[House Report 109-13]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     109-13

======================================================================



 
                HIGHWAY REAUTHORIZATION TAX ACT OF 2005

                                _______
                                

 March 8, 2005.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Thomas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 996]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 996) to amend the Internal Revenue Code of 1986 to 
provide for the extension of highway-related taxes and trust 
funds, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
 I. Summary and Background............................................3
II. Explanation of the Bill...........................................4
        A. Extension of Highway Trust Fund and Aquatic Resources 
            Trust Fund Expenditure Authority and Related Taxes 
            (sec. 2 of the bill and secs. 4041, 4051, 4071, 4081, 
            4221, 4481, 4482, 4483, 6412, 9503, and 9504 of the 
            Code)................................................     4
        B. Fuels-Related Technical Corrections to American Jobs 
            Creation Act of 2004 (``AJCA'') (sec. 3 of the bill 
            and secs. 4081 and 6427 of the Code).................     7
            1. Volumetric ethanol excise tax credit (sec. 301 of 
                AJCA)............................................     7
            2. Aviation-grade kerosene (sec. 853 of AJCA)........     7
III.Votes of the Committee............................................8

IV. Budget Effects of the Bill........................................8
 V. Other Matters To Be Discussed Under the Rules of the House.......13
VI. Changes in Existing Law Made by the Bill, as Reported............14

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Highway Reauthorization Tax Act of 
2005''.

SEC. 2. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST FUNDS.

  (a) Extension of Taxes.--
          (1) In general.--The following provisions of the Internal 
        Revenue Code of 1986 are each amended by striking ``2005'' each 
        place it appears and inserting ``2011'':
                  (A) Section 4041(a)(1)(C)(iii)(I) (relating to rate 
                of tax on certain buses).
                  (B) Section 4041(a)(2)(B) (relating to rate of tax on 
                special motor fuels).
                  (C) Section 4041(m)(1) (relating to certain alcohol 
                fuels).
                  (D) Section 4051(c) (relating to termination of tax 
                on heavy trucks and trailers).
                  (E) Section 4071(d) (relating to termination of tax 
                on tires).
                  (F) Section 4081(d)(1) (relating to termination of 
                tax on gasoline, diesel fuel, and kerosene).
                  (G) Section 4481(f) (relating to period tax in 
                effect).
                  (H) Section 4482(c)(4) (relating to taxable period).
                  (I) Section 4482(d) (relating to special rule for 
                taxable period in which termination date occurs).
          (2) Floor stocks refunds.--Section 6412(a)(1) of such Code 
        (relating to floor stocks refunds) is amended--
                  (A) by striking ``2005'' each place it appears and 
                inserting ``2011'', and
                  (B) by striking ``2006'' each place it appears and 
                inserting ``2012''.
  (b) Extension of Certain Exemptions.--The following provisions of 
such Code are each amended by striking ``2005'' and inserting ``2011'':
          (1) Section 4221(a) (relating to certain tax-free sales).
          (2) Section 4483(h) (relating to termination of exemptions 
        for highway use tax).
  (c) Extension of Deposits Into Trust Funds.--
          (1) In general.--Paragraphs (1) and (2) of subsection (b), 
        and paragraphs (2) and (3) of subsection (c), of section 9503 
        of such Code (relating to the Highway Trust Fund) are each 
        amended--
                  (A) by striking ``2005'' each place it appears and 
                inserting ``2011'', and
                  (B) by striking ``2006'' each place it appears and 
                inserting ``2012''.
          (2) Motorboat and small-engine fuel tax transfers.--
                  (A) In general.--Paragraphs (4)(A)(i) and (5)(A) of 
                section 9503(c) of such Code are each amended by 
                striking ``2005'' and inserting ``2011''.
                  (B) Conforming amendments to land and water 
                conservation fund.--Section 201(b) of the Land and 
                Water Conservation Fund Act of 1965 (16 U.S.C. 460l-
                11(b)) is amended--
                          (i) by striking ``2003'' and inserting 
                        ``2009'', and
                          (ii) by striking ``2004'' each place it 
                        appears and inserting ``2010''.
  (d) Extension and Expansion of Expenditures From Trust Funds.--
          (1) Highway trust fund.--
                  (A) Highway account.--Paragraph (1) of section 
                9503(c) of such Code is amended--
                          (i) in the matter before subparagraph (A), by 
                        striking ``June 1, 2005'' and inserting 
                        ``October 1, 2009'',
                          (ii) by striking ``or'' at the end of 
                        subparagraph (J),
                          (iii) by striking the period at the end of 
                        subparagraph (K) and inserting ``, or'',
                          (iv) by inserting after subparagraph (K) the 
                        following new subparagraph:
                  ``(L) authorized to be paid out of the Highway Trust 
                Fund under the Transportation Equity Act: A Legacy for 
                Users.'', and
                          (v) in the matter after subparagraph (L), as 
                        added by clause (iv), by striking ``Surface 
                        Transportation Extension Act of 2004, Part V'' 
                        and inserting ``Transportation Equity Act: A 
                        Legacy for Users''.
                  (B) Mass transit account.--Paragraph (3) of section 
                9503(e) of such Code is amended--
                          (i) in the matter before subparagraph (A), by 
                        striking ``June 1, 2005'' and inserting 
                        ``October 1, 2009'',
                          (ii) by striking ``or'' at the end of 
                        subparagraph (H),
                          (iii) by inserting ``or'' at the end of 
                        subparagraph (I),
                          (iv) by inserting after subparagraph (I) the 
                        following new subparagraph:
                  ``(J) Transportation Equity Act: A Legacy for 
                Users,'', and
                          (v) in the matter after subparagraph (J), as 
                        added by clause (iv), by striking ``Surface 
                        Transportation Extension Act of 2004, Part V'' 
                        and inserting ``Transportation Equity Act: A 
                        Legacy for Users''.
                  (C) Exception to limitation on transfers.--
                Subparagraph (B) of section 9503(b)(6) of such Code is 
                amended by striking ``June 1, 2005'' and inserting 
                ``October 1, 2009''.
          (2) Aquatic resources trust fund.--
                  (A) Sport fish restoration account.--Paragraph (2) of 
                section 9504(b) of such Code is amended by striking 
                ``Surface Transportation Extension Act of 2004, Part 
                V'' each place it appears and inserting 
                ``Transportation Equity Act: A Legacy for Users'' .
                  (B) Boat safety account.--Subsection (c) of section 
                9504 of such Code is amended--
                          (i) by striking ``June 1, 2005'' and 
                        inserting ``October 1, 2009'', and
                          (ii) by striking ``Surface Transportation 
                        Extension Act of 2004, Part V'' and inserting 
                        ``Transportation Equity Act: A Legacy for 
                        Users'' .
                  (C) Exception to limitation on transfers.--Paragraph 
                (2) of section 9504(d) of such Code is amended by 
                striking ``June 1, 2005'' and inserting ``October 1, 
                2009''.
  (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. TECHNICAL CORRECTIONS REGARDING HIGHWAY-RELATED TAXES.

