[Congressional Record Volume 154, Number 97 (Thursday, June 12, 2008)]
[Senate]
[Pages S5594-S5633]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Ms. COLLINS:
S. 3119. A bill to stimulate the economy by encouraging energy
efficiency, infrastructure and workforce investment, and homeownership
retention, and by amending the Internal Revenue Code of 1986 to provide
certain business tax relief and incentives, and for other purposes; to
the Committee on Finance.
Ms. COLLINS. Mr. President, I rise today to introduce the Economic
Recovery Act of 2008. I think it is evident our economy is struggling
to overcome the twin effects of record-high energy prices and a steep
downturn in the housing market.
Earlier this year, this Congress acted to provide rebates to
taxpayers to help them cope with the effects of the downturn in the
economy. The hope was also that the impact of these rebate checks would
be to stimulate the economy.
It is evident much more needs to be done, so the legislation I am
introducing today is aimed at reinvigorating our economy. It is my
proposal for a second economic stimulus package.
Over the course of the past several years, we have seen the price of
oil climb by more than 400 percent, from about $30 per barrel in 2003,
to more than $133 per barrel this morning. This escalation in energy
costs threatens to plunge our economy into a recession, and it is
imposing a tremendous hardship on middle-income and low-income
families, on our truckdrivers, our farmers, our fishermen, our schools,
virtually everyone.
Big factories and mills, as well as small businesses, have also been
harmed by high energy prices. In fact, a week ago we learned a mill in
Millinocket, ME, is going to be forced to shut down because it can no
longer afford the oil that is essential to the operations of that paper
mill.
We are working with Governor Baldacci to try to find alternatives.
But it is a prime example of the tremendously harmful impact high
energy prices are having on the economy of our State and indeed States
throughout the Nation.
Gasoline is already topping $4 a gallon 2 weeks into the summer
driving season. Maine families fear the cost of staying warm next
winter because home heating oil prices have reached record highs.
At the same time, the cost of diesel fuel is pushing some of
America's independent truckers to the brink of bankruptcy. Consider
this astonishing fact. In 1999, a Maine truck driver could go from
Augusta, ME, all the way to Albuquerque, NM, on $500 worth of diesel.
Today, $500 worth of diesel will not get that truck driver to Altoona,
PA. What a difference a few years makes.
Of course, with diesel prices continuing to increase, the problem is
only getting worse. Meanwhile, weaknesses in the housing market are
making it impossible for millions of Americans to get the financing
they need to stay in their homes when their adjustable rate mortgages
reset. Many of these families are being forced into foreclosure,
leaving behind vacant properties and creating a ripple effect that is
pulling down home values even further. This problem hurts communities
across the Nation, and it requires an effective Federal response.
The legislation I am introducing today would provide much-needed help
to Americans who are struggling with high energy costs and the weak
housing market. Let me outline the provisions of the economic stimulus
package I am proposing.
First, the Economic Recovery Act proposes a series of initiatives to
promote increased energy efficiency that would help consumers save
money on their energy bills, and help advance the goal of energy
independence for our Nation.
Second, the bill provides relief from truck weight regulations that
are injuring truckers in the State of Maine.
Third, it proposes a new program to finance transportation
infrastructure that is based on the model of the Build American Bonds
Bill.
Fourth, it would increase funding under the Workforce Investment Act
so we can help displaced and unemployed or underemployed workers.
Fifth, it proposes tax incentives designed to help America's small
businesses.
And, sixth, it would help to restore stability in the housing market
by expanding the FHA Secure Program, which would help homeowners
refinance mortgages that are in danger of foreclosure.
We have focused a lot on the housing problems and the turmoil in the
housing and financial markets. Indeed, that is an important factor in
the decline of our economy. As I have indicated, I think more needs to
be done. But I am convinced high energy prices are an even greater
cause of the economic downturn.
We must act to protect ourselves from rapid increases in oil prices
and in the long term achieve energy independence. One way to help
achieve both those goals is to encourage greater efficiency. My bill
would double the funding for the Department of Energy's Weatherization
Program, reaching $1.4 billion by the year 2010.
The bill would also provide $112 million each year for the valuable
Energy Star Program, which helps consumers choose energy-efficient
appliances, and would extend the renewable electricity tax credit
through 2011 and the residential investment tax credit for solar and
energy-efficient buildings through 2012.
My bill also includes a $500 credit to consumers who replace their
old wood-burning stove with a new, cleaner-burning model using wood or
wood pellets. This complements a proposal I introduced in February.
We must take action to address the impact rising diesel prices are
having on the trucking industry, which is struggling. The rapid
increase in the price of diesel is making it more difficult for our
Nation's truckers to stay on the road.
[[Page S5595]]
It is also increasing the cost of delivering goods that communities
throughout our country rely on. We can help trucks to operate more
efficiently if we ease Federal trucking regulations that prohibit
trucks that carry more than 80,000 pounds from traveling on the Federal
interstate system.
My bill includes a provision that would create a 2-year pilot project
that would permit trucks carrying up to 100,000 pounds, which is the
weight level that is permitted on Maine's highways, to travel on the
Interstate Highway system when diesel prices are at or above $3.50 a
gallon. The savings on fuel consumption will benefit the trucking
industry, the consumer, and our Nation at a time when we are looking
for ways to decrease our dependency on foreign oil.
Let me tell you, the current system simply makes no sense at all. In
Maine, the trucks that have 100,000 pounds of cargo are forced to leave
the Interstate in Augusta, ME, a road that is built to accommodate the
heaviest trucks, and instead are forced to go on secondary roads
through towns and villages, stopping at railroad crossings. That wastes
fuel, and is less safe than keeping them on the Interstate. The trip
takes much longer because they are on secondary and slower roads that
often are not the most direct routes to the destination. So that simply
makes no sense at all.
Any proposal to stimulate the economy should help to fund
transportation infrastructure projects. They are a proven means of
fostering economic growth and are a lasting investment; an investment
we need.
This past winter has been so difficult and so hard on the roads in
Maine. I do not think I have ever seen so many frost heaves and so much
wear and tear that the very difficult cold and snowy winter has had on
our roads and highways as I have seen this spring in Maine. The
legislation I have introduced calls for a $50 billion investment
through new transportation bonds for roads, bridges, transit, rail, and
waterways.
Now, I wish to give credit where credit is due. This proposal which I
put into the economic stimulus package was first introduced by Senator
Wyden. I was very pleased to be a cosponsor of his bill. I have
included our proposal as part of this broader package. Not only will
this funding serve as the catalyst for thousands of good jobs today, we
all know construction jobs are good jobs, but it also will improve our
transportation infrastructure, which is critical to economic
development over the long term.
This is an investment that makes sense. Many of these transportation
projects are ready to go. They only need the funding. We must also act
to provide assistance to those who have lost their jobs in this
economic downturn. Now, that means extending unemployment compensation
benefits. I hope we are going to do that soon. But in addition, we need
to invest in our workers.
In the last 4 months, we have seen 340,000 jobs lost across the
country. Today, we have more than 1.6 million additional unemployed
workers, compared to 2001; 800,000 more than a year ago. The national
unemployment rate has jumped to 5.5 percent. In my home State, 33,600
Mainers are looking for work.
In view of this increase in unemployment, it makes no sense
whatsoever that the President's budget actually proposes another cut in
the Workforce Investment Act. In fact, overall, the President's budget
would cut $1.5 billion from the Department of Labor's workforce
programs.
We must invest in America's workforce. Yet since fiscal year 2001,
funding for the Workforce Investment Act programs has been reduced by
nearly $1.7 billion in real terms. My bill would provide $1 billion in
additional Workforce Investment Act funding that would enable us to
train nearly 300,000 additional workers.
The bill would also increase funding for the Dislocated Workers
program and for Youth and Adult training programs. Support for job
training, investing in our workers is critical, but it is also
important that we provide relief to the job creators in our economy,
and that is our small businesses. The fact is, small businesses create
80 percent of the net new jobs in America. During economic downturns,
however, they struggle with cash flow and they must forgo investments
they need to grow and remain competitive. That is why I am proposing
some tax incentives to help small businesses.
First, we should make the Section 179 expensing limit for small
companies permanent so they can count on it. Second, we should renew a
provision of tax law that allows restaurant owners to depreciate their
equipment more quickly, over 15 years.
Finally, we must take action to steady the housing market. More than
50 million Americans hold mortgages at present and, fortunately, most
of them are current with their payments. But 7 million of these
mortgages are so-called subprime loans, and most of them are adjustable
rate mortgages that reset to higher, often unaffordable rates after
only 2 or 3 years of very low introductory rates. What we are finding
is a lot of first-time homeowners simply did not understand the risk
they were taking with subprime loans. As a result, approximately 1.3
million of these 7 million subprime mortgages are delinquent and could
soon be in foreclosure. This number is expected to rise as more
mortgages reach the reset date.
I am not interested in bailing out speculators, people who took a
gamble that housing prices were going to increase. What I am talking
about are homeowners who were peddled an unsuitable mortgage product.
We need to help them. Foreclosures inflict losses all around--on the
families who lose their homes; on the neighborhoods where values fall
as empty houses proliferate; on borrowers who face tighter requirements
and higher costs, as perceptions of lending risk increase; and on those
who work in the construction or real estate industry, dependent on a
strong housing market.
One source of help--and this is what I am proposing in my bill--would
be to bolster the FHASecure program administered by the Federal Housing
Administration. This program allows eligible homeowners to avoid
foreclosure by assisting them with refinancing so they can afford to
make their mortgage payments. My bill would expand this program to make
it easier for lenders to accept voluntary write-downs of distressed
mortgages and allow borrowers whose incomes are not sufficient to meet
the terms of their existing mortgages to refinance their homes on terms
they could afford. My bill also grants the FHA expanded authority to
adjust insurance premiums, depending on the individual borrower's risk
profile, to ensure the solvency of the FHA insurance fund. These
provisions could help FHA reach hundreds of thousands of additional
homeowners by the end of the year, and to do so without taxpayer
subsidies.
The legislation I am introducing today includes comprehensive
proposals that, taken together, would go a long way toward addressing
the two factors truly harming our economy--high energy prices and a
weakening housing market. I urge my colleagues to work together in a
bipartisan way, to look at the ideas that I and others have proposed so
we can work together on a second stimulus package to address these
concerns and to help restore and strengthen our Nation's economy.
______
By Mr. BAUCUS:
S. 3125. A bill to amend the Internal Revenue Code of 1986 to extend
certain expiring provisions, and for other purposes; to the Committee
on Finance.
Mr. BAUCUS. Mr. President, George Bernard Shaw once said: ``If all
economists were laid end to end, they would not reach a conclusion.''
Sometimes I feel the same about legislation to extend expiring tax
provisions. Sometimes it feels as though that process never reaches a
conclusion. Regrettably, Tuesday, the Senate failed to invoke cloture
on the motion to proceed to the House-passed renewable energy and tax
extenders bill.
Today, we must begin anew the march to a conclusion for the tax
extenders package.
Next week, the Senate will face a choice. We'll vote again on getting
to the tax extenders bill. We'll vote on allowing the Senate to get to
the substitute amendment, the text of which I introduce today. I think
that it's a pretty easy choice.
We need to decide whether we will develop new jobs and new
medications.
Or, we can continue to allow hedge fund managers to defer, without
limitation, their compensation for investing other people's money.
[[Page S5596]]
The choice is easy. We must pass this package of expiring provisions.
We must reach a conclusion.
Last month, the House passed its renewable energy and tax extenders
package, by a vote of 263 to 160. It came over to the Senate last week.
My Colleagues on the other side of the aisle objected to moving to the
House bill, for which I was prepared to offer a substitute amendment.
Today, I am introducing that substitute amendment as a stand-alone
bill. This extender package is fully paid-for. These offsets are
fiscally responsible. And these revenue-raising provisions are also
sound tax policy.
The first revenue-raising provision is an extension of the effective
date of the worldwide allocation of interest. The bill would delay
application of the new rule.
This section of the code is scheduled to take effect in 2009.
Many of the companies that will benefit from this provision told me
that they would rather have business extenders, including R&D, active
financing, and CFC look-through. They prefer those important extenders
to a 2009 application of the world wide allocation of interest.
These companies want a conclusion. And, they realize that to get a
conclusion, they, along with Congress, must be fiscally responsible and
pay for these provisions.
This provision allows Congress to be fiscally responsible and to pay
for the priorities of the business community.
The second revenue-raising provision addresses offshore deferred
compensation. This provision prevents hedge fund managers from
deferring income. This is not an increase in tax on hedge fund
managers. Rather, it is a change in the timing of when they have to pay
their income tax.
We need to make decisions about our priorities. Is the ability of
hedge fund managers to defer taxation of their compensation more
important than spurring research and development?
This bill has a solid energy-tax package. It has about $17 billion in
incentives for alternative energy, efficiency, and clean coal. This
package is important for our environment and energy security. And it's
important to facilitate the transition to a carbon-controlled economy.
I have been working to get the Congress to pass a good energy-tax
package for the better part of a year. At the beginning of last year,
the Finance Committee conducted several hearings. Last June, the
Committee marked up a bill to bolster investment in clean energy,
efficiency, and clean coal. Our bill--a roughly $30 billion package--
passed the Finance Committee with a 15-to-5 vote.
The bill included a 5-year extension of the credit for production of
renewable electricity. That credit enjoys strong bipartisan support.
It included 8-year extensions of credits for solar power. Solar power
still needs significant subsidies to compete with fossil-based energy.
It included $4 billion in new funds for clean coal tax credits. These
credits are needed to demonstrate that coal--which accounts for half of
this Nation's electricity--can be burned cleanly.
The bill included a new consumer credit for plug-in hybrids. Already
prototypes of plug-in hybrids can go a hundred miles on a gallon of
gas.
The bill included a new credit for cellulosic ethanol. Some experts
predict that cellulosic ethanol will become the fuel of the future.
Last June's Finance Committee package was largely financed by
reducing tax benefits for oil and gas companies. We proposed repealing
the manufacturing deduction for oil and gas firms. That raised about
$9.4 billion for the package.
We proposed a tax on production in the Gulf of Mexico, with credit
for the tax provided to companies paying royalties on that production.
This raised more than $10 billion.
We also proposed tightening the rules on tax credits received by oil
and gas companies that pay taxes to overseas jurisdictions. This
proposal raised about $3.2 billion.
Taken together, these tax changes would have financed about two-
thirds of the roughly $30 billion energy-tax package. We argued that
the oil and gas offsets were justified, in part because of record-high
oil prices. Recall that in 2005, President Bush said, ``With $55 (a
barrel) oil we don't need incentives to oil and gas companies to
explore.''
When the Finance Committee passed this energy-tax bill, oil traded at
$69 a barrel.
After moving the bill through the Finance Committee, Senator Grassley
and I offered that measure on the Senate floor. We offered it as an
amendment to the energy policy bill.
But our amendment got 57 votes on the floor, 3 shy of the 60 votes
that we needed to break a filibuster.
The objections, almost entirely from the other side, were that the
bill would increase energy prices. They argued that our bill
unreasonably targeted the oil and gas industry. They argued that the
package was simply too big.
So we went back to the drawing board. In negotiations with the House,
we cut the size of the energy package by about a third. We dropped the
$10 billion tax on Gulf production. We retained repeal of the
manufacturing deduction for large oil and gas firms, and the provision
to tighten loopholes on foreign tax credits for oil and gas companies.
And we also included nearly $7 billion in offsets from President Bush's
own budget proposal.
That's right. About one-third of the package that came to the Senate
floor in December was offset by items taken directly from proposals
offered by President Bush in his 2008 budget.
Even though we cut the package by about a third, the bill still
maintained meaningful support for alternative energy and efficiency. It
included extension of the renewable energy production credit. It
included long-term extensions of credits for solar power. It included
$2 billion for clean-coal projects. And it included a new consumer
incentive for plug-in hybrid cars.
It was not as ambitious as the June 2007 Finance Committee bill. But
the compromise product that came to the Senate floor in December was a
very good package.
Nonetheless, the President issued a veto threat on the bill. And 40
Senators followed his lead. On December 12, 2007, the compromise
package failed in the Senate by a vote of 59 to 40, just one shy of 60
needed to break yet another filibuster.
Faced with the choice of maintaining tax breaks for oil and gas
companies and investing in a fledgling alternative energy industry, the
Senate minority chose to protect the oil and gas companies.
Faced with the choice of investing in green-collar jobs or
maintaining the status quo on energy, the minority chose the status
quo.
Remember the President's assertion that tax breaks were not needed
when oil traded at $55 a barrel? Well, when the Senate voted on the
energy package on December 13, 2007, oil cost more than $92 a barrel.
So where are we now? Vital new energy-tax provisions--such as
incentives for plug-in hybrid vehicles--have not become law. Existing
incentives--such as those for energy-efficient appliances--have lapsed.
And in less than 7 months, many others will lapse, including the
renewable energy production credit, solar credits, incentives for
efficient buildings, and credits for biofuels.
So what do we do about it? To paraphrase Thomas Edison, ``I have not
failed. I've just found two ways that won't work.''
I hope that this attempt will work. The bill that I introduce today,
and on which I hope the Senate can vote next week, includes a robust
energy package. It is very similar to that negotiated with the House
last year. It is very similar to the one that got 59 votes in the
Senate.
Like last year's bills, this package includes long-term extensions of
renewable energy credits. It includes major funding for clean coal
projects. It includes a new incentive for plug-in hybrids. And it
includes extensions of vital incentives to promote energy efficiency.
This $17 billion energy package is slightly smaller than last
December's. But it's still critically important to our Nation's energy
future.
There is a key difference between this year's package and last
year's: the offsets. In response to criticisms of the oil and gas
offsets and the President's veto threat, we have dropped proposals to
repeal oil and gas tax breaks.
[[Page S5597]]
Instead, we have included two offsets that have nothing to do with
oil and gas. In fact, they have nothing to do with energy. They are
simply good policy. And they have broad support.
The bill also extends provisions that offer tax benefits to
individuals and businesses. One such provision is the teacher expense
deduction.
Our schools are in desperate need of repair. Our students don't have
the books or supplies they need. Some teachers have taken it upon
themselves to use money from their own pockets to provide classroom
supplies for their students.
In 2005 alone, more than 3.4 million families took the teacher
expense deduction. The average salary for a teacher is about $38,000.
This says a lot about this profession's dedication to educating
America's youth. These teachers work diligently to make sure that
America stays competitive in this global economy by educating our
children. And yet they pay out of their own pockets for supplies. The
least we can do is to help share the cost.
Another provision that is important to American families is the
qualified tuition deduction. Tuition costs have long been increasing
faster than inflation. Parents and students worry about how to cover
these escalating costs.
4.4 million families took the qualified tuition deduction in 2005.
But the provision expired at the end of 2007.
The bill that I introduce today has other important benefits.
Millions of families get tax relief from these expiring provisions and
will suffer without this legislation.
Businesses will also suffer if Congress does not act. Many of the
business provisions contained in the extenders package are crucial in
allowing U.S.-based multinational corporations to compete effectively
in a global economy.
America accounts for a third of the world's spending on scientific
research and development, ranking first among all countries. This is
impressive. But relative to the size of our economy, America is in
sixth place. And the trends show that maintaining American leadership
in the future depends on increased commitment to research and science.
Asia has recognized this. Spending on research and development has
increased by 140 percent in China, Korea, and Taiwan. In America, it
has increased by only 34 percent.
Asia's commitment is already paying off. More than a hundred Fortune
500 companies have opened research centers in India and China. I have
visited some of them. I was impressed with the level of skill of the
workers I met there.
There are workers in other countries who seek coveted research
positions. Ireland, Poland, and other European countries would like
American corporations to shift their R&D operations to their countries.
Some of these countries offer incredible tax and non-tax benefits.
Yet our R&D tax credit expired on December 31. American corporations
are at a competitive disadvantage. They are unsure if they will be able
to obtain the benefit of the credit this year. And they need to plan
for the future.
We need to pass an extenders package that allows American companies
to take the credit as soon as possible.
American businesses need the R&D tax credit to compete in a global
economy. The R&D tax credit gives companies an incentive to begin or
continue research here in America. These jobs pay well and result in
the creation of intellectual property.
We want these jobs. And we want the intellectual property to be
created in our country.
American financial services companies successfully compete in world
financial markets. We need to make sure, however, that the U.S. tax
rules do not change that.
This legislation will extend the active financing exception to
Subpart F. This provision preserves the international competitiveness
of American-based financial services companies. This provision also
contains appropriate safeguards to ensure that only truly active
businesses benefit.
The active financing exception applies to active financial service
income earned abroad by American financial services companies or
American manufacturing firms with a financial services operation. The
exception makes sure that this income is not subject to U.S. tax until
that income is brought home to the U.S.
This provision will put the American financial services industry on
an equal footing with foreign-based competitors who are not taxed on
active financial services income.
There are several other provisions in this bill that encourage
businesses to invest in this country. There are provisions that will
help American businesses compete in a global economy. We must extend
these provisions as soon as possible.
Finally, my bill will provide an AMT patch for 2008. The provision is
not offset, because we recognize the reality of the budget constraints
we face. We need to get this done. This is an important provision to
the American families.
The patch will hold the number of people subject to the AMT at 4.2
million. As a result, over 20 million taxpayers will avoid the AMT next
year.
The choice is easy. We should continue to support teachers, families
and schools. We should continue to support the creation of jobs and
intellectual property. That is why I urge my Colleagues to support this
fully offset package.
Which is more important, Mr. President? 11 million families who take
the state and local tax deduction, or a few hundred hedge fund
managers?
Which is more important? 3.5 million teachers who pay out of their
pocket for school supplies, or a few hundred hedge fund managers?
4.5 million families who struggle to pay for college tuition, or a
few hundred hedge fund managers?
It is time to reach a conclusion. You can lay all the extenders bills
end to end. But I submit that the best conclusion is the extenders
package that I introduce today and that the Senate will try to get to
next week. I urge my Colleagues to support the motion to invoke cloture
on the motion to proceed.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3125
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the ``Energy
Independence and Tax Relief Act of 2008''.
(b) Reference.--Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code of
1986.
(c) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title, etc.
TITLE I--ENERGY TAX INCENTIVES
Subtitle A--Energy Production Incentives
PART I--Renewable Energy Incentives
Sec. 101. Renewable energy credit.
Sec. 102. Production credit for electricity produced from marine
renewables.
Sec. 103. Energy credit.
Sec. 104. Credit for residential energy efficient property.
Sec. 105. Special rule to implement FERC and State electric
restructuring policy.
Sec. 106. New clean renewable energy bonds.
PART II--Carbon Mitigation Provisions
Sec. 111. Expansion and modification of advanced coal project
investment credit.
Sec. 112. Expansion and modification of coal gasification investment
credit.
Sec. 113. Temporary increase in coal excise tax.
Sec. 114. Special rules for refund of the coal excise tax to certain
coal producers and exporters.
Sec. 115. Carbon audit of the tax code.
Subtitle B--Transportation and Domestic Fuel Security Provisions
Sec. 121. Inclusion of cellulosic biofuel in bonus depreciation for
biomass ethanol plant property.
Sec. 122. Credits for biodiesel and renewable diesel.
Sec. 123. Clarification that credits for fuel are designed to provide
an incentive for United States production.
Sec. 124. Credit for new qualified plug-in electric drive motor
vehicles.
Sec. 125. Exclusion from heavy truck tax for idling reduction units and
advanced insulation.
Sec. 126. Restructuring of New York Liberty Zone tax credits.
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Sec. 127. Transportation fringe benefit to bicycle commuters.
Sec. 128. Alternative fuel vehicle refueling property credit.
Subtitle C--Energy Conservation and Efficiency Provisions
Sec. 141. Qualified energy conservation bonds.
Sec. 142. Credit for nonbusiness energy property.
Sec. 143. Energy efficient commercial buildings deduction.
Sec. 144. Modifications of energy efficient appliance credit for
appliances produced after 2007.
Sec. 145. Accelerated recovery period for depreciation of smart meters
and smart grid systems.
Sec. 146. Qualified green building and sustainable design projects.
TITLE II--ONE-YEAR EXTENSION OF TEMPORARY PROVISIONS
Subtitle A--Alternative Minimum Tax
Sec. 201. Extension of alternative minimum tax relief for nonrefundable
personal credits.
Sec. 202. Extension of increased alternative minimum tax exemption
amount.
Sec. 203. Increase of AMT refundable credit amount for individuals with
long-term unused credits for prior year minimum tax
liability, etc.
Subtitle B--Extensions Primarily Affecting Individuals
Sec. 211. Deduction for State and local sales taxes.
Sec. 212. Deduction of qualified tuition and related expenses.
Sec. 213. Treatment of certain dividends of regulated investment
companies.
Sec. 214. Tax-free distributions from individual retirement plans for
charitable purposes.
Sec. 215. Deduction for certain expenses of elementary and secondary
school teachers.
Sec. 216. Stock in RIC for purposes of determining estates of
nonresidents not citizens.
Sec. 217. Qualified investment entities.
Sec. 218. Exclusion of amounts received under qualified group legal
services plans.
Subtitle C--Extensions Primarily Affecting Businesses
Sec. 221. Extension and modification of research credit.
Sec. 222. Indian employment credit.
Sec. 223. New markets tax credit.
Sec. 224. Railroad track maintenance.
Sec. 225. Extension of mine rescue team training credit.
Sec. 226. Extension of 15-year straight-line cost recovery for
qualified leasehold improvements and qualified restaurant
improvements; 15-year straight-line cost recovery for
certain improvements to retail space.
Sec. 227. Seven-year cost recovery period for motorsports racing track
facility.
Sec. 228. Accelerated depreciation for business property on Indian
reservation.
Sec. 229. Extension of election to expense advanced mine safety
equipment.
Sec. 230. Expensing of environmental remediation costs.
Sec. 231. Deduction allowable with respect to income attributable to
domestic production activities in Puerto Rico.
Sec. 232. Modification of tax treatment of certain payments to
controlling exempt organizations.
Sec. 233. Qualified zone academy bonds.
Sec. 234. Tax incentives for investment in the District of Columbia.
Sec. 235. Economic development credit for American Samoa.
Sec. 236. Enhanced charitable deduction for contributions of food
inventory.
Sec. 237. Enhanced charitable deduction for contributions of book
inventory to public schools.
Sec. 238. Enhanced deduction for qualified computer contributions.
Sec. 239. Basis adjustment to stock of S corporations making charitable
contributions of property.
Sec. 240. Work opportunity tax credit for Hurricane Katrina employees.
Sec. 241. Subpart F exception for active financing income.
Sec. 242. Look-thru rule for related controlled foreign corporations.
Sec. 243. Expensing for certain qualified film and television
productions.
Sec. 244. Extension and modification of duty suspension on wool
products; wool research fund; wool duty refunds.
Subtitle D--Other Extensions
Sec. 251. Authority to disclose information related to terrorist
activities made permanent.
Sec. 252. Authority for undercover operations made permanent.
Sec. 253. Increase in limit on cover over of rum excise tax to Puerto
Rico and the Virgin Islands.
TITLE III--ADDITIONAL RELIEF
Subtitle A--Individual Tax Relief
Sec. 301. Additional standard deduction for real property taxes for
nonitemizers.
Sec. 302. $10,000 income threshold used to calculate refundable portion
of child tax credit.
Sec. 303. Income averaging for amounts received in connection with the
Exxon Valdez litigation.
Subtitle B--Business Related Provisions
Sec. 311. Uniform treatment of attorney-advanced expenses and court
costs in contingency fee cases.
Sec. 312. Provisions related to film and television productions.
Sec. 313. Modification of rate of excise tax on certain wooden arrows
designed for use by children.
Subtitle C--Modification of Penalty on Understatement of Taxpayer's
Liability by Tax Return Preparer
Sec. 321. Modification of penalty on understatement of taxpayer's
liability by tax return preparer.
Subtitle D--Extension and Expansion of Certain GO Zone Incentives
Sec. 331. Certain GO Zone incentives.
Subtitle E--Other Provisions
Sec. 341. Secure rural schools and community self-determination
program.
Sec. 342. Clarification of uniform definition of child.
TITLE IV--REVENUE PROVISIONS
Sec. 401. Nonqualified deferred compensation from certain tax
indifferent parties.
Sec. 402. Delay in application of worldwide allocation of interest.
Sec. 403. Time for payment of corporate estimated taxes.
TITLE I--ENERGY TAX INCENTIVES
Subtitle A--Energy Production Incentives
PART I--RENEWABLE ENERGY INCENTIVES
SEC. 101. RENEWABLE ENERGY CREDIT.
(a) Extension of Credit.--
(1) 1-year extension for wind facilities.--Paragraph (1) of
section 45(d) is amended by striking ``January 1, 2009'' and
inserting ``January 1, 2010''.
(2) 3-year extension for certain other facilities.--Each of
the following provisions of section 45(d) is amended by
striking ``January 1, 2009'' and inserting ``January 1,
2012'':
(A) Clauses (i) and (ii) of paragraph (2)(A).
(B) Clauses (i)(I) and (ii) of paragraph (3)(A).
(C) Paragraph (4).
(D) Paragraph (5).
(E) Paragraph (6).
(F) Paragraph (7).
(G) 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 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
[[Page S5599]]
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) Sales of Net Electricity to Regulated Public Utilities
Treated as Sales to Unrelated Persons.--Paragraph (4) of
section 45(e) is amended by adding at the end the following
new sentence: ``The net amount of electricity sold by any
taxpayer to a regulated public utility (as defined in section
7701(a)(33)) shall be treated as sold to an unrelated
person.''.
(f) Modification of Rules for Hydropower Production.--
Subparagraph (C) of section 45(c)(8) is amended to read as
follows:
``(C) Nonhydroelectric dam.--For purposes of subparagraph
(A), a facility is described in this subparagraph if--
``(i) the hydroelectric project installed on the
nonhydroelectric dam is licensed by the Federal Energy
Regulatory Commission and meets all other applicable
environmental, licensing, and regulatory requirements,
``(ii) the nonhydroelectric dam was placed in service
before the date of the enactment of this paragraph and
operated for flood control, navigation, or water supply
purposes and did not produce hydroelectric power on the date
of the enactment of this paragraph, and
``(iii) the hydroelectric project is operated so that the
water surface elevation at any given location and time that
would have occurred in the absence of the hydroelectric
project is maintained, subject to any license requirements
imposed under applicable law that change the water surface
elevation for the purpose of improving environmental quality
of the affected waterway.
The Secretary, in consultation with the Federal Energy
Regulatory Commission, shall certify if a hydroelectric
project licensed at a nonhydroelectric dam meets the criteria
in clause (iii). Nothing in this section shall affect the
standards under which the Federal Energy Regulatory
Commission issues licenses for and regulates hydropower
projects under part I of the Federal Power Act.''.
(g) 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; sales to related
regulated public utilities.--The amendments made by
subsections (c) and (e) 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) 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, 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. ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) are each amended by striking
``January 1, 2009'' and inserting ``January 1, 2015''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2014''.
(3) Microturbine property.--Subparagraph (E) of section
48(c)(2) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2014''.
(b) Allowance of Energy Credit Against Alternative Minimum
Tax.--Subparagraph (B) of section 38(c)(4) is amended by
striking ``and'' at the end of clause (iii), by redesignating
clause (iv) as clause (v), and by inserting after clause
(iii) the following new clause:
[[Page S5600]]
``(iv) the credit determined under section 46 to the extent
that such credit is attributable to the energy credit
determined under section 48, and''.
