[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1558 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1558

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
 holders of Community Open Space bonds the proceeds of which are used 
  for qualified environmental infrastructure projects, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 1999

 Mr. Baucus (for himself and Mr. Hatch) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a tax credit for 
 holders of Community Open Space bonds the proceeds of which are used 
  for qualified environmental infrastructure projects, 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 ``Community Open Space Bonds Act of 
1999''.

SEC. 2. CREDIT FOR HOLDERS OF COMMUNITY OPEN SPACE BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to credits against tax) is 
amended by adding at the end the following new subpart:

 ``Subpart H--Nonrefundable Credit for Holders of Community Open Space 
                                 Bonds

``Sec. 54. Credit to holders of Community Open Space bonds.

``SEC. 54. CREDIT TO HOLDERS OF COMMUNITY OPEN SPACE BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
Community Open Space bond on a credit allowance date which occurs 
during the taxable year, there shall be allowed as a credit against the 
tax imposed by this chapter for such taxable year an amount equal to 
the sum of the credits determined under subsection (b) with respect to 
credit allowance dates during such year on which the taxpayer holds 
such bonds.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a Community Open Space bond is an amount equal to the 
        product of--
                    ``(A) the credit rate determined by the Secretary 
                under paragraph (2), multiplied by
                    ``(B) the face amount of the bond held by the 
                taxpayer on the credit allowance date.
            ``(2) Determination.--During each calendar month, the 
        Secretary shall determine a credit rate which shall apply to 
        bonds issued during the following calendar month. The credit 
        rate for any 3-month period ending on a credit allowance date 
        is the percentage which the Secretary estimates will on average 
        equal the yield on corporate bonds outstanding on the day 
        before the date of such determination.
            ``(3) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than this subpart and subpart C).
            ``(2) Carryforward of unused credit.--If the credit 
        allowable under subsection (a) exceeds the limitation imposed 
        by paragraph (1) for such taxable year, such excess shall be 
        carried to each of the 5 taxable years following the unused 
        credit year and added to the credit allowable under subsection 
        (a) for each such taxable year, subject to the application of 
        paragraph (1) to such taxable year.
    ``(d) Community Open Space Bond.--For purposes of this section--
            ``(1) In general.--The term `Community Open Space bond' 
        means any bond issued as part of an issue if--
                    ``(A) 95 percent or more of the proceeds of such 
                issue are to be used for a qualified environmental 
                infrastructure project,
                    ``(B) the bond is issued by a State or local 
                government,
                    ``(C) the issuer--
                            ``(i) designates such bond for purposes of 
                        this section,
                            ``(ii) has a reasonable expectation that at 
                        least 10 percent of the proceeds of such issue 
                        will be spent for qualifying environmental 
                        infrastructure projects within 6 months of the 
                        date such bonds are issued,
                            ``(iii) certifies such proceeds will be 
                        used with due diligence for qualified 
                        environmental infrastructure projects, and
                            ``(iv) has a reasonable expectation that 
                        any property acquired or improved in connection 
                        with the proceeds of such issue, other than 
                        property improved in connection with a 
                        qualified environmental infrastructure project 
                        described in paragraph (2)(A)(v), shall 
                        continue to be dedicated to a qualified use for 
                        a period of not less than 15 years from the 
                        date of such issue,
                    ``(D) such bond satisfies public approval 
                requirements similar to the requirements of section 
                147(f)(2),
                    ``(E) except as provided in paragraph (4)(B), the 
                payment of the principal of such issue is secured by 
                taxes of general applicability imposed by a general 
                purpose governmental unit, and
                    ``(F) the term of each bond which is part of such 
                issue does not exceed 15 years.
