To return to the individual States maximum discretionary authority and fiscal responsibility for all elements of the national surface transportation systems that are not within the direct purview of the Federal Government.

SA 1756. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill S. 1813, to reauthorize Federal-aid highway and highway
safety construction programs, and for other purposes; which was ordered
to lie on the table; as follows:

Beginning on page 1, strike line 4 and all that follows
through the end of the bill and, at the appropriate place,
insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the
``Transportation Empowerment Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Limitation on expenditures.

[[Page S1153]]

Sec. 3. Funding for core highway programs.
Sec. 4. Infrastructure Special Assistance Fund.
Sec. 5. Return of excess tax receipts to States.
Sec. 6. Reduction in taxes on gasoline, diesel fuel, kerosene, and
special fuels funding Highway Trust Fund.
Sec. 7. Report to Congress.
Sec. 8. Effective date contingent on certification of deficit
neutrality.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings.--Congress finds that--
(1) the objective of the Federal highway program has been
to facilitate the construction of a modern freeway system
that promotes efficient interstate commerce by connecting all
States;
(2) that objective has been attained, and the Interstate
System connecting all States is near completion;
(3) each State has the responsibility of providing an
efficient transportation network for the residents of the
State;
(4) each State has the means to build and operate a network
of transportation systems, including highways, that best
serves the needs of the State;
(5) each State is best capable of determining the needs of
the State and acting on those needs;
(6) the Federal role in highway transportation has, over
time, usurped the role of the States by taxing motor fuels
used in the States and then distributing the proceeds to the
States based on the Federal Government's perceptions of what
is best for the States;
(7) the Federal Government has used the Federal motor fuels
tax revenues to force all States to take actions that are not
necessarily appropriate for individual States;
(8) the Federal distribution, review, and enforcement
process wastes billions of dollars on unproductive
activities;
(9) Federal mandates that apply uniformly to all 50 States,
regardless of the different circumstances of the States,
cause the States to waste billions of hard-earned tax dollars
on projects, programs, and activities that the States would
not otherwise undertake; and
(10) Congress has expressed a strong interest in reducing
the role of the Federal Government by allowing each State to
manage its own affairs.
(b) Purposes.--The purposes of this Act are--
(1) to return to the individual States maximum
discretionary authority and fiscal responsibility for all
elements of the national surface transportation systems that
are not within the direct purview of the Federal Government;
(2) to preserve Federal responsibility for the Dwight D.
Eisenhower National System of Interstate and Defense
Highways;
(3) to preserve the responsibility of the Department of
Transportation for--
(A) design, construction, and preservation of
transportation facilities on Federal public land;
(B) national programs of transportation research and
development and transportation safety; and
(C) emergency assistance to the States in response to
natural disasters;
(4) to eliminate to the maximum extent practicable Federal
obstacles to the ability of each State to apply innovative
solutions to the financing, design, construction, operation,
and preservation of Federal and State transportation
facilities; and
(5) with respect to transportation activities carried out
by States, local governments, and the private sector, to
encourage--
(A) competition among States, local governments, and the
private sector; and
(B) innovation, energy efficiency, private sector
participation, and productivity.

SEC. 3. LIMITATION ON EXPENDITURES.

Notwithstanding any other provision of law, if the
Secretary of Transportation determines for any fiscal year
that the aggregate amount required to carry out
transportation programs and projects under this Act and
amendments made by this Act exceeds the estimated aggregate
amount in the Highway Trust Fund available for those programs
and projects for the fiscal year, each amount made available
for such a program or project shall be reduced by the pro
rata percentage required to reduce the aggregate amount
required to carry out those programs and projects to an
amount equal to that available for those programs and
projects in the Highway Trust Fund for the fiscal year.

SEC. 4. FUNDING FOR CORE HIGHWAY PROGRAMS.

