1.Short
title; table of contents
(a)This Act may be cited
as the Economic Recovery Act of
2008
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of
contents.
TITLE I—Tax provisions
Sec. 101. Credit for replacement of wood-burning stoves meeting
environmental standards.
Sec. 102. Renewable electricity production credit.
Sec. 103. Permanent increase in limitations on expensing of
certain depreciable business assets; study on expensing limits.
Sec. 104. 15-year straight-line cost recovery for qualified
restaurant property.
TITLE II—Energy provisions
Sec. 201. Weatherization assistance.
Sec. 202. Energy Star programs.
TITLE III—Transportation provisions
Subtitle A—Build America bonds
Sec. 301. Credit to holders of Build America bonds.
Sec. 302. Transportation Finance Corporation.
Subtitle B—Commercial Truck Fuel Savings
Sec. 311. Short title.
Sec. 312. Findings.
Sec. 313. Definitions.
Sec. 314. Waiver of highway funding reduction relating to
weight of vehicles using Interstate System highways.
Sec. 315. GAO truck safety demonstration report.
Sec. 316. Responsibilities of States.
TITLE IV—Workforce development
Sec. 401. Statewide and local workforce investment
systems.
TITLE V—Housing provisions
Sec. 501. Insurance of homeownership retention
mortgages.
Sec. 502. Study of auction or bulk refinance
program.
<enum>I</enum><header>Tax
provisions</header>
<section id="id44C96FBC6E774167A4FE313E62F80DB8"><enum>101.</enum><header>Credit for
replacement of wood-burning stoves meeting environmental standards</header>
<subsection id="id3C385B2A32B540D8AA4F3C0AA15100A1"><enum>(a)</enum><header>In
general</header><text>Subpart A of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25D the following new section:</text>
<quoted-block act-name="" id="id2244A5441E42407F8DB8B8132A5336EB" style="OLC">
<section id="idD31C72718C6241CCBC913AD73C2B465F"><enum>25E.</enum><header>Replacement of
wood-burning stoves</header>
<subsection id="idA6D5C0F962E94FAA9C2CFF1A32ABC8F0"><enum>(a)</enum><header>Allowance of
credit</header><text>In the case of an individual, there shall be allowed as a
credit against the tax imposed by this chapter for the taxable year an amount
equal to the qualified stove replacement expenditures paid or incurred by the
taxpayer for the taxable year.</text>
</subsection><subsection id="idCB644C66C5DC42489C729EBAC4182F71"><enum>(b)</enum><header>Limitation</header><text>The
amount of the credit under subsection (a) with respect to the replacement of
each non-compliant wood stove shall not exceed $500.</text>
</subsection><subsection id="id2F7A616CADD14AF0A7733F13D712C87A"><enum>(c)</enum><header>Qualified stove
replacement expenditures</header><text>For purposes of this section—</text>
<paragraph id="id128B34D3A1B94CC9802FEAA4415E2ABE"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified stove replacement
expenditures</term> means expenditures made by the taxpayer for the purchase
and installation of a compliant stove which—</text>
<subparagraph id="idD2C3672E78EE4485879AEC66AE707F4B"><enum>(A)</enum><text>is installed in a
dwelling unit located in the United States, and</text>
</subparagraph><subparagraph id="id94DE7899BA584AF88870D803EBCCA1AD"><enum>(B)</enum><text>replaces a
noncompliant wood stove used in such dwelling unit.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Such term
includes expenditures for labor costs properly allocable to the onsite
preparation, assembly, or original installation of the compliant stove.</continuation-text></paragraph><paragraph id="id8619BCA5AB124297A74CF467BDE68212"><enum>(2)</enum><header>Compliant
stove</header><text>The term <term>compliant stove</term> means—</text>
<subparagraph id="id2AF6A9F45F1242E5ABC9EED8441A428C"><enum>(A)</enum><text>a wood-burning
stove which meets the requirements set forth in the <quote>Standards of
Performance for New Residential Wood Heaters</quote> issued by the
Environmental Protection Agency, and</text>
</subparagraph><subparagraph id="idE08A0E48A48F4379A2686F9DB54D53D4"><enum>(B)</enum><text>a pellet or
corn-burning stove.</text>
</subparagraph></paragraph><paragraph id="id4A8E896710BC47A891F1CAE360BD3E25"><enum>(3)</enum><header>Noncompliant
wood stove</header><text>The term <term>noncompliant wood stove</term> means
any wood-burning stove that is not a compliant stove.</text>
</paragraph></subsection><subsection id="idA2B0D839F69E4A5EAC8988C4B86F858D"><enum>(d)</enum><header>Joint
occupancy, cooperative housing corporations, and when expenditure
made</header><text>Rules similar to the rules of paragraphs (4), (5), and (8)
of section 25D(e) shall apply for purposes of this section.</text>
</subsection><subsection id="id8918E6B8CA2E4738992A34EEEA3782AB"><enum>(e)</enum><header>Basis
adjustment</header><text>For purposes of this subtitle, if a credit is allowed
under this section for any expenditure with respect to any property, the
increase in the basis of such property which would (but for this subsection)
result from such expenditure shall be reduced by the amount of the credit so
allowed.</text>
</subsection><subsection id="idA705DE134FD74FB3933BAB7AB0D140D3"><enum>(f)</enum><header>Termination</header><text>This
section shall not apply to expenditures made after December 31,
2010.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id6A4AD48D87E5483793A37C2D2BCA70BF"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id32C554D51323488EA0BCD7B6566A3A6D"><enum>(1)</enum><text>Subsection (a) of
section 1016 of the Internal Revenue Code of 1986 is amended—</text>
<subparagraph id="idC0D985793B894FDBABE000235800658C"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of paragraph (35),</text>
</subparagraph><subparagraph id="idC7C9F5B5B0BF4792805B8CA17354B535"><enum>(B)</enum><text>by striking the
period at the end of paragraph (36) and inserting <quote>, and</quote>,
and</text>
</subparagraph><subparagraph id="id7D922B3EA9F148F6BF220BBB897813E0"><enum>(C)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block act-name="" id="id45076FA0F5D147E8A21D1523CEEA9AE3" style="OLC">
<paragraph id="id34559A05F4FB47C9A22A904F9ED7727A"><enum>(37)</enum><text>to the extent
provided in section 25E(e), in the case of amounts with respect to which a
credit has been allowed under section
25E.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id9E4F0DA412074C31A4BF74AEE4AB8455"><enum>(2)</enum><text>The table of
sections for subpart A of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 25D the following new
item:</text>
<toc>
<toc-entry bold="off" level="section"><quote>Sec. 25E. Replacement of
wood-burning stoves.</quote>.</toc-entry>
</toc>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id1E041BD98D9C46DEB690DD41A9AA39DA"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
expenditures for stoves purchased after the date of the enactment of this
Act.</text>
</subsection></section><section id="id54B9390F892E4B649BC0A3F45F2B3357"><enum>102.</enum><header>Renewable
electricity production credit</header>
<subsection id="H07F63774CE654996002503FCF2B572F7"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Section 45(d) of the Internal Revenue Code
of 1986 (relating to qualified facilities) is amended by striking
<quote>January 1, 2009</quote> each place it appears in paragraphs (1), (2),
(3), (4), (5), and (7) and inserting <quote>January 1, 2012</quote>.</text>
</subsection><subsection id="H395689A718B04F0D8424FAAEF690AA2B"><enum>(b)</enum><header>Repeal of
municipal solid waste as qualified resource</header>
<paragraph id="idBB82351A24AD4CACBA6AC39E2F7C8FD1"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45(c) of the Internal Revenue
Code of 1986 is amended by inserting <quote>and</quote> at the end of
subparagraph (F) and by striking subparagraph (G).</text>
</paragraph><paragraph id="id4EDA1BEFFC544A209EF11301A5FAE8ED"><enum>(2)</enum><header>Conforming
amendment</header><text>Subsection (d) of section 45 of such Code is amended by
striking paragraph (6).</text>
</paragraph><paragraph id="id379380662EC14A859A66987A8DC16ADF"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
property placed in service after the date of the enactment of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H705EEB24CA8B4BEBBD00D77D003D9DFB"><enum>(c)</enum><header>Extension of
credit for residential energy efficient property</header><text>Subsection (g)
of section 25D of the Internal Revenue Code of 1986 (relating to termination)
is amended by striking <quote>December 31, 2008</quote> and inserting
<quote>December 31, 2012</quote>.</text>
</subsection></section><section id="H822F6894D1994F64AE4E65C780A0D673" section-type="subsequent-section"><enum>103.</enum><header>Permanent increase
in limitations on expensing of certain depreciable business assets; study on
expensing limits</header>
<subsection id="HD5E88A6DE4CB4544AC8DB7CC48FC8C95"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (b) of
<external-xref legal-doc="usc" parsable-cite="usc/26/179">section
179</external-xref> of the Internal Revenue Code of 1986 (relating to
limitations) is amended—</text>
<paragraph id="idA674356556264591BF7468EE2F064BA6"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>$25,000</quote> and all
that follows in paragraph (1) and inserting <quote>$128,000.</quote>,</text>
</paragraph><paragraph id="idC330A7E8496640AEA24F3C5E53154CF0"><enum>(2)</enum><text>by striking
<quote>$200,000</quote> and all that follows in paragraph (2) and inserting
<quote>$512,000.</quote>,</text>
</paragraph><paragraph id="id7927B0B76011426E8B5BD4AE40191189"><enum>(3)</enum><text>by striking
<quote>after 2007 and before 2011, the $125,000 and $500,000</quote> in
paragraph (5)(A) and inserting <quote>after 2008, the $128,000 and the
$512,000</quote>,</text>
</paragraph><paragraph id="idBFC8B2F5B32643378BE73A41AA4FF202"><enum>(4)</enum><text>by striking
<quote>2006</quote> in paragraph (5)(A)(ii) and inserting <quote>2007</quote>,
and</text>
</paragraph><paragraph id="id16C4B1DF115849488F96DD334027AF02"><enum>(5)</enum><text>by striking
paragraph (7).</text>
</paragraph></subsection><subsection id="id397D6A1652DB4651A3DED48853032F34"><enum>(b)</enum><header>Study</header>
<paragraph id="id41DD2D2397DD41F8AEA6A72603C9CE01"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury shall conduct a study on
the use and impact of increased limitations on expensing of depreciable
business assets under section 179 of the Internal Revenue Code of 1986,
including—</text>