            ``(2) Qualified environmental infrastructure project.--
                    ``(A) In general.--The term `qualified 
                environmental infrastructure project' means--
                            ``(i) acquisition of qualified property for 
                        use as open space, wetlands, public parks, or 
                        greenways, or to improve access to public lands 
                        by non-motorized means,
                            ``(ii) construction, rehabilitation, or 
                        repair of a visitor facility in connection with 
                        qualified property, including nature centers, 
                        campgrounds, and hiking or biking trails,
                            ``(iii) remediation of qualified property 
                        to enhance water quality by--
                                    ``(I) restoring natural hydrology 
                                or planting trees and streamside 
                                vegetation,
                                    ``(II) controlling erosion,
                                    ``(III) restoring wetlands, or
                                    ``(IV) treating conditions caused 
                                by the prior disposal of toxic or other 
                                waste,
                            ``(iv) acquisition of a qualified easement 
                        in order to maintain the use and character of 
                        the property in connection to which such 
                        easement is granted as open space, including an 
                        easement to allow access to public land by non-
                        motorized means, and
                            ``(v) environmental assessment and 
                        remediation of real property and public 
                        infrastructure owned by a governmental unit and 
                        located in an area where or on which there has 
                        been a release (or threat of release) or 
                        disposal of any hazardous substance (within the 
                        meaning of section 198), but not including any 
                        property described in subparagraph (D).
                    ``(B) Qualified property.--The term `qualified 
                property' means real property--
                            ``(i) which is, or is to be, owned by--
                                    ``(I) a governmental unit, or
                                    ``(II) an organization described in 
                                section 501(c)(3) and exempt from 
                                taxation under section 501(a) and which 
                                has as one if its purposes 
                                environmental preservation, and
                            ``(ii) which is reasonably anticipated to 
                        be available for use by members of the general 
                        public, unless such use would change the 
                        character of the property and be contrary to 
                        the qualified use of the property.
                    ``(C) Safe harbor for management contracts.--For 
                purposes of subparagraph (B), property shall not be 
                treated as qualified property if any rights or benefits 
                of such property inure to a private person other than 
                rights or benefits under a management contract or 
                similar type of operating agreement to which rules 
                similar to the rules applicable to tax-exempt bonds 
                apply.
                    ``(D) Cercla property.--Property is described in 
                this subparagraph if any portion of such property is 
                included, or proposed to be included, in the national 
                priorities list under section 105(a)(8)(B) of the 
                Comprehensive Environmental Response, Compensation, and 
                Liability Act of 1980 (42 U.S.C. 9605(a)(8)(B)).
                    ``(E) Limit on disposition of property.--Any 
                disposition of any interest in property acquired or 
                improved in connection with a qualified environmental 
                project described in this paragraph (except a project 
                described in subparagraph (A)(v)) shall contain an 
                option (recorded pursuant to applicable State or local 
                law) to purchase such property for an amount equal to 
                the original acquisition price of such property for any 
                interested organizations described in subparagraph 
                (B)(i)(II) if such organization purchases such property 
                subject to a restrictive covenant requiring a continued 
                qualified use of such property.
            ``(3) Temporary period exception.--
                    ``(A) In general.--A bond shall not be treated as 
                failing to meet the requirement of paragraph (1)(A) 
                solely by reason of the fact that the proceeds of the 
                issue of which such bond is a part--
                            ``(i) are invested for a reasonable 
                        temporary period (but not more than 36 months) 
                        until such proceeds are needed for the purpose 
                        for which such issue was issued, or
                            ``(ii) are used within 90 days of the close 
                        of such temporary period to redeem bonds which 
                        are a part of such issue.
                Any earnings on such proceeds during the period under 
                clause (i) shall be treated as proceeds of the issue 
                for purposes of applying paragraph (1)(A).
                    ``(B) Investment of proceeds.--For purposes of 
                subparagraph (A), proceeds shall only be invested in--
                            ``(i) Government securities, and
                            ``(ii) in the case of a sinking fund 
                        established by the issuer, State and local 
                        government securities issued by the Treasury.