(a) In General.--
(1) Funding.--For the purpose of carrying out title 23,
United States Code, the following sums are authorized to be
appropriated out of the Highway Trust Fund:
(A) Interstate maintenance program.--For the Interstate
maintenance program under section 119 of title 23, United
States Code, $5,200,000,000 for fiscal year 2014,
$5,280,000,000 for fiscal year 2015, $5,360,000,000 for
fiscal year 2016, $5,440,000,000 for fiscal year 2017, and
$5,520,000,000 for fiscal year 2018.
(B) Emergency relief.--For emergency relief under section
125 of that title, $100,000,000 for each of fiscal years 2014
through 2018.
(C) Interstate bridge program.--For the Interstate bridge
program under section 144 of that title, $2,527,000,000 for
fiscal year 2014, $2,597,000,000 for fiscal year 2015,
$2,667,000,000 for fiscal year 2016, $2,737,000,000 for
fiscal year 2017, and $2,807,000,000 for fiscal year 2018.
(D) Federal lands highways program.--
(i) Indian reservation roads.--For Indian reservation roads
under section 204 of that title, $470,000,000 for fiscal year
2014, $510,000,000 for fiscal year 2015, $550,000,000 for
fiscal year 2016, $590,000,000 for fiscal year 2017, and
$630,000,000 for fiscal year 2018.
(ii) Public lands highways.--For public lands highways
under section 204 of that title, $300,000,000 for fiscal year
2014, $310,000,000 for fiscal year 2015, $320,000,000 for
fiscal year 2016, $330,000,000 for fiscal year 2017, and
$340,000,000 for fiscal year 2018.
(iii) Parkways and park roads.--For parkways and park roads
under section 204 of that title, $255,000,000 for fiscal year
2014, $270,000,000 for fiscal year 2015, $285,000,000 for
fiscal year 2016, $300,000,000 for fiscal year 2017, and
$315,000,000 for fiscal year 2018.
(iv) Refuge roads.--For refuge roads under section 204 of
that title, $32,000,000 for each of fiscal years 2014 through
2018.
(E) Highway safety programs.--
(i) In general.--For highway safety programs under section
402 of that title, $170,000,000 for each of fiscal years 2014
through 2018.
(ii) Highway safety research and development.--For highway
safety research and development under section 403 of that
title, $35,000,000 for each of fiscal years 2014 through
2018.
(F) Surface transportation research.--For cooperative
agreements with nonprofit research organizations to carry out
applied pavement research under section 502 of that title,
$200,000,000 for each of fiscal years 2014 through 2018.
(G) Administrative expenses.--For administrative expenses
incurred in carrying out the programs referred to in
subparagraphs (A) through (F), $92,890,000 for fiscal year
2014, $95,040,000 for fiscal year 2015, $97,190,000 for
fiscal year 2016, $99,340,000 for fiscal year 2017, and
$101,490,000 for fiscal year 2018.
(2) Transferability of funds.--Section 104 of title 23,
United States Code, is amended by striking subsection (g) and
inserting the following:
``(g) Transferability of Funds.--
``(1) In general.--To the extent that a State determines
that funds made available under this title to the State for a
purpose are in excess of the needs of the State for that
purpose, the State may transfer the excess funds to, and use
the excess funds for, any surface transportation (including
mass transit and rail) purpose in the State.
``(2) Enforcement.--If the Secretary determines that a
State has transferred funds under paragraph (1) to a purpose
that is not a surface transportation purpose as described in
paragraph (1), the amount of the improperly transferred funds
shall be deducted from any amount the State would otherwise
receive from the Highway Trust Fund for the fiscal year that
begins after the date of the determination.''.
(3) Federal-aid system.--Section 103(a) of title 23, United
States Code, is amended by striking ``systems are the
Interstate System and the National Highway System'' and
inserting ``system is the Interstate System''.
(4) Interstate maintenance program.--Section 104(b) of
title 23, United States Code, is amended by striking
paragraph (4) and inserting the following:
``(4) Interstate maintenance component.--For each of fiscal
years 2014 through 2018, for the Interstate maintenance
program under section 119, 1 percent to the Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern
Mariana Islands and the remaining 99 percent apportioned as
follows:
``(A)(i) For each State with an average population density
of 20 persons or fewer per square mile, and each State with a
population of 1,500,000 persons or fewer and with a land area
of 10,000 square miles or less, the greater of--
``(I) a percentage share of apportionments equal to the
percentage for the State described in clause (ii); or
``(II) a share determined under subparagraph (B).
``(ii) The percentage referred to in clause (i)(I) for a
State for a fiscal year shall be the percentage calculated
for the State for fiscal year 2009 under section 105(b) of
title 23, United States Code.
``(B) For each State not described in subparagraph (A), a
share of the apportionments remaining determined in
accordance with the following formula:
``(i) \1/9\ in the ratio that the total rural lane miles in
each State bears to the total rural lane miles in all States
with an average population density greater than 20 persons
per square mile and all States with a population of more than
1,500,000 persons and with a land area of more than 10,000
square miles.
``(ii) \1/9\ in the ratio that the total rural vehicle
miles traveled in each State bears to the total rural vehicle
miles traveled in all States described in clause (i).
``(iii) \2/9\ in the ratio that the total urban lane miles
in each State bears to the total urban lane miles in all
States described in clause (i).
``(iv) \2/9\ in the ratio that the total urban vehicle
miles traveled in each State bears to the total urban vehicle
miles traveled in all States described in clause (i).

