[Congressional Record Volume 149, Number 82 (Thursday, June 5, 2003)]
[Senate]
[Pages S7498-S7506]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 854. Mrs. BOXER (for herself, Mr. Lugar, and Ms. Cantwell) 
proposed an amendment to amendment SA 850 proposed by Mr. Domenici (for 
Mr. Frist (for himself, Mr. Daschle, Mr. Inhofe, Mr. Dorgan, Mr. Lugar, 
Mr. Johnson, Mr. Grassley, Mr. Harkin, Mr. Hagel, Mr. Durbin, Mr. 
Voinovich, Mr. Nelson of Nebraska, Mr. Talent, Mr. Dayton, Mr. Coleman, 
Mr. Edwards, Mr. Crapo, Mr. Conrad, Mr. DeWine, Mr. Baucus, Mr. 
Bunning, and Mr. Bond)) to the bill S. 14, to enhance the energy 
security of the United States, and for other purposes; as follows:

       On page 8, strike lines 16 through 19 and insert the 
     following:
       ``(4) Cellulosic biomass ethanol.--For the purpose of 
     paragraph (2), 1 gallon of cellulosic biomass ethanol--
       ``(A) shall be considered to be the equivalent of 1.5 
     gallons of renewable fuel; or
       ``(B) if the cellulosic biomass is derived from 
     agricultural residue, shall be considered to be the 
     equivalent of 2.5 gallons of renewable fuel.
                                 ______
                                 
  SA 855. Mr. DAYTON submitted an amendment intended to be proposed by 
him to the bill S. 14, to enhance the energy security of the United 
States, and for other purposes; which was ordered to lie on the table; 
as follows;

       On page 454, strike lines 5 through 9.
                                 ______
                                 
  SA 856. Mrs. BOXER (for herself, Mr. Leahy, Mr. Durbin, Mrs. 
Feinstein, Mrs. Clinton, Mr. Jeffords, and Mr. Lautenberg) proposed an 
amendment to amendment SA 850 proposed by Mr. Domenici (for Mr. Frist 
(for himself, Mr. Daschle, Mr. Inhofe, Mr. Dorgan, Mr. Lugar, Mr. 
Johnson, Mr. Grassley, Mr. Harkin, Mr. Hagel, Mr. Durbin, Mr. 
Voinovich, Mr. Nelson of Nebraska, Mr. Talent, Mr. Dayton, Mr. Coleman, 
Mr. Edwards, Mr. Crapo, Mr. Conrad, Mr. DeWine, Mr. Baucus, Mr. 
Bunning, and Mr. Bond)) to the bill S. 14, to enhance the energy 
security of the United States, and for other purposes; as follows:

       Beginning on page 18, strike line 16 and all that follows 
     through page 19, line 17, and insert the following:
       ``(p) Renewable Fuels Safe Harbor.--Notwithstanding any 
     other provision of Federal or State law, a renewable fuel 
     used or intended to be used as a motor vehicle fuel, or any 
     motor vehicle fuel containing renewable fuel, shall be 
     subject to liability standards that are not less protective 
     of human health, welfare, and the environment than any other 
     motor vehicle fuel or fuel additive.''.
                                 ______
                                 
  SA 857. Mr. KOHL (for himself and Mr. Feingold) submitted an 
amendment intended to be proposed by him to the bill S. 14, to enhance 
the energy security of the United States, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 150, line 4, strike lines 4-11 and insert the 
     following and renumber accordingly:

     SEC. 442. DECOMMISSIONING PILOT PROGRAM

       (a) Pilot Program.--The Secretary shall establish a 
     decommissioning pilot program:
       (1) to decommission and decontaminate the sodium-cooled 
     fast breeder experimental test-site reactor located in 
     northwest Arkansas in accordance with the decommissioning 
     activities contained in the August 31, 1998 Department of 
     Energy report on the reactor; and
       (2) to develop and demonstrate advanced state-of-the art 
     nuclear fuel management, storage, transportation, and 
     eventual advanced nuclear technology disposition alternatives 
     through a cooperative research and development agreement 
     utilizing the demonstration reactor remaining from the 
     Cooperative Power Reactive Demonstration Program (Pub. L. No. 
     87-315, Sec. 109, 75 Stat. 679), the Dairyland Power 
     Cooperative La Crosse Boiling Water Reactor.
       (A) The project shall include planning, research and 
     development, design, construction and demonstration of 
     advanced and alternative approaches to handling loading and 
     transportation of both canned and uncannistered stainless 
     steel and zircalloy clad nuclear fuel, and
       (B) The project shall explore technical and economic 
     feasibility of alternative approaches to nuclear fuel 
     management and storage, transportation, and eventual advanced 
     nuclear technology disposition alternatives.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section:
       (1) for the pilot program described in subsection (a)(1) 
     above, $16,000,000; and
       (2) for the pilot program described in subsection (a)(2) 
     above, $5,000,000 per year until such time as all of the 
     nuclear fuel is removed by the Department of Energy from La 
     Crosse Boiling Water Reactor site, but not to exceed a total 
     of $25,000,000.
                                 ______
                                 
  SA 858. Mr. KOHL (for himself and Mr. Feingold) submitted an 
amendment intended to be proposed by him to the bill S. 14, to enhance 
the energy security of the United States, and for other purposes; which 
was ordered to lie on the table; and follows:

       On page 150, line 4, insert the following new section and 
     renumber accordingly:

     ``SECTION. REACTOR DEMONSTRATION PROGRAM.

       (a) Definitions.--For purposes of this section--
       ``(1) the term ``contract holder'' means a party to a 
     contract with the Secretary of Energy for the disposal of 
     spent nuclear fuel or high-level radioactive waste entered 
     into pursuant to section 302(a) of the Nuclear Waste Policy 
     Act of 1982 (42 U.S.C. 10222(a)); and
       ``(2) the terms ``Administrator'', ``civilian nuclear power 
     reactor'', ``Commission'', ``Department'', ``disposal'', 
     ``high-level radioactive waste'', ``Indian tribe'', 
     ``repository'', ``reservation'', ``Secretary'', ``spent 
     nuclear fuel'', ``State'', ``storage'', ``Waste Fund'', and 
     ``Yucca Mountain site'' shall have the meanings given such 
     terms in section 2 of the Nuclear Waste Policy Act of 1982 
     (42 U.S.C. 10101).
       (b) Reactor Demonstration Program Settlement Authority.--
     Not later than 120 days after the date of enactment of this 
     Act, and notwithstanding Section 302(a)(5) of the Nuclear 
     Waste Policy Act of 1982 (42 U.S.C. 10222(a)(5)), the 
     Secretary is authorized to take title to the spent nuclear 
     fuel withdrawn from the demonstration reactor remaining from 
     the Cooperative Power Reactor Demonstration Program (Pub. L. 
     No. 87-315, Sec. 109, 75 State. 679), the Dairyland Power 
     Cooperative La Crosse Boiling Water Reactor. Immediately upon 
     the Secretary's taking title to the Dairyland Power 
     Cooperative La Crosse Boiling Water Reactor spent nuclear 
     fuel, the Secretary shall assume all responsibility and 
     liability for the interim storage and permanent disposal 
     thereof and is authorized to compensate Dairyland Power 
     Cooperative for any costs related to operating and 
     maintaining facilities necessary for such storage, from the 
     date of taking title until the Secretary removes the spent 
     nuclear fuel from the La Crosse Boiling Water Reactor site. 
     The Secretary's obligation to take title or compensate the 
     holder of the La Crosse Boiling Water Reactor spent nuclear 
     fuel under this subsection shall include all of such fuel, 
     regardless of the delivery commitment schedule for such fuel 
     under the Secretary's contract with the Dairyland Power 
     Cooperative as the contract holder under Section 302(a) of 
     the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(a)) or 
     the acceptance schedule for such fuel. The settlement 
     agreement may also include terms to--
       (1) relieve any harm caused by the Secretary's failure to 
     meet the Department's commitment, or

[[Page S7499]]

       (2) settle any legal claims against the United States 
     arising out of such failure.
       (c) Waiver of Claims.--As a condition to the Secretary's 
     taking of title to the La Crosse Boiling Water Reactor spent 
     nuclear fuel, the contract holder for such fuel shall enter 
     into a settlement agreement containing a waiver of claims 
     against the United States as provided in this section. 
     Nothing in this section shall be read to require a contract 
     holder to waive any future claim against the United States 
     arising out of the Secretary's failure to meet any new 
     obligations assumed under a settlement agreement or backup 
     storage agreement, including the acceptance of spent fuel and 
     high-level waste in accordance with the acceptance schedule 
     currently established or as may be established in the future.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to pay the 
     costs incurred by the Secretary pursuant to a settlement 
     agreement negotiated pursuant to this section that are not 
     otherwise eligible for payment from the Nuclear Waste Fund.
       (e) Savings Clause.--(1) Nothing in this section shall 
     limit the Secretary's existing authority to enter into 
     settlement agreements or address shutdown reactors and any 
     associated public health and safety or environmental concerns 
     that may arise.
       (2) Nothing in this section diminishes obligations imposed 
     upon the Federal Government by the United States District 
     Court of Idaho in an order entered on October 17, 1995 in 
     United States v. Batt (No. 91-0054-S-EJL). To the extent this 
     Act imposes obligations on the Federal Government that are 
     greater than those imposed by the court order, the provisions 
     of this Act shall prevail.''
                                 ______
                                 
  SA 859. Mr. KOHL (for himself and Mr. Feingold) submitted an 
amendment intended to be proposed by him to the bill S. 14, to enhance 
the energy security of the United States, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 194, line 12, insert the following and renumber 
     accordingly:

     SEC. 606. FEDERAL ENERGY BANK.

       Part 3 of title V of the National Energy Conservation 
     Policy Act is amended by adding at the end the following:

     SEC. 553. FEDERAL ENERGY BANK.