  (a) Amendments Related to Section 301 of the American Jobs Creation 
Act of 2004.--Section 6427 of such Code is amended--
          (1) by striking subsection (f), and
          (2) by striking subsection (o) and redesignating subsection 
        (p) as subsection (o).
  (b) Amendments Related to Section 853 of the American Jobs Creation 
Act of 2004.--
          (1) Subparagraph (C) of section 4081(a)(2) of the Internal 
        Revenue Code of 1986 is amended by striking ``for use in 
        commercial aviation'' and inserting ``for use in commercial 
        aviation by a person registered for such use under section 
        4101''.
          (2) So much of paragraph (2) of section 4081(d) of such Code 
        as precedes subparagraph (A) is amended to read as follows:
          ``(2) Aviation fuels.--The rates of tax specified in clauses 
        (ii) and (iv) of subsection (a)(2)(A) shall be 4.3 cents per 
        gallon--''.
  (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the American Jobs Creation 
Act of 2004 to which they relate.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The bill, H.R. 996, as amended, contains provisions that 
extend the expenditure authority for the Highway Trust Fund and 
the Aquatic Resources Trust Fund and extend motor fuel excise 
taxes, and makes other technical changes related to highway 
excise taxes.

                 B. Background and Need for Legislation

    The provisions approved by the Committee reflect the need 
to maintain Highway Trust Fund resources for the purposes of 
funding a highway reauthorization bill.
    The Committee also believes that the full amount of excise 
taxes imposed on fuel used in motorboats and small engines 
should not be retained in the General Fund and should instead 
be credited to the trust fund primarily dedicated to the users 
who bear such taxes.

                         C. Legislative History

    The House Committee on Ways and Means marked up the Highway 
Reauthorization Tax Act of 2005 on March 3, 2005, and ordered 
the bill, as amended, favorably reported by voice vote.

                      II. EXPLANATION OF THE BILL


  A. Extension of Highway Trust Fund and Aquatic Resources Trust Fund 
                Expenditure Authority and Related Taxes


(Sec. 2 of the bill and secs. 4041, 4051, 4071, 4081, 4221, 4481, 4482, 
        4483, 6412, 9503, and 9504 of the Code)

              PRESENT-LAW HIGHWAY TRUST FUND EXCISE TAXES

In general

    Six separate excise taxes are imposed to finance the 
Federal Highway Trust Fund program. Three of these taxes are 
imposed on highway motor fuels. The remaining three are a 
retail sales tax on heavy highway vehicles, a manufacturers' 
excise tax on heavy vehicle tires, and an annual use tax on 
heavy vehicles. A substantial majority of the revenues produced 
by the Highway Trust Fund excise taxes are derived from the 
taxes on motor fuels. Except for 4.3 cents per gallon of the 
Highway Trust Fund fuels tax rates, and a portion of the tax on 
certain special motor fuels, all of these taxes are scheduled 
to expire after September 30, 2005. The 4.3-cents-per-gallon 
portion of the fuels tax rates is permanent.\1\ The six taxes 
are summarized below.
---------------------------------------------------------------------------
    \1\ This portion of the tax rates was enacted as a deficit 
reduction measure in 1993. Receipts from it were retained in the 
General Fund until 1997 legislation provided for their transfer to the 
Highway Trust Fund.
---------------------------------------------------------------------------

Highway motor fuels taxes

    The Highway Trust Fund motor fuels tax rates are as 
follows:\2\
---------------------------------------------------------------------------
    \2\ Secs. 4081(a)(2)(A)(i), 4081(a)(2)(A)(iii), 4041(a)(2), 
4041(a)(3), and 4041(m). Some of these fuels also are subject to an 
additional 0.1-cent-per-gallon excise tax to fund the Leaking 
Underground Storage Tank (``LUST'') Trust Fund (secs. 4041(d) and 
4081(a)(2)(B)).

Gasoline..................................  18.3 cents per gallon
Diesel fuel and kerosene..................  24.3 cents per gallon
Special motor fuels.......................  18.3 cents per gallon
                                             generally \3\



---------------------------------------------------------------------------
    \3\ The statutory rate for certain special motor fuels is 
determined on an energy equivalent basis, as follows:
    Liquefied petroleum gas (propane): 13.6 cents per gallon (3.2 cents 
after September 30, 2005).
    Liquefied natural gas: 11.9 cents per gallon (2.8 cents after 
September 30, 2005).
    Methanol derived from natural gas: 9.15 cents per gallon (2.15 
cents after September 30, 2005).
    Compressed natural gas: 48.54 cents per MCF.
    See secs. 4041(a)(2), 4041(a)(3) and 4041(m).
    The compressed natural gas tax rate is equivalent only to 4.3 cents 
per gallon of the rate imposed on gasoline and other special motor 
fuels rather than the full 18.3-cents-per-gallon rate. The tax rate for 
the other special motor fuels is equivalent to the full 18.3-cents-per-
gallon gasoline and special motor fuels tax rate.