(c) Energy Credit for Combined Heat and Power System
Property.--
(1) In general.--Section 48(a)(3)(A) (defining energy
property) is amended by striking ``or'' at the end of clause
(iii), by inserting ``or'' at the end of clause (iv), and by
adding at the end the following new clause:
``(v) combined heat and power system property,''.
(2) Combined heat and power system property.--Section 48 is
amended by adding at the end the following new subsection:
``(d) Combined Heat and Power System Property.--For
purposes of subsection (a)(3)(A)(v)--
``(1) Combined heat and power system property.--The term
`combined heat and power system property' means property
comprising a system--
``(A) which uses the same energy source for the
simultaneous or sequential generation of electrical power,
mechanical shaft power, or both, in combination with the
generation of steam or other forms of useful thermal energy
(including heating and cooling applications),
``(B) which produces--
``(i) at least 20 percent of its total useful energy in the
form of thermal energy which is not used to produce
electrical or mechanical power (or combination thereof), and
``(ii) at least 20 percent of its total useful energy in
the form of electrical or mechanical power (or combination
thereof),
``(C) the energy efficiency percentage of which exceeds 60
percent, and
``(D) which is placed in service before January 1, 2015.
``(2) Limitation.--
``(A) In general.--In the case of combined heat and power
system property with an electrical capacity in excess of the
applicable capacity placed in service during the taxable
year, the credit under subsection (a)(1) (determined without
regard to this paragraph) for such year shall be equal to the
amount which bears the same ratio to such credit as the
applicable capacity bears to the capacity of such property.
``(B) Applicable capacity.--For purposes of subparagraph
(A), the term `applicable capacity' means 15 megawatts or a
mechanical energy capacity of more than 20,000 horsepower or
an equivalent combination of electrical and mechanical energy
capacities.
``(C) Maximum capacity.--The term `combined heat and power
system property' shall not include any property comprising a
system if such system has a capacity in excess of 50
megawatts or a mechanical energy capacity in excess of 67,000
horsepower or an equivalent combination of electrical and
mechanical energy capacities.
``(3) Special rules.--
``(A) Energy efficiency percentage.--For purposes of this
subsection, the energy efficiency percentage of a system is
the fraction--
``(i) the numerator of which is the total useful
electrical, thermal, and mechanical power produced by the
system at normal operating rates, and expected to be consumed
in its normal application, and
``(ii) the denominator of which is the lower heating value
of the fuel sources for the system.
``(B) Determinations made on btu basis.--The energy
efficiency percentage and the percentages under paragraph
(1)(B) shall be determined on a Btu basis.
``(C) Input and output property not included.--The term
`combined heat and power system property' does not include
property used to transport the energy source to the facility
or to distribute energy produced by the facility.
``(4) Systems using biomass.--If a system is designed to
use biomass (within the meaning of paragraphs (2) and (3) of
section 45(c) without regard to the last sentence of
paragraph (3)(A)) for at least 90 percent of the energy
source--
``(A) paragraph (1)(C) shall not apply, but
``(B) the amount of credit determined under subsection (a)
with respect to such system shall not exceed the amount which
bears the same ratio to such amount of credit (determined
without regard to this paragraph) as the energy efficiency
percentage of such system bears to 60 percent.''.
(d) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking
``$500'' and inserting ``$1,500''.
(e) Public Utility Property Taken Into Account.--
(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).
(f) 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) Combined heat and power and fuel cell property.--The
amendments made by subsections (c) and (d) 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 utility property.--The amendments made by
subsection (e) 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. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) 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) 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) 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) 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) 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) 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) 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), 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), 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), 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
[[Page S5601]]
that the expenditure for such equipment is made.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A), 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.
SEC. 105. 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) 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:
``(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. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:
``SEC. 54C. 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
governmental bodies, 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 33\1/3\ percent thereof may be
allocated to qualified projects of public power providers,
``(B) not more than 33\1/3\ percent thereof may be
allocated to qualified projects of governmental bodies, and
``(C) not more than 33\1/3\ 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 paragraph
(2)(A) bears to the cost of all such projects.
``(B) Allocation among governmental bodies and cooperative
electric companies.--The Secretary shall make allocations of
the amount of the national new clean renewable energy bond
limitation described in paragraphs (2)(B) and (2)(C) among
qualified projects of governmental bodies and cooperative
electric companies, respectively, 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, a governmental body,
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) Governmental body.--The term `governmental body'
means any State or Indian tribal government, or any political
subdivision thereof.
``(4) 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).
``(5) 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.
``(6) Qualified issuer.--The term `qualified issuer' means
a public power provider, a cooperative electric company, a
governmental body, 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) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) is amended to read as
follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a qualified forestry conservation bond, or
``(B) a new clean renewable energy 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) 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 qualified forestry conservation
bond, a purpose specified in section 54B(e), and
[[Page S5602]]
``(ii) in the case of a new clean renewable energy 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 clean renewable energy bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
PART II--CARBON MITIGATION PROVISIONS
SEC. 111. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT
INVESTMENT CREDIT.
(a) Modification of Credit Amount.--Section 48A(a) is
amended by striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(3) 30 percent of the qualified investment for such
taxable year in the case of projects described in clause
(iii) of subsection (d)(3)(B).''.
(b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A)
is amended by striking ``$1,300,000,000'' and inserting
``$2,550,000,000''.
(c) Authorization of Additional Projects.--
(1) In general.--Subparagraph (B) of section 48A(d)(3) is
amended to read as follows:
``(B) Particular projects.--Of the dollar amount in
subparagraph (A), the Secretary is authorized to certify--
``(i) $800,000,000 for integrated gasification combined
cycle projects the application for which is submitted during
the period described in paragraph (2)(A)(i),
``(ii) $500,000,000 for projects which use other advanced
coal-based generation technologies the application for which
is submitted during the period described in paragraph
(2)(A)(i), and
``(iii) $1,250,000,000 for advanced coal-based generation
technology projects the application for which is submitted
during the period described in paragraph (2)(A)(ii).''.
(2) Application period for additional projects.--
Subparagraph (A) of section 48A(d)(2) is amended to read as
follows:
``(A) Application period.--Each applicant for certification
under this paragraph shall submit an application meeting the
requirements of subparagraph (B). An applicant may only
submit an application--
``(i) for an allocation from the dollar amount specified in
clause (i) or (ii) of paragraph (3)(B) during the 3-year
period beginning on the date the Secretary establishes the
program under paragraph (1), and
``(ii) for an allocation from the dollar amount specified
in paragraph (3)(B)(iii) during the 3-year period beginning
at the earlier of the termination of the period described in
clause (i) or the date prescribed by the Secretary.''.
(3) Capture and sequestration of carbon dioxide emissions
requirement.--
(A) In general.--Section 48A(e)(1) is amended by striking
``and'' at the end of subparagraph (E), by striking the
period at the end of subparagraph (F) and inserting ``;
and'', and by adding at the end the following new
subparagraph:
``(G) in the case of any project the application for which
is submitted during the period described in subsection
(d)(2)(A)(ii), the project includes equipment which separates
and sequesters at least 65 percent (70 percent in the case of
an application for reallocated credits under subsection
(d)(4)) of such project's total carbon dioxide emissions.''.
(B) Highest priority for projects which sequester carbon
dioxide emissions.--Section 48A(e)(3) is amended by striking
``and'' at the end of subparagraph (A)(iii), by striking the
period at the end of subparagraph (B)(iii) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(C) give highest priority to projects with the greatest
separation and sequestration percentage of total carbon
dioxide emissions.''.
(C) Recapture of credit for failure to sequester.--Section
48A is amended by adding at the end the following new
subsection:
``(i) Recapture of Credit for Failure To Sequester.--The
Secretary shall provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any
project which fails to attain or maintain the separation and
sequestration requirements of subsection (e)(1)(G).''.
(4) Additional priority for research partnerships.--Section
48A(e)(3)(B), as amended by paragraph (3)(B), is amended--
(A) by striking ``and'' at the end of clause (ii),
(B) by redesignating clause (iii) as clause (iv), and
(C) by inserting after clause (ii) the following new
clause:
``(iii) applicant participants who have a research
partnership with an eligible educational institution (as
defined in section 529(e)(5)), and''.
(5) Clerical amendment.--Section 48A(e)(3) is amended by
striking ``integrated gasification combined cycle'' in the
heading and inserting ``certain''.
(d) Disclosure of Allocations.--Section 48A(d) is amended
by adding at the end the following new paragraph:
``(5) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection or section
48B(d), publicly disclose the identity of the applicant and
the amount of the credit certified with respect to such
applicant.''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to credits the application for which is submitted during the
period described in section 48A(d)(2)(A)(ii) of the Internal
Revenue Code of 1986 and which are allocated or reallocated
after the date of the enactment of this Act.
(2) Disclosure of allocations.--The amendment made by
subsection (d) shall apply to certifications made after the
date of the enactment of this Act.
(3) Clerical amendment.--The amendment made by subsection
(c)(5) shall take effect as if included in the amendment made
by section 1307(b) of the Energy Tax Incentives Act of 2005.
SEC. 112. EXPANSION AND MODIFICATION OF COAL GASIFICATION
INVESTMENT CREDIT.
(a) Modification of Credit Amount.--Section 48B(a) is
amended by inserting ``(30 percent in the case of credits
allocated under subsection (d)(1)(B))'' after ``20 percent''.
(b) Expansion of Aggregate Credits.--Section 48B(d)(1) is
amended by striking ``shall not exceed $350,000,000'' and all
that follows and inserting ``shall not exceed--
``(A) $350,000,000, plus
``(B) $250,000,000 for qualifying gasification projects
that include equipment which separates and sequesters at
least 75 percent of such project's total carbon dioxide
emissions.''.
(c) Recapture of Credit for Failure To Sequester.--Section
48B is amended by adding at the end the following new
subsection:
``(f) Recapture of Credit for Failure To Sequester.--The
Secretary shall provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any
project which fails to attain or maintain the separation and
sequestration requirements for such project under subsection
(d)(1).''.
(d) Selection Priorities.--Section 48B(d) is amended by
adding at the end the following new paragraph:
``(4) Selection priorities.--In determining which
qualifying gasification projects to certify under this
section, the Secretary shall--
``(A) give highest priority to projects with the greatest
separation and sequestration percentage of total carbon
dioxide emissions, and
``(B) give high priority to applicant participants who have
a research partnership with an eligible educational
institution (as defined in section 529(e)(5)).''.
(e) Effective Date.--The amendments made by this section
shall apply to credits described in section 48B(d)(1)(B) of
the Internal Revenue Code of 1986 which are allocated or
reallocated after the date of the enactment of this Act.
SEC. 113. TEMPORARY INCREASE IN COAL EXCISE TAX.
Paragraph (2) of section 4121(e) is amended--
(1) by striking ``January 1, 2014'' in subparagraph (A) and
inserting ``December 31, 2018'', and
(2) by striking ``January 1 after 1981'' in subparagraph
(B) and inserting ``December 31 after 2007''.
SEC. 114. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO
CERTAIN COAL PRODUCERS AND EXPORTERS.
(a) Refund.--
(1) Coal producers.--
(A) In general.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, if--
(i) a coal producer establishes that such coal producer, or
a party related to such coal producer, exported coal produced
by such coal producer to a foreign country or shipped coal
produced by such coal producer to a possession of the United
States, or caused such coal to be exported or shipped, the
export or shipment of which was other than through an
exporter who meets the requirements of paragraph (2),
(ii) such coal producer filed an excise tax return on or
after October 1, 1990, and on or before the date of the
enactment of this Act, and
(iii) such coal producer files a claim for refund with the
Secretary not later than the close of the 30-day period
beginning on the date of the enactment of this Act,
then the Secretary shall pay to such coal producer an amount
equal to the tax paid under section 4121 of such Code on such
coal exported or shipped by the coal producer or a party
related to such coal producer, or caused by the coal producer
or a party related to such coal producer to be exported or
shipped.
(B) Special rules for certain taxpayers.--For purposes of
this section--
(i) In general.--If a coal producer or a party related to a
coal producer has received a judgment described in clause
(iii), such coal producer shall be deemed to have established
the export of coal to a foreign country or shipment of coal
to a possession of the United States under subparagraph
(A)(i).
(ii) Amount of payment.--If a taxpayer described in clause
(i) is entitled to a payment under subparagraph (A), the
amount of such payment shall be reduced by any amount paid
pursuant to the judgment described in clause (iii).
(iii) Judgment described.--A judgment is described in this
subparagraph if such judgment--
(I) is made by a court of competent jurisdiction within the
United States,
[[Page S5603]]
(II) relates to the constitutionality of any tax paid on
exported coal under section 4121 of the Internal Revenue Code
of 1986, and
(III) is in favor of the coal producer or the party related
to the coal producer.
(2) Exporters.--Notwithstanding subsections (a)(1) and (c)
of section 6416 and section 6511 of the Internal Revenue Code
of 1986, and a judgment described in paragraph (1)(B)(iii) of
this subsection, if--
(A) an exporter establishes that such exporter exported
coal to a foreign country or shipped coal to a possession of
the United States, or caused such coal to be so exported or
shipped,
(B) such exporter filed a tax return on or after October 1,
1990, and on or before the date of the enactment of this Act,
and
(C) such exporter files a claim for refund with the
Secretary not later than the close of the 30-day period
beginning on the date of the enactment of this Act,
then the Secretary shall pay to such exporter an amount equal
to $0.825 per ton of such coal exported by the exporter or
caused to be exported or shipped, or caused to be exported or
shipped, by the exporter.
(b) Limitations.--Subsection (a) shall not apply with
respect to exported coal if a settlement with the Federal
Government has been made with and accepted by, the coal
producer, a party related to such coal producer, or the
exporter, of such coal, as of the date that the claim is
filed under this section with respect to such exported coal.
For purposes of this subsection, the term ``settlement with
the Federal Government'' shall not include any settlement or
stipulation entered into as of the date of the enactment of
this Act, the terms of which contemplate a judgment
concerning which any party has reserved the right to file an
appeal, or has filed an appeal.
(c) Subsequent Refund Prohibited.--No refund shall be made
under this section to the extent that a credit or refund of
such tax on such exported or shipped coal has been paid to
any person.
(d) Definitions.--For purposes of this section--
(1) Coal producer.--The term ``coal producer'' means the
person in whom is vested ownership of the coal immediately
after the coal is severed from the ground, without regard to
the existence of any contractual arrangement for the sale or
other disposition of the coal or the payment of any royalties
between the producer and third parties. The term includes any
person who extracts coal from coal waste refuse piles or from
the silt waste product which results from the wet washing (or
similar processing) of coal.
(2) Exporter.--The term ``exporter'' means a person, other
than a coal producer, who does not have a contract, fee
arrangement, or any other agreement with a producer or seller
of such coal to export or ship such coal to a third party on
behalf of the producer or seller of such coal and--
(A) is indicated in the shipper's export declaration or
other documentation as the exporter of record, or
(B) actually exported such coal to a foreign country or
shipped such coal to a possession of the United States, or
caused such coal to be so exported or shipped.
(3) Related party.--The term ``a party related to such coal
producer'' means a person who--
(A) is related to such coal producer through any degree of
common management, stock ownership, or voting control,
(B) is related (within the meaning of section 144(a)(3) of
the Internal Revenue Code of 1986) to such coal producer, or
(C) has a contract, fee arrangement, or any other agreement
with such coal producer to sell such coal to a third party on
behalf of such coal producer.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Treasury or the Secretary's designee.
(e) Timing of Refund.--With respect to any claim for refund
filed pursuant to this section, the Secretary shall determine
whether the requirements of this section are met not later
than 180 days after such claim is filed. If the Secretary
determines that the requirements of this section are met, the
claim for refund shall be paid not later than 180 days after
the Secretary makes such determination.
(f) Interest.--Any refund paid pursuant to this section
shall be paid by the Secretary with interest from the date of
overpayment determined by using the overpayment rate and
method under section 6621 of the Internal Revenue Code of
1986.
(g) Denial of Double Benefit.--The payment under subsection
(a) with respect to any coal shall not exceed--
(1) in the case of a payment to a coal producer, the amount
of tax paid under section 4121 of the Internal Revenue Code
of 1986 with respect to such coal by such coal producer or a
party related to such coal producer, and
(2) in the case of a payment to an exporter, an amount
equal to $0.825 per ton with respect to such coal exported by
the exporter or caused to be exported by the exporter.
(h) Application of Section.--This section applies only to
claims on coal exported or shipped on or after October 1,
1990, through the date of the enactment of this Act.
(i) Standing Not Conferred.--
(1) Exporters.--With respect to exporters, this section
shall not confer standing upon an exporter to commence, or
intervene in, any judicial or administrative proceeding
concerning a claim for refund by a coal producer of any
Federal or State tax, fee, or royalty paid by the coal
producer.
(2) Coal producers.--With respect to coal producers, this
section shall not confer standing upon a coal producer to
commence, or intervene in, any judicial or administrative
proceeding concerning a claim for refund by an exporter of
any Federal or State tax, fee, or royalty paid by the
producer and alleged to have been passed on to an exporter.
SEC. 115. 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.
Subtitle B--Transportation and Domestic Fuel Security Provisions
SEC. 121. INCLUSION OF CELLULOSIC BIOFUEL IN BONUS
DEPRECIATION FOR BIOMASS ETHANOL PLANT
PROPERTY.
(a) In General.--Paragraph (3) of section 168(l) is amended
to read as follows:
``(3) Cellulosic biofuel.--The term `cellulosic biofuel'
means any liquid fuel which is produced from any
lignocellulosic or hemicellulosic matter that is available on
a renewable or recurring basis.''.
(b) Conforming Amendments.--Subsection (l) of section 168
is amended--
(1) by striking ``cellulosic biomass ethanol'' each place
it appears and inserting ``cellulosic biofuel'',
(2) by striking ``Cellulosic Biomass Ethanol'' in the
heading of such subsection and inserting ``Cellulosic
Biofuel'', and
(3) by striking ``cellulosic biomass ethanol'' in the
heading of paragraph (2) thereof and inserting ``cellulosic
biofuel''.
(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. 122. 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, 2009''.
(b) Increase in Rate of Credit.--
(1) Income tax credit.--Paragraphs (1)(A) and (2)(A) of
section 40A(b) are each amended by striking ``50 cents'' and
inserting ``$1.00''.
(2) Excise tax credit.--Paragraph (2) of section 6426(c) is
amended to read as follows:
``(2) Applicable amount.--For purposes of this subsection,
the applicable amount is $1.00.''.
(3) Conforming amendments.--
(A) Subsection (b) of section 40A is amended by striking
paragraph (3) and by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(B) Paragraph (2) of section 40A(f) is amended to read as
follows:
``(2) Exception.--Subsection (b)(4) shall not apply with
respect to renewable diesel.''.
(C) Paragraphs (2) and (3) of section 40A(e) are each
amended by striking ``subsection (b)(5)(C)'' and inserting
``subsection (b)(4)(C)''.
(D) Clause (ii) of section 40A(d)(3)(C) is amended by
striking ``subsection (b)(5)(B)'' and inserting ``subsection
(b)(4)(B)''.
(c) 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 ``, D396, or other equivalent standard approved by
the Secretary''.
(d) 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 new 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))''.
(e) Eligibility of Certain Aviation Fuel.--Paragraph (3) of
section 40A(f) (defining renewable diesel) is amended by
adding at the end the following: ``The term `renewable
diesel' also means fuel derived from biomass which meets the
requirements of a Department of Defense specification for
military jet fuel or an American Society of Testing and
Materials specification for aviation turbine fuel.''.
(f) 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 (d) shall apply
to
[[Page S5604]]
fuel produced, and sold or used, after the date of the
enactment of this Act.
SEC. 123. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO
PROVIDE AN INCENTIVE FOR UNITED STATES
PRODUCTION.
(a) Alcohol Fuels Credit.--Paragraph (6) of section 40(d)
is amended to read as follows:
``(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.''.
(b) 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.''.
(c) Excise Tax Credit.--
(1) In general.--Section 6426 is amended by adding at the
end the following new subsection:
``(i) 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.''.
(2) 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(i).''.
(d) Effective Date.--The amendments made by this section
shall apply to claims for credit or payment made on or after
May 15, 2008.
SEC. 124. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE
MOTOR VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:
``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
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 new
qualified plug-in electric drive motor 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 new qualified plug-in electric
drive motor 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 $3,000.
``(3) Battery capacity.--In the case of a 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 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) New Qualified Plug-In Electric Drive Motor Vehicle.--
For purposes of this section--
``(1) In general.--The term `new qualified plug-in electric
drive motor 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, and
``(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.
``(2) Exception.--The term `new qualified plug-in electric
drive motor 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 New Qualified Plug-In
Electric Drive Motor Vehicles Eligible for Credit.--
``(1) In general.--In the case of a new qualified plug-in
electric drive motor 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 new qualified
plug-in electric drive motor 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) Coordination With Alternative Motor Vehicle Credit.--
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 (32) and
inserting ``, plus'', and
(4) by adding at the end the following new paragraph:
``(33) the portion of the new qualified plug-in electric
drive motor vehicle credit to which section 30D(c)(1)
applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by section 104, 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,''.
[[Page S5605]]
(C) Section 25B(g)(2), as amended by section 104, is
amended by striking ``and 25D'' and inserting ``, 25D, and
30D''.
(D) Section 26(a)(1), as amended by section 104, 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. New qualified plug-in electric drive motor 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. 125. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION
UNITS AND ADVANCED INSULATION.
(a) In General.--Section 4053 is amended by adding at the
end the following new paragraphs:
``(9) Idling reduction device.--Any device or system of
devices which--
``(A) is designed to provide to a vehicle those services
(such as heat, air conditioning, or electricity) that would
otherwise require the operation of the main drive engine
while the vehicle is temporarily parked or remains stationary
using one or more devices affixed to a tractor, and
``(B) is determined by the Administrator of the
Environmental Protection Agency, in consultation with the
Secretary of Energy and the Secretary of Transportation, to
reduce idling of such vehicle at a motor vehicle rest stop or
other location where such vehicles are temporarily parked or
remain stationary.
``(10) Advanced insulation.--Any insulation that has an R
value of not less than R35 per inch.''.
(b) Effective Date.--The amendment made by this section
shall apply to sales or installations after the date of the
enactment of this Act.
SEC. 126. 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) $115,000,000 ($425,000,000 in the case of the last 2
years in the credit period), 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, 2009.
``(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
therein and inserting ``(in the case of nonresidential real
property and residential rental property, the date of the
enactment of the Energy Independence and Tax Relief Act of
2008 or, if acquired pursuant to a binding contract in effect
on such enactment date, December 31, 2009)''.
[[Page S5606]]
(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)''.
(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.
SEC. 127. TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS.
(a) In General.--Paragraph (1) of section 132(f) 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) 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. 128. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.
(a) Increase in Credit Amount.--Section 30C 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)
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.
Subtitle C--Energy Conservation and Efficiency Provisions
SEC. 141. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1, as amended by section 106, is amended by adding at
the end the following new section:
``SEC. 54D. 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) Reduced Credit Amount.--The annual credit determined
under section 54A(b) with respect to any qualified energy
conservation bond shall be 70 percent of the amount so
determined without regard to this subsection.
``(c) 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 (e).
``(d) National Limitation on Amount of Bonds Designated.--
There is a national qualified energy conservation bond
limitation of $3,000,000,000.
``(e) Allocations.--
``(1) In general.--The limitation applicable under
subsection (d) 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.
``(f) 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.
``(g) 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.
``(h) 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 (e) 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 amended by section
106, is amended to read as follows:
[[Page S5607]]
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a qualified forestry conservation bond,
``(B) a new clean renewable energy bond, or
``(C) 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 amended by
section 106, 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 qualified forestry conservation
bond, a purpose specified in section 54B(e),
``(ii) in the case of a new clean renewable energy bond, a
purpose specified in section 54C(a)(1), and
``(iii) in the case of a qualified energy conservation
bond, a purpose specified in section 54D(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. 54D. 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. 142. CREDIT FOR NONBUSINESS ENERGY PROPERTY.
(a) Extension of Credit.--Section 25C(g) is amended by
striking ``December 31, 2007'' and inserting ``December 31,
2008''.
(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) 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), as
amended by subsection (b), is amended by striking
subparagraph (C) and by redesignating subparagraphs (D), (E),
and (F) as subparagraphs (C), (D), and (E), 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) Modification of Qualified Energy Efficiency
Improvements.--
(1) In general.--Paragraph (1) of section 25C(c) is amended
by inserting ``, or an asphalt roof with appropriate cooling
granules,'' before ``which meet the Energy Star program
requirements''.
(2) Building envelope component.--Subparagraph (D) of
section 25C(c)(2) is amended--
(A) by inserting ``or asphalt roof'' after ``metal roof'',
and
(B) by inserting ``or cooling granules'' after ``pigmented
coatings''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made this section shall apply to expenditures made
after December 31, 2007.
(2) Modification of qualified energy efficiency
improvements.--The amendments made by subsection (d) shall
apply to property placed in service after the date of the
enactment of this Act.
SEC. 143. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
Subsection (h) of section 179D is amended by striking
``December 31, 2008'' and inserting ``December 31, 2013''.
SEC. 144. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT
FOR APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M 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 is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that follows
through ``the eligible'' and inserting ``The eligible'',
(C) by moving the text of such subsection in line with the
subsection heading, and
(D) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively, and by moving such
paragraphs 2 ems to the left.
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1), 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) 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) is amended by
inserting ``commercial'' before ``residential'' the second
place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M 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
[[Page S5608]]
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), 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. 145. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF
SMART METERS AND SMART GRID SYSTEMS.
(a) In General.--Section 168(e)(3)(D) is amended by
striking ``and'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting a comma, and
by inserting after clause (ii) the following new clauses:
``(iii) any qualified smart electric meter, and
``(iv) any qualified smart electric grid system.''.
(b) Definitions.--Section 168(i) is amended by inserting at
the end the following new paragraph:
``(18) Qualified smart electric meters.--
``(A) In general.--The term `qualified smart electric
meter' means any smart electric meter which is placed in
service by a taxpayer who is a supplier of electric energy or
a provider of electric energy services.
``(B) Smart electric meter.--For purposes of subparagraph
(A), the term `smart electric meter' 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 electric meter in
support of time-based rates or other forms of demand
response,
``(iii) provides data to such supplier or provider so that
the supplier or provider can provide energy usage information
to customers electronically, and
``(iv) provides net metering.
``(19) Qualified smart electric grid systems.--
``(A) In general.--The term `qualified smart electric grid
system' means any smart grid property used as part of a
system for electric distribution grid communications,
monitoring, and management placed in service by a taxpayer
who is a supplier of electric energy or a provider of
electric energy services.
``(B) Smart grid property.--For the purposes of
subparagraph (A), the term `smart grid property' means
electronics and related equipment that is capable of--
``(i) sensing, collecting, and monitoring data of or from
all portions of a utility's electric distribution grid,
``(ii) providing real-time, two-way communications to
monitor or manage such grid, and
``(iii) providing real time analysis of and event
prediction based upon collected data that can be used to
improve electric distribution system reliability, quality,
and performance.''.
(c) Continued Application of 150 Percent Declining Balance
Method.--Paragraph (2) of section 168(b) is amended by
striking ``or'' at the end of subparagraph (B), by
redesignating subparagraph (C) as subparagraph (D), and by
inserting after subparagraph (B) the following new
subparagraph:
``(C) any property (other than property described in
paragraph (3)) which is a qualified smart electric meter or
qualified smart electric grid system, or''.
(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 146. QUALIFIED GREEN BUILDING AND SUSTAINABLE DESIGN
PROJECTS.
(a) In General.--Paragraph (8) of section 142(l) is amended
by striking ``September 30, 2009'' and inserting ``September
30, 2012''.
(b) Treatment of Current Refunding Bonds.--Paragraph (9) of
section 142(l) is amended by striking ``October 1, 2009'' and
inserting ``October 1, 2012''.
(c) Accountability.--The second sentence of section 701(d)
of the American Jobs Creation Act of 2004 is amended by
striking ``issuance,'' and inserting ``issuance of the last
issue with respect to such project,''.
TITLE II--ONE-YEAR EXTENSION OF TEMPORARY PROVISIONS
Subtitle A--Alternative Minimum Tax
SEC. 201. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
NONREFUNDABLE PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) (relating
to special rule for taxable years 2000 through 2007) is
amended--
(1) by striking ``or 2007'' and inserting ``2007, or
2008'', and
(2) by striking ``2007'' in the heading thereof and
inserting ``2008''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 202. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
EXEMPTION AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) (relating
to exemption amount) is amended--
(1) by striking ``($66,250 in the case of taxable years
beginning in 2007)'' in subparagraph (A) and inserting
``($69,950 in the case of taxable years beginning in 2008)'',
and
(2) by striking ``($44,350 in the case of taxable years
beginning in 2007)'' in subparagraph (B) and inserting
``($46,200 in the case of taxable years beginning in 2008)''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 203. INCREASE OF AMT REFUNDABLE CREDIT AMOUNT FOR
INDIVIDUALS WITH LONG-TERM UNUSED CREDITS FOR
PRIOR YEAR MINIMUM TAX LIABILITY, ETC.
(a) In General.--Paragraph (2) of section 53(e) is amended
to read as follows:
``(2) AMT refundable credit amount.--For purposes of
paragraph (1), the term `AMT refundable credit amount' means,
with respect to any taxable year, the amount (not in excess
of the long-term unused minimum tax credit for such taxable
year) equal to the greater of--
``(A) 50 percent of the long-term unused minimum tax credit
for such taxable year, or
``(B) the amount (if any) of the AMT refundable credit
amount for the taxpayer's preceding taxable year (determined
without regard to subsection (f)(2)).''.
(b) Treatment of Certain Underpayments, Interest, and
Penalties Attributable to the Treatment of Incentive Stock
Options.--Section 53 is amended by adding at the end the
following new subsection:
``(f) Treatment of Certain Underpayments, Interest, and
Penalties Attributable to the Treatment of Incentive Stock
Options.--
``(1) Abatement.--Any underpayment of tax outstanding on
the date of the enactment of this subsection which is
attributable to the application of section 56(b)(3) for any
taxable year ending before January 1, 2008 (and any interest
or penalty with respect to such underpayment which is
outstanding on such date of enactment), is hereby abated. The
amount determined under subsection (b)(1) shall not include
any tax abated under the preceding sentence.
``(2) Increase in credit for certain interest and penalties
already paid.--The AMT refundable credit amount, and the
minimum tax credit determined under subsection (b), for the
taxpayer's first 2 taxable years beginning after December 31,
2007, shall each be increased by 50 percent of the aggregate
amount of the interest and penalties which were paid by the
taxpayer before the date of the enactment of this subsection
and which would (but for such payment) have been abated under
paragraph (1).''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to taxable years
beginning after December 31, 2007.
(2) Abatement.--Section 53(f)(1) of the Internal Revenue
Code of 1986, as added by subsection (b), shall take effect
on the date of the enactment of this Act.
Subtitle B--Extensions Primarily Affecting Individuals
SEC. 211. DEDUCTION FOR STATE AND LOCAL SALES TAXES.
