H.R. 3113House108th Congress (2003-2005)In Committee

Transportation Empowerment Act

Sponsored by Jeff FlakeRep. Jeff Flake (R-AZ)
Introduced September 17, 2003

Legislative Activity

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2 earlier actions
HouseCommittee Latest Action

Referred to the Subcommittee on Highways, Transit and Pipelines.

September 18, 2003

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HouseIntro Referral

Introduced in House

September 17, 2003

HouseIntro Referral

Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

September 17, 2003

HouseCommittee

Referred to the Subcommittee on Highways, Transit and Pipelines.

September 18, 2003

Floor Debate

24 members

What members said about H.R. 3113 on the floor

9 Republicans15 Democrats
Deborah Pryce
Rep. Deborah PryceR-OH-15 · Feb 13, 2003

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 69 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Fortney Pete Stark
Rep. Fortney Pete StarkD-CA-13 · Feb 13, 2003

Mr. Chairman, I rise in strong opposition to this so- called Personal Responsibility, Work and Family Promotion Act. It is sort of an anti-Christian, egalitarian, rich-folks welfare bill. They are…

Louise McIntosh Slaughter
Rep. Louise McIntosh SlaughterD-NY-28 · Feb 13, 2003

Mr. Speaker, I thank the gentlewoman from Ohio for yielding me the customary 30 minutes, and I yield myself such time as I may consume. (Ms. SLAUGHTER asked and was given permission to revise and…

John A. Boehner
Rep. John A. BoehnerR-OH-8 · Feb 13, 2003

Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, the 1996 welfare reform law that we are reauthorizing today has been an unprecedented success, one of the most important pieces…

Ron Paul
Rep. Ron PaulR-TX-14 · Feb 13, 2003

Mr. Chairman, no one can deny that welfare programs have undermined America's moral fabric and constitutional system. Therefore, all those concerned with restoring liberty and protecting civil…

Show 8 more
W. J. (Billy) Tauzin
Rep. W. J. (Billy) TauzinR-LA-3 · Feb 13, 2003

Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I rise today in strong support of H.R. 4, the Personal Responsibility, Work and Family Promotion Act of 2003. This bill does a…

Jim McDermott
Rep. Jim McDermottD-WA-7 · Feb 13, 2003

Mr. Speaker, I thank the gentlewoman for yielding me time. Mr. Speaker, I am not going to talk about the bill. I am going to talk about the process, because that is what is really wrong with what…

Charles W. Stenholm
Rep. Charles W. StenholmD-TX-17 · Feb 13, 2003

Mr. Chairman, I rise in opposition to H.R. 4, and I do so with extreme disappointment today. As one that worked awfully hard in 1996 with both sides of the aisle in coming up with a welfare reform…

Wally Herger
Rep. Wally HergerR-CA-2 · Feb 13, 2003

Mr. Chairman, I yield myself such time as I may consume. This important legislation before us today, H.R. 4, the Personal Responsibility Work and Family Promotion Act of 2003, builds on the many…

Michael N. Castle
Rep. Michael N. CastleR-DE · Feb 13, 2003

I thank the gentleman for yielding me this time. I have a statement which I will submit, Mr. Chairman, for the record. I would just like to say that I am in very strong support of this legislation.…

David Dreier
Rep. David DreierR-CA-26 · Feb 13, 2003

Mr. Speaker, I rise in strong support of this rule. Before I begin, I cannot help but think of one of Thomas Jefferson's great lines, the author of our Declaration of Independence. I have got to sort…

James P. McGovern
Rep. James P. McGovernD-MA-3 · Feb 13, 2003

Mr. Speaker, I thank the gentlewoman for yielding me this time. Mr. Speaker, this Congress is starting off on the wrong foot. Welfare reauthorization reform is an important issue. It affects the…

Ron Kind
Rep. Ron KindD-WI-3 · Feb 13, 2003

Mr. Chairman, I rise today in support of the Democratic substitute to H.R. 4, which reauthorizes welfare reform. H.R. 4 is a step in the wrong direction. It replaces State flexibility with unfunded…