Non-fuel Highway Trust Fund excise taxes

    In addition to the highway motor fuels excise tax revenues, 
the Highway Trust Fund receives revenues produced by three 
excise taxes imposed exclusively on heavy highway vehicles or 
tires. These taxes are:
    1. A 12-percent excise tax imposed on the first retail sale 
of heavy highway vehicles, tractors, and trailers (generally, 
trucks having a gross vehicle weight in excess of 33,000 pounds 
and trailers having such a weight in excess of 26,000 pounds) 
(sec. 4051);
    2. An excise tax imposed on highway tires with a rated load 
capacity exceeding 3,500 pounds, generally at a rate of 9.45 
cents per 10 pounds of excess (sec. 4071(a)); and
    3. An annual use tax imposed on highway vehicles having a 
taxable gross weight of 55,000 pounds or more (sec. 4481). (The 
maximum rate for this tax is $550 per year, imposed on vehicles 
having a taxable gross weight over 75,000 pounds.)

         PRESENT-LAW HIGHWAY TRUST FUND EXPENDITURE PROVISIONS

In general

    Dedication of excise tax revenues to the Highway Trust Fund 
and expenditures from the Highway Trust Fund are governed by 
the Code (sec. 9503).\4\ The Code authorizes expenditures 
(subject to appropriations) from the Fund through May 31, 2005, 
for the purposes provided in authorizing legislation, as in 
effect on the date of enactment of the Surface Transportation 
Extension Act of 2004, Part V.
---------------------------------------------------------------------------
    \4\ The Highway Trust Fund statutory provisions were placed in the 
Internal Revenue Code in 1982.
---------------------------------------------------------------------------
    Under present law, revenues from the highway excise taxes, 
as imposed through September 30, 2005, generally are dedicated 
to the Highway Trust Fund. Under section 9503(c)(2), the 
Highway Trust Fund reimburses the General Fund for amounts paid 
in respect of gasoline used on farms, gasoline used for certain 
nonhighway purposes or by local transit systems, amounts 
relating to fuels not used for taxable purposes, and income tax 
credits for certain exempt uses of fuels.

Highway Trust Fund expenditure purposes

    The Highway Trust Fund has a separate account for mass 
transit, the Mass Transit Account.\5\ The Highway Trust Fund 
and the Mass Transit Account are funding sources for specific 
programs. Neither the Highway Trust Fund nor the Mass Transit 
Account receives interest on its unexpended balances.\6\
---------------------------------------------------------------------------
    \5\ Sec. 9503(e)(1).
    \6\ Sec. 9503(f)(2).
---------------------------------------------------------------------------
    Highway Trust Fund expenditure purposes have been revised 
with each authorization Act enacted since establishment of the 
Highway Trust Fund in 1956. In general, expenditures authorized 
under those Acts (as the Acts were in effect on the date of 
enactment of the most recent such authorizing Act) are 
specified by the Code as Highway Trust Fund expenditure 
purposes.\7\ The Code provides that authority to make 
expenditures from the Highway Trust Fund expires after May 31, 
2005. Thus, no Highway Trust Fund expenditures may occur after 
May 31, 2005, without an amendment to the Code.
---------------------------------------------------------------------------
    \7\ The authorizing Acts that currently are referenced in the 
Highway Trust Fund provisions of the Code are: the Highway Revenue Act 
of 1956, Title I and II of the Surface Transportation Assistance Act of 
1982, the Surface Transportation and Uniform Relocation Act of 1987, 
the Intermodal Surface Transportation Efficiency Act of 1991 and the 
Transportation Equity Act for the 21st Century, the Surface 
Transportation Extension Act of 2003, the Surface Transporation 
Extension Act of 2004; the Surface Transportation Extension Act of 
2004, Part II; the Surface Transportation Extension Act of 2004 Part 
III; the Surface Transportation Extension Act of 2004, Part IV; and the 
Surface Transportation Extension Act of 2004, Part V.
---------------------------------------------------------------------------

Interrelationship of the Highway Trust Fund and the Aquatic Resources 
        Trust Fund

    The Aquatic Resources Trust Fund is funded by a portion of 
the receipts from the excise taxes imposed on motorboat 
gasoline and special motor fuels and on gasoline used as a fuel 
in the nonbusiness use of small-engine outdoor power equipment. 
A portion of these taxes are transferred into the Highway Trust 
Fund and then retransferred into the Aquatic Resources Trust 
Fund. As a result, transfers to the Aquatic Resources Trust 
Fund are governed in part by Highway Trust Fund provisions 
(secs. 9503(c)(4) and 9503(c)(5)).
    A total tax rate of 18.4 cents per gallon is imposed on 
gasoline and special motor fuels used in motorboats and on 
gasoline used as a fuel in the nonbusiness use of small-engine 
outdoor power equipment. Of this rate, 0.1 cent per gallon is 
dedicated to the Leaking Underground Storage Tank Trust Fund. 
Of the remaining 18.3 cents per gallon, 4.8 cents per gallon 
are retained in the General Fund. The balance of 13.5 cents per 
gallon is transferred to the Highway Trust Fund and then 
retransferred to the Aquatic Resources Trust Fund and the Land 
and Water Conservation Fund, as follows.
    The Aquatic Resources Trust Fund is comprised of two 
accounts, the Boat Safety Account and the Sport Fish 
Restoration Account. Motorboat fuel taxes, not exceeding $70 
million per year, are transferred to the Boat Safety Account. 
In addition, these transfers are subject to an overall annual 
limit equal to an amount that will not cause the Boat Safety 
Account to have an unobligated balance in excess of $70 
million. To the extent there are excess motorboat fuel taxes, 
the next $1 million per year of motorboat fuel taxes is 
transferred from the Highway Trust Fund to the Land and Water 
Conservation Fund provided for in Title I of the Land and Water 
Conservation Fund Act of 1965. The balance of the motorboat 
fuel taxes in the Highway Trust Fund is transferred to the 
Sport Fish Restoration Account.
    The Sport Fish Restoration Account also receives 13.5 cents 
per gallon of the small-engine fuel taxes from the Highway 
Trust Fund. This Account is also funded with receipts from an 
ad valorem manufacturers' excise tax on sport fishing 
equipment.
    The retention in the General Fund of 4.8 cents per gallon 
of taxes on fuel used in motorboats and in the nonbusiness use 
of small-engine outdoor power equipment expires with respect to 
taxes imposed after September 30, 2005.
    The expenditure authority for the Aquatic Resources Trust 
Fund expires after May 31, 2005.

