[Congressional Record Volume 142, Number 63 (Wednesday, May 8, 1996)]
[Senate]
[Pages S4867-S4869]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DOLE (for himself, Mr. Roth, Mr. Gramm, Mr. Grassley, Mr. 
        Simpson, Mr. Pressler, Mr. Nickles, Mr. Bennett, Mr. Bond, Mr. 
        Faircloth, Mr. Grams, Mr. Gregg, Mr. Kempthorne, Mr. Kyl, Mr. 
        Lott, Mr. Mack, Mr. McCain, Mr. McConnell, Mr. Smith, Ms. 
        Snowe, Mr. Specter, Mr. Stevens, Mr. Thomas, Mr. Thurmond, and 
        Mr. Warner):
  S. 1739. A bill 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; to the Committee on 
Finance.


                       GAS TAX REPEAL LEGISLATION

  Mr. DOLE. Mr. President, I rise today to introduce a bill that 
repeals the 4.3-cent gas tax increase imposed by President Clinton in 
his 1993 tax bill--a $265 billion increase--the largest in history.
  I am confident that this legislation would pass immediately, and by a 
wide margin, if my Democratic colleagues would remove their objection 
to a vote.
  As we all know, gas prices are at their highest level since the gulf 
war. This bill will provide much-needed tax relief to American 
travelers. I am happy to be joined by more than 20 of my colleagues who 
are cosponsoring this legislation to repeal the gas tax hike.
  The 1993 tax increase raised fuel taxes on all modes of 
transportation by 4.3 cents per gallon. This tax increase was not 
dedicated to the highway trust fund to maintain and to improve our 
Nation's highways, roads, and bridges. Rather it was used to fund a 
larger and more pervasive Federal Government.
  President Clinton and his Democratic colleagues would rather tax more 
and spend more than cut wasteful government spending. In 1993, they 
raised income, estate, and Social Security taxes. This $265 billion tax 
increase passed without a single Republican vote in either the House or 
the Senate.
  And their taxes particularly hurt working Americans, making it harder 
for them to make ends meet. As we repeal the gas tax hike, 60 percent 
of the

[[Page S4868]]

tax relief would go to Americans making less than $50,000 a year--
almost half of the total relief would be for families making less than 
$40,000 a year.
  These drivers probably didn't feel rich when the President increased 
their taxes in 1993, but they will certainly be better off when we 
repeal the tax hike.
  I also would note that if the President had his way, gas prices would 
be rising yet again--by another 2.5 cents per gallon tax that would 
have begun on July 1, 1996--the last installment of a 7.5-cent-per-
gallon tax that was part of his overall energy tax increase proposal. 
Republicans fought against that increase and this bill will remove the 
last vestige of the 1993 gas tax increase.
  This legislation does not increase the budget deficit. It is paid for 
by reductions in the Department of Energy administrative overhead 
account, which includes the Secretary's travel budget. These Energy 
Department cost savings were proposed by the President in his latest 
budget. The bill also calls for a limited auction of Federal 
communications spectrum. Together, these offsets raise the $2.9 billion 
necessary to fund the repeal through 1996. I will work for a long-term 
repeal in the context of our efforts to eliminate the Federal budget 
deficit.
  Repealing the 1993 gas tax is the fastest and surest way to lower gas 
prices. It will provide immediate relief--especially to American 
families who drive to their summer vacations.
  The bill provides for an immediate tax credit for service station 
owners and others that purchase gas for resale to customers. This way 
they can pass the savings on to their customers as they have told us 
they will.
  I urge my colleagues to support this effort.
  Mr. President, I ask unanimous consent that the bill and additional 
material be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1739

       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

[[Page S4869]]

     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.   . 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) $90,000,000,000 for fiscal year 2002.''.