Show 11 more
Kendrick B. Meek
Rep. Kendrick B. MeekD-FL-17 · Feb 13, 2003

Mr. Chairman, I ask unanimous consent to revise and extend my remarks. I rise today in opposition to H.R. 4 and in support of the Cardin- Kind-Woolsey substitute amendment. In its current state, this…

Fred Upton
Rep. Fred UptonR-MI-6 · Feb 13, 2003

Mr. Chairman, I rise in strong support of H.R. 4. Mr. Chairman, welfare reform in the past did not work. We did not have it. It was welfare under the old system. We did not have reform. We passed…

Barbara Lee
Rep. Barbara LeeD-CA-9 · Feb 13, 2003

Mr. Chairman, I thank the gentleman from Ohio (Mr. Kucinich) for his leadership and for his sponsorship and cosponsorship of this amendment. First, Mr. Chairman, let me just say today we are offering…

Sander M. Levin
Rep. Sander M. LevinD-MI-12 · Feb 13, 2003

Mr. Speaker, I want to, though this is the debate on the rule, emphasize the difference here. It is too bad no effort was made in subcommittee or full committee this time around to try to forge a…

Dennis J. Kucinich
Rep. Dennis J. KucinichD-OH-10 · Feb 13, 2003

Mr. Chairman, I offer an amendment in the nature of a substitute. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, today I am here to offer an amendment in the form of a…

Mike Thompson
Rep. Mike ThompsonD-CA-1 · Feb 13, 2003

Mr. Chairman, I thank the gentleman from California for yielding the time, and for her great work on the effort to make this bill a better bill. Mr. Chairman, since the implementation of TANF,…

Tom Udall
Rep. Tom UdallD-NM-3 · Feb 13, 2003

Mr. Chairman, today we are considering critically important legislation to reauthorize the Temporary Assistance for Needy Families, TANF, block grant program for another five years. This is an…

Lynn C. Woolsey
Rep. Lynn C. WoolseyD-CA-6 · Feb 13, 2003

Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, as a Member of Congress who has actually been on welfare, let me tell Members, I know the pitfalls of H.R. 4. I know the…

Lee Terry
Rep. Lee TerryR-NE-2 · Feb 13, 2003

Mr. Chairman, I rise in strong support of H.R. 4, the Personal Responsibility, Work, and Family Promotion Act of 2003. The welfare reform law of 1996 is a resounding success. The welfare rolls have…

John D. Dingell
Rep. John D. DingellD-MI-15 · Feb 13, 2003

Mr. Chairman, today, we are debating the re- authorization of the welfare program. It is a repeat of the debate we had last Congress, when Republican ideology prevented a common-sense…

Sherrod Brown
Rep. Sherrod BrownD-OH-13 · Feb 13, 2003

Mr. Chairman, I yield myself 2\3/4\ minutes. Mr. Chairman, we should pass a welfare reform bill that is realistic about what people need to transition from welfare to good, paying, lasting jobs. It…

Bill Text

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Introduced in HouseIssued September 17, 2003
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3113 Introduced in House (IH)]

108th CONGRESS
1st Session
H. R. 3113

To empower States with authority for most taxing and spending for
highway programs and mass transit programs, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

September 17, 2003

Mr. Flake introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure, and in addition to the
Committee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To empower States with authority for most taxing and spending for
highway programs and mass transit programs, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Transportation Empowerment Act''.