            ``(4) Special rules for projects described in paragraph 
        (2)(A)(v).--
                    ``(A) Limit on use of proceeds for project.--This 
                subsection shall not apply to any bond issued as part 
                of an issue if an amount of the proceeds from such 
                issue are used for a qualified environmental 
                infrastructure project described in paragraph (2)(A)(v) 
                and involving public infrastructure in excess of an 
                amount equal to 5 percent of the total amount of such 
                proceeds used for all projects described in such 
                paragraph (2)(A)(v).
                    ``(B) Private use and repayment of proceeds.--In 
                the case of proceeds of an issue which are used for a 
                qualified environmental infrastructure project 
                described in paragraph (2)(A)(v), the issue of which 
                such bonds are a part shall not fail to meet the 
                requirements of this subsection solely because the 
                proceeds of a disposition of any interest in such 
                property are used to redeem such bonds as long as the 
                purchaser of such property makes an irrevocable 
                election not to claim any deduction with respect to 
                such project under section 198.
            ``(5) Recapture of credit amount.--
                    ``(A) In general.--If, during the taxable year, any 
                bond that is part of an issue under this section fails 
                to meet the requirements of this subsection--
                            ``(i) such bond shall not be treated as a 
                        Community Open Space bond for such taxable year 
                        and any succeeding taxable year, and
                            ``(ii) the issuer of such bond shall be 
                        liable for payment to the United States of the 
                        credit recapture amount.
                Such payment shall be made at such time and in such 
                manner as determined by the Secretary.
                    ``(B) Credit recapture amount.--For purposes of 
                subparagraph (A), the credit recapture amount is an 
                amount equal to the sum of--
                            ``(i) the aggregate amount of credit 
                        allowed with respect to such bond for the 3 
                        preceding taxable years, plus
                            ``(ii) interest (at the underpayment rate 
                        established under section 6621) on the credit 
                        amount from the date such credit was allowed to 
                        the payment date under subparagraph (A).
    ``(e) Limitations on Amount of Bonds Designated.--
            ``(1) In general.--There is a Community Open Space bond 
        limitation for each calendar year equal to--
                    ``(A) $1,900,000,000 for each of years 2000 through 
                2004, and
                    ``(B) except as provided in paragraph (3), zero 
                after 2004.
            ``(2) Allocation of limitation among states and local 
        governments.--
                    ``(A) In general.--The limitation amount to be 
                allocated under paragraph (1) for any calendar year 
                shall be allocated among States and local governments 
                with an approved application on a competitive basis by 
                the Community Open Space Bonds Board (referred to in 
                this subsection as the `Board') established under 
                section 3 of the Community Open Space Bonds Act of 
                1999.
                    ``(B) Approved application.--For purposes of 
                subparagraph (A), the term `approved application' means 
                an application which is approved by the Board, and 
                which includes such information as the Board requires.
                    ``(C) Allocation to each state.--The Board shall, 
                in accordance with the criteria for approval of 
                applications, allocate amounts in any calendar year to 
                at least 1 approved application from each State, or 
                local government of such State, which submits such 
                application.
            ``(3) Carryover of unused limitation.--If for any calendar 
        year--
                    ``(A) the limitation amount under paragraph (1), 
                exceeds
                    ``(B) the aggregate limitation amount allocated to 
                States and local governments under this section,
        the limitation amount under paragraph (1) for the following 
        calendar year shall be increased by the amount of such excess. 
        No limitation amount shall be carried forward under this 
        paragraph more than 3 years.
    ``(f) Other Definitions; Special Rules.--For purposes of this 
subpart--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Credit allowance date.--The term `credit allowance 
        date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(3) Qualified easement.--The term `qualified easement' 
        means a perpetual easement--
                    ``(A) which would be a qualified conservation 
                contribution under section 170(h) if such easement were 
                a contribution under such section, and
                    ``(B) which is to be held by an entity described in 
                subclause (I) or (II) of subsection (d)(2)(B)(i).