<subparagraph id="idB81385671BC44C7199FE5A4FEC6A19A7"><enum>(A)</enum><text>the use of
expensing following the increase of limitations in 2003, 2007, and 2008;</text>
</subparagraph><subparagraph id="id66BE8EA05BA241998734C9C306711D02"><enum>(B)</enum><text>the impact of
higher limitations on expensing on small businesses, including information on
businesses by size and industry; and</text>
</subparagraph><subparagraph id="id05597C550BA94968AB360A99D09A5A58"><enum>(C)</enum><text>the impact of
higher limitations on expensing on economic activity, including business
investment, business expansion, and job growth.</text>
</subparagraph></paragraph><paragraph id="id62844C6E5F734BBB9337420D76DB3C12"><enum>(2)</enum><header>Report</header><text>The
Secretary of the Treasury shall, not later than one year after the date of the
enactment of this Act, submit a report on the results of the study required
under paragraph (1) to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC72C1AD73FAF413784007733FB608EBD"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.</text>
</subsection></section><section id="id823C2663344E4423AFD14E8DF562C4F2"><enum>104.</enum><header>15-year
straight-line cost recovery for qualified restaurant property</header>
<subsection id="IDBE746848356E4AF3A97B6373A4309340"><enum>(a)</enum><header>In
general</header><text>Clause (v) of section 168(e)(3)(E) of the Internal
Revenue Code of 1986 (relating to 15-year property) is amended by striking
<quote>January 1, 2008</quote> and inserting <quote>January 1,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDCB131062A22945EDBD09958C6B247201"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2007.</text>
</subsection></section><enum>II</enum><header>Energy
provisions</header>
<section id="idCEC930BAF8E34548B6E890C468A25751"><enum>201.</enum><header>Weatherization
assistance</header><text display-inline="no-display-inline">Section 422 of the
Energy Conservation and Production Act (42 U.S.C. 6872) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idE75BB3D85D9B4570B419667A4956C801" style="OLC">
<section id="id0750402F6D5347FBBB5043C235953495"><enum>422.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated to carry out the weatherization program under
this part—</text>
<paragraph id="id8D61107E22D64467A4C97BE139B78B30"><enum>(1)</enum><text display-inline="yes-display-inline">$1,000,000,000 for fiscal year 2009;</text>
</paragraph><paragraph id="id142850D1D7E643729545AF09848B92F1"><enum>(2)</enum><text>$1,200,000,000
for fiscal year 2010; and</text>
</paragraph><paragraph id="id7ED6464AA030447A9E02D6DA3F7806C6"><enum>(3)</enum><text>$1,400,000,000
for fiscal year
2011.</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H80D9623D8FAB48979289F110A01700AF"><enum>202.</enum><header>Energy Star
programs</header><text display-inline="no-display-inline">There are authorized
to be appropriated for use in carrying out the Energy Star program under
section 324A of the Energy Policy and Conservation Act (42 U.S.C.
6294a)—</text>
<paragraph id="H62444AFF45584037BCFBB3C0E690715D"><enum>(1)</enum><text>to the
Administrator of the Environmental Protection Agency, $100,000,000 for each
fiscal year; and</text>
</paragraph><paragraph id="HAE2E0780D4AF44DDADB6D72394B10885"><enum>(2)</enum><text>to the Secretary
of Energy, $12,000,000 for each fiscal year.</text>
</paragraph></section><enum>III</enum><header>Transportation
provisions</header>
<subtitle id="id888CA0E9592C4047ACC062EB602BC129"><enum>A</enum><header>Build America
bonds</header>
<section id="ID33C42865919E471C805585BD43A46EBA"><enum>301.</enum><header>Credit to
holders of Build America bonds</header>
<subsection id="ID647839F762F34F61AF6293177642E65A"><enum>(a)</enum><header>In
general</header><text>Subpart H of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to nonrefundable credit to holders of
certain bonds) is amended by adding at the end the following new
section:</text>
<quoted-block id="IDCED5F93F58AA49639495ED0A5D567E0B">
<section id="ID1B3E03A7B1D4474981734FE1BE328C29"><enum>54A.</enum><header>Credit to
holders of Build America bonds</header>
<subsection id="IDB685FD09FD334F9DA1B77CC30C06B4FE"><enum>(a)</enum><header>Allowance of
credit</header><text>If a taxpayer holds a Build America bond on 1 or more
credit allowance dates of the bond occurring during any taxable year, there
shall be allowed as a credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credits determined under
subsection (b) with respect to such dates.</text>
</subsection><subsection id="ID02A4BAC559B24D7D94B3424C834C2969"><enum>(b)</enum><header>Amount of
credit</header>
<paragraph id="ID919326FBD60545DBAE7F31B7F757C5F1"><enum>(1)</enum><header>In
general</header><text>The amount of the credit determined under this subsection
with respect to any credit allowance date for a Build America bond is 25
percent of the annual credit determined with respect to such bond.</text>
</paragraph><paragraph id="ID01CD7C5DA897476A838E324908DF909A"><enum>(2)</enum><header>Annual
credit</header><text>The annual credit determined with respect to any Build
America bond is the product of—</text>
<subparagraph id="ID8EDD5DAA1F664A44A8E73A7978B3F110"><enum>(A)</enum><text>the applicable
credit rate, multiplied by</text>
</subparagraph><subparagraph id="ID35088A2A0DF24999B968A360F0407CCD"><enum>(B)</enum><text>the outstanding
face amount of the bond.</text>
</subparagraph></paragraph><paragraph id="IDC88F8A0A3F2F47AD96C1939ADEF040B1"><enum>(3)</enum><header>Applicable
credit rate</header><text>For purposes of paragraph (2), the applicable credit
rate with respect to an issue is the rate equal to an average market yield (as
of the day before the date of sale of the issue) on outstanding long-term
corporate debt obligations (determined in such manner as the Secretary
prescribes).</text>
</paragraph><paragraph id="ID401D9DEF578C4FE6B1E8C47155572871"><enum>(4)</enum><header>Credit
allowance date</header><text>For purposes of this section, the term
<term>credit allowance date</term> means—</text>
<subparagraph id="ID848C25BDA21F4666938FCFE9758C3716"><enum>(A)</enum><text>March 15,</text>
</subparagraph><subparagraph id="IDDF46C047984945EDB46D68564235976F"><enum>(B)</enum><text>June 15,</text>
</subparagraph><subparagraph id="IDA0FA1462CADC4CFE817022B67C7D5C00"><enum>(C)</enum><text>September 15,
and</text>
</subparagraph><subparagraph id="ID6919831845EC40F29647B57735F135A6"><enum>(D)</enum><text>December
15.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Such term
includes the last day on which the bond is outstanding.</continuation-text></paragraph><paragraph id="IDC7B17C8DF051417FBC13C98BA6D9C62E"><enum>(5)</enum><header>Special rule
for issuance and redemption</header><text>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 or matures.</text>
</paragraph></subsection><subsection id="ID5408A900C2F2455BB78F56BA6532962A"><enum>(c)</enum><header>Limitation
based on amount of tax</header><text>The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of—</text>
<paragraph id="ID35B337B645344AFA80D021A81D99B47D"><enum>(1)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</paragraph><paragraph id="IDC151F052AA8F43E9B391F42357A918C9"><enum>(2)</enum><text>the sum of the
credits allowable under this part (other than subpart C, section 1400N(l), and
this section).</text>
</paragraph></subsection><subsection id="ID1A465CD9B13E4621AC717E2F6EE52D1F"><enum>(d)</enum><header>Credit included
in gross income</header><text>Gross income includes the amount of the credit
allowed to the taxpayer under this section (determined without regard to
subsection (c)) and the amount so included shall be treated as interest
income.</text>
</subsection><subsection id="ID8898D03510BB473AA8DB15637FDA4590"><enum>(e)</enum><header>Build America
bond</header><text>For purposes of this section, the term <term>Build America
bond</term> means any bond issued as part of an issue if—</text>
<paragraph id="IDB400B16D4FA948A6BD94624B18654A84"><enum>(1)</enum><text>95 percent or
more of the proceeds of such issue are to be used for expenditures incurred
after the date of the enactment of this section for 1 or more qualified
projects pursuant to an allocation of such proceeds to such project or projects
by the Transportation Finance Corporation,</text>
</paragraph><paragraph id="IDCE7AA652F2D948498C5163B480673D23"><enum>(2)</enum><text>the bond is
issued by the Transportation Finance Corporation and is in registered form
(within the meaning of section 149(a)),</text>
</paragraph><paragraph id="ID15D57F802654439A87FDE45B56597030"><enum>(3)</enum><text>the
Transportation Finance Corporation certifies that it meets the State
contribution requirement of subsection (l) with respect to such project, as in
effect on the date of issuance,</text>
</paragraph><paragraph id="ID945664EE5E544D63A70A330E2F94973A"><enum>(4)</enum><text>the
Transportation Finance Corporation certifies that the State in which an
approved qualified project is located meets the requirement described in
subsection (m),</text>
</paragraph><paragraph id="id890FF551AD3E4FBF851D1799DDDC6EB0"><enum>(5)</enum><text>the face amount
of such bond, when added to the face amount of all Build America bonds
previously issued in the calendar year, does not exceed the Build America bond
limitation for such year under subsection (g),</text>
</paragraph><paragraph id="IDDB94A68136F14E56A17DFC99C6BE2A06"><enum>(6)</enum><text>the term of each
bond which is part of such issue does not exceed 30 years,</text>
</paragraph><paragraph id="ID6B457EEF3BAC478692A7FB2EE976C795"><enum>(7)</enum><text>the payment of
principal with respect to such bond is the obligation of the Transportation
Finance Corporation, and</text>
</paragraph><paragraph id="IDCF4147D28DC64DDEB07078CC2457FC1A"><enum>(8)</enum><text>the issue meets
the requirements of subsection (h).</text>
</paragraph></subsection><subsection id="ID26F6F021C847446FB09DD2BCFB5A01DC"><enum>(f)</enum><header>Qualified
project</header><text>For purposes of this section, the term <term>qualified
project</term> means the capital improvements to any transportation
infrastructure project of any governmental unit or other person, including
roads, bridges, rail and transit systems, ports, and inland waterways, proposed
by 1 or more States and approved by the Transportation Finance Corporation, but
does not include costs of operations or maintenance with respect to such
project.</text>
</subsection><subsection id="ID95B202E946C144FDA888C2BEF077D942"><enum>(g)</enum><header>Limitation on