(a) In General.--Subparagraph (I) of section 164(b)(5) is
amended by striking ``January 1, 2008'' and inserting
``January 1, 2009''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 212. DEDUCTION OF QUALIFIED TUITION AND RELATED
EXPENSES.
(a) In General.--Subsection (e) of section 222 is amended
by striking ``December 31, 2007'' and inserting ``December
31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 213. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED
INVESTMENT COMPANIES.
(a) Interest-Related Dividends.--Subparagraph (C) of
section 871(k)(1) (defining interest-related dividend) is
amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
(b) Short-Term Capital Gain Dividends.--Subparagraph (C) of
section 871(k)(2) (defining short-term capital gain dividend)
is amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
(c) Effective Date.--The amendments made by this section
shall apply to dividends with respect to taxable years of
regulated investment companies beginning after December 31,
2007.
SEC. 214. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT
PLANS FOR CHARITABLE PURPOSES.
(a) In General.--Subparagraph (F) of section 408(d)(8) is
amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
[[Page S5609]]
(b) Effective Date.--The amendment made by this section
shall apply to distributions made in taxable years beginning
after December 31, 2007.
SEC. 215. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND
SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) is
amended by striking ``or 2007'' and inserting ``2007, or
2008''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2007.
SEC. 216. STOCK IN RIC FOR PURPOSES OF DETERMINING ESTATES OF
NONRESIDENTS NOT CITIZENS.
(a) In General.--Paragraph (3) of section 2105(d) is
amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to decedents dying after December 31, 2007.
SEC. 217. QUALIFIED INVESTMENT ENTITIES.
(a) In General.--Clause (ii) of section 897(h)(4)(A) is
amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on January 1, 2008, except that such
amendment shall not apply to the application of withholding
requirements with respect to any payment made on or before
the date of the enactment of this Act.
SEC. 218. EXCLUSION OF AMOUNTS RECEIVED UNDER QUALIFIED GROUP
LEGAL SERVICES PLANS.
(a) In General.--Subsection (e) of section 120 is amended
by striking ``shall not apply to taxable years beginning
after June 30, 1992'' and inserting ``shall apply to taxable
years beginning after December 31, 2007, and before January
1, 2009''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
Subtitle C--Extensions Primarily Affecting Businesses
SEC. 221. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.
(a) Extension.--Section 41(h) (relating to termination) is
amended--
(1) by striking ``December 31, 2007'' and inserting
``December 31, 2008'' in paragraph (1)(B),
(2) by redesignating paragraph (2) as paragraph (3), and
(3) by inserting after paragraph (1) the following new
paragraph:
``(2) Termination of alternative incremental credit.--No
election under subsection (c)(4) shall apply to amounts paid
or incurred after December 31, 2007.''.
(b) Modification of Alternative Simplified Credit.--
Paragraph (5)(A) of section 41(c) (relating to election of
alternative simplified credit) is amended to read as follows:
``(A) In general.--At the election of the taxpayer, the
credit determined under subsection (a)(1) shall be equal to
14 percent of so much of the qualified research expenses for
the taxable year as exceeds 50 percent of the average
qualified research expenses for the 3 taxable years preceding
the taxable year for which the credit is being determined.''.
(c) Conforming Amendment.--Subparagraph (D) of section
45C(b)(1) (relating to special rule) is amended by striking
``December 31, 2007'' and inserting ``December 31, 2008''.
(d) Technical Correction.--Paragraph (3) of section 41(h)
is amended to read as follows:
``(2) Computation for taxable year in which credit
terminates.--In the case of any taxable year with respect to
which this section applies to a number of days which is less
than the total number of days in such taxable year--
``(A) the amount determined under subsection (c)(1)(B) with
respect to such taxable year shall be the amount which bears
the same ratio to such amount (determined without regard to
this paragraph) as the number of days in such taxable year to
which this section applies bears to the total number of days
in such taxable year, and
``(B) for purposes of subsection (c)(5), the average
qualified research expenses for the preceding 3 taxable years
shall be the amount which bears the same ratio to such
average qualified research expenses (determined without
regard to this paragraph) as the number of days in such
taxable year to which this section applies bears to the total
number of days in such taxable year.''.
(e) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after December 31,
2007.
SEC. 222. INDIAN EMPLOYMENT CREDIT.
(a) In General.--Subsection (f) of section 45A is amended
by striking ``December 31, 2007'' and inserting ``December
31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 223. NEW MARKETS TAX CREDIT.
Subparagraph (D) of section 45D(f)(1) is amended by
striking ``and 2008'' and inserting ``2008, and 2009''.
SEC. 224. RAILROAD TRACK MAINTENANCE.
(a) In General.--Subsection (f) of section 45G (relating to
application of section) is amended by striking ``January 1,
2008'' and inserting ``January 1, 2009''.
(b) Credit Allowed Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) (relating to specified
credits), as amended by section 103, is amended--
(1) by redesignating clauses (iv) and (v) as clauses (v)
and (vi), respectively, and
(2) by inserting after clause (iii) the following new
clause:
``(iv) the credit determined under section 45G,''.
(c) Effective Dates.--
(1) The amendment made by subsection (a) shall apply to
expenditures paid or incurred during taxable years beginning
after December 31, 2007.
(2) The amendments made by subsection (b) shall apply to
credits determined under section 45G in taxable years
beginning after December 31, 2007, and to carrybacks of such
credits.
SEC. 225. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.
Section 45N(e) (relating to termination) is amended by
striking ``December 31, 2008'' and inserting ``December 31,
2009''.
SEC. 226. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY
FOR QUALIFIED LEASEHOLD IMPROVEMENTS AND
QUALIFIED RESTAURANT IMPROVEMENTS; 15-YEAR
STRAIGHT-LINE COST RECOVERY FOR CERTAIN
IMPROVEMENTS TO RETAIL SPACE.
(a) Extension of Leasehold and Restaurant Improvements.--
(1) In general.--Clauses (iv) and (v) of section
168(e)(3)(E) (relating to 15-year property) are each amended
by striking ``January 1, 2008'' and inserting ``January 1,
2009''.
(2) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2007.
(b) Treatment To Include New Construction.--
(1) In general.--Paragraph (7) of section 168(e) (relating
to classification of property) is amended to read as follows:
``(7) Qualified restaurant property.--The term `qualified
restaurant property' means any section 1250 property which is
a building or an improvement to a building if more than 50
percent of the building's square footage is devoted to
preparation of, and seating for on-premises consumption of,
prepared meals.''.
(2) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of
the enactment of this Act.
(c) Recovery Period for Depreciation of Certain
Improvements to Retail Space.--
(1) 15-year recovery period.--Section 168(e)(3)(E)
(relating to 15-year property) is amended by striking ``and''
at the end of clause (vii), by striking the period at the end
of clause (viii) and inserting ``, and'', and by adding at
the end the following new clause:
``(ix) any qualified retail improvement property placed in
service before January 1, 2009.''.
(2) Qualified retail improvement property.--Section 168(e)
is amended by adding at the end the following new paragraph:
``(8) Qualified retail improvement property.--
``(A) In general.--The term `qualified retail improvement
property' means any improvement to an interior portion of a
building which is nonresidential real property if--
``(i) such portion is open to the general public and is
used in the retail trade or business of selling tangible
personal property to the general public, and
``(ii) such improvement is placed in service more than 3
years after the date the building was first placed in
service.
``(B) Improvements made by owner.--In the case of an
improvement made by the owner of such improvement, such
improvement shall be qualified retail improvement property
(if at all) only so long as such improvement is held by such
owner. Rules similar to the rules under paragraph (6)(B)
shall apply for purposes of the preceding sentence.
``(C) Certain improvements not included.--Such term shall
not include any improvement for which the expenditure is
attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator,
``(iii) any structural component benefitting a common area,
or
``(iv) the internal structural framework of the
building.''.
(3) Requirement to use straight line method.--Section
168(b)(3) is amended by adding at the end the following new
subparagraph:
``(I) Qualified retail improvement property described in
subsection (e)(8).''.
(4) Alternative system.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (E)(viii) the following new item:
``(E)(ix).................................................. 39''.
[[Page S5610]]
(5) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 227. SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS
RACING TRACK FACILITY.
(a) In General.--Subparagraph (D) of section 168(i)(15) is
amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2007.
SEC. 228. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON
INDIAN RESERVATION.
(a) In General.--Paragraph (8) of section 168(j) is amended
by striking ``December 31, 2007'' and inserting ``December
31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2007.
SEC. 229. EXTENSION OF ELECTION TO EXPENSE ADVANCED MINE
SAFETY EQUIPMENT.
Section 179E(g) (relating to termination) is amended by
striking ``December 31, 2008'' and inserting ``December 31,
2009''.
SEC. 230. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) In General.--Subsection (h) of section 198 is amended
by striking ``December 31, 2007'' and inserting ``December
31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred after December
31, 2007.
SEC. 231. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME
ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES
IN PUERTO RICO.
(a) In General.--Subparagraph (C) of section 199(d)(8) is
amended--
(1) by striking ``first 2 taxable years'' and inserting
``first 3 taxable years'', and
(2) by striking ``January 1, 2008'' and inserting ``January
1, 2009''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 232. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS
TO CONTROLLING EXEMPT ORGANIZATIONS.
(a) In General.--Clause (iv) of section 512(b)(13)(E) is
amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to payments received or accrued after December
31, 2007.
SEC. 233. QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1, as amended by sections 106 and 141, is amended by
adding at the end the following new section:
``SEC. 54E. QUALIFIED ZONE ACADEMY BONDS.
``(a) Qualified Zone Academy Bonds.--For purposes of this
subchapter, the term `qualified zone academy 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 a qualified purpose with respect to
a qualified zone academy established by an eligible local
education agency,
``(2) the bond is issued by a State or local government
within the jurisdiction of which such academy is located, and
``(3) the issuer--
``(A) designates such bond for purposes of this section,
``(B) certifies that it has written assurances that the
private business contribution requirement of subsection (b)
will be met with respect to such academy, and
``(C) certifies that it has the written approval of the
eligible local education agency for such bond issuance.
``(b) Private Business Contribution Requirement.--For
purposes of subsection (a), the private business contribution
requirement of this subsection is met with respect to any
issue if the eligible local education agency that established
the qualified zone academy has written commitments from
private entities to make qualified contributions having a
present value (as of the date of issuance of the issue) of
not less than 10 percent of the proceeds of the issue.
``(c) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a national zone
academy bond limitation for each calendar year. Such
limitation is $400,000,000 for 2008, and, except as provided
in paragraph (4), zero thereafter.
``(2) Allocation of limitation.--The national zone academy
bond limitation for a calendar year shall be allocated by the
Secretary among the States on the basis of their respective
populations of individuals below the poverty line (as defined
by the Office of Management and Budget). The limitation
amount allocated to a State under the preceding sentence
shall be allocated by the State education agency to qualified
zone academies within such State.
``(3) Designation subject to limitation amount.--The
maximum aggregate face amount of bonds issued during any
calendar year which may be designated under subsection (a)
with respect to any qualified zone academy shall not exceed
the limitation amount allocated to such academy under
paragraph (2) for such calendar year.
``(4) Carryover of unused limitation.--
``(A) In general.--If for any calendar year--
``(i) the limitation amount for any State, exceeds
``(ii) the amount of bonds issued during such year which
are designated under subsection (a) with respect to qualified
zone academies within such State,
the limitation amount for such State for the following
calendar year shall be increased by the amount of such
excess.
``(B) Limitation on carryover.--Any carryforward of a
limitation amount may be carried only to the first 2 years
following the unused limitation year. For purposes of the
preceding sentence, a limitation amount shall be treated as
used on a first-in first-out basis.
``(C) Coordination with section 1397e.--Any carryover
determined under section 1397E(e)(4) (relating to carryover
of unused limitation) with respect to any State to calendar
year 2008 shall be treated for purposes of this section as a
carryover with respect to such State for such calendar year
under subparagraph (A), and the limitation of subparagraph
(B) shall apply to such carryover taking into account the
calendar years to which such carryover relates.
``(d) Definitions.--For purposes of this section--
``(1) Qualified zone academy.--The term `qualified zone
academy' means any public school (or academic program within
a public school) which is established by and operated under
the supervision of an eligible local education agency to
provide education or training below the postsecondary level
if--
``(A) such public school or program (as the case may be) is
designed in cooperation with business to enhance the academic
curriculum, increase graduation and employment rates, and
better prepare students for the rigors of college and the
increasingly complex workforce,
``(B) students in such public school or program (as the
case may be) will be subject to the same academic standards
and assessments as other students educated by the eligible
local education agency,
``(C) the comprehensive education plan of such public
school or program is approved by the eligible local education
agency, and
``(D)(i) such public school is located in an empowerment
zone or enterprise community (including any such zone or
community designated after the date of the enactment of this
section), or
``(ii) there is a reasonable expectation (as of the date of
issuance of the bonds) that at least 35 percent of the
students attending such school or participating in such
program (as the case may be) will be eligible for free or
reduced-cost lunches under the school lunch program
established under the National School Lunch Act.
``(2) Eligible local education agency.--For purposes of
this section, the term `eligible local education agency'
means any local educational agency as defined in section 9101
of the Elementary and Secondary Education Act of 1965.
``(3) Qualified purpose.--The term `qualified purpose'
means, with respect to any qualified zone academy--
``(A) rehabilitating or repairing the public school
facility in which the academy is established,
``(B) providing equipment for use at such academy,
``(C) developing course materials for education to be
provided at such academy, and
``(D) training teachers and other school personnel in such
academy.
``(4) Qualified contributions.--The term `qualified
contribution' means any contribution (of a type and quality
acceptable to the eligible local education agency) of--
``(A) equipment for use in the qualified zone academy
(including state-of-the-art technology and vocational
equipment),
``(B) technical assistance in developing curriculum or in
training teachers in order to promote appropriate market
driven technology in the classroom,
``(C) services of employees as volunteer mentors,
``(D) internships, field trips, or other educational
opportunities outside the academy for students, or
``(E) any other property or service specified by the
eligible local education agency.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as amended by sections
106 and 141, is amended by striking ``or'' at the end of
subparagraph (B), by inserting ``or'' at the end of
subparagraph (C), and by inserting after subparagraph (C) the
following new subparagraph:
``(D) a qualified zone academy bond,''.
(2) Subparagraph (C) of section 54A(d)(2), as amended by
sections 106 and 141, 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) in the case of a qualified zone academy bond, a
purpose specified in section 54E(a)(1).''.
(3) Section 1397E is amended by adding at the end the
following new subsection:
``(m) Termination.--This section shall not apply to any
obligation issued after the date of the enactment of this
Act.''.
(4) 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. 54E. Qualified zone academy 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. 234. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
COLUMBIA.
(a) Designation of Zone.--
[[Page S5611]]
(1) In general.--Subsection (f) of section 1400 is amended
by striking ``2007'' both places it appears and inserting
``2008''.
(2) Effective date.--The amendments made by this subsection
shall apply to periods beginning after December 31, 2007.
(b) Tax-Exempt Economic Development Bonds.--
(1) In general.--Subsection (b) of section 1400A is amended
by striking ``2007'' and inserting ``2008''.
(2) Effective date.--The amendment made by this subsection
shall apply to bonds issued after December 31, 2007.
(c) Zero Percent Capital Gains Rate.--
(1) In general.--Subsection (b) of section 1400B is amended
by striking ``2008'' each place it appears and inserting
``2009''.
(2) Conforming amendments.--
(A) Section 1400B(e)(2) is amended--
(i) by striking ``2012'' and inserting ``2013'', and
(ii) by striking ``2012'' in the heading thereof and
inserting ``2013''.
(B) Section 1400B(g)(2) is amended by striking ``2012'' and
inserting ``2013''.
(C) Section 1400F(d) is amended by striking ``2012'' and
inserting ``2013''.
(3) Effective dates.--
(A) Extension.--The amendments made by paragraph (1) shall
apply to acquisitions after December 31, 2007.
(B) Conforming amendments.--The amendments made by
paragraph (2) shall take effect on the date of the enactment
of this Act.
(d) First-Time Homebuyer Credit.--
(1) In general.--Subsection (i) of section 1400C is amended
by striking ``2008'' and inserting ``2009''.
(2) Effective date.--The amendment made by this subsection
shall apply to property purchased after December 31, 2007.
SEC. 235. ECONOMIC DEVELOPMENT CREDIT FOR AMERICAN SAMOA.
(a) In General.--Subsection (d) of section 119 of division
A of the Tax Relief and Health Care Act of 2006 is amended--
(1) by striking ``first two taxable years'' and inserting
``first 3 taxable years'', and
(2) by striking ``January 1, 2008'' and inserting ``January
1, 2009''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 236. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF
FOOD INVENTORY.
(a) In General.--Clause (iv) of section 170(e)(3)(C) is
amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made after December 31, 2007.
SEC. 237. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF
BOOK INVENTORY TO PUBLIC SCHOOLS.
(a) In General.--Clause (iv) of section 170(e)(3)(D) is
amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made after December 31, 2007.
SEC. 238. ENHANCED DEDUCTION FOR QUALIFIED COMPUTER
CONTRIBUTIONS.
(a) In General.--Subparagraph (G) of section 170(e)(6) is
amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made during taxable years
beginning after December 31, 2007.
SEC. 239. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING
CHARITABLE CONTRIBUTIONS OF PROPERTY.
(a) In General.--The last sentence of section 1367(a)(2) is
amended by striking ``December 31, 2007'' and inserting
``December 31, 2008''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2007.
SEC. 240. WORK OPPORTUNITY TAX CREDIT FOR HURRICANE KATRINA
EMPLOYEES.
(a) In General.--Paragraph (1) of section 201(b) of the
Katrina Emergency Tax Relief Act of 2005 is amended by
striking ``2-year'' and inserting ``3-year''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to individuals hired after August 27, 2007.
SEC. 241. SUBPART F EXCEPTION FOR ACTIVE FINANCING INCOME.
(a) Exempt Insurance Income.--Paragraph (10) of section
953(e) (relating to application) is amended--
(1) by striking ``January 1, 2009'' and inserting ``January
1, 2010'', and
(2) by striking ``December 31, 2008'' and inserting
``December 31, 2009''.
(b) Exception to Treatment as Foreign Personal Holding
Company Income.--Paragraph (9) of section 954(h) (relating to
application) is amended by striking ``January 1, 2009'' and
inserting ``January 1, 2010''.
SEC. 242. LOOK-THRU RULE FOR RELATED CONTROLLED FOREIGN
CORPORATIONS.
(a) In General.--Subparagraph (C) of section 954(c)(6)
(relating to application) is amended by striking ``January 1,
2009'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2008, and to taxable years of
United States shareholders with or within which such taxable
years of foreign corporations end.
SEC. 243. EXPENSING FOR CERTAIN QUALIFIED FILM AND TELEVISION
PRODUCTIONS.
(a) In General.--Subsection (f) of section 181 is amended
by striking ``December 31, 2008'' and inserting ``December
31, 2009''.
(b) Effective Date.--The amendment made by this section
shall apply to productions commencing after December 31,
2008.
SEC. 244. EXTENSION AND MODIFICATION OF DUTY SUSPENSION ON
WOOL PRODUCTS; WOOL RESEARCH FUND; WOOL DUTY
REFUNDS.
(a) Extension of Temporary Duty Reductions.--Each of the
following headings of the Harmonized Tariff Schedule of the
United States is amended by striking the date in the
effective period column and inserting ``12/31/2014'':
(1) Heading 9902.51.11 (relating to fabrics of worsted
wool).
(2) Heading 9902.51.13 (relating to yarn of combed wool).
(3) Heading 9902.51.14 (relating to wool fiber, waste,
garnetted stock, combed wool, or wool top).
(4) Heading 9902.51.15 (relating to fabrics of combed
wool).
(5) Heading 9902.51.16 (relating to fabrics of combed
wool).
(b) Extension of Duty Refunds and Wool Research Trust
Fund.--
(1) In general.--Section 4002(c) of the Wool Suit and
Textile Trade Extension Act of 2004 (Public Law 108-429; 118
Stat. 2603) is amended--
(A) in paragraph (3)(C), by striking ``2010'' and inserting
``2015''; and
(B) in paragraph (6)(A), by striking ``through 2009'' and
inserting ``through 2014''.
(2) Sunset.--Section 506(f) of the Trade and Development
Act of 2000 (Public 106-200; 114 Stat. 303 (7 U.S.C. 7101
note)) is amended by striking ``2010'' and inserting
``2015''.
Subtitle D--Other Extensions
SEC. 251. AUTHORITY TO DISCLOSE INFORMATION RELATED TO
TERRORIST ACTIVITIES MADE PERMANENT.
(a) In General.--Subparagraph (C) of section 6103(i)(3) is
amended by striking clause (iv).
(b) Disclosure on Request.--Paragraph (7) of section
6103(i) is amended by striking subparagraph (E).
(c) Effective Date.--The amendments made by this section
shall apply to disclosures after the date of the enactment of
this Act.
SEC. 252. AUTHORITY FOR UNDERCOVER OPERATIONS MADE PERMANENT.
(a) In General.--Subsection (c) of section 7608 is amended
by striking paragraph (6).
(b) Effective Date.--The amendment made by this section
shall take effect on January 1, 2008.
SEC. 253. INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAX
TO PUERTO RICO AND THE VIRGIN ISLANDS.
(a) In General.--Paragraph (1) of section 7652(f) is
amended by striking ``January 1, 2008'' and inserting
``January 1, 2009''.
(b) Effective Date.--The amendment made by this section
shall apply to distilled spirits brought into the United
States after December 31, 2007.
TITLE III--ADDITIONAL RELIEF
Subtitle A--Individual Tax Relief
SEC. 301. ADDITIONAL STANDARD DEDUCTION FOR REAL PROPERTY
TAXES FOR NONITEMIZERS.
(a) In General.--Section 63(c)(1) (defining standard
deduction) 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) in the case of any taxable year beginning in 2008,
the real property tax deduction.''.
(b) Definition.--Section 63(c) is amended by adding at the
end the following new paragraph:
``(7) Real property tax deduction.--For purposes of
paragraph (1), the real property tax deduction is the lesser
of--
``(A) the amount allowable as a deduction under this
chapter for State and local taxes described in section
164(a)(1), or
``(B) $350 ($700 in the case of a joint return).
Any taxes taken into account under section 62(a) shall not be
taken into account under this paragraph.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 302. $10,000 INCOME THRESHOLD USED TO CALCULATE
REFUNDABLE PORTION OF CHILD TAX CREDIT.
(a) In General.--Section 24(d) (relating to portion of
credit refundable) is amended by adding at the end the
following new paragraph:
``(4) Special rule for 2008.--Notwithstanding paragraph
(3), in the case of any taxable year beginning in 2008, the
dollar amount in effect for such taxable year under paragraph
(1)(B)(i) shall be $10,000.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 303. INCOME AVERAGING FOR AMOUNTS RECEIVED IN CONNECTION
WITH THE EXXON VALDEZ LITIGATION.
(a) Income Averaging of Amounts Received From the Exxon
Valdez Litigation.--For purposes of section 1301 of the
Internal Revenue Code of 1986--
(1) any qualified taxpayer who receives any qualified
settlement income in any taxable year shall be treated as
engaged in a fishing
[[Page S5612]]
business (determined without regard to the commercial nature
of the business), and
(2) such qualified settlement income shall be treated as
income attributable to such a fishing business for such
taxable year.
(b) Contributions of Amounts Received to Retirement
Accounts.--
(1) In general.--Any qualified taxpayer who receives
qualified settlement income during the taxable year may, at
any time before the end of the taxable year in which such
income was received, make one or more contributions to an
eligible retirement plan of which such qualified taxpayer is
a beneficiary in an aggregate amount not to exceed the lesser
of--
(A) $100,000 (reduced by the amount of qualified settlement
income contributed to an eligible retirement plan in prior
taxable years pursuant to this subsection), or
(B) the amount of qualified settlement income received by
the individual during the taxable year.
(2) Time when contributions deemed made.--For purposes of
paragraph (1), a qualified taxpayer shall be deemed to have
made a contribution to an eligible retirement plan on the
last day of the taxable year in which such income is received
if the contribution is made on account of such taxable year
and is made not later than the time prescribed by law for
filing the return for such taxable year (not including
extensions thereof).
(3) Treatment of contributions to eligible retirement
plans.--For purposes of the Internal Revenue Code of 1986, if
a contribution is made pursuant to paragraph (1) with respect
to qualified settlement income, then--
(A) except as provided in paragraph (4)--
(i) to the extent of such contribution, the qualified
settlement income shall not be included in taxable income,
and
(ii) for purposes of section 72 of such Code, such
contribution shall not be considered to be investment in the
contract,
(B) the qualified taxpayer shall, to the extent of the
amount of the contribution, be treated--
(i) as having received the qualified settlement income--
(I) in the case of a contribution to an individual
retirement plan (as defined under section 7701(a)(37) of such
Code), in a distribution described in section 408(d)(3) of
such Code, and
(II) in the case of any other eligible retirement plan, in
an eligible rollover distribution (as defined under section
402(f)(2) of such Code), and
(ii) as having transferred the amount to the eligible
retirement plan in a direct trustee to trustee transfer
within 60 days of the distribution,
(C) section 408(d)(3)(B) of the Internal Revenue Code of
1986 shall not apply with respect to amounts treated as a
rollover under this paragraph, and
(D) section 408A(c)(3)(B) of the Internal Revenue Code of
1986 shall not apply with respect to amounts contributed to a
Roth IRA (as defined under section 408A(b) of such Code) or a
designated Roth contribution to an applicable retirement plan
(within the meaning of section 402A of such Code) under this
paragraph.
(4) Special rule for roth iras and roth 401(k)s.--For
purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to paragraph (1) with respect
to qualified settlement income to a Roth IRA (as defined
under section 408A(b) of such Code) or as a designated Roth
contribution to an applicable retirement plan (within the
meaning of section 402A of such Code), then--
(A) the qualified settlement income shall be includible in
taxable income, and
(B) for purposes of section 72 of such Code, such
contribution shall be considered to be investment in the
contract.
(5) Eligible retirement plan.--For purpose of this
subsection, the term ``eligible retirement plan'' has the
meaning given such term under section 402(c)(8)(B) of the
Internal Revenue Code of 1986.
(c) Treatment of Qualified Settlement Income Under
Employment Taxes.--
(1) SECA.--For purposes of chapter 2 of the Internal
Revenue Code of 1986 and section 211 of the Social Security
Act, no portion of qualified settlement income received by a
qualified taxpayer shall be treated as self-employment
income.
(2) FICA.--For purposes of chapter 21 of the Internal
Revenue Code of 1986 and section 209 of the Social Security
Act, no portion of qualified settlement income received by a
qualified taxpayer shall be treated as wages.
(d) Qualified Taxpayer.--For purposes of this section, the
term ``qualified taxpayer'' means--
(1) any individual who is a plaintiff in the civil action
In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D.
Alaska); or
(2) any individual who is a beneficiary of the estate of
such a plaintiff who--
(A) acquired the right to receive qualified settlement
income from that plaintiff; and
(B) was the spouse or an immediate relative of that
plaintiff.
(e) Qualified Settlement Income.--For purposes of this
section, the term ``qualified settlement income'' means any
interest and punitive damage awards which are--
(1) otherwise includible in taxable income, and
(2) received (whether as lump sums or periodic payments) in
connection with the civil action In re Exxon Valdez, No. 89-
095-CV (HRH) (Consolidated) (D. Alaska) (whether pre- or
post-judgment and whether related to a settlement or
judgment).
Subtitle B--Business Related Provisions
SEC. 311. UNIFORM TREATMENT OF ATTORNEY-ADVANCED EXPENSES AND
COURT COSTS IN CONTINGENCY FEE CASES.
(a) In General.--Section 162 is amended by redesignating
subsection (q) as subsection (r) and by inserting after
subsection (p) the following new subsection:
``(q) Attorney-Advanced Expenses and Court Costs in
Contingency Fee Cases.--In the case of any expense or court
cost which is paid or incurred in the course of the trade or
business of practicing law and the repayment of which is
contingent on a recovery by judgment or settlement in the
action to which such expense or cost relates, the deduction
under subsection (a) shall be determined as if such expense
or cost was not subject to repayment.''.
(b) Effective Date.--The amendment made by this section
shall apply to expenses and costs paid or incurred in taxable
years beginning after December 31, 2008.
SEC. 312. PROVISIONS RELATED TO FILM AND TELEVISION
PRODUCTIONS.
(a) Modification of Limitation on Expensing.--Subparagraph
(A) of section 181(a)(2) is amended to read as follows:
``(A) In general.--Paragraph (1) shall not apply to so much
of the aggregate cost of any qualified film or television
production as exceeds $15,000,000.''.
(b) Modifications to Deduction for Domestic Activities.--
(1) Determination of w-2 wages.--Paragraph (2) of section
199(b) is amended by adding at the end the following new
subparagraph:
``(D) Special rule for qualified film.--In the case of a
qualified film, such term shall include compensation for
services performed in the United States by actors, production
personnel, directors, and producers.''.
(2) Definition of qualified film.--Paragraph (6) of section
199(c) is amended by adding at the end the following: ``A
qualified film shall include any copyrights, trademarks, or
other intangibles with respect to such film. The methods and
means of distributing a qualified film shall not affect the
availability of the deduction under this section.''.
(3) Partnerships.--Subparagraph (A) of section 199(d)(1) 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) in the case of each partner of a partnership, or
shareholder of an S corporation, who owns (directly or
indirectly) at least 20 percent of the capital interests in
such partnership or of the stock of such S corporation--
``(I) such partner or shareholder shall be treated as
having engaged directly in any film produced by such
partnership or S corporation, and
``(II) such partnership or S corporation shall be treated
as having engaged directly in any film produced by such
partner or shareholder.''.
(c) 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, 2007.
(2) Expensing.--The amendments made by subsection (a) shall
apply to qualified film and television productions commencing
after December 31, 2007.
SEC. 313. MODIFICATION OF RATE OF EXCISE TAX ON CERTAIN
WOODEN ARROWS DESIGNED FOR USE BY CHILDREN.
(a) In General.--Paragraph (2) of section 4161(b) (relating
to arrows) is amended by redesignating subparagraph (B) as
subparagraph (C) and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Exemption for certain wooden arrow shafts.--
Subparagraph (A) shall not apply to any shaft consisting of
all natural wood with no laminations or artificial means of
enhancing the spine of such shaft (whether sold separately or
incorporated as part of a finished or unfinished product) of
a type used in the manufacture of any arrow which after its
assembly--
``(i) measures \5/16\ of an inch or less in diameter, and
``(ii) is not suitable for use with a bow described in
paragraph (1)(A).''.
(b) Effective Date.--The amendments made by this section
shall apply to shafts first sold after the date of enactment
of this Act.
Subtitle C--Modification of Penalty on Understatement of Taxpayer's
Liability by Tax Return Preparer
SEC. 321. MODIFICATION OF PENALTY ON UNDERSTATEMENT OF
TAXPAYER'S LIABILITY BY TAX RETURN PREPARER.
