House Report 112-396 - AMERICAN ENERGY AND INFRASTRUCTURE JOBS FINANCING ACT OF 2012

[House Report 112-396]
[From the U.S. Government Publishing Office]

112th Congress Rept. 112-396
HOUSE OF REPRESENTATIVES
2d Session Part 1

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

AMERICAN ENERGY AND INFRASTRUCTURE JOBS FINANCING ACT OF 2012

_______

February 9, 2012.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

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

R E P O R T

together with

DISSENTING VIEWS

[To accompany H.R. 3864]

[Including cost estimate of the Congressional Budget Office]

The Committee on Ways and Means, to whom was referred the
bill (H.R. 3864) to amend the Internal Revenue Code of 1986 to
extend authorities relating to the Highway Trust Fund, to
provide revenues for highway programs and for other purposes,
having considered the same, report favorably thereon and
recommend that the bill do pass.

CONTENTS

Page
I. Summary and Background...........................................2
II. Explanation of the Bill..........................................2
A. GExtension of Highway Trust Fund Expenditure Authority and
Related Taxes.............................................. 2
B. GRevenues From Certain Domestic Energy Leases Appropriated
to the Highway Trust Fund.................................. 5
C. GMass Transit Account Funding............................. 6
III. Votes of the Committee...........................................7
IV. Budget Effects of the Bill.......................................9
V. Other Matters To be Discussed Under the Rules of the House......12
VI. Changes in Existing Law Made by the Bill, as Reported...........14
VII. Dissenting Views................................................23

I. Summary and Background

A. PURPOSE AND SUMMARY

The bill, H.R. 3864, reported by the Committee on Ways and
Means, reauthorizes through September 30, 2016, the expenditure
authority for the Highway Trust Fund and extends, through
September 30, 2018, the current Federal excise taxes that fund
the Highway Trust Fund. To address the projected inability of
the Highway Trust Fund to meet expenditures with current
revenue sources, H.R. 3864 restructures the funding sources for
the Highway Account and Mass Transit Account. Under H.R. 3864,
all excise tax revenue that fund the Highway Trust Fund and
certain revenues from domestic energy development are deposited
into the Highway Account. The Mass Transit Account is renamed
the Alternative Transportation Account and funded with an
appropriation of $40 billion.

B. BACKGROUND AND NEED FOR LEGISLATION

The provisions approved by the Committee reflect the need
to reauthorize expiring Highway Trust Fund expenditure
authority, extend expiring Federal excise taxes that fund the
Highway Trust Fund and provide revenues to the Highway Trust
Fund in order to provide stable funding for highway and mass
transit projects, consistent with the five-year reauthorization
bill (the ``American Energy and Infrastructure Jobs Act of
2012'', H.R. 7) that was ordered reported by the Committee on
Transportation and Infrastructure on February 3, 2012, as well
as for other purposes.

C. LEGISLATIVE HISTORY

Background

H.R. 3864 was introduced on February 1, 2012, and was
referred to the Committee on Ways and Means, and in addition
the Committee on Transportation and Infrastructure.

Committee action

The Committee on Ways and Means marked up H.R. 3864, the
American Energy and Infrastructure Jobs Financing Act of 2012,
on February 3, 2012, and ordered the bill favorably reported
without an amendment (with a quorum being present).

II. Explanation of the Bill

A. EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND RELATED
TAXES (SECS. 2 AND 3 OF THE BILL AND SECS. 4041, 4051, 4071, 4081,
4221, 4481-4483, 6412, 9503, 9504, AND 9508 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. The annual use tax on heavy vehicles
expires October 1, 2012. Except for 4.3 cents per gallon of the
Highway Trust Fund fuels tax rates, the remaining taxes are
scheduled to expire after March 31, 2012. 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.
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Highway motor fuels taxes
The Highway Trust Fund motor fuels tax rates are as
follows:\2\
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\2\Secs. 4041(a)(2), 4041(a)(3), 4041(m), 4081(a)(2)(A)(i), and
4081(a)(2)(A)(iii). Except where noted, all section references are to
the Internal Revenue Code of 1986, as amended (``the Code''). 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)).
\3\See secs. 4041(a)(2), 4041(a)(3), and 4041(m).

------------------------------------------------------------------------

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

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);\4\
---------------------------------------------------------------------------
\4\Sec. 4051.
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2. An excise tax imposed on highway tires with a
rated load capacity exceeding 3,500 pounds, generally
at a rate of 0.945 cents per pound of excess;\5\ and
---------------------------------------------------------------------------
\5\Sec. 4071.
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3. An annual use tax imposed on highway vehicles
having a taxable gross weight of 55,000 pounds or
more.\6\ (The maximum rate for this tax is $550 per
year, imposed on vehicles having a taxable gross weight
over 75,000 pounds.)
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\6\Sec. 4481.
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The taxable year for the annual use tax is from July 1st
through June 30th of the following year. For the period July 1,
2012, through September 30, 2012, the amount of the annual use
tax is reduced by 75 percent.