            ``(4) Qualified use.--The term `qualified use' means, with 
        respect to property, a use which is consistent with the purpose 
        of the qualified environmental infrastructure project related 
        to such property.
            ``(5) State.--The term `State' includes the District of 
        Columbia, any possession of the United States, and any Indian 
        tribe (as defined in section 45A(c)(6)).
            ``(6) Partnership; S corporation; and other pass-thru 
        entities.--Under regulations prescribed by the Secretary, in 
        the case of a partnership, trust, S corporation, or other pass-
        thru entity, rules similar to the rules of section 41(g) shall 
        apply with respect to the credit allowable under subsection 
        (a).
    ``(g) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section and the 
amount so included shall be treated as interest income.
    ``(h) Bonds Held By Regulated Investment Companies.--If any 
Community Open Space bond is held by a regulated investment company, 
the credit determined under subsection (a) shall be allowed to 
shareholders of such company under procedures prescribed by the 
Secretary.
    ``(i) Credits May Be Stripped.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--There may be a separation (including at 
        issuance) of the ownership of a Community Open Space bond and 
        the entitlement to the credit under this section with respect 
        to such bond. In case of any such separation, the credit under 
        this section shall be allowed to the person which, on the 
        credit allowance date, holds the instrument evidencing the 
        entitlement to the credit and not to the holder of the bond.
            ``(2) Certain rules to apply.--In the case of a separation 
        described in paragraph (1), the rules of section 1286 shall 
        apply to the Community Open Space bond as if it were a stripped 
        bond and to the credit under this section as if it were a 
        stripped coupon.
    ``(j) Treatment for Estimated Tax Purposes.--Solely for purposes of 
sections 6654 and 6655, the credit allowed by this section to a 
taxpayer by reason of holding a Community Open Space bond on a credit 
allowance date shall be treated as if it were a payment of estimated 
tax made by the taxpayer on such date.
    ``(k) Credit May Be Transferred.--Nothing in any law or rule of law 
shall be construed to limit the transferability of the credit allowed 
by this section through sale and repurchase agreements.
    ``(l) Reporting.--Issuers of Community Open Space bonds shall 
submit reports similar to the reports required under section 149(e).''
    (b) Reporting.--Subsection (d) of section 6049 of the Internal 
Revenue Code of 1986 (relating to returns regarding payments of 
interest) is amended by adding at the end the following:
            ``(8) Reporting of credit on community open space bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54(f) and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54(f)(2)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''
    (c) Clerical Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following:

                              ``Subpart H. Nonrefundable Credit for 
                                        Holders of Community Open Space 
                                        Bonds.''
            (2) Section 6401(b)(1) of such Code is amended by striking 
        ``and G'' and inserting ``G, and H''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 1999.

SEC. 3. COMMUNITY OPEN SPACE BONDS BOARD.

    (a) Establishment.--There is established in the Executive Branch a 
board to be known as the Community Open Space Bonds Board (in this 
section referred to as the ``Board'').
    (b) Membership.--
            (1) Composition.--The Board shall be composed of 18 
        members, as follows:
                    (A) 3 members shall be individuals who are not 
                otherwise Federal officers or employees and who are 
                appointed by the President, by and with the advice and 
                consent of the Senate.
                    (B) 8 members, not be affiliated with the same 
                political party, shall be individuals who represent 
                Governors, or other chief executive officers, of a 
                State, mayors, and county commissioners and who are 
                appointed by the President, by and with the advice and 
                consent of the Senate.
                    (C) 1 member shall be the Administrator of the 
                Environmental Protection Agency or the Administrator's 
                designee.
                    (D) 1 member shall be the Secretary of Agriculture 
                or the Secretary's designee.
                    (E) 1 member shall be the Secretary of Housing and 
                Urban Development or the Secretary's designee.
                    (F) 1 member shall be the Secretary of Interior or 
                the Secretary's designee.
                    (G) 1 member shall be the Secretary of 
                Transportation or the Secretary's designee.