         ``(a) Definitions.--In this section:
         ``(1) Bank.--The term `Bank' means the Federal Energy 
     Bank established by subsection (b).
         ``(2) Energy or water efficiency project.--The term 
     `energy or water efficiency project' means a project that 
     assists a Federal agency in meeting or exceeding the energy 
     water efficiency requirements of--
         ``(A) this part;
         ``(B) title VIII;
         ``(C) subtitle F of title I of the Energy Policy Act of 
     1992 (42 U.S.C. 8262 et seq.); or
         ``(D) any applicable Executive order, including Executive 
     Order No. 13123.
         ``(3) Federal agency.--The term `Federal agency' means--
         ``(A) an Executive agency (as defined in section 105 of 
     title 5, United States Code);
         ``(B) the United States Postal Service;
         ``(C) Congress and any other entity in the legislative 
     branch; and
         ``(D) a Federal court and any other entity in the 
     judicial branch.
         ``(b) Establishment of Bank.--
         ``(1) In general.--There is established in the Treasury 
     of the United States a fund to be known as the `Federal 
     Energy Bank', consisting of--
         ``(A) such amounts as are deposited in the Bank under 
     paragraph (2);
         ``(B) such amounts as are repaid to the Bank under 
     subsection (c)(2)(D); and
         ``(C) any interest earned on investment of amounts in the 
     Bank under paragraph (3).
       ``(2) Deposits in bank.--
       ``(A) In General.--Subject to the availability of 
     appropriations and to subparagraph (B), the Secretary of the 
     Treasury shall deposit in the Bank an amount equal to 
     $250,000,000 in fiscal year 2004 and in each fiscal year 
     thereafter.
       ``(B) Maximum amount in bank.--Deposits under subparagraph 
     (a) shall cease beginning with the fiscal year following the 
     fiscal year in which the amounts in the Bank (including 
     amounts on loan from the Bank) become equal to or exceed 
     $1,000,000,000.
       ``(3) Investment of amounts.--The Secretary of the Treasury 
     shall invest such portion of the Bank as is not, in the 
     judgment of the Secretary, required to meet current 
     withdrawals. Investments may be made only in interest-bearing 
     obligations of the United States.
       ``(c) Loans From the Bank.--
       ``(1) In general.--The Secretary of the Treasury shall 
     transfer from the Bank to the Secretary such amounts as are 
     appropriated to carry out the loan program under paragraph 
     (2).
       ``(2) Loan program.--
       ``(A) Establishment.--
       ``(i) In general.--In accordance with subsection (d), the 
     Secretary, in consultation with the Secretary of Defense, the 
     Administrator of General Services, and the Director of the 
     Office of Management and Budget, shall establish a program to 
     make loans of amounts in the Bank to any Federal agency that 
     submits an application satisfactory to the Secretary in order 
     to pay the costs of a project described in subparagraph (C).
       ``(ii) Commencement of operations.--The Secretary may 
     begin--
       ``(I) accepting applications for loans from the Bank in 
     fiscal year 2003; and
       ``(II) making loans from the Bank in fiscal year 2004.
       ``(B) Energy savings performance contracting funding.--To 
     the extent practicable, an agency shall not submit a project 
     for which energy performance contracting funding is available 
     and is acceptable to the Federal agency under title VIII.
       ``(C) Purposes of loan.--
       ``(i) In general.--A loan from the Bank may be used to 
     pay--
       ``(I) the costs of an energy or water efficiency project, 
     or a renewable or alternative energy project, for a new 
     or existing Federal building (including selection and 
     design of the project);
       ``(II) the costs of energy metering plan and metering 
     equipment installed pursuant to section 543(e) or for the 
     purpose of verification of the energy savings under an energy 
     savings performance contract under title VIII; or
       ``(III) at the time of contracting, the costs of cofunding 
     of an energy savings performance contract (including a 
     utility energy service agreement) in order to shorten the 
     payback period of the project that is the subject of energy 
     savings performance contract.
       ``(ii) Limitation.--A Federal agency may use not more than 
     10 percent of the amount of a loan under subclause (I) or 
     (II) of clause (i) to pay the costs of administration and 
     proposal development (including data collection and energy 
     surveys).
       ``(iii) Renewable and alternative energy Projects.--Not 
     more than 25 percent of the amount on loan from the Bank at 
     any time may be loaned for renewable energy and alternative 
     energy projects (as defined by the Secretary in accordance 
     with applicable law (including Executive Orders)).
       ``(D) Repayments.--
       ``(i) In general.--Subject to clauses (ii) through (v), a 
     Federal agency shall repay to the Bank the principal amount 
     of a loan plus interest at a rate determined by the 
     President, in consultation with the Secretary and the 
     Secretary of the Treasury.
       ``(ii) Waiver or reduction of interest.--The Secretary may 
     waive or reduce the rate of interest required to be paid 
     under clause (i) if the Secretary determines that payment of 
     interest by a Federal agency at the rate determined under 
     that clause is not required to fund the operations of the 
     Bank.
       ``(iii) Determination of interest rate.--The interest rate 
     determined under clause (i) shall be at a rate that is 
     sufficient to ensure that, beginning not later than October 
     1, 2007, interest payments will be sufficient to fully fund 
     the operations of the Bank.
       ``(iv) Insufficiency of appropriations.--
       ``(I) Request for appropriations.--As part of the budget 
     request of the Federal agency for each fiscal year, the head 
     of each Federal agency shall submit to the President a 
     request for such amounts as are necessary to make such 
     repayments as are expected to become due in the fiscal 
     year under this subparagraph.
       ``(II) Suspension of repayment requirement.--If, for any 
     fiscal year, sufficient appropriations are not made available 
     to a Federal agency to make repayments under this 
     subparagraph, the Bank shall suspend the requirement of 
     repayment under this subparagraph until such appropriations 
     are made available.
       ``(E) Federal agency energy budgets.--Until a loan is 
     repaid a Federal agency budget submitted by the President to 
     Congress for a fiscal year shall not be reduced by the value 
     of energy savings accrued as a result of any energy 
     conservation measure implemented using amounts from the Bank.
       ``(F) No rescission or reprogramming.-- A Federal agency 
     shall not rescind or reprogram loan amounts made available 
     from the Bank except as permitted under guidelines and issued 
     under subparagraph (G).
       ``(G) Guidelines.--The Secretary shall issue guidelines for 
     implementation of the loan program under this paragraph, 
     including selection criteria, maximum loan amounts, and loan 
     repayment terms.
       ``(d) Selection Criteria.--
       ``(1) In general.--The Secretary shall establish criteria 
     for the selection of projects to be awarded loans in 
     accordance with paragraph (2).
       ``(2) Selection criteria.--
       ``(A) In general.--The Secretary may make loans from the 
     Bank only for a project that--
       ``(i) is technically feasible;
       ``(ii) is determined to be cost-effective using life cycle 
     cost methods established by the Secretary;
       ``(iii) includes a measurement and management component, 
     based on the measurement and verification protocols of the 
     Department of Energy, to--
       ``(I) commission energy savings for new and existing 
     Federal facilities;
       ``(II) monitor and improve energy efficiency management at 
     existing Federal facilities; and
       ``(III) verify the energy savings under an energy savings 
     performance contract under title VIII; and
       (iv)(I) in the case of a renewable energy or alternative 
     energy project, has a simple payback period of not more than 
     15 years; and
       ``(II) in the case of any other project, has a simple 
     payback period of not more than 10 years.
       ``(B) Priority.--In selecting projects, the Secretary shall 
     give priority to projects that--
       ``(i) are a component of a comprehensive energy management 
     project for a Federal facility; and

[[Page S7500]]

       ``(ii) are designed to significantly reduce the energy use 
     of the Federal facility.
       ``(e) Reports and Audits.--
       ``(1) Reports to the secretary.--Not later than 1 year 
     after the completion of installation of a project that has a 
     cost of more than $1,000,000, and annually thereafter, a 
     Federal agency shall submit to the Secretary a report that--
       ``(A) states whether the project meets or fails to meet the 
     energy savings projections for the project; and
       ``(B) for each project that fails to meet the energy 
     savings projections, states the reasons for the failure and 
     describes proposed remedies.
       ``(2) Audits.--The Secretary may audit, or require a 
     Federal agency that receives a loan from the Bank to audit, 
     any project financed with amounts from the Bank to assess the 
     performance of the project.
       ``(3) Reports to congress.--At the end of each fiscal year, 
     the Secretary shall submit to Congress a report on the 
     operations of the Bank, including a statement of--
       ``(A) the total receipts by the Bank;
       ``(B) the total amount of loans from the Bank to each 
     Federal agency; and
       ``(C) the estimated cost and energy savings resulting from 
     projects funded with loans from the Bank.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.
                                 ______
                                 
  SA 860. Mr. DOMENICI (for Mr. Bingaman) proposed an amendment to 
amendment SA 840 proposed by Mr. Domenici (for himself and Mr. 
Bingaman) to the bill S. 14, to enhance the energy security of the 
United States, and for other purposes; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

                    TITLE XII--STATE ENERGY PROGRAMS

     SEC. 1201. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

       Section 2602(b) of the Low-Income Home Energy Assistance 
     Act of 1981 (42 U.S.C. 8621(b)) is amended by striking ``each 
     of fiscal years 2002 through 2004'' and inserting ``fiscal 
     years 2002 and 2003, and $3,400,000,000 for each of fiscal 
     years 2004 through 2006.''.

     SEC. 1202. WEATHERIZATION ASSISTANCE PROGRAM.

       (a) Eligibility.--Section 412 of the Energy Conservation 
     and Production Act (42 U.S.C. 6862) is amended--
       (1) in paragraph (7)(A), by striking ``125'' and inserting 
     ``150'', and
       (2) in paragraph (7)(C), by striking ``125'' and inserting 
     ``150''.
       (b) Authorization of Appropriations.--Section 422 of the 
     Energy Conservation and Production Act (42 U.S.C. 6872) is 
     amended by striking the period at the end and inserting ``, 
     $325,000,000 for fiscal year 2004, $400,000,000 for fiscal 
     year 2005, and $500,000,000 for fiscal year 2006.''.

     SEC. 1203. STATE ENERGY PLANS.