amount of bonds designated</header>
<paragraph id="ID13AA612B8EA2428D8DC49674D3A06036"><enum>(1)</enum><header>National
limitation</header><text>There is a Build America bond limitation for each
calendar year. Such limitation is—</text>
<subparagraph id="IDA1714AD375E944DB83C3CBAF99721843"><enum>(A)</enum><text>$5,000,000,000
for 2009,</text>
</subparagraph><subparagraph id="ID5678B0A8362847928FA723BC388C34EC"><enum>(B)</enum><text>$5,000,000,000
for 2010,</text>
</subparagraph><subparagraph id="IDF8FE2DEC0E43498E891B26FCC1B40DFE"><enum>(C)</enum><text>$10,000,000,000
for 2011,</text>
</subparagraph><subparagraph id="ID610BE2AFB6E546DE9DE5E2523D290EAB"><enum>(D)</enum><text>$10,000,000,000
for 2012,</text>
</subparagraph><subparagraph id="ID94406C8A955641D98A82EFE4DE1BB649"><enum>(E)</enum><text>$10,000,000,000
for 2013,</text>
</subparagraph><subparagraph id="ID9A40F39060B842FE8706159FA9ECF928"><enum>(F)</enum><text>$10,000,000,000
for 2014, and</text>
</subparagraph><subparagraph id="IDB9C5443204B94DF88AAE8B9A2DABA2C0"><enum>(G)</enum><text>except as
provided in paragraph (4), zero thereafter.</text>
</subparagraph></paragraph><paragraph id="IDE8CE66A046B54235873C9765972EAA63"><enum>(2)</enum><header>Minimum
allocations to States</header><text>In making allocations for each calendar
year under subsection (e)(1), the Transportation Finance Corporation shall
ensure that the amount allocated for qualified projects located in each State
for such calendar year is not less than 1 percent of the total amount allocated
for such year.</text>
</paragraph><paragraph id="IDE4D8714309AB47F7AD2CD06FC229D008"><enum>(3)</enum><header>Carryover of
unused issuance limitation</header><text>If for any calendar year the
limitation amount imposed by paragraph (1) exceeds the amount of Build America
bonds issued during such year, such excess shall be carried forward to one or
more succeeding calendar years as an addition to the limitation imposed by
paragraph (1) and until used by issuance of Build America bonds.</text>
</paragraph><paragraph id="IDE9F658D63FE041DFACFFB3CCD47267BA"><enum>(4)</enum><header>Issuance of
small denomination bonds</header><text>From the Build America bond limitation
for each year, the Transportation Finance Corporation shall issue a limited
quantity of Build America bonds in small denominations suitable for purchase as
gifts by individual investors wishing to show their support for investing in
America’s transportation infrastructure.</text>
</paragraph></subsection><subsection id="IDF707360250DD4634AC1327C94E46A560"><enum>(h)</enum><header>Special rules
relating to expenditures</header>
<paragraph id="ID3C71B4330B624DC7910C458FE81C8AFE"><enum>(1)</enum><header>In
general</header><text>An issue shall be treated as meeting the requirements of
this subsection if, as of the date of issuance, the Transportation Finance
Corporation reasonably expects—</text>
<subparagraph id="IDDA5AB45CB6154598BDDF3FD9E382F55E"><enum>(A)</enum><text>at least 95
percent of the proceeds of such issue are to be spent for 1 or more qualified
projects within the 5-year period beginning on such date,</text>
</subparagraph><subparagraph id="IDDDAC0918F8E644228E8E30CF023422C0"><enum>(B)</enum><text>to incur a
binding commitment with a State or third party to spend at least 10 percent of
the proceeds of such issue, or to commence construction, with respect to such
projects within the 12-month period beginning on such date, and</text>
</subparagraph><subparagraph id="IDD2A66CEBC1F948479641DAEDE0B68B09"><enum>(C)</enum><text>to proceed with
due diligence to complete such projects and to spend the proceeds of such
issue.</text>
</subparagraph></paragraph><paragraph id="ID8E8B1F97C30E46A2AB1147722FC4B704"><enum>(2)</enum><header>Rules regarding
continuing compliance after 5-year determination</header><text>To the extent
that less than 95 percent of the proceeds of such issue are expended by the
close of the 5-year period beginning on the date of issuance, the
Transportation Finance Corporation shall redeem all of the nonqualified bonds
within 90 days after the end of such period. For purposes of this paragraph,
the amount of the nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.</text>
</paragraph><paragraph id="id3327200093D04641B5BF704BDC935801"><enum>(3)</enum><header>Reallocation</header><text>In
the event the recipient of an allocation under subsection (g) after notice and
a reasonable opportunity to take corrective action fails to demonstrate to the
satisfaction of the Transportation Finance Corporation that its actions will
allow the Transportation Finance Corporation to meet the requirements under
this subsection, the Transportation Finance Corporation may redistribute the
allocation meant for such recipient to other recipients.</text>
</paragraph></subsection><subsection id="idBCCF056370CF474C94EA12C267B9B143"><enum>(i)</enum><header>Special rules
relating to arbitrage</header><text>A bond which is a part of an issue shall
not be treated as a Build America bond unless, with respect to the issue of
which such bond is a part, the Transportation Finance Corporation satisfies the
arbitrage requirements of section 148 with respect to proceeds of the
issue.</text>
</subsection><subsection id="ID8BDB481B3E0A4075AF7E7D55BAB235B6"><enum>(j)</enum><header>Recapture of
portion of credit where cessation of compliance</header><text>If any bond which
when issued purported to be a Build America bond ceases to be such a bond, the
Transportation Finance Corporation shall pay to the United States (at the time
required by the Secretary) an amount equal to the sum of—</text>
<paragraph id="ID7477E180E9C148C9887F4790C4DD15EB"><enum>(1)</enum><text>the aggregate of
the credits allowable under this section with respect to such bond (determined
without regard to subsection (c)) for taxable years ending during the calendar
year in which such cessation occurs and each succeeding calendar year ending
with the calendar year in which such bond is redeemed by the Transportation
Finance Corporation, and</text>
</paragraph><paragraph id="ID7EDD28B885DC4E0E892A4A85D179D673"><enum>(2)</enum><text>interest at the
underpayment rate under section 6621 on the amount determined under paragraph
(1) for each calendar year for the period beginning on the first day of such
calendar year.</text>
</paragraph></subsection><subsection id="ID0EF0B18AFE1540A8A68FB9CA362816C9"><enum>(k)</enum><header>Build America
Bonds Trust Account</header>
<paragraph id="ID71E8DCAF528B4EC09303FFCF1DB6E68F"><enum>(1)</enum><header>In
general</header><text>The following amounts shall be held in a Build America
Bonds Trust Account by the Transportation Finance Corporation:</text>
<subparagraph id="ID8C3EA03B85F2470798A7C9FB4909D661"><enum>(A)</enum><text>The proceeds from
the sale of all bonds issued under this section.</text>
</subparagraph><subparagraph id="ID55A0B71EE63145E08E9E0C37666A7E6F"><enum>(B)</enum><text>The investment
earnings on proceeds from the sale of such bonds.</text>
</subparagraph><subparagraph commented="no" id="idF7E4B8C04858456DBCC24480EB494E8C"><enum>(C)</enum><text>The amount
described in paragraph (2).</text>
</subparagraph><subparagraph id="IDA12B5E2A56B541FDA693C9F54D0C3BD3"><enum>(D)</enum><text>Any earnings on
any amounts described in subparagraph (A), (B), or (C).</text>
</subparagraph></paragraph><paragraph id="id86E4F5EC4182445988807274EFB954C4"><enum>(2)</enum><header>Appropriation
of revenues</header><text>There is hereby appropriated to the Build America
Bonds Trust Account an amount equal to the lesser of—</text>
<subparagraph id="id4070C8681BF84661B9E7EE913248C5F0"><enum>(A)</enum><text>the revenues
resulting from the imposition of fees pursuant to section 13031 of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c) for
fiscal years beginning after September 31, 2008, or</text>
</subparagraph><subparagraph id="id5CB3AB5E75D04032BFC1B41D3D694B65"><enum>(B)</enum><text>$50,000,000,000.</text>
</subparagraph></paragraph><paragraph id="IDC1CD39EC3B6D4C02AD476A7EC64EAA1C"><enum>(3)</enum><header>Use of
funds</header><text>Amounts in the Build America Bonds Trust Account may be
used only to pay costs of qualified projects, redeem Build America bonds, and
fund the operations of the Transportation Finance Corporation, except that
amounts withdrawn from the Build America Bonds Trust Account to pay costs of
qualified projects may not exceed the proceeds from the sale of Build America
bonds described in subsection (e)(1).</text>
</paragraph><paragraph id="ID919F1DD9ED71429D921F2AB016669F31"><enum>(4)</enum><header>Use of
remaining funds in Build America bonds trust account</header><text>Upon the
redemption of all Build America bonds issued under this section, any remaining
amounts in the Build America Bonds Trust Account shall be available to the
Transportation Finance Corporation to pay the costs of any qualified
project.</text>
</paragraph><paragraph id="IDA2D92821741345DBB448C106D66ECD0B"><enum>(5)</enum><header>Applicability
of Federal law</header><text>The requirements of any Federal law, including
titles 23, 40, and 49 of the United States Code, which would otherwise apply to
projects to which the United States is a party or to funds made available under
such law and projects assisted with those funds shall apply to—</text>
<subparagraph id="IDBEC86572C97142A48A0CADB7B8BF2791"><enum>(A)</enum><text>funds made
available under the Build America Bonds Trust Account for similar qualified
projects, including contributions required under subsection (l), and</text>
</subparagraph><subparagraph id="IDCFDBE52C9FD24A7591B9F7930D02BCF0"><enum>(B)</enum><text>similar qualified
projects assisted by the Transportation Finance Corporation through the use of
such funds.</text>
</subparagraph></paragraph><paragraph id="IDAA7E4B62BFDF433BB44095DC37BB1D0C"><enum>(6)</enum><header>Investment</header><text>Subject
to subsections (h) and (i), it shall be the duty of the Transportation Finance
Corporation to invest in investment grade obligations such portion of the Build
America Bonds Trust Account as is not, in the judgment of the Board of
Directors of the Transportation Finance Corporation, required to meet current
withdrawals. To the maximum extent practicable, investments should be made in
securities that support infrastructure investment at the State and local
level.</text>
</paragraph></subsection><subsection id="ID7ADC041737064FEC8C4C2CA83631A89E"><enum>(l)</enum><header>State
