[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1960 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1960

             To provide incentives to create American jobs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 7, 2011

 Ms. Collins (for herself and Mrs. McCaskill) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
             To provide incentives to create American jobs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Jobs Creation 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                        TITLE I--TAX INCENTIVES

                    Subtitle A--Payroll Tax Holiday

Sec. 101. Extension of payroll tax holiday.
Sec. 102. Temporary employer payroll tax cut.
                    Subtitle B--American Opportunity

Sec. 111. Short title.
Sec. 112. Angel investment tax credit.
              Subtitle C--Extension of Expiring Provisions

Sec. 121. Extension of bonus depreciation.
Sec. 122. Deduction for qualified tuition and related expenses.
Sec. 123. Research credit.
Sec. 124. 15-year straight-line cost recovery for qualified leasehold 
                            improvements, qualified restaurant 
                            buildings and improvements, and qualified 
                            retail improvements.
Sec. 125. Enhanced charitable deduction for contributions of food 
                            inventory.
Sec. 126. Enhanced charitable deduction for contributions of book 
                            inventories to public schools.
Sec. 127. Enhanced charitable deduction for corporate contributions of 
                            computer inventory for educational 
                            purposes.
                  TITLE II--INFRASTRUCTURE PROVISIONS

Sec. 201. Capitalization of State infrastructure banks.
Sec. 202. Highway infrastructure investment.
Sec. 203. State revolving loan funds.
                      TITLE III--REGULATORY REFORM

          Subtitle A--Clearing Unnecessary Regulatory Burdens

Sec. 301. Short title.
Sec. 302. Regulatory reform.
Sec. 303. Reduction or waiver of civil penalties imposed on small 
                            entities.
                   Subtitle B--EPA Regulatory Relief

Sec. 311. Short title.
Sec. 312. Legislative stay.
Sec. 313. Compliance dates.
Sec. 314. Energy recovery and conservation.
Sec. 315. Other provisions.
                    TITLE IV--WORKFORCE DEVELOPMENT

             Subtitle A--Job Training Program Consolidation

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Study and proposal on duplicative job training programs.
                Subtitle B--Innovation and Job Creation

Sec. 411. Short title.
Sec. 412. Definitions.
Sec. 413. National Innovation Council.
Sec. 414. National Innovation Council Board.
Sec. 415. Transfer of programs and functions.
Sec. 416. Cluster Information Center.
Sec. 417. Grant programs.
Sec. 418. Authorization of appropriations.
                            TITLE V--OFFSETS

              Subtitle A--Surtax on High-income Taxpayers

Sec. 501. Surtax on millionaires.
               Subtitle B--Closing Big Oil Tax Loopholes

Sec. 511. Short title.
                  PART I--Close Big Oil Tax Loopholes

Sec. 521. Modifications of foreign tax credit rules applicable to major 
                            integrated oil companies which are dual 
                            capacity taxpayers.
Sec. 522. Limitation on section 199 deduction attributable to oil, 
                            natural gas, or primary products thereof.
Sec. 523. Limitation on deduction for intangible drilling and 
                            development costs.
Sec. 524. Limitation on percentage depletion allowance for oil and gas 
                            wells.
Sec. 525. Limitation on deduction for tertiary injectants.
          PART II--Outer Continental Shelf Oil and Natural Gas

Sec. 531. Repeal of outer Continental Shelf deep water and deep gas 
                            royalty relief.

                        TITLE I--TAX INCENTIVES

                    Subtitle A--Payroll Tax Holiday

SEC. 101. EXTENSION OF PAYROLL TAX HOLIDAY.

    Section 601(c) of the Tax Relief, Unemployment Insurance 
Reauthorization, and Job Creation Act of 2010 (26 U.S.C. 1401 note) is 
amended by striking ``year 2011'' and inserting ``years 2011 and 
2012''.

SEC. 102. TEMPORARY EMPLOYER PAYROLL TAX CUT.

    (a) In General.--
            (1) Employers.--Section 601(a) of the Tax Relief, 
        Unemployment Insurance Reauthorization, and Job Creation Act of 
        2010 (26 U.S.C. 1401 note) is amended by striking ``and'' at 
        the end of paragraph (1), by striking the period at the end of 
        paragraph (2), and by adding at the end the following new 
        paragraph:
            ``(3) with respect to remuneration paid during the payroll 
        tax holiday period for qualified services, the rate of tax 
        under 3111(a) of such Code shall be 4.2 percent (including for 
        purposes of determining the applicable percentage under 
        sections 3221(a) of such Code).''.
            (2) Self-employed individuals.--Section 601(a) of such Act 
        is amended by striking ``10.40 percent'' in paragraph (1) and 
        inserting ``8.40 percent''.
    (b) Qualified Services.--Section 601 of the Tax Relief, 
Unemployment Insurance Reauthorization, and Job Creation Act of 2010 
(26 U.S.C. 1401 note) is amended by adding at the end the following new 
subsection:
    ``(f) Qualified Services.--For purposes of this section, the term 
`qualified services' means services performed--
            ``(1) in a trade or business of a qualified employer, or
            ``(2) in the case of a qualified employer exempt from tax 
        under section 501(a) of the Internal Revenue Code of 1986, in 
        furtherance of the activities related to the purpose or 
        function constituting the basis of the employer's exemption 
        under section 501 of such Code.''.
    (c) Conforming Amendments.--
            (1) Section 601 of the Tax Relief, Unemployment Insurance 
        Reauthorization, and Job Creation Act of 2010 is amended by 
        striking subsection (b).
            (2) Section 601(e)(2) of such Act is amended by striking 
        ``subsection (a)(2)'' and inserting ``paragraphs (2) and (3) of 
        subsection (a)''.
            (3) The headings for title VI and section 601 of such Act 
        are each amended by striking ``employee''.
    (d) Effective Date.--The amendments made by this section shall 
apply to wages paid and self-employment income earned after December 
31, 2011.

                    Subtitle B--American Opportunity

SEC. 111. SHORT TITLE.

    This subtitle may be cited as the ``American Opportunity Act of 
2011''.

SEC. 112. ANGEL INVESTMENT TAX CREDIT.

    (a) In General.--Subpart B 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 section:

``SEC. 30E. ANGEL INVESTMENT TAX CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 25 percent of the qualified equity investments made by a 
qualified investor during the taxable year.
    ``(b) Qualified Equity Investment.--For purposes of this section--
            ``(1) In general.--The term `qualified equity investment' 
        means any equity investment in a qualified small business 
        entity if--
                    ``(A) such investment is acquired by the taxpayer 
                at its original issue (directly or through an 
                underwriter) solely in exchange for cash, and
                    ``(B) such investment is designated for purposes of 
                this section by the qualified small business entity.
            ``(2) Equity investment.--The term `equity investment' 
        means--
                    ``(A) any form of equity, including a general or 
                limited partnership interest, common stock, preferred 
                stock (other than nonqualified preferred stock as 
                defined in section 351(g)(2)), with or without voting 
                rights, without regard to seniority position and 
                whether or not convertible into common stock or any 
                form of subordinate or convertible debt, or both, with 
                warrants or other means of equity conversion, and
                    ``(B) any capital interest in an entity which is a 
                partnership.
            ``(3) Redemptions.--A rule similar to the rule of section 
        1202(c)(3) shall apply for purposes of this subsection.
    ``(c) Qualified Small Business Entity.--For purposes of this 
section--
            ``(1) In general.--The term `qualified small business 
        entity' means any domestic corporation or partnership if such 
        corporation or partnership--
                    ``(A) is a small business (as defined in section 
                41(b)(3)(D)(iii)),
                    ``(B) has its headquarters in the United States,
                    ``(C) is engaged in a high technology trade or 
                business related to--
                            ``(i) advanced materials, nanotechnology, 
                        or precision manufacturing,
                            ``(ii) aerospace, aeronautics, or defense,
                            ``(iii) biotechnology or pharmaceuticals,
                            ``(iv) electronics, semiconductors, 
                        software, or computer technology,
                            ``(v) energy, environment, or clean 
                        technologies,
                            ``(vi) forest products or agriculture,
                            ``(vii) information technology, 
                        communication technology, digital media, or 
                        photonics,
                            ``(viii) life sciences or medical sciences,
                            ``(ix) marine technology or aquaculture,
                            ``(x) transportation, or
                            ``(xi) any other high technology trade or 
                        business as determined by the Secretary,
                    ``(D) has been in existence for less than 5 years 
                as of the date of the qualified equity investment,
                    ``(E) employs less than 100 full-time equivalent 
                employees as of the date of such investment,
                    ``(F) has more than 50 percent of the employees 
                performing substantially all of their services in the 
                United States as of the date of such investment, and
                    ``(G) has equity investments designated for 
                purposes of this paragraph.
            ``(2) Designation of equity investments.--For purposes of 
        paragraph (1)(G), an equity investment shall not be treated as 
        designated if such designation would result in the aggregate 
        amount which may be taken into account under this section with 
        respect to equity investments in such corporation or 
        partnership exceeds--
                    ``(A) $10,000,000, taking into account the total 
                amount of all qualified equity investments made by all 
                taxpayers for the taxable year and all preceding 
                taxable years,
                    ``(B) $2,000,000, taking into account the total 
                amount of all qualified equity investments made by all 
                taxpayers for such taxable year, and
                    ``(C) $1,000,000, taking into account the total 
                amount of all qualified equity investments made by the 
                taxpayer for such taxable year.
    ``(d) Qualified Investor.--For purposes of this section--
            ``(1) In general.--The term `qualified investor' means an 
        accredited investor, as defined by the Securities and Exchange 
        Commission, investor network, or investor fund who review new 
        or proposed businesses for potential investment.
            ``(2) Investor network.--The term `investor network' means 
        a group of accredited investors organized for the sole purpose 
        of making qualified equity investments.
            ``(3) Investor fund.--
                    ``(A) In general.--The term `investor fund' means a 
                corporation that for the applicable taxable year is 
                treated as an S corporation or a general partnership, 
                limited partnership, limited liability partnership, 
                trust, or limited liability company and which for the 
                applicable taxable year is not taxed as a corporation.
                    ``(B) Allocation of credit.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the credit allowed under 
                        subsection (a) shall be allocated to the 
                        shareholders or partners of the investor fund 
                        in proportion to their ownership interest or as 
                        specified in the fund's organizational 
                        documents, except that tax-exempt investors 
                        shall be allowed to transfer their interest to 
                        investors within the fund in exchange for 
                        future financial consideration.
                            ``(ii) Single member limited liability 
                        company.--If the investor fund is a single 
                        member limited liability company that is 
                        disregarded as an entity separate from its 
                        owner, the credit allowed under subsection (a) 
                        may be claimed by such limited liability 
                        company's owner, if such owner is a person 
                        subject to the tax under this title.
            ``(4) Exclusion.--The term `qualified investor' does not 
        include--
                    ``(A) a person controlling at least 50 percent of 
                the qualified small business entity,
                    ``(B) an employee of such entity, or
                    ``(C) any bank, bank and trust company, insurance 
                company, trust company, national bank, savings 
                association or building and loan association for 
                activities that are a part of its normal course of 
                business.
    ``(e) National Limitation on Amount of Investments Designated.--
            ``(1) In general.--There is an angel investment tax credit 
        limitation of $500,000,000 for each of calendar years 2011 
        through 2015.
            ``(2) Allocation of limitation.--The limitation under 
        paragraph (1) shall be allocated by the Secretary among 
        qualified small business entities selected by the Secretary.
            ``(3) Carryover of unused limitation.--If the angel 
        investment tax credit limitation for any calendar year exceeds 
        the aggregate amount allocated under paragraph (2) for such 
        year, such limitation for the succeeding calendar year shall be 
        increased by the amount of such excess. No amount may be 
        carried under the preceding sentence to any calendar year after 
        2020.
    ``(f) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--Except as provided in paragraph (2), the credit which 
        would be allowed under subsection (a) for any taxable year 
        (determined without regard to this subsection) shall be treated 
        as a credit listed in section 38(b) for such taxable year (and 
        not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--In the case of an individual who 
                elects the application of this paragraph, for purposes 
                of this title, the credit allowed under subsection (a) 
                for any taxable year (determined after application of 
                paragraph (1)) shall be treated as a credit allowable 
                under subpart A for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subpart A for any 
                taxable year (determined after application of paragraph 
                (1)) by reason of subparagraph (A) shall not exceed the 
                excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section) and 
                        section 27 for the taxable year.
                    ``(C) Carryforward of unused credit.--If the credit 
                allowable under subsection (a) by reason of 
                subparagraph (A) exceeds the limitation imposed by 
                section 26(a)(1) or subparagraph (B), whichever is 
                applicable, for such taxable year, reduced by the sum 
                of the credits allowable under subpart A (other than 
                this section) for such taxable year, such excess shall 
                be carried to each of the succeeding 20 taxable years 
                to the extent that such unused credit may not be taken 
                into account under subsection (a) by reason of 
                subparagraph (A) for a prior taxable year because of 
                such limitation.
    ``(g) Special Rules.--
            ``(1) Related parties.--For purposes of this section--
                    ``(A) In general.--All related persons shall be 
                treated as 1 person.
                    ``(B) Related persons.--A person shall be treated 
                as related to another person if the relationship 
                between such persons would result in the disallowance 
                of losses under section 267 or 707(b).
            ``(2) Basis.--For purposes of this subtitle, the basis of 
        any investment with respect to which a credit is allowable 
        under this section shall be reduced by the amount of such 
        credit so allowed. This subsection shall not apply for purposes 
        of sections 1202, 1397B, and 1400B.
            ``(3) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any qualified equity 
        investment which is held by the taxpayer less than 3 years, 
        except that no benefit shall be recaptured in the case of--
                    ``(A) transfer of such investment by reason of the 
                death of the taxpayer,
                    ``(B) transfer between spouses,
                    ``(C) transfer incident to the divorce (as defined 
                in section 1041) of such taxpayer, or
                    ``(D) a transaction to which section 381(a) applies 
                (relating to certain acquisitions of the assets of one 
                corporation by another corporation).
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out this section, including 
regulations--
            ``(1) which prevent the abuse of the purposes of this 
        section,
            ``(2) which impose appropriate reporting requirements, and
            ``(3) which apply the provisions of this section to newly 
        formed entities.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of the Internal Revenue Code of 1986 is amended--
            (1) in paragraph (35), by striking ``plus'';
            (2) in paragraph (36), by striking the period at the end 
        and inserting ``, plus''; and
            (3) by adding at the end the following new paragraph:
            ``(37) the portion of the angel investment tax credit to 
        which section 30E(f)(1) applies.''.
    (c) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' at the end of paragraph (36), by 
        striking the period at the end of paragraph (37) and inserting 
        ``, and'', and by inserting after paragraph (37) the following 
        new paragraph:
            ``(38) to the extent provided in section 30E(g)(2).''.
            (2) Section 24(b)(3)(B) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (3) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``30E,'' after ``30D,''.
            (4) Section 25A(i)(5)(B) of such Code is amended by 
        striking ``and 30D'' and inserting ``, 30D, and 30E''.
            (5) Section 25A(i)(5) of such Code is amended by inserting 
        ``30E,'' after ``30D,''.
            (6) Section 25B(g)(2) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (7) Section 26(a)(1) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (8) Section 30(c)(2)(B)(ii) of such Code is amended by 
        striking ``and 30D'' and inserting ``, 30D, and 30E''.
            (9) Section 30B(g)(2)(B)(ii) of such Code is amended by 
        striking ``and 30D'' and inserting ``30D, and 30E''.
            (10) Section 30D(d)(2)(B)(ii) of such Code is amended by 
        striking ``and 25D'' and inserting ``, 25D, and 30E''.
            (11) Section 904(i) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (12) Section 1400C(d)(2) of such Code is amended by 
        striking ``and 30D'' and inserting ``30D, and 30E''.
    (d) Clerical Amendment.--The table of sections for subpart B 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:

``Sec. 30E. Angel investment tax credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to investments made after December 31, 2010, in taxable years 
ending after such date.
    (f) Regulations on Allocation of National Limitation.--Not later 
than 120 days after the date of the enactment of this Act, the 
Secretary of the Treasury or the Secretary's delegate shall prescribe 
regulations which specify--
            (1) how small business entities shall apply for an 
        allocation under section 30E(e)(2) of the Internal Revenue Code 
        of 1986, as added by this section,
            (2) the competitive procedure through which such 
        allocations are made,
            (3) the criteria for determining an allocation to a small 
        business entity, including--
                    (A) whether the small business entity is located in 
                a State that is historically underserved by angel 
                investors and venture capital investors,
                    (B) whether the small business entity has received 
                an angel investment tax credit, or its equivalent, from 
                the State in which the small business entity is located 
                and registered,
                    (C) whether small business entities in low-, 
                medium-, and high-population density States are 
                receiving allocations, and
                    (D) whether the small business entity has been 
                awarded a Small Business Innovative Research or Small 
                Business Technology Transfer grant from a Federal 
                agency,
            (4) the actions that such Secretary or delegate shall take 
        to ensure that such allocations are properly made to qualified 
        small business entities, and
            (5) the actions that such Secretary or delegate shall take 
        to ensure that angel investment tax credits are allocated and 
        issued to the taxpayer.
    (g) Audit and Report.--Not later than January 31, 2014, the 
Comptroller General of the United States, pursuant to an audit of the 
angel investment tax credit program established under section 30E of 
the Internal Revenue Code of 1986 (as added by subsection (a)), shall 
report to Congress on such program, including all qualified small 
business entities that receive an allocation of an angel investment 
credit under such section.

              Subtitle C--Extension of Expiring Provisions

SEC. 121. EXTENSION OF BONUS DEPRECIATION.

    (a) In General.--Paragraph (2) of section 168(k) is amended--
            (1) by striking ``January 1, 2014'' in subparagraph (A)(iv) 
        and inserting ``January 1, 2015'', and
            (2) by striking ``January 1, 2013'' each place it appears 
        and inserting ``January 1, 2014''.
    (b) 100 Percent Expensing.--Paragraph (5) of section 168(k) is 
amended--
            (1) by striking ``January 1, 2013'' and inserting ``January 
        1, 2014'', and
            (2) by striking ``January 1, 2012'' each place it appears 
        and inserting ``January 1, 2013''.
    (c) Extension of Election to Accelerate the AMT Credit in Lieu of 
Bonus Depreciation.--
            (1) In general.--Subclause (II) of section 
        168(k)(4)(D)(iii) is amended by striking ``2013'' and inserting 
        ``2014''.
            (2) Round 3 extension property.--Paragraph (4) of section 
        168(k) is amended by adding at the end the following new 
        subparagraph:
                    ``(J) Special rules for round 3 extension 
                property.--
                            ``(i) In general.--In the case of round 3 
                        extension property, this paragraph shall be 
                        applied without regard to--
                                    ``(I) the limitation described in 
                                subparagraph (B)(i) thereof, and
                                    ``(II) the business credit increase 
                                amount under subparagraph (E)(iii) 
                                thereof.
                            ``(ii) Taxpayers previously electing 
                        acceleration.--In the case of a taxpayer who 
                        made the election under subparagraph (A) for 
                        its first taxable year ending after March 31, 
                        2008, a taxpayer who made the election under 
                        subparagraph (H)(ii) for its first taxable year 
                        ending after December 31, 2008, or a taxpayer 
                        who made the election under subparagraph 
                        (I)(iii) for its first taxable year ending 
                        after December 31, 2010--
                                    ``(I) the taxpayer may elect not to 
                                have this paragraph apply to round 3 
                                extension property, but
                                    ``(II) if the taxpayer does not 
                                make the election under subclause (I), 
                                in applying this paragraph to the 
                                taxpayer the bonus depreciation amount, 
                                maximum amount, and maximum increase 
                                amount shall be computed and applied to 
                                eligible qualified property which is 
                                round 3 extension property.
                        The amounts described in subclause (II) shall 
                        be computed separately from any amounts 
                        computed with respect to eligible qualified 
                        property which is not round 2 extension 
                        property.
                            ``(iii) Taxpayers not previously electing 
                        acceleration.--In the case of a taxpayer who 
                        neither made the election under subparagraph 
                        (A) for its first taxable year ending after 
                        March 31, 2008, nor made the election under 
                        subparagraph (H)(ii) for its first taxable year 
                        ending after December 31, 2008, nor made the 
                        election under subparagraph (I)(iii) for its 
                        first taxable year ending after December 31, 
                        2010--
                                    ``(I) the taxpayer may elect to 
                                have this paragraph apply to its first 
                                taxable year ending after December 31, 
                                2011, and each subsequent taxable year, 
                                and
                                    ``(II) if the taxpayer makes the 
                                election under subclause (I), this 
                                paragraph shall only apply to eligible 
                                qualified property which is round 3 
                                extension property.
                            ``(iv) Round 3 extension property.--For 
                        purposes of this subparagraph, the term `round 
                        3 extension property' means property which is 
                        eligible qualified property solely by reason of 
                        the extension of the application of the special 
                        allowance under paragraph (1) pursuant to the 
                        amendments made by section 7(a) of the Small 
                        Business Jobs Tax Extenders Act of 2011 (and 
                        the application of such extension to this 
                        paragraph pursuant to the amendment made by 
                        section 7(c)(1) of such Act).''.
    (d) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 is 
        amended by striking ``January 1, 2013'' and inserting ``January 
        1, 2014''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) is 
        amended by striking ``pre-january 1, 2013'' and inserting 
        ``pre-january 1, 2014''.
            (3) Paragraph (5) of section 168(l) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (A),
                    (B) by redesignating subparagraph (C) as 
                subparagraph (B), and
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) by substituting `January 1, 2013' for 
                `January 1, 2014' in clause (i) thereof, and''.
            (4) Subparagraph (C) of section 168(n)(2) is amended by 
        striking ``January 1, 2013'' and inserting ``January 1, 2014''.
            (5) Subparagraph (D) of section 1400L(b)(2) is amended by 
        striking ``January 1, 2013'' and inserting ``January 1, 2014''.
            (6) Subparagraph (B) of section 1400N(d)(3) is amended by 
        striking ``January 1, 2013'' and inserting ``January 1, 2014''.
    (e) Effective Dates.--The amendments made by this section shall 
apply to property placed in service after December 31, 2011, in taxable 
years ending after such date.

SEC. 122. DEDUCTION FOR QUALIFIED TUITION AND RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2011'' and 
inserting ``December 31, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 123. RESEARCH CREDIT.

    (a) In General.--Subparagraph (B) of section 41(h)(1) of the 
Internal Revenue Code of 1986 is amended by striking ``December 31, 
2011'' and inserting ``December 31, 2012''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) of 
such Code is amended by striking ``December 31, 2011'' and inserting 
``December 31, 2012''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2011.

SEC. 124. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED LEASEHOLD 
              IMPROVEMENTS, QUALIFIED RESTAURANT BUILDINGS AND 
              IMPROVEMENTS, AND QUALIFIED RETAIL IMPROVEMENTS.

    (a) In General.--Clauses (iv), (v), and (ix) of section 
168(e)(3)(E) of the Internal Revenue Code of 1986 are each amended by 
striking ``January 1, 2012'' and inserting ``January 1, 2013''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2011.

SEC. 125. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
              INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) of the 
Internal Revenue Code of 1986 is amended by striking ``December 31, 
2011'' and inserting ``December 31, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2011.

SEC. 126. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK 
              INVENTORIES TO PUBLIC SCHOOLS.