       (a) State Energy Conservation Plans.--Section 362 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6322) is 
     amended by inserting at the end the following new subsection:
       ``(g) The Secretary shall, at least once every 3 years, 
     invite the Governor of each State to review and, if 
     necessary, revise the energy conservation plan of such State 
     submitted under subsection (b) or (e). Such reviews should 
     consider the energy conservation plans of other States within 
     the region, and identify opportunities and actions carried 
     out in pursuit of common energy conservation goals.''.
       (b) State Energy Efficiency Goals.--Section 364 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6324) is 
     amended to read as follows:


                    ``state energy efficiency goals

       ``Sec. 364. Each State energy conservation plan with 
     respect to which assistance is made available under this part 
     on or after the date of enactment of this title shall contain 
     a goal, consisting of an improvement of 25 percent or more in 
     the efficiency of use of energy in the State concerned in 
     calendar year 2010 as compared to calendar year 1990, and may 
     contain interim goals.''.
       (c) Authorization of Appropriations.--Section 365(f) of the 
     Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is 
     amended by striking the period at the end and inserting ``, 
     $100,000,000 for each of fiscal years 2004 and 2005 and 
     $125,000,000 for fiscal year 2006.''.
                                 ______
                                 
  SA 861. Mr. KYL (for himself and Mr. McCain) submitted an amendment 
intended to be proposed by him to the bill S. 14, to enhance the energy 
security of the United States, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 150, between lines 14 and 15, insert the following:

     SEC. 4__. PREVENTION OF MISUSE OF NUCLEAR MATERIAL AND 
                   TECHNOLOGY.

       (a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954 
     (42 U.S.C. 2201 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 170C. PREVENTION OF MISUSE OF NUCLEAR MATERIAL AND 
                   TECHNOLOGY.

       ``(a) Policy.--To successfully promote the development of 
     nuclear energy as a safe and reliable source of electric 
     energy, it is the policy of the United States to prevent any 
     nuclear material, technology, component, substance, or 
     technical information, or any related goods or services, from 
     being misused or diverted from peaceful nuclear energy 
     purposes.
       ``(b) Prohibition of Issuance of Certain Export Licenses.--
     Notwithstanding any other provision of law, no Federal agency 
     shall issue any license, approval, or authorization for the 
     export or reexport, or the transfer or retransfer, directly 
     or indirectly, to any country the government of which is 
     identified by the Secretary of State as engaged in state 
     sponsorship of terrorist activities (including any country 
     the government of which, as of September 11, 2001, had been 
     determined by the Secretary of State under section 620A(a) of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), 
     section 6(j)(1) of the Export Administration Act of 1979 (50 
     U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Export 
     Control Act (22 U.S.C. 2780(d)) to have repeatedly provided 
     support for acts of international terrorism) of--
       ``(1) any special nuclear material or byproduct material;
       ``(2) any nuclear production facility or utilization 
     facility; or
       ``(3) except as provided in subsection (c)(2), any nuclear 
     component, technology, substance, or technical information, 
     or any related goods or services, that could be used in a 
     nuclear production facility or utilization facility.
       ``(c) Nonapplicability and Waiver.--
       ``(1) Nonapplicability.--Subsection (b) shall not apply to 
     the country of Iraq.
       ``(2) Waiver.--The President may waive the application of 
     subsection (b)(3) to a country if the President determines 
     and certifies to Congress that the waiver of that 
     subsection--
       ``(A) is in the vial national security interests of the 
     United States;
       ``(B) is essential to prevent or respond to a serious 
     radiological hazard in the country receiving the waiver that 
     may or does threaten public health and safety; and
       ``(C) will not result in any increased risk that the 
     country receiving the waiver will acquire nuclear weapons or 
     any materials or components of nuclear weapons.
       ``(d) Revocation.--Any license, approval, or authorization 
     described in subsection (b) issued before the date of 
     enactment of this section is revoked.''.
       (b) Conforming Amendment.--The table of contents of the 
     Atomic Energy Act (42 U.S.C. prec. 2011) is amended by adding 
     at the end the items relating to chapter 14 the following:

``Sec. 170C. Prevention of misuse of nuclear material and 
              technology.''.
                                 ______
                                 
  SA 862. Mr. GRASSLEY (for himself, Mrs. Lincoln, Ms. Snowe, Mr. 
Baucus, Mr. Voinovich, Ms. Murkowski, Mr. Warner, Mr. Stevens, Ms. 
Landrieu, Mr. Byrd, Ms. Collins, and Mr. Nelson of Florida) proposed an 
amendment to the bill H.R. 1308, to amend the Internal Revenue Code of 
1986 to accelerate the increase in the refundability of the child tax 
credit, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Relief for Working Families 
     Tax Act of 2003''.

                       TITLE I--CHILD TAX CREDIT

     SEC. 101. ACCELERATION OF INCREASE IN REFUNDABILITY OF THE 
                   CHILD TAX CREDIT.

       (a) Acceleration of Refundability.--
       (1) In general.--Section 24(d)(1)(B)(i) of the Internal 
     Revenue Code of 1986 (relating to portion of credit 
     refundable) is amended by striking ``(10 percent in the case 
     of taxable years beginning before January 1, 2005)''.
       (2) Advance payment.--Subsection (b) of section 6429 of 
     such Code (relating to advance payment of portion of 
     increased child credit for 2003) is amended by striking 
     ``and'' at the end of paragraph (2), by striking the period 
     at the end of paragraph (3) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(4) section 24(d)(1)(B)(i) applied without regard to the 
     first parenthetical therein.''.
       (3) Earned income includes combat pay.--Section 24(d)(1) of 
     such Code is amended by adding at the end the following new 
     sentence: ``For purposes of subparagraph (B), any amount 
     excluded from gross income by reason of section 112 shall be 
     treated as earned income which is taken into account in 
     computing taxable income for the taxable year.''.
       (b) Effective Dates.--
       (1) Subsections (a)(1) and (a)(3).--The amendments made by 
     subsections (a)(1) and (a)(3) shall apply to taxable years 
     beginning after December 31, 2002.
       (2) Subsection (a)(2).--The amendments made by subsection 
     (a)(2) shall take effect as if included in the amendments 
     made by section 101(b) of the Jobs and Growth Tax Relief 
     Reconciliation Act of 2003.

     SEC. 102. REDUCTION IN MARRIAGE PENALTY IN CHILD TAX CREDIT.

       (a) In General.--Section 24(b)(2) of the Internal Revenue 
     Code of 1986 (defining threshold amount) is amended--
       (1) by inserting ``($115,000 for taxable years beginning in 
     2008 or 2009, and $150,000 for taxable years beginning in 
     2010)'' after ``$110,000'', and

[[Page S7501]]

       (2) by striking ``$55,000'' in subparagraph (C) and 
     inserting ``\1/2\ of the amount in effect under subparagraph 
     (A)''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.

     SEC. 103. APPLICATION OF EGTRRA SUNSET TO THIS SECTION.

       Each amendment made by this title shall be subject to title 
     IX of the Economic Growth and Tax Relief Reconciliation Act 
     of 2001 to the same extent and in the same manner as the 
     provision of such Act to which such amendment relates.

                 TITLE II--UNIFORM DEFINITION OF CHILD

     SEC. 201. UNIFORM DEFINITION OF CHILD, ETC.

       Section 152 of the Internal Revenue Code of 1986 is amended 
     to read as follows:

     ``SEC. 152. DEPENDENT DEFINED.