H.R. 3: Transportation Equity Act: A Legacy for Users

    On February 9, 2005, Representative Don Young introduced 
H.R. 3, the Transportation Equity Act: A Legacy for Users. 
Among other purposes, the bill reauthorizes the Federal 
highway, public transportation, highway safety and motor 
carrier safety programs for fiscal year 2004 through fiscal 
year 2009.

                           REASONS FOR CHANGE

    The Committee believes that highway and transit spending 
sustains and creates jobs, providing valuable new opportunities 
in communities where the availability of jobs is declining. In 
addition, a long-term reauthorization provides stability for 
State transportation programs dependent on Federal funds. Thus, 
the Committee believes it is appropriate to reauthorize Highway 
Trust Fund expenditures through September 30, 2009 in 
coordination with new transportation legislation and to extend 
current Federal taxes payable to the Highway Trust Fund through 
September 30, 2011.
    The Committee also believes that the full amount of excise 
taxes imposed on fuel used in motorboats and in the nonbusiness 
use of small-engine outdoor power equipment should not be 
retained in the General Fund and should instead be credited to 
the trust fund dedicated to the users who primarily bear such 
taxes. Fuel taxes imposed with respect to other uses are 
currently either dedicated to an appropriate fund or are being 
phased out. Therefore, the Committee believes that allowing the 
present-law General Fund retention of such taxes to expire as 
scheduled is consistent with the treatment of other fuel taxes.

                        EXPLANATION OF PROVISION

    The expenditure authority for the Highway Trust Fund and 
Aquatic Resources Trust Fund is extended through September 30, 
2009. The Code provisions governing the purposes for which 
monies in the Highway Trust Fund may be spent are modified to 
include the reauthorization bill, H.R. 3, Transportation Equity 
Act: A Legacy for Users.
    The provision also extends the motor fuel taxes and all 
three non-fuel excise taxes at their current rates through 
September 30, 2011.
    The provision does not extend the retention in the General 
Fund of 4.8 cents per gallon of taxes on fuel used in 
motorboats and in the nonbusiness use of small-engine outdoor 
power equipment.

                             EFFECTIVE DATE

    The provision is effective on the date of enactment.

B. Fuels-Related Technical Corrections to American Jobs Creation Act of 
                                  2004


(Sec. 3 of the bill and secs. 4081 and 6427 of the Code)

    The bill includes technical corrections to the American 
Jobs Creation Act of 2004 (``AJCA''). The amendments made by 
the technical corrections take effect as if included in the 
section of AJCA to which each amendment relates.

1. Volumetric ethanol excise tax credit (sec. 301 of AJCA)

    AJCA repealed the reduced tax rates for alcohol fuels and 
taxable fuels to be blended with alcohol. The technical 
correction makes a conforming amendment to eliminate the refund 
provision based on those reduced rates (secs. 6427(f) and 
6427(o)).

2. Aviation-grade kerosene (sec. 853 of AJCA)

    Section 853 of AJCA moved the taxation of jet fuel 
(aviation-grade kerosene) from section 4091 to section 4081 and 
repealed section 4091. The termination date for the 21.8 cent 
per gallon rate for noncommercial aviation jet fuel was 
inadvertently omitted from the Act. The technical correction 
clarifies that after September 30, 2007, the rate for jet fuel 
used in noncommercial aviation will be 4.3 cents per gallon.
    An additional technical correction clarifies that users of 
aviation-grade kerosene in commercial aviation are required to 
be registered with the IRS in order for the 4.3-cents-per-
gallon rate to apply (including for purposes of the self-
assessment of tax by commercial aircraft operators).

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the votes of the Committee on Ways and Means in its 
consideration of the bill, H.R. 996.

                       MOTION TO REPORT THE BILL

    The bill, H.R. 996, as amended was ordered favorably 
reported by voice vote (with a quorum being present).

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made concerning the effects on the budget of the revenue 
provisions of the bill, H.R. 996 as reported.
    The bill is estimated to have the following effects on 
budget receipts for fiscal years 2005-2010:


B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, March 7, 2005.
Hon. William ``Bill'' M. Thomas,
Chairman, Committee on Ways and Means,
U.S. House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 996, the Highway 
Reauthorization Tax Act of 2005.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Laura 
Hanlon (for revenues), and Deborah Reis (for direct spending).
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 996--Highway Reauthorization Tax Act of 2005

    Summary: H.R. 996 would amend the Internal Revenue Code to 
extend certain expiring highway taxes through September 30, 
2011. Under current law, excise taxes are imposed on motor 
fuels, certain vehicles, and tires. Most of those taxes are set 
to expire on September 30, 2005. Among these levies is a tax of 
18.3 cents per gallon that is imposed on gasoline and special 
motor fuels used in motorboats and certain small engines. H.R. 
996 would distribute all revenues collected from the tax on 
those fuels to the Aquatic Resources Trust Fund (ARTF). ARTF 
deposits may be spent without further appropriation for state 
grants and conservation activities. Under current law, only 
13.5 cents per gallon is deposited in the ARTF; the balance of 
4.8 cents per gallon remains in the general fund.
    H.R. 996 also would extend expenditure authority for the 
Highway Trust Fund and the ARTF through September 30, 2009.
    CBO and the Joint Committee on Taxation (JCT) estimate that 
the bill would not affect revenues, relative to the current 
baseline, because CBO's baseline already assumes extension of 
the taxes under laws governing the baseline construction. CBO 
estimates that, by increasing the amount of revenue allocated 
to the ARTF, the bill would result in additional direct 
spending of $29 million in 2007 and about $1.1 billion over the 
2007-2015 period.
    CBO and JCT have determined that H.R. 996 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.
    Estimated Cost to the Federal Government: The budgetary 
impact of H.R. 996 over the 2005-2015 period is shown in the 
following table. The costs of this legislation fall within 
budget function 300 (natural resources and environment).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                         2005     2006     2007     2008     2009     2010     2011     2012     2013     2014     2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   CHANGES IN REVENUES