Present-Law Highway Trust Fund Expenditure Provisions

In general
Under present law, revenues from the highway excise taxes,
as imposed through March 31, 2012, generally are dedicated to
the Highway Trust Fund. Dedication of excise tax revenues to
the Highway Trust Fund and expenditures from the Highway Trust
Fund are governed by the Code.\7\ The Code authorizes
expenditures (subject to appropriations) from the Highway Trust
Fund through March 31, 2012, for the purposes provided in
authorizing legislation, as in effect on the date of enactment
of the Surface Transportation Extension Act of 2011, Part II.
---------------------------------------------------------------------------
\7\Sec. 9503. The Highway Trust Fund statutory provisions were
placed in the Internal Revenue Code in 1982.
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Highway Trust Fund expenditure purposes
The Highway Trust Fund has a separate account for mass
transit, the Mass Transit Account.\8\ The Highway Trust Fund
and the Mass Transit Account are funding sources for specific
programs.
---------------------------------------------------------------------------
\8\Sec. 9503(e)(1).
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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.\9\ The Code provides that the authority to make
expenditures from the Highway Trust Fund expires after March
31, 2012. Thus, no Highway Trust Fund expenditures may occur
after March 31, 2012, without an amendment to the Code.
---------------------------------------------------------------------------
\9\The authorizing Acts that currently are referenced in the
Highway Trust Fund provisions of the Code are: the Highway Revenue Act
of 1956; Titles 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; the
Transportation Equity Act for the 21st Century; the Surface
Transportation Extension Act of 2003; the Surface Transportation
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; the
Surface Transportation Extension Act of 2004, Part V; the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy
for Users; the SAFETEA-LU Technical Corrections Act of 2008; the
Surface Transportation Extension Act of 2010; the Surface
Transportation Extension Act of 2010, Part II; the Surface
Transportation Extension Act of 2011; and the Surface Transportation
Extension Act of 2011, Part II.
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The American Energy and Infrastructure Jobs Act of 2012

On February 3, 2012, the House Committee on Transportation
and Infrastructure approved H.R. 7, the American Energy and
Infrastructure Jobs Act of 2012. Among other purposes, the bill
reauthorizes the Federal highway, public transportation,
highway safety, and motor carrier safety programs for fiscal
year 2012 through fiscal year 2016.

Reasons for Change

The Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users, which was the last long-term
Highway Trust Fund reauthorization, expired September 30, 2009.
The highway and mass transit programs since then have been
subject to a series of temporary extensions. Most highway
projects are multi-year projects. The Committee believes a
five-year reauthorization provides stability for State
transportation programs and the opportunity for longer-range
planning. Therefore, it is appropriate to reauthorize Highway
Trust Fund expenditures through September 30, 2016, in
coordination with new transportation legislation (the American
Energy and Infrastructure Jobs Act of 2012) and to extend
current Federal taxes payable to the Highway Trust Fund through
September 30, 2018.
In calendar year 2011, the heavy vehicle use tax was
scheduled to expire on September 30, 2011, with a short July 1
to September 30 tax period. The annual use tax return is
normally due August 31. On July 15, 2011, the IRS
administratively delayed the due date for filing the annual
heavy vehicle use tax return from August 31, to November 30,
2011. This allowed sufficient time for Congress to extend the
heavy vehicle use tax for an entire taxable year, ensuring the
Highway Trust Fund would receive the full amount of tax rather
than 25 percent for the taxable period.
To ensure a full year of tax is collected, and avoid
taxpayer and IRS inconvenience in the future, the bill
eliminates the short taxable period, changes the heavy vehicle
use tax taxable period from a July 1 to an October 1 annual
period, and conforms the heavy vehicle use tax expiration to
that of the other taxes dedicated to the Highway Trust Fund.

Explanation of Provision

Under H.R. 3864, the expenditure authority for the Highway
Trust Fund is extended through September 30, 2016. The Code
provisions governing the purposes for which monies in the
Highway Trust Fund may be spent are updated to include the
reauthorization bill, the American Energy and Infrastructure
Jobs Act of 2012.\10\
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\10\The provision also replaces cross-references to the Surface
Transportation Extension Act of 2011, Part II, with the American Energy
and Infrastructure Jobs Act of 2012, and replaces April 1, 2012
references with October 1, 2016 in the Code provisions governing the
Leaking Underground Storage Tank Trust Fund, and the Sport Fish
Restoration and Boating Trust Fund.
---------------------------------------------------------------------------
The provision extends the motor fuel taxes, and all three
non-fuel excise taxes at their current rates through September
30, 2018. Effective October 1, 2012, the provision conforms the
annual use tax to a fiscal year, ending on September 30, rather
than June 30.\11\
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\11\The LUST Trust Fund financing rate of 0.1 cent per gallon is
also extended through September 30, 2018.
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Effective Date

The provision is generally effective on April 1, 2012. The
provision changing the taxable period for the annual use tax is
effective for periods beginning after September 30, 2012.