       ``(a) In General.--For purposes of this subtitle, the term 
     `dependent' means--
       ``(1) a qualifying child, or
       ``(2) a qualifying relative.
       ``(b) Exceptions.--For purposes of this section--
       ``(1) Dependents ineligible.--If an individual is a 
     dependent of a taxpayer for any taxable year of such taxpayer 
     beginning in a calendar year, such individual shall be 
     treated as having no dependents for any taxable year of such 
     individual beginning in such calendar year.
       ``(2) Married dependents.--An individual shall not be 
     treated as a dependent of a taxpayer under subsection (a) if 
     such individual has made a joint return with the individual's 
     spouse under section 6013 for the taxable year beginning in 
     the calendar year in which the taxable year of the taxpayer 
     begins.
       ``(3) Citizens or nationals of other countries.--
       ``(A) In general.--The term `dependent' does not include an 
     individual who is not a citizen or national of the United 
     States unless such individual is a resident of the United 
     States or a country contiguous to the United States.
       ``(B) Exception for adopted child.--Subparagraph (A) shall 
     not exclude any child of a taxpayer (within the meaning of 
     subsection (f)(1)(B)) from the definition of `dependent' if--
       ``(i) for the taxable year of the taxpayer, the child's 
     principal place of abode is the home of the taxpayer, and
       ``(ii) the taxpayer is a citizen or national of the United 
     States.
       ``(c) Qualifying Child.--For purposes of this section--
       ``(1) In general.--The term `qualifying child' means, with 
     respect to any taxpayer for any taxable year, an individual--
       ``(A) who bears a relationship to the taxpayer described in 
     paragraph (2),
       ``(B) who has the same principal place of abode as the 
     taxpayer for more than one-half of such taxable year,
       ``(C) who meets the age requirements of paragraph (3), and
       ``(D) who has not provided over one-half of such 
     individual's own support for the calendar year in which the 
     taxable year of the taxpayer begins.
       ``(2) Relationship test.--For purposes of paragraph (1)(A), 
     an individual bears a relationship to the taxpayer described 
     in this paragraph if such individual is--
       ``(A) a child of the taxpayer or a descendant of such a 
     child, or
       ``(B) a brother, sister, stepbrother, or stepsister of the 
     taxpayer or a descendant of any such relative.
       ``(3) Age requirements.--
       ``(A) In general.--For purposes of paragraph (1)(C), an 
     individual meets the requirements of this paragraph if such 
     individual--
       ``(i) has not attained the age of 19 as of the close of the 
     calendar year in which the taxable year of the taxpayer 
     begins, or
       ``(ii) is a student who has not attained the age of 24 as 
     of the close of such calendar year.
       ``(B) Special rule for disabled.--In the case of an 
     individual who is permanently and totally disabled (as 
     defined in section 22(e)(3)) at any time during such calendar 
     year, the requirements of subparagraph (A) shall be treated 
     as met with respect to such individual.
       ``(4) Special rule relating to 2 or more claiming 
     qualifying child.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     and subsection (e), if (but for this paragraph) an individual 
     may be and is claimed as a qualifying child by 2 or more 
     taxpayers for a taxable year beginning in the same calendar 
     year, such individual shall be treated as the qualifying 
     child of the taxpayer who is--
       ``(i) a parent of the individual, or
       ``(ii) if clause (i) does not apply, the taxpayer with the 
     highest adjusted gross income for such taxable year.
       ``(B) More than 1 parent claiming qualifying child.--If the 
     parents claiming any qualifying child do not file a joint 
     return together, such child shall be treated as the 
     qualifying child of--
       ``(i) the parent with whom the child resided for the 
     longest period of time during the taxable year, or
       ``(ii) if the child resides with both parents for the same 
     amount of time during such taxable year, the parent with the 
     highest adjusted gross income.
       ``(d) Qualifying Relative.--For purposes of this section--
       ``(1) In general.--The term `qualifying relative' means, 
     with respect to any taxpayer for any taxable year, an 
     individual--
       ``(A) who bears a relationship to the taxpayer described in 
     paragraph (2),
       ``(B) whose gross income for the calendar year in which 
     such taxable year begins is less than the exemption amount 
     (as defined in section 151(d)),
       ``(C) with respect to whom the taxpayer provides over one-
     half of the individual's support for the calendar year in 
     which such taxable year begins, and
       ``(D) who is not a qualifying child of such taxpayer or of 
     any other taxpayer for any taxable year beginning in the 
     calendar year in which such taxable year begins.
       ``(2) Relationship.--For purposes of paragraph (1)(A), an 
     individual bears a relationship to the taxpayer described in 
     this paragraph if the individual is any of the following with 
     respect to the taxpayer:
       ``(A) A child or a descendant of a child.
       ``(B) A brother, sister, stepbrother, or stepsister.
       ``(C) The father or mother, or an ancestor of either.
       ``(D) A stepfather or stepmother.
       ``(E) A son or daughter of a brother or sister of the 
     taxpayer.
       ``(F) A brother or sister of the father or mother of the 
     taxpayer.
       ``(G) A son-in-law, daughter-in-law, father-in-law, mother-
     in-law, brother-in-law, or sister-in-law.
       ``(H) An individual (other than an individual who at any 
     time during the taxable year was the spouse, determined 
     without regard to section 7703, of the taxpayer) who, for the 
     taxable year of the taxpayer, has as such individual's 
     principal place of abode the home of the taxpayer and is a 
     member of the taxpayer's household.
       ``(3) Special rule relating to multiple support 
     agreements.--For purposes of paragraph (1)(C), over one-half 
     of the support of an individual for a calendar year shall be 
     treated as received from the taxpayer if--
       ``(A) no one person contributed over one-half of such 
     support,
       ``(B) over one-half of such support was received from 2 or 
     more persons each of whom, but for the fact that any such 
     person alone did not contribute over one-half of such 
     support, would have been entitled to claim such individual as 
     a dependent for a taxable year beginning in such calendar 
     year,
       ``(C) the taxpayer contributed over 10 percent of such 
     support, and
       ``(D) each person described in subparagraph (B) (other than 
     the taxpayer) who contributed over 10 percent of such support 
     files a written declaration (in such manner and form as the 
     Secretary may by regulations prescribe) that such person will 
     not claim such individual as a dependent for any taxable year 
     beginning in such calendar year.
       ``(4) Special rule relating to income of handicapped 
     dependents.--
       ``(A) In general.--For purposes of paragraph (1)(B), the 
     gross income of an individual who is permanently and totally 
     disabled (as defined in section 22(e)(3)) at any time during 
     the taxable year shall not include income attributable to 
     services performed by the individual at a sheltered workshop 
     if--
       ``(i) the availability of medical care at such workshop is 
     the principal reason for the individual's presence there, and
       ``(ii) the income arises solely from activities at such 
     workshop which are incident to such medical care.
       ``(B) Sheltered workshop defined.--For purposes of 
     subparagraph (A), the term `sheltered workshop' means a 
     school--
       ``(i) which provides special instruction or training 
     designed to alleviate the disability of the individual, and
       ``(ii) which is operated by an organization described in 
     section 501(c)(3) and exempt from tax under section 501(a), 
     or by a State, a possession of the United States, any 
     political subdivision of any of the foregoing, the United 
     States, or the District of Columbia.
       ``(5) Special support test in case of students.--For 
     purposes of paragraph (1)(C), in the case of an individual 
     who is--
       ``(A) a child of the taxpayer, and
       ``(B) a student,

     amounts received as scholarships for study at an educational 
     organization described in section 170(b)(1)(A)(ii) shall not 
     be taken into account in determining whether such individual 
     received more than one-half of such individual's support from 
     the taxpayer.
       ``(6) Special rules for support.--For purposes of this 
     subsection--
       ``(A) payments to a spouse which are includible in the 
     gross income of such spouse under section 71 or 682 shall not 
     be treated as a payment by the payor spouse for the support 
     of any dependent,
       ``(B) amounts expended for the support of a child or 
     children shall be treated as received from the noncustodial 
     parent (as defined in subsection (e)(3)(B)) to the extent 
     that such parent provided amounts for such support, and
       ``(C) in the case of the remarriage of a parent, support of 
     a child received from the parent's spouse shall be treated as 
     received from the parent.
       ``(e) Special Rule for Divorced Parents.--
       ``(1) In general.--Notwithstanding subsection (c)(4) or 
     (d)(1)(C), if--
       ``(A) a child receives over one-half of the child's support 
     during the calendar year from the child's parents--
       ``(i) who are divorced or legally separated under a decree 
     of divorce or separate maintenance,

[[Page S7502]]

       ``(ii) who are separated under a written separation 
     agreement, or
       ``(iii) who live apart at all times during the last 6 
     months of the calendar year, and
       ``(B) such child is in the custody of 1 or both of the 
     child's parents for more than \1/2\ of the calendar year,

     such child shall be treated as being the qualifying child or 
     qualifying relative of the noncustodial parent for a calendar 
     year if the requirements described in paragraph (2) are met.
       ``(2) Requirements.--For purposes of paragraph (1), the 
     requirements described in this paragraph are met if--
       ``(A) a decree of divorce or separate maintenance or 
     written separation agreement between the parents applicable 
     to the taxable year beginning in such calendar year provides 
     that--
       ``(i) the noncustodial parent shall be entitled to any 
     deduction allowable under section 151 for such child, or
       ``(ii) the custodial parent will sign a written declaration 
     (in such manner and form as the Secretary may prescribe) that 
     such parent will not claim such child as a dependent for such 
     taxable year, and
       ``(B) in the case of such an agreement executed before 
     January 1, 1985, the noncustodial parent provides at least 
     $600 for the support of such child during such calendar year.
       ``(3) Custodial parent and noncustodial parent.--For 
     purposes of this subsection--
       ``(A) Custodial parent.--The term `custodial parent' means 
     the parent with whom a child shared the same principal place 
     of abode for the greater portion of the calendar year.
       ``(B) Noncustodial parent.--The term `noncustodial parent' 
     means the parent who is not the custodial parent.
       ``(4) Exception for multiple-support agreements.--This 
     subsection shall not apply in any case where over one-half of 
     the support of the child is treated as having been received 
     from a taxpayer under the provision of subsection (d)(3).
       ``(f) Other Definitions and Rules.--For purposes of this 
     section--
       ``(1) Child defined.--
       ``(A) In general.--The term `child' means an individual who 
     is--
       ``(i) a son, daughter, stepson, or stepdaughter of the 
     taxpayer, or
       ``(ii) an eligible foster child of the taxpayer.
       ``(B) Adopted child.--In determining whether any of the 
     relationships specified in subparagraph (A)(i) or paragraph 
     (4) exists, a legally adopted individual of the taxpayer, or 
     an individual who is placed with the taxpayer by an 
     authorized placement agency for adoption by the taxpayer, 
     shall be treated as a child of such individual by blood.
       ``(C) Eligible foster child.--For purposes of subparagraph 
     (A)(ii), the term `eligible foster child' means an individual 
     who is placed with the taxpayer by an authorized placement 
     agency or by judgment, decree, or other order of any court of 
     competent jurisdiction.
       ``(2) Student defined.--The term `student' means an 
     individual who during each of 5 calendar months during the 
     calendar year in which the taxable year of the taxpayer 
     begins--
       ``(A) is a full-time student at an educational organization 
     described in section 170(b)(1)(A)(ii), or
       ``(B) is pursuing a full-time course of institutional on-
     farm training under the supervision of an accredited agent of 
     an educational organization described in section 
     170(b)(1)(A)(ii) or of a State or political subdivision of a 
     State.
       ``(3) Place of abode.--An individual shall not be treated 
     as having the same principal place of abode of the taxpayer 
     if at any time during the taxable year of the taxpayer the 
     relationship between the individual and the taxpayer is in 
     violation of local law.
       ``(4) Brother and sister.--The terms `brother' and `sister' 
     include a brother or sister by the half blood.
       ``(5) Treatment of missing children.--
       ``(A) In general.--Solely for the purposes referred to in 
     subparagraph (B), a child of the taxpayer--
       ``(i) who is presumed by law enforcement authorities to 
     have been kidnapped by someone who is not a member of the 
     family of such child or the taxpayer, and
       ``(ii) who had, for the taxable year in which the 
     kidnapping occurred, the same principal place of abode as the 
     taxpayer for more than one-half of the portion of such year 
     before the date of the kidnapping,

     shall be treated as meeting the requirement of subsection 
     (c)(1)(B) with respect to a taxpayer for all taxable years 
     ending during the period that the individual is kidnapped.
       ``(B) Purposes.--Subparagraph (A) shall apply solely for 
     purposes of determining--
       ``(i) the deduction under section 151(c),
       ``(ii) the credit under section 24 (relating to child tax 
     credit),
       ``(iii) whether an individual is a surviving spouse or a 
     head of a household (as such terms are defined in section 2), 
     and
       ``(iv) the earned income credit under section 32.
       ``(C) Comparable treatment of certain qualifying 
     relatives.--For purposes of this section, a child of the 
     taxpayer--
       ``(i) who is presumed by law enforcement authorities to 
     have been kidnapped by someone who is not a member of the 
     family of such child or the taxpayer, and
       ``(ii) who was (without regard to this paragraph) a 
     qualifying relative of the taxpayer for the portion of the 
     taxable year before the date of the kidnapping,

     shall be treated as a qualifying relative of the taxpayer for 
     all taxable years ending during the period that the child is 
     kidnapped.
       ``(D) Termination of treatment.--Subparagraphs (A) and (C) 
     shall cease to apply as of the first taxable year of the 
     taxpayer beginning after the calendar year in which there is 
     a determination that the child is dead (or, if earlier, in 
     which the child would have attained age 18).
       ``(6) Cross references.--

``For provision treating child as dependent of both parents for 
purposes of certain provisions, see sections 105(b), 132(h)(2)(B), and 
213(d)(5).''.