Estimated Revenues...................................        0        0        0        0        0        0        0        0        0        0        0

                                                               CHANGES IN DIRECT SPENDING

Estimated Budget Authority...........................        0        0      123      131      138      144      149      152      156      161      163
Estimated Outlays....................................        0        0       29       69      104      125      137      143      147      151      156
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: Joint Committee on Taxation and CBO.

Basis of estimate

            Revenues
    JCT estimates that extending the expiring tax provisions 
would have no effect on federal revenues because the baseline 
already includes those revenues. Under section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended, excise taxes dedicated to trust funds, if set to 
expire, are assumed to be extended in CBO's baseline at the 
current rates in place just before scheduled expiration.
            Direct Spending
    Enacting H.R. 996 would increase direct spending beginning 
in 2007 because the bill would allocate the 18.3 cents per 
gallon collected from taxes on fuels used in motorboats and 
certain small engines to the ARTF, rather than the 13.5 cents 
per gallon currently deposited in that fund. All amounts 
deposited into the ARTF are available in the following year 
without further appropriation. CBO estimates that this change 
would increase direct spending by $29 million in 2007 and by 
about $1.1 billion over the 2007-2015 period.
    Intergovernmental and private-sector impact: CBO and JCT 
have determined that H.R. 996 contains no intergovernmental or 
private-sector mandates and would impose no costs on state, 
local, or tribal governments.
    Estimate prepared by: Federal Revenues; Laura Hanlon; and 
Federal Costs: Deborah Reis.
    Estimate approved by: G. Thomas Woodward, Assistant 
Director for Tax Analysis; and Peter H. Fontaine, Deputy 
Assistant Director for Budget Analysis.

                    D. Macroeconomic Impact Analysis

    In compliance with clause 3(h)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made by the Joint Committee on Taxation with respect to the 
provisions of the bill amending the Internal Revenue Code of 
1986: the effects of the bill on economic activity are so small 
as to be incalculable within the context of a model of the 
aggregate economy.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that it is appropriate and timely to 
enact the revenue provision included in the bill as reported.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

                 C. Constitutional Authority Statement

    With respect to clause 3(d)(1) of the rule XIII of the 
Rules of the House of Representatives (relating to 
Constitutional Authority), the Committee states that the 
Committee's action in reporting this bill is derived from 
Article I of the Constitution, Section 8 (``The Congress shall 
have Power To lay and collect Taxes, Duties, Imposts and 
Excises . . . '').

              D. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Act of 1995 (Pub. L. No. 104-4).
    The Committee has determined that the revenue provisions of 
the bill do not contain Federal mandates on the private sector. 
The Committee has determined that the revenue provisions of the 
bill do not impose a Federal intergovernmental mandate on 
State, local, or tribal governments.

                E. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the provisions of the bill, and states that 
the provisions of the bill do not involve any Federal income 
tax rate increases within the meaning of the rule.

                       F. Tax Complexity Analysis

    Section 4022(b) of the Internal Revenue Service 
Restructuring and Reform Act of 1998 (the ``IRS Reform Act'') 
requires the Joint Committee on Taxation (in consultation with 
the Internal Revenue Service and the Department of the 
Treasury) to provide a tax complexity analysis. The complexity 
analysis is required for all legislation reported by the Senate 
Committee on Finance, the House Committee on Ways and Means, or 
any committee of conference if the legislation includes a 
provision that directly or indirectly amends the Internal 
Revenue Code and has widespread applicability to individuals or 
small businesses.
    The staff of the Joint Committee on Taxation has determined 
that a complexity analysis is not required under section 
4022(b) of the IRS Reform Act because the bill contains no 
provisions that have ``widespread applicability'' to 
individuals or small businesses.

       IV. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *



Subtitle D--Miscellaneous Excise Taxes

           *       *       *       *       *       *       *


CHAPTER 31--RETAIL EXCISE TAXES

           *       *       *       *       *       *       *


Subchapter B--Special Fuels

           *       *       *       *       *       *       *


SEC. 4041. IMPOSITION OF TAX.

  (a) Diesel fuel and special motor fuels
          (1) Tax on diesel fuel and kerosene in certain cases
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Rate of tax.--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) Rate of tax on certain buses.--
                                  (I) In general.--Except as 
                                provided in subclause (II), in 
                                the case of fuel sold for use 
                                or used in a use described in 
                                section 6427(b)(1) (after the 
                                application of section 
                                6427(b)(3)), the rate of tax 
                                imposed by this paragraph shall 
                                be 7.3 cents per gallon (4.3 
                                cents per gallon after 
                                September 30, [2005] 2011).
          (2) Special motor fuels.--
                  (A) * * *
                  (B) Rate of tax.--The rate of the tax imposed 
                by this paragraph shall be--
                          (i) * * *

           *       *       *       *       *       *       *


        In the case of any sale or use after September 30, 
        [2005] 2011, clause (ii) shall be applied by 
        substituting ``3.2 cents'' for ``13.6 cents'', and 
        clause (iii) shall be applied by substituting ``2.8 
        cents'' for ``11.9 cents''.