                            SPECTRUM AUCTION

     SEC.   . 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 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 25 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) Federal Communications Commission May Not Treat This 
     Section as Congressional Action for Certain Purposes.--The 
     Federal Communication Commission may not treat the enactment 
     of this Act or the inclusion of this section in this Act as 
     an expression of the intent of Congress with respect to the 
     award of initial licenses of construction permits for 
     Advanced Television Services, as described by the Commission 
     in its letter of February 1, 1996, to the Chairman of the 
     Senate Committee on Commerce, Science, and Transportation.
                                                                    ____


                    Technical Explanation of S. 1739

     1. Repeal of Transportation Motor Fuels Excise Tax


                              present law

       The Omnibus Budget Reconciliation Act of 1993 imposed a 
     permanent 4.3-cents-per-gallon excise tax on transportation 
     motor fuels. Revenues from this tax are retained in the 
     General Fund of the Treasury. This excise tax applies to 
     fuels used in all transportation sectors: highway, aviation, 
     rail, inland waterway shipping, and recreational boating. All 
     fuels used in those transportation sectors (gasoline, diesel 
     fuel, special motor fuels, compressed natural gas, jet fuel, 
     and barge fuel) are subject to tax.
       Statutorily, the 4.3-cents-per-gallon transportation motor 
     fuels excise tax is imposed as an additional component of the 
     rates of other motor fuels excise taxes.\1\ Those other 
     excise taxes typically are imposed as a financing source for 
     Federal environmental and public works programs administered 
     through Federal trust funds. The other excise taxes have 
     scheduled expiration dates, which generally coincide with 
     expiration of authorizing legislation for those Federal 
     programs.
---------------------------------------------------------------------------
     \1\ Because compressed natural gas (``CNG'') is a gaseous 
     fuel rather than a liquid, the rate of tax is stated as 48.54 
     cents per MCF, which was the statutory equivalent for CNG of 
     the 4.3-cents-per-gallon tax rate enacted in 1993. The 48.54-
     cents-per-gallon rate is the only excise tax imposed on CNG.
---------------------------------------------------------------------------


                        explanation of provision

       The bill would repeal the 4.3-cents-per-gallon General Fund 
     transportation motor fuels excise tax on fuel used in all 
     transportation sectors currently subject to the tax during 
     the period beginning seven days after enactment and ending 
     after December 31, 1996. Statutorily this is accomplished by 
     reducing the aggregate tax rate that otherwise would be 
     imposed by 4.3 cents per gallon, or removing the denial of an 
     exemption. The bill does not affect any of the motor fuels 
     excise taxes that are dedicated funding sources for Federal 
     environmental or public works trust fund programs.
       Because the 4.3-cents-per-gallon transportation motor fuels 
     excise tax (along with other applicable excise taxes on the 
     same motor fuels) is imposed on certain motor fuels before 
     the fuels reach the consumer level, the bill includes rules 
     comparable to present-law ``floor stocks refund'' provisions 
     that allow refunds to producers and dealers for fuel held for 
     sale on the effective date of the tax reduction when the 
     excise tax already has been paid. These refunds must be 
     claimed by persons liable for payment of the tax, based on 
     amounts of tax-paid fuel they own on the tax-reduction date 
     and on documented claims from dealers that purchased tax-paid 
     fuel from them and hold the fuel for sale on the tax-
     reduction date. These refunds are intended to be allowable 
     either as refund claims filed with the Internal Revenue 
     Service or as credits against required deposits and payments 
     of other excise taxes owed by the claimants.
       The bill further would impose floor stocks taxes, identical 
     to those imposed in 1993, on taxable fuels held on January 1, 
     1997, when the tax-reduction period expires.


                             effective date

       These provisions of the bill would be effective on the date 
     of enactment for taxable fuels removed, entered, sold or used 
     more than six days after that date and before January 1, 
     1997.
     2. Sense of the Congress on Benefit to Ultimate Consumers
       The bill includes a statement that it is the Sense of the 
     Congress that the full benefit of repeal of the 4.3-cents-
     per-gallon transportation motor fuels excise tax be flowed 
     through to consumers, and that persons receiving floor stocks 
     refunds from the Internal Revenue Service immediately credit 
     their customers' accounts to reflect those refunds.
     3. Study
       The bill directs the General Accounting Office to study the 
     impact of repeal of the 4.3-cents-per-gallon transportation 
     motor fuels excise tax and to report its findings to the 
     Congress no later than January 31, 1997.
                                 ______