     SEC. 202. MODIFICATIONS OF DEFINITION OF HEAD OF HOUSEHOLD.

       (a) Head of Household.--Clause (i) of section 2(b)(1)(A) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(i) a qualifying child of the individual (as defined in 
     section 152(c), determined without regard to section 152(e)), 
     but not if such child--

       ``(I) is married at the close of the taxpayer's taxable 
     year, and
       ``(II) is not a dependent of such individual by reason of 
     section 152(b)(2) or 152(b)3), or both, or''.

       (b) Conforming Amendments.--
       (1) Section 2(b)(2) of the Internal Revenue Code of 1986 is 
     amended by striking subparagraph (A) and by redesignating 
     subparagraphs (B), (C), and (D) as subparagraphs (A), (B), 
     and (C), respectively.
       (2) Clauses (i) and (ii) of section 2(b)(3)(B) of such Code 
     are amended to read as follows:
       ``(i) subparagraph (H) of section 152(d)(2), or
       ``(ii) paragraph (3) of section 152(d).''.

     SEC. 203. MODIFICATIONS OF DEPENDENT CARE CREDIT.

       (a) In General.--Section 21(a)(1) of the Internal Revenue 
     Code of 1986 is amended by striking ``In the case of an 
     individual who maintains a household which includes as a 
     member one or more qualifying individuals (as defined in 
     subsection (b)(1))'' and inserting ``In the case of an 
     individual for which there are 1 or more qualifying 
     individuals (as defined in subsection (b)(1)) with respect to 
     such individual''.
       (b) Qualifying Individual.--Paragraph (1) of section 21(b) 
     of the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(1) Qualifying individual.--The term `qualifying 
     individual' means--
       ``(A) a dependent of the taxpayer (as defined in section 
     152(a)(1)) who has not attained age 13,
       ``(B) a dependent of the taxpayer who is physically or 
     mentally incapable of caring for himself or herself and who 
     has the same principal place of abode as the taxpayer for 
     more than one-half of such taxable year, or
       ``(C) the spouse of the taxpayer, if the spouse is 
     physically or mentally incapable of caring for himself or 
     herself and who has the same principal place of abode as the 
     taxpayer for more than one-half of such taxable year.''.
       (c) Conforming Amendment.--Paragraph (1) of section 21(e) 
     of the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(1) Place of abode.--An individual shall not be treated 
     as having the same principal place of abode of the taxpayer 
     if at any time during the taxable year of the taxpayer the 
     relationship between the individual and the taxpayer is in 
     violation of local law.''.

     SEC. 204. MODIFICATIONS OF CHILD TAX CREDIT.

       (a) In General.--Paragraph (1) of section 24(c) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) In general.--The term `qualifying child' means a 
     qualifying child of the taxpayer (as defined in section 
     152(c)) who has not attained age 17.''.
       (b) Conforming Amendment.--Section 24(c)(2) of the Internal 
     Revenue Code of 1986 is amended by striking ``the first 
     sentence of section 152(b)(3)'' and inserting ``subparagraph 
     (A) of section 152(b)(3)''.

     SEC. 205. MODIFICATIONS OF EARNED INCOME CREDIT.

       (a) Qualifying Child.--Paragraph (3) of section 32(c) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(3) Qualifying child.--
       ``(A) In general.--The term `qualifying child' means a 
     qualifying child of the taxpayer (as defined in section 
     152(c), determined without regard to paragraph (1)(D) thereof 
     and section 152(e)).
       ``(B) Married individual.--The term `qualifying child' 
     shall not include an individual who is married as of the 
     close of the taxpayer's taxable year unless the taxpayer is 
     entitled to a deduction under section 151 for such taxable 
     year with respect to such individual (or would be so entitled 
     but for section 152(e)).
       ``(C) Place of abode.--For purposes of subparagraph (A), 
     the requirements of section 152(c)(1)(B) shall be met only if 
     the principal place of abode is in the United States.
       ``(D) Identification requirements.--
       ``(i) In general.--A qualifying child shall not be taken 
     into account under subsection (b) unless the taxpayer 
     includes the name, age, and TIN of the qualifying child on 
     the return of tax for the taxable year.
       ``(ii) Other methods.--The Secretary may prescribe other 
     methods for providing the information described in clause 
     (i).''.
       (b) Conforming Amendments.--

[[Page S7503]]

       (1) Section 32(c)(1) of the Internal Revenue Code of 1986 
     is amended by striking subparagraph (C) and by redesignating 
     subparagraphs (D), (E), (F), and (G) as subparagraphs (C), 
     (D), (E), and (F), respectively.
       (2) Section 32(c)(4) of such Code is amended by striking 
     ``(3)(E)'' and inserting ``(3)(C)''.
       (3) Section 32(m) of such Code is amended by striking 
     ``subsections (c)(1)(F)'' and inserting ``subsections 
     (c)(1)(E)''.

     SEC. 206. MODIFICATIONS OF DEDUCTION FOR PERSONAL EXEMPTION 
                   FOR DEPENDENTS.

       Subsection (c) of section 151 of the Internal Revenue Code 
     of 1986 is amended to read as follows:
       ``(c) Additional Exemption for Dependents.--An exemption of 
     the exemption amount for each individual who is a dependent 
     (as defined in section 152) of the taxpayer for the taxable 
     year.''.

     SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS.

       (1) Section 2(a)(1)(B)(i) of such Code is amended by 
     inserting ``, determined without regard to subsections 
     (b)(1), (b)(2), and (d)(1)(B) thereof'' after ``section 
     152''.
       (2) Section 21(e)(5) of the Internal Revenue Code of 1986 
     is amended--
       (A) by striking ``paragraph (2) or (4) of'' in subparagraph 
     (A), and
       (B) by striking ``within the meaning of section 152(e)(1)'' 
     and inserting ``as defined in section 152(e)(3)(A)''.
       (3) Section 21(e)(6)(B) of such Code is amended by striking 
     ``section 151(c)(3)'' and inserting ``section 152(f)(1)''.
       (4) Section 25B(c)(2)(B) of such Code is amended by 
     striking ``151(c)(4)'' and inserting ``152(f)(2)''.
       (5)(A) Subparagraphs (A) and (B) of section 51(i)(1) of 
     such Code are each amended by striking ``paragraphs (1) 
     through (8) of section 152(a)'' both places it appears and 
     inserting ``subparagraphs (A) through (G) of section 
     152(d)(2)''.
       (B) Section 51(i)(1)(C) of such Code is amended by striking 
     ``152(a)(9)'' and inserting ``152(d)(2)(H)''.
       (6) Section 72(t)(2)(D)(i)(III) of such Code is amended by 
     inserting ``, determined without regard to subsections 
     (b)(1), (b)(2), and (d)(1)(B) thereof'' after ``section 
     152''.
       (7) Section 72(t)(7)(A)(iii) of such Code is amended by 
     striking ``151(c)(3)'' and inserting ``152(f)(1)''.
       (8) Section 42(i)(3)(D)(ii)(I) of such Code is amended by 
     inserting ``, determined without regard to subsections 
     (b)(1), (b)(2), and (d)(1)(B) thereof'' after ``section 
     152''.
       (9) Subsections (b) and (c)(1) of section 105 of such Code 
     are amended by inserting ``, determined without regard to 
     subsections (b)(1), (b)(2), and (d)(1)(B) thereof'' after 
     ``section 152''.
       (10) Section 120(d)(4) of such Code is amended by inserting 
     ``(determined without regard to subsections (b)(1), (b)(2), 
     and (d)(1)(B) thereof)'' after ``section 152''.
       (11) Section 125(e)(1)(D) of such Code is amended by 
     inserting ``, determined without regard to subsections 
     (b)(1), (b)(2), and (d)(1)(B) thereof'' after ``section 
     152''.
       (12) Section 129(c)(2) of such Code is amended by striking 
     ``151(c)(3)'' and inserting ``152(f)(1)''.
       (13) The first sentence of section 132(h)(2)(B) of such 
     Code is amended by striking ``151(c)(3)'' and inserting 
     ``152(f)(1)''.
       (14) Section 153 of such Code is amended by striking 
     paragraph (1) and by redesignating paragraphs (2), (3), and 
     (4) as paragraphs (1), (2), and (3), respectively.
       (15) Section 170(g)(1) of such Code is amended by inserting 
     ``(determined without regard to subsections (b)(1), (b)(2), 
     and (d)(1)(B) thereof)'' after ``section 152''.
       (16) Section 170(g)(3) of such Code is amended by striking 
     ``paragraphs (1) through (8) of section 152(a)'' and 
     inserting ``subparagraphs (A) through (G) of section 
     152(d)(2)''.
       (17) Section 213(a) of such Code is amended by inserting 
     ``, determined without regard to subsections (b)(1), (b)(2), 
     and (d)(1)(B) thereof'' after ``section 152''.
       (18) The second sentence of section 213(d)(11) of such Code 
     is amended by striking ``paragraphs (1) through (8) of 
     section 152(a)'' and inserting ``subparagraphs (A) through 
     (G) of section 152(d)(2)''.
       (19) Section 220(d)(2)(A) of such Code is amended by 
     inserting ``, determined without regard to subsections 
     (b)(1), (b)(2), and (d)(1)(B) thereof'' after ``section 
     152''.
       (20) Section 221(d)(4) of such Code is amended by inserting 
     ``(determined without regard to subsections (b)(1), (b)(2), 
     and (d)(1)(B) thereof)'' after ``section 152''.
       (21) Section 529(e)(2)(B) of such Code is amended by 
     striking ``paragraphs (1) through (8) of section 152(a)'' and 
     inserting ``subparagraphs (A) through (G) of section 
     152(d)(2)''.
       (22) Section 2032A(c)(7)(D) of such Code is amended by 
     striking ``section 151(c)(4)'' and inserting ``section 
     152(f)(2)''.
       (23) Section 2057(d)(2)(B) of such Code is amended by 
     inserting ``, determined without regard to subsections 
     (b)(1), (b)(2), and (d)(1)(B) thereof'' after ``section 
     152''.
       (24) Section 7701(a)(17) of such Code is amended by 
     striking ``152(b)(4), 682,'' and inserting ``682''.
       (25) Section 7702B(f)(2)(C)(iii) of such Code is amended by 
     striking ``paragraphs (1) through (8) of section 152(a)'' and 
     inserting ``subparagraphs (A) through (G) of section 
     152(d)(2)''.
       (26) Section 7703(b)(1) of such Code is amended--
       (A) by striking ``151(c)(3)'' and inserting ``152(f)(1)'', 
     and
       (B) by striking ``paragraph (2) or (4) of''.