           *       *       *       *       *       *       *

  (m) Certain Alcohol Fuels.--
          (1) In general.--In the case of the sale or use of 
        any partially exempt methanol or ethanol fuel the rate 
        of the tax imposed by subsection (a)(2) shall be--
                  (A) after September 30, 1997, and before 
                October 1, [2005] 2011--
                          (i) * * *

           *       *       *       *       *       *       *

                  (B) after September 30, [2005] 2011--
                          (i) in the case of fuel none of the 
                        alcohol in which consists of ethanol, 
                        2.15 cents per gallon, and
                          (ii) in any other case, 4.3 cents per 
                        gallon.

           *       *       *       *       *       *       *


Subchapter C--Heavy Trucks and Trailers

           *       *       *       *       *       *       *


SEC. 4051. IMPOSITION OF TAX ON HEAVY TRUCKS AND TRAILERS SOLD AT 
                    RETAIL.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Termination.--On and after October 1, [2005] 2011, the 
taxes imposed by this section shall not apply.

           *       *       *       *       *       *       *


CHAPTER 32--MANUFACTURERS EXCISE TAXES

           *       *       *       *       *       *       *


Subchapter A--Automotive and Related Items

           *       *       *       *       *       *       *


PART II--TIRES

           *       *       *       *       *       *       *



SEC. 4071. IMPOSITION OF TAX.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Termination.--On and after October 1, [2005] 2011, the 
taxes imposed by subsection (a) shall not apply.

           *       *       *       *       *       *       *


PART III--PETROLEUM PRODUCTS

           *       *       *       *       *       *       *



Subpart A--Motor and Aviation Fuels

           *       *       *       *       *       *       *



SEC. 4081. IMPOSITION OF TAX.

  (a) Tax Imposed.--
          (1) * * *
          (2) Rates of tax.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Taxes imposed on fuel used in commercial 
                aviation.--In the case of aviation-grade 
                kerosene which is removed from any refinery or 
                terminal directly into the fuel tank of an 
                aircraft [for use in commercial aviation] for 
                use in commercial aviation by a person 
                registered for such use under section 4101, the 
                rate of tax under subparagraph (A)(iv) shall be 
                4.3 cents per gallon.

           *       *       *       *       *       *       *

  (d) Termination.--
          (1) In general.--The rates of tax specified in 
        clauses (i) and (iii) of subsection (a)(2)(A) shall be 
        4.3 cents per gallon after September 30, [2005] 2011.
          [(2) Aviation gasoline.--The rate of tax specified in 
        subsection (a)(2)(A)(ii) shall be 4.3 cents per 
        gallon--]
          (2) Aviation fuels.--The rates of tax specified in 
        clauses (ii) and (iv) of subsection (a)(2)(A) shall be 
        4.3 cents per gallon--
                  (A) * * *

           *       *       *       *       *       *       *


Subchapter G--Exemptions, Registration, Etc.

           *       *       *       *       *       *       *


SEC. 4221. CERTAIN TAX-FREE SALES.

  (a) General Rule.--Under regulations prescribed by the 
Secretary, no tax shall be imposed under this chapter (other 
than under section 4121 or 4081) on the sale by the 
manufacturer (or under subchapter A or C of chapter 31 on the 
first retail sale) of an article--
          (1) * * *

           *       *       *       *       *       *       *

but only if such exportation or use is to occur before any 
other use. Paragraphs (4) and (5) shall not apply to the tax 
imposed by section 4064. In the case of taxes imposed by 
section 4051, or 4071, paragraphs (4) and (5) shall not apply 
on and after October 1, [2005] 2011. In the case of the tax 
imposed by section 4131, paragraphs (3), (4), and (5) shall not 
apply and paragraph (2) shall apply only if the use of the 
exported vaccine meets such requirements as the Secretary may 
by regulations prescribe. In the case of taxes imposed by 
subchapter A of chapter 31, paragraphs (1), (3), (4), and (5) 
shall not apply.

           *       *       *       *       *       *       *


CHAPTER 36--CERTAIN OTHER EXCISE TAXES

           *       *       *       *       *       *       *


Subchapter D--Tax on Use of Certain Vehicles

           *       *       *       *       *       *       *


SEC. 4481. IMPOSITION OF TAX.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Period Tax in Effect.--The tax imposed by this section 
shall apply only to use before October 1, [2005] 2011.

SEC. 4482. DEFINITIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Other Definitions and Special Rule.--For purposes of this 
subchapter--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Taxable period.--The term ``taxable period'' 
        means any year beginning before July 1, [2005] 2011, 
        and the period which begins on July 1, [2005] 2011, and 
        ends at the close of September 30, [2005] 2011.

           *       *       *       *       *       *       *

  (d) Special Rule for Taxable Period in Which Termination Date 
Occurs.--In the case of the taxable period which ends on 
September 30, [2005] 2011, the amount of the tax imposed by 
section 4481 with respect to any highway motor vehicle shall be 
determined by reducing each dollar amount in the table 
contained in section 4481(a) by 75 percent.

           *       *       *       *       *       *       *


SEC. 4483. EXEMPTIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (h) Termination of Exemptions.--Subsections (a) and (c) shall 
not apply on and after October 1, [2005] 2011.

           *       *       *       *       *       *       *


Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes

           *       *       *       *       *       *       *


CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS

           *       *       *       *       *       *       *


Subchapter B--Rules of Special Application

           *       *       *       *       *       *       *


SEC. 6412. FLOOR STOCKS REFUNDS.

  (a) In General.--
          (1) Tires and taxable fuel.--Where before October 1, 
        [2005] 2011, any article subject to the tax imposed by 
        section 4071 or 4081 has been sold by the manufacturer, 
        producer, or importer and on such date 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 manufacturer, producer, or importer an amount 
        equal to the difference between the tax paid by such 
        manufacturer, producer, or importer on his sale of the 
        article and the amount of tax made applicable to such 
        article on and after October 1, [2005] 2011, if claim 
        for such credit or refund is filed with the Secretary 
        on or before March 31, [2006] 2012, based upon a 
        request submitted to the manufacturer, producer, or 
        importer before January 1, [2006] 2012 by the dealer 
        who held the article in respect of which the credit or 
        refund is claimed, and, on or before March 31, [2006] 
        2012, reimbursement has been made to such dealer by 
        such manufacturer, producer, or importer for the tax 
        reduction on such article or written consent has been 
        obtained from such dealer to allowance of such credit 
        or refund. No credit or refund shall be allowable under 
        this paragraph with respect to taxable fuel in retail 
        stocks held at the place where intended to be sold at 
        retail, nor with respect to taxable fuel held for sale 
        by a producer or importer of taxable fuel.