[[Page S1154]]

``(v) \3/9\ in the ratio that the total diesel fuel used in
each State bears to the total diesel fuel used in all States
described in clause (i).''.
(5) Interstate bridge program.--Section 144 of title 23,
United States Code, is amended--
(A) in subsection (d)--
(i) by inserting ``on the Federal-aid system or described
in subsection (c)(3)'' after ``highway bridge'' each place it
appears; and
(ii) by inserting ``on the Federal-aid system or described
in subsection (c)(3)'' after ``highway bridges'' each place
it appears;
(B) in the second sentence of subsection (e)--
(i) in paragraph (1), by adding ``and'' at the end;
(ii) in paragraph (2), by striking the comma at the end and
inserting a period; and
(iii) by striking paragraphs (3) and (4);
(C) in the first sentence of subsection (k), by inserting
``on the Federal-aid system or described in subsection
(c)(3)'' after ``any bridge'';
(D) in subsection (l)(1), by inserting ``on the Federal-aid
system or described in subsection (c)(3)'' after ``construct
any bridge''; and
(E) in the first sentence of subsection (m), by inserting
``for each of fiscal years 1991 through 2013,'' after ``of
law,''.
(6) National defense highways.--Section 311 of title 23,
United States Code, is amended--
(A) in the first sentence, by striking ``under subsection
(a) of section 104 of this title'' and inserting ``to carry
out this section''; and
(B) by striking the second sentence.
(7) Federalization and defederalization of projects.--
Notwithstanding any other provision of law, beginning on
October 1, 2013--
(A) a highway construction or improvement project shall not
be considered to be a Federal highway construction or
improvement project unless and until a State expends Federal
funds for the construction portion of the project;
(B) a highway construction or improvement project shall not
be considered to be a Federal highway construction or
improvement project solely by reason of the expenditure of
Federal funds by a State before the construction phase of the
project to pay expenses relating to the project, including
for any environmental document or design work required for
the project; and
(C)(i) a State may, after having used Federal funds to pay
all or a portion of the costs of a highway construction or
improvement project, reimburse the Federal Government in an
amount equal to the amount of Federal funds so expended; and
(ii) after completion of a reimbursement described in
clause (i), a highway construction or improvement project
described in that clause shall no longer be considered to be
a Federal highway construction or improvement project.
(8) Reporting requirements.--No reporting requirement,
other than a reporting requirement in effect as of the date
of enactment of this Act, shall apply on or after October 1,
2013, to the use of Federal funds for highway projects by a
public-private partnership.
(b) Expenditures From Highway Trust Fund.--
(1) Expenditures for core programs.--Section 9503(c) of the
Internal Revenue Code of 1986 is amended--
(A) in paragraph (1), by striking ``Surface Transportation
Extension Act of 2011, Part II'' and inserting
``Transportation Empowerment Act'';
(B) in paragraph (1), by striking ``April 1, 2012'' and
inserting ``October 1, 2018'';
(C) in paragraphs (3)(A)(i), (4)(A), and (5), by striking
``April 1, 2012'' each place it appears and inserting
``October 1, 2020''; and
(D) in paragraph (2), by striking ``January 1, 2013'' and
inserting ``July 1, 2021''.
(2) Amounts available for core program expenditures.--
Section 9503 of such Code is amended by adding at the end the