    (a) In General.--Clause (iv) of section 170(e)(3)(D) of the 
Internal Revenue Code of 1986 is amended by striking ``December 31, 
2011'' and inserting ``December 31, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2011.

SEC. 127. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE CONTRIBUTIONS OF 
              COMPUTER INVENTORY FOR EDUCATIONAL PURPOSES.

    (a) In General.--Subparagraph (G) of section 170(e)(6) of the 
Internal Revenue Code of 1986 is amended by striking ``December 31, 
2011'' and inserting ``December 31, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2011.

                  TITLE II--INFRASTRUCTURE PROVISIONS

SEC. 201. CAPITALIZATION OF STATE INFRASTRUCTURE BANKS.

    Section 610 of title 23, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by redesignating paragraphs (5) and (6) as 
                paragraphs (6) and (7), respectively; and
                    (B) by inserting after paragraph (4) the following:
            ``(5) Special single allocation.--
                    ``(A) In general.--Subject to subparagraph (C), of 
                the funds made available under subparagraph (D), the 
                Secretary shall allocate to each State a proportional 
                amount in the manner required under this section for a 
                1-time deposit into the State infrastructure bank, for 
                use in accordance with this section.
                    ``(B) Certain uses of funds.--A State may use an 
                amount equal to 20 percent of the funds allocated under 
                subparagraph (A) for--
                            ``(i) investigating the viability of 
                        identifying revenue sources for repayment for 
                        projects;
                            ``(ii) technical assistance;
                            ``(iii) promotion to potential borrowers; 
                        and
                            ``(iv) other activities that would enhance 
                        the project pipeline.
                    ``(C) Nonparticipating states.--
                            ``(i) In general.--The Secretary shall 
                        allocate to each State that elects not to 
                        establish, or is prohibited by State law from 
                        establishing, an infrastructure bank under this 
                        section an amount equal to, at the election of 
                        the State--
                                    ``(I) 20 percent of the amount that 
                                would otherwise be allocated to the 
                                State under subparagraph (A) for--
                                            ``(aa) investigating the 
                                        viability of establishing such 
                                        an infrastructure bank in the 
                                        State;
                                            ``(bb) identifying revenue 
                                        sources for repayment for 
                                        projects;
                                            ``(cc) technical 
                                        assistance;
                                            ``(dd) promotion to 
                                        potential borrowers; and
                                            ``(ee) other activities 
                                        that would enhance the project 
                                        pipeline; or
                                    ``(II) 10 percent of the amount 
                                that would otherwise be allocated to 
                                the State under subparagraph (A) for 
                                use for other surface transportation 
                                projects authorized under this title or 
                                title 49.
                            ``(ii) Use of remaining funds.--The amounts 
                        remaining after making an allocation to a State 
                        under clause (i) shall be redistributed by the 
                        Secretary to States with infrastructure banks 
                        under this section in accordance with 
                        subparagraph (A).
                    ``(D) Funding.--
                            ``(i) In general.--On October 1, 2012, out 
                        of any funds in the Treasury not otherwise 
                        appropriated, the Secretary of the Treasury 
                        shall transfer to the Secretary to carry out 
                        this paragraph $10,000,000,000, to remain 
                        available until expended.
                            ``(ii) Receipt and acceptance.--The 
                        Secretary shall be entitled to receive, shall 
                        accept, and shall use to carry out this 
                        paragraph the funds transferred under clause 
                        (i), without further appropriation.
                    ``(E) Non-federal share.--The non-Federal share of 
                the cost of a project carried out using an allocation 
                under this paragraph shall be 10 percent.''; and
            (2) by adding at the end the following:
    ``(l) Studies and Reports.--
            ``(1) Annual financial audit.--
                    ``(A) In general.--The special single allocation 
                described in subsection (d)(5)(A) shall be subject to 
                an annual financial audit by an independent public 
                accounting firm selected by the Inspector General to 
                ensure that the State infrastructure bank meets 
                generally accepted accounting principles.
                    ``(B) Availability.--The Inspector General shall--
                            ``(i) submit to the appropriate committees 
                        of Congress the results of each audit carried 
                        out under subparagraph (A); and
                            ``(ii) publish the results of each audit 
                        carried out under subparagraph (A) on a 
                        publicly accessible Internet site of the 
                        Department.
            ``(2) Annual performance evaluation.--
                    ``(A) In general.--The Inspector General shall 
                carry out an annual assessment--
                            ``(i) to evaluate the overall performance 
                        of the State infrastructure bank program; and
                            ``(ii) to determine the effectiveness of 
                        the program at meeting the objectives and 
                        strategy goals of the program.
                    ``(B) Initial review.--In the first annual 
                assessment carried out under this paragraph, the 
                Inspector General shall include a report that 
                describes--
                            ``(i) each State that has established a 
                        State infrastructure bank under this section; 
                        and
                            ``(ii)(I) each State that elected not to 
                        establish, or is prohibited by State law from 
                        establishing, such an infrastructure bank; and
                            ``(II) each State described in subclause 
                        (I) that is investigating the viability of 
                        establishing an infrastructure bank in the 
                        State under this section.
                    ``(C) Dissemination.--The Inspector General shall 
                submit to the appropriate committees of Congress a 
                report that contains the results of each annual 
                assessment carried out under this paragraph.''.

SEC. 202. HIGHWAY INFRASTRUCTURE INVESTMENT.

    (a) In General.--Out of any funds in the Treasury not otherwise 
appropriated, there is appropriated to the Secretary of Transportation 
(referred to in this section as the ``Secretary'') $25,000,000,000 
for--
            (1) construction, reconstruction, rehabilitation, 
        resurfacing, restoration, and operational improvements for 
        highways (including Interstate highways) and bridges (including 
        bridges on public roads of all functional classifications);
            (2) the seismic retrofit and painting of bridges and 
        approaches to bridges and other elevated structures; and
            (3) the cost of mitigation eligible under title 23, United 
        States Code, necessary to address adverse impacts of projects 
        funded under this Act.
    (b) Federal Share; Limitation on Obligations.--
            (1) Federal share.--The Federal share payable on account of 
        any project or activity carried out using funds made available 
        under this section shall be, at the option of the recipient, up 
        to 100 percent of the total cost of the project or activity.
            (2) Limitation on obligations.--The funds made available 
        under this section shall not be subject to any limitation on 
        obligations for Federal-aid highways and highway safety 
        construction programs established under title 23, United States 
        Code, or any other provision of law.
    (c) Availability.--The funds made available under this section 
shall be available for obligation until the date that is 2 years after 
the date of enactment of this Act.
    (d) Distribution of Funds.--After making the set-aside under 
subsection (h), the Secretary shall apportion the funds made available 
under this section among States in the same ratio as amounts 
apportioned among States for fiscal year 2011 under the Surface 
Transportation Extension Act of 2010 (Public Law 111-147; 124 Stat. 
78).
    (e) Apportionment.--The apportionments under subsection (d) shall 
be made not later than 30 days after the date of enactment of this Act.
    (f) Redistribution.--
            (1) Unobligated funds.--Subject to paragraph (2), not later 
        than 1 year after the date on which the apportionments are made 
        under subsection (e), the Secretary shall--
                    (A) withdraw from each recipient of funds 
                apportioned under subsection (e) any unobligated funds; 
                and
                    (B) redistribute those amounts in the manner 
                described in the Surface Transportation Extension Act 
                of 2010 (Public Law 111-147; 124 Stat. 78) to States 
                that have had no funds withdrawn under this paragraph 
                (excluding States that have opted not to obligate funds 
                under this section).
            (2) Extensions.--
                    (A) In general.--Subject to subparagraph (B), at 
                the request of a State, the Secretary may provide an 
                extension of the 1-year period described in paragraph 
                (1) only to the extent that the Secretary determines 
                that the State has encountered--
                            (i) extreme conditions that create an 
                        unworkable bidding environment; or
                            (ii) other extenuating circumstances.
                    (B) Notice.--Before granting an extension under 
                subparagraph (A), the Secretary shall submit to the 
                Committee on Transportation and Infrastructure of the 
                House of Representatives and the Committee on 
                Environment and Public Works of the Senate a written 
                notice providing a thorough justification for the 
                extension.
    (g) Conditions.--
            (1) In general.--Funds made available under this section 
        shall be administered as if apportioned under chapter 1 of 
        title 23, United States Code.
            (2) Advance construction.--Funds made available under this 
        section shall not be obligated for the purposes authorized 
        under section 115(b) of title 23, United States Code.
            (3) Funds under other acts.--Funds made available under 
        this section--
                    (A) shall be in addition to all funds provided for 
                fiscal year 2012 for ``Federal-aid Highways'' in any 
                other Act; and
                    (B) shall not affect the distribution of any such 
                funds.
            (4) Disadvantaged business enterprises.--Section 1101(b) of 
        Public Law 109-59 (23 U.S.C. 101 note; 119 Stat. 1156) shall 
        apply to the funds apportioned under this section.
    (h) Oversight.--The Secretary may set aside not more than 0.15 
percent of the funds made available under this section to fund 
oversight by the Administrator of the Federal Highway Administration of 
projects and activities carried out using funds made available to the 
Federal Highway Administration by this Act, to remain available through 
September 30, 2015.

SEC. 203. STATE REVOLVING LOAN FUNDS.

    (a) In General.--In addition to any other amounts made available 
under Federal law, on October 1, 2012, out of any funds in the Treasury 
not otherwise appropriated, the Secretary of the Treasury shall 
transfer to the Administrator of the Environmental Protection Agency 
$800,000,000, to remain available until expended--
            (1) for State water pollution control revolving funds under 
        title VI of the Federal Water Pollution Control Act (33 U.S.C. 
        1381 et seq.); and
            (2) for State drinking water treatment revolving loan funds 
        under section 1452 of the Safe Drinking Water Act (42 U.S.C. 
        300j-12).
    (b) Receipt and Acceptance.--The Administrator of the Environmental 
Protection Agency shall be entitled to receive, shall accept, and shall 
use in accordance with paragraphs (1) and (2) of subsection (a) the 
funds transferred under that subsection, without further appropriation.

                      TITLE III--REGULATORY REFORM

          Subtitle A--Clearing Unnecessary Regulatory Burdens

SEC. 301. SHORT TITLE.

    This subtitle may be cited as the ``Clearing Unnecessary Regulatory 
Burdens Act'' or the ``CURB Act''.

SEC. 302. REGULATORY REFORM.

