[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3264 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 3264
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
October 26, 2011
Mr. Graves of Georgia (for himself, Mr. Westmoreland, Mr. Duncan of
South Carolina, Mr. Gowdy, Mr. Mulvaney, Mr. Broun of Georgia, Mr.
Lankford, Mr. Chaffetz, Mr. Wilson of South Carolina, Mr. Woodall, Mr.
Scott of South Carolina, and Mr. Gohmert) introduced the following
bill; which was referred to the Committee on Transportation and
Infrastructure, and in addition to the Committees on Ways and Means and
the Budget, 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) 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. 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 the fiscal year 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).
``(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'' and inserting
``Transportation Empowerment Act'';
(B) in paragraph (1), by striking ``October 1,
2011'' and inserting ``October 1, 2018'';
(C) in paragraphs (3)(A)(i), (4)(A), and (5), by
striking ``October 1, 2011'' each place it appears and
inserting ``October 1, 2020''; and
(D) in paragraph (2), by striking ``July 1, 2012''
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.--
(1) In general.--Section 9503(e)(2) of the Internal Revenue
Code of 1986 is amended by inserting ``, and before October 1,
2013'' after ``March 31, 1983''.
(2) Technical amendment.--Section 9503(e)(4) of such Code
is amended by striking ``24-month'' and inserting ``48-month''.
(d) Effective Date.--The amendments made by this section take
effect on October 1, 2013.
SEC. 4. 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. 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 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--
``(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. 6. 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 September 30, 2011)'' 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 ``2011'' and
inserting ``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 September 30, 2011'' and inserting
``zero after September 30, 2020''.
(6) Section 9503(b) of such Code is amended--
(A) in paragraphs (1) and (2), by striking
``October 1, 2011'' both places it appears and
inserting ``October 1, 2020'';
(B) in the heading of paragraph (2), by striking
``october 1, 2011'' and inserting ``october 1, 2020'';
(C) in paragraph (2), by striking ``after September
30, 2011, and before July 1, 2012'' and inserting
``after September 30, 2020, and before July 1, 2021'';
and
(D) in paragraph (6)(B), by striking ``October 1,
2011'' 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)(4) and (b)(6) shall apply to fuel removed after
September 30, 2011.
SEC. 7. 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. 8. 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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