                    (H) 1 member shall be the Secretary of the Treasury 
                or the Secretary's designee.
                    (I) 1 member shall be the Director of the Federal 
                Emergency Management Agency or the Director's designee.
            (2) Qualifications and terms.--
                    (A) Qualifications.--Members of the Board described 
                in paragraph (1)(A) shall be appointed without regard 
                to political affiliation and solely on the basis of 
                their professional experience and expertise in 1 or 
                more of the following areas:
                            (i) Tax-exempt organizations which have as 
                        a principal purpose environmental protection 
                        and land conservation.
                            (ii) Community planning.
                            (iii) Real estate investment and bond 
                        financing.
                In the aggregate, the members of the Board described in 
                paragraph (1)(A) should collectively bring to bear 
                expertise in all of the areas described in the 
                preceding sentence and should represent each position 
                contained in such paragraph and different regions of 
                the country.
                    (B) Terms.--Each member who is described in 
                subparagraph (A) or (B) of paragraph (1) shall be 
                appointed for a term of 3 years, except that of the 
                members first appointed--
                            (i) 3 members shall be appointed for a term 
                        of 1 year,
                            (ii) 4 members shall be appointed for a 
                        term of 2 years, and
                            (iii) 4 members shall be appointed for a 
                        term of 3 years.
                    (C) Reappointment.--An individual who is described 
                in subparagraph (A) or (B) of paragraph (1) may be 
                appointed to no more than one 3-year term on the Board.
                    (D) Vacancy.--Any vacancy on the Board shall be 
                filled in the same manner as the original appointment. 
                Any member appointed to fill a vacancy occurring before 
                the expiration of the term for which the member's 
                predecessor was appointed shall be appointed for the 
                remainder of that term.
            (3) Initial meeting.--Not later than 30 days after the date 
        on which all members of the Board have been appointed, the 
        Board shall hold its first meeting. Subsequent meetings shall 
        be determined by the Board by majority vote or held at the call 
        of the Chairperson.
            (4) Quorum.--A majority of the members of the Board shall 
        constitute a quorum, but a lesser number of members may hold 
        hearings.
            (5) Chairperson.--The member described in paragraph (1)(C) 
        shall serve as the Chairperson of the Board.
            (6) Removal.--
                    (A) In general.--Any member of the Board appointed 
                under subparagraph (A) or (B) of paragraph (1) may be 
                removed at the will of the President.
                    (B) Secretaries; director; administrator.--An 
                individual described in subparagraphs (C) through (I) 
                of paragraph (1) shall be removed upon termination of 
                service in the office described in each such 
                subparagraph.
    (c) Duties of the Board.--
            (1) In general.--The Board shall review applications for 
        allocation of the Community Open Space bond limitation amounts 
        under section 54(e)(2) of the Internal Revenue Code of 1986 and 
        approve applications in accordance with published criteria.
            (2) Criteria for approval.--The Board shall promulgate a 
        regulation to develop criteria for approval of applications 
        under paragraph (1), taking into consideration the following 
        guidelines:
                    (A) A distribution pattern of the overall 
                limitation amount available for the year which results 
                in the financing of each category of qualified 
                environmental infrastructure project and results in an 
                even distribution among different regions of the 
                country and sizes of communities.
                    (B) State or local government support of proposed 
                projects.
                    (C) Proposed projects which meet local and regional 
                environmental protection or planning goals and leverage 
                or make more efficient or innovative the use of other 
                public or private resources.
                    (D) Proposed projects which are intended to 
                maintain the viability of existing central business 
                districts, preserve the community's distinct character 
                and values, and encourage the reuse of property already 
                served by public infrastructure.
                    (E) The extent of expected improvement in 
                environmental quality, outdoor recreation 
                opportunities, and access to public lands.