contribution requirements</header>
<paragraph id="ID0E56660EABA04CC09390BAFDFE117726"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (e)(3), the State contribution
requirement of this subsection is met with respect to any qualified project if
the Transportation Finance Corporation has received from 1 or more States, not
later than the date of issuance of the bond, written commitments for matching
contributions of not less than 20 percent (or such smaller percentage as
determined under title 23, United States Code, for such State) of the cost of
the qualified project.</text>
</paragraph><paragraph id="ID17A12D80593C4BA39D70E30EF4B5E757"><enum>(2)</enum><header>State matching
contributions may not include Federal funds</header><text>For purposes of this
subsection, State matching contributions shall not be derived, directly or
indirectly, from Federal funds, including any transfers from the Highway Trust
Fund under section 9503.</text>
</paragraph></subsection><subsection id="ID16941603C6504D498991EB7976F7D47F"><enum>(m)</enum><header>Utilization of
updated construction technology for qualified projects</header><text>For
purposes of subsection (e)(4), the requirement of this subsection is met if the
appropriate State agency relating to the qualified project is utilizing updated
construction technologies.</text>
</subsection><subsection id="ID5F692C4D5BBF46AC8EB258AC6CC1A157"><enum>(n)</enum><header>Other
definitions and special rules</header><text>For purposes of this
section—</text>
<paragraph id="ID42BAE3C7522441789F8F44CDFBA35988"><enum>(1)</enum><header>Bond</header><text>The
term <term>bond</term> includes any obligation.</text>
</paragraph><paragraph id="id7D945560B3C44CB1953F0E46C6662382"><enum>(2)</enum><header>Transportation
finance corporation</header><text>The term <term>Transportation Finance
Corporation</term> means the corporation established under section 302(a) of
the <short-title>Economic Recovery Act of
2008</short-title>.</text>
</paragraph><paragraph id="ID6A1A548BF9DC448187F4B82DFFBB02DE"><enum>(3)</enum><header>Partnership; S
corporation; and other pass-thru entities</header>
<subparagraph id="idC2D2C578B7CE45FBB50FCECA7C31D91F"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="id17E592481FDD48D186757F1FD27E59D4"><enum>(B)</enum><header>No basis
adjustment</header><text>In the case of a bond held by a partnership or an S
corporation, rules similar to the rules under section 1397E(i) shall
apply.</text>
</subparagraph></paragraph><paragraph id="IDBE3E8B5C32444922B34CF9AA18CB0D69"><enum>(4)</enum><header>Bonds held by
regulated investment companies</header><text>If any Build America 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.</text>
</paragraph><paragraph id="ID46B505E077C9437CA82388F9CD338A9D"><enum>(5)</enum><header>Credits may be
stripped</header><text>Under regulations prescribed by the Secretary—</text>
<subparagraph id="ID0625DFF218FC40D0A856240AA9008B65"><enum>(A)</enum><header>In
general</header><text>There may be a separation (including at issuance) of the
ownership of a Build America 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 who on the credit allowance
date holds the instrument evidencing the entitlement to the credit and not to
the holder of the bond.</text>
</subparagraph><subparagraph id="ID88CAB6E9B8B342C0931B0C3E097C12EF"><enum>(B)</enum><header>Certain rules
to apply</header><text>In the case of a separation described in subparagraph
(A), the rules of section 1286 shall apply to the Build America bond as if it
were a stripped bond and to the credit under this section as if it were a
stripped coupon.</text>
</subparagraph></paragraph><paragraph id="ID836EB6D8F17A456C92B954F13C60B159"><enum>(6)</enum><header>Credits may be
transferred</header><text>Nothing in any law or rule of law shall be construed
to limit the transferability of the credit or bond allowed by this section
through sale and repurchase agreements.</text>
</paragraph><paragraph id="IDF3C53E884E87409E8568BFDEB621A4F9"><enum>(7)</enum><header>Reporting</header><text>The
Transportation Finance Corporation shall submit reports similar to the reports
required under section 149(e).</text>
</paragraph><paragraph id="ID333e7a7ca0444d34b32a99ff4de7abe6"><enum>(8)</enum><header>Prohibition on
use of highway trust fund</header><text>Notwithstanding any other provision of
law, no funds derived from the Highway Trust Fund established under section
9503 shall be used to pay for credits under this section or for the
administrative costs of the Transportation Finance
Corporation.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID908ECA6582494F91A6EACC2A575F3876"><enum>(b)</enum><header>Reporting</header><text>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
new paragraph:</text>
<quoted-block id="ID7651C2CF727C4CBB9F702B6FEB413F00">
<paragraph id="IDFC69BD3D247A4412AE82C56F79264DC3"><enum>(9)</enum><header>Reporting of
credit on Build America bonds</header>
<subparagraph id="ID23928131287941A6B57D4402D6A7B93D"><enum>(A)</enum><header>In
general</header><text>For purposes of subsection (a), the term
<term>interest</term> includes amounts includible in gross income under section
54A(d) and such amounts shall be treated as paid on the credit allowance date
(as defined in section 54A(b)(4)).</text>
</subparagraph><subparagraph id="ID3D92EC42E0364BCFBE417ADDD67352BB"><enum>(B)</enum><header>Reporting to
corporations, etc</header><text>Except as otherwise provided in regulations, in
the case of any interest described in subparagraph (A), subsection (b)(4) shall
be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i)
of such subsection.</text>
</subparagraph><subparagraph id="ID1EF551C428224701993D9FFA6A6F0DD9"><enum>(C)</enum><header>Regulatory
authority</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idDD93E5D52EAA47B2A02FCE79BFF8FCEA"><enum>(c)</enum><header>Conforming
amendment</header><text>Section 54(c)(2) of the Internal Revenue Code of 1986
is amended by inserting <quote>section 54A,</quote> after <quote>subpart
C,</quote>.</text>
</subsection><subsection id="IDDC4F2C68408E4ED1BE5C8955EE0E019F"><enum>(d)</enum><header>Clerical
amendments</header><text>The table of sections for subpart H of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="id25919067AF4A46B7866BD4F463B89B86" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 54A. Credit for holders of
Build America
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID06FC5E54BBF74ABEA75BB704C7C4E146"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section id="ID58E4DB66F309432BB3CA5F608498DE53"><enum>302.</enum><header>Transportation
Finance Corporation</header>
<subsection id="IDD17B4D56DA054095A55FCE2C6059E448"><enum>(a)</enum><header>Recognition and
status</header><text>Congress grants consent and recognition to the
establishment by 2 or more State infrastructure banks (established under
section 610 of title 23, United States Code) of a multistate organization to be
known as the <quote>Transportation Finance Corporation</quote> (hereafter in
this section referred to as the <quote>Corporation</quote>). Additional State
infrastructure banks may join the Transportation Finance Corporation subsequent
to its establishment.</text>
</subsection><subsection id="IDE26DF64DBD5F4B56B30E672AC6450C55"><enum>(b)</enum><header>Functions of
Corporation</header><text>The Corporation—</text>
<paragraph id="ID55AFB0AB5E00424FBADA947147AA98FA"><enum>(1)</enum><text>is authorized to
issue Build America bonds for the financing of qualified projects as required
under section 54A of the Internal Revenue Code of 1986,</text>
</paragraph><paragraph id="IDCC441EBC9A9A47E8B3D97F173C518A7F"><enum>(2)</enum><text>is authorized to
establish and operate the Build America Bonds Trust Account as required under
section 54A(k) of such Code,</text>
</paragraph><paragraph id="idEC8722ED59D24DBBACB5456250DD6AE3"><enum>(3)</enum><text>is authorized to
act as a centralized entity to provide financing for qualified projects (as
defined in section 54A(f) of such Code),</text>
</paragraph><paragraph id="id20D7935E98F5445EAB3E0F7199552C99"><enum>(4)</enum><text>may—</text>
<subparagraph id="ID91322158E6D747FAB1EF84FE5415A270"><enum>(A)</enum><text>leverage
resources and stimulate public and private investment in transportation
infrastructure,</text>
</subparagraph><subparagraph id="ID2714AEA0EC274ACDBEB8F1AD7CA6F82F"><enum>(B)</enum><text>encourage States
to create additional opportunities for the financing of transportation
infrastructure,</text>
</subparagraph><subparagraph id="IDCBC3E03468854364A1AC00DF4451B704"><enum>(C)</enum><text>perform any other
function the sole purpose of which is to carry out the financing of qualified
projects through Build America bonds, and</text>
</subparagraph></paragraph><paragraph id="ID667A4D016A1E49FB92A64AC8301C9768"><enum>(5)</enum><text>not later than
February 15 of each year shall submit a report to Congress describing the
activities of the Corporation for the preceding year.</text>
</paragraph></subsection><subsection id="IDC4014868DA054D04BA435F31E6954C59"><enum>(c)</enum><header>Exemption from
taxes</header>
<paragraph id="ID4AEB6A858D7E402FAB5F13391A030336"><enum>(1)</enum><header>In
general</header><text>The Corporation, including its franchise, capital,
reserves, surplus, sinking funds, mortgages or other security holdings, and
income, shall be exempt from all taxation now or hereafter imposed by the
United States, by any territory, dependency, or possession thereof, or by any
State, county, municipality, or local taxing authority, except that any real
property of the Corporation shall be subject to State, territorial, county,
municipal, or local taxation to the same extent according to its value as other
real property is taxed.</text>
</paragraph><paragraph id="ID796771F9C32840088B00A6FB93ED6607"><enum>(2)</enum><header>Financial
obligations</header><text>Build America bonds or other obligations issued by
the Corporation and the interest on or tax credits with respect to its bonds or
other obligations shall not be subject to taxation by any State, county,
municipality, or local taxing authority.</text>
</paragraph></subsection><subsection id="ID9F5A1766A1274E73AA9575763F1D3A61"><enum>(d)</enum><header>Construction
regarding recognition and status</header>
<paragraph id="ID47321C2633C04F9D9202E5CF3EF1631A"><enum>(1)</enum><header>In
general</header><text>Nothing in this section shall be construed to establish