B. REVENUES FROM CERTAIN DOMESTIC ENERGY LEASES APPROPRIATED TO THE
HIGHWAY TRUST FUND (SEC. 4 OF THE BILL AND SEC. 9503 OF THE CODE)

Present Law

Section 9503 appropriates to the Highway Trust Fund amounts
equivalent to the taxes received from the following: the taxes
on diesel, gasoline, kerosene and special motor fuel, the tax
on tires, the annual heavy vehicle use tax, and the tax on the
retail sale of heavy trucks and trailers.\12\ Section 9601
provides that amounts appropriated to a trust fund pursuant to
sections 9501 through 9511, are to be transferred at least
monthly from the General Fund of the Treasury to such trust
fund on the basis of estimates made by the Secretary of the
Treasury of the amounts referred to in the Code section
appropriating the amounts to such trust fund. The Code requires
that proper adjustments be made in amounts subsequently
transferred to the extent prior estimates were in excess of, or
less than, the amounts required to be transferred.
---------------------------------------------------------------------------
\12\Sec. 9503(b)(1).
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Reasons for Change

Because infrastructure spending has consistently outpaced
Highway Trust Fund revenues, the Congress has made several
deficit-financed General Fund transfers to support Highway
Trust Fund expenditures in recent years. Nevertheless, the
Congressional Budget Office has estimated that the Highway
Trust Fund will exhaust its available revenues for highway
projects in Fiscal Year 2013. The Committee believes it is
necessary to prevent insolvency of the Highway Trust Fund while
providing adequate funding for these projects. Therefore, the
Committee believes that it is appropriate to dedicate revenues
from domestic energy resources to the Highway Trust Fund, which
will simultaneously provide needed funding for infrastructure
in a fiscally responsible manner, promote domestic energy
development, and create jobs.

Explanation of Provision

H.R. 3864 provides that the net increase in Federal
revenues from certain onshore and offshore domestic energy
leasing and production, as generated by certain bills,\13\ be
appropriated to the Highway Trust Fund.
---------------------------------------------------------------------------
\13\H.R. 3407, the Alaskan Energy for American Jobs Act, is a bill
to direct the Secretary of the Interior to establish and implement a
competitive oil and gas leasing program for the exploration,
development, and production of the oil and gas resources of the Coastal
Plain of Alaska, to ensure secure energy supplies for the continental
Pacific Coast of the United States, to lower prices, to reduce imports,
and for other purposes. H.R. 3408, the Protecting Investment in Oil
Shale the Next Generation of Environmental, Energy, and Resource
Security Act (the PIONEERS Act), is a bill to set clear rules for the
development of the United States oil shale resources, to promote shale
technology research and development, and for other purposes. H.R. 3410,
the Energy Security and Transportation Jobs Act, is a bill to require
the Secretary of the Interior to conduct certain offshore oil and gas
lease sales, to provide fair and equitable revenue sharing for all
coastal States, to formulate future offshore energy development plans
in areas with the most potential, to generate revenue for American
infrastructure, and for other purposes.
---------------------------------------------------------------------------

Effective Date

The provision is effective on the date of enactment.

C. MASS TRANSIT ACCOUNT FUNDING (SEC. 5 OF THE BILL AND SEC. 9503 OF
THE CODE)

Present Law

The Mass Transit Account is funded by a portion of the
motor fuel taxes as follows: 2.86 cents per gallon of the taxes
imposed on gasoline, diesel fuel, and kerosene; 1.43 cents per
gallon in the case of any partially exempt methanol or ethanol
fuel; 1.86 cents per gallon in the case of liquefied natural
gas; 2.13 cents per gallon in the case of liquefied petroleum
gas; and 9.71 cents per MCF (thousand cubic feet) in the case
of compressed natural gas.

Reasons for Change

Fuel tax revenues are insufficient to meet the needs of the
Highway Trust Fund, which has necessitated several deficit-
financed General Fund transfers to the Highway Trust Fund in
recent years. The Congressional Budget Office projects that the
Mass Transit Account of the Highway Trust Fund will exhaust
available revenues for mass transit projects in Fiscal Year
2014. In addition, mass transit generally contributes no
revenue to the Highway Trust Fund, even though approximately 20
percent of Highway Trust Fund revenues is spent on mass transit
projects. To provide a more appropriate funding source for mass
transit during the reauthorization period, the Committee
believes that current fuel tax revenues should be devoted
exclusively to highway projects, while mass transit projects
should be funded with a $40 billion transfer from the General
Fund that does not increase the deficit. The Committee notes
that, according to the Congressional Budget office, mass
transit projects would receive only $25 billion under current
policy. Therefore, this transfer, which would be provided
immediately upon enactment, provides significantly more revenue
than mass transit would receive over the reauthorization
period. Furthermore, the Committee believes that extending the
ability of the Highway Trust Fund to finance mass transit
projects will provide the Congress an opportunity during the
reauthorization period to consider ways to fund mass transit
that are more equitable and sustainable than current policy
over the long-term.

Explanation of Provision

H.R. 3864 ends the transfer of all motor fuel tax amounts
to the Mass Transit Account, and instead funds the account with
a one-time appropriation of $40 billion. To the extent fuel tax
receipts for FY 2012 were credited to the Mass Transit Account,
the provision requires such amounts to be transferred from the
Mass Transit Account to the Highway Account of the Highway
Trust Fund. The provision also renames the Mass Transit
Account, the ``Alternative Transportation Account.''

Effective Date

The provision is effective on the date of enactment.

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 H.R. 3864, the ``American Energy and
Infrastructure Jobs Financing Act of 2012.''