            (3) Annual report.--The Board shall annually report with 
        respect to the conduct of its responsibilities under this 
        section to the President and Congress and such report shall 
        include--
                    (A) the overall progress of the Community Open 
                Space bond program, and
                    (B) the overall limitation amount allocated during 
                the year and a description of the amount, region, and 
                qualified environmental infrastructure project financed 
                by each allocation.
            (4) Conflict of interest.--The Board shall carry out its 
        duties under this subsection in such a way to ensure that all 
        conflicts of interest of its members are avoided.
    (d) Powers of the Board.--
            (1) Hearings.--The Board may hold such hearings, sit and 
        act at such times and places, take such testimony, and receive 
        such evidence as the Board considers advisable to carry out the 
purposes of this section.
            (2) Information from federal agencies.--The Board may 
        secure directly from any Federal department or agency such 
        information as the Board considers necessary to carry out the 
        provisions of this section, including the published and 
        unpublished data and analytical products of the Bureau of Labor 
        Statistics. Upon request of the Chairperson of the Board, the 
        head of such department or agency shall furnish such 
        information to the Board.
            (3) Postal services.--The Board may use the United States 
        mails in the same manner and under the same conditions as other 
        departments and agencies of the Federal Government.
    (e) Board Personnel Matters.--
            (1) Compensation of members.--Each member of the Board who 
        is not otherwise an officer or employee of the Federal 
        Government shall be compensated at a rate equal to the daily 
        equivalent of the annual rate of basic pay prescribed for level 
        III of the Executive Schedule under section 5315 of title 5, 
        United States Code, for each day (including travel time) during 
        which such member is engaged in the performance of the duties 
        of the Board. All members of the Board who otherwise are 
        officers or employees of the United States shall serve without 
        compensation in addition to that received for their services as 
        officers or employees of the United States.
            (2) Travel expenses.--The members of the Board shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Board.
            (3) Staff.--
                    (A) In general.--The Chairperson of the Board may, 
                without regard to the civil service laws and 
                regulations, appoint and terminate an executive 
                director and such other additional personnel as may be 
                necessary to enable the Board to perform its duties. 
                The employment of an executive director shall be 
                subject to confirmation by the Board.
                    (B) Compensation.--The Chairperson of the Board may 
                fix the compensation of the executive director and 
                other personnel without regard to the provisions of 
                chapter 51 and subchapter III of chapter 53 of title 5, 
                United States Code, relating to classification of 
                positions and General Schedule pay rates, except that 
                the rate of pay for the executive director and other 
                personnel may not exceed the rate payable for level IV 
                of the Executive Schedule under section 5316 of such 
                title.
            (4) Detail of government employees.--Any Federal Government 
        employee may be detailed to the Board without additional 
        reimbursement (other than the employee's regular compensation), 
        and such detail shall be without interruption or loss of civil 
        service status or privilege.
            (5) Procurement of temporary and intermittent services.--
        The Chairperson of the Board may procure temporary and 
        intermittent services under section 3109(b) of title 5, United 
        States Code, at rates for individuals which do not exceed the 
        daily equivalent of the annual rate of basic pay prescribed for 
        level V of the Executive Schedule under section 5316 of such 
        title.
    (f) Definitions.--For purposes of this section--
            (1) State.--The term `State' includes the District of 
        Columbia, any possession of the United States, and any Indian 
        tribe (as defined in section 45A(c)(6)).
            (2) Qualified environmental infrastructure project.--The 
        term `qualified environmental infrastructure project' has the 
        same meaning given that term in section 54(d)(2) of the 
        Internal Revenue Code of 1986.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Board such sums as are necessary to carry out the 
purposes of this section.
    (h) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Initial nominations.--The President shall submit the 
        initial nominations under subparagraphs (A) and (B) of 
        subsection (b)(1) to the Senate not later than 90 days after 
        the date of the enactment of this Act.
            (3) Regulations.--Not later than January 1, 2000, the Board 
        shall publish in the Federal Register the guidelines and 
        criteria for submission and approval of applications under 
        subsection (c).
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