the Corporation as a department, agency, or instrumentality of the United
States Government, to establish the members of any governing board or the
officers and employees of the Corporation, as officers or employees of the
United States Government, or to subject the Corporation to the provisions of
title 31, United States Code.</text>
</paragraph><paragraph id="ID0333650f61554a1e8db61f62ecf9f4be"><enum>(2)</enum><header>United States
not obligated</header><text>The deposit of Federal funds into the Build America
Bonds Trust Account established under section 54A(k) of the Internal Revenue
Code of 1986 shall not be construed as a commitment, guarantee, or obligation
on the part of the United States to any third party, nor shall any third party
have any right against the United States for payment solely by virtue of the
contribution. Any security or debt-financing instrument issued by the
Corporation shall expressly state that the security or instrument does not
constitute a commitment, guarantee, or obligation of the United States.</text>
</paragraph></subsection></section></subtitle><subtitle id="id0C3DBAE2258141D4860D8D6D4338B8B8"><enum>B</enum><header>Commercial Truck
Fuel Savings</header>
<section id="idE648E65F14814B2BB340AFB9EE244343"><enum>311.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Commercial Truck Fuel Savings Demonstration Act of
2008</quote>.</text>
</section><section id="IDCDBEE7AD14A04DBCAB257C16EA19E73D"><enum>312.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds that—</text>
<paragraph id="ID7BA80D015FE04F6B98ABF22184626E4B"><enum>(1)</enum><text>diesel fuel
prices have increased more than 50 percent during the 1-year period between May
2007 and May 2008;</text>
</paragraph><paragraph id="IDE47FD520D68D42D79462063201A872B1"><enum>(2)</enum><text>laws governing
Federal highway funding effectively impose a limit of 80,000 pounds on the
weight of vehicles permitted to use highways on the Interstate System;</text>
</paragraph><paragraph id="ID3FED0E85BEC544E7B2826C42CBD270CF"><enum>(3)</enum><text>the
administration of that provision in many States has forced heavy
tractor-trailer and tractor-semitrailer combination vehicles traveling in those
States to divert onto small State and local roads on which higher vehicle
weight limits apply under State law;</text>
</paragraph><paragraph id="ID85602A4AC8EC4A51961779A694CD00EB"><enum>(4)</enum><text>the diversion of
those vehicles onto those roads increases fuel costs because of increased
idling time and total travel time along those roads; and</text>
</paragraph><paragraph id="ID7D2ED16F120444FFAE5FF19B00877E14"><enum>(5)</enum><text>permitting heavy
commercial vehicles, including tanker trucks carrying hazardous material and
fuel oil, to travel on Interstate System highways when fuel prices are high
would provide significant savings in the transportation of goods throughout the
United States.</text>
</paragraph></section><section id="IDC5989916FD454C59A01C79B345C532CF"><enum>313.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="id8B9B78F237CD4B06A18EE989B5300025"><enum>(1)</enum><header>Commissioner</header><text>The
term <term>Commissioner</term> means the Commissioner of Transportation of a
State.</text>
</paragraph><paragraph id="id66994280827C47E8829FFC282E0BC365"><enum>(2)</enum><header>Covered
interstate system highway</header>
<subparagraph id="id68B8CDC9AA9348EB8A5A5E6FE33E11F1"><enum>(A)</enum><header>In
general</header><text>The term <term>covered Interstate System highway</term>
means a highway designated as a route on the Interstate System.</text>
</subparagraph><subparagraph id="idF831C828C14E4C45AFD73AE5A4C5CA07"><enum>(B)</enum><header>Exclusion</header><text>The
term <term>covered Interstate System highway</term> does not include any
portion of a highway that, as of the date of the enactment of this Act, is
exempt from the requirements of subsection (a) of section 127 of title 23,
United States Code, pursuant to a waiver under that subsection.</text>
</subparagraph></paragraph><paragraph id="IDB8F5FF1E6DE34B138DBB829B004222A7"><enum>(3)</enum><header>Interstate
system</header><text>The term <term>Interstate System</term> has the meaning
given the term in section 101(a) of title 23, United States Code.</text>
</paragraph></section><section id="ID2D13BB047C39476BB700F25B3E616F9C"><enum>314.</enum><header>Waiver of
highway funding reduction relating to weight of vehicles using Interstate
System highways</header>
<subsection id="IDBB7102EC81D84D049BEE77144CEE2D72"><enum>(a)</enum><header>Prohibition
relating to certain vehicles</header><text>Notwithstanding section 127(a) of
title 23, United States Code, the total amount of funds apportioned to a State
under section 104(b)(1) of that title for any period may not be reduced under
section 127(a) of that title if a State permits a vehicle described in
subsection (b) to use a covered Interstate System highway in the State in
accordance with the conditions described in subsection (c).</text>
</subsection><subsection id="ID352D66DF5AFF4AA3B2485B71E370C33C"><enum>(b)</enum><header>Combination
vehicles in excess of 80,000 pounds</header><text>A vehicle described in this
subsection is a vehicle having a weight in excess of 80,000 pounds that—</text>
<paragraph id="IDD33D7526A4CF4E759332827D43DCC22D"><enum>(1)</enum><text>consists of a
3-axle tractor unit hauling a single trailer or semitrailer; and</text>
</paragraph><paragraph id="IDCD794927363D4E5A88054C1D79A6FF97"><enum>(2)</enum><text>does not exceed
any vehicle weight limitation that is applicable under the laws of a State to
the operation of the vehicle on highways in the State that are not part of the
Interstate System, as those laws are in effect on the date of enactment of this
Act.</text>
</paragraph></subsection><subsection id="id797E5E37BF4C453E968A21C723162FD9"><enum>(c)</enum><header>Conditions</header><text>This
section shall apply at any time at which the weighted average price of retail
number 2 diesel in the United States is $3.50 or more per gallon.</text>
</subsection><subsection id="IDF11DED86A1BF4CEF83992B3044923B30"><enum>(d)</enum><header>Effective date
and termination</header><text>This section shall not remain in effect—</text>
<paragraph id="id7D50F59A7E344AEEA5A424EA5E194034"><enum>(1)</enum><text>after the date
that is 2 years after the date of enactment of this Act; or</text>
</paragraph><paragraph id="id09091268473A4635B2907C9327BA6753"><enum>(2)</enum><text>before the end of
that 2-year period, after any date on which the Secretary of
Transportation—</text>
<subparagraph id="IDB2A368A8AA4C4A3F8919EE1B7FF353F4"><enum>(A)</enum><text>determines
that—</text>
<clause id="IDD29A183503234BA09BEA9DB93C69A8CD"><enum>(i)</enum><text>operation of
vehicles described in subsection (b) on covered Interstate System highways has
adversely affected safety on the overall highway network; or</text>
</clause><clause id="IDAA8D40E763674078ACBE928557E3D045"><enum>(ii)</enum><text>a
Commissioner has failed faithfully to use the highway safety committee as
described in section 316(2)(A) or to collect the data described in section
316(3); and</text>
</clause></subparagraph><subparagraph id="IDFB23FC31F51F42428860B6B35CF57350"><enum>(B)</enum><text>publishes the
determination, together with the date of termination of this section, in the
Federal Register.</text>
</subparagraph></paragraph></subsection><subsection id="ID9CE7B845D33A4A17B49D87B0DCC64C1E"><enum>(e)</enum><header>Consultation
regarding termination for safety</header><text>In making a determination under
subsection (d)(2)(A)(i), the Secretary of Transportation shall consult with the
highway safety committee established by a Commissioner in accordance with
section 316.</text>
</subsection></section><section id="ID6FFC5F167D8E4D4EBFA28CD6AC820033"><enum>315.</enum><header>GAO truck
safety demonstration report</header><text display-inline="no-display-inline">The Comptroller General of the United States
shall carry out a study of the effects of participation in the program under
section 314 on the safety of the overall highway network in States
participating in that program.</text>
</section><section id="ID1391A6BD3E244C6A97E95BA46E23A03F"><enum>316.</enum><header>Responsibilities
of States</header><text display-inline="no-display-inline">For the purpose of
section 314, a State shall be considered to meet the conditions under this
section if the Commissioner of the State—</text>
<paragraph id="ID9224EE7DD44F49ED8170EEBA47597DAC"><enum>(1)</enum><text>submits to the
Secretary of Transportation a plan for use in meeting the conditions described
in paragraphs (2) and (3);</text>
</paragraph><paragraph id="ID4E1F7E168C2A48EFBB8BCFB0F7B26E3F"><enum>(2)</enum><text>establishes and
chairs a highway safety committee that—</text>
<subparagraph id="IDAA7563E15BA04C6900F76E00089EB473"><enum>(A)</enum><text>the Commissioner
uses to review the data collected pursuant to paragraph (3); and</text>
</subparagraph><subparagraph id="IDDCF919C2A3394D7EBA9C7EF3C651C105"><enum>(B)</enum><text>consists of
representatives of—</text>
<clause id="ID17FA05602E1841E899330081616742F9"><enum>(i)</enum><text>agencies of the
State that have responsibilities relating to highway safety;</text>
</clause><clause id="ID912CE11ACDC64923A4AB63FECB5EA43F"><enum>(ii)</enum><text>municipalities
of the State;</text>
</clause><clause id="IDBA41998528CB44BEB28E7B1D00006824"><enum>(iii)</enum><text>organizations
that have evaluation or promotion of highway safety among the principal
purposes of the organizations; and</text>
</clause><clause id="ID7420A6D6F92E403189801B88507D01D2"><enum>(iv)</enum><text>the commercial
trucking industry; and</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID60CA4699203C4806822B59C027D3F540"><enum>(3)</enum><text>collects data on
the net effects that the operation of vehicles described in section 314(b) on
covered Interstate System highways have on the safety of the overall highway
network, including the net effects on single-vehicle and multiple-vehicle
collision rates for those vehicles.</text>
</paragraph></section></subtitle><enum>IV</enum><header>Workforce
development</header>
<section id="id4D65371267224576A351B24D4303DB23"><enum>401.</enum><header>Statewide and
local workforce investment systems</header><text display-inline="no-display-inline">Section 137 of the Workforce Investment Act
of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2872">29 U.S.C.
