[Congressional Record Volume 154, Number 32 (Wednesday, February 27, 2008)]
[House]
[Pages H1091-H1130]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RENEWABLE ENERGY AND ENERGY CONSERVATION TAX ACT OF 2008
Mr. RANGEL. Mr. Speaker, pursuant to House Resolution 1001, I call up
the bill (H.R. 5351) to amend the Internal Revenue Code of 1986 to
provide tax incentives for the production of renewable energy and
energy conservation, and ask for its immediate consideration.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5351
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 1986 CODE; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``Renewable
Energy and Energy Conservation Tax Act of 2008''.
(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 of this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--PRODUCTION INCENTIVES
Sec. 101. Extension and modification of renewable energy credit.
Sec. 102. Production credit for electricity produced from marine
renewables.
Sec. 103. Extension and modification of energy credit.
Sec. 104. New clean renewable energy bonds.
Sec. 105. Extension and modification of special rule to implement FERC
and State electric restructuring policy.
Sec. 106. Extension and modification of credit for residential energy
efficient property.
TITLE II--CONSERVATION
Subtitle A--Transportation
Part 1--Vehicles
Sec. 201. Credit for plug-in hybrid vehicles.
Sec. 202. Extension and modification of alternative fuel vehicle
refueling property credit.
Sec. 203. Modification of limitation on automobile depreciation.
Part 2--Fuels
Sec. 211. Extension and modification of credits for biodiesel and
renewable diesel.
Sec. 212. Clarification that credits for fuel are designed to provide
an incentive for United States production.
Sec. 213. Credit for production of cellulosic alcohol.
Part 3--Other Transportation Incentives
Sec. 221. Extension of transportation fringe benefit to bicycle
commuters.
Sec. 222. Restructuring of New York Liberty Zone tax credits.
Subtitle B--Other Conservation Provisions
Sec. 231. Qualified energy conservation bonds.
Sec. 232. Extension and modification of credit for nonbusiness energy
property.
Sec. 233. Extension of energy efficient commercial buildings deduction.
Sec. 234. Modifications of energy efficient appliance credit for
appliances produced after 2007.
Sec. 235. Five-year applicable recovery period for depreciation of
qualified energy management devices.
TITLE III--REVENUE PROVISIONS
Sec. 301. Limitation of deduction for income attributable to domestic
production of oil, gas, or primary products thereof.
Sec. 302. Clarification of determination of foreign oil and gas
extraction income.
Sec. 303. Time for payment of corporate estimated taxes.
TITLE IV--OTHER PROVISIONS
Subtitle A--Studies
Sec. 401. Carbon audit of the tax code.
Sec. 402. Comprehensive study of biofuels.
Subtitle B--Application of Certain Labor Standards on Projects Financed
Under Tax Credit Bonds
Sec. 411. Application of certain labor standards on projects financed
under tax credit bonds.
TITLE I--PRODUCTION INCENTIVES
SEC. 101. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY
CREDIT.
(a) Extension of Credit.--Each of the following provisions
of section 45(d) (relating to qualified facilities) is
amended by striking ``January 1, 2009'' and inserting
``January 1, 2012'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Subparagraphs (A) and (B) of paragraph (9).
(b) Modification of Credit Phaseout.--
(1) Repeal of phaseout.--Subsection (b) of section 45 is
amended--
(A) by striking paragraph (1), and
(B) by striking ``the 8 cent amount in paragraph (1),'' in
paragraph (2) thereof.
(2) Limitation based on investment in facility.--Subsection
(b) of section 45 is amended by inserting before paragraph
(2) the following new paragraph:
``(1) Limitation based on investment in facility.--
``(A) In general.--In the case of any qualified facility
originally placed in service after December 31, 2009, the
amount of the credit determined under subsection (a) for any
taxable year with respect to electricity produced at such
facility shall not exceed the product of--
``(i) the applicable percentage with respect to such
facility, multiplied by
``(ii) the eligible basis of such facility.
``(B) Carryforward of unused limitation and excess
credit.--
``(i) Unused limitation.--If the limitation imposed under
subparagraph (A) with respect to any facility for any taxable
year exceeds the prelimitation credit for such facility for
such taxable year, the limitation imposed under subparagraph
(A) with respect to such
[[Page H1092]]
facility for the succeeding taxable year shall be increased
by the amount of such excess.
``(ii) Excess credit.--If the prelimitation credit with
respect to any facility for any taxable year exceeds the
limitation imposed under subparagraph (A) with respect to
such facility for such taxable year, the credit determined
under subsection (a) with respect to such facility for the
succeeding taxable year (determined before the application of
subparagraph (A) for such succeeding taxable year) shall be
increased by the amount of such excess. With respect to any
facility, no amount may be carried forward under this clause
to any taxable year beginning after the 10-year period
described in subsection (a)(2)(A)(ii) with respect to such
facility.
``(iii) Prelimitation credit.--The term `prelimitation
credit' with respect to any facility for a taxable year means
the credit determined under subsection (a) with respect to
such facility for such taxable year, determined without
regard to subparagraph (A) and after taking into account any
increase for such taxable year under clause (ii).
``(C) Applicable percentage.--For purposes of this
paragraph--
``(i) In general.--The term `applicable percentage' means,
with respect to any facility, the appropriate percentage
prescribed by the Secretary for the month in which such
facility is originally placed in service.
``(ii) Method of prescribing applicable percentages.--The
applicable percentages prescribed by the Secretary for any
month under clause (i) shall be percentages which yield over
a 10-year period amounts of limitation under subparagraph (A)
which have a present value equal to 35 percent of the
eligible basis of the facility.
``(iii) Method of discounting.--The present value under
clause (ii) shall be determined--
``(I) as of the last day of the 1st year of the 10-year
period referred to in clause (ii),
``(II) by using a discount rate equal to the greater of 110
percent of the Federal long-term rate as in effect under
section 1274(d) for the month preceding the month for which
the applicable percentage is being prescribed, or 4.5
percent, and
``(III) by taking into account the limitation under
subparagraph (A) for any year on the last day of such year.
``(D) Eligible basis.--For purposes of this paragraph--
``(i) In general.--The term `eligible basis' means, with
respect to any facility, the sum of--
``(I) the basis of such facility determined as of the time
that such facility is originally placed in service, and
``(II) the portion of the basis of any shared qualified
property which is properly allocable to such facility under
clause (ii).
``(ii) Rules for allocation.--For purposes of subclause
(II) of clause (i), the basis of shared qualified property
shall be allocated among all qualified facilities which are
projected to be placed in service and which require
utilization of such property in proportion to projected
generation from such facilities.
``(iii) Shared qualified property.--For purposes of this
paragraph, the term `shared qualified property' means, with
respect to any facility, any property described in section
168(e)(3)(B)(vi)--
``(I) which a qualified facility will require for
utilization of such facility, and
``(II) which is not a qualified facility.
``(iv) Special rule relating to geothermal facilities.--In
the case of any qualified facility using geothermal energy to
produce electricity, the basis of such facility for purposes
of this paragraph shall be determined as though intangible
drilling and development costs described in section 263(c)
were capitalized rather than expensed.
``(E) Special rule for first and last year of credit
period.--In the case of any taxable year any portion of which
is not within the 10-year period described in subsection
(a)(2)(A)(ii) with respect to any facility, the amount of the
limitation under subparagraph (A) with respect to such
facility shall be reduced by an amount which bears the same
ratio to the amount of such limitation (determined without
regard to this subparagraph) as such portion of the taxable
year which is not within such period bears to the entire
taxable year.
``(F) Election to treat all facilities placed in service in
a year as 1 facility.--At the election of the taxpayer, all
qualified facilities which are part of the same project and
which are placed in service during the same calendar year
shall be treated for purposes of this section as 1 facility
which is placed in service at the mid-point of such year or
the first day of the following calendar year.''.
(c) Trash Facility Clarification.--Paragraph (7) of section
45(d) is amended--
(1) by striking ``facility which burns'' and inserting
``facility (other than a facility described in paragraph (6))
which uses'', and
(2) by striking ``combustion''.
(d) Expansion of Biomass Facilities.--
(1) Open-loop biomass facilities.--Paragraph (3) of section
45(d) is amended by redesignating subparagraph (B) as
subparagraph (C) and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Expansion of facility.--Such term shall include a new
unit placed in service after the date of the enactment of
this subparagraph in connection with a facility described in
subparagraph (A), but only to the extent of the increased
amount of electricity produced at the facility by reason of
such new unit.''.
(2) Closed-loop biomass facilities.--Paragraph (2) of
section 45(d) is amended by redesignating subparagraph (B) as
subparagraph (C) and inserting after subparagraph (A) the
following new subparagraph:
``(B) Expansion of facility.--Such term shall include a new
unit placed in service after the date of the enactment of
this subparagraph in connection with a facility described in
subparagraph (A)(i), but only to the extent of the increased
amount of electricity produced at the facility by reason of
such new unit.''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to property originally placed in service after December 31,
2008.
(2) Repeal of credit phaseout.--The amendments made by
subsection (b)(1) shall apply to taxable years ending after
December 31, 2008.
(3) Limitation based on investment in facility.--The
amendment made by subsection (b)(2) shall apply to property
originally placed in service after December 31, 2009.
(4) Trash facility clarification.--The amendments made by
subsection (c) shall apply to electricity produced and sold
after the date of the enactment of this Act.
(5) Expansion of biomass facilities.--The amendments made
by subsection (d) shall apply to property placed in service
after the date of the enactment of this Act.
SEC. 102. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM
MARINE RENEWABLES.
(a) In General.--Paragraph (1) of section 45(c) (relating
to resources) is amended by striking ``and'' at the end of
subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(b) Marine Renewables.--Subsection (c) of section 45 is
amended by adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and hydrokinetic
renewable energy' means energy derived from--
``(i) waves, tides, and currents in oceans, estuaries, and
tidal areas,
``(ii) free flowing water in rivers, lakes, and streams,
``(iii) free flowing water in an irrigation system, canal,
or other man-made channel, including projects that utilize
nonmechanical structures to accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean temperature (ocean thermal
energy conversion).
``(B) Exceptions.--Such term shall not include any energy
which is derived from any source which utilizes a dam,
diversionary structure (except as provided in subparagraph
(A)(iii)), or impoundment for electric power production
purposes.''.
(c) Definition of Facility.--Subsection (d) of section 45
is amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing electricity
from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the
taxpayer--
``(A) which has a nameplate capacity rating of at least 150
kilowatts, and
``(B) which is originally placed in service on or after the
date of the enactment of this paragraph and before January 1,
2012.''.
(d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is
amended by striking ``or (9)'' and inserting ``(9), or
(11)''.
(e) Coordination With Small Irrigation Power.--Paragraph
(5) of section 45(d), as amended by section 101(a), is
amended by striking ``January 1, 2012'' and inserting ``the
date of the enactment of paragraph (11)''.
(f) Effective Date.--The amendments made by this section
shall apply to electricity produced and sold after the date
of the enactment of this Act, in taxable years ending after
such date.
SEC. 103. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) (relating to energy credit) are
each amended by striking ``January 1, 2009'' and inserting
``January 1, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) (relating to qualified fuel cell property) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2016''.
(b) Allowance of Energy Credit Against Alternative Minimum
Tax.--Subparagraph (B) of section 38(c)(4) (relating to
specified credits) 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 credit determined under section 46 to the extent
that such credit is attributable to the energy credit
determined under section 48.''.
(c) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking
``$500'' and inserting ``$1,500''.
(d) Public Electric Utility Property Taken Into Account.--
[[Page H1093]]
(1) In general.--Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c) is amended by striking
subparagraph (D) and redesignating subparagraph (E) as
subparagraph (D).
(B) Paragraph (2) of section 48(c) is amended by striking
subparagraph (D) and redesignating subparagraph (E) as
subparagraph (D).
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to credits
determined under section 46 of the Internal Revenue Code of
1986 in taxable years beginning after the date of the
enactment of this Act and to carrybacks of such credits.
(3) Increase in limitation for fuel cell property.--The
amendment made by subsection (c) shall apply to periods after
the date of the enactment of this Act, 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).
(4) Public electric utility property.--The amendments made
by subsection (d) shall apply to periods after February 13,
2008, 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. 104. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the
end the following new subpart:
``Subpart I--Qualified Tax Credit Bonds
``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.
``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a qualified
tax credit bond on one or more credit allowance dates of the
bond during any taxable year, there shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to such dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a qualified tax credit bond is 25 percent of the
annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified tax credit bond is the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(2), the applicable credit rate is the rate which the
Secretary estimates will permit the issuance of qualified tax
credit bonds with a specified maturity or redemption date
without discount and without interest cost to the qualified
issuer. The applicable credit rate with respect to any
qualified tax credit bond shall be determined as of the first
day on which there is a binding, written contract for the
sale or exchange of the bond.
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this part
(other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
``(d) Qualified Tax Credit Bond.--For purposes of this
section--
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means a new clean renewable energy bond which is
part of an issue that meets the requirements of paragraphs
(2), (3), (4), (5), and (6).
``(2) Special rules relating to expenditures.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if, as of the date of
issuance, the issuer reasonably expects--
``(i) 100 percent or more of the available project proceeds
to be spent for 1 or more qualified purposes within the 3-
year period beginning on such date of issuance, and
``(ii) a binding commitment with a third party to spend at
least 10 percent of such available project proceeds will be
incurred within the 6-month period beginning on such date of
issuance.
``(B) Failure to spend required amount of bond proceeds
within 3 years.--
``(i) In general.--To the extent that less than 100 percent
of the available project proceeds of the issue are expended
by the close of the expenditure period for 1 or more
qualified purposes, the issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such
period. For purposes of this paragraph, the amount of the
nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(ii) Expenditure period.--For purposes of this subpart,
the term `expenditure period' means, with respect to any
issue, the 3-year period beginning on the date of issuance.
Such term shall include any extension of such period under
clause (iii).
``(iii) Extension of period.--Upon submission of a request
prior to the expiration of the expenditure period (determined
without regard to any extension under this clause), the
Secretary may extend such period if the issuer establishes
that the failure to expend the proceeds within the original
expenditure period is due to reasonable cause and the
expenditures for qualified purposes will continue to proceed
with due diligence.
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means a purpose specified in
section 54B(a)(1).
``(D) Reimbursement.--For purposes of this subtitle,
available project proceeds of an issue shall be treated as
spent for a qualified purpose if such proceeds are used to
reimburse the issuer for amounts paid for a qualified purpose
after the date that the Secretary makes an allocation of bond
limitation with respect to such issue, but only if--
``(i) prior to the payment of the original expenditure, the
issuer declared its intent to reimburse such expenditure with
the proceeds of a qualified tax credit bond,
``(ii) not later than 60 days after payment of the original
expenditure, the issuer adopts an official intent to
reimburse the original expenditure with such proceeds, and
``(iii) the reimbursement is made not later than 18 months
after the date the original expenditure is paid.
``(3) Reporting.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer of qualified tax
credit bonds submits reports similar to the reports required
under section 149(e).
``(4) Special rules relating to arbitrage.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer satisfies the
requirements of section 148 with respect to the proceeds of
the issue.
``(B) Special rule for investments during expenditure
period.--An issue shall not be treated as failing to meet the
requirements of subparagraph (A) by reason of any investment
of available project proceeds during the expenditure period.
``(C) Special rule for reserve funds.--An issue shall not
be treated as failing to meet the requirements of
subparagraph (A) by reason of any fund which is expected to
be used to repay such issue if--
``(i) such fund is funded at a rate not more rapid than
equal annual installments,
``(ii) such fund is funded in a manner reasonably expected
to result in an amount not greater than an amount necessary
to repay the issue, and
``(iii) the yield on such fund is not greater than the
discount rate determined under paragraph (5)(B) with respect
to the issue.
``(5) Maturity limitation.--
``(A) In general.--An issue shall not be treated as meeting
the requirements of this paragraph if the maturity of any
bond which is part of such issue exceeds the maximum term
determined by the Secretary under subparagraph (B).
``(B) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under
this paragraph for bonds issued during the following calendar
month. Such maximum term shall be the term which the
Secretary estimates will result in the present value of the
obligation to repay the principal on the bond being equal to
50 percent of the face amount of such bond. Such present
value shall be determined using as a discount rate the
average annual interest rate of tax-exempt obligations having
a term of 10 years or more which are issued during the month.
If the term as so determined is not a multiple of a whole
year, such term shall be rounded to the next highest whole
year.
``(6) Prohibition on financial conflicts of interest.--An
issue shall be treated as meeting the requirements of this
paragraph if the issuer certifies that--
``(A) applicable State and local law requirements governing
conflicts of interest are satisfied with respect to such
issue, and
``(B) if the Secretary prescribes additional conflicts of
interest rules governing the appropriate Members of Congress,
Federal, State, and local officials, and their spouses,
[[Page H1094]]
such additional rules are satisfied with respect to such
issue.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Available project proceeds.--The term `available
project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an issue, over
``(ii) the issuance costs financed by the issue (to the
extent that such costs do not exceed 2 percent of such
proceeds), and
``(B) the proceeds from any investment of the excess
described in subparagraph (A).
``(f) Credit Treated as Interest.--For purposes of this
subtitle, the credit determined under subsection (a) shall be
treated as interest which is includible in gross income.
``(g) S Corporations and Partnerships.--In the case of a
tax credit bond held by an S corporation or partnership, the
allocation of the credit allowed by this section to the
shareholders of such corporation or partners of such
partnership shall be treated as a distribution.
``(h) Bonds Held by Regulated Investment Companies and Real
Estate Investment Trusts.--If any qualified tax credit bond
is held by a regulated investment company or a real estate
investment trust, the credit determined under subsection (a)
shall be allowed to shareholders of such company or
beneficiaries of such trust (and any gross income included
under subsection (f) with respect to such credit shall be
treated as distributed to such shareholders or beneficiaries)
under procedures prescribed by the Secretary.
``(i) Credits May Be Stripped.--Under regulations
prescribed by the Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified tax credit bond and
the entitlement to the credit under this section with respect
to such bond. In case of any such separation, the credit
under this section shall be allowed to the person who on the
credit allowance date holds the instrument evidencing the
entitlement to the credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tax credit bond as if it were a
stripped bond and to the credit under this section as if it
were a stripped coupon.
``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.
``(a) New Clean Renewable Energy Bond.--For purposes of
this subpart, the term `new clean renewable energy bond'
means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for capital expenditures incurred by
public power providers or cooperative electric companies for
one or more qualified renewable energy facilities,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Reduced Credit Amount.--The annual credit determined
under section 54A(b) with respect to any new clean renewable
energy bond shall be 70 percent of the amount so determined
without regard to this subsection.
``(c) Limitation on Amount of Bonds Designated.--
``(1) In general.--The maximum aggregate face amount of
bonds which may be designated under subsection (a) by any
issuer shall not exceed the limitation amount allocated under
this subsection to such issuer.
``(2) National limitation on amount of bonds designated.--
There is a national new clean renewable energy bond
limitation of $2,000,000,000 which shall be allocated by the
Secretary as provided in paragraph (3), except that--
``(A) not more than 60 percent thereof may be allocated to
qualified projects of public power providers, and
``(B) not more than 40 percent thereof may be allocated to
qualified projects of cooperative electric companies.
``(3) Method of allocation.--
``(A) Allocation among public power providers.--After the
Secretary determines the qualified projects of public power
providers which are appropriate for receiving an allocation
of the national new clean renewable energy bond limitation,
the Secretary shall, to the maximum extent practicable, make
allocations among such projects in such manner that the
amount allocated to each such project bears the same ratio to
the cost of such project as the limitation under subparagraph
(2)(A) bears to the cost of all such projects.
``(B) Allocation among cooperative electric companies.--The
Secretary shall make allocations of the amount of the
national new clean renewable energy bond limitation described
in paragraph (2)(B) among qualified projects of cooperative
electric companies in such manner as the Secretary determines
appropriate.
``(d) Definitions.--For purposes of this section--
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a qualified
facility (as determined under section 45(d) without regard to
paragraphs (8) and (10) thereof and to any placed in service
date) owned by a public power provider or a cooperative
electric company.
``(2) Public power provider.--The term `public power
provider' means a State utility with a service obligation, as
such terms are defined in section 217 of the Federal Power
Act (as in effect on the date of the enactment of this
paragraph).
``(3) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C).
``(4) Clean renewable energy bond lender.--The term `clean
renewable energy bond lender' means a lender which is a
cooperative which is owned by, or has outstanding loans to,
100 or more cooperative electric companies and is in
existence on February 1, 2002, and shall include any
affiliated entity which is controlled by such lender.
``(5) Qualified issuer.--The term `qualified issuer' means
a public power provider, a cooperative electric company, a
clean renewable energy bond lender, or a not-for-profit
electric utility which has received a loan or loan guarantee
under the Rural Electrification Act.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding
at the end the following new paragraph:
``(9) Reporting of credit on qualified tax credit bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 54A and such amounts shall be treated as paid on the
credit allowance date (as defined in section 54A(e)(1)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A) of this paragraph, subsection
(b)(4) of this section shall be applied without regard to
subparagraphs (A), (H), (I), (J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended
by striking ``subpart C'' and inserting ``subparts C and I''.
(2) Section 1397E(c)(2) is amended by striking ``subpart
H'' and inserting ``subparts H and I''.
(3) Section 6401(b)(1) is amended by striking ``and H'' and
inserting ``H, and I''.
(4) The heading of subpart H of part IV of subchapter A of
chapter 1 is amended by striking ``certain bonds'' and
inserting ``clean renewable energy bonds''.
(5) The table of subparts for part IV of subchapter A of
chapter 1 is amended by striking the item relating to subpart
H and inserting the following new items:
``subpart h. nonrefundable credit to holders of clean renewable energy
bonds.
``subpart i. qualified tax credit bonds.''.
(d) Effective Dates.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 105. EXTENSION AND MODIFICATION OF SPECIAL RULE TO
IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING
POLICY.
(a) Extension for Qualified Electric Utilities.--
(1) In general.--Paragraph (3) of section 451(i) (relating
to special rule for sales or dispositions to implement
Federal Energy Regulatory Commission or State electric
restructuring policy) is amended by inserting ``(before
January 1, 2010, in the case of a qualified electric
utility)'' after ``January 1, 2008''.
(2) Qualified electric utility.--Subsection (i) of section
451 is amended by redesignating paragraphs (6) through (10)
as paragraphs (7) through (11), respectively, and by
inserting after paragraph (5) the following new paragraph:
``(6) Qualified electric utility.--For purposes of this
subsection, the term `qualified electric utility' means a
person that, as of the date of the qualifying electric
transmission transaction, is vertically integrated, in that
it is both--
``(A) a transmitting utility (as defined in section 3(23)
of the Federal Power Act (16 U.S.C. 796(23))) with respect to
the transmission facilities to which the election under this
subsection applies, and
``(B) an electric utility (as defined in section 3(22) of
the Federal Power Act (16 U.S.C. 796(22))).''.
(b) Extension of Period for Transfer of Operational Control
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is
amended by striking ``December 31, 2007'' and inserting ``the
date which is 4 years after the close of the taxable year in
which the transaction occurs''.
(c) Property Located Outside the United States Not Treated
as Exempt Utility Property.--Paragraph (5) of section 451(i)
is amended by adding at the end the following new
subparagraph:
[[Page H1095]]
``(C) Exception for property located outside the united
states.--The term `exempt utility property' shall not include
any property which is located outside the United States.''.
(d) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to transactions after December 31, 2007.
(2) Transfers of operational control.--The amendment made
by subsection (b) shall take effect as if included in section
909 of the American Jobs Creation Act of 2004.
(3) Exception for property located outside the united
states.--The amendment made by subsection (c) shall apply to
transactions after the date of the enactment of this Act.
SEC. 106. EXTENSION AND MODIFICATION OF CREDIT FOR
RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2014''.
(b) Maximum Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1)(A) (relating to maximum
credit) is amended by striking ``$2,000'' and inserting
``$4,000''.
(2) Conforming amendment.--Section 25D(e)(4)(A)(i) is
amended by striking ``$6,667'' and inserting ``$13,333''.
(c) Credit for Residential Wind Property.--
(1) In general.--Section 25D(a) (relating to allowance of
credit) is amended by striking ``and'' at the end of
paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(4) 30 percent of the qualified small wind energy
property expenditures made by the taxpayer during such
year.''.
(2) Limitation.--Section 25D(b)(1) (relating to maximum
credit) is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(D) $500 with respect to each half kilowatt of capacity
(not to exceed $4,000) of wind turbines for which qualified
small wind energy property expenditures are made.''.
(3) Qualified small wind energy property expenditures.--
(A) In general.--Section 25D(d) (relating to definitions)
is amended by adding at the end the following new paragraph:
``(4) Qualified small wind energy property expenditure.--
The term `qualified small wind energy property expenditure'
means an expenditure for property which uses a wind turbine
to generate electricity for use in connection with a dwelling
unit located in the United States and used as a residence by
the taxpayer.''.
(B) No double benefit.--Section 45(d)(1) (relating to wind
facility) is amended by adding at the end the following new
sentence: ``Such term shall not include any facility with
respect to which any qualified small wind energy property
expenditure (as defined in subsection (d)(4) of section 25D)
is taken into account in determining the credit under such
section.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A) (relating to maximum expenditures) 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) $1,667 in the case of each half kilowatt of capacity
(not to exceed $13,333) of wind turbines for which qualified
small wind energy property expenditures are made.''.
(d) Credit for Geothermal Heat pump Systems.--
(1) In general.--Section 25D(a) (relating to allowance of
credit), as amended by subsection (c), 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) 30 percent of the qualified geothermal heat pump
property expenditures made by the taxpayer during such
year.''.
(2) Limitation.--Section 25D(b)(1) (relating to maximum
credit), as amended by subsection (c), is amended by striking
``and'' at the end of subparagraph (C), by striking the
period at the end of subparagraph (D) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(E) $2,000 with respect to any qualified geothermal heat
pump property expenditures.''.
(3) Qualified geothermal heat pump property expenditure.--
Section 25D(d) (relating to definitions), as amended by
subsection (c), is amended by adding at the end the following
new paragraph:
``(5) Qualified geothermal heat pump property
expenditure.--
``(A) In general.--The term `qualified geothermal heat pump
property expenditure' means an expenditure for qualified
geothermal heat pump property installed on or in connection
with a dwelling unit located in the United States and used as
a residence by the taxpayer.
``(B) Qualified geothermal heat pump property.--The term
`qualified geothermal heat pump property' means any equipment
which--
``(i) uses the ground or ground water as a thermal energy
source to heat the dwelling unit referred to in subparagraph
(A) or as a thermal energy sink to cool such dwelling unit,
and
``(ii) meets the requirements of the Energy Star program
which are in effect at the time that the expenditure for such
equipment is made.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A) (relating to maximum expenditures), as
amended by subsection (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) $6,667 in the case of any qualified geothermal heat
pump property expenditures.''.
(e) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended
to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of
Unused Credit.--
``(1) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for the taxable year
shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable
year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits allowed
against regular and alternative minimum tax.--In the case of
a taxable year to which section 26(a)(2) applies, if the
credit allowable under subsection (a) exceeds the limitation
imposed by section 26(a)(2) for such taxable year reduced by
the sum of the credits allowable under this subpart (other
than this section), such excess shall be carried to the
succeeding taxable year and added to the credit allowable
under subsection (a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a taxable year
to which section 26(a)(2) does not apply, if the credit
allowable under subsection (a) exceeds the limitation imposed
by paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such succeeding
taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting ``and
section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking ``and 25B''
and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking ``section 23''
and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and 25B'' and
inserting ``25B, and 25D''.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
(2) Application of egtrra sunset.--The amendments made by
subparagraphs (A) and (B) of subsection (e)(2) shall be
subject to title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 in the same manner as the
provisions of such Act to which such amendments relate.
TITLE II--CONSERVATION
Subtitle A--Transportation
PART 1--VEHICLES
SEC. 201. CREDIT FOR PLUG-IN HYBRID VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 (relating to other credits) is amended by adding at
the end the following new section:
``SEC. 30D. PLUG-IN HYBRID VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each
qualified plug-in hybrid vehicle placed in service by the
taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this
subsection with respect to any qualified plug-in hybrid
vehicle is the sum of the amounts determined under paragraphs
(2) and (3) with respect to such vehicle.
``(2) Base amount.--The amount determined under this
paragraph is $4,000.
``(3) Battery capacity.--In the case of vehicle which draws
propulsion energy from a battery with not less than 5
kilowatt hours of capacity, the amount determined under this
paragraph is $200, plus $200 for each kilowatt hour of
capacity in excess of 5 kilowatt hours. The amount determined
under this paragraph shall not exceed $2,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without
regard to this subsection) that is attributable to property
of a character subject to an allowance for depreciation shall
be treated as a credit listed in section 38(b) for such
taxable year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the credit
allowed under subsection (a) for any taxable year (determined
after application of paragraph (1)) shall be treated as a
credit allowable under subpart A for such taxable year.
``(B) Limitation based on amount of tax.--In the case of a
taxable year to which
[[Page H1096]]
section 26(a)(2) does not apply, the credit allowed under
subsection (a) for any taxable year (determined after
application of paragraph (1)) shall not exceed the excess
of--
``(i) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under subpart A
(other than this section and sections 23 and 25D) and section
27 for the taxable year.
``(d) Qualified Plug-In Hybrid Vehicle.--For purposes of
this section--
``(1) In general.--The term `qualified plug-in hybrid
vehicle' means a motor vehicle (as defined in section
30(c)(2))--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the taxpayer
and not for resale,
``(C) which is made by a manufacturer,
``(D) which has a gross vehicle weight rating of less than
14,000 pounds,
``(E) which has received a certificate of conformity under
the Clean Air Act and meets or exceeds the Bin 5 Tier II
emission standard established in regulations prescribed by
the Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make and
model year vehicle,
``(F) which is propelled to a significant extent by an
electric motor which draws electricity from a battery which--
``(i) has a capacity of not less than 4 kilowatt hours, and
``(ii) is capable of being recharged from an external
source of electricity, and
``(G) which either--
``(i) is also propelled to a significant extent by other
than an electric motor, or
``(ii) has a significant onboard source of electricity
which also recharges the battery referred to in subparagraph
(F).
``(2) Exception.--The term `qualified plug-in hybrid
vehicle' shall not include any vehicle which is not a
passenger automobile or light truck if such vehicle has a
gross vehicle weight rating of less than 8,500 pounds.
``(3) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings given
such terms in regulations prescribed by the Administrator of
the Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C.
7521 et seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours,
as measured from a 100 percent state of charge to a 0 percent
state of charge.
``(e) Limitation on Number of Qualified Plug-In Hybrid
Vehicles Eligible for Credit.--
``(1) In general.--In the case of a qualified plug-in
hybrid vehicle sold during the phaseout period, only the
applicable percentage of the credit otherwise allowable under
subsection (a) shall be allowed.
``(2) Phaseout period.--For purposes of this subsection,
the phaseout period is the period beginning with the second
calendar quarter following the calendar quarter which
includes the first date on which the number of qualified
plug-in hybrid vehicles manufactured by the manufacturer of
the vehicle referred to in paragraph (1) sold for use in the
United States after the date of the enactment of this
section, is at least 60,000.
``(3) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters of the
phaseout period,
``(B) 25 percent for the 3d and 4th calendar quarters of
the phaseout period, and
``(C) 0 percent for each calendar quarter thereafter.
``(4) Controlled groups.--Rules similar to the rules of
section 30B(f)(4) shall apply for purposes of this
subsection.
``(f) Special Rules.--
``(1) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced
by the amount of such credit (determined without regard to
subsection (c)).
``(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which
ceases to be property eligible for such credit.
``(3) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b)(1)
or with respect to the portion of the cost of any property
taken into account under section 179.
``(4) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(5) Property used by tax-exempt entity; interaction with
air quality and motor vehicle safety standards.--Rules
similar to the rules of paragraphs (6) and (10) of section
30B(h) shall apply for purposes of this section.''.
(b) Plug-In Vehicles Not Treated as New Qualified Hybrid
Vehicles.--Section 30B(d)(3) is amended by adding at the end
the following new subparagraph:
``(D) Exclusion of plug-in vehicles.--Any vehicle with
respect to which a credit is allowable under section 30D
(determined without regard to subsection (c) thereof) shall
not be taken into account under this section.''.
(c) Credit Made Part of General Business Credit.--Section
38(b) is amended--
(1) by striking ``and'' each place it appears at the end of
any paragraph,
(2) by striking ``plus'' each place it appears at the end
of any paragraph,
(3) by striking the period at the end of paragraph (31) and
inserting ``, plus'', and
(4) by adding at the end the following new paragraph:
``(32) the portion of the plug-in hybrid vehicle credit to
which section 30D(c)(1) applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by this Act, is
amended by striking ``and 25D'' and inserting ``25D, and
30D''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting
``30D,'' after ``25D,''.
(C) Section 25B(g)(2), as amended by this Act, is amended
by striking ``and 25D'' and inserting ``, 25D, and 30D''.
(D) Section 26(a)(1), as amended by this Act, is amended by
striking ``and 25D'' and inserting ``25D, and 30D''.
(E) Section 1400C(d)(2) is amended by striking ``and 25D''
and inserting ``25D, and 30D''.
(2) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (35), by striking the period at the end of
paragraph (36) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(37) to the extent provided in section 30D(f)(1).''.
(3) Section 6501(m) is amended by inserting ``30D(f)(4),''
after ``30C(e)(5),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 30D. Plug-in hybrid vehicles.''.
(e) Treatment of Alternative Motor Vehicle Credit as a
Personal Credit.--
(1) In general.--Paragraph (2) of section 30B(g) is amended
to read as follows:
``(2) Personal credit.--The credit allowed under subsection
(a) for any taxable year (after application of paragraph (1))
shall be treated as a credit allowable under subpart A for
such taxable year.''.
(2) Conforming amendments.--
(A) Subparagraph (A) of section 30C(d)(2) is amended by
striking ``sections 27, 30, and 30B'' and inserting
``sections 27 and 30''.
(B) Paragraph (3) of section 55(c) is amended by striking
``30B(g)(2),''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years beginning after December 31, 2008.
(2) Treatment of alternative motor vehicle credit as
personal credit.--The amendments made by subsection (e) shall
apply to taxable years beginning after December 31, 2007.