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) today, surface transportation problems are increasingly
local and regional;
(4) each State, not a central bureaucracy, can better
fulfill the responsibility of providing an efficient
transportation network for the residents of the State;
(5) each State has the means to build and operate a network
of transportation systems, including highways, that best serves
the needs of the State;
(6) each State is best capable of determining the needs of
the State and acting on those needs;
(7) the Federal role in highway transportation has, over
time, usurped the role of the States by taxing 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;
(8) the Federal Government has used the Federal gasoline
tax revenues to force all States to take actions that are not
necessarily appropriate for individual States;
(9) the Federal distribution, review, and enforcement
process wastes billions of dollars on unproductive activities;
(10) the Federal distribution is inequitable and biased
against certain regions;
(11) 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
(12) 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 safety
research and development; 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. CONTINUATION OF FUNDING FOR ESSENTIAL 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, $5,600,000,000 for fiscal
year 2004, $5,700,000,000 for fiscal year 2005,
$5,800,000,000 for fiscal year 2006, $5,900,000,000 for
fiscal year 2007, $6,000,000,000 for fiscal year 2008,
and $6,100,000,000 for fiscal year 2009.
(B) Interstate and indian reservation bridge
program.--For the Interstate and Indian reservation
bridge program under section 144 of that title
$1,500,000,000 for fiscal year 2004, $1,600,000,000 for
fiscal year 2005, $1,700,000,000 for fiscal year 2006,
$1,800,000,000 for fiscal year 2007, $1,900,000,000 for
fiscal year 2008, and $2,000,000,000 for fiscal year
2009.
(C) Federal lands highways program.--
(i) Indian reservation roads.--For Indian
reservation roads under section 204 of that
title $300,000,000 for each of fiscal years
2004 through 2009.
(ii) Public lands highways.--For public
lands highways under section 204 of that title
$275,000,000 for each of fiscal years 2004
through 2009.
(iii) Parkways and park roads.--For
parkways and park roads under section 204 of
that title $200,000,000 for each of fiscal
years 2004 through 2009.
(D) Highway safety programs.--
(i) In general.--For highway safety
programs under section 402 of that title
$170,000,000 for each of fiscal years 2004
through 2009.
(ii) Highway safety research and
development.--For highway safety research and
development under section 403 of that title
$30,000,000 for each of fiscal years 2004
through 2009.
(E) Transportation research programs.--
(i) Surface transportation research.--For
cooperative agreements with nonprofit research
organizations to carry out research under
section 502 of that title $150,000,000 for each
of fiscal years 2004 through 2009.
(ii) ITS research and development.--For
carrying out section 5207 of the Transportation
Equity Act for the 21st Century (23 U.S.C. 502
note; 112 Stat. 457) $220,000,000 for each of
fiscal years 2004 through 2009, of which--
(I) $110,000,000 for each fiscal
year shall be made available for
research; and
(II) $110,000,000 for each fiscal
year shall be made available for
development and operational tests.
(iii) University transportation research.--
For carrying out section 5505 of title 49,
United States Code, $20,000,000 for each of
fiscal years 2004 through 2009.
(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 2004 through 2009, 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 listed for the State in
clause (ii); or
``(II) a share determined under
subparagraph (B).
``(ii) The percentage referred to in clause (i)(I)
is as follows:

``States:                                                   Percentage:
Alabama................................................ 2.0269
Alaska................................................. 1.1915
Arizona................................................ 1.5581
Arkansas............................................... 1.3214
California............................................. 9.1962
Colorado............................................... 1.1673
Connecticut............................................ 1.5186
Delaware............................................... 0.4424
District of Columbia................................... 0.3956
Florida................................................ 4.6176
Georgia................................................ 3.5104
Hawaii................................................. 0.5177
Idaho.................................................. 0.7718
Illinois............................................... 3.3819
Indiana................................................ 2.3588
Iowa................................................... 1.2020
Kansas................................................. 1.1717
Kentucky............................................... 1.7365
Louisiana.............................................. 1.5900
Maine.................................................. 0.5263
Maryland............................................... 1.5087
Massachusetts.......................................... 1.8638
Michigan............................................... 3.1535
Minnesota.............................................. 1.4993
Mississippi............................................ 1.2186
Missouri............................................... 2.3615
Montana................................................ 0.9929
Nebraska............................................... 0.7768
Nevada................................................. 0.7248
New Hampshire.......................................... 0.5163
New Jersey............................................. 2.5816
New Mexico............................................. 0.9884
New York............................................... 5.1628
North Carolina......................................... 2.8298
North Dakota........................................... 0.6553
Ohio................................................... 3.4257
Oklahoma............................................... 1.5419
Oregon................................................. 1.2183
Pennsylvania........................................... 4.9887
Puerto Rico............................................ 0.5000
Rhode Island........................................... 0.5958
South Carolina......................................... 1.5910
South Dakota........................................... 0.7149
Tennessee.............................................. 2.2646
Texas.................................................. 7.2131
Utah................................................... 0.7831
Vermont................................................ 0.4573
Virginia............................................... 2.5627
Washington............................................. 1.7875
West Virginia.......................................... 1.1319
Wisconsin.............................................. 1.9916
Wyoming................................................ 0.6951.
``(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).
``(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 (l), by
inserting ``on the Federal-aid system or described in
subsection (c)(3)'' after ``any bridge'';
(D) in subsection (m)(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 (n), by
inserting ``for each of fiscal years 2004 through
2009,'' 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) Motor carrier safety grants.--Section 31104(a) of title
49, United States Code, is amended by adding at the end the
following:
``(6) Not more than $110,000,000 for each of fiscal years
2004 through 2009.''.
(b) Expenditures From Highway Trust Fund.--
(1) Expenditures for essential programs.--Section 9503(c)
of the Internal Revenue Code of 1986 (relating to expenditures
from Highway Trust Fund) is amended--
(A) in paragraph (1), by striking ``October 1,
2003'' each place it appears and inserting ``October 1,
2009'';
(B) in paragraphs (2)(A)(i)(III), (2)(A)(ii),
(4)(A)(i), and (5)(A), by striking ``October 1, 2005''
each place it appears and inserting ``October 1,
2009'';
(C) in paragraph (1)--
(i) in subparagraph (D), by striking ``or''
at the end;
(ii) in subparagraph (E), by striking the
period and inserting ``, or'';
(iii) by inserting after subparagraph (E)
the following:
``(F) authorized to be paid out of the Highway
Trust Fund under the Transportation Empowerment Act.'';
and
(iv) by striking the last sentence and
inserting the following new flush sentence:
``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 enactment of the Transportation
Empowerment Act.''; and
(D) in paragraphs (2)(A)(i) and (3), by striking
``July 1, 2006'' each place it appears and inserting
``July 1, 2009''.
(2) Amounts available for essential program expenditures.--
Section 9503 of such Code (relating to the Highway Trust Fund)
is amended by adding at the end the following:
``(g) Essential Programs Financing Rate.--For purposes of this
section--
``(1) In general.--Except as provided in paragraph (2), in
the case of gasoline, special motor fuels, kerosene, and diesel
fuel, the essential programs financing rate is--
``(A) after September 30, 2003, and before October
1, 2004, so much of the rate of the taxes described in
subparagraphs (A) and (D) of subsection (b)(1)
transferred to the Highway Trust Fund as does not
exceed 16.3 cents per gallon,
``(B) after September 30, 2004, and before October
1, 2005, so much of the rate of such taxes as does not
exceed 11.3 cents per gallon,
``(C) after September 30, 2005, and before October
1, 2006, so much of the rate of such taxes as does not
exceed 8.3 cents per gallon,
``(D) after September 30, 2006, and before October
1, 2007, so much of the rate of such taxes as does not
exceed 7.3 cents per gallon, and
``(E) after September 30, 2007, the rate of such
taxes.
``(2) Application of rate.--In the case of fuels used as
described in paragraph (4)(D) and (5)(B) of subsection (c), the
essential programs financing rate is zero.''.
(c) Termination of Transfers to Mass Transit Account.--
(1) In general.--Section 9503(e)(2) of the Internal Revenue
Code of 1986 (relating to Mass Transit Account) is amended by
striking ``2 cents'' and inserting ``2 cents (zero, after
September 30, 2003)''.
(2) Authorization to expend remaining balances in
account.--Section 9503(e)(3) of such Code is amended by
striking ``before October 1, 1997''.
(d) Effective Date.--The amendments made by this section take
effect on October 1, 2003.

SEC. 4. INFRASTRUCTURE SPECIAL ASSISTANCE FUND.