    (a) Definitions.--In this section--
            (1) the term ``Administrator'' means the Administrator of 
        the Office of Information and Regulatory Affairs in the Office 
        of Management and Budget;
            (2) the term ``agency'' has the same meaning as in section 
        3502(1) of title 44, United States Code;
            (3) the term ``economically significant guidance document'' 
        means a significant guidance document that may reasonably be 
        anticipated to lead to an annual effect on the economy of 
        $100,000,000 or more or adversely affect in a material way the 
        economy or a sector of the economy, except that economically 
        significant guidance documents do not include guidance 
        documents on Federal expenditures and receipts;
            (4) the term ``disseminated''--
                    (A) means prepared by an agency and distributed to 
                the public or regulated entities; and
                    (B) does not include--
                            (i) distribution limited to Federal 
                        Government employees;
                            (ii) intra- or interagency use or sharing 
                        of Federal Government information; and
                            (iii) responses to requests for agency 
                        records under section 552 of title 5, United 
                        States Code (commonly referred to as the 
                        ``Freedom of Information Act''), section 552a 
                        of title 5, United States Code, (commonly 
                        referred to as the ``Privacy Act''), the 
                        Federal Advisory Committee Act (5 U.S.C. App.), 
                        or other similar laws;
            (5) the term ``guidance document'' means an agency 
        statement of general applicability and future effect, other 
        than a regulatory action, that sets forth a policy on a 
        statutory, regulatory or technical issue or an interpretation 
        of a statutory or regulatory issue;
            (6) the term ``regulation'' means an agency statement of 
        general applicability and future effect, which the agency 
        intends to have the force and effect of law, that is designed 
        to implement, interpret, or prescribe law or policy or to 
        describe the procedure or practice requirements of an agency;
            (7) the term ``regulatory action'' means any substantive 
        action by an agency (normally published in the Federal 
        Register) that promulgates or is expected to lead to the 
        promulgation of a final regulation, including notices of 
        inquiry, advance notices of proposed rulemaking, and notices of 
        proposed rulemaking;
            (8) the term ``significant guidance document''--
                    (A) means a guidance document disseminated to 
                regulated entities or the general public that may 
                reasonably be anticipated to--
                            (i) lead to an annual effect on the economy 
                        of $100,000,000 or more or affect in a material 
                        way the economy, a sector of the economy, 
                        productivity, competition, jobs, the 
                        environment, public health or safety, or State, 
                        local, or tribal governments or communities;
                            (ii) create a serious inconsistency or 
                        otherwise interfere with an action taken or 
                        planned by another agency;
                            (iii) materially alter the budgetary impact 
                        of entitlements, grants, user fees, or loan 
                        programs or the rights and obligations of 
                        recipients thereof; or
                            (iv) raise novel legal or policy issues 
                        arising out of legal mandates and the 
                        priorities, principles, and provisions of this 
                        section; and
                    (B) does not include--
                            (i) legal advisory opinions for internal 
                        Executive Branch use and not for release (such 
                        as Department of Justice Office of Legal 
                        Counsel opinions);
                            (ii) briefs and other positions taken by 
                        agencies in investigations, pre-litigation, 
                        litigation, or other enforcement proceedings;
                            (iii) speeches;
                            (iv) editorials;
                            (v) media interviews;
                            (vi) press materials;
                            (vii) congressional correspondence;
                            (viii) guidance documents that pertain to a 
                        military or foreign affairs function of the 
                        United States (other than guidance on 
                        procurement or the import or export of non-
                        defense articles and services);
                            (ix) grant solicitations;
                            (x) warning letters;
                            (xi) case or investigatory letters 
                        responding to complaints involving fact-
                        specific determinations;
                            (xii) purely internal agency policies;
                            (xiii) guidance documents that pertain to 
                        the use, operation or control of a government 
                        facility;
                            (xiv) internal guidance documents directed 
                        solely to other agencies; and
                            (xv) any other category of significant 
                        guidance documents exempted by an agency head 
                        in consultation with the Administrator; and
            (9) the term ``significant regulatory action'' means any 
        regulatory action that is likely to result in a regulation that 
        may--
                    (A) have an annual effect on the economy of 
                $100,000,000 or more or adversely affect in a material 
                way the economy, a sector of the economy, productivity, 
                competition, jobs, the environment, public health or 
                safety, or State, local, or tribal governments or 
                communities;
                    (B) create a serious inconsistency or otherwise 
                interfere with an action taken or planned by another 
                agency;
                    (C) materially alter the budgetary impact of 
                entitlements, grants, user fees, or loan programs or 
                the rights and obligations of recipients thereof; or
                    (D) raise novel legal or policy issues arising out 
                of legal mandates and the priorities, principles, and 
                provisions of this section.
    (b) Agency Assessment of Significant Regulatory Actions.--For each 
significant regulatory action, each agency shall submit, at such times 
specified by the Administrator, a report to the Office of Information 
and Regulatory Affairs that includes--
            (1) an assessment, including the underlying analysis, of 
        benefits anticipated from the significant regulatory action, 
        such as--
                    (A) the promotion of the efficient functioning of 
                the economy and private markets;
                    (B) the enhancement of health and safety;
                    (C) the protection of the natural environment; and
                    (D) the elimination or reduction of discrimination 
                or bias;
            (2) to the extent feasible, a quantification of the 
        benefits assessed under paragraph (1);
            (3) an assessment, including the underlying analysis, of 
        costs anticipated from the regulatory action, such as--
                    (A) the direct cost both to the Federal Government 
                in administering the significant regulatory action and 
                to businesses, consumers, and others (including State, 
                local, and tribal officials) in complying with the 
                regulation; and
                    (B) any adverse effects on the efficient 
                functioning of the economy, private markets (including 
                productivity, employment, and competitiveness), health, 
                safety, the natural environment, job creation, the 
                prices of consumer goods, and energy costs;
            (4) to the extent feasible, a quantification of the costs 
        assessed under paragraph (3); and
            (5) an assessment, including the underlying analysis, of 
        costs and benefits of potentially effective and reasonably 
        feasible alternatives to the planned significant regulatory 
        action, identified by the agency or the public (including 
        improving the current regulation and reasonably viable 
        nonregulatory actions), and an explanation why the planned 
        regulatory action is preferable to the identified potential 
        alternatives.
    (c) Agency Good Guidance Practices.--
            (1) Agency standards for significant guidance documents.--
                    (A) Approval procedures.--
                            (i) In general.--Each agency shall develop 
                        or have written procedures for the approval of 
                        significant guidance documents, which shall 
                        ensure that the issuance of significant 
                        guidance documents is approved by appropriate 
                        senior agency officials.
                            (ii) Requirement.--Employees of an agency 
                        may not depart from significant guidance 
                        documents without appropriate justification and 
                        supervisory concurrence.
                    (B) Standard elements.--Each significant guidance 
                document--
                            (i) shall--
                                    (I) include the term ``guidance'' 
                                or its functional equivalent;
                                    (II) identify the agency or office 
                                issuing the document;
                                    (III) identify the activity to 
                                which and the persons to whom the 
                                significant guidance document applies;
                                    (IV) include the date of issuance;
                                    (V) note if the significant 
                                guidance document is a revision to a 
                                previously issued guidance document 
                                and, if so, identify the document that 
                                the significant guidance document 
                                replaces;
                                    (VI) provide the title of the 
                                document and a document identification 
                                number; and
                                    (VII) include the citation to the 
                                statutory provision or regulation (in 
                                Code of Federal Regulations format) 
                                which the significant guidance document 
                                applies to or interprets; and
                            (ii) shall not include mandatory terms such 
                        as ``shall'', ``must'', ``required'', or 
                        ``requirement'' unless--
                                    (I) the agency is using those terms 
                                to describe a statutory or regulatory 
                                requirement; or
                                    (II) the terminology is addressed 
                                to agency staff and will not foreclose 
                                agency consideration of positions 
                                advanced by affected private parties.
            (2) Public access and feedback for significant guidance 
        documents.--
                    (A) Internet access.--
                            (i) In general.--Each agency shall--
                                    (I) maintain on the Web site for 
                                the agency, or as a link on the Web 
                                site of the agency to the electronic 
                                list posted on a Web site of a 
                                component of the agency a list of the 
                                significant guidance documents in 
                                effect of the agency, including a link 
                                to the text of each significant 
                                guidance document that is in effect; 
                                and
                                    (II) not later than 30 days after 
                                the date on which a significant 
                                guidance document is issued, update the 
                                list described in clause (i).
                            (ii) List requirements.--The list described 
                        in subparagraph (A)(i) shall--
                                    (I) include the name of each--
                                            (aa) significant guidance 
                                        document;
                                            (bb) document 
                                        identification number; and
                                            (cc) issuance and revision 
                                        dates; and
                                    (II) identify significant guidance 
                                documents that have been added, 
                                revised, or withdrawn in the preceding 
                                year.
                    (B) Public feedback.--
                            (i) In general.--Each agency shall 
                        establish and clearly advertise on the Web site 
                        for the agency a means for the public to 
                        electronically submit--
                                    (I) comments on significant 
                                guidance documents; and
                                    (II) a request for issuance, 
                                reconsideration, modification, or 
                                rescission of significant guidance 
                                documents.
                            (ii) Agency response.--Any comments or 
                        requests submitted under subparagraph (A)--
                                    (I) are for the benefit of the 
                                agency; and
                                    (II) shall not require a formal 
                                response from the agency.
                            (iii) Office for public comments.--
                                    (I) In general.--Each agency shall 
                                designate an office to receive and 
                                address complaints from the public 
                                relating to--
                                            (aa) the failure of the 
                                        agency to follow the procedures 
                                        described in this section; or
                                            (bb) the failure to treat a 
                                        significant guidance document 
                                        as a binding requirement.
                                    (II) Web site.--The agency shall 
                                provide, on the Web site of the agency, 
                                the name and contact information for 
                                the office designated under clause (i).
            (3) Notice and public comment for economically significant 
        guidance documents.--
                    (A) In general.--Except as provided in paragraph 
                (2), in preparing a draft of an economically 
                significant guidance document, and before issuance of 
                the final significant guidance document, each agency 
                shall--
                            (i) publish a notice in the Federal 
                        Register announcing that the draft document is 
                        available;
                            (ii) post the draft document on the 
                        Internet and make a tangible copy of that 
                        document publicly available (or notify the 
                        public how the public can review the guidance 
                        document if the document is not in a format 
                        that permits such electronic posting with 
                        reasonable efforts);
                            (iii) invite public comment on the draft 
                        document; and
                            (iv) prepare and post on the Web site of 
                        the agency a document with responses of the 
                        agency to public comments.
                    (B) Exceptions.--In consultation with the 
                Administrator, an agency head may identify a particular 
                economically significant guidance document or category 
                of such documents for which the procedures of this 
                subsection are not feasible or appropriate.
            (4) Emergencies.--
                    (A) In general.--In emergency situations or when an 
                agency is obligated by law to act more quickly than 
                normal review procedures allow, the agency shall notify 
                the Administrator as soon as possible and, to the 
                extent practicable, comply with this subsection.
                    (B) Significant guidance documents subject to 
                statutory or court-imposed deadline.--For a significant 
                guidance document that is governed by a statutory or 
                court-imposed deadline, the agency shall, to the extent 
                practicable, schedule the proceedings of the agency to 
                permit sufficient time to comply with this subsection.
            (5) Effective date.--This section shall take effect 60 days 
        after the date of enactment of this subtitle.

SEC. 303. REDUCTION OR WAIVER OF CIVIL PENALTIES IMPOSED ON SMALL 
              ENTITIES.

    (a) In General.--Chapter 6 of title 5, United States Code, is 
amended by adding at the end the following:
``Sec. 613. Reduction or waiver of civil penalties imposed on small 
              entities
    ``(a) Upon notifying a small entity of a violation by the small 
entity of a collection of information or recordkeeping requirement, the 
agency shall provide the small entity with an opportunity to request 
that the agency reduce or waive any civil penalty imposed on the small 
entity as a result of the violation.
    ``(b) If a small entity requests a reduction or waiver under 
subsection (a), the agency that receives the request shall--
            ``(1) review the records of the agency; and
            ``(2) reduce or waive the civil penalty imposed on the 
        small entity if the agency determines that--
                    ``(A) the civil penalty was the result of a first-
                time violation by the small entity of a collection of 
                information or recordkeeping requirement; and
                    ``(B) the reduction or waiver is consistent with 
                the conditions and exclusions described in paragraphs 
                (1), (3), (4), (5), and (6) of section 223(b) of the 
                Small Business Regulatory Enforcement Fairness Act of 
                1996 (5 U.S.C. 601 note).
    ``(c) Not later than 60 days after the receipt of a request from a 
small entity under subsection (a), an agency shall send the small 
entity written notice of the determination of the agency with respect 
to the request and the reasons for the determination.
    ``(d) The Chief Counsel for Advocacy shall submit to Congress an 
annual report summarizing--
            ``(1) all requests received by the agencies under 
        subsection (a) during the previous year; and
            ``(2) the results of the requests described in paragraph 
        (1).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 6 of title 5, United States Code, is amended by adding at the 
end the following:

``613. Reduction or waiver of civil penalties imposed on small 
                            entities.''.

                   Subtitle B--EPA Regulatory Relief

SEC. 311. SHORT TITLE.