(a) In General.--Subsection (a) of section 6694 (relating
to understatement due to unreasonable positions) is amended
to read as follows:
``(a) Understatement Due to Unreasonable Positions.--
``(1) In general.--If a tax return preparer--
``(A) prepares any return or claim of refund with respect
to which any part of an understatement of liability is due to
a position described in paragraph (2), and
``(B) knew (or reasonably should have known) of the
position,
such tax return preparer shall pay a penalty with respect to
each such return or claim in
[[Page S5613]]
an amount equal to the greater of $1,000 or 50 percent of the
income derived (or to be derived) by the tax return preparer
with respect to the return or claim.
``(2) Unreasonable position.--
``(A) In general.--Except as otherwise provided in this
paragraph, a position is described in this paragraph unless
there is or was substantial authority for the position.
``(B) Disclosed positions.--If the position was disclosed
as provided in section 6662(d)(2)(B)(ii)(I) and is not a
position to which subparagraph (C) applies, the position is
described in this paragraph unless there is a reasonable
basis for the position.
``(C) Tax shelters and reportable transactions.--If the
position is with respect to a tax shelter (as defined in
section 6662(d)(2)(C)(ii)) or a reportable transaction to
which section 6662A applies, the position is described in
this paragraph unless it is reasonable to believe that the
position would more likely than not be sustained on its
merits.
``(3) Reasonable cause exception.--No penalty shall be
imposed under this subsection if it is shown that there is
reasonable cause for the understatement and the tax return
preparer acted in good faith.''.
(b) Effective Date.--The amendment made by this section
shall apply--
(1) in the case of a position other than a position
described in subparagraph (C) of section 6694(a)(2) of the
Internal Revenue Code of 1986 (as amended by this section),
to returns prepared after May 25, 2007, and
(2) in the case of a position described in such
subparagraph (C), to returns prepared for taxable years
ending after the date of the enactment of this Act.
Subtitle D--Extension and Expansion of Certain GO Zone Incentives
SEC. 331. CERTAIN GO ZONE INCENTIVES.
(a) Use of Amended Income Tax Returns To Take Into Account
Receipt of Certain Hurricane-Related Casualty Loss Grants by
Disallowing Previously Taken Casualty Loss Deductions.--
(1) In general.--Notwithstanding any other provision of the
Internal Revenue Code of 1986, if a taxpayer claims a
deduction for any taxable year with respect to a casualty
loss to a principal residence (within the meaning of section
121 of such Code) resulting from Hurricane Katrina, Hurricane
Rita, or Hurricane Wilma and in a subsequent taxable year
receives a grant under Public Law 109-148, 109-234, or 110-
116 as reimbursement for such loss, such taxpayer may elect
to file an amended income tax return for the taxable year in
which such deduction was allowed (and for any taxable year to
which such deduction is carried) and reduce (but not below
zero) the amount of such deduction by the amount of such
reimbursement.
(2) Time of filing amended return.--Paragraph (1) shall
apply with respect to any grant only if any amended income
tax returns with respect to such grant are filed not later
than the later of--
(A) the due date for filing the tax return for the taxable
year in which the taxpayer receives such grant, or
(B) the date which is 1 year after the date of the
enactment of this Act.
(3) Waiver of penalties and interest.--Any underpayment of
tax resulting from the reduction under paragraph (1) of the
amount otherwise allowable as a deduction shall not be
subject to any penalty or interest under such Code if such
tax is paid not later than 1 year after the filing of the
amended return to which such reduction relates.
(b) Waiver of Deadline on Construction of GO Zone Property
Eligible for Bonus Depreciation.--
(1) In general.--Subparagraph (B) of section 1400N(d)(3) is
amended to read as follows:
``(B) without regard to `and before January 1, 2009' in
clause (i) thereof, and''.
(2) Effective date.--The amendment made by this subsection
shall apply to property placed in service after December 31,
2007.
(c) Inclusion of Certain Counties in Gulf Opportunity Zone
for Purposes of Tax-Exempt Bond Financing.--
(1) In general.--Subsection (a) of section 1400N is amended
by adding at the end the following new paragraph:
``(8) Inclusion of certain counties.--For purposes of this
subsection, the Gulf Opportunity Zone includes Colbert
County, Alabama and Dallas County, Alabama.''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the provisions of the
Gulf Opportunity Zone Act of 2005 to which it relates.
Subtitle E--Other Provisions
SEC. 341. SECURE RURAL SCHOOLS AND COMMUNITY SELF-
DETERMINATION PROGRAM.
(a) Reauthorization of the Secure Rural Schools and
Community Self-Determination Act of 2000.--The Secure Rural
Schools and Community Self-Determination Act of 2000 (16
U.S.C. 500 note; Public Law 106-393) is amended by striking
sections 1 through 403 and inserting the following:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Secure Rural Schools and
Community Self-Determination Act of 2000'.
``SEC. 2. PURPOSES.
``The purposes of this Act are--
``(1) to stabilize and transition payments to counties to
provide funding for schools and roads that supplements other
available funds;
``(2) to make additional investments in, and create
additional employment opportunities through, projects that--
``(A)(i) improve the maintenance of existing
infrastructure;
``(ii) implement stewardship objectives that enhance forest
ecosystems; and
``(iii) restore and improve land health and water quality;
``(B) enjoy broad-based support; and
``(C) have objectives that may include--
``(i) road, trail, and infrastructure maintenance or
obliteration;
``(ii) soil productivity improvement;
``(iii) improvements in forest ecosystem health;
``(iv) watershed restoration and maintenance;
``(v) the restoration, maintenance, and improvement of
wildlife and fish habitat;
``(vi) the control of noxious and exotic weeds; and
``(vii) the reestablishment of native species; and
``(3) to improve cooperative relationships among--
``(A) the people that use and care for Federal land; and
``(B) the agencies that manage the Federal land.
``SEC. 3. DEFINITIONS.
``In this Act:
``(1) Adjusted share.--The term `adjusted share' means the
number equal to the quotient obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the base share for the eligible county; by
``(ii) the income adjustment for the eligible county; by
``(B) the number equal to the sum of the quotients obtained
under subparagraph (A) and paragraph (8)(A) for all eligible
counties.
``(2) Base share.--The term `base share' means the number
equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land described in
paragraph (7)(A) in each eligible county; by
``(ii) the total number acres of Federal land in all
eligible counties in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of the 3 highest 25-
percent payments and safety net payments made to each
eligible State for each eligible county during the
eligibility period; by
``(ii) the amount equal to the sum of the amounts
calculated under clause (i) and paragraph (9)(B)(i) for all
eligible counties in all eligible States during the
eligibility period.
``(3) County payment.--The term `county payment' means the
payment for an eligible county calculated under section
101(b).
``(4) Eligible county.--The term `eligible county' means
any county that--
``(A) contains Federal land (as defined in paragraph (7));
and
``(B) elects to receive a share of the State payment or the
county payment under section 102(b).
``(5) Eligibility period.--The term `eligibility period'
means fiscal year 1986 through fiscal year 1999.
``(6) Eligible state.--The term `eligible State' means a
State or territory of the United States that received a 25-
percent payment for 1 or more fiscal years of the eligibility
period.
``(7) Federal land.--The term `Federal land' means--
``(A) land within the National Forest System, as defined in
section 11(a) of the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C. 1609(a)) exclusive of the
National Grasslands and land utilization projects designated
as National Grasslands administered pursuant to the Act of
July 22, 1937 (7 U.S.C. 1010-1012); and
``(B) such portions of the revested Oregon and California
Railroad and reconveyed Coos Bay Wagon Road grant land as are
or may hereafter come under the jurisdiction of the
Department of the Interior, which have heretofore or may
hereafter be classified as timberlands, and power-site land
valuable for timber, that shall be managed, except as
provided in the former section 3 of the Act of August 28,
1937 (50 Stat. 875; 43 U.S.C. 1181c), for permanent forest
production.
``(8) 50-Percent adjusted share.--The term `50-percent
adjusted share' means the number equal to the quotient
obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the 50-percent base share for the eligible county; by
``(ii) the income adjustment for the eligible county; by
``(B) the number equal to the sum of the quotients obtained
under subparagraph (A) and paragraph (1)(A) for all eligible
counties.
``(9) 50-Percent base share.--The term `50-percent base
share' means the number equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land described in
paragraph (7)(B) in each eligible county; by
``(ii) the total number acres of Federal land in all
eligible counties in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of the 3 highest 50-
percent payments made to each
[[Page S5614]]
eligible county during the eligibility period; by
``(ii) the amount equal to the sum of the amounts
calculated under clause (i) and paragraph (2)(B)(i) for all
eligible counties in all eligible States during the
eligibility period.
``(10) 50-percent payment.--The term `50-percent payment'
means the payment that is the sum of the 50-percent share
otherwise paid to a county pursuant to title II of the Act of
August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f),
and the payment made to a county pursuant to the Act of May
24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et
seq.).
``(11) Full funding amount.--The term `full funding amount'
means--
``(A) $500,000,000 for fiscal year 2008; and
``(B) for fiscal year 2009 and each fiscal year thereafter,
the amount that is equal to 90 percent of the full funding
amount for the preceding fiscal year.
``(12) Income adjustment.--The term `income adjustment'
means the square of the quotient obtained by dividing--
``(A) the per capita personal income for each eligible
county; by
``(B) the median per capita personal income of all eligible
counties.
``(13) Per capita personal income.--The term `per capita
personal income' means the most recent per capita personal
income data, as determined by the Bureau of Economic
Analysis.
``(14) Safety net payments.--The term `safety net payments'
means the special payment amounts paid to States and counties
required by section 13982 or 13983 of the Omnibus Budget
Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500
note; 43 U.S.C. 1181f note).
``(15) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of Agriculture or the designee of the
Secretary of Agriculture with respect to the Federal land
described in paragraph (7)(A); and
``(B) the Secretary of the Interior or the designee of the
Secretary of the Interior with respect to the Federal land
described in paragraph (7)(B).
``(16) State payment.--The term `State payment' means the
payment for an eligible State calculated under section
101(a).
``(17) 25-Percent payment.--The term `25-percent payment'
means the payment to States required by the sixth paragraph
under the heading of `FOREST SERVICE' in the Act of May 23,
1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act
of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL
LAND
``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL
LAND.
``(a) State Payment.--For each of fiscal years 2008 through
2011, the Secretary of Agriculture shall calculate for each
eligible State an amount equal to the sum of the products
obtained by multiplying--
``(1) the adjusted share for each eligible county within
the eligible State; by
``(2) the full funding amount for the fiscal year.
``(b) County Payment.--For each of fiscal years 2008
through 2011, the Secretary of the Interior shall calculate
for each eligible county that received a 50-percent payment
during the eligibility period an amount equal to the product
obtained by multiplying--
``(1) the 50-percent adjusted share for the eligible
county; by
``(2) the full funding amount for the fiscal year.
``SEC. 102. PAYMENTS TO STATES AND COUNTIES.
``(a) Payment Amounts.--Except as provided in section 103,
the Secretary of the Treasury shall pay to--
``(1) a State or territory of the United States an amount
equal to the sum of the amounts elected under subsection (b)
by each county within the State or territory for--
``(A) if the county is eligible for the 25-percent payment,
the share of the 25-percent payment; or
``(B) the share of the State payment of the eligible
county; and
``(2) a county an amount equal to the amount elected under
subsection (b) by each county for--
``(A) if the county is eligible for the 50-percent payment,
the 50-percent payment; or
``(B) the county payment for the eligible county.
``(b) Election To Receive Payment Amount.--
``(1) Election; submission of results.--
``(A) In general.--The election to receive a share of the
State payment, the county payment, a share of the State
payment and the county payment, a share of the 25-percent
payment, the 50-percent payment, or a share of the 25-percent
payment and the 50-percent payment, as applicable, shall be
made at the discretion of each affected county by August 1,
2008, and August 1 of each second fiscal year thereafter, in
accordance with paragraph (2), and transmitted to the
Secretary concerned by the Governor of each eligible State.
``(B) Failure to transmit.--If an election for an affected
county is not transmitted to the Secretary concerned by the
date specified under subparagraph (A), the affected county
shall be considered to have elected to receive a share of the
State payment, the county payment, or a share of the State
payment and the county payment, as applicable.
``(2) Duration of election.--
``(A) In general.--A county election to receive a share of
the 25-percent payment or 50-percent payment, as applicable,
shall be effective for 2 fiscal years.
``(B) Full funding amount.--If a county elects to receive a
share of the State payment or the county payment, the
election shall be effective for all subsequent fiscal years
through fiscal year 2011.
``(3) Source of payment amounts.--The payment to an
eligible State or eligible county under this section for a
fiscal year shall be derived from--
``(A) any amounts that are appropriated to carry out this
Act;
``(B) any revenues, fees, penalties, or miscellaneous
receipts, exclusive of deposits to any relevant trust fund,
special account, or permanent operating funds, received by
the Federal Government from activities by the Bureau of Land
Management or the Forest Service on the applicable Federal
land; and
``(C) to the extent of any shortfall, out of any amounts in
the Treasury of the United States not otherwise appropriated.
``(c) Distribution and Expenditure of Payments.--
``(1) Distribution method.--A State that receives a payment
under subsection (a) for Federal land described in section
3(7)(A) shall distribute the appropriate payment amount among
the appropriate counties in the State in accordance with--
``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
``(B) section 13 of the Act of March 1, 1911 (36 Stat. 963;
16 U.S.C. 500).
``(2) Expenditure purposes.--Subject to subsection (d),
payments received by a State under subsection (a) and
distributed to counties in accordance with paragraph (1)
shall be expended as required by the laws referred to in
paragraph (1).
``(d) Expenditure Rules for Eligible Counties.--
``(1) Allocations.--
``(A) Use of portion in same manner as 25-percent payment
or 50-percent payment, as applicable.--Except as provided in
paragraph (3)(B), if an eligible county elects to receive its
share of the State payment or the county payment, not less
than 80 percent, but not more than 85 percent, of the funds
shall be expended in the same manner in which the 25-percent
payments or 50-percent payment, as applicable, are required
to be expended.
``(B) Election as to use of balance.--Except as provided in
subparagraph (C), an eligible county shall elect to do 1 or
more of the following with the balance of any funds not
expended pursuant to subparagraph (A):
``(i) Reserve any portion of the balance for projects in
accordance with title II.
``(ii) Reserve not more than 7 percent of the total share
for the eligible county of the State payment or the county
payment for projects in accordance with title III.
``(iii) Return the portion of the balance not reserved
under clauses (i) and (ii) to the Treasury of the United
States.
``(C) Counties with modest distributions.--In the case of
each eligible county to which more than $100,000, but less
than $350,000, is distributed for any fiscal year pursuant to
either or both of paragraphs (1)(B) and (2)(B) of subsection
(a), the eligible county, with respect to the balance of any
funds not expended pursuant to subparagraph (A) for that
fiscal year, shall--
``(i) reserve any portion of the balance for--
``(I) carrying out projects under title II;
``(II) carrying out projects under title III; or
``(III) a combination of the purposes described in
subclauses (I) and (II); or
``(ii) return the portion of the balance not reserved under
clause (i) to the Treasury of the United States.
``(2) Distribution of funds.--
``(A) In general.--Funds reserved by an eligible county
under subparagraph (B)(i) or (C)(i) of paragraph (1) for
carrying out projects under title II shall be deposited in a
special account in the Treasury of the United States.
``(B) Availability.--Amounts deposited under subparagraph
(A) shall--
``(i) be available for expenditure by the Secretary
concerned, without further appropriation; and
``(ii) remain available until expended in accordance with
title II.
``(3) Election.--
``(A) Notification.--
``(i) In general.--An eligible county shall notify the
Secretary concerned of an election by the eligible county
under this subsection not later than September 30 of each
fiscal year.
``(ii) Failure to elect.--Except as provided in
subparagraph (B), if the eligible county fails to make an
election by the date specified in clause (i), the eligible
county shall--
``(I) be considered to have elected to expend 85 percent of
the funds in accordance with paragraph (1)(A); and
``(II) return the balance to the Treasury of the United
States.
``(B) Counties with minor distributions.--In the case of
each eligible county to which less than $100,000 is
distributed for any fiscal year pursuant to either or both of
paragraphs (1)(B) and (2)(B) of subsection (a), the eligible
county may elect to expend all the funds in the same manner
in which the 25-percent payments or 50-percent payments, as
applicable, are required to be expended.
[[Page S5615]]
``(e) Time for Payment.--The payments required under this
section for a fiscal year shall be made as soon as
practicable after the end of that fiscal year.
``SEC. 103. TRANSITION PAYMENTS TO STATES.
``(a) Definitions.--In this section:
``(1) Adjusted amount.--The term `adjusted amount' means,
with respect to a covered State--
``(A) for fiscal year 2008, 90 percent of--
``(i) the sum of the amounts paid for fiscal year 2006
under section 102(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State
payment for fiscal year 2008; and
``(ii) the sum of the amounts paid for fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2008;
``(B) for fiscal year 2009, 76 percent of--
``(i) the sum of the amounts paid for fiscal year 2006
under section 102(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State
payment for fiscal year 2009; and
``(ii) the sum of the amounts paid for fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2009; and
``(C) for fiscal year 2010, 65 percent of--
``(i) the sum of the amounts paid for fiscal year 2006
under section 102(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State
payment for fiscal year 2010; and
``(ii) the sum of the amounts paid for fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2010.
``(2) Covered state.--The term `covered State' means each
of the States of California, Louisiana, Oregon, Pennsylvania,
South Carolina, South Dakota, Texas, and Washington.
``(b) Transition Payments.--For each of fiscal years 2008
through 2010, in lieu of the payment amounts that otherwise
would have been made under paragraphs (1)(B) and (2)(B) of
section 102(a), the Secretary of the Treasury shall pay the
adjusted amount to each covered State and the eligible
counties within the covered State, as applicable.
``(c) Distribution of Adjusted Amount.--Except as provided
in subsection (d), it is the intent of Congress that the
method of distributing the payments under subsection (b)
among the counties in the covered States for each of fiscal
years 2008 through 2010 be in the same proportion that the
payments were distributed to the eligible counties in fiscal
year 2006.
``(d) Distribution of Payments in California.--The
following payments shall be distributed among the eligible
counties in the State of California in the same proportion
that payments under section 102(a)(2) (as in effect on
September 29, 2006) were distributed to the eligible counties
for fiscal year 2006:
``(1) Payments to the State of California under subsection
(b).
``(2) The shares of the eligible counties of the State
payment for California under section 102 for fiscal year
2011.
``(e) Treatment of Payments.--For purposes of this Act, any
payment made under subsection (b) shall be considered to be a
payment made under section 102(a).
``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND
``SEC. 201. DEFINITIONS.
``In this title:
``(1) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received
under section 102 in accordance with this title.
``(2) Project funds.--The term `project funds' means all
funds an eligible county elects under section 102(d) to
reserve for expenditure in accordance with this title.
``(3) Resource advisory committee.--The term `resource
advisory committee' means--
``(A) an advisory committee established by the Secretary
concerned under section 205; or
``(B) an advisory committee determined by the Secretary
concerned to meet the requirements of section 205.
``(4) Resource management plan.--The term `resource
management plan' means--
``(A) a land use plan prepared by the Bureau of Land
Management for units of the Federal land described in section
3(7)(B) pursuant to section 202 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1712); or
``(B) a land and resource management plan prepared by the
Forest Service for units of the National Forest System
pursuant to section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974l (16 U.S.C. 1604).
``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.
``(a) Limitation.--Project funds shall be expended solely
on projects that meet the requirements of this title.
``(b) Authorized Uses.--Project funds may be used by the
Secretary concerned for the purpose of entering into and
implementing cooperative agreements with willing Federal
agencies, State and local governments, private and nonprofit
entities, and landowners for protection, restoration, and
enhancement of fish and wildlife habitat, and other resource
objectives consistent with the purposes of this Act on
Federal land and on non-Federal land where projects would
benefit the resources on Federal land.
``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.
``(a) Submission of Project Proposals to Secretary
Concerned.--
``(1) Projects funded using project funds.--Not later than
September 30 for fiscal year 2008, and each September 30
thereafter for each succeeding fiscal year through fiscal
year 2011, each resource advisory committee shall submit to
the Secretary concerned a description of any projects that
the resource advisory committee proposes the Secretary
undertake using any project funds reserved by eligible
counties in the area in which the resource advisory committee
has geographic jurisdiction.
``(2) Projects funded using other funds.--A resource
advisory committee may submit to the Secretary concerned a
description of any projects that the committee proposes the
Secretary undertake using funds from State or local
governments, or from the private sector, other than project
funds and funds appropriated and otherwise available to do
similar work.
``(3) Joint projects.--Participating counties or other
persons may propose to pool project funds or other funds,
described in paragraph (2), and jointly propose a project or
group of projects to a resource advisory committee
established under section 205.
``(b) Required Description of Projects.--In submitting
proposed projects to the Secretary concerned under subsection
(a), a resource advisory committee shall include in the
description of each proposed project the following
information:
``(1) The purpose of the project and a description of how
the project will meet the purposes of this title.
``(2) The anticipated duration of the project.
``(3) The anticipated cost of the project.
``(4) The proposed source of funding for the project,
whether project funds or other funds.
``(5)(A) Expected outcomes, including how the project will
meet or exceed desired ecological conditions, maintenance
objectives, or stewardship objectives.
``(B) An estimate of the amount of any timber, forage, and
other commodities and other economic activity, including jobs
generated, if any, anticipated as part of the project.
``(6) A detailed monitoring plan, including funding needs
and sources, that--
``(A) tracks and identifies the positive or negative
impacts of the project, implementation, and provides for
validation monitoring; and
``(B) includes an assessment of the following:
``(i) Whether or not the project met or exceeded desired
ecological conditions; created local employment or training
opportunities, including summer youth jobs programs such as
the Youth Conservation Corps where appropriate.
``(ii) Whether the project improved the use of, or added
value to, any products removed from land consistent with the
purposes of this title.
``(7) An assessment that the project is to be in the public
interest.
``(c) Authorized Projects.--Projects proposed under
subsection (a) shall be consistent with section 2.
``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY
CONCERNED.
``(a) Conditions for Approval of Proposed Project.--The
Secretary concerned may make a decision to approve a project
submitted by a resource advisory committee under section 203
only if the proposed project satisfies each of the following
conditions:
``(1) The project complies with all applicable Federal laws
(including regulations).
``(2) The project is consistent with the applicable
resource management plan and with any watershed or subsequent
plan developed pursuant to the resource management plan and
approved by the Secretary concerned.
``(3) The project has been approved by the resource
advisory committee in accordance with section 205, including
the procedures issued under subsection (e) of that section.
``(4) A project description has been submitted by the
resource advisory committee to the Secretary concerned in
accordance with section 203.
``(5) The project will improve the maintenance of existing
infrastructure, implement stewardship objectives that enhance
forest ecosystems, and restore and improve land health and
water quality.
``(b) Environmental Reviews.--
``(1) Request for payment by county.--The Secretary
concerned may request the resource advisory committee
submitting a proposed project to agree to the use of project
funds to pay for any environmental review, consultation, or
compliance with applicable environmental laws required in
connection with the project.
``(2) Conduct of environmental review.--If a payment is
requested under paragraph (1) and the resource advisory
committee agrees to the expenditure of funds for this
purpose, the Secretary concerned shall conduct environmental
review, consultation, or other compliance responsibilities in
accordance with Federal laws (including regulations).
[[Page S5616]]
``(3) Effect of refusal to pay.--
``(A) In general.--If a resource advisory committee does
not agree to the expenditure of funds under paragraph (1),
the project shall be deemed withdrawn from further
consideration by the Secretary concerned pursuant to this
title.
``(B) Effect of withdrawal.--A withdrawal under
subparagraph (A) shall be deemed to be a rejection of the
project for purposes of section 207(c).
``(c) Decisions of Secretary Concerned.--
``(1) Rejection of projects.--
``(A) In general.--A decision by the Secretary concerned to
reject a proposed project shall be at the sole discretion of
the Secretary concerned.
``(B) No administrative appeal or judicial review.--
Notwithstanding any other provision of law, a decision by the
Secretary concerned to reject a proposed project shall not be
subject to administrative appeal or judicial review.
``(C) Notice of rejection.--Not later than 30 days after
the date on which the Secretary concerned makes the rejection
decision, the Secretary concerned shall notify in writing the
resource advisory committee that submitted the proposed
project of the rejection and the reasons for rejection.
``(2) Notice of project approval.--The Secretary concerned
shall publish in the Federal Register notice of each project
approved under subsection (a) if the notice would be required
had the project originated with the Secretary.
``(d) Source and Conduct of Project.--Once the Secretary
concerned accepts a project for review under section 203, the
acceptance shall be deemed a Federal action for all purposes.
``(e) Implementation of Approved Projects.--
``(1) Cooperation.--Notwithstanding chapter 63 of title 31,
United States Code, using project funds the Secretary
concerned may enter into contracts, grants, and cooperative
agreements with States and local governments, private and
nonprofit entities, and landowners and other persons to
assist the Secretary in carrying out an approved project.
``(2) Best value contracting.--
``(A) In general.--For any project involving a contract
authorized by paragraph (1) the Secretary concerned may elect
a source for performance of the contract on a best value
basis.
``(B) Factors.--The Secretary concerned shall determine
best value based on such factors as--
``(i) the technical demands and complexity of the work to
be done;
``(ii)(I) the ecological objectives of the project; and
``(II) the sensitivity of the resources being treated;
``(iii) the past experience by the contractor with the type
of work being done, using the type of equipment proposed for
the project, and meeting or exceeding desired ecological
conditions; and
``(iv) the commitment of the contractor to hiring highly
qualified workers and local residents.
``(3) Merchantable timber contracting pilot program.--
``(A) Establishment.--The Secretary concerned shall
establish a pilot program to implement a certain percentage
of approved projects involving the sale of merchantable
timber using separate contracts for--
``(i) the harvesting or collection of merchantable timber;
and
``(ii) the sale of the timber.
``(B) Annual percentages.--Under the pilot program, the
Secretary concerned shall ensure that, on a nationwide basis,
not less than the following percentage of all approved
projects involving the sale of merchantable timber are
implemented using separate contracts:
``(i) For fiscal year 2008, 35 percent.
``(ii) For fiscal year 2009, 45 percent.
``(iii) For each of fiscal years 2010 and 2011, 50 percent.
``(C) Inclusion in pilot program.--The decision whether to
use separate contracts to implement a project involving the
sale of merchantable timber shall be made by the Secretary
concerned after the approval of the project under this title.
``(D) Assistance.--
``(i) In general.--The Secretary concerned may use funds
from any appropriated account available to the Secretary for
the Federal land to assist in the administration of projects
conducted under the pilot program.
``(ii) Maximum amount of assistance.--The total amount
obligated under this subparagraph may not exceed $1,000,000
for any fiscal year during which the pilot program is in
effect.
``(E) Review and report.--
``(i) Initial report.--Not later than September 30, 2010,
the Comptroller General shall submit to the Committees on
Agriculture, Nutrition, and Forestry and Energy and Natural
Resources of the Senate and the Committees on Agriculture and
Natural Resources of the House of Representatives a report
assessing the pilot program.
``(ii) Annual report.--The Secretary concerned shall submit
to the Committees on Agriculture, Nutrition, and Forestry and
Energy and Natural Resources of the Senate and the Committees
on Agriculture and Natural Resources of the House of
Representatives an annual report describing the results of
the pilot program.
``(f) Requirements for Project Funds.--The Secretary shall
ensure that at least 50 percent of all project funds be used
for projects that are primarily dedicated--
``(1) to road maintenance, decommissioning, or
obliteration; or
``(2) to restoration of streams and watersheds.
``SEC. 205. RESOURCE ADVISORY COMMITTEES.
``(a) Establishment and Purpose of Resource Advisory
Committees.--
``(1) Establishment.--The Secretary concerned shall
establish and maintain resource advisory committees to
perform the duties in subsection (b), except as provided in
paragraph (4).
``(2) Purpose.--The purpose of a resource advisory
committee shall be--
``(A) to improve collaborative relationships; and
``(B) to provide advice and recommendations to the land
management agencies consistent with the purposes of this
title.
``(3) Access to resource advisory committees.--To ensure
that each unit of Federal land has access to a resource
advisory committee, and that there is sufficient interest in
participation on a committee to ensure that membership can be
balanced in terms of the points of view represented and the
functions to be performed, the Secretary concerned may,
establish resource advisory committees for part of, or 1 or
more, units of Federal land.
``(4) Existing advisory committees.--
``(A) In general.--An advisory committee that meets the
requirements of this section, a resource advisory committee
established before September 29, 2006, or an advisory
committee determined by the Secretary concerned before
September 29, 2006, to meet the requirements of this section
may be deemed by the Secretary concerned to be a resource
advisory committee for the purposes of this title.
``(B) Charter.--A charter for a committee described in
subparagraph (A) that was filed on or before September 29,
2006, shall be considered to be filed for purposes of this
Act.
``(C) Bureau of land management advisory committees.--The
Secretary of the Interior may deem a resource advisory
committee meeting the requirements of subpart 1784 of part
1780 of title 43, Code of Federal Regulations, as a resource
advisory committee for the purposes of this title.
``(b) Duties.--A resource advisory committee shall--
``(1) review projects proposed under this title by
participating counties and other persons;
``(2) propose projects and funding to the Secretary
concerned under section 203;
``(3) provide early and continuous coordination with
appropriate land management agency officials in recommending
projects consistent with purposes of this Act under this
title;
``(4) provide frequent opportunities for citizens,
organizations, tribes, land management agencies, and other
interested parties to participate openly and meaningfully,
beginning at the early stages of the project development
process under this title;
``(5)(A) monitor projects that have been approved under
section 204; and
``(B) advise the designated Federal official on the
progress of the monitoring efforts under subparagraph (A);
and
``(6) make recommendations to the Secretary concerned for
any appropriate changes or adjustments to the projects being
monitored by the resource advisory committee.
``(c) Appointment by the Secretary.--
``(1) Appointment and term.--
``(A) In general.--The Secretary concerned, shall appoint
the members of resource advisory committees for a term of 4
years beginning on the date of appointment.
``(B) Reappointment.--The Secretary concerned may reappoint
members to subsequent 4-year terms.
``(2) Basic requirements.--The Secretary concerned shall
ensure that each resource advisory committee established
meets the requirements of subsection (d).
``(3) Initial appointment.--Not later than 180 days after
the date of the enactment of this Act, the Secretary
concerned shall make initial appointments to the resource
advisory committees.
``(4) Vacancies.--The Secretary concerned shall make
appointments to fill vacancies on any resource advisory
committee as soon as practicable after the vacancy has
occurred.
``(5) Compensation.--Members of the resource advisory
committees shall not receive any compensation.
``(d) Composition of Advisory Committee.--
``(1) Number.--Each resource advisory committee shall be
comprised of 15 members.
``(2) Community interests represented.--Committee members
shall be representative of the interests of the following 3
categories:
``(A) 5 persons that--
``(i) represent organized labor or non-timber forest
product harvester groups;
``(ii) represent developed outdoor recreation, off highway
vehicle users, or commercial recreation activities;
``(iii) represent--
``(I) energy and mineral development interests; or
``(II) commercial or recreational fishing interests;
``(iv) represent the commercial timber industry; or
``(v) hold Federal grazing or other land use permits, or
represent nonindustrial private forest land owners, within
the area for which the committee is organized.