MOTION TO REPORT RECOMMENDATIONS

The bill, H.R. 3864, was ordered favorably reported without
amendment by a roll call vote of 20 yeas and 17 nays (with a
quorum being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Camp....................... X ........ ......... Mr. Levin........ ........ X .........
Mr. Herger..................... X ........ ......... Mr. Rangel....... ........ X .........
Mr. Johnson.................... X ........ ......... Mr. Stark........ ........ X .........
Mr. Brady...................... X ........ ......... Mr. McDermott.... ........ X .........
Mr. Ryan....................... X ........ ......... Mr. Lewis........ ........ X .........
Mr. Nunes...................... X ........ ......... Mr. Neal......... ........ X .........
Mr. Tiberi..................... X ........ ......... Mr. Becerra...... ........ X .........
Mr. Davis...................... X ........ ......... Mr. Doggett...... ........ X .........
Mr. Reichert................... X ........ ......... Mr. Thompson..... ........ X .........
Mr. Boustany................... X ........ ......... Mr. Larson....... ........ X .........
Mr. Roskam..................... X ........ ......... Mr. Blumenauer... ........ X .........
Mr. Gerlach.................... X ........ ......... Mr. Kind......... ........ X .........
Mr. Price...................... X ........ ......... Mr. Pascrell..... ........ X .........
Mr. Buchanan................... X X ......... Ms. Berkley...... ........ X .........
Mr. Smith...................... X ........ ......... Mr. Crowley...... ........ X .........
Mr. Schock..................... X ........ ......... ................. ........ ........ .........
Ms. Jenkins.................... X ........ ......... ................. ........ ........ .........
Mr. Paulsen.................... X X ......... ................. ........ ........ .........
Mr. Marchant................... X ........ ......... ................. ........ ........ .........
Mr. Berg....................... X ........ ......... ................. ........ ........ .........
Ms. Black...................... X ........ ......... ................. ........ ........ .........
Mr. Reed....................... X ........ ......... ................. ........ ........ .........
----------------------------------------------------------------------------------------------------------------

VOTES ON AMENDMENTS

An amendment offered by Mr. Blumenauer and Mr. Rangel to
strike section 5 of the bill failed to pass by a roll call vote
of 15 yeas to 22 nays (with a quorum being present). The vote
was as follows:

----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Camp....................... ........ X ......... Mr. Levin........ X ........ .........
Mr. Herger..................... ........ X ......... Mr. Rangel....... X ........ .........
Mr. Johnson.................... ........ X ......... Mr. Stark........ X ........ .........
Mr. Brady...................... ........ X ......... Mr. McDermott.... X ........ .........
Mr. Ryan....................... ........ X ......... Mr. Lewis........ X ........ .........
Mr. Nunes...................... ........ X ......... Mr. Neal......... X ........ .........
Mr. Tiberi..................... ........ X ......... Mr. Becerra...... X ........ .........
Mr. Davis...................... ........ X ......... Mr. Doggett...... X ........ .........
Mr. Reichert................... ........ X ......... Mr. Thompson..... X ........ .........
Mr. Boustany................... ........ X ......... Mr. Larson....... X ........ .........
Mr. Roskam..................... ........ X ......... Mr. Blumenauer... X ........ .........
Mr. Gerlach.................... ........ X ......... Mr. Kind......... X ........ .........
Mr. Price...................... ........ X ......... Mr. Pascrell..... X ........ .........
Mr. Buchanan................... ........ X ......... Ms. Berkley...... X ........ .........
Mr. Smith...................... ........ X ......... Mr. Crowley...... X ........ .........
Mr. Schock..................... ........ X ......... ................. ........ ........ .........
Ms. Jenkins.................... ........ X ......... ................. ........ ........ .........
Mr. Paulsen.................... ........ X ......... ................. ........ ........ .........
Mr. Marchant................... ........ X ......... ................. ........ ........ .........
Mr. Berg....................... ........ X ......... ................. ........ ........ .........
Ms. Black...................... ........ X ......... ................. ........ ........ .........
Mr. Reed....................... ........ X ......... ................. ........ ........ .........
----------------------------------------------------------------------------------------------------------------

An amendment offered by Mr. Neal to strike section 5 of the
bill and insert various other tax provisions failed to pass by
a roll call vote of 15 yeas to 22 nays (with a quorum being
present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Camp....................... ........ X ......... Mr. Levin........ X ........ .........
Mr. Herger..................... ........ X ......... Mr. Rangel....... X ........ .........
Mr. Johnson.................... ........ X ......... Mr. Stark........ X ........ .........
Mr. Brady...................... ........ X ......... Mr. McDermott.... X ........ .........
Mr. Ryan....................... ........ X ......... Mr. Lewis........ X ........ .........
Mr. Nunes...................... ........ X ......... Mr. Neal......... X ........ .........
Mr. Tiberi..................... ........ X ......... Mr. Becerra...... X ........ .........
Mr. Davis...................... ........ X ......... Mr. Doggett...... X ........ .........
Mr. Reichert................... ........ X ......... Mr. Thompson..... X ........ .........
Mr. Boustany................... ........ X ......... Mr. Larson....... X ........ .........
Mr. Roskam..................... ........ X ......... Mr. Blumenauer... X ........ .........
Mr. Gerlach.................... ........ X ......... Mr. Kind......... X ........ .........
Mr. Price...................... ........ X ......... Mr. Pascrell..... X ........ .........
Mr. Buchanan................... ........ X ......... Ms. Berkley...... X ........ .........
Mr. Smith...................... ........ X ......... Mr. Crowley...... X ........ .........
Mr. Schock..................... ........ X ......... ................. ........ ........ .........
Ms. Jenkins.................... ........ X ......... ................. ........ ........ .........
Mr. Paulsen.................... ........ X ......... ................. ........ ........ .........
Mr. Marchant................... ........ X ......... ................. ........ ........ .........
Mr. Berg....................... ........ X ......... ................. ........ ........ .........
Ms. Black...................... ........ X ......... ................. ........ ........ .........
Mr. Reed....................... ........ X ......... ................. ........ ........ .........
----------------------------------------------------------------------------------------------------------------