(a) Balance of Essential Programs Financing Rate Deposited in
Fund.--Section 9503 of the Internal Revenue Code of 1986 (as amended by
section 3(b)(2)) 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
essential 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, 4061, 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 (iv), during fiscal years 2004 through
2007, $1,000,000,000 in the Infrastructure
Special Assistance Fund shall be available to
States for transportation-related program
expenditures.
``(ii) State share.--
``(I) In general.--Except as
provided in clause (v), each State is
entitled to a share of the amount
specified in clause (i) upon enactment
of legislation providing 1 of the 2
funding mechanisms described in clause
(iii).
``(II) Determination of state
share.--For purposes of subclause (I),
each State's share shall be determined
in the following manner:
``(aa) 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 item (bb).
``(bb) Multiply the
percentage determined under
item (aa), 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 item (aa).
``(iii) Legislative funding mechanisms.--A
funding mechanism is described in this clause
as follows:
``(I) A funding mechanism which
results in revenues for transportation-
related projects in the State for
fiscal year 2008 and each succeeding
fiscal year which are equal to the
excess of--
``(aa) the mean annual
average of distributions from
the Highway Trust Fund to the
State for fiscal years 1998
through 2003; over
``(bb) the distributions
from the Highway Trust Fund to
the State for such fiscal year
attributable to the essential
programs financing rate for
such year.
``(II) A funding mechanism which
results in an increase in the State
rate of tax on motor fuels equal to the decrease in the rate of tax on
such fuels under section 4081 for fiscal year 2008 and any succeeding
fiscal year.
``(iv) Distribution of remaining amount.--
If after September 30, 2007, a portion of the
amount specified in clause (i) remains, the
Secretary, in consultation with the Secretary
of Transportation, shall, on October 1, 2007,
apportion the portion among the States which
received a share of such amount under clause
(ii) and which are not described in clause (v)
using the percentages determined under clause
(ii)(II)(aa) for such States.
``(v) Enforcement of funding mechanism
requirement.--If a State, which enacted
legislation providing for a funding mechanism
described in clause (iii), terminates such
mechanism before fiscal year 2007, the State's
share determined under clauses (ii) and (iv)
shall be deducted from any amount the State
would otherwise receive from the Highway Trust
Fund for fiscal year 2007.
``(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)(II)(aa) 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, 2003.

SEC. 5. 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 2004, 2005, 2006, and 2007, 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
equivalent to the taxes attributable to
the excess of--
``(aa) the Highway Trust
Fund financing rate for such
year, over
``(bb) the essential
programs financing rate for
such year, over
``(II) the amounts so appropriated
which are equivalent to the taxes
described in paragraphs (4)(D) and
(5)(B), 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, 2003.

SEC. 6. FEDERAL-AID FACILITY PRIVATIZATION.

(a) Definitions.--In this section--
(1) Executive agency.--The term ``Executive agency'' has
the meaning provided in section 105 of title 5, United States
Code.
(2) Privatization.--The term ``privatization'' means the
disposition or transfer of a transportation infrastructure
asset, whether by sale, lease, or similar arrangement, from a
Federal, State, or local government to a private party.
(3) State or local government.--The term ``State or local
government'' means the government of--
(A) any State;
(B) the District of Columbia;
(C) any commonwealth, territory, or possession of
the United States;
(D) any county, municipality, city, town, township,
local public authority, school district, special
district, intrastate district, regional or interstate government
entity, council of governments, or agency or instrumentality of a local
government; or
(E) any federally recognized Indian tribe.
(4) Transportation infrastructure asset.--
(A) In general.--The term ``transportation
infrastructure asset'' means any surface-
transportation-related asset financed in whole or in
part by the Federal Government, including a road,
tunnel, bridge, or mass-transit-related or rail-related
asset.
(B) Exclusion.--The term does not include any
transportation-related asset on the Interstate System
(as defined in section 101 of title 23, United States
Code).
(b) Privatization Initiatives by State and Local Governments.--The
head of each Executive agency shall--
(1) assist State and local governments in efforts to
privatize the transportation infrastructure assets of the State
and local governments; and
(2) subject to subsection (a), approve requests from State
and local governments to privatize transportation
infrastructure assets and waive or modify any condition
relating to the original Federal program that funded the asset.
(c) Criteria.--The head of an Executive agency shall approve a
request described in subsection (b)(2) if--
(1) the State or local government demonstrates that a
market mechanism, legally enforceable agreement, or regulatory
mechanism will ensure that the transportation infrastructure
asset will continue to be used for the general objectives of
the original Federal program that funded the asset (which shall
not be considered to include every condition required for the
recipient of Federal funds to have obtained the original
Federal funds), so long as needed for those objectives; and
(2) the private party purchasing or leasing the
transportation infrastructure asset agrees to comply with all
applicable conditions of the original Federal program.
(d) Lack of Obligation to Repay Federal Funds.--A State or local
government shall have no obligation to repay to any agency of the
Federal Government any Federal funds received by the State or local
government in connection with a transportation infrastructure asset
that is privatized under this section.
(e) Use of Proceeds.--
(1) In general.--Subject to paragraph (2), a State or local
government may use proceeds from the privatization of a
transportation infrastructure asset to the extent permitted
under applicable conditions of the original Federal program.
(2) Recover of certain costs.--Notwithstanding any other
provision of law, the State or local government shall be
permitted to recover from the privatization of a transportation
infrastructure asset--
(A) the capital investment in the transportation
infrastructure asset made by the State or local
government;
(B) an amount equal to the unreimbursed operating
expenses in the transportation infrastructure asset
paid by the State or local government; and
(C) a reasonable rate of return on the investment
made under subparagraph (A) and expenses paid under
subparagraph (B).