following:
``(g) Core Programs Financing Rate.--For purposes of this
section--
``(1) In general.--Except as provided in paragraph (2)--
``(A) in the case of gasoline and special motor fuels the
tax rate of which is the rate specified in section
4081(a)(2)(A)(i), the core programs financing rate is--
``(i) after September 30, 2013, and before October 1, 2014,
18.3 cents per gallon,
``(ii) after September 30, 2014, and before October 1,
2015, 9.6 cents per gallon,
``(iii) after September 30, 2015, and before October 1,
2016, 6.4 cents per gallon,
``(iv) after September 30, 2016, and before October 1,
2017, 5.0 cents per gallon, and
``(v) after September 30, 2017, 3.7 cents per gallon, and
``(B) in the case of kerosene, diesel fuel, and special
motor fuels the tax rate of which is the rate specified in
section 4081(a)(2)(A)(iii), the core programs financing rate
is--
``(i) after September 30, 2013, and before October 1, 2014,
24.3 cents per gallon,
``(ii) after September 30, 2014, and before October 1,
2015, 12.7 cents per gallon,
``(iii) after September 30, 2015, and before October 1,
2016, 8.5 cents per gallon,
``(iv) after September 30, 2016, and before October 1,
2017, 6.6 cents per gallon, and
``(v) after September 30, 2017, 5.0 cents per gallon.
``(2) Application of rate.--In the case of fuels used as
described in paragraph (3)(C), (4)(B), and (5) of subsection
(c), the core programs financing rate is zero.''.
(c) Termination of Transfers to Mass Transit Account.--
Section 9503(e)(2) of the Internal Revenue Code of 1986 is
amended by inserting ``, and before October 1, 2013'' after
``March 31, 1983''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section take effect on October 1,
2013.
(2) Certain extensions.--The amendments made by subsection
(b)(1) shall take effect on April 1, 2012.

SEC. 5. INFRASTRUCTURE SPECIAL ASSISTANCE FUND.

(a) Balance of Core Programs Financing Rate Deposited in
Fund.--Section 9503 of the Internal Revenue Code of 1986 is
amended by adding at the end the following:
``(h) Establishment of Infrastructure Special Assistance
Fund.--
``(1) Creation of fund.--There is established in the
Highway Trust Fund a separate fund to be known as the
`Infrastructure Special Assistance Fund' consisting of such
amounts as may be transferred or credited to the
Infrastructure Special Assistance Fund as provided in this
subsection or section 9602(b).
``(2) Transfers to infrastructure special assistance
fund.--On the first day of each fiscal year, the Secretary,
in consultation with the Secretary of Transportation, shall
determine the excess (if any) of--
``(A) the sum of--
``(i) the amounts appropriated in such fiscal year to the
Highway Trust Fund under subsection (b) which are
attributable to the core programs financing rate for such
year, plus
``(ii) the amounts appropriated in such fiscal year to the
Highway Trust Fund under subsection (b) which are
attributable to taxes under sections 4051, 4071, and 4481 for
such year, over
``(B) the amount appropriated under subsection (c) for such
fiscal year,

and shall transfer such excess to the Infrastructure Special
Assistance Fund.
``(3) Expenditures from infrastructure special assistance
fund.--
``(A) Transitional assistance.--
``(i) In general.--Except as provided in clause (iii),
during fiscal years 2014 through 2017, $1,000,000,000 in the
Infrastructure Special Assistance Fund shall be available to
States for transportation-related program expenditures.
``(ii) State share.--Each State is entitled to a share of
the amount specified in clause (i) determined in the
following manner:

``(I) Multiply the percentage of the amounts appropriated
in the latest fiscal year for which such data are available
to the Highway Trust Fund under subsection (b) which is
attributable to taxes paid by highway users in the State, by
the amount specified in clause (i). If the result does not
exceed $15,000,000, the State's share equals $15,000,000. If
the result exceeds $15,000,000, the State's share is
determined under subclause (II).
``(II) Multiply the percentage determined under subclause
(I), by the amount specified in clause (i) reduced by an
amount equal to $15,000,000 times the number of States the
share of which is determined under subclause (I).

``(iii) Distribution of remaining amount.--If after
September 30, 2017, a portion of the amount specified in
clause (i) remains, the Secretary, in consultation with the
Secretary of Transportation, shall, on October 1, 2017,
apportion the portion among the States using the percentages
determined under clause (ii)(I) for such States.
``(B) Additional expenditures from fund.--
``(i) In general.--Amounts in the Infrastructure Special
Assistance Fund, in excess of the amount specified in
subparagraph (A)(i), shall be available, as provided by
appropriation Acts, to the States for any surface
transportation (including mass transit and rail) purpose in
such States, and the Secretary shall apportion such excess
amounts among all States using the percentages determined
under clause (ii)(I) for such States.
``(ii) Enforcement.--If the Secretary determines that a
State has used amounts under clause (i) for a purpose which
is not a surface transportation purpose as described in
clause (i), the improperly used amounts shall be deducted
from any amount the State would otherwise receive from the
Highway Trust Fund for the fiscal year which begins after the
date of the determination.''.
(b) Effective Date.--The amendment made by this section
takes effect on October 1, 2013.

SEC. 6. RETURN OF EXCESS TAX RECEIPTS TO STATES.

(a) In General.--Section 9503(c) of the Internal Revenue
Code of 1986 is amended by adding at the end the following:
``(6) Return of excess tax receipts to states for surface
transportation purposes.--
``(A) In general.--On the first day of each of fiscal years
2014, 2015, 2016, and 2017, the Secretary, in consultation
with the Secretary of Transportation, shall--
``(i) determine the excess (if any) of--

``(I) the amounts appropriated in such fiscal year to the
Highway Trust Fund under subsection (b) which are
attributable to the taxes described in paragraphs (1) and (2)
thereof (after the application of paragraph (4) thereof) over
the sum of--

[[Page S1155]]

``(II) the amounts so appropriated which are equivalent
to--

``(aa) such amounts attributable to the core programs
financing rate for such year, plus
``(bb) the taxes described in paragraphs (3)(C), (4)(B),
and (5) of subsection (c), and
``(ii) allocate the amount determined under clause (i)
among the States (as defined in section 101(a) of title 23,
United States Code) for surface transportation (including
mass transit and rail) purposes so that--

``(I) the percentage of that amount allocated to each
State, is equal to
``(II) the percentage of the amount determined under clause
(i)(I) paid into the Highway Trust Fund in the latest fiscal
year for which such data are available which is attributable
to highway users in the State.

``(B) Enforcement.--If the Secretary determines that a
State has used amounts under subparagraph (A) for a purpose
which is not a surface transportation purpose as described in
subparagraph (A), the improperly used amounts shall be
deducted from any amount the State would otherwise receive
from the Highway Trust Fund for the fiscal year which begins
after the date of the determination.''.
(b) Effective Date.--The amendment made by this section
takes effect on October 1, 2013.

