(A) he shall so advise the Secretary of Transportation, and (B) he shall further advise the Secretary of Transportation as to the amount of such excess.

(3) Adjustment of apportionments where unfunded authorizations exceed 2 years' receipts.

(A) Determination of percentage.—If, before any apportionment to the States is made, in the most recent estimate made by the Secretary of the Treasury there is an excess referred to in paragraph (2)(B), the Secretary of Transportation shall determine the percentage which

(i) the excess referred to in paragraph (2)(B), is of (ii) the amount authorized to be appropriated from the Trust Fund for the fiscal year for apportionment to the States.

If, but for this sentence, the most recent estimate would be one which was made on a date which will be more than 3 months before the date of the apportionment, the Secretary of the Treasury shall make a new estimate under paragraph (1) for the appropriate fiscal year.

(B) Adjustment of apportionments.-If the Secretary of Transportation determines a percentage under subparagraph (A) for purposes of any apportionment, notwithstanding any other provision of law, the Secretary of Transportation shall apportion to the States (in lieu of the amount which, but for the provisions of this subsection, would be so apportioned) the amount obtained by reducing the amount authorized to be so apportioned by such percentage.

(4) Apportionment of amounts previously withheld from apportionment.—If, after funds have been withheld from apportionment under paragraph (3)(B), the Secretary of the Treasury determines that the amount described in paragraph (1)(A) does not exceed the amount described in paragraph (1)(B) or that the excess described in paragraph (1)(B) is less than the amount previously determined, he shall so advise the Secretary of Transportation. The Secretary of Transportation shall apportion to the States such portion of the funds so withheld from apportionment as the Secretary of the Treasury has advised him may be so apportioned without causing the amount described in paragraph (1)(A) to exceed the amount described in paragraph (1)(B). Any funds apportioned pursuant to the preceding sentence shall remain available for the period for which they would be available if such apportionment took effect with the fiscal year in which they are apportioned pursuant to the preceding sentence.

(5) Definitions.-For purposes of this subsection

(A) Unfunded highway authorizations.-The term "unfunded highway authorizations" means, at any time, the excess (if any) of

(i) the total potential unpaid commitments at such time as a result of the apportionment to the States of the amounts authorized to be appropriated from the Highway Trust Fund, over

(ii) the amount available in the Highway Trust Fund at such time to defray such commitments (after all other unpaid commitments at such time which are payable from the Highway Trust Fund have been defrayed).

(B) Net highway receipts.-The term "net highway receipts" means, with respect to any period, the excess of—

(i) the receipts (including interest) of the Highway Trust Fund during such period, over

(ii) the amounts to be transferred during such period from such Fund under subsection (c) (other than paragraph (1) thereof).

(6) Reports. Any estimate under paragraph (1) and any determination under paragraph (2) shall be reported by the Secretary of the Treasury to the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, the Committees on the Budget of both Houses, the Committee on Public Works and Transportation of the House of Representatives, and the Committee on Environment and Public Works of the Senate.

(e) Establishment of Mass Transit Account.—

(1) Creation of account.-There is established in the Highway Trust Fund a separate account to be known as the "Mass Transit Account" consisting of such amounts as may be transferred or credited to the Mass Transit Account as provided in this subsection or section 9602(b).

(2) Transfers to Mass Transit Account.-The Secretary of the Treasury shall transfer to the Mass Transit Account one-ninth of the amounts appropriated to the Highway Trust Fund under subsection (b) which are attributable to taxes under sections 4041 and 4081 imposed after March 31, 1983.

(3) Expenditures from account.-Amounts in the Mass Transit Account shall be available, as provided by appropriation Acts, for making capital expenditures before October 1, 1988 (including capital expenditures for new projects) in accordance with section. 21(a)(2) of the Urban Mass Transportation Act of 1964.

(4) Limitation.-Rules similar to the rules of subsection (d) shall apply to the Mass Transit Account except that subsection (d)(1) shall be applied by substituting "12-month" for "24-month". (Added Pub. L. 97-424, Title V, § 531(a), Jan. 6, 1983, 96 Stat. 2187.)

FEDERAL-AID HIGHWAY ACT OF 1956

Public Law 627, 84th Cong., June 29, 1956, 70 Stat. 374

TITLE II-HIGHWAY REVENUE ACT OF 1956

Sec. 201. Short title for title II.

(a) Short Title

This title may be cited as the "Highway Revenue Act of 1956". (b) Amendment of Trust Fund

Whenever in this title an amendment is expressed in terms of an amendment to a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1954.

Sec. 209. Highway trust fund.

(a); (c)-(g). 1

(b) Declaration of Policy

It is hereby declared to be the policy of the Congress that if it hereafter appears—

(1) that the total receipts of the Trust Fund (exclusive of advances under subsection (d)) will be less than the total expenditures from such Fund (exclusive of repayments of such advances); or

(2) that the distribution of the tax burden among the various classes of persons using the Federal-aid highways, or otherwise deriving benefits from such highways, is not equitable, the Congress shall enact legislation in order to bring about a balance of total receipts and total expenditures, or such equitable distribution, as the case may be.

