Congressional Record, Volume 152 Issue 52 (Thursday, May 4, 2006)

[Congressional Record Volume 152, Number 52 (Thursday, May 4, 2006)]
[Senate]
[Pages S4053-S4076]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. ENSIGN:
S. 2718. A bill to require full disclosure by entities receiving
Federal funds, and for other purposes; to the Committee on Homeland
Security and Governmental Affairs.
Mr. ENSIGN. Mr. President, the American taxpayers are fed up. They
are tired of the pork projects and the billions of dollars being spent
on unaccountable, unnecessary, and wasteful Federal spending. Whether
spending is a result of earmarks, or the often unsupervised process of
Federal agencies awarding grants, spending is out of control.
Americans work hard every day, and they struggle to meet the heavy
tax burden that Washington imposes on them. Despite their struggle and
sacrifice, Washington has failed to ensure that Americans' tax dollars
are being spent wisely. The American public believes, and they are
right, that Congress has lost sight of the fact that every dollar we
spend here in Washington belongs to them. These are dollars that could
have been spent by the people who earned them to care for their own
families.
The American taxpayers have had enough. They are frustrated and
disgusted. And I join them in their frustration and disgust. Congress
has not done a very good job of oversight. It is time for Congress to
empower the American people so that government is more accountable to
them. That is why I am introducing new legislation--the Website for
American Taxpayers to Check and Help Deter Out-of-control Government
Spending--or the WATCHDOG Act.
This bill will give our constituents the tools they need to become
citizen watchdogs. Americans will be able to see for themselves how
their tax dollars are being spent. This bill will greatly improve
transparency and help eliminate wasteful, fraudulent, duplicative, and
unnecessary spending. It will give the American people the tools to
monitor how Congress uses the earmarks process and how the bureaucrats,
who spend billions of dollars a year in unsupervised grants, spend
their tax dollars.
Americans are aggravated because too often when they learn about
wasteful spending it is too late for them to do anything about it. They
learn about spending by reading their morning papers after the
legislation has been signed into law or the grant money has been
awarded. Sometimes that is how members of Congress learn about them as
well. It's time to remove the cloak of secrecy that surrounds the
earmarking and grantmaking processes. We need to shine a very bright
light on how spending decisions are made.
In this case, that bright light will be a publicly searchable online
database that provides information on every organization receiving
Federal funds. The Office of Management and Budget would be required to
make all Federal grant and loan recipient data available to the public.
The data must include information on Federal grant awards, including
an itemized breakdown by agency and program. The database must also
list all subgrantees of an organization that receives Federal funds.
This bill also reforms and streamlines the grant process by requiring
organizations that apply for Federal funding to use a single source
application number, which they would use for requesting funding from
any Federal agency.
Those projects that are using Federal funds efficiently and with
positive results will become obvious, and those programs that are
duplicative, fail to show results, squander their funding, or act
fraudulently will also become obvious.
Here in Washington we have done a dismal job when it comes to cutting
out unnecessary spending. By shining a light on this process, the
American public will have a chance to help us eliminate billions of
dollars in wasteful

[[Page S4054]]

Federal funding. We owe it to the taxpayers and to future generations
to clean up our act. This legislation gives taxpayers an important tool
to hold Congress' feet to the fire.
______

By Mr. NELSON of Florida:
S. 2719. A bill to designate the facility of the United States Postal
Service located at 1400 West Jordan Street in Pensacola, Florida, as
the ``Earl D. Hutto Post Office Building''; to the Committee on
Homeland Security and Governmental Affairs.
Mr. NELSON of Florida. Mr. President, I ask unanimous consent that
this bill ``To designate the facility of the United States Postal
Service located at 1400 West Jordan Street in Pensacola, Florida, as
the `Earl D. Hutto Post office Building' '' be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 2719

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

SECTION 1. EARL D. HUTTO POST OFFICE BUILDING.

(a) Designation.--The facility of the United States Postal
Service located at 1400 West Jordan Street in Pensacola,
Florida, shall be known and designated as the ``Earl D. Hutto
Post Office Building''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
facility referred to in subsection (a) shall be deemed to be
a reference to the ``Earl D. Hutto Post Office Building''.
______

By Mr. BAUCUS:
S. 2720. A bill to amend the Internal Revenue Code of 1986 to provide
incentives to improve America's research competitiveness, and for other
purposes; to the Committee on Finance.
Mr. BAUCUS. Mr. President, on October 4, 1957, an object the size of
a basketball shot into space. And history changed.
The Soviet Union had launched Sputnik. And Americans reacted with
fear. That fear quickly turned to determination to win the race to
space.
Just one month later, the Russians launched Sputnik II with one
precious passenger: a Russian mutt named Laika. Laika became the first
living being to orbit earth. Today, a dog in space might seem like a
good start for a Disney film. But in 1957, American scientists worried
that these events foreshadowed Soviet military and strategic advantage.
By the following summer, Congress had created NASA. Sputnik's launch
had provided the catalyst. For years before, scientific organizations
and even the White House had declared the exploration of space as a
priority. It took Sputnik to move us to action.
Half a century later, we find ourselves waiting for the next Sputnik.
Report after report has outlined the risk that America runs by not
doing more in research and education. A recent report entitled
``Waiting for Sputnik'' cautions that our workforce must include a
greater percentage of ``knowledge workers''--including scientists and
engineers--if we are to maintain our technological lead in defense
capabilities. And another recent report, ``Rising Above the Gathering
Storm,'' expresses fear that America's lead in science and technology
can be abruptly lost and difficult or impossible to regain.
What these reports and others are telling us is one thing: We cannot
wait for the next Sputnik. We must recognize that our advantage is
fleeting. We must begin today with more science, more education, and
more commitment to research to prepare for the future.
Asia has recognized this. Asia is plowing more funding into science
and education. China, in particular, understands that technological
advancement means security, independence, and economic growth. Spending
on research and development has increased by 140 percent in China,
Korea and Taiwan. In America, it has increased by only 34 percent.
Asia's commitment is already paying off. More than a hundred Fortune
500 companies have opened research centers in India and China. I have
visited some of them. I was impressed with the level of skill of the
workers I met there.
China's commitment to research, at $60 billion in expenditures, is
dramatic by any measure. Over the last few years, China has doubled the
share of its economy that it invests in research. China intends to
double the amount committed to basic research in the next decade.
Currently, only America beats out China in numbers of researchers in
the workforce.
Over the last few months, I have offered a series of proposals to
improve America's competitiveness. Today, I am pleased to introduce the
Research Competitiveness Act of 2006. This bill would improve our
research competitiveness in four major areas. All four address
incentives in our tax code. Government also supports research through
Federal spending. But I am not addressing those areas today.
First, my bill improves and simplifies the credit for applied
research in section 41 of the tax code. This credit has grown to be
overly complex, both for taxpayers and the IRS. Beginning in 2008, my
bill would create a simpler 20 percent credit for qualifying research
expenses that exceed 50 percent of the average expenses for the prior 3
years.
And just as important: The bill makes the credit permanent. Because
the credit has been temporary, it has simply not been as effective as
it could be. Since its creation in 1981, it has been extended 10 times.
Congress even allowed it to lapse during one period.
The credit expired again just last December. And another short-term
extension is pending in both tax reconciliation bills in conference.
Last year, the experts at the Joint Committee on Taxation wrote:
``Perhaps the greatest criticism of the R&E credit among taxpayers
regards its temporary nature.'' Joint Tax went on to say, ``A credit of
longer duration may more successfully induce additional research than
would a temporary credit, even if the temporary credit is periodically
renewed.''
Currently, there are two different ways to claim a tax credit for
qualifying research expenses. First, the ``traditional'' credit relies
on incremental increases in expenses compared to a mid-1980s base
period. Second, the ``alternative incremental'' credit measures the
increase in research over the average of the prior 4 years.
Both of these credits have base periods involving gross receipts. My
bill replaces these with a new credit, known as the ``Alternative
Simplified Credit,'' based on research spending without reference to
gross receipts. The current formula hurts companies that have
fluctuating sales. And it hurts companies that take on a new line of
business not dependent on research.
The Senate has passed this alternative formula as an optional credit
several times. It is now pending in both versions of the tax
reconciliation bill. It has not yet been enacted, though, even on a
temporary basis.
I support the 2-year extension of the R&E credit contained in the
Senate version of the tax reconciliation bill. That is why this new
simpler formula in my bill would not start until 2008. That start date
would give companies plenty of time to adjust their accounting.
The main complaint about the existing credits is that they are very
complex, particularly the reference to the 20-year-old base period.
This base period creates problems for the taxpayer in trying to
calculate the credit. And it creates problems for the IRS in trying to
administer and audit those claims.
The new credit focuses only on expenses, not gross receipts. And is
still an incremental credit, so that companies must continue to
increase research spending over time.
A tax credit is a cost-effective way to promote R&E. A report by the
Congressional Research Service finds that without government support,
investment in R&E would fall short of the socially optimal amount. Thus
CRS endorses Government policies to boost private sector R&E.
Also, American workers who are engaged in R&E activities benefit from
some of the most intellectually stimulating, high-paying, high-skilled
jobs in the economy.
My own State of Montana has excellent examples of this economic
activity. During the 1990s, about 400 establishments in Montana
provided high-technology services, at an average wage of about $35,000
per year. These jobs paid nearly 80 percent more than the average
private sector wage, which was less than $20,000 a year during the same
period. Many of these jobs would never have been created without the
assistance of the R&E credit.

[[Page S4055]]

My research bill would also establish a uniform reimbursement rate
for all contract and consortia R&E. It would provide that 80 percent of
expenses for research performed for the taxpayer by other parties count
as qualifying research expenses under the regular credit.
Currently, when a taxpayer pays someone else to perform research for
the taxpayer, the taxpayer can claim one of three rates in order to
determine how much the taxpayer can include for the research credit.
The lower amount is meant to assure overhead expenses that normally do
not qualify for the R&E credit are not counted. Different rates,
however, create unnecessary complexity. Therefore, my bill creates a
uniform rate of 80 percent.
The second major research area that this bill addresses is the need
to enhance and simplify the credit for basic research. This credit
benefits universities and other entities committed to basic research.
And it benefits the companies or individuals who donate to them. My
bill provides that payments under the university basic research credit
would count as contractor expenses at the rate of 100 percent.
The current formula for calculating the university basic research
credit--defined as research ``for the advancement of science with no
specific commercial objective''--is even more complex that the regular
traditional R&E credit. Because of this complexity, this credit costs
less than one-half of 1 percent of the cost of the regular R&E credit.
It is completely under-utilized. It needs to be simplified to encourage
businesses to give more for basic research.
American universities have been powerful engines of scientific
discovery. To maintain our premier global position in basic research,
America relies on sustained high levels of basic research funding and
the ability to recruit the most talented students in the world. The
gestation of scientific discovery is long. At least at first, we cannot
know the commercial applications of a discovery. But America leads the
world in biotechnology today because of support for basic research in
chemistry and physics in the 1960s. Maintaining a commitment to
scientific inquiry, therefore, must be part of our vision for sustained
competitiveness.
Translating university discoveries into commercial products also
takes innovation, capital, and risk. The Center for Strategic and
International Studies asked what kind of government intervention can
maintain technological leadership. One source of technological
innovation that provides America with comparative advantage is the
combination of university research programs, entrepreneurs, and risk
capital from venture capital, corporations, or governments. Research
clusters around Silicon Valley and North Carolina's Research Triangle
exemplify this sort of combination.
The National Academies reached a similar conclusion in a 2002 review
of the National Nanotechnology Initiatives. In a report, they wrote:
``To enhance the transition from basic to applied research, the
committee recommends that industrial partnerships be stimulated and
nurtured to help accelerate the commercialization of national
nanotechnology developments.''
To further that goal, the third major area this bill addresses is
fostering the creation of research parks. This part of the bill would
benefit state and local governments and universities that want to
create research centers for businesses incubating scientific
discoveries with promise for commercial development.
Stanford created the Nation's first high-tech research park in 1951,
in response to the demand for industrial land near the university and
an emerging electronics industry tied closely to the School of
Engineering. The Stanford Research Park traces its origins to a
business started with $538 in a Palo Alto garage by two men named Bill
Hewlett and Dave Packard. The Park is now home to 140 companies in
electronics, software, biotechnology, and other high tech fields.
Similarly, the North Carolina Research Triangle was founded in 1959
by university, government, and business leaders with money from private
contributions. It now has 112 research and development organizations,
37,600 employees, and capital investment of more than $2.7 billion.
More recently, Virginia has fostered a research park now housing 53
private-sector companies, nonprofits, VCU research institutes, and
state laboratories. The Virginia park employs more than 1,300 people.
The creation of these parks would seem to be an obvious choice. But
it takes a significant commitment from a range of sources to bring them
into being. To foster the creation and expansion of these successful
parks, my bill will encourage their creation through the use of tax-
exempt bond financing. Allowing tax-exempt bond authority would bring
down the cost to establish such parks.
Foreign countries are emulating this successful formula. They are
establishing high-tech clusters through government and university
partnerships with private industry.
Back in 2000, a partnership was formed to foster TechRanch to assist
Montana State University and other Montana-based research institutions
in their efforts to commercialize research. But TechRanch is
desperately in need of some new high-tech facilities. It could surely
benefit from a provision such as this. I encourage my Colleagues to
visit research parks in their States to see how my bill could be
helpful in fostering more successful ventures.
A related item is a small fix to help universities that use tax-
exempt bonds to build research facilities primarily for federal
research in the basic or fundamental research area. Some of these
facilities housing federal research--mostly NIH and NSF funded
projects--are in danger of losing their tax-exempt bond status. Counsel
have notified some state officials that they may be running afoul of a
prohibition on ``private use'' in the tax code, because one private
party has a superior claim to others in the use of inventions that
result from research.
The complication comes from a 1980 law. In 1980, Congress enacted the
Patent and Trademark Law Amendments Act, also known as the Bayh-Dole
Act. The Bayh-Dole Act requires the Federal Government to retain a non-
exclusive, royalty-free right on any discovery. In order to foster more
basic research through Federal-State-university partnerships, we need
to clarify that this provision of the Bayh-Dole act does not cause
these bonds to lose their tax-exempt status. And my bill directs the
Treasury Department to do so. I understand that the Treasury Department
is aware of this significant concern. Whether or not Congress enacts my
legislation, I hope that the Treasury Department will clarify the
situation later this year.
The fourth major area that my bill addresses is innovation at the
small business level. Recently, representatives of a number of small
nanotechnology companies came to visit me. They told me that their
greatest problem was surviving what they called the ``valley of
death.'' That's what they called the first few years of business, when
an entrepreneur has a promising technology but little money to test or
develop it. Many businesses simply do not survive the ``valley of
death.'' I believe that Congress should find a way to assist these
businesses with promising technology.
Nanotechnology, for instance, shows much promise. According to one
recent report, over the next decade, nanotechnology will affect most
manufactured goods. As stated in Senate testimony by one National
Science Foundation official earlier this year, ``Nanotechnology is
truly our next great frontier in science and engineering.'' It took me
a while to understand just what nanotechnology is. But it is basically
the control of things at very, very small dimensions. By understanding
and controlling at that dimension, people can find new and unique
applications. These applications range from common consumer products--
such as making our sunblocks--better to improving disease-fighting
medicines--to designing more fuel-efficient cars.
So, to help these small businesses convert their promising science
into successful businesses, my bill would establish tax credits for
investments in qualifying small technology innovation companies. These
struggling start-up ventures often cannot utilize existing incentives
in the tax code--like the R&E tax credit--because they have no tax
liability and may have little income for the first few years. They need
access to cheap capital to get through

[[Page S4056]]

those first few research-intensive years.
The credit in my bill would be similar to the existing and successful
New Markets Tax Credit. The New Markets Credit has provided billions of
dollars of investment to low-income communities across the country. In
my bill, entities with some expertise and knowledge of research would
receive an allocation from Treasury to analyze and select qualifying
research investments. These investment entities would then target small
business with promising technologies that focus the majority of their
expenditures on activity qualifying as research expenses under the R&E
credit.
In sum, my bill would boost both applied and basic research. It would
boost research by businesses big and small. And it would foster
research by for-profit and non-profits alike.
There is no clear answer to how to address the concerns raised in the
``Waiting for Sputnik'' report. But the answer is clear that we must
try--and soon.
A noted environmentalist once said: ``Every major advance in the
technological competence of man has forced revolutionary changes in the
economic and political structure of society.'' From telephones to
rockets to computers, I believe that this is true.
Let us work to see that the next big technological advance is
discovered here in America. Only through continued commitment to
research can we ensure that it is.
______

By Mrs. CLINTON (for herself and Mr. Schumer):
S. 2722. A bill to designate the facility of the United States Postal
Service located at 170 East Main Street in Patchogue, New York, as the
``Lieutenant Michael P. Murphy Post Office Building''; to the Committee
on Homeland Security and Governmental Affairs.
Mrs. CLINTON. Mr. President, today I rise to discuss legislation that
designates the United States Post Office Building in Patchogue, New
York as the ``Lieutenant Michael P. Murphy Post Office Building.''
Almost a year ago, Navy LT Michael P. Murphy was reported missing in
the mountains of Afghanistan while on a covert reconnaissance mission
in search of Taliban and al-Qaida insurgents. Reports indicate
Lieutenant Murphy and the three other members of his Navy SEAL team
came under heavy attack by Taliban insurgents soon after they were
inserted by helicopter into their position. The military creed of
``never leaving a fallen comrade behind'' was never more appropriate as
this American hero's body was recovered on the Fourth of July, our
Nation's Independence Day. Michael Murphy was only 29 years of age at
the time of his passing, but as his father recalls, ``He squeezed more
life into 29 years than I will ever see.''
Lieutenant Murphy attended Patchogue-Medford High School on Long
Island, where he was a National Honor Society student and a varsity
football athlete. After graduating high school he attended Penn State
University where he majored in political science and excelled
academically. At the time of his graduation, he decided to fulfill a
lifelong dream of becoming a Navy SEAL. While realizing this would be a
formidable challenge, Michael was determined to serve our country.
Michael was engaged to be married, and he planned to attend law school
after his military service.
I ask that the Senate come together and honor this brave American
hero for his service to our Nation.
______

By Mrs. CLINTON (for herself, Mr. Kennedy, Mr. Jeffords, Mr.
Leahy, Mr. Harkin, and Mr. Obama):
S. 2725. A bill to amend the Fair Labor Standards Act of 1938 to
provide for an increase in the Federal Minimum wage and to ensure that
increases in the Federal minimum wage keep pace with any pay
adjustments for Members of Congress; to the Committee on Health,
Education, Labor, and Pensions.
Mrs. CLINTON. Mr. President, I rise today to introduce the ``Standing
with Minimum Wage Earners Act''. This legislation will raise the
minimum wage over the next two years and link future increases in the
minimum wage to Congressional raises.
Today, working parents earning the minimum wage are struggling to
make ends meet and to build better lives for their children. The
Federal minimum wage is currently $5.15 an hour, an amount that has not
been increased since 1997. Sadly, during that time, Congress has given
itself eight annual pay raises. We can no longer stand by and regularly
give ourselves a pay increase while denying a minimum wage increase to
help the more than 7 million men and women working hard across this
nation. At a time when working families are struggling to put food on
the table, it's critically important that we here in Washington do
something. If Members of Congress need an annual cost of living
adjustment, then certainly the lowest-paid members of our society do
too.
There are currently 13 million American children living in poverty
across this country, and this number is increasing every day. Families
work hard and yet cannot make enough money to support themselves. More
families are falling into poverty every day, and these families are
working 40 hours a week. This is unacceptable.
Minimum wage workers have not had a raise in nearly a decade. The
reality is a full-time job that pays minimum wage just does not provide
enough money to support a family today. A single mother with two
children who works 40 hours a week, 52 weeks a year earns only $10,700
a year. This amount--$10,700 a year--is almost $6,000 below the Federal
poverty line for a family of three. We have a responsibility to help
families earn a living wage.
My legislation will benefit all minimum wage earners, and it would
especially benefit women who represent a disproportionate number of
low-wage workers. 61 percent of minimum wage earners are women, even
though women only comprise 48 percent of the total workforce. And
almost one-third of these working women are raising children.
The women in my State of New York would feel the effects of a minimum
wage increase most dramatically. New York is one of the top five States
with the greatest number of low-wage women workers.
In addition to helping America's hardest working families, raising
the minimum wage will also narrow the dramatic income gap between the
haves and the have-nots across the country. The average income of the
richest fifth of New York State families is 8.1 times the average
income of the poorest fifth. Nationwide, families in the top fifth made
7.3 times more than those in the bottom fifth. This discrepancy needs
to be fixed and my bill would be a step in the right direction towards
fairness for America's hard-working families.
My legislation would increase the minimum wage first to $5.85 an
hour, then to $6.55 an hour, and ultimately to $7.25 an hour within the
next two years. In addition, my legislation then ensures that every
time Congress gives itself a raise in the future that Americans get a
raise too. This is the right and fair thing to do for hardworking
Americans.
I would like to recognize my cosponsors Senators Kennedy, Jeffords,
Leahy, Harkin and Obama and thank them for joining me in this effort.
The ``Standing with Minimum Wage Earners Act'' has letters of support
from Service Employees International Union (SEIU), the American
Federation of Labor--Congress of Industrial Organization (AFL-CIO) and
the Coalition for Human Needs.
I ask my colleagues to recognize the moral aspect of this issue. It
is simply wrong to pay people a wage that they can barely live on. And
it is shameful to continue to give ourselves raises as millions of
American families struggle to survive. We should raise the Federal
minimum wage so that working parents can lift their children out of
poverty. It is past time to make this investment in our children and
families.
______