    This subtitle may be cited as the ``EPA Regulatory Relief Act of 
2011''.

SEC. 312. LEGISLATIVE STAY.

    (a) Establishment of Standards.--In place of the rules specified in 
subsection (b), and notwithstanding the date by which such rules would 
otherwise be required to be promulgated, the Administrator of the 
Environmental Protection Agency (in this subtitle referred to as the 
``Administrator'') shall--
            (1) propose regulations for industrial, commercial, and 
        institutional boilers and process heaters, and commercial and 
        industrial solid waste incinerator units, subject to any of the 
        rules specified in subsection (b)--
                    (A) establishing maximum achievable control 
                technology standards, performance standards, and other 
                requirements under sections 112 and 129, as applicable, 
                of the Clean Air Act (42 U.S.C. 7412, 7429); and
                    (B) identifying non-hazardous secondary materials 
                that, when used as fuels or ingredients in combustion 
                units of such boilers, process heaters, or incinerator 
                units are solid waste under the Solid Waste Disposal 
                Act (42 U.S.C. 6901 et seq.; commonly referred to as 
                the ``Resource Conservation and Recovery Act'') for 
                purposes of determining the extent to which such 
                combustion units are required to meet the emissions 
                standards under section 112 of the Clean Air Act (42 
                U.S.C. 7412) or the emission standards under section 
                129 of such Act (42 U.S.C. 7429); and
            (2) finalize the regulations on the date that is 15 months 
        after the date of the enactment of this subtitle, or on such 
        later date as may be determined by the Administrator.
    (b) Stay of Earlier Rules.--The following rules are of no force or 
effect, shall be treated as though such rules had never taken effect, 
and shall be replaced as described in subsection (a):
            (1) ``National Emission Standards for Hazardous Air 
        Pollutants for Major Sources: Industrial, Commercial, and 
        Institutional Boilers and Process Heaters'', published at 76 
        Fed. Reg. 15608 (March 21, 2011).
            (2) ``National Emission Standards for Hazardous Air 
        Pollutants for Area Sources: Industrial, Commercial, and 
        Institutional Boilers'', published at 76 Fed. Reg. 15554 (March 
        21, 2011).
            (3) ``Standards of Performance for New Stationary Sources 
        and Emission Guidelines for Existing Sources: Commercial and 
        Industrial Solid Waste Incineration Units'', published at 76 
        Fed. Reg. 15704 (March 21, 2011).
            (4) ``Identification of Non-Hazardous Secondary Materials 
        That are Solid Waste'', published at 76 Fed. Reg. 15456 (March 
        21, 2011).
    (c) Inapplicability of Certain Provisions.--With respect to any 
standard required by subsection (a) to be promulgated in regulations 
under section 112 of the Clean Air Act (42 U.S.C. 7412), the provisions 
of subsections (g)(2) and (j) of such section 112 shall not apply prior 
to the effective date of the standard specified in such regulations.

SEC. 313. COMPLIANCE DATES.

    (a) Establishment of Compliance Dates.--For each regulation 
promulgated pursuant to section 312, the Administrator--
            (1) shall establish a date for compliance with standards 
        and requirements under such regulation that is, notwithstanding 
        any other provision of law, not earlier than 5 years after the 
        effective date of the regulation; and
            (2) in proposing a date for such compliance, shall take 
        into consideration--
                    (A) the costs of achieving emissions reductions;
                    (B) any non-air quality health and environmental 
                impact and energy requirements of the standards and 
                requirements;
                    (C) the feasibility of implementing the standards 
                and requirements, including the time needed to--
                            (i) obtain necessary permit approvals; and
                            (ii) procure, install, and test control 
                        equipment;
                    (D) the availability of equipment, suppliers, and 
                labor, given the requirements of the regulation and 
                other proposed or finalized regulations of the 
                Environmental Protection Agency; and
                    (E) potential net employment impacts.
    (b) New Sources.--The date on which the Administrator proposes a 
regulation pursuant to section 312(a)(1) establishing an emission 
standard under section 112 or 129 of the Clean Air Act (42 U.S.C. 7412, 
7429) shall be treated as the date on which the Administrator first 
proposes such a regulation for purposes of applying the definition of a 
new source under section 112(a)(4) of such Act (42 U.S.C. 7412(a)(4)) 
or the definition of a new solid waste incineration unit under section 
129(g)(2) of such Act (42 U.S.C. 7429(g)(2)).
    (c) Rule of Construction.--Nothing in this subtitle shall be 
construed to restrict or otherwise affect the provisions of paragraphs 
(3)(B) and (4) of section 112(i) of the Clean Air Act (42 U.S.C. 
7412(i)).

SEC. 314. ENERGY RECOVERY AND CONSERVATION.

    (a) In General.--Notwithstanding any other provision of law, to 
ensure the recovery and conservation of energy consistent with the 
Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) (commonly known as 
the ``Resource Conservation and Recovery Act of 1976''), in 
promulgating regulations under section 312(a) that address the subject 
matter of the regulations described in paragraphs (3) and (4) of 
section 312(b), the Administrator shall--
            (1) adopt the definitions of the terms ``commercial and 
        industrial solid waste incineration unit'', ``commercial and 
        industrial waste'', and ``contained gaseous material'' 
        contained in the regulation entitled ``Standards of Performance 
        for New Stationary Sources and Emission Guidelines for Existing 
        Sources: Commercial and Industrial Solid Waste Incineration 
        Units'' (65 Fed. Reg. 75338 (December 1, 2000)); and
            (2) identify nonhazardous secondary material as not to be 
        solid waste for purposes of the Solid Waste Disposal Act (42 
        U.S.C. 6901 et seq.) if--
                    (A) the material--
                            (i) does not meet the definition of 
                        commercial and industrial waste; and
                            (ii) is on the list published by the 
                        Administrator under subsection (b); or
                    (B) in the case of the material that is a gas, the 
                material does not meet the definition of contained 
                gaseous material.
    (b) List of Nonhazardous Secondary Materials.--
            (1) In general.--Not later than 120 days after the date of 
        enactment of this subtitle, the Administrator shall publish a 
        list of nonhazardous secondary materials that are not solid 
        waste when combusted in units designed for energy recovery, 
        including--
                    (A) without limitation, all forms of biomass, 
                including--
                            (i) agricultural and forest-derived 
                        biomass;
                            (ii) biomass crops, vines, and orchard 
                        trees;
                            (iii) bagasse and other crop and tree 
                        residues, including--
                                    (I) hulls and seeds;
                                    (II) spent grains;
                                    (III) byproducts of cotton;
                                    (IV) corn and peanut production;
                                    (V) rice milling and grain elevator 
                                operations;
                                    (VI) cellulosic biofuels; and
                                    (VII) byproducts of ethanol natural 
                                fermentation processes;
                            (iv) hogged fuel, including wood pallets, 
                        sawdust, and wood pellets;
                            (v) wood debris from forests and urban 
                        areas;
                            (vi) resinated wood and other resinated 
                        biomass-derived residuals, including trim, 
                        sanderdust, offcuts, and woodworking residuals;
                            (vii) creosote-treated, borate-treated, 
                        sap-stained, and other treated wood;
                            (viii) residuals from wastewater treatment 
                        by the manufacturing industry, including 
                        process wastewater with significant British 
                        thermal unit (``Btu'') value;
                            (ix) paper and paper or cardboard recycling 
                        residuals, including paper-derived fuel cubes, 
                        paper fines, and paper and cardboard rejects;
                            (x) turpentine, turpentine derivatives, 
                        pine tar, rectified methanol, glycerine, lumber 
                        kiln condensates, and wood char;
                            (xi) tall oil and related soaps;
                            (xii) biogases or bioliquids generated from 
                        biomass materials, wastewater operations, or 
                        landfill operations;
                            (xiii) processed biomass derived from 
                        construction and demolition debris for the 
                        purpose of fuel production; and
                            (xiv) animal manure and bedding material;
                    (B) solid and emulsified paraffin;
                    (C) petroleum and chemical reaction and 
                distillation byproducts and residues, alcohol, ink, and 
                nonhalogenated solvents;
                    (D) tire-derived fuel, including factory scrap tire 
                and related material;
                    (E) foundry sand processed in thermal reclamation 
                units;
                    (F) coal refuse and coal combustion residuals;
                    (G) shredded cloth and carpet scrap;
                    (H) latex paint water, organic printing dyes and 
                inks, recovered paint solids, and nonmetallic paint 
                sludges;
                    (I) nonchlorinated plastics;
                    (J) all used oil that qualifies as recycled oil 
                under section 1004 of the Solid Waste Disposal Act (42 
                U.S.C. 6903);
                    (K) process densified fuels that contain any of the 
                materials described in this paragraph; and
                    (L) any other specific or general categories of 
                material that the Administrator determines the 
                combustion of which is for use as a fuel pursuant to 
                paragraph (2).
            (2) Additions to the list.--
                    (A) In general.--To provide greater regulatory 
                certainty, the Administrator may, after public notice 
                and opportunity to comment, add nonhazardous secondary 
                materials to the list published under paragraph (1)--
                            (i) as the Administrator determines 
                        necessary; or
                            (ii) based on a petition submitted by any 
                        person.
                    (B) Response.--Not later than 120 days after 
                receiving any petition under subparagraph (A)(ii), the 
                Administrator shall respond to the petition.
                    (C) Requirements.--In making a determination under 
                this paragraph, the Administrator may decline to add a 
                material to the list under paragraph (1) if the 
                Administrator determines that regulation under section 
                112 of the Clean Air Act (42 U.S.C. 7412) would not 
                reasonably protect public health with an ample margin 
                of safety.

SEC. 315. OTHER PROVISIONS.

    (a) Establishment of Standards Achievable in Practice.--In 
promulgating rules under section 312(a), the Administrator shall ensure 
that emissions standards for existing and new sources established under 
section 112 or 129 of the Clean Air Act (42 U.S.C. 7412, 7429), as 
applicable, can be met under actual operating conditions consistently 
and concurrently with emission standards for all other air pollutants 
regulated by the rule for the source category, taking into account 
variability in actual source performance, source design, fuels, inputs, 
controls, ability to measure the pollutant emissions, and operating 
conditions.
    (b) Regulatory Alternatives.--For each regulation promulgated 
pursuant to section 312(a), from among the range of regulatory 
alternatives authorized under the Clean Air Act (42 U.S.C. 7401 et 
seq.) including work practice standards under section 112(h) of such 
Act (42 U.S.C. 7412(h)), the Administrator shall impose the least 
burdensome, consistent with the purposes of such Act and Executive 
Order 13563 published at 76 Fed. Reg. 3821 (January 21, 2011).

                    TITLE IV--WORKFORCE DEVELOPMENT

             Subtitle A--Job Training Program Consolidation

SEC. 401. SHORT TITLE.

    This subtitle may be cited as the ``Job Training Program 
Consolidation Act of 2011''.

SEC. 402. DEFINITIONS.

    In this subtitle:
            (1) Job training program.--The term ``job training 
        program'' means any federally funded employment and training 
        program, including the programs identified in the January 2011 
        report of the Government Accountability Office entitled 
        ``Multiple Employee and Training Programs: Providing 
        Information on Colocating Services and Consolidating 
        Administrative Structures Could Promote Efficiencies'' (GAO-11-
        92) or the March 2011 report of such Office entitled 
        ``Opportunities to Reduce Potential Duplication in Government 
        Programs, Save Tax Dollars, and Enhance Revenue'' (GAO-11-
        318SP).
            (2) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.

SEC. 403. STUDY AND PROPOSAL ON DUPLICATIVE JOB TRAINING PROGRAMS.