     SEC. 208. EFFECTIVE DATE.

       The amendments made by this title shall apply to taxable 
     years beginning after December 31, 2003.

                      TITLE III--CUSTOMS USER FEES

     SEC. 301. EXTENSION OF CUSTOMS USER FEES.

       Section 13031(j)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended 
     by striking ``September 30, 2003'' and inserting ``March 31, 
     2010''.
                                 ______
                                 
  SA 863. Mr. GRASSLEY (for himself and Mrs. Lincoln) submitted an 
amendment intended to be proposed by him to the bill H.R. 1308, to 
amend the Internal Revenue Code of 1986 to accelerate the increase in 
the refundability of the child tax credit, and for other purposes; 
which was ordered to lie on the table; as follows:

       Amend the title as to read: A bill to amend the Internal 
     Revenue Code of 1986 to accelerate the increase in the 
     refundability of the child tax credit, and for other 
     purposes.
                                 ______
                                 
  SA 864. Mr. CAMPBELL proposed an amendment to the bill S. 14, to 
enhance the energy security of the United States, and for other 
purposes; as follows:

     Page 101, line 1, strike ``electrify Indian tribal land'' and 
     all that follows through page 128, line 24, and insert:
       ``(4) electrify Indian tribal land and the homes of tribal 
     members.''
       (b) Conforming Amendments.--
       (1) The table of contents of the Department of Energy 
     Organization Act (42 U.S.C. prec. 7101) is amended--
       (A) in the item relating to section 209, by striking 
     ``Section'' and inserting ``Sec.''; and
       (B) by striking the items relating to sections 213 through 
     216 and inserting the following:

``Sec. 213. Establishment of policy for National Nuclear Security 
              Administration.
``Sec. 214. Establishment of security, counterintelligence, and 
              intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs

       (2) Section 5315 of title 5, United States Code, is amended 
     by inserting ``Director, Office of Indian Energy Policy and 
     Programs, Department of Energy.'' after ``Inspector General, 
     Department of Energy.''.

     SEC. 303. INDIAN ENERGY.

       (a) Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 
     3501 et seq.) is amended to read as follows:

                      ``TITLE XXVI--INDIAN ENERGY

     ``SEC. 2601. DEFINITIONS.

       ``For purposes of this title:
       ``(1) The term `Director' means the Director of the Office 
     of Indian Energy Policy and Programs, Department of Energy.
       ``(2) The term `Indian land' means--
       ``(A) any land located within the boundaries of an Indian 
     reservation, pueblo, or rancheria;
       ``(B) any land not located within the boundaries of an 
     Indian reservation, pueblo, or rancheria, the title to which 
     is held--
       ``(1) in trust by the United States for the benefit of an 
     Indian tribe;
       (ii) by an Indian tribe, subject to restriction by the 
     United States against alienation; or
       ``(iii) by a dependent Indian community; and
       ``(C) land conveyed to a Native Corporation under the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).
       ``(3) The term `Indian reservation' includes--
       ``(A) an Indian reservation in existence in any State or 
     States as of the date of enactment of this paragraph;
       ``(B) a public domain Indian allotment;
       ``(C) a former reservation in the State of Oklahoma;
       ``(D) a parcel of land owned by a Native Corporation under 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.); and
       ``(E) a dependent Indian community located within the 
     borders of the United States, regardless of whether the 
     community is located--.
       ``(i) on original or acquired territory of the community; 
     or
       ``(ii) within or outside the boundaries of any particular 
     State.
       ``(4) The term `Indian tribe' has the meaning given the 
     term in section 4 of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450b).
       ``(5) The term `Native Corporation' has the meaning given 
     the term in section 3 of the Alaska Native Claims Settlement 
     Act (43 U.S.C. 1602).
       ``(6) The term `organization' means a partnership, joint 
     venture, limited liability company, or other unincorporated 
     association or entity that is established to develop Indian 
     energy resources.
       ``(7) The term `Program' means the Indian energy resource 
     development program established under section 2602(a).
       ``(8) The term `Secretary' means the Secretary of the 
     Interior.
       ``(9) The term `tribal energy resource development 
     organization' means an organization of 2 or more entities, at 
     least 1 of which

[[Page S7504]]

     is an Indian tribe, that has the written consent of the 
     governing bodies of all Indian tribes participating in the 
     organization to apply for a grant, loan, or other guarantee 
     authorized by sections 2602 or 2603 of this title.
       ``(10) The term `tribal land' means any land or interests 
     in land owned by any Indian tribe, band, nation, pueblo, 
     community, rancheria, colony or other group, title to which 
     is held in trust by the United States or which is subject to 
     a restriction against alienation imposed by the United 
     States.
       ``(11) The term `vertical integration of energy resources' 
     means any project or activity that promotes the location and 
     operation of a facility (including any pipeline, gathering 
     system, transportation system or facility, or electric 
     transmission facility), on or near Indian land to process, 
     refine, generate electricity from, or otherwise develop 
     energy resources on, Indian land:

     ``SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.

       ``(a) Department of the Interior Program.--
       ``(1) To assist Indian tribes in the development of energy 
     resources and further the goal of Indian self-determination, 
     the Secretary shall establish and implement an Indian energy 
     resource development program to assist Indian tribes and 
     tribal energy resource development organizations in achieving 
     the purposes of this title.
       ``(2) In carrying out the Program, the Secretary shall--
       ``(A) provide development grants to Indian tribes and 
     tribal energy resource development organizations for use in 
     developing or obtaining the managerial and technical capacity 
     needed to develop energy resources on Indian land; and to 
     properly account for resulting energy production and 
     revenues;
       ``(B) provide grants to Indian tribes and tribal energy 
     resource development organizations for use in carrying out 
     projects to promote the vertical integration of energy 
     resources, and to process, use, or develop those energy 
     resources, on Indian land, and
       ``(C) provide low-interest loans to Indian tribes and 
     tribal energy resource development organizations for use in 
     the promotion of energy resource development and vertical 
     integration or energy resources on Indian land.
       ``(3) There are authorized to be appropriated to carry out 
     this subsection such sums as are necessary for each of fiscal 
     years 2004 through 2014.
       ``(b) Indian Energy Education Planning and Management 
     Assistance.--
       ``(1) The Director shall establish programs to assist 
     Indian tribes in meeting energy education, research and 
     development, planning, and management needs.
       ``(2) In carrying out this section, the Director may 
     provide grants, on a competitive basis, to an Indian tribe or 
     tribal energy resource development organization for use in 
     carrying out--
       ``(A) energy, energy efficiency, and energy conservation 
     programs;
       ``(B) studies and other activities supporting tribal 
     acquisition of energy supplies, services, and facilities;
       ``(C) planning, construction, development, operation, 
     maintenance, and improvement of tribal electrical generation, 
     transmission, and distribution facilities located on Indian 
     land; and
       ``(D) development, construction, and interconnection of 
     electric power transmission facilities located on Indian land 
     with other electric transmission facilities.
       ``(3)(A) The Director may develop, in consultation with 
     Indian tribes, a formula for providing grants under this 
     section.
       ``(B) In providing a grant under this subsection, the 
     Director shall give priority to an application received from 
     an Indian tribe with inadequate electric service (as 
     determined by the Director).
       ``(4) The Secretary of Energy may promulgate such 
     regulations as necessary to carry out this subsection.
       ``(5) There is authorized to be appropriated to carry out 
     this subsection $20,000,000 for each of fiscal years 2004 
     through 2011.
       ``(c) Loan Guarantee Program.--
       ``(1) Subject to paragraph (3), the Secretary of Energy may 
     provide loan guarantees (as defined in section 502 of the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) for not 
     more than 90 percent of the unpaid principal and interest due 
     on any loan made to any Indian tribe for energy development.
       ``(2) A loan guaranteed under this subsection shall be made 
     by--
       ``(A) a financial institution subject to examination by the 
     Secretary of Energy; or
       ``(B) an Indian tribe, from funds of the Indian tribe.
       ``(3) The aggregate outstanding amount guaranteed by the 
     Secretary of Energy at any time under this subsection shall 
     not exceed $2,000,000,000.
       ``(4) The Secretary may promulgate such regulations as the 
     Secretary of Energy determines are necessary to carry out 
     this subsection.
       ``(5) There are authorized to be appropriated such sums as 
     are necessary to carry out this subsection, to remain 
     available until expended.
       ``(6) Not later than 1 year from the date of enactment of 
     this section, the Secretary of Energy shall report to the 
     Congress on the financing requirements of Indian tribes for 
     energy development on Indian land.
       ``(d) Indian Energy Preference.--
       ``(1) In purchasing electricity or any other energy product 
     or byproduct, a Federal agency or department may give 
     preference to an energy and resource production enterprise, 
     partnership, consortium, corporation, or other type of 
     business organization the majority of the interest in which 
     is owned and controlled by 1 or more Indian tribes.
       ``(2) In carrying out this subsection, a Federal agency or 
     department shall not--
       ``(A) pay more than the prevailing market price for an 
     energy product or byproduct; and
       ``(B) obtain less than prevailing market terms and 
     conditions.''.