2872</external-xref>) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="IDE7F2C04DE98A4A73AE34732BE2FE634D" style="OLC">
<section id="IDED991730713C4D01992BEA6CD8C9EB03"><enum>137.</enum><header>Authorization
of appropriations</header>
<subsection id="ID1BE2C20EA2774CFA90486E8C9639A5B8"><enum>(a)</enum><header>Youth
activities</header>
<paragraph id="ID5C85B17549DD4C43BC663B00BFAE242E"><enum>(1)</enum><header>Fiscal year
2009</header><text>There is authorized to be appropriated and there is
appropriated to carry out the activities described in section 127(a),
$1,174,000,000 for fiscal year 2009.</text>
</paragraph><paragraph id="IDE00838B8965A405ABB36216F76E89168"><enum>(2)</enum><header>Fiscal year
2010</header><text>There are authorized to be appropriated to carry out the
activities described in section 127(a), such sums as may be necessary for
fiscal year 2010.</text>
</paragraph></subsection><subsection id="ID4682F636D2174698B69459EC33C0DC19"><enum>(b)</enum><header>Adult
employment and training activities</header>
<paragraph id="IDBD3D2518A3764E359F5E42F5C09FB7EA"><enum>(1)</enum><header>Fiscal year
2009</header><text>There is authorized to be appropriated and there is
appropriated to carry out the activities described in section 132(a)(1),
$1,099,000,000 for fiscal year 2009.</text>
</paragraph><paragraph id="IDCE55B43E002B450FB1C3DA64E31B5C63"><enum>(2)</enum><header>Fiscal year
2010</header><text>There are authorized to be appropriated to carry out the
activities described in section 132(a)(1), such sums as may be necessary for
fiscal year 2010.</text>
</paragraph></subsection><subsection id="ID3377552471814A3198A06458E15952E6"><enum>(c)</enum><header>Dislocated
worker employment and training activities</header>
<paragraph id="ID2CCE51DE8EEA4E85BCAF82EE08D30735"><enum>(1)</enum><header>Fiscal year
2009</header><text>There is authorized to be appropriated and there is
appropriated to carry out the activities described in section 132(a)(2),
$1,945,000,000 for fiscal year 2009.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4B2ED3869F054604A731DE2800000063"><enum>(2)</enum><header>Fiscal year
2010</header><text>There are authorized to be appropriated to carry out the
activities described in section 132(a)(2), such sums as may be necessary for
fiscal year
2010.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>V</enum><header>Housing
provisions</header>
<section id="idFDC5E2407E46479EA56F13643256CAE7" section-type="subsequent-section"><enum>501.</enum><header>Insurance of
homeownership retention mortgages</header>
<subsection id="ID4fe08da0220e418e9b2798c29d62356a"><enum>(a)</enum><header>Mortgage
insurance program</header><text>Title II of the National Housing Act (12 U.S.C.
1707 et seq.) is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="idDE2DA6E0E4D94A86A44076B4462B22E8" style="OLC">
<section id="ID31af56a03a8843d19d1b385e6c4a0ccf"><enum>257.</enum><header>Insurance of
homeownership retention mortgages</header>
<subsection id="IDe62ced1dc3d3417e8806ef9c4fb8836f"><enum>(a)</enum><header>Authority</header>
<paragraph id="IDab4156d415f2486799c4b48dd546b81d"><enum>(1)</enum><header>In
general</header><text>The Secretary shall, subject only to the absence of
qualified request for insurance under this section and to the limitations under
subsection (e) of this section and section 531(a), make commitments to insure
and insure any mortgage covering a 1- to 4-family residence that is made for
the purpose of paying or prepaying outstanding obligations under an existing
mortgage or mortgages on the residence if the mortgage being insured under this
section meets the requirements of this section, as established by the
Secretary, and of section 203, except as modified by this section.</text>
</paragraph><paragraph id="ID678862448f174343a9f0f606eb1dcafb"><enum>(2)</enum><header>Establishment
and implementation of program requirements</header><text>The Secretary shall
establish program requirements and standards under this section and the
Secretary shall implement such requirements and standards. The Secretary may
establish and implement any requirements or standards through interim guidance
and mortgage letters.</text>
</paragraph></subsection><subsection id="IDa37fdded7fd6464e82fcaa41ee8243ef"><enum>(b)</enum><header>Requirements</header><text>To
be eligible for insurance under this section, a mortgage shall comply with all
of the following requirements:</text>
<paragraph id="IDada2d69b10e848f6a36d3624f268765d"><enum>(1)</enum><header>Owner occupied
principal residence requirement</header><text>The residence to be covered by
the mortgage insured under this section shall be occupied by the mortgagor as
the principal residence of the mortgagor.</text>
</paragraph><paragraph id="ID99b165ec00b04450ba3f5e6e91fa8e70"><enum>(2)</enum><header>Lack of
capacity to pay existing mortgage or mortgages</header>
<subparagraph id="IDd4c6aea477104e729f851e519b16d7bb"><enum>(A)</enum><header>Borrower
certification</header><text>The mortgagor shall provide a certification to the
originator of the mortgage that the mortgagor has not intentionally defaulted
on the existing mortgage or mortgages.</text>
</subparagraph><subparagraph id="ID76a0d5bf9d9d4815b83c34dbe52c4855"><enum>(B)</enum><header>Loss mitigation
responsibilities</header><text>This section may not be construed to alter or in
any way affect the responsibilities of any party (including the mortgage
servicer) to engage in any or all loan modification or other loss mitigation
strategies to maximize value to investors as established by any applicable
contract.</text>
</subparagraph></paragraph><paragraph id="IDbd53691c831a4ca2a4bd38421f4c00c5"><enum>(3)</enum><header>Eligibility of
mortgages by date of origination</header><text>The existing senior mortgage
shall have been originated on before December 31, 2007.</text>
</paragraph><paragraph id="ID6f714f20e2054a27b7a2c027e334df8b"><enum>(4)</enum><header>Maximum loan to
value ratio for new loans</header><text>The mortgage being insured under this
section shall involve a principal obligation (including such initial service
charges, appraisal, inspection, and other fees as the Secretary shall approve
and including the mortgage insurance premium paid pursuant to subsection
(d)(1)) in an amount not to exceed 90 percent of the current appraised value of
the property. Section 203(d) shall not apply to mortgages insured under this
section.</text>
</paragraph><paragraph id="IDa636d3e60fdc49a6ac468b45d540277b"><enum>(5)</enum><header>Required waiver
of prepayment penalties and fees</header><text>All penalties for prepayment of
the existing mortgage or mortgages, and all fees and penalties related to
default or delinquency on all existing mortgage or mortgages, shall be waived
or forgiven.</text>
</paragraph><paragraph id="ID375d8d53d9444430b02b4c05ad78bed7"><enum>(6)</enum><header>Required loan
reduction</header>
<subparagraph id="ID3bdd24f4fe85456fa8d43b086dda5ad0"><enum>(A)</enum><header>Reduction of
indebtedness under existing senior mortgage</header><text>The amount of
indebtedness on the existing mortgage or mortgages on the residence shall have
been substantially reduce by such percentage as the Secretary may require, and
such reduction shall at least be sufficient to—</text>
<clause id="ID7cb4b4adf4494467b91ad4e6712a62ce"><enum>(i)</enum><text>provide for the
refinancing of such existing mortgage or mortgages in an amount not greater
than 90 percent of the current appraised value of the property involved;</text>
</clause><clause id="ID1921700a167648ae9e35b59e1e1cacdc"><enum>(ii)</enum><text>pay the full
amount of the single premium to be collected pursuant to subsection (d)(1)
(which shall be an amount up to 3.0 percent of the amount of the original
insured principal obligation of the mortgage insured under this section and
which shall serve as an additional reserve to cover possible loan losses);
and</text>
</clause><clause id="ID5c3b8200db1e4f07aa2463e6f7cf9d26"><enum>(iii)</enum><text>pay the full
amount of the loan origination fee and any other closing costs, not to exceed
2.0 percent of the amount of the original insured principal obligation of the
mortgage insured under this section.</text>
</clause></subparagraph><subparagraph id="ID03a319914f2c46faa294e78a78666dd8"><enum>(B)</enum><header>Extinguishment
of debt by refinancing</header>
<clause id="IDb6edcbd49130490785e4495dc25324f6"><enum>(i)</enum><header>Required
agreement</header><text>All existing holders of mortgage liens on the property
involved shall agree to accept the proceeds of the insured loan as payment in
full of all indebtedness under all existing mortgages, and all encumbrances
related to such mortgages shall be removed. The Secretary may take such action
as the Secretary considers necessary or appropriate to facilitate coordination
and agreement between the holders of the existing senior mortgage and any
existing subordinate mortgages, taking into consideration the subordinate lien
status of such subordinate mortgages, to comply with the requirement under this
subparagraph.</text>
</clause><clause id="ID4b5dca33656f4b3eb6fa88c6ef076235"><enum>(ii)</enum><header>Treatment of
multiple mortgage liens</header><text>In addition to clause (i), the Secretary
shall adopt 1 of the following approaches for all mortgages or such classes of
mortgages as the Secretary may determine and may, from time to time,
reconsider:</text>
<subclause id="IDd565e2371128433ba9fcee964e3d5521"><enum>(I)</enum><header>Fixed
price</header><text>As a requirement for participation in this program, all
existing lien holders will agree to not provide any payment to subordinate lien
holders other than such payment in accordance with a formula established by the
Secretary as set forth in clause (iii); except that the Secretary may establish
a short period within which first and subordinate lien holders may negotiate to
extinguish all subordinate liens for compensation that may be different from