           *       *       *       *       *       *       *


SEC. 6427. FUELS NOT USED FOR TAXABLE PURPOSES.

  (a) * * *

           *       *       *       *       *       *       *

  [(f) Gasoline, Diesel Fuel, Kerosene, and Aviation Fuel Used 
to Produce Certain Alcohol Fuels.--
          [(1) In general.--Except as provided in subsection 
        (k), if any gasoline, diesel fuel, kerosene, or 
        aviation fuel on which tax was imposed by section 4081 
        or 4091 at the regular tax rate is used by any person 
        in producing a mixture described in section 4081(c) or 
        4091(c)(1)(A) (as the case may be) which is sold or 
        used in such person's trade or business, the Secretary 
        shall pay (without interest) to such person an amount 
        equal to the excess of the regular tax rate over the 
        incentive tax rate with respect to such fuel.
          [(2) Definitions.--For purposes of paragraph (1)--
                  [(A) Regular tax rate.--The term ``regular 
                tax rate'' means--
                          [(i) in the case of gasoline, diesel 
                        fuel, or kerosene, the aggregate rate 
                        of tax imposed by section 4081 
                        determined without regard to subsection 
                        (c) thereof, and
                          [(ii) in the case of aviation fuel, 
                        the aggregate rate of tax imposed by 
                        section 4091 determined without regard 
                        to subsection (c) thereof.
                  [(B) Incentive tax rate.-- The term 
                ``incentive tax rate'' means--
                          [(i) in the case of gasoline, diesel 
                        fuel, or kerosene, the aggregate rate 
                        of tax imposed by section 4081 with 
                        respect to fuel described in subsection 
                        (c)(2) thereof, and
                          [(ii) in the case of aviation fuel, 
                        the aggregate rate of tax imposed by 
                        section 4091 with respect to fuel 
                        described in subsection (c)(2) thereof.
          [(3) Coordination with other repayment provisions.--
        No amount shall be payable under paragraph (1) with 
        respect to any gasoline, diesel fuel, kerosene, or 
        aviation fuel with respect to which an amount is 
        payable under subsection (d), or (l) of this section or 
        under section 6420 or 6421.
          [(4) Termination.--This subsection shall not apply 
        with respect to any mixture sold or used after 
        September 30, 2007.]

           *       *       *       *       *       *       *

  [(o) Gasohol Used in Noncommercial Aviation.--Except as 
provided in subsection (k), if--
          [(1) any tax is imposed by section 4081 at a rate 
        determined under subsection (c) thereof on gasohol (as 
        defined in such subsection), and
          [(2) such gasohol is used as a fuel in any aircraft 
        in noncommercial aviation (as defined in section 
        4041(c)(2)),the Secretary shall pay (without interest) 
        to the ultimate purchaser of such gasohol an amount 
        equal to 1.4 cents (2 cents in the case of a mixture 
        none of the alcohol in which consists of ethanol) 
        multiplied by the number of gallons of gasohol so 
        used.]
  [(p)] (o) Cross References.--
          (1) * * *
     * * * * * * *

Subtitle I--Trust Fund Code

           *       *       *       *       *       *       *


CHAPTER 98--TRUST FUND CODE

           *       *       *       *       *       *       *


Subchapter A--Establishment of Trust Funds

           *       *       *       *       *       *       *


SEC. 9503. HIGHWAY TRUST FUND.

  (a) * * *
  (b) Transfer to Highway Trust Fund of Amounts Equivalent to 
Certain Taxes.--
          (1) In general.--There are hereby appropriated to the 
        Highway Trust Fund amounts equivalent to the taxes 
        received in the Treasury before October 1, [2005] 2011, 
        under the following provisions--
                  (A) * * *

           *       *       *       *       *       *       *

          (2) Liabilities incurred before October 1, [2005] 
        2011.--There are hereby appropriated to the Highway 
        Trust Fund amounts equivalent to the taxes which are 
        received in the Treasury after September 30, [2005] 
        2011, and before July 1, [2006] 2012, and which are 
        attributable to liability for tax incurred before 
        October 1, [2005] 2011, under the provisions described 
        in paragraph (1).

           *       *       *       *       *       *       *

          (6) Limitation on transfers to highway trust fund.--
                  (A) * * *
                  (B) Exception for prior obligations.--
                Subparagraph (A) shall not apply to any 
                expenditure to liquidate any contract entered 
                into (or for any amount otherwise obligated) 
                before [June 1, 2005] October 1, 2009, in 
                accordance with the provisions of this section.
  (c) Expenditures from Highway Trust Fund.--
          (1) Federal-aid highway program.--Except as provided 
        in subsection (e), amounts in the Highway Trust Fund 
        shall be available, as provided by appropriation Acts, 
        for making expenditures before [June 1, 2005] October 
        1, 2009, to meet those obligations of the United States 
        heretofore or hereafter incurred which are--
                  (A) * * *

           *       *       *       *       *       *       *

                  (J) authorized to be paid out of the Highway 
                Trust Fund under the Surface Transportation 
                Extension Act of 2004, Part IV, [or]
                  (K) authorized to be paid out of the Highway 
                Trust Fund under the Surface Transportation 
                Extension Act of 2004, Part V[.], or
                  (L) authorized to be paid out of the Highway 
                Trust Fund under the Transportation Equity Act: 
                A Legacy for Users.
        In determining the authorizations under the Acts 
        referred to in the preceding subparagraphs, such Acts 
        shall be applied as in effect on the date of the 
        enactment of the [Surface Transportation Extension Act 
        of 2004, Part V] Transportation Equity Act: A Legacy 
        for Users.
          (2) Transfers from highway trust fund for certain 
        repayments and credits.--
                  (A) In general.--The Secretary shall pay from 
                time to time from the Highway Trust Fund into 
                the general fund of the Treasury amounts 
                equivalent to--
                          (i) the amounts paid before July 1, 
                        [2006] 2012, under--
                                  (I) * * *

           *       *       *       *       *       *       *

                                  (III) section 6427 (relating 
                                to fuels not used for taxable 
                                purposes),on the basis of 
                                claims filed for periods ending 
                                before October 1, [2005] 2011, 
                                and
                          (ii) the credits allowed under 
                        section 34 (relating to credit for 
                        certain uses of fuel) with respect to 
                        fuel used before October 1, [2005] 
                        2011.