     ``SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.

       ``(a) Grants.--The Secretary may provide to Indian tribes 
     and tribal energy resource development organizations, on an 
     annual basis, grants for use in developing, administering, 
     implementing, and enforcing tribal laws (including 
     regulations) governing the development and management of 
     energy resources on Indian land.
       ``(b) Use of Funds.--Funds from a grant provided under this 
     section may be used by an Indian tribe or tribal energy 
     resource development organization for--
       ``(1) the development of a tribal energy resource inventory 
     or tribal energy resource on Indian land;
       ``(2) the development of a feasibility study or other 
     report necessary to the development of energy resources on 
     Indian land;
       ``(3) the development and enforcement of tribal laws and 
     the development of technical infrastructure to protect the 
     environment under applicable law; or
       ``(4) the training of employees that--
       ``(A) are engaged in the development of energy resources on 
     Indian land; or
       ``(B) are responsible for protecting the environment.
       ``(c) Other Assistance.--To the maximum extent practicable, 
     the Secretary and the Secretary of Energy shall make 
     available to Indian tribes and tribal energy resource 
     development organizations scientific and technical data for 
     use in the development and management of energy resources on 
     Indian land.

     ``SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY 
                   INVOLVING ENERGY DEVELOPMENT OR TRANSMISSION.

       ``(a) Leases and Agreements.--Subject to the provisions of 
     this section--
       ``(1) an Indian tribe may, at its discretion, enter into a 
     lease or business agreement for the purpose of energy 
     development, including a lease or business agreement for--
       ``(A) exploration for, extraction of, processing of, or 
     other development of energy resources on tribal land; and
       ``(B) construction or operation of an electric generation, 
     transmission, or distribution facility located on tribal 
     land; or a facility to process or refine energy resources 
     developed on tribal land; and
       ``(2) such lease or business agreement described in 
     paragraph (1) shall not require the approval of the Secretary 
     under section 2103 of the Revised Statutes (25 U.S.C. 81) or 
     any other provision of law, if--
       ``(A) the lease or business agreement is executed in 
     accordance with a tribal energy resource agreement approved 
     by the Secretary under subsection (e);
       ``(B) the term of the lease or business agreement does not 
     exceed--
       ``(i) 30 years; or
       ``(ii) in the case of a lease for the production of oil and 
     gas resources, 10 years and as long thereafter as oil or gas 
     is produced in paying quantities; and
       ``(C) the Indian tribe has entered into a tribal energy 
     resource agreement with the Secretary, as described in 
     subsection (e), relating to the development of energy 
     resources on tribal land (including an annual trust asset 
     evaluation of the activities of the Indian tribe conducted in 
     accordance with the agreement).
       ``(b) Rights-of-Way for Pipelines or Electric Transmission 
     or Distribution Lines.--An Indian tribe may grant a right-of-
     way over tribal land for a pipeline or an electric 
     transmission or distribution line without specific approval 
     by the Secretary if--
       ``(1) the right-of-way is executed in accordance with a 
     tribal energy resource agreement approved by the Secretary 
     under subsection (e);
       ``(2) the term of the right-of-way does not exceed 30 
     years;
       ``(3) the pipeline or electric transmission or distribution 
     line serves--
       ``(A) an electric generation, transmission, or distribution 
     facility located on tribal land; or
       ``(B) a facility located on tribal land that processes or 
     refines energy resources developed on tribal land; and
       ``(4) the Indian tribe has entered into a tribal energy 
     resource agreement with the Secretary, as described in 
     subsection (e), relating to the development of energy 
     resources on tribal land (including an annual trust asset 
     evaluation of the activities of the Indian tribe conducted in 
     accordance with the agreement).
       ``(c) Renewals.--A lease or business agreement entered into 
     or a right-of-way granted by an Indian tribe under this 
     section may be renewed at the discretion of the Indian tribe 
     in accordance with this section.
       ``(d) Validity.--No lease, business agreement, or right-of-
     way relating to the development of tribal energy resources 
     pursuant to the provisions of this section shall be valid 
     unless the lease, business agreement, or right-of-way is 
     authorized in accordance with a tribal energy resource 
     agreement approved by the Secretary under subsection (e)(2).

[[Page S7505]]

       ``(e) Tribal Energy Resource Agreements.--
       ``(1) On promulgation of regulations under paragraph (8), 
     an Indian tribe may submit to the Secretary for approval a 
     tribal energy resource agreement governing leases, business 
     agreements, and rights-of-way under this section.
       ``(2)(A) Not later than 180 days after the date on which 
     the Secretary receives a tribal energy resource agreement 
     submitted by an Indian tribe under paragraph (1) (or such 
     later date as may be agreed to by the Secretary and the 
     Indian tribe), the Secretary shall approve or disapprove the 
     tribal energy resource agreement.
       ``(B) The Secretary shall approve a tribal energy resource 
     agreement submitted under paragraph (1) if--
       ``(i) the Secretary determines that the Indian tribe has 
     demonstrated that the Indian tribe has sufficient capacity to 
     regulate the development of energy resources of the Indian 
     tribe; and
       ``(ii) the tribal energy resource agreement includes 
     provisions that, with respect to a lease, business agreement, 
     or right-of-way under this section--
       ``(I) ensure the acquisition of necessary information from 
     the applicant for the lease, business agreement, or right-of-
     way;
       ``(II) address the term of the lease or business agreement 
     or the term of conveyance of the right-of-way;
       ``(III) address amendments and renewals;
       ``(IV) address consideration for the lease, business 
     agreement, or right-of-way;
       ``(V) address technical or other relevant requirements;
       ``(VI) establish requirements for environmental review in 
     accordance with subparagraph (C);
       ``(VII) ensure compliance with all applicable environmental 
     laws;
       ``(VIII) identify final approval authority;
       ``(IX) provide for public notification of final approvals;
       ``(X) establish a process for consultation with any 
     affected States concerning potential off-reservation impacts 
     associated with the lease, business agreement, or right-of-
     way; and
       ``(XI) describe the remedies for breach of the lease, 
     agreement, or right-of-way.
       ``(C) Tribal energy resource agreements submitted under 
     paragraph (1) shall establish, and include provisions to 
     ensure compliance with, an environmental review process that, 
     with respect to a lease, business agreement, or right-of-way 
     under this section, provides for--
       ``(i) the identification and evaluation of all significant 
     environmental impacts (as compared with a no-action 
     alternative), including effects on cultural resources;
       ``(ii) the identification of proposed mitigation;
       ``(iii) a process for ensuring that the public is informed 
     of and has an opportunity to comment on the environmental 
     impacts of the proposed action before tribal approval of the 
     lease, business agreement, or right-of-way; and
       ``(iv) sufficient administrative support and technical 
     capability to carry out the environmental review process.
       ``(D) A tribal energy resource agreement negotiated between 
     the Secretary and an Indian tribe in accordance with this 
     subsection shall include--
       ``(i) provisions requiring the Secretary to conduct an 
     annual trust asset evaluation to monitor the performance of 
     the activities of the Indian tribe associated with the 
     development of energy resources on tribal land by the Indian 
     tribe; and
       ``(ii) in the case of a finding by the Secretary of 
     imminent jeopardy to a physical trust asset, provisions 
     authorizing the Secretary to reassume responsibility for 
     activities associated with the development of energy 
     resources on tribal land.
       ``(3) The Secretary shall provide notice and opportunity 
     for public comment on tribal energy resource agreements 
     submitted under paragraph (1). The Secretary's review of a 
     tribal energy resource agreement under the National 
     Environmental Policy Act (42 U.S.C. 4321 et seq) shall be 
     limited to the direct effects of that approval.
       ``(4) If the Secretary disapproves a tribal enemy resource 
     agreement submitted by an Indian tribe under paragraph (1), 
     the Secretary shall--
       ``(A) notify the Indian tribe in writing of the basis for 
     the disapproval;
       ``(B) identify what changes or other actions are required 
     to address the concerns of the Secretary; and
       ``(C) provide the Indian tribe with an opportunity to 
     revise and resubmit the tribal energy resource agreement.
       ``(5) If an Indian tribe executes a lease or business 
     agreement, or grants a right-of-way in accordance with a 
     tribal energy resource agreement approved under this 
     subsection, the Indian tribe shall, in accordance with the 
     process and requirements set forth in the Secretary's 
     regulations adopted pursuant to subsection (e)(8), provide to 
     the Secretary--
       ``(A) a copy of the lease, business agreement, or right-of-
     way document (including all amendments to and renewals of the 
     document); and.
       ``(B) in the case of a tribal energy resource agreement or 
     a lease, business agreement, or right-of-way that permits 
     payment to be made directly to the Indian tribe, 
     documentation of those payments sufficient to enable the 
     Secretary to discharge the trust responsibility of the United 
     States as appropriate under applicable law.
       ``(6)(A) Nothing in this section shall absolve the United 
     States from any responsibility to Indians or Indian tribes, 
     including those which derive from the trust relationship or 
     from any treaties, Executive Orders, or agreements between 
     the United States and any Indian tribe.
       ``(B) The Secretary shall continue to have a trust 
     obligation to ensure that the rights of an Indian tribe are 
     protected in the event of a violation of federal law or the 
     terms of any lease, business agreement or right-of-way under 
     this section by any other party to any such lease, business 
     agreement or right-of-way.
       ``(C) Notwithstanding subparagraph (A), the United States 
     shall not be liable to any party (including any Indian tribe) 
     for any of the terms of, or any losses resulting from the 
     terms of, a lease, business agreement, or right-of-way 
     executed pursuant to and in accordance with a tribal energy 
     resource agreement approved under subsection (e)(2).
       ``(7)(A) In this paragraph, the term `interested party' 
     means any person or entity the interests of which have 
     sustained or will sustain a significant adverse environmental 
     impact as a result of the failure of an Indian tribe to 
     comply with a tribal energy resource agreement of the Indian 
     tribe approved by the Secretary under paragraph (2).
       ``(B) After exhaustion of tribal remedies, and in 
     accordance with the process and requirements set forth in 
     regulations adopted by the Secretary pursuant to subsection 
     (e)(8), an interested party may submit to the Secretary a 
     petition to review compliance of an Indian tribe with a 
     tribal energy resource agreement of the Indian tribe approved 
     under this subsection.
       ``(C) If the Secretary determines that an Indian tribe is 
     not in compliance with a tribal energy resource agreement 
     approved under this subsection, the Secretary shall take such 
     action as is necessary to compel compliance, including--
       ``(i) suspending a lease, business agreement, or right-of-
     way under this section until an Indian tribe is in compliance 
     with the approved tribal energy resource agreement; and
       ``(ii) rescinding approval of the tribal energy resource 
     agreement and reassuming the responsibility for approval of 
     any future leases, business agreements, or rights-of-way 
     associated with an energy pipeline or distribution line 
     described in subsections (a) and (b).
       ``(D) If the Secretary seeks to compel compliance of an 
     Indian tribe with an approved tribal energy resource 
     agreement under subparagraph (C)(ii), the Secretary shall--
       ``(i) make a written determination that describes the 
     manner in which the tribal energy resource agreement has been 
     violated;
       ``(ii) provide the Indian tribe with a written notice of 
     the violation together with the written determination; and
       ``(iii) before taking any action described in subparagraph 
     (C)(ii) or seeking any other remedy, provide the Indian tribe 
     with a hearing and a reasonable opportunity to attain 
     compliance with the tribal energy resource agreement.
       ``(E)(i) An Indian tribe described in subparagraph (D) 
     shall retain all rights to appeal as provided in regulations 
     promulgated by the Secretary.
       ``(ii) The decision of the Secretary with respect to an 
     appeal described in clause (i), after any agency appeal 
     provided for by regulation, shall constitute a final agency 
     action.
       ``(8) Not later than 180 days after the date of enactment 
     of the Indian Tribal Energy Development and Self-
     Determination Act of 2003, the Secretary shall promulgate 
     regulations that implement the provisions of this subsection, 
     including--
       ``(A) criteria to be used in determining the capacity of an 
     Indian tribe described in paragraph (2)(B)(i), including the 
     experience of the Indian tribe in managing natural resources 
     and financial and administrative resources available for use 
     by the Indian tribe in implementing the approved tribal 
     energy resource agreement of the Indian tribe; and
       ``(B) a process and requirements in accordance with which 
     an Indian tribe may--
       ``(i) voluntarily rescind an approved tribal energy 
     resource agreement approved by the Secretary under this 
     subsection; and
       ``(ii) return to the Secretary the responsibility to 
     approve any future leases, business agreements, and rights-
     of-way described in this subsection.
       ``(f) No Effect on Other Law.--Nothing in this section 
     affects the application of--
       ``(1) any Federal environmental law;
       ``(2) the Surface Mining Control and Reclamation Act of 
     1977 (30 U.S.C. 1201 et seq.); or
       ``(3) except as otherwise provided in this title, the 
     Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et 
     seq.) and the National Environmental Policy Act (42 U.S.C. 
     4321 et seq.).