SEC. 7. REDUCTION IN TAXES ON GASOLINE, DIESEL FUEL,
KEROSENE, AND SPECIAL FUELS FUNDING HIGHWAY
TRUST FUND.

(a) Reduction in Tax Rate.--
(1) In general.--Section 4081(a)(2)(A) of the Internal
Revenue Code of 1986 is amended--
(A) in clause (i), by striking ``18.3 cents'' and inserting
``3.7 cents''; and
(B) in clause (iii), by striking ``24.3 cents'' and
inserting ``5.0 cents''.
(2) Conforming amendments.--
(A) Section 4081(a)(2)(D) of such Code is amended--
(i) by striking ``19.7 cents'' and inserting ``4.1 cents'',
and
(ii) by striking ``24.3 cents'' and inserting ``5.0
cents''.
(B) Section 6427(b)(2)(A) of such Code is amended by
striking ``7.4 cents'' and inserting ``1.5 cents''.
(b) Additional Conforming Amendments.--
(1) Section 4041(a)(1)(C)(iii)(I) of the Internal Revenue
Code of 1986 is amended by striking ``7.3 cents per gallon
(4.3 cents per gallon after March 31, 2012)'' and inserting
``1.4 cents per gallon (zero after September 30, 2020)''.
(2) Section 4041(a)(2)(B)(ii) of such Code is amended by
striking ``24.3 cents'' and inserting ``5.0 cents''.
(3) Section 4041(a)(3)(A) of such Code is amended by
striking ``18.3 cents'' and inserting ``3.7 cents''.
(4) Section 4041(m)(1) of such Code is amended--
(A) in subparagraph (A), by striking ``April 1, 2012'' and
inserting ``October 1, 2020,'';
(B) in subparagraph (A)(i), by striking ``9.15 cents'' and
inserting ``1.8 cents'';
(C) in subparagraph (A)(ii), by striking ``11.3 cents'' and
inserting ``2.3 cents''; and
(D) by striking subparagraph (B) and inserting the
following:
``(B) zero after September 30, 2020.''.
(5) Section 4081(d)(1) of such Code is amended by striking
``4.3 cents per gallon after March 31, 2012'' and inserting
``zero after September 30, 2020''.
(6) Section 9503(b) of such Code is amended--
(A) in paragraphs (1) and (2), by striking ``April 1,
2012'' both places it appears and inserting ``October 1,
2020'';
(B) in the heading of paragraph (2), by striking ``April 1,
2012'' and inserting ``October 1, 2020'';
(C) in paragraph (2), by striking ``after March 31, 2012,
and before January 1, 2013'' and inserting ``after September
30, 2020, and before July 1, 2021''; and
(D) in paragraph (6)(B), by striking ``April 1, 2012'' and
inserting ``October 1, 2018''.
(c) Floor Stock Refunds.--
(1) In general.--If--
(A) before October 1, 2017, tax has been imposed under
section 4081 of the Internal Revenue Code of 1986 on any
liquid; and
(B) on such date such liquid is held by a dealer and has
not been used and is intended for sale;

there shall be credited or refunded (without interest) to the
person who paid such tax (in this subsection referred to as
the ``taxpayer'') an amount equal to the excess of the tax
paid by the taxpayer over the amount of such tax which would
be imposed on such liquid had the taxable event occurred on
such date.
(2) Time for filing claims.--No credit or refund shall be
allowed or made under this subsection unless--
(A) claim therefor is filed with the Secretary of the
Treasury before April 1, 2018; and
(B) in any case where liquid is held by a dealer (other
than the taxpayer) on October 1, 2017--
(i) the dealer submits a request for refund or credit to
the taxpayer before January 1, 2018; and
(ii) the taxpayer has repaid or agreed to repay the amount
so claimed to such dealer or has obtained the written consent
of such dealer to the allowance of the credit or the making
of the refund.
(3) Exception for fuel held in retail stocks.--No credit or
refund shall be allowed under this subsection with respect to
any liquid in retail stocks held at the place where intended
to be sold at retail.
(4) Definitions.--For purposes of this subsection, the
terms ``dealer'' and ``held by a dealer'' have the respective
meanings given to such terms by section 6412 of such Code;
except that the term ``dealer'' includes a producer.
(5) Certain rules to apply.--Rules similar to the rules of
subsections (b) and (c) of section 6412 and sections 6206 and
6675 of such Code shall apply for purposes of this
subsection.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel removed
after September 30, 2017.
(2) Certain conforming amendments.--The amendments made by
subsections (b)(1), (b)(4), (b)(5), and (b)(6) shall apply to
fuel removed after September 30, 2011.

