[Congressional Record Volume 143, Number 49 (Wednesday, April 23, 1997)]
[Senate]
[Pages S3553-S3554]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself, Mr. Warner, and Mr. Byrd):
  S. 634. A bill to amend the Internal Revenue Code of 1986 to deposit 
in the highway trust fund the receipts of the 4.3-cent increase in the 
fuel tax rates enacted by the Omnibus Budget Reconciliation Act of 
1993, and for other purposes; to the Committee on Finance.

                            tax legislation

  Mr. BAUCUS. Mr. President, I rise today to introduce legislation to 
transfer 4.3 cents of the Federal gas tax currently used for deficit 
reduction to transportation purposes.
  Specifically, this bill will transfer 3.8 cents to the highway 
account of the highway trust fund and one-half penny to a new intercity 
passenger rail account to be used for Amtrak or other intercity 
passenger rail service.
  Mr. President, this bill is important because it is time to give the 
American taxpayers the confidence that the fuel taxes they pay will be 
used for transportation purposes.
  The 3.8 cents deposited in the highway account means over $5.5 
billion in additional funds would be available each year for 
transportation improvements. Those improvements could be for highway 
maintenance or other infrastructure safety improvements; mass transit 
projects; bikepaths; pedestrian walkways; or a variety of other 
transportation projects that are eligible today under the Intermodal 
Surface Transportation Efficiency Act.
  This Nation is losing ground with regard to transportation 
investments. Japan spends four times the United States on 
transportation as a percentage of gross domestic product. And the 
Europeans spend twice as much.
  These and other countries envy our transportation system. We cannot 
afford to allow our global competitors to outspend us on infrastructure 
improvements. Our ability to remain competitive in the future is tied 
to maintaining an efficient transportation system and highly mobile 
workforce.
  And Amtrak remains an important component of such a transportation 
system. Every country that has a passenger rail system provides some 
government financial assistance. It only makes sense that this country 
do the same.
  Amtrak is important to many communities around the country--it serves 
over 530 cities and towns. These include 12 in my State of Montana--
Libby, Whitefish, West Glacier, Essex, East Glacier, Cut Bank, Malta, 
Browning, Shelby, Havre, Wolf Point, and Glasgow. These Montana 
communities rely upon Amtrak as a transportation option.
  And Amtrak is an important economic lifeline. Not only for the jobs 
directly related to Amtrak service, but Amtrak is an important tool in 
Montana's tourism industry. Each year, Amtrak brings thousands of folks 
to our State to ski, hike, or just enjoy the beauty of Montana.
  But in order for Amtrak to remain a component of this Nation's 
transportation system, it must have a dedicated revenue source. Such a 
revenue source will give Amtrak the ability to do long-term 
capitalization planning--planning and improvements that must be made in 
order for Amtrak to remain viable.
  While I do not agree that Amtrak should be funded off of the top of 
the highway trust fund as has been suggested by the administration, I 
do feel we need to financially support Amtrak into the next century.
  My bill will do that. It will provide a substantial increase in 
available funds for all modes of transportation.
  Mr. President, I ask unanimous consent that the bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 634

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

     SECTION 1. RECEIPTS OF THE 4.3-CENT FUEL TAX RATE INCREASE 
                   DEPOSITED IN THE HIGHWAY TRUST FUND; 
                   ESTABLISHMENT OF INTERCITY PASSENGER RAIL 
                   ACCOUNT.

       (a) In General.--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''.
       (b) Conforming Amendments.--
       (1) Section 9503(f)(2) of such Code is amended--

[[Page S3554]]

       (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''.
       (c) 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, 2003.
       ``(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 paragraph 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, 2003--
       ``(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, 2003, 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.''
       (d) Effective Dates.--
       (1) Transfer of taxes.--The amendments made by subsections 
     (a) and (b) apply to fuel removed after September 30, 1997.
       (2) Account.--The amendment made by subsection (c) applies 
     with respect to taxes imposed on and after October 1, 1997.
                                 ______