     ``SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS

       ``(a) Definitions.--In this section:
       ``(1) The term `Administrator' means the Administrator of 
     the Bonneville Power Administration and the Administrator of 
     the Western Area Power Administration.
       ``(2) The term `power marketing administration' means--
       ``(A) the Bonneville Power Administration;
       ``(B) the Western Area Power Administration; and
       ``(C) any other power administration the power allocation 
     of which is used by or for the benefit of an Indian tribe 
     located in the service area of the administration.

[[Page S7506]]

       ``(b) Encouragement of Indian Tribal Energy Development.--
     Each Administrator shall encourage Indian tribal energy 
     development by taking such actions as are appropriate, 
     including administration of programs of the Bonneville Power 
     Administration and the Western Area Power Administration, in 
     accordance with this section.
       ``(c) Action by the Administrator.--In carrying out this 
     section, and in accordance with existing law--
       ``(1) each Administrator shall consider the unique 
     relationship that exists between the United States and Indian 
     tribes.
       ``(2) power allocations from the Western Area Power 
     Administration to Indian tribes may be used to meet firming 
     and reserve needs of Indian-owned energy projects on Indian 
     land;
       ``(3) the Administrator of the Western Area Power 
     Administration may purchase power from Indian tribes to meet 
     the firming and reserve requirements of the Western Area 
     Power Administration; and
       ``(4) each Administrator shall not pay more than the 
     prevailing market price for an energy product nor obtain less 
     than prevailing market terms and conditions.
       ``(d) Assistance for Transmission System Use.--
       ``(1) An Administrator may provide technical assistance to 
     Indian tribes seeking to use the high-voltage transmission 
     system for delivery of electric power.
       ``(2) The costs of technical assistance provided under 
     paragraph (1) shall be funded by the Secretary of Energy 
     using nonreimbursable funds appropriated for that purpose, or 
     by the applicable Indian tribes.
       ``(e) Power Allocation Study.--Not later than 2 years after 
     the date of enactment of the Indian Tribal Energy Development 
     and Self-Determination Act of 2003, the Secretary of Energy 
     shall submit to the Congress a report that--
       ``(1) describes the use by Indian tribes of Federal power 
     allocations of the Western Area Power Administration (or 
     power sold by the Southwestern Power Administration) and the 
     Bonneville Power Administration to or for the benefit of 
     Indian tribes in service areas of those administrations; and
       ``(2) identifies--
       ``(A) the quantity of power allocated to Indian tribes by 
     the Western Area Power Administration;
       ``(B) the quantity of power sold to Indian tribes by other 
     power marketing administrations; and
       ``(C) barriers that impede tribal access to and use of 
     Federal power, including an assessment of opportunities to 
     remove those barriers and improve the ability of power 
     marketing administrations to facilitate the use of Federal 
     power by Indian tribes.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $750,000, which 
     shall remain available until expended and shall not be 
     reimbursable.

     ``SEC. 2606. INDIAN MINERAL DEVELOPMENT REVIEW.

       ``(a) In General.--The Secretary shall conduct a review of 
     all activities being conducted under the Indian Mineral 
     Development Act of 1982 (25 U.S.C. 2101 et seq.) as of that 
     date.
       ``(b) Report.--Not later than 1 year after the date of 
     enactment of the Indian Tribal Energy Development and Self-
     Determination Act of 2003, the Secretary shall submit to the 
     Congress a report that includes--
       ``(1) the results of the review;
       ``(2) recommendations to ensure that Indian tribes have the 
     opportunity to develop Indian energy resources; and
       ``(3) an analysis of the barriers to the development of 
     energy resources on Indian land (including legal, fiscal, 
     market, and other barriers), along with recommendations for 
     the removal of those barriers.

     ``SEC. 2607. WIND AND HYDROPOWER FEASIBILITY STUDY.

       ``(a) Study.--The Secretary of Energy, in coordination with 
     the Secretary of the Army and the Secretary, shall conduct a 
     study of the cost and feasibility of developing a 
     demonstration project that would use wind energy generated by 
     Indian tribes and hydropower generated by the Army Corps of 
     Engineers on the Missouri River to supply firming power to 
     the Western Area Power Administration.
       ``(b) Scope of Study.--The study shall--
       ``(1) determine the feasibility of the blending of wind 
     energy and hydropower generated from the Missouri River dams 
     operated by the Army Corps of Engineers;
       ``(2) review historical purchase requirements and projected 
     purchase requirements for firming and the patterns of 
     availability and use of firming energy;
       ``(3) assess the wind energy resource potential on tribal 
     land and projected cost savings through a blend of wind and 
     hydropower over a 30-year period;
       ``(4) determine seasonal capacity needs and associated 
     transmission upgrades for integration of tribal wind 
     generation; and
       ``(5) include an independent tribal engineer as a study 
     team member.
       ``(c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary and Secretary of the 
     Army shall submit to Congress a report that describes the 
     results of the study, including--
       ``(1) an analysis of the potential energy cost or benefits 
     to the customers of the Western Area Power Administration 
     through the blend of wind and hydropower;
       ``(2) an evaluation of whether a combined wind and 
     hydropower system can reduce reservoir fluctuation, enhance 
     efficient and reliable energy production, and provide 
     Missouri River management flexibility;
       ``(3) recommendations for a demonstration project that 
     could be carried out by the Western Area Power Administration 
     in partnership with an Indian tribal government or tribal 
     energy resource development organization to demonstrate the 
     feasibility and potential of using wind energy produced on 
     Indian land to supply firming energy to the Western Area 
     Power Administration or any other Federal power marketing 
     agency; and
       ``(4) an identification of--
       ``(A) the economic and environmental costs or benefits to 
     be realized through such a Federal-tribal partnership; and
       ``(B) the manner in which such a partnership could 
     contribute to the energy security of the United States.
       ``(d) Funding.--
       ``(1) There is authorized to be appropriated to carry out 
     this section $500,000, to remain available until expended.
       ``(2) Costs incurred by the Secretary in carrying out this 
     section shall be nonreimbursable.''.
       (b) Conformiing Amendments.--The table of contents for the 
     Energy Policy Act of 1992 (25 U.S.C. 3501 et seq.) is amended 
     by striking items relating to Title XXVI, and inserting:

``Sec. 2601. Definitions.
``Sec. 2602. Indian tribal energy resource development.
``Sec. 2603. Indian tribal energy resource regulation.
``Sec. 2604. Leases, business agreements, and rights-of-way involving 
              energy development or transmission.
``Sec. 2605. Federal Power Marketing Administrations.
``Sec. 2606. Indian mineral development review.
``Sec. 2607. Wind and hydropower feasibility study.



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