(g) Application of EGTRRA Sunset.--The amendment made by
subsection (d)(1)(A) shall be subject to title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 in
the same manner as the provision of such Act to which such
amendment relates.
SEC. 202. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL
VEHICLE REFUELING PROPERTY CREDIT.
(a) Increase in Credit Amount.--Section 30C (relating to
alternative fuel vehicle refueling property credit) is
amended--
(1) by striking ``30 percent'' in subsection (a) and
inserting ``50 percent'', and
(2) by striking ``$30,000'' in subsection (b)(1) and
inserting ``$50,000''.
(b) Extension of Credit.--Paragraph (2) of section 30C(g)
(relating to termination) is amended by striking ``December
31, 2009'' and inserting ``December 31, 2010''.
(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. 203. MODIFICATION OF LIMITATION ON AUTOMOBILE
DEPRECIATION.
(a) In General.--Paragraph (5) of section 280F(d) (defining
passenger automobile) is amended to read as follows:
``(5) Passenger automobile.--
``(A) In general.--Except as provided in subparagraph (B),
the term `passenger automobile' means any 4-wheeled vehicle--
``(i) which is primarily designed or which can be used to
carry passengers over public streets, roads, or highways
(except any vehicle operated exclusively on a rail or rails),
and
``(ii) which is rated at not more than 14,000 pounds gross
vehicle weight.
``(B) Exceptions.--The term `passenger automobile' shall
not include--
``(i) any exempt-design vehicle, and
``(ii) any exempt-use vehicle.
``(C) Exempt-design vehicle.--The term `exempt-design
vehicle' means--
``(i) any vehicle which, by reason of its nature or design,
is not likely to be used more than a de minimis amount for
personal purposes, and
``(ii) any vehicle--
``(I) which is designed to have a seating capacity of more
than 9 persons behind the driver's seat,
``(II) which is equipped with a cargo area of at least 5
feet in interior length which is an open area or is designed
for use as an open area but is enclosed by a cap and is not
readily accessible directly from the passenger compartment,
or
``(III) has an integral enclosure, fully enclosing the
driver compartment and load carrying device, does not have
seating rearward of the driver's seat, and has no body
section protruding more than 30 inches ahead of the leading
edge of the windshield.
[[Page H1097]]
``(D) Exempt-use vehicle.--The term `exempt-use vehicle'
means--
``(i) any ambulance, hearse, or combination ambulance-
hearse used by the taxpayer directly in a trade or business,
``(ii) any vehicle used by the taxpayer directly in the
trade or business of transporting persons or property for
compensation or hire, and
``(iii) any truck or van if substantially all of the use of
such vehicle by the taxpayer is directly in--
``(I) a farming business (within the meaning of section
263A(e)(4)),
``(II) the transportation of a substantial amount of
equipment, supplies, or inventory, or
``(III) the moving or delivery of property which requires
substantial cargo capacity.
``(E) Recapture.--In the case of any vehicle which is not a
passenger automobile by reason of being an exempt-use
vehicle, if such vehicle ceases to be an exempt-use vehicle
in any taxable year after the taxable year in which such
vehicle is placed in service, a rule similar to the rule of
subsection (b) shall apply.''.
(b) Conforming Amendment.--Section 179(b) (relating to
limitations) is amended by striking paragraph (6).
(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.
PART 2--FUELS
SEC. 211. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL
AND RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and
6427(e)(5)(B) are each amended by striking ``December 31,
2008'' and inserting ``December 31, 2010''.
(b) Uniform Treatment of Diesel Produced From Biomass.--
Paragraph (3) of section 40A(f) is amended--
(1) by striking ``diesel fuel'' and inserting ``liquid
fuel'',
(2) by striking ``using a thermal depolymerization
process'', and
(3) by striking ``or D396'' in subparagraph (B) and
inserting ``or other equivalent standard approved by the
Secretary for fuels to be used in diesel-powered highway
vehicles''.
(c) Coproduction of Renewable Diesel With Petroleum
Feedstock.--
(1) In general.--Paragraph (3) of section 40A(f) (defining
renewable diesel) is amended by adding at the end the
following flush sentence:
``Such term does not include any fuel derived from
coprocessing biomass with a feedstock which is not biomass.
For purposes of this paragraph, the term `biomass' has the
meaning given such term by section 45K(c)(3).''.
(2) Conforming amendment.--Paragraph (3) of section 40A(f)
is amended by striking ``(as defined in section 45K(c)(3))''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to fuel produced, and sold or used, after December 31, 2008.
(2) Coproduction of renewable diesel with petroleum
feedstock.--The amendments made by subsection (c) shall apply
to fuel produced, and sold or used, after February 13, 2008.
SEC. 212. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO
PROVIDE AN INCENTIVE FOR UNITED STATES
PRODUCTION.
(a) Biodiesel Fuels Credit.--Paragraph (5) of section
40A(d), as added by subsection (c), is amended to read as
follows:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section
with respect to any biodiesel unless--
``(A) such biodiesel is produced in the United States for
use as a fuel in the United States, and
``(B) the taxpayer obtains a certification (in such form
and manner as prescribed by the Secretary) from the producer
of the biodiesel which identifies the product produced and
the location of such production.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(b) Excise Tax Credit.--Paragraph (2) of section 6426(h),
as added by subsection (c), is amended to read as follows:
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel
or alternative fuel unless--
``(A) such biodiesel or alternative fuel is produced in the
United States for use as a fuel in the United States, and
``(B) the taxpayer obtains a certification (in such form
and manner as prescribed by the Secretary) from the producer
of such biodiesel or alternative fuel which identifies the
product produced and the location of such production.''.
(c) Provisions Clarifying Treatment of Fuels With No Nexus
to the United States.--
(1) Alcohol fuels credit.--Subsection (d) of section 40 is
amended by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the united
states.--No credit shall be determined under this section
with respect to any alcohol which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(2) Biodiesel fuels credit.--Subsection (d) of section 40A
is amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section
with respect to any biodiesel which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(3) Excise tax credit.--
(A) In general.--Section 6426 is amended by adding at the
end the following new subsection:
``(h) Limitation to Fuels With Connection to the United
States.--
``(1) Alcohol.--No credit shall be determined under this
section with respect to any alcohol which is produced outside
the United States for use as a fuel outside the United
States.
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel
or alternative fuel which is produced outside the United
States for use as a fuel outside the United States.
For purposes of this subsection, the term `United States'
includes any possession of the United States.''.
(B) Conforming amendment.--Subsection (e) of section 6427
is amended by redesignating paragraph (5) as paragraph (6)
and by inserting after paragraph (4) the following new
paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or
(2) with respect to any mixture or alternative fuel if credit
is not allowed with respect to such mixture or alternative
fuel by reason of section 6426(h).''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after December 31, 2008.
(2) Provisions clarifying treatment of fuels with no nexus
to the united states.--
(A) In general.--Except as otherwise provided in this
paragraph, the amendments made by subsection (c) shall take
effect as if included in section 301 of the American Jobs
Creation Act of 2004.
(B) Alternative fuel credits.--So much of the amendments
made by subsection (c) as relate to the alternative fuel
credit or the alternative fuel mixture credit shall take
effect as if included in section 11113 of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users.
(C) Renewable diesel.--So much of the amendments made by
subsection (c) as relate to renewable diesel shall take
effect as if included in section 1346 of the Energy Policy
Act of 2005.
SEC. 213. CREDIT FOR PRODUCTION OF CELLULOSIC ALCOHOL.
(a) In General.--Subsection (b) of section 40 is amended by
redesignating paragraph (5) as paragraph (6) and by inserting
after paragraph (4) the following new paragraph:
``(5) Cellulosic alcohol fuel producer credit.--
``(A) In general.--The cellulosic alcohol fuel producer
credit of any cellulosic alcohol fuel producer for any
taxable year is 50 cents for each gallon of qualified
cellulosic fuel production of such producer.
``(B) Qualified cellulosic fuel production.--For purposes
of this paragraph, the term `qualified cellulosic fuel
production' means any cellulosic alcohol which is produced by
a cellulosic alcohol fuel producer, and which during the
taxable year--
``(i) is sold by such producer to another person--
``(I) for use by such other person in the production of a
qualified mixture in such other person's trade or business
(other than casual off-farm production),
``(II) for use by such other person as a fuel in a trade or
business, or
``(III) who sells such alcohol at retail to another person
and places such alcohol in the fuel tank of such other
person, or
``(ii) is used or sold by such producer for any purpose
described in clause (i).
``(C) Cellulosic alcohol.--For purposes of this paragraph,
the term `cellulosic alcohol' means any alcohol which--
``(i) is produced in the United States for use as a fuel in
the United States, and
``(ii) is derived from any lignocellulosic or
hemicellulosic matter that is available on a renewable or
recurring basis.
For purposes of this subparagraph, the term `United States'
includes any possession of the United States.
``(D) Cellulosic alcohol fuel producer.--For purposes of
this paragraph, the term `cellulosic alcohol fuel producer'
means any person who produces cellulosic alcohol in a trade
or business and is registered with the Secretary as a
cellulosic alcohol fuel producer.
``(E) Additional distillation excluded.--The qualified
cellulosic fuel production of any producer for any taxable
year shall not include any alcohol which is purchased by the
producer and with respect to which such producer increases
the proof of the alcohol by additional distillation.''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 40 is amended by striking
``plus'' at the end of paragraph (1), by striking ``plus'' at
the end of paragraph (2), by striking the period at the end
of paragraph (3) and inserting ``, plus'', and by
[[Page H1098]]
adding at the end the following new paragraph:
``(4) in the case of a cellulosic alcohol fuel producer,
the cellulosic alcohol fuel producer credit.''.
(2) Clause (ii) of section 40(d)(3)(C) is amended by
striking ``subsection (b)(4)(B)'' and inserting ``paragraph
(4)(B) or (5)(B) of subsection (b)''.
(c) Effective Date.--The amendments made by this section
shall apply to alcohol produced after December 31, 2008.
PART 3--OTHER TRANSPORTATION INCENTIVES
SEC. 221. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO
BICYCLE COMMUTERS.
(a) In General.--Paragraph (1) of section 132(f) (relating
to general rule for qualified transportation fringe) is
amended by adding at the end the following:
``(D) Any qualified bicycle commuting reimbursement.''.
(b) Limitation on Exclusion.--Paragraph (2) of section
132(f) is amended by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(C) the applicable annual limitation in the case of any
qualified bicycle commuting reimbursement.''.
(c) Definitions.--Paragraph (5) of section 132(f) (relating
to definitions) is amended by adding at the end the
following:
``(F) Definitions related to bicycle commuting
reimbursement.--
``(i) Qualified bicycle commuting reimbursement.--The term
`qualified bicycle commuting reimbursement' means, with
respect to any calendar year, any employer reimbursement
during the 15-month period beginning with the first day of
such calendar year for reasonable expenses incurred by the
employee during such calendar year for the purchase of a
bicycle and bicycle improvements, repair, and storage, if
such bicycle is regularly used for travel between the
employee's residence and place of employment.
``(ii) Applicable annual limitation.--The term `applicable
annual limitation' means, with respect to any employee for
any calendar year, the product of $20 multiplied by the
number of qualified bicycle commuting months during such
year.
``(iii) Qualified bicycle commuting month.--The term
`qualified bicycle commuting month' means, with respect to
any employee, any month during which such employee--
``(I) regularly uses the bicycle for a substantial portion
of the travel between the employee's residence and place of
employment, and
``(II) does not receive any benefit described in
subparagraph (A), (B), or (C) of paragraph (1).''.
(d) Constructive Receipt of Benefit.--Paragraph (4) of
section 132(f) is amended by inserting ``(other than a
qualified bicycle commuting reimbursement)'' after
``qualified transportation fringe''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
SEC. 222. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is
amended by redesignating section 1400L as section 1400K and
by adding at the end the following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against
any taxes imposed for any payroll period by section 3402 for
which such governmental unit is liable under section 3403 an
amount equal to so much of the portion of the qualifying
project expenditure amount allocated under subsection (b)(3)
to such governmental unit for the calendar year as is
allocated by such governmental unit to such period under
subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes
of this section--
``(1) In general.--The term `qualifying project expenditure
amount' means, with respect to any calendar year, the sum
of--
``(A) the total expenditures paid or incurred during such
calendar year by all New York Liberty Zone governmental units
and the Port Authority of New York and New Jersey for any
portion of qualifying projects located wholly within the City
of New York, New York, and
``(B) any such expenditures--
``(i) paid or incurred in any preceding calendar year which
begins after the date of enactment of this section, and
``(ii) not previously allocated under paragraph (3).
``(2) Qualifying project.--The term `qualifying project'
means any transportation infrastructure project, including
highways, mass transit systems, railroads, airports, ports,
and waterways, in or connecting with the New York Liberty
Zone (as defined in section 1400K(h)), which is designated as
a qualifying project under this section jointly by the
Governor of the State of New York and the Mayor of the City
of New York, New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New York
and the Mayor of the City of New York, New York, shall
jointly allocate to each New York Liberty Zone governmental
unit the portion of the qualifying project expenditure amount
which may be taken into account by such governmental unit
under subsection (a) for any calendar year in the credit
period.
``(B) Aggregate limit.--The aggregate amount which may be
allocated under subparagraph (A) for all calendar years in
the credit period shall not exceed $2,000,000,000.
``(C) Annual limit.--The aggregate amount which may be
allocated under subparagraph (A) for any calendar year in the
credit period shall not exceed the sum of--
``(i) $169,000,000, plus
``(ii) the aggregate amount authorized to be allocated
under this paragraph for all preceding calendar years in the
credit period which was not so allocated.
``(D) Unallocated amounts at end of credit period.--If, as
of the close of the credit period, the amount under
subparagraph (B) exceeds the aggregate amount allocated under
subparagraph (A) for all calendar years in the credit period,
the Governor of the State of New York and the Mayor of the
City of New York, New York, may jointly allocate to New York
Liberty Zone governmental units for any calendar year in the
5-year period following the credit period an amount equal
to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project expenditure amount for such
calendar year, reduced by
``(ii) the aggregate amount allocated under this
subparagraph for all preceding calendar years.
``(4) Allocation to payroll periods.--Each New York Liberty
Zone governmental unit which has been allocated a portion of
the qualifying project expenditure amount under paragraph (3)
for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental
unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if
the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds
the aggregate taxes imposed by section 3402 for which such
governmental unit is liable under section 3403 for periods
beginning in such year, such excess shall be carried to the
succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to it
under subsection (b)(3) within the time prescribed by the
Governor of the State of New York and the Mayor of the City
of New York, New York, then such amount shall after such time
be treated for purposes of subsection (b)(3) in the same
manner as if it had never been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means the
12-year period beginning on January 1, 2008.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such State or City.
``(3) Treatment of funds.--Any expenditure for a qualifying
project taken into account for purposes of the credit under
this section shall be considered State and local funds for
the purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having
paid to the Secretary, on the day on which wages are paid to
employees, an amount equal to the amount of the credit
allowed to such entity under subsection (a) with respect to
such wages, but only if such governmental unit deducts and
withholds wages for such payroll period under section 3401
(relating to wage withholding).
``(e) Reporting.--The Governor of the State of New York and
the Mayor of the City of New York, New York, shall jointly
submit to the Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for the
calendar year, and
``(B) the amount allocated to each New York Liberty Zone
governmental unit under subsection (b)(3) for the calendar
year, and
``(2) includes such other information as the Secretary may
require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance
as may be necessary or appropriate to ensure compliance with
the purposes of this section.''.
(b) Termination of Special Allowance and Expensing.--
Subparagraph (A) of section 1400K(b)(2), as redesignated by
subsection (a), is amended by striking the parenthetical in
the flush language after clause (v) thereof and inserting
``(in the case of nonresidential real property and
residential rental property, the date of the enactment of the
Renewable Energy and Energy Conservation Tax Act of 2008 or,
if acquired pursuant to a binding contract in effect on such
enactment date, December 31, 2009)''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section
1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``section
1400K(c)(2)''.
[[Page H1099]]
(3) The table of sections for part I of subchapter Y of
chapter 1 is amended by redesignating the item relating to
section 1400L as an item relating to section 1400K and by
inserting after such item the following new item:
``Sec. 1400L. New York Liberty Zone tax credits.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
Subtitle B--Other Conservation Provisions
SEC. 231. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1, as added by section 104, is amended by adding at
the end the following new section:
``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.
``(a) Qualified Energy Conservation Bond.--For purposes of
this subchapter, the term `qualified energy conservation
bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for one or more qualified conservation
purposes,
``(2) the bond is issued by a State or local government,
and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The
maximum aggregate face amount of bonds which may be
designated under subsection (a) by any issuer shall not
exceed the limitation amount allocated to such issuer under
subsection (d).
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified energy conservation bond
limitation of $3,600,000,000.
``(d) Allocations.--
``(1) In general.--The limitation applicable under
subsection (c) shall be allocated by the Secretary among the
States in proportion to the population of the States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State in which there
is a large local government, each such local government shall
be allocated a portion of such State's allocation which bears
the same ratio to the State's allocation (determined without
regard to this subparagraph) as the population of such large
local government bears to the population of such State.
``(B) Allocation of unused limitation to state.--The amount
allocated under this subsection to a large local government
may be reallocated by such local government to the State in
which such local government is located.
``(C) Large local government.--For purposes of this
section, the term `large local government' means any
municipality or county if such municipality or county has a
population of 100,000 or more.
``(3) Allocation to issuers; restriction on private
activity bonds.--Any allocation under this subsection to a
State or large local government shall be allocated by such
State or large local government to issuers within the State
in a manner that results in not less than 70 percent of the
allocation to such State or large local government being used
to designate bonds which are not private activity bonds.
``(e) Qualified Conservation Purpose.--For purposes of this
section--
``(1) In general.--The term `qualified conservation
purpose' means any of the following:
``(A) Capital expenditures incurred for purposes of--
``(i) reducing energy consumption in publicly-owned
buildings by at least 20 percent,
``(ii) implementing green community programs,
``(iii) rural development involving the production of
electricity from renewable energy resources, or
``(iv) any qualified facility (as determined under section
45(d) without regard to paragraphs (8) and (10) thereof and
without regard to any placed in service date).
``(B) Expenditures with respect to research facilities, and
research grants, to support research in--
``(i) development of cellulosic ethanol or other nonfossil
fuels,
``(ii) technologies for the capture and sequestration of
carbon dioxide produced through the use of fossil fuels,
``(iii) increasing the efficiency of existing technologies
for producing nonfossil fuels,
``(iv) automobile battery technologies and other
technologies to reduce fossil fuel consumption in
transportation, or
``(v) technologies to reduce energy use in buildings.
``(C) Mass commuting facilities and related facilities that
reduce the consumption of energy, including expenditures to
reduce pollution from vehicles used for mass commuting.
``(D) Demonstration projects designed to promote the
commercialization of--
``(i) green building technology,
``(ii) conversion of agricultural waste for use in the
production of fuel or otherwise,
``(iii) advanced battery manufacturing technologies,
``(iv) technologies to reduce peak use of electricity, or
``(v) technologies for the capture and sequestration of
carbon dioxide emitted from combusting fossil fuels in order
to produce electricity.
``(E) Public education campaigns to promote energy
efficiency.
``(2) Special rules for private activity bonds.--For
purposes of this section, in the case of any private activity
bond, the term `qualified conservation purposes' shall not
include any expenditure which is not a capital expenditure.
``(f) Population.--
``(1) In general.--The population of any State or local
government shall be determined for purposes of this section
as provided in section 146(j) for the calendar year which
includes the date of the enactment of this section.
``(2) Special rule for counties.--In determining the
population of any county for purposes of this section, any
population of such county which is taken into account in
determining the population of any municipality which is a
large local government shall not be taken into account in
determining the population of such county.
``(g) Application to Indian Tribal Governments.--An Indian
tribal government shall be treated for purposes of this
section in the same manner as a large local government,
except that--
``(1) an Indian tribal government shall be treated for
purposes of subsection (d) as located within a State to the
extent of so much of the population of such government as
resides within such State, and
``(2) any bond issued by an Indian tribal government shall
be treated as a qualified energy conservation bond only if
issued as part of an issue the available project proceeds of
which are used for purposes for which such Indian tribal
government could issue bonds to which section 103(a)
applies.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by section
104, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a new clean renewable energy bond, or
``(B) a qualified energy conservation bond,
which is part of an issue that meets requirements of
paragraphs (2), (3), (4), (5), and (6).''.
(2) Subparagraph (C) of section 54A(d)(2), as added by
section 104, is amended to read as follows:
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means--
``(i) in the case of a new clean renewable energy bond, a
purpose specified in section 54B(a)(1), and
``(ii) in the case of a qualified energy conservation bond,
a purpose specified in section 54C(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54C. Qualified energy conservation bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 232. EXTENSION AND MODIFICATION OF CREDIT FOR
NONBUSINESS ENERGY PROPERTY.
(a) Extension of Credit.--Section 25C(g) (relating to
termination) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2009''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of subparagraph (D),
(B) by striking the period at the end of subparagraph (E)
and inserting ``, and'', and
(C) by adding at the end the following new subparagraph:
``(F) a stove which uses the burning of biomass fuel to
heat a dwelling unit located in the United States and used as
a residence by the taxpayer, or to heat water for use in such
a dwelling unit, and which has a thermal efficiency rating of
at least 75 percent.''.
(2) Biomass fuel.--Section 25C(d) (relating to residential
energy property expenditures) is amended by adding at the end
the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means any
plant-derived fuel available on a renewable or recurring
basis, including agricultural crops and trees, wood and wood
waste and residues (including wood pellets), plants
(including aquatic plants), grasses, residues, and fibers.''.
(c) Coordination With Credit for Qualified Geothermal Heat
pump Property Expenditures.--
(1) In general.--Paragraph (3) of section 25C(d) is amended
by striking subparagraph (C) and by redesignating
subparagraphs (D) and (E) as subparagraphs (C) and (D),
respectively.
(2) Conforming amendment.--Subparagraph (C) of section
25C(d)(2) is amended to read as follows:
``(C) Requirements and standards for air conditioners and
heat pumps.--The standards and requirements prescribed by the
Secretary under subparagraph (B) with respect to the energy
efficiency ratio (EER) for central air conditioners and
electric heat pumps--
``(i) shall require measurements to be based on published
data which is tested by manufacturers at 95 degrees
Fahrenheit, and
``(ii) may be based on the certified data of the Air
Conditioning and Refrigeration Institute that are prepared in
partnership with the Consortium for Energy Efficiency.''.
(d) Effective Date.--The amendments made this section shall
apply to expenditures made after December 31, 2007.
[[Page H1100]]
SEC. 233. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.
Subsection (h) of section 179D (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2013''.
SEC. 234. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT
FOR APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M (relating to
applicable amount) is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is manufactured
in calendar year 2008 or 2009 and which uses no more than 324
kilowatt hours per year and 5.8 gallons per cycle, and
``(B) $75 in the case of a dishwasher which is manufactured
in calendar year 2008, 2009, or 2010 and which uses no more
than 307 kilowatt hours per year and 5.0 gallons per cycle
(5.5 gallons per cycle for dishwashers designed for greater
than 12 place settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 which meets or
exceeds a 1.72 modified energy factor and does not exceed a
8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 or 2009 which meets
or exceeds a 1.8 modified energy factor and does not exceed a
7.5 water consumption factor,
``(C) $150 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009, or
2010 which meets or exceeds 2.0 modified energy factor and
does not exceed a 6.0 water consumption factor, and
``(D) $250 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009, or
2010 which meets or exceeds 2.2 modified energy factor and
does not exceed a 4.5 water consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at least 20
percent but not more than 22.9 percent less kilowatt hours
per year than the 2001 energy conservation standards,
``(B) $75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and consumes at
least 23 percent but no more than 24.9 percent less kilowatt
hours per year than the 2001 energy conservation standards,
``(C) $100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009, or 2010, and
consumes at least 25 percent but not more than 29.9 percent
less kilowatt hours per year than the 2001 energy
conservation standards, and
``(D) $200 in the case of a refrigerator manufactured in
calendar year 2008, 2009, or 2010 and which consumes at least
30 percent less energy than the 2001 energy conservation
standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c)
of section 45M (relating to eligible production) is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that follows
through ``the eligible'' and inserting ``The eligible'', and
(C) by moving the text of such subsection in line with the
subsection heading and redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively.
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1) of this section, is
amended by striking ``3-calendar year'' and inserting ``2-
calendar year''.
(c) Types of Energy Efficient Appliances.--Subsection (d)
of section 45M (defining types of energy efficient
appliances) is amended to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of
this section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).''.
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e)
(relating to aggregate credit amount allowed) is amended to
read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to
a taxpayer for any taxable year shall not exceed $75,000,000
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior
taxable years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to read
as follows:
``(2) Amount allowed for certain refrigerators and clothes
washers.--Refrigerators described in subsection (b)(3)(D) and
clothes washers described in subsection (b)(2)(D) shall not
be taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as
follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection (b)(1),
``(B) any clothes washer described in subsection (b)(2),
and
``(C) any refrigerator described in subsection (b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) (defining clothes
washer) is amended by inserting ``commercial'' before
``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M (relating to definitions) is amended by redesignating
paragraphs (4), (5), (6), and (7) as paragraphs (5), (6),
(7), and (8), respectively, and by inserting after paragraph
(3) the following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading
clothes washer' means a clothes washer which has the clothes
container compartment access located on the top of the
machine and which operates on a vertical axis.''.
(4) Replacement of energy factor.--Section 45M(f)(6), as
redesignated by paragraph (3), is amended to read as follows:
``(6) Modified energy factor.--The term `modified energy
factor' means the modified energy factor established by the
Department of Energy for compliance with the Federal energy
conservation standard.''.
(5) Gallons per cycle; water consumption factor.--Section
45M(f) (relating to definitions), as amended by paragraph
(3), is amended by adding at the end the following:
``(9) Gallons per cycle.--The term `gallons per cycle'
means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of
a dishwasher.
``(10) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water
consumption divided by the cubic foot (or liter) capacity of
the clothes washer.''.
(f) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2007.
SEC. 235. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT
DEVICES.
(a) In General.--Section 168(e)(3)(B) (relating to 5-year
property) is amended by striking ``and'' at the end of clause
(v), by striking the period at the end of clause (vi) and
inserting ``, and'', and by inserting after clause (vi) the
following new clause:
``(vii) 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 installed
on real property of a customer of the taxpayer and is placed
in service by a taxpayer who--
``(i) is a supplier of electric energy or a provider of
electric energy services, and
``(ii) provides all commercial and residential customers of
such supplier or provider with net metering upon the request
of such customer.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device' means
any time-based meter and related communication equipment
which is capable of being used by the taxpayer as part of a
system that--
``(i) measures and records electricity usage data on a
time-differentiated basis in at least 24 separate time
segments per day,
``(ii) provides for the exchange of information between
supplier or provider and the customer's energy management
device in support of time-based rates or other forms of
demand response, and
``(iii) provides data to such supplier or provider so that
the supplier or provider can provide energy usage information
to customers electronically.
``(C) Net metering.--For purposes of subparagraph (A), the
term `net metering' means allowing customers a credit for
providing electricity to the supplier or provider.''.
(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.
TITLE III--REVENUE PROVISIONS
SEC. 301. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY
PRODUCTS THEREOF.
(a) Denial of Deduction for Major Integrated Oil Companies
for Income Attributable to Domestic Production of Oil, Gas,
or Primary Products Thereof.--
(1) In general.--Subparagraph (B) of section 199(c)(4)
(relating to exceptions) is amended by striking ``or'' at the
end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, or'', and by inserting after
clause (iii) the following new clause:
``(iv) in the case of any major integrated oil company (as
defined in section 167(h)(5)(B)), the production, refining,
processing, transportation, or distribution of oil,
[[Page H1101]]
gas, or any primary product thereof during any taxable year
described in section 167(h)(5)(B).''.
(2) Primary product.--Section 199(c)(4)(B) is amended by
adding at the end the following flush sentence:
``For purposes of clause (iv), the term `primary product' has
the same meaning as when used in section 927(a)(2)(C), as in
effect before its repeal.''.
(b) Limitation on Oil Related Qualified Production
Activities Income for Taxpayers Other Than Major Integrated
Oil Companies.--
(1) In general.--Section 199(d) is amended by redesignating
paragraph (9) as paragraph (10) and by inserting after
paragraph (8) the following new paragraph:
``(9) Special rule for taxpayers with oil related qualified
production activities income.--
``(A) In general.--If a taxpayer (other than a major
integrated oil company (as defined in section 167(h)(5)(B)))
has oil related qualified production activities income for
any taxable year beginning after 2009, the amount of the
deduction under subsection (a) shall be reduced by 3 percent
of the least of--
``(i) the oil related qualified production activities
income of the taxpayer for the taxable year,
``(ii) the qualified production activities income of the
taxpayer for the taxable year, or
``(iii) taxable income (determined without regard to this
section).
``(B) Oil related qualified production activities income.--
The term `oil related qualified production activities income'
means for any taxable year the qualified production
activities income which is attributable to the production,
refining, processing, transportation, or distribution of oil,
gas, or any primary product thereof during such taxable
year.''.
(2) Conforming amendment.--Section 199(d)(2) (relating to
application to individuals) is amended by striking
``subsection (a)(1)(B)'' and inserting ``subsections
(a)(1)(B) and (d)(9)(A)(iii)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
SEC. 302. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND
GAS EXTRACTION INCOME.
(a) In General.--Paragraph (1) of section 907(c) is amended
by redesignating subparagraph (B) as subparagraph (C), by
striking ``or'' at the end of subparagraph (A), and by
inserting after subparagraph (A) the following new
subparagraph:
``(B) so much of any transportation of such minerals as
occurs before the fair market value event, or''.
(b) Fair Market Value Event.--Subsection (c) of section 907
is amended by adding at the end the following new paragraph:
``(6) Fair market value event.--For purposes of this
section, the term `fair market value event' means, with
respect to any mineral, the first point in time at which such
mineral--
``(A) has a fair market value which can be determined on
the basis of a transfer, which is an arm's length
transaction, of such mineral from the taxpayer to a person
who is not related (within the meaning of section 482) to
such taxpayer, or
``(B) is at a location at which the fair market value is
readily ascertainable by reason of transactions among
unrelated third parties with respect to the same mineral
(taking into account source, location, quality, and chemical
composition).''.
(c) Special Rule for Certain Petroleum Taxes.--Subsection
(c) of section 907, as amended by subsection (b), is amended
to by adding at the end the following new paragraph:
``(7) Oil and gas taxes.--In the case of any tax imposed by
a foreign country which is limited in its application to
taxpayers engaged in oil or gas activities--
``(A) the term `oil and gas extraction taxes' shall include
such tax,
``(B) the term `foreign oil and gas extraction income'
shall include any taxable income which is taken into account
in determining such tax (or is directly attributable to the
activity to which such tax relates), and
``(C) the term `foreign oil related income' shall not
include any taxable income which is treated as foreign oil
and gas extraction income under subparagraph (B).''.
(d) Conforming Amendments.--
(1) Subparagraph (C) of section 907(c)(1), as redesignated
by this section, is amended by inserting ``or used by the
taxpayer in the activity described in subparagraph (B)''
before the period at the end.
(2) Subparagraph (B) of section 907(c)(2) is amended to
read as follows:
``(B) so much of the transportation of such minerals or
primary products as is not taken into account under paragraph
(1)(B),''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 303. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
The percentage under subparagraph (C) of section 401(1) of
the Tax Increase Prevention and Reconciliation Act of 2005 in
effect on the date of the enactment of this Act is increased
by 3.00 percentage points.
TITLE IV--OTHER PROVISIONS
Subtitle A--Studies
SEC. 401. CARBON AUDIT OF THE TAX CODE.
(a) Study.--The Secretary of the Treasury shall enter into
an agreement with the National Academy of Sciences to
undertake a comprehensive review of the Internal Revenue Code
of 1986 to identify the types of and specific tax provisions
that have the largest effects on carbon and other greenhouse
gas emissions and to estimate the magnitude of those effects.
(b) Report.--Not later than 2 years after the date of
enactment of this Act, the National Academy of Sciences shall
submit to Congress a report containing the results of study
authorized under this section.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,500,000 for
the period of fiscal years 2008 and 2009.
SEC. 402. COMPREHENSIVE STUDY OF BIOFUELS.
(a) Study.--The Secretary of the Treasury, in consultation
with the Secretary of Agriculture, the Secretary of Energy,
and the Administrator of the Environmental Protection Agency,
shall enter into an agreement with the National Academy of
Sciences to produce an analysis of current scientific
findings to determine--
(1) current biofuels production, as well as projections for
future production,
(2) the maximum amount of biofuels production capable on
United States farmland,
(3) the domestic effects of a dramatic increase in biofuels
production on, for example--
(A) the price of fuel,
(B) the price of land in rural and suburban communities,
(C) crop acreage and other land use,
(D) the environment, due to changes in crop acreage,
fertilizer use, runoff, water use, emissions from vehicles
utilizing biofuels, and other factors,
(E) the price of feed,
(F) the selling price of grain crops,
(G) exports and imports of grains,
(H) taxpayers, through cost or savings to commodity crop
payments, and
(I) the expansion of refinery capacity,
(4) the ability to convert corn ethanol plants for other
uses, such as cellulosic ethanol or biodiesel,
(5) a comparative analysis of corn ethanol versus other
biofuels and renewable energy sources, considering cost,
energy output, and ease of implementation, and
(6) the need for additional scientific inquiry, and
specific areas of interest for future research.
(b) Report.--The National Academy of Sciences shall submit
an initial report of the findings of the report required
under subsection (a) to the Congress not later than 3 months
after the date of the enactment of this Act, and a final
report not later than 6 months after such date of enactment.
Subtitle B--Application of Certain Labor Standards on Projects Financed
Under Tax Credit Bonds
SEC. 411. APPLICATION OF CERTAIN LABOR STANDARDS ON PROJECTS
FINANCED UNDER TAX CREDIT BONDS.
Subchapter IV of chapter 31 of title 40, United States
Code, shall apply to projects financed with the proceeds of
any tax credit bond (as defined in section 54A of the
Internal Revenue Code of 1986).
The SPEAKER pro tempore. Pursuant to House Resolution 1001, the
gentleman from New York (Mr. Rangel) and the gentleman from
Pennsylvania (Mr. English) each will control 45 minutes.