IV. Budget Effects of the Bill

A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

In compliance with clause 3(d) 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. 3864, as reported.
The bill is estimated to have the following effects on
Federal budget receipts for fiscal years 2012-2022:

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. The
Committee states further that the bill involves no new or
increased tax expenditures.

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, February 7, 2012.
Hon. Dave Camp,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3864, the American
Energy and Infrastructure Jobs Financing Act of 2012.
If you wish further details on this estimate, we will be
pleased to provide them. The staff contacts are Kalyani
Parthasarathy and Sarah Puro.
Sincerely,
Douglas W. Elmendorf,
Director.
Enclosure.

H.R. 3864--American Energy and Infrastructure Jobs Financing Act of
2012

H.R. 3864 would extend through fiscal year 2018 the
existing taxes that are dedicated to the Highway Trust Fund,
and would extend through fiscal year 2016 the authority to
expend amounts credited to that fund. Most recently, the
Surface and Air Transportation Programs Extension Act of 2011
(Public Law 112-30), extended the highway taxes and spending
authority through March 31, 2012. In addition, H.R. 3864 would
transfer amounts from the general fund into the Mass Transit
Account of the Highway Trust Fund (which would be subsequently
renamed the Alternative Transportation Account), and revenues
previously credited to the Mass Transit Account would be
transferred to the Highway Account of the Highway Trust Fund.
Pursuant to rules in the Balanced Budget and Emergency
Deficit Control Act for constructing the baseline, certain
expiring provisions of law--such as those that govern excise
taxes credited to the Highway Trust Fund--are assumed to
continue beyond their scheduled expiration date for budget
projection purposes. H.R. 3864 would continue highway-related
taxes at levels that are consistent with those projected in
CBO's baseline over the 2012-2018 period (net revenues accruing
to the highway trust fund amount to $37 billion in 2013, and
rise to $41 billion in 2018). In addition, the transfer of
money from the general fund to the Highway Trust Fund and the
transfer within accounts of that fund would not affect the
total amount of revenue collected. As a result, CBO and the
staff of the Joint Committee on Taxation (JCT) estimate that
enacting the bill would not affect revenues. Further, the bill
would not affect direct spending, CBO estimates; therefore,
pay-as-you-go procedures do not apply.
Although H.R. 3864 would extend the authority to expend
amounts from the Highway Trust Fund, CBO expects that the
contract authority (a mandatory form of budget authority) for
programs funded through the Highway Trust Fund will continue to
be provided in multi-year authorizations for surface
transportation programs. Further, CBO expects that limitations
on the obligations of those amounts will continue to be
provided in future appropriation acts. As a result, CBO
estimates that enacting H.R. 3864 would not affect spending
subject to appropriation.
JCT has reviewed the tax provisions of H.R. 3864 and
determined that they contain no intergovernmental or private-
sector mandates as defined by the Unfunded Mandates Reform Act
(UMRA). CBO has reviewed the nontax provisions of H.R. 3864 and
determined that they also do not contain intergovernmental or
private-sector mandates as defined in UMRA and would impose no
costs on state, local, or tribal governments.
The CBO staff contacts for this estimate are Kalyani
Parthasarathy and Sarah Puro. The estimate was approved by
Frank Sammartino, Assistant Director for Tax Analysis, and
Theresa Gullo, 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 was as a result of the
Committee's review of the provisions of H.R. 3864 that the
Committee concluded that it is appropriate to report the bill
favorably to the House of Representatives with the
recommendation that the bill do pass.

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. INFORMATION RELATING TO UNFUNDED MANDATES

This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the reported bill does
not contain any Federal private sector mandates within the
meaning of Public Law No. 104-4, the Unfunded Mandates Reform
Act of 1995. The costs required to comply with each Federal
private sector mandate generally are no greater than the
aggregate estimated budget effects of the provision.
The Committee has determined that the revenue provisions of
the bill do not impose a Federal intergovernmental mandate on
State, local, or tribal governments.

D. APPLICABILITY OF HOUSE RULE XXI 5(B)

Clause 5(b) of rule XXI 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.

E. TAX COMPLEXITY ANALYSIS

Section 4022(b) of the Internal Revenue Service Reform and
Restructuring 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.
Pursuant to clause 3(h)(1) of rule XIII of the Rules of the
House of Representatives, 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 amend the Code and that
have ``widespread applicability'' to individuals or small
businesses within the meaning of that section.

F. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF
BENEFITS

With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill and states that the provisions of
the bill as reported contain no congressional earmarks, limited
tax benefits, or limited tariff benefits within the meaning of
that rule.

VI. 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) * * *

* * * * * * *

(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 [March
31, 2012] September 30, 2018).

* * * * * * *

(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
[April 1, 2012] October 1, 2018--
(i) * * *

* * * * * * *

(B) after [March 31, 2012] September 30,
2018--
(i) * * *

* * * * * * *

Subchapter C--Heavy Trucks and Trailers

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

(a) * * *

* * * * * * *

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 [April 1, 2012] October 1,
2018, 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) * * *

* * * * * * *

(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 [March 31, 2012] September
30, 2018.

* * * * * * *

(3) Leaking Underground Storage Tank Trust Fund
financing rate.--The Leaking Underground Storage Tank
Trust Fund financing rate under subsection (a)(2) shall
apply after September 30, 1997, and before [April 1,
2012] October 1, 2018.

* * * * * * *

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), (5), and (6) 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 [April 1, 2012] October 1, 2018. 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. In the case of taxes imposed by
subchapter C or D, paragraph (6) shall not apply. In the case
of the tax imposed by section 4191, paragraphs (3), (4), (5),
and

* * * * * * *

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, [2012] 2018.

SEC. 4482. DEFINITIONS.

(a) * * *

* * * * * * *

(4) Taxable period.--The term ``taxable period''
means [any year beginning before July 1, 2012, and the
period which begins on July 1, 2012, and ends at the
close of September 30, 2012.] each annual period
beginning on October 1 which begins before October 1,
2019.

* * * * * * *

[(d) Special Rule for Taxable Period in Which Termination
Date Occurs.--In the case of the taxable period which ends on
September 30, 2012, 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.]

* * * * * * *

(i) Termination of Exemptions.--Subsections (a) and (c) shall
not apply on and after [April 1, 2012] October 1, 2018.

* * * * * * *

Subtitle F--Procedure and Administration

* * * * * * *

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 [April 1,
2012] October 1, 2018, 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 [April 1, 2012] October 1,
2018, if claim for such credit or refund is filed with
the Secretary on or before [September 30, 2012]
September 30, 2018, based upon a request submitted to
the manufacturer, producer, or importer before [July 1,
2012] January 1, 2019, by the dealer who held the
article in respect of which the credit or refund is
claimed, and, on or before [September 30, 2012]
September 30, 2018, 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.

* * * * * * *

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 and Penalties.--
(1) Certain taxes.--There are hereby appropriated to
the Highway Trust Fund amounts equivalent to the taxes
received in the Treasury before [April 1, 2012] October
1, 2018, under the following provisions--
(A) * * *

* * * * * * *

(2) Liabilities incurred before [april 1, 2012]
october 1, 2018.--There are hereby appropriated to the
Highway Trust Fund amounts equivalent to the taxes
which are received in the Treasury after [March 31,
2012] September 30, 2018, and before [January 1, 2013]
July 1, 2019, and which are attributable to liability
for tax incurred before [April 1, 2012] October 1,
2018, under the provisions described in paragraph (1).
(3) Revenues from certain domestic energy leases.--
There are hereby appropriated to the Highway Trust Fund
amounts equivalent to the net increase in Federal
revenues from onshore and offshore domestic energy
leasing and production generated by reason of the
enactment of the Alaskan Energy for American Jobs Act,
the PIONEERS Act, and the Energy Security and
Transportation Jobs Act.

* * * * * * *

(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 [April 1, 2012] October 1, 2016, 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 [April 1, 2012] October
1, 2016, to meet those obligations of the United States
heretofore or hereafter incurred which are authorized
to be paid out of the Highway Trust Fund under the
[Surface Transportation Extension Act of 2011, Part II]
American Energy and Infrastructure Jobs Act of 2012 or
any other provision of law which was referred to in
this paragraph before the date of the enactment of such
Act (as such Act and provisions of law are in effect on
the date of the enactment of such Act).
(2) 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 [January 1, 2013] July
1, 2019, under section 6412(a). The amounts payable
from the Highway Trust Fund under the preceding
sentence shall be determined by taking into account
only the portion of the taxes which are deposited into
the Highway Trust Fund.
(3) Transfers from the trust fund for motorboat fuel
taxes.--
(A) Transfer to land and water conservation
fund.--
(i) In general.--The Secretary shall
pay from time to time from the Highway
Trust Fund into the land and water
conservation fund provided for in title
I of the Land and Water Conservation
Fund Act of 1965 amounts (as determined
by the Secretary) equivalent to the
motorboat fuel taxes received on or
after October 1, 2005, and before
[April 1, 2012] October 1, 2018.

* * * * * * *

(4) 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 and Boating Trust
Fund amounts (as determined by him) equivalent
to the small-engine fuel taxes received on or
after December 1, 1990, and before [April 1,
2012] October 1, 2018.