[[Page S5617]]
``(B) 5 persons that represent--
``(i) nationally recognized environmental organizations;
``(ii) regionally or locally recognized environmental
organizations;
``(iii) dispersed recreational activities;
``(iv) archaeological and historical interests; or
``(v) nationally or regionally recognized wild horse and
burro interest groups, wildlife or hunting organizations, or
watershed associations.
``(C) 5 persons that--
``(i) hold State elected office (or a designee);
``(ii) hold county or local elected office;
``(iii) represent American Indian tribes within or adjacent
to the area for which the committee is organized;
``(iv) are school officials or teachers; or
``(v) represent the affected public at large.
``(3) Balanced representation.--In appointing committee
members from the 3 categories in paragraph (2), the Secretary
concerned shall provide for balanced and broad representation
from within each category.
``(4) Geographic distribution.--The members of a resource
advisory committee shall reside within the State in which the
committee has jurisdiction and, to extent practicable, the
Secretary concerned shall ensure local representation in each
category in paragraph (2).
``(5) Chairperson.--A majority on each resource advisory
committee shall select the chairperson of the committee.
``(e) Approval Procedures.--
``(1) In general.--Subject to paragraph (3), each resource
advisory committee shall establish procedures for proposing
projects to the Secretary concerned under this title.
``(2) Quorum.--A quorum must be present to constitute an
official meeting of the committee.
``(3) Approval by majority of members.--A project may be
proposed by a resource advisory committee to the Secretary
concerned under section 203(a), if the project has been
approved by a majority of members of the committee from each
of the 3 categories in subsection (d)(2).
``(f) Other Committee Authorities and Requirements.--
``(1) Staff assistance.--A resource advisory committee may
submit to the Secretary concerned a request for periodic
staff assistance from Federal employees under the
jurisdiction of the Secretary.
``(2) Meetings.--All meetings of a resource advisory
committee shall be announced at least 1 week in advance in a
local newspaper of record and shall be open to the public.
``(3) Records.--A resource advisory committee shall
maintain records of the meetings of the committee and make
the records available for public inspection.
``SEC. 206. USE OF PROJECT FUNDS.
``(a) Agreement Regarding Schedule and Cost of Project.--
``(1) Agreement between parties.--The Secretary concerned
may carry out a project submitted by a resource advisory
committee under section 203(a) using project funds or other
funds described in section 203(a)(2), if, as soon as
practicable after the issuance of a decision document for the
project and the exhaustion of all administrative appeals and
judicial review of the project decision, the Secretary
concerned and the resource advisory committee enter into an
agreement addressing, at a minimum, the following:
``(A) The schedule for completing the project.
``(B) The total cost of the project, including the level of
agency overhead to be assessed against the project.
``(C) For a multiyear project, the estimated cost of the
project for each of the fiscal years in which it will be
carried out.
``(D) The remedies for failure of the Secretary concerned
to comply with the terms of the agreement consistent with
current Federal law.
``(2) Limited use of federal funds.--The Secretary
concerned may decide, at the sole discretion of the Secretary
concerned, to cover the costs of a portion of an approved
project using Federal funds appropriated or otherwise
available to the Secretary for the same purposes as the
project.
``(b) Transfer of Project Funds.--
``(1) Initial transfer required.--As soon as practicable
after the agreement is reached under subsection (a) with
regard to a project to be funded in whole or in part using
project funds, or other funds described in section 203(a)(2),
the Secretary concerned shall transfer to the applicable unit
of National Forest System land or Bureau of Land Management
District an amount of project funds equal to--
``(A) in the case of a project to be completed in a single
fiscal year, the total amount specified in the agreement to
be paid using project funds, or other funds described in
section 203(a)(2); or
``(B) in the case of a multiyear project, the amount
specified in the agreement to be paid using project funds, or
other funds described in section 203(a)(2) for the first
fiscal year.
``(2) Condition on project commencement.--The unit of
National Forest System land or Bureau of Land Management
District concerned, shall not commence a project until the
project funds, or other funds described in section 203(a)(2)
required to be transferred under paragraph (1) for the
project, have been made available by the Secretary concerned.
``(3) Subsequent transfers for multi year projects.--
``(A) In general.--For the second and subsequent fiscal
years of a multiyear project to be funded in whole or in part
using project funds, the unit of National Forest System land
or Bureau of Land Management District concerned shall use the
amount of project funds required to continue the project in
that fiscal year according to the agreement entered into
under subsection (a).
``(B) Suspension of work.--The Secretary concerned shall
suspend work on the project if the project funds required by
the agreement in the second and subsequent fiscal years are
not available.
``SEC. 207. AVAILABILITY OF PROJECT FUNDS.
``(a) Submission of Proposed Projects To Obligate Funds.--
By September 30 of each fiscal year through fiscal year 2011,
a resource advisory committee shall submit to the Secretary
concerned pursuant to section 203(a)(1) a sufficient number
of project proposals that, if approved, would result in the
obligation of at least the full amount of the project funds
reserved by the participating county in the preceding fiscal
year.
``(b) Use or Transfer of Unobligated Funds.--Subject to
section 208, if a resource advisory committee fails to comply
with subsection (a) for a fiscal year, any project funds
reserved by the participating county in the preceding fiscal
year and remaining unobligated shall be available for use as
part of the project submissions in the next fiscal year.
``(c) Effect of Rejection of Projects.--Subject to section
208, any project funds reserved by a participating county in
the preceding fiscal year that are unobligated at the end of
a fiscal year because the Secretary concerned has rejected
one or more proposed projects shall be available for use as
part of the project submissions in the next fiscal year.
``(d) Effect of Court Orders.--
``(1) In general.--If an approved project under this Act is
enjoined or prohibited by a Federal court, the Secretary
concerned shall return the unobligated project funds related
to the project to the participating county or counties that
reserved the funds.
``(2) Expenditure of funds.--The returned funds shall be
available for the county to expend in the same manner as the
funds reserved by the county under subparagraph (B) or (C)(i)
of section 102(d)(1).
``SEC. 208. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under
this title shall terminate on September 30, 2011.
``(b) Deposits in Treasury.--Any project funds not
obligated by September 30, 2012, shall be deposited in the
Treasury of the United States.
``TITLE III--COUNTY FUNDS
``SEC. 301. DEFINITIONS.
``In this title:
``(1) County funds.--The term `county funds' means all
funds an eligible county elects under section 102(d) to
reserve for expenditure in accordance with this title.
``(2) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received
under section 102 in accordance with this title.
``SEC. 302. USE.
``(a) Authorized Uses.--A participating county, including
any applicable agencies of the participating county, shall
use county funds, in accordance with this title, only--
``(1) to carry out activities under the Firewise
Communities program to provide to homeowners in fire-
sensitive ecosystems education on, and assistance with
implementing, techniques in home siting, home construction,
and home landscaping that can increase the protection of
people and property from wildfires;
``(2) to reimburse the participating county for search and
rescue and other emergency services, including firefighting,
that are--
``(A) performed on Federal land after the date on which the
use was approved under subsection (b);
``(B) paid for by the participating county; and
``(3) to develop community wildfire protection plans in
coordination with the appropriate Secretary concerned.
``(b) Proposals.--A participating county shall use county
funds for a use described in subsection (a) only after a 45-
day public comment period, at the beginning of which the
participating county shall--
``(1) publish in any publications of local record a
proposal that describes the proposed use of the county funds;
and
``(2) submit the proposal to any resource advisory
committee established under section 205 for the participating
county.
``SEC. 303. CERTIFICATION.
``(a) In General.--Not later than February 1 of the year
after the year in which any county funds were expended by a
participating county, the appropriate official of the
participating county shall submit to the Secretary concerned
a certification that the county funds expended in the
applicable year have been used for the uses authorized under
section 302(a), including a description of the amounts
expended and the uses for which the amounts were expended.
``(b) Review.--The Secretary concerned shall review the
certifications submitted under subsection (a) as the
Secretary concerned determines to be appropriate.
``SEC. 304. TERMINATION OF AUTHORITY.
``(a) In General.--The authority to initiate projects under
this title terminates on September 30, 2011.
[[Page S5618]]
``(b) Availability.--Any county funds not obligated by
September 30, 2012, shall be returned to the Treasury of the
United States.
``TITLE IV--MISCELLANEOUS PROVISIONS
``SEC. 401. REGULATIONS.
``The Secretary of Agriculture and the Secretary of the
Interior shall issue regulations to carry out the purposes of
this Act.
``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this Act for each of fiscal years 2008
through 2011.
``SEC. 403. TREATMENT OF FUNDS AND REVENUES.
``(a) Relation to Other Appropriations.--Funds made
available under section 402 and funds made available to a
Secretary concerned under section 206 shall be in addition to
any other annual appropriations for the Forest Service and
the Bureau of Land Management.
``(b) Deposit of Revenues and Other Funds.--All revenues
generated from projects pursuant to title II, including any
interest accrued from the revenues, shall be deposited in the
Treasury of the United States.''.
(b) Forest Receipt Payments to Eligible States and
Counties.--
(1) Act of may 23, 1908.--The sixth paragraph under the
heading ``FOREST SERVICE'' in the Act of May 23, 1908 (16
U.S.C. 500) is amended in the first sentence by striking
``twenty-five percentum'' and all that follows through
``shall be paid'' and inserting the following: ``an amount
equal to the annual average of 25 percent of all amounts
received for the applicable fiscal year and each of the
preceding 6 fiscal years from each national forest shall be
paid''.
(2) Weeks law.--Section 13 of the Act of March 1, 1911
(commonly known as the ``Weeks Law'') (16 U.S.C. 500) is
amended in the first sentence by striking ``twenty-five
percentum'' and all that follows through ``shall be paid''
and inserting the following: ``an amount equal to the annual
average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal
years from each national forest shall be paid''.
(c) Payments in Lieu of Taxes.--
(1) In general.--Section 6906 of title 31, United States
Code, is amended to read as follows:
``Sec. 6906. Funding
``For each of fiscal years 2008 through 2012--
``(1) each county or other eligible unit of local
government shall be entitled to payment under this chapter;
and
``(2) sums shall be made available to the Secretary of the
Interior for obligation or expenditure in accordance with
this chapter.''.
(2) Conforming amendment.--The table of sections for
chapter 69 of title 31, United States Code, is amended by
striking the item relating to section 6906 and inserting the
following:
``6906. Funding.''.
(3) Budget scorekeeping.--
(A) In general.--Notwithstanding the Budget Scorekeeping
Guidelines and the accompanying list of programs and accounts
set forth in the joint explanatory statement of the committee
of conference accompanying Conference Report 105-217, the
section in this title regarding Payments in Lieu of Taxes
shall be treated in the baseline for purposes of section 257
of the Balanced Budget and Emergency Deficit Control Act of
1985 (as in effect prior to September 30, 2002), and by the
Chairmen of the House and Senate Budget Committees, as
appropriate, for purposes of budget enforcement in the House
and Senate, and under the Congressional Budget Act of 1974 as
if Payment in Lieu of Taxes (14-1114-0-1-806) were an account
designated as Appropriated Entitlements and Mandatories for
Fiscal Year 1997 in the joint explanatory statement of the
committee of conference accompanying Conference Report 105-
217.
(B) Effective date.--This paragraph shall remain in effect
for the fiscal years to which the entitlement in section 6906
of title 31, United States Code (as amended by paragraph
(1)), applies.
SEC. 342. CLARIFICATION OF UNIFORM DEFINITION OF CHILD.
(a) Child Must Be Younger Than Claimant.--Section
152(c)(3)(A) (relating to age requirements) is amended by
inserting ``is younger than the taxpayer claiming such
individual as a qualifying child and'' after ``such
individual''.
(b) Child Must Be Unmarried.--Section 152(c)(1) (relating
to qualifying child) 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) who has not filed a joint return (other than only for
a claim of refund) with the individual's spouse under section
6013 for the taxable year beginning in the calendar year in
which the taxable year of the taxpayer begins.''.
(c) Restrict Qualifying Child Tax Benefits to Child's
Parent.--
(1) Child tax credit.--Subsection (a) of section 24
(relating to child tax credit) is amended by inserting ``for
which the taxpayer is allowed a deduction under section 151''
after ``of the taxpayer''.
(2) Persons other than parents claiming qualifying child.--
(A) In general.--Paragraph (4) of section 152(c) is amended
by adding at the end the following new subparagraph:
``(C) No parent claiming qualifying child.--If the parents
of an individual may claim such individual as a qualifying
child but no parent so claims the individual, such individual
may be claimed as the qualifying child of another taxpayer
but only if the adjusted gross income of such taxpayer is
higher than the highest adjusted gross income of any parent
of the individual.''.
(B) Conforming amendments.--
(i) Subparagraph (A) of section 152(c)(4) is amended by
striking ``Except'' through ``2 or more taxpayers'' and
inserting ``Except as provided in subparagraphs (B) and (C),
if (but for this paragraph) an individual may be claimed as a
qualifying child by 2 or more taxpayers''.
(ii) The heading for paragraph (4) of section 152(c) is
amended by striking ``claiming'' and inserting ``who can
claim the same''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
TITLE IV--REVENUE PROVISIONS
SEC. 401. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN TAX
INDIFFERENT PARTIES.
(a) In General.--Subpart B of part II of subchapter E of
chapter 1 is amended by inserting after section 457 the
following new section:
``SEC. 457A. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN
TAX INDIFFERENT PARTIES.
``(a) In General.--Any compensation which is deferred under
a nonqualified deferred compensation plan of a nonqualified
entity shall be includible in gross income when there is no
substantial risk of forfeiture of the rights to such
compensation.
``(b) Nonqualified Entity.--For purposes of this section,
the term `nonqualified entity' means--
``(1) any foreign corporation unless substantially all of
its income is--
``(A) effectively connected with the conduct of a trade or
business in the United States, or
``(B) subject to a comprehensive foreign income tax, and
``(2) any partnership unless substantially all of its
income is allocated to persons other than--
``(A) foreign persons with respect to whom such income is
not subject to a comprehensive foreign income tax, and
``(B) organizations which are exempt from tax under this
title.
``(c) Determinability of Amounts of Compensation.--
``(1) In general.--If the amount of any compensation is not
determinable at the time that such compensation is otherwise
includible in gross income under subsection (a)--
``(A) such amount shall be so includible in gross income
when determinable, and
``(B) the tax imposed under this chapter for the taxable
year in which such compensation is includible in gross income
shall be increased by the sum of--
``(i) the amount of interest determined under paragraph
(2), and
``(ii) an amount equal to 20 percent of the amount of such
compensation.
``(2) Interest.--For purposes of paragraph (1)(B)(i), the
interest determined under this paragraph for any taxable year
is the amount of interest at the underpayment rate under
section 6621 plus 1 percentage point on the underpayments
that would have occurred had the deferred compensation been
includible in gross income for the taxable year in which
first deferred or, if later, the first taxable year in which
such deferred compensation is not subject to a substantial
risk of forfeiture.
``(d) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Substantial risk of forfeiture.--
``(A) In general.--The rights of a person to compensation
shall be treated as subject to a substantial risk of
forfeiture only if such person's rights to such compensation
are conditioned upon the future performance of substantial
services by any individual.
``(B) Exception for compensation based on gain recognized
on an investment asset.--
``(i) In general.--To the extent provided in regulations
prescribed by the Secretary, if compensation is determined
solely by reference to the amount of gain recognized on the
disposition of an investment asset, such compensation shall
be treated as subject to a substantial risk of forfeiture
until the date of such disposition.
``(ii) Investment asset.--For purposes of clause (i), the
term `investment asset' means any single asset (other than an
investment fund or similar entity)--
``(I) acquired directly by an investment fund or similar
entity,
``(II) with respect to which such entity does not (nor does
any person related to such entity) participate in the active
management of such asset (or if such asset is an interest in
an entity, in the active management of the activities of such
entity), and
``(III) substantially all of any gain on the disposition of
which (other than such deferred compensation) is allocated to
investors in such entity.
``(iii) Coordination with special rule.--Paragraph (3)(B)
shall not apply to any compensation to which clause (i)
applies.
``(2) Comprehensive foreign income tax.--The term
`comprehensive foreign income tax' means, with respect to any
foreign person, the income tax of a foreign country if--
[[Page S5619]]
``(A) such person is eligible for the benefits of a
comprehensive income tax treaty between such foreign country
and the United States, or
``(B) such person demonstrates to the satisfaction of the
Secretary that such foreign country has a comprehensive
income tax.
``(3) Nonqualified deferred compensation plan.--
``(A) In general.--The term `nonqualified deferred
compensation plan' has the meaning given such term under
section 409A(d), except that such term shall include any plan
that provides a right to compensation based on the
appreciation in value of a specified number of equity units
of the service recipient.
``(B) Exception.--Compensation shall not be treated as
deferred for purposes of this section if the service provider
receives payment of such compensation not later than 12
months after the end of the taxable year of the service
recipient during which the right to the payment of such
compensation is no longer subject to a substantial risk of
forfeiture.
``(4) Exception for certain compensation with respect to
effectively connected income.--In the case a foreign
corporation with income which is taxable under section 882,
this section shall not apply to compensation which, had such
compensation had been paid in cash on the date that such
compensation ceased to be subject to a substantial risk of
forfeiture, would have been deductible by such foreign
corporation against such income.
``(5) Application of rules.--Rules similar to the rules of
paragraphs (5) and (6) of section 409A(d) shall apply.
``(e) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section, including regulations
disregarding a substantial risk of forfeiture in cases where
necessary to carry out the purposes of this section.''.
(b) Conforming Amendment.--Section 26(b)(2) is amended by
striking ``and'' at the end of subparagraph (U), by striking
the period at the end of subparagraph (V) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(W) section 457A(c)(1)(B) (relating to determinability of
amounts of compensation).''.
(c) Clerical Amendment.--The table of sections of subpart B
of part II of subchapter E of chapter 1 is amended by
inserting after the item relating to section 457 the
following new item:
``Sec. 457A. Nonqualified deferred compensation from certain tax
indifferent parties.''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to amounts deferred which are attributable to services
performed after December 31, 2008.
(2) Application to existing deferrals.--In the case of any
amount deferred to which the amendments made by this section
do not apply solely by reason of the fact that the amount is
attributable to services performed before January 1, 2009, to
the extent such amount is not includible in gross income in a
taxable year beginning before 2018, such amounts shall be
includible in gross income in the later of--
(A) the last taxable year beginning before 2018, or
(B) the taxable year in which there is no substantial risk
of forfeiture of the rights to such compensation (determined
in the same manner as determined for purposes of section 457A
of the Internal Revenue Code of 1986, as added by this
section).
(3) Charitable contributions of existing deferrals
permitted.--
(A) In general.--Subsection (b) of section 170 of the
Internal Revenue Code of 1986 shall not apply to (and
subsections (b) and (d) of such section shall be applied
without regard to) so much of the taxpayer's qualified
contributions made during the taxpayer's last taxable year
beginning before 2018 as does not exceed the taxpayer's
qualified inclusion amount. For purposes of subsection (b) of
section 170 of such Code, the taxpayer's contribution base
for such last taxable year shall be reduced by the amount of
the taxpayer's qualified contributions to which such
subsection does not apply by reason the preceding sentence.
(B) Qualified contributions.--For purposes of this
paragraph, the term ``qualified contributions'' means the
aggregate charitable contributions (as defined in section
170(c) of such Code) paid in cash by the taxpayer to
organizations described in section 170(b)(1)(A) of such Code
(other than any organization described in section 509(a)(3)
of such Code or any fund or account described in section
4966(d)(2) of such Code).
(C) Qualified inclusion amount.--For purposes of this
paragraph, the term ``qualified inclusion amount'' means the
amount includible in the taxpayer's gross income for the last
taxable year beginning before 2018 by reason of paragraph
(2).
(4) Accelerated payments.--No later than 120 days after the
date of the enactment of this Act, the Secretary shall issue
guidance providing a limited period of time during which a
nonqualified deferred compensation arrangement attributable
to services performed on or before December 31, 2008, may,
without violating the requirements of section 409A(a) of the
Internal Revenue Code of 1986, be amended to conform the date
of distribution to the date the amounts are required to be
included in income.
(5) Certain back-to-back arrangements.--If the taxpayer is
also a service recipient and maintains one or more
nonqualified deferred compensation arrangements for its
service providers under which any amount is attributable to
services performed on or before December 31, 2008, the
guidance issued under paragraph (4) shall permit such
arrangements to be amended to conform the dates of
distribution under such arrangement to the date amounts are
required to be included in the income of such taxpayer under
this subsection.
(6) Accelerated payment not treated as material
modification.--Any amendment to a nonqualified deferred
compensation arrangement made pursuant to paragraph (4) or
(5) shall not be treated as a material modification of the
arrangement for purposes of section 409A of the Internal
Revenue Code of 1986.
SEC. 402. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF
INTEREST.
(a) In General.--Paragraph (6) of section 864(f) is
amended--
(1) by striking ``December 31, 2008'' and inserting
``December 31, 2018'',
(2) by striking ``An election'' and inserting:
``(A) In general.--Except as provided in subparagraph (B),
an election'', and
(3) by adding at the end the following new subparagraph:
``(B) Earlier application for certain groups including
holding companies.--
``(i) In general.--Notwithstanding subparagraph (A), in the
case of an applicable worldwide affiliated group--
``(I) the common parent of the applicable worldwide
affiliated group may elect, for its first taxable year
beginning after December 31, 2008, to have paragraphs (1),
(2), and (3) apply to the applicable worldwide affiliated
group as if it were a separate worldwide affiliated group,
and
``(II) except as provided in clause (ii), such election
shall apply to such applicable worldwide affiliated group for
such taxable year and the 2 immediately succeeding taxable
years unless revoked with the consent of the Secretary.
Such election shall not preclude an election under
subparagraph (A) with respect to the worldwide affiliated
group to which such applicable worldwide affiliated group
relates.
``(ii) Limitation based on foreign assets.--This subsection
shall not apply to a taxable year for which the election
under clause (i) is otherwise in effect if the ratio
(expressed as a percentage) which the foreign assets of the
applicable worldwide affiliated group bear to all the assets
of the applicable worldwide affiliated group exceeds 3
percent at any time during such taxable year.
``(iii) Applicable worldwide affiliated group.--For
purposes of this subparagraph, the term `applicable worldwide
affiliated group' means, with respect to any worldwide
affiliated group (as defined in paragraph (1)(C)) the common
parent of which is an entity described in clause (i), (ii),
or (iii) of paragraph (4)(C), a separate group consisting of
those members of such worldwide affiliated group which--
``(I) are entities described in clause (i), (ii), or (iii)
of paragraph (4)(C), or are subsidiaries of such entities
substantially all of the activities of which are payroll,
asset holding, or other activities which are integrally
related to activities described in any such clause, and
``(II) were in existence, and were members of such group,
as of October 21, 2004.
``(iv) Guidance.--The Secretary may prescribe such guidance
as may be necessary to carry out the application of this
subparagraph, including guidance with respect to the proper
method for determining the ratio described in clause (ii) and
guidance to prevent avoidance of the purposes of this
subparagraph.''.
(b) Conforming Amendment.--Paragraph (5)(D) of section
864(f) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2018''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
SEC. 403. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
(a) Repeal of Adjustment for 2012.--Subparagraph (B) of
section 401(1) of the Tax Increase Prevention and
Reconciliation Act of 2005 is amended by striking the
percentage contained therein and inserting ``100 percent''.
(b) Modification of Adjustment for 2013.--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 37.75
percentage points.
______
By Mr. COLEMAN:
S. 3126. A bill to provide for the development of certain tradional
and alternative energy resources; and for other purposes; to the
Committee on Finance.
Mr. COLEMAN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
[[Page S5620]]
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Resource Development Act of 2008''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I--TRADITIONAL RESOURCES
Sec. 101. Revocation of withdrawal of certain areas of the outer
Continental Shelf.
Sec. 102. State authority to protect certain coastal areas.
Sec. 103. Production of oil and natural gas in new producing areas.
TITLE II--ALTERNATIVE RESOURCES
Subtitle A--Renewable Fuel and Advanced Energy Technology
Sec. 201. Energy Independence Trust Fund.
Sec. 202. Loan guarantees for renewable fuel pipelines.
Subtitle B--Clean Coal-Derived Fuels for Energy Security
Sec. 211. Definitions.
Sec. 212. Clean coal-derived fuel program.
Subtitle C--Nuclear Energy
Sec. 221. Incentives for innovative technologies.
Sec. 222. Authorization for Nuclear Power 2010 Program.
Sec. 223. Domestic manufacturing base for nuclear components and
equipment.
Sec. 224. Nuclear energy workforce.
Sec. 225. Investment tax credit for investments in nuclear power
facilities.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of
Energy.
TITLE I--TRADITIONAL RESOURCES
SEC. 101. REVOCATION OF WITHDRAWAL OF CERTAIN AREAS OF THE
OUTER CONTINENTAL SHELF.
The ``Memorandum on Withdrawal of Certain Areas of the
United States Outer Continental Shelf from Leasing
Disposition'', 34 Weekly Comp. Pres. Doc. 1111, dated June
12, 1998, is revoked and no longer in effect regarding any
area on the outer Continental Shelf covered by sections 104
and 105 of the Department of the Interior, Environment, and
Related Agencies Appropriations Act, 2008 (Public Law 110-
161; 121 Stat. 2118).
SEC. 102. STATE AUTHORITY TO PROTECT CERTAIN COASTAL AREAS.
Section 19 of the Outer Continental Shelf Lands Act (43
U.S.C. 1345) is amended by adding at the end the following:
``(f) Approval by Certain Affected States.--
``(1) Definition of affected state.--In this subsection,
the term `affected State' means a State that the Secretary,
in consultation with the Administrator of the Environmental
Protection Agency, determines could be affected negatively by
the potential environmental or economic impacts of a proposed
lease sale or proposed development and production plan under
this Act.
``(2) Notice to affected states.--Not later than 30 days
before the date of a proposed lease sale or the publication
of a proposed development and production plan, the Secretary
shall submit to the Governor of each affected State notice of
the proposed sale or plan.
``(3) Authorities of affected states.--Not later than 60
days after the date on which the Secretary provides to the
Governor of an affected State notice under paragraph (2), the
Governor of the affected State shall submit to the Secretary
a written response to the proposed sale or plan that--
``(A) specifies whether the Governor--
``(i) accepts the sale or plan as proposed;
``(ii) accepts the sale or plan with modification; or
``(iii) vetoes the proposed sale or plan; and
``(B) in the case of subparagraph (A)(ii), includes a
counterproposal that describes--
``(i) any proposed modifications to--
``(I) the proposed plan; or
``(II) the size, time, or location of the proposed sale;
and
``(ii) any areas off the coast of the State that the
Governor recommends for long-term protection in the form of a
moratorium on leasing for a period of not more than 20 years
based on--
``(I) any information in existence on the date of the
counterproposal concerning the geographical, geological, and
ecological characteristics of the areas proposed for
protection;
``(II) an equitable sharing of developmental benefits and
environmental risks among the areas;
``(III) the location of the areas with respect to--
``(aa) other uses of the sea and seabed in the areas,
including fisheries, navigation, existing or proposed
sealanes, potential sites of deepwater ports; and
``(bb) other anticipated uses of the resources and space of
other areas of the outer Continental Shelf;
``(IV) any relevant laws, goals, and policies of the State;
and
``(V) the relative environmental sensitivity and marine
productivity of other areas of the outer Continental Shelf.
``(4) Secretarial response.--
``(A) In general.--As soon as practicable after the
Secretary receives a counterproposal under paragraph (3)(B),
the Secretary, in consultation with the Secretary of Defense,
shall--
``(i) approve the counterproposal without modification;
``(ii) attempt to enter into an agreement with the Governor
to modify the counterproposal; or
``(iii) deny the counterproposal.
``(B) Approval of agreement.--To be valid, an agreement
entered into under subparagraph (A)(ii) requires the approval
of the Governor, the Secretary, and the Secretary of the
Defense.''.
SEC. 103. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING
AREAS.
The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) is amended by adding at the end the following:
``SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING
AREAS.
``(a) Definitions.--In this section:
``(1) Coastal political subdivision.--The term `coastal
political subdivision' means a political subdivision of a new
producing State any part of which political subdivision is--
``(A) within the coastal zone (as defined in section 304 of
the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of
the new producing State as of the date of enactment of this
section; and
``(B) not more than 200 nautical miles from the geographic
center of any leased tract.
``(2) Moratorium area.--
``(A) In general.--The term `moratorium area' means an area
covered by sections 104 through 105 of the Department of the
Interior, Environment, and Related Agencies Appropriations
Act, 2008 (Public Law 110-161; 121 Stat. 2118).
``(B) Exclusion.--The term `moratorium area' does not
include an area located in the Gulf of Mexico.
``(3) New producing area.--The term `new producing area'
means any moratorium area beyond the submerged land of a new
producing State.
``(4) New producing state.--The term `new producing State'
means a State that has received notice of a proposed lease
sale for a new producing area under section 19(f)(2).
``(5) Qualified outer continental shelf revenues.--
``(A) In general.--The term `qualified outer Continental
Shelf revenues' means all rentals, royalties, bonus bids, and
other sums due and payable to the United States from leases
entered into on or after the date of enactment of this
section for new producing areas.
``(B) Exclusions.--The term `qualified outer Continental
Shelf revenues' does not include--
``(i) revenues from a bond or other surety forfeited for
obligations other than the collection of royalties;
``(ii) revenues from civil penalties;
``(iii) royalties taken by the Secretary in-kind and not
sold;
``(iv) revenues generated from leases subject to section
8(g); or
``(v) any revenues considered qualified outer Continental
Shelf revenues under section 102 of the Gulf of Mexico Energy
Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-
432).
``(b) Availability for Leasing.--On approval by the new
producing State of a proposed lease sale for a new producing
area under section 19(f), the Secretary shall conduct the
proposed lease sale for the new producing area.
``(c) Disposition of Qualified Outer Continental Shelf
Revenues From New Producing Areas.--
``(1) In general.--Notwithstanding section 9 and subject to
the other provisions of this subsection, for each applicable
fiscal year, the Secretary of the Treasury shall deposit--
``(A) 50 percent of qualified outer Continental Shelf
revenues--
``(i) in the fund established by section 201 of the Energy
Resource Development Act of 2008; or
``(ii) if the Secretary of the Treasury determines that the
fund described in clause (i) is fully funded, in the general
fund of the Treasury; and
``(B) 50 percent of qualified outer Continental Shelf
revenues in a special account in the Treasury from which the
Secretary shall disburse--
``(i) 75 percent to new producing States in accordance with
paragraph (2); and
``(ii) 25 percent to provide financial assistance to States
in accordance with section 6 of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l -8), which
shall be considered income to the Land and Water Conservation
Fund for purposes of section 2 of that Act (16 U.S.C. 460l-
5).
``(2) Allocation to new producing states and coastal
political subdivisions.--
``(A) Allocation to new producing states.--Effective for
fiscal year 2008 and each fiscal year thereafter, the amount
made available under paragraph (1)(B)(i) shall be allocated
to each new producing State in amounts (based on a formula
established by the Secretary by regulation) proportional to
the amount of qualified outer Continental Shelf revenues
generated in the new producing area offshore each State.