The Chair recognizes the gentleman from New York.
Mr. RANGEL. Mr. Speaker, I have asked the nonpartisan Joint Committee
on Taxation to make available to the public a technical explanation of
the tax provisions of H.R. 5351. The technical explanation expresses
the committee's understanding and legislative intent behind this
important legislation. This explanation, document JCX-19-08, is
currently available on the Joint Committee's Web site.
H.R. 5351 presents a step in the right direction as Congress moves to
address the issue of climate change and energy security.
Mr. Speaker, we have an opportunity today to once again visit this
important international and certainly national crisis that our country
is facing today. Richard Neal, an outstanding member of the Oversight
Committee, working with my dear friend, Phil English, was able to
explore how the Congress might be more aggressive in dealing with this
serious problem.
It is clear that one day our children and grandchildren will be
asking us, during this period of time, what were we doing as relates to
climate control. What role did we play to avoid our dependency on
fossil fuel? How many lives have been lost as a result of our Nation
feeling insecure about oil reserves throughout the world? Did we
attempt to conserve? Did we protect the Earth? Did we create the jobs?
Did we fulfill our moral obligation?
I hate to see that the record is going to say that here we go again,
that we have done this before, that the Senate hasn't acted, or that
other Members would take the time to talk about
[[Page H1102]]
other pieces of legislation instead of devoting all of their attention
as to how we can make this issue one that the President can come to the
table and join with us and attempt to resolve.
Mr. Speaker, we have an obligation to find renewable sources of
energy, to conserve what we have, to test the winds, the waters, solar,
to do all that we can to make certain that we meet the challenges that
arise on our watch.
And so I reserve the balance of my time, Mr. Speaker, but I do hope
that the discussion we have today, that Members realize that the whole
world is watching, history is being made, and it is our choice as to
whether we have made a positive contribution or whether some Members
have preferred to be a political impediment to that progress. But no
matter how many times we are rejected by the Senate, our Speaker and
leadership are committed to be able to say that on our watch, while we
were here, we have done all we could do in order to face and resolve
this serious problem.
I reserve the balance of my time.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield myself such time as
I may consume.
Mr. Speaker, it was Ralph Waldo Emerson who once wrote that a foolish
consistency is the hobgoblin of little minds, adored by little
statesmen and philosophers and divines.
Mr. Speaker, our friends on the other side of the aisle have today
trumpeted forward an energy bill which they claim will promote
America's energy independence. As the chairman of the Ways and Means
Committee noted, this is a serious issue. But for those of you who are
inclined to actually keep track of these things, this is actually the
fourth time that the majority has advanced this particular flawed
proposal in one form or another. That to me is a foolish consistency,
or just like a broken record, this bill clearly is not playing with the
American people.
We fear that it will harm consumers, both individual consumers and
companies, and it will also hurt the competitive position of the
American economy. At a time when that economy is teetering on the lip
of a recession and we are passing through this Chamber stimulus
legislation, Washington ought to think twice before we go forward with
a bill like this instead of embracing an energy policy that meets the
needs of our economy now and that anticipates the challenges of the
future.
It is clear today that the majority have not chosen this necessary
path. In reality, Mr. Speaker, our friends on the other side of the
aisle have presented the House Chamber with a placebo that will
ultimately reduce domestic energy production, will punish American
energy companies that do what we want them to, and that is invest their
profits in exploration here at home, will encourage greater dependence
on foreign oil, and will potentially damage America's manufacturing
base.
{time} 1300
This bill is not a serious solution. It is ``energy policy-lite,''
and it is clearly intended to appeal more to the blogosphere than to
market forces. The Democrat solution to America's energy crisis is to
single out what they claim are the five largest oil and gas producers
for a tax increase.
The fact is, Mr. Speaker, this legislation is not likely to impact
oil producers' profits in any way, shape, or form. It is also not
limited to the five largest producers, as they claim. The one thing you
can be sure that this bill will do is raise prices at the pump for
American consumers and create a looming sense of uncertainty which will
compound the forces increasing prices today in the marketplace.
Furthermore, it creates disincentives that will erode the supply of
domestic natural gas and oil and increase our country's energy imports.
While H.R. 5351 not only forces our country to become more dependent on
foreign oil, it will also force America's working families to bear the
brunt of increased energy costs. The effects of high gas prices will
ripple through the economy, increasing prices on everything from
electronics to school supplies.
H.R. 5351 is also, I am afraid, an assault against America's
manufacturing base. Using nearly one-third of the Nation's energy both
as fuel and feedstock, energy production is the very heart of American
manufacturing. With such an energy-intensive sector, raising energy
prices will make domestic manufacturers less competitive in the world
market, forcing more of our good-paying manufacturing jobs to go
overseas.
Mr. Speaker, I have long advocated for a comprehensive energy plan
that will reduce our dependence on foreign oil and increase Americans'
access to clean, affordable, and dependable energy for their cars,
their homes, and their businesses. Yet, here again, Mr. Speaker, this
bill is moving in the wrong direction. It throws effective incentives
for producing renewable energy out the window and replaces them with
backward and broken provisions.
In this bill, the wind credit gets a substantial modification that
will dramatically reduce its effectiveness for some of its most
successful consumers. This will eliminate a critical incentive to
increase renewable energy sources, one that has worked.
Mr. Speaker, this version of the Democrats' energy bill is also in an
odd way hostile to domestic not only economic interests, but I would
argue foreign policy interests. This bill raises taxes on American oil
producers while cutting a break for the Venezuelan state-owned oil
company, CITGO. In effect, Mr. Speaker, this legislation will take away
incentives that have proven to bolster domestic energy production right
here at home, while giving more American dollars to, I guess we would
call him a tin horn leftist dictator who has threatened to sever
Venezuelan energy supplies destined to the United States. Clearly,
America's best interests are not in the heart of this plan.
This bill further repeals the domestic manufacturing deduction for
domestic oil and gas companies, but allows all other oil and gas
companies to receive a 6 percent deduction. This creates a situation
whereby foreign-owned companies can claim the U.S. domestic
manufacturing deduction, but certain U.S. employers can't.
H.R. 5351 is simply not the answer. It wasn't in any of its three
previous incarnations, and it isn't today. This legislation threatens
America's investment, threatens Americans' jobs, threatens the American
economy, and puts the consumer at a disadvantage.
Mr. Speaker, I urge that we defeat this here today.
Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, referring to the threat of the national security of the
oil producers in Venezuela is a clear example of a failed energy policy
in this country, whether it is South America or whether it is the
Middle East. But it should be pointed out for the record, as compiled
by the Center for American Progress, profits during the Bush
administration for oil companies have risen from $30 billion to $103
billion. We don't think it is asking too much for them to assist in
partnership to find out whether there is a better way to fuel our
energy needs.
Mr. Speaker, I yield 2 minutes to the gentleman from Michigan (Mr.
Levin), an outstanding Member of the Congress and distinguished member
of the Ways and Means Committee.
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LEVIN. Mr. Speaker, as you listen to the minority, it shows the
bankruptcy of their approach to energy. They have been in control of
this town for all these years, and we have moved backwards. So, instead
of coming up now with an alternative of their own, what they do is
raise arguments that are so irresponsible. For example, about raising
gas prices. The Joint Economic Committee has refuted that.
There isn't a single argument that Mr. English raised that can bear
any weight of observation. It is absolutely mysterious why, in a time
of global warming, what they do on the minority side is come here with
a cold shoulder.
This is a responsible bill, a balanced bill. It addresses long-term
needs on energy, long-term incentives for renewable energy, solar,
wind, biomass, and also tries to give impetus to the use of biofuels
like E85, and actually tries to make some progress with the deployment
of pumps. Also, in terms of what we use every day, refrigerators,
washing machines, there is an incentive here to increase the efficiency
and also to do so with American jobs.
So I stand here today wondering, where have you been all of these
years
[[Page H1103]]
when you controlled this institution and the White House? And that is,
I think you have not only been out to lunch, but you have been out to
dinner, and you come here today with nothing but attacks that are
unwarranted.
Mr. Speaker, I urge that we move this bill once again, and hope the
Senate will find the 60 votes and that the President will come to his
senses on energy in this country.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield myself 15 seconds
simply to point out to the other gentleman that some of the provisions
that he cited were actually originally written into the law during
Republican Congresses when we were in the majority and when we were
fighting against their opposition to pursue these important
conservation measures.
Mr. Speaker, I yield 3 minutes to a distinguished member of the Ways
and Means Committee, the gentleman from Texas (Mr. Brady).
Mr. BRADY of Texas. Mr. Speaker, I don't want to burst anyone's
rhetorical bubble here, but this is not a new direction in energy. We
ought not oversell this bill. It has some good things we all support,
renewable investments and renewables for wind and solar and biomass,
hydro and others, which are really good, but 90 percent of this bill is
just an extension of what is already in law today.
The only new direction in this bill is that we are outsourcing
American energy jobs and raising prices at the pump.
A couple years ago, Congress, worried about too many jobs going
overseas, sat down and worked out a new Tax Code that said if you
invest, produce, and create jobs here in America, we will give you a
lower tax rate than if you do the same overseas. What this bill does is
it singles out one American industry, the energy industry, and says no,
but not for you. We are going to treat your jobs like foreign jobs. We
are going to treat your investments like foreign investments. We are
going to treat you as foreign companies, just so we can take your
money.
Here we are, almost 2 million American energy jobs at risk, people
who have mortgages, have children, are day-to-day doing good work
providing us energy, all of a sudden they don't matter anymore. As a
result, here we are, facing recession, job losses in America, Michigan,
Ohio, and across this country, and we are willing to outsource our
American jobs overseas for a political exercise.
The result of this bill, there will be less investment in American
energy, there will be less production of American energy, we will have
more dependence on foreign oil, and we will have higher fuel prices.
Make no mistake, politicians are shooting at Big Oil, but they are
hitting American energy workers and they are hitting families in the
pocketbook. Whenever there is no argument left, you will hear this:
ExxonMobil is making record profits. You will hear it over and over
again.
Well, politicians in Washington ought to hold a mirror up to find out
why there are record profits. We have locked off reserves in the gulf
and ANWR. We have locked off oil shale. We are killing coal. We are
chasing American energy deeper and deeper into costly offshore areas.
More and more of the world's oil reserves are held in unstable
governments: Russia, Venezuela, Iran. No wonder prices are so high. The
world knows Americans won't take responsibility for its own energy
needs, won't explore in stable governments like ourselves, so the
American public is paying a political tax at the pump because we won't
take responsibility for our own energy needs.
What this Congress has done to lower fuel prices: allowed people to
sue OPEC, promoted longer-lasting light bulbs, and, to their credit,
directed higher fuel mileage, which is good for everyone but American
automakers.
The false choice today is punish American energy, or renewable
energy. No. This country needs to do both. Invest in America's
traditional energy supply and go after new energy.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the gentleman from Texas and the distinguished member of
the Ways and Means Committee I think explained why there are such high
profits in the oil industry, and if that is the explanation, I assume,
if they are looking forward to continuous higher profits as they have
been reaping during this administration, that they are in support of
this legislation.
Mr. Speaker, I yield 3 minutes to the gentleman from Washington (Mr.
McDermott), a member of the Ways and Means Committee.
Mr. McDERMOTT. Mr. Speaker, the gentleman from Texas brings tears to
my eyes. Big Oil has America over the proverbial barrel. Not only are
we paying $100 a barrel for oil and over $3.30 a gallon at the pump,
and it will soon be $4.00, not only are oil companies piling up record
profits at $10 billion a quarter, but the American people are sending
truckloads of taxpayer money to fatten Big Oil's wallet every month.
The legislation before us would stop the madness of American people
subsidizing oil companies after they got their Republican friends in
the White House and the people's House to give them a windfall they
didn't earn, didn't deserve, and don't need.
The legislation before us today will keep America on course to a
sustainable renewable energy future. We can dramatically reduce the
energy consumption by dramatically increasing energy efficiency, and
this bill does that, using tax credits and interest-free financing to
partner with the American people to enable them to renovate their
homes, to reduce consumption, and to install efficient appliances.
We can dramatically increase the development and deployment of
alternative fuels like biodiesel and produce advanced biodiesel fuels
with an even lower carbon footprint. And this bill goes in the right
direction. We can dramatically increase the development of clean and
renewable sources like solar, and this bill does that. Extending the
investment tax credit for solar energy production will keep 240 million
tons of CO2 out of the atmosphere. That is like parking 52
million cars.
Today we declare that America will not permit corporate greed to
force the American people to choose between food on the table and fuel
to heat their house or get to work. Today we declare that America will
put Americans ahead of Big Oil. Today we declare that America will
power tomorrow with clean, renewable, and sustainable resources. And
today we declare we will consume less power tomorrow.
I urge my colleagues to pass this legislation and declare the dawn of
a new day in America, when the rising sun not only symbolizes the hope
for a new day, but delivers the energy for a tomorrow.
{time} 1315
Mr. ENGLISH of Pennsylvania. Mr. Speaker, may I inquire how much time
is remaining on both sides.
The SPEAKER pro tempore. The gentleman from Pennsylvania has 35\3/4\
minutes remaining. The gentleman from New York has 35\1/2\ minutes
remaining.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, it is my privilege to yield
3 minutes to the gentleman from California and a senior member of the
Ways and Means committee, Mr. Herger.
Mr. HERGER. Mr. Speaker, today's bill is eerily reminiscent of
legislation we saw back in August, modest renewable energy tax
incentives, which I have long supported, mixed with a reformulation of
billions of dollars in new taxes on America's predominant energy
manufacturers.
Apparently the majority is more interested in scoring political
points than in providing anything close to an energy plan. The
Democrats even make sure to preserve a carveout that will enable Hugo
Chavez's Venezuela state-owned oil company to claim a U.S. tax
deduction.
When our constituents ask us to do something about gas prices, they
don't want us to raise them. Yet by increasing taxes on U.S. energy
manufacturers by more than $17 billion, this bill creates a significant
disincentive for domestic production, decreasing our energy security
and increasing our overreliance on uncertain foreign supplies.
Expanding the diversity of our domestic supplies is one step. That
will be accomplished over time through tax incentives such as the
energy investment and production tax credit for resources like forest,
biomass, geothermal and solar energy.
But we can't possibly hope to meet demand by raising taxes and making
[[Page H1104]]
U.S. production even more costly. While it may make a nice talking
point, taxes won't help our constituents or make energy less costly.
I urge my colleagues to oppose this bill.
Mr. RANGEL. Mr. Speaker, I yield 30 seconds to the gentleman from
Oregon (Mr. Blumenauer).
Mr. BLUMENAUER. Would the gentleman from California be kind enough to
specify specifically what the carveout he thinks is in this bill for
Hugo Chavez.
Mr. HERGER. With the carveout, I noticed that we are taxing those
American companies producing in the United States.
Mr. BLUMENAUER. So there is no carveout for Hugo Chavez.
Mr. HERGER. But it leaves a carveout because it doesn't touch or
affect Hugo Chavez.
Mr. BLUMENAUER. Reclaiming my time, it is very clear that the
gentleman does not know of any ``carveout'' for Hugo Chavez. He is just
talking about the largest five oil companies that under this bill would
get an unnecessary tax subsidy and instead would go to emerging
technologies that do need the help.
Mr. RANGEL. I would like to yield 3 minutes to an outstanding Member
of Congress who has worked so hard on the Ways and Means Committee, Ms.
Schwartz of Pennsylvania.
Ms. SCHWARTZ. Mr. Speaker, last week the price of oil surpassed $100
per barrel for the first time ever. American families are hurting from
these record prices. Gas prices are up 17 cents in just the last 2
weeks. Since 2001 when President Bush came into office, gas prices have
doubled, up to $3.13 a gallon from $1.47 in 2001.
At the same time, oil company profits have tripled, from $30 billion
in 2001 to $123 billion in 2007. ExxonMobil alone had a profit of $40
billion, $132 for every American citizen.
It's time our country set a new direction for energy policy by taking
advantage of America's greatest resource, our ingenuity and our
innovation. This legislation embraces this goal. It accelerates the use
of clean domestic renewable energy sources and alternative fuels
through long-term extension of production tax credits.
This legislation increases research, development and deployment of
clean, renewable energy-efficient technology, and this legislation
promotes the use of energy-efficient products and conservation,
including a provision for energy-efficient commercial buildings, which
I introduced as separate legislation called the Buildings for the 21st
Century Act. That's why this bill was endorsed by the 83,000-member
American Institute of Architects.
The American Institute
of Architects,
February 24, 2008.
Hon. Nancy Pelosi,
Speaker of the House, Capitol Building, Washington, DC.
Hon. Harry Reid,
Senate Majority Leader, Capitol Building, Washington, DC.
Dear Speaker Pelosi and Leader Reid: The American Institute
of Architects (AIA) commends you for your leadership in
advancing legislation that will put America on the path
towards energy independence. While our nation has made great
strides in pursuing energy efficiency and developing
renewable energy sources, the AIA believes that the federal
government can and must do more to bring energy efficient
technologies to the marketplace.
One of the most effective strategies to do this is through
tax incentives. We therefore strongly support provisions
within H.R. 5351, that provide tax incentives to spur the
construction of energy efficient buildings and encourage
businesses to use renewable sources of energy, specifically
solar power.
In order to significantly improve energy efficiency in the
United States, we must make a serious commitment to designing
and constructing more energy efficient buildings. The
building sector is one of the largest consumers of energy in
our nation and is responsible for a massive share of the
electricity used. Section 233 of H.R. 5351 extends the Energy
Efficient Commercial Buildings Tax Deduction. This deduction
will provide the necessary incentives to stimulate the design
and construction of more energy efficient buildings in the
United States. We urge Congress to include an extension of
the Energy Efficient Commercial Buildings Tax Deduction in
the energy tax package.
This year, Congress has a unique opportunity to pass energy
legislation that will set our nation on the path to a secure
energy future. To meet this challenge, Congress should pursue
policies that will both reduce the amount of energy our
nation's buildings consume and increase the use of renewable
sources of energy.
Providing tax incentives to achieve these goals is one of
the most effective tools Congress can use to achieve these
goals. For these reasons the AIA strongly urges Congress to
pass H.R. 5351.
Sincerely,
Andrew L. Goldberg,
Senior Director, Federal Affairs.
Cynics say that America isn't ready to embrace an economy that runs
on a diversity of clean, American-made energy, but our renewable energy
industries are ready to make America more energy independent, more
energy efficient and ready to run on safer, cleaner and cheaper energy.
This bill before us moves us more quickly and more deliberately towards
this goal. It will make us safer, healthier and more economically
competitive in the future.
And we pay for this bill. We do so by repealing taxpayer subsidies
for the five biggest oil companies, redirecting these revenues towards
these renewable sources of energy and energy conservation, creating new
jobs in America and spurring new economic development.
I urge all of us who believe in the capacity of American innovation
to power American businesses and industries and to make us more energy
independent, to build a safer, cleaner future for all of us to support
this legislation and to pass it today.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I would first like to yield
myself 30 seconds to clear the record.
It has been intimated here that somehow Hugo Chavez's CITGO does not
get a special break, and yet the definition in the bill, I think,
clearly excludes it. Basically this bill would repeal the special
domestic manufacturing deduction for major integrated oil companies,
but under the strict definition included, CITGO is not defined as a
major integrated oil company since it does not produce crude oil
itself. Based on this, CITGO would continue to receive the domestic
manufacturing deduction while a number of U.S.-based companies will
not.
With that I will retain the balance of my time but yield 3 minutes to
a very distinguished member of the Energy and Commerce Committee and
ranking member of the Energy and Air Quality Subcommittee, the
gentleman from Michigan (Mr. Upton).
Mr. UPTON. Mr. Speaker, by the year 2030, our country is going to
need between 40 and 50 percent more energy, and that means we need more
nuclear, we need more clean coal, we need more renewable, we need
better technology, carbon sequestration and, yes, we do need tax
incentives for wind and solar, there is no question about that.
But raising taxes on the oil and gas industry is not the answer. My
State of Michigan in answer to our budget woes, in fact, did raise
taxes. And a couple of things are happening: people are leaving and so
are businesses.
Many of us in this body have been complaining for years that we
didn't have new refineries being built and established in this country.
We passed the 2005 act and we have seen some changes. What's going to
happen if we take those incentives away? We are not going to see new
refinery capability again come back to this country.
We need to have incentives in place to help our oil and gas industry.
And to take those incentives away, well, they are going to leave.
Frankly, I view that as a national security issue.
Countries overseas would love this bill to pass. Countries like
India, they can hardly wait for us to raise taxes here so that they
will have a better advantage as they build new refineries to send their
refined oil to this country.
In fact, right now, 10 percent of the gasoline that comes to this
country comes from refineries overseas. That wasn't always the case,
but it is today.
So what's going to happen if we raise the taxes? Two things: number
one, we will have further incentives to have those companies leave and
costs are going to be passed on to the consumer. With gas prices, at
least in my district, already averaging about $3.30 a gallon and
reports that they are going to go to $4, what's going to happen then?
Those costs are going to be passed along. Does anyone really think that
this is going to help?
[[Page H1105]]
Now most of our renewable sources, wind, hydro, solar, those
facilities are, frankly, where there are not often a lot of energy
needs. They are not in our big cities. They are not in our suburbs.
I don't know if you can remember, but this last summer, we had a vote
that, in fact, was somewhat regional in nature, but it took away, it
took a stand on a new transmission line that impacted folks here in the
Northeast. I viewed it as a test vote as to whether additional
renewables, services, that we do want, would we have the transmission
line to actually send that energy to our cities and to our suburbs.
I don't know if you saw yesterday's USA Today, but ``Lines Lacking to
Transmit Wind Energy,'' we don't have the sources in it. It takes 5 to
10 years to build these transmission lines, and yet it only takes about
18 months to build the wind and other different devices that we have.
But if you don't have the transmission, we can't get that energy to our
folks that need it the best.
I'll bet that just about all those that voted to deny that
transmission line last summer will be voting for this bill. You can't
have it both ways. Let's have a serious discussion that's bipartisan to
address the country's energy needs.
Mr. RANGEL. Mr. Speaker, it seems as though a lot of attention is
being given to Hugo Chavez and CITGO and, I guess, Castro and maybe
Osama bin Laden, but when the final record is established, it would be
that we have a lousy energy policy in this country. We just hope you
would join with us in trying to protect our great national security.
I would like to yield 3 minutes to Richard Neal from Massachusetts,
the subcommittee chairman of oversight, who has done a fantastic job on
this subject, and for this your Nation is thankful.
(Mr. NEAL of Massachusetts asked and was given permission to revise
and extend his remarks.)
Mr. NEAL of Massachusetts. Let me commend Mr. Rangel again for his
continued leadership on a very important national issue.
Mr. Speaker, this morning's New York Times headlines tell part of the
story: ``Gas Prices Soar, Posing a Threat to the Family Budget.'' Gas
prices have been soaring for the last 2 years. Last evening's newscast
led with, ``What's Happened to Gasoline Prices?''
If you live in the Northeast, Mr. Speaker, you know what's happened
to low-income and middle-class families during this winter heating
season. They are struggling to pay energy costs that have skyrocketed
in the middle of a harsh winter.
The elderly are particularly vulnerable at a time when they are
trying to secure medicine, food and other daily necessities.
Circumstances similar to this were evident last week when HHS belatedly
released $40 million in emergency contingency funds from the Low Income
Home Energy Assistance Program, LIHEAP.
By the way, for our Republican friends who might have forgotten, it
was Congressman Silvio Conte, a Republican, who helped to inaugurate
the LIHEAP program here in Congress that has done so much good for all
Americans.
We can and should do more so that struggling people don't have to
fear the possibility of going to bed in a cold house. In a Nation that
has been blessed with so much, we ought to be able to agree on the
necessities of food and medicine and shelter, and, yes, to make sure
people don't go to bed in a cold house.
This bill offers important incentives for renewable and efficient
energy programs, as well as energy conservation.
We held hearings last year on all of these initiatives. They were met
with standing-room-only audiences. People are anxious to explore the
advantages of alternative energy resources.
This legislation in front of us today helps to invite a debate and a
discussion about where we need to go as a Nation. This important
legislation calls attention to the opportunity to promote progressive
energy and cost savings for the American family.
Whether it's clean, renewable energy bonds for municipalities,
something I am particularly excited about, and my guess is even those
who don't like this bill today on the Republican side, they will
encourage their municipalities to take advantage of these opportunities
should they arise.
It also offers a residential energy-efficient property credit. It
offers improved incentives for businesses to deploy wind, solar,
geothermal and other promising technologies.
I would think if you were a Member of Congress from Texas, you
certainly would like the incentives that are offered here on the basis
of wind power.
This legislation will put us on a path to cleaner, greener and
stronger families and a stronger America.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, it is now my privilege to
yield 2 minutes to a distinguished member of the Energy and Commerce
Committee, the gentlelady from Tennessee (Mrs. Blackburn).
Mrs. BLACKBURN. Mr. Speaker, I rise today to oppose this bill. It
doesn't produce one bit of energy. It does not generate one kilowatt of
electricity. It does not move us toward energy independence. Certainly
those are things that need to be a priority when we discuss energy.
Now the price of a barrel of oil, we have talked about that today. It
is topping $100, but where was it a year ago? It was at $56 for a
barrel of oil.
{time} 1330
I like to talk about what that means to my consumers and the impact
that has on my constituents in my district. We have seen the price of a
gallon of gas go up 75 cents per gallon in the Seventh District of
Tennessee over the past year. Let's say a typical mom in Tennessee's
Seventh Congressional District fills up her 15-gallon tank once a week.
That is $47 per fill-up. Every month she is spending $44 more on that
gasoline than she was last February. The difference for the year is
$528 more coming out of her pocket to pay the additional energy cost.
Now, there is a bill before us that would tax energy companies and
stop new domestic oil and gas production and discourage new investments
in refinery capacity. Instead of making America more energy secure, we
are seeing things that would drive us to be more dependent on sources
from Venezuela, Saudi Arabia, and other nations.
It would be great if we were to have a debate on revolutionizing
energy and revolutionary energy legislation. But, in reality, the
legislation we are discussing today does not alleviate the strain on
the consumers. It would be great if we were talking about energy
independence. It would be great if we were talking about increasing
refinery capacity and if we were going to look at short-term, mid-
range, and long-term solutions to our Nation's energy needs.
I would encourage all to oppose this bill. Let's talk about solving
the energy problem.
Mr. RANGEL. Mr. Speaker, when history is reviewed and we see where
our Nation is and what bright light we have in not just identifying the
problem but providing the solutions, the Speaker has given us all an
opportunity to be a part of that great compromise in terms of working
with the private sector and working with Republicans and Democrats. And
it doesn't make any difference how many setbacks we have, the
commitment she made continues. And until we can get a bipartisan ear in
the White House, or until the Senate understands that our time has come
to face up to the problems in terms of global warming and national
security and in terms of the ever-increasing costs of fuel, and to be
able to say on our watch we met the challenge and we moved forward, no
one voice, no one leader has provided more of an opportunity for us to
resolve this serious problem than the Speaker of the House of
Representatives. It is indeed my privilege to yield 1 minute to her at
this time.
Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding, for his
very generous remarks, and for his tremendous leadership. Once again,
he is providing an opportunity for this Congress to come down on the
side of America's families instead of a special interest. Once again,
he has come down at a place that talks about energy independence and
security for our country.
One year ago, actually a little longer, in January of 2007, Mr.
Rangel brought to the floor legislation similar to this. What it did
was to repeal the subsidies for Big Oil and to use the funds for
research into renewable energy resources
[[Page H1106]]
and incentives, tax incentives for that purpose. The bill passed the
House overwhelmingly. It again passed as part of our bipartisan energy
bill, but it did not survive the Senate because the President
threatened to veto the bill if these subsidies to Big Oil were
repealed. Imagine that. And so the energy bill, as much of a triumph as
it was by having new CAFE standards for the first time in 32 years in
the bill, did not have this very important other part, which would be
the tax incentive for renewable energy resources.
Again, I thank Chairman Rangel for his persistence and for bringing
this legislation to the floor now to give us this very special
opportunity.
When Mr. Rangel first brought the bill to the floor last January,
since then the price of gasoline at the pump has gone up 75 cents; 75
cents since we first took up this legislation. Imagine what that means
to a household income. It is 17 cents, the price at the pump has
increased 17 cents just in the past 2 weeks. Just yesterday, oil prices
reached another new record at more than $101 per barrel. This is at a
time when oil companies are making record profits.
Listen to this, my colleagues. Last year, ExxonMobil earned $40.6
billion in profit; $40.6 billion in profit. The largest corporate
profit in American history. And yet, the administration refuses to
repeal billions of dollars in subsidies to Big Oil.
This bill repeals those subsidies and invests in clean renewable
energy that will put us on a path toward energy security and energy
independence in a fiscally responsible way, by repealing subsidies to
Big Oil, only to Big Oil, already making record profits.
With the Renewable Energy and Energy Conservation Tax Act that we are
considering today, we have the opportunity to invest in clean,
renewable energy and energy efficiency and grow our economy, creating
new jobs, lower energy costs, strengthen national security and reduce
global warming.
This legislation, and it is very important because there are so many
people across the country who are being innovators, who are being
disrupters, who are making change, and this change centering around
energy is very, very important, and this legislation is vital to them.
This legislation strengthens and extends the production tax credit
which will spur deployment of wind, biomass, geothermal, hydropower,
tidal, and landfill gas. It extends the solar and fuel cell investment
tax credit and offers tax incentives for residential solar, wind, and
geothermal technologies. It creates a new production tax credit for
cellulosic ethanol and extends the biodiesel production tax credit.
It expands the tax credit for gas stations that install alternative
fuel pumps, such as the E85 pumps.
It includes tax incentives to promote greater efficiency for homes
and businesses and creates a new tax credit for plug-in hybrid
vehicles.
It creates a new category of tax credit bonds to fund local
initiatives to promote the deployment of green technologies. I know
this has been said before. I reiterate this because this is very, very
important and represents real change for our country.
This bill helps create broadly based prosperity with an $18 billion
investment in the future. It will spur the production of clean
renewable energy resources and provide business with the certainty
necessary to make long-term plans to build viable and sustaining
markets for these technologies. This is all about answers in the
marketplace.
It will ensure that we keep the jobs that were created with the
renewable tax credits and create hundreds of thousands more, the next
generation of good-paying, green collar jobs that will be right here in
America.
Because this legislation is vital for a greener and more prosperous
future, it is supported by a broad coalition from business,
environmental, and labor communities, from corporations such as Home
Depot and Dow Chemical Company, to the Sierra Club, to the United
Steelworkers and the National Farmers Union. I have a long list which I
will submit for the Record, corporate, labor, Florida Power & Light
Company. The list goes on and on. MMA Renewable Ventures, National
Association of Home Builders, National Association of Industrial and
Office Properties, National Association of Realtors, National
Electrical Manufacturers, Dupont, Earth Justice, all on the same page.
The list goes on and on and on.
This Congress has already taken action to send our Nation in a new
direction of energy independence, as I mentioned, by increasing fuel
efficiency standards for the first time in 32 years. That was
bipartisan legislation signed into law by the President. What is
missing are these tax incentives that the distinguished chairman, Mr.
Rangel, is bringing to the floor today.
Energy independence is an economic issue in terms of budgets for
America's families and creating new green jobs. It is an urgent
national security issue to reduce our dependence on foreign oil. It is
an environmental and health issue to reduce global warming and protect
the health of our children, and it is a moral issue to care for our
planet. We work closely with the evangelical community on these issues
because they believe, as do I, that this planet is God's creation and
we have a moral responsibility to preserve it.
I urge my colleagues to support the Renewable Energy and Energy
Conservation Tax Act of 2008 and, in doing so, take the next step for a
green economy, green jobs, and a green future.
February 26, 2008.
Dear Representative: As a coalition of businesses,
environmental groups, investors, labor, nongovernmental
organizations, public health organizations, and utilities we
urge you to vote yes on the Renewable Energy and Energy
Conservation Tax Act of 2008 (H.R. 5351). The bill would
extend federal tax incentives for energy efficiency and
renewable energy technologies that have expired or will
expire at the end of this year. These incentives must be
extended immediately to avoid significant harm to the
developing clean energy industries in the United States. The
technologies produced by these industries play a vital role
in reducing global warming pollution, creating new high-wage
jobs in our country, and saving consumers and businesses
money on their energy bills.
H.R. 5351 would extend tax incentives for renewable energy
production, energy efficiency in commercial buildings,
investment in solar electric systems, use of efficient home
heating and cooling equipment, production of efficient home
appliances, efficiency retrofits to existing homes, and
consumer purchases of energy efficient products.
The incentives in H.R. 5351 would remain effective for
multiple years, which is essential for the development of the
clean energy technology industries. Congress has historically
extended the clean energy incentives in two-year increments,
which creates a boom-bust cycle for the technologies covered
by the incentives. This cycle undermines the efficient
development of the clean energy technology industries into
mature industries.
Most of the incentives in H.R. 5351 have either expired or
will expire at the end of this year. It is critical for the
sustained development of the clean energy technology
industries that these incentives be continued. A disruption
of the incentives would lead to layoffs and a decrease in
much needed private capital flowing to these industries.
According to a recent study by Navigant Consulting, allowing
the renewable energy incentives to expire would lead to about
116,000 jobs being lost in the wind and solar industries from
now until the end of 2009.
Although H.R. 5351 was introduced without an extension of
the efficient new home tax credit and certain critical
changes to the energy efficiency and renewable energy
incentives, we look forward to working with you to
incorporate the efficient new home credit and these
enhancements into the bill later in the legislative process.
America is on the cusp of a new, clean energy economy. The
clean energy tax incentives in H.R. 5351 would help our
country make the transition to this economy--an economy
powered by low-carbon technologies that help solve global
warming, reduce energy prices for consumers and create new
high-wage jobs. We urge you to vote yes on H.R. 5351.
Sincerely,
Abengoa Solar; Akeena Solar; Alliance to Save Energy;
Ameresco; American Institute of Architects; American
Council for an Energy Efficient Economy (ACEEE);
American Council on Renewable Energy (ACORE); American
Rivers; American Wind Energy Association; Applied
Materials, Inc.; Apricus Inc.; American Society of
Heating, Refrigerating and Air-Conditioning Engineers,
Inc. (ASHRAE); Association of Home Appliance
Manufacturers (AHAM); Audubon; Ausra, Inc.; Ballard
Power Systems; Best Buy Co., Inc.; BrightSource Energy;
Building Owners and Managers Association (BOMA)
International.