    (a) Study Required.--The Director shall conduct a study on the 
effectiveness of current job training programs and on the consolidation 
of duplicative job training programs, using funds that are authorized 
under Federal law other than this subtitle and available for activities 
described in this section.
    (b) Recommendations.--
            (1) In general.--In conducting the study required by 
        subsection (a), the Director shall prepare recommendations for 
        legislation.
            (2) Reduction of programs and costs.--The recommended 
        legislation shall--
                    (A) reduce the overall number of job training 
                programs;
                    (B) reduce Federal administrative costs of job 
                training programs;
                    (C) reduce State and local administrative costs of 
                job training programs; and
                    (D) ensure that job training programs for veterans 
                are visible and accessible to veterans seeking 
                employment.
            (3) Consolidation under single agency.--The recommended 
        legislation shall consolidate all job training programs into a 
        reduced number of programs that--
                    (A) are carried out by a single agency; and
                    (B) emphasize the provision of job training that 
                develops skills needed by employers in the State or 
                local area involved.
            (4) Use of savings.--Under the recommended legislation--
                    (A) half of all funds saved shall be used to 
                increase funds for individual training accounts under 
                section 134(d)(4)(F) of the Workforce Investment Act of 
                1998 (29 U.S.C. 2864(d)(4)(F)); and
                    (B) half of all funds saved shall be deposited in 
                the General Fund of the Treasury for debt reduction 
                purposes.
    (c) Report.--Using funds described in subsection (a), not later 
than 180 days after the date of enactment of this Act, the Director 
shall prepare and submit to Congress a report on the results of the 
study required by subsection (a), including the recommendations 
described in subsection (b).

                Subtitle B--Innovation and Job Creation

SEC. 411. SHORT TITLE.

    This subtitle may be cited as the ``National Innovation and Job 
Creation Act of 2011''.

SEC. 412. DEFINITIONS.

    In this subtitle:
            (1) Board.--The term ``Board'' means the National 
        Innovation Council Board appointed under section 414.
            (2) CLIC.--The term ``CLIC'' means the CLUSTER Information 
        Center established under section 416.
            (3) CLUSTER initiative.--The term ``CLUSTER Initiative'' 
        means a formally organized effort to promote cluster growth and 
        competitiveness through collaborative activities among cluster 
        participants.
            (4) CLUSTER program.--The term ``CLUSTER Program'' means 
        the Competitive Leadership for the United States Through its 
        Economic Regions Program established under this subtitle to 
        create and sustain a series of initiatives to promote economic 
        growth in industry groups.
            (5) Council.--The term ``Council'' means the National 
        Innovation Council established under section 413.
            (6) Industry cluster.--The term ``industry cluster'' means 
        a geographic concentration of interconnected businesses, 
        suppliers, service providers, and associated institutions in a 
        particular field.
            (7) Industry research council.--The term ``Industry 
        Research Council'' means an entity that--
                    (A) is organized for the purpose of advancing 
                innovation;
                    (B) is comprised of at least 5 for profit entities; 
                and
                    (C) contributes not less than the minimum amount 
                established by the Council toward any grant awarded by 
                the Council.
            (8) Innovation.--The term ``innovation'' means the 
        achievement of meaningful increases in productivity through the 
        introduction or diffusion of a new or improved product, 
        service, process, source of supply of materials, business 
        structure, business practice, business model, or methods of 
        production, delivery, distribution, financing, marketing, 
        packaging, promoting, or pricing.
            (9) Productivity.--The term ``productivity'' means the 
        measure of the quality or quantity of economic output relative 
        to the input required to produce that output.

SEC. 413. NATIONAL INNOVATION COUNCIL.

    (a) Establishment.--
            (1) In general.--There is established, in the Executive 
        Office of the President, the ``National Innovation Council'', 
        which shall--
                    (A) coordinate Federal innovation policy; and
                    (B) provide financial assistance for State and 
                local innovation initiatives.
            (2) Director.--The Council shall be under the direction of 
        a Director, who shall be appointed by the President, with the 
        advice and consent of the Senate.
            (3) Staff.--
                    (A) In general.--In accordance with such policies 
                as the Council shall from time to time prescribe, the 
                Director shall appoint and fix the compensation of such 
                personnel as may be necessary to enable the Council to 
                perform its duties under this subtitle.
                    (B) Temporary staff.--The Director may appoint, for 
                a limited term or on a temporary basis, such 
                professional or technical staff as the Director 
                determines to be necessary to carry out specific 
                functions under this subtitle for which their expertise 
                is required.
    (b) Powers and Responsibilities.--
            (1) Policy formulation and advocacy.--The Council shall be 
        responsible for formulating and advocating for the innovation 
        policy of the Federal Government.
            (2) Assistance.--The Council shall achieve the goal 
        described in paragraph (1) by--
                    (A) providing assistance to other Federal agencies 
                with respect to innovation, upon request;
                    (B) assisting the Census Bureau, the Bureau of 
                Economic Analysis, the Bureau of Labor Statistics, 
                other major Federal statistical agencies, and the 
                National Science Foundation in developing operational 
                measures of innovation that can be included in new or 
                existing economic data sources, and providing funding 
                to such agencies for such purpose;
                    (C) providing Federal agencies and companies with 
                the information they need to promote innovation and 
                productivity; and
                    (D) assisting companies with activities such as--
                            (i) joint industry-university research 
                        partnerships;
                            (ii) technology transfer from laboratories 
                        to businesses;
                            (iii) technology-based entrepreneurship;
                            (iv) industrial modernization through 
                        adoption of best practice technologies and 
                        business practices; and
                            (v) incumbent worker training.
            (3) Innovation measurement.--The Council shall create 
        methods of measuring innovation and productivity.
            (4) Research program.--The Council shall carry out a 
        program of research on innovation and productivity.
            (5) Advocacy.--The Council shall recommend specific 
        measures to improve innovation and productivity in the United 
        States.
    (c) Collaboration.--The Council shall collaborate with, and provide 
funding to, the Census Bureau, the Bureau of Economic Analysis, the 
Bureau of Labor Statistics, other major Federal statistical agencies, 
and the National Science Foundation to develop--
            (1) measures of productivity in the service sector;
            (2) measures of total factor productivity, reflecting 
        capital, materials, energy, and purchased services, labor, and 
        other relevant factors as productive inputs for all industries;
            (3) measures of gross product and productivity for counties 
        and metropolitan areas; and
            (4) measures of private rates of return from research and 
        development.
    (d) Data Collection and Analysis.--The Council shall--
            (1) collect and analyze data necessary to evaluate the 
        impact on productivity resulting from the Council's programs; 
        and
            (2) require recipients of funding or other assistance from 
        the Council to provide information necessary to measure 
        improvements in productivity resulting from such funding or 
        assistance.
    (e) Annual Report.--The Council shall annually submit a report (to 
be known as the ``National Innovation Report'') to Congress, which 
shall set forth--
            (1) the current and foreseeable trends in innovation and 
        productivity in the Nation;
            (2) a review and analysis of recent domestic and 
        international developments affecting innovation and 
        productivity in the Nation;
            (3) goals for improved innovation and productivity in the 
        Nation;
            (4) a program designed to improve innovation and 
        productivity in the Nation; and
            (5) such recommendations for legislation as the President 
        considers desirable.

SEC. 414. NATIONAL INNOVATION COUNCIL BOARD.

    (a) Establishment.--The Council shall be under the direction of the 
National Innovation Council Board, which shall be comprised of 11 
voting members, who shall be appointed by the President, with the 
advice and consent of the Senate.
    (b) Appointment Criteria.--
            (1) Qualifications.--Each voting member of the Board--
                    (A) shall be eminent in the field of business, 
                economic development, health care, applied sciences, 
                engineering, education, or public affairs;
                    (B) shall have a record of distinguished service in 
                his or her field; and
                    (C) shall have demonstrated knowledge and 
                appreciation of the value of innovation.
            (2) Representation.--In making appointments under this 
        section, the President shall--
                    (A) give due regard to equitable representation of 
                members who are women or who represent minority groups;
                    (B) provide representation of the views of leaders 
                in economic development and innovation in all areas of 
                the Nation; and
                    (C) appoint not fewer than--
                            (i) 1 representative with a background in 
                        manufacturing;
                            (ii) 1 representative with a background in 
                        the service industry;
                            (iii) 1 representative of higher education;
                            (iv) 1 representative of State and local 
                        government;
                            (v) 1 representative of organized labor;
                            (vi) 1 representative of the nonprofit 
                        sector;
                            (vii) 1 representative of economic 
                        development organizations;
                            (viii) 1 representative of professional 
                        associations; and
                            (ix) 1 recognized expert in innovation.
            (3) Terms.--Voting members of the Board shall be appointed 
        to 4-year terms.
            (4) Ex officio members.--The Secretary of Commerce and the 
        Secretary of Labor shall serve as ex officio members of the 
        Board.

SEC. 415. TRANSFER OF PROGRAMS AND FUNCTIONS.

    There shall be transferred to the Council the functions, personnel, 
assets, and liabilities of--
            (1) the Manufacturing Extension Partnership Program of the 
        National Institute of Standards and Technology;
            (2) the Technology Innovation Program of the National 
        Institute of Standards and Technology;
            (3) the Office of Technology Partnerships of the National 
        Institute of Standards and Technology;
            (4) the Partnerships for Innovation of the National Science 
        Foundation;
            (5) the Industry-University Cooperative Research Center 
        Program of the National Science Foundation;
            (6) the Engineering Research Center Program of the National 
        Science Foundation; and
            (7) the Workforce Innovation in Regional Economic 
        Development of the Department of Labor.

SEC. 416. CLUSTER INFORMATION CENTER.

    (a) Establishment.--There is established within the Council the 
CLUSTER Information Center.
    (b) Purposes.--The purpose of the CLIC is to promote the 
collection, development, and dissemination of data and analysis on 
industry clusters throughout the United States.
    (c) Databases.--The Director of the Council shall compile databases 
for the CLIC from existing Federal data sets available from--
            (1) the Census Bureau;
            (2) the Bureau of Economic Analysis;
            (3) the Bureau of Labor Statistics;
            (4) the International Trade Administration;
            (5) the Statistics of Income Program of the Internal 
        Revenue Service;
            (6) the Office of Patent Resource Administration in the 
        United States Patent and Trademark Office;
            (7) the National Science Foundation;
            (8) the National Innovation Council;
            (9) other Federal agencies; and
            (10) non-Federal sources, including private databases, as 
        appropriate.
    (d) Functions.--
            (1) In general.--The CLIC shall--
                    (A) support and disseminate research on the 
                formation and evolution of industry clusters, CLUSTER 
                Initiatives, and CLUSTER Programs;
                    (B) gather, analyze, and disseminate information on 
                the best practices for the development of industry 
                clusters, CLUSTER Initiatives, and CLUSTER Programs in 
                the United States and in other countries, specifically 
                determining how productivity, innovation, and 
                competitive advantage can be maximized through industry 
                clusters, CLUSTER Initiatives, and CLUSTER Programs;
                    (C) develop technical assistance guides for 
                regional cluster analysis and CLUSTER Initiative and 
                initiative program development and operations; and
                    (D) bring together representatives of industry 
                clusters, CLUSTER Initiatives, and CLUSTER Programs, 
                experts, and scholars to disseminate developments in 
                cluster analysis, initiatives, and programs.
            (2) Data collection.--The CLIC shall collect and make 
        available data on cluster activity showing--
                    (A) breadth, a geographically-specific picture of 
                the array of clusters in each key industry throughout 
                the United States, with data on size, specialization, 
                and competitiveness of the industry clusters in each 
                State, region, and major metropolitan area;
                    (B) depth, for each cluster, detailed data such as 
                regional domestic product contribution, total jobs and 
                earnings by key occupations, establishment size, nature 
                of specialization, patents, Federal research and 
                development spending, citation patterns, and trade; and
                    (C) flow, estimates of supply chain product and 
                service flows within and between industry clusters.
            (3) Report.--The CLIC shall--
                    (A) monitor the extent to which the data available 
                to it is sufficient for proper analysis of cluster 
                activity; and
                    (B) submit a report to Congress that includes 
                recommendations regarding further authorization for 
                data collection, as necessary.
            (4) Limitation.--The CLIC may not collect or analyze data 
        which would otherwise be in violation of Federal privacy laws.
            (5) Dissemination of analyses.--Data and analysis compiled 
        by the CLIC shall be made available to other Federal agencies, 
        State and local governments, and nonprofit and for-profit 
        entities, to guide investments in industry cluster activities 
        that will lead to increased productivity, innovation, and 
        competitive advantage, including--
                    (A) cluster development;
                    (B) economic development;
                    (C) workforce development;
                    (D) research and development;
                    (E) business site locations;
                    (F) analysis of United States competitiveness, by 
                industry, industry cluster, and geography; and
                    (G) other appropriate activities.
    (e) Cluster Initiative and Cluster Program Registry.--
            (1) In general.--The CLIC shall maintain a publicly 
        available registry of CLUSTER Initiatives and CLUSTER Programs 
        that contain information that is useful to the study and 
        analysis of CLUSTER Initiatives and CLUSTER Programs, 
        including--
                    (A) organizational structure;
                    (B) membership;
                    (C) activities;
                    (D) funding; and
                    (E) perceived impacts of registered CLUSTER 
                Initiatives and CLUSTER Programs.
            (2) Information collected.--At the time a CLUSTER 
        Initiative is registered, the CLIC shall collect sufficient 
        information to demonstrate that the CLUSTER Initiative--
                    (A) is an industry-led effort with not fewer than 5 
                member firms and 1 lead organizing entity;
                    (B) involves not fewer than 3 cluster support 
                organizations, such workforce boards, community 
                colleges, universities, and industry associations; and
                    (C) has a strategy to enhance the competitive 
                position of the cluster.
            (3) Priority funding.--Registered CLUSTER Initiatives and 
        CLUSTER Programs shall receive priority for funding from the 
        Council and the CLIC.
            (4) Use of information.--Information contained in the 
        CLUSTER Initiative and CLUSTER Program Registry shall be made 
        available to other Federal agencies, State and local 
        governments, and nonprofit and for-profit entities.
    (f) Outside Contracts.--The Director of the Council may contract 
out the operation of the CLIC to an external organization such as 
another Federal agency, a university, a nonprofit research entity, or a 
private company.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated $20,000,000 to carry out this section.