* * * * * * *

(e) Establishment of [Mass Transit Account] Alternative
Transportation Account.--
(1) Creation of account.--There is established in the
Highway Trust Fund a separate account to be known as
the ``[Mass Transit Account] Alternative Transportation
Account'' consisting of such amounts as may be
transferred or credited to the [Mass Transit Account]
Alternative Transportation Account as provided in this
section or section 9602(b).
[(2) Transfers to mass transit account.--The
Secretary of the Treasury shall transfer to the Mass
Transit Account the mass transit 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 March 31, 1983. For purposes of
the preceding sentence, the term ``mass transit
portion'' means, for any fuel with respect to which tax
was imposed under section 4041 or 4081 and otherwise
deposited into the Highway Trust Fund, the amount
determined at the rate of--
[(A) except as otherwise provided in this
sentence, 2.86 cents per gallon,
[(B) 1.43 cents per gallon in the case of any
partially exempt methanol or ethanol fuel (as
defined in section 4041(m)) none of the alcohol
in which consists of ethanol,
[(C) 1.86 cents per gallon in the case of
liquefied natural gas,
[(D) 2.13 cents per gallon in the case of
liquefied petroleum gas, and
[(E) 9.71 cents per MCF (determined at
standard temperature and pressure) in the case
of compressed natural gas.]
(2) Appropriation.--
(A) In general.--Out of money in the Treasury
not otherwise appropriated, there is hereby
appropriated $40,000,000,000 to the Alternative
Transportation Account. Any amount appropriated
under this paragraph shall remain available
without fiscal year limitation.
(B) Transfer to highway account of 2012
appropriated amounts based on fuels tax
receipts.--Amounts transferred on or before the
date of the enactment of this paragraph to the
Mass Transit Account in the Highway Trust Fund
for fiscal year 2012 are hereby transferred to
the Highway Account of the Highway Trust Fund
(as defined in paragraph (5)(B)).
(3) Expenditures from account.--Amounts in the [Mass
Transit Account] Alternative Transportation Account
shall be available, as provided by appropriation Acts,
for making capital or capital related expenditures
(including capital expenditures for new projects)
before [April 1, 2012] October 1, 2016, in accordance
with the [Surface Transportation Extension Act of 2011,
Part II] American Energy and Infrastructure Jobs Act of
2012 or any other provision of law which was referred
to in this paragraph before the date of the enactment
of such Act (as such Act and provisions of law are in
effect on the date of the enactment of such Act).
(4) Limitation.--Rules similar to the rules of
subsection (d) shall apply to the [Mass Transit
Account] Alternative Transportation Account.
(5) Portion of certain transfers to be made from
account.--
(A) In general.--Transfers under paragraphs
(2) and (3) of subsection (c) shall be borne by
the Highway Account and the [Mass Transit
Account] Alternative Transportation Account in
proportion to the respective revenues
transferred under this section to the Highway
Account (after the application of paragraph
(2)) and the [Mass Transit Account] Alternative
Transportation Account.
(B) Highway account.--For purposes of
subparagraph (A), the term ``Highway Account''
means the portion of the Highway Trust Fund
which is not the [Mass Transit Account]
Alternative Transportation Account.

* * * * * * *

SEC. 9504. SPORT FISH RESTORATION AND BOATING TRUST FUND.

(a) * * *
(b) Sport Fish Restoration and Boating Trust Fund.--
(1) * * *
(2) Expenditures from trust fund.--Amounts in the
Sport Fish Restoration and Boating Trust Fund shall be
available, as provided by appropriation Acts, for
making expenditures--
(A) to carry out the purposes of the Dingell-
Johnson Sport Fish Restoration Act (as in
effect on the date of the enactment of the
[Surface Transportation Extension Act of 2011,
Part II] American Energy and Infrastructure
Jobs Act of 2012),
(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 2011, Part II] American Energy
and Infrastructure Jobs Act of 2012), 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
2011, Part II] American Energy and
Infrastructure Jobs Act of 2012).
Amounts transferred to such account under section
9503(c)(4) may be used only for making expenditures
described in subparagraph (C) of this paragraph.

* * * * * * *

(d) Limitation on Transfers to 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 [April 1, 2012] October 1, 2016, in
accordance with the provisions of this section.

* * * * * * *

SEC. 9508. LEAKING UNDERGROUND STORAGE TANK TRUST FUND.

(a) * * *

* * * * * * *

(e) Limitation on Transfers to Leaking Underground Storage
Tank 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 [April 1, 2012] October 1, 2016, in
accordance with the provisions of this section.

* * * * * * *

----------

LAND AND WATER CONSERVATION FUND ACT OF 1965

* * * * * * *

TITLE II--MOTORBOAT FUEL TAX PROVISIONS

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 [April 1, 2013] October
1, 2019, 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 [April 1, 2012]
October 1, 2018; and
(2) 80 percent of the floor stocks refunds made
before [April 1, 2013] October 1, 2019, under section
6412 of such Code with respect to gasoline to be used
in motorboats.