Business Council for Sustainable Energy; California
Energy Commission; California Solar Energy Industries
Association (CALSEIA); CCIM Institute; Climate
Solutions; Conenergy; Constellation Energy; The Dow
Chemical Company; DuPont; Earthjustice; Energy
[[Page H1107]]
Conversion Devices; Energy Innovations, Inc.;
Environment America; Environmental and Energy Study
Institute (EESI); Environmental Law & Policy Center
(ELPC); EPV Solar; Exelon Corporation; Florida Power &
Light Company; Friends Committee on National
Legislation (FCNL); Friends of the Earth; Fuel Cell
Energy.
Great River Energy; Greenpeace; GridPoint; The Home
Depot, Inc.; Hydrogenics; Institute of Real Estate
Management; Insulating Concrete Form Association;
International Council of Shopping Centers; Johnson
Matthey; Lowe's Companies, Inc.; Macy's Inc.;
Millennium Cell, Inc.; Mitsubishi Electric &
Electronics USA, Inc.; North American Insulation
Manufacturers Association (NAIMA); MMA Renewable
Ventures, LLC; National Association of Home Builders;
National Association of Industrial and Office
Properties (NAIOP); National Association of REALTORS;
National Electrical Manufacturers Association (NEMA).
National Small Business Association; National Tribal
Environmental Council; National Wildlife Federation;
Natural Resources Defense Council; New Voice of
Business; Northeast Public Power Association; Oerlikon;
Owens Corning; PG&E Corporation; Physicians for Social
Responsibility; Polyisocyanurate Insulation Manufacturers
Association (PIMA); Plug Power, Inc.; PPG Industries; PPM
Energy, Inc.; Public Citizen; Q-Cells AG; REgrid Power;
The Real Estate Roundtable; ReliOn; Retail Industry
Leaders Association.
Sacramento Municipal Utility District (SMUD); Safeway,
Inc.; SANYO Energy (U.S.A.) Corporation; SCHOTT Solar,
Inc.; Schuco USA LP; Sharp Solar; Sierra Club; SkyFuel
Inc.; Solar Energy Industries Association; Solar
Integrated; Solar Millennium LLC; Solar Power, Inc.;
Solar World; SOLEC-Solar Energy Corporation; Southern
Alliance for Clean Energy; Spire Solar, Inc.;
SunEdison; SunPower Corporation; Suntech America, Inc.;
Target Corporation.
Trane; Trinasolar; Union of Concerned Scientists; United
Solar Ovonic; USA Biomass; US Fuel Cell Council; The
United Steelworkers (USW); United Technologies
Corporation; The Vote Solar Initiative; Wal-Mart
Stores, Inc.; Western Organization of Resource Councils
(WORC); Western Renewables Group; Whirlpool
Corporation; Whole Foods Market, Inc.; Xcel Energy
Company; Yahoo! Inc.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 6\1/2\ minutes to a
distinguished member of the Ways and Means Committee, the gentleman
from Wisconsin (Mr. Ryan).
Mr. RYAN of Wisconsin. First, Mr. Speaker, let me talk about a
provision in here called New York Liberty Zone Tax Credits. I hope all
the Members understand that a precedent is being made right here today.
What this bill does is it gives the New York City government and the
New York State government the authority to take the withholding, the
Federal tax withholding from their employees and not send the money to
the Federal Government as every single other taxpayer in America is
made to do, but rather keep that money and spend it on rail
infrastructure. This sets up a whole new policy preference and
precedent that I think we should be alarmed about.
But I have one question for the distinguished chairman of the Ways
and Means Committee on this particular matter, and that is this. In
Senate Report 110-228, the director of the Joint Committee on Taxation
to the chairman of the Finance Committee says that this provision
constitutes a tax earmark given that it only goes to two taxpayers. So
in light of the fact that the head of the Joint Committee on Taxation
has specified in the Senate that this is a tax earmark, yet the
chairman has certified in this bill that there are no tax earmarks
contained in this legislation, could the chairman answer me: How does
one reconcile the fact that in this bill under the joint tax definition
there is a tax earmark, yet the chairman certifies that there are no
earmarks in this bill?
I would be happy to yield to the gentleman from New York to answer
the question. Just a brief yield, though.
Mr. RANGEL. I really want to thank the gentleman for the way you have
raised the question. Rumor had had it that you intended to attack this
provision of the bill.
Mr. RYAN of Wisconsin. With all due respect, Mr. Chairman, I am not
trying to attack a provision. I am simply trying to get an
understanding of what seems like something that is not reconciled.
Mr. RANGEL. I want to thank the gentleman for that, and what I was
about to say, that it didn't surprise me that you did not attack it. I
said rumor had it, but knowing the gentleman that you are and the
concern you do have for sound fiscal policy, I want to first thank the
gentleman for the way you raised the question and giving me an
opportunity to share this provision with you. And if necessary, I will
perhaps give myself additional time if you are not adequately
satisfied.
First of all, I think we all agree when 9/11 occurred and the World
Trade Center was hit----
Mr. RYAN of Wisconsin. If I could just interject for a second, there
are a few more points I would like to make on my time. With all due
respect, I would like to keep this brief.
Mr. RANGEL. If you are going to restrict my response, the general
explanation for what you ask is in the President's budget. He has
supported it in his budget, and the Joint Committee advisory opinion
has been superseded by the chairman of the committee, which is me, has
been authorized in support of requests by a Republican mayor and a
Republican Governor.
Now, the answer to what you want is in the Department of Treasury
report, 2008. If you don't want the details, then I yield back to you
and I cannot answer any further.
Mr. RYAN of Wisconsin. Reclaiming my time, and with all due respect,
I am simply trying to manage my time efficiently here.
Mr. RANGEL. I understand that, but you can't ask serious questions
and expect not to get answers.
Mr. RYAN of Wisconsin. Reclaiming my time, the administration does
earmarks in their budgets. That it is in the President's budget does
not mean this is or is not an earmark.
Mr. RANGEL. It is not an official earmark. And it can't be determined
that, and the Record would so record that it is not an earmark.
{time} 1345
Mr. RYAN of Wisconsin. So am I correct in understanding that
irrespective of the fact that the Joint Committee on Taxation defines
this as an earmark, that the chairman of the Ways and Means Committee
has chosen to supersede that ruling and claim that this is not in his
filing in the bill; is that correct?
Mr. RANGEL. Only because the opinion was considered officially and
legally as an advisory opinion.
Mr. RYAN of Wisconsin. Okay. So the chairman has decided that that's
an incorrect opinion?
Mr. RANGEL. Let me make this abundantly clear. Earmark or no earmark,
our country was hit, it was New York City, came to the rescue. Because
of the way the bond issue was created, it expired, and the President of
the United States believed, in fairness to the community that was hit,
on behalf of the people of the United States of America, that there
should be an extension of this. So we're not talking about any new
earmark. We're talking about an extension of the compassion that this
Congress has given my city and my community.
Mr. RYAN of Wisconsin. So the chairman does not believe this is not
an earmark, even though it goes to just two tax beneficiaries?
Mr. RANGEL. Let the record establish that the Chair has shared with
you, and you can call the Parliamentarian or anyone else you want, this
is not considered as an earmark.
Mr. RYAN of Wisconsin. Okay.
Mr. RANGEL. But let me say further that even if it was, I would side
with the President of the United States.
Mr. RYAN of Wisconsin. I thank the chairman for yielding. That was
enlightening. I think we're just going to agree to disagree on this
one. I think that this looks like a tax earmark, and we ought to call
it that, regardless of the merits of the policy.
Two other quick points, Mr. Chairman. We've been hearing this
rhetoric about tax subsidies to big oil companies. It's almost as if
the Republican Congress decided to give a big tax break to just a
couple of oil companies. What is this policy we're looking at?
A few years ago, we decided we wanted to do something to stop jobs
from being pushed overseas. We wanted to do something to help American
manufacturers keep jobs here in America. So
[[Page H1108]]
what did we do? We said, if you make or produce something in America,
you will pay lower taxes here in America than if you make it overseas.
We're going to reward you with lower taxes, all manufacturers, if you
make it here in America than if you ship jobs overseas and make it
overseas.
And so what is the majority doing? The majority is saying, well,
okay, but not for the oil and gas industry. We're going to separate out
the oil and gas industry and make them pay these higher overseas tax
rates.
This was not a targeted tax benefit to one industry. This was a
policy to help bring back manufacturing jobs in America. And so to call
this a tax subsidy to just the oil industry, number one, is incorrect.
But number two, the effect of this policy will do three things: this is
going to raise the price of gasoline, this is going to push more jobs
overseas, and most of all it's going to make us more dependent on
foreign oil.
We ought to pass an energy policy that makes us less dependent on
foreign oil, not more dependent on foreign oil. Unfortunately, that is
exactly what this bill does.
The last and final point is this, Mr. Speaker. We are sitting in this
bill picking winners and losers in the marketplace. Rather than
investing in basic research, rather than investing in the ideas of
tomorrow that have yet to be spawned, we are simply saying, today's
technology is going to be subsidized; we're going to pick you as a
winner and you as a loser, and we are going to do so at the expense of
tomorrow's ideas.
It's bad policy. It makes us more dependent on foreign oil. I think
we should vote this bill down.
Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from
California (Mr. Becerra), a part of the Democratic leadership in the
House, an outstanding member of the Ways and Means Committee, and I
welcome his being recognized.
Mr. BECERRA. I thank the chairman for yielding the time.
Let me see if I can get this straight. ExxonMobil, which made over
$40 billion in profits recently, the most ever made by any corporation
in our country's history, needs a tax break, a tax subsidy. The five
largest oil companies which had revenues of $123 billion last year need
a tax break so they can have a reason to keep jobs in America.
Today Americans, I know back home in Los Angeles, my constituents are
paying over $3.30 a gallon for gasoline at the pump. From those $3.30 a
gallon, every gallon of gas that's pumped, the oil companies extract
the moneys that gave them these massive profits. Yet now it's not
enough that they take the money from our constituents' pockets for
gasoline but they have to take it in the taxes that our constituents
are paying to the Federal Treasury to give tax subsidies to the largest
oil companies in America so that they can be persuaded to keep jobs in
America. Something is wrong. That's why this bill is on the floor
today.
We're going to take this debate on energy policy in a new and
different direction. Think solar. Think wind. Think geothermal. Think
hydro power. This bill takes us in a different direction because we
think that industries that are saying we want to create clean burning
energy, we want to create new jobs and pay great wages is the best way
to go.
Today our country is suffering from the highest inflation rates it's
seen in almost three decades. Today we see sinking employment numbers,
and today we have companies, large corporations that are making vast
profits asking for tax breaks. Something is wrong. This bill tries to
cure it.
I am proud to join with my constituents, the American Wind Energy
Alliance, the Solar Energy Industries Association, the Natural
Resources Defense Council, Public Citizen, Pacific Gas and Electric
Corporation, Target, Whole Foods, the Real Estate Roundtable, the
National Association of Realtors and many more in saying enough is
enough. Let's pass this new energy policy legislation.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield to the gentleman
from Connecticut (Mr. Shays) for a unanimous consent request.
(Mr. SHAYS asked and was given permission to revise and extend his
remarks.)
Mr. SHAYS. Mr. Speaker, I rise in support of this very important
legislation.
Mr. SHAYS. Mr. Speaker, I rise in support of H.R. 5351, the Renewable
Energy and Energy Conservation Tax Act, which extends Federal tax
incentives for energy efficiency and renewable energy technologies that
have expired, or will expire, at the end of 2008.
I strongly support promoting increased use of renewable energy and
developing renewable energy technologies. Currently, renewable energy
sources account for only two percent of our Nation's electricity
supply. We need to increase the supply of clean, renewable energy, but
we also need to be more energy efficient and slow the growth of demand.
H.R. 5351 would extend tax incentives for wind, geothermal and
biomass energy through 2012, and extend the tax incentives for solar
electric systems through 2016. The bill also extends credits for
consumer purchases of energy efficient products through 2014, and
creates a credit for plug-in hybrid vehicles for 2008.
The Production Tax Credit (PTC) helps the United States create
thousands of megawatts of new, clean, renewable electricity, and has
been a major driver of wind and solar power development.
To fund these tax credits, this bill will repeal some of the tax
breaks we give to the oil companies.
I have long advocated repealing some of the tax breaks we give oil
companies as ``incentives,'' and voted that way, because our current
marketplace provides adequate incentive for oil and gas exploration.
We will never resolve our energy needs because we are not conserving
energy . . . we are wasting it. We just continue to consume more and
waste more, consume more and waste more, and act like it doesn't
matter. H.R. 5351 moves us closer to energy-diverse fuel and
independence by incentivizing the industries and technologies that will
take us there, and I urge its support.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 4 minutes to a
great leader on energy policy who is recognized on both sides of the
aisle in this Chamber, the gentleman from Texas (Mr. Gene Green).
(Mr. GENE GREEN of Texas asked and was given permission to revise and
extend his remarks.)
Mr. GENE GREEN of Texas. Mr. Speaker, I've always believed as a
Nation we should wean ourselves from our dependence on fossil fuels and
invest in the energy of the future. However, I also believe we must
promote the technologies of tomorrow in a way that will benefit, not
harm, our constituents and our long-term energy security.
Today, the House is making its fourth attempt this Congress to pass a
renewable energy tax package, H.R. 5351. I supported the first attempt
last January, H.R. 6, even though I feared it could reduce incentives
for domestic production.
Every House package since includes a new or different combination of
revenue raisers that target the energy industry and extract billions
more than prior versions. If Congress singles out one industry for
billions of dollars, you cannot go back for more and expect enough
gasoline for our cars and fuel to heat and cool our homes.
Compared to the original H.R. 6, H.R. 5351 includes $17.6 billion in
new taxes on the energy industry. That's an increase of over $10
billion in just 1 year. House debates on these measures have been
filled with misinformation and unwillingness to review the facts. If
Congress took a moment to inject objective analysis in the debate, we
could see that the profit margins of energy industries are in line with
and, in many cases, below that of other industries.
For every dollar of sales in the third quarter of 2007, the oil and
natural gas industry earned 7.6 cents in profit margin, compared to
21.6 cents for the beverage and tobacco industry, 18.8 cents for the
pharmaceutical industry, 14.6 cents for the electrical equipment
industry, and 14.5 cents for the computer equipment industry.
Again, nationwide, all manufacturing companies, excluding the
struggling automotive industry, earned 9.2 cents per dollar of sales,
as compared to energy that was 7.6. So there may be great profits in
it, but there are also great profits in other corporations.
So are the profits of the energy industry disproportionate with most
U.S. industries? Clearly the answer is no. If you evaluate industry tax
contributions, we would see that companies are paying more than their
fair share and growing the numbers in the coffers of State, Federal and
local governments.
[[Page H1109]]
In 2006 the effective tax rate for the top energy companies was 37
percent, more than the top corporate tax rate of 35 percent. Between
2004 and 2006, the total current income taxes paid by the 27 top energy
companies nearly doubled, nearly doubled in 2 years, growing from $44
billion to $81 billion. So we do have a progressive tax, and it has
doubled with the profits.
Recently, the amount that ExxonMobil, a frequent target of criticism,
paid in U.S. taxes actually exceeded their U.S. earnings by $18.7
billion. So ExxonMobil is paying a lot of taxes. And I'm not so sure
that ExxonMobil or Chevron or ConocoPhillips, or any of the energy
industry, if they pay more taxes in this bill, that it will actually
not go back to the bottom line that we're already paying at the pump,
or to pay to heat and cool our homes.
I wish I could tell you they're going to take it out of their
profits, but they're not required to do that. They could just raise
prices, and so we'll see even more price increases.
Despite these figures, no industry is as heavily scrutinized as
America's oil and natural gas companies. That's probably because most
of the production in our country comes from Texas, Louisiana,
Mississippi, Alabama and Alaska. Most States don't want it. But they
always want their lights to be turned on and their cars to be filled
up.
What's most concerning is we continue to move tax packages that
target this industry and expect different results.
The Senate has twice failed to reach cloture on these provisions, and
the President continues to issue veto threats.
We're debating press releases and not actually legislating. We did
legislate last January and we had a tax package that passed this House
with only four negative democratic votes. But since then we've had
problems with it.
It's time we get serious about our renewable energy and conservation
policy. Let's put rhetoric aside for a moment and find a way to move
forward on a renewable energy package that can actually become law
without jeopardizing our energy security.
Mr. Speaker, I have always believed that as a Nation we should wean
ourselves from our dependence on fossil fuels and invest in the energy
of the future.
However, I also believe we must promote the technologies of tomorrow
in a way that will benefit, not harm, our constituents and our long
term energy security.
Today, the House will make its fourth attempt this Congress to pass a
renewable energy tax package with H.R. 5351.
I supported the first attempt in January of last year--H.R. 6--even
though I feared it could reduce incentives for domestic production.
Every House package since includes a new or different combination of
revenue raisers that target the energy industry and extract billions
more than prior versions.
If Congress singles out one industry for billions of dollars, you
cannot go back for more and expect enough gasoline in our cars and fuel
to heat and cool our homes.
Compared to the original H.R. 6, H.R. 5351 includes $17.6 billion in
new energy taxes on U.S. companies. That's an increase of over $10
billion in 1 year.
House debates on these measures are filled with misinformation and an
unwillingness to review the facts. If Congress took a moment to inject
objective analysis into this debate, we would see that the profit
margins of energy companies are in line with, and in many cases, below
that of other industries.
For every dollar of sales in the third quarter of 2007, the oil and
natural gas industry earned 7.6 cents in profit margin. Compare this to
the: 21.6 cents earned by the beverage and tobacco industry; 18.8 cents
for the pharmaceutical industry; 14.6 cents for the electrical
equipment industry; and 14.5 cents for the computer equipment industry.
Nationwide, all manufacturing companies--excluding the struggling
automotive industry--earned 9.2 cents per dollar of sales.
So are the profit margins of the energy industry disproportionate
from most U.S. industries? Clearly, the answer is ``no.''
If we evaluate industry tax contributions, we would see that
companies are paying more than their fair share and growing the coffers
of Federal, State, and local governments.
In 2006 the effective tax rate for the top energy companies was 37
percent, more than the top U.S. corporate income tax rate of 35
percent.
Between 2004 and 2006, the total current income taxes paid by the top
27 energy companies nearly doubled, growing from $44 billion to over
$81 billion.
Recently, the amount that ExxonMobil, a frequent target of criticism,
paid in U.S. taxes actually exceeded their U.S. earnings by $18.7
billion. That's right. They paid more in U.S. taxes than they earned in
the U.S.
Despite these figures, no industry is as heavily scrutinized as
America's oil and natural gas companies.
What's most concerning is that we continue to move tax packages that
target the energy industry and expect different results.
The Senate has failed twice to reach cloture on these provisions and
the President continues to issue veto threats.
This is debating press releases and not legislation. It's time to get
serious about our renewable energy and conservation policy.
Let's put rhetoric aside for one moment and find a way forward to
support a renewable energy package that can actually become law and
won't jeopardize our energy security.
Our Nation and our constituents deserve that opportunity.
Mr. RANGEL. I would like to recognize for 2 minutes the gentleman
from Texas (Mr. Doggett).
Mr. DOGGETT. Mr. Speaker, this debate is not nearly so much about
fossil fuels as fossilized thinking. Conceivably there was a time in
this country when federal tax policy that was ``of, by and for Big
Oil'' meant dependable energy for our families. But now that approach
of overreliance is as outdated and ill-conceived as eight-track tapes
and President Bush's ``Mission Accomplished'' banner.
Today's legislation would mean more renewable energy production, more
solar energy, more wind energy, and provisions that I authored to
encourage plug-in hybrid vehicles and geothermal heat pumps. And we
don't borrow the money to pay for this renewable energy policy as the
spend-and-borrow Republicans always insist. We pay for the measure by
asking Big Oil to share just a tiny part of the tax subsidies that they
have received for decades with these emerging renewable energy sources.
One of the new tax loopholes that we close in this bill would
otherwise have allowed Big Oil to claim a dollar for every gallon that
it produced by simply dropping a little dab of grease in petroleum,
ironically a provision intended to assist biofuels companies to help us
achieve energy independence. And the cost of this modest increase in
addressing these unjustifiable tax breaks for Big Oil is so small that
I doubt it will even warrant a footnote in the astronomical earnings
report of ExxonMobil.
The charge made here today that the price of gas will go up if this
bill passes is ludicrous. Does anyone here remember the price of gas
going down when the oil companies got this unjustifiable tax break? It
didn't go down a dime. And this charge comes from the same crowd that
stood idly by while the cost of gas at the pump skyrocketed and did
absolutely nothing.
{time} 1400
Of course the biggest subsidy of all for our fossilized foreign
energy police is the military presence that we must maintain in foreign
lands, places as volatile as the petroleum underneath them. We need
real change in our energy policy that will bring us closer to a
solution for both global warming and global war. I am proud that the
City of Austin, Austin Energy, and people throughout Central Texas have
taken a leadership role to move us in that direction.
The bill we have today is green. It is a green light to green jobs
and a green environment. And the only folks that are seeing red today
are those whose padded profits compel them to block the door to
progress that this legislation would open.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 3 minutes to the
gentleman from Illinois (Mr. Weller) a distinguished member of the Ways
and Means Committee.
Mr. WELLER of Illinois. Mr. Speaker, I reluctantly stand in
opposition of this legislation. We had an opportunity to develop
bipartisan legislation, and I regret that was not achieved today.
Mr. Speaker, I insert into the Record this particular advertising for
the building trades of the AFL-CIO.
New energy taxes won't create energy . . . but they will
destroy jobs.
Reliable, affordable supplies of energy fuel America's
economy and support millions of American jobs.
But some in Congress want to put all this in jeopardy with
new, higher taxes on energy. History shows such taxes reduce
domestic energy production. But they also
[[Page H1110]]
threaten to undermine America's economy--and send American
jobs overseas.
Americans need energy policies that ensure reliable
supplies to create jobs and support our quality of life for
generations to come Americans need more energy, not more
energy taxes.
And let me quote this ad here. It says, ``Reliable, affordable
supplies of energy fuel America's economy and support millions of
American jobs.
``But some in Congress want to put all this in jeopardy with new,
higher taxes on energy. History shows such taxes reduce domestic energy
production. But they also threaten to undermine America's economy, and
send American jobs overseas.''
Very simple. Very succinct. The primary reason most Members who
oppose this bill stand in opposition, because it raises taxes on
domestic manufacturers and domestic jobs. I would like to keep those
jobs in America, and this bill will send those jobs elsewhere.
I also want to draw attention to something I find, frankly, kind of
alarming in this legislation, and the reason I would encourage my
colleagues who are thinking about supporting this legislation to think
twice. And that's what has become known as the Venezuela carve-out in
this legislation. Now, the Chavez government in Venezuela admittedly is
no friend of the United States. We just hear the rhetoric each and
every day, and they've made that very clear. But this legislation
carves out the PDVSA, the Venezuelan Government-owned oil company, from
the tax increases. Now the biggest gasoline retailer in America is the
Venezuelan Government-owned oil company, and one of the biggest
refineries of America is CITGO, and they're exempt from the tax
increases.
Now, who is the Chavez government? The Chavez government is Iran's
best friend. The Chavez government started direct flights between
Caracas and Tehran, and now Iranian's intelligence and security
operatives use that to come into Latin America and the Western
Hemisphere. And frankly, it was the Chavez government that sent troops
into a Jewish grade school just two years ago and just this past
December raided a Jewish community center in Caracas claiming that the
community was hiding guns.
And also, just this past week, President Chavez of Venezuela said it
is his policy to keep oil at $100 a barrel, that he is going to work
with OPEC to keep oil prices high. And this legislation, I can't
believe it was done intentionally, but this legislation gives a carve-
out to the Venezuelan Government-owned oil company. No friends of ours.
I hope my colleagues think twice about supporting this.
I believe we had an opportunity for bipartisanship. Much in this bill
are good ideas. Much of it builds on what we passed in 2005 in the
energy bill of 2005, which I strongly supported.
My own district, the revisions in the 2005 energy bill that provided
incentives for the development of alternative sources of energy,
renewable sources of energy, have attracted hundreds of millions of
dollars of investment in the 11th Congressional District of Illinois:
wind energy, biofuels, ethanol, and biodiesel. And it creates jobs
right here at home. There are some good ideas. We need to work on it in
a bipartisan way. Unfortunately, this bill does not achieve that goal.
Mr. RANGEL. Mr. Speaker, I guess the Record should indicate that our
failed energy policy is due to Hugo Chavez.
I would like to yield 2\1/2\ minutes to my friend from North Dakota
(Mr. Pomeroy).
Mr. POMEROY. Mr. Speaker, this debate has been quite extraordinary
for my friends on the other side of the aisle. They create a picture of
great concern: poor, poor oil companies. Oil priced globally at over a
hundred dollars a barrel. Prices at the pump approaching record levels,
certain to hit record levels at the time the North Dakota farmers have
to go to plant their crops. Oil companies reporting record profits.
Now, not just record profits relative to their earnings and profits of
years past. I mean with ExxonMobil, the biggest profit ever posted by a
corporation in history.
And yet, when we look at trying to break this stranglehold on
imported oil and build renewable sources of energy so that our economy
is not so dangerously dependent upon imported oil, we look to using as
a pay-for for these renewable energy incentives a tax provision
exploited by oil companies beyond what was ever intended by the Ways
and Means Committee. You have the White House threatening veto. You
have House Republicans screaming tax increase. I'll tell you, that is
an energy policy completely out of gas. We need to move, and move now,
to renewable sources.
Take, for example, one, wind power. You know, we are now into a
period of time where the wind production tax credit expires at the end
of this year. The consequence relative to new products put online is
already going to be felt. A recent study by the Solar Energy Industry
Association, American Wind Energy Association estimates that if this
credit expires, it will cost 6,000 megawatts of new wind energy
production, nearly 77,000 jobs, 11.5 billion in economic impact, all in
2009.
This is the group on the other side when they were in the majority
that allowed the wind production tax credit to expire three times since
1999. They extended it an additional five times. Now, how in the world
can we build a renewable energy system when you have got a tax credit
that maybe there isn't there, you can never get your financials right,
to make the move this country must make to renewables with wind power
playing the major role.
We need to pass this bill and break this lock that oil companies have
had on policies coming out of this Chamber.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I'd yield myself 30 seconds
to simply point out to the gentleman from North Dakota, who I know is
an authentic and sincere advocate of the wind energy credit, that in
this bill there is a cap on the wind energy credit which will have the
effect of undermining the benefits for many wind energy credit
participants. And this is extremely important. By putting a cap on this
credit, it will have the effect of discouraging many from participating
in the wind energy credit, and for a district like mine that produces
windmill technology, this is a real cause for concern.
And with that, I yield 3 minutes to the gentleman from Pennsylvania
(Mr. Peterson), who has been a strong advocate on energy policy.
Mr. PETERSON of Pennsylvania. Mr. Speaker, I stand ready to support
every renewable form of energy that we can produce. We can't do it fast
enough. But a year ago we had $55 oil. Today we have $100 oil, and I'm
not going to blame the Democrats like you blamed Mr. Bush. We are all
guilty. Congress is the reason we have hundred dollar oil. And I think
the Bush administration could have been a lot more aggressive in its
energy policies, but the 2005 act had a lot of things in it that your
side fought that are reaping benefits today.
But hundred dollar oil is because this Congress has decided we are
not going to produce oil and gas anymore, clean natural gas. We are not
going to do coal to liquids, coal to gas. We are going to do just
renewable.
Let's look at the chart.
At the top, the orange, the buff, the yellow, yellow is nuclear,
coal, this is our energy use today, and this is a projection on the
right-hand side, on the right-hand side of where it's going to be by
2030 according to the Energy Department.
If we double wind and solar in the next 5 years, it will be less than
3 quarters of 1 percent of our energy use in America. We have to double
it. We have to quadruple it before it really makes a measurement
difference.
Oil companies make huge profits when they own the rights to oil and
Congress locks up the ability to harvest them in America and forces us
to go offshore to buy them. We have been gaining 2 percent a year since
I have been here. This will be the 12th year. Every year dependence
grows 2 percent because Congress has locked up supply. We have to go
over there to buy it, foreign unstable countries.
And when you own it and we lock it up and the market goes high and
crazy, Wall Street does that. Oil companies don't set the price; Wall
Street does. I have been trying to produce clean natural gas. I haven't
been able to get a majority for that. Clean and natural gas. I haven't
been able to get a majority for that. And that's the one that's vital
to the manufacturers of America because it is not a world price, and we
have the highest prices in the world.
[[Page H1111]]
However, what hope does this bill actually give to young families
with home heating costs? Nothing. What hope does this bill bring to
poor folks living in rural and urban America who struggle to drive to
work, to school, to the doctor's office, to do their shopping? It
doesn't do anything. What hope does this bill give to independent
truckers who are struggling to pay their fuel oil bill, soon
approaching $4, if they try to make a profit with their independent
trucks? It doesn't do anything. What does this bill do for rural and
suburban seniors who keep their thermostat at 58 degrees last winter
and this winter so they can cut their fuel costs? It doesn't do
anything.
What does this bill do to prevent the tragedy that happened in my
district last year when an elderly gentleman tried to warm, on a sub-
zero night, by putting coal in a wood stove and he burned in a fire?
This bill would not have saved his life.
Mr. RANGEL. Mr. Speaker, I recognize Mr. Pascrell for 2 minutes.
(Mr. PASCRELL asked and was given permission to revise and extend his
remarks.)
Mr. PASCRELL. Mr. Speaker, I rise in strong support of H.R. 5351, and
now we are trying to shift from fear to new policy. That's what this is
all about. Chairman Rangel deserves ample commendation for crafting
this wise bill. I can't totally disagree with the gentleman from
Pennsylvania that just spoke. So we should want to turn to the next
chapter. We should all feel proud that this Congress is, again, showing
that we understand the urgency of the situation.
New Jersey gas prices have risen 119 percent since 2001. You cannot
tell me that now is not the time to get serious about investing in
clean energy, renewable energy, and energy efficiency. You cannot tell
me that ending unnecessary subsidies to big oil companies who make
record profits is an unfair course of action. No one suggested on this
floor that we are going to move from fossil fuel to alternative, and
nobody suggested that here. You would think that, though. And when I
listen to those arguments, indeed it is long past time we wean
ourselves off of foreign energy addiction.
This is a homeland security issue, pure and simple. This bill will
help provide for alternative measures for the American consumer at a
time when families across our land are hurting.
Put simply, H.R. 5351 reinvests taxpayer subsidies to oil companies
already earning record profits into clean renewable energy, creating
jobs, making America less dependent on foreign oil, strengthening our
national security, and helping to lower energy prices in the long term.
This bill contains incentives to expand production of homegrown fuels
including the creation of a new production tax credit for cellulosic
ethanol produced in America. It extends tax credits for biodiesel and
renewable diesel. Likewise, it provides tax incentives to help
homeowners and businesses reduce their energy costs by investing in
energy-efficient property. I know businesses throughout my State in New
Jersey are eager to lower their energy bills, but the costs at the
front end are sometimes too much of a burden. These tax incentives ease
that burden.
And I have to make a choice, Mr. Speaker, between the incentives that
are provided to the oil companies and the incentives that are provided
to those companies who want to produce alternative energy sources.
{time} 1415
Mr. ENGLISH of Pennsylvania. Mr. Speaker, may I inquire as to how
much time is remaining on each side?
The SPEAKER pro tempore (Mr. Gutierrez). The gentleman from
Pennsylvania has 11\1/2\ minutes. The gentleman from New York has 17\1/
2\ minutes.
Mr. ENGLISH of Pennsylvania. I wonder if I might invite the gentleman
from New York to perhaps proceed.
Mr. RANGEL. I would be glad to. And I would like to ask that the
gentleman from Illinois (Mr. Emanuel) be recognized for 2 minutes.
Mr. EMANUEL. Mr. Speaker, the American people are being asked to pay
twice, once at the pump, and once on tax day, in supporting big oil
companies. There are record prices at the pump, and now we have record
taxpayer subsidies for the big oil companies. As my mother used to say,
Such a deal.
ExxonMobil reported earning $40 billion in 2007, the largest
corporate profit in American history. At the same time, oil prices
topped $100 a barrel for the first time in history, and the New York
Times reported this morning that by spring a gallon of gas could cost
$4 per gallon. Now I don't think there's anything wrong with record
profits. That's not unseemly, in my view. What's unseemly is if the
Congress continues to give companies that are making record profits $14
billion in taxpayer subsidies. That is what's unseemly. Not the
profits. They make whatever they need to make. I just want to know when
the free market principles are going to take over here. At what point
do the oil companies, without taxpayer subsidies, go out and enjoy the
benefits of a free market? At what point do we stop treating taxpayers
as dumb money? That's what I don't understand. I got it when oil was at
$15 or $25, energy companies needed help. At $100 a barrel? You've got
to enjoy the free market at some point here.
Now here is the problem: We have wedded the country and the taxpayers
to a 20th-century energy source rather than investing in 21st-century
sources, whether that's wind, solar or thermal. We've got to stop
asking the taxpayers to subsidize the past and start asking them to
invest in the future. That's exactly what the chairman's legislation
does. And it's time that we start to do that.
This would be a hat trick for the United States. Usually there's just
winners and losers. If we did this and got this to the President's desk
and he had the courage to finally give up on his addiction to Big Oil,
we would actually have something that's good for the environment, good
for the economy, and good for our foreign policy and our security
interests. That is what we're trying to do with this legislation. It is
a total hat trick.
Like what we did with the student loans, we stopped subsidizing the
big banks and started helping middle-class families. Like we suggested
on health care with the HMOs, stop subsidizing the HMOs and start
helping the consumers. This legislation begins to end the taxpayer
subsidies to Big Oil, and invests in our future by making sure we have
energy independence with wind, solar and thermal.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, now it is my privilege to
yield 3 minutes to a truly distinguished expert on energy policy that
serves on the Ways and Means Committee, the gentleman from California
(Mr. Nunes).
Mr. NUNES. Mr. Speaker, I rise in opposition to this bill. Ninety-six
percent of our energy comes from nuclear, oil and coal in this country.