the amount determined under such formula set forth in clause (iii).</text>
</subclause><subclause id="ID0a6bb139643d4d05bdce764334921a45"><enum>(II)</enum><header>Shared
equity</header><text>The Secretary may require the mortgagor under a mortgage
insured under this section to agree to share a portion of any future equity in
the mortgaged property with holders of existing subordinate mortgages, in
accordance with a formula for such shared equity established by the Secretary
as set forth in clause (iii), except that payments of such shared equity may be
made only after the Secretary recovers all amounts owed to the Secretary with
respect to such mortgage pursuant to the program under this section (including
amounts owed pursuant to paragraph (8)).</text>
</subclause></clause><clause id="ID8abe8bc2522c446c9f8ef30d2315be52"><enum>(iii)</enum><header>Formula</header><text>In
determining a formula for determining any payments to subordinate lien holders
pursuant to subclauses (I) and (II) of clause (ii), and in any reconsideration
of such formula as the Secretary may from time to time undertake, the Secretary
shall take into consideration the current market value of such liens.</text>
</clause><clause id="IDdab5426815704c80899df96eba440b6c"><enum>(iv)</enum><header>Voluntary
program</header><text>This subparagraph may not be construed to require any
holder of any existing mortgage to participate in the program under this
section generally, or with respect to any particular loan.</text>
</clause><clause id="IDb8162885e28e4bdebe7e9f61a38f9e2a"><enum>(v)</enum><header>Source of
payments for subordinate loans</header><text>Any amounts paid to holders of any
existing subordinate mortgages in connection with the origination and insurance
of a mortgage under this section shall derive only from—</text>
<subclause id="IDad34bd6eaa444760913fb8743c544a88"><enum>(I)</enum><text>the holder of the
existing senior mortgage; or</text>
</subclause><subclause id="ID324737da5c2a4724a9a1afa4f292866c"><enum>(II)</enum><text>in the case only
of the shared equity approach under clause (ii)(II), the mortgagor under the
mortgage insured under this section.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID5ce39b563e444f8b9aaeea23231a5f34"><enum>(7)</enum><header>Required
reduction of debt service</header><text>The debt service payments due under the
mortgage insured under this section shall be in an amount that is substantially
reduced from the debt service payments due under the existing mortgage or
mortgages, which reduction may be achieved through a reduction of indebtedness,
a reduction in the interest rate being paid, or an extension of the term of the
mortgage, or any combination thereof.</text>
</paragraph><paragraph id="ID411661d398d54fb185d9dc4baa2f5dc0"><enum>(8)</enum><header>Financial
recovery to Federal government through exit premium</header>
<subparagraph id="IDf700f376333246cb8c988111334987fe"><enum>(A)</enum><header>Subordinate
lien</header><text>The mortgage shall provide that the Secretary shall retain a
lien on the residence involved, which shall be subordinate to the mortgage
insured under this section but senior to all other mortgages on the residence
that may exist at any time, and which shall secure the repayment of the amount
due under subparagraph (D).</text>
</subparagraph><subparagraph id="ID52c9b212ed504697add249c350b7b261"><enum>(B)</enum><header>No interest or
payment during mortgage</header><text>The amount secured by the lien retained
by the Secretary pursuant to subparagraph (A) shall not bear interest and shall
not be repayable to the Secretary except as provided in subparagraph (D) of
this paragraph.</text>
</subparagraph><subparagraph id="ID9082f3950a224c9dbcf0b24b806d3efc"><enum>(C)</enum><header>Net proceeds
available for exit premium</header><text>Upon the sale, refinancing, or other
disposition of the residence covered by a mortgage insured under this section,
any proceeds resulting from such disposition that remain after deducting the
remaining insured principal balance of the mortgage insured under this section
shall be available to meet the obligation under subparagraph (D).</text>
</subparagraph><subparagraph id="ID368b1a4a89ad429786cf014c8cd48410"><enum>(D)</enum><header>Exit
premium</header><text>Upon any refinancing of the mortgage insured under this
section or any sale or disposition of the residence covered by the mortgage,
the Secretary shall, subject to the availability of sufficient net proceeds in
subparagraph (C), receive the greater of—</text>
<clause id="ID52b0e4fd34134fec8f828f8493169188"><enum>(i)</enum><text>3
percent of the amount of the original insured principal obligation of the
mortgage; or</text>
</clause><clause id="IDfef54449f67c45e19d8321c3e15fb31c"><enum>(ii)</enum><text>a percentage of
the portion of the net proceeds described in subparagraph (C), which shall
be—</text>
<subclause id="ID0dd8aa695472448a8237ff1a6c732019"><enum>(I)</enum><text>in the case of
any refinancing, sale, or disposition occurring during the first year of the
term of the mortgage, 100 percent of such net proceeds;</text>
</subclause><subclause id="ID74a78979c148497c827268a82dda36e7"><enum>(II)</enum><text>in the case of
any refinancing, sale, or disposition occurring during the second year of the
term of the mortgage, 80 percent;</text>
</subclause><subclause id="ID7c8079234c234023b3558775c8c1125f"><enum>(III)</enum><text>in the case of
any refinancing, sale, or disposition occurring during the third year of the
term of the mortgage, 60 percent;</text>
</subclause><subclause id="IDc9f0b66415b64358a73bf7c22efd84d1"><enum>(IV)</enum><text>in the case of
any refinancing, sale or disposition occurring during the fourth year of the
term of the mortgage, 40 percent;</text>
</subclause><subclause id="IDe987497b2aca4998b1002ab94b1b9ecc"><enum>(V)</enum><text>in the case of
any refinancing, sale, or disposition occurring during the fifth year of the
term of the mortgage, 20 percent; and</text>
</subclause><subclause id="IDa321801da0ad4791a200050bee6027fb"><enum>(VI)</enum><text>in the case of
any refinancing, sale, or disposition occurring after the end of the fifth
year, 0 percent.</text>
</subclause></clause></subparagraph><subparagraph id="ID4722b8a1a7a84326aa810bc2243c38a1"><enum>(E)</enum><header>Authority to
prohibit new second liens</header><text>The Secretary may prohibit borrowers
from granting a new second lien on the mortgaged property during the first 5
years of the term of the mortgage insured under this section.</text>
</subparagraph></paragraph><paragraph id="IDe06db3a7da2741858283f2605a1cbf7b"><enum>(9)</enum><header>Documentation
and verification of income</header><text>In complying with the FHA underwriting
requirements under the program under this section, the mortgagee under the
mortgage shall document and verify the income of the mortgagor in accordance
with procedures and standards that the Secretary shall establish.</text>
</paragraph><paragraph id="ID08f09102caad4f4489f56fe0d09c6087"><enum>(10)</enum><header>Fixed rate
mortgage</header><text>The mortgage insured under this section shall bear
interest at a single rate that is fixed for the entire term of the
mortgage.</text>
</paragraph></subsection><subsection id="ID36f30a6e2f1648ffa9ff2aaf9531a9c6"><enum>(c)</enum><header>Flexible
underwriting criteria</header><text>The Secretary shall establish underwriting
standards for mortgages insured under this section that—</text>
<paragraph id="ID02020334998f42ba974edaa7a41dc5ed"><enum>(1)</enum><text>ensure that each
mortgagor under a mortgage insured under this section has a reasonable
expectation of repaying the mortgage, taking into consideration the mortgagor’s
income, assets, liabilities, payment history, and other applicable criteria;
and</text>
</paragraph><paragraph id="ID2cb44a611c864a528d0a3c2f6123f2c4"><enum>(2)</enum><text>provide for the
underwriter of the insured loan to provide such representations and warranties
as the Secretary considers necessary or appropriate for the Secretary to
enforce compliance with all underwriting and appraisal standards of the
program.</text>
</paragraph></subsection><subsection id="ID5c8ad44062424b52b2c96d4fcd619214"><enum>(d)</enum><header>Premiums</header><text>For
each mortgage insured under this section, the Secretary shall establish and
collect—</text>
<paragraph id="ID8b8be5dd15ba484a8c423787d79aff90"><enum>(1)</enum><text>at the time of
insurance, a single premium payment in an amount up to 3.0 percent of the
amount of the original insured principal obligation of the mortgage, which
shall be paid from the proceeds of the mortgage being insured under this
section, through the reduction of the amount of indebtedness on the existing
senior mortgage required under subsection (b)(6)(A);</text>
</paragraph><paragraph id="IDbc5797c557c844f885d295c38ee57bba"><enum>(2)</enum><text>in addition to
the premium under paragraph (1), annual premium payments in an amount up to
1.50 percent of the remaining insured principal balance of the mortgage;
and</text>
</paragraph><paragraph id="ID579c372095e94713bbc489f58a936564"><enum>(3)</enum><text>an exit premium
in the amount determined under subsection (b)(8), but which shall not be less
than 3.0 percent of the original insured principal obligation of the mortgage,
subject only to the availability of sufficient net proceeds from sale,
refinancing, or other disposition of the property, as determined in subsection
(b)(8).</text>
</paragraph></subsection><subsection id="ID082feb8a2887495a8bc615e7570e4dea"><enum>(e)</enum><header>Limitation on
aggregate insurance authority</header><text>The aggregate original principal
obligation of all mortgages insured under this section may not exceed
$300,000,000,000.</text>
</subsection><subsection id="IDf9ef4d8f63b2487d8f1d35bc844c4a00"><enum>(f)</enum><header>Enhancement of
FHA capacity</header><text>The Secretary shall take such actions as may be