``(B) Payments to coastal political subdivisions.--
``(i) In general.--The Secretary shall pay 20 percent of
the allocable share of each new producing State, as
determined under subparagraph (A), to the coastal political
subdivisions of the new producing State.
``(ii) Allocation.--The amount paid by the Secretary to
coastal political subdivisions shall be allocated to each
coastal political
[[Page S5621]]
subdivision in accordance with subparagraphs (B) and (C) of
section 31(b)(4).
``(3) Minimum allocation.--The amount allocated to a new
producing State for each fiscal year under paragraph (2)
shall be at least 5 percent of the amounts available under
for the fiscal year under paragraph (1)(B)(i).
``(4) Timing.--The amounts required to be deposited under
subparagraph (B) of paragraph (1) for the applicable fiscal
year shall be made available in accordance with that
subparagraph during the fiscal year immediately following the
applicable fiscal year.
``(5) Authorized uses.--
``(A) In general.--Subject to subparagraph (B), each new
producing State and coastal political subdivision shall use
all amounts received under paragraph (2) in accordance with
all applicable Federal and State laws, only for 1 or more of
the following purposes:
``(i) Projects and activities for the purposes of coastal
protection, including conservation, coastal restoration, and
hurricane protection.
``(ii) Mitigation of damage to fish, wildlife, or natural
resources.
``(iii) Implementation of a federally-approved marine,
coastal, or comprehensive conservation management plan.
``(iv) Mitigation of the impact of outer Continental Shelf
activities through the funding of onshore projects.
``(v) Planning assistance and the administrative costs of
complying with this section.
``(B) Limitation.--Not more than 3 percent of amounts
received by a new producing State or coastal political
subdivision under paragraph (2) may be used for the purposes
described in subparagraph (A)(v).
``(6) Administration.--Amounts made available under
paragraph (1)(B) shall--
``(A) be made available, without further appropriation, in
accordance with this subsection;
``(B) remain available until expended; and
``(C) be in addition to any amounts appropriated under--
``(i) other provisions of this Act;
``(ii) the Land and Water Conservation Fund Act of 1965 (16
U.S.C. 460l-4 et seq.); or
``(iii) any other provision of law.
``(d) Disposition of Qualified Outer Continental Shelf
Revenues From Other Areas.--Notwithstanding section 9, for
each applicable fiscal year, the terms and conditions of
subsection (c) shall apply to the disposition of qualified
outer Continental Shelf revenues that--
``(1) are derived from oil or gas leasing in an area that
is not included in the current 5-year plan of the Secretary
for oil or gas leasing; and
``(2) are not assumed in the budget of the United States
Government submitted by the President under section 1105 of
title 31, United States Code.
``(e) Due Diligence Required.--
``(1) New producing area leases.--Each lease entered into
under this section shall provide that if a lessee fails to
initiate development of the oil or gas resources in the new
producing area subject to the lease by the date that is 2
years after the date of the issuance of the lease--
``(A) the lease shall terminate; and
``(B) the Secretary shall conduct a new lease sale for the
new producing area that was subject to the terminated lease.
``(2) Existing leases.--
``(A) In general.--Any lease entered into under any other
section of this Act that is in effect on the date of
enactment of this section shall terminate at the end of the
10-year lease period specified in the lease.
``(B) Availability for leasing.--The Secretary shall
conduct a new lease sale for any area subject to a lease
terminated under subparagraph (A) in accordance with this
Act.
``(C) Lease requirements.--Any lease issued under a lease
sale conducted under subparagraph (B) shall provide that if a
lessee fails to initiate development of the oil or gas
resources in the area subject to the lease by the date that
is 2 years after the date of the issuance of the lease--
``(i) the lease shall terminate; and
``(ii) the Secretary shall conduct a new lease sale for the
area that was subject to the terminated lease.''.
TITLE II--ALTERNATIVE RESOURCES
Subtitle A--Renewable Fuel and Advanced Energy Technology
SEC. 201. ENERGY INDEPENDENCE TRUST FUND.
(a) Establishment.--There is established in the Treasury of
the United States a revolving fund, to be known as the
``Energy Independence Trust Fund'' (referred to in this
section as the ``Fund''), consisting of such amounts as are
deposited in the Fund under section 32(c)(1)(A)(i) of the
Outer Continental Shelf Lands Act (as added by section 102).
(b) Expenditures From Fund.--
(1) In general.--Subject to paragraph (2), on request by
the Secretary, the Secretary of the Treasury shall transfer
from the Fund to the Secretary such amounts as the Secretary
determines are necessary to carry out the following:
(A) Section 609 of the Public Utility Regulatory Policies
Act of 1978 (7 U.S.C. 918c).
(B) Title V of the Toxic Substances Control Act (15 U.S.C.
2695 et seq.).
(C) Sections 211(r), 212, and 329 of the Clean Air Act (42
U.S.C. 7545(r), 7546, 7628).
(D) The following provisions of the Energy Policy and
Conservation Act:
(i) Section 324A (42 U.S.C. 6294a).
(ii) Section 337(c) (42 U.S.C. 6307(c)).
(iii) Section 365(f) (42 U.S.C. 6325(f)).
(iv) Part E of title III (42 U.S.C. 6341 et seq.).
(v) Section 399A (42 U.S.C. 6371h-1).
(E) The following provisions of the Energy Policy Act of
2005:
(i) Section 107 (42 U.S.C. 15812).
(ii) The amendments made by section 123 (119 Stat. 616).
(iii) Sections 124 through 127 (42 U.S.C. 15821 through
15824).
(iv) The amendments made by section 128 (119 Stat. 619).
(v) Sections 133 and 134 (42 U.S.C. 15831, 15832).
(vi) Section 140 (42 U.S.C. 15833).
(vii) Section 201 (42 U.S.C. 15851).
(viii) The amendments made by section 202 (119 Stat. 651).
(ix) The amendments made by section 206 (119 Stat. 654).
(x) Section 207 (119 Stat. 656).
(xi) Sections 208 and 210 (42 U.S.C. 15854, 15855).
(xii) Sections 242 and 243 (42 U.S.C. 15881, 15882).
(xiii) The amendments made by section 251 (119 Stat. 679).
(xiv) Section 252 (42 U.S.C. 15891).
(xv) Sections 706, 712, 721, and 731 (42 U.S.C. 16051,
16062, 16071, 16081).
(xvi) Subtitle C of title VII (42 U.S.C. 16091 et seq.).
(xvii) Sections 751 and 755 through 758 (42 U.S.C. 16101,
16103 through 16106).
(xviii) Section 771 (119 Stat. 834).
(xix) Sections 782 and 783 (42 U.S.C. 16122, 16123).
(xx) Sections 805, 808, 809, and 812 (42 U.S.C. 16154,
16157, 16158, 16161).
(xxi) Sections 911, 917, 921, and 931 (42 U.S.C. 16191,
16197, 16211, 16231).
(xxii) The amendments made by section 941 (119 Stat. 873).
(xxiii) Sections 942, 944 through 947, and 963 (42 U.S.C.
16251, 16253 through 16256, 16293).
(xxiv) Sections 1510, 1514, and 1516 (42 U.S.C. 16501,
16502, 16503).
(F) The following provisions of the Energy Independence and
Security Act of 2007:
(i) Sections 131 and 135 (42 U.S.C. 17011, 17012).
(ii) Sections 207, 223, 229, 230, 234, 244, and 246 (42
U.S.C. 17022, 17032, 17033, 17034, 17035, 17052, 17053).
(iii) Section 243 (121 Stat. 1540).
(iv) Section 411 (42 U.S.C. 6872 note; Public Law 110-140).
(v) Sections 422, 440, 452, 491, and 495 (42 U.S.C. 17082,
17096, 17111, 17121, 17124).
(vi) Section 501 (121 Stat. 1655).
(vii) Section 502 (2 U.S.C. 2169).
(viii) The amendments made by section 505 (121 Stat. 1656).
(ix) Section 517 (42 U.S.C. 17131).
(x) Subtitle E of title V (42 U.S.C. 17151 et seq.).
(xi) Section 602 (42 U.S.C. 17171).
(xii) Sections 604 through 607 (42 U.S.C. 17172 through
17175).
(xiii) Subtitles B through E of title VI (42 U.S.C. 17191
et seq.) (other than section 653).
(xiv) Sections 703, 705, 707, 708, 711, and 712 (42 U.S.C.
17251, 17253, 17255, 17256, 17271, 17272).
(xv) Sections 805 and 807 (42 U.S.C. 17284, 17286).
(xvi) Sections 912, 913, 916, 917, 925, and 927 (42 U.S.C.
17332, 17333, 17336, 17337, 17355, 17357).
(G) Section 202.
(H) Subtitle C.
(2) Administrative expenses.--An amount not exceeding 5
percent of the amounts in the Fund shall be available for
each fiscal year to pay the administrative expenses necessary
to carry out this section.
(c) Transfers of Amounts.--
(1) In general.--The amounts required to be transferred to
the Fund under this section shall be transferred at least
monthly from the general fund of the Treasury to the Fund on
the basis of estimates made by the Secretary of the Treasury.
(2) Adjustments.--Proper adjustment shall be made in
amounts subsequently transferred to the extent prior
estimates were in excess of or less than the amounts required
to be transferred.
SEC. 202. LOAN GUARANTEES FOR RENEWABLE FUEL PIPELINES.
(a) Definitions.--In this section:
(1) Cost.--The term ``cost'' has the meaning given the term
``cost of a loan guarantee'' in section 502(5)(C) of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
(2) Eligible project.--The term eligible project means a
project described in subsection (b)(1).
(3) Guarantee.--
(A) In general.--The term ``guarantee'' has the meaning
given the term ``loan guarantee'' in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
(B) Inclusion.--The term ``guarantee'' includes a loan
guarantee commitment (as defined in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
(4) Renewable fuel.--The term ``renewable fuel'' has the
meaning given the term in section 211(o)(1) of the Clean Air
Act (42 U.S.C. 7545(o)(1)) (as in effect on January 1, 2009).
(5) Renewable fuel pipeline.--The term ``renewable fuel
pipeline'' means a common carrier pipeline for transporting
renewable fuel.
(b) Loan Guarantees.--
(1) In general.--The Secretary shall make guarantees under
this section for projects
[[Page S5622]]
that provide for the construction of new renewable fuel
pipelines.
(2) Eligibility.--In determining the eligibility of a
project for a guarantee under this section, the Secretary
shall consider--
(A) the volume of renewable fuel to be moved by the
renewable fuel pipeline;
(B) the size of the markets to be served by the renewable
fuel pipeline;
(C) the existence of sufficient storage to facilitate
access to the markets served by the renewable fuel pipeline;
(D) the proximity of the renewable fuel pipeline to ethanol
production facilities;
(E) the investment of the entity carrying out the proposed
project in terminal infrastructure;
(F) the experience of the entity carrying out the proposed
project in working with renewable fuels;
(G) the ability of the entity carrying out the proposed
project to maintain the quality of the renewable fuel
through--
(i) the terminal system of the entity; and
(ii) the dedicated pipeline system;
(H) the ability of the entity carrying out the proposed
project to complete the project in a timely manner; and
(I) the ability of the entity carrying out the proposed
project to secure property rights-of-way in order to move the
proposed project forward in a timely manner.
(3) Amount.--Unless otherwise provided by law, a guarantee
by the Secretary under this section shall not exceed an
amount equal to 90 percent of the eligible project cost of
the renewable fuel pipeline that is the subject of the
guarantee, as estimated at the time at which the guarantee is
issued or subsequently modified while the eligible project is
under construction.
(4) Terms and conditions.--Guarantees under this section
shall be provided in accordance with section 1702 of the
Energy Policy Act of 2005 (42 U.S.C. 16512), except that
subsections (b) and (c) of that section shall not apply to
guarantees under this section.
(5) Existing funding authority.--The Secretary shall make a
guarantee under this section under an existing funding
authority.
(6) Final rule.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register a final rule directing the Director of the
Department of Energy Loan Guarantee Program Office to
initiate the loan guarantee program under this section in
accordance with this section.
(c) Funding.--
(1) In general.--There are authorized to be appropriated
such sums as are necessary to provide $4,000,000,000 in
guarantees under this section.
(2) Use of other appropriated funds.--To the extent that
the amounts made available under title XVII of the Energy
Policy Act of 2005 (42 U.S.C. 16511 et seq.) have not been
disbursed to programs under that title, the Secretary may use
the amounts to carry out this section.
Subtitle B--Clean Coal-Derived Fuels for Energy Security
SEC. 211. DEFINITIONS.
In this subtitle:
(1) Clean coal-derived fuel.--
(A) In general.--The term ``clean coal-derived fuel'' means
aviation fuel, motor vehicle fuel, home heating oil, or
boiler fuel that is--
(i) substantially derived from the coal resources of the
United States; and
(ii) refined or otherwise processed at a facility located
in the United States that captures--
(I) at least 50 percent of the carbon dioxide emissions
that would otherwise be released at the facility; or
(II) if the Secretary determines that it is commercially
feasible to capture a higher percentage of carbon dioxide
emissions, a percentage equal to or greater than the
percentage of carbon dioxide emissions determined by the
Secretary to be commercially feasible of being captured.
(B) Inclusions.--The term ``clean coal-derived fuel'' may
include any other resource that is extracted, grown,
produced, or recovered in the United States.
(2) Covered fuel.--The term ``covered fuel'' means--
(A) aviation fuel;
(B) motor vehicle fuel;
(C) home heating oil; and
(D) boiler fuel.
(3) Small refinery.--The term ``small refinery'' means a
refinery for which the average aggregate daily crude oil
throughput for a calendar year (as determined by dividing the
aggregate throughput for the calendar year by the number of
days in the calendar year) does not exceed 75,000 barrels.
SEC. 212. CLEAN COAL-DERIVED FUEL PROGRAM.
(a) Program.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the President shall promulgate
regulations to ensure that covered fuel sold or introduced
into commerce in the United States (except in noncontiguous
States or territories), on an annual average basis, contains
the applicable volume of clean coal-derived fuel determined
in accordance with paragraph (4).
(2) Provisions of regulations.--Regardless of the date of
promulgation, the regulations promulgated under paragraph
(1)--
(A) shall contain compliance provisions applicable to
refineries, blenders, distributors, and importers, as
appropriate, to ensure that--
(i) the requirements of this subsection are met; and
(ii) clean coal-derived fuels produced from facilities for
the purpose of compliance with this subtitle result in life
cycle greenhouse gas emissions that are not greater than
gasoline; and
(B) shall not--
(i) restrict geographic areas in the contiguous United
States in which clean coal-derived fuel may be used; or
(ii) impose any per-gallon obligation for the use of clean
coal-derived fuel.
(3) Relationship to other regulations.--Regulations
promulgated under this paragraph shall, to the maximum extent
practicable, incorporate the program structure, compliance
and reporting requirements established under the final
regulations promulgated to implement the renewable fuel
program established by the amendment made by section
1501(a)(2) of the Energy Policy Act of 2005 (Public Law 109-
58; 119 Stat. 1067).
(4) Applicable volume.--
(A) Calendar years 2015 through 2022.--For the purpose of
this subsection, the applicable volume for any of calendar
years 2015 through 2022 shall be determined in accordance
with the following table:
------------------------------------------------------------------------
Applicable volume
of clean coal-
Calendar year: derived fuel (in
billions of
gallons)
------------------------------------------------------------------------
2015................................................. .075
2016................................................. 1.5
2017................................................. 2.25
2018................................................. 3.00
2019................................................. 3.75
2020................................................. 4.5
2021................................................. 5.25
2022................................................. 6.0
------------------------------------------------------------------------
(B) Calendar year 2023 and thereafter.--Subject to
subparagraph (C), for the purposes of this subsection, the
applicable volume for calendar year 2023 and each calendar
year thereafter shall be determined by the President, in
coordination with the Secretary and the Administrator of the
Environmental Protection Agency, based on a review of the
implementation of the program during calendar years 2015
through 2022, including a review of--
(i) the impact of clean coal-derived fuels on the energy
security of the United States;
(ii) the expected annual rate of future production of clean
coal-derived fuels; and
(iii) the impact of the use of clean coal-derived fuels on
other factors, including job creation, rural economic
development, and the environment.
(C) Minimum applicable volume.--For the purpose of this
subsection, the applicable volume for calendar year 2023 and
each calendar year thereafter shall be equal to the product
obtained by multiplying--
(i) the number of gallons of covered fuel that the
President estimates will be sold or introduced into commerce
in the calendar year; and
(ii) the ratio that--
(I) 6,000,000,000 gallons of clean coal-derived fuel; bears
to
(II) the number of gallons of covered fuel sold or
introduced into commerce in calendar year 2022.
(b) Applicable Percentages.--
(1) Provision of estimate of volumes of certain fuel
sales.--Not later than October 31 of each of calendar years
2015 through 2021, the Administrator of the Energy
Information Administration shall provide to the President an
estimate, with respect to the following calendar year, of the
volumes of covered fuel projected to be sold or introduced
into commerce in the United States.
(2) Determination of applicable percentages.--
(A) In general.--Not later than November 30 of each of
calendar years 2015 through 2022, based on the estimate
provided under paragraph (1), the President shall determine
and publish in the Federal Register, with respect to the
following calendar year, the clean coal-derived fuel
obligation that ensures that the requirements of subsection
(a) are met.
(B) Required elements.--The clean coal-derived fuel
obligation determined for a calendar year under subparagraph
(A) shall--
(i) be applicable to refineries, blenders, and importers,
as appropriate;
(ii) be expressed in terms of a volume percentage of
covered fuel sold or introduced into commerce in the United
States; and
(iii) subject to paragraph (3)(A), consist of a single
applicable percentage that applies to all categories of
persons specified in clause (i).
(3) Adjustments.--In determining the applicable percentage
for a calendar year, the President shall make adjustments--
(A) to prevent the imposition of redundant obligations on
any person specified in paragraph (2)(B)(i); and
(B) to account for the use of clean coal-derived fuel
during the previous calendar year by small refineries that
are exempt under subsection (f).
(c) Volume Conversion Factors for Clean Coal-Derived Fuels
Based on Energy Content.--
(1) In general.--For the purpose of subsection (a), the
President shall assign values to specific types of clean
coal-derived fuel for the purpose of satisfying the fuel
volume requirements of subsection (a)(4) in accordance with
this subsection.
(2) Energy content relative to diesel fuel.--For clean
coal-derived fuels, 1 gallon
[[Page S5623]]
of the clean coal-derived fuel shall be considered to be the
equivalent of 1 gallon of diesel fuel multiplied by the ratio
that--
(A) the number of British thermal units of energy produced
by the combustion of 1 gallon of the clean coal-derived fuel
(as measured under conditions determined by the Secretary);
bears to
(B) the number of British thermal units of energy produced
by the combustion of 1 gallon of diesel fuel (as measured
under conditions determined by the Secretary to be comparable
to conditions described in subparagraph (A)).
(d) Credit Program.--
(1) In general.--The President, in consultation with the
Secretary and the Administrator of the Environmental
Protection Agency, shall implement a credit program to manage
the clean coal-derived fuel requirement of this section in a
manner consistent with the credit program established by the
amendment made by section 1501(a)(2) of the Energy Policy Act
of 2005 (Public Law 109-58; 119 Stat. 1067).
(2) Market transparency.--In carrying out the credit
program under this subsection, the President shall facilitate
price transparency in markets for the sale and trade of
credits, with due regard for the public interest, the
integrity of those markets, fair competition, and the
protection of consumers.
(e) Waivers.--
(1) In general.--The President, in consultation with the
Secretary and the Administrator of the Environmental
Protection Agency, may waive the requirements of subsection
(a) in whole or in part on petition by 1 or more States by
reducing the national quantity of clean coal-derived fuel
required under subsection (a), based on a determination by
the President (after public notice and opportunity for
comment), that--
(A) implementation of the requirement would severely harm
the economy or environment of a State, a region, or the
United States; or
(B) extreme and unusual circumstances exist that prevent
distribution of an adequate supply of domestically-produced
clean coal-derived fuel to consumers in the United States.
(2) Petitions for waivers.--The President, in consultation
with the Secretary and the Administrator of the Environmental
Protection Agency, shall approve or disapprove a State
petition for a waiver of the requirements of subsection (a)
within 90 days after the date on which the petition is
received by the President.
(3) Termination of waivers.--A waiver granted under
paragraph (1) shall terminate after 1 year, but may be
renewed by the President after consultation with the
Secretary and the Administrator of the Environmental
Protection Agency.
(f) Small Refineries.--
(1) Temporary exemption.--
(A) In general.--The requirements of subsection (a) shall
not apply to small refineries until calendar year 2018.
(B) Extension of exemption.--
(i) Study by secretary.--Not later than December 31, 2013,
the Secretary shall submit to the President and Congress a
report describing the results of a study to determine whether
compliance with the requirements of subsection (a) would
impose a disproportionate economic hardship on small
refineries.
(ii) Extension of exemption.--In the case of a small
refinery that the Secretary determines under clause (i) would
be subject to a disproportionate economic hardship if
required to comply with subsection (a), the President shall
extend the exemption under subparagraph (A) for the small
refinery for a period of not less than 2 additional years.
(2) Petitions based on disproportionate economic
hardship.--
(A) Extension of exemption.--A small refinery may at any
time petition the President for an extension of the exemption
under paragraph (1) for the reason of disproportionate
economic hardship.
(B) Evaluation of petitions.--In evaluating a petition
under subparagraph (A), the President, in consultation with
the Secretary, shall consider the findings of the study under
paragraph (1)(B) and other economic factors.
(C) Deadline for action on petitions.--The President shall
act on any petition submitted by a small refinery for a
hardship exemption not later than 90 days after the date of
receipt of the petition.
(3) Opt-in for small refineries.--A small refinery shall be
subject to the requirements of subsection (a) if the small
refinery notifies the President that the small refinery
waives the exemption under paragraph (1).
(g) Penalties and Enforcement.--
(1) Civil penalties.--
(A) In general.--Any person that violates a regulation
promulgated under subsection (a), or that fails to furnish
any information required under such a regulation, shall be
liable to the United States for a civil penalty of not more
than the total of--
(i) $25,000 for each day of the violation; and
(ii) the amount of economic benefit or savings received by
the person resulting from the violation, as determined by the
President.
(B) Collection.--Civil penalties under subparagraph (A)
shall be assessed by, and collected in a civil action brought
by, the Secretary or such other officer of the United States
as is designated by the President.
(2) Injunctive authority.--
(A) In general.--The district courts of the United States
shall have jurisdiction to--
(i) restrain a violation of a regulation promulgated under
subsection (a);
(ii) award other appropriate relief; and
(iii) compel the furnishing of information required under
the regulation.
(B) Actions.--An action to restrain such violations and
compel such actions shall be brought by and in the name of
the United States.
(C) Subpoenas.--In the action, a subpoena for a witness who
is required to attend a district court in any district may
apply in any other district.
(h) Effective Date.--Except as otherwise specifically
provided in this section, this section takes effect on
January 1, 2016.
Subtitle C--Nuclear Energy
SEC. 221. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.
(a) Definition of Project Cost.--Section 1701 of the Energy
Policy Act of 2005 (42 U.S.C. 16511) is amended by adding at
the end the following:
``(6) Project cost.--
``(A) In general.--The term `project cost' means any cost
associated with the development, planning, design,
engineering, permitting and licensing, construction,
commissioning, start-up, shakedown, and financing of a
facility.
``(B) Inclusions.--The term `project cost' includes--
``(i) reasonable escalation and contingencies;
``(ii) the cost of and fees for a guarantee;
``(iii) reasonably required reserve funds;
``(iv) initial working capital; and
``(v) interest accrued during construction.''.
(b) Terms and Conditions; Amount.--Section 1702 of the
Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by
striking subsections (b) and (c) and inserting the following:
``(b) Specific Appropriation or Contribution.--
``(1) In general.--No guarantee shall be made unless--
``(A) the Secretary has received from the borrower and
deposited in the Treasury a payment in full for the cost of
the obligation;
``(B) an appropriation for the cost has been made in lieu
of a payment being made; or
``(C) a combination of actions described in subparagraphs
(A) and (B) has been carried out such that, when combined,
the actions are sufficient to cover the cost of the
obligation.
``(2) Relation to other laws.--Section 504(b) of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall
not apply to a loan guarantee made in accordance with
paragraph (1)(B).
``(c) Amount.---
``(1) In general.--Subject to paragraph (2), the Secretary
shall guarantee 100 percent of the obligation for a facility
that is the subject of the guarantee, or a lesser amount if
requested by the borrower.
``(2) Limitation.--The total amount of loans guaranteed for
a facility by the Secretary shall not exceed 80 percent of
the total cost of the facility, as estimated at the time at
which the guarantee is issued.''.
(c) Fees.--Section 1702(h) of the Energy Policy Act of 2005
(42 U.S.C. 16512(h)) is amended by striking paragraph (2) and
inserting the following:
``(2) Availability.--Fees collected under this subsection
shall--
``(A) be deposited by the Secretary into a special fund in
the Treasury, to be known as the `Incentives For Innovative
Technologies Fund'; and
``(B) remain available to the Secretary for expenditure,
without further appropriation or fiscal year limitation, for
administrative expenses incurred in carrying out this
title.''.
(d) Report to Congress.--Section 1702 of the Energy Policy
Act of 2005 (42 U.S.C. 16512) is amended by adding at the end
the following:
``(k) Report to Congress.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection and annually thereafter, the
Secretary shall submit to Congress a report that summarizes
the applications for loan guarantees received, loan
guarantees approved and rejected, and justifications for
rejections of loan guarantees, under this title.
``(2) Termination of authority.--Beginning with fiscal year
2018, the Secretary shall provide, in the annual report
submitted for each fiscal year under paragraph (1), a
recommendation on whether all or part of the loan guarantee
program under this title should be terminated.''.
SEC. 222. AUTHORIZATION FOR NUCLEAR POWER 2010 PROGRAM.
Section 952 of the Energy Policy Act of 2005 (42 U.S.C.
16272) is amended by striking subsection (c) and inserting
the following:
``(c) Nuclear Power 2010 Program.--
``(1) In general.--The Secretary shall carry out a Nuclear
Power 2010 Program to position the United States to commence
construction of new nuclear power plants by not later than--
``(A) calendar year 2010; or
``(B) such first calendar year after calendar year 2010 as
is practicable.
``(2) Scope of program.--The Nuclear Power 2010 Program
shall support the objectives of--
``(A) demonstrating the licensing process for new nuclear
power plants, including the
[[Page S5624]]
Nuclear Regulatory Commission process for obtaining--
``(i) early site permits;
``(ii) combined construction or operating licenses; and
``(iii) design certifications; and
``(B) conducting first-of-a-kind design and engineering
work on at least 2 advanced nuclear reactor designs
sufficient to bring those designs to a state of design
completion sufficient to allow development of firm cost
estimates.
``(3) Cost-sharing.--The Nuclear Power 2010 Program shall
be carried out through the use of cost-sharing with the
private sector.
``(4) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry out
the Nuclear Power 2010 Program--
``(A) $182,800,000 for fiscal year 2009;
``(B) $159,600,000 for fiscal year 2010;
``(C) $135,600,000 for fiscal year 2011;
``(D) $46,900,000 for fiscal year 2012; and
``(E) $2,200,000 for fiscal year 2013.''.
SEC. 223. DOMESTIC MANUFACTURING BASE FOR NUCLEAR COMPONENTS
AND EQUIPMENT.
(a) Establishment of Interagency Working Group.--
(1) Purposes.--The purposes of this section are--
(A) to increase the competitiveness of the United States
nuclear energy products and services industries;
(B) to identify the stimulus or incentives necessary to
cause United States manufacturers of nuclear energy products
to expand manufacturing capacity;
(C) to facilitate the export of United States nuclear
energy products and services;
(D) to reduce the trade deficit of the United States
through the export of United States nuclear energy products
and services;
(E) to retain and create nuclear energy manufacturing and
related service jobs in the United States;
(F) to integrate the objectives described in subparagraphs
(A) through (E), in a manner consistent with the interests of
the United States, into the foreign policy of the United
States; and
(G) to authorize funds for increasing United States
capacity to manufacture nuclear energy products and supply
nuclear energy services.
(2) Establishment.--
(A) In general.--There is established an interagency
working group (referred to in this section as the ``Working
Group'') that, in consultation with representative industry
organizations and manufacturers of nuclear energy products,
shall make recommendations to coordinate the actions and
programs of the Federal Government in order to promote
increasing domestic manufacturing capacity and export of
domestic nuclear energy products and services.
(B) Composition.--The Working Group shall be composed of--
(i) the Secretary (or a designee), who shall serve as
Chairperson of the Working Group; and
(ii) representatives, appointed by the head of each
applicable agency or department, of--
(I) the Department of Energy;
(II) the Department of Commerce;
(III) the Department of Defense;
(IV) the Department of Treasury;
(V) the Department of State;
(VI) the Environmental Protection Agency;
(VII) the United States Agency for International
Development;
(VIII) the Export-Import Bank of the United States;
(IX) the Trade and Development Agency;
(X) the Small Business Administration;
(XI) the Office of the United States Trade Representative;
and
(XII) other Federal agencies, as determined by the
President.
(3) Duties of working group.--The Working Group shall--
(A) not later than 180 days after the date of enactment of
this Act, identify the actions necessary to promote the safe
development and application in foreign countries of nuclear
energy products and services--
(i) to increase electricity generation from nuclear energy
sources through development of new generation facilities;
(ii) to improve the efficiency, safety, and reliability of
existing nuclear generating facilities through modifications;
and
(iii) enhance the safe treatment, handling, storage, and
disposal of used nuclear fuel;
(B) not later than 180 days after the date of enactment of
this Act, identify--
(i) mechanisms (including tax stimuli for investment, loans
and loan guarantees, and grants) necessary for United States
companies to increase--
(I) the capacity of the companies to produce or provide
nuclear energy products and services; and
(II) exports of nuclear energy products and services; and
(ii) administrative or legislative initiatives that are
necessary--
(I) to encourage United States companies to increase the
manufacturing capacity of the companies for nuclear energy
products;
(II) to provide technical and financial assistance and
support to small and mid-sized businesses to establish
quality assurance programs in accordance with domestic and
international nuclear quality assurance code requirements;
(III) to encourage, through financial incentives, private
sector capital investment to expand manufacturing capacity;
and
(IV) to provide technical assistance and financial
incentives to small and mid-sized businesses to develop the
workforce necessary to increase manufacturing capacity and
meet domestic and international nuclear quality assurance
code requirements;
(C) not later than 270 days after the date of enactment of
this Act, submit to Congress a report that describes the
findings of the Working Group under subparagraphs (A) and (B
), including recommendations for new legislative authority,
as necessary; and
(D) encourage the agencies represented by membership in the
Working Group--
(i) to provide technical training and education for
international development personnel and local users in other
countries;
(ii) to provide financial and technical assistance to
nonprofit institutions that support the marketing and export
efforts of domestic companies that provide nuclear energy
products and services;
(iii) to develop nuclear energy projects in foreign
countries;
(iv) to provide technical assistance and training materials
to loan officers of the World Bank, international lending
institutions, commercial and energy attaches at embassies of
the United States, and other appropriate personnel in order
to provide information about nuclear energy products and
services to foreign governments or other potential project
sponsors;
(v) to support, through financial incentives, private
sector efforts to commercialize and export nuclear energy
products and services in accordance with the subsidy codes of
the World Trade Organization; and
(vi) to augment budgets for trade and development programs
in order to support prefeasibility or feasibility studies for
projects that use nuclear energy products and services.