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 (relating to rates of tax) is amended--
(A) in clause (i), by striking ``18.3 cents'' and
inserting ``2 cents''; and
(B) in clause (iii), by striking ``24.3 cents'' and
inserting ``2 cents''.
(2) Conforming amendment.--Section 6427(b)(2)(A) of such
Code is amended by striking ``7.4 cents'' and inserting ``1.9
cents''.
(b) Additional Conforming Amendments.--
(1) Section 4041(a)(1)(C)(iii)(I) of the Internal Revenue
Code of 1986 is amended by striking ``(4.3 cents per gallon
after September 30, 2005)'' and inserting ``(zero after
September 30, 2007)''.
(2) Section 4041(m)(1)(A) of such Code is amended--
(A) in clause (i), by striking ``2005'' and
inserting ``2007,''; and
(B) by striking clause (ii) and inserting the
following:
``(ii) zero after September 30, 2007,
and''.
(3) Section 4081(d)(1) of such Code is amended by striking
``4.3 cents per gallon after September 30, 2005'' and inserting
``zero after September 30, 2009''.
(4) Section 9503(b) of such Code is amended--
(A) in paragraphs (1) and (2), by striking
``October 1, 2005'' both places it appears and
inserting ``October 1, 2009'';
(B) in the heading of paragraph (2), by striking
``october 1, 2005'' and inserting ``october 1, 2009'';
(C) in paragraph (2), by striking ``after September
30, 2005, and before July 1, 2006'' and inserting
``after September 30, 2009, and before July 1, 2010'';
and
(D) in paragraph (4), by striking ``2005'' each
place it appears and inserting ``2007''.
(c) Floor Stock Refunds.--
(1) In general.--If--
(A) before October 1, 2007, 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, 2008; and
(B) in any case where liquid is held by a dealer
(other than the taxpayer) on October 1, 2007--
(i) the dealer submits a request for refund
or credit to the taxpayer before January 1,
2008; 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 Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel removed
after September 30, 2007.
(2) Additional conforming amendments.--The amendments made
by subsection (c) take effect on October 1, 2003.

SEC. 9. MASS TRANSPORTATION.

(a) In General.--Section 5338 of title 49, United States Code, is
amended to read as follows:
``Sec. 5338. Authorizations
``There are authorized to be appropriated to the Secretary to carry
out this chapter $2,500,000,000 for each of fiscal years 2004 through
2009, of which--
``(1) $2,000,000,000 for each fiscal year shall be
available to carry out sections 5307 and 5309;
``(2) $500,000,000 for each fiscal year shall be available
to carry out section 5311; and
``(3) the amount remaining after allocation under
paragraphs (1) and (2) for each fiscal year shall be used at
the discretion of the Secretary, including for capital
expenditure under this chapter.''.
(b) Effective Date.--The amendment made by this section takes
effect on October 1, 2003.
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