Only 4 percent comes from solar and wind. And I am very supportive of
creating more energy by wind, creating more energy by using solar
panels, but the problem, Mr. Speaker, is that this is not going to
solve our problems.
We've heard many Members talk about the price of oil here today. When
the price of oil is $100 a barrel, it's because there's not enough oil
on the market to meet the demand, largely because we have refused in
this country to drill for oil anywhere. We've barred the east coast,
the coast of Florida. We even have Cuba now coming in and drilling off
the coast of Florida. In California, we don't drill there for oil
anymore. And even to go as far as Alaska, the northern slope of Alaska
where we have an oil reserve there, we won't even drill for oil in
Alaska. So when you talk about having $100 a barrel oil, it's because
we refuse to drill for oil, and we rely on oil from other countries to
meet our growing demand.
When you look at the problems here that this bill creates, it's
taking away tax subsidies to oil companies. But what it does is it only
hits the top five oil companies, and you leave out one of the biggest
oil companies in the world, and that's the oil company called CITGO
which is owned by Hugo Chavez in Venezuela.
If you really wanted to tax the oil companies, you ought to tax all
of the oil companies, not just tax our domestic companies that, quite
frankly, puts us at a disadvantage to those that produce oil in the
Middle East and Venezuela and everywhere else.
And so if we're going to look at real energy policy here, more solar,
more
[[Page H1112]]
wind, that's all great, but, folks, we're going to rely on oil, nuclear
power and coal power in this country for a very long time. I think this
Congress has a responsibility to the American people to lower the cost
of energy that the American consumer uses, and this bill doesn't do it.
So, with that, Mr. Speaker, I urge my colleagues to vote ``no'' on
this bill.
Mr. RANGEL. At this time, I would like to yield 2 minutes to the
gentlelady from Nevada (Ms. Berkley).
Ms. BERKLEY. I thank the chairman for yielding and for his leadership
on this and so many other issues.
Mr. Speaker, as a former utility company attorney, I rise in strong
support of this important legislation which will help our Nation and my
home State of Nevada to move towards a cleaner, more sustainable energy
future.
I am very proud of my State of Nevada. Our legislature has passed a
renewable energy portfolio. It mandates that by the year 2015, 20
percent of the power sold to Nevadans must be produced from renewables.
Energy providers in the State of Nevada have built or planned half a
dozen major solar power projects in order to meet this requirement. And
that's just solar. There is also wind, geothermal, and countless other
projects that can and will help lessen our dependence on fossil fuel
with the passage of this bill.
This bill provides substantial tax incentives for energy produced
from renewable resources, including wind, including solar, geothermal,
biomass, many other possibilities. These incentives will provide badly
needed assistance to companies that are working hard to diversify our
energy resources, improve the economy by creating green jobs, and clean
up the air we breathe and our environment.
I believe energy independence is an economic issue, an environmental
issue, and a national security imperative.
Mr. Speaker, it is time that our Nation stop depending on corrupt
dictators and nations that finance and support terrorists and terrorism
around the planet to satisfy our energy needs. We pay exorbitant prices
for foreign oil from countries who support and encourage terrorist
activities around the world. We must stop funding both sides of this
war on terror. By encouraging the development of renewable energy and
energy independence, this bill helps move this country in the right
direction; $102 for a barrel of oil is reason enough for everybody in
this body to support this bill. This package is good for Nevada. It's
good for our Nation.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, with the indulgence of the
other side, I would like to reserve our time.
Mr. RANGEL. I welcome the opportunity to recognize Mr. Van Hollen
from Maryland for 3 minutes.
Mr. VAN HOLLEN. I thank the chairman of the Ways and Means Committee
for his leadership on this very important national issue.
The legislation before us today presents a very clear choice: Does
the people's House stand with the American consumer or do we stand with
big oil companies and the special interests?
With gas prices now more than twice as high as they were the day
President Bush took office, the American people can simply not afford a
continuation of those failed policies that brought us to this point.
They're looking to us to take specific steps towards strengthening our
national security by reducing our dependence on foreign oil, cleaning
up our environment, and creating millions of good-paying green collar
jobs and saving on their costs at the pump.
Now the energy bill that this Congress passed last session was a very
important step in the right direction. We improved automobile
efficiency standards and provided greater incentives to renewable fuels
and new economy-wide efficiency standards, and that will help ease the
demand for fossil fuels and spur important energy alternatives.
However, we left a very important piece of that on the table because
Senate Republicans and the White House refused to accept a very simple
proposition. We want to take the $14 billion in taxpayer subsidies that
the Bush administration and the earlier Congress gave the oil and gas
companies and we say let's reinvest them in a new energy strategy that
focuses on renewable energy and energy efficiency. And now on the other
side they say no, we don't want to make that choice. We think the
taxpayers, all of us and all the people around this country, should
continue to subsidize oil and gas companies that are making record
profits rather than making this choice.
Well, that's what this bill is about: let's make a choice. Let's use
those resources to invest in over $8 billion in electricity generated
from clean, homegrown renewable sources. Let's expand production of
homegrown fuels like cellulosic ethanol and renewable biodiesel so that
we can reduce our dependence on foreign oil. And let's empower
consumers interested in being part of the solution by incentivizing the
purchase of energy-efficient appliances and advanced plug-in hybrid
vehicles.
There is a whole new energy frontier out there for us to seize upon
if only we will make the right choices. And instead of looking
backwards and continuing to subsidize companies with the hard-earned
dollars of the American people, let's instead invest in an energy
future that puts millions of people back to work in green technologies,
that advances our national security interests by reducing our reliance
on foreign oil, and which addresses major environmental concerns that
we all face with respect to climate change.
That is the fundamental question at stake today. Let's make the right
choice. Let's make a choice that the people's House can be proud of and
support the American consumer and the American people, and not the
special interests.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I will just yield myself 1
minute to set the record straight.
The underlying legislation is not going to, as the last speaker
suggested, reduce the dependency of the U.S. on foreign oil. In fact,
every analyst who has looked at this suggests it will increase the
dependency on foreign oil. It certainly in the short run, courtesy of
its $17 billion in tax increases on energy production, will increase
prices. And that's because the tax increases that are in here are not
taxes on profits.
We've heard a lot about oil company profits, but in fact what we are
taxing here under their bill is any investment in enhanced production.
In other words, any time an oil company takes their profits and invests
it in new production and doing what we would expect them to do, we're
going to hit them over the head. And this should be a cause for concern
because we've heard some rhetoric about how energy costs have gone up,
but since they took the majority, gas prices have gone up 30 percent.
And under the spot market, a barrel of oil has gone from $55 to $100 a
barrel. That is not a favorable trend.
Mr. RANGEL. Mr. Speaker, I would like to recognize the gentlelady
from Arizona (Ms. Giffords) for 2 minutes.
Ms. GIFFORDS. Thank you, Chairman Rangel.
I am proud to be a Member of a congressional body that, first,
recognizes the fact that global warming is happening, but is also
willing to take action to reduce our dependence on foreign oil and
foreign energy.
In our first year, we passed the Energy Independence and Security Act
which authorized a number of renewable energy programs. That
legislation, I think, was a good first step towards moving us towards
energy independence. But what is missing today is the passage of the
Renewable Energy and Energy Conservation Tax Act.
I come from the great State of Arizona, a State known for a
tremendous amount of sunshine. Just last week, plans were introduced to
build the world's largest solar power plant in our back yard. It's
going to be big enough to power over 70,000 homes. But a project like
this will not be constructed without the solar Investment Tax Credits.
In recent years, the solar industry has been one of the fastest
growing industries in the country. It creates high-quality jobs; it
provides us with tremendous energy independence; and it addresses
global warming. Our Nation cannot afford to have these vital tax
incentives sunset like they're set to do in 2008 unless this Congress
acts.
{time} 1430
For our Nation, for our planet, but, most importantly, for our kids
who are
[[Page H1113]]
going to inherit this planet that we leave behind, it is critical that
we pass this legislation and we urge our colleagues in the Senate to
pass this legislation as well.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield myself 15 seconds
simply to note that the Senate has already passed legislation which,
unfortunately, has not been brought up by the other side. I attempted
to offer that version as an amendment to this legislation, and I'm
afraid the Rules Committee did not make it in order.
If we really wanted to move something to the President's desk that
would work, the majority had the opportunity to do that and has been
quick to fritter it away.
With that, Mr. Speaker, I would like to yield 4 minutes to a
gentleman who has been a true leader on energy policy in this Chamber
through many sessions, who will be retiring at the end of this session,
but today I think we have an opportunity to hear him on energy one more
time, the ranking member of the Ways and Means Committee, the gentleman
from Louisiana (Mr. McCrery).
Mr. McCRERY. I thank the gentleman for yielding.
Mr. Speaker, I want to address a couple of issues that have been
mentioned here today a number of times.
The first is this issue of subsidies. Several speakers have said we
need to end this subsidy to the oil and gas industry. Well, the so-
called subsidy that's being ended in this bill is the section 199
provision that applies to all manufacturers in the United States. It
was designed to make American manufacturers more competitive and to
create jobs here in this country. What this bill does is it excepts
from all manufacturers only the oil and gas industry, so it's punitive
to the oil and gas industry. It's not removing some special subsidy.
It's taking away from only the oil and gas a general deduction for all
manufacturers in the United States. So much for these special subsidies
that we keep hearing about.
The next thing I would like to talk about is the issue of profits. My
good friend, the chairman of the Ways and Means Committee, earlier in
this debate said, at the beginning of the Bush administration, profits
of the five biggest oil companies in America were $30 billion; at the
end of the Bush administration, the profits are $100 billion.
Well, guess what? At the beginning of the Bush administration, the
biggest five oil companies in this country, American oil companies,
invested in exploration, research, and development, trying to find
sources of energy for this country, about $40 billion, more than the
profits that they had in that year. And that investment, over the term
of the Bush administration, has grown to this last year almost $100
billion. So you can say, ladies and gentlemen, that the profits that
have been so denigrated here by some today moved pretty much in
parallel with the level of investment of our American companies to find
new sources of energy to help us meet our energy needs in this country.
That's reality.
All this hocus-pocus about renewable fuels and sun, that's swell, but
it is a drop in the bucket of what we need to operate this country
today and for the foreseeable future.
So if you want a reasonable, well-balanced energy policy, this bill
is certainly not the answer. This bill is part of the answer because it
pretty much continues the bill that we passed several years ago when we
were in control of this Chamber, but it makes a bad mistake when it
punishes. It doesn't remove some special subsidy. It punishes just the
oil and gas industry for only American companies. That is wrongheaded.
It will result in higher prices at the gasoline pump. It's spiteful and
it's wrong. And we ought not to pass this bill and get busy passing a
true comprehensive energy policy for this country.
Mr. TANNER. Mr. Speaker, I am pleased to recognize the majority
leader for 1 minute.
Mr. HOYER. I thank the gentleman for yielding.
Mr. Speaker, there are few Members on this floor whom I respect more
than the gentleman who has just spoken. Jim McCrery from Louisiana is
going to be a loss to this House and to our country. He is a
thoughtful, fair, and considerate legislator. He represents his State
well. He has represented this House well. And I congratulate him for
his service. But people of goodwill can disagree, and I want to make an
observation on this punitive measure.
In 2004, the Republicans passed a tax bill. Historically,
manufacturers had gotten a tax break to incentivize keeping jobs here
and trying to grow jobs in America. The oil companies were not included
in that law, as the gentleman knows so well, but the Republicans added
oil companies into the category of manufacturers. Now they are being
taken out. So he says we added them in and now it would be unfair to
take them out. They weren't in originally; we are taking them out.
Mr. Speaker, this important legislation is an explicit recognition
that our great Nation must make critical investments today in the
development of clean, renewable energy and energy efficiency; energy
investments that will strengthen our national, economic, and
environmental security for generations to come.
I appreciated Mr. McCrery's observation that part of this bill was a
good bill. He disagrees with other parts. That's understandable. But we
must simply begin to break our addiction to fossil fuels, not because
the oil companies are bad. They're not. They produce a product that's
absolutely essential and they create jobs, good-paying jobs. So this is
not about trying to take it out on the oil companies, but it is to say
that fossil fuels are a wasting resource. That is to say, we're going
to use it up, it's going to go away, and we need to look to
alternatives.
This morning's headline in the New York Times states that the harsh
reality is ``Gas Prices Soar, Posing a Threat to Family Budget.'' The
fact is the nationwide average for a gallon of regular gasoline was
$3.14 this week, an increase of 19 cents in just the last 14 days. Some
energy experts fear gas prices could hit $4 a gallon by this spring.
Diesel prices are hitting new records daily, and oil hit a record high
of $100.88 a barrel on Tuesday.
This, again, is not about the bad oil companies. What this is about
is America's dependence on foreign sources of oil and on oil generally.
Either it's going away or we will be in the grasp of OPEC, of nations
who are not particularly friendly to us: Venezuela; Saudi Arabia
sometimes, sometimes not; Iraq; Iran; other oil-producing states that
can go away in a second. We are vulnerable, and we need to look to
alternatives. That's what this bill seeks to do.
To be clear, this legislation alone will not bring down gas prices.
But it is a vital step forward and may bring down gas prices 3 years
from now or 10 years from now or 15 years from now. This bill is
nothing less than a critical investment in the low carbon economy of
the future that will result in the creation of millions of new jobs.
It extends the production tax credit for wind, geothermal, and other
renewables to 2011 and renews the investment tax credit for individual
homeowners and businesses to maintain incentives for solar energy
through the end of 2016. Without the prompt extension of these tax
credits, renewable energy project work stoppages could cost 116,000
jobs at a time when we're trying to stimulate the economy.
Furthermore, this bill will spur the commercialization of the next
generation of automobiles by establishing a $4,000 credit for the
purchase of a plug-in hybrid. Tax credits, tax incentives, are to get
something that you need and might not otherwise get unless you get an
incentive. I'm going to speak to that with reference to the oil
companies in just a second.
It will encourage investments in cleaner fuels, creating economic
incentives to invest in biofuels, including biodiesel and cellulosic
ethanol. And it will close the so-called ``Hummer'' tax loophole, which
encourages taxpayers to buy gas-guzzling SUVs. That makes no sense.
In addition, this legislation will create incentives for the
construction of energy-efficient buildings and the retrofitting of
existing homes, which will reduce pollution and energy use.
Finally, the energy conservation bonds included in this bill will
spur investments in efficiency, create jobs, and reduce carbon
emissions.
I would think all of those objectives are objectives that this House,
in a bipartisan way, would seek to achieve.
Now, in keeping with this Democratic majority's commitment to fiscal
[[Page H1114]]
responsibility, this legislation will not add to the deficit. I will
tell you that your previous bills dealing with tax incentives could not
make that comment. Rather, the tax incentives contained in the bill are
offset by repealing $18 billion in unnecessary tax subsidies over the
next 10 years that otherwise will be enjoyed by the largest oil and gas
companies in America. Mr. McCrery referenced a discussion about that.
Last year alone, the five largest oil companies had a combined profit
of $123 billion. God bless them. But it only provokes this question: Do
these companies need taxpayer subsidies to look for new product?
I'm a big proponent of the free market system. Supply and demand
works. The demand for oil is high. The prices reflect that demand, and
they are the highest they have been in history. They don't need any
incentive to look for new product. The incentive is the free market
system which is buying their product for the highest prices they have
ever sold it. So it is foolish to ask the taxpayers to not only pay
those high prices at the pump but also to pay additional taxes because
the oil companies aren't paying the same kind of level of taxes that
they are. Last year alone, as I said, they made the highest profits
they have made.
The answer, of course, to my question, do they need incentives to get
new product? They do not. They do not. There is not an oil company
executive in the world who's going to say let's not look for new oil
when their product is getting the highest prices they have gotten in
history.
Even President Bush, and I want all my Republican friends to hear
this. There aren't very many of them on the floor. There aren't very
many Democrats on the floor. But I hope they are watching on
television. President Bush, a former oil company executive, said in
2005, and I want you to hear this quote, George Bush, President of the
United States, former oil executive, 2005: ``I will tell you, with $55
a barrel oil, we don't need incentives to oil and gas companies to
explore.'' I'm sure all of you got that. At $55 a barrel, the President
of the United States said we don't need incentives for the companies to
explore.
Prices now are almost 100 percent above that dollar figure which the
President of the United States said would obviate the need for
incentives. With the price of a barrel of oil hovering around $100, do
we really believe that this incentive is justified? The President of
the United States said no. Hopefully, this Congress today will say no.
This legislation is a thoughtful effort to set our Nation's energy
priorities and thereby strengthen our national, economic, and
environmental security.
Last year when we passed the Energy Independence and Security Act,
the President and Senate Republicans removed a package of economic
incentives, including the extension of tax credits for wind and solar
energy and biofuels. We must move towards those alternatives. With this
bill, we continue the fight for this critical aspect of our energy
policy.
I thank the chairman for his leadership on this very important piece
of legislation, and I thank the Republican colleagues on the committee
as well for working on this product.
We may have differences, but this is a critical issue for the future
of our country and for generations yet to come. Vote for this bill.
{time} 1445
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield myself the balance
of my time.
Mr. Speaker, I was very impressed by the last speech, and I wish I
could be as charitable about the underlying product or about the effort
that we are making on the floor today. I do want to congratulate the
chairman of the Ways and Means Committee for having given our Select
Revenue Subcommittee the opportunity to explore through hearings what
our tax policy should be at energy and policy, and I am hopeful that
the day will come when those hearings will yield the results that we
would hope. I am afraid today is not likely to be that day.
The crisis we are facing is a real one. Mr. Speaker, we are facing a
rising global demand for energy of all sorts as the economies of China
and India grow. We are seeing the phenomenon of peak oil playing out.
Clearly, we are not going to see the growing reserves that we have
enjoyed in the past, and increasingly many of the remaining reserves
are being mediated by state-owned oil companies with ideological or
nationalistic agendas.
Our consumers, both our individual consumers and our corporate
consumers, are facing the consequences of high prices, and yet we are
imposing on our production artificial restrictions on new production.
That is the wrong policy at a time like this. And we are facing aging
energy infrastructure, whether it is a power grid that frankly is
facing brownouts or refineries that are now at 92 percent of capacity.
So if any one of them breaks down, we face a shortage in energy.
These are real problems. And coupled with them is the legitimate
concern about externalities, the fact that greenhouse gases from the
consumption of fossil fuels are having an uncertain impact on our
climate. And yet in the context of all of that, H.R. 5351 is simply not
the answer, Mr. Speaker. It wasn't in any of its three previous
incarnations, and it is not now. It is bad energy policy. And it is bad
tax policy. There are parts of it that represent a continuity with the
policies of past Congresses, and I salute the other side for including
the extenders. But just like a car with an empty gas tank, this
legislation is a nonstarter. It is not going to go anywhere in the
Senate. It is not going to get on the President's desk. And today I
would ask all of those who join me with these concerns to join in
voting against this wrongheaded bill.
I yield back the balance of my time.
Mr. RANGEL. Mr. Speaker, first let me once again thank Mr. English
for the diligent way that he addresses the problems that are before our
committee. His working with Richard Neal makes me proud to be a member
and chairman of the Ways and Means Committee. I do hope that at some
point that we will be able to get past the barrier of partisanship to
deal with a national security issue, a global climate issue, an issue
that should challenge all partisanship as we move forward.
It defies common sense to believe that the oil industry that is
receiving billions of dollars in profit would even consider the $14
billion that we are talking about. It is almost like grains of sand on
the beach. We are asking them to be partners with us, not just for
their shareholders, which they know how to take care of, but for their
country, to be able to say that our foreign policy should not be
directed by where oil is, to be able to say at the end of the day we
can tell our kids and grandkids that we tried to protect the atmosphere
of this great country, to be able to say that there are alternatives,
that we don't have to rely on fossil fuels. We have the genius. We have
the creativity. And this bill provides the incentives to see whether we
can use the wind, the water, waste, solar, whatever it takes. We have
the know-how given the opportunity which this bill will give to deal
with it. We can create products that conserve energy. We can increase
our surplus in terms of trade by being able to produce products that
are far more competitive than what we are doing today. What a great
opportunity for us.
And when we talk about potential recession or whatever the President
wants to call it, we have to recognize the big role that the increase
in the price of oil has played with families who used to consider
themselves middle income and now are faced with ever-increasing home
fuel costs, automobile costs and all of these things, and to find that
we have to give them $159 billion because they don't have the ability
to put food on the table or shoes on their kids' feet or to pay their
rent or to pay their mortgage. All of this, we can handle these
problems if we work together in a bipartisan way. We even go as far as
to say in the bill that we don't have all of the answers. We provide
tax-exempt bonds for mayors and Governors and people with exciting
ideas of how to make greenhouses and increase the efficiency of our
commercial buildings as well as our residents.
Why don't we give hope a chance and give the challenge to America a
chance, force the Senate to come to meet with us and in a bipartisan
way
[[Page H1115]]
in the House to be able to say that we are prepared to do these things.
And so I do hope that people would reconsider that did not support
H.R. 5351. I do hope and congratulate the leadership and Nancy Pelosi,
our Speaker, for never giving up and not giving in just because we face
political obstacles. The record is going to indicate which side we were
on, and it is abundantly clear, were you on the side of Big Oil or were
you on the side of change and wanting to make certain that we met the
challenges that we are forced to do.
General Leave
Mr. RANGEL. Mr. Speaker, I ask unanimous consent that all Members
have 5 legislative days in which to revise and extend their remarks and
insert extraneous material on the bill, H.R. 5351.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. RANGEL. Mr. Speaker, I encourage our membership to support this
bill.
Mr. LARSON of Connecticut. Mr. Speaker, I rise today in support of
H.R. 5351, the Renewable Energy and Energy Conservation Tax Act of
2008. I commend the Speaker and the Ways and Means committee for their
tireless efforts on behalf of this important legislation.
We are at a crucial point in the United States in the development of
our alternative energy economy. We are at a point where, without our
support, these industries could either grow and prosper or be sent
overseas. This bill represents an important step to ensure that
alternative energy technologies like windmills and fuel cells are
manufactured in Connecticut, not China and in Indiana, not India.
Tax credits for alternative energy technologies are crucial to these
industries across the United States, and particularly in Connecticut.
Connecticut has become a leader in the alternative energy field,
particularly in the area of fuel cell technology. We have succeeded as
a result of investment in research and development, partnerships
between the industry and the state and federal government and the
ingenuity and talented workforce in the state.
The impact of the fuel cell industry on Connecticut's economy has
been powerful. The Connecticut fuel cell industry has created over
2,000 jobs statewide and generates $29 million in tax revenues to the
state annually.
The Renewable Energy and Energy Conservation Tax Act of 2008
strengthens and extends the tax credits for investment in fuel cell
technology for 8 years, providing much needed certainty to the
industry. It also extends the production tax credit for alternative
energy technologies like wind, solar and geothermal energy.
In a recent New York Times article, a reporter traveled to small
towns in Texas that people had all but given up on because of their
faltering economies. These same towns are now experiencing a rebirth
because the wind industry is bringing jobs back to their community.
This is the impact this important legislation can have on towns
throughout the Nation and why I rise today in strong support of H.R.
5351.
Mr. HOLT. Mr. Speaker, I rise today in support of H.R. 5351, the
Renewable Energy and Energy Conservation Tax Act of 2008.
For the last 20 years, my colleagues in the scientific community have
issued warnings that the release of greenhouse gases is altering the
earth's climate in ways that are both expensive and deadly. It is well
established that the climate change of recent decades can be attributed
to the way we use energy. In fact, the greatest insult to our planet is
the way we produce and use energy. This is one of the principle
subjects that I have spoken about and worked on since I first ran for
Congress, and it is one of the reasons, I believe, that my constituents
sent me to Congress.
As an energy scientist, I know how much can be done technically to
reduce our dependence on fossil fuels and to slow the rate of climate
change. Last year, Congress passed H.R. 6, the Energy Independence and
Security Act, historic legislation that took the long overdue first
steps toward addressing global climate change and addressing our long
term energy needs. Unfortunately, the U.S. Senate removed a provision
from the H.R. 6 that would have repealed billions in tax subsidies for
oil companies and instead invested in the production of renewable
energy. I am pleased that the House is reconsidering these important
provisions today in H.R. 5351. If this legislation becomes law it will
be a significant second step toward implementing a rational,
sustainable national energy policy.
Today, consumers are paying more at the pump than ever before. My
constituents in my Central New Jersey district are paying $2.95 at the
pump, a 119 percent increase from what they paid in 2001. Gas prices
throughout the country over the last two weeks have risen an additional
17 cents, and oil prices have reached a record high at $102 per barrel.
While American families transportation and heating costs continue to
rise, the five top oil companies posted record profits for 2007, and
ExxonMobil posted the largest corporate profit in American history of
$40.6 billion. At this time of record profits, oil companies are
receiving huge government subsidies. It is past time that we reverse
this failed policy which has only benefited big oil companies at the
expense of American families and our environment.
The legislation before us today would eliminate the $18 billion in
tax breaks that have been awarded to big oil. It will use this money to
extend and expand tax incentives for renewable electricity, energy and
fuel, as well as for plug-in hybrid cars, and energy efficient homes,
buildings, and appliances. Specifically, it would extend existing tax
credits for the production of renewable energy, including solar, wind,
biomass, geothermal, hydro, landfill gas and trash combustion, as well
as adding new incentives for the use and production of renewable
energy.
My home state of New Jersey has been a leader in solar production,
with over 2,400 solar installations in place and I am told that it has
the fastest growing solar market in the United States. The extension of
the solar energy tax credit through 2016 will help ensure that the use
of solar will continue to proliferate in New Jersey. This will help New
Jerseyans reach our goal of having 20 percent of the State's
electricity come from renewable sources by 2020.
The renewal of these tax credits will also help to increase our
economy by creating hundreds of thousands of jobs. According to a
recent study, if the renewable energy tax breaks expire at the end of
this year over 116,000 jobs in wind and solar industries would be lost
in one year. Today, when the predicted economic growth forecast is an
anemic pace of 1.3 to 2 percent and unemployment is likely to climb
above percent, we in Congress should do everything we can to ensure job
growth and preserve jobs.
Of course, this bill is not enough. If it becomes law it will be an
excellent continuation of the work we began last year. Having passed
this bill we will be able to continue to consider other alternative
energy and climate change legislation, and I am confident that we will.
I urge my colleagues to support this legislation.
Ms. HIRONO. Mr. Speaker, I rise in support of H.R. 5351, the
Renewable Energy and Energy Conservation Tax Act.
I am proud to be an original cosponsor of this bill, which promotes
renewable energy by providing more than $8 billion in long-term tax
incentives for electricity produced from renewable sources and
encourages greater energy efficiency improvements to homes and
commercial buildings.
H.R. 5351 also repeals $18 billion in tax subsidies and loopholes
that have for too long benefited the big multi-national oil and gas
companies, even as they continue to reap record-breaking profits. While
Exxon Mobil raked in $40 billion in earnings last year, American
families paid skyrocketing gas prices. In my home State of Hawai'i,
where about 90 percent of our energy comes from imported petroleum,
residents pay among the Nation's highest prices for electricity and
fuel, an average of $3.54 per gallon at the pump. In some parts of the
State, the cost for a gallon of regular gas has risen to nearly $4.00.
Consumers in Hawaii and across the Nation should not be burdened by
excessively high energy costs while also facing a growing credit and
housing crisis.
We cannot continue to rely upon Big Oil and offshore oil producers to
supply our energy needs at the expense of consumers and the
environment. This bill contains long-term tax incentives to achieve
energy independence by expanding production of renewable homegrown
fuels and electricity in addition to extending tax credits for solar
energy, fuel cell investment, and residential energy efficient
property.
I believe that H.R. 5351 will do much to put us on a path toward
energy independence, create new jobs as we invest in renewable energy
production, and help tight global warming. I urge my colleagues to
support this measure.
Mr. STARK. Mr. Speaker, I rise today to join with my colleagues to
once again support legislation that would take a modest first step
towards a rational energy policy. By ``rational,'' I mean that this
bill employs the revolutionary concept that legislation should be
crafted with the American people in mind, rather than huge
multinational oil companies. By ``modest,'' I mean that we have much
more work to do to confront global warming and wean our Nation off our
addiction to fossil fuels.
The headlines tell a somber story of an economy on the brink. Earlier
today, oil reached an all-time high of $102 a barrel. The International
Herald Tribune reported that we can expect to see gas cost more than $4
a
[[Page H1116]]
gallon this spring. And the Washington Post this morning quoted an
economist who announced that ``We're in stagflation, and it's going to
get worse.''
Not everyone is singing the blues, however. Earlier this month, the
New York Times reported that Exxon Mobil once again set the record for
the highest profits ever recorded by a single company, with a net
income of $40.6 billion. As reported by the Times, Exxon made $1,287 of
profit per second in 2007. Through loopholes in our tax code, taxpayers
subsidized much of that profit.
I support the tax portion of this package that ends the over $16
billion in tax breaks for companies like Exxon-Mobil. Today's bill also
closes a ridiculous loophole that allows business owners to claim
$25,000 deductions for each gaz-guzzling Hummer they purchase. The
savings generated are then invested in developing clean energy.
The bill before us today makes important progress and I once again
urge my colleagues to support it. Tinkering with the tax code, however,
will only get us so far. We must be prepared to take bold action to
combat global warming by engaging with the rest of the world and
adopting either a progressive carbon tax or a robust cap and trade
policy.
Mr. PEARCE. Mr. Speaker, let it be clear, an overwhelming majority of
the members of this House, including this member, strongly support
extending the Wind and Solar tax credits. These credits will help begin
new investments to create new jobs, establish new industries in this
country and eventually create more energy for America.
However, in order to pay for these new investments, this bill will
kill thousands of current manufacturing jobs by raising taxes and
giving foreign companies a competitive advantage.
Are we willing to sacrifice jobs Americans have right now for the
promise or opportunity for future jobs? I would say that we don't have
to make that choice. Yet, the Majority clearly believes that is the
only choice before us.
Instead of the massive new tax increases in this bill, we could open
up development 44 miles off the coast of Florida beside the Chinese
companies working with the Cuban government to drill 46 miles off the
coast of Florida.
We could open up new opportunities off the coast of California where
new rigs could drill for oil and serve as new platforms for generating
renewable wind and tidal energy.
We could lease more areas in Alaska, where a sale last month
generated $2.6 billion in revenues for America in lease sales and will
generate tens of billions in royalties in the years to come.
If our goal is to reduce our dependence on foreign energy, this bill
fails to accomplish that. I would rhetorically ask the Chairman how
much of a tax increase in this bill is on oil companies based in
Venezuela or Iran? The answer is none. How much of the tax increases in
this bill fall on American companies working in Artesia or Farmington,
New Mexico? One hundred percent.
We don't have to choose promoting new industries by destroying old
industries. This is a case where we could have it all, new energy
development and more energy development, unfortunately the Speaker wont
let us make that choice.
Mr. McKEON. Mr. Speaker, I rise in opposition to H.R. 5351, the
latest in a string of flawed energy proposals that will drive up prices
for consumers while rewarding special interests.
As Senior Republican on the Education and Labor Committee, I oppose
not only the bill's unprecedented energy tax hike, but also its
inclusion of bureaucratic mandates that will drive up costs for
taxpayers and stifle job creation.
This bill furthers the majority's aggressive expansion of Davis-Bacon
wage mandates, a Depression-era policy that saddles federal projects
with complicated and highly inaccurate prevailing wage requirements.
Davis-Bacon wages can inflate project costs by as much as 15
percent--costs that get passed on to taxpayers. They also force private
companies to do hundreds of millions of dollars of excess
administrative work each year, squandering resources that would be
better spent creating jobs and spurring innovation.
H.R. 5351 creates and expands bond authority for energy conservation
and clean renewable energy. Unfortunately, these bond programs are
prone to waste, fraud, and abuse because of a lack of clear oversight.
Moreover, projects funded through these bonds would be subject to
Davis-Bacon wage mandates.
The notion of a one-size-fits-all federal wage mandate is bad enough,
but the specifics of the Davis-Bacon rules are even worse. Because of
flawed wage calculations, use of Davis-Bacon wages can drive up wages
on one project, while shortchanging workers on another.
The costly and time-consuming requirements of Davis-Bacon bias
government contracting against small businesses that are often
minority- or female-owned--businesses that simply do not have the
resources to comply. As a result, large, unionized companies are more
often awarded government contracts--even for small projects.
We need energy independence and lower fuel costs. This bill imposes
energy tax hikes that will drive up costs for consumers. We need to
eliminate federal red tape to promote job creation. This bill expands
the bureaucracy by layering costly Davis-Bacon wage mandates on bond
programs already prone to waste, fraud, and abuse.
For these and many other reasons, Mr. Speaker, I cannot support this
energy tax increase, and I urge my colleagues to join me voting ``no.''
Mr. RANGEL. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 1001, the bill is considered read and
the previous question is ordered.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion to Recommit Offered by Mr. Hoekstra
Mr. HOEKSTRA. Mr. Speaker, I offer a motion to recommit.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. HOEKSTRA. Yes, I am in its current form.
Mr. RANGEL. Mr. Speaker, I reserve a point of order.
The SPEAKER pro tempore. A point of order is reserved.
The Clerk will report the motion to recommit.
The Clerk read as follows:
Mr. Hoekstra moves to recommit the bill, H.R. 5351, to the
Committee on Ways and Means, with instructions to report the
same back to the House forthwith with the following
amendment:
Strike all after the enacting clause and insert the
following:
SECTION 1. FINDINGS.
Congress finds the following:
(1) The energy security of the United States is tied
directly to the national security of the United States, the
stability of the United States economy, and the stability of
key oil producing nations.
(2) Radical jihadists who attacked the United States on
September 11, 2001, continue planning to attack the United
States and its citizens. If successful, such attacks would
directly impact the energy security of the United States.
Radical jihadists also seek to replace the governments of key
oil producing nations with a caliphate.
(3) The Protect America Act of 2007, which provided key
tools to detect and prevent potential terrorist attacks in
foreign countries and within the United States expired at
midnight, February 17, 2007.
(4) Without those key tools, the capability of the United
States intelligence community to detect and prevent potential
attacks has begun to substantially degrade, placing at risk
the national security of the United States and the energy
security of the United States.
(5) Consistent with a bipartisan consensus, Congress must
take immediate action to adopt legislation to provide the
intelligence community with strong and effective tools to
ensure the national security and the energy security of the
United States.