(4) Personnel and service matters.--The Secretary and the
heads of agencies represented by membership in the Working
Group shall detail such personnel and furnish such services
to the Working Group, with or without reimbursement, as are
necessary to carry out the functions of the Working Group.
(5) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $20,000,000 for each of fiscal years 2009 and
2010.
(b) Credit for Qualifying Nuclear Power Manufacturing.--
(1) Credit for qualifying nuclear power manufacturing.--
Subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code is amended by inserting after section
48B the following new section:
``SEC. 48C. QUALIFYING NUCLEAR POWER MANUFACTURING CREDIT.
``(a) In General.--For purposes of section 46, the
qualifying nuclear power manufacturing credit for any taxable
year is an amount equal to 20 percent of the qualified
investment for such taxable year.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is the basis of
eligible property placed in service by the taxpayer during
such taxable year--
``(A) which is either part of a qualifying nuclear power
manufacturing project or is qualifying nuclear power
manufacturing equipment;
``(B)(i) the construction, reconstruction, or erection of
which is completed by the taxpayer; or
``(ii) which is acquired by the taxpayer if the original
use of such property commences with the taxpayer;
``(C) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable; and
``(D) which is placed in service on or before December 31,
2015.
``(2) Special rule for certain subsidized property.--Rules
similar to section 48(a)(4) shall apply for purposes of this
section.
``(3) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(c) Definitions.--For purposes of this section:
``(1) Qualifying nuclear power manufacturing project.--The
term `qualifying nuclear power manufacturing project' means
any project which is designed primarily to enable the
taxpayer to produce or test equipment necessary for the
construction or operation of a nuclear power plant.
``(2) Qualifying nuclear power manufacturing equipment.--
The term `qualifying nuclear power manufacturing equipment'
means machine tools and other similar equipment, including
computers and other peripheral equipment, acquired or
constructed primarily to enable the taxpayer to produce or
test equipment necessary for the construction or operation of
a nuclear power plant.
``(3) Project.--The term `project' includes any building
constructed to house qualifying nuclear power manufacturing
equipment.''.
(2) Conforming amendments.--
(A) Additional investment credit.--Section 46 of such Code
is amended by--
(i) striking ``and'' at the end of paragraph (3);
(ii) striking the period at the end of paragraph (4) and
inserting ``, and''; and
[[Page S5625]]
(iii) inserting after paragraph (4) the following new
paragraph:
``(5) the qualifying nuclear power manufacturing credit.''.
(B) Application of section 49.--Subparagraph (C) of section
49(a)(1) of such Code is amended by--
(i) striking ``and'' at the end of clause (iii);
(ii) striking the period at the end of clause (iv) and
inserting ``, and''; and
(iii) inserting after clause (iv) the following new clause:
``(v) the basis of any property which is part of a
qualifying nuclear power equipment manufacturing project
under section 48C.''.
(C) Table of sections.--The table of sections for such
subpart E is amended by inserting after the item relating to
section 48B the following new item:
``Sec. 48C. Qualifying nuclear power manufacturing credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to property--
(1) the construction, reconstruction, or erection of which
of began after the date of enactment of this Act, or
(2) which was acquired by the taxpayer on or after the date
of enactment of this Act and not pursuant to a binding
contract which was in effect on the day prior to the date of
enactment.
SEC. 224. NUCLEAR ENERGY WORKFORCE.
Section 1101 of the Energy Policy Act of 2005 (42 U.S.C.
16411) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Workforce Training.--
``(1) In general.--The Secretary of Labor, in cooperation
with the Secretary of Energy, shall promulgate regulations to
implement a program to provide workforce training to meet the
high demand for workers skilled in the nuclear utility and
nuclear energy products and services industries.
``(2) Consultation.--In carrying out this subsection, the
Secretary of Labor shall consult with representatives of the
nuclear utility and nuclear energy products and services
industries, and organized labor, concerning skills that are
needed in those industries.
``(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary of Labor, in
coordination with the Secretary of Education and the
Secretary of Energy, to carry out this subsection $20,000,000
for each of fiscal years 2009 through 2012.''.
SEC. 225. INVESTMENT TAX CREDIT FOR INVESTMENTS IN NUCLEAR
POWER FACILITIES.
(a) New Credit for Nuclear Power Facilities.--Section 46 of
the Internal Revenue Code of 1986, as amended by this title,
is amended by--
(1) striking ``and'' at the end of paragraph (4);
(2) striking the period at the end of paragraph (5) and
inserting ``, and''; and
(3) inserting after paragraph (5) the following new
paragraph:
``(5) the nuclear power facility construction credit.''.
(b) Nuclear Power Facility Construction Credit.--Subpart E
of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986, as amended by this title, is amended by
inserting after section 48C the following new section:
``SEC. 48D. NUCLEAR POWER FACILITY CONSTRUCTION CREDIT.
``(a) In General.--For purposes of section 46, the nuclear
power facility construction credit for any taxable year is 10
percent of the qualified nuclear power facility expenditures
with respect to a qualified nuclear power facility.
``(b) When Expenditures Taken Into Account.--
``(1) In general.--Qualified nuclear power facility
expenditures shall be taken into account for the taxable year
in which the qualified nuclear power facility is placed in
service.
``(2) Coordination with subsection (c).--The amount which
would (but for this paragraph) be taken into account under
paragraph (1) with respect to any qualified nuclear power
facility shall be reduced (but not below zero) by any amount
of qualified nuclear power facility expenditures taken into
account under subsection (c) by the taxpayer or a predecessor
of the taxpayer (or, in the case of a sale and leaseback
described in section 50(a)(2)(C), by the lessee), to the
extent any amount so taken into account has not been required
to be recaptured under section 50(a).
``(c) Progress Expenditures.--
``(1) In general.--A taxpayer may elect to take into
account qualified nuclear power facility expenditures-
``(A) Self-constructed property.--In the case of a
qualified nuclear power facility which is a self-constructed
facility, in the taxable year for which such expenditures are
properly chargeable to capital account with respect to such
facility; and
``(B) Acquired facility.--In the case of a qualified
nuclear facility which is not self-constructed property, in
the taxable year in which such expenditures are paid.
``(2) Special rules for applying paragraph (1).--For
purposes of paragraph (1)-
``(A) Component parts, etc.--Property which is not self-
constructed property and which is to be a component part of,
or is otherwise to be included in, any facility to which this
subsection applies shall be taken into account in accordance
with paragraph (1)(B);
``(B) Certain borrowing disregarded.--Any amount borrowed
directly or indirectly by the taxpayer on a nonrecourse basis
from the person constructing the facility for the taxpayer
shall not be treated as an amount expended for such facility;
and
``(C) Limitation for facilities or components which are not
self-constructed.--
``(i) In general.--In the case of a facility or a component
of a facility which is not self-constructed, the amount taken
into account under paragraph (1)(B) for any taxable year
shall not exceed the amount which represents the portion of
the overall cost to the taxpayer of the facility or component
of a facility which is properly attributable to the portion
of the facility or component which is completed during such
taxable year.
``(ii) Carry-over of certain amounts.--In the case of a
facility or component of a facility which is not self-
constructed, if for the taxable year--
``(I) the amount which (but for clause (i)) would have been
taken into account under paragraph (1)(B) exceeds the
limitation of clause (i), then the amount of such excess
shall be taken into account under paragraph (1)(B) for the
succeeding taxable year; or
``(II) the limitation of clause (i) exceeds the amount
taken into account under paragraph (1)(B), then the amount of
such excess shall increase the limitation of clause (i) for
the succeeding taxable year.
``(D) Determination of percentage of completion.--The
determination under subparagraph (C)(i) of the portion of the
overall cost to the taxpayer of the construction which is
properly attributable to construction completed during any
taxable year shall be made on the basis of engineering or
architectural estimates or on the basis of cost accounting
records. Unless the taxpayer establishes otherwise by clear
and convincing evidence, the construction shall be deemed to
be completed not more rapidly than ratably over the normal
construction period.
``(E) No progress expenditures for certain prior periods.--
No qualified nuclear facility expenditures shall be taken
into account under this subsection for any period before the
first day of the first taxable year to which an election
under this subsection applies.
``(F) No progress expenditures for property for year it is
placed in service, etc.--In the case of any qualified nuclear
facility, no qualified nuclear facility expenditures shall be
taken into account under this subsection for the earlier of--
``(i) the taxable year in which the facility is placed in
service; or
``(ii) the first taxable year for which recapture is
required under section 50(a)(2) with respect to such
facility, or for any taxable year thereafter.
``(3) Self-constructed.--For purposes of this subsection-
``(A) The term `self-constructed facility' means any
facility if it is reasonable to believe that more than half
of the qualified nuclear facility expenditures for such
facility will be made directly by the taxpayer.
``(B) A component of a facility shall be treated as not
self-constructed if the cost of the component is at least 5
percent of the expected cost of the facility and the
component is acquired by the taxpayer.
``(4) Election.--An election shall be made under this
section for a qualified nuclear power facility by claiming
the nuclear power facility construction credit for
expenditures described in paragraph (1) on a tax return filed
by the due date for such return (taking into account
extensions). Such an election shall apply to the taxable year
for which made and all subsequent taxable years. Such an
election, once made, may be revoked only with the consent of
the Secretary.
``(d) Definitions and Special Rules.--For purposes of this
section-
``(1) Qualified nuclear power facility.--The term
`qualified nuclear power facility' means an advanced nuclear
power facility, as defined in section 45J, the construction
of which was approved by the Nuclear Regulatory Commission on
or before December 31, 2013.
``(2) Qualified nuclear power facility expenditures.--
``(A) In general.--The term `qualified nuclear power
facility expenditures' means any amount properly chargeable
to capital account--
``(i) with respect to a qualified nuclear power facility;
``(ii) for which depreciation is allowable under section
168; and
``(iii) which are incurred before the qualified nuclear
power facility is placed in service or in connection with the
placement of such facility in service.
``(B) Pre-effective date expenditures.--Qualified nuclear
power facility expenditures do not include any expenditures
incurred by the taxpayer before January 1, 2007, unless such
expenditures constitute less than 20 percent of the total
qualified nuclear power facility expenditures (determined
without regard to this subparagraph) for the qualified
nuclear power facility.
``(3) Delays and suspension of construction.--
``(A) In general.--For purposes of applying this section
and section 50, a nuclear power facility that is under
construction shall cease to be treated as a facility that
will be a qualified nuclear power facility as of the earlier
of--
``(i) the date on which the taxpayer decides to terminate
construction of the facility; or
[[Page S5626]]
``(ii) the last day of any 24 month period in which the
taxpayer has failed to incur qualified nuclear power facility
expenditures totaling at least 20 percent of the expected
total cost of the nuclear power facility.
``(B) Authority to waive.--The Secretary may waive the
application of clause (ii) of subparagraph (A) if the
Secretary determines that the taxpayer intended to continue
the construction of the qualified nuclear power facility and
the expenditures were not incurred for reasons outside the
control of the taxpayer.
``(C) Resumption of construction.--If a nuclear power
facility that is under construction ceases to be a qualified
nuclear power facility by reason of paragraph (2) and work is
subsequently resumed on the construction of such facility--
``(i) the date work is subsequently resumed shall be
treated as the date that construction began for purposes of
paragraph (1); and
``(ii) if the facility is a qualified nuclear power
facility, the qualified nuclear power facility expenditures
shall be determined without regard to any delay or temporary
termination of construction of the facility.''.
(c) Provisions Relating to Credit Recapture.--
(1) Progress expenditure recapture rules.--
(A) Basic rules.--Subparagraph (A) of section 50(a)(2) of
the Internal Revenue Code of 1986 is amended to read as
follows:
``(A) In general.--If during any taxable year any building
to which section 47(d) applied or any facility to which
section 48D(c) applied ceases (by reason of sale or other
disposition, cancellation or abandonment of contract, or
otherwise) to be, with respect to the taxpayer, property
which, when placed in service, will be a qualified
rehabilitated building or a qualified nuclear power facility,
then the tax under this chapter for such taxable year shall
be increased by an amount equal to the aggregate decrease in
the credits allowed under section 38 for all prior taxable
years which would have resulted solely from reducing to zero
the credit determined under this subpart with respect to such
building or facility.''.
(B) Amendment to excess credit recapture rule.--
Subparagraph (B) of section 50(a)(2) of such Code is amended
by--
(i) inserting ``or paragraph (2) of section 48D(b)'' after
``paragraph (2) of section 47(b)'';
(ii) inserting ``or section 48D(b)(1)'' after ``section
47(b)(1)''; and
(iii) inserting ``or facility'' after ``building''.
(C) Amendment of sale and leaseback rule.--Subparagraph (C)
of section 50(a)(2) of such Code is amended by--
(i) inserting ``or section 48D(c)'' after ``section
47(d)''; and
(ii) inserting ``or qualified nuclear power facility
expenditures'' after ``qualified rehabilitation
expenditures''.
(D) Other amendment.--Subparagraph (D) of section 50(a)(2)
of such Code is amended by inserting ``or section 48D(c)''
after ``section 47(d)''.
(d) No Basis Adjustment.--Section 50(c) of the Internal
Revenue Code of 1986 is amended by inserting at the end
thereof the following new paragraph:
``(6) Nuclear power facility construction credit.--
Paragraphs (1) and (2) shall not apply to the nuclear power
facility construction credit.''.
(e) Technical Amendments.--The table of sections for
subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986, as amended by this subtitle,
is amended by inserting after the item relating to section
48C the following new item:
``Sec. 48D. Nuclear power facility construction credit.''.
(f) Effective Date.--The amendments made by this section
shall be effective for expenditures incurred and property
placed in service in taxable years beginning after the date
of enactment of this Act.
______
By Mr. KYL:
S. 3128. A bill to direct the Secretary of the Interior to provide a
loan to the White Mountain Apache Tribe for use in planning,
engineering, and designing a certain water system project; to the
Committee on Indian Affairs.
Mr. KYL. Mr. President, today I am pleased to introduce the White
Mountain Apache Tribe Rural Water System Loan Authorization Act. This
legislation would authorize a Federal loan to the White Mountain Apache
Tribe for the planning, engineering, and design of a dam and reservoir,
which will be used to provide drinking water to the tribe.
The White Mountain Apache Tribe, which is located on the Fort Apache
Indian Reservation in eastern Arizona, has approximately 15,000
members. The majority of the reservation's residents are currently
served by a relative small well field. According to the tribe, well
production has significantly decreased over the last few years, leading
to summer drinking water shortages.
A small rural development funded diversion project on the North Fork
of the White River on the tribe's reservation is planned for
construction this year. The tribe indicates that when the project is
completed it will replace most of the lost production from the existing
well field, but will not produce enough water to meet the demand of the
tribe's growing population. Consequently, in order to meet the basic
drinking water needs of the tribe, a longer-term solution is needed.
The most likely and best solution is a relatively small dam and
reservoir located on the tribe's reservation--the Miner Flat Dam.
The legislation I am introducing today would authorize the Secretary
of the Interior to provide a Federal loan to the tribe for the
planning, engineering, and design of the Miner Flat Dam. A portion of
the funds set aside in the Arizona Water Settlements Act for future
Arizona Indian water settlements would be used to repay the loan.
Although Congress specifically set aside money in the Arizona Water
Settlements Act for this purpose, the money will not be available until
2013. If the tribe were to wait until then to access these funds, the
cost of Miner Flat Dam would increase $5 million to $7 million a year.
Therefore, providing a loan to the tribe to expedite the planning of
the dam would ultimately decrease the project's costs.
Any Federal funding for the actual construction of the project would
be conditioned on the settlement of the tribe's water rights claims,
which would have to be confirmed by Congress. The tribe is in the
process of settling its water claims in the State of Arizona, and it is
my understanding that the parties involved in negotiating the tribe's
water claims will likely reach a settlement with the tribe this summer.
Once the parties reach an agreement, I intend to introduce legislation
confirming their settlement.
The legislation I am introducing today would bring the tribe one step
closer to having a reliable source of drinking water. Consequently, I
urge my colleagues to support this legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
placed in the Record, as follows:
S. 3128
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``White Mountain Apache Tribe
Rural Water System Loan Authorization Act''.
SEC. 2. DEFINITIONS.
(a) Miner Flat Project.--The term ``Miner Flat Project''
means the White Mountain Apache Rural Water System, comprised
of the Miner Flat Dam and associated domestic water supply
components, as described in the project extension report
dated February 2007.
(b) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Commissioner of
Reclamation (or any other designee of the Secretary).
(c) Tribe.--The term ``Tribe'' means the White Mountain
Apache Tribe, a federally recognized Indian tribe organized
pursuant to section 16 of the Indian Reorganization Act of
1934 (25 U.S.C. 476 et seq.).
SEC. 3. MINER FLAT PROJECT LOAN.
(a) Loan.--Subject to the condition that the Tribe and the
Secretary have executed a cooperative agreement under section
4(a), not later than 90 days after the date of enactment of
this Act, the Secretary shall provide to the Tribe a loan in
an amount equal to $9,800,000, adjusted, as appropriate,
based on ordinary fluctuations in engineering cost indices
applicable to the Miner Flat Project during the period
beginning on October 1, 2007, and ending on the date on which
the loan is provided, as determined by the Secretary, to
carry out planning, engineering, and design of the Miner Flat
Project in accordance with section 4.
(b) Terms and Conditions of Loan.--
(1) Interest; term.--The loan provided under subsection (a)
shall--
(A) be at a rate of interest of 0 percent; and
(B) be repaid over a term of 10 years, beginning on January
1, 2013.
(2) Funds for repayment.--
(A) In general.--For each of fiscal years 2013 and 2014, in
lieu of direct repayment by the Tribe of the loan provided
under subsection (a), the amount described in subparagraph
(B) shall be credited toward repayment of the loan.
(B) Description of amount.--The amount referred to in
subparagraph (A) is a portion of the funds in the Lower
Colorado River Development Fund pursuant to section
403(f)(2)(D)(vi) of the Colorado River Basin Project Act (43
U.S.C. 1543(f)(2)(D)(vi)) equal to--
(i) for fiscal year 2013, 50 percent of the outstanding
balance of the loan under subsection (a) as of October 1,
2012; and
(ii) for fiscal year 2014, the remaining balance of the
loan as of October 1, 2013.
[[Page S5627]]
(c) Administration.--Subject to section 4, the Secretary
shall administer the planning, engineering, and design of the
Miner Flat Project.
SEC. 4. PLANNING, ENGINEERING, AND DESIGN.
(a) Cooperative Agreement.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall offer to enter
into a cooperative agreement with the Tribe for the planning,
engineering, and design of the Miner Flat Project in
accordance with this Act.
(2) Mandatory provisions.--A cooperative agreement under
paragraph (1) shall specify, in a manner that is acceptable
to the Secretary and the Tribe, the rights, responsibilities,
and liabilities of each party to the agreement.
(b) Applicability of Indian Self-Determination and
Education Assistance Act.--Each activity for the planning,
engineering, or design, of the Miner Flat Project shall be
subject to the requirements of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450 et seq.).
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out this Act.
______
By Mr. LEVIN (for himself, Mrs. Feinstein, Mr. Durbin, Mr.
Dorgan, and Mr. Bingaman):
S. 3129. A bill to amend the Commodity Exchange Act to prevent price
manipulation and excessive speculation and to increase transparency
with respect to energy trading on foreign exchanges conducted within
the United States; to the Committee on Agriculture, Nutrition, and
Forestry.
Mr. LEVIN. Mr. President, today I am introducing, along with Senators
Feinstein, Durbin, and Dorgan, the Close the London Loophole Act. This
legislation would ensure that the Commodity Futures Trading Commission,
CFTC, has the same authority to detect, prevent, and punish
manipulation and excessive speculation for traders in the United States
who trade crude U.S. oil or other energy commodities on foreign
commodity exchanges as the CFTC has for traders who trade on U.S.
exchanges.
Today, U.S. crude oil and gasoline futures are traded primarily on
exchanges in New York and London. While the CFTC--our cop on the beat--
has clear authority to go after trading abuses on the New York
exchange, its authority is less clear when it comes to U.S. energy
commodities traded on the London exchange. The bill we are introducing
today would close the London loophole by ensuring the CFTC has all the
information and authority it needs to stop price manipulation or
excessive speculation involving U.S. energy trades on foreign
exchanges.
Under current law, the CFTC obtains the information it needs to
detect price manipulation and excessive speculation involving U.S.
energy trades on foreign exchanges only through voluntary data-sharing
agreements it arranges with the relevant foreign regulators. In many
instances, the CFTC can take action against a U.S. trader on a foreign
exchange to prevent manipulation or excessive speculation only with the
cooperation and consent of the foreign regulator.
Our bill would strengthen CFTC oversight by providing the CFTC with
clear legal authority, as well as a clear legal obligation, to obtain
trading data from foreign exchanges operating in the United States
through direct trading terminals. In addition, the bill would enable
the CFTC to act on its own authority and initiative to prevent
manipulation or excessive speculation by U.S. traders directing trades
through foreign exchanges. This new authority would ensure that our own
government has the information and ability to protect American markets
from manipulation and excessive speculation, no matter where U.S.
energy commodities are traded. U.S. traders will no longer be able to
avoid the cop on the beat by routing their trades through a foreign
exchange.
This legislation would complement a recent legislative initiative I
have long worked on to ensure that U.S. commodity markets are free from
manipulation and excessive speculation. Last month the Congress passed,
over the President's veto, legislation to close the Enron loophole.
This loophole, enacted into law in 2000 at the behest of Enron and
other commodity traders, had allowed large traders to buy and sell
energy commodities on U.S. electronic markets without CFTC oversight.
The legislation passed last month as part of the farm bill gave the
CFTC the authority and mandate to police U.S. electronic exchanges to
stop price manipulation and excessive speculation. No longer will these
electronic commodity exchanges be able to operate in the dark, as they
had under the Enron loophole.
Closing the Enron loophole is a major advance in U.S. energy market
oversight as a whole, and for our natural gas markets in particular,
but it is not enough. Because over the last two years, energy traders
have begun trading U.S. crude oil, gasoline, and home heating oil on
the London exchange, beyond the direct reach of U.S. regulators, we
have to address that second loophole too. I call it closing the London
loophole.
There are currently two key energy commodity markets for U.S. crude
oil, gasoline, and heating oil trading. The first is the New York
Mercantile Exchange or NYMEX, located in New York City. The second is
the ICE Futures Europe exchange, located in London and regulated by the
British agency called the Financial Services Authority.
British regulators do not oversee their energy markets the same way
we do. They don't place limits on speculation like we do, they don't
monitor trader positions like we do, and they do not require the same
type of data to be reported to regulatory authorities. That means that
traders can avoid U.S. crude oil speculation limits on the New York
exchange by trading on the London exchange. It also makes the London
exchange less transparent than the New York exchange. The legislation I
introduced last year to close the Enron loophole would have required
U.S. traders on the London exchange to provide U.S. regulators with the
same type of trading information that they are already required to
provide when they trade on the New York Mercantile Exchange.
Unfortunately, this provision was dropped from the close-the-Enron-
loophole legislation in the farm bill.
The Consumer-First Energy Act, S. 3044, which the Majority Leader and
others introduced recently to address high prices and reduce
speculation, included at my request a provision to curb rampant
speculation, increase our access to foreign exchange trading data, and
strengthen oversight of the trading of U.S. energy commodities no
matter where that trading occurs. This provision would require the
CFTC, prior to allowing a foreign exchange to establish direct trading
terminals located in this country, to obtain an agreement from that
foreign exchange to impose speculative limits and reporting
requirements on traders of U.S. energy commodities comparable to the
requirements imposed by the CFTC on U.S. exchanges. This issue is so
important that I introduced this section of the package as a separate
bill, S. 2995, along with Senator Feinstein.
Following the introduction of our legislation, the CFTC finally moved
to address some of the gaps in its ability to oversee foreign exchanges
operating in the United States. Specifically, the CFTC, working with
the United Kingdom Financial Services Authority and the ICE Futures
Europe exchange, announced that it will now obtain the following
information about the trading of U.S. crude oil contracts on the London
exchange: daily large trader reports on positions in West Texas
Intermediate or WTI contracts traded on the London exchange;
information on those large trader positions for all futures contracts,
not just a limited set of contracts due to expire in the near future;
enhanced trader information to permit more detailed identification of
end users; improved data formatting to facilitate integration of the
data with other CFTC data systems; and notification to the CFTC of when
a trader on ICE Futures Europe exceeds the position accountability
levels established by NYMEX for the trading of WTI crude oil contracts.
These new steps will strengthen the CFTC's ability to detect and
prevent manipulation and excessive speculation in the oil and gasoline
markets. It will ensure that the CFTC has the same type of information
it receives from U.S. exchanges in order to detect and prevent
manipulation and excessive speculation on the London exchange.
However, in order to fully close the London loophole, better
information is not enough. The CFTC must also have clear authority to
act upon this information to stop manipulation and excessive
speculation.
[[Page S5628]]
That is why I have been working with the sponsors of the Consumer-
First Energy Act to develop additional language to ensure that the CFTC
has the authority to act upon the information obtained from the London
exchange to prevent price manipulation and excessive speculation. This
new provision would make it clear that the CFTC has the authority to
prosecute and punish manipulation of the price of a commodity,
regardless of whether the trader within the United States is trading on
a U.S. or on a foreign exchange. It would also make it clear that the
CFTC has the authority to require traders in the United States to
reduce their positions, no matter where the trading occurs--on a U.S.
or foreign exchange--to prevent price manipulation or excessive
speculation in U.S. commodities. Finally, it would clarify that the
CFTC has the authority to require all U.S. traders to keep records of
their trades, regardless of which exchange the trader is using.
This new provision is included in the bill we are introducing today.
I hope that it will also be included in the Consumer-First Energy Act
when Senate debate is allowed to go forward on that bill.
In closing the London loophole, we will ensure there is a cop on the
beat for all U.S. energy commodity traders, no matter whether they are
trading on an exchange in New York or in London. It will ensure that
our regulators have the information and the tools to detect, prevent,
and punish manipulation and excessive speculation.
______
By Mr. DURBIN (for himself, Mr. Reid, Mr. Levin, Mr. Bingaman,
Mr. Dorgan, Mrs. Feinstein, Ms. Klobuchar, Mr. Menendez, Mr.
Brown, Mr. Casey, Mr. Kerry, Mr. Leahy, Mrs. Murray, Ms.
Mikulski, Mr. Obama, and Mr. Reed):
S. 3130. A bill to provide energy price relief by authorizing greater
resources and authority for the Commodity Futures Trading Commission,
and for other purposes; to the Committee on Agriculture, Nutrition, and
Forestry.
Mr. DURBIN. Mr. President, I came to the floor at the beginning of
this week to make a simple point: as oil prices have reached $139 per
barrel in recent days, the truth is that no one--not the oil industry,
not the futures exchanges, not the regulators, not even this United
States Senator--knows exactly what's going on here.
But with the economy in a tailspin and with the average price for a
gallon of gas surpassing $4 and even higher across the country, it is
time to find out.
The chairman of the chief regulator of the futures markets, the
Commodity Futures Trading Commission, doesn't seem to know either. In a
recent appropriations subcommittee hearing I chaired, Chairman Lukken
stated that ``CFTC staff analysis indicates that the current higher
futures prices are generally not a result of manipulative forces.''
Yet last Thursday and Friday the futures price of a barrel of oil
shot up $16. In 2 days. Unless there was a massive pipeline explosion
late last week that I somehow missed, there is simply no supply or
demand justification for that kind of price increase.
Something more is going on here.
Is it rampant speculation that is causing the rise in oil prices?
Is it illegal market manipulation?
Is it the fact that the stock markets are not providing investors
with decent returns at the moment, and so big investors are now pouring
money into the futures markets instead?
Is it the hugely deflated dollar exchange rate that is behind this?
Is it that investors are worried about inflation and are using oil to
hedge against that risk like they use to use gold?
Is it really the rising demand of emerging economies like China and
India that is causing the price of oil to rise?
Is it the lack of true oversight into these markets that has
encouraged institutional traders to take large speculative positions
through overseas markets or over-the-counter trades, positions that
they can't take in other markets?
Is it the lack of portfolio caps that are in place for some futures
contracts but not for oil that has encouraged institutional traders to
take large speculative positions?
The questions go on and on. And the answers are scarce. Given the
importance of the price of gas to families in Illinois and across the
country, I think that is scandalous.
That's why I'm introducing a bill today entitled the ``Increasing
Transparency and Accountability in Oil Prices Act.'' This bill would
provide more people and better technology to the CFTC to help them
better understand this situation. It also would give the CFTC far
greater visibility to the traders and the transactions that are
involved here.
Specifically, this bill would:
Authorize the CFTC to hire an additional 100 FTEs, and express the
Sense of the Senate for the need for an emergency supplemental request
from the President for this funding;
Close the ``London loophole'' by treating oil traders located in
London as if they were trading in the U.S. for regulatory purposes, so
that the CFTC has access to oil trades on all exchanges rather than
just the trades that take place physically in the U.S.;
Require more detailed reporting to the CFTC for index funds and swap
dealers who typically take long positions that might drive up the price
of oil;
Move the CFTC Inspector General out of the CFTC Chairman's office, to
ensure its objectivity; and
Initiate a GAO study of the existing international regulatory regime
that should be preventing excessive speculation and manipulation of oil
prices.
Many of these ideas are not new. Senators Levin, Feinstein, Cantwell,
and Dorgan have all been very active on these issues as have many
others, and of course Chairman Bingaman and Chairman Harkin have been
leaders on these regulatory issues for years.
For my part, I intend to use my Chairmanship of the Appropriations
Subcommittee on Financial Services and General Government to increase
the funding and capacity of the CFTC. We will expect the agency to use
these resources to get to the bottom of this.
Quickly.
These ideas--more regulatory resources and more market transparency--
are ideas that many of my colleagues might agree with. I encourage my
colleagues on both sides of the aisle to support this important
legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3130
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Increasing Transparency and
Accountability in Oil Prices Act of 2008''.
SEC. 2. SENSE OF SENATE ON ADDITIONAL EMERGENCY FUNDING FOR
COMMISSION.
(a) Findings.--The Senate finds that--
(1) excessive speculation may be adding significantly to
the price of oil and other energy commodities;
(2) the public and Congress are concerned that private,
unregulated transactions and overseas exchange transactions
are not being adequately reviewed by any regulatory body;
(3) an important Federal overseer of commodity speculation,
the Commodity Futures Trading Commission, has staffing levels
that have dropped to the lowest levels in the 33-year history
of the Commission; and
(4) the acting Chairman of the Commission has said publicly
that an additional 100 employees are needed in light of the
inflow of trading volume.
(b) Sense of Senate.--It is the sense of the Senate that
the President should immediately send to Congress a request
for emergency appropriations for fiscal year 2008 for the
Commodity Futures Trading Commission in an amount that is
sufficient--
(1) to help restore public confidence in energy commodities
markets and Federal oversight of those markets;
(2) to potentially impose limits on excessive speculation
that is increasing the price of oil, gasoline, diesel, and
other energy commodities;
(3) to significantly improve the information technology
capabilities of the Commission to help the Commission
effectively regulate the energy futures markets; and
(4) to fund at least 100 new full-time positions at the
Commission to oversee energy commodity market speculation and
to enforce the Commodity Exchange Act (7 U.S.C. 1 et seq.).