VII. Dissenting Views

----------

DISSENTING VIEWS ON H.R. 3864, THE AMERICAN ENERGY AND INFRASTRUCTURE
JOBS FINANCING ACT OF 2012

We, the undersigned Members of the Ways and Means Committee
strongly oppose H.R. 3864, the ``American Energy and
Infrastructure Jobs Financing Act of 2012.'' The bill would
inflict extraordinary harm on the future of mass transit in our
country, and eliminate dedicated funding for our nation's mass
transit needs--a commitment that has been in place for 30
years.
Under current law, 2.86 cents per-gallon of the 18.3 cents
per-gallon gas tax is automatically directed to the Mass
Transit Account within the Highway Trust Fund. Funds in this
account are used for a variety of vital programs, including:

Lrecapitalization of existing mass transit
systems,
Lsupport for urban areas,
Lsupport for buses and bus facilities,
Lsupport for rural areas,
Lcoordinated mobility and access programs for
underserved populations, including the elderly and the
disabled, and
Lmajor capital improvements, including new
transit investments both small and large (i.e., light rail,
trolleys, etc.).

As of December 31, 2011, the Mass Transit Account had a
balance of approximately $7.3 billion. The Department of
Transportation estimates that over $8 billion is spent annually
on important transit and transit-support projects. The bill
would irresponsibly terminate the direct funding stream of
revenue for the Mass Transit Account, and instead, fund the
account through a one-time general fund transfer of $40
billion. This is despite the fact that Republicans have
previously referred to such transfers as ``bailouts.'' The bill
would also rename the account the ``Alternative Transportation
Account.''
During the Committee markup, Members of the Republican
Majority asserted that their proposed change to the funding of
the Mass Transit Account would in fact put the account in a
better position under current law over the next five years.
They claimed that their proposed onetime $40 billion general
fund transfer would exceed the $25 billion that the
Congressional Budget Office projects would flow to the account
from gas tax receipts over the next five years. The Republican
Majority conveniently ignores two results of their policy in
making this assertion. First, the Republican Majority ignores
the ten-year effect of their policy, which would leave mass
transit projects searching for certain funding after the
duration of this highway bill. In fact, CBO projections would
show that, under the current law funding system, the mass
transit account would, over ten years, in fact exceed the one-
time transfer of $40 billion. In the second five years, the
Republican bill would not provide a single dollar of mass
transit funding. Additionally, the Republican Majority relied
on the word of the Budget Committee Chairman to ensure that the
$40 billion hole in the General Fund from the one-time transfer
would in fact be made whole--hardly a reliable solution.
The bill also moves certain costly programs from the
Highway Account in the Highway Trust Fund to the new
Alternative Transportation Account, requiring programs
currently eligible for funding under the Mass Transit Account
to compete with a greater pool of expenditures while
simultaneously limiting the amount in the account. This appears
to be another step in the direction of woefully underfunding
mass transit programs. The Transportation authorization bill
has set a ceiling of $8.4 billion of expenditures on currently
eligible mass transit programs and $2.7 billion new programs
annually. Simple math will show that the one-time $40 billion
transfer from the General Fund to the new Alternative
Transportation Account will not support these expenditures.
Additionally, the Chairman's legislation would drain existing
FY 2012 receipts from the fund, further complicating long-term
mass transit programs. As a result of the changes made in the
bill, it is estimated that mass transit project funding could
be reduced by as much as 25 percent.
At the markup, Ways and Means Committee Democrats were
joined by two Ways and Means Committee Republicans in
bipartisan opposition to the Chairman's bill. The 17 Committee
Members voting against the Chairman's bill were supported by
over 600 organizations in their opposition, including groups as
varied as the U.S. Chamber of Congress, the Club for Growth,
and the American Association of Retired Persons. The Committee
had two opportunities at the markup to strike the provisions
dealing with eliminating the egregious termination of mass
transit funding; both times Members of the Republican Majority
voted against the proposed amendments. The Republican Majority
also voted against extensions of the critical job-creating
Build America Bonds program (which funded over $181 billion in
infrastructure improvements) and a bipartisan provision to
enhance the funding of water and sewage facility improvements.
Additionally, the Republican bill did not address other
transportation funding issues, including the Harbor Maintenance
Tax and Harbor Maintenance Trust Fund, both within the Ways and
Means Committee's jurisdiction.
At the markup, it was suggested by one Ways and Means
Committee Democratic Member that the Republican Majority ought
to take the opportunity to scrap this bill and start from
scratch on the Ways and Means Committee portion of the highway
bill--a new bill that would promote the Democratic priority of
job creation. Our committee is charged with raising the revenue
to adequately fund our nations needed investments in
infrastructure, and transportation is the key to job creation
nationwide. H.R. 3864 fundamentally fails in those goals,
discards the decades-long policy of raising revenue for the
Highway Trust Fund through transportation related levies, and
does not create meaningful jobs. Worse, it does so without
having been examined in a single hearing before the Ways &
Means Committee. We urge the Republican Majority to reexamine
options with respect to that suggestion and make necessary
changes to the underlying bill to ensure that mass transit
priorities are not jeopardized.
Sander Levin.
Charles B. Rangel.
Fortney Pete Stark.
Jim McDermott.
John B. Lewis.
Richard Neal.
Xavier Becerra.
Lloyd Doggett.
Mike Thompson.
John B. Larson.
Earl Blumenauer.
Ron Kind.
Bill Pascrell, Jr.
Shelley Berkley.
Joe Crowley.