SEC. 417. GRANT PROGRAMS.

    (a) CLUSTER Grant Program.--
            (1) Authorization.--The Council shall award grants to 
        eligible grantees to operate a CLUSTER Grant Program for the 
        purpose of awarding grants to CLUSTER Initiatives in accordance 
        with the requirements under this subsection.
            (2) Eligible grantees.--A grant may be awarded under this 
        subsection to--
                    (A) a State; or
                    (B) an entity designated by a State or a group of 
                States, which may be a city, a county, another 
                political subdivision of a State, a nonprofit 
                organization, or any other economic development 
                organization.
            (3) Use of grant funds.--All entities receiving grant funds 
        under this subsection shall ensure that CLUSTER Initiatives 
        supported by such funds--
                    (A) are operated in a manner consistent with the 
                ``best practices'' established by the CLUSTER Program;
                    (B) are industry-led;
                    (C) are inclusive, seeking any and all 
                organizations that might find benefit from 
                participation, including startups, firms not locally 
                owned, and firms rival to existing members;
                    (D) encourage broad participation by and 
                collaboration among all types of participants;
                    (E) involve key State and local government actors; 
                and
                    (F) participate in the CLIC registry and research 
                activities described in section 416(e).
            (4) Grant types.--
                    (A) Feasibility study grants.--
                            (i) In general.--A grant in an amount not 
                        to exceed $250,000 shall be awarded to eligible 
                        grantees for Cluster Program feasibility 
                        studies, planning, and operations.
                            (ii) Conditions.--A feasibility study grant 
                        shall be awarded to not fewer than 1 eligible 
                        grantee in each State on a 1-time basis, with 
                        no matching funds required.
                    (B) Start up and annual grants.--
                            (i) Start up grant.--A 1-year grant in an 
                        amount not to exceed $1,000,000 shall be 
                        awarded to not fewer than 1 new cluster program 
                        in each State to support planning studies, 
                        provide technical assistance, and fund start-up 
                        activities.
                            (ii) Annual grant.--An annual grant shall 
                        be awarded to not fewer than 1 early-stage 
                        cluster programs in each State to provide 
                        technical assistance and fund operating 
                        activities.
                            (iii) Renewal.--Grants awarded under clause 
                        (ii) may be renewed for a total period not to 
                        exceed 5 years (including any start up grant).
                            (iv) Matching funds requirement.--
                                    (I) Initial period.--During the 
                                first 2 years in which an eligible 
                                entity receives grant funding under 
                                this subparagraph, the eligible entity 
                                shall provide matching funds in an 
                                amount equal to the amount of funds 
                                received under this subparagraph.
                                    (II) Subsequent period.--If the 
                                Council determines, in accordance with 
                                criteria established by the CLUSTER 
                                Program, that an eligible grantee has 
                                demonstrated greater effectiveness than 
                                other grant recipients during the 
                                period described in subclause (I), the 
                                non-Federal matching requirement for 
                                such eligible grantee in future years 
                                may be reduced.
                    (C) Matching grants for cluster initiatives.--
                            (i) In general.--A grant of between 
                        $1,000,000 and $15,000,000 may be awarded, on a 
                        competitive basis, to CLUSTER Programs for the 
                        purpose of supporting CLUSTER Initiatives.
                            (ii) Matching requirement.--An eligible 
                        entity receiving a grant under this 
                        subparagraph shall provide matching funds in an 
                        amount equal to the amount of grant funds 
                        received under this subparagraph.
                            (iii) Selection criteria.--In selecting 
                        grant recipients under this subparagraph, the 
                        Council shall consider--
                                    (I) the probable impact of the 
                                proposed effort on the competitiveness 
                                of the area's traded sector;
                                    (II) if the proposed effort fits 
                                within a broader achievable economic 
                                development strategy;
                                    (III) the capacity and commitment 
                                of the sponsoring organization;
                                    (IV) the degree of support and 
                                involvement from relevant State and 
                                regional economic and workforce 
                                development organizations, other public 
                                purpose institutions (such as 
                                universities, community colleges, 
                                workforce boards), and the private 
                                sector, including industry 
                                associations;
                                    (V) the eligible grantee's expected 
                                ability to access additional funds from 
                                Federal, State, and local sources;
                                    (VI) the eligible grantee's 
                                capacity to sustain activities once 
                                grant funds have been expended; and
                                    (VII) the extent to which economic 
                                diversity across regions of the United 
                                States would be increased through the 
                                grant.
            (5) Application process.--The application process for 
        grants awarded under this subsection shall be on a rolling 
        basis.
            (6) Authorization of appropriations.--There are authorized 
        to be appropriated $350,000,000 for fiscal year 2012 and each 
        subsequent fiscal year to carry out this subsection.
    (b) National Sector Research Grants.--
            (1) Grants authorized.--The Council shall award competitive 
        grants to eligible companies and joint ventures to encourage 
        innovation through research partnerships between academic 
        institutions in the United States and industry research 
        alliances.
            (2) Eligibility.--Each company and joint venture desiring a 
        grant under this subsection shall--
                    (A) submit an application to the Council containing 
                such information as the Council may reasonably require;
                    (B) form an industry-led research consortium 
                consisting of at least 5 companies; and
                    (C) agree to develop a 3- to 10-year technology 
                roadmap that charts out generic science and technology 
                needs that the companies share.
            (3) Federal cost share.--The Federal share of a project 
        funded by a grant under this subsection shall be not more than 
        50 percent of the total project costs.
    (c) Productivity Enhancement Research Grants.--The Council shall 
award grants to academic institutions in the United States and to joint 
ventures comprised of academic institutions and private companies to 
support early-stage research into methods of increasing productivity 
and innovation, with broad application for a range of industries, 
including--
            (1) automated manufacturing or service processes;
            (2) technology-enabled remote service delivery;
            (3) quality improvement; and
            (4) other methods of improving productivity and innovation.
    (d) State Innovation-Based Economic Development Partnership 
Grants.--
            (1) Grants authorized.--The Council shall award innovation-
        based economic development partnership grants to State economic 
        development entities designated by each State.
            (2) Grant types.--
                    (A) Feasibility study grants.--
                            (i) In general.--A grant of up to $250,000 
                        shall be awarded to States for feasibility 
                        studies, planning, and operations.
                            (ii) Conditions.--A feasibility study grant 
                        shall be awarded to not fewer than 1 eligible 
                        grantee in each State on a 1-time basis, with 
                        no matching funds required.
                    (B) Start-up and annual grants.--
                            (i) Start up grant.--A 1-year grant in an 
                        amount not to exceed $2,000,000 shall be 
                        awarded to States to support planning studies, 
                        provide technical assistance, and fund start-up 
                        activities.
                            (ii) Annual grants.--In addition to the 
                        grants authorized under clause (i), annual 
                        grants shall be awarded to States to provide 
                        technical assistance and fund operating 
                        activities. Grants awarded under this clause 
                        may be renewed indefinitely.
                            (iii) Minimum grants.--Each State shall be 
                        awarded not fewer than 1 grant under this 
                        subparagraph.
                            (iv) Matching funds requirement.--A State 
                        receiving a start-up grant under this 
                        subparagraph shall provide--
                                    (I) for the first $1,000,000 in 
                                grant funds, a match of $1 for every $2 
                                received in grant funds; and
                                    (II) for any additional amount in 
                                grant funds, a match of $2 for every $1 
                                received in grant funds.
            (3) IBED plans.--
                    (A) Initial plans.--Each State desiring a grant 
                under this subsection shall submit to the Council an 
                initial innovation-based economic development plan 
                (referred to in this paragraph as an ``IBED Plan''), 
                which describes--
                            (i) how grant funds would be used to 
                        support the creation of alliances for the 
                        dissemination of innovation among local 
                        governments, businesses, educational 
                        institutions, and other institutions;
                            (ii) how companies within the State would 
                        benefit from the activities funded through a 
                        grant under this subsection; and
                            (iii) how innovation would be disseminated 
                        through the activities described in paragraph 
                        (4) to companies within the State.
                    (B) Review.--The Council and an outside panel of 
                experts shall--
                            (i) review the initial IBED Plans submitted 
                        under subparagraph (A); and
                            (ii) notify the States of any suggested 
                        modifications to such plans.
                    (C) Resubmission of plans.--States may submit 
                modified IBED Plans to the Council.
                    (D) Use of plans.--The Council shall score IBED 
                Plans submitted under this paragraph and award 
                competitive grants to States under this subsection, to 
                the extent available, on the basis of such scores. In 
                scoring plans under this subparagraph, the Council 
                shall award additional points for multi-State and 
                regional innovation-based economic development efforts.
            (4) Use of funds.--Grant funds received under this 
        subsection may be used to establish--
                    (A) technology commercialization centers;
                    (B) industry-university research centers;
                    (C) regional cluster development programs;
                    (D) regional skills alliances;
                    (E) entrepreneurial support programs;
                    (F) science parks; and
                    (G) related activities to spur innovation or 
                productivity.
            (5) Federal cost share.--The Federal share of a project 
        funded by a grant under this subsection shall be not more than 
        \1/3\ of the total project costs.
            (6) Noncompetitive grants.--The Council shall award 
        noncompetitive planning and technical assistance grants to 
        States that do not receive a competitive grant under this 
        subsection, which shall be used to improve the quality of the 
        States' proposals for subsequent grants under this section.
    (e) Technology Diffusion Grants.--
            (1) Grants authorized.--The Council shall award grants to 
        manufacturing extension partnership centers in each State to 
        promote the diffusion of existing technological innovations to 
        companies in which such innovations are underutilized. 
        Notwithstanding any other provision of law, a manufacturing 
        extension partnership may use grant funds awarded under this 
        subsection for activities in the service sector that comply 
        with the requirements under this subsection.
            (2) Grant types.--
                    (A) Feasibility study grants.--
                            (i) In general.--A grant of up to $250,000 
                        shall be awarded to manufacturing extension 
                        partnership centers for feasibility studies, 
                        planning, and operations.
                            (ii) Conditions.--A feasibility study grant 
                        shall be awarded to not fewer than 1 eligible 
                        grantee in each State on a 1-time basis, with 
                        no matching funds required.
                    (B) Start up and annual grants.--
                            (i) Start up grant.--A 1-year grant of up 
                        to $2,000,000 shall be awarded to a 
                        manufacturing extension partnership center in 
                        each State to support planning studies, provide 
                        technical assistance, and fund start-up 
                        activities.
                            (ii) Annual grants.--In addition to the 
                        grants authorized under clause (i), annual 
                        grants shall be awarded to manufacturing 
                        extension partnership centers in each State 
                        provide technical assistance and fund operating 
                        activities. Grants awarded under this clause 
                        may be renewed indefinitely.
                            (iii) Matching funds requirement.--A 
                        manufacturing extension partnership center 
                        receiving a grant under this subparagraph shall 
                        provide--
                                    (I) for the first $1,000,000 in 
                                grant funds, a match of $1 for every $2 
                                received in grant funds; and
                                    (II) for any additional amount in 
                                grant funds, a match of $2 for every $1 
                                received in grant funds.
            (3) Use of funds.--Grants funds received under this 
        subsection may be used--
                    (A) to establish manufacturing extension 
                partnership centers in each State to provide--
                            (i) support for manufacturing and services; 
                        and
                            (ii) innovation awards; and
                    (B) to support the diffusion of innovation in any 
                sector of the economy, including the service sector.
            (4) Evaluation process.--In evaluating proposals for grants 
        under this subsection, the Council shall--
                    (A) determine the degree to which measurable 
                productivity gains are expected to be achieved through 
                each applicant's proposed diffusion of innovation;
                    (B) follow the 2-step process established under 
                subsection (d)(3) for grants to carry out the 
                activities described in paragraph (3)(A); and
                    (C) require manufacturing extension partnership 
                centers to submit a plan to carry out the activities 
                described in paragraph (3)(B).
    (f) Use of Grants.--Grant funds received under this section shall 
be used to--
            (1) perform Council-supported grant work in the United 
        States; and
            (2) promote the production of any resulting goods or 
        services in the United States.
    (g) Award Criteria.--In evaluating proposals for grants under this 
section, the Council shall--
            (1) determine, as 1 award factor, the extent to which a 
        grant to each State or manufacturing extension partnership 
        center is expected to increase production, wages, or employment 
        in the United States;
            (2) not award any grant which the Council believes could 
        result in a decrease in production, wages, or employment in the 
        United States; and
            (3) consult with technology-specific boards staffed with 
        experts in fields appropriate to the proposals for grants being 
        evaluated.
    (h) Minimum Funding Level.--
            (1) In general.--For each of the grant programs established 
        under subsections (a), (d), and (e)--
                    (A) not fewer than 1 grant shall be awarded to a 
                grantee in each State; and
                    (B) the amount of each grant shall be not less than 
                80 percent of the average grant awarded in such grant 
                program.
            (2) Population-based allocations.--In each State, the total 
        amount of grant funds awarded to grantees in such State under 
        subsections (a) through (e) shall be not less than 50 percent 
        of the product of--
                    (A) the percentage of the population of the United 
                States who are residents of such State, according to 
                the most recent decennial census; and
                    (B) the total amount of grant funds awarded under 
                subsections (a) through (e).
    (i) Coordination of Funds.--Recipients of grants under this section 
may use, as matching funds, amounts received from the agencies listed 
in section 415, to the extent approved by the Council and such 
agencies.

