after September 30, 2014, and before 
                        October 1, 2015, 12.7 cents per gallon,
                            ``(iii) after September 30, 2015, and 
                        before October 1, 2016, 8.5 cents per gallon,
                            ``(iv) after September 30, 2016, and before 
                        October 1, 2017, 6.6 cents per gallon, and
                            ``(v) after September 30, 2017, 5.0 cents 
                        per gallon.
            ``(2) Application of rate.--In the case of fuels used as 
        described in paragraph (3)(C), (4)(B), and (5) of subsection 
        (c), the core programs financing rate is zero.''.
    (c) Termination of Transfers to Mass Transit Account.--
            (1) In general.--Section 9503(e)(2) of the Internal Revenue 
        Code of 1986 is amended by inserting ``, and before October 1, 
        2013'' after ``March 31, 1983''.
            (2) Technical amendment.--Section 9503(e)(4) of such Code 
        is amended by striking ``24-month'' and inserting ``48-month''.
    (d) Effective Date.--The amendments made by this section take 
effect on October 1, 2013.

SEC. 4. INFRASTRUCTURE SPECIAL ASSISTANCE FUND.

    (a) Balance of Core Programs Financing Rate Deposited in Fund.--
Section 9503 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following:
    ``(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, 4071, and 4481 for such 
                        year, over
                    ``(B) the amount appropriated under subsection (c) 
                for such fiscal year,
        and shall transfer such excess to the Infrastructure Special 
        Assistance Fund.
            ``(3) Expenditures from infrastructure special assistance 
        fund.--
                    ``(A) Transitional assistance.--
                            ``(i) In general.--Except as provided in 
                        clause (iii), during fiscal years 2014 through 
                        2017, $1,000,000,000 in the Infrastructure 
                        Special Assistance Fund shall be available to 
                        States for transportation-related program 
                        expenditures.
                            ``(ii) State share.--Each State is entitled 
                        to a share of the amount specified in clause 
                        (i) determined in the following manner:
                                    ``(I) Multiply the percentage of 
                                the amounts appropriated in the latest 
                                fiscal year for which such data are 
                                available to the Highway Trust Fund 
                                under subsection (b) which is 
                                attributable to taxes paid by highway 
                                users in the State, by the amount 
                                specified in clause (i). If the result 
                                does not exceed $15,000,000, the 
                                State's share equals $15,000,000. If 
                                the result exceeds $15,000,000, the 
                                State's share is determined under 
                                subclause (II).
                                    ``(II) Multiply the percentage 
                                determined under subclause (I), by the 
                                amount specified in clause (i) reduced 
                                by an amount equal to $15,000,000 times 
                                the number of States the share of which 
                                is determined under subclause (I).
                            ``(iii) Distribution of remaining amount.--
                        If after September 30, 2017, a portion of the 
                        amount specified in clause (i) remains, the 
                        Secretary, in consultation with the Secretary 
                        of Transportation, shall, on October 1, 2017, 
                        apportion the portion among the States using 
                        the percentages determined under clause (ii)(I) 
                        for such States.
                    ``(B) Additional expenditures from fund.--
                            ``(i) In general.--Amounts in the 
                        Infrastructure Special Assistance Fund, in 
                        excess of the amount specified in subparagraph 
                        (A)(i), shall be available, as provided by 
                        appropriation Acts, to the States for any 
                        surface transportation (including mass transit 
                        and rail) purpose in such States, and the 
                        Secretary shall apportion such excess amounts 
                        among all States using the percentages 
                        determined under clause (ii)(I) for such 
                        States.
                            ``(ii) Enforcement.--If the Secretary 
                        determines that a State has used amounts under 
                        clause (i) for a purpose which is not a surface 
                        transportation purpose as described in clause 
                        (i), 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 takes 
effect on October 1, 2013.

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:
            ``(6) Return of excess tax receipts to states for surface 
        transportation purposes.--
                    ``(A) In general.--On the first day of each of 
                fiscal years 2014, 2015, 2016, and 2017, 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 takes 
effect on October 1, 2013.

SEC. 6. 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, 2011)'' and inserting 
        ``1.4 cents per gallon (zero after September 30, 2020)''.
            (2) Section 4041(a)(2)(B)(ii) of such Code is amended by 
        striking ``24.3 cents'' and inserting ``5.0 cents''.
            (3) Section 4041(a)(3)(A) of such Code is amended by 
        striking ``18.3 cents'' and inserting ``3.7 cents''.
            (4) Section 4041(m)(1) of such Code is amended--
                    (A) in subparagraph (A), by striking ``2011'' and 
                inserting ``2020,'';
                    (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, 2020.''.
            (5) Section 4081(d)(1) of such Code is amended by striking 
        ``4.3 cents per gallon after September 30, 2011'' and inserting 
        ``zero after September 30, 2020''.
            (6) Section 9503(b) of such Code is amended--
                    (A) in paragraphs (1) and (2), by striking 
                ``October 1, 2011'' both places it appears and 
                inserting ``October 1, 2020'';
                    (B) in the heading of paragraph (2), by striking 
                ``october 1, 2011'' and inserting ``october 1, 2020'';
                    (C) in paragraph (2), by striking ``after September 
                30, 2011, and before July 1, 2012'' and inserting 
                ``after September 30, 2020, and before July 1, 2021''; 
                and
                    (D) in paragraph (6)(B), by striking ``October 1, 
                2011'' and inserting ``October 1, 2018''.
    (c) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before October 1, 2017, 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, 2018; and
                    (B) in any case where liquid is held by a dealer 
                (other than the taxpayer) on October 1, 2017--
                            (i) the dealer submits a request for refund 
                        or credit to the taxpayer before January 1, 
                        2018; 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 paragraph (2), the 
        amendments made by this section shall apply to fuel removed 
        after September 30, 2017.
            (2) Certain conforming amendments.--The amendments made by 
        subsections (b)(4) and (b)(6) shall apply to fuel removed after 
        September 30, 2011.

SEC. 7. 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 such technical and conforming amendments to titles 23 and 
49, United States Code, and such technical and conforming amendments 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. 8. EFFECTIVE DATE CONTINGENT ON CERTIFICATION OF DEFICIT 
              NEUTRALITY.

    (a) Purpose.--The purpose of this section is to ensure that--
            (1) this Act will become effective 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 take effect only if--
            (1) the Director of the Office of Management and Budget 
        (referred to in this section as the ``Director'') submits the 
        report as required in 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 2018.
    (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 
                2018;
                    (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 2018;
                    (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 2018; and
                    (D) submit to Congress a report setting forth 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 
                scorekeeping 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 2013 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>