SEC. 3. ADDITIONAL COMMISSION EMPLOYEES FOR IMPROVED
ENFORCEMENT.
Section 2(a)(7) of the Commodity Exchange Act (7 U.S.C.
2(a)(7)) is amended by adding at the end the following:
[[Page S5629]]
``(D) Additional employees.--As soon as practicable after
the date of enactment of this subparagraph, the Commission
shall appoint at least 100 full-time employees (in addition
to the employees employed by the Commission as of the date of
enactment of this subparagraph)--
``(i) to increase the public transparency of operations in
energy futures markets;
``(ii) to improve the enforcement of this Act in those
markets; and
``(iii) to carry out such other duties as are prescribed by
the Commission.''.
SEC. 4. INSPECTOR GENERAL.
Section 2(a) of the Commodity Exchange Act (7 U.S.C. 2(a))
is amended by adding at the end the following:
``(13) Inspector general.--
``(A) Office.--There shall be in the Commission, as an
independent office, an Office of the Inspector General.
``(B) Appointment.--The Office shall be headed by an
Inspector General, appointed in accordance with the Inspector
General Act of 1978 (5 U.S.C. App.).
``(C) Compensation.--The Inspector General shall be
compensated at the rate provided for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code.
``(D) Administration.--The Inspector General shall exert
independent control of the budget allocations, expenditures,
and staffing levels, personnel decisions and processes,
procurement, and other administrative and management
functions of the Office.''.
SEC. 5. STUDY OF INTERNATIONAL REGULATION OF ENERGY COMMODITY
MARKETS.
(a) In General.--The Comptroller General of the United
States shall conduct a study of the international regime for
regulating the trading of energy commodity futures and
derivatives.
(b) Analysis.--The study shall include an analysis of, at a
minimum--
(1) key common features and differences among countries in
the regulation of energy commodity trading, including with
respect to market oversight and enforcement;
(2) agreements and practices for sharing market and trading
data;
(3) the use of position limits or thresholds to detect and
prevent price manipulation, excessive speculation, or other
unfair trading practices;
(4) practices regarding the identification of commercial
and noncommercial trading and the extent of market
speculation; and
(5) agreements and practices for facilitating international
cooperation on market oversight, compliance, and enforcement.
(c) Report.--Not later than 120 days after the date of
enactment of this Act, the Comptroller General shall submit
to the appropriate committees of Congress a report that--
(1) describes the results of the study; and
(2) provides recommendations to improve openness,
transparency, and other necessary elements of a properly
functioning market in a manner that protects consumers in the
United States from the effects of excessive speculation and
energy price volatility.
SEC. 6. SPECULATIVE LIMITS AND TRANSPARENCY FOR OFF-SHORE OIL
TRADING.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is
amended by adding at the end the following:
``(e) Foreign Boards of Trade.--
``(1) In general.--In the case of any foreign board of
trade for which the Commission has granted or is considering
an application to grant a board of trade located outside of
the United States relief from the requirement of subsection
(a) to become a designated contract market, derivatives
transaction execution facility, or other registered entity,
with respect to an energy commodity that is physically
delivered in the United States, prior to continuing to or
initially granting the relief, the Commission shall determine
that the foreign board of trade--
``(A) applies comparable principles or requirements
regarding the daily publication of trading information and
position limits or accountability levels for speculators as
apply to a designated contract market, derivatives
transaction execution facility, or other registered entity
trading energy commodities physically delivered in the United
States; and
``(B) provides such information to the Commission regarding
the extent of speculative and nonspeculative trading in the
energy commodity that is comparable to the information the
Commission determines necessary to publish a Commitment of
Traders report for a designated contract market, derivatives
transaction execution facility, or other registered entity
trading energy commodities physically delivered in the United
States.
``(2) Existing foreign boards of trade.--During the period
beginning 1 year after the date of enactment of this
subsection and ending 18 months after the date of enactment
of this subsection, the Commission shall determine whether to
continue to grant relief in accordance with paragraph (1) to
any foreign board of trade for which the Commission granted
relief prior to the date of enactment of this subsection.''.
SEC. 7. COMMISSION AUTHORITY OVER TRADERS.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as
amended by section 6) is amended by adding at the end the
following:
``(f) Commission Authority Over Traders.--
``(1) In general.--Notwithstanding any other provision of
this section or any determination made by the Commission to
grant relief from the requirements of subsection (a) to
become a designated contract market, derivatives transaction
execution facility, or other registered entity, in the case
of a person located within the United States, or otherwise
subject to the jurisdiction of the Commission, trading on a
foreign board of trade, exchange, or market located outside
the United States (including the territories and or
possessions of the United States), the Commission shall have
authority under this Act--
``(A) to apply and enforce section 9, including provisions
relating to manipulation or attempted manipulation, the
making of false statements, and willful violations of this
Act;
``(B) to require or direct the person to limit, reduce, or
liquidate any position to prevent or reduce the threat of
price manipulation, excessive speculation, price distortion,
or disruption of delivery or the cash settlement process; and
``(C) to apply such recordkeeping requirements as the
Commission determines are necessary.
``(2) Consultation.--Prior to the issuance of any order
under paragraph (1) to reduce a position on a foreign board
of trade, exchange, or market located outside the United
States (including the territories and possessions of the
United States), the Commission shall consult with the foreign
board of trade, exchange, or market and the appropriate
regulatory authority.
``(3) Administration.--Nothing in this subsection limits
any of the otherwise applicable authorities of the
Commission.''.
SEC. 8. INDEX TRADERS AND SWAP DEALERS.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as
amended by section 7) is amended by adding at the end the
following:
``(g) Index Traders and Swap Dealers.--Not later than 60
days after the date of enactment of this subsection, the
Commission shall--
``(1) routinely require detailed reporting from index
traders and swap dealers in markets under the jurisdiction of
the Commission;
``(2) reclassify the types of traders for regulatory and
reporting purposes to distinguish between index traders and
swaps dealers; and
``(3) review the trading practices for index traders in
markets under the jurisdiction of the Commission--
``(A) to ensure that index trading is not adversely
impacting the price discovery process; and
``(B) to determine whether different practices or
regulations should be implemented.''.
SEC. 9. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN
ENERGY MARKETS.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as
amended by section 8) is amended by adding at the end the
following:
``(h) Disaggregation of Index Funds and Data in Energy
Markets.--The Commission shall disaggregate and make public
monthly--
``(1) the number of positions and total value of index
funds and other passive, long-only positions in energy
markets; and
``(2) data on speculative positions relative to bona fide
physical hedgers in those markets.''.
______
By Mrs. FEINSTEIN (for herself and Mr. Stevens):
S. 3131. A bill to amend the Commodity Exchange Act to ensure the
application of speculation limits to speculators in energy markets, and
for other purposes; to the Committee on Agriculture, Nutrition, and
Forestry.
Mrs. FEINSTEIN. Mr. President, I rise to introduce The Oil
Speculation Control Act, a bill to reduce the impact of excessive
speculation in the oil markets.
The legislation is cosponsored by Senator Ted Stevens.
Last week the price of oil hit $138 per barrel. A commodity that used
to be priced at $11 a barrel is now swinging $11 in a single day.
Yesterday it jumped $5--supposedly in response to a single Department
of Energy report.
Gasoline prices now average more than $4.50 in California. Some gas
stations have to charge by the half gallon. Their pumps cannot
calculate in prices this high.
There seems to be no relief in sight for consumers as we enter the
summer travel season.
In the Farm Bill Congress finally closed the ``Enron Loophole,'' and
placed all major electronic trades that could drive energy prices under
the watchful eye of the Commodity Futures Trading commission, CFTC.
Today I and Senator Levin introduced the Close the London Loophole
Act to close another loophole. This bill would bring oversight to
American energy commodities being traded beyond our borders.
I also joined Senator Durbin in calling for the President to add 100
I enforcement professionals to the ranks of the CFTC.
However, these steps are not enough.
[[Page S5630]]
I believe we must do more to reduce the excessive speculation of
institutional investors in oil markets.
So today I am introducing the Oil Speculation Control Act.
Let me explain what this bill would do.
First, it requires CFTC to review the trading practices of
institutional investors and their dealers within 30 days:
It ensures that their trading is not adversely impacting the market
price.
It determines whether different regulations are necessary:
It proposes to Congress regulations and legislation necessary to
prevent the dramatic increase of fuel costs in the futures markets.
Second, the bill establishes reporting requirements. It requires
institutional investors, such as pension funds or endowments, to report
their energy market positions to the CFTC, even when trades are
executed by a third party broker.
To further increase transparency, it would force CFTC regulations and
reports to begin distinguishing between the institutional investors and
the ``swaps dealers'' or ``index traders'' who broker their trades.
Third, the bill would force CFTC to limit institutional investor and
index trader positions, as CFTC limits the positions of more
traditional market speculators.
Fourth, it prevents CFTC from considering the positions of
institutional investors or their brokers to be ``bone fide hedges''
that would be exempt from speculative position limits.
Finally, it requires that the Office of the CFTC's Inspector General
be removed from the CFTC Chairman's Office and established as an
independent office.
This bill is necessary because I believe that speculation in oil
futures by large institutional investors and index funds is inflating
the price of oil.
The unconstrained and overwhelming entrance of these new commodity
investors, who have bet more than 99 percent of their funds on prices
rising, must be controlled.
Recent testimony before numerous Congressional Committees indicates
that between 2000 and 2002, major institutional investors began to view
commodity futures markets as a new ``asset class'' suitable to be used
in large financial portfolios. Since 2000, investment fund managers
have come to believe that investing in commodities balances a stock
portfolio.
As Daniel Yergin, one of the Nation's leading energy market experts
put it: ``Oil has become the `new gold'--a financial asset in which
investors seek refuge as inflation rises and the dollar weakens.''
Never before have so many institutional investors made large scale
investments in commodity markets, but from 2003 to 2008, investments in
commodity index funds rose from $13 billion to $260 billion.
The implications for consumers of this shift are potentially
devastating. Unlike gold, energy and agricultural commodities meet
essential needs in the everyday lives of average Americans, and the
potential risk that investment strategies will push the price of these
goods higher during economic downturns presents a threat to the public
welfare. I do not believe this is in the best interest of the American
public.
Under the Commodity Exchange Act, the CFTC must impose speculation
limits on the size of energy trader positions. Crude oil speculative
positions are limited to a total of 20 million barrels of oil and 3
million barrels of oil in the last three days of a contract.
However, it is CFTC's practice to exempt institutional investors from
such limits when investors execute their trades through brokers or
dealers.
This is a mistake.
They are not hedging against the risk of changing oil prices, as
airlines or utilities frequently must do.
They never take delivery of the product.
They participate in the oil markets only on paper.
This bill will assure that the existing speculation limit powers will
constrain the market distortion resulting from this massive influx of
capital. It will ensure a regulatory system that limits the size and
influence of institutional investor positions in energy markets.
Even CFTC has realized that its policy may be mistaken.
Last month it announced that it will review the trading practices for
index traders in the futures markets to ensure that this type of
trading activity is not adversely impacting the price discovery
process. They also plan to determine whether different practices should
be employed.
Today's markets evolve quickly, and we need to make sure our market
oversight responds just as quickly.
We now know that over the last few years a whole new kind of investor
has entered oil markets. Institutional investors only bet that the
price will go up. No matter how high the price goes, they pour into the
market to push it higher.
We have ways to control this. We have speculation limits. But we are
not using them. I am introducing this bill to make sure we use the
tools we have.
As the markets continue to evolve, so must our regulation. I believe
the Oil Speculation Control Act takes this step, and I encourage my
colleagues to support it.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3131
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Oil Speculation Control Act
of 2008''.
SEC. 2. DEFINITION OF INSTITUTIONAL INVESTOR.
(a) Definition.--Section 1a of the Commodity Exchange Act
(7 U.S.C. 1a) is amended--
(1) by redesignating paragraphs (22) through (34) as
paragraphs (23) through (35), respectively; and
(2) by inserting after paragraph (21) the following:
``(22) Institutional investor.--The term `institutional
investor' means a long-term investor in financial markets
(including pension funds, endowments, and foundations) that--
``(A) invests in energy commodities as an asset class in a
portfolio of financial investments; and
``(B) does not take or make physical delivery of energy
commodities on a frequent basis, as determined by the
Commission.''.
(b) Conforming Amendments.--
(1) Section 13106(b)(1) of the Food, Conservation, and
Energy Act of 2008 is amended by striking ``section 1a(32)''
and inserting ``section 1a''.
(2) Section 402(d)(1)(B) of the Legal Certainty for Bank
Products Act of 2000 (7 U.S.C. 27(d)(1)(B)) is amended by
striking ``section 1a(33)'' and inserting ``section 1a''.
SEC. 3. INSPECTOR GENERAL.
Section 2(a) of the Commodity Exchange Act (7 U.S.C. 2(a))
is amended by adding at the end the following:
``(13) Inspector general.--
``(A) Office.--There shall be in the Commission, as an
independent office, an Office of the Inspector General.
``(B) Appointment.--The Office shall be headed by an
Inspector General, appointed in accordance with the Inspector
General Act of 1978 (5 U.S.C. App.).
``(C) Compensation.--The Inspector General shall be
compensated at the rate provided for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code.
``(D) Administration.--The Inspector General shall exert
independent control of the budget allocations, expenditures,
and staffing levels, personnel decisions and processes,
procurement, and other administrative and management
functions of the Office.''.
SEC. 4. TRADING PRACTICES REVIEW WITH RESPECT TO INDEX
TRADERS, SWAP DEALERS, AND INSTITUTIONAL
INVESTORS.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is
amended by adding at the end the following:
``(e) Trading Practices Review With Respect to Index
Traders, Swap Dealers, and Institutional Investors.--
``(1) Review.--
``(A) In general.--Not later than 30 days after the date of
enactment of this subsection, the Commission shall carry out
a review of the trading practices of index traders, swap
dealers, and institutional investors in markets under the
jurisdiction of the Commission--
``(i) to ensure that index trading is not adversely
impacting the price discovery process;
``(ii) to determine whether different practices or
regulations should be implemented; and
``(iii) to gather data for use in proposing regulations to
limit the size and influence of institutional investor
positions in commodity markets.
``(B) Emergency authority.--For the 60-day period described
in subparagraph (A), in accordance with each applicable rule
adopted under section 5(d)(6), the Commission shall exercise
the emergency authority of the Commission to prevent
institutional investors from increasing the positions of the
institutional investors in--
[[Page S5631]]
``(i) energy commodity futures; and
``(ii) commodity future index funds.
``(2) Report.--Not later than 30 days after the date
described in paragraph (1)(A), the Commission shall submit to
the appropriate committees of Congress a report that contains
recommendations for such legislation as the Commission
determines to be necessary to limit the size and influence of
institutional investor positions in commodity markets.''.
SEC. 5. BONA FIDE HEDGING TRANSACTIONS OR POSITIONS.
Section 4a(c) of the Commodity Exchange Act (7 U.S.C.
6a(c)) is amended by striking ``(c) No rule'' and inserting
the following:
``(c) Bona Fide Hedging Transactions or Positions.--
``(1) Definition of bona fide hedging transaction or
position.--The term `bona fide hedging transaction or
position' means a transaction or position that represents a
hedge against price risk exposure relating to physical
transactions involving an energy commodity.
``(2) Application with respect to bona fide hedging
transactions or positions.--No rule''.
SEC. 6. SPECULATION LIMITS RELATING TO SPECULATORS IN ENERGY
MARKETS.
Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is
amended by adding at the end the following:
``(f) Speculation Limits Relating to Speculators in Energy
Markets.--
``(1) Definition of speculator.--In this subsection, the
term `speculator' includes any institutional investor or
investor of an investment fund that holds a position through
an intermediary broker or dealer.
``(2) Enforcement of speculation limits.--The Commission
shall enforce speculation limits with respect to speculators
in energy markets.''.
SEC. 7. LARGE TRADER REPORTING WITH RESPECT TO INDEX TRADERS,
SWAP DEALERS, AND INSTITUTIONAL INVESTORS.
Section 4g of the Commodity Exchange Act (7 U.S.C. 6g) is
amended by adding at the end the following:
``(g) Large Trader Reporting With Respect to Index Traders,
Swap Dealers, and Institutional Investors.--
``(1) In general.--Each recordkeeping and reporting
requirement under this section relating to large trader
transactions and positions shall apply to index traders,
swaps dealers, and institutional investors in markets under
the jurisdiction of the Commission.
``(2) Promulgation of regulations.--As soon as practicable
after the date of enactment of this subsection, the
Commission shall promulgate regulations to establish separate
classifications for index traders, swaps dealers, and
institutional investors--
``(A) to enforce the recordkeeping and reporting
requirements described in paragraph (1); and
``(B) to enforce position limits and position
accountability levels with respect to energy commodities
under section 4a(f).''.
SEC. 8. INSTITUTIONAL INVESTOR SPECULATION LIMITS.
(a) Core Principles Applicable to Significant Price
Discovery Contracts.--Section 2(h)(7)(C)(ii)(IV) of the
Commodity Exchange Act (7 U.S.C. 2(h)(7)(C)(ii)(IV)) is
amended by inserting after ``speculators'' the following:
``(including institutional investors that do not take
delivery of energy commodities and that hold positions in
energy commodities through swaps dealers or other third
parties)''.
(b) Core Principles for Contract Markets.--Section 5(d)(5)
of the Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended
by inserting after ``speculators'' the following:
``(including institutional investors that do not take
delivery of energy commodities and that hold positions in
energy commodities through swaps dealers or other third
parties)''.
______
By Mr. DODD (for himself, Mr. Durbin, and Mr. Menendez):
S. 3133. A bill to direct the Secretary of the Interior to establish
an annual production incentive fee with respect to Federal onshore and
offshore land that is subject to a lease for production of oil or
natural gas under which production is not occurring, to authorize use
of the fee for energy efficiency and renewable energy projects, and for
other purposes; to the Committee on Energy and Natural Resources.
Mr. DODD. Mr. President, I rise today to introduce the Responsible
Ownership of Public Land Act. I thank my friends Congressmen Rahm
Emanuel, Ed Markey, Maurice Hinchey, and Nick Rahall for their
leadership on this issue in the other chamber. With the issue of oil
and gas prices at the forefront of our national consciousness, this
bill is timely and critically needed.
As gas prices across the Nation soar to shocking, unprecedented
levels, we can all agree that the time has come to end our dependence
on oil. But that can't happen unless we also commit to something the
Bush administration and its allies in Congress have refused to:
End our dependence on the oil companies--on letting them hold the
American people and economy hostage to rising prices that have no end
in sight.
In my home State of Connecticut, a gallon of regular unleaded
gasoline today reached $4.36. That is an increase of 41 cents from just
a month ago--and $1.12 from only a year ago. For reasons that
economists seem at a loss to explain, my State today has the second-
highest gas prices in the Nation. It seems that every single day we
turn on the television or open a newspaper, we hear about new records
being set for the price of a barrel of oil or how much people are
paying at the pump.
The rising price of gas only begins at the pump. It is also causing
prices to rise at the grocery store and elsewhere. Wherever they go,
families are feeling economic pressure like never before--finding
themselves forced to make difficult decisions and cut down on spending
in other areas simply so they can afford to commute to work or take
their kids to school. Too often they are forced to choose between food,
gas, utilities, and lifesaving medications.
In my view there are many things we need to do to address this
pressing issue. In the long term we need to develop clean, renewable
energy sources that will alleviate our dependence on foreign oil that
often comes from unstable, hostile regimes and create new green jobs
here at home. But in the short term, we need to take steps to help out
families who are hurting and angry and need relief.
One idea we hear time and again from President Bush and his
Republican allies is that the answer to our energy problems is to open
up environmentally fragile areas of the Arctic National Wildlife Refuge
to more drilling. In response, I would point out that there are already
44 million offshore acres that have been leased by oil companies, who
have only put 10.5 million of those acres into production. Of the 47.5
million onshore acres under lease for oil and gas production, only 13
million are in production.
Combined, oil and gas companies hold leases to 68 million acres of
Federal land and waters that they are not producing any oil and gas on.
This is compared to the 1.5 million acres that make up ANWR that
proponents of drilling there would like to see opened up. Instead of
putting pristine wilderness in grave peril, these companies should
first be producing on acres already under lease. The vast majority of
oil and natural gas resources on Federal land are already open for
drilling and are not being tapped, and the oil and gas resources
available in the unused land under lease far outstrips what is
available in ANWR and other areas closed to drilling.
Therefore, I am offering this legislation as a solution to this
problem--a production incentive fee for acres under lease that are not
in production. This fee would rise with the number of years the land
has been under lease but not used. The revenue raised by these fees
could be used to fund the development of clean, renewable energy,
energy efficiency, and programs such as LIHEAP that help families
struggling with sky-high energy prices.
Over the last 8 years, President Bush, Vice President Cheney and
their allies in this body have done all they can to block any progress
toward energy independence. They have belittled and undermined policies
and technologies that, had they been adopted, would have helped
consumers avoid the deplorable situation they find themselves in today.
As a result, American families are now at the mercy of foreign
dictators, market speculators, and big oil companies reaping enormous
profits--the largest profits in corporate history.
As a result, every time the price of a gallon of gas reaches a new
record, Americans are the ones paying the price of this
administration's inaction.
It is time to end our dependence on the oil companies. This bill
would start that process by saying the time has come to put the
American people first.
It is my hope that with the introduction of the Responsible Ownership
of Public Land Act, we can begin again to work toward delivering the
kind of change American families are desperate for. I ask that my
colleagues join me in supporting this commonsense effort to responsibly
address the Nation's desperate energy needs.
______
By Mr. NELSON of Florida:
[[Page S5632]]
S. 3134. A bill to amend the Commodity Exchange Act to require energy
commodities to be traded only on regulated markets, and for other
purposes; to the Committee on Agriculture, Nutrition, and Forestry.
Mr. NELSON of Florida. Mr. President, many experts have concluded
that the skyrocketing price of oil reflects not just the realities of
supply and demand but also the influence of speculators and futures
traders. Many of these speculators work for funds and investment banks
with no actual inventory of oil, and thus no business need to hedge
against an increase in the price of oil. Put simply, they enter the
energy futures market to make a profit by gambling on the price per
barrel.
Last month, with passage of the Farm Bill, the Congress finally
succeeded in bringing a measure of oversight and transparency to this
market, requiring the Commodities Future Trading Commission, CFTC, to
review all contracts to determine which ones should be regulated as
though traded on a major public exchange.
While this was a step in the right direction, and the result of much
thoughtful discussion and debate, it could be improved upon and
strengthened. I am basing this on testimony heard by the Commerce
Committee on June 3 from Michael Greenberger, former director of CFTC's
Division of Trading and Markets. Mr. Greenberger has emerged as a
leading expert on the current state of our Nation's energy markets.
In light of these developments and to add to the growing debate about
how to protect consumers and our economy from rampant speculation, I'm
now introducing a bill to shut down the unregulated oil futures markets
created by the now-infamous ``Enron loophole.'' It also removes energy
from the list of exempt commodities; requires energy to be traded on a
regulated market, and creates a new definition of what constitutes an
energy commodity.
As the Senate continues to debate and ultimately consider proposals
related to energy market speculation, the influence of large investors,
regulated and unregulated exchanges, I would ask that my colleagues
also consider the ideas put forward in this bill.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3134
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. REGULATION OF ENERGY COMMODITIES.
(a) Definitions.--Section 1a of the Commodity Exchange Act
(7 U.S.C. 1a) is amended--
(1) by redesignating paragraphs (13) through (34) as
paragraphs (14) through (35), respectively;
(2) by inserting after paragraph (12) the following:
``(13) Energy commodity.--The term `energy commodity'
includes--
``(A) crude oil;
``(B) natural gas;
``(C) heating oil;
``(D) gasoline;
``(E) metals;
``(F) construction materials;
``(G) propane; and
``(H) other fuel oils.''; and
(3) by striking paragraph (15) (as redesignated by
paragraph (1)) and inserting the following:
``(15) Exempt commodity.--The term `exempt commodity' means
a commodity that is not--
``(A) an agricultural commodity;
``(B) an energy commodity; or
``(C) an excluded commodity.''.
(b) Current Agricultural Commodities.--Section 5(e)(1) of
the Commodity Exchange Act (7 U.S.C. 7(e)(1)) is amended by
striking ``agricultural commodity enumerated in section
1a(4)'' and inserting ``agricultural commodity or an energy
commodity''.
(c) Conforming Amendments.--
(1) Section 2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange
Act (7 U.S.C. 2(c)(2)(B)(i)(II)(cc)) is amended--
(A) in subitem (AA), by striking ``section 1a(20)'' and
inserting ``section 1a(21)''; and
(B) in subitem (BB), by striking ``section 1a(20)'' and
inserting ``section 1a(21)''.
(2) Section 13106(b)(1) of the Food, Conservation, and
Energy Act of 2008 is amended by striking ``section 1a(32)''
and inserting ``section 1a''.
(3) Section 402 of the Legal Certainty for Bank Products
Act of 2000 (7 U.S.C. 27) is amended--
(A) in subsection (a)(7), by striking ``section 1a(20)''
and inserting ``section 1a''; and
(B) in subsection (d)--
(i) in paragraph (1)(B), by striking ``section 1a(33)'' and
inserting ``section 1a''; and
(ii) in paragraph (2)(D), by striking ``section 1a(13)''
and inserting ``section 1a''.
______
By Mr. NELSON of Florida:
S. 3135. A bill to amend the Outer Continental Shelf Lands Act to
provide for the establishment of a production incentive fee for
nonproducing leases; to the Committee on Energy and Natural Resources.
Mr. NELSON of Florida. Mr. President, today I have introduced
legislation which will impose a fee of no less than $5 per acre per
year for Federal lands leased in the Outer Continental Shelf,
specifically within the Gulf of Mexico.
It is my hope this legislation will improve the management of the
nation's oil and gas leasing program, a program that has greatly
expanded in recent years. Since the 1990s, the federal government has
consistently encouraged the development of its oil and gas resources
and drilling on federal lands has steadily increased during this time.
The number of drilling permits issued for lands on and offshore has
exploded in recent years, going from 3,802 five years ago to 7,561 in
2007.
Let me also share some statistics prepared by the House Resources
Committee regarding offshore energy resources. On the Outer Continental
Shelf, 82 percent of federal natural gas and 79 percent of Federal oil
is located in areas that are currently open for leasing. Offshore, only
10.5 million of the 44 million leased acres are currently producing oil
or gas.
It is simply, unfair, dishonest, and disingenuous to try to persuade
the American people that all we need to do is drill. In fact, I have
concerns the oil companies are hoarding a resource that belongs to the
United States of America and sitting upon it until the price is right
for them to drill. Before we open up more areas for leasing, we must
first use what we have. That makes sense to me.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3135
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Outer Continental Shelf
Production Incentive Fee Act''.
SEC. 2. PRODUCTION INCENTIVE FEE.
Section 8 of the Outer Continental Shelf Lands Act (43
U.S.C. 1337) is amended by adding at the end the following:
``(q) Production Incentive Fee.--
``(1) Establishment.--Not later than 180 days after the
date of enactment of this subsection, the Secretary shall
establish, by regulation, a fee for any nonproducing oil or
gas leases on outer Continental Shelf land in the Gulf of
Mexico that are in effect on the date of enactment of this
subsection.
``(2) Amount.--The amount of the fee established under
paragraph (1) shall be at a rate established by the Secretary
by regulation, but shall be not less than $5 per acre per
year.
``(3) Assessment and collection.--The Secretary shall
assess and collect the fee established under paragraph (1) on
an annual basis, in accordance with procedures established by
the Secretary by regulation.
``(4) Disposition.--Notwithstanding section 9, any amounts
collected under paragraph (3) shall be--
``(A) available to the Secretary of the Interior for use in
accordance with the Land and Water Conservation Fund Act of
1965 (16 U.S.C. 460l-4 et seq.); and
``(B) treated as offsetting receipts.''.
______
By Mr. McCONNELL (for himself, Mrs. Feinstein, Mr. McCain, Mr.
Biden, Mr. Allard, Mr. Bennett, Mr. Bunning, Mr. Burr, Ms.
Cantwell, Mrs. Clinton, Mr. Coleman, Mrs. Dole, Mr. Durbin, Mr.
Ensign, Mr. Feingold, Mr. Isakson, Mr. Leahy, Mr. Martinez, Mr.
Menendez, Ms. Murkowski, Mr. Smith, Ms. Snowe, Mr. Sununu, Mr.
Whitehouse, Mr. Wyden, Mr. Bingaman, and Mr. Brown):
S.J. Res. 41. A joint resolution approving the renewal of import
restrictions contained in the Burmese Freedom and Democracy Act of
2003; to the Committee on Finance.
Mr. McCONNELL. Mr. President, I rise to introduce the Burmese Freedom
and Democracy Act. This legislation continues the sanctions that are
already in place against the illegitimate
[[Page S5633]]
ruling Burmese regime, the State Peace and Development Council, or
SPDC.
Last month, the whole world got a close look at the SPDC's contempt
for human life when a devastating cyclone hit Burma. No one can say
with certainty what the full toll of death and destruction is from the
storm--but we do know the junta greatly compounded matters through
inaction and its utter disregard for the Burmese people.
The SPDC severely restricted the entry of relief workers into the
country. Four U.S. Navy ships carrying much-needed supplies for the
Burmese people were turned away time and again by the regime.
Estimates put as many as 135,000 people dead or missing after the
cyclone hit on May 3, and many of those deaths must lie at the feet of
the SPDC for its outrageous acts of criminal neglect.
These sanctions, if enacted, would make clear to the SPDC that the
United States continues to stand squarely with the long-suffering
people of Burma and against the morally bankrupt junta.
This bill is the same legislation the Senate has passed in prior
years. If enacted, it would extend import sanctions for another year
unless the regime takes a number of tangible steps toward democracy and
reconciliation.
I and many others believe these sanctions should be tightened even
further, but those efforts will be pursued at a later date in separate
legislation.
I am joined, as always, by two colleagues who are both steadfast and
longtime advocates for the freedom of the Burmese people: Senator
Dianne Feinstein and Senator John McCain. I am proud to stand alongside
these two friends in support of this important legislation.
Before I close I want to clarify one important point for my
colleagues. This bill would in no way hinder or block America's
continuing efforts to provide humanitarian aid to the people in Burma
in the wake of the cyclone. This bill imposes sanctions on trade, not
humanitarian aid.
America is a friend to the people of Burma. That is why we stand
against Burma's tyrannical ruling regime. I hope my colleagues will
continue to support this bill and continue to send that message to the
SPDC.
Mr. President, I ask unanimous consent that the text of the joint
resolution be printed in the Record.
There being no objection, the text of the joint resolution was
ordered to be printed in the Record, as follows:
S.J. Res. 41
Resolved by the Senate and House of Representatives of the
United States of America in Congress assembled, That Congress
approves the renewal of the import restrictions contained in
section 3(a)(1) of the Burmese Freedom and Democracy Act of
2003.
____________________