SEC. 2. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Foreign
Intelligence Surveillance Act of 1978 Amendments Act of
2008'' or the ``FISA Amendments Act of 2008''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Findings.
Sec. 2. Short title; table of contents.
TITLE I--FOREIGN INTELLIGENCE SURVEILLANCE
Sec. 101. Additional procedures regarding certain persons outside the
United States.
Sec. 102. Statement of exclusive means by which electronic surveillance
and interception of domestic communications may be
conducted.
Sec. 103. Submittal to Congress of certain court orders under the
Foreign Intelligence Surveillance Act of 1978.
Sec. 104. Applications for court orders.
Sec. 105. Issuance of an order.
Sec. 106. Use of information.
Sec. 107. Amendments for physical searches.
Sec. 108. Amendments for emergency pen registers and trap and trace
devices.
Sec. 109. Foreign Intelligence Surveillance Court.
Sec. 110. Weapons of mass destruction.
Sec. 111. Technical and conforming amendments.
TITLE II--PROTECTIONS FOR ELECTRONIC COMMUNICATION SERVICE PROVIDERS
Sec. 201. Definitions.
Sec. 202. Limitations on civil actions for electronic communication
service providers.
[[Page H1117]]
Sec. 203. Procedures for implementing statutory defenses under the
Foreign Intelligence Surveillance Act of 1978.
Sec. 204. Preemption of State investigations.
Sec. 205. Technical amendments.
TITLE III--OTHER PROVISIONS
Sec. 301. Severability.
Sec. 302. Effective date; repeal; transition procedures.
TITLE I--FOREIGN INTELLIGENCE SURVEILLANCE
SEC. 101. ADDITIONAL PROCEDURES REGARDING CERTAIN PERSONS
OUTSIDE THE UNITED STATES.
(a) In General.--The Foreign Intelligence Surveillance Act
of 1978 (50 U.S.C. 1801 et seq.) is amended--
(1) by striking title VII; and
(2) by adding after title VI the following new title:
``TITLE VII--ADDITIONAL PROCEDURES REGARDING CERTAIN PERSONS OUTSIDE
THE UNITED STATES
``SEC. 701. LIMITATION ON DEFINITION OF ELECTRONIC
SURVEILLANCE.
``Nothing in the definition of electronic surveillance
under section 101(f) shall be construed to encompass
surveillance that is targeted in accordance with this title
at a person reasonably believed to be located outside the
United States.
``SEC. 702. DEFINITIONS.
``(a) In General.--The terms `agent of a foreign power',
`Attorney General', `contents', `electronic surveillance',
`foreign intelligence information', `foreign power',
`minimization procedures', `person', `United States', and
`United States person' shall have the meanings given such
terms in section 101, except as specifically provided in this
title.
``(b) Additional Definitions.--
``(1) Congressional intelligence committees.--The term
`congressional intelligence committees' means--
``(A) the Select Committee on Intelligence of the Senate;
and
``(B) the Permanent Select Committee on Intelligence of the
House of Representatives.
``(2) Foreign intelligence surveillance court; court.--The
terms `Foreign Intelligence Surveillance Court' and `Court'
mean the court established by section 103(a).
``(3) Foreign intelligence surveillance court of review;
court of review.--The terms `Foreign Intelligence
Surveillance Court of Review' and `Court of Review' mean the
court established by section 103(b).
``(4) Electronic communication service provider.--The term
`electronic communication service provider' means--
``(A) a telecommunications carrier, as that term is defined
in section 3 of the Communications Act of 1934 (47 U.S.C.
153);
``(B) a provider of electronic communication service, as
that term is defined in section 2510 of title 18, United
States Code;
``(C) a provider of a remote computing service, as that
term is defined in section 2711 of title 18, United States
Code;
``(D) any other communication service provider who has
access to wire or electronic communications either as such
communications are transmitted or as such communications are
stored; or
``(E) an officer, employee, or agent of an entity described
in subparagraph (A), (B), (C), or (D).
``(5) Element of the intelligence community.--The term
`element of the intelligence community' means an element of
the intelligence community specified in or designated under
section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)).
``SEC. 703. PROCEDURES FOR TARGETING CERTAIN PERSONS OUTSIDE
THE UNITED STATES OTHER THAN UNITED STATES
PERSONS.
``(a) Authorization.--Notwithstanding any other law, the
Attorney General and the Director of National Intelligence
may authorize jointly, for periods of up to 1 year, the
targeting of persons reasonably believed to be located
outside the United States to acquire foreign intelligence
information.
``(b) Limitations.--An acquisition authorized under
subsection (a)--
``(1) may not intentionally target any person known at the
time of acquisition to be located in the United States;
``(2) may not intentionally target a person reasonably
believed to be located outside the United States if the
purpose of such acquisition is to target a particular, known
person reasonably believed to be in the United States, except
in accordance with title I or title III;
``(3) may not intentionally target a United States person
reasonably believed to be located outside the United States,
except in accordance with sections 704, 705, or 706;
``(4) shall not intentionally acquire any communication as
to which the sender and all intended recipients are known at
the time of the acquisition to be located in the United
States; and
``(5) shall be conducted in a manner consistent with the
fourth amendment to the Constitution of the United States.
``(c) Conduct of Acquisition.--An acquisition authorized
under subsection (a) may be conducted only in accordance
with--
``(1) a certification made by the Attorney General and the
Director of National Intelligence pursuant to subsection (f);
and
``(2) the targeting and minimization procedures required
pursuant to subsections (d) and (e).
``(d) Targeting Procedures.--
``(1) Requirement to adopt.--The Attorney General, in
consultation with the Director of National Intelligence,
shall adopt targeting procedures that are reasonably designed
to ensure that any acquisition authorized under subsection
(a) is limited to targeting persons reasonably believed to be
located outside the United States and does not result in the
intentional acquisition of any communication as to which the
sender and all intended recipients are known at the time of
the acquisition to be located in the United States.
``(2) Judicial review.--The procedures referred to in
paragraph (1) shall be subject to judicial review pursuant to
subsection (h).
``(e) Minimization Procedures.--
``(1) Requirement to adopt.--The Attorney General, in
consultation with the Director of National Intelligence,
shall adopt minimization procedures that meet the definition
of minimization procedures under section 101(h) or section
301(4) for acquisitions authorized under subsection (a).
``(2) Judicial review.--The minimization procedures
required by this subsection shall be subject to judicial
review pursuant to subsection (h).
``(f) Certification.--
``(1) In general.--
``(A) Requirement.--Subject to subparagraph (B), prior to
the initiation of an acquisition authorized under subsection
(a), the Attorney General and the Director of National
Intelligence shall provide, under oath, a written
certification, as described in this subsection.
``(B) Exception.--If the Attorney General and the Director
of National Intelligence determine that immediate action by
the Government is required and time does not permit the
preparation of a certification under this subsection prior to
the initiation of an acquisition, the Attorney General and
the Director of National Intelligence shall prepare such
certification, including such determination, as soon as
possible but in no event more than 7 days after such
determination is made.
``(2) Requirements.--A certification made under this
subsection shall--
``(A) attest that--
``(i) there are reasonable procedures in place for
determining that the acquisition authorized under subsection
(a) is targeted at persons reasonably believed to be located
outside the United States and that such procedures have been
approved by, or will be submitted in not more than 5 days for
approval by, the Foreign Intelligence Surveillance Court
pursuant to subsection (h);
``(ii) there are reasonable procedures in place for
determining that the acquisition authorized under subsection
(a) does not result in the intentional acquisition of any
communication as to which the sender and all intended
recipients are known at the time of the acquisition to be
located in the United States, and that such procedures have
been approved by, or will be submitted in not more than 5
days for approval by, the Foreign Intelligence Surveillance
Court pursuant to subsection (h);
``(iii) the procedures referred to in clauses (i) and (ii)
are consistent with the requirements of the fourth amendment
to the Constitution of the United States and do not permit
the intentional targeting of any person who is known at the
time of acquisition to be located in the United States or the
intentional acquisition of any communication as to which the
sender and all intended recipients are known at the time of
acquisition to be located in the United States;
``(iv) a significant purpose of the acquisition is to
obtain foreign intelligence information;
``(v) the minimization procedures to be used with respect
to such acquisition--
``(I) meet the definition of minimization procedures under
section 101(h) or section 301(4); and
``(II) have been approved by, or will be submitted in not
more than 5 days for approval by, the Foreign Intelligence
Surveillance Court pursuant to subsection (h);
``(vi) the acquisition involves obtaining the foreign
intelligence information from or with the assistance of an
electronic communication service provider; and
``(vii) the acquisition does not constitute electronic
surveillance, as limited by section 701; and
``(B) be supported, as appropriate, by the affidavit of any
appropriate official in the area of national security who
is--
``(i) appointed by the President, by and with the consent
of the Senate; or
``(ii) the head of any element of the intelligence
community.
``(3) Limitation.--A certification made under this
subsection is not required to identify the specific
facilities, places, premises, or property at which the
acquisition authorized under subsection (a) will be directed
or conducted.
``(4) Submission to the court.--The Attorney General shall
transmit a copy of a certification made under this
subsection, and any supporting affidavit, under seal to the
Foreign Intelligence Surveillance Court as soon as possible,
but in no event more than 5 days after such certification is
made. Such certification shall be maintained under security
measures adopted by the Chief Justice of the United States
and the Attorney General, in consultation with the Director
of National Intelligence.
``(5) Review.--The certification required by this
subsection shall be subject to judicial review pursuant to
subsection (h).
[[Page H1118]]
``(g) Directives and Judicial Review of Directives.--
``(1) Authority.--With respect to an acquisition authorized
under subsection (a), the Attorney General and the Director
of National Intelligence may direct, in writing, an
electronic communication service provider to--
``(A) immediately provide the Government with all
information, facilities, or assistance necessary to
accomplish the acquisition in a manner that will protect the
secrecy of the acquisition and produce a minimum of
interference with the services that such electronic
communication service provider is providing to the target;
and
``(B) maintain under security procedures approved by the
Attorney General and the Director of National Intelligence
any records concerning the acquisition or the aid furnished
that such electronic communication service provider wishes to
maintain.
``(2) Compensation.--The Government shall compensate, at
the prevailing rate, an electronic communication service
provider for providing information, facilities, or assistance
pursuant to paragraph (1).
``(3) Release from liability.--Notwithstanding any other
law, no cause of action shall lie in any court against any
electronic communication service provider for providing any
information, facilities, or assistance in accordance with a
directive issued pursuant to paragraph (1).
``(4) Challenging of directives.--
``(A) Authority to challenge.--An electronic communication
service provider receiving a directive issued pursuant to
paragraph (1) may challenge the directive by filing a
petition with the Foreign Intelligence Surveillance Court,
which shall have jurisdiction to review such a petition.
``(B) Assignment.--The presiding judge of the Court shall
assign the petition filed under subparagraph (A) to 1 of the
judges serving in the pool established by section 103(e)(1)
not later than 24 hours after the filing of the petition.
``(C) Standards for review.--A judge considering a petition
to modify or set aside a directive may grant such petition
only if the judge finds that the directive does not meet the
requirements of this section, or is otherwise unlawful.
``(D) Procedures for initial review.--A judge shall conduct
an initial review not later than 5 days after being assigned
a petition described in subparagraph (C). If the judge
determines that the petition consists of claims, defenses, or
other legal contentions that are not warranted by existing
law or by a nonfrivolous argument for extending, modifying,
or reversing existing law or for establishing new law, the
judge shall immediately deny the petition and affirm the
directive or any part of the directive that is the subject of
the petition and order the recipient to comply with the
directive or any part of it. Upon making such a determination
or promptly thereafter, the judge shall provide a written
statement for the record of the reasons for a determination
under this subparagraph.
``(E) Procedures for plenary review.--If a judge determines
that a petition described in subparagraph (C) requires
plenary review, the judge shall affirm, modify, or set aside
the directive that is the subject of that petition not later
than 30 days after being assigned the petition, unless the
judge, by order for reasons stated, extends that time as
necessary to comport with the due process clause of the fifth
amendment to the Constitution of the United States. Unless
the judge sets aside the directive, the judge shall
immediately affirm or affirm with modifications the
directive, and order the recipient to comply with the
directive in its entirety or as modified. The judge shall
provide a written statement for the records of the reasons
for a determination under this subparagraph.
``(F) Continued effect.--Any directive not explicitly
modified or set aside under this paragraph shall remain in
full effect.
``(G) Contempt of court.--Failure to obey an order of the
Court issued under this paragraph may be punished by the
Court as contempt of court.
``(5) Enforcement of directives.--
``(A) Order to compel.--In the case of a failure to comply
with a directive issued pursuant to paragraph (1), the
Attorney General may file a petition for an order to compel
compliance with the directive with the Foreign Intelligence
Surveillance Court, which shall have jurisdiction to review
such a petition.
``(B) Assignment.--The presiding judge of the Court shall
assign a petition filed under subparagraph (A) to 1 of the
judges serving in the pool established by section 103(e)(1)
not later than 24 hours after the filing of the petition.
``(C) Standards for review.--A judge considering a petition
filed under subparagraph (A) shall issue an order requiring
the electronic communication service provider to comply with
the directive or any part of it, as issued or as modified, if
the judge finds that the directive meets the requirements of
this section, and is otherwise lawful.
``(D) Procedures for review.--The judge shall render a
determination not later than 30 days after being assigned a
petition filed under subparagraph (A), unless the judge, by
order for reasons stated, extends that time if necessary to
comport with the due process clause of the fifth amendment to
the Constitution of the United States. The judge shall
provide a written statement for the record of the reasons for
a determination under this paragraph.
``(E) Contempt of court.--Failure to obey an order of the
Court issued under this paragraph may be punished by the
Court as contempt of court.
``(F) Process.--Any process under this paragraph may be
served in any judicial district in which the electronic
communication service provider may be found.
``(6) Appeal.--
``(A) Appeal to the court of review.--The Government or an
electronic communication service provider receiving a
directive issued pursuant to paragraph (1) may file a
petition with the Foreign Intelligence Surveillance Court of
Review for review of the decision issued pursuant to
paragraph (4) or (5). The Court of Review shall have
jurisdiction to consider such a petition and shall provide a
written statement for the record of the reasons for a
decision under this paragraph.
``(B) Certiorari to the supreme court.--The Government or
an electronic communication service provider receiving a
directive issued pursuant to paragraph (1) may file a
petition for a writ of certiorari for review of the decision
of the Court of Review issued under subparagraph (A). The
record for such review shall be transmitted under seal to the
Supreme Court of the United States, which shall have
jurisdiction to review such decision.
``(h) Judicial Review of Certifications and Procedures.--
``(1) In general.--
``(A) Review by the foreign intelligence surveillance
court.--The Foreign Intelligence Surveillance Court shall
have jurisdiction to review any certification required by
subsection (c) and the targeting and minimization procedures
adopted pursuant to subsections (d) and (e).
``(B) Submission to the court.--The Attorney General shall
submit to the Court any such certification or procedure, or
amendment thereto, not later than 5 days after making or
amending the certification or adopting or amending the
procedures.
``(2) Certifications.--The Court shall review a
certification provided under subsection (f) to determine
whether the certification contains all the required elements.
``(3) Targeting procedures.--The Court shall review the
targeting procedures required by subsection (d) to assess
whether the procedures are reasonably designed to ensure that
the acquisition authorized under subsection (a) is limited to
the targeting of persons reasonably believed to be located
outside the United States and does not result in the
intentional acquisition of any communication as to which the
sender and all intended recipients are known at the time of
the acquisition to be located in the United States.
``(4) Minimization procedures.--The Court shall review the
minimization procedures required by subsection (e) to assess
whether such procedures meet the definition of minimization
procedures under section 101(h) or section 301(4).
``(5) Orders.--
``(A) Approval.--If the Court finds that a certification
required by subsection (f) contains all of the required
elements and that the targeting and minimization procedures
required by subsections (d) and (e) are consistent with the
requirements of those subsections and with the fourth
amendment to the Constitution of the United States, the Court
shall enter an order approving the continued use of the
procedures for the acquisition authorized under subsection
(a).
``(B) Correction of deficiencies.--If the Court finds that
a certification required by subsection (f) does not contain
all of the required elements, or that the procedures required
by subsections (d) and (e) are not consistent with the
requirements of those subsections or the fourth amendment to
the Constitution of the United States, the Court shall issue
an order directing the Government to, at the Government's
election and to the extent required by the Court's order--
``(i) correct any deficiency identified by the Court's
order not later than 30 days after the date the Court issues
the order; or
``(ii) cease the acquisition authorized under subsection
(a).
``(C) Requirement for written statement.--In support of its
orders under this subsection, the Court shall provide,
simultaneously with the orders, for the record a written
statement of its reasons.
``(6) Appeal.--
``(A) Appeal to the court of review.--The Government may
appeal any order under this section to the Foreign
Intelligence Surveillance Court of Review, which shall have
jurisdiction to review such order. For any decision
affirming, reversing, or modifying an order of the Foreign
Intelligence Surveillance Court, the Court of Review shall
provide for the record a written statement of its reasons.
``(B) Continuation of acquisition pending rehearing or
appeal.--Any acquisitions affected by an order under
paragraph (5)(B) may continue--
``(i) during the pendency of any rehearing of the order by
the Court en banc; and
``(ii) if the Government appeals an order under this
section, until the Court of Review enters an order under
subparagraph (C).
``(C) Implementation pending appeal.--Not later than 60
days after the filing of an appeal of an order under
paragraph (5)(B) directing the correction of a deficiency,
the Court of Review shall determine, and enter a
corresponding order regarding, whether all or any part of the
correction order, as issued
[[Page H1119]]
or modified, shall be implemented during the pendency of the
appeal.
``(D) Certiorari to the supreme court.--The Government may
file a petition for a writ of certiorari for review of a
decision of the Court of Review issued under subparagraph
(A). The record for such review shall be transmitted under
seal to the Supreme Court of the United States, which shall
have jurisdiction to review such decision.
``(i) Expedited Judicial Proceedings.--Judicial proceedings
under this section shall be conducted as expeditiously as
possible.
``(j) Maintenance and Security of Records and
Proceedings.--
``(1) Standards.--A record of a proceeding under this
section, including petitions filed, orders granted, and
statements of reasons for decision, shall be maintained under
security measures adopted by the Chief Justice of the United
States, in consultation with the Attorney General and the
Director of National Intelligence.
``(2) Filing and review.--All petitions under this section
shall be filed under seal. In any proceedings under this
section, the court shall, upon request of the Government,
review ex parte and in camera any Government submission, or
portions of a submission, which may include classified
information.
``(3) Retention of records.--A directive made or an order
granted under this section shall be retained for a period of
not less than 10 years from the date on which such directive
or such order is made.
``(k) Assessments and Reviews.--
``(1) Semiannual assessment.--Not less frequently than once
every 6 months, the Attorney General and Director of National
Intelligence shall assess compliance with the targeting and
minimization procedures required by subsections (e) and (f)
and shall submit each such assessment to--
``(A) the Foreign Intelligence Surveillance Court; and
``(B) the congressional intelligence committees.
``(2) Agency assessment.--The Inspectors General of the
Department of Justice and of any element of the intelligence
community authorized to acquire foreign intelligence
information under subsection (a) with respect to their
department, agency, or element--
``(A) are authorized to review the compliance with the
targeting and minimization procedures required by subsections
(d) and (e);
``(B) with respect to acquisitions authorized under
subsection (a), shall review the number of disseminated
intelligence reports containing a reference to a United
States person identity and the number of United States person
identities subsequently disseminated by the element concerned
in response to requests for identities that were not referred
to by name or title in the original reporting;
``(C) with respect to acquisitions authorized under
subsection (a), shall review the number of targets that were
later determined to be located in the United States and, to
the extent possible, whether their communications were
reviewed; and
``(D) shall provide each such review to--
``(i) the Attorney General;
``(ii) the Director of National Intelligence; and
``(iii) the congressional intelligence committees.
``(3) Annual review.--
``(A) Requirement to conduct.--The head of an element of
the intelligence community conducting an acquisition
authorized under subsection (a) shall direct the element to
conduct an annual review to determine whether there is reason
to believe that foreign intelligence information has been or
will be obtained from the acquisition. The annual review
shall provide, with respect to such acquisitions authorized
under subsection (a)--
``(i) an accounting of the number of disseminated
intelligence reports containing a reference to a United
States person identity;
``(ii) an accounting of the number of United States person
identities subsequently disseminated by that element in
response to requests for identities that were not referred to
by name or title in the original reporting;
``(iii) the number of targets that were later determined to
be located in the United States and, to the extent possible,
whether their communications were reviewed; and
``(iv) a description of any procedures developed by the
head of an element of the intelligence community and approved
by the Director of National Intelligence to assess, in a
manner consistent with national security, operational
requirements and the privacy interests of United States
persons, the extent to which the acquisitions authorized
under subsection (a) acquire the communications of United
States persons, as well as the results of any such
assessment.
``(B) Use of review.--The head of each element of the
intelligence community that conducts an annual review under
subparagraph (A) shall use each such review to evaluate the
adequacy of the minimization procedures utilized by such
element or the application of the minimization procedures to
a particular acquisition authorized under subsection (a).
``(C) Provision of review.--The head of each element of the
intelligence community that conducts an annual review under
subparagraph (A) shall provide such review to--
``(i) the Foreign Intelligence Surveillance Court;
``(ii) the Attorney General;
``(iii) the Director of National Intelligence; and
``(iv) the congressional intelligence committees.
``SEC. 704. CERTAIN ACQUISITIONS INSIDE THE UNITED STATES OF
UNITED STATES PERSONS OUTSIDE THE UNITED
STATES.
``(a) Jurisdiction of the Foreign Intelligence Surveillance
Court.--
``(1) In general.--The Foreign Intelligence Surveillance
Court shall have jurisdiction to enter an order approving the
targeting of a United States person reasonably believed to be
located outside the United States to acquire foreign
intelligence information, if such acquisition constitutes
electronic surveillance (as defined in section 101(f),
regardless of the limitation of section 701) or the
acquisition of stored electronic communications or stored
electronic data that requires an order under this Act, and
such acquisition is conducted within the United States.
``(2) Limitation.--In the event that a United States person
targeted under this subsection is reasonably believed to be
located in the United States during the pendency of an order
issued pursuant to subsection (c), such acquisition shall
cease until authority, other than under this section, is
obtained pursuant to this Act or the targeted United States
person is again reasonably believed to be located outside the
United States during the pendency of an order issued pursuant
to subsection (c).
``(b) Application.--
``(1) In general.--Each application for an order under this
section shall be made by a Federal officer in writing upon
oath or affirmation to a judge having jurisdiction under
subsection (a)(1). Each application shall require the
approval of the Attorney General based upon the Attorney
General's finding that it satisfies the criteria and
requirements of such application, as set forth in this
section, and shall include--
``(A) the identity of the Federal officer making the
application;
``(B) the identity, if known, or a description of the
United States person who is the target of the acquisition;
``(C) a statement of the facts and circumstances relied
upon to justify the applicant's belief that the United States
person who is the target of the acquisition is--
``(i) a person reasonably believed to be located outside
the United States; and
``(ii) a foreign power, an agent of a foreign power, or an
officer or employee of a foreign power;
``(D) a statement of the proposed minimization procedures
that meet the definition of minimization procedures under
section 101(h) or section 301(4);
``(E) a description of the nature of the information sought
and the type of communications or activities to be subjected
to acquisition;
``(F) a certification made by the Attorney General or an
official specified in section 104(a)(6) that--
``(i) the certifying official deems the information sought
to be foreign intelligence information;
``(ii) a significant purpose of the acquisition is to
obtain foreign intelligence information;
``(iii) such information cannot reasonably be obtained by
normal investigative techniques;
``(iv) designates the type of foreign intelligence
information being sought according to the categories
described in section 101(e); and
``(v) includes a statement of the basis for the
certification that--
``(I) the information sought is the type of foreign
intelligence information designated; and
``(II) such information cannot reasonably be obtained by
normal investigative techniques;
``(G) a summary statement of the means by which the
acquisition will be conducted and whether physical entry is
required to effect the acquisition;
``(H) the identity of any electronic communication service
provider necessary to effect the acquisition, provided,
however, that the application is not required to identify the
specific facilities, places, premises, or property at which
the acquisition authorized under this section will be
directed or conducted;
``(I) a statement of the facts concerning any previous
applications that have been made to any judge of the Foreign
Intelligence Surveillance Court involving the United States
person specified in the application and the action taken on
each previous application; and
``(J) a statement of the period of time for which the
acquisition is required to be maintained, provided that such
period of time shall not exceed 90 days per application.
``(2) Other requirements of the attorney general.--The
Attorney General may require any other affidavit or
certification from any other officer in connection with the
application.
``(3) Other requirements of the judge.--The judge may
require the applicant to furnish such other information as
may be necessary to make the findings required by subsection
(c)(1).
``(c) Order.--
``(1) Findings.--Upon an application made pursuant to
subsection (b), the Foreign Intelligence Surveillance Court
shall enter an ex parte order as requested or as modified
approving the acquisition if the Court finds that--
[[Page H1120]]
``(A) the application has been made by a Federal officer
and approved by the Attorney General;
``(B) on the basis of the facts submitted by the applicant,
for the United States person who is the target of the
acquisition, there is probable cause to believe that the
target is--
``(i) a person reasonably believed to be located outside
the United States; and
``(ii) a foreign power, an agent of a foreign power, or an
officer or employee of a foreign power;
``(C) the proposed minimization procedures meet the
definition of minimization procedures under section 101(h) or
section 301(4); and
``(D) the application which has been filed contains all
statements and certifications required by subsection (b) and
the certification or certifications are not clearly erroneous
on the basis of the statement made under subsection
(b)(1)(F)(v) and any other information furnished under
subsection (b)(3).
``(2) Probable cause.--In determining whether or not
probable cause exists for purposes of an order under
paragraph (1), a judge having jurisdiction under subsection
(a)(1) may consider past activities of the target, as well as
facts and circumstances relating to current or future
activities of the target. However, no United States person
may be considered a foreign power, agent of a foreign power,
or officer or employee of a foreign power solely upon the
basis of activities protected by the first amendment to the
Constitution of the United States.
``(3) Review.--
``(A) Limitation on review.--Review by a judge having
jurisdiction under subsection (a)(1) shall be limited to that
required to make the findings described in paragraph (1).
``(B) Review of probable cause.--If the judge determines
that the facts submitted under subsection (b) are
insufficient to establish probable cause to issue an order
under paragraph (1), the judge shall enter an order so
stating and provide a written statement for the record of the
reasons for such determination. The Government may appeal an
order under this clause pursuant to subsection (f).
``(C) Review of minimization procedures.--If the judge
determines that the proposed minimization procedures required
under paragraph (1)(C) do not meet the definition of
minimization procedures under section 101(h) or section
301(4), the judge shall enter an order so stating and provide
a written statement for the record of the reasons for such
determination. The Government may appeal an order under this
clause pursuant to subsection (f).
``(D) Review of certification.--If the judge determines
that an application required by subsection (b) does not
contain all of the required elements, or that the
certification or certifications are clearly erroneous on the
basis of the statement made under subsection (b)(1)(F)(v) and
any other information furnished under subsection (b)(3), the
judge shall enter an order so stating and provide a written
statement for the record of the reasons for such
determination. The Government may appeal an order under this
clause pursuant to subsection (f).
``(4) Specifications.--An order approving an acquisition
under this subsection shall specify--
``(A) the identity, if known, or a description of the
United States person who is the target of the acquisition
identified or described in the application pursuant to
subsection (b)(1)(B);
``(B) if provided in the application pursuant to subsection
(b)(1)(H), the nature and location of each of the facilities
or places at which the acquisition will be directed;
``(C) the nature of the information sought to be acquired
and the type of communications or activities to be subjected
to acquisition;
``(D) the means by which the acquisition will be conducted
and whether physical entry is required to effect the
acquisition; and
``(E) the period of time during which the acquisition is
approved.
``(5) Directions.--An order approving acquisitions under
this subsection shall direct--
``(A) that the minimization procedures be followed;
``(B) an electronic communication service provider to
provide to the Government forthwith all information,
facilities, or assistance necessary to accomplish the
acquisition authorized under this subsection in a manner that
will protect the secrecy of the acquisition and produce a
minimum of interference with the services that such
electronic communication service provider is providing to the
target;
``(C) an electronic communication service provider to
maintain under security procedures approved by the Attorney
General any records concerning the acquisition or the aid
furnished that such electronic communication service provider
wishes to maintain; and
``(D) that the Government compensate, at the prevailing
rate, such electronic communication service provider for
providing such information, facilities, or assistance.
``(6) Duration.--An order approved under this paragraph
shall be effective for a period not to exceed 90 days and
such order may be renewed for additional 90-day periods upon
submission of renewal applications meeting the requirements
of subsection (b).
``(7) Compliance.--At or prior to the end of the period of
time for which an acquisition is approved by an order or
extension under this section, the judge may assess compliance
with the minimization procedures by reviewing the
circumstances under which information concerning United
States persons was acquired, retained, or disseminated.
``(d) Emergency Authorization.--
``(1) Authority for emergency authorization.--
Notwithstanding any other provision of this Act, if the
Attorney General reasonably determines that--
``(A) an emergency situation exists with respect to the
acquisition of foreign intelligence information for which an
order may be obtained under subsection (c) before an order
authorizing such acquisition can with due diligence be
obtained, and
``(B) the factual basis for issuance of an order under this
subsection to approve such acquisition exists,
the Attorney General may authorize the emergency acquisition
if a judge having jurisdiction under subsection (a)(1) is
informed by the Attorney General, or a designee of the
Attorney General, at the time of such authorization that the
decision has been made to conduct such acquisition and if an
application in accordance with this subsection is made to a
judge of the Foreign Intelligence Surveillance Court as soon
as practicable, but not more than 7 days after the Attorney
General authorizes such acquisition.
``(2) Minimization procedures.--If the Attorney General
authorizes such emergency acquisition, the Attorney General
shall require that the minimization procedures required by
this section for the issuance of a judicial order be
followed.
``(3) Termination of emergency authorization.--In the
absence of a judicial order approving such acquisition, the
acquisition shall terminate when the information sought is
obtained, when the application for the order is denied, or
after the expiration of 7 days from the time of authorization
by the Attorney General, whichever is earliest.
``(4) Use of information.--In the event that such
application for approval is denied, or in any other case
where the acquisition is terminated and no order is issued
approving the acquisition, no information obtained or
evidence derived from such acquisition, except under
circumstances in which the target of the acquisition is
determined not to be a United States person during the
pendency of the 7-day emergency acquisition period, shall be
received in evidence or otherwise disclosed in any trial,
hearing, or other proceeding in or before any court, grand
jury, department, office, agency, regulatory body,
legislative committee, or other authority of the United
States, a State, or political subdivision thereof, and no
information concerning any United States person acquired from
such acquisition shall subsequently be used or disclosed in
any other manner by Federal officers or employees without the
consent of such person, except with the approval of the
Attorney General if the information indicates a threat of
death or serious bodily harm to any person.
``(e) Release From Liability.--Notwithstanding any other
law, no cause of action shall lie in any court against any
electronic communication service provider for providing any
information, facilities, or assistance in accordance with an
order or request for emergency assistance issued pursuant to
subsections (c) or (d).
``(f) Appeal.--
``(1) Appeal to the foreign intelligence surveillance court
of review.--The Government may file an appeal with the
Foreign Intelligence Surveillance Court of Review for review
of an order issued pursuant to subsection (c). The Court of
Review shall have jurisdiction to consider such appeal and
shall provide a written statement for the record of the
reasons for a decision under this paragraph.
``(2) Certiorari to the supreme court.--The Government may
file a petition for a writ of certiorari for review of the
decision of the Court of Review issued under paragraph (1).
The record for such review shall be transmitted under seal to
the Supreme Court of the United States, which shall have
jurisdiction to review such decision.
``SEC. 705. OTHER ACQUISITIONS TARGETING UNITED STATES
PERSONS OUTSIDE THE UNITED STATES.
``(a) Jurisdiction and Scope.--
``(1) Jurisdiction.--The Foreign Intelligence Surveillance
Court shall have jurisdiction to enter an order pursuant to
subsection (c).
``(2) Scope.--No element of the intelligence community may
intentionally target, for the purpose of acquiring foreign
intelligence information, a United States person reasonably
believed to be located outside the United States under
circumstances in which the targeted United States person has
a reasonable expectation of privacy and a warrant would be
required if the acquisition were conducted inside the United
States for law enforcement purposes, unless a judge of the
Foreign Intelligence Surveillance Court has entered an order
or the Attorney General has authorized an emergency
acquisition pursuant to subsections (c) or (d) or any other
provision of this Act.
``(3) Limitations.--
``(A) Moving or misidentified targets.--In the event that
the targeted United States person is reasonably believed to
be in the United States during the pendency of an order
issued pursuant to subsection (c), such acquisition shall
cease until authority is obtained pursuant to this Act or the
targeted United States person is again reasonably believed to
be located outside the United
[[Page H1121]]
States during the pendency of an order issued pursuant to
subsection (c).
``(B) Applicability.--If the acquisition is to be conducted
inside the United States and could be authorized under
section 704, the procedures of section 704 shall apply,
unless an order or emergency acquisition authority has been
obtained under a provision of this Act other than under this
section.
``(b) Application.--Each application for an order under
this section shall be made by a Federal officer in writing
upon oath or affirmation to a judge having jurisdiction under
subsection (a)(1). Each application shall require the
approval of the Attorney General based upon the Attorney
General's finding that it satisfies the criteria and
requirements of such application as set forth in this section
and shall include--
``(1) the identity, if known, or a description of the
specific United States person who is the target of the
acquisition;
``(2) a statement of the facts and circumstances relied
upon to justify the applicant's belief that the United States
person who is the target of the acquisition is--
``(A) a person reasonably believed to be located outside
the United States; and
``(B) a foreign power, an agent of a foreign power, or an
officer or employee of a foreign power;
``(3) a statement of the proposed minimization procedures
that meet the definition of minimization procedures under
section 101(h) or section 301(4);
``(4) a certification made by the Attorney General, an
official specified in section 104(a)(6), or the head of an
element of the intelligence community that--
``(A) the certifying official deems the information sought
to be foreign intelligence information; and
``(B) a significant purpose of the acquisition is to obtain
foreign intelligence information;
``(5) a statement of the facts concerning any previous
applications that have been made to any judge of the Foreign
Intelligence Surveillance Court involving the United States
person specified in the application and the action taken on
each previous application; and
``(6) a statement of the period of time for which the
acquisition is required to be maintained, provided that such
period of time shall not exceed 90 days per application.