necessary to—</text>
<paragraph id="ID8b3db713d66e4029818f9c981f28be55"><enum>(1)</enum><text>contract for the
establishment of underwriting criteria, automated underwriting systems, pricing
standards, and other factors relating to eligibility for mortgages insured
under this section;</text>
</paragraph><paragraph id="ID6d67e1d18b184609aa9854ba9225b186"><enum>(2)</enum><text>contract for
independent quality reviews of underwriting, including appraisal reviews and
fraud detection, of mortgages insured under this section or pools of such
mortgages; and</text>
</paragraph><paragraph id="IDebc63a0568a84d9f82730a9f084283ef"><enum>(3)</enum><text>increase
personnel of the Department as necessary to process or monitor the processing
of mortgages insured under this section.</text>
</paragraph></subsection><subsection id="ID98f805777da3486d96898877983fa7e2"><enum>(g)</enum><header>Monitoring of
underwriting risk</header>
<paragraph id="ID22a66ff21897468fb349b778da0d1286"><enum>(1)</enum><header>Monitoring of
designated underwriters</header><text>The Secretary shall monitor independent
quality reviews as established pursuant to subsection (f)(2) to—</text>
<subparagraph id="ID68de546d37a846179dce42a838a9c998"><enum>(A)</enum><text>determine
compliance of designated underwriters with underwriting standards;</text>
</subparagraph><subparagraph id="ID099aaacf8ac64b80ab8498c3542eedc8"><enum>(B)</enum><text>determine rates
of delinquency, claims rates, and loss rates of designated underwriters;
and</text>
</subparagraph><subparagraph id="IDbbbf357259b24435bbcbdf4faf94777f"><enum>(C)</enum><text>terminate
eligibility of designated underwriters that do not meet minimum performance
standards as the Secretary may establish and implement.</text>
</subparagraph></paragraph><paragraph id="IDad2e717d832e4691b0a24c6632b0b105"><enum>(2)</enum><header>Reports by
oversight board</header><text>The Secretary shall submit monthly reports to
Congress identifying the progress of the program for mortgage insurance under
this section, which shall contain the following information for each
month:</text>
<subparagraph id="ID7019c325ce444a6b80b5871c0840c7ec"><enum>(A)</enum><text>The number of new
mortgages insured under this section, including the location of the properties
subject to such mortgages by census tract.</text>
</subparagraph><subparagraph id="ID27f6c5b9f7fe40efba4117d6fcad969a"><enum>(B)</enum><text>The aggregate
principal obligation of new mortgages insured under this section.</text>
</subparagraph><subparagraph id="ID1fe5d611beef41c087d33a95ecc0bea7"><enum>(C)</enum><text>The average
amount by which the indebtedness on existing mortgages is reduced in accordance
with subsection (b)(6).</text>
</subparagraph><subparagraph id="IDb7f98b38bcb64084a049b5a75416c99b"><enum>(D)</enum><text>The average
amount by which the debt service payments on existing mortgages is reduced in
accordance with subsection (b)(7).</text>
</subparagraph><subparagraph id="ID2d299de8ffd947a8ac88c48c3220aecd"><enum>(E)</enum><text>The amount of
premiums collected for insurance of mortgages under this section.</text>
</subparagraph><subparagraph id="ID35030cfc82ec4fb195b75b0a7a73b47a"><enum>(F)</enum><text>The claim and
loss rates for mortgages insured under this section.</text>
</subparagraph><subparagraph id="IDba658b5015324b89aff39fa3b2f6db0f"><enum>(G)</enum><text>The race,
ethnicity, gender, and income of the mortgagors, aggregated by geographic areas
at least as specific as census tracts, except where necessary to protect the
privacy of the borrower.</text>
</subparagraph><subparagraph id="ID2e586832c28b4393ad6806e3a32c34a7"><enum>(H)</enum><text>Any other
information that the Secretary considers appropriate.</text>
</subparagraph></paragraph><paragraph id="ID50639072ee444deeaf68f5c4ca53a2d2"><enum>(3)</enum><header>Report by
inspector general</header><text>The Inspector General of the Department of
Housing and Urban Development shall conduct an annual audit of the program for
mortgage insurance under this section to determine compliance with this section
and program rules.</text>
</paragraph></subsection><subsection id="ID2a7addb224b74094bb85925f3a9b1449"><enum>(h)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions apply:</text>
<paragraph id="ID229773cebb2142a88ad4a59ee4013990"><enum>(1)</enum><header>Existing
mortgage</header><text>The term <term>existing mortgage</term> means, with
respect to a mortgage insured under this section, a mortgage that is to be
extinguished, and paid or prepaid, from the proceeds of the mortgage insured
under this section.</text>
</paragraph><paragraph id="IDce65264d1d3d4843ad24c0acbd3db495"><enum>(2)</enum><header>Existing senior
mortgage</header><text>The term <term>existing senior mortgage</term> means,
with respect to a mortgage insured under this section, the existing mortgage
that has superior priority.</text>
</paragraph><paragraph id="ID76feb952c3e4451ba73f2c34d40305bf"><enum>(3)</enum><header>Existing
subordinate mortgage</header><text>The term <term>existing subordinate
mortgage</term> means, with respect to a mortgage insured under this section,
an existing mortgage that has subordinate priority to the existing senior
mortgage.</text>
</paragraph></subsection><subsection id="ID0ee89887c22e43779e931ec8f0a0d564"><enum>(i)</enum><header>Sunset</header><text>The
authority of the Secretary to make any new commitment to insure any mortgage
under this section shall terminate upon the expiration of the 2-year period
beginning on the date of the enactment of the <short-title>Economic Recovery Act of
2008</short-title>.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID79d45e3130fd462f963a1d59d58579a8"><enum>502.</enum><header>Study of
auction or bulk refinance program</header>
<subsection id="ID7f832996ad2645c7a28ab7c5a8850d6b"><enum>(a)</enum><header>Study</header><text>The
Board of Governors of the Federal Reserve System (in this section referred to
as the <quote>Board of Governors</quote>), in consultation with the Secretary
of Housing and Urban Development, shall conduct a study of the need for and
efficacy of an auction or bulk refinancing mechanism to facilitate refinancing
of existing residential mortgages that are at risk for foreclosure into
mortgages insured under the mortgage insurance program under title II of the
National Housing Act. The study shall identify and examine various options for
mechanisms under which lenders and servicers of such mortgages may make bids
for forward commitments for such insurance in an expedited manner.</text>
</subsection><subsection id="IDaec8f3c68c7f49e798026124a7b7da6e"><enum>(b)</enum><header>Content</header>
<paragraph id="IDffcc399d69824b40b3661cef9453cd86"><enum>(1)</enum><header>Analysis</header><text>The
study required under subsection (a) shall analyze—</text>
<subparagraph id="ID58e8b6b8672d43269870f4efb86b0f7f"><enum>(A)</enum><text>the feasibility
of establish a mechanism that would facilitate the more rapid refinancing of
borrowers at risk of foreclosure into performing mortgages insured under title
II of the National Housing Act;</text>
</subparagraph><subparagraph id="IDc5dbe3612b72407f8620a2328d4048d7"><enum>(B)</enum><text>whether such a
mechanism would provide an effective and efficient mechanism to reduce
foreclosures on qualified existing mortgages;</text>
</subparagraph><subparagraph id="IDdbff4b3a74254cfc9a1a9f5faa282674"><enum>(C)</enum><text>whether the use
of an auction or bulk refinance program is necessary to stabilize the housing
market and reduce the impact of turmoil in that market on the economy of the
United States;</text>
</subparagraph><subparagraph id="ID8f7c4862f6be4a81bf5a69e8747ce53c"><enum>(D)</enum><text>whether there are
other mechanisms or authority that would be useful to reduce foreclosure;
and</text>
</subparagraph><subparagraph id="ID51d09f9a67464b4eb7310f5871d08017"><enum>(E)</enum><text>any other factors
that the Board of Governors considers relevant.</text>
</subparagraph></paragraph><paragraph id="ID9ac3389127864cd7b0a517dd762d92c5"><enum>(2)</enum><header>Determinations</header><text>To
the extent that the Board of Governors finds that a facility of the type
described in paragraph (1) is feasible and useful, the study shall—</text>
<subparagraph id="ID9f64f7bb51ee4600b1619715568848a9"><enum>(A)</enum><text>determine and
identify any additional authority or resources needed to establish and operate
such a mechanism;</text>
</subparagraph><subparagraph id="ID719d859f4a9c409d8157f5d900905045"><enum>(B)</enum><text>determine whether
there is a need for additional authority with respect to the loan underwriting
criteria included in section 257 of the National Housing Act or with respect to
the eligibility of participating borrowers, lenders, or holders of liens;
and</text>
</subparagraph><subparagraph id="ID7174adf8a63a491aa6c740cfb50f2499"><enum>(C)</enum><text>determine whether
such underwriting criteria should be established on the basis of individual
loans, in the aggregate, or otherwise to facilitate the goal of refinancing
borrowers at risk of foreclosure into viable loans insured under the National
Housing Act.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDdf3c2c74973b4f3b852f1986e506f5fa"><enum>(c)</enum><header>Report</header><text>Not
later than the expiration of the 60-day period beginning on the date of the
enactment of this Act, the Board of Governors shall submit a report regarding
the results of the study conducted under this section to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate. The report shall include a
detailed description of the analyses required under subsection (b)(1) and the
determinations made pursuant to subsection (b)(2), and shall include any other
findings and recommendations of the Board of Governors pursuant to the study,
including identifying various options for mechanisms described in subsection
(a).</text>
</subsection></section>