By Mr. BOND (for himself and Mr. Akaka):
S. 2735. A bill to amend the National Dam Safety Program Act to
reauthorize the national dam safety program, and for other purposes; to
the Committee on Environment and Public Works.
Mr. BOND. Mr. President, my distinguished colleague Senator Akaka and
I are introducing legislation today to reauthorize the National Dam
Safety and

[[Page S4057]]

Security Program. The goal of this program, administered by FEMA, has
been to advance dam safety in the United States and prevent loss of
life and property damage from dam failures at both the Federal and
State programmatic levels.
Over the last several months we have seen in both my home State of
Missouri and my colleague's State of Hawaii, how critically important
proper regulation, inspection and safety training is for maintaining
our Nation's dams. The National Dam Safety Program Act provides much
needed assistance to State dam safety programs, which are responsible
for regulating 95 percent of the 80,000 dams in the U.S.
The States receive training assistance for their dam safety engineers
and State grant assistance based on the number of dams in the State.
The National Dam Safety Program, currently administered by FEMA within
DHS, expires in September 30, 2006 and needs to be reauthorized.
I am proud to introduce this legislation along with my colleague
Senator Akaka in order to strengthen the protection of our citizens and
critical infrastructure from dam failures through the Dam Safety and
Security Program.
Mr. AKAKA. Mr. President, I rise today, along with my colleague,
Senator Christopher Bond, to introduce the Dam Safety Act of 2006. This
legislation is designed to help prevent such tragic failures as the
collapse of the privately owned Ka Loko Dam in Kauai last March in
which seven people died. The legislation complements legislation that I
introduced with Senator Inouye, S. 2444, the Dam Rehabilitation and
Repair Act of 2006, which assists in securing and repairing publicly
owned dams. Both of these bills are critical to preventing the type of
devastating collapse which occurred on Kauai.
This legislation is vitally important not only to my State but to
every State. There are approximately 79,000 dams registered in the
National Inventory of Dams. However, there are many more dams that are
small and unregulated. This bill provides funding for State dam safety
programs to enhance their oversight and support abilities.
The Dam Safety Act of 2006 reauthorizes the National Dam Safety
Program, NDSP, which was first established as part of the Water
Resources Development Act of 1996 Public Law 104-303. In 2002, the NDSP
was reauthorized for another 4 years by the enactment of the Dam Safety
and Security Act of 2002 Public Law 107-310. It expires at the end of
this fiscal year, so its reauthorization is imperative.
The National Dam Safety Program delivers vital Federal resources to
State governments to improve their dam safety programs by providing
funds for training, technical assistance, research, and support.
Federal incentive grants are awarded to States to enhance their dam
safety programs. In addition, funds have been used to hire staff for
inspections, pay for specialized training, and develop specialized
mapping in the event that a dam failure necessitates evacuation.
Of the approximately $12 million authorized for each fiscal year, $8
million is divided among the States to improve safety programs and $2
million is allocated for research to identify more effective techniques
to assess, construct, and monitor dams. In addition, $700,000 is
available for training assistance for State engineers, and $1 million
is used for the National Inventory of Dams.
The costs of failing to maintain dams properly are extremely high.
There have been at least 29 dam failures in the United States during
the past 2 years causing more than $200 million in property damages.
The failure of the Silver Lake Dam in Michigan in 2003 caused more than
$100 million in property damage. A December 2005 dam collapse in
Missouri injured three children and destroyed several homes. People
caught in the path of a dam collapse are often helpless to escape.
Such was the tragic situation in Hawaii when, in March, the Ka Loko
Dam, a 116-year earthen dam, on the island of Kauai suddenly collapsed
during heavy rains, killing seven people. When a dam collapses,
destruction is often swift and uncontrollable. In the case on Kauai,
local, State, and Federal officials quickly responded to the tragedy,
assisting citizens while engineers from both the State Department of
Land and Natural Resources and the U.S. Army Corps of Engineers
inspected the over 50 dams on Kauai. Neighbors worked together to help
neighbors, and our Governor quickly requested more funds, which the
legislature approved, for cleanup and additional inspections.
While most of the responsibility is at the State and local level,
there is a role for the Federal Government in supplementing State
resources and developing national guidelines for dam safety. The funds
Hawaii receives under the program help the State's staff to acquire and
maintain equipment and software to assess dam safety. It is a small
amount but vitally important to my State and to every State.
I urge my colleagues to join Senator Bond and me in supporting the
reauthorization of the National Dam Safety Program.
I ask unanimous consent to insert in the Record at this point a
letter from the Dam Safety Coalition endorsing this legislation.
There being no objection, the material was ordered to be printed in
the Record, as follows:

Dam Safety Coalition,

Washington, DC, May 4, 2006.
Hon. Kit Bond,
Russell Senate Office Building,
Washington, DC.
Hon. Daniel Akaka,
Hart Senate Office Building,
Washington, DC.
Dear Senator Bond and Senator Akaka: We would like to
commend you for your commitment to dam safety and to the
reauthorization of the National Dam Safety Program.
Dams are a vital part of our nation's aging infrastructure
and provide enormous benefits to the majority of Americans--
benefits that include drinking water, flood protection,
renewable hydroelectric power, navigation, irrigation and
recreation. Yet, these critical daily benefits provided by
the nation's dams are inextricably linked to the potential
consequences of a dam failure if the dam is not maintained,
or is unable to impound water, pass large flood events or
withstand earthquake events in a safe manner.
The Dam Safety Coalition is proud to highlight the
achievements of the National Dam Safety Program, administered
by the Federal Emergency Management Agency (FEMA).
Specifically, the program has fostered significant
improvements in state dam safety programs, provided critical
training to state engineers and established unprecedented
cooperation between federal dam safety agencies and state dam
safety programs. It requires FEMA to provide assistance to
states in establishing, maintaining and improving dam safety
programs.
Dams in the United States are aging, downstream development
below dams is increasing dramatically and many older dams do
not meet current dam safety standards. Dam failures are
largely preventable disasters.
In 2005, the American Society of Civil Engineers published
the Report Card for America's Infrastructure giving the
condition of our nation's dams a grade of D, equal to the
overall infrastructure grade. States have identified 3,500
unsafe or deficient dams, many being susceptible to large
flood events or earthquakes. It is a reasonable expectation
of every American to be protected by our government;
including protection from preventable disasters such as dam
failures.
To contact the Dam Safety Coalition please call Brian
Pallasch if we can be of assistance.
We look forward to working with you to enact the National
Dam Safety Act in the 109th Congress.
Sincerely,
Brian T. Pallasch,
Co-Chair, Dam Safety Coalition.
Lori C. Spragens,
Executive Director, ASDSO.
______

By Mr. CRAIG (for himself and Mr. Akaka):
S. 2736. A bill to require the Secretary of Veterans Affairs to
establish centers to provide enhanced services to veterans with
amputations and prosthetic devices, and for other purposes; to the
Committee on Veterans' Affairs.
Mr. CRAIG. Mr. President, today I seek floor recognition to introduce
legislation to create a series of Amputation and Prosthetic
Rehabilitation Centers in the Department of Veterans Affairs.
As many of you are aware, VA already operates numerous specialty care
centers for the treatment of veterans with spinal cord injury,
traumatic brain injury, and visual impairment. However, at this moment,
VA does not operate any similar centers of care for the treatment of
veterans with amputations.
I do not mean to suggest that VA does not provide excellent care and
services to those veterans who have unfortunately lost a limb or part
of limb.

[[Page S4058]]

But, there's always room for improvement in the care VA delivers and,
just as importantly, there is room for improvement in the prosthetic
services and devices that help those men and women with their physical
restoration.
Many of us have spoken personally with service members who are
recuperating from injuries at Walter Reed Army Medical Center or
Bethesda Naval Hospital. Today's extraordinary battlefield medicine is
bringing back to our shores service members from Iraq and Afghanistan
who would never have lived through their injuries in previous wars.
Thanks to the best health care facilities the military has to offer and
the wonders of modern medicine, these brave Americans will eventually
leave the hospital. Then, most will start the difficult process of
reintegrating into civilian life. For those whose injuries resulted in
an amputation, that process is just a little more difficult.
My hope with this bill is that these centers will be the lynchpin of
a fully integrated Prosthetic Service Network; similar to those I
mentioned at the outset of my remarks for the care of spinal cord
injury, traumatic brain injury, and blindness. They would be fully
responsible for the system-wide coordination of all of the Physical and
Occupational Therapy and Prosthetics care provided to this new
generation of severely wounded veterans. In addition, they will provide
a new level of service to those who have long lived with amputations
caused during previous wars or conflicts.
Further, it is my hope and expectation that these centers will house
and drive much of the prosthetic and amputee related research and
development projects conducted by VA. I believe that by gathering under
one roof specialists, who have dedicated their medical practice to
caring for and rehabilitating those who have lost limbs, we will drive
the marketplace of ideas and develop the best treatment in the country.
There is no limit to what modern technology, American ingenuity, and a
great cause can accomplish.
Just the other day, my Committee held a hearing on VA's research
program. At that meeting, I had the opportunity to speak with a VA
clinician who, along with many of his colleagues, has created a proto-
type prosthetic for someone who had lost part of a hand, but still had
wrist control. In just a few moments time, I was able to wire the
equipment to my own arm and with a little practice pick up a glass of
water, hold it in the prosthetic hand, and then return it to the table
and remove the hand from it without spilling a drop. It was nothing
short of amazing. It was also a small glimpse of where we can go.
Of course, discoveries and inventions, like that hand, do not just
remain in the VA vacuum. Once created, tested and approved, the R&D
will leave the VA world and almost immediately benefit the civilian
population of amputees. By combining the resources of our government
and the needs of our veterans, we can improve the American medical
system for all of our citizens.
With the right technology, the best health care services, and a
little personal drive, many of our amputees will return to active
lives. They will play tennis, basketball, go kayaking, and even climb
mountains. And while I am not suggesting that these centers will cause
all of that to happen, I believe they will create the environment in
which those things can happen.
I hope all of my colleagues will join me in supporting this bill now.
And I hope to report it out of my committee and bring it to the floor
for a vote later this summer.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 2736

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

SECTION 1. AMPUTATION AND PROSTHETIC REHABILITATION CENTERS
FOR VETERANS.

(a) Establishment.--
(1) In general.--The Secretary of Veterans Affairs shall
establish not less than five centers to provide
rehabilitation services to veterans with amputations or
prosthetic devices.
(2) Purpose.--The purpose of each center established
pursuant to paragraph (1) are--
(A) to provide regional clinical facilities of the
Department of Veterans Affairs with special expertise in
prosthetics, rehabilitation with the use of prosthetics,
treatment, and coordination of care for veterans who have an
amputation of any functional part of the body; and
(B) to provide information and supportive services to all
facilities of the Department of Veterans Affairs concerning
the care and treatment of veterans with a prosthetic device.
(3) Designation.--Each center established pursuant to
paragraph (1) shall be known as an ``Amputation and
Prosthetic Rehabilitation Center'' (in this section referred
to as a ``Center'').
(b) Geographic Distribution.--In identifying appropriate
facilities for the location of the Centers established
pursuant to subsection (a), the Secretary shall ensure, to
the maximum extent practicable, that such Centers are
geographically located so as to be accessible to as many
veterans as possible in the United States.
(c) Staff and Resources.--Each Center shall include the
following:
(1) A modern, well-equipped, and appropriately certified
laboratory facility capable of providing state-of-the-art and
complex prosthetic devices to all veterans with an
amputation, including veterans with an amputation incurred in
Operation Iraqi Freedom or Operation Enduring Freedom.
(2) Certified and experienced prosthetists, including
prosthetists with certifications in new fabrication
techniques.
(3) An accredited Physical Medicine and Rehabilitation
(PM&R) service with staff who are well-trained in current
prosthetic services and emerging trends for treatment of
amputations.
(4) A modern gait laboratory, permanently located within
such Center.
(d) No Duplication of Services of Polytrauma Centers.--
(1) In general.--The Secretary shall, to the extent
practicable, ensure that the services provided by the Centers
established pursuant to subsection (a) do not duplicate the
services provided by the polytrauma centers of the Department
of Veterans Affairs designated as Tier I or Tier II
Polytrauma centers.
(2) Construction.--Paragraph (1) shall not be construed to
prohibit the location of a Center so as to facilitate the
ready support of a polytrauma center, referred to in that
paragraph.

Mr. AKAKA. Mr. President, today I rise with my good friend and
colleague, Senator Craig from Idaho, to introduce legislation to
establish at least five Amputation and Prosthetic Rehabilitation
Centers within the Department of Veterans Affairs (VA). Through
progressive and specialized expertise in the area of prosthetics and
rehabilitation, the visible reminders of the sacrifices made by our
wounded warriors will become less evident and hopefully less of a
factor in their everyday lives.
Specialty care for amputees has become an even more pressing concern
because of the types of injuries our brave soldiers have sustained in
Operation Iraqi Freedom and Operation Enduring Freedom. Many would
agree that this is not the same kind of war that other generations of
veterans have fought. The use of body armor and improvements in
battlefield medicine have saved more lives, but in many cases have left
our soldiers with traumatic injuries. Servicemembers in the current
conflicts have suffered from twice as many amputations as those who
fought in past wars. Unfortunately, the incidence of multiple
amputations from bomb blasts is higher in this war.
The VA health care system has only begun to see the men and women
from Operation Enduring Freedom and Operation Iraqi Freedom who are in
need of long-term rehabilitation. Indeed, these veterans are young and
plan on being active for a long time. VA is well poised to take on this
challenge. An ongoing study at the Providence VA hospital is looking at
``biohybrid'' limbs which are implanted into tissue and later become an
integral part of the patient.
We cannot, however, forget about the war our current veterans
continue to fight everyday against time and their health. Veterans
struggling with diseases such as diabetes are often faced with
amputation. The establishment of the Amputation and Prosthetic
Rehabilitation Centers will provide advanced care to those who have
endured the loss of a limb, which will help them regain full function
and a better quality of life.
The centers will provide VA regional clinical facilities with cutting
edge expertise in prosthetics, rehabilitation with the use of
prosthetics, treatment, and coordination of care for a veteran with an
amputation. By placing these centers in locations with the highest
concentrations of veterans, those in need will truly benefit from these
specialized services.

[[Page S4059]]

VA has always been a leader in progressive treatment and care. These
centers will maintain VA as a leader by providing the tools and staff
necessary to do so. The legislation requires that the centers must have
a well-equipped and appropriately certified laboratory facility
necessary to provide the most state-of-the-art and complex prosthetic
devices.
With experienced prosthetists trained and certified in the area of
new techniques, an accredited Physical Medicine and Rehabilitation
service with trained staff in the most current prosthetic services, and
a permanent modern gait laboratory located within each center, veterans
are sure to receive the most advanced treatment and care.
A critical part of this legislation is that these centers will serve
as resources for smaller VA hospitals which may not have all of the
expertise but will certainly have the patients.
As Ranking Member of the Committee on Veterans' Affairs, I urge my
colleagues to join Chairman Craig and myself in support of providing
treatment to those in need so they can stand on their own.
______

By Mr. BINGAMAN (for himself, Mr. Bayh, Mr. Coleman, Mr.
Lieberman, Mr. Chafee, Ms. Cantwell, Ms. Collins, Mr. Salazar,
Mr. Kerry, Mrs. Clinton, and Mr. Nelson of Florida):
S. 2747. A bill to enhance energy efficiency and conserve oil and
natural gas, and for other purposes; to the Committee on Energy and
Natural Resources.
______

By Mr. BINGAMAN (for himself, Mr. Bayh, Mr. Coleman, Mr.
Lieberman, Mr. Lugar, Ms. Cantwell, Ms. Collins, Mr. Salazar,
Mr. Kerry, Mrs. Clinton, and Mr. Nelson of Florida):
S. 2748. A bill to amend the Internal Revenue Code of 1986 to provide
tax incentives to promote energy production and conservation, and for
other purposes; to the Committee on Finance.
Mr. BINGAMAN. Mr. President. I rise today to introduce two energy
bills: the Enhanced Energy Security Act of 2006; and the Enhanced
Energy Security Tax Incentives Act of 2006.
All of us know that we face a challenging energy situation in this
country in both the short term and the long term. The world market
price of crude oil is above $72 per barrel. We have seen gasoline
prices above $3 per gallon in many parts of the country. In my home
State of New Mexico, these prices are a real hardship to the many New
Mexicans who are forced to drive long-distances to work, without the
prospect of car pooling or public transportation. The steep rise in the
price of gas at the pump is putting a nearly unbearable squeeze on
family budgets in New Mexico and all across America.
So, we have a major national problem and not much time left in this
Congress to make progress on it. The question is, what can we do in the
remaining weeks of this Congress that would be bipartisan, that could
be signed into law by the President, and that would hold out the
prospect of eventually helping to moderate the price of gasoline at the
pump?
I have thought for some time that the most effective way of
approaching the real issues driving the high prices that consumers find
unacceptable is through a four-part strategy focusing on 1. increasing
consumer protection, 2. increasing supply, 3. increasing efficiency of
oil and gas use, and 4. providing incentives for forward-looking energy
choices in the market.
A fair number of bills have already been introduced that deal with
the first two parts of that strategy. What has been lacking is a
bipartisan path forward to consensus on increasing energy efficiency
and on stimulating forward-looking investments in energy efficiency and
renewable energy technologies.
Today's bills are intended to fill that gap. Each of these two bills
is designed to go to a single committee with jurisdiction over most, if
not all, of its contents.
The first bill, the Enhanced Energy Security Act of 2006, is
comprised of provisions that generally fall in the jurisdiction of the
Committee on Energy and Natural Resources.
The second bill, the Enhanced Energy Security Tax Incentives Act of
2006, is comprised solely of provisions in the jurisdiction of the
Senate Finance Committee.
Some of the provisions in these two bills have been drawn from other
bills, including S. 2025, the Vehicles and Fuels Choices for American
Security Act, which was introduced last year by Senators Bayh, Coleman,
Lieberman and Brownback along with others. I appreciate their
leadership and their support for this effort. What is newsworthy here
today is that we are putting a large body of good policy ideas in a
form that will facilitate committee action here in the Senate.
Relying on the Energy and the Finance committees to do the necessary
homework to come up with bipartisan solutions to our energy challenges
is the best way for us to make progress in this Congress. Both
committees have leaders, in Senators Domenici and Senator Grassley, who
demonstrated their commitment to bipartisan engagement on energy issues
during the enactment of last year's Energy Policy Act of 2005. I am
looking forward to working with both Committee Chairs to move forward
with the ideas in these bills on a bipartisan basis.
The basic idea behind the first bill, which is coming to the Energy
Committee, is that if we want, in the long term, to moderate the prices
that consumers are seeing in today's markets from oil and natural gas,
we need to focus more strongly on increasing energy efficiency, and
particularly increased efficiency of our use of oil and natural gas.
That's an area where we were unable to do much in the last Energy
bill. But, there is a lot that needs to be done.
Among the most important provisions we are taking from S. 2025 and
putting in the new bill, is an emphasis on an expanded plan for
economy-wide oil savings. The President is to come up with a plan that
will cut our oil use, from projected levels, by 2.5 million barrels of
oil per day by 2016, 7 million barrels of oil per day by 2026, and 10
million barrels of oil per day by 2031.
The new bill, also like S. 2025, includes a number of initiatives
designed to reduce our nearly total reliance on petroleum products in
the transportation sector. These include: programs that will speed the
development of new vehicle technologies such as ``plug-in hybrids'' and
the use of advanced light weight materials in vehicles; expanding the
authority of the Secretary of Energy to provide loan guarantees and
competitive grants to auto manufacturers and parts manufacturers for
converting existing facilities or building new facilities for
manufacturing fuel-efficient vehicles and vehicle components;
increasing the availability of alternative fuels, such as E85, across
the country by providing funding for alternative fuel fueling stations;
and providing incentives for the production of cellulosic ethanol--
including loan guarantees and a reverse auction for production
payments.
The new bill will also include a number of provisions aimed at
relieving demand and price pressure on natural gas. These include:
strengthening the Federal purchase requirement for renewable energy;
the 10 percent renewable portfolio standard that has passed the full
Senate 3 times in the past 4 years; encouraging States to strengthen
their programs on demand-side management; and better educating
consumers about energy efficiency measures that they can take.
The basic idea behind the second bill, the Enhanced Energy Security
Tax Incentives Act of 2006, is to create fiscal incentives that help
forward-looking energy technologies to enter the market. As is often
the case with technological advancements, many of the energy technology
alternatives that are poised to enter the marketplace will not be able
to successfully compete without some transitional help.
The first set of provisions in the bill extends, through 2010, the
various alternative fuel, efficiency and renewable energy tax
provisions we passed last year. These existing tax incentives will work
best if investors, manufacturers and consumers know that the government
is committed and that they can plan for these tax incentives being
there for a few years. The tax provisions we are extending include
provisions to encourage the purchase of energy efficient housing and
office materials, as well as the generation of electricity from
alternative sources such

[[Page S4060]]

as biomass, fuel cells, the wind and the sun. It will be nearly
impossible for Congress to create a comprehensive national energy
policy if important energy tax incentives such as these are in a
perpetual state of uncertainty over the long term. If we extend these
tax incentives through 2010 now, we will see a great increase in their
usefulness in an industry that needs a few years lead-time to plan and
build major energy projects.
The second set of provisions in the new tax bill will create new
incentives to encourage our country to move towards more fuel efficient
vehicles, such as hybrids. It accomplishes this in several ways.
First, as the President has suggested, we lift the current cap on the
number of vehicles per manufacturer that are eligible for a consumer
tax credit. This proposal was also part of the package unveiled last
week by Senators Domenici and Frist. Under the bill I will be
introducing, this modified version of the tax credit will be also
extended until 2010.
Next, we create a 35 percent tax credit for manufacturers on the
expenses involved in retrofitting or setting up manufacturing
facilities to make these fuel efficient vehicles.
To encourage businesses with fleets of vehicles, we create a 15
percent tax credit for the purchase of more than 10 fuel efficient
vehicles in a year.
In order to encourage alternative fueling stations, we expand the
current 30 percent tax credit to 50 percent and allow it to be
operative until the end of 2010.
Finally, we create a 25 percent tax credit for the purchase of
qualified idling reduction equipment so that vehicles currently on the
road are not running their engines any more than necessary.
While this is a rather large expansion of the currently available tax
incentives for fuel efficient vehicles, it is what is going to be
necessary to get our vehicle policy headed in the right direction.
The legislation also contains new provisions to encourage the
purchase of fuel efficient technologies for residences and businesses.
It creates a 10 percent tax credit for the purchase of energy efficient
combined heat and power units as well as provides for three year
depreciation on the purchase price for ``smart meters.'' These
provisions have broad support in the Senate but were regrettably
dropped in last year's conference on the Energy Bill. I think is
important that we look at these provisions anew.
A question that usually arises when you talk about expanding tax
incentives is whether they are going to be paid for. Many of us here in
the Senate are worried about the deficit, so the tax bill that I am
describing contains several revenue offsets, such as the provisions
contained in last year's reconciliation tax bill that get rid of tax
benefits in the oil and gas industry that are unnecessary and a waste
of taxpayer dollars. This legislation would also close the SUV tax
loophole that provides a windfall for the purchasers of inefficient
cars at a time when the nation needs to be discouraging this activity.
I look forward to working with the Chairman and Ranking Member of the
Finance Committee on both these new tax incentives but also on ways of
paying for them, so that we are acting in a way that is fiscally
responsible.
I ask unanimous consent that the text of both bills be printed in the
Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 2747

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Enhanced
Energy Security Act of 2006''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

TITLE I--NATIONAL OIL SAVINGS PLAN AND REQUIREMENTS

Sec. 101. Oil savings target and action plan.
Sec. 102. Standards and requirements.
Sec. 103. Initial evaluation.
Sec. 104. Review and update of action plan.
Sec. 105. Baseline and analysis requirements.

TITLE II--FEDERAL PROGRAMS FOR THE CONSERVATION OF OIL

Sec. 201. Federal fleet conservation requirements.
Sec. 202. Assistance for State programs to retire fuel-inefficient
motor vehicles.
Sec. 203. Assistance to States to reduce school bus idling.
Sec. 204. Near-term vehicle technology program.
Sec. 205. Lightweight materials research and development.
Sec. 206. Loan guarantees for fuel-efficient automobile manufacturer
and suppliers.
Sec. 207. Funding for alternative infrastructure for the distribution
of transportation fuels.
Sec. 208. Deployment of new technologies to reduce oil use in
transportation.
Sec. 209. Production incentives for cellulosic biofuels.

TITLE III--FEDERAL PROGRAMS FOR THE CONSERVATION OF NATURAL GAS

Sec. 301. Renewable portfolio standard.
Sec. 302. Federal requirement to purchase electricity generated by
renewable energy.

TITLE IV--GENERAL ENERGY EFFICIENCY PROGRAMS

Sec. 401. Energy savings performance contracts.
Sec. 402. Deployment of new technologies for high-efficiency consumer
products.
Sec. 403. National media campaign to decrease oil and natural gas
consumption.
Sec. 404. Energy efficiency resource programs.

TITLE V--ASSISTANCE TO ENERGY CONSUMERS

Sec. 501. Energy emergency disaster relief loans to small business and
agricultural producers.
Sec. 502. Efficient and safe equipment replacement program for
weatherization purposes.

SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term ``Secretary'' means the Secretary of
Energy.

TITLE I--NATIONAL OIL SAVINGS PLAN AND REQUIREMENTS

SEC. 101. OIL SAVINGS TARGET AND ACTION PLAN.

Not later than 270 days after the date of enactment of this
Act, the Director of the Office of Management and Budget
(referred to in this title as the ``Director'') shall publish
in the Federal Register an action plan consisting of--
(1) a list of requirements proposed or to be proposed
pursuant to section 102 that are authorized to be issued
under law in effect on the date of enactment of this Act, and
this Act, that will be sufficient, when taken together, to
save from the baseline determined under section 105--
(A) 2,500,000 barrels of oil per day on average during
calendar year 2016;
(B) 7,000,000 barrels of oil per day on average during
calendar year 2026; and
(C) 10,000,000 barrels per day on average during calendar
year 2031; and
(2) a Federal Government-wide analysis of--
(A) the expected oil savings from the baseline to be
accomplished by each requirement; and
(B) whether all such requirements, taken together, will
achieve the oil savings specified in this section.

SEC. 102. STANDARDS AND REQUIREMENTS.

(a) In General.--On or before the date of publication of
the action plan under section 101, the Secretary of Energy,
the Secretary of Transportation, the Secretary of Defense,
the Secretary of Agriculture, the Administrator of the
Environmental Protection Agency, and the head of any other
agency the President determines appropriate shall each
propose, or issue a notice of intent to propose, regulations
establishing each standard or other requirement listed in the
action plan that is under the jurisdiction of the respective
agency using authorities described in subsection (b).
(b) Authorities.--The head of each agency described in
subsection (a) shall use to carry out this section--
(1) any authority in existence on the date of enactment of
this Act (including regulations); and
(2) any new authority provided under this Act (including an
amendment made by this Act).
(c) Final Regulations.--Not later than 18 months after the
date of enactment of this Act, the head of each agency
described in subsection (a) shall promulgate final versions
of the regulations required under this section.
(d) Agency Analyses.--Each proposed and final regulation
promulgated under this section shall--
(1) be designed to achieve at least the oil savings
resulting from the regulation under the action plan published
under section 101; and
(2) be accompanied by an analysis by the applicable agency
describing the manner in which the regulation will promote
the achievement of the oil savings from the baseline
determined under section 105.

SEC. 103. INITIAL EVALUATION.

(a) In General.--Not later than 2 years after the date of
enactment of this Act, the Director shall publish in the
Federal Register a Federal Government-wide analysis of the
oil savings achieved from the baseline established under
section 105.

[[Page S4061]]

(b) Inadequate Oil Savings.--If the oil savings are less
than the targets established under section 101,
simultaneously with the analysis required under subsection
(a)--
(1) the Director shall publish a revised action plan that
is adequate to achieve the targets; and
(2) the Secretary of Energy, the Secretary of
Transportation, and the Administrator shall propose new or
revised regulations under subsections (a), (b), and (c),
respectively, of section 102.
(c) Final Regulations.--Not later than 180 days after the
date on which regulations are proposed under subsection
(b)(2), the Secretary of Energy, the Secretary of
Transportation, and the Administrator shall promulgate final
versions of those regulations.

SEC. 104. REVIEW AND UPDATE OF ACTION PLAN.

(a) Review.--Not later than January 1, 2011, and every 3
years thereafter, the Director shall submit to Congress, and
publish, a report that--
(1) evaluates the progress achieved in implementing the oil
savings targets established under section 101;
(2) analyzes the expected oil savings under the standards
and requirements established under this Act and the
amendments made by this Act; and
(3)(A) analyzes the potential to achieve oil savings that
are in addition to the savings required by section 101; and
(B) if the President determines that it is in the national
interest, establishes a higher oil savings target for
calendar year 2017 or any subsequent calendar year.
(b) Inadequate Oil Savings.--If the oil savings are less
than the targets established under section 101,
simultaneously with the report required under subsection
(a)--
(1) the Director shall publish a revised action plan that
is adequate to achieve the targets; and
(2) the Secretary of Energy, the Secretary of
Transportation, and the Administrator shall propose new or
revised regulations under subsections (a), (b), and (c),
respectively, of section 102.
(c) Final Regulations.--Not later than 180 days after the
date on which regulations are proposed under subsection
(b)(2), the Secretary of Energy, the Secretary of
Transportation, and the Administrator shall promulgate final
versions of those regulations.

SEC. 105. BASELINE AND ANALYSIS REQUIREMENTS.

In performing the analyses and promulgating proposed or
final regulations to establish standards and other
requirements necessary to achieve the oil savings required by
this title, the Secretary of Energy, the Secretary of
Transportation, the Secretary of Defense, the Secretary of
Agriculture, the Administrator of the Environmental
Protection Agency, and the head of any other agency the
President determines to be appropriate shall--
(1) determine oil savings as the projected reduction in oil
consumption from the baseline established by the reference
case contained in the report of the Energy Information
Administration entitled ``Annual Energy Outlook 2005'';
(2) determine the oil savings projections required on an
annual basis for each of calendar years 2009 through 2026;
and
(3) account for any overlap among the standards and other
requirements to ensure that the projected oil savings from
all the promulgated standards and requirements, taken
together, are as accurate as practicable.

TITLE II--FEDERAL PROGRAMS FOR THE CONSERVATION OF OIL

SEC. 201. FEDERAL FLEET CONSERVATION REQUIREMENTS.

(a) In General.--Part J of title IV of the Energy Policy
and Conservation Act (42 U.S.C. 6374 et seq.) is amended by
adding at the end the following:

``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.

``(a) Mandatory Reduction in Petroleum Consumption.--
``(1) In general.--The Secretary shall issue regulations
for Federal fleets subject to section 400AA requiring that
not later than October 1, 2009, each Federal agency achieve
at least a 20 percent reduction in petroleum consumption, as
calculated from the baseline established by the Secretary for
fiscal year 1999.
``(2) Plan.--
``(A) Requirement.--The regulations shall require each
Federal agency to develop a plan to meet the required
petroleum reduction level.
``(B) Measures.--The plan may allow an agency to meet the
required petroleum reduction level through--
``(i) the use of alternative fuels;
``(ii) the acquisition of vehicles with higher fuel
economy, including hybrid vehicles;
``(iii) the substitution of cars for light trucks;
``(iv) an increase in vehicle load factors;
``(v) a decrease in vehicle miles traveled;
``(vi) a decrease in fleet size; and
``(vii) other measures.
``(C) Replacement tires.--The regulations shall include a
requirement that each Federal agency purchase energy-
efficient replacement tires for the respective fleet vehicles
of the agency.
``(b) Federal Employee Incentive Programs for Reducing
Petroleum Consumption.--
``(1) In general.--Each Federal agency shall actively
promote incentive programs that encourage Federal employees
and contractors to reduce petroleum through the use of
practices such as--
``(A) telecommuting;
``(B) public transit;
``(C) carpooling; and
``(D) bicycling.
``(2) Monitoring and support for incentive programs.--The
Administrator of the General Services Administration, the
Director of the Office of Personnel Management, and the
Secretary of the Department of Energy shall monitor and
provide appropriate support to agency programs described in
paragraph (1).''.
(b) Table of Contents Amendment.--The table of contents of
the Energy Policy and Conservation Act (42 U.S.C. prec. 6201)
is amended by adding at the end of the items relating to part
J of title III the following:

``Sec. 400FF. Federal fleet conservation requirements.''.

SEC. 202. ASSISTANCE FOR STATE PROGRAMS TO RETIRE FUEL-
INEFFICIENT MOTOR VEHICLES.

(a) Definitions.--In this section:
(1) Fuel-efficient automobile.--The term ``fuel-efficient
automobile'' means a passenger automobile or a light-duty
truck that has a fuel economy rating that is 40 percent
greater than the average fuel economy standard prescribed
pursuant to section 32902 of title 49, United States Code, or
other law, applicable to the passenger automobile or light-
duty truck.
(2) Fuel-inefficient automobiles.--The term ``fuel-
inefficient automobile'' means a passenger automobile or a
light-duty truck manufactured in a model year more than 15
years before the fiscal year in which appropriations are made
under subsection (f) that, at the time of manufacture, had a
fuel economy rating that was equal to or less than [20? ]
miles per gallon.
(3) Light-duty truck.--
(A) In general.--The term ``light-duty truck'' means an
automobile that is not a passenger automobile.
(B) Inclusions.--The term ``light-duty truck'' includes a
pickup truck, a van, or a four-wheel-drive general utility
vehicle, as those terms are defined in section 600.002-85 of
title 40, Code of Federal Regulations.
(4) State.--The term ``State'' means any of the several
States and the District of Columbia.
(b) Establishment.--The Secretary shall establish a
program, to be known as the ``National Motor Vehicle
Efficiency Improvement Program,'' under which the Secretary
shall provide grants to States to operate voluntary programs
to offer owners of fuel inefficient automobiles financial
incentives to replace the automobiles with fuel efficient
automobiles.
(c) Eligibility Criteria.--The Secretary shall approve a
State plan and provide the funds made available under
subsection (f), if the State plan--
(1) except as provided in paragraph (8), requires that all
passenger automobiles and light-duty trucks turned in be
scrapped, after allowing a period of time for the recovery of
spare parts;
(2) requires that all passenger automobiles and light-duty
trucks turned in be registered in the State in order to be
eligible;
(3) requires that all passenger automobiles and light-duty
trucks turned in be operational at the time that the
passenger automobiles and light-duty trucks are turned in;
(4) restricts automobile owners (except not-for-profit
organizations) from turning in more than 1 passenger
automobile and 1 light-duty truck during a 1-year period;
(5) provides an appropriate payment to the person recycling
the scrapped passenger automobile or light-duty truck for
each turned-in passenger automobile or light-duty truck;
(6) subject to subsection (d)(2), provides a minimum
payment to the automobile owner for each passenger automobile
and light-duty truck turned in; and
(7) provides appropriate exceptions to the scrappage
requirement for vehicles that qualify as antique cars under
State law.
(d) State Plan.--
(1) In general.--To be eligible to receive funds under the
program, the Governor of a State shall submit to the
Secretary a plan to carry out a program under this section in
that State.
(2) Additional state credit.--In addition to the payment
under subsection (c)(6), the State plan may provide a credit
that may be redeemed by the owner of the replaced fuel-
inefficient automobile at the time of purchase of the new
fuel-efficient automobile.
(e) Allocation Formula.--The amounts appropriated pursuant
to subsection (f) shall be allocated among the States on the
basis of the number of registered motor vehicles in each
State at the time that the Secretary needs to compute shares
under this subsection.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary such sums as are
necessary to carry out this section, to remain available
until expended.

SEC. 203. ASSISTANCE TO STATES TO REDUCE SCHOOL BUS IDLING.

(a) Statement of Policy.--Congress encourages each local
educational agency (as defined in section 9101(26) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801(26))) that receives Federal funds

[[Page S4062]]

under the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6301 et seq.) to develop a policy to reduce the
incidence of school bus idling at schools while picking up
and unloading students.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy, working in
coordination with the Secretary of Education, $5,000,000 for
each of fiscal years 2007 through 2012 for use in educating
States and local education agencies about--
(1) benefits of reducing school bus idling; and
(2) ways in which school bus idling may be reduced.

SEC. 204. NEAR-TERM VEHICLE TECHNOLOGY PROGRAM.

(a) Purposes.--The purposes of this section are--
(1) to enable and promote, in partnership with industry,
comprehensive development, demonstration, and
commercialization of a wide range of electric drive
components, systems, and vehicles using diverse electric
drive transportation technologies;
(2) to make critical public investments to help private
industry, institutions of higher education, National
Laboratories, and research institutions to expand innovation,
industrial growth, and jobs in the United States;
(3) to expand the availability of the existing electric
infrastructure for fueling light duty transportation and
other on-road and nonroad vehicles that are using petroleum
and are mobile sources of emissions--
(A) including the more than 3,000,000 reported units (such
as electric forklifts, golf carts, and similar nonroad
vehicles) in use on the date of enactment of this Act; and
(B) with the goal of enhancing the energy security of the
United States, reduce dependence on imported oil, and reduce
emissions through the expansion of grid supported mobility;
(4) to accelerate the widespread commercialization of all
types of electric drive vehicle technology into all sizes and
applications of vehicles, including commercialization of
plug-in hybrid electric vehicles and plug-in hybrid fuel cell
vehicles; and
(5) to improve the energy efficiency of and reduce the
petroleum use in transportation.
(b) Definitions.--In this section:
(1) Battery.--The term ``battery'' means an energy storage
device used in an on-road or nonroad vehicle powered in whole
or in part using an off-board or on-board source of
electricity.
(2) Electric drive transportation technology.--The term
``electric drive transportation technology'' means--
(A) vehicles that use an electric motor for all or part of
their motive power and that may or may not use off-board
electricity, including battery electric vehicles, fuel cell
vehicles, engine dominant hybrid electric vehicles, plug-in
hybrid electric vehicles, plug-in hybrid fuel cell vehicles,
and electric rail; or
(B) equipment relating to transportation or mobile sources
of air pollution that use an electric motor to replace an
internal combustion engine for all or part of the work of the
equipment, including corded electric equipment linked to
transportation or mobile sources of air pollution.
(3) Engine dominant hybrid electric vehicle.--The term
``engine dominant hybrid electric vehicle'' means an on-road
or nonroad vehicle that--
(A) is propelled by an internal combustion engine or heat
engine using--
(i) any combustible fuel;
(ii) an on-board, rechargeable storage device; and
(B) has no means of using an off-board source of
electricity.
(4) Fuel cell vehicle.--The term ``fuel cell vehicle''
means an on-road or nonroad vehicle that uses a fuel cell (as
defined in section 3 of the Spark M. Matsunaga Hydrogen
Research, Development, and Demonstration Act of 1990).
(5) Nonroad vehicle.--The term ``nonroad vehicle'' has the
meaning given the term in section 216 of the Clean Air Act
(42 U.S.C. 7550).
(6) Plug-in hybrid electric vehicle.--The term ``plug-in
hybrid electric vehicle'' means an on-road or nonroad vehicle
that is propelled by an internal combustion engine or heat
engine using--
(A) any combustible fuel;
(B) an on-board, rechargeable storage device; and
(C) a means of using an off-board source of electricity.
(7) Plug-in hybrid fuel cell vehicle.--The term ``plug-in
hybrid fuel cell vehicle'' means a fuel cell vehicle with a
battery powered by an off-board source of electricity.
(c) Program.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application for electric drive transportation technology,
including--
(1) high capacity, high efficiency batteries;
(2) high efficiency on-board and off-board charging
components;
(3) high power drive train systems for passenger and
commercial vehicles and for nonroad equipment;
(4) control system development and power train development
and integration for plug-in hybrid electric vehicles, plug-in
hybrid fuel cell vehicles, and engine dominant hybrid
electric vehicles, including--
(A) development of efficient cooling systems;
(B) analysis and development of control systems that
minimize the emissions profile when clean diesel engines are
part of a plug-in hybrid drive system; and
(C) development of different control systems that optimize
for different goals, including--
(i) battery life;
(ii) reduction of petroleum consumption; and
(iii) green house gas reduction;
(5) nanomaterial technology applied to both battery and
fuel cell systems;
(6) large-scale demonstrations, testing, and evaluation of
plug-in hybrid electric vehicles in different applications
with different batteries and control systems, including--
(A) military applications;
(B) mass market passenger and light-duty truck
applications;
(C) private fleet applications; and
(D) medium- and heavy-duty applications;
(7) a nationwide education strategy for electric drive
transportation technologies providing secondary and high
school teaching materials and support for university
education focused on electric drive system and component
engineering;
(8) development, in consultation with the Administrator of
the Environmental Protection Agency, of procedures for
testing and certification of criteria pollutants, fuel
economy, and petroleum use for light-, med-
ium-, and heavy-duty vehicle applications, including
consideration of--
(A) the vehicle and fuel as a system, not just an engine;
and
(B) nightly off-board charging; and
(9) advancement of battery and corded electric
transportation technologies in mobile source applications
by--
(A) improvement in battery, drive train, and control system
technologies; and
(B) working with industry and the Administrator of the
Environmental Protection Agency to--
(i) understand and inventory markets; and
(ii) identify and implement methods of removing barriers
for existing and emerging applications.
(d) Goals.--The goals of the electric drive transportation
technology program established under subsection (c) shall be
to develop, in partnership with industry and institutions of
higher education, projects that focus on--
(1) innovative electric drive technology developed in the
United States;
(2) growth of employment in the United States in electric
drive design and manufacturing;
(3) validation of the plug-in hybrid potential through
fleet demonstrations; and
(4) acceleration of fuel cell commercialization through
comprehensive development and commercialization of the
electric drive technology systems that are the foundational
technology of the fuel cell vehicle system.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $300,000,000 for
each of fiscal years 2007 through 2012.

SEC. 205. LIGHTWEIGHT MATERIALS RESEARCH AND DEVELOPMENT.

(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary shall establish a
research and development program to determine ways in which--
(1) the weight of vehicles may be reduced to improve fuel
efficiency without compromising passenger safety; and
(2) the cost of lightweight materials (such as steel alloys
and carbon fibers) required for the construction of lighter-
weight vehicles may be reduced.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $60,000,000 for
each of fiscal years 2007 through 2012.

SEC. 206. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE
MANUFACTURER AND SUPPLIERS.

(a) In General.--Section 712(a) of the Energy Policy Act of
2005 (42 U.S.C. 16062(a)) is amended in the second sentence
by striking ``grants to automobile manufacturers'' and
inserting ``grants and loan guarantees under section 1703 to
automobile manufacturers and suppliers''.
(b) Conforming Amendment.--Section 1703(b) of the Energy
Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by
striking paragraph (8) and inserting the following:
``(8) Production facilities for the manufacture of fuel-
efficient vehicles or parts of such vehicles, including
hybrid and advanced diesel vehicles.''.

SEC. 207. FUNDING FOR ALTERNATIVE INFRASTRUCTURE FOR THE
DISTRIBUTION OF TRANSPORTATION FUELS.

(a) In General.--There is established in the Treasury of
the United States a trust fund, to be known as the
``Alternative Fueling Infrastructure Trust Fund'' (referred
to in this section as the ``Trust Fund''), consisting of such
amounts as are deposited into the Trust Fund under subsection
(b) and any interest earned on investment of amounts in the
Trust Fund.
(b) Penalties.--The Secretary of Transportation shall remit
90 percent of the amount collected in civil penalties under
section 32912 of title 49, United States Code, to the Trust
Fund.
(c) Grant Program.--
(1) In general.--The Secretary of Energy shall obligate
such sums as are available in the Trust Fund to establish a
grant program to increase the number of locations at which
consumers may purchase alternative transportation fuels.
(2) Administration.--

[[Page S4063]]

(A) In general.--The Secretary may award grants under this
subsection to--
(i) individual fueling stations; and
(ii) corporations (including nonprofit corporations) with
demonstrated experience in the administration of grant
funding for the purpose of alternative fueling
infrastructure.
(B) Maximum amount of grants.--A grant provided under this
subsection may not exceed--
(i) $150,000 for each site of an individual fueling
station; and
(ii) $500,000 for each corporation (including a nonprofit
corporation).
(C) Prioritization.--The Secretary shall prioritize the
provision of grants under this subsection to recognized
nonprofit corporations that have proven experience and
demonstrated technical expertise in the establishment of
alternative fueling infrastructure, as determined by the
Secretary.
(D) Administrative expenses.--Not more than 10 percent of
the funds provided in any grant may be used by the recipient
of the grant to pay administrative expenses.
(E) Number of vehicles.--In providing grants under this
subsection, the Secretary shall consider the number of
vehicles in service capable of using a specific type of
alternative fuel.
(F) Match.--Grant recipients shall provide a non-Federal
match of not less than $1 for every $3 of grant funds
received under this subsection.
(G) Locations.--Each grant recipient shall select the
locations for each alternative fuel station to be constructed
with grant funds received under this subsection on a formal,
open, and competitive basis.
(H) Use of information in selection of recipients.--In
selecting grant recipients under this subsection, the
Secretary may consider--
(i) public demand for each alternative fuel in a particular
county based on State registration records indicating the
number of vehicles that may be operated using alternative
fuel; and
(ii) the opportunity to create or expand corridors of
alternative fuel stations along interstates or highways.
(3) Use of grant funds.--Grant funds received under this
subsection may be used to--
(A) construct new facilities to dispense alternative fuels;
(B) purchase equipment to upgrade, expand, or otherwise
improve existing alternative fuel facilities; or
(C) purchase equipment or pay for specific turnkey fueling
services by alternative fuel providers.
(4) Facilities.--Facilities constructed or upgraded with
grant funds under this subsection shall--
(A) provide alternative fuel available to the public for a
period not less than 4 years;
(B) establish a marketing plan to advance the sale and use
of alternative fuels;
(C) prominently display the price of alternative fuel on
the marquee and in the station;
(D) provide point of sale materials on alternative fuel;
(E) clearly label the dispenser with consistent materials;
(F) price the alternative fuel at the same margin that is
received for unleaded gasoline; and
(G) support and use all available tax incentives to reduce
the cost of the alternative fuel to the lowest practicable
retail price.
(5) Opening of stations.--
(A) In general.--Not later than the date on which each
alternative fuel station begins to offer alternative fuel to
the public, the grant recipient that used grant funds to
construct the station shall notify the Secretary of the
opening.
(B) Website.--The Secretary shall add each new alternative
fuel station to the alternative fuel station locator on the
website of the Department of Energy when the Secretary
receives notification under this subsection.
(6) Reports.--Not later than 180 days after the receipt of
a grant award under this subsection, and every 180 days
thereafter, each grant recipient shall submit a report to the
Secretary that describes--
(A) the status of each alternative fuel station constructed
with grant funds received under this subsection;
(B) the quantity of alternative fuel dispensed at each
station during the preceding 180-day period; and
(C) the average price per gallon of the alternative fuel
sold at each station during the preceding 180-day period.

SEC. 208. DEPLOYMENT OF NEW TECHNOLOGIES TO REDUCE OIL USE IN
TRANSPORTATION.

(a) Fuel From Cellulosic Biomass.--
(1) In general.--The Secretary shall provide deployment
incentives under this subsection to encourage a variety of
projects to produce transportation fuel from cellulosic
biomass, relying on different feedstocks in different regions
of the United States.
(2) Project eligibility.--Incentives under this subsection
shall be provided on a competitive basis to projects that
produce fuel that--
(A) meet United States fuel and emission specifications;
(B) help diversify domestic transportation energy supplies;
and
(C) improve or maintain air, water, soil, and habitat
quality.
(3) Incentives.--Incentives under this subsection may
consist of--
(A) loan guarantees under section 1510 of the Energy Policy
Act of 2005 (42 U.S.C. 16501), subject to section 1702 of
that Act (22 U.S.C. 16512), for the construction of
production facilities and supporting infrastructure; or
(B) production payments through a reverse auction in
accordance with paragraph (4).
(4) Reverse auction.--
(A) In general.--In providing incentives under this
subsection, the Secretary shall--
(i) issue regulations under which producers of fuel from
cellulosic biomass may bid for production payments under
paragraph (3)(B); and
(ii) solicit bids from producers of different classes of
transportation fuel, as the Secretary determines to be
appropriate.
(B) Requirement.--The rules under subparagraph (A) shall
require that incentives be provided to the producers that
submit the lowest bid (in terms of cents per gallon) for each
class of transportation fuel from which the Secretary
solicits a bid.
(b) Advanced Technology Vehicles Manufacturing Incentive
Program.--
(1) Definitions.--In this subsection:
(A) Adjusted fuel economy.--The term ``adjusted fuel
economy'' means the average fuel economy of a manufacturer
for all light duty motor vehicles produced by the
manufacturer, adjusted such that the fuel economy of each
vehicle that qualifies for a credit shall be considered to be
equal to the average fuel economy for the weight class of the
vehicle for model year 2002.
(B) Advanced lean burn technology motor vehicle.--The term
``advanced lean burn technology motor vehicle'' means a
passenger automobile or a light truck with an internal
combustion engine that--
(i) is designed to operate primarily using more air than is
necessary for complete combustion of the fuel;
(ii) incorporates direct injection; and
(iii) achieves at least 125 percent of the city fuel
economy of vehicles in the same size class as the vehicle for
model year 2002.
(C) Advanced technology vehicle.--The term ``advanced
technology vehicle'' means a light duty motor vehicle that--
(i) is a hybrid motor vehicle or an advanced lean burn
technology motor vehicle; and
(ii) meets--

(I) the Bin 5 Tier II emission standard established in
regulations issued by the Administrator of the Environmental
Protection Agency under section 202(i) of the Clean Air Act
(42 U.S.C. 7521(i)), or a lower-numbered Bin emission
standard;
(II) any new emission standard for fine particulate matter
prescribed by the Administrator under that Act (42 U.S.C.
7401 et seq.); and
(III) at least 125 percent of the base year city fuel
economy for the weight class of the vehicle.

(D) Engineering integration costs.--The term ``engineering
integration costs'' includes the cost of engineering tasks
relating to--
(i) incorporating qualifying components into the design of
advanced technology vehicles; and
(ii) designing new tooling and equipment for production
facilities that produce qualifying components or advanced
technology vehicles.
(E) Hybrid motor vehicle.--The term ``hybrid motor
vehicle'' means a motor vehicle that draws propulsion energy
from onboard sources of stored energy that are--
(i) an internal combustion or heat engine using combustible
fuel; and
(ii) a rechargeable energy storage system.
(F) Qualifying components.--The term ``qualifying
components'' means components that the Secretary determines
to be--
(i) specially designed for advanced technology vehicles;
and
(ii) installed for the purpose of meeting the performance
requirements of advanced technology vehicles.
(2) Manufacturer facility conversion awards.--The Secretary
shall provide facility conversion funding awards under this
subsection to automobile manufacturers and component
suppliers to pay not more than 30 percent of the cost of--
(A) reequipping or expanding an existing manufacturing
facility in the United States to produce--
(i) qualifying advanced technology vehicles; or
(ii) qualifying components; and
(B) engineering integration performed in the United States
of qualifying vehicles and qualifying components.
(3) Period of availability.--An award under paragraph (2)
shall apply to--
(A) facilities and equipment placed in service before
December 30, 2017; and
(B) engineering integration costs incurred during the
period beginning on the date of enactment of this Act and
ending on December 30, 2017.
(4) Improvement.--The Secretary shall issue regulations
that require that, in order for an automobile manufacturer to
be eligible for an award under this subsection during a
particular year, the adjusted average fuel economy of the
manufacturer for light duty vehicles produced by the
manufacturer during the most recent year for which data are
available shall be not less than the average fuel economy for
all light duty motor vehicles of the manufacturer for model
year 2002.

[[Page S4064]]

SEC. 209. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

Section 942(f) of the Energy Policy Act of 2005 (42 U.S.C.
16251(f)) is amended by striking ``$250,000,000'' and
inserting ``$200,000,000 for each of fiscal years 2007
through 2011''.

TITLE III--FEDERAL PROGRAMS FOR THE CONSERVATION OF NATURAL GAS

SEC. 301. RENEWABLE PORTFOLIO STANDARD.

(a) In General.--Title VI of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601 et seq.) is amended by
adding at the end the following:

``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

``(a) Renewable Energy Requirement.--
``(1) In general.--Each electric utility that sells
electricity to electric consumers shall obtain a percentage
of the base amount of electricity it sells to electric
consumers in any calendar year from new renewable energy or
existing renewable energy. The percentage obtained in a
calendar year shall not be less than the amount specified in
the following table:
``Calendar year: Minimum annual percentage:
2008 through 2011..................................................2.55
2012 through 2015..................................................5.05
2016 through 2019..................................................7.55
2020 through 2030..................................................10.0

``(2) Means of compliance.--An electric utility shall meet
the requirements of paragraph (1) by--
``(A) generating electric energy using new renewable energy
or existing renewable energy;
``(B) purchasing electric energy generated by new renewable
energy or existing renewable energy;
``(C) purchasing renewable energy credits issued under
subsection (b); or
``(D) a combination of the foregoing.
``(b) Renewable Energy Credit Trading Program.--
``(1) In general.--Not later than January 1, 2007, the
Secretary shall establish a renewable energy credit trading
program to permit an electric utility that does not generate
or purchase enough electric energy from renewable energy to
meet its obligations under subsection (a)(1) to satisfy such
requirements by purchasing sufficient renewable energy
credits.
``(2) Administration.--As part of the program, the
Secretary shall--
``(A) issue renewable energy credits to generators of
electric energy from new renewable energy;
``(B) sell renewable energy credits to electric utilities
at the rate of 1.5 cents per kilowatt-hour (as adjusted for
inflation under subsection (g));
``(C) ensure that a kilowatt hour, including the associated
renewable energy credit, shall be used only once for purposes
of compliance with this section; and
``(D) allow double credits for generation from facilities
on Indian land, and triple credits for generation from small
renewable distributed generators (meaning those no larger
than 1 megawatt).
``(3) Duration.--Credits under paragraph (2)(A) may only be
used for compliance with this section for 3 years from the
date issued.
``(4) Transfers.--An electric utility that holds credits in
excess of the amount needed to comply with subsection (a) may
transfer such credits to another electric utility in the same
utility holding company system.
``(5) Eastern interconnect.--In the case of a retail
electric supplier that is a member of a power pool located in
the Eastern Interconnect and that is subject to a State
renewable portfolio standard program that provides for
compliance primarily through the acquisition of certificates
or credits in lieu of the direct acquisition of renewable
power, the Secretary shall issue renewable energy credits in
an amount that corresponds to the kilowatt-hour obligation
represented by the State certificates and credits issued
pursuant to the State program to the extent the State
certificates and credits are associated with renewable
resources eligible under this section.
``(c) Enforcement.--
``(1) Civil penalties.--Any electric utility that fails to
meet the renewable energy requirements of subsection (a)
shall be subject to a civil penalty.
``(2) Amount of penalty.--The amount of the civil penalty
shall be determined by multiplying the number of kilowatt-
hours of electric energy sold to electric consumers in
violation of subsection (a) by the greater of 1.5 cents
(adjusted for inflation under subsection (g)) or 200 percent
of the average market value of renewable energy credits
during the year in which the violation occurred.
``(3) Mitigation or waiver.--The Secretary may mitigate or
waive a civil penalty under this subsection if the electric
utility was unable to comply with subsection (a) for reasons
outside of the reasonable control of the utility. The
Secretary shall reduce the amount of any penalty determined
under paragraph (2) by an amount paid by the electric utility
to a State for failure to comply with the requirement of a
State renewable energy program if the State requirement is
greater than the applicable requirement of subsection (a).
``(4) Procedure for assessing penalty.--The Secretary shall
assess a civil penalty under this subsection in accordance
with the procedures prescribed by section 333(d) of the
Energy Policy and Conservation Act of 1954 (42 U.S.C. 6303).
``(d) State Renewable Energy Account Program.--
``(1) In general.--The Secretary shall establish, not later
than December 31, 2008, a State renewable energy account
program.
``(2) Deposits.--All money collected by the Secretary from
the sale of renewable energy credits and the assessment of
civil penalties under this section shall be deposited into
the renewable energy account established pursuant to this
subsection. The State renewable energy account shall be held
by the Secretary and shall not be transferred to the Treasury
Department.
``(3) Use.--Proceeds deposited in the State renewable
energy account shall be used by the Secretary, subject to
appropriations, for a program to provide grants to the State
agency responsible for developing State energy conservation
plans under section 362 of the Energy Policy and Conservation
Act (42 U.S.C. 6322) for the purposes of promoting renewable
energy production, including programs that promote
technologies that reduce the use of electricity at customer
sites such as solar water heating.
``(4) Administration.--The Secretary may issue guidelines
and criteria for grants awarded under this subsection. State
energy offices receiving grants under this section shall
maintain such records and evidence of compliance as the
Secretary may require.
``(5) Preference.--In allocating funds under this program,
the Secretary shall give preference--
``(A) to States in regions which have a disproportionately
small share of economically sustainable renewable energy
generation capacity; and
``(B) to State programs to stimulate or enhance innovative
renewable energy technologies.
``(e) Rules.--The Secretary shall issue rules implementing
this section not later than 1 year after the date of
enactment of this section.
``(f) Exemptions.--This section shall not apply in any
calendar year to an electric utility--
``(1) that sold less than 4,000,000 megawatt-hours of
electric energy to electric consumers during the preceding
calendar year; or
``(2) in Hawaii.
``(g) Inflation Adjustment.--Not later than December 31 of
each year beginning in 2008, the Secretary shall adjust for
inflation the price of a renewable energy credit under
subsection (b)(2)(B) and the amount of the civil penalty per
kilowatt-hour under subsection (c)(2).
``(h) State Programs.--Nothing in this section shall
diminish any authority of a State or political subdivision
thereof to adopt or enforce any law or regulation respecting
renewable energy, but, except as provided in subsection
(c)(3), no such law or regulation shall relieve any person of
any requirement otherwise applicable under this section. The
Secretary, in consultation with States having such renewable
energy programs, shall, to the maximum extent practicable,
facilitate coordination between the Federal program and State
programs.
``(i) Recovery of Costs.--
``(1) In general.--The Commission shall issue and enforce
such regulations as are necessary to ensure that an electric
utility recovers all prudently incurred costs associated with
compliance with this section.
``(2) Applicable law.--A regulation under paragraph (1)
shall be enforceable in accordance with the provisions of law
applicable to enforcement of regulations under the Federal
Power Act (16 U.S.C. 791a et seq.).
``(j) Definitions.--In this section:
``(1) Base amount of electricity.--The term `base amount of
electricity' means the total amount of electricity sold by an
electric utility to electric consumers in a calendar year,
excluding--
``(A) electricity generated by a hydroelectric facility
(including a pumped storage facility but excluding
incremental hydropower); and
``(B) electricity generated through the incineration of
municipal solid waste.
``(2) Distributed generation facility.--The term
`distributed generation facility' means a facility at a
customer site.
``(3) Existing renewable energy.--The term `existing
renewable energy' means, except as provided in paragraph
(7)(B), electric energy generated at a facility (including a
distributed generation facility) placed in service prior to
January 1, 2003, from solar, wind, or geothermal energy,
ocean energy, biomass (as defined in section 203(a) of the
Energy Policy Act of 2005), or landfill gas.
``(4) Geothermal energy.--The term `geothermal energy'
means energy derived from a geothermal deposit (within the
meaning of section 613(e)(2) of the Internal Revenue Code of
1986).
``(5) Incremental geothermal production.--
``(A) In general.--The term `incremental geothermal
production' means for any year the excess of--
``(i) the total kilowatt hours of electricity produced from
a facility (including a distributed generation facility)
using geothermal energy; over
``(ii) the average annual kilowatt hours produced at such
facility for 5 of the previous 7 calendar years before the
date of enactment of this section after eliminating the
highest and the lowest kilowatt hour production years in such
7-year period.
``(B) Special rule.--A facility described in subparagraph
(A) that was placed in service at least 7 years before the
date of enactment

[[Page S4065]]

of this section shall commencing with the year in which such
date of enactment occurs, reduce the amount calculated under
subparagraph (A)(ii) each year, on a cumulative basis, by the
average percentage decrease in the annual kilowatt hour
production for the 7-year period described in subparagraph
(A)(ii) with such cumulative sum not to exceed 30 percent.
``(6) Incremental hydropower.--The term `incremental
hydropower' means additional energy generated as a result of
efficiency improvements or capacity additions made on or
after the date of enactment of this section or the effective
date of an existing applicable State renewable portfolio
standard program at a hydroelectric facility that was placed
in service before that date. The term does not include
additional energy generated as a result of operational
changes not directly associated with efficiency improvements
or capacity additions. Efficiency improvements and capacity
additions shall be measured on the basis of the same water
flow information used to determine a historic average annual
generation baseline for the hydroelectric facility and
certified by the Secretary or the Federal Energy Regulatory
Commission.
``(7) New renewable energy.--The term `new renewable
energy' means--
``(A) electric energy generated at a facility (including a
distributed generation facility) placed in service on or
after January 1, 2003, from--
``(i) solar, wind, or geothermal energy or ocean energy;
``(ii) biomass (as defined in section 203(b) of the Energy
Policy Act of 2005 (42 U.S.C. 15852(b));
``(iii) landfill gas; or
``(iv) incremental hydropower; and
``(B) for electric energy generated at a facility
(including a distributed generation facility) placed in
service prior to the date of enactment of this section--
``(i) the additional energy above the average generation in
the 3 years preceding the date of enactment of this section
at the facility from--

``(I) solar or wind energy or ocean energy;
``(II) biomass (as defined in section 203(b) of the Energy
Policy Act of 2005 (42 U.S.C. 15852(b));
``(III) landfill gas; or
``(IV) incremental hydropower.

``(ii) incremental geothermal production.
``(8) Ocean energy.--The term `ocean energy' includes
current, wave, tidal, and thermal energy.
``(k) Sunset.--This section expires on December 31,
2030.''.
(b) Table of Contents Amendment.--The table of contents of
the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
prec. 2601) is amended by adding at the end of the items
relating to title VI the following:

``Sec. 610. Federal renewable portfolio standard.''.

SEC. 302. FEDERAL REQUIREMENT TO PURCHASE ELECTRICITY
GENERATED BY RENEWABLE ENERGY.

Section 203 of the Energy Policy Act of 2005 (42 U.S.C.
15852) is amended by striking subsection (a) and inserting
the following:
``(a) Requirement.--The President, acting through the
Secretary, shall ensure that, of the total quantity of
electric energy the Federal Government consumes during any
fiscal year, the following amounts shall be renewable energy:
``(1) Not less than 5 percent in each of fiscal years 2008
and 2009.
``(2) Not less than 7.5 percent in each of fiscal years
2010 through 2012.
``(3) Not less than 10 percent in fiscal years 2013 and
each fiscal year thereafter.''.

TITLE IV--GENERAL ENERGY EFFICIENCY PROGRAMS

SEC. 401. ENERGY SAVINGS PERFORMANCE CONTRACTS.

(a) Retention of Savings.--Section 546(c) of the National
Energy Conservation Policy Act (42 U.S.C. 8256(c)) is amended
by striking paragraph (5).
(b) Financing Flexibility.--Section 801(a)(2) of the
National Energy Conservation Policy Act (42 U.S.C.
8287(a)(2)) is amended by adding at the end the following:
``(E) Separate contracts.--In carrying out a contract under
this title, a Federal agency may--
``(i) enter into a separate contract for energy services
and conservation measures under the contract; and
``(ii) provide all or part of the financing necessary to
carry out the contract.''.
(c) Definition of Energy Savings.--Section 804(2) of the
National Energy Conservation Policy Act (42 U.S.C. 8287c(2))
is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and indenting
appropriately;
(2) by striking ``means a reduction'' and inserting
``means--
``(A) a reduction'';
(3) by striking the period at the end and inserting a
semicolon; and
(4) by adding at the end the following:
``(B) the increased efficient use of an existing energy
source by cogeneration or heat recovery, and installation of
renewable energy systems;
``(C) the sale or transfer of electrical or thermal energy
generated on-site, but in excess of Federal needs, to
utilities or non-Federal energy users; and
``(D) the increased efficient use of existing water sources
in interior or exterior applications.''.
(d) Energy and Cost Savings in Nonbuilding Applications.--
(1) Definitions.--In this subsection:
(A) Nonbuilding application.--The term ``nonbuilding
application'' means--
(i) any class of vehicles, devices, or equipment that is
transportable under the power of the applicable vehicle,
device, or equipment by land, sea, or air and that consumes
energy from any fuel source for the purpose of--

(I) that transportation; or
(II) maintaining a controlled environment within the
vehicle, device, or equipment; and

(ii) any federally-owned equipment used to generate
electricity or transport water.
(B) Secondary savings.--
(i) In general.--The term ``secondary savings'' means
additional energy or cost savings that are a direct
consequence of the energy savings that result from the energy
efficiency improvements that were financed and implemented
pursuant to an energy savings performance contract.
(ii) Inclusions.--The term ``secondary savings'' includes--

(I) energy and cost savings that result from a reduction in
the need for fuel delivery and logistical support;
(II) personnel cost savings and environmental benefits; and
(III) in the case of electric generation equipment, the
benefits of increased efficiency in the production of
electricity, including revenues received by the Federal
Government from the sale of electricity so produced.

(2) Study.--
(A) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary and the Secretary of
Defense shall jointly conduct, and submit to Congress and the
President a report of, a study of the potential for the use
of energy savings performance contracts to reduce energy
consumption and provide energy and cost savings in
nonbuilding applications.
(B) Requirements.--The study under this subsection shall
include--
(i) an estimate of the potential energy and cost savings to
the Federal Government, including secondary savings and
benefits, from increased efficiency in nonbuilding
applications;
(ii) an assessment of the feasibility of extending the use
of energy savings performance contracts to nonbuilding
applications, including an identification of any regulatory
or statutory barriers to such use; and
(iii) such recommendations as the Secretary and Secretary
of Defense determine to be appropriate.

SEC. 402. DEPLOYMENT OF NEW TECHNOLOGIES FOR HIGH-EFFICIENCY
CONSUMER PRODUCTS.

(a) Definitions.--In this section:
(1) Energy savings.--The term ``energy savings'' means
megawatt-hours of electricity or million British thermal
units of natural gas saved by a product, in comparison to
projected energy consumption under the energy efficiency
standard applicable to the product.
(2) High-efficiency consumer product.--The term ``high-
efficiency consumer product'' means a covered product to
which an energy conservation standard applies under section
325 of the Energy Policy and Conservation Act (42 U.S.C.
6295), if the energy efficiency of the product exceeds the
energy efficiency required under the standard.
(b) Financial Incentives Program.--Effective beginning
October 1, 2006, the Secretary shall competitively award
financial incentives under this section for the manufacture
of high-efficiency consumer products.
(c) Requirements.--
(1) In general.--The Secretary shall make awards under this
section to manufacturers of high-efficiency consumer
products, based on the bid of each manufacturer in terms of
dollars per megawatt-hour or million British thermal units
saved.
(2) Acceptance of bids.--In making awards under this
section, the Secretary shall--
(A) solicit bids for reverse auction from appropriate
manufacturers, as determined by the Secretary; and
(B) award financial incentives to the manufacturers that
submit the lowest bids that meet the requirements established
by the Secretary.
(d) Forms of Awards.--An award for a high-efficiency
consumer product under this section shall be in the form of a
lump sum payment in an amount equal to the product obtained
by multiplying--
(1) the amount of the bid by the manufacturer of the high-
efficiency consumer product; and
(2) the energy savings during the projected useful life of
the high-efficiency consumer product, not to exceed 10 years,
as determined under regulations issued by the Secretary.

SEC. 403. NATIONAL MEDIA CAMPAIGN TO DECREASE OIL AND NATURAL
GAS CONSUMPTION.

(a) In General.--The Secretary, acting through the
Assistant Secretary for Energy Efficiency and Renewable
Energy (referred to in this section as the ``Secretary''),
shall develop and conduct a national media campaign for the
purpose of decreasing oil and natural gas consumption in the
United States over the next decade.
(b) Contract With Entity.--The Secretary shall carry out
subsection (a) directly or through--
(1) competitively bid contracts with 1 or more nationally
recognized media firms for

[[Page S4066]]

the development and distribution of monthly television,
radio, and newspaper public service announcements; or
(2) collective agreements with 1 or more nationally
recognized institutes, businesses, or nonprofit organizations
for the funding, development, and distribution of monthly
television, radio, and newspaper public service
announcements.
(c) Use of Funds.--
(1) In general.--Amounts made available to carry out this
section shall be used for the following:
(A) Advertising costs.--
(i) The purchase of media time and space.
(ii) Creative and talent costs.
(iii) Testing and evaluation of advertising.
(iv) Evaluation of the effectiveness of the media campaign.
(v) The negotiated fees for the winning bidder on requests
from proposals issued either by the Secretary for purposes
otherwise authorized in this section.
(vi) Entertainment industry outreach, interactive outreach,
media projects and activities, public information, news media
outreach, and corporate sponsorship and participation.
(B) Administrative costs.--Operational and management
expenses.
(2) Limitations.--In carrying out this section, the
Secretary shall allocate not less than 85 percent of funds
made available under subsection (e) for each fiscal year for
the advertising functions specified under paragraph (1)(A).
(d) Reports.--The Secretary shall annually submit to
Congress a report that describes--
(1) the strategy of the national media campaign and whether
specific objectives of the campaign were accomplished,
including--
(A) determinations concerning the rate of change of oil and
natural gas consumption, in both absolute and per capita
terms; and
(B) an evaluation that enables consideration whether the
media campaign contributed to reduction of oil and natural
gas consumption;
(2) steps taken to ensure that the national media campaign
operates in an effective and efficient manner consistent with
the overall strategy and focus of the campaign;
(3) plans to purchase advertising time and space;
(4) policies and practices implemented to ensure that
Federal funds are used responsibly to purchase advertising
time and space and eliminate the potential for waste, fraud,
and abuse; and
(5) all contracts or cooperative agreements entered into
with a corporation, partnership, or individual working on
behalf of the national media campaign.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2006 through 2010.

SEC. 404. ENERGY EFFICIENCY RESOURCE PROGRAMS.

(a) Electric Utility Programs.--Section 111 of the Public
Utilities Regulatory Policy Act of 1978 (16 U.S.C. 2621) is
amended by adding at the end the following:
``(e) Energy Efficiency Resource Programs.--
``(1) Definitions.--In this subsection:
``(A) Demand baseline.--The term `demand baseline' means
the baseline determined by the Secretary for an appropriate
period preceding the implementation of an energy efficiency
resource program.
``(B) Energy efficiency resource programs.--The term
`energy efficiency resource program' means an energy
efficiency or other demand reduction program that is designed
to reduce annual electricity consumption or peak demand of
consumers served by an electric utility by a percentage of
the demand baseline of the utility that is equal to not less
than 0.75 percent of the number of years during which the
program is in effect.
``(2) Public hearings; determinations.--
``(A) Public hearing.--As soon as practicable after the
date of enactment of this subsection, but not later than 3
years after that date, each State regulatory authority (with
respect to each electric utility over which the State has
ratemaking authority) and each nonregulated electric utility
shall, after notice, conduct a public hearing on the benefits
and feasibility of carrying out an energy efficiency resource
program.
``(B) Energy efficiency resource program.--A State
regulatory authority or nonregulated utility shall carry out
an energy efficiency resource program if, on the basis of a
hearing under subparagraph (A), the State regulatory
authority or nonregulated utility determines that the program
would--
``(i) benefit end-use customers;
``(ii) be cost-effective based on total resource cost;
``(iii) serve the public welfare; and
``(iv) be feasible to carry out.
``(3) Implementation.--
``(A) State regulatory authorities.--If a State regulatory
authority makes a determination under paragraph (2)(B), the
State regulatory authority shall--
``(i) require each electric utility over which the State
has ratemaking authority to carry out an energy efficiency
resource program; and
``(ii) allow such a utility to recover expenditures
incurred by the utility in carrying out the energy efficiency
resource program.
``(B) Nonregulated electric utilities.--If a nonregulated
electric utility makes a determination under paragraph
(2)(B), the utility shall carry out an energy efficiency
resource program.
``(4) Updating regulations.--A State regulatory authority
or nonregulated utility may update periodically a
determination under paragraph (2)(B) to determine whether an
energy efficiency resource program should be--
``(A) continued;
``(B) modified; or
``(C) terminated.
``(5) Exception.--Paragraph (2) shall not apply to a State
regulatory authority (or a nonregulated electric utility
operating in the State) that demonstrates to the Secretary
that an energy efficiency resource program is in effect in
the State.''.
(b) Gas Utilities.--Section 303 of the Public Utilities
Regulatory Policy Act of 1978 (15 U.S.C. 3203) is amended by
adding at the end the following:
``(e) Energy Efficiency Resource Programs.--
``(1) Definitions.--In this subsection:
``(A) Demand baseline.--The term `demand baseline' means
the baseline determined by the Secretary for an appropriate
period preceding the implementation of an energy efficiency
resource program.
``(B) Energy efficiency resource programs.--The term
`energy efficiency resource program' means an energy
efficiency or other demand reduction program that is designed
to reduce annual gas consumption or peak demand of consumers
served by a gas utility by a percentage of the demand
baseline of the utility that is equal to not less than 0.75
percent of the number of years during which the program is in
effect.
``(2) Public hearings; determinations.--
``(A) Public hearing.--As soon as practicable after the
date of enactment of this subsection, but not later than 3
years after that date, each State regulatory authority (with
respect to each gas utility over which the State has
ratemaking authority) and each nonregulated gas utility
shall, after notice, conduct a public hearing on the benefits
and feasibility of carrying out an energy efficiency resource
program.
``(B) Energy efficiency resource program.--A State
regulatory authority or nonregulated utility shall carry out
an energy efficiency resource program if, on the basis of a
hearing under subparagraph (A), the State regulatory
authority or nonregulated utility determines that the program
would--
``(i) benefit end-use customers;
``(ii) be cost-effective based on total resource cost;
``(iii) serve the public welfare; and
``(iv) be feasible to carry out.
``(3) Implementation.--
``(A) State regulatory authorities.--If a State regulatory
authority makes a determination under paragraph (2)(B), the
State regulatory authority shall--
``(i) require each gas utility over which the State has
ratemaking authority to carry out an energy efficiency
resource program; and
``(ii) allow such a utility to recover expenditures
incurred by the utility in carrying out the energy efficiency
resource program.
``(B) Nonregulated gas utilities.--If a nonregulated gas
utility makes a determination under paragraph (2)(B), the
utility shall carry out an energy efficiency resource
program.
``(4) Updating regulations.--A State regulatory authority
or nonregulated utility may update periodically a
determination under paragraph (2)(B) to determine whether an
energy efficiency resource program should be--
``(A) continued;
``(B) modified; or
``(C) terminated.
``(5) Exception.--Paragraph (2) shall not apply to a State
regulatory authority (or a nonregulated gas utility operating
in the State) that demonstrates to the Secretary that an
energy efficiency resource program is in effect in the
State.''.

TITLE V--ASSISTANCE TO ENERGY CONSUMERS

SEC. 501. ENERGY EMERGENCY DISASTER RELIEF LOANS TO SMALL
BUSINESS AND AGRICULTURAL PRODUCERS.

(a) Definitions.--In this section--
(1) the term ``Administrator'' means the Administrator of
the Small Business Administration; and
(2) the term ``small business concern'' has the meaning
given the term in section 3 of the Small Business Act (15
U.S.C. 632).
(b) Small Business Producer Energy Emergency Disaster Loan
Program.--
(1) Disaster loan authority.--Section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) is amended by inserting
immediately after paragraph (3) the following:
``(4) Energy disaster loans.--
``(A) Definitions.--In this paragraph--
``(i) the term `base price index' means the moving average
of the closing unit price on the New York Mercantile Exchange
for heating oil, natural gas, gasoline, or propane for the 10
days that correspond to the trading days described in clause
(ii) in each of the most recent 2 preceding years;
``(ii) the term `current price index' means the moving
average of the closing unit price on the New York Mercantile
Exchange, for the 10 most recent trading days, for contracts
to purchase heating oil, natural gas, gasoline, or propane
during the subsequent calendar month, commonly known as the
`front month'; and
``(iii) the term `significant increase' means--

``(I) with respect to the price of heating oil, natural
gas, gasoline, or propane, any time the current price index
exceeds the base price index by not less than 40 percent; and

[[Page S4067]]

``(II) with respect to the price of kerosene, any increase
which the Administrator, in consultation with the Secretary
of Energy, determines to be significant.

``(B) Loan authority.--The Administrator may make such
loans, either directly or in cooperation with banks or other
lending institutions through agreements to participate on an
immediate or deferred basis, to assist a small business
concern that has suffered or that is likely to suffer
substantial economic injury on or after January 1, 2005, as
the result of a significant increase in the price of heating
oil, natural gas, gasoline, propane, or kerosene occurring on
or after January 1, 2005.
``(C) Interest rate.--Any loan or guarantee extended
pursuant to this paragraph shall be made at the same interest
rate as economic injury loans under paragraph (2).
``(D) Maximum amount.--No loan may be made under this
paragraph, either directly or in cooperation with banks or
other lending institutions through agreements to participate
on an immediate or deferred basis, if the total amount
outstanding and committed to the borrower under this
subsection would exceed $1,500,000, unless such borrower
constitutes a major source of employment in its surrounding
area, as determined by the Administrator, in which case the
Administrator, in the discretion of the Administrator, may
waive the $1,500,000 limitation.
``(E) Disaster declaration.--For purposes of assistance
under this paragraph--
``(i) a declaration of a disaster area based on conditions
specified in this paragraph shall be required, and shall be
made by the President or the Administrator; or
``(ii) if no declaration has been made pursuant to clause
(i), the Governor of a State in which a significant increase
in the price of heating oil, natural gas, gasoline, propane,
or kerosene has occurred may certify to the Administrator
that small business concerns have suffered economic injury as
a result of such increase and are in need of financial
assistance which is not otherwise available on reasonable
terms in that State, and upon receipt of such certification,
the Administrator may make such loans as would have been
available under this paragraph if a disaster declaration had
been issued.
``(F) Conversion.--Notwithstanding any other provision of
law, loans made under this paragraph may be used by a small
business concern described in subparagraph (B) to convert
from the use of heating oil, natural gas, gasoline, propane,
or kerosene to a renewable or alternative energy source,
including agriculture and urban waste, geothermal energy,
cogeneration, solar energy, wind energy, or fuel cells.''.
(2) Conforming amendments.--Section 3(k) of the Small
Business Act (15 U.S.C. 632(k)) is amended--
(A) by inserting ``, a significant increase in the price of
heating oil, natural gas, gasoline, propane, or kerosene,''
after ``civil disorders''; and
(B) by inserting ``other'' before ``economic''.
(c) Agricultural Producer Emergency Loans.--
(1) In general.--Section 321(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1961(a)) is amended--
(A) in the first sentence--
(i) by striking ``aquaculture operations have'' and
inserting ``aquaculture operations (i) have''; and
(ii) by inserting before ``: Provided,'' the following: ``,
or (ii)(I) are owned or operated by such an applicant that is
also a small business concern (as defined in section 3 of the
Small Business Act (15 U.S.C. 632)), and (II) have suffered
or are likely to suffer substantial economic injury on or
after January 1, 2005, as the result of a significant
increase in energy costs or input costs from energy sources
occurring on or after January 1, 2005, in connection with an
energy emergency declared by the President or the
Secretary'';
(B) in the third sentence, by inserting before the period
at the end the following: ``or by an energy emergency
declared by the President or the Secretary''; and
(C) in the fourth sentence--
(i) by striking ``or natural disaster'' each place that
term appears and inserting ``, natural disaster, or energy
emergency''; and
(ii) by inserting ``or declaration'' after ``emergency
designation''.
(2) Funding.--Funds available on the date of enactment of
this Act for emergency loans under subtitle C of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et
seq.) shall be available to carry out the amendments made by
paragraph (1) to meet the needs resulting from natural
disasters.
(d) Guidelines and Rulemaking.--
(1) Guidelines.--Not later than 30 days after the date of
enactment of this Act, the Administrator and the Secretary of
Agriculture shall each issue guidelines to carry out
subsections (b) and (c), respectively, and the amendments
made thereby, which guidelines shall become effective on the
date of their issuance.
(2) Rulemaking.--Not later than 30 days after the date of
enactment of this Act, the Administrator, after consultation
with the Secretary of Energy, shall promulgate regulations
specifying the method for determining a significant increase
in the price of kerosene under section 7(b)(4)(A)(iii)(II) of
the Small Business Act, as added by this section.
(e) Reports.--
(1) Small business administration.--Not later than 12
months after the date on which the Administrator issues
guidelines under subsection (d)(1), and annually thereafter,
until the date that is 12 months after the end of the
effective period of section 7(b)(4) of the Small Business
Act, as added by this section, the Administrator shall submit
to the Committee on Small Business and Entrepreneurship of
the Senate and the Committee on Small Business of the House
of Representatives, a report on the effectiveness of the
assistance made available under section 7(b)(4) of the Small
Business Act, as added by this section, including--
(A) the number of small business concerns that applied for
a loan under such section 7(b)(4) and the number of those
that received such loans;
(B) the dollar value of those loans;
(C) the States in which the small business concerns that
received such loans are located;
(D) the type of energy that caused the significant increase
in the cost for the participating small business concerns;
and
(E) recommendations for ways to improve the assistance
provided under such section 7(b)(4), if any.
(2) Department of agriculture.--Not later than 12 months
after the date on which the Secretary of Agriculture issues
guidelines under subsection (d)(1), and annually thereafter,
until the date that is 12 months after the end of the
effective period of the amendments made to section 321(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
1961(a)) by this section, the Secretary shall submit to the
Committee on Small Business and Entrepreneurship and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate and to the Committee on Small Business and the
Committee on Agriculture of the House of Representatives, a
report that--
(A) describes the effectiveness of the assistance made
available under section 321(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1961(a)), as amended by this
section; and
(B) contains recommendations for ways to improve the
assistance provided under such section 321(a).
(f) Effective Date.--
(1) Small business.--The amendments made by subsection (b)
shall apply during the 4-year period beginning on the earlier
of the date on which guidelines are published by the
Administrator under subsection (d)(1) or 30 days after the
date of enactment of this Act, with respect to assistance
under section 7(b)(4) of the Small Business Act, as added by
this section.
(2) Agriculture.--The amendments made by subsection (c)
shall apply during the 4-year period beginning on the earlier
of the date on which guidelines are published by the
Secretary of Agriculture under subsection (d)(1) or 30 days
after the date of enactment of this Act, with respect to
assistance under section 321(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1961(a)), as amended by this
section.

SEC. 502. EFFICIENT AND SAFE EQUIPMENT REPLACEMENT PROGRAM
FOR WEATHERIZATION PURPOSES.

(a) In General.--Part A of title IV of the Energy
Conservation and Production Act is amended--
(1) by redesignating section 422 (42 U.S.C. 6872) as
section 423; and
(2) by inserting after section 421 (42 U.S.C. 6871) the
following:

``SEC. 422. EFFICIENT AND SAFE EQUIPMENT REPLACEMENT PROGRAM
FOR WEATHERIZATION PURPOSES.

``(a) Establishment of Program.--The Secretary shall
establish, within the Weatherization Assistance Program, a
program to assist in the replacement of unsafe or highly
inefficient heating and cooling units in low-income
households.
``(b) Administration.--
``(1) In general.--Except as otherwise provided in this
subsection, the Secretary shall administer the program
established under this section in accordance with this part.
``(2) Exemption for high-efficiency heating and cooling
equipment expenditures.--Assistance for high-efficiency
heating and cooling equipment under this section shall be
exempt from the standards established under section 413(b)(3)
and from section 415(c).
``(3) Identification of heating and cooling system
upgrades.--Assistance for system upgrades under this section
shall be based on a standard weatherization audit and
appropriate diagnostic procedures in use by the program.
``(4) Weatherization of home receiving new heating or
cooling system.--Assistance may be perceived for a home
receiving a new heating or cooling system under this section
regardless of whether the home is fully weatherized in the
year that the home received a new heating system.
``(5) Fuel.--The Secretary shall make no rule prohibiting a
grantee from installing high-efficiency equipment that uses a
fuel (including a renewable fuel) most likely to result in
reliable supply and the lowest practicable energy bills,
regardless of the fuel previously used by the household.
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary to carry out
this section--
``(1) $40,000,000 for fiscal year 2006;
``(2) $50,000,000 for fiscal year 2007; and
``(3) $60,000,000 for fiscal year 2008.''.
(b) Table of Contents Amendment.--The table of contents of
the Energy Conservation and Production Act (42 U.S.C. prec.
6901) is amended--

[[Page S4068]]

(1) by redesignating the item relating to section 422 as an
item relating to section 423; and
(2) by inserting after the item relating to section 421 the
following:

``Sec. 422. Efficient and safe equipment program.''.

S. 2748

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

SECTION 1. SHORT TITLE; AMENDMENT OF CODE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Enhanced
Energy Security Tax Incentives Act of 2006''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; amendment of Code; table of contents.

TITLE I--EXTENSION OF INCENTIVES

Sec. 101. Extension of credit for electricity produced from certain
renewable resources.
Sec. 102. Extension and expansion of credit to holders of clean
renewable energy bonds.
Sec. 103. Extension of energy efficient commercial buildings deduction.
Sec. 104. Extension and expansion of new energy efficient home credit.
Sec. 105. Extension of nonbusiness energy property credit.
Sec. 106. Extension of residential energy efficient property credit.
Sec. 107. Extension of credit for business installation of qualified
fuel cells and stationary microturbine power plants.
Sec. 108. Extension of business solar investment tax credit.
Sec. 109. Extension of alternative fuel excise tax provisions, income
tax credits, and tariff duties.
Sec. 110. Extension of full credit for qualified electric vehicles.

TITLE II--INCENTIVES FOR ALTERNATIVE FUEL VEHICLES

Sec. 201. Consumer incentives to purchase advanced technology vehicles.
Sec. 202. Advanced technology motor vehicles manufacturing credit.
Sec. 203. Tax incentives for private fleets.
Sec. 204. Modification of alternative vehicle refueling property
credit.
Sec. 205. Inclusion of heavy vehicles in limitation on depreciation of
certain luxury automobiles.
Sec. 206. Idling reduction tax credit.

TITLE III--ADDITIONAL INCENTIVES

Sec. 301. Energy credit for combined heat and power system property.
Sec. 302. Three-year applicable recovery period for depreciation of
qualified energy management devices.
Sec. 303. Three-year applicable recovery period for depreciation of
qualified water submetering devices.

TITLE IV--REVENUE PROVISIONS

Sec. 401. Revaluation of LIFO inventories of large integrated oil
companies.
Sec. 402. Elimination of amortization of geological and geophysical
expenditures for major integrated oil companies.
Sec. 403. Modifications of foreign tax credit rules applicable to large
integrated oil companies which are dual capacity
taxpayers.

TITLE I--EXTENSION OF INCENTIVES

SEC. 101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM
CERTAIN RENEWABLE RESOURCES.

Section 45(d) (relating to qualified facilities) is amended
by striking ``2008'' each place it appears and inserting
``2011''.

SEC. 102. EXTENSION AND EXPANSION OF CREDIT TO HOLDERS OF
CLEAN RENEWABLE ENERGY BONDS.

(a) In General.--Section 54(m) (relating to termination) is
amended by striking ``2007'' and inserting ``2010''.
(b) Annual Volume Cap for Bonds Issued During Extension
Period.--Paragraph (1) of section 54(f) (relating to
limitation on amount of bonds designated) is amended to read
as follows:
``(1) National limitation.--
``(A) Initial national limitation.--With respect to bonds
issued after December 31, 2005, and before January 1, 2008,
there is a national clean renewable energy bond limitation of
$800,000,000.
``(B) Annual national limitation.--With respect to bonds
issued after December 31, 2007, and before January 1, 2011,
there is a national clean renewable energy bond limitation
for each calendar year of $800,000,000.''.
(c) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.

SEC. 103. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.

Section 179D(h) (relating to termination) is amended by
striking ``2007'' and inserting ``2010''.

SEC. 104. EXTENSION AND EXPANSION OF NEW ENERGY EFFICIENT
HOME CREDIT.

(a) Extension.--Section 45L(g) (relating to termination) is
amended by striking ``2007'' and inserting ``2010''.
(b) Inclusion of 30 Percent Homes.--
(1) In general.--Section 45L(c) (relating to energy saving
requirements) is amended--
(A) by striking ``or'' at the end of paragraph (2),
(B) by redesignating paragraph (3) as paragraph (4), and
(C) by inserting after paragraph (2) the following new
paragraph:
``(3) certified--
``(A) to have a level of annual heating and cooling energy
consumption which is at least 30 percent below the annual
level described in paragraph (1), and
``(B) to have building envelope component improvements
account for at least \1/3\ of such 30 percent, or''.
(2) Applicable amount of credit.--Section 45L(a)(2) is
amended by striking ``paragraph (3)'' and inserting
``paragraph (3) or (4)''.
(3) Effective date.--The amendments made by this subsection
shall apply to qualified new energy efficient homes acquired
after the date of the enactment of this Act.

SEC. 105. EXTENSION OF NONBUSINESS ENERGY PROPERTY CREDIT.

Section 25C(g) (relating to termination) is amended by
striking ``2007'' and inserting ``2010''.

SEC. 106. EXTENSION OF RESIDENTIAL ENERGY EFFICIENT PROPERTY
CREDIT.

Section 25D(g) (relating to termination) is amended by
striking ``2007'' and inserting ``2010''.

SEC. 107. EXTENSION OF CREDIT FOR BUSINESS INSTALLATION OF
QUALIFIED FUEL CELLS AND STATIONARY
MICROTURBINE POWER PLANTS.

Sections 48(c)(1)(E) and 48(c)(2)(E) (relating to
termination) are each amended by striking ``2007'' and
inserting ``2010''.

SEC. 108. EXTENSION OF BUSINESS SOLAR INVESTMENT TAX CREDIT.

Sections 48(a)(2)(A)(i)(II) and 48(a)(3)(A)(ii) (relating
to termination) are each amended by striking ``2008'' and
inserting ``2011''.

SEC. 109. EXTENSION OF ALTERNATIVE FUEL EXCISE TAX
PROVISIONS, INCOME TAX CREDITS, AND TARIFF
DUTIES.

(a) Biodiesel.--Sections 40A(g), 6426(c)(6), and
6427(e)(5)(B) are each amended by striking ``2008'' and
inserting ``2010''.
(b) Alternative Fuel.--
(1) Fuels.--Sections 6426(d)(4) and 6427(e)(5)(C) are each
amended by striking ``September 30, 2009'' and inserting
``December 31, 2010''.
(2) Refueling property.--Section 30C(g) is amended by
striking ``2009'' and inserting ``2010''.
(c) Ethanol Tariff Schedule.--Headings 9901.00.50 and
9901.00.52 of the Harmonized Tariff Schedule of the United
States (19 U.S.C. 3007) are each amended in the effective
period column by striking ``10/1/2007'' each place it appears
and inserting ``1/1/2011''.
(d) Effective Date.--The amendments made by this section
shall take effect on January 1, 2007.

SEC. 110. EXTENSION OF FULL CREDIT FOR QUALIFIED ELECTRIC
VEHICLES.

(a) In General.--Section 30(e) is amended by striking
``2006'' and inserting ``2010''.
(b) Repeal of Phaseout.--Section 30(b) (relating to
limitations) is amended by striking paragraph (2) and by
redesignating paragraph (3) as paragraph (2).
(c) Credit Allowable Against Alternative Minimum Tax.--
Paragraph (2) of section 30(b), as redesignated by subsection
(b), is amended to read as follows:
``(2) Application with other credits.--The credit allowed
by subsection (a) for any taxable year shall not exceed the
excess (if any) of--
``(A) the sum of the regular tax for the taxable year plus
the tax imposed by section 55, over
``(B) the sum of the credits allowable under subpart A and
section 27.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.

TITLE II--INCENTIVES FOR ALTERNATIVE FUEL VEHICLES

SEC. 201. CONSUMER INCENTIVES TO PURCHASE ADVANCED TECHNOLOGY
VEHICLES.

(a) Elimination on Number of New Qualified Hybrid and
Advanced Lean Burn Technology Vehicles Eligible for
Alternative Motor Vehicle Credit.--
(1) In general.--Section 30B is amended by striking
subsection (f) and by redesignating subsections (g) through
(j) as subsections (f) through (i), respectively.
(2) Conforming amendments.--
(A) Paragraphs (4) and (6) of section 30B(h) are each
amended by striking ``(determined without regard to
subsection (g))'' and inserting ``determined without regard
to subsection (f))''.
(B) Section 38(b)(25) is amended by striking ``section
30B(g)(1)'' and inserting ``section 30B(f)(1)''.
(C) Section 55(c)(2) is amended by striking ``section
30B(g)(2)'' and inserting ``section 30B(f)(2)''.
(D) Section 1016(a)(36) is amended by striking ``section
30B(h)(4)'' and inserting ``section 30B(g)(4)''.
(E) Section 6501(m) is amended by striking ``section
30B(h)(9)'' and inserting ``section 30B(g)(9)''.
(b) Extension of Alternative Vehicle Credit for New
Qualified Hybrid Motor Vehicles.--Paragraph (3) of section
30B(i) (as redesignated by subsection (a)) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2010''.

[[Page S4069]]

(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2005, in taxable years ending after such date.

SEC. 202. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING
CREDIT.

(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 (relating to foreign tax credit, etc.) is amended
by adding at the end the following new section:

``SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING
CREDIT.

``(a) Credit Allowed.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year
an amount equal to 35 percent of so much of the qualified
investment of an eligible taxpayer for such taxable year as
does not exceed $75,000,000.
``(b) Qualified Investment.--For purposes of this section--
``(1) In general.--The qualified investment for any taxable
year is equal to the incremental costs incurred during such
taxable year--
``(A) to re-equip, expand, or establish any manufacturing
facility in the United States of the eligible taxpayer to
produce advanced technology motor vehicles or to produce
eligible components,
``(B) for engineering integration performed in the United
States of such vehicles and components as described in
subsection (d),
``(C) for research and development performed in the United
States related to advanced technology motor vehicles and
eligible components, and
``(D) for employee retraining with respect to the
manufacturing of such vehicles or components (determined
without regard to wages or salaries of such retrained
employees).
``(2) Attribution rules.--In the event a facility of the
eligible taxpayer produces both advanced technology motor
vehicles and conventional motor vehicles, or eligible and
non-eligible components, only the qualified investment
attributable to production of advanced technology motor
vehicles and eligible components shall be taken into account.
``(c) Advanced Technology Motor Vehicles and Eligible
Components.--For purposes of this section--
``(1) Advanced technology motor vehicle.--The term
`advanced technology motor vehicle' means--
``(A) any qualified electric vehicle (as defined in section
30(c)(1)),
``(B) any new qualified fuel cell motor vehicle (as defined
in section 30B(b)(3)),
``(C) any new advanced lean burn technology motor vehicle
(as defined in section 30B(c)(3)),
``(D) any new qualified hybrid motor vehicle (as defined in
section 30B(d)(2)(A) and determined without regard to any
gross vehicle weight rating),
``(E) any new qualified alternative fuel motor vehicle (as
defined in section 30B(e)(4), including any mixed-fuel
vehicle (as defined in section 30B(e)(5)(B)), and
``(F) any other motor vehicle using electric drive
transportation technology (as defined in paragraph (3)).
``(2) Eligible components.--The term `eligible component'
means any component inherent to any advanced technology motor
vehicle, including--
``(A) with respect to any gasoline or diesel-electric new
qualified hybrid motor vehicle--
``(i) electric motor or generator,
``(ii) power split device,
``(iii) power control unit,
``(iv) power controls,
``(v) integrated starter generator, or
``(vi) battery,
``(B) with respect to any hydraulic new qualified hybrid
motor vehicle--
``(i) hydraulic accumulator vessel,
``(ii) hydraulic pump, or
``(iii) hydraulic pump-motor assembly,
``(C) with respect to any new advanced lean burn technology
motor vehicle--
``(i) diesel engine,
``(ii) turbocharger,
``(iii) fuel injection system, or
``(iv) after-treatment system, such as a particle filter or
NOx absorber, and
``(D) with respect to any advanced technology motor
vehicle, any other component submitted for approval by the
Secretary.
``(3) Electric drive transportation technology.--The term
`electric drive transportation technology' means technology
used by vehicles that use an electric motor for all or part
of their motive power and that may or may not use off-board
electricity, such as battery electric vehicles, fuel cell
vehicles, engine dominant hybrid electric vehicles, plug-in
hybrid electric vehicles, and plug-in hybrid fuel cell
vehicles.
``(d) Engineering Integration Costs.--For purposes of
subsection (b)(1)(B), costs for engineering integration are
costs incurred prior to the market introduction of advanced
technology vehicles for engineering tasks related to--
``(1) establishing functional, structural, and performance
requirements for component and subsystems to meet overall
vehicle objectives for a specific application,
``(2) designing interfaces for components and subsystems
with mating systems within a specific vehicle application,
``(3) designing cost effective, efficient, and reliable
manufacturing processes to produce components and subsystems
for a specific vehicle application, and
``(4) validating functionality and performance of
components and subsystems for a specific vehicle application.
``(e) Eligible Taxpayer.--For purposes of this section, the
term `eligible taxpayer' means any taxpayer if more than 50
percent of its gross receipts for the taxable year is derived
from the manufacture of motor vehicles or any component parts
of such vehicles.
``(f) Limitation Based on Amount of Tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(1) the sum of--
``(A) the regular tax liability (as defined in section
26(b)) for such taxable year, plus
``(B) the tax imposed by section 55 for such taxable year
and any prior taxable year beginning after 1986 and not taken
into account under section 53 for any prior taxable year,
over
``(2) the sum of the credits allowable under subpart A and
sections 27, 30, and 30B for the taxable year.
``(g) Reduction in Basis.--For purposes of this subtitle,
if a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of
such property which would (but for this paragraph) result
from such expenditure shall be reduced by the amount of the
credit so allowed.
``(h) No Double Benefit.--
``(1) Coordination with other deductions and credits.--
Except as provided in paragraph (2), the amount of any
deduction or other credit allowable under this chapter for
any cost taken into account in determining the amount of the
credit under subsection (a) shall be reduced by the amount of
such credit attributable to such cost.
``(2) Research and development costs.--
``(A) In general.--Except as provided in subparagraph (B),
any amount described in subsection (b)(1)(C) taken into
account in determining the amount of the credit under
subsection (a) for any taxable year shall not be taken into
account for purposes of determining the credit under section
41 for such taxable year.
``(B) Costs taken into account in determining base period
research expenses.--Any amounts described in subsection
(b)(1)(C) taken into account in determining the amount of the
credit under subsection (a) for any taxable year which are
qualified research expenses (within the meaning of section
41(b)) shall be taken into account in determining base period
research expenses for purposes of applying section 41 to
subsequent taxable years.
``(i) Business Carryovers Allowed.--If the credit allowable
under subsection (a) for a taxable year exceeds the
limitation under subsection (f) for such taxable year, such
excess (to the extent of the credit allowable with respect to
property subject to the allowance for depreciation) shall be
allowed as a credit carryback and carryforward under rules
similar to the rules of section 39.
``(j) Special Rules.--For purposes of this section, rules
similar to the rules of section 179A(e)(4) and paragraphs (1)
and (2) of section 41(f) shall apply
``(k) Election Not to Take Credit.--No credit shall be
allowed under subsection (a) for any property if the taxpayer
elects not to have this section apply to such property.
``(l) Regulations.--The Secretary shall prescribe such
regulations as necessary to carry out the provisions of this
section.
``(m) Termination.--This section shall not apply to any
qualified investment after December 31, 2010.''.
(b) Conforming Amendments.--
(1) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (36), by striking the period at the end of
paragraph (37) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(38) to the extent provided in section 30D(g).''.
(2) Section 6501(m) is amended by inserting ``30D(k),''
after ``30C(e)(5),''.
(3) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 30C the following new item:

``Sec. 30D. Advanced technology motor vehicles manufacturing credit.''.

(c) Effective Date.--The amendments made by this section
shall apply to amounts incurred in taxable years beginning
after December 31, 2005.

SEC. 203. TAX INCENTIVES FOR PRIVATE FLEETS.

(a) In General.--Subpart E of part IV of subchapter A of
chapter 1 is amended by inserting after section 48B the
following new section:

``SEC. 48C. FUEL-EFFICIENT FLEET CREDIT.

``(a) General Rule.--For purposes of section 46, the fuel-
efficient fleet credit for any taxable year is 15 percent of
the qualified fuel-efficient vehicle investment amount of an
eligible taxpayer for such taxable year.
``(b) Vehicle Purchase Requirement.--In the case of any
eligible taxpayer which places less than 10 qualified fuel-
efficient vehicles in service during the taxable year, the
qualified fuel-efficient vehicle investment amount shall be
zero.
``(c) Qualified Fuel-Efficient Vehicle Investment Amount.--
For purposes of this section--
``(1) In general.--The term `qualified fuel-efficient
vehicle investment amount' means the basis of any qualified
fuel-efficient vehicle placed in service by an eligible
taxpayer during the taxable year.
``(2) Qualified fuel-efficient vehicle.--The term
`qualified fuel-efficient vehicle' means an automobile which
has a fuel economy which is at least 125 percent greater than
the average fuel economy standard for an automobile of the
same class and model year.

[[Page S4070]]

``(3) Other terms.--The terms `automobile', `average fuel
economy standard', `fuel economy', and `model year' have the
meanings given to such terms under section 32901 of title 49,
United States Code.
``(d) Eligible Taxpayer.--The term `eligible taxpayer'
means, with respect to any taxable year, a taxpayer who owns
a fleet of 100 or more vehicles which are used in the trade
or business of the taxpayer on the first day of such taxable
year.
``(e) Termination.--This section shall not apply to any
vehicle placed in service after December 31, 2010.''.
(b) Credit Treated as Part of Investment Credit.--Section
46 is amended by striking ``and'' at the end of paragraph
(3), by striking the period at the end of paragraph (4) and
inserting ``, and'', and by adding at the end the following
new paragraph:
``(5) the fuel-efficient fleet credit.''.
(c) Conforming Amendments.--
(1) Section 49(a)(1)(C) is amended by striking ``and'' at
the end of clause (iii), by striking the period at the end of
clause (iv) and inserting ``, and'', and by adding at the end
the following new clause:
``(v) the basis of any qualified fuel-efficient vehicle
which is taken into account under section 48C.''.
(2) The table of sections for subpart E of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 48 the following new item:

``Sec. 48C. Fuel-efficient fleet credit.''.
(d) Effective Date.--The amendments made by this section
shall apply to periods after December 31, 2005, in taxable
years ending after such date, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986
(as in effect on the day before the date of the enactment of
the Revenue Reconciliation Act of 1990).

SEC. 204. MODIFICATION OF ALTERNATIVE VEHICLE REFUELING
PROPERTY CREDIT.

(a) Increase in Credit Amount.--Subsection (a) of section
30C is amended by striking ``30 percent'' and inserting ``50
percent''.
(b) Credit Allowable Against Alternative Minimum Tax.--
Paragraph (2) of section 30C is amended to read as follows:
``(2) Personal credit.--The credit allowed under subsection
(a) (after the application of paragraph (1)) for any taxable
year shall not exceed the excess (if any) of--
``(A) the sum of the regular tax for the taxable year plus
the tax imposed by section 55, over
``(B) the sum of the credits allowable under subpart A and
sections 27, 30, and 30B.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.

SEC. 205. INCLUSION OF HEAVY VEHICLES IN LIMITATION ON
DEPRECIATION OF CERTAIN LUXURY AUTOMOBILES.

(a) In General.--Section 280F(d)(5)(A) (defining passenger
automobile) is amended--
(1) by striking clause (ii) and inserting the following new
clause:
``(ii)(I) which is rated at 6,000 pounds unloaded gross
vehicle weight or less, or
``(II) which is rated at more than 6,000 pounds but not
more than 14,000 pounds gross vehicle weight.'',
(2) by striking ``clause (ii)'' in the second sentence and
inserting ``clause (ii)(I)''.
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.

SEC. 206. IDLING REDUCTION TAX CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business-related credits) is amended
by adding at the end the following new section:

``SEC. 45N. IDLING REDUCTION CREDIT.

``(a) General Rule.--For purposes of section 38, the idling
reduction tax credit determined under this section for the
taxable year is an amount equal to 25 percent of the amount
paid or incurred for each qualifying idling reduction device
placed in service by the taxpayer during the taxable year.
``(b) Limitation.--The maximum amount allowed as a credit
under subsection (a) shall not exceed $1,000 per device.
``(c) Definitions.--For purposes of subsection (a)--
``(1) Qualifying idling reduction device.--The term
`qualifying idling reduction device' means any device or
system of devices that--
``(A) is installed on a heavy-duty diesel-powered on-
highway vehicle,
``(B) is designed to provide to such vehicle those services
(such as heat, air conditioning, or electricity) that would
otherwise require the operation of the main drive engine
while the vehicle is temporarily parked or remains
stationary,
``(C) the original use of which commences with the
taxpayer,
``(D) is acquired for use by the taxpayer and not for
resale, and
``(E) is certified by the Secretary of Energy, in
consultation with the Administrator of the Environmental
Protection Agency and the Secretary of Transportation, to
reduce long-duration idling of such vehicle at a motor
vehicle rest stop or other location where such vehicles are
temporarily parked or remain stationary.
``(2) Heavy-duty diesel-powered on-highway vehicle.--The
term `heavy-duty diesel-powered on-highway vehicle' means any
vehicle, machine, tractor, trailer, or semi-trailer propelled
or drawn by mechanical power and used upon the highways in
the transportation of passengers or property, or any
combination thereof determined by the Federal Highway
Administration.
``(3) Long-duration idling.--The term `long-duration
idling' means the operation of a main drive engine, for a
period greater than 15 consecutive minutes, where the main
drive engine is not engaged in gear. Such term does not apply
to routine stoppages associated with traffic movement or
congestion.
``(d) No Double Benefit.--For purposes of this section--
``(1) Reduction in basis.--If a credit is determined under
this section with respect to any property by reason of
expenditures described in subsection (a), the basis of such
property shall be reduced by the amount of the credit so
determined.
``(2) Other deductions and credits.--No deduction or credit
shall be allowed under any other provision of this chapter
with respect to the amount of the credit determined under
this section.
``(e) Election Not to Claim Credit.--This section shall not
apply to a taxpayer for any taxable year if such taxpayer
elects to have this section not apply for such taxable year.
``(f) Termination.--This section shall not apply to any
property placed in service after December 31, 2010.''.
(b) Credit to Be Part of General Business Credit.--
Subsection (b) of section 38 (relating to general business
credit) is amended by striking ``and'' at the end of
paragraph (29), by striking the period at the end of
paragraph (30) and inserting ``, plus'' , and by adding at
the end the following new paragraph:
``(31) the idling reduction tax credit determined under
section 45N(a).''.
(c) Conforming Amendments.--
(1) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 45M the following new item:

``Sec. 45N. Idling reduction credit''.
(2) Section 1016(a), as amended by this Act, is amended by
striking ``and'' at the end of paragraph (37), by striking
the period at the end of paragraph (38) and inserting ``,
and'', and by adding at the end the following:
``(39) in the case of a facility with respect to which a
credit was allowed under section 45N, to the extent provided
in section 45N(d)(A).''.
(3) Section 6501(m) is amended by inserting ``45N(e),''
after ``45D(c)(4),''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
(e) Determination of Certification Standards by Secretary
of Energy for Certifying Idling Reduction Devices.--Not later
than 6 months after the date of the enactment of this Act and
in order to reduce air pollution and fuel consumption, the
Secretary of Energy, in consultation with the Administrator
of the Environmental Protection Agency and the Secretary of
Transportation, shall publish the standards under which the
Secretary, in consultation with the Administrator of the
Environmental Protection Agency and the Secretary of
Transportation, will, for purposes of section 45N of the
Internal Revenue Code of 1986 (as added by this section),
certify the idling reduction devices which will reduce long-
duration idling of vehicles at motor vehicle rest stops or
other locations where such vehicles are temporarily parked or
remain stationary in order to reduce air pollution and fuel
consumption.

TITLE III--ADDITIONAL INCENTIVES

SEC. 301. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM
PROPERTY.

(a) In General.--Section 48(a)(3)(A) (defining energy
property) is by striking ``or'' at the end of clause (iii),
by inserting ``or'' at the end of clause (iv), and by adding
at the end the following new clause:
``(v) combined heat and power system property,''.
(b) Combined Heat and Power System Property.--Section 48 is
amended by adding at the end the following new subsection:
``(d) Combined Heat and Power System Property.--For
purposes of subsection (a)(3)(A)(v)--
``(1) Combined heat and power system property.--The term
`combined heat and power system property' means property
comprising a system--
``(A) which uses the same energy source for the
simultaneous or sequential generation of electrical power,
mechanical shaft power, or both, in combination with the
generation of steam or other forms of useful thermal energy
(including heating and cooling applications),
``(B) which has an electrical capacity of not more than 15
megawatts or a mechanical energy capacity of not more than
2,000 horsepower or an equivalent combination of electrical
and mechanical energy capacities,
``(C) which produces--
``(i) at least 20 percent of its total useful energy in the
form of thermal energy which is not used to produce
electrical or mechanical power (or combination thereof), and
``(ii) at least 20 percent of its total useful energy in
the form of electrical or mechanical power (or combination
thereof),
``(D) the energy efficiency percentage of which exceeds 60
percent, and
``(E) which is placed in service before January 1, 2011.
``(2) Special rules.--
``(A) Energy efficiency percentage.--For purposes of this
subsection, the energy efficiency percentage of a system is
the fraction--

[[Page S4071]]

``(i) the numerator of which is the total useful
electrical, thermal, and mechanical power produced by the
system at normal operating rates, and expected to be consumed
in its normal application, and
``(ii) the denominator of which is the higher heating value
of the primary fuel sources for the system.
``(B) Determinations made on btu basis.--The energy
efficiency percentage and the percentages under paragraph
(1)(C) shall be determined on a Btu basis.
``(C) Input and output property not included.--The term
`combined heat and power system property' does not include
property used to transport the energy source to the facility
or to distribute energy produced by the facility.
``(D) Certain exception not to apply.--The first sentence
of the matter in subsection (a)(3) which follows subparagraph
(D) thereof shall not apply to combined heat and power system
property.
``(3) Systems using bagasse.--If a system is designed to
use bagasse for at least 90 percent of the energy source--
``(A) paragraph (1)(D) shall not apply, but
``(B) the amount of credit determined under subsection (a)
with respect to such system shall not exceed the amount which
bears the same ratio to such amount of credit (determined
without regard to this paragraph) as the energy efficiency
percentage of such system bears to 60 percent.
``(4) Nonapplication of certain rules.--For purposes of
determining if the term `combined heat and power system
property' includes technologies which generate electricity or
mechanical power using back-pressure steam turbines in place
of existing pressure-reducing valves or which make use of
waste heat from industrial processes such as by using organic
rankin, stirling, or kalina heat engine systems, paragraph
(1) shall be applied without regard to subparagraphs (C) and
(D) thereof .''.
(c) Effective Date.--The amendments made by this section
shall apply to periods after December 31, 2006, in taxable
years ending after such date, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986
(as in effect on the day before the date of the enactment of
the Revenue Reconciliation Act of 1990).

SEC. 302. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT
DEVICES.

(a) In General.--Section 168(e)(3)(A) (defining 3-year
property) is amended by striking ``and'' at the end of clause
(ii), by striking the period at the end of clause (iii) and
inserting ``, and'', and by adding at the end the following
new clause:
``(iv) any qualified energy management device.''.
(b) Definition of Qualified Energy Management Device.--
Section 168(i) (relating to definitions and special rules) is
amended by inserting at the end the following new paragraph:
``(18) Qualified energy management device.--
``(A) In general.--The term `qualified energy management
device' means any energy management device which is placed in
service before January 1, 2011, by a taxpayer who is a
supplier of electric energy or a provider of electric energy
services.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device' means
any meter or metering device which is used by the taxpayer--
``(i) to measure and record electricity usage data on a
time-differentiated basis in at least 4 separate time
segments per day, and
``(ii) to provide such data on at least a monthly basis to
both consumers and the taxpayer.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.

SEC. 303. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED WATER SUBMETERING
DEVICES.

(a) In General.--Section 168(e)(3)(A) (defining 3-year
property), as amended by this Act, is amended by striking
``and'' at the end of clause (iii), by striking the period at
the end of clause (iv) and inserting ``, and'', and by adding
at the end the following new clause:
``(v) any qualified water submetering device.''.
(b) Definition of Qualified Water Submetering Device.--
Section 168(i) (relating to definitions and special rules),
as amended by this Act, is amended by inserting at the end
the following new paragraph:
``(19) Qualified water submetering device.--
``(A) In general.--The term `qualified water submetering
device' means any water submetering device which is placed in
service before January 1, 2011, by a taxpayer who is an
eligible resupplier with respect to the unit for which the
device is placed in service.
``(B) Water submetering device.--For purposes of this
paragraph, the term `water submetering device' means any
submetering device which is used by the taxpayer--
``(i) to measure and record water usage data, and
``(ii) to provide such data on at least a monthly basis to
both consumers and the taxpayer.
``(C) Eligible resupplier.--For purposes of subparagraph
(A), the term `eligible resupplier' means any taxpayer who
purchases and installs qualified water submetering devices in
every unit in any multi-unit property.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.

TITLE IV--REVENUE PROVISIONS

SEC. 401. REVALUATION OF LIFO INVENTORIES OF LARGE INTEGRATED
OIL COMPANIES.

(a) General Rule.--Notwithstanding any other provision of
law, if a taxpayer is an applicable integrated oil company
for its last taxable year ending in calendar year 2005, the
taxpayer shall--
(1) increase, effective as of the close of such taxable
year, the value of each historic LIFO layer of inventories of
crude oil, natural gas, or any other petroleum product
(within the meaning of section 4611) by the layer adjustment
amount, and
(2) decrease its cost of goods sold for such taxable year
by the aggregate amount of the increases under paragraph (1).

If the aggregate amount of the increases under paragraph (1)
exceed the taxpayer's cost of goods sold for such taxable
year, the taxpayer's gross income for such taxable year shall
be increased by the amount of such excess.
(b) Layer Adjustment Amount.--For purposes of this
section--
(1) In general.--The term ``layer adjustment amount''
means, with respect to any historic LIFO layer, the product
of--
(A) $18.75, and
(B) the number of barrels of crude oil (or in the case of
natural gas or other petroleum products, the number of
barrel-of-oil equivalents) represented by the layer.
(2) Barrel-of-oil equivalent.--The term ``barrel-of-oil
equivalent'' has the meaning given such term by section
29(d)(5) (as in effect before its redesignation by the Energy
Tax Incentives Act of 2005).
(c) Application of Requirement.--
(1) No change in method of accounting.--Any adjustment
required by this section shall not be treated as a change in
method of accounting.
(2) Underpayments of estimated tax.--No addition to the tax
shall be made under section 6655 of the Internal Revenue Code
of 1986 (relating to failure by corporation to pay estimated
tax) with respect to any underpayment of an installment
required to be paid with respect to the taxable year
described in subsection (a) to the extent such underpayment
was created or increased by this section.
(d) Applicable Integrated Oil Company.--For purposes of
this section, the term ``applicable integrated oil company''
means an integrated oil company (as defined in section
291(b)(4) of the Internal Revenue Code of 1986) which has an
average daily worldwide production of crude oil of at least
500,000 barrels for the taxable year and which had gross
receipts in excess of $1,000,000,000 for its last taxable
year ending during calendar year 2005. For purposes of this
subsection all persons treated as a single employer under
subsections (a) and (b) of section 52 of the Internal Revenue
Code of 1986 shall be treated as 1 person and, in the case of
a short taxable year, the rule under section 448(c)(3)(B)
shall apply.

SEC. 402. ELIMINATION OF AMORTIZATION OF GEOLOGICAL AND
GEOPHYSICAL EXPENDITURES FOR MAJOR INTEGRATED
OIL COMPANIES.

(a) In General.--Section 167(h) is amended by adding at the
end the following new paragraph:
``(5) Nonapplication to major integrated oil companies.--
This subsection shall not apply with respect to any expenses
paid or incurred for any taxable year by any integrated oil
company (as defined in section 291(b)(4)) which has an
average daily worldwide production of crude oil of at least
500,000 barrels for such taxable year.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the amendment made by
section 1329(a) of the Energy Policy Act of 2005.

SEC. 403. MODIFICATIONS OF FOREIGN TAX CREDIT RULES
APPLICABLE TO LARGE INTEGRATED OIL COMPANIES
WHICH ARE DUAL CAPACITY TAXPAYERS.

(a) In General.--Section 901 (relating to credit for taxes
of foreign countries and of possessions of the United States)
is amended by redesignating subsection (m) as (n) and by
inserting after subsection (l) the following new subsection:
``(m) Special Rules Relating to Large Integrated Oil
Companies Which Are Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of
this chapter, any amount paid or accrued by a dual capacity
taxpayer which is a large integrated oil company to a foreign
country or possession of the United States for any period
shall not be considered a tax--
``(A) if, for such period, the foreign country or
possession does not impose a generally applicable income tax,
or
``(B) to the extent such amount exceeds the amount
(determined in accordance with regulations) which--
``(i) is paid by such dual capacity taxpayer pursuant to
the generally applicable income tax imposed by the country or
possession, or
``(ii) would be paid if the generally applicable income tax
imposed by the country or

[[Page S4072]]

possession were applicable to such dual capacity taxpayer.

Nothing in this paragraph shall be construed to imply the
proper treatment of any such amount not in excess of the
amount determined under subparagraph (B).
``(2) Dual capacity taxpayer.--For purposes of this
subsection, the term `dual capacity taxpayer' means, with
respect to any foreign country or possession of the United
States, a person who--
``(A) is subject to a levy of such country or possession,
and
``(B) receives (or will receive) directly or indirectly a
specific economic benefit (as determined in accordance with
regulations) from such country or possession.
``(3) Generally applicable income tax.--For purposes of
this subsection--
``(A) In general.--The term `generally applicable income
tax' means an income tax (or a series of income taxes) which
is generally imposed under the laws of a foreign country or
possession on income derived from the conduct of a trade or
business within such country or possession.
``(B) Exceptions.--Such term shall not include a tax unless
it has substantial application, by its terms and in practice,
to--
``(i) persons who are not dual capacity taxpayers, and
``(ii) persons who are citizens or residents of the foreign
country or possession.
``(4) Large integrated oil company.--For purposes of this
subsection, the term `large integrated oil company' means,
with respect to any taxable year, an integrated oil company
(as defined in section 291(b)(4)) which--
``(A) had gross receipts in excess of $1,000,000,000 for
such taxable year, and
``(B) has an average daily worldwide production of crude
oil of at least 500,000 barrels for such taxable year.''
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxes paid or accrued in taxable years beginning
after the date of the enactment of this Act.
(2) Contrary treaty obligations upheld.--The amendments
made by this section shall not apply to the extent contrary
to any treaty obligation of the United States.
______

By Mr. BROWNBACK (for himself, Mr. Kyl and Mrs. Hutchison):
S. 2749. A bill to update the Silk Road Strategy Act of 1999 to
modify targeting of assistance in order to support the economic and
political independence of the countries of Central Asia and the South
Caucasus in recognition of political and economic changes in these
regions since enactment of the original legislation; to the Committee
on Foreign Relations.
Mr. BROWNBACK. Mr. President, I rise to introduce the Silk Road
Strategy Act of 2006. Joining me as original cosponsors are Senators
Kyl and Hutchison. I would like to extend my thanks to both of my
colleagues and their staff for their assistance and guidance on many of
the provisions in the bill.
The original Silk Road Strategy Act of 1999 saw the countries of the
Caucasus and Central Asia--specifically, Armenia, Azerbaijan, Georgia,
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan--as a
distinct region bound by history and common interests with a shared
potential that was of critical importance to the United States.
The goals of that legislation were as follows: to promote
independent, democratic government; to promote the protection of human
rights, tolerance, and pluralism; to aid in the resolution of conflicts
and support political, economic, and security cooperation in order to
foster regional stability and economic interdependence; to promote
financial and economic development based on market principles; to aid
in the development of communications, transportation, health and human
services infrastructure; to promote and protect the interests of U.S.
businesses and investments.
These basic policy goals have not changed; however, historic events
since 1999 have had a significant impact on the region's political
systems, economic conditions, and security situation which affect U.S.
perceptions of and interests in the region. These changes include: the
September 11, 2001 terrorist attack on the United States, which
clarified the nature and source of the key threats facing this country;
the Operation Enduring Freedom in Afghanistan and the removal of the
Taliban regime; the series of ``colored revolutions'' in Georgia,
Ukraine and Kyrgyzstan; Deteriorating relations between the U.S. and
certain regional leaders, especially Uzbekistan's President Islam
Karimov, and the closure of the U.S. base in that country; the growing
influence of regional powers, namely Russia and China; greater U.S. oil
and gas interests in the Caspian region; and the threat posed by Iran,
which is seeking to develop a nuclear potential.

In light of these changes, the Silk Road Act needs to be updated and
revised to better address some of the new challenges the U.S. faces in
its relations with Central Asia and the Caucasus.
The U.S.'s vital interests in the Caspian region include: ensuring
the independence and security of Azerbaijan and Georgia, through which
critical oil and gas pipelines transit; containing Iran; ensuring
access to oil and gas reserves; maintaining good relations with
Kazakhstan; promoting peaceful resolution of conflicts; and keeping
Russian geopolitical ambitions in check.
Further East, U.S. interests include: helping Kyrgyzstan to make its
Tulip Revolution a success; the political stabilization of Afghanistan
and enhancement of its security by defeating the Taliban and Al Qaeda
and its satellite organizations; political reform and liberalization in
the countries of Central Asia to neutralize radical Islamic movements,
such as Hizb-ut- Tahrir al-Islami, HUT--Islamic Army of Liberation;
reduction of drug production and exports; creation and/or support of
the U.S. military base network; and social and economic development in
the states of Central Asia.
To these ends, among other priorities, this bill emphasizes the
importance of East-West gas and oil pipelines, such as the Baku-
Tbilisi-Ceyhan pipeline, BTC. BTC ensures Azerbaijan's security and
economic future, and binds the country with neighboring Georgia and
Turkey, anchoring Azerbaijan in the network of Western states and
institutions.
The bill also includes Afghanistan as a Silk Road country and
promotes the integration of Afghanistan with neighboring Central Asian
states in terms of security, trade, infrastructure and energy grids.
In all the states of Central Asia and the Caucasus, it is critical to
promote democratic development. Among this bill's initiatives are calls
for supporting independent media outlets, especially electronic media,
and also for satellite TV programming, to provide authoritative news
and more diverse opinions than are otherwise available. Specifically,
it supports satellite TV broadcasting into Uzbekistan, Turkmenistan and
Iran and the activities of their diasporas in the United States.
Furthermore, the bill offers assistance for the establishment of civil
service institutes to train civil servants at all levels in the rule of
law, conduct of elections, respect for citizens' rights, and the needs
of a market economy.
No less important is the need to accelerate and broaden economic
reform and modernization in the Silk Road countries. Accordingly, this
bill provides assistance in the privatization of state enterprises and
deregulation of the economy.
The bill also calls for assistance with the establishment of the
Caspian Bank of Reconstruction and Development, CBRD, to help Silk Road
states address problems caused by increased revenues from energy
exports, and dangers to macroeconomic stability and overheating of the
economy infrastructure, as well as promote development in the region.
In light of Trans-Caspian Oil and Gas Pipelines, this bill encourages
the governments of Azerbaijan, Kazakhstan and especially Turkmenistan
to improve their business climate and investor confidence by fully
disclosing their internationally audited hydrocarbon reserve.
The bill strongly supports activities that promote the participation
of U.S. companies and investors in the planning, financing, and
construction of infrastructure for communications, transportation,
including air transportation, and energy and trade including highways,
railroads, port facilities, shipping, banking, insurance,
telecommunications networks, and gas and oil pipelines.
Furthermore, the bill would assist in the removal of legal and
institutional barriers to continental and regional trade and the
harmonization of border and tariff regimes, including improved
mechanisms for transit through Pakistan to Afghanistan and the rest of
Central Asia.

[[Page S4073]]

With respect to the World Trade Organization, the bill offers support
to Silk Road countries seeking WTO accession, providing assistance in
reform as needed. Recognizing that PNTR status, through graduation from
the Jackson-Vanik Amendment of 1974 Trade Act, and WTO membership have
been extended to Armenia, Georgia and Kyrgyzstan, the bill calls for
extending the same status to the other two most advanced economies of
the region, Azerbaijan and Kazakhstan, by graduating them from the
Jackson-Vanik Amendment, extending PNTR status and aiding in WTO
accession. But before that support is offered, it is important for the
two countries to demonstrate that they are capable of dealing with the
demands of a vibrant economy in a democratic setting.
A detailed examination of this bill will reveal many more
initiatives. But as you can see, Mr. President, the Silk Road Strategy
Act of 2006 takes a comprehensive approach to the region, encompassing
security, economic development, democratic governance and human rights.
I believe it targets the key issues that U.S. policymakers must address
in our ever more important effort to establish solid, long-lasting
relationships with the countries of the Silk Road. I hope my colleagues
will support this bill and I look forward to discussing it with them.
______

By Mr. DeMINT:
S. 2750. A bill to improve access to emergency medical services
through medical liability reform and additional Medicare payments; to
the Committee on Finance.
Mr. DeMINT. Mr. President, I rise to introduce legislation to
strengthen our nation's emergency departments, which are the backbone
of our health care safety net.
Events of recent years--9/11, Hurricanes Katrina and Rita--have
allowed all of us to see our emergency departments in action, 24 hours
a day, 7 days a week. With every natural disaster or terrorist attack,
emergency physicians, on-call specialists and nurses are on the front
lines. Many times, it's their expertise that recognizes a problem. For
example, it was the diagnosis and prompt communication of the incidence
of anthrax that prevented more deaths a couple years ago here in D.C.
Likewise, should we face pandemic influenza, it is likely to be
discovered first in our emergency rooms.
Federal law requires that each person who comes to an emergency
department be stabilized. Yet health plans are paying less and less of
this cost, and many of the 45 million patients without health insurance
can't pay at all. In fact, more than one-third of all emergency
department patients are uninsured or are Medicaid or SCHIP enrollees.
This results in huge amounts of uncompensated care in our nation's
emergency departments, which threatens their viability and everyone's
access to emergency care.
Unfortunately, America's emergency patients are suffering because
emergency departments are not supported well enough to handle day-to-
day emergencies, let alone a pandemic flu or terrorist attack. Patients
wait hours to see physicians, ``boarding'' sometimes for days in
emergency departments and diverted in ambulances to other hospitals.
This gridlock threatens access to emergency care for everyone--both
insured and uninsured.
Emergency departments are under-funded and suffer from severe
staffing shortages. A new study just released by the Robert Wood
Johnson Foundation and the American College of Emergency Physicians
found that three-fourths of emergency medical directors reported
inadequate on-call specialist coverage, compared with two-thirds in
2004: a sure sign that a bad situation is getting even worse.
Frivolous lawsuits and the nation's broken medical liability system
are also driving up the costs of health care for everyone and threaten
to leave already disadvantaged patients without access to necessary
health care services.
But, even in the best of times, the number of visits to emergency
departments continue to increase, while the number of emergency
departments in hospitals continue to decrease. In fact, we've even seen
a number of emergency departments have to close their doors.
Surprisingly, there are no standard measures to report the extent of
overcrowding in emergency departments. During the last Congress, the
Government Accountability Office (GAO) surveyed hospital emergency
departments and reported back to Congress--providing us with the data
needed to begin to address these issues.
The GAO report told Congress that patient ``boarding'' in the
emergency department was the most common factor associated with
overcrowding. The term ``boarding'' refers to those patients who have
been admitted to the hospital but have not yet been moved from the
emergency department to an inpatient hospital bed. When these patients
remain in the emergency department long after the decision to admit
them is made (at times on gurneys in halls and elsewhere)--it
diminishes the space to care for other patients, and adversely impacts
the staff and other resources.
My bill requires Medicare to establish regulations to reduce or
eliminate overcrowding and boarding of emergency department patients.
We have the data to recognize this problem. Hopefully, national
standards coupled with incentive payments for those hospitals
implementing the standards and documenting improvement will improve the
quality of care in this country.
My legislation, the ``Access to Emergency Medical Services Act,''
directly addresses the issues of low reimbursement, emergency
department overcrowding, and increasing medical liability insurance
costs.
First, my bill expands the current liability protection granted to
commissioned officers and employees of the Public Health Service to
include Medicare participating hospitals or emergency departments
subject to the Emergency Medical Treatment and Labor Act (EMTALA). This
would also cover physicians and physician groups employed by, under
contract, or on-call for duty to stabilize an individual with an
emergency medical condition. This safeguard does not prevent someone
from taking legal action. Rather, the bill requires that any tort or
medical liability case must be brought against the United States, which
in turn must defend any civil action or proceeding. Awards for
malpractice judgments would be paid from a specific fund established
for this purpose.
Second, my bill increases physician payments by 10% for services
provided to Medicare beneficiaries in the emergency department of a
hospital or critical access hospital. EMTALA is an unfunded federal
mandate. Current law does not require health insurance companies,
governments or individuals to pay for services that have been provided.
As a result, emergency physicians bear the brunt of uncompensated care.
This increased reimbursement recognizes and funds this mandate, and I
hope it will go a long way toward improving physician recruitment and
retention.
Finally, my bill provides financial incentive payments to hospitals
that meet standards for prompt admissions of emergency department
patients requiring inpatient hospital services. The bill would increase
payments to these hospitals by 10 percent for Medicare beneficiaries'
emergency department visits. The payments would be made only if the
hospital certifies, subject to audit, that it met the standards for
prompt admission.
The issues addressed by my bill impact each one of us. When you, or a
family member, need the emergency room, you don't want to worry about
it being crowded, closed, under-funded, or not having the staff it
needs.
Emergency physicians, nurses and on-call specialists are the heroes
in America's hospitals, working under incredibly difficult conditions
on patients who need critical attention. Congress needs to step up and
take action. The ``Access to Emergency Medical Services Act'' is an
important first step to address these issues.
______

By Mr. NELSON of Nebraska (for himself and Mr. Domenici):
S. 2751. A bill to strengthen the National Oceanic and Atmospheric
Administration's drought monitoring and forecasting capabilities; to
the Committee on Commerce, Science, and Transportation.
Mr. NELSON of Nebraska. Mr. President, I rise today to introduce
legislation that would establish the ``National Integrated Drought
Information System'' (NIDIS) within the National

[[Page S4074]]

Oceanic and Atmospheric Administration (NOAA) for purposes of improving
drought monitoring and forecasting capabilities.
Over the last decade, several severe and long-term droughts have
occurred in the United States. Recent severe drought conditions across
the Nation and in particular in the West have created life-threatening
situations, as well as financial burdens for both government and
individuals.
Extremely dry conditions have led to numerous forest and rangeland
fires, burning hundreds of thousands of acres of land, destroying homes
and communities, and eliminating critical habitats for wildlife and
grazing lands for livestock. The subsequent ash and sediment loading
threatens the health of our streams. In addition to the millions of
board-feet of timber lost, these fires have cost hundreds of millions
of dollars to fight and have put thousands of lives at risk.
The droughts have caused shortages of grain and other agricultural
products resulting in soaring prices that will be passed on to
consumers. In addition, deteriorating soil conditions and lack of
forage are devastating the farm and ranching communities. The droughts
have negatively affected livestock market prices and caused the
premature selloffs of herds.
The droughts have threatened municipal water supplies, causing many
communities to develop new water management plans which institute water
restrictions and other water conservation measures. Drought causes
social, economic and environmental consequences including negative
effects on commerce and industry, tourism, air, water and other natural
resources, and quality of life for our citizens, ranging from limits on
recreational opportunities to loss of employment.
The fiscal impacts of drought on individuals and governments are
significant. According to NOAA, the federal government spends on
average $6-8 billion per year on drought. The most devastating of these
was the 1988 drought in the central and eastern U.S. which caused
severe losses to agriculture and related industries totaling $40
billion and an estimated 5,000-10,000 deaths.
The issue of drought is one I have been involved with for many years.
Fortunately, drought conditions are improving in Nebraska, but we have
endured a number of very difficult years struggling with the impact
drought has had on our economy and environment and the social
implications that go along with a disaster like this.
One of my biggest frustrations the past few years as an elected
official, trying to help the areas of my State devastated by drought,
has been making people understand that this drought really was a
disaster--as much as a hurricane, or an earthquake, or a tornado.
I even named the drought in Nebraska--Drought David--in an effort to
crystallize it so people could see that it is the same kind of
experience as any other natural disaster.
Unlike other natural disasters, however, droughts are much more
difficult to identify. It is hard to miss an oncoming flood or
tornado--or their immediate aftermath. Drought, and its effects, is
much harder to quantify. It develops slowly; it doesn't necessarily
have a beginning point or an ending point but it spans over an extended
period of time.
Because it is difficult to forecast and plan for droughts, it is
especially important that we have programs in place such as the
National Drought Mitigation Center at the University of Nebraska-
Lincoln. The Drought Mitigation Center, among other things, maintains a
web-based information clearinghouse, provides drought monitoring,
prepares the weekly U.S. Drought Monitor which covers all 50 States,
and develops drought policy and planning techniques. I believe it is
crucial to encourage more investment in research programs such as the
Drought Mitigation Center.
The research done upfront in monitoring drought trends will help our
capabilities to mitigate and respond to its effects in a much more
effective manner. It is cost effective to support programs such as the
National Drought Mitigation Center and I advocate for continued support
for this important program.
The National Drought Policy Commission stated in their May 2000
report to Congress that ``Drought is the most obstinate and pernicious
of the dramatic events that Nature conjures up. It can last longer and
extend across larger areas than hurricanes, tornadoes, floods and
earthquakes . . . causing hundreds of millions of dollars in losses,
and dashing hopes and dreams.'' Among its recommendations to move the
country toward a more proactive approach to drought preparedness and
response, the Commission called for improved ``collaboration among
scientists and managers to enhance the effectiveness of observation
networks, monitoring, prediction, information delivery, and applied
research and to foster public understanding of and preparedness for
drought.''
The call for improved drought monitoring and forecasting has also
been advocated by the Western Governors' Association (WGA). In the WGA
policy resolution adopted in June 2005, ``Future Management of
Drought,'' the Governors state that NIDIS ``would provide water users
across the board--farmers, ranchers, utilities, tribes, land managers,
business owners, recreationalists, wildlife managers, and decision-
makers at all levels of government--with the ability to assess their
drought risk in real time and before the onset of drought, in order to
make informed and timely decisions that may mitigate a drought's
impacts. The Governors urge Congress and the President to authorize
NIDIS and provide funding for its implementation.''
NIDIS has also become a key component of the multi-national effort to
create the Global Earth Observation System of Systems (GEOSS), a
mechanism for linking the individual networks of satellites, ocean
buoys, weather stations and other instruments scattered across the
globe. The U.S. Integrated Earth Observation System (IEOS), the U.S.
contribution to GEOSS, has identified NIDIS as one of six ``near-term
opportunities'' in their Strategic Plan.
Finally, the Administration supports this program. Funding for NIDIS
is included in the President's FY 2007 budget request.
The National Integrated Drought Information System Act of 2006 that
Senator Domenici and I are introducing today would authorize the much
needed drought early warning system envisioned by the National Drought
Policy Commission, the Western Governors' Association, and the
Integrated Earth Observation System. If enacted, this bill will allow
our Nation to become much more proactive in mitigating and avoiding the
costly impacts and contentious conflicts that so often happen today
when water shortages and droughts occur.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 2751

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``National Integrated Drought
Information System Act of 2006''.

SEC. 2. NOAA PROGRAM TO MONITOR AND FORECAST DROUGHTS.

(a) In General.--The Under Secretary of Commerce for Oceans
and Atmosphere shall establish a National Integrated Drought
Information System within the National Oceanic and
Atmospheric Administration.
(b) System Functions.--The System shall--
(1) provide an effective drought early warning system
that--
(A) is a comprehensive system that collects and integrates
information on the key indicators of drought in order to make
usable, reliable, and timely drought forecasts and
assessments of drought, including assessments of the severity
of drought conditions and impacts;
(B) communicates drought forecasts, drought conditions, and
drought impacts on an ongoing basis to--
(i) decisionmakers at the Federal, regional, State, tribal,
and local levels of government;
(ii) the private sector; and
(iii) the public,

in order to facilitate better informed, more timely decisions
and support drought mitigation and preparedness programs that
will reduce impacts and costs; and
(C) includes timely (where possible real-time) data,
information, and products that reflect local, regional, and
State differences in drought conditions; and
(2) coordinate, and integrate as practicable, Federal
research in support of a drought early warning system,
improved

[[Page S4075]]

forecasts, and the development of mitigation and preparedness
tools and techniques;
(3) build upon existing drought forecasting, assessment,
and mitigation programs at the National Oceanic and
Atmospheric Administration, including programs conducted in
partnership with other Federal departments and agencies and
existing research partnerships, such as that with the
National Drought Mitigation Center at the University of
Nebraska-Lincoln; and
(4) be incorporated into the Global Earth Observation
System of Systems.
(c) Consultation.--The Under Secretary shall consult with
relevant Federal, regional, State, tribal, and local
government agencies, research institutions, and the private
sector in the development of the National Integrated Drought
Information System.
(d) Cooperation From Other Federal Agencies.--Each Federal
agency shall cooperate as appropriate with the Under
Secretary in carrying out this Act.
(e) Drought Defined.--In this section, the term ``drought''
means a deficiency in precipitation--
(1) that leads to a deficiency in surface or sub-surface
water supplies (including rivers, streams, wetlands, ground
water, soil moisture, reservoir supplies, lake levels, and
snow pack); and
(2) that causes or may cause--
(A) substantial economic or social impacts; or
(B) substantial physical damage or injury to individuals,
property, or the environment.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary of
Commerce for use by the Under Secretary of Commerce for
Oceans and Atmosphere in implementing section 2--
(1) $8,000,000 for fiscal year 2007;
(2) $9,000,000 for fiscal year 2008;
(3) $10,000,000 for each of fiscal years 2009 and 2010; and
(4) $11,000,000 for each of fiscal years 2011 and 2012.

Mr. DOMENICI. Mr. President, I rise today to join Senator Nelson of
Nebraska to introduce the National Integrated Drought Information
System Act of 2006. I would like to thank Senator Ben Nelson; his
strong leadership and hard work on this bill has been key in bringing
us forward on this important issue.
Drought is a unique emergency situation; it creeps in unlike other
abrupt weather disasters. Without a national drought policy we
constantly live not knowing what the next year will bring.
Unfortunately, when we find ourselves facing a drought, towns often
scramble to drill new water wells, fires often sweep across bone dry
forests and farmers and ranchers are forced to watch their way of life
blow away with the dust. This year, my home State of New Mexico is
facing a very real threat of devastating drought, as our snow pack was
far below average.
We must be vigilant and prepare ourselves for quick action as this
next drought cycle begins. Better planning on our part could limit some
of the damage felt by drought. I submit that this bill is the exact
tool needed for facilitating better planning.
This Act establishes the National Integrated Drought Information
System within the National Oceanic and Atmospheric Administration to
improve national drought preparedness, information collection and
analysis. This information system collects and integrates information
on key indicators of drought in order to make usable, reliable and
timely drought forecasts and assessments. This information will be
disseminated to federal, state, tribal and local decision makers in
order to better prepare them for the effects of drought.
The impacts of drought are also very costly. According to NOAA, there
have been 12 different drought events since 1980 that resulted in
damages and costs exceeding $1 billion each. In 2000, severe drought in
the South-Central and Southeastern states caused losses to agriculture
and related industries of over $4 billion. Western wildfires that year
totaled over $2 billion in damages. The Eastern drought in 1999 led to
$1 billion in losses. These are just a few of the statistics.
On April 18, 2006, the Texas Agriculture Experiment Station predicted
a dramatic decrease in water flows and reservoir storage throughout New
Mexico. Early predictions indicate that river water supply will be at
54 percent due primarily to receiving half our annual snow pack and
above average temperatures in my state. Additionally, several of our
reservoirs are at severely diminished capacity. Specifically, the
Elephant Butte, El Vado and Caballo reservoirs will all be below 10
percent of capacity by Labor Day. Several New Mexico communities have
already begun to institute water restrictions in preparation for what
is predicted to be one of the worst years on record. As this drought
persists, I want to ensure each New Mexican that I am committed to
doing everything possible to make sure they have the tools and
information they need to make the best decisions.
While drought affects the economic and environmental well-being of
the entire nation, the United States has lacked a cohesive strategy for
dealing with serious drought emergencies. As many of you know, the
impact of drought emerges gradually rather than suddenly, as is the
case with other natural disasters.
I am pleased to be following through on what I started in 1997. The
bill that we are introducing today is the next step in implementing a
national, cohesive drought policy. The bill recognizes that drought is
a recurring phenomenon that causes serious economic and environmental
loss and that a national drought policy is needed to ensure an
integrated, coordinated strategy.
______

By Mr. AKAKA:
S. 2753. A bill to require a program to improve the provision of
caregiver assistance services for veterans; to the Committee on
Veterans' Affairs.
Mr. AKAKA. Mr. President, I rise proudly today to introduce
legislation that would provide assistance to those who care for our
Nation's veterans. These caregivers provide a great service to our
country and play a vital role in providing non-institutional long-term
health care for veterans.
There is deep concern regarding the anticipated number of veterans
that will need long-term care by the year 2010. In 2005, there were
almost one million veterans age 85 and over, and by 2010, it is
anticipated that the number of veterans in this age category will grow
to 1.3 million. The Department of Veterans Affairs (VA) will be faced
with a crisis related to the demand for care of this population, and we
must help VA prepare for this situation.
VA has been disturbingly inactive in instituting the long-term care
provisions of the 1999 Millennium Health Care Act. The General
Accounting Office has been the most critical, citing major
inconsistencies across the VA system in the implementation of non-
institutional care. During the Committee on Veterans' Affairs'
oversight work in Hawaii, we found that the Kauai clinic lacked a home
care specialist and the Maui clinic was arbitrarily limiting non-
institutional care. Caregivers are crucial in bridging these gaps in
non-institutional long-term care services.
With more veterans returning from combat with severely debilitating
injuries, young spouses and parents have been forced to take on an
unexpected role as caregivers. Many have interrupted their own careers
to dedicate time and attention to the care and rehabilitation of loved
ones. These caregivers do not plan for this to happen and are not
prepared mentally or financially for their new role. Therefore, we must
protect, educate, and lend a helping hand to the caregivers who take on
the responsibility and costly burden of caring for veterans, both young
and old.
This legislation serves to provide comprehensive assistance to these
caregivers. By providing such services as respite care, caregivers can
have time to run errands and attend to their own health concerns. They
can rest easier knowing that there is someone there to care for their
disabled veteran while they are out. Another service provided through
this legislation is adult-day care for veterans. This serves a dual
purpose in that it provides short-term supervision and also gives
veterans a place to go for some camaraderie.
The last years of a veteran's life can be difficult for both the
veteran and for the caregiver. This legislation would also provide
hospice services so that this period is one of peace and comfort.
Other services that would support caregivers under this legislation
include education, training, transportation services, readjustment
services, rehabilitation services, home care services, and any other
new and innovative modalities of non-institutional long-term care.
I cannot try to quantify the invaluable service that caregivers
provide.

[[Page S4076]]

What can be done is to make funds available to carry out programs to
assist them. The legislation authorizes $10 million to be allocated to
individual medical facilities within VA, especially to those in rural
areas without a long-term care facility, based upon the proposals
submitted by the facilities. In efforts to evaluate the improvements
made in caregiver assistance services, a report shall be submitted to
Congress by the Secretary no later than a year after enactment of this
bill. The report should include information on the allocation of funds
to facilities and a description of the improvements made with the
funds.
Let us meet these caregivers halfway by giving them the assistance
they need to care for the veterans that depend on them. I ask my
colleagues to join me in supporting this effort.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 2753

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

SECTION 1. IMPROVEMENT OF SERVICES FOR CAREGIVERS OF
VETERANS.

(a) In General.--The Secretary of Veterans Affairs shall
carry out a program to expand and improve the services that
assist caregivers of veterans, including veterans of the
Global War on Terrorism.
(b) Caregiver Assistance Services.--For purposes of this
section, the term ``caregiver assistance services'' includes
the following:
(1) Adult-day health care services.
(2) Coordination of services needed by veterans, including
services for readjustment and rehabilitation.
(3) Transportation services.
(4) Caregiver support services, including education,
training, and certification of family members in caregiver
activities.
(5) Home care services.
(6) Respite care.
(7) Hospice services.
(8) Any modalities of non-institutional long-term care.
(c) Funding.--
(1) Source of funds.--In carrying out the program required
by subsection (a), the Secretary shall identify, from funds
available to the Department of Veterans Affairs for medical
care, an amount not less than $10,000,000 to be available to
carry out the program and to be allocated to facilities of
the Department pursuant to subsection (d).
(2) Minimum allocation of funds.--In identifying available
amounts pursuant to paragraph (1), the Secretary shall ensure
that, after the allocation of funds under subsection (d), the
total expenditure for programs in support of caregiver
assistance services for veterans is not less than $10,000,000
in excess of the baseline amount.
(3) Baseline amount.--For purposes of paragraph (2), the
baseline amount is the amount of the total expenditures on
programs in support of caregiver assistance services for
veterans for the most recent fiscal year for which final
expenditure amounts are known, adjusted to reflect any
subsequent increase in applicable costs to support such
services through the Veterans Health Administration.
(d) Allocation of Funds to Facilities.--The Secretary shall
allocate funds identified pursuant to subsection (c)(1) to
individual medical facilities of the Department in such
amounts as the Secretary determines appropriate based upon
proposals submitted by such facilities for the use of such
funds for improvements to the support of the provision of
caregiver assistance services for veterans. Special
consideration should be given to rural facilities, including
those without a long-term care facility of the Department.
(e) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary shall submit to the
Committee on Veterans' Affairs of the Senate and the
Committee on Veterans' Affairs of the House of
Representatives a report on the implementation of this
section. The report shall include information on the
allocation of funds to facilities of the Department under
subsection (d) and a description of the improvements made
with funds so allocated to the support of the provision of
caregiver assistance services for veterans.

____________________