``(c) Order.--
``(1) Findings.--If, upon an application made pursuant to
subsection (b), a judge having jurisdiction under subsection
(a) finds that--
``(A) on the basis of the facts submitted by the applicant,
for the United States person who is the target of the
acquisition, there is probable cause to believe that the
target is--
``(i) a person reasonably believed to be located outside
the United States; and
``(ii) a foreign power, an agent of a foreign power, or an
officer or employee of a foreign power;
``(B) the proposed minimization procedures, with respect to
their dissemination provisions, meet the definition of
minimization procedures under section 101(h) or section
301(4); and
``(C) the application which has been filed contains all
statements and certifications required by subsection (b) and
the certification provided under subsection (b)(4) is not
clearly erroneous on the basis of the information furnished
under subsection (b),
the Court shall issue an ex parte order so stating.
``(2) Probable cause.--In determining whether or not
probable cause exists for purposes of an order under
paragraph (1)(A), a judge having jurisdiction under
subsection (a)(1) may consider past activities of the target,
as well as facts and circumstances relating to current or
future activities of the target. However, no United States
person may be considered a foreign power, agent of a foreign
power, or officer or employee of a foreign power solely upon
the basis of activities protected by the first amendment to
the Constitution of the United States.
``(3) Review.--
``(A) Limitations on review.--Review by a judge having
jurisdiction under subsection (a)(1) shall be limited to that
required to make the findings described in paragraph (1). The
judge shall not have jurisdiction to review the means by
which an acquisition under this section may be conducted.
``(B) Review of probable cause.--If the judge determines
that the facts submitted under subsection (b) are
insufficient to establish probable cause to issue an order
under this subsection, the judge shall enter an order so
stating and provide a written statement for the record of the
reasons for such determination. The Government may appeal an
order under this clause pursuant to subsection (e).
``(C) Review of minimization procedures.--If the judge
determines that the minimization procedures applicable to
dissemination of information obtained through an acquisition
under this subsection do not meet the definition of
minimization procedures under section 101(h) or section
301(4), the judge shall enter an order so stating and provide
a written statement for the record of the reasons for such
determination. The Government may appeal an order under this
clause pursuant to subsection (e).
``(D) Scope of review of certification.--If the judge
determines that the certification provided under subsection
(b)(4) is clearly erroneous on the basis of the information
furnished under subsection (b), the judge shall enter an
order so stating and provide a written statement for the
record of the reasons for such determination. The Government
may appeal an order under this subparagraph pursuant to
subsection (e).
``(4) Duration.--An order under this paragraph shall be
effective for a period not to exceed 90 days and such order
may be renewed for additional 90-day periods upon submission
of renewal applications meeting the requirements of
subsection (b).
``(5) Compliance.--At or prior to the end of the period of
time for which an order or extension is granted under this
section, the judge may assess compliance with the
minimization procedures by reviewing the circumstances under
which information concerning United States persons was
disseminated, provided that the judge may not inquire into
the circumstances relating to the conduct of the acquisition.
``(d) Emergency Authorization.--
``(1) Authority for emergency authorization.--
Notwithstanding any other provision in this subsection, if
the Attorney General reasonably determines that--
``(A) an emergency situation exists with respect to the
acquisition of foreign intelligence information for which an
order may be obtained under subsection (c) before an order
under that subsection may, with due diligence, be obtained,
and
``(B) the factual basis for issuance of an order under this
section exists,
the Attorney General may authorize the emergency acquisition
if a judge having jurisdiction under subsection (a)(1) is
informed by the Attorney General or a designee of the
Attorney General at the time of such authorization that the
decision has been made to conduct such acquisition and if an
application in accordance with this subsection is made to a
judge of the Foreign Intelligence Surveillance Court as soon
as practicable, but not more than 7 days after the Attorney
General authorizes such acquisition.
``(2) Minimization procedures.--If the Attorney General
authorizes such emergency acquisition, the Attorney General
shall require that the minimization procedures required by
this section be followed.
``(3) Termination of emergency authorization.--In the
absence of an order under subsection (c), the acquisition
shall terminate when the information sought is obtained, if
the application for the order is denied, or after the
expiration of 7 days from the time of authorization by the
Attorney General, whichever is earliest.
``(4) Use of information.--In the event that such
application is denied, or in any other case where the
acquisition is terminated and no order is issued approving
the acquisition, no information obtained or evidence derived
from such acquisition, except under circumstances in which
the target of the acquisition is determined not to be a
United States person during the pendency of the 7-day
emergency acquisition period, shall be received in evidence
or otherwise disclosed in any trial, hearing, or other
proceeding in or before any court, grand jury, department,
office, agency, regulatory body, legislative committee, or
other authority of the United States, a State, or political
subdivision thereof, and no information concerning any United
States person acquired from such acquisition shall
subsequently be used or disclosed in any other manner by
Federal officers or employees without the consent of such
person, except with the approval of the Attorney General if
the information indicates a threat of death or serious bodily
harm to any person.
``(e) Appeal.--
``(1) Appeal to the court of review.--The Government may
file an appeal with the Foreign Intelligence Surveillance
Court of Review for review of an order issued pursuant to
subsection (c). The Court of Review shall have jurisdiction
to consider such appeal and shall provide a written statement
for the record of the reasons for a decision under this
paragraph.
``(2) Certiorari to the supreme court.--The Government may
file a petition for a writ of certiorari for review of the
decision of the Court of Review issued under paragraph (1).
The record for such review shall be transmitted under seal to
the Supreme Court of the United States, which shall have
jurisdiction to review such decision.
``SEC. 706. JOINT APPLICATIONS AND CONCURRENT AUTHORIZATIONS.
``(a) Joint Applications and Orders.--If an acquisition
targeting a United States person under section 704 or section
705 is proposed to be conducted both inside and outside the
United States, a judge having jurisdiction under section
704(a)(1) or section 705(a)(1) may issue simultaneously, upon
the request of the Government in a joint application
complying with the requirements of section 704(b) or section
705(b), orders under section 704(c) or section 705(c), as
applicable.
``(b) Concurrent Authorization.--If an order authorizing
electronic surveillance or physical search has been obtained
under section 105 or section 304 and that order is still in
effect, the Attorney General may authorize, without an order
under section 704 or section 705, an acquisition of foreign
intelligence information targeting that United States person
while such person is reasonably believed to be located
outside the United States.
``SEC. 707. USE OF INFORMATION ACQUIRED UNDER TITLE VII.
``(a) Information Acquired Under Section 703.--Information
acquired from an acquisition conducted under section 703
shall be
[[Page H1122]]
deemed to be information acquired from an electronic
surveillance pursuant to title I for purposes of section 106,
except for the purposes of subsection (j) of such section.
``(b) Information Acquired Under Section 704.--Information
acquired from an acquisition conducted under section 704
shall be deemed to be information acquired from an electronic
surveillance pursuant to title I for purposes of section 106.
``SEC. 708. CONGRESSIONAL OVERSIGHT.
``(a) Semiannual Report.--Not less frequently than once
every 6 months, the Attorney General shall fully inform, in a
manner consistent with national security, the congressional
intelligence committees, the Committee on the Judiciary of
the Senate, and the Committee on the Judiciary of the House
of Representatives, concerning the implementation of this
title.
``(b) Content.--Each report made under subparagraph (a)
shall include--
``(1) with respect to section 703--
``(A) any certifications made under subsection 703(f)
during the reporting period;
``(B) any directives issued under subsection 703(g) during
the reporting period;
``(C) a description of the judicial review during the
reporting period of any such certifications and targeting and
minimization procedures utilized with respect to such
acquisition, including a copy of any order or pleading in
connection with such review that contains a significant legal
interpretation of the provisions of this section;
``(D) any actions taken to challenge or enforce a directive
under paragraphs (4) or (5) of section 703(g);
``(E) any compliance reviews conducted by the Department of
Justice or the Office of the Director of National
Intelligence of acquisitions authorized under subsection
703(a);
``(F) a description of any incidents of noncompliance with
a directive issued by the Attorney General and the Director
of National Intelligence under subsection 703(g), including--
``(i) incidents of noncompliance by an element of the
intelligence community with procedures adopted pursuant to
subsections (d) and (e) of section 703; and
``(ii) incidents of noncompliance by a specified person to
whom the Attorney General and Director of National
Intelligence issued a directive under subsection 703(g); and
``(G) any procedures implementing this section;
``(2) with respect to section 704--
``(A) the total number of applications made for orders
under section 704(b);
``(B) the total number of such orders either granted,
modified, or denied; and
``(C) the total number of emergency acquisitions authorized
by the Attorney General under section 704(d) and the total
number of subsequent orders approving or denying such
acquisitions; and
``(3) with respect to section 705--
``(A) the total number of applications made for orders
under 705(b);
``(B) the total number of such orders either granted,
modified, or denied; and
``(C) the total number of emergency acquisitions authorized
by the Attorney General under subsection 705(d) and the total
number of subsequent orders approving or denying such
applications.''.
(b) Table of Contents.--The table of contents in the first
section of the Foreign Intelligence Surveillance Act of 1978
(50 U.S.C. 1801 et. seq.) is amended--
(1) by striking the item relating to title VII;
(2) by striking the item relating to section 701; and
(3) by adding at the end the following:
``TITLE VII--ADDITIONAL PROCEDURES REGARDING CERTAIN PERSONS OUTSIDE
THE UNITED STATES
``Sec. 701. Limitation on definition of electronic surveillance.
``Sec. 702. Definitions.
``Sec. 703. Procedures for targeting certain persons outside the United
States other than United States persons.
``Sec. 704. Certain acquisitions inside the United States of United
States persons outside the United States.
``Sec. 705. Other acquisitions targeting United States persons outside
the United States.
``Sec. 706. Joint applications and concurrent authorizations.
``Sec. 707. Use of information acquired under title VII.
``Sec. 708. Congressional oversight.''.
(c) Technical and Conforming Amendments.--
(1) Title 18, united states code.--
(A) Section 2232.--Section 2232(e) of title 18, United
States Code, is amended by inserting ``(as defined in section
101(f) of the Foreign Intelligence Surveillance Act of 1978,
regardless of the limitation of section 701 of that Act)''
after ``electronic surveillance''.
(B) Section 2511.--Section 2511(2)(a)(ii)(A) of title 18,
United States Code, is amended by inserting ``or a court
order pursuant to section 705 of the Foreign Intelligence
Surveillance Act of 1978'' after ``assistance''.
(2) Foreign intelligence surveillance act of 1978.--
(A) Section 109.--Section 109 of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1809) is amended by
adding at the end the following:
``(e) Definition.--For the purpose of this section, the
term `electronic surveillance' means electronic surveillance
as defined in section 101(f) of this Act regardless of the
limitation of section 701 of this Act.''.
(B) Section 110.--Section 110 of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1810) is amended by--
(i) adding an ``(a)'' before ``Civil Action'',
(ii) redesignating subsections (a) through (c) as
paragraphs (1) through (3), respectively; and
(iii) adding at the end the following:
``(b) Definition.--For the purpose of this section, the
term `electronic surveillance' means electronic surveillance
as defined in section 101(f) of this Act regardless of the
limitation of section 701 of this Act.''.
(C) Section 601.--Section 601(a)(1) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1871(a)(1))
is amended by striking subparagraphs (C) and (D) and
inserting the following:
``(C) pen registers under section 402;
``(D) access to records under section 501;
``(E) acquisitions under section 704; and
``(F) acquisitions under section 705;''.
(d) Termination of Authority.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by subsections (a)(2), (b), and (c) shall
cease to have effect on December 31, 2013.
(2) Continuing applicability.--Section 703(g)(3) of the
Foreign Intelligence Surveillance Act of 1978 (as amended by
subsection (a)) shall remain in effect with respect to any
directive issued pursuant to section 703(g) of that Act (as
so amended) for information, facilities, or assistance
provided during the period such directive was or is in
effect. Section 704(e) of the Foreign Intelligence
Surveillance Act of 1978 (as amended by subsection (a)) shall
remain in effect with respect to an order or request for
emergency assistance under that section. The use of
information acquired by an acquisition conducted under
section 703 of that Act (as so amended) shall continue to be
governed by the provisions of section 707 of that Act (as so
amended).
SEC. 102. STATEMENT OF EXCLUSIVE MEANS BY WHICH ELECTRONIC
SURVEILLANCE AND INTERCEPTION OF DOMESTIC
COMMUNICATIONS MAY BE CONDUCTED.
(a) Statement of Exclusive Means.--Title I of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et
seq.) is amended by adding at the end the following new
section:
``statement of exclusive means by which electronic surveillance and
interception of domestic communications may be conducted
``Sec. 112. The procedures of chapters 119, 121, and 206
of title 18, United States Code, and this Act shall be the
exclusive means by which electronic surveillance (as defined
in section 101(f), regardless of the limitation of section
701) and the interception of domestic wire, oral, or
electronic communications may be conducted.''.
(b) Table of Contents.--The table of contents in the first
section of the Foreign Intelligence Surveillance Act of 1978
(50 U.S.C. 1801 et seq.) is amended by adding after the item
relating to section 111, the following:
``Sec. 112. Statement of exclusive means by which electronic
surveillance and interception of domestic communications
may be conducted.''.
(c) Conforming Amendments.--Section 2511(2) of title 18,
United States Code, is amended in paragraph (f), by striking
``, as defined in section 101 of such Act,'' and inserting
``(as defined in section 101(f) of such Act regardless of the
limitation of section 701 of such Act)''.
SEC. 103. SUBMITTAL TO CONGRESS OF CERTAIN COURT ORDERS UNDER
THE FOREIGN INTELLIGENCE SURVEILLANCE ACT OF
1978.
(a) Inclusion of Certain Orders in Semiannual Reports of
Attorney General.--Subsection (a)(5) of section 601 of the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1871) is amended by striking ``(not including orders)'' and
inserting ``, orders,''.
(b) Reports by Attorney General on Certain Other Orders.--
Such section 601 is further amended by adding at the end the
following:
``(c) Submissions to Congress.--The Attorney General shall
submit to the committees of Congress referred to in
subsection (a)--
``(1) a copy of any decision, order, or opinion issued by
the Foreign Intelligence Surveillance Court or the Foreign
Intelligence Surveillance Court of Review that includes
significant construction or interpretation of any provision
of this Act, and any pleadings, applications, or memoranda of
law associated with such decision, order, or opinion, not
later than 45 days after such decision, order, or opinion is
issued; and
``(2) a copy of any such decision, order, or opinion, and
any pleadings, applications, or memoranda of law associated
with such decision, order, or opinion, that was issued during
the 5-year period ending on the date of the enactment of the
FISA Amendments Act of 2008 and not previously submitted in a
report under subsection (a).
``(d) Protection of National Security.--The Attorney
General, in consultation with the Director of National
Intelligence, may authorize redactions of materials described
in subsection (c) that are provided to the committees of
Congress referred to in subsection (a), if such redactions
are necessary to protect the national security of the
[[Page H1123]]
United States and are limited to sensitive sources and
methods information or the identities of targets.''.
(c) Definitions.--Such section 601, as amended by
subsections (a) and (b), is further amended by adding at the
end the following:
``(e) Definitions.--In this section:
``(1) Foreign intelligence surveillance court; court.--The
term `` `Foreign Intelligence Surveillance Court' '' means
the court established by section 103(a).
``(2) Foreign intelligence surveillance court of review;
court of review.--The term `Foreign Intelligence Surveillance
Court of Review' means the court established by section
103(b).''.
SEC. 104. APPLICATIONS FOR COURT ORDERS.
Section 104 of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1804) is amended--
(1) in subsection (a)--
(A) by striking paragraphs (2) and (11);
(B) by redesignating paragraphs (3) through (10) as
paragraphs (2) through (9), respectively;
(C) in paragraph (5), as redesignated by subparagraph (B)
of this paragraph, by striking ``detailed'';
(D) in paragraph (6), as redesignated by subparagraph (B)
of this paragraph, in the matter preceding subparagraph (A)--
(i) by striking ``Affairs or'' and inserting ``Affairs,'';
and
(ii) by striking ``Senate--'' and inserting ``Senate, or
the Deputy Director of the Federal Bureau of Investigation,
if designated by the President as a certifying official--'';
(E) in paragraph (7), as redesignated by subparagraph (B)
of this paragraph, by striking ``statement of'' and inserting
``summary statement of'';
(F) in paragraph (8), as redesignated by subparagraph (B)
of this paragraph, by adding ``and'' at the end; and
(G) in paragraph (9), as redesignated by subparagraph (B)
of this paragraph, by striking ``; and'' and inserting a
period;
(2) by striking subsection (b);
(3) by redesignating subsections (c) through (e) as
subsections (b) through (d), respectively; and
(4) in paragraph (1)(A) of subsection (d), as redesignated
by paragraph (3) of this subsection, by striking ``or the
Director of National Intelligence'' and inserting ``the
Director of National Intelligence, or the Director of the
Central Intelligence Agency''.
SEC. 105. ISSUANCE OF AN ORDER.
Section 105 of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1805) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (5) as
paragraphs (1) through (4), respectively;
(2) in subsection (b), by striking ``(a)(3)'' and inserting
``(a)(2)'';
(3) in subsection (c)(1)--
(A) in subparagraph (D), by adding ``and'' at the end;
(B) in subparagraph (E), by striking ``; and'' and
inserting a period; and
(C) by striking subparagraph (F);
(4) by striking subsection (d);
(5) by redesignating subsections (e) through (i) as
subsections (d) through (h), respectively;
(6) by amending subsection (e), as redesignated by
paragraph (5) of this section, to read as follows:
``(e)(1) Notwithstanding any other provision of this title,
the Attorney General may authorize the emergency employment
of electronic surveillance if the Attorney General--
``(A) reasonably determines that an emergency situation
exists with respect to the employment of electronic
surveillance to obtain foreign intelligence information
before an order authorizing such surveillance can with due
diligence be obtained;
``(B) resonably determines that the factual basis for
issuance of an order under this title to approve such
electronic surveillance exists;
``(C) informs, either personally or through a designee, a
judge having jurisdiction under section 103 at the time of
such authorization that the decision has been made to employ
emergency electronic surveillance; and
``(D) makes an application in accordance with this title to
a judge having jurisdiction under section 103 as soon as
practicable, but not later than 7 days after the Attorney
General authorizes such surveillance.
``(2) If the Attorney General authorizes the emergency
employment of electronic surveillance under paragraph (1),
the Attorney General shall require that the minimization
procedures required by this title for the issuance of a
judicial order be followed.
``(3) In the absence of a judicial order approving such
electronic surveillance, the surveillance shall terminate
when the information sought is obtained, when the application
for the order is denied, or after the expiration of 7 days
from the time of authorization by the Attorney General,
whichever is earliest.
``(4) A denial of the application made under this
subsection may be reviewed as provided in section 103.
``(5) In the event that such application for approval is
denied, or in any other case where the electronic
surveillance is terminated and no order is issued approving
the surveillance, no information obtained or evidence derived
from such surveillance shall be received in evidence or
otherwise disclosed in any trial, hearing, or other
proceeding in or before any court, grand jury, department,
office, agency, regulatory body, legislative committee, or
other authority of the United States, a State, or political
subdivision thereof, and no information concerning any United
States person acquired from such surveillance shall
subsequently be used or disclosed in any other manner by
Federal officers or employees without the consent of such
person, except with the approval of the Attorney General if
the information indicates a threat of death or serious bodily
harm to any person.
``(6) The Attorney General shall assess compliance with the
requirements of paragraph (5).''; and
(7) by adding at the end the following:
``(i) In any case in which the Government makes an
application to a judge under this title to conduct electronic
surveillance involving communications and the judge grants
such application, upon the request of the applicant, the
judge shall also authorize the installation and use of pen
registers and trap and trace devices, and direct the
disclosure of the information set forth in section
402(d)(2).''.
SEC. 106. USE OF INFORMATION.
Subsection (i) of section 106 of the Foreign Intelligence
Surveillance Act of 1978 (8 U.S.C. 1806) is amended by
striking ``radio communication'' and inserting
``communication''.
SEC. 107. AMENDMENTS FOR PHYSICAL SEARCHES.
(a) Applications.--Section 303 of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1823) is amended--
(1) in subsection (a)--
(A) by striking paragraph (2);
(B) by redesignating paragraphs (3) through (9) as
paragraphs (2) through (8), respectively;
(C) in paragraph (2), as redesignated by subparagraph (B)
of this paragraph, by striking ``detailed'';
(D) in paragraph (3)(C), as redesignated by subparagraph
(B) of this paragraph, by inserting ``or is about to be''
before ``owned''; and
(E) in paragraph (6), as redesignated by subparagraph (B)
of this paragraph, in the matter preceding subparagraph (A)--
(i) by striking ``Affairs or'' and inserting ``Affairs,'';
and
(ii) by striking ``Senate--'' and inserting ``Senate, or
the Deputy Director of the Federal Bureau of Investigation,
if designated by the President as a certifying official--'';
and
(2) in subsection (d)(1)(A), by striking ``or the Director
of National Intelligence'' and inserting ``the Director of
National Intelligence, or the Director of the Central
Intelligence Agency''.
(b) Orders.--Section 304 of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1824) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (5) as
paragraphs (1) through (4), respectively; and
(2) by amending subsection (e) to read as follows:
``(e)(1) Notwithstanding any other provision of this title,
the Attorney General may authorize the emergency employment
of a physical search if the Attorney General reasonably--
``(A) determines that an emergency situation exists with
respect to the employment of a physical search to obtain
foreign intelligence information before an order authorizing
such physical search can with due diligence be obtained;
``(B) determines that the factual basis for issuance of an
order under this title to approve such physical search
exists;
``(C) informs, either personally or through a designee, a
judge of the Foreign Intelligence Surveillance Court at the
time of such authorization that the decision has been made to
employ an emergency physical search; and
``(D) makes an application in accordance with this title to
a judge of the Foreign Intelligence Surveillance Court as
soon as practicable, but not more than 7 days after the
Attorney General authorizes such physical search.
``(2) If the Attorney General authorizes the emergency
employment of a physical search under paragraph (1), the
Attorney General shall require that the minimization
procedures required by this title for the issuance of a
judicial order be followed.
``(3) In the absence of a judicial order approving such
physical search, the physical search shall terminate when the
information sought is obtained, when the application for the
order is denied, or after the expiration of 7 days from the
time of authorization by the Attorney General, whichever is
earliest.
``(4) A denial of the application made under this
subsection may be reviewed as provided in section 103.
``(5)(A) In the event that such application for approval is
denied, or in any other case where the physical search is
terminated and no order is issued approving the physical
search, no information obtained or evidence derived from such
physical search shall be received in evidence or otherwise
disclosed in any trial, hearing, or other proceeding in or
before any court, grand jury, department, office, agency,
regulatory body, legislative committee, or other authority of
the United States, a State, or political subdivision thereof,
and no information concerning any United States person
acquired from such physical search shall subsequently be used
or
[[Page H1124]]
disclosed in any other manner by Federal officers or
employees without the consent of such person, except with the
approval of the Attorney General if the information indicates
a threat of death or serious bodily harm to any person.
``(B) The Attorney General shall assess compliance with the
requirements of subparagraph (A).''.
(c) Conforming Amendments.--The Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) is
amended--
(1) in section 304(a)(4), as redesignated by subsection (b)
of this section, by striking ``303(a)(7)(E)'' and inserting
``303(a)(6)(E)''; and
(2) in section 305(k)(2), by striking ``303(a)(7)'' and
inserting ``303(a)(6)''.
SEC. 108. AMENDMENTS FOR EMERGENCY PEN REGISTERS AND TRAP AND
TRACE DEVICES.
Section 403 of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1843) is amended--
(1) in subsection (a)(2), by striking ``48 hours'' and
inserting ``7 days''; and
(2) in subsection (c)(1)(C), by striking ``48 hours'' and
inserting ``7 days''.
SEC. 109. FOREIGN INTELLIGENCE SURVEILLANCE COURT.
(a) Designation of Judges.--Subsection (a) of section 103
of the Foreign Intelligence Surveillance Act of 1978 (50
U.S.C. 1803) is amended by inserting ``at least'' before
``seven of the United States judicial circuits''.
(b) En Banc Authority.--
(1) In general.--Subsection (a) of section 103 of the
Foreign Intelligence Surveillance Act of 1978, as amended by
subsection (a) of this section, is further amended--
(A) by inserting ``(1)'' after ``(a)''; and
(B) by adding at the end the following new paragraph:
``(2)(A) The court established under this subsection may,
on its own initiative, or upon the request of the Government
in any proceeding or a party under section 501(f) or
paragraph (4) or (5) of section 703(h), hold a hearing or
rehearing, en banc, when ordered by a majority of the judges
that constitute such court upon a determination that--
``(i) en banc consideration is necessary to secure or
maintain uniformity of the court's decisions; or
``(ii) the proceeding involves a question of exceptional
importance.
``(B) Any authority granted by this Act to a judge of the
court established under this subsection may be exercised by
the court en banc. When exercising such authority, the court
en banc shall comply with any requirements of this Act on the
exercise of such authority.
``(C) For purposes of this paragraph, the court en banc
shall consist of all judges who constitute the court
established under this subsection.''.
(2) Conforming amendments.--The Foreign Intelligence
Surveillance Act of 1978 is further amended--
(A) in subsection (a) of section 103, as amended by this
subsection, by inserting ``(except when sitting en banc under
paragraph (2))'' after ``no judge designated under this
subsection''; and
(B) in section 302(c) (50 U.S.C. 1822(c)), by inserting
``(except when sitting en banc)'' after ``except that no
judge''.
(c) Stay or Modification During an Appeal.--Section 103 of
the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1803) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:
``(f)(1) A judge of the court established under subsection
(a), the court established under subsection (b) or a judge of
that court, or the Supreme Court of the United States or a
justice of that court, may, in accordance with the rules of
their respective courts, enter a stay of an order or an order
modifying an order of the court established under subsection
(a) or the court established under subsection (b) entered
under any title of this Act, while the court established
under subsection (a) conducts a rehearing, while an appeal is
pending to the court established under subsection (b), or
while a petition of certiorari is pending in the Supreme
Court of the United States, or during the pendency of any
review by that court.
``(2) The authority described in paragraph (1) shall apply
to an order entered under any provision of this Act.''.
(d) Authority of Foreign Intelligence Surveillance Court.--
Section 103 of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1803), as amended by this Act, is amended by
adding at the end the following:
``(h)(1) Nothing in this Act shall be considered to reduce
or contravene the inherent authority of the Foreign
Intelligence Surveillance Court to determine, or enforce,
compliance with an order or a rule of such Court or with a
procedure approved by such Court.
``(2) In this subsection, the terms `Foreign Intelligence
Surveillance Court' and `Court' mean the court established by
subsection (a).''.
SEC. 110. WEAPONS OF MASS DESTRUCTION.
(a) Definitions.--
(1) Foreign power.--Subsection (a)(4) of section 101 of the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1801(a)(4)) is amended by inserting ``, the international
proliferation of weapons of mass destruction,'' after
``international terrorism''.
(2) Agent of a foreign power.--Subsection (b)(1) of such
section 101 is amended--
(A) in subparagraph (B), by striking ``or'' at the end
(B) in subparagraph (C), by striking ``or'' at the end; and
(C) by adding at the end the following new subparagraphs:
``(D) engages in the international proliferation of weapons
of mass destruction, or activities in preparation therefor;
or
``(E) engages in the international proliferation of weapons
of mass destruction, or activities in preparation therefor,
for or on behalf of a foreign power; or''.
(3) Foreign intelligence information.--Subsection (e)(1)(B)
of such section 101 is amended by striking ``sabotage or
international terrorism'' and inserting ``sabotage,
international terrorism, or the international proliferation
of weapons of mass destruction''.
(4) Weapon of mass destruction.--Such section 101 is
amended by inserting after subsection (o) the following:
``(p) `Weapon of mass destruction' means--
``(1) any destructive device described in section
921(a)(4)(A) of title 18, United States Code, that is
intended or has the capability to cause death or serious
bodily injury to a significant number of people;
``(2) any weapon that is designed or intended to cause
death or serious bodily injury through the release,
dissemination, or impact of toxic or poisonous chemicals or
their precursors;
``(3) any weapon involving a biological agent, toxin, or
vector (as such terms are defined in section 178 of title 18,
United States Code); or
``(4) any weapon that is designed to release radiation or
radioactivity at a level dangerous to human life.''.
(b) Use of Information.--
(1) In general.--Section 106(k)(1)(B) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C.
1806(k)(1)(B)) is amended by striking ``sabotage or
international terrorism'' and inserting ``sabotage,
international terrorism, or the international proliferation
of weapons of mass destruction''.
(2) Physical searches.--Section 305(k)(1)(B) of such Act
(50 U.S.C. 1825(k)(1)(B)) is amended by striking ``sabotage
or international terrorism'' and inserting ``sabotage,
international terrorism, or the international proliferation
of weapons of mass destruction''.
(c) Technical and Conforming Amendment.--Section 301(1) of
the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1821(1)) is amended by inserting `` `weapon of mass
destruction','' after `` `person',''.
SEC. 111. TECHNICAL AND CONFORMING AMENDMENTS.
Section 103(e) of the Foreign Intelligence Surveillance Act
of 1978 (50 U.S.C. 1803(e)) is amended--
(1) in paragraph (1), by striking ``105B(h) or 501(f)(1)''
and inserting ``501(f)(1) or 703''; and
(2) in paragraph (2), by striking ``105B(h) or 501(f)(1)''
and inserting ``501(f)(1) or 703''.
TITLE II--PROTECTIONS FOR ELECTRONIC COMMUNICATION SERVICE PROVIDERS
SEC. 201. DEFINITIONS.
In this title:
(1) Assistance.--The term ``assistance'' means the
provision of, or the provision of access to, information
(including communication contents, communications records, or
other information relating to a customer or communication),
facilities, or another form of assistance.
(2) Contents.--The term ``contents'' has the meaning given
that term in section 101(n) of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1801(n)).
(3) Covered civil action.--The term ``covered civil
action'' means a civil action filed in a Federal or State
court that--
(A) alleges that an electronic communication service
provider furnished assistance to an element of the
intelligence community; and
(B) seeks monetary or other relief from the electronic
communication service provider related to the provision of
such assistance.
(4) Electronic communication service provider.--The term
``electronic communication service provider'' means--
(A) a telecommunications carrier, as that term is defined
in section 3 of the Communications Act of 1934 (47 U.S.C.
153);
(B) a provider of an electronic communication service, as
that term is defined in section 2510 of title 18, United
States Code;
(C) a provider of a remote computing service, as that term
is defined in section 2711 of title 18, United States Code;
(D) any other communication service provider who has access
to wire or electronic communications either as such
communications are transmitted or as such communications are
stored;
(E) a parent, subsidiary, affiliate, successor, or assignee
of an entity described in subparagraph (A), (B), (C), or (D);
or
(F) an officer, employee, or agent of an entity described
in subparagraph (A), (B), (C), (D), or (E).
(5) Element of the intelligence community.--The term
``element of the intelligence community'' means an element of
the intelligence community specified in or designated under
section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)).
SEC. 202. LIMITATIONS ON CIVIL ACTIONS FOR ELECTRONIC
COMMUNICATION SERVICE PROVIDERS.
(a) Limitations.--
(1) In general.--Notwithstanding any other provision of
law, a covered civil action
[[Page H1125]]
shall not lie or be maintained in a Federal or State court,
and shall be promptly dismissed, if the Attorney General
certifies to the court that--
(A) the assistance alleged to have been provided by the
electronic communication service provider was--
(i) in connection with an intelligence activity involving
communications that was--
(I) authorized by the President during the period beginning
on September 11, 2001, and ending on January 17, 2007; and
(II) designed to detect or prevent a terrorist attack, or
activities in preparation for a terrorist attack, against the
United States; and
(ii) described in a written request or directive from the
Attorney General or the head of an element of the
intelligence community (or the deputy of such person) to the
electronic communication service provider indicating that the
activity was--
(I) authorized by the President; and
(II) determined to be lawful; or
(B) the electronic communication service provider did not
provide the alleged assistance.
(2) Review.--A certification made pursuant to paragraph (1)
shall be subject to review by a court for abuse of
discretion.
(b) Review of Certifications.--If the Attorney General
files a declaration under section 1746 of title 28, United
States Code, that disclosure of a certification made pursuant
to subsection (a) would harm the national security of the
United States, the court shall--
(1) review such certification in camera and ex parte; and
(2) limit any public disclosure concerning such
certification, including any public order following such an
ex parte review, to a statement that the conditions of
subsection (a) have been met, without disclosing the
subparagraph of subsection (a)(1) that is the basis for the
certification.
(c) Nondelegation.--The authority and duties of the
Attorney General under this section shall be performed by the
Attorney General (or Acting Attorney General) or a designee
in a position not lower than the Deputy Attorney General.
(d) Civil Actions in State Court.--A covered civil action
that is brought in a State court shall be deemed to arise
under the Constitution and laws of the United States and
shall be removable under section 1441 of title 28, United
States Code.
(e) Rule of Construction.--Nothing in this section may be
construed to limit any otherwise available immunity,
privilege, or defense under any other provision of law.
(f) Effective Date and Application.--This section shall
apply to any covered civil action that is pending on or filed
after the date of enactment of this Act.
SEC. 203. PROCEDURES FOR IMPLEMENTING STATUTORY DEFENSES
UNDER THE FOREIGN INTELLIGENCE SURVEILLANCE ACT
OF 1978.
The Foreign Intelligence Surveillance Act of 1978 (50
U.S.C. 1801 et seq.), as amended by section 101, is further
amended by adding after title VII the following new title:
``TITLE VIII--PROTECTION OF PERSONS ASSISTING THE GOVERNMENT
``SEC. 801. DEFINITIONS.
``In this title:
``(1) Assistance.--The term `assistance' means the
provision of, or the provision of access to, information
(including communication contents, communications records, or
other information relating to a customer or communication),
facilities, or another form of assistance.
``(2) Attorney general.--The term `Attorney General' has
the meaning give that term in section 101(g).
``(3) Contents.--The term `contents' has the meaning given
that term in section 101(n).