           *       *       *       *       *       *       *

          (3) Floor stocks refunds.--The Secretary shall pay 
        from time to time from the Highway Trust Fund into the 
        general fund of the Treasury amounts equivalent to the 
        floor stocks refunds made before July 1, [2006] 2012, 
        under section 6412(a).
          (4) Transfers from the trust fund for motorboat fuel 
        taxes.--
                  (A) Transfer to boat safety account.--
                          (i) In general.--The Secretary shall 
                        pay from time to time from the Highway 
                        Trust Fund into the Boat Safety Account 
                        in the Aquatic Resources Trust Fund 
                        amounts (as determined by him) 
                        equivalent to the motorboat fuel taxes 
                        received on or after October 1, 1980, 
                        and before October 1, [2005] 2011.

           *       *       *       *       *       *       *

          (5) Transfers from the trust fund for small-engine 
        fuel taxes.--
                  (A) In general.--The Secretary shall pay from 
                time to time from the Highway Trust Fund into 
                the Sport Fish Restoration Account in the 
                Aquatic Resources Trust Fund amounts (as 
                determined by him) equivalent to the small-
                engine fuel taxes received on or after December 
                1, 1990 and before October 1, [2005] 2011.

           *       *       *       *       *       *       *

  (e) Establishment of Mass Transit Account.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Expenditures from account.--Amounts in the Mass 
        Transit Account shall be available, as provided by 
        appropriation Acts, for making capital or capital 
        related expenditures before [June 1, 2005] October 1, 
        2009 (including capital expenditures for new projects) 
        in accordance with--
                  (A) * * *

           *       *       *       *       *       *       *

                  (H) the Surface Transportation Extension Act 
                of 2004, Part IV, [or]
                  (I) the Surface Transportation Extension Act 
                of 2004, Part V, or
                  (J) Transportation Equity Act: A Legacy for 
                Users,
        as such section and Acts are in effect on the date of 
        the enactment of the [Surface Transportation Extension 
        Act of 2004, Part V] Transportation Equity Act: A 
        Legacy for Users.

           *       *       *       *       *       *       *


SEC. 9504. AQUATIC RESOURCES TRUST FUND.

  (a) * * *
  (b) Sport Fish Restoration Account.--
          (1) * * *
          (2) Expenditures from account.--Amounts in the Sport 
        Fish Restoration Account shall be available, as 
        provided by appropriation Acts, for making 
        expenditures--
                  (A) to carry out the purposes of the Act 
                entitled ``An Act to provide that the United 
                States shall aid the States in fish restoration 
                and management projects, and for other 
                purposes'', approved August 9, 1950 (as in 
                effect on the date of the enactment of the 
                [Surface Transportation Extension Act of 2004, 
                Part V] Transportation Equity Act: A Legacy for 
                Users),
                  (B) to carry out the purposes of section 
                7404(d) of the Transportation Equity Act for 
                the 21st Century (as in effect on the date of 
                the enactment of the [Surface Transportation 
                Extension Act of 2004, Part V] Transportation 
                Equity Act: A Legacy for Users), and
                  (C) to carry out the purposes of the Coastal 
                Wetlands Planning, Protection and Restoration 
                Act (as in effect on the date of the enactment 
                of the [Surface Transportation Extension Act of 
                2004, Part V] Transportation Equity Act: A 
                Legacy for Users).

        Amounts transferred to such account under section 
        9503(c)(5) may be used only for making expenditures 
        described in subparagraph (B) of this paragraph.
  (c) Expenditures from Boat Safety Account.--Amounts in the 
Boat Safety Account shall be available, as provided by 
appropriation Acts, for making expenditures before [June 1, 
2005] October 1, 2009, to carry out the purposes of section 
13106 of title 46, United States Code (as in effect on the date 
of the enactment of the [Surface Transportation Extension Act 
of 2004, Part V] Transportation Equity Act: A Legacy for 
Users).
  (d) Limitation on transfers to Aquatic Resources Trust 
Fund.--
          (1) * * *
          (2) Exception for prior obligations.--Paragraph (1) 
        shall not apply to any expenditure to liquidate any 
        contract entered into (or for any amount otherwise 
        obligated) before [June 1, 2005] October 1, 2009, in 
        accordance with the provisions of this section.

           *       *       *       *       *       *       *

                              ----------                              


    SECTION 201 OF THE LAND AND WATER CONSERVATION FUND ACT OF 1965

         transfers to and from land and water conservation fund

  Sec. 201. (a) * * *
  (b) There shall be paid from time to time from the land and 
water conservation fund into the general fund of the Treasury 
amounts estimated by the Secretary of the Treasury as 
equivalent to--
          (1) the amounts paid before October 1, [2004] 2010, 
        under section 6421 of the Internal Revenue Code of 1954 
        (relating to amounts paid in respect of gasoline used 
        for certain nonhighway purposes or by local transit 
        systems) with respect to gasoline used after December 
        31, 1964, in motorboats, on the basis of claims filed 
        for periods ending before October 1, [2003] 2009; and
          (2) 80 percent of the floor stocks refunds made 
        before October 1, [2004] 2010, under section 6412(a)(2) 
        of such Code with respect to gasoline to be used in 
        motorboats.

                                  
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