SEC. 8. REPORT TO CONGRESS.

Not later than 180 days after the date of enactment of this
Act, after consultation with the appropriate committees of
Congress, the Secretary of Transportation shall submit a
report to Congress describing such technical and conforming
amendments to titles 23 and 49, United States Code, and such
technical and conforming amendments to other laws, as are
necessary to bring those titles and other laws into
conformity with the policy embodied in this Act and the
amendments made by this Act.

SEC. 9. EFFECTIVE DATE CONTINGENT ON CERTIFICATION OF DEFICIT
NEUTRALITY.

(a) Purpose.--The purpose of this section is to ensure
that--
(1) this Act will become effective only if the Director of
the Office of Management and Budget certifies that this Act
is deficit neutral;
(2) discretionary spending limits are reduced to capture
the savings realized in devolving transportation functions to
the State level pursuant to this Act; and
(3) the tax reduction made by this Act is not scored under
pay-as-you-go and does not inadvertently trigger a
sequestration.
(b) Effective Date Contingency.--Notwithstanding any other
provision of this Act, this Act and the amendments made by
this Act shall take effect only if--
(1) the Director of the Office of Management and Budget
(referred to in this section as the ``Director'') submits the
report as required in subsection (c); and
(2) the report contains a certification by the Director
that, based on the required estimates, the reduction in
discretionary outlays resulting from the reduction in
contract authority is at least as great as the reduction in
revenues for each fiscal year through fiscal year 2018.
(c) OMB Estimates and Report.--
(1) Requirements.--Not later than 5 calendar days after the
date of enactment of this Act, the Director shall--
(A) estimate the net change in revenues resulting from this
Act for each fiscal year through fiscal year 2018;
(B) estimate the net change in discretionary outlays
resulting from the reduction in contract authority under this
Act for each fiscal year through fiscal year 2018;
(C) determine, based on those estimates, whether the
reduction in discretionary outlays is at least as great as
the reduction in revenues for each fiscal year through fiscal
year 2018; and
(D) submit to Congress a report setting forth the estimates
and determination.
(2) Applicable assumptions and guidelines.--
(A) Revenue estimates.--The revenue estimates required
under paragraph (1)(A) shall be predicated on the same
economic and technical assumptions and scorekeeping
guidelines that would be used for estimates made pursuant to
section 252(d) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 902(d)).
(B) Outlay estimates.--The outlay estimates required under
paragraph (1)(B) shall be determined by comparing the level
of discretionary outlays resulting from this Act with the
corresponding level of discretionary outlays projected in the
baseline under section 257 of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 907).
(d) Conforming Adjustment to Discretionary Spending
Limits.--On compliance with the requirements specified in
subsection (b), the Director shall adjust the adjusted
discretionary spending limits for each fiscal year through
fiscal year 2013 under section 601(a)(2) of the Congressional
Budget Act of 1974 (2 U.S.C. 665(a)(2)) by the estimated
reductions in discretionary outlays under subsection
(c)(1)(B).
(e) Paygo Interaction.--On compliance with the requirements
specified in subsection (b), no changes in revenues estimated
to result from the enactment of this Act shall be counted for
the purposes of section 252(d) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 902(d)).

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