	Introduction

Surface transportation authorization acts authorize spending on federal highway and mass transit programs, surface transportation safety and research, and some rail programs. The most recent multi-year authorization for federal surface transportation programs, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU or SAFETEA; P.L. 109-59 ), expired on September 30, 2009. Since then these programs have operated on a series of extension acts and continuing resolutions. The highway trust fund (HTF) has provided most of the funding for surface transportation authorization bills since the fund was created in 1956, but the revenues from highway taxes (mostly on gasoline and diesel fuel) that support the HTF have declined in recent years due to the condition of the economy and improvements in vehicle fuel efficiency. Consequently, how to pass a multi-year bill without cutting infrastructure spending, raising the gas tax, or increasing the budget deficit is an underlying theme in the ongoing debate. On March 14, 2012, the Senate passed MAP-21, the Moving Ahead for Progress in the 21 st Century Act (MAP-21). 7 , the American Energy and Infrastructure Jobs Act ( H.Rept. Counting the already-appropriated FY2012, H.R. 7 is a five-year bill providing for a total authorization of roughly $260 billion. The bill, as reported, would link the usual surface transportation reauthorization components with provisions designed to increase oil and gas production, the revenues from which would be provided for highway infrastructure. 7 differ significantly in programmatic content and treatment of the HTF. Both, however, reduce the number of programs by roughly two-thirds and are free of program earmarks. On April 18, 2012, the House passed the Surface Transportation Extension Act of 2012, Part II ( H.R. 4348 ). The bill would extend surface transportation authorizations through the end of FY2012. This action enabled the House and Senate to send the measure to conference. All of the large highway programs are formula/apportioned programs. 4348 . Highways

				Senate Bill

MAP-21 is a two year reauthorization bill that basically funds the Federal-Aid Highway Program at the baseline level, adjusted for inflation. A total Federal-Aid Highway Program authorization of $39.5 billion for FY2012 and $40.5 billion for FY2013 (reflecting rescissions), and $400 million for research and education in each fiscal year (see Table 3 ). MAP-21 would reduce the number of programs by roughly two-thirds. The deposits include 
$3 billion from the Leaking Underground Storage Tank (LUST) trust fund balance would be transferred immediately, as well as $685 million of projected LUST fund revenues over the next 10 years; $697 million (over 10 years) from the transfer of the Gas Guzzler Tax from the general fund to the HTF; $743 million (over 10 years) consequent of the revocation of passports of tax delinquents; $841 million (over 10 years) consequent of allowing the Treasury to levy up to 100% of the payment to a Medicare provider to collect unpaid taxes; $4.52 billion from the transfer of future import tariffs on automotive products (FY2012-FY2016); $244 million (over 10 years) from a change in tax treatment of securities of a controlled corporation that are exchanged for assets as part of certain types of corporate reorganizations; $25 million (over 10 years) from the clarification that the Internal Revenue Service may levy a federal employee's Thrift Savings Account to satisfy tax liabilities; $363 million (FY2014-FY2022) from the extension for transfers of excess pension assets to retiree health accounts and allowing Section 420 of the U.S. tax code to apply to life insurance benefits; $9.467 billion (over 10 years) from pension funding stabilization, based on the revenue increases from the stabilization of the fluctuation of interest rates attributable to concomitant changes in Pension Guarantee Benefit Corporation premiums; $4.970 billion transfer from the Treasury general fund to the HTF ($2.183 billion in FY2012, $2.277 billion in FY2013, and $510 million in FY2014); $459 million (over 10 years) from allowing federal agencies to offer phased retirement; $244 million (over 10 years) from the reporting of the sale of life insurance policies to third parties; $99 million (over 10 years) from extending taxes on cigarette manufacturers to entities operating roll-your-own machines; $3.627 billion (over 10 years) from delaying the use of worldwide interest expense allocation by one year; $1.022 billion (over 10 years) from authorizing special measures against foreign jurisdictions and financial institutions that significantly impede enforcement of regulations against money laundering. The program would be funded at roughly $2 billion annually for FY2012 and FY2013. Equity Bonus Program (EB)

H.R. Both the House and Senate proposals include provisions intended to expedite project delivery by changing elements of the environmental review process. The Senate has agreed to an amendment that substitutes the language of MAP-21 for the House-passed language of H.R. The House Bill (H.R.
The federal government's highway, mass transit, and surface transportation safety programs are periodically authorized in a multi-year surface transportation reauthorization bill. The most recent reauthorization act, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU or SAFETEA; P.L. 109-59), expired at the end of FY2009. Since then, the surface transportation programs have been funded under extension acts.
The main obstacle to passage of a new multi-year bill during the past two years has been the disparity between projected spending and the much lower projections of the revenue flows to the highway trust fund (HTF). Taxes on gasoline and diesel provide 90% of the revenues for the HTF, which historically has funded the entire highway program and roughly 80% of the mass transit program. The rates on these taxes, which are on a cents-per-gallon basis, have not been increased since 1993. In addition, the condition of the economy and improvements in fuel economy have held down fuel consumption and as a result are adversely affecting HTF revenues. Consequently, authorizers face a dilemma: how to pass a bill without cutting infrastructure spending, raising the gas tax, or increasing the budget deficit.
The Senate has passed the Moving Ahead for Progress in the 21st Century Act (MAP-21, S. 1813, H.R. 4348, as amended), which would authorize surface transportation programs through September 30, 2013. MAP-21 proposes:
A total Federal-Aid Highway Program authorization of $39.5 billion for FY2012 and $40.5 billion for FY2013 (reflecting rescissions), and $400 million for research and education in each fiscal year. To reduce the total number of highway programs from roughly 90 to 30. The overall Federal-Aid Highway Program would be structured around five large "core" programs. The existing Equity Bonus Program would be discontinued. To accelerate project completion and speed up the environmental review process. $10.458 billion, annually, for FY2012-FY2013, for transit programs.
The House bill, the American Energy and Infrastructure Jobs Act (H.R. 7), links the usual surface transportation reauthorization components with provisions designed to increase oil and gas production, the revenues from which would be provided for highway infrastructure. H.R. 7, counting the already-appropriated FY2012, is a five-year bill providing for a total authorization of roughly $260 billion. The House and Senate bills differ significantly in programmatic content and treatment of the HTF. Both, however, would reduce the number of programs by roughly two-thirds, would accelerate project delivery, and are free of program earmarking.
H.R. 4348, the Surface Transportation Extension Act of 2012, Part II, as passed by the House, would extend surface transportation authorizations through the end of FY2012. The Senate, on April 24, 2012, agreed to an amendment to H.R. 4348, striking the House-passed bill text and substituting the language of MAP-21. This action enabled the House and Senate to send the measure to conference.