Sec. 210. Investigation and report to Congress.

(a) Purpose

The Purpose of this section is to make available to the Congress information on the basis of which it may determine what taxes should be imposed by the United States, and in what amounts, in order to assure, insofar as practicable, an equitable distribution of the tax burden among the various classes of persons using the Federal-aid highways or otherwise deriving benefits from such highways.

(b) Study and investigation

In order to carry out the purpose of this section, the Secretary of Commerce is hereby authorized and directed, in cooperation with other Federal officers and agencies (particularly the Interstate Commerce

1

1 Repealed by sec. 531(b), Public Law 97-424, Jan. 6, 1983, (96 Stat. 2191).

Commission) and with the State highway departments, to make a study and investigation of—

(1) the effects on design, construction, and maintenance of Federalaid highways of (A) the use of vehicles of different dimensions, weights, and other specifications, and (B) the frequency of occurrences of such vehicles in the traffic stream.

(2) the proportionate share of the design, construction, and maintenance costs of the Federal-aid highways attributable to each class of persons using such highways, such proportionate share to be based on the effects referred to in paragraph (1) and the benefits derived from the use of such highways, and

(3) any direct and indirect benefits accruing to any class which derives benefits from Federal-aid highways, in addition to benefits from actual use of such highways, which are attributable to public expenditures for such highways.

(c) Coordination with other studies

The Secretary of Commerce shall coordinate the study and investigation required by this section with

(1) the research and other activities authorized by section 10 of the Federal-aid Highway Act of 1954, and

(2) the tests referred to in section 108(k) of this Act.

(d) Reports on study and investigation

The Secretary of Commerce shall report to the Congress the results of the study and investigation required by this section. The final report shall be made as soon as possible, but in no event later than January 3, 1961. On or before March 1, 1957, March 1, 1958, March 1, 1959, and March 1, 1960, the Secretary of Commerce shall report to the Congress the progress that has been made in carrying out the study and investigation required by this section. Each such report shall be printed as a House document of the session of the Congress to which the report is made. 2

(e) Funds for study and investigation

There are hereby authorized to be appropriated out of the Highway Trust Fund such sums as may be necessary to enable the Secretary of Commerce to carry out the provisions of this section.

LAND AND WATER CONSERVATION FUND ACT OF 1965

Public Law 88-578, 88th Cong., Sept. 3, 1964, 78 Stat. 897

2 Amended by sec. 1 of Public Law 85-823, Aug. 28, 1959 (72 Stat. 983).

TITLE II-MOTORBOAT FUEL TAX PROVISIONS

(16 U.S.C., 4601-11)

TRANSFERS TO AND FROM LAND AND WATER CONSERVATION FUND

SEC. 201. (a). There shall be set aside in the land and water conservation fund in the Treasury of the United States provided for in title I of this Act the amounts specified in section 209(f)(5) of the Highway Revenue Act of 1956 (relating to special motor fuels and gasoline used in motorboats).

(b) There shall be paid from time to time from the land and water conservation fund into the general fund of the Treasury amounts estimated by the Secretary of the Treasury as equivalent to

(1) the amounts paid before July 1, 1989, under section 6421 of the Internal Revenue Code of 1954 (relating to amounts paid in respect of gasoline used for certain nonhighway purposes or by local transit systems) with respect to gasoline used after December 31, 1964, in motorboats, on the basis of claims filed for periods ending before October 1, 1988; and 3

(2) 80 percent of the floor stocks refunds made before July 1, 1989, under section 6412(a)(2) of such Code with respect to gasoline to be used in motorboats.4

Title 26. United States Code, "Internal Revenue Code"

Sec. 39. Certain uses of gasoline and special fuels

(a) General rule.-There shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the sum of the amounts payable to the taxpayer

(1) under section 6420 with respect to gasoline used during the taxable year on a farm for farming purposes (determined without regard to section 6420(g)),

(2) under section 6421 with respect to gasoline used during the taxable year (A) otherwise than as a fuel in a highway vehicle or (B) in vehicles while engaged in furnishing certain public passenger land transportation service (determined without regard to section 6421(i)), and

(3) under section 6427 with respect to fuels used for nontaxable purposes or resold during the taxable year (determined without regard to section 6427(i)).

(b) Exception.-Credit shall not be allowed under subsection (a) for any amount payable under section 6421 or 6427, if a claim for such

3 4 Amended by sec. 302 of Pub. L. 91-605, Dec. 31, 1970 (84 Stat. 1713); sec. 302 of Public Law 94-280, May 5, 1976 (90 Stat. 456); and sec. 503(b) of Public Law 95-599, Nov. 6, 1978 (92 Stat. 2757); sec. 531(c), Public Law 97-424, Jan. 6, 1983 (96 Stat. 2191).