SEC. 418. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the National Innovation 
Council, for each of the fiscal years 2012 through 2016, such sums as 
may be necessary to carry out this subtitle.

                            TITLE V--OFFSETS

              Subtitle A--Surtax on High-income Taxpayers

SEC. 501. SURTAX ON MILLIONAIRES.

    (a) In General.--Subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

                  ``PART VIII--SURTAX ON MILLIONAIRES

``Sec. 59B. Surtax on millionaires.

``SEC. 59B. SURTAX ON MILLIONAIRES.

    ``(a) General Rule.--In the case of a taxpayer other than a 
corporation for any taxable year beginning after 2012 and before 2023, 
there is hereby imposed (in addition to any other tax imposed by this 
subtitle) a tax equal to 2 percent of so much of the modified adjusted 
gross income of the taxpayer for such taxable year as exceeds 
$1,000,000 ($500,000, in the case of a married individual filing a 
separate return).
    ``(b) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2013, each dollar amount under subsection (a) 
        shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2011' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $10,000, such amount shall be rounded 
        to the next highest multiple of $10,000.
    ``(c) Modified Adjusted Gross Income.--For purposes of this 
section--
            ``(1) In general.--The term `modified adjusted gross 
        income' means adjusted gross income reduced by the excess of--
                    ``(A) gross income from a small business (as 
                defined in section 6654(d)(1)(D)(iii))--
                            ``(i) which is not a passive activity 
                        (within the meaning of section 469(c)), and
                            ``(ii) with respect to which the taxpayer 
                        pays wages to at least 1 full-time equivalent 
                        employee (as defined in section 45R(d)(2)), 
                        other than the taxpayer, the taxpayer's spouse, 
                        or an individual who bears a relationship to 
                        the taxpayer described in section 152(d)(2), 
                        over
                    ``(B) the deductions which are properly allocable 
                to such income.
            ``(2) Regulations.--The Secretary shall prescribe 
        regulations similar to the regulations under section 469(l) for 
        determining the income that is taken into account under 
        paragraph (1)(A).
    ``(d) Special Rules.--
            ``(1) Nonresident alien.--In the case of a nonresident 
        alien individual, only amounts taken into account in connection 
        with the tax imposed under section 871(b) shall be taken into 
        account under this section.
            ``(2) Citizens and residents living abroad.--The dollar 
        amount in effect under subsection (b) shall be decreased by the 
        excess of--
                    ``(A) the amounts excluded from the taxpayer's 
                gross income under section 911, over
                    ``(B) the amounts of any deductions or exclusions 
                disallowed under section 911(d)(6) with respect to the 
                amounts described in subparagraph (A).
            ``(3) Charitable trusts.--Subsection (a) shall not apply to 
        a trust all the unexpired interests in which are devoted to one 
        or more of the purposes described in section 170(c)(2)(B).
            ``(4) Not treated as tax imposed by this chapter for 
        certain purposes.--The tax imposed under this section shall not 
        be treated as tax imposed by this chapter for purposes of 
        determining the amount of any credit under this chapter or for 
        purposes of section 55.''.
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

                ``part viii. surtax on millionaires.''.

    (c) Section 15 Not To Apply.--The amendment made by subsection (a) 
shall not be treated as a change in a rate of tax for purposes of 
section 15 of the Internal Revenue Code of 1986.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.

               Subtitle B--Closing Big Oil Tax Loopholes

SEC. 511. SHORT TITLE.

    (a) Short Title.--This subtitle may be cited as the ``Close Big Oil 
Tax Loopholes Act''.

                  PART I--CLOSE BIG OIL TAX LOOPHOLES

SEC. 521. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO MAJOR 
              INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY 
              TAXPAYERS.

    (a) In General.--Section 901 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (n) as subsection (o) and by 
inserting after subsection (m) the following new subsection:
    ``(n) Special Rules Relating to Major Integrated Oil Companies 
Which Are Dual Capacity Taxpayers.--
            ``(1) General rule.--Notwithstanding any other provision of 
        this chapter, any amount paid or accrued by a dual capacity 
        taxpayer which is a major integrated oil company (as defined in 
        section 167(h)(5)(B)) to a foreign country or possession of the 
        United States for any period shall not be considered a tax--
                    ``(A) if, for such period, the foreign country or 
                possession does not impose a generally applicable 
                income tax, or
                    ``(B) to the extent such amount exceeds the amount 
                (determined in accordance with regulations) which--
                            ``(i) is paid by such dual capacity 
                        taxpayer pursuant to the generally applicable 
                        income tax imposed by the country or 
                        possession, or
                            ``(ii) would be paid if the generally 
                        applicable income tax imposed by the country or 
                        possession were applicable to such dual 
                        capacity taxpayer.
        Nothing in this paragraph shall be construed to imply the 
        proper treatment of any such amount not in excess of the amount 
        determined under subparagraph (B).
            ``(2) Dual capacity taxpayer.--For purposes of this 
        subsection, the term `dual capacity taxpayer' means, with 
        respect to any foreign country or possession of the United 
        States, a person who--
                    ``(A) is subject to a levy of such country or 
                possession, and
                    ``(B) receives (or will receive) directly or 
                indirectly a specific economic benefit (as determined 
                in accordance with regulations) from such country or 
                possession.
            ``(3) Generally applicable income tax.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `generally applicable 
                income tax' means an income tax (or a series of income 
                taxes) which is generally imposed under the laws of a 
                foreign country or possession on income derived from 
                the conduct of a trade or business within such country 
                or possession.
                    ``(B) Exceptions.--Such term shall not include a 
                tax unless it has substantial application, by its terms 
                and in practice, to--
                            ``(i) persons who are not dual capacity 
                        taxpayers, and
                            ``(ii) persons who are citizens or 
                        residents of the foreign country or 
                        possession.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxes paid or accrued in taxable years beginning after 
        the date of the enactment of this Act.
            (2) Contrary treaty obligations upheld.--The amendments 
        made by this section shall not apply to the extent contrary to 
        any treaty obligation of the United States.

SEC. 522. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL, 
              NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

    (a) Denial of Deduction.--Paragraph (4) of section 199(c) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(E) Special rule for certain oil and gas 
                income.--In the case of any taxpayer who is a major 
                integrated oil company (as defined in section 
                167(h)(5)(B)) for the taxable year, the term `domestic 
                production gross receipts' shall not include gross 
                receipts from the production, transportation, or 
                distribution of oil, natural gas, or any primary 
                product (within the meaning of subsection (d)(9)) 
                thereof.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 523. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND 
              DEVELOPMENT COSTS.

    (a) In General.--Section 263(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new sentence: ``This 
subsection shall not apply to amounts paid or incurred by a taxpayer in 
any taxable year in which such taxpayer is a major integrated oil 
company (as defined in section 167(h)(5)(B)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after December 
31, 2011.

SEC. 524. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR OIL AND GAS 
              WELLS.

    (a) In General.--Section 613A of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(f) Application With Respect to Major Integrated Oil Companies.--
In the case of any taxable year in which the taxpayer is a major 
integrated oil company (as defined in section 167(h)(5)(B)), the 
allowance for percentage depletion shall be zero.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 525. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

    (a) In General.--Section 193 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(d) Application With Respect to Major Integrated Oil Companies.--
This section shall not apply to amounts paid or incurred by a taxpayer 
in any taxable year in which such taxpayer is a major integrated oil 
company (as defined in section 167(h)(5)(B)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after December 
31, 2011.

          PART II--OUTER CONTINENTAL SHELF OIL AND NATURAL GAS

SEC. 531. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND DEEP GAS 
              ROYALTY RELIEF.

    (a) In General.--Sections 344 and 345 of the Energy Policy Act of 
2005 (42 U.S.C. 15904, 15905) are repealed.
    (b) Administration.--The Secretary of the Interior shall not be 
required to provide for royalty relief in the lease sale terms 
beginning with the first lease sale held on or after the date of 
enactment of this Act for which a final notice of sale has not been 
published.
                                 <all>