``(4) Electronic communication service provider.--The term
`electronic communication service provider' means--
``(A) a telecommunications carrier, as that term is defined
in section 3 of the Communications Act of 1934 (47 U.S.C.
153);
``(B) a provider of electronic communication service, as
that term is defined in section 2510 of title 18, United
States Code;
``(C) a provider of a remote computing service, as that
term is defined in section 2711 of title 18, United States
Code;
``(D) any other communication service provider who has
access to wire or electronic communications either as such
communications are transmitted or as such communications are
stored;
``(E) a parent, subsidiary, affiliate, successor, or
assignee of an entity described in subparagraph (A), (B),
(C), or (D); or
``(F) an officer, employee, or agent of an entity described
in subparagraph (A), (B), (C), (D), or (E).
``(5) Element of the intelligence community.--The term
`element of the intelligence community' means an element of
the intelligence community as specified or designated under
section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)).
``(6) Person.--The term `person' means--
``(A) an electronic communication service provider; or
``(B) a landlord, custodian, or other person who may be
authorized or required to furnish assistance pursuant to--
``(i) an order of the court established under section
103(a) directing such assistance;
``(ii) a certification in writing under section
2511(2)(a)(ii)(B) or 2709(b) of title 18, United States Code;
or
``(iii) a directive under section 102(a)(4), 105B(e), as in
effect on the day before the date of the enactment of the
FISA Amendments Act of 2008 or 703(h).
``(7) State.--The term `State' means any State, political
subdivision of a State, the Commonwealth of Puerto Rico, the
District of Columbia, and any territory or possession of the
United States, and includes any officer, public utility
commission, or other body authorized to regulate an
electronic communication service provider.
``SEC. 802. PROCEDURES FOR IMPLEMENTING STATUTORY DEFENSES.
``(a) Requirement for Certification.--
``(1) In general.--Notwithstanding any other provision of
law, no civil action may lie or be maintained in a Federal or
State court against any person for providing assistance to an
element of the intelligence community, and shall be promptly
dismissed, if the Attorney General certifies to the court
that--
``(A) any assistance by that person was provided pursuant
to an order of the court established under section 103(a)
directing such assistance;
``(B) any assistance by that person was provided pursuant
to a certification in writing under section 2511(2)(a)(ii)(B)
or 2709(b) of title 18, United States Code;
``(C) any assistance by that person was provided pursuant
to a directive under sections 102(a)(4), 105B(e), as in
effect on the day before the date of the enactment of the
FISA Amendments Act of 2008, or 703(h) directing such
assistance; or
``(D) the person did not provide the alleged assistance.
``(2) Review.--A certification made pursuant to paragraph
(1) shall be subject to review by a court for abuse of
discretion.
``(b) Limitations on Disclosure.--If the Attorney General
files a declaration under section 1746 of title 28, United
States Code, that disclosure of a certification made pursuant
to subsection (a) would harm the national security of the
United States, the court shall--
``(1) review such certification in camera and ex parte; and
``(2) limit any public disclosure concerning such
certification, including any public order following such an
ex parte review, to a statement that the conditions of
subsection (a) have been met, without disclosing the
subparagraph of subsection (a)(1) that is the basis for the
certification.
``(c) Removal.--A civil action against a person for
providing assistance to an element of the intelligence
community that is brought in a State court shall be deemed to
arise under the Constitution and laws of the United States
and shall be removable under section 1441 of title 28, United
States Code.
``(d) Relationship to Other Laws.--Nothing in this section
may be construed to limit any otherwise available immunity,
privilege, or defense under any other provision of law.
``(e) Applicability.--This section shall apply to a civil
action pending on or filed after the date of enactment of the
FISA Amendments Act of 2008.''.
SEC. 204. PREEMPTION OF STATE INVESTIGATIONS.
Title VIII of the Foreign Intelligence Surveillance Act (50
U.S.C. 1801 et seq.), as added by section 203 of this Act, is
amended by adding at the end the following new section:
``SEC. 803. PREEMPTION.
``(a) In General.--No State shall have authority to--
``(1) conduct an investigation into an electronic
communication service provider's alleged assistance to an
element of the intelligence community;
``(2) require through regulation or any other means the
disclosure of information about an electronic communication
service provider's alleged assistance to an element of the
intelligence community;
``(3) impose any administrative sanction on an electronic
communication service provider for assistance to an element
of the intelligence community; or
``(4) commence or maintain a civil action or other
proceeding to enforce a requirement that an electronic
communication service provider disclose information
concerning alleged assistance to an element of the
intelligence community.
``(b) Suits by the United States.--The United States may
bring suit to enforce the provisions of this section.
``(c) Jurisdiction.--The district courts of the United
States shall have jurisdiction over any civil action brought
by the United States to enforce the provisions of this
section.
``(d) Application.--This section shall apply to any
investigation, action, or proceeding that is pending on or
filed after the date of enactment of the FISA Amendments Act
of 2008.''.
SEC. 205. TECHNICAL AMENDMENTS.
The table of contents in the first section of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et
seq.), as amended by section 101(b), is further amended by
adding at the end the following:
``TITLE VIII--PROTECTION OF PERSONS ASSISTING THE GOVERNMENT
``Sec. 801. Definitions.
``Sec. 802. Procedures for implementing statutory defenses.
``Sec. 803. Preemption.''.
TITLE III--OTHER PROVISIONS
SEC. 301. SEVERABILITY.
If any provision of this Act, any amendment made by this
Act, or the application thereof to any person or
circumstances is
[[Page H1126]]
held invalid, the validity of the remainder of the Act, any
such amendments, and of the application of such provisions to
other persons and circumstances shall not be affected
thereby.
SEC. 302. EFFECTIVE DATE; REPEAL; TRANSITION PROCEDURES.
(a) In General.--Except as provided in subsection (c), the
amendments made by this Act shall take effect on the date of
the enactment of this Act.
(b) Repeal.--
(1) In general.--Except as provided in subsection (c),
sections 105A, 105B, and 105C of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1805a, 1805b, and 1805c)
are repealed.
(2) Table of contents.--The table of contents in the first
section of the Foreign Intelligence Surveillance Act of 1978
(50 U.S.C. 1801 et seq.) is amended by striking the items
relating to sections 105A, 105B, and 105C.
(c) Transitions Procedures.--
(1) Protection from liability.--Notwithstanding subsection
(b)(1), subsection (l) of section 105B of the Foreign
Intelligence Surveillance Act of 1978 shall remain in effect
with respect to any directives issued pursuant to such
section 105B for information, facilities, or assistance
provided during the period such directive was or is in
effect.
(2) Orders in effect.--
(A) Orders in effect on date of enactment.--Notwithstanding
any other provision of this Act or of the Foreign
Intelligence Surveillance Act of 1978--
(i) any order in effect on the date of enactment of this
Act issued pursuant to the Foreign Intelligence Surveillance
Act of 1978 or section 6(b) of the Protect America Act of
2007 (Public Law 110-55; 121 Stat. 556) shall remain in
effect until the date of expiration of such order; and
(ii) at the request of the applicant, the court established
under section 103(a) of the Foreign Intelligence Surveillance
Act of 1978 (50 U.S.C. 1803(a)) shall reauthorize such order
if the facts and circumstances continue to justify issuance
of such order under the provisions of such Act, as in effect
on the day before the date of the enactment of the Protect
America Act of 2007, except as amended by sections 102, 103,
104, 105, 106, 107, 108, 109, and 110 of this Act.
(B) Orders in effect on december 31, 2013.--Any order
issued under title VII of the Foreign Intelligence
Surveillance Act of 1978, as amended by section 101 of this
Act, in effect on December 31, 2013, shall continue in effect
until the date of the expiration of such order. Any such
order shall be governed by the applicable provisions of the
Foreign Intelligence Surveillance Act of 1978, as so amended.
(3) Authorizations and directives in effect.--
(A) Authorizations and directives in effect on date of
enactment.--Notwithstanding any other provision of this Act
or of the Foreign Intelligence Surveillance Act of 1978, any
authorization or directive in effect on the date of the
enactment of this Act issued pursuant to the Protect America
Act of 2007, or any amendment made by that Act, shall remain
in effect until the date of expiration of such authorization
or directive. Any such authorization or directive shall be
governed by the applicable provisions of the Protect America
Act of 2007 (121 Stat. 552), and the amendment made by that
Act, and, except as provided in paragraph (4) of this
subsection, any acquisition pursuant to such authorization or
directive shall be deemed not to constitute electronic
surveillance (as that term is defined in section 101(f) of
the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1801(f)), as construed in accordance with section 105A of the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1805a)).
(B) Authorizations and directives in effect on december 31,
2013.--Any authorization or directive issued under title VII
of the Foreign Intelligence Surveillance Act of 1978, as
amended by section 101 of this Act, in effect on December 31,
2013, shall continue in effect until the date of the
expiration of such authorization or directive. Any such
authorization or directive shall be governed by the
applicable provisions of the Foreign Intelligence
Surveillance Act of 1978, as so amended, and, except as
provided in section 707 of the Foreign Intelligence
Surveillance Act of 1978, as so amended, any acquisition
pursuant to such authorization or directive shall be deemed
not to constitute electronic surveillance (as that term is
defined in section 101(f) of the Foreign Intelligence
Surveillance Act of 1978, to the extent that such section
101(f) is limited by section 701 of the Foreign Intelligence
Surveillance Act of 1978, as so amended).
(4) Use of information acquired under protect america
act.--Information acquired from an acquisition conducted
under the Protect America Act of 2007, and the amendments
made by that Act, shall be deemed to be information acquired
from an electronic surveillance pursuant to title I of the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801
et seq.) for purposes of section 106 of that Act (50 U.S.C.
1806), except for purposes of subsection (j) of such section.
(5) New orders.--Notwithstanding any other provision of
this Act or of the Foreign Intelligence Surveillance Act of
1978--
(A) the government may file an application for an order
under the Foreign Intelligence Surveillance Act of 1978, as
in effect on the day before the date of the enactment of the
Protect America Act of 2007, except as amended by sections
102, 103, 104, 105, 106, 107, 108, 109, and 110 of this Act;
and
(B) the court established under section 103(a) of the
Foreign Intelligence Surveillance Act of 1978 shall enter an
order granting such an application if the application meets
the requirements of such Act, as in effect on the day before
the date of the enactment of the Protect America Act of 2007,
except as amended by sections 102, 103, 104, 105, 106, 107,
108, 109, and 110 of this Act.
(6) Extant authorizations.--At the request of the
applicant, the court established under section 103(a) of the
Foreign Intelligence Surveillance Act of 1978 shall
extinguish any extant authorization to conduct electronic
surveillance or physical search entered pursuant to such Act.
(7) Applicable provisions.--Any surveillance conducted
pursuant to an order entered pursuant to this subsection
shall be subject to the provisions of the Foreign
Intelligence Surveillance Act of 1978, as in effect on the
day before the date of the enactment of the Protect America
Act of 2007, except as amended by sections 102, 103, 104,
105, 106, 107, 108, 109, and 110 of this Act.
(8) Transition procedures concerning the targeting of
united states persons overseas.--Any authorization in effect
on the date of enactment of this Act under section 2.5 of
Executive Order 12333 to intentionally target a United States
person reasonably believed to be located outside the United
States shall remain in effect, and shall constitute a
sufficient basis for conducting such an acquisition targeting
a United States person located outside the United States
until the earlier of--
(A) the date that authorization expires; or
(B) the date that is 90 days after the date of the
enactment of this Act.
Mr. RANGEL (during the reading). Mr. Speaker, I move unanimous
consent for the suspension of the reading of the motion.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
Mr. HOEKSTRA. I object.
The SPEAKER pro tempore. Objection is heard.
The Clerk will continue reading.
Mr. RANGEL. I have a point of order at the desk and I insist on my
point of order.
The SPEAKER pro tempore. The Clerk will continue to read the motion
to recommit.
Mr. HOEKSTRA (during the reading). Mr. Speaker, I ask unanimous
consent that the motion to recommit be considered read.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Point of Order
Mr. RANGEL. Mr. Speaker, I make a point of order that the motion to
recommit is not germane to the underlying bill, and I insist on my
point of order.
The SPEAKER pro tempore. Does any other Member wish to be heard on
the point of order?
Mr. HOEKSTRA. Mr. Speaker, I would like to be heard.
Mr. Speaker, as the distinguished chairman talked about in his
closing remarks, and as the majority leader discussed in his closing
remarks, the energy security of the United States is directly tied to
the national security of the United States.
It is beyond me to understand how the proponents of this bill can
claim that the legislation before us this afternoon protects the energy
independence and energy security of the United States when our critical
foreign intelligence capabilities, designed specifically to protect the
national security of the United States, continue to degrade. This, of
course, happened 11 days ago with the expiration of the Protect America
Act.
Again the proponents of the bill say the energy security of the
United States is directly tied to the national security of the United
States. And that is why this motion to recommit should be considered in
order.
The national security of the United States is directly tied to the
effectiveness of the tools that we give to the intelligence community.
The same radical jihadist groups who attacked the United States on
September 11, 2001 are continuing their plans to attack the United
States and its citizens. You don't have to take my word for it. Read
the declassified excerpts of the National Intelligence Estimate
released by Director McConnell.
The majority leader and others who are proponents of this bill have
pointed out America's vulnerability on energy issues.
Mr. RANGEL. Mr. Speaker, I object. The proponent is not dealing with
the question of the point of order but is dealing with another subject
matter.
[[Page H1127]]
Mr. HOEKSTRA. I would like to continue.
The SPEAKER pro tempore. The gentleman from Michigan must confine his
remarks to the point of order.
Mr. HOEKSTRA. Thank you. That is exactly what I am talking about. I
thank my colleague for pointing that out.
And as we have said, your words were that this is a national security
issue and it is imperative that we deal with it. The majority leader's
words, we are talking about the threats to our oil supply and our
energy supply, whether it was from Venezuela, whether it was from the
Middle East or other parts of the world. We significantly enhance and
increase our vulnerability on an energy standpoint when we let the
tools of the intelligence community erode and when we no longer have
good insight into what radical jihadists may be doing in Pakistan or
what they may be doing in the Middle East or what they may be doing in
South America when specifically these are the home bases of radical
jihadists. You also have to take a look specifically at radical
jihadists and take a look at where they are saying they want to act.
They want to destabilize many of the governments that provide us with
the oil and energy supplies that this country is so dependent on.
The SPEAKER pro tempore. The gentleman from Michigan will suspend.
Mr. RANGEL. The proponent's speech is not related to the
parliamentary question of the relevancy to the point of order.
The SPEAKER pro tempore. The Chair will hear the gentleman on the
point of order, but his remarks must be confined to the question of the
point of order and may not dwell on the underlying substantive issue.
Mr. HOEKSTRA. Thank you.
Again, getting back to the point, the chairman has talked about
energy security being tied to national security. This motion to
recommit will do more to secure our energy independence and will do
more to protect our energy security and national security than many of
the other provisions in the bill because it specifically gives the
tools to our intelligence community to protect not only our domestic
sources of energy, but also enables us to protect the sources of energy
that come from overseas.
{time} 1500
Mr. RANGEL. Mr. Speaker, it is abundantly clear that the rules of the
House are being abused for purposes of calling attention to another
piece of legislation, and I insist on my point of order.
The SPEAKER pro tempore. Does any other Member wish to be heard on
the point of order?
Mr. RANGEL. I would like to be heard in opposition.
The SPEAKER pro tempore. The gentleman from New York is recognized.
Mr. RANGEL. Mr. Speaker, I have all the respect for the proponent of
the motion to recommit on the subject matter that he is trying to bring
to the attention of this House, but the Record has got to indicate that
as this great Nation and this House try to deal with the serious
problem of global warming, of loss of jobs, of national security, of a
variety of things that we should be focused on, that if the rule should
be used constantly throughout this debate for a purpose other than the
reason why this bill is before this House, it not only violates the
parliamentary rules, but the spirit in which we should be looking at
this energy bill. So I insist on my point of order.
The SPEAKER pro tempore. If no other Member wishes to be heard, the
Chair is prepared to rule.
The Chair will rely on the precedent of February 26, 2008. The
instructions in the motion to recommit address a totally unrelated
measure within the jurisdiction of committees not represented in the
underlying bill. The instructions are therefore nongermane and the
point of order is sustained. The motion is not in order.
Mr. HOEKSTRA. Mr. Speaker, I appeal the ruling of the Chair.
The SPEAKER pro tempore. The question is, Shall the decision of the
Chair stand as the judgment of the House?
Motion to Table Offered by Mr. Rangel
Mr. RANGEL. Mr. Speaker, I move to table the appeal.
The SPEAKER pro tempore. The question is on the motion to table.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. HOEKSTRA. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The vote was taken by electronic device, and there were--yeas 222,
nays 191, not voting 15, as follows:
[Roll No. 82]
YEAS--222
Abercrombie
Ackerman
Allen
Altmire
Andrews
Arcuri
Baca
Baird
Baldwin
Barrow
Bean
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boren
Boswell
Boucher
Boyd (FL)
Boyda (KS)
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carney
Castor
Chandler
Clarke
Clay
Cleaver
Clyburn
Cohen
Conyers
Cooper
Costa
Costello
Courtney
Cramer
Crowley
Cuellar
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
Davis, Lincoln
DeFazio
DeGette
DeLauro
Dicks
Dingell
Doggett
Donnelly
Doyle
Edwards
Ellison
Ellsworth
Emanuel
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Frank (MA)
Giffords
Gillibrand
Gonzalez
Gordon
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Hare
Harman
Hastings (FL)
Herseth Sandlin
Higgins
Hill
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson, E. B.
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick
Kind
Klein (FL)
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lynch
Mahoney (FL)
Maloney (NY)
Markey
Marshall
Matheson
Matsui
McCarthy (NY)
McCollum (MN)
McDermott
McGovern
McIntyre
McNerney
McNulty
Meek (FL)
Meeks (NY)
Melancon
Michaud
Miller (NC)
Miller, George
Mitchell
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Perlmutter
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Rangel
Richardson
Rodriguez
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (WA)
Snyder
Solis
Space
Spratt
Stupak
Sutton
Tanner
Tauscher
Taylor
Thompson (CA)
Thompson (MS)
Towns
Tsongas
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walz (MN)
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Welch (VT)
Wexler
Wilson (OH)
Wu
Wynn
Yarmuth
NAYS--191
Akin
Alexander
Bachmann
Bachus
Barrett (SC)
Bartlett (MD)
Barton (TX)
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono Mack
Boozman
Boustany
Brady (TX)
Broun (GA)
Brown (SC)
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Capito
Carter
Castle
Chabot
Coble
Cole (OK)
Conaway
Crenshaw
Cubin
Culberson
Davis (KY)
Davis, David
Davis, Tom
Deal (GA)
Dent
Diaz-Balart, L.
Doolittle
Drake
Dreier
Duncan
Ehlers
Emerson
English (PA)
Everett
Fallin
Feeney
Flake
Forbes
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gilchrest
Gingrey
Gohmert
Goode
Granger
Graves
Hall (TX)
Hastings (WA)
Hayes
Heller
Hensarling
Herger
Hobson
Hoekstra
Hulshof
Hunter
Inglis (SC)
Issa
Johnson (IL)
Johnson, Sam
Jones (NC)
Jordan
King (IA)
King (NY)
Kingston
Kirk
Kline (MN)
Knollenberg
Kuhl (NY)
LaHood
Lamborn
Lampson
Latham
LaTourette
Latta
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas
Mack
Manzullo
Marchant
McCarthy (CA)
McCaul (TX)
McCotter
McCrery
McHenry
McHugh
McKeon
McMorris Rodgers
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Moran (KS)
Murphy, Tim
Musgrave
Myrick
Neugebauer
Nunes
Paul
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Poe
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Ramstad
Regula
Rehberg
Reichert
Renzi
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roskam
Royce
Sali
Saxton
Schmidt
Sensenbrenner
Sessions
Shadegg
Shays
[[Page H1128]]
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Souder
Stearns
Sullivan
Tancredo
Terry
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walberg
Walden (OR)
Walsh (NY)
Wamp
Weldon (FL)
Weller
Westmoreland
Whitfield (KY)
Wilson (NM)
Wilson (SC)
Wittman (VA)
Wolf
Young (AK)
Young (FL)
NOT VOTING--15
Aderholt
Brown-Waite, Ginny
Delahunt
Diaz-Balart, M.
Ferguson
Goodlatte
Jones (OH)
Keller
Lungren, Daniel E.
Reyes
Ryan (WI)
Stark
Tierney
Udall (CO)
Woolsey
{time} 1527
Messrs. Davis of Alabama, Olver and Markey changed their vote from
``nay'' to ``yea.''
So the motion to table was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
Motion to Recommit Offered by Mr. English of Pennsylvania
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I have a motion to recommit
at the desk.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. ENGLISH of Pennsylvania. I am in its current form.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. English of Pennsylvania moves to recommit the bill H.R.
5351 to the Committee on Ways and Means with instructions to
report the same back to the House promptly with the following
amendments:
Strike subsection (b) of section 101 (relating to
modification of credit phaseout).
Strike section 203 (relating to modification of limitation
on automobile depreciation).
Strike subsection (c) of section 211 (relating to
coproduction of renewable diesel with petroleum feedstock).
Strike section 212 (relating to clarification that credits
for fuel are designed to provide an incentive for United
States production).
Strike section 221 (relating to extension of transportation
fringe benefit to bicycle commuters).
Strike section 222 (relating to restructuring of New York
Liberty Zone tax credits).
Strike section 231 (relating to qualified energy
conservation bonds).
Strike title III (relating to revenue provisions).
At the end of the bill, add the following new title:
TITLE V--REPEAL OF SUNSET ON MARRIAGE PENALTY RELIEF AND MODIFICATIONS
TO CHILD TAX CREDIT
SEC. 501. REPEAL OF SUNSET ON MARRIAGE PENALTY RELIEF AND
MODIFICATIONS TO CHILD TAX CREDIT.
Title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (relating to sunset of provisions
of such Act) shall not apply to--
(1) sections 301, 302, and 303 of such Act (relating to
marriage penalty relief), and
(2) section 201 of such Act (relating to modifications to
child tax credit).
Mr. ENGLISH of Pennsylvania (during the reading). Mr. Speaker, I
would seek unanimous consent to have the motion considered as read.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Pennsylvania?
There was no objection.
The SPEAKER pro tempore. The gentleman from Pennsylvania is
recognized for 5 minutes.
{time} 1530
Mr. ENGLISH of Pennsylvania. Mr. Speaker, when the Democrats took
control of this body, prices at the pump were about 30 percent lower.
The price on the spot market for a barrel of oil was $55, not $100 the
way it was last week. They promised to address the energy crisis that
has plagued the economic stability of this country and seek lower
prices at the pump for American consumers.
Unfortunately, the bill that stands before us today fails to
accomplish this goal and fails to meet the needs of the American
people. By taking away the very tax incentives that helped promote oil
and gas exploration here at home, this bill diminishes domestic
companies' opportunity and incentive to produce gasoline. This in turn
will raise energy costs for cash-strapped consumers.
While the majority party has come to believe that handing out new tax
credits and new bonding authority to Governors and mayors is a coherent
energy policy, there are many of us in this Chamber who are a little
skeptical on that point.
These dulcet-sounding bond programs lack effective safeguards to
ensure that the money from the newly created liberal slush fund would
go toward environmentally sound projects that will promote or improve
energy independence in America.
This Rube Goldberg device can't be seriously expected to help the
average American cope with today's high energy prices. What's more,
these things certainly do nothing to help consumers cope with
tomorrow's higher energy prices that the tax increases incorporated
into this bill will certainly generate.
This legislation will not help Americans who carpool to work and will
not help working moms driving their children to school. It will not
bring down home heating costs for families struggling to make ends meet
during this winter season, and it will not lower the cost of fertilizer
for farmers.
Mr. Speaker, our motion to recommit will help ease the burden of
economic hardship for many of these working families. This motion will
strike all of the tax increases from the bill at the time when the
economy needs more innovative solutions rather than simply stacking tax
increase upon tax increase with no help for working families. It will
strike the massive haircut that this bill gives to the most effective
renewable energy policy in this code, the wind credit. The bill risks
undermining the success of the wind credit, which has been the most
promising source of alternative energy. This motion to recommit
restores it to its full value.
This motion also rids the underlying bill of the egregiously wasteful
bond program that, in our view, is nothing more than a waste of
taxpayer dollars with no real potential oversight.
We also eliminate something that I know is dear to some of my friends
on the other side of the aisle, and that is the tax incentive for
people who ride their bikes to work, and I am sure I will hear about
this from my paperboy.
This motion represents a much more rational approach for moving
American energy policy forward. As we all know, the pro-growth tax
policies enacted by Republican Congresses have been a source of
fertility in the American economy, helping tens of millions of
taxpayers; and for that matter, millions who don't pay taxes but
receive refundable tax credits from the IRS every year.
While Washington Democrats have continued to demonize tax cuts for
only helping the rich, the facts speak for themselves.
This motion to recommit preserves two critical pro-growth policies
and prevents tax increases for many working Americans.
First, it would prevent the current $1,000 child tax credit from
being slashed in half in 2011 through Democrat inaction.
Second, it would prevent a substantial increase in the marriage tax
penalty which is set to occur in 2011. According to the Treasury
Department, allowing these tax incentives to sunset will force more
than 6 million additional taxpayers to become subject to the individual
income tax, and 116 million families will have an average tax increase
of more than $1,800.
Sunsetting the $1,000 child tax credit and keeping the marriage tax
penalty on the books will, without a doubt, subject millions of
families to being hit with serious tax increases.
What does the majority's inaction on these tax reforms mean? It means
higher taxes on low-income families with children and higher taxes on
married couples. What does passing the energy bill in front of us mean?
It means higher energy prices across the board and greater dependence
on foreign oil. What does passing the motion to recommit mean? It means
preventing tax increases.
Mr. Speaker, I urge all of my colleagues to vote in favor of the
motion to recommit and against this badly flawed underlying bill.
Parliamentary Inquiry
Mr. RANGEL. Before I speak, may I have a parliamentary inquiry?
The SPEAKER pro tempore. The gentleman may state his parliamentary
inquiry.
Mr. RANGEL. Notwithstanding the rhetoric of the sponsor, does this
motion to recommit kill the underlying bill?
The SPEAKER pro tempore. The gentleman has not stated a proper
parliamentary inquiry.
Mr. RANGEL. I am asking what would be the impact if this were to
pass. Would it kill the bill?
[[Page H1129]]
The SPEAKER pro tempore. As the Chair reaffirmed on November 15,
2007, at some subsequent time, the committee could meet and report the
bill back to the House.
Mr. RANGEL. Mr. Speaker, I rise in opposition to the motion.
The SPEAKER pro tempore. The gentleman from New York is recognized
for 5 minutes.
Mr. RANGEL. Mr. Speaker, I oppose the motion, and I am a little
embarrassed about an issue that came up during the debate on this bill
as related to the unity and the support for my great city, New York. I
oppose the motion for many reasons, but the prime one is that this
actually kills the bill and prevents us from taking a vote, but I don't
think that they seriously would want us to consider the provisions here
that they have in the motion.
But having said that, I am embarrassed that one of the issues that is
in the motion to recommit is that they not allow the City of New York,
with the support of the President of the United States, and have it
included in the President's budget, the opportunity to utilize tax-
exempt bonds, bonds that were given for the specific purpose of
assisting us in recovering from that tragic terrorist attack on
September 11.
After study by the administration and conversations which they had
with the Republican and Democrat mayor and Governor of our great State,
they reached the conclusion that the fair and equitable thing, because
of the impediment under which the original tax-exempt bond issue was
written, that it was inaccurately written and it would expire if this
provision wasn't there. Someone on the other side called it an earmark.
Well, if it is an earmark, it is a compassionate earmark that is
supported by the President of the United States and the Secretary of
the Treasury.
I just ask you, in case somebody of good conscience would ask, Why
would you do a thing like that in a motion to recommit? to give you the
opportunity to say, I just didn't know that it was in there.
So for all of those reasons, I ask that we defeat the motion to
recommit, Mr. Speaker.
Parliamentary Inquiries
Mr. WESTMORELAND. Mr. Speaker, parliamentary inquiry.
The SPEAKER pro tempore. The gentleman may state his parliamentary
inquiry.
Mr. WESTMORELAND. Mr. Speaker, is it not true that if indeed this
motion passed, the bill could be reported back from the respective
committee from which it came and that the bill could be reported back
as soon as tomorrow?
The SPEAKER pro tempore. The Chair will answer the gentleman that it
can be done at some subsequent time.
Mr. RANGEL. Mr. Speaker, parliamentary inquiry.
The SPEAKER pro tempore. The gentleman may state his parliamentary
inquiry.
Mr. RANGEL. If it was reported back, would it comply with the PAYGO
rules of the House of Representatives, Mr. Speaker?
The SPEAKER pro tempore. That would call for an advisory opinion.
Mr. FRANK of Massachusetts. Parliamentary inquiry, Mr. Speaker.
The SPEAKER pro tempore. The gentleman from Massachusetts may state
his parliamentary inquiry.
Mr. FRANK of Massachusetts. If the bill were to go back to committee
and be reported out, would it have to go to the Rules Committee and
would other rules that require layovers before the House can act apply?
The SPEAKER pro tempore. As the Chair stated on November 15, 2007, an
order of recommittal does not necessarily waive any rules, but the
Chair can not render an advisory opinion on what points of order might
lie.
Mr. FRANK of Massachusetts. Parliamentary inquiry.
The SPEAKER pro tempore. The gentleman will state his parliamentary
inquiry.
Mr. FRANK of Massachusetts. When you say this does not waive any
rules, would that include the rule of the House that requires this to
go to the Rules Committee with all of the appropriate times? Is that
one of the rules that would not be waived?
The SPEAKER pro tempore. Ordinary procedures will adhere.
Mr. WESTMORELAND. Further parliamentary inquiry, Mr. Speaker.
The SPEAKER pro tempore. The gentleman will state his parliamentary
inquiry.
Mr. WESTMORELAND. Isn't it true that the majority can make the rules
up as they go?
The SPEAKER pro tempore. The gentleman has not stated a proper
parliamentary inquiry.
Without objection, the previous question is ordered on the motion to
recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, on that I demand the yeas
and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, the Chair
will reduce to 5 minutes the minimum time for any electronic vote on
the question of passage.
The vote was taken by electronic device, and there were--yeas 197,
nays 222, not voting 9, as follows:
[Roll No. 83]
YEAS--197
Akin
Alexander
Altmire
Bachmann
Bachus
Barrett (SC)
Barrow
Bartlett (MD)
Barton (TX)
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono Mack
Boozman
Boustany
Brady (TX)
Broun (GA)
Brown (SC)
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Capito
Carter
Chabot
Coble
Cole (OK)
Conaway
Crenshaw
Cubin
Culberson
Davis (KY)
Davis, David
Davis, Tom
Deal (GA)
Dent
Diaz-Balart, L.
Donnelly
Doolittle
Drake
Dreier
Duncan
Ehlers
Emerson
English (PA)
Everett
Fallin
Feeney
Flake
Forbes
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Giffords
Gilchrest
Gingrey
Gohmert
Goode
Goodlatte
Granger
Graves
Hall (TX)
Hastings (WA)
Hayes
Heller
Hensarling
Herger
Hobson
Hoekstra
Hulshof
Hunter
Inglis (SC)
Issa
Johnson (IL)
Johnson, Sam
Jones (NC)
Jordan
King (IA)
King (NY)
Kingston
Kirk
Kline (MN)
Knollenberg
Kuhl (NY)
LaHood
Lamborn
Lampson
Latham
LaTourette
Latta
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas
Mack
Manzullo
Marchant
Marshall
Matheson
McCarthy (CA)
McCaul (TX)
McCotter
McCrery
McHenry
McHugh
McIntyre
McKeon
McMorris Rodgers
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Moran (KS)
Murphy, Tim
Musgrave
Myrick
Neugebauer
Nunes
Paul
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Poe
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Regula
Rehberg
Reichert
Renzi
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roskam
Royce
Ryan (WI)
Sali
Saxton
Schmidt
Sensenbrenner
Sessions
Shadegg
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Souder
Stearns
Sullivan
Tancredo
Terry
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walberg
Walden (OR)
Walsh (NY)
Wamp
Weldon (FL)
Weller
Westmoreland
Whitfield (KY)
Wilson (NM)
Wilson (SC)
Wittman (VA)
Wolf
Young (AK)
Young (FL)
NAYS--222
Abercrombie
Ackerman
Allen
Andrews
Arcuri
Baca
Baird
Baldwin
Bean
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boren
Boswell
Boucher
Boyd (FL)
Boyda (KS)
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carney
Castle
Castor
Chandler
Clarke
Clay
Cleaver
Clyburn
Cohen
Conyers
Cooper
Costa
Costello
Courtney
Cramer
Crowley
Cuellar
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
Davis, Lincoln
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Doyle
Edwards
Ellison
Ellsworth
Emanuel
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Frank (MA)
Gillibrand
Gonzalez
Gordon
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Hare
Harman
Hastings (FL)
Herseth Sandlin
Higgins
Hill
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson, E. B.
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick
Kind
Klein (FL)
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee
[[Page H1130]]
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lynch
Mahoney (FL)
Maloney (NY)
Markey
Matsui
McCarthy (NY)
McCollum (MN)
McDermott
McGovern
McNerney
McNulty
Meek (FL)
Meeks (NY)
Melancon
Michaud
Miller (NC)
Miller, George
Mitchell
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Perlmutter
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Ramstad
Rangel
Richardson
Rodriguez
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shays
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (WA)
Snyder
Solis
Space
Spratt
Stark
Stupak
Sutton
Tanner
Tauscher
Taylor
Thompson (CA)
Thompson (MS)
Tierney
Towns
Tsongas
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walz (MN)
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Welch (VT)
Wexler
Wilson (OH)
Wu
Wynn
Yarmuth
NOT VOTING--9
Aderholt
Brown-Waite, Ginny
Diaz-Balart, M.
Ferguson
Jones (OH)
Keller
Lungren, Daniel E.
Reyes
Woolsey
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). Members are advised this
is the 2-minute warning.
{time} 1604
Messrs. McDERMOTT, CARDOZA and LARSON of Connecticut changed their
vote from ``yea'' to ``nay.''
So the motion was rejected.
The result of the